Lockheed nets $18.8M to support Japan's Aegis Ashore system

Aug. 26 (UPI) -- Lockheed Martin won an $18.8 million modification contract for planning and risk reduction of the Aegis Ashore defense system in Japan.

The modification of the contract with the U.S. Missile Defense Agency was announced on Tuesday and increases its value from $3.27 billion to $3.29 billion.

Lockheed Martin Rotary and Mission Systems will continue performing engineering design support and analysis of services of the Aegis Ashore Japan system.

The land-based missile defense system is a part of the security alliance between Japan and the United States, and provides defense against short to intermediate-range ballistic missiles. Aegis missiles have been part of Japan's military defense strategy since 1993.

Lockheed Martin was awarded a $70.2 million contract to support sea-based Aegis development for the U.S. Navy and the governments of Japan, South Korea and Norway in June. Plans to cancel use of the land-based Aegis Ashore system at two sites in Japan were announced days later, citing cost and technical issues.

Japan's military had planned to deploy it to counter threats from North Korean missiles, but increasing problems raised the $2.15 billion estimated cost to over $4 billion, including purchase cost and an expected 30-year use.