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June 7, 2016

Raytheon's Marlborough facility to take on U.S. Navy contract

Raytheon Company received a $365 million U.S. Navy contract. The company's Marlborough facility is shown here, along with the Sudbury branch, inset.

Raytheon Company's Marlborough facility will take on 19 percent of the work from a newly secured $365 million U.S. Navy contract that will supply components of a missile guidance system to the U.S. Navy and its allies.

The contract, announced last week by the company, is for parts of the Aegis integrated missile guidance system that is used to protect U.S. Navy and allied ships. The two Aegis components Raytheon manufactures include the the SPY-1D(V) Transmitter and the MK 99 Fire Control System, according to the companyThe first SPY-1 Transmitter was delivered in 1981 and since then Raytheon has continually enhanced its technology, according to the company.

Raytheon’s Marlborough facility is a primary location for Aegis production program management, systems engineering services and logistics support for fleet-deployed systems for the U.S. and allies, according to the company. Manufacturing work on the products is performed at several different Raytheon locations.

Most of the work on the contract -- 78.3 percent -- will take place in Andover, with the rest taking place in Waterloo, Ontario, Canada (1 percent), Moorestown, N.J. (.9 percent) and Chesapeake, Virginia (.5 percent).

The fixed-price incentive, cost-plus-fixed fee contract covers production of the Aegis Weapon System AN/SPY-1D(V) Radar Transmitter Group and Missile Fire Control System MK 99 equipment. Associated engineering services will also be performed by Raytheon as part of the contract.

The contract includes options that could bring its total value to $423,056,873, and combines purchases for the U.S. Navy, as well as for the Republic of Korea and Japan under the Foreign Military Sales program.

Work under the contract is expected to be completed by October 2022.

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