The U.S. Army has awarded Raytheon Company (NYSE: RTN) a $5.7 million risk-mitigation contract for the Long Range Precision Fires program.  The new missile will replace the Army’s aging inventory of long range, surface-to-surface missiles. Fired from mobile launchers, LRPF will fly farther, faster, and feature a new warhead.

“As the world’s largest missile maker, Raytheon is ideally positioned to develop the Long Range Precision Fires solution the Army needs,” said Dr. Thomas Bussing, Raytheon Advanced Missile Systems vice president. “With our wide portfolio of products, proven technology and guided missile expertise, Raytheon can deliver a low-risk, highly effective and affordable solution.”

The Army’s current inventory of long range, precision-guided, surface-to-surface missiles dates back to the 1980s.  The new LRPF missile will be more affordable, survivable against advanced threats, and more compact, allowing the Army to double the fire power of long-range missiles in its mobile launchers.

Under the 9-month risk-reduction contract, Raytheon will conduct baseline system design.  The Army is expected to solicit proposals for a more comprehensive technical maturation/risk reduction phase later, an effort that will culminate in flight testing.