Executive Summary: Ultra Electronics Ocean Systems has received a $14.3 million U.S. Navy contract modification to continue engineering and production support for the AN/SPS-73(V) Next Generation Surface Search Radar program. The award supports operational readiness and sustainment of one of the Navy’s primary navigation and surface surveillance radar systems deployed across frontline combatants and auxiliary vessels.
The U.S. Department of Defense announced that Ultra Electronics subsidiary Ultra Electronics Ocean Systems Inc., based in Braintree, Massachusetts, has been awarded a $14,308,006 cost-plus-fixed-fee and cost-type contract modification tied to the production and sustainment of the AN/SPS-73(V) Next Generation Surface Search Radar (NGSSR) system.
The contract modification was issued by Naval Sea Systems Command under previously awarded contract N00024-25-C-4127. According to the Pentagon announcement, work will continue through March 2027 and will primarily occur in Chantilly, Virginia, and Wake Forest, North Carolina.
Deep Technical & Strategic Context Analysis
The AN/SPS-73(V) NGSSR is a commercially derived but militarized surface search and navigation radar system designed to replace aging legacy maritime radars aboard U.S. Navy vessels. Operating primarily in the X-band spectrum, the radar provides high-resolution detection and tracking of surface contacts, navigation hazards, low-flying aircraft, and small maritime targets in congested littoral environments.
The system has become increasingly important as the U.S. Navy shifts toward distributed maritime operations and sustained Indo-Pacific deployments. Modern naval operations require reliable near-surface situational awareness in contested electromagnetic environments where vessels may face asymmetric threats such as unmanned surface vessels, swarm attacks, fast inshore attack craft, and dense civilian maritime traffic. The AN/SPS-73(V) family supports this requirement by integrating modern digital signal processing, improved clutter suppression, and enhanced target discrimination capabilities compared with earlier SPS-series navigation radars.
The contract’s structure is also notable. A cost-plus-fixed-fee arrangement is typically used when technical requirements carry engineering uncertainty or evolving integration demands. In practice, this means the Navy reimburses allowable contractor costs while providing a fixed profit fee, reducing financial risk to the contractor during ongoing engineering support and sustainment activities. Such structures are common for radar modernization efforts where fleet integration, software refinement, lifecycle support, and configuration management continue alongside production.
The radar is widely deployed across multiple U.S. Navy surface combatant classes, including guided missile destroyers, amphibious warfare ships, logistics vessels, and support platforms. As the Navy continues extending the service life of Arleigh Burke-class destroyers while preparing future combatants such as the DDG(X), sustainment of mature but digitally upgraded sensor systems remains a critical readiness priority.
Contract Breakdown & Details
Program Scope
The modification exercises contract options covering:
- Engineering support services
- Production-related sustainment activities
- Other direct program costs
- Support for AN/SPS-73(V) Next Generation Surface Search Radar systems
Contract Value
- Total Contract Modification Value: $14,308,006
- Contract Type: Cost-plus-fixed-fee and cost-type modification
- Base Contract Reference: N00024-25-C-4127
Workshare Distribution
The Pentagon stated that contract work will be divided between:
- Chantilly, Virginia: 70%
- Wake Forest, North Carolina: 30%
Schedule
- Expected Completion Date: March 2027
Funding Details
- Funding Source: Fiscal 2025 Other Procurement (Navy)
- Amount Obligated at Award: $7,000,357
- Funds Expiration: The obligated funding will not expire at the end of the current fiscal year.
Contracting Authority
The contracting activity for the award is:
- Naval Sea Systems Command
Strategic Importance for U.S. Naval Readiness
Although less visible than high-profile missile defense or combat radar programs, surface search radar systems such as the AN/SPS-73(V) form part of the Navy’s foundational maritime awareness architecture. These systems directly support safe navigation, ship maneuvering, force protection, and identification of near-surface threats during both peacetime and combat operations.
The award also reflects the Navy’s broader sustainment strategy of incrementally modernizing proven sensor systems rather than pursuing immediate wholesale replacement. This approach reduces operational disruption while maintaining readiness across an expanding global deployment cycle, particularly in the Indo-Pacific and Red Sea operating theaters where maritime traffic density and threat complexity continue to rise.
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