Raytheon (NYSE: RTN) has secured a potential four-year, $367.2M contract from the U.S. Navy to update a radar-guided missile defense system and related hardware for domestic and foreign military customers.
The sole-source contract has a $199.6M base value and includes system overhaul work on the Phalanx MK 15 Close-In Weapon System designed to detect and counter incoming anti-ship missiles, the Department of Defense said Friday.
Fiscal 2019 U.S. Army and Navy funds as well as foreign military sales funds from the U.K. and Saudi Arabia will be obligated to cover the firm-fixed-price contract™s base amount.
The Pentagon expects contract work to be complete by October 2023. CIWS is a computer-controlled gun used on Navy surface combatant ships and on similar vessels of 24 U.S. allies. The Army uses the system on ground to counter incoming rounds.
