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Raytheon Mission Support Leads to Navy Performance Based Logistics Award

McKINNEY, Texas, Dec. 1, 2006 /PRNewswire/ -- The Department of Defense has recognized a partnership between the U.S. Navy and Raytheon Company (NYSE: RTN) for improving through innovative performance based logistics the availability, reliability and mission success of the H-60 armed helicopter targeting system.

The 2006 Secretary of Defense Performance Based Logistics Award (sub-system level) cited the team effort of Raytheon and the Navy in establishing a benchmark program for maintenance and mission support of the AN/AAS-44(v) forward looking infrared system for the H-60 Seahawk aircraft. As a result, the Navy's estimated savings and cost avoidance for the program is $31 million.

The award, presented Nov. 7, also recognized the combat readiness of the helicopter sensor and noted the satisfaction of the department in the disciplined execution of the performance-based contract. Along with Raytheon, the award recognizes Naval Air Systems Command, Fleet Readiness Center Southeast, and the Naval Inventory Control Point. Award documentation notes that PBL is now providing increased spares availability, guaranteed reliability improvements, and a 65 percent improvement in logistics response time.

Raytheon Space and Airborne Systems (SAS) is in the fourth year of a 10-year firm fixed price contract valued at $123 million to provide performance based logistics and mission support for this Navy front-line tactical system. The Raytheon infrared sensor allows aircrews to detect, track, classify, identify and attack targets such as fast patrol boats and mine-laying craft.

"Since the inception of performance based logistics in October 2003, the team has steadily maintained 100 percent availability and achieved a 40 percent growth in system reliability improvement. That is how we define mission support performance," said Dale Bainum, Raytheon business manager for customer product support. "Behind that definition, our trusted partnership with the customer continues to stand on a performance-based management approach that employs best practices to improve use of materials, reduce logistics cycle time, and decrease total ownership cost."

SAS is the leading provider of sensor systems giving warfighters the most accurate and timely information available for the network-centric battlefield. With 2005 revenues of $4.2 billion and 13,000 employees, SAS is headquartered in El Segundo, Calif., with additional facilities in Goleta, Calif.; Forest, Miss.; Dallas, McKinney and Plano, Texas; and several international locations.

Raytheon Company, with 2005 sales of $21.9 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.

  Dave Desilets

SOURCE: Raytheon Company

CONTACT: Dave Desilets of Raytheon Company, +1-972-952-2239

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

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