Raytheon (NYSE: RTN) has been awarded a potential five-year, $301.7 million contract from the U.S. Navy to provide design agent and engineering support services for a weapon system used toÂ defend against anti-ship missiles.
The cost-plus-fixed-fee contract has a $64.4 million initial value and will reach its full cumulative value if all options are exercised,Â the Defense Department said Friday.
The company will work to maintain the current Rolling Airframe Missile system and help address technical issues through software maintenance, design, logistics engineering, reliability, quality assuranceÂ and systems support under the MK-31 Guided Missile Weapon System Improvement Program.
Ninety percent of contract purchases are for the Navy, 7 percent for Germany under a memorandum of understanding and the remaining 3 percent are for Egypt underÂ the Foreign Military Sales program.
The Naval Sea Systems Command will obligate $14.9 million at the time of award and the amount of $311,928 will expire at the end of the current fiscal year.