Raytheon and U.K. Ministry of Defence Sign $16.5 Million RaPID Contracts
TUCSON, Ariz., June 20, 2005 /PRNewswire/ -- Raytheon Company and the United Kingdom Ministry of Defence, Defence Logistics Organisation, today signed a series of contracts for Raytheon Partnering in Defence (RaPID) that over the next 13 years will reduce the cost of ownership of Raytheon munitions used in the Royal Air Force inventory.
The contracts provide for an initial $16.5 million, four-year pricing period and were signed at the Raytheon Missile Systems in Tucson, Ariz.
RaPID covers in-service support of Raytheon's AMRAAM AIM-120B missile, Maverick AGM-65 F2, G2, JX missile variants and Paveway(TM) II, Enhanced Paveway(TM) II, Paveway(TM) III and Enhanced Paveway(TM) III laser guided bombs. The RaPID contracts are a culmination of efforts that began with a memorandum of understanding signed in 2003 between Raytheon and the Defence Logistics Organisation.
Under the contracts, Raytheon provides an availability support solution by guaranteeing a certain number of munitions available to the front line, at a given moment in time. The agreements capture the delivery of the operational service under a single prime contract. RaPID is reducing the overall cost of support by utilizing economies of scale, best practices, and in-country support for the weapons systems.
"RaPID is a true partnering arrangement that uses the three pillars of customer focus -- performance, relationships and solutions -- and is seen as a benchmark for mission support solutions in the future," said Louise Francesconi, Raytheon Missile Systems president. "This partnership strongly benefits both the Ministry of Defence and Raytheon."
Raytheon Company (NYSE: RTN), with 2004 sales of $20.2 billion, is an industry leader in defense and government electronics, space, information technology, technical services, and business and special mission aircraft. With headquarters in Waltham, Mass., Raytheon employs 80,000 people worldwide.
Contacts: Alan D. Fischer 520.794.1211SOURCE: Raytheon Company
Web site: http://www.raytheon.com/