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29 Apr 02. Raytheon Company (NYSE: RTN – news) has been awarded a cost plus award fee contract to be the systems integrator for the DD(X), the U.S. Navy’s next-generation surface combatant ship. The contract is expected to total $1.36bn over the next three years.

Raytheon is a partner on the industry “Gold Team” that was selected by the Navy to design, develop, build, and conduct at-sea tests of Engineering Development Models (EDMs) and then apply the results of the testing to a comprehensive DD(X) ship system design. The “Gold Team” is being lead by Northrop Grumman Ship Systems.

“This is a very important win for Raytheon in an area that provides great potential for growth for our company,” said Daniel P. Burnham, Raytheon Company’s chairman of the board and chief executive officer. “I’m very proud of our team and our solution to meet our customer’s needs. We look forward to working with Northrop Grumman and the U.S. Navy to make this program a major contributor to the defense of our nation.”

“This contract provides Raytheon with a unique opportunity to build on its longstanding relationship with the U.S. Navy and join forces with Northrop Grumman to create a transformational system to harness the full power of 21st century network and systems technology,” said William H. Swanson, president of Raytheon’s Electronic Systems business.

“By integrating all of the ship’s sensors and weapons into a single, cohesive combat system, Raytheon and Northrop Grumman will be able to provide the DD(X) with reliable and effective land attack and maritime dominance capabilities that meet stringent signature goals and are interoperable with joint forces.”

As the systems integrator, Raytheon will be responsible for DD(X) total systems engineering, software development, and combat system. In addition, the company will build and test a dual frequency radar suite, an integrated solid-state communications system, an integrated anti-submarine and mine warfare system, a revolutionary vertical launching system, and a multi-mission total system computing environment.

“Our focus is to execute a cutting-edge ship and mission systems design for the DD(X) that will revolutionize naval warfare,” said Jack Cronin, Raytheon’s vice president responsible for its DD(X) program. “And, by working closely other industry partners – including members of the “Blue Team” that competed for the program – we intend to design a warship that will use stealth, integrated command and control, and new sensor technologies to deliver precise and accurate munitions, to evade enemy defenses, and to bring its crew home safely.”

Software engineering and integration for the program will be performed at the company’s facility in Tewksbury, Mass. Development of the new ship’s combat system will be performed in Portsmouth, R.I. The command and control system will be designed and built in Marlboro, Mass., Ft. Wayne, Ind., and St. Petersburg, Fla. Radar development will be conducted at Sudbury, Mass.

Other companies partnering with Raytheon on systems integration include the Boeing Company, Sun Microsystems, and United Defense. Government partners include the Naval Surface Warfare Center in Dahlgren, Va., and the Naval Underwater Weapons Center in Newport, R.I.

With headquarters in Lexington, Mass., Raytheon Company is a global technology leader in defense, government and commercial electronics, and business and special mission aircraft.

Comment: After several months in the doldrums, Raytheon’s star is back in the ascendant, with missile sales picking up (See FIRST LIVE FIRING OF AMRAAM FROM EUROFIGHTER TYPHOON – METEOR STALLS IN GERMANY) and this important U.S. Navy order on top of the recent CEC award, Raytheon’s share price is rising from the doldrums. In addition the Raytheon Thale

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