Lockheed has been awarded a cost-plus-fixed-fee performance incentives contract for post-critical design review (CDR) Aegis combat systems engineering to support the Australian Government.

The Australian Government has selected the Aegis combat system for its air warfare destroyer (AWD) programme.

Under the $197m foreign military sale, Lockheed will provide combat systems engineering, computer programme development, technical manuals, ship integration and test.

The company will also design and build an Aegis weapon system (AWS) based on the US Navy AWS Baseline 7 phase I to support the AWD programme.

The US Naval Sea Systems Command is the prime contractor and work will be carried out at the company’s facilities in US and Australia.

The contract also includes options that, if exercised, would bring the cumulative value to $211m. Work is expected to be complete by December 2014.