Raytheon, a business unit of RTX, has received a $213.4 million contract modification from the U.S. Navy to continue work on Zumwalt-class mission systems.
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What Is the Scope of the Contract Modification?
The Department of War said Monday the cost-plus-incentive-fee, cost-plus-fixed-fee and cost-only modification exercises options covering installation, integration, development, testing, correction, maintenance and modernization efforts tied to the Zumwalt-class combat system.
What Are the Other Details of the Contract?
The company will perform the majority of the work in Portsmouth, Rhode Island; Tewksbury, Massachusetts; and Pascagoula, Mississippi. Other work locations include Nashua, New Hampshire; San Diego, California; and Fort Wayne, Indiana. The contract, handled by the Naval Sea Systems Command, is expected to run through April 2027.
Funding for the modification includes fiscal 2026 operations and maintenance funds totaling about $29.8 million, which represent 59 percent of the obligated amount. Shipbuilding and conversion funds from fiscal 2025 account for $8.3 million, followed by fiscal 2026 other procurement funds at $4.7 million.
Additional funding includes fiscal 2025 other procurement funds at $3.7 million, fiscal 2025 research, development, test and evaluation funds at $2.5 million and fiscal 2026 RDT&E funds at $1.2 million. Of the total obligated amount, $32.3 million will expire at the end of the current fiscal year.
Previous Contracts for Zumwalt-Class Support
RTX has supported the Zumwalt-class destroyers with multiple contract awards, including a $212.5 million modification in April 2024 to develop, modernize and maintain mission systems and equipment, a $308.5 million contract option in April 2023 to engineer combat systems, and a potential five-year $1.68 billion award in April 2022 for modernization, activation and sustainment of the ships’ computing infrastructure and mission systems.
