The Navy gave Lockheed Martin Corp. [LMT] a $78.6 million contract to produce upgrades for the Aegis shipboard weapons control system, the company announced.

Lockheed is to produce the next evolution of hardware that will be incorporated into the Aegis Modernization and Aegis Ballistic Missile Defense (BMD) programs.

The contract to upgrade the Aegis Weapon System includes two BMD 4.0.1 Combat System equipment sets, three Weapon System Modernization Upgrade equipment sets and one Multi- Mission Signal Processor (MMSP) equipment set.

The upgrade will field improved ballistic missile defense capability and set the stage for full combat system modernization on all Navy Aegis destroyers.

The BMD 4.0.1 equipment set, a significant upgrade to previously-fielded systems, includes the Aegis BMD signal processor, providing greater capability in detecting, tracking and targeting ballistic missiles than the signal processor now aboard BMD-equipped ships.

BMD 4.0.1 will be installed on current Aegis BMD ships beginning in 2011, along with the associated computing suite, kill assessment system and operating consoles.

The Aegis Modernization Upgrade equipment sets consist of new tactical computing equipment, upgraded consoles and displays, a secure voice communication system and associated peripheral equipment. The MMSP combines both anti-air warfare and BMD mission capabilities into one open architecture signal processor. The modernization equipment and MMSP will be installed in guided missile destroyers as part of Aegis modernization beginning in 2012.

There will be a merger of Aegis Open Architecture and Aegis BMD in 2012.

The Navy’s plan to fully modernize its Aegis-equipped cruisers and destroyers includes reconfiguring the Aegis Weapon System with Commercial-Off-The-Shelf (COTS) computing hardware and open system software. The weapon system installed through the Cruiser Modernization Program is fully open architecture, with the exception of the retained in-service signal processor.

MMSP is part of the second phase of modernization, which also includes implementation of the Navy’s Objective Architecture, and will begin installation on Aegis-equipped destroyers in 2012, accomplishing a significant step towards the transition to COTS and open system software for those ships.