Benzinga | Nov 16, 2021 09:15AM EST

CPI Aerostructures Reports Raytheon Authorized Co. To Begin Manufacture Of Pod Structures, Air Mgmt. System Components For Initial Production Phase Of Next Gen Jammer Mid-Band Program

Initial Production Order for Pods and Components Estimated to be up to $20.6 Million

EDGEWOOD, N.Y., Nov. 16, 2021 (GLOBE NEWSWIRE) -- CPI Aerostructures, Inc. ("CPI Aero(r)" or the "Company") (NYSE:CVU) announced today that Raytheon Intelligence & Space authorized CPI Aero to begin manufacture of pod structures and air management system components for the initial production phase of the Next Generation Jammer Mid-Band (NGJ-MB) program. The binding notification provides approximately $10.3 million in funding to begin work and establishes a maximum value of $20.6 million for a contract that is expected to be finalized before the end of 2021. Deliveries of these new pods and air management system components are expected to occur from late 2022 through 2023.

Raytheon Intelligence & Space is designing and manufacturing NGJ-MB, a high-capacity, self-powered airborne electronic attack weapon system for the EA-18G Growler. It is designed to protect air forces by denying, degrading and disrupting threat radars and communication devices. There are two NGJ-MB pods per EA-18G aircraft. In June 2021, the NGJ-MB program achieved Milestone C and the Navy authorized Raytheon Intelligence & Space to enter the production phase. The NGJ-MB program of record consists of 135 shipsets for the U.S. Navy (with one shipset equaling two pods). Fourteen shipsets are also planned for delivery to the Royal Australian Air Force. The orders announced today support the first eight aircraft to receive the NGJ-MB system.

"CPI Aero has been a key supplier to Raytheon Intelligence & Space on this program since 2016, and we are proud to play an important role in getting this critical electronic warfare capability into the fleet," stated Douglas J. McCrosson, president and CEO of CPI Aero. "The NGJ-MB is one of our most significant programs and has already generated more than $80 million in funded awards since its inception. As we begin the production of an expected 300-plus pod structures and air management systems over the course of the next decade, the NGJ-MB is on track to become the most valuable program in our 40-year history."