Raytheon Co has been awarded a 3.53billion dlr military procurement contract for Patriot
air-defense missiles, the Army said.
    The contract is for five years and was awarded to the
company's Missiles Systems Division at Andover, Mass.
    The first annual increment will be for 948.8 mln dlrs for
810 missiles. The Army said that the firm will produce 4,491
missiles and 45 firing units during the life of the contract.
    The Army said that the multi-year contract would result in
savings in excess of 12 pct over the continued award of annual
contracts.
    Raytheon, in a separate release, said its Missile Systems
Division is prime contractor for the Patriot air-defense
system. Martin Marietta Corp &lt;ML> is a major subcontractor
along with Raytheon's Equipment Division.
    The company also said more than 4500 vendors and
subcontrators in 34 U.S. states, the Netherlands and West
Germany are participating in the contract.
    The company said the agreement will generate cost savings
thorugh volume purchase discounts and efficient manufacturing.
"The contract will stabilize the production work forces at
Raytheon and its subcontractors," it said.
    The company said the defense system uses digital
electronics with a mulifunction phased array radar to locate
targets and control firing. It also uses launching stations for
supersonic missles.
    The weapons are designed to defend against advanced
aircraft and cruise missles. They are also being modified to
defend against tactical ballistic missles, the company said.
    West Germany, the Netherlands, Denmark, and Japan have
choosen the weapons for their air defense systems. A
co-production program with the Japanese is currently underway,
the company added.
 Reuter
