Lockheed Martin Mission Systems and Training has been awarded a $40.7 million modification to a previously awarded contract to exercise a one-year option for engineering services, travel and other direct costs involved in the AN/SQQ-89A surface ship undersea warfare system.

The system can search, detect, classify, localize and track undersea contacts in order to engage submarines, torpedo threats and mine-like small objects.

The contract is for development, integration and production of future advanced capability build and technical insertion baselines in the system.

It combines purchases for the U.S. Navy and the Japanese government under the Foreign Military Sales program, with the Navy paying roughly 66 percent.

Work will be performed in Manassas, Va., and is expected to be completed in May 2017.