Raytheon Modification Raises Ship Defense Contract Value to $197.5M

The U.S. Navy has awarded Raytheon Co. (NYSE: RTN), Tucson, Ariz., an $18, 346, 000 contract modification to provide engineering and technical services in support of the MK15 Phalanx close-in weapon system.

The modification raises the contract value to an estimated $197, 548, 604.

Eighty percent of the purchases are for the U.S. government. The remaining purchases are for Japan, Australia, New Zealand and Taiwan under the Foreign Military Sales program.

The system is a fast-reaction terminal defense against low and high-flying, high-speed maneuvering anti-ship missile threats that have penetrated all other ships’ defenses.

It is an integral element of the in-depth concept and the ship self-defense program. It is installed on approximately 187 Navy ships and is used by more than 20 foreign militaries.

Work will be performed in Tucson, Ariz., and is expected to be completed by April 2012. The Naval Sea Systems Command, Washington, D.C., is the contracting activity.

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