In 2003, Raytheon Company upgraded the efficiency of the compressed air system at its Integrated Air Defense Center in Andover, Massachusetts, to save energy and reduce costs. Worn compressors and dryers were replaced, a more sophisticated control strategy was installed, and an aggressive leak detection and repair effort was carried out. The total cost of these improvements was $342,000; however, National Grid, a utility service provider, contributed a $174,000 incentive payment. Total annual energy and maintenance cost savings are estimated at $141,500, and energy savings are nearly 1.6 million kWh. This case study was prepared for the U.S. Department of Energy's Industrial Technologies Program.