This $22.6 million contract is an extension of existing support contract that enables the British army to conduct realistic combined arms training at facilities in Britain, Canada and Germany.
Saab will provide the service for a period of two years.
"We will continue to support our delivered training systems, which through continued upgrades in close co-operation between Saab and the British army, meet the customers need of high performance training," said Henrik Hojer, general manager Training and Simulation at Saab.
"The implementation of OSAG 2.0 is a strategic decision, which will make it easier for the British army to train together with other nations."
OSAG 2.0, a new international standard for optical laser codes, will enable the British army to be interoperable with other nation's laser-based Tactical Engagement Simulator Systems during joint exercises.
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