A new $1.8 billion Navy contract is set to keep work flowing through Raytheon's Andover campus for years, reinforcing the facility's role as one of the town's largest economic engines.

The contract, announced Wednesday, July 22, extends production of the Navy's SPY-6 radar system. With future options, the deal could grow to $3.3 billion.

For most residents, the biggest takeaway isn't the radar itself — it's what the contract means for Andover. Raytheon's campus employs about 10,000 people, making it the town's largest private employer, and the company has already said it expects to double SPY-6 production by 2028.

That expansion is expected to fuel continued hiring for engineers and other manufacturing positions.

This is the second major SPY-6 contract Raytheon has landed in just two months. In June, the company announced another $515 million Navy award and said it had invested more than $800 million to modernize its Andover manufacturing facilities.

The SPY-6 radar is the Navy's newest air and missile defense system. It is designed to detect and track threats ranging from aircraft and cruise missiles to ballistic and hypersonic missiles, and is expected to be installed on more than 50 Navy ships over the next decade.

Most of that work happens right here in Andover, where Raytheon manufactures the radar systems at its sprawling campus off Interstate 495.

While Raytheon has not released a timeline for the new contract, the latest award signals that Andover will remain at the center of one of the Navy's biggest long-term defense programs—and that the campus will continue to be a major source of local jobs and investment for years to come.