Story
Raytheon Secures $49.7 Million Navy Contract for Weapon System Repairs
Summary
The U.S. Navy has awarded Raytheon a $49.7 million delivery order to repair components for its Close-In Weapon System, with work expected to be completed by 2032.
Raytheon Co. (NYSE: RTX) has secured a $49.7 million firm-fixed-price delivery order from the U.S. Navy for the repair of Close-In Weapon System (CIWS) components, the Department of Defense announced Tuesday.
Contract Scope and Timeline
The agreement covers the repair of 29 different part numbers and falls under a basic ordering agreement that was first awarded in 2024. The work will be performed at a Raytheon facility in Louisville, Kentucky, and has an expected completion date of August 2032.
The contract was awarded to Raytheon's operations based in Tucson, Arizona. The Naval Supply Systems Command, Weapon Systems Support, located in Philadelphia, Pennsylvania, is the contracting activity for this award.
Financial and Procurement Details
Upon awarding the contract, the Navy will obligate an initial $24.4 million using fiscal 2026 working capital funds. According to the announcement, these funds will not expire at the end of the current fiscal year. The award was issued as an undefinitized contract action, which allows work to begin before all terms and conditions are finalized.
AdThe procurement was handled as a sole-source requirement. The Department of Defense noted that one company was solicited for the contract and one offer was received.
Context for Investors
The Close-In Weapon System is a critical ship-defense system designed to defeat short-range anti-ship missiles and other threats. This long-term repair and sustainment contract represents a stable, recurring revenue stream for Raytheon's defense business, reinforcing the company's incumbent position on a key naval platform.
For major defense contractors, such maintenance and support contracts are a fundamental part of their business model, often providing more predictable revenue than new platform development programs.
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