Philippine Government awarded $18 Million Dollars contract to a US company for SE-Asia’s first DTRA Border Security

Raytheon Company (RTN ) has clinched a Defense Threat Reduction Agency or DTRA contract for maritime border security in the Philippines. This marks the first border security-related contract from Southeast Asia.

Raytheon has worked with the DTRA − a U.S. Department of Defense unit for interdicting the movement of weapons of mass destruction (WMD) − on cooperative threat reduction operations under a number of contracts.

Per the two-year base contract, Raytheon is responsible for designing and developing a National Coast Watch Center (NCWC), thereby integrating data from various agencies into the NCWC. The company will also install and provide training on an automatic identification system as well as radio communications for the government of the Philippines.

Philippine National Coast Watch Center (NCWC) was created in September 2011 under Executive Order 57 signed by the President Aquino, which calls for the establishment of a National Coast Watch Center headed by the Philippine Coast Guard to implement and coordinate maritime security operations in the country.

Raytheon Company through the 2 year base $18 Million US Dollars contract will develop and equip with state of the art Intelligence, Surveillance and Reconnaissance technology for the newly created National Coast Watch Center of the Philippines to detect territorial intrusions.

Under the two-year base contract, Raytheon will develop, design and construct the existing  National Coast Watch Center (NCWC); support integration of data from various agencies into the NCWC; and provide acquisition, installation and training on an automatic identification system as well as radio communications for the Government of the Philippines. The contract was awarded July 2013, and will end July 31, 2015.

"The Philippines contract extends Raytheon's border security solutions portfolio to Southeast Asia and confirms that our integration solutions, program management leadership and international expertise are valuable as we expand our support of customers around the world," said David Appel, director of Surveillance, Range, and Infrastructure Solutions for Raytheon's Intelligence, Information and Services business.

"With this contract, Raytheon continues its role in providing critical services and solutions to help other countries deter, detect and interdict illicit weapons and materials that could harm their citizens."

Raytheon has performed similar work for DTRA under other contracts as well. The CTR Integrating Contract (CTRIC II), awarded in April 2011, is a multiple award indefinite delivery, indefinite quantity contract, and the Philippines project is part of CTRIC II.

In April, Raytheon won a three-year, $35.9 million DTRA border security agreement. Per the agreement, Raytheon is responsible for designing, developing and implementing an integrated surveillance system along sections of the Jordanian border. The company will also provide training, maintenance and repair, as well as equipment. In fact, the Jordan venture is a part of the CTR Integrating Contract (CTRIC II), from Apr 2011, in this field.

Based in Waltham, Mass., Raytheon Company is a technology and innovation leader specializing in defense, homeland security and other government markets throughout the world. Going forward, revenue and earnings growth would continue to be driven by its strong presence in the areas of Intelligence, Surveillance and Reconnaissance (ISR); air & missile defense systems; border security; air traffic management; training and homeland security; and cyber security. The company remains actively involved in a number of classified U.S. government programs, principally through its IIS and SAS business segments.

Among the large-cap defense players, Raytheon is one of the best-positioned companies. Late last month, the company reported its second quarter 2013 earnings that exceeded our expectation by 26.1% and were also above the year-ago profit level by 4.5%. The beat was driven by strong program execution and the ability of the company to match the security needs of its customers through premium quality products.

State-of-the-art technology and missiles developed by the company allow it to have a competitive edge and ensure a continuous flow of contracts from the U.S. defense department and from its global customers

With reports from The Wall Street Journal, Global Balita and Zacks