Raytheon scores $231M contract to upgrade Navy defense system

Raytheon Co. has won a $231 million contract with the U.S. Navy to upgrade a system that protects ships from missile threats.

The MK15 Phalanx close-in weapon system is a fast-reaction terminal defense against low and high-flying, high-speed maneuvering anti-ship missile threats that have penetrated all other defenses, the Defense Department said. The MK15 Phalanx close-in weapon system, or CIWS, is an element of the fleet defense in-depth concept and the ship self-defense program.

The contract has a base of $136.2 million. The contract was awarded through the Foreign Military Sales program, this contract combines purchases for the U.S. Navy, Japan, the U.S. Army and Pakistan.

Under the contract, Raytheon will also provide conversions, system overhauls and associated hardware.

Work will be performed in Louisville, Ky., Anaheim, Calif., Melbourne, Fla., Dayton, Ohio, Syracuse, N.Y., McKinney, Texas, Andover, Mass., Bloomington, Minn., Radford, Va., Salt Lake City, Utah, and Tucson, Ariz., and is expected to be completed by September 2017.

Funding in the amount of $136.2 million is obligated at the time of the award, of which $55 million will expire at the end of fiscal 2013.