Dec. 21 (UPI) -- Lockheed Martin was awarded a contract to provide support to the U.S. and Great Britain for the Trident II Strategic Weapon System that's commonly deployed aboard U.S. Navy Ohio-class submarines.
The terms of deal were announced Wednesday in a press release by the Department of Defense. The agreement taps Lockheed Martin to integrate navigation hardware, to include, software design, test and installation, which aims to support current services for fleet ballistic missile navigation subsystems.
Lockheed Martin will be awarded more than $154.4 million under the terms of a cost-plus-incentive-fee and cost-plus-fixed-fee contract, which are cost reimbursement deals from the U.S. government, meaning, Boeing could receive additional federal money if overrun costs on the contract are acculated or if the performance of Lockheed Martin on the contract is exemplary.
According to the Defense Department contract, the deal will specifically provide the U.S. and the United Kingdom with navigation systems, long lead material transducers, "a portable data collections system, and long-range software modernization activities."
Work on the contract will occur in several states in the U.S., and is expected to be completed by Dec. 2020, according to the Pentagon press release.
More than $24 million will be obligated to Lockheed Martin from U.S. Navy fiscal 2018 other procurement funds, coupled with funds from the United Kingdom, according to the press release.
However, subject to the availability of funding, Lockheed Martin will be obligated more than $130.3 million from multiple U.S. Navy funding accounts and the United Kingdom at the time of award contract.
According to the Defense Department press release, those funds will not expire at the end of the current fiscal year.