Home Defence Kratos Defense & Security Solutions has been selected by the U.S. Navy to spearhead the creation of a new, organic sustainment capability for the vital AN/SPY-1 radar system. The contract, a single-award agreement known internally as Project Anaconda, has a projected multi-phase ceiling of $175 million and aims to ensure the long-term readiness of the fleet’s Aegis-equipped cruisers and destroyers.

Kratos Defense & Security Solutions has been selected by the U.S. Navy to spearhead the creation of a new, organic sustainment capability for the vital AN/SPY-1 radar system. The contract, a single-award agreement known internally as Project Anaconda, has a projected multi-phase ceiling of $175 million and aims to ensure the long-term readiness of the fleet’s Aegis-equipped cruisers and destroyers.

by BDR Staff

With many AN/SPY-1 systems expected to remain in service for decades, through 2065, the Navy is prioritizing the development of a dedicated, depot-level support infrastructure. This initiative moves beyond traditional contractor support to establish a deeply integrated, government-owned sustainment capacity, crucial for maintaining the radar’s role in ballistic missile defense and integrated air and missile warfare.

The cornerstone of Kratos’ solution is the new Indiana Radar Integration Complex (IRIC), a 155,000-square-foot, state-of-the-art facility owned and operated by the company. Strategically located near the Naval Surface Warfare Center (NSWC) Crane in Indiana, the IRIC is slated to be operational by 2027 and will serve as a dedicated hub for all aspects of AN/SPY-1 sustainment.

Under the initial Phase 1 award, Kratos will lead a cross-industry team to lay the foundation for this enduring capability. Key objectives include establishing the IRIC facility at Crane, developing the core processes for organic repair and modernization of key radar subsystems, and advancing digital engineering and AI-enabled data management tools. The work will be closely coordinated with Navy stakeholders to ensure it directly supports fleet readiness priorities.

Company leadership highlighted the award as a validation of their strategy to make preemptive investments in critical national security infrastructure. Kratos President and CEO Eric DeMarco stated that Project Anaconda represents the intersection of the company’s core philosophies: “rapidly developing affordable, real-world solutions for critical defense needs, while providing true long-term value.” The contract is structured in multiple phases, allowing both the Navy and Kratos to manage risk effectively and scale the sustainment infrastructure to meet the fleet’s evolving needs through the middle of the century.

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