Raytheon Earns DOD Award, Contract Modifications

It's been a big month for the Raytheon Integrated Defense Systems' Tewksbury plant with a Department of Defense (DOD) award and modifications to three contracts totaling more than $100 million.

Raytheon, the U.S. Navy and members of the DDG 1000 industry team (including BAE Systems, Bath Iron Works and Northrop Grumman) were honored with a 2010 DOD Value Engineering Award. The team was recognized for results achieved through the government-sponsored Surface Ship Affordability Initiative.

The awards program is designed to encourage in-house and contractor productivity.

"This type of innovative collaboration between the Navy and industry is a hallmark of the DDG 1000 program," said Raytheon's Bill Marcley, vice president of Total Ship Mission Systems and DDG 1000 program manager. "These initiatives not only save money, but also help develop and mature DDG 1000's advanced technologies, which will benefit the fleet for years to come."

The Surface Ship Affordability Initiative was created when the Navy's program management office for DDG 1000 partnered with the Office of Naval Research and members of industry to increase affordability for the DDG 1000 class. In all, 35 manufacturing technology projects have been executed during the past several years to improve the efficiency of development, production and shipbuilding processes. As a result of the $49 million invested in the initiative, an estimated total savings of $138 million has been realized.

In the meantime, Raytheon's Tewksbury plant will reap the benefits to modifications to three contracts previously awarded to the company by the DOD.

Raytheon has been awarded a $36 million modification to its contract to procure mission systems equipment (MSE) for the Self Defense Test Ship in support of the Anti-Air Warfare Self Defense Enterprise Test and Evaluation Master Plan. Work is expected to be completed by March 2013.

Raytheon was also awarded a nearly $6 million modification to its contract for changes to the delivery requirements of Mission Systems Equipment (MSE) for the DDG 1000 class. These changes include additional storage space, services and shipping fixtures that are required to support the revised DDG 1000 program ship production schedules and in-yard-need-dates at the production shipyards. Work is expected to be completed by December 2013.

Finally, Raytheon has also been awarded a $59.4 million modification to its contract for CVN 78 dual-band radar (DBR) common array power system (CAPS) and common array cooling system (CACS) efforts. These efforts are required in order to meet the CVN 78 ship construction in-yard-need-dates at the receiving shipyard to ensure that critical production schedules are maintained for the CVN 78 program. Work is expected to be completed by November 2013.