OREANDA-NEWS. Raytheon Company (NYSE: RTN) and Aerojet Rocketdyne, a subsidiary of Aerojet Rocketdyne Holdings, Inc. (NYSE: AJRD) have entered into a new Strategic Sourcing Agreement. Under the SSA, Aerojet Rocketdyne will act as a principal and long-term supplier of its legacy portfolio of propulsion systems and energetics products for key weapons programs.

"This landmark agreement is an important step forward in collaboration between industry partners and the U.S. Government to achieve the objectives of Better Buying Power 3.0," said Raytheon Missile Systems President Dr. Taylor W. Lawrence. "To realize the benefits of this agreement, industry and the U.S. Government must alter their historic way of doing business – that will result in significant taxpayer savings."

As part of the agreement, the two companies will jointly pursue affordability initiatives through 2019.

"We are Raytheon's partner on some of the most important propulsion systems for our nation's warfighters and national defense programs," said Aerojet Rocketdyne CEO and President Eileen Drake. "This agreement expands our long-term relationship with Raytheon and is a direct result of our commitment to deliver quality products on schedule, while remaining firmly focused on affordability."

In 2015, Raytheon presented Aerojet Rocketdyne with an Award for Excellence in Affordability during a supplier conference in Boston, Massachusetts.