ANDOVER, Mass. — Raytheon, a business of RTX, has received a $1.8 billion contract modification from the U.S. Navy to continue the production and sustainment of the AN/SPY-6(V) family of radar systems, supporting the Navy's ongoing modernization of its surface fleet.
The contract extension builds on the original hardware production and sustainment agreement awarded to Raytheon in March 2022. According to the company, the modified agreement includes contract options that, if fully exercised, would increase the total cumulative value to $3.39 billion.
The SPY-6 family of active electronically scanned array (AESA) radars is designed to detect and track multiple threats simultaneously, including ballistic missiles, cruise missiles, hostile aircraft, and surface ships. The radar provides greater detection range and improved sensitivity compared with legacy U.S. Navy radar systems.
Raytheon said the SPY-6 radar is currently operational aboard two commissioned U.S. Navy ships and has been installed on 11 additional vessels that are undergoing various stages of sea trials and testing. Over the next decade, the Navy plans to deploy the radar across more than 50 ships, including Flight III Arleigh Burke-class destroyers, frigates, aircraft carriers, and amphibious assault ships.
“This contract extension reflects the Navy’s confidence in our ability to deliver advanced, reliable and scalable radar solutions,” said Barbara Borgonovi, president of Naval Power at Raytheon. “Our continued investment and commitment to ramping production will ensure the fleet has the sensing advantage to stay ahead of evolving threats for decades to come.”
The SPY-6 radar family is the result of more than a decade of design, testing, and manufacturing work, and Raytheon said the system has been validated through operational performance at sea.
To support the Navy's planned deployment schedule, Raytheon has invested more than $800 million to modernize its radar manufacturing facilities and expand production capacity. The company said these upgrades are expected to double SPY-6 production by 2028, helping improve long-term hardware availability while reducing overall costs for the Navy.
Manufacturing work under the contract will be carried out at several U.S. facilities. Approximately 30% of the production will take place in Andover, Massachusetts, where Raytheon is expanding its engineering workforce to support the program. Additional work will be performed in San Diego, California; Scottsdale, Arizona; and Syracuse, New York.
According to the U.S. Department of Defense, the base contract work is scheduled for completion by July 2031. If all contract options are exercised, work could continue through October 2031.
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