Lockheed Martin has won a US$1.06 billion contract to supply the combat systems for Australia's new fleet of 12 French submarines.
"Lockheed Martin Australia will be our Combat System Integrator to partner with Defence and DCNS (of France) to design and integrate the combat system of our Future Submarine, which meets our unique capability requirements," Defence Industry Minister Christopher Pyne said Friday.
Australia awarded the contract to DCNS in April this year to design and build its next generation of submarines. The US$38 billion vessels will be a scaled-down, conventionally powered version of France's 4,700-tonne nuclear-fuelled Barracuda.
Australia had also now agreed with DCNS to launch design and mobilisation work with a team heading to Cherbourg, France, while DNCS will boost its presence in Adelaide where the subs will be built.
Defence Minister Marise Payne said, "By partnering with an Australian-based company with strong links to the US, we will ensure that we get the best Australian and US technology, while ensuring that our sensitive technology is protected."
DCNS last month suffered a major leak of secret data on its Scorpene subs supplied to the Indian navy. "We are absolutely comfortable around the security of our plans, designs and the build." Pyne added.
The Barracudas are to replace Australia's ageing diesel and electric-powered Collins submarines.