The U.S. Air Force today selected Raytheon Corp. and subcontractor Saab Defense of DeWitt as the winner of a competition to produce its next generation of long-range radars.
The decision means that Raytheon and Saab Defense will be in a position to secure a lucrative long-term production deal estimated to be worth up to $1.3 billion in total sales over the next 10 years, according to local media reports.
Raytheon beat out competing bids from Lockheed Martin in Salina, as well as defense giant Northrup Grumman.
The Air Force said it plans to authorize spending $71.8 million to complete development of the Three-Dimensional Expeditionary Long-Range Radar (3DELRR) and produce the first six units for deployment. The contract will complete the initial engineering, manufacturing and development phase.
"We worked very hard as a key partner on the Raytheon team to maximize the competitiveness of our 3DELRR offering," Saab said in statement. "Today the U.S. Air Force has chosen the Raytheon--Saab team to provide this mission critical capability, and we couldn't be more proud to be a major partner on the Raytheon team.
"While it is too early for us to comment more on the specific potential impact to our company and to the region based on this decision, there is no doubt that the 3DELRR program represents a significant positive impact to the local economy," the statement said.