Dec. 18 (UPI) -- Lockheed Martin has been awarded a contract for the AEGIS weapon system by the U.S. Navy for new construction in support of Japan's Maritime Self Defense Force.
The deal, announced Friday by the Department of Defense, is worth more than $135.8 million under the terms of a cost-plus-incentive-fee, cost-plus-fixed-fee contract.
The contract calls for new construction and integration of a DDG AEGIS, which is a centralized, automated, command-and-control weapon system used to rapidly detect and track more than 100 targets at once.
Work on the contract will occur in several U.S. states, as well locations in Japan, and is expected to be completed in December 2018.
The terms of the deal provide cost reimbursement from the U.S. government that would aid Lockheed Martin on potential cost overrun fees, in addition to additional Lockheed Martin potentially receiving funds for outstanding performance on the contract.
The totality of the contract is classified as a foreign military sale to Japan. U.S. foreign military sales funds of more than $65.8 million will be obligated to Lockheed Martin at time of the award and will not expire at the end of fiscal year 2018.