The Navy’s high intensity laser being developed by Boeing [BA] and envisioned to defend against surface and air threats is undergoing critical design review (CDR) this week, a company official said yesterday.

Boeing moved into the current phase of the Free Electron Laser sponsored by the Office of Naval Research (ONR) following a contract award in 2010 that could reach a total value of $163 million.

Mike Rinn told reporters the CDR will continue throughout the week. Following the CDR, the FEL will move toward additional technology and design work.

FEL is designed to operate on ships to fend off missiles or threats posted by small swarming boats. The 100-kilowatt FEL utilizes energy from unbound accelerated high-energy electrons to generate of high-intensity laser light, according to ONR. Rinn said he has the added value of unlimited ammunition.

Boeing and Raytheon [RTN] were awarded contracts for FEL in 2009, but only Boeing’s version advanced past the preliminary design review.