Raytheon Awarded $242 Million RAM Block 2 Contract

The Naval Sea Systems Command (NAVSEA) on Thursday awarded Raytheon [RTN] a $242 million contract for a Rolling Airframe Missile (RAM) Block 2 guided missile round pack destined for the U.S. Navy and Qatar.

The RAM system is designed to provide anti-ship missile defense for various naval platforms. The contract covers the missile round pack, missile ordnance alterations, and spares.

The USS Kearsarge (LHD 3) fires a Rolling Airframe Missile (RAM) during a military exercise on June 14, 2015. Photo: U.S. Navy.

The USS Kearsarge (LHD 3) fires a Rolling Airframe Missile (RAM) during a military exercise on June 14, 2015. Photo: U.S. Navy.

The contract combines purchases for the U.S. Navy (43.5 percent) and Qatar, Egypt and Turkey 56.5 percent) under the Foreign Military Sales (FMS) program.

The contract includes options that, if exercised, would raise the total value to $530 million.

Work for the contract will be split largely among Ottobrunn, Germany (43.8 percent), Tucson, Ariz., (34.7 percent), and Rocket Center, W.Va. The work is expected to be finished by September 2023 and if the options are included they will be delivered before September 2023.

In all, $137 million in FMS accounts and $100 million in FY 2018 Navy weapons procurement accounts were obligated at award time.

The Navy noted the contract was not competitively procured due to U.S. Code exceptions for international agreements.





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