Raytheon Missiles & Defense has secured a contract valued at $271.5m for the delivery of AEGIS Weapon System Fire Control System MK 99 equipment and related engineering support.
The contract, announced by the US Department of War (DoW) announced on 3 August 2026, includes options that could raise the total contract value to $302.5m, if exercised.
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The majority of the contract will serve the US Navy, which accounts for 97% of the purchasing share, with the remaining systems allocated for the Australian and Japanese governments under the Foreign Military Sales (FMS) programme, at 2% and 1% respectively.
Production and support work will be split across several locations in the US, with Andover, Massachusetts handling 56% of the tasks, followed by Chesapeake, Virginia (28%), Marlborough, Massachusetts (15%), and Burlington, Massachusetts (1%).
Project completion is anticipated by 29 July 2032 but may extend to December 2032 if all contract options are exercised.
Funding for the contract is sourced primarily from US Navy shipbuilding and conversion accounts from fiscal years 2023, 2024, and 2025, representing a combined 93% of the obligated amount at award.
Additional contributions come from fiscal 2026 procurement budgets and FMS funding for Australia and Japan.
The funds were obligated at the time of contract award and will remain active beyond the current fiscal year, according to the DoW.
The contract was issued without open competition, with the Department citing federal regulations that permit sole-source awards when only one supplier is deemed capable of meeting programme requirements.
The Naval Sea Systems Command in Washington, DC, is overseeing the contracting activity.
The MK 99 Fire Control System is a key component of the AEGIS Weapon System, providing target illumination and fire control during naval missile engagements.
The system works in conjunction with the SPY-series radar and the AEGIS Combat System, supporting guidance for missile launches against cruise missiles, aircraft, anti-ship threats, and, depending on configuration and interceptor type, selected ballistic missile defence missions.
