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Lockheed Martin wins a two-year AU$26.5 million contract with Australia’s submarine agency to build sovereign combat systems integration
The Apex Times

THE APEX TIMES

Business/The Apex Times/Aug 10, 8:09 AM EDT

Lockheed Martin wins a two-year AU$26.5 million contract with Australia’s submarine agency to build sovereign combat systems integration

The deal is aimed at creating an Australian-led capability to integrate combat systems for the country’s planned Virginia-class nuclear-powered submarines under AUKUS, with U.S. subject-matter support and an industry supply-chain assessment.

3 min readEditor-approved Apex article

Lockheed Martin said the Australian Submarine Agency (ASA) has awarded it a two-year contract worth AU$26.5 million to develop a sovereign combat systems integration capability for Australia’s future Virginia-class submarines. The company framed the work as part of the AUKUS partnership, where the U.S., U.K., and Australia are aligning on advanced submarine capabilities for the Indo-Pacific.

Under the contract, Lockheed Martin will work with Australian engineers to establish an integration approach that Australia can sustain over the long term. The company said it will support the effort with U.S.-based Virginia-class submarine subject-matter experts, a move intended to speed up capability development while transferring know-how to Australian teams.

Lockheed Martin’s release tied the effort to its role in combat systems integration, which it described as “fundamental” to delivering an advanced, secure, and operationally dominant submarine fleet. The statement did not detail the specific combat system components that will be integrated, but it emphasized the integration function itself, which typically includes how sensors, weapons, and command-and-control software connect and operate together within a submarine mission system.

“Australia is building a sovereign undersea capability that will serve its national security for decades to come,” said Devon Rodgers, vice president and general manager of Undersea Mission Systems at Lockheed Martin. He added that the company is applying its “extensive combat system integration expertise” to support AUKUS and help lay a technical foundation for Australia’s future nuclear-powered submarines.

The agreement also includes an assessment of Australia’s supply-chain needs for the Virginia-class combat system integration work. Lockheed Martin said it will conduct a market analysis of what Australian suppliers may be able to provide, with an emphasis on opportunities for existing and new local suppliers to join the global supply chain and deepen industry partnerships.

In terms of staffing and near-term work locations, Lockheed Martin said the contract will add more than 20 combat systems integration engineering jobs to its team supporting initial work in Western Australia. The company described this as an expansion of its maritime combat-systems and integrated air-and-missile-defense workforce, which it said is more than 470 specialists.

Jeremy King, Lockheed Martin Australia and New Zealand chief executive, said the partnership would strengthen the company’s and Australia’s ability to operate seamlessly with allies and deepen AUKUS industrial base collaboration. He also linked the work to contributing to a “secure and stable Indo-Pacific,” echoing a theme often used across AUKUS-related industrial efforts.

Combat systems integration, as used in defense programs, refers to the engineering discipline of making multiple submarine subsystems operate as a single mission capability. That can include coordinating data flows from sensors, ensuring weapons and fire-control functions work within safety and timing constraints, and integrating software so crews can operate the overall system reliably under operational conditions. For a nuclear-powered submarine program that will rely on advanced electronics and software, integration capability is often as critical as the individual hardware suppliers.

Still, the company did not provide a breakdown of deliverables, acceptance criteria, or which software releases, test events, or verification activities will occur during the two-year period. It also did not specify how much of the integration will be performed in Australia versus with U.S. teams, beyond saying Australian engineers will be supported by U.S.-based subject-matter experts. In addition, the statement did not disclose whether the contract is connected to any follow-on production or sustainment work, or how it could translate into longer-term prime responsibilities for future submarine availability.

Why It Matters

  • AUKUS submarines rely on complex electronics and software integration, so building an in-country integration capability can reduce dependence on external teams for mission-system engineering.
  • The supply-chain market analysis indicates a push to expand Australia’s role beyond assembly into engineering and integration-adjacent work that supports long-term sustainment.
  • For Lockheed Martin, the contract reinforces its undersea mission systems footprint and maintains involvement in critical submarine mission-system engineering as Australia moves deeper into the Virginia-class pathway.

Sources

Key Facts

  • The Australian Submarine Agency awarded Lockheed Martin a two-year contract worth AU$26.5 million.
  • The contract is intended to create a sovereign Combat Systems Integration (CSI) capability for Australia’s future Virginia-class submarines under AUKUS.
  • U.S.-based Virginia-class submarine subject-matter experts will support Australian engineers to accelerate development and sustainment of the integration capability.
  • Lockheed Martin will conduct a market analysis focused on Australia’s supply-chain needs for the combat system integration effort.
  • The company said the work will add more than 20 CSI engineering jobs for initial work in Western Australia.
  • Lockheed Martin’s release said its maritime combat-systems and integrated air-and-missile-defense workforce exceeds 470 specialists.

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