The proposed contract will include AEGIS fielding and sustainment engineering support, software development, in-service maintenance, integration, and logistics and fielding support for AEGIS combat systems configurations for the US Navy fleet.
The contract for Lockheed Martin is expected to be completed by December 2023, valued at $48.5m.
The growth of the Global Naval Vessels and Surface Combatants Market between 2023-2033 in the US is mainly attributed to the country’s procurement of the Arleigh Burke-Class (AGEIS) destroyer.
The US is expected to be the largest spender on the procurement of destroyers worldwide, with $53.1bn between 2023 and 2033. Major US destroyer-related programs to be undertaken over the forecast period include the ongoing procurement of Arleigh Burke class.
Over the same period, other countries in Europe and Asia-Pacific have been procuring new naval vessels to control regional waters.
In May 2021, the US approved a potential sale of the AEGIS combat system to Canada.
Built by Lockheed Martin, the AEGIS system can defend against attacks from land targets, submarines, and surface ships while automatically protecting from incoming threats such as aircraft cruise missiles and ballistic missiles.
The integrated radar and missile system has SPY-1 multi-function phased array radar.
With the purchase of the weapon systems, the US Navy expects to have an enhanced capability against increasingly sophisticated ballistic missile threats.
The US Navy is focusing on modernisation and procurement programmes as concerns rise as it struggles to keep up with China’s exponentially expanding capabilities and growing naval powers.