Raytheon Missile Systems was awarded a $199.6 million firm-fixed-price contract for MK 15 Phalanx Close-In Weapon System (CIWS) upgrades and conversions, system overhauls, and associated hardware.
The deal will see the company overhaul Phalanx systems for the United States, United Kingdom and Saudi Arabia.
According to the contract notice:
“Work is expected to be completed by October 2023. This contract combines purchases for the U.S. government (85%); Kingdom of Saudi Arabia (8%); and the United Kingdom (7%) under the Foreign Military Sales (FMS) program.
Fiscal 2019 operations and maintenance (Navy); 2019 other procurement (Army); 2019 shipbuilding and conversion (Navy); FMS Kingdom of Saudi Arabia; FMS United Kingdom; and 2019 weapons procurement (Navy) funding in the amount of $199.6 million will be obligated at time of award. Funds in the amount of $60 million will expire at the end of the current fiscal year.
This contract was not competitively procured in accordance with 10 U.S. Code 2304 (c) (1). Raytheon is the only source that can provide the MK 15 CIWS to fulfill Navy, Army, Coast Guard, and FMS requirements without unacceptable delays and substantial duplication of costs that cannot be recovered through competition. The Naval Sea Systems Command, Washington, District of Columbia, is the contracting activity (N00024-19-C-5406).”
The system is a fast-reaction terminal defense against low- and high-flying, high-speed maneuvering anti-ship missile threats. This contract includes options which, if exercised, would bring the cumulative value of this contract to $367.2 million.