April 27 (UPI) -- The U.S. Navy has awarded DRS Laurel Technologies a contract for radar systems and associated equipment.
The deal, announced Thursday by the Department of Defense, is valued at more than $64.2 million under the terms of a firm-fixed-price contract.
The award from Naval Sea Systems Command enables DRS Laurel Technologies to manufacture and deliver 59 AN/SPQ-9B radar systems, which are designed to "detect and track low-flying, high-speed, small Radar Cross Section, anti-ship missile targets in heavy clutter environments," according to a Defense Department contract announcement.
The contract between Naval Sea Systems Command and DRS Laurel Technologies has options built in that could see the overall cumulative value of the award surge to more than $261.9 million, if exercised. The U.S. Navy, along with the government of Japan, is expected to benefit from this award.
Work on the contract will occur in Largo, Fla., and Johnstown, Pa., and is expected to be complete in June 2022, said the Pentagon press release.
The total amount of the contract without options exercised will be obligated to DRS Laurel Technologies at time of award. Funds will be allocated from Navy's 2018, 2017 and 2016 fiscal year accounts combined with foreign military sales funds.
The obligated funds will not expire at the end of the current fiscal year, the Defense Department said.