Stock Markets January 29, 2026

Raytheon Awarded $1.03 Billion Modification for Lower Tier Air and Missile Defense Sensors

Year Two production under contract W31P4Q-24-C-0024 to be executed in Andover; Army commits $254.57M in FY2026 funds

By Avery Klein RTX
Raytheon Awarded $1.03 Billion Modification for Lower Tier Air and Missile Defense Sensors
RTX

The U.S. Department of War announced a $1.03 billion modification to Raytheon’s contract for the production of Lower Tier Air and Missile Defense Sensor systems. The contract change, identified as P00013, covers Year Two production requirements, designates work at Raytheon’s Andover, Massachusetts facilities, and is overseen by the Army Contracting Command at Redstone Arsenal, Alabama. The Army provided $254.57 million in fiscal 2026 procurement funds at the time of award, with completion of the work expected by March 31, 2030.

Key Points

  • Raytheon received a $1.03 billion contract modification (P00013) for Lower Tier Air and Missile Defense Sensor system production.
  • Work is scheduled to be performed at Raytheon’s Andover, Massachusetts facilities and is expected to be completed by March 31, 2030 - sectors impacted include defense manufacturing and aerospace supply chains.
  • The Army Contracting Command at Redstone Arsenal, Alabama is administering the contract; the U.S. Army obligated $254.57 million in fiscal 2026 procurement funds at the time of award, affecting government procurement funding flows.

Raytheon has received a contract modification valued at $1.03 billion for the production of Lower Tier Air and Missile Defense Sensor systems, according to an announcement from the U.S. Department of War. The change, designated P00013, amends contract W31P4Q-24-C-0024 and specifically addresses Year Two requirements for the defense system production.

The modification brings the total value of the underlying contract to $1.03 billion. Under the terms of the award, the production work will be carried out at Raytheon’s facilities located in Andover, Massachusetts. The contract documentation specifies an expected completion date for the work of March 31, 2030.

Oversight for the contract is being provided by the Army Contracting Command, which is based at Redstone Arsenal, Alabama. At the time the modification was awarded, the U.S. Army obligated $254.57 million in fiscal 2026 procurement funds toward the project.

The modification identifier (P00013) and the prime contract number (W31P4Q-24-C-0024) are included in the award notice published by the U.S. Department of War. The scope noted in that notice is limited to the production of Lower Tier Air and Missile Defense Sensor systems and to the Year Two requirements encompassed by this particular contract modification.

This award announcement lists the location of performance, the overseeing contracting command, the fiscal 2026 procurement obligation, and the contract completion target date. No additional terms, performance milestones beyond the completion date, or further funding details were included in the announcement.


Summary of the award:

  • Contract modification P00013 to W31P4Q-24-C-0024 issued for Year Two production requirements.
  • Total contract value following the modification: $1.03 billion.
  • Work to be performed in Andover, Massachusetts, with a completion date of March 31, 2030.
  • Contract overseen by Army Contracting Command, Redstone Arsenal, Alabama; $254.57 million in fiscal 2026 procurement funds obligated at award.

Risks

  • Schedule risk through March 31, 2030 - completion timeline spans multiple years and could be affected by factors not detailed in the announcement, impacting the defense manufacturing sector.
  • Funding uncertainty beyond fiscal 2026 - only $254.57 million in fiscal 2026 procurement funds were obligated at award, implying future-year appropriations may be required to fully fund production, which affects government procurement and defense budgets.
  • Administrative or oversight changes - the contract is administered by the Army Contracting Command at Redstone Arsenal, Alabama; any alterations in oversight or contracting requirements could influence execution and is a risk to program delivery.

More from Stock Markets

SpaceX Acquires xAI, Eyes Solar-Powered Orbital AI Data Centers Feb 2, 2026 Nvidia Shares Slip After Report That OpenAI Is Seeking Alternative AI Chips Feb 2, 2026 U.S. Markets Close Higher as Industrials and Consumer Stocks Lead Gains Feb 2, 2026 Musk Moves to Combine SpaceX and xAI into a $1.25 Trillion Entity Ahead of Planned IPO Feb 2, 2026 OpenAI Seeks Alternatives to Some Nvidia Chips as Inference Needs Shift Feb 2, 2026