By Ann Roosevelt

Raytheon [RTN] won the $23 million Army cost-plus incentive fee contract over ATK [ATK] for the next phase of the Excalibur Ib 155mm artillery shell.

The work under the contract, released by the Defense Department Aug. 25, will be to finalize the next-generation 155mm precision-guided projectile’s design and for design qualification.

Delivery of the Excalibur Ib rounds is projected to occur in 2012, with the contract expected to be completed by Sept. 30, 2013.

It was almost a year ago that Raytheon and ATK were each awarded phase 1 contracts for the Excalibur Ib (Defense Daily, Sept. 8).

The Army requires the Ib to improve performance over the Excalibur Ia, with extended range, higher reliability and significantly lower unit production costs.

The Army reduced production numbers for Excalibur from 30,000 to 6,264, which caused costs to rise resulting in a Nunn-McCurdy unit cost breach.

Based on the combat-proven Excalibur Ia, Excalibur Ib uses GPS technology to provide a first round, fire-for-effect, precision capability that limits collateral damage, Raytheon said yesterday in a statement. Whether danger close or across a valley, Excalibur projectiles give warfighters life-saving options.

“Raytheon’s Excalibur Ib design will give our warfighters a pinpoint precision capability that will limit collateral damage while protecting the brigade combat teams,” said Taylor Lawrence, Raytheon Missile Systems president. “Excalibur Ib is an affordable, reliable solution to the U.S. Army’s need for precision artillery fire.”

The Excalibur Ib program met the Army’s cost reduction goals and increased its reliability by using fewer parts and simpler manufacturing.

“With more than 100 successful test flights during its development, Raytheon’s Excalibur Ib team demonstrated the unwavering reliability and robust capability of its design,” said Jim Riley, Raytheon’s vice president of Land Combat.

The Excalibur program is a cooperative effort between the United States and Sweden. As is the Ia, the Excalibur Ib projectile is to be compatible with U.S. artillery systems and the Swedish Archer Artillery System.