AD Main Menu

Alaska Air Force station upgrade included in big US defense contract

Craig MedredAlaska Dispatch

Clear Air Force Station (CAFS) near Anderson, Alaska, in the state's Interior, is set to receive a portion of a huge defense contract awarded to Massachusetts-based mega defense contractor Raytheon Co.

On July 25, DefenseWorld.net reported that the United States Missile Defense Agency announced that CAFS is set to receive an award described as a "competitive contract combining cost-plus-award-fee, cost-plus-incentive-fee, and fixed-price-incentive-fee."

The contract award will allow CAFS to upgrade its Early Warning Radar (EWR) systems. The total cost of the contract is estimated around $125 million, but it contains options, which if exercised, could increase the total value to $176 million.

As of July, the United States' 2012 Military Budget total allowable spending cost is estimated at $1.03 to $1.4 trillion, and $3.42 billion of that has been received by operations in the state of Alaska. According to AlaskaEconomics.com:

Defense is the largest category of spending, at 36% of the total, followed by grants to state and local governments and nonprofits at 29%. Direct payments to individuals are about 22% of the total, and spending by civilian agencies was 13%.

Work on the CAFS project will begin at the end of July and continue through to the end of September of this year.

Read more, here.