Raytheon Wins $422M to Produce SM-2 Missiles

Raytheon Co., Tucson, Ariz., is being awarded a $422,625,362 firm fixed price cost plus fixed fee contract for the STANDARD Missile II (SM-2) production of All-Up-Round (AUR) missiles, AN/DKT-71A Telemetric Data Transmitting Sets (TDTSs), section level spares, post production spares, shipping containers, and associated data. The contract provides for the procurement of 419 missiles, 96 AN/DKT-71A Telemetric Data Transmitting Sets (TDTSs), 265 shipping containers, spares, and associated data for U.S. and Foreign Military Sales (FMS) customers. This contract includes options which, if exercised, would bring the cumulative value of this contract to $428,712,667. This contract combines purchases for the U.S. Navy, (22.34 percent) and the government(s) of Japan, (5.75 percent), South Korea, (37.99 percent), Taiwan (33.91 percent), and Netherlands, (.01 percent) under the FMS Program. Work will be performed in Tucson, Ariz., (74 percent); Andover, Mass., (18 percent); Camden, Ark., (5 percent); and Farmington, N.M., (3 percent), and is expected to be completed by Dec. 2010. Contract funds in the amount of $9,258,627 will expire at the end of the current fiscal year. This contract was not competitively procured. The Naval Sea Systems Command, Washington Navy Yard, D.C., is the contracting activity (N00024-08-C-5347).