January 7, 2009 6:00 AM
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Raytheon Had Protested Recent AEGIS Contract Award?
(MoneyWatch) The GAO recently denied for the third time a protest by Raytheon of an AEGIS system upgrade contract to Lockheed. They had argued as reported by Reuters that it shouldn't have been a sole source. AEGIS was developed by Lockheed and is produced by Lockheed and always has been. Although it is because Lockheed bought the company that bought the company that made the system back in the Seventies. Raytheon had argued that they might have teamed with Lockheed on this contract, but there was no evidence reported that such a teaming had been discussed. The main reason was that the U.S. Navy has looked to cancel the new destroyer and continue to produce and improve the older AEGIS design. Raytheon made the combat system for the DDG-1000 and by ending this program the Navy took away a lot of revenue. In retrospect it is understandable that Raytheon was piqued about this but this is one protest that they must of known would not go anywhere.
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