Raytheon to Begin Air Force Cryptographic Unit Production Under Potential $459M IDIQ Award

Raytheon (NYSE: RTN) has secured a potential five-year, $459 million indefinite-delivery/indefinite-quantity contract to begin full-rate production of cryptographic units designed to help the U.S. Air Force secure voice and data communications.

The Defense Department said Thursday the company will build the devices in Indiana and Florida through Dec. 15, 2021 as part of the VINSON/Advanced Narrowband Digital Voice Terminal Cryptographic Modernization program.

DoD noted that the VACM End Cryptographic Unit will maintain the capacity of the current VINSON voice encryption platform and ANDVT ECUs to the extent the National Security Agency allows.

The military branch obligated $75.1 million in fiscal 2015, 2016 and 2017 procurement funds for the first delivery order under the sole-source contract, which also includes foreign military sales.

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