The U.S. Navy has awarded Raytheon, a business under RTX, a $205 million contract for continued production and support of the Phalanx Close-In Weapon System (CIWS), a key point-defense system deployed across the Navy’s surface fleet.
The contract, announced September 8, includes upgrades, overhauls, conversions, and the delivery of related equipment as part of a multi-year effort to extend the operational life and performance of the shipboard defense system.
“Phalanx is our Navy’s last line of defense, expertly designed to protect our sailors from the threats they face every day,” said Barbara Borgonovi, President of Naval Power at Raytheon. “Securing this contract underscores the trust the U.S. Navy places in an absolutely critical system.”
The Phalanx CIWS is a radar-guided, computer-controlled rapid-fire gun system designed to intercept and destroy incoming threats at close range, including anti-ship missiles, drones, and other low-flying projectiles that may evade outer layers of a ship’s defensive network. It is installed on all U.S. Navy surface combatant classes, as well as on ships operated by 24 allied nations.
Raytheon says work related to this contract will continue at its Louisville, Kentucky facility, with additional production and integration support occurring at other U.S. sites through 2029.
The system’s effectiveness has been proven in combat. In January 2024, the USS Gravely, an Arleigh Burke-class guided missile destroyer, used its Phalanx system to intercept and destroy an incoming Houthi-launched missile in the Red Sea just seconds before it reached the vessel. According to the Navy, the rapid response prevented a direct hit and likely saved the lives of over 300 sailors onboard.
The Phalanx has long served as a critical component of layered naval defense architecture, typically operating as the final safeguard once longer-range missile systems and soft-kill countermeasures have failed to neutralize a threat. The system’s self-contained design allows for autonomous detection, tracking, and engagement, making it particularly effective in complex or fast-moving scenarios.
With threats to maritime assets continuing to evolve—ranging from drone swarms to advanced anti-ship ballistic and cruise missiles—the Navy has emphasized the need to retain, upgrade, and expand point-defense capabilities across the fleet. The Phalanx remains one of the most widely deployed and combat-proven systems in this role.
Raytheon has continued to refine the Phalanx system with software and hardware enhancements, including better target tracking algorithms, improved radar components, and sustainment improvements aimed at lowering lifecycle costs for operators.
While the U.S. Navy leads in Phalanx deployment, allied navies across Europe, Asia, and the Middle East also rely on the system for critical ship defense roles. Its continued production signals the Navy’s intent to maintain robust short-range protection on its surface ships amid rising global maritime tensions.