Raytheon wins $11.2B Army contract

Published June 6, 2007 4:00am ET



A Reston-based division of defense contractor Raytheon has won a 10-year contract worth up to $11.2 billion to consolidate Army training operations.

Raytheon Technical Services Company LLC will head the Warrior Training Alliance, a team of more than 60 companies, in a massive project to combine three existing contracts for live and simulated training programs, spokeswoman Kristin Patterson Jones said.

“For the soldiers, what it means is integrated, reliable training,” she said. “We’re ensuring it’s all available to them, when and where they need it.”

Raytheon held one of the contracts with the Army for live training. Computer Science Corp., another partner in the Warrior Training Alliance, held the second contract for “virtual” or simulator-based training.

Together, the two manage about 99 percent of the Army’s training devices, and have staff at 93 percent of the service’s training sites, Program Manager Mike Edwards said.

“Our position as the incumbent and the team’s readiness ensures training continuity,” Edwards said on the conference call Tuesday.

Raytheon’s team beat out a group of competitors led by General Dynamics Corp., which held the third contract. Work under that contract will now be folded into the most recent award.

The Army, which has roughly doubled its spending on training in the past five years, expects the move to save $568 million over the next decade.

Bloomberg News contributed to this story.

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