The US Air Force has awarded Raytheon Inc. of Tucson, Ariz., a $173.7 million contract for the production of Paveway II laser-guided bomb kits. The semiactive weapons, of which Raytheon is a legacy producer, can zero in on directed energy reflected from a target. The award is the majority share of the fiscal 2003 competition for fabrication of the bomb kits. The Air Force will award up to $2 billion for their production through 2009.