Dec. 15 (UPI) -- Raytheon Missile Systems has been awarded a modified contract from the U.S. Navy for support services on the Rolling Airframe Missile Mark-31 Guided Missile Weapon System.
The deal, announced Thursday by the Department of Defense, is worth more than $22.5 million under a cost-plus-fixed-fee modification to a previously awarded contract, which is a cost-reimbursement contract that would potentially reimburse Raytheon on cost overruns.
Generally, the reimbursement fee is negotiated at the inception of the contract. The deal taps Raytheon to aid the U.S. Navy's Rolling Airframe Missile upgraded MK-31 Guided Missile Weapon System Improvement program by "exercise options for design agent and engineering support services."
The services procured under the previous contract provide "current weapon system capability as well as resolve issues through design, systems, software maintenance, reliability, maintainability, quality assurance and logistics engineering services."
The Rolling Airframe Missile system is an anti-ship defense weapon that uses passive radio frequencies and infrared guidance to engage incoming ballistic missiles. The launcher itself holds up to 21-guided missiles.
The Rolling Airframe Missile Mark-31 Guided Missile Weapon System has been developed under joint cooperation between the United States and Germany, according to the Pentagon.
Work on the contract will be performed in Arizona and Kentucky, and is expected to be completed by September 2019.
More than $4.6 million will be obligated to Raytheon at the time of the award and will not expire at the end of fiscal year 2018. U.S. Navy weapon procurement funds from the current fiscal year, coupled with foreign military sales, will fund that obligation.