Raytheon awarded $2.3 billion Patriot missile system support contract

Contract includes "refresh for obsolescence" for U.S. and foreign customers

Raytheon was awarded a $2.3 billion contract for engineering and software support for the Patriot air and missile defense system to including a “refresh for obsolescence” for U.S. and foreign customers, the U.S. Department of Defense said in a press release.

“Raytheon Co., Andover, Massachusetts, was awarded a $2,300,304,490 hybrid (cost-plus-fixed-fee, firm-fixed-price and level-of-effort) contract for engineering services to support Phased Array Tracking Radar Intercept on Target (PATRIOT) system of systems, for ongoing support of software, refresh for obsolescence to include support of systems outside the continental U.S., and partner country systems,” the Tuesday, January 30 release said.

Work is expected to be completed on January 31, 2023.

Sales and government contracts for air defense and in particular missile defense missile systems have been brisk in recent months.

On January 18,The U.S. State Department approved the sale of Patriot and HAWK missile system services to Saudi Arabia at an estimated cost of $500 million. In December, Lockheed Martin won a $945 million contract to produce Patriot missiles for the US, Qatar and Saudi Arabia.

In November, Raytheon said Romania has signed an agreement to purchase the Patriot system, the U.S. approved a Poland request for the sale of Patriot anti-missile systems, and Sweden said it would request the sale of the Patriot system, with the aim of having it fully operational by 2025.

Lockeed awarded $459 million THAAD contract

On January 26, Lockheed Martin was awarded a $459 million modification to an earlier contract for the production of additional Lot 10 Terminal High Altitude Area Defense (THAAD) interceptors, and for associated production support efforts, a U.S. Department of Defense release said.

“The value of this contract is increased from $826,614,843 to $1,285,845,311,” the release added, noting an expected completion date of June 25, 2021.

The contract was first awarded in March 2017 and was “definitized” on December 22.

In October, the U.S. approved the sale of the THAAD missile defense system to Saudi Arabia, a deal estimated to be worth $15 billion, just one day after Saudi Arabia signed deals to purchase Russia’s competing S-400 missile defense systems and other weapons.

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