Lockheed Martin (NYSE: LMT) has received a potential $426 million contract from the U.S. Navy to buildÂ and field theÂ Aegis Weapon System and the integrated Aegis Combat System on three of the military branch’s Arleigh Burke-class destroyer ships.
The Defense Department said Friday that Lockheed will provide follow-on support servicesÂ forÂ USS Thomas Hudner (DDG 116), Â USS Paul Ignatius (DDG 117) andÂ USS Daniel Inouye (DDG 118) destroyers.
The contract has a base value ofÂ $157.4 million and work will occur in New Jersey and Pennsylvania, amongÂ other locations, through September 2017.
The Navy will obligateÂ $81.2 million at the time of the award from itsÂ fiscal 2016 operations and maintenance; fiscal 2016 research and development test and evaluation; fiscal 2015 and 2016 other procurement; and fiscal 2013 shipbuilding and conversion funds.
Lockheed designedÂ AegisÂ to help the service branch guardÂ ships against aircraft, cruise missiles and ballistic missiles as well as engageÂ land targets, submarines and surface ships.