Pentagon Extends Raytheon Radar Contract After Fraud Admission
The Missile Defense Agency has extended Raytheon’s radar maintenance contract for two years, raising its ceiling by up to $394 million. The Pentagon announced the extension in October; $112.3 million of the additional amount has already been committed. The work will continue through 2028, in the United States and overseas, supporting Army-Navy transportable radar systems.
Raytheon, a subsidiary of RTX, admitted in 2024 to inflating an Air Force radar maintenance contract by about $11.1 million and to an additional $100.1 million scheme concerning an Army Patriot missile agreement. The Justice Department said the schemes led the Defense Department to pay the company more than $111 million beyond what it was owed. Raytheon entered a deferred prosecution agreement that included three years of government oversight.
In September, Navy officials decided suspension or debarment was not needed to protect government interests, allowing Raytheon to remain eligible for federal contracts. The Navy later awarded the company a $15.1 million order for radar parts. In October, it also awarded Raytheon a missile contract worth up to $24 billion, while the Missile Defense Agency announced a separate missile deal worth up to $6.3 billion.
The radar contract’s ceiling had previously risen by $900 million in 2024, nine days after the deferred prosecution agreement was announced. The Missile Defense Agency said it reviewed contractor responsibility and eligibility, and proceeded because Raytheon was not suspended or debarred and the work met a critical mission need. The Pentagon and Raytheon were asked for comment.
Pentagon Keeps Billions Flowing to Raytheon After Fraud
The Pentagon is continuing major business with Raytheon after the weapons contractor admitted to fraud against the government. In October, the Missile Defense Agency added a two-year, no-bid extension worth up to $394 million to a radar support contract, with $112.3 million already committed.
Raytheon admitted in 2024 to inflating an Air Force radar maintenance deal by about $11.1 million and to an additional $100.1 million scheme concerning an Army Patriot missile agreement. The Justice Department said the conduct cost the Defense Department more than $111 million. A deferred prosecution agreement placed the company under three years of government oversight.
Yet Navy officials decided in September not to suspend or debar Raytheon, leaving it eligible for further federal work. The Navy then awarded it a $15.1 million radar-parts order. In October, the Navy also awarded Raytheon a missile deal worth up to $24 billion, and the Missile Defense Agency announced another missile contract worth up to $6.3 billion.
The radar contract’s ceiling had already been increased by $900 million in 2024, only nine days after federal prosecutors disclosed the agreement. The Missile Defense Agency said it moved ahead because Raytheon was not suspended or debarred and the contract served a critical mission need. The sequence raises a stark question about accountability: what practical consequence does a fraud admission bring when federal agencies keep expanding the contractor’s work?
Pentagon Cites Mission Need in Raytheon Radar Extension
The Missile Defense Agency has extended Raytheon’s radar support work for two years, adding up to $394 million to a contract that supports military radar systems. The Pentagon said $112.3 million of the added amount was already obligated and the work will continue through 2028.
The decision followed a Navy determination in September that suspension or debarment was not necessary to protect government interests. Raytheon had admitted in 2024 to inflating an Air Force radar maintenance deal by about $11.1 million and to an additional $100.1 million scheme concerning an Army Patriot missile agreement. The Justice Department said the schemes caused more than $111 million in excess payments, and Raytheon entered a deferred prosecution agreement with three years of oversight.
The Missile Defense Agency said it reviewed contractor responsibility and eligibility before acting. It cited Raytheon’s continued eligibility and the critical mission requirement as reasons for the extension. That is the agency’s stated basis for proceeding with a no-bid contract modification.
The extension comes amid other military awards to Raytheon. The Navy issued a $15.1 million order for radar parts and awarded a missile contract worth up to $24 billion in October; the Missile Defense Agency also unveiled a missile agreement valued at up to $6.3 billion. The radar contract’s ceiling had previously increased by $900 million in 2024, shortly after the deferred prosecution agreement was announced. Decisions on federal contracts should turn on eligibility and mission requirements, and the agency says both supported this extension.
Reported by The Daily Beast, Raw Story.
