Lockheed Martin Wins AUKUS Combat Systems Contract

Sovereign Combat Systems Push Under AUKUS

The Australian Submarine Agency (ASA) has awarded Lockheed Martin a two-year contract worth AUD$26.5 million (approximately $18.7 million) to develop a sovereign Combat Systems Integration (CSI) capability for Australia’s future Virginia-class submarines, part of the trilateral AUKUS partnership. According to a report by MarineLink, the agreement aims to build long-term, in-country expertise for integrating combat systems on the submarines Australia plans to operate.

Building Local Expertise

Under the deal, Australian engineers will work alongside U.S.-based subject-matter experts familiar with Virginia-class submarines, with the goal of speeding up capability development while establishing a sustainable, sovereign integration function for Australia’s future submarine force. The arrangement reflects a broader AUKUS objective of transferring technical know-how rather than relying solely on external support.

Supply Chain Review

Lockheed Martin and the ASA will jointly conduct a market analysis of Australia’s supply-chain requirements for the Virginia-class combat system integration work. The review is intended to identify openings for both established and new Australian suppliers to enter the global defense supply chain, with the stated aim of deepening industry partnerships between Australian firms and the wider AUKUS submarine enterprise.

Jobs and Workforce Expansion

The contract is expected to create more than 20 new CSI engineering positions, with initial work based in Western Australia. Lockheed Martin says this will expand its existing maritime combat-systems and integrated air-and-missile-defense workforce, which currently numbers more than 470 specialists.

What It Means for the AUKUS Program

The contract is a relatively small but concrete step in the broader AUKUS submarine program, under which Australia is set to acquire Virginia-class boats before eventually building its own submarine class with UK and U.S. support. Establishing sovereign combat systems integration capability is seen as a foundational element of that longer-term plan, ensuring Australia can independently manage and adapt the complex systems aboard its future submarine fleet rather than depending entirely on foreign contractors for ongoing support.