Navy taps Raytheon for RAM missiles for foreign military sales

May 11 (UPI) -- Raytheon Missile Systems has been awarded a contract from the U.S. Navy for rolling airframe missiles.

The deal, announced Thursday by the Department of Defense, for Rolling Airframe Missile Block 2 guided missile round packs is valued at more than $242 million under the terms of a firm-fixed-price contract for fiscal 2018 Navy and foreign military sales to Qatar, along with Egypt and Turkey, according to the Defense Department.

The contract from Naval Sea Systems Command also enables Raytheon to provide missile ordnance alterations and spares, with options built into the contract that could surge the total cumulative value of the contract to more than $529.7 million if exercised.

The Rolling Airframe Missile system is built for ship defense countermeasures and is designed to engage anti-ship missiles.

Work on the contract will occur in multiple locations across the United States, as well as Germany and Scotland. The period of performance will expire in September 2023, even if contract options are exercised.

The total cumulative value of the contract without exercised options will be obligated to Raytheon at time of award from multiple U.S. Navy fiscal accounts and foreign military sale funds, the Pentagon said.

Of the obligated funds, $5 million will expire at the end of the current fiscal year.