Raytheon Receives Nearly $160 Million for Close-In Weapon System

October 5, 2015

Raytheon Co., Tucson, Arizona, is being awarded a $159,958,743 firm-fixed-price contract for MK 15 Close-In Weapon System (CIWS) upgrades and conversions, system overhauls and associated hardware. The CIWS 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 CIWS is an integral element of the Fleet Defense In-Depth concept and the Ship Self-Defense Program. Operating either autonomously or integrated with a combat system, it is an automatic terminal defense weapon system designed to detect, track, engage, and destroy anti-ship missile threats penetrating outer defense envelopes. This contract includes options which, if exercised, would bring the cumulative value of this contract to $461,712,911. This contract combines purchases for the United States (99.29 percent); and the government of New Zealand (0.71 percent) under the Foreign Military Sales program. Work will be performed in Tucson, Arizona (21.73 percent); Louisville, Kentucky (21.41 percent); Williston, Vermont (6.56 percent); Melbourne, Florida (4.74 percent); Andover, Massachusetts (4.06 percent); Pittsburgh, Pennsylvania (3.42 percent); Ottobrunn, Germany (2.59 percent); Tempe, Arizona (2.23 percent); Hauppauge, New York (1.71 percent); Ashburn, Virginia (1.4 percent); Phoenix, Arizona (1.4 percent); Towcester, United Kingdom (1.35 percent); Salt Lake City, Utah (1.32 percent); Palo Alto, California (1.17 percent); Van Nuys, California (1.12 percent); East Syracuse, New York (1.04 percent); and various locations less than 1 percent each (22.75 percent), and is expected to be completed by October 2018. Fiscal 2015 operations and maintenance (Navy) funding in the amount of $64,107,934; fiscal 2015 weapons procurement (Navy) funding in the amount of $55,121,502; fiscal 2015 shipbuilding and conversion (Navy) funding in the amount of $25,117,734; fiscal 2015 other procurement (Army) funding in the amount of $14,393,650; and foreign military sales funding in the amount of $1,217,923, will be obligated at time of award. Contract funds in the amount of $78,501,584 will expire at the end of the current fiscal year. This contract was not competitively procured in accordance with Federal Acquisition Regulation 6.302-1–only one responsible source and no other supplies or services will satisfy agency requirements. The Naval Sea Systems Command, Washington Navy Yard, Washington, D.C., is the contracting activity (N00024-15-C-5406).

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