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Industry Alliance Bids for U.S. Army Strategic Services Sourcing Program

MCKINNEY, Texas, Jan. 9, 2006 /PRNewswire/ -- Three of the largest and most capable defense companies have formed a long-term strategic alliance that positions it to bid for the U.S. Army's Strategic Services Sourcing (S3) program and similar procurements. The three, Raytheon Company (NYSE: RTN), IBM (NYSE: IBM) and The Boeing Company (NYSE: BA), have collaborated for nearly two years to determine the best way to deliver logistics and sustainment solutions for pursuits like S3.

S3 is a five-year, $20 billion indefinite delivery/indefinite quantity contracting vehicle that will provide cradle-to-grave support to command, control, communication, computer, intelligence, surveillance and reconnaissance (C4ISR) systems. The new program consolidates five existing contracts into one instrument that will allow the Army to quickly procure engineering, logistical and business operations services to support fielded C4ISR systems.

The Raytheon-IBM-Boeing team provides the Army with unrivaled capabilities in C4ISR support services, coupled with sophisticated management control systems. The three are joined by other companies, including incumbents Blackhawk and JB Management, which will meet the Army's requirements by providing the most innovative solutions possible.

Raytheon's Network Centric Systems, the Public Sector of IBM's Business Consulting Services and Boeing's Integrated Defense System's Logistics Support Systems business are involved in the S3 bid. Because of its deep knowledge and direct experience in meeting the Army's garrison-to-field platform sustainment requirements, Raytheon leads the effort.

By leveraging Raytheon and Boeing's platform and mission support expertise coupled with IBM's integration capabilities, the three will offer transformational solutions to meet the Army's global needs.

"The S3 opportunity illustrates the purpose of the alliance," said Jack Costello, vice president of business development and strategy for Raytheon Network Centric Systems. "Our three companies' strengths in technology, customer service, customer domain knowledge and best practice experience will provide robust, end-to-end, on-demand solutions for the Army."

"Each company has expertise in network-centric operations (NCO) and customer-support solutions," said Jim Brunke, vice president of Boeing Advanced Logistics Services. "We bring together global solutions for NCO, making our alliance unique in the Army's transformational logistics market space."

"The strength of this alliance lies in broad customer relationships, global facilities and personnel and forward-looking spiral development capabilities to ensure rapid transformation and innovative solutions with minimal risks to ongoing military operations," Said Chuck Prow, defense leader of IBM's Public Sector Business and Consulting Services.

Raytheon Company, 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.

With consultants and professional staff in more than 160 countries globally, IBM Business Consulting Services is the world's largest consulting services organization. IBM Business Consulting Services provides clients with business process and industry expertise, a deep understanding of technology solutions that address specific industry issues, and the ability to design, build and run those solutions in a way that delivers bottom-line value to the business of Defense.

A unit of The Boeing Company, Boeing Integrated Defense Systems is one of the world's largest space and defense businesses. Headquartered in St. Louis, Boeing Integrated Defense Systems is a $30.5 billion business. It provides network-centric system solutions to its global military, government, and commercial customers. It is a leading provider of intelligence, surveillance and reconnaissance systems; the world's largest military aircraft manufacturer; the world's largest satellite manufacturer and a leading provider of space-based communications; the primary systems integrator for U.S. missile defense and Department of Homeland Security; NASA's largest contractor; and a global leader in sustainment solutions and launch services.

  Note to editors:
  * With a focus on mission support, Raytheon is a platform-independent
    Mission Systems Integrator for current and emerging customer
  * For Army transformational initiatives such as S3 and the Common
    Logistics Operating Environment, IBM adds proven architectural design
    and integration capabilities to Boeing and Raytheon's platform
    sustainment experience.
  * Boeing's position as the original equipment manufacturer of more than 20
    Department of Defense platforms will enhance the S3 offering with
    proven sustainment approaches and methods for several key Army aviation

   Patricia Perlini

SOURCE: Raytheon Company

CONTACT: Patricia Perlini of Raytheon Company, +1-972-952-4033

Web site: http://www.raytheon.com/

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