Kratos Defense & Security Solutions has secured a key contract from the U.S. Navy to provide engineering and sustainment support for the AN/SPY-1 radar system—an integral component of the Aegis Combat System deployed aboard Ticonderoga-class cruisers and Arleigh Burke-class destroyers. The contract reinforces Kratos’ role in maintaining mission-critical naval sensor systems amid evolving maritime threats.
Contract Overview and Scope
On May 3, 2024, Kratos announced that its Defense & Rocket Support Services (DRSS) Division had been awarded a five-year indefinite delivery/indefinite quantity (IDIQ) contract worth up to $50 million by the Naval Surface Warfare Center Port Hueneme Division (NSWC PHD). The agreement tasks Kratos with providing specialized engineering services for the sustainment of the AN/SPY-1 radar system.
The scope includes lifecycle support such as:
- Radar system troubleshooting and diagnostics
- Repair and refurbishment of components
- System integration testing
- Performance optimization and obsolescence mitigation
This work will be conducted at multiple U.S. Navy fleet concentration areas including Norfolk (Virginia), San Diego (California), Pearl Harbor (Hawaii), Mayport (Florida), as well as at international partner locations where Aegis-equipped ships are stationed.
The AN/SPY-1 Radar System Explained
The AN/SPY-1 is a multi-function phased-array radar developed by Lockheed Martin originally in the 1970s. It serves as the primary sensor for the Aegis Combat System and provides long-range air and surface surveillance, target tracking, missile guidance illumination, and fire control capabilities. With four fixed planar arrays that provide full 360-degree azimuth coverage without mechanical rotation, it can track hundreds of targets simultaneously.
Variants include:
- AN/SPY-1A/B: Early versions used on Ticonderoga-class cruisers
- AN/SPY-1D/D(V): Enhanced versions with better clutter rejection for littoral operations; installed on Arleigh Burke-class destroyers
- SPY-1F/K: Scaled-down versions used by international partners like Norway and South Korea
The SPY-1 remains a cornerstone of naval integrated air and missile defense (IAMD) despite newer systems like SPY-6 being fielded on Flight III Arleigh Burke destroyers. Its continued relevance underscores why sustainment contracts like this one are critical to fleet readiness.
Aegis Ecosystem Sustainment Strategy
This award aligns with broader U.S. Navy efforts to extend the operational life of legacy systems while transitioning to next-generation technologies. Although SPY-6 is gradually replacing SPY-1 on newer hulls starting with USS Jack H. Lucas (DDG 125), over 80 active ships still rely on SPY-1 variants globally—including those operated by Japan, Spain, South Korea, Australia, and Norway under Foreign Military Sales programs.
Sustainment contracts like Kratos’ help bridge capability gaps during this transition by ensuring:
- Spares availability for aging subsystems prone to obsolescence
- Engineering support for software upgrades or signal processing tweaks
- Field service representatives embedded with deployed units for rapid response
This approach reflects a hybrid modernization-sustainment model increasingly adopted across U.S. DoD platforms facing budgetary constraints amid rising peer competition threats.
The Role of Kratos in Naval Radar Support Infrastructure
While Lockheed Martin remains prime contractor for Aegis development and integration—including SPY series radars—Kratos has carved out a niche in subsystem-level sustainment support through its DRSS division. The company previously supported legacy radar systems such as SPS-49(V) long-range air search radars and has invested in test equipment replication capabilities that allow it to simulate operational environments during depot-level repair cycles.
This latest award builds on Kratos’ past performance under earlier NSWC PHD contracts involving similar scope. Notably:
- The company supports both land-based test sites like Wallops Island’s Combat Systems Engineering Development Site (CSEDS)
- It provides technical assistance during Combat System Ship Qualification Trials (CSSQT)
“This award demonstrates our continued commitment to supporting critical fleet capabilities,” said Dave Carter, President of Kratos DRSS Division. “We are proud to contribute our expertise toward ensuring combat readiness across multiple theaters.”
Sustainment Amidst Strategic Shifts in Naval Radar Architecture
The U.S. Navy’s radar roadmap is undergoing significant transformation with increased adoption of gallium nitride (GaN)-based active electronically scanned array (AESA) radars such as Raytheon’s SPY-6 family under AMDR program goals. However, due to cost constraints and shipyard backlogs affecting new-build timelines, legacy systems like SPY-1 will remain operational into at least the mid-to-late 2030s.
This creates a dual-track challenge:
- Sustain older analog/digital hybrid architectures while integrating newer digital-native systems onboard future hulls or Flight III retrofits.
- Migrate software-defined functionality where possible without disrupting mission assurance or introducing cyber vulnerabilities into legacy codebases.
The strategic value of companies like Kratos lies in their ability to operate across these transitional boundaries—offering not just repair services but also reverse engineering expertise vital for parts no longer manufactured or documented due to original vendor exits from defense markets.
International Implications: FMS Customers Still Rely on SPY-1 Ecosystem
Apart from domestic applications aboard U.S. warships such as DDG Flight I/II/IIAs and CGs nearing decommissioning schedules (~2030–2035), several allied navies continue to field Aegis-equipped vessels using SPY variants:
- Japan Maritime Self Defense Force: Kongo-, Atago-, Maya-class destroyers use SPY-1D/D(V)
- Korea Navy: Sejong Daewang-class destroyers use SPY-1D(V)
- NATO Allies: Spain’s Álvaro de Bazán class; Norway’s Fridtjof Nansen class; Australia’s Hobart class all operate variants of Aegis + SPY radars under FMS agreements with ongoing logistics tail requirements via NSWC PHD-managed frameworks.
This global footprint increases demand for trusted third-party providers capable of delivering timely repairs or upgrades without compromising classified interfaces—a role Kratos appears well-positioned to fulfill given its existing clearances and depot access credentials.
A Path Forward Through Incremental Modernization & Sustainment Synergy
The Kratos contract illustrates how incremental modernization paired with robust sustainment can extend combat viability even amid shifting technology baselines. As peer adversaries deploy increasingly sophisticated anti-access/area denial (A2/AD) tools including hypersonic glide vehicles and low-RCS cruise missiles designed specifically to stress naval IAMD layers—the reliability of proven sensors like AN/SPY‑1 remains essential until full-scale deployment of next-gen sensors is achieved fleet-wide.
If properly executed over its five-year duration through FY2029, this contract could serve as a model case study in how mid-tier defense firms contribute strategically within complex weapons ecosystems dominated by primes yet dependent on agile subsystem integrators for day-to-day readiness assurance.
