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, 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

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.

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