Lockheed Martin Rotary and Mission Systems received a $223.94m contract modification for US Navy sound navigation and ranging (sonar) systems.

The cost-plus-incentive-fee agreement updates a previous contract. It funds continued design, development, and production support of the systems.

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The contract, designated N00024-20-C-6117, mainly serves the US Navy, with 97% of the procurement, and includes a 3% contribution from the government of Canada through the Foreign Military Sales programme.

As per the announcement from the US Department of War (DoW), the bulk of the work is set to take place at the company’s facilities in Manassas, Virginia, which will handle 65% of the effort.

Additional work will take place in Clearwater, Florida, accounting for 32%, Syracuse, New York with 2%, and Marion, Florida at 1%.

The activities are scheduled for completion by September 2027.

Funding for the project consists of $19.81m from fiscal 2026 other procurement (Navy) funds, representing 51% of the obligation, $18.30m from fiscal 2026 shipbuilding and conversion (Navy) funds, accounting for 47%, and $1m supplied through Canada’s Foreign Military Sales funds, making up the remaining 3%.

These funds will be committed at the time of the award and are not set to expire at the end of the present fiscal year.

Naval Sea Systems Command, based in Washington, D.C., is acting as the contracting authority.

Last month, Lockheed Martin Aeronautics was also awarded a $991.13m firm-fixed-price order to produce and deliver 432 material modification kits for F-35 aircraft, part of an ongoing upgrade and retrofit programme for the Joint Strike Fighter fleet under an existing basic ordering agreement.

The company also delivered the first Integrated Combat System-enabled baseline, called Aegis BL9.C3.0, to the US Navy.