Raytheon Wins $271.5 Million Navy Contract for AEGIS Fire Control Systems
The Navy awarded Raytheon Missiles and Defense a firm-fixed-price deal for MK 99 fire control equipment, with options that could raise the total to $302.5 million by December 2032.
MARLBOROUGH, MASSACHUSETTS — Raytheon Missiles and Defense, the RTX Corp. unit that builds air and missile defense systems, won a $271.5 million Navy contract to produce AEGIS fire control equipment, as announced on war.gov.
The firm-fixed-price, cost-plus-fixed-fee award covers production of AEGIS Weapon System Fire Control System MK 99 equipment, AEGIS modernization equipment and associated engineering support. Options, if exercised, would lift the cumulative value to $302.5 million. The Naval Sea Systems Command in Washington is the contracting activity.
The deal serves the Navy, which accounts for 97% of the work, along with the governments of Australia and Japan under the Foreign Military Sales program. Australia holds 2% and Japan 1% of the purchase. The award was not competitively procured because only one responsible source can satisfy the requirement, under U.S. Code provisions governing sole-source contracts.
Work will be performed in Andover, Massachusetts, at 56%; Chesapeake, Virginia, at 28%; Marlborough, Massachusetts, at 15%; and Burlington, Massachusetts, at 1%. Completion is expected by July 29, 2032. If all options are exercised, work will continue through December 2032.
The MK 99 is the fire control component of the AEGIS Combat System, the radar and weapons-direction network that guides the Standard Missile family aboard cruisers and destroyers.Raytheon Missiles and Defense, headquartered in Tucson, Arizona, produces the AN/SPY-6 Air and Missile Defense Radar and the Standard Missile line that operate alongside AEGIS, according to wikipedia.org. Raytheon Intelligence and Space merged with the unit in July 2023 to form the broader Raytheon segment, according to wikipedia.org.
The award widens Raytheon’s reach in a year of climbing defense demand. The company booked more than $10 billion in international awards during the first half of 2026, more than double the year-earlier level, including over $7 billion from European customers, according to defence-industry.eu. RTX Chief Executive Officer Chris Calio tied that demand to the battlefield performance of Patriot and other Raytheon systems in contested environments, according to defence-industry.eu.
“Their performance had reinforced the need for the company’s capabilities,” Calio said, according to defence-industry.eu.
For the average U.S. reader, the contract funnels public money into shipbuilding and procurement accounts that sustain thousands of manufacturing jobs across three states. Fiscal 2025, 2024 and 2023 shipbuilding and conversion funds paid for most of the obligation, dollars that flow to workers in Massachusetts and Virginia rather than to overseas suppliers.
This is not the first time the Navy has turned to a single supplier for AEGIS work. The award marks the 17th contract to Raytheon Missiles and Defense in 2026, lifting the company’s total for the year to $6.2 billion. It is also the 43rd Department of Defense contract awarded in Massachusetts during 2026. The company’s record single award stands at $2.1 billion, so this deal ranks well below that mark while sitting comfortably inside the 2026 Navy portfolio.
The next decision falls to the Navy on whether to exercise the contract options that could extend the work through December 2032. A date for that decision has not been announced.
Sole-source awards to Raytheon are a recurring feature of the AEGIS program, and the pattern has drawn scrutiny before. Chinese authorities sanctioned the unit on May 22, 2024, over arms sales to Taiwan, according to wikipedia.org. Earlier, the Obama administration blocked certain Raytheon sales to Saudi Arabia in 2016 over humanitarian concerns tied to the Yemen conflict, a decision the Trump administration reversed six months later, according to wikipedia.org. The company kept its position as a top naval weapons supplier through each dispute.
This contract represents the 17th contract awarded to Raytheon Missiles and Defense, in 2026, bringing the company’s total contract value for the year to $6,241,081,190. It is also the 43rd Department of Defense contract awarded in Massachusetts during 2026. While this is not the largest contract ever awarded to Raytheon Missiles and Defense, whose record stands at $2,089,200,000, it is notable within the Navy portfolio. Specifically, it falls between the 2026 Navy portfolio’s year-to-date minimum of $9,046,496 and maximum of $8,000,000,000. Overall, this award was announced among 8 Department of Defense contracts issued nationwide on July 29, 2026.
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