Raytheon ramps up work on cutting-edge SPY-6 radars with $677M Navy deal
RTX’s Raytheon business has exercised its third option to continue its work on a massive U.S. Navy contract to build AN/SPY-6(V) radars.
The latest contract, awarded earlier this month, is worth $677 million and builds on a $651 million deal announced in April 2022 by the defense contractor’s Tucson-based missiles and defense operation. With all options exercised, the total value of the contract could reach $3.2 billion.
The latest deal provides seven more radars for the Navy, making for a total of 38 radars contracted so far. Raytheon (NYSE: RTX) said that the SPY-6 family of radars is the most tested and advanced radar technology in production today, designed to defend against ballistic missiles, cruise missiles, hostile aircraft and surface ships simultaneously. They increase detection range, sensitivity and discrimination over legacy radars.
“SPY-6 provides the fleet with superior air surveillance, electronic warfare protection and enhanced detection abilities,” said Barbara Borgonovi, president of Naval Power at Raytheon, in a statement. “This contract is a significant step forward in ensuring this technology is delivered to ships to improve the overall self-defense of the fleet.”
A portion of the work in this contract will take place in Scottsdale, and other locations across the country are also involved. Completion is expected by September 2028.
SPY-6 technology is projected to be deployed on 65 Navy ships over the next 10 years, Raytheon said.
Other recent Raytheon contracts
That contract is one of several deals and modifications that Raytheon’s Tucson operation has been awarded in recent weeks. Here’s a roundup of the latest contracting activity:
- On June 13, Raytheon announced it was awarded a $12,559,475 Air Force contract modification to further assess the military and operational utility and technical feasibility of a unique system-of-systems capability. Raytheon software interfaces will be used to integrate systems to allow for cueing, tracking, and firing of effectors. The work is related to the GhostEye radar system. The modification brings the total value of the contract to $50,171,196. Work will be performed in Tucson, Arizona, and is expected to be completed by the end of 2025.
- On June 7, Raytheon announced it was awarded a $33,840,000 Navy contract modification for requirements and spares for the Rolling Airframe Missile (RAM) Mod 5 Guided Missile Launching System. Work will be performed in Tucson, Tempe, Germany and elsewhere, and is expected to be completed by February 2027.
- On May 31, Raytheon announced it was awarded a $27,041,956 Navy contract modification to exercise options for Standard Missile depot and intermediate level repair and maintenance. Work will take place in Tucson and other U.S. locations and is expected to be completed by September 2025.
- On May 23, Raytheon announced it was awarded a $17,982,837 contract modification to add scope and increases ceiling for continued studies involving future updates to the AIM-9X missile system in conjunction with the AIM-9X Block II and Block II+ System Improvement Program Increment IV for the Navy, Air Force, Army, and Foreign Military Sales customers. Work will be performed in Tucson and is to be completed in June 2026.
- Also on May 23, Raytheon said it was awarded a $227,350,165 Navy contract to provide depot level repairs, logistics support, sustainment engineering, software support, integration support, failure analysis, configuration management, technical data, diminishing manufacturing sources, and material shortages management, training, field support, spares predictions, ordnance assessment, reliability and management of government property to support AIM-9X and AIM-9X Block II missile sustainment efforts for the Navy, Air Force, Army, and Foreign Military Sales customers. Nearly all of the work will be performed in Tucson and is expected to be completed in May 2029.