Stock Markets May 26, 2026 05:17 PM

Raytheon Awarded $1.02 Billion U.S. Army Contract to Deliver NASAMS Units

Firm-fixed-price procurement tied to fiscal 2026 Foreign Military Sales for Kuwait; manufacturing slated at Tewksbury facility with completion set for 2031

By Ajmal Hussain
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Raytheon Co. has received a $1.02 billion firm-fixed-price contract from the U.S. Department of War to supply National Advanced Surface-to-Air Missile System (NASAMS) units. The full contract amount was obligated at award, is funded through fiscal 2026 Foreign Military Sales for Kuwait, and assigns work to Raytheon’s Tewksbury, Massachusetts facility with an estimated completion date of May 26, 2031. The Army Contracting Command at Redstone Arsenal, Alabama is the contracting activity, and Raytheon submitted the sole bid in an internet-solicited award.

Raytheon Awarded $1.02 Billion U.S. Army Contract to Deliver NASAMS Units
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Key Points

  • Raytheon secured a $1,020,659,819 firm-fixed-price contract from the U.S. Department of War to procure NASAMS fire units.
  • The contract is funded through fiscal 2026 Foreign Military Sales for Kuwait and the full amount was obligated at award; the Army Contracting Command at Redstone Arsenal, Alabama is the contracting activity under designation W31P4Q-26-C-0008.
  • Work will be performed at Raytheon’s Tewksbury, Massachusetts facility with an estimated completion date of May 26, 2031; the award followed an internet-solicited process in which Raytheon submitted the sole bid.

Raytheon Co. has been awarded a $1,020,659,819 contract by the U.S. Department of War to procure NASAMS fire units, officials announced. The agreement is a firm-fixed-price contract that covers procurement of the National Advanced Surface-to-Air Missile System units.

The contract is funded through fiscal 2026 Foreign Military Sales allocated for Kuwait, and the Pentagon obligated the full contract amount at the time the award was made. The contracting activity is the Army Contracting Command at Redstone Arsenal, Alabama, which issued the contract under designation W31P4Q-26-C-0008.

Under the terms of the award, work will be carried out at Raytheon’s facility in Tewksbury, Massachusetts. The award notice sets an estimated completion date of May 26, 2031, for performance under the contract.

The procurement was handled through an internet-solicited bidding process. Raytheon was the only firm to submit an offer for the requirement, and the company provided the sole bid received for the contract.

NASAMS is described in the award notice as a ground-based air defense system intended to protect against aircraft and missile threats. The system is in use by multiple countries, including the United States and NATO allies.


What the award formalizes is a large, single-supplier production run funded via a Foreign Military Sales channel and scheduled over an extended period. The contracting designation and the obligation of the full award amount indicate the U.S. Army has committed the funds at the time of award, while the work location and completion timeline set expectations for where and when Raytheon will perform the contract.

Because this was an internet-solicited procurement and Raytheon submitted the only bid, the award process did not involve competing offers. The notice does not provide additional detail on quantities, delivery phasing, or interim milestones beyond the overall completion date and the funding source.

Raytheon’s Tewksbury facility will serve as the production site for the NASAMS units under this contract. Aside from the contract designation, the award notice does not disclose further technical or programmatic specifications.

Given the information provided in the award announcement, stakeholders in defense procurement and aerospace manufacturing will be able to track execution against the stated completion date and the funding runway tied to fiscal 2026 Foreign Military Sales for Kuwait.

Risks

  • Only one bid was received in the internet-solicited procurement, which could limit competitive pressures during award and pricing.
  • The contract spans a long performance period with an estimated completion in 2031, introducing execution and schedule uncertainty over multiple years.
  • Funding is identified through fiscal 2026 Foreign Military Sales for Kuwait, which ties the contract to a specific funding channel and timeframe.

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