FAIRFAX, Va., 4 Jan. 2013. Boeing [NYSE: BA] subsidiary Argon ST will continue to supply U.S. Navy surface ships with countermeasures that lure torpedoes away by mimicking a vessel's propulsion system. The Navy exercised a $8 million option on the AN/SLQ-25C system contract for these systems.

The option covers production and delivery of eight new AN/SLQ-25C systems under the Navy's Surface Ship Torpedo Defense program. The AN/SLQ-25C, nicknamed Nixie, is an electro-acoustic towed decoy system that can communicate with its host ship's network for a fully integrated defense capability. The Nixie attempts to defeat a torpedo's passive sonar by emitting simulated ship noise, such as propeller and engine noise, in order to draw the weapon away from its intended target.

The system features an open architecture that allows advances in engineering and technology to improve the system's capability and reduce its cost.

Argon ST has been supporting the AN/SLQ-25C program for the Naval Sea Systems Command since 2002, and has received multiple follow-on awards with options. This order is the first option exercised under the current contract. Production of the new systems will begin in February, and will take place primarily at Argon ST's facilities in Smithfield, Pa.

Argon ST is the sole contractor for the design, development and manufacturing of the AN/SQL-25C system, which is deployed on more than 400 vessels in navies from more than 20 countries around the world.