Raytheon to Support Navy Phalanx, SeaRAM Weapon Systems Under Potential $399M Contract

Raytheon (NYSE: RTN) has been awarded a potential $398.6 million contract by the U.S. Navy to provide design agent engineering and technical services for the military branch’s close-in weapon and anti-ship missile defense systems.

Work covers support for Phalanx Close-in Weapon System, SeaRAM and Land-based Phalanx Weapon System at various locations in the U.S. through January 2018, the Defense Department said Tuesday.

The cost-plus-fixed-fee contract contains a $64.6 million base value and foreign military sales to Saudi Arabia, Taiwan, Canada, U.K., South Korea, Portugal and Greece.

The Navy obligated $5.8 million at the time of award from the branch’s fiscal 2017 weapons procurement; foreign military sales; and fiscal 2015 and 2016 shipbuilding conversion funds.

Phalanx is a key component of the Fleet Defense In-Depth concept and the Ship Self-Defense Program and designed to automatically identify, track and engage low- and high-flying anti-ship missile threats.

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