Record contract for "Phalanx Close-In Weapon System, a rapid-fire naval weapon designed to shoot down incoming missiles and planes"

Saw this in the paper yesterday.... makes you wonder....

Local Raytheon unit captures record $369 million contract
14 new Phalanx systems, over 50 upgrades ordered
Raytheon Missile Systems has received its biggest order yet for its Louisville-made Phalanx Close-In Weapon System, a rapid-fire naval weapon designed to shoot down incoming missiles and planes.

The $369 million Defense Department contract includes orders for 14 land-based Phalanx systems for the Army, which has deployed several of the high-tech Gatling guns in Iraq. They are used to intercept rockets, artillery shells and mortar rounds.



The land systems are basically the same as the naval guns, said Raytheon spokesman John Eagles, but their computer programming allows them to interact with other Army radars and sensors.

The Phalanx is deployed in Iraq as part of a broader system that can track incoming fire to its source and fire back.

"We can not discuss the locations, quantities or any detailed statistics on performance because of operational concerns," said an Army spokesman, who asked not to be named. The service "is very pleased with the system's performance, and feedback from the field is positive. This is saving lives and providing a capability we did not have before," the spokesman said.

The contract will provide work for the Raytheon operation at the Airport Industrial Center through 2009, Eagles said, but won't add to the 342 jobs there.

Last year, Raytheon secured $4.6 million in potential incentives from the Kentucky Economic Development Finance Authority for a proposed expansion that would add 275 jobs. The company is still discussing the idea with the Navy, Eagles said, but no decision is expected soon.

About half the money in the new contract will pay for overhauls and upgrades to 50 Navy Phalanx systems, Eagles said. The gun began production in 1979, and the latest upgrade is known as the Block 1B.

"The 1B configuration is the system that the Navy is going to convert all its Phalanxes to in the U.S. fleet," Eagles said. "I think there are 187 (deployed) in the fleet, but the Navy owns many more than that. Phalanx 1B is going to be around for a while."

The contract also includes upgrades of six Phalanx systems owned by Pakistan's navy and overhauls of two older systems for Australia's navy.

Raytheon Missile Systems' previous record Phalanx contract was a $107 million order in 2003 for overhauling 42 naval guns.

[link to www.courier-journal.com]