Lockheed Martin was awarded a contract from the U.S. Navy for services in support of the MK 48 heavyweight torpedo efforts.
The deal, announced Thursday by the Department of Defense, is valued at more than $65.9 million under the terms of a cost-plus-incentive-fee, cost-fixed-fee, cost only contract.
The agreement between the Navy and Lockheed Martin enables the company to provide engineering and maintenance services in support of the MK 48 heavyweight torpedo efforts.
The MK 48 heavyweight torpedo is used by all Navy submarine classes and is the primary weapon for anti-submarine warfare and anti-surface warfare operations, according to the U.S. Navy.
The Defense Department says the contract with Lockheed Martin includes options that could bring the total cumulative value of the award to more than $65.9 million, if the options are exercised.
Work on the contract will occur in Pearl Harbor, Hi., and is expected to be complete by June 2018 or, if options are implemented, March 2023, the Pentagon said.
More than $3 million will be obligated to Lockheed Martin from Navy fiscal 2018 operations and maintenance funds that will expire at the end of the current fiscal year.