The Department of Defense issued 14 separate contract awards to defense contractors Friday, and while Raytheon didn't win the biggest of these awards, it did win the second biggest.
Valued at $534.8 million, Raytheon's contract win Friday is a massive firm-fixed-price contract for the production of "AMRAAM" Advanced Medium-Range Air-to-Air Missiles for the U.S. Air Force, and also for the militaries of Oman and Saudi Arabia.
Designated AMRAAM Production Lot 27, this batch of missiles appears to involve the production of nearly 1,800 missiles at reported costs of $300,000 apiece. 51% of the missiles to be produced from this production lot will be sold to U.S. allies Oman and Saudi Arabia, with the balance going to the U.S. Air Force. Delivery is expected to be complete by Jan. 31, 2016.
To date, Raytheon has supplied AMRAAM missiles to 36 different countries around the globe. One of the few modern missiles to have actually been fired in anger, Raytheon boasts that over its lifetime, the AMRAAM has claimed "nine air combat victories" -- nine shoot-downs of enemy aircraft.
The article Raytheon Wins Contract for Production of Hundreds of AMRAAM Missiles originally appeared on Fool.com.Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Raytheon. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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