Brief ·
Raytheon: AN/TPY-2 radar support gets a two-year extension
The ceiling rises by $394M. Only $112.3M is obligated now.
RTXMapped by Backlog Defense. Verify before relying on it. Contract HQ0147-18-D-0001
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The text version below carries the same content.
The signal
The Missile Defense Agency modified an existing sole-source contract to extend operations and sustainment support for AN/TPY-2 radar systems by two years and to raise its ceiling.
| Contractor | Raytheon Co., Woburn, Massachusetts |
|---|---|
| Contract | HQ0147-18-D-0001, modification P00038 |
| Ceiling | $2,605,033,000 to $2,999,033,000 (+$394,000,000) |
| Obligated | $112,309,403 at award, via task order modification |
| Type | Non-competitive extension of an indefinite-delivery contract |
| Ordering period | Oct. 31, 2026 to Oct. 31, 2028 |
Source: Department of War contracts listing, Oct. 21, 2026
Read carefully
- The $394M is added ceiling, a maximum, not funded revenue.
- Only $112,309,403 is obligated at award. Further money arrives through task orders.
- This extends a contract that already exists. It is not a new program.
- Task order extensions are also being awarded. The announcement gives no values for them.
Scale
+$394M
Ceiling increase, from $2.605B to $2.999B
$112.3M
Obligated at the time of award
≈0.4%
Ceiling increase vs RTX's 2026 sales outlook of $97.0B to $97.5B
Backlog Defense calculation. A ceiling is a maximum over the ordering period, so this is a scale check, not a revenue estimate.
Why it matters
The award keeps Raytheon on a long-running sole-source radar support contract through October 2028. RTX reported third quarter results the day before the announcement was posted.
- Raytheon segment sales were $8.03B in Q3, up 14% from a year earlier.
- RTX reported a total backlog of $340B, including $164B of defense.
- RTX raised its 2026 adjusted sales outlook to $97.0B to $97.5B.
What to watch
- How much of the higher ceiling is ordered through task orders.
- The values of the task order extensions awarded alongside this modification.
- How RTX reports this in backlog in its next quarterly results.
Sources
The award in the tracker
| List date | Company | Branch | Kind | Stated amount | Contract | Source |
|---|---|---|---|---|---|---|
| 21 Oct 2026 | Raytheon Co.RTXRTXMapped by Backlog Defense. Verify before relying on it. | Missile Defense Agency | Modification | No stated valueCeiling increaseNo value | HQ0147-18-D-0001Read the brief | Official list for 21 Oct 2026 |
Source textRaytheon Co., Woburn, Massachusetts is being awarded a contract modification (P00038) under a previously awarded indefinite-delivery/indefinite-quantity contract HQ0147-18-D-0001. This modification provides for a non-competitive, two-year extension and increases the contract ceiling from $2,605,033,000 to $2,999,033,000. The current contract was the result of a sole-source acquisition. Under this contract extension, Raytheon will continue operations and sustainment support for the Army Navy/Transportable Radar Surveillance and Control Model 2 (AN/TPY-2) radar systems, utilizing a combination of cost-plus-incentive-fee, cost-plus-fixed-fee, and firm-fixed-price contract line items. Associated task order extensions reflecting the increase are also being awarded. The work will be performed in Woburn, Massachusetts, and at multiple radar sites inside and outside of the continental U.S. The contract modification will extend the current ordering period an additional two years from Oct. 31, 2026, to Oct. 31, 2028. Fiscal 2027 operations and maintenance, research, development, test and evaluation, and procurement funds totaling $112,309,403 will be obligated at the time of award via task order modification. The Missile Defense Agency, Redstone Arsenal, Alabama, is the contracting activity.
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What the labels mean
- Ceiling increase
- The announcement raises a contract ceiling. The increase is a maximum, not new money.
- No value
- The award sentence states no contract value. Dollar figures further down are usually obligated funds.
Amounts are shown one award at a time and are never added up: ceilings, modifications and obligated funds are not comparable.