Raytheon & Kongsberg Potential Sale up to $846 Million
The US Navy (USN) has selected the Naval Strike Missile (NSM) to meet its requirement for over-the-horizon (OTH) strike for the Littoral Combat Ship (LCS) and its future frigates. A DoD contract announcement on 31 May revealed the USN has placed an order with Raytheon and Kongsberg valued at $14.8 million, which MONCh understands involves around a dozen missiles and a single fire control suite. If all current options were to be exercised, the cumulative value would rise to almost $850 million.
The award to the international team is hardly a surprise: NSM was the only competitor for the OTH contract. The Boeing HARPOON Block II Plus and the Lockheed Martin Long-Range Anti-Ship Missile (LRASM) were both withdrawn from the competition last year, both companies apparently protesting that navy requirements did not adequately value the networking capability of their offerings.
NSM is a precision strike missile that can defeat heavily defended land and sea targets at ranges of up to 100mi, using advanced seeker and target identification technologies. The missiles will be manufactured in Norway, while Raytheon will fabricate launchers and components in the US, having engaged over 20 American companies in the supply chain. About 78% of the work by value will be performed in Norway, 18% in the US and the balance in Germany, according to the DoD announcement.
NSM has been in Norwegian service since 2012. The two companies announced they would partner to compete for new US anti-ship missile contracts in 2015 and the following year agreed to assemble and test the Norwegian missile’s components in Raytheon’s Tucson, AZ facility and the launchers in Louisville, KY.
“Raytheon and Kongsberg are providing the Navy with a proven, off-the-shelf solution that exceeds requirements for the over-the-horizon mission. Because it is operational now, NSM saves the United States billions of dollars in development costs and creates new high-tech jobs in this country,” observed Raytheon Missile Systems‘ President, Dr. Taylor W. Lawrence.
“Raytheon and Kongsberg are celebrating 50 years of cooperation, and the selection of the NSM marks another successful step for our close relationship. We are able to provide the US Navy with the best of two worlds by combining the capability of NSM with Raytheon’s proficiency as the world’s largest missile maker,“ added Kongsberg Defence and Aerospace AS President, Eirik Lie.