Raytheon Co., one of the world’s largest defense contractors, received an $199 million contract from the U.S. Navy for MK 15 Phalanx close-in weapons system (CIWS) upgrades, according to the U.S. Department of Defense.

The contract, announced Friday by the Department of Defense, covers Phalanx weapon systems upgrades and conversions, system overhauls, and associated hardware.

Fast-reaction, 20-millimeter gun weapon system provides ships of the U.S. Navy with an inner layer point defense capability against anti-ship missiles (ASM), aircraft and littoral warfare threats that have penetrated other fleet defenses. Phalanx automatically detects, evaluates, tracks, engages and performs kill assessment against ASM and high speed aircraft threats.

This contract includes options which, if exercised, would bring the cumulative value of this contract to $367,195,456.

“Raytheon is the only source that can provide the MK 15 CIWS to fulfill Navy, Army, Coast Guard, and FMS requirements without unacceptable delays and substantial duplication of costs that cannot be recovered through competition,” said in the Department of Defense.

At sea, Phalanx is designed to defeat anti-ship missiles and “close-in” threats that have pierced other lines of defense. On land, as part of the U.S. Army’s counter-rocket, artillery and mortar systems, it detects and destroys incoming rounds. It also helps provide early warning of attacks.

The Phalanx weapon system is installed on all U.S. Navy surface combatant ship classes and on those of 24 allied nations. The land-based version is forward deployed and has been used in combat.