July 10 (UPI) -- Lockheed Martin Rotary and Mission Systems Division has been awarded a contract modification for continued development of the next iteration of the Aegis ballistic missile defense system.
The deal, announced Monday by the Pentagon, comes under a $15 million cost-plus-incentive-fee modification to an existing contract. With the modification, the total value of the contract, for development of the missile defense system, increases from $2.81 billion to $2.83 billion.
With the new contract, Lockheed will procure materials and support services for the Aegis Ballistic Missile Defense 6.0 development program, which falls under the Aegis BMD Program Office.
Fiscal 2018 research, development, test, and evaluation funds in the amount of $15 million have been obligated to Lockheed at the time of award.
The Aegis BMD system is the naval component of the Missile Defense Agency's ballistic missile defense system. It is installed on 33 ships of the U.S. Navy.
The most recent missile development for the system is the SM-3 Block IIA, which is designed for use with the Aegis BMD to shoot down medium-range and intercontinental ballistic missiles.
The SM-3 series can be both land and sea-based, and uses its own kinetic energy, or "hit-to-kill" rather than explosive warheads. Currently deployed versions capable of intercepting ballistic missiles include the SM-3 Block IA, SM-3 Block IB and SM-6 interceptors.