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U.S. Army Selects Raytheon for Next-Generation Excalibur Ib Program

Category: Contracts

TUCSON, Ariz. -- Raytheon Company has won the competition for the next phase of Excalibur Ib and has been awarded a $23 million U.S. Army contract to finalize the next-generation 155 mm precision-guided projectile's design. Delivery of the Excalibur Ib rounds is projected to occur in 2012.

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. 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 Dr. 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 U.S. 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.

Raytheon Company, with 2009 sales of $25 billion, is a technology and innovation leader specializing in defense, homeland security and other government markets throughout the world. With a history of innovation spanning 88 years, Raytheon provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems, as well as a broad range of mission support services. With headquarters in Waltham, Mass., Raytheon employs 75,000 people worldwide.

The U.S. Army recently reduced the production numbers of the Excalibur precision-guided projectile from 30,000 to 6,264 projectiles, which caused the program to enter a Nunn-McCurdy unit cost breach. While the reduced production numbers drive up the cost of the round for that lower quantity, the Excalibur Ib program still represents value and provides cost-savings to the U.S. Army over time. Even with the current Nunn-McCurdy breach, the U.S. Army is procuring a lower-cost round (Excalibur Ib) without sacrificing performance.

The Excalibur Ib contract is in two parts over 22 months with a total contract value of $60 million. Part 1 covers finalizing the design, and part 2 is for design qualification.


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