Raytheon awarded contract for Evolved Sea Sparrow Missile program

Nov. 16 (UPI) -- Raytheon Missile Systems has been awarded a modified contract to exercise options to procure spares for the Evolved Sea Sparrow Missile, or ESSM, Block I multi-year production requirements.

The ESSM is an upgraded version of the Sea Sparrow anti-ship missile defense system, which itself is a collaborative effort between the U.S. Navy and 11 other nations of the North Atlantic Treaty Organization Sea Sparrow Consortium.

The deal, announced Wednesday by Navy officials, is worth more than $7.7 million under a firm-fixed-price modified contract, meaning, additional costs accumulated during production by Raytheon will not be reimbursed by the U.S. government.

Raytheon says it will provide "all-up rounds, inert operation missiles, spare components and shipping containers, and will provide other production-related support."

The majority of the work will be performed in Tucson, Ariz., and other locations across the United States, Germany, Australia, Canada, Norway, Spain, the Netherlands and Greece. The work is expected to be completed by May 2020.

Navy officials said fiscal 2018 weapons procurement funding in the amount of more than $7.7 million will be obligated at the time of the award contract, and will not expire at the end of the current fiscal year.