Under the award, which is worth more than $17 million, Saab's services will include will include technical support for the unit operations and research and development for the ASC890 sensor and command-and-control system.
Work will take place from 2012-14, Saab said.
"We're proud that (the Defense Materiel Administration) is showing continued confidence in us and we look forward to further developing the Erieye radar system together with our Swedish client," said Micael Johansson, head of Saab's Electronic Defense Systems business area.
The Erieye, which was developed by Saab, can be used on a variety of aircraft and is effective for border surveillance, rescue operations and counter-terrorism, in addition to its main command-and-control function for the military. Thailand, Brazil, Greece and the United Arab Emirates utilize the system, which will soon also be delivered to Pakistan.
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