Raytheon, Computer Sciences Corp. Ink Deal With Army For Up To $11.2B

Raytheon Co. and partner Computer Sciences Corp. said Tuesday the two companies won an initial army training contract worth $3 billion, with the possibility for contract extensions worth up to a total of $11.2 billion. The 10-year contract, the largest ever issued by the U.S. Army's virtual and constructive training operations and support systems, is for a program dubbed The Warfighter Field Operations Customer Support. It will consolidate operations, maintenance and engineering support services on all Army training programs. Raytheon Chairman and CEO William H. Swanson said he was "honored the Army has selected the WTA for this historic training consolidation initiative." [The Warrior Training Alliance [WTA] is an alliance of member companies dedicated to providing integrated training support to the warfighter.] Raytheon shares gained 1.2% in Tuesday trading while Computer Sciences shares were up 2.8% on the news.

Sources: Press Release, Bloomberg, Dow Jones Newswires, AP
Commentary: Defense Stocks: P/E Isn't the Only Consideration • Cramer's Take on RTN • Covansys, Computer Sciences: IT Outsourcing Merger Update
Stocks/ETFs to watch: Raytheon Co. (RTN), Computer Sciences Corporation (CSC). Competitors: Lockheed Martin (LMT), Boeing (BA), General Dynamics (GD), Northrop Grumman (NOC), Armor Holdings (AH), SAIC (SAI). ETFs: iShares Dow Jones US Aerospace & Defense ETF (ITA), PowerShares Aerospace & Defense ETF (PPA)
Related: Military Training Technology Online • Warrior Training Alliance [WTA]

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