AAP, Defence signed a $23 million contract with Thales Underwater Systems for new sonar equipment for the navy's Collins class submarines.
The contract is the fourth to be signed under the replacement combat system project which received government approval last year.
Under the deal, Thales, based at Rydalmere, near Sydney, will design, develop and produce new sonar hardware and software.
Acting head of the defence maritime systems division Commodore Trevor Ruting said the project would ensure the Collins submarines maintained their world-class sonar capability.
“The Thales sonar hardware and software will maximise our sonar operators' abilities to detect and track targets,” he said in a statement.
“It also means the Collins class submarines will be fitted with a new and more capable combat system which will be based on the US Navy Combat Control System Mark II.
“Under the contract, Thales will also modify existing sonar cabinets, work on program management and integrated logistic support and incorporate their sea-proven sonar display processing engine which has already seen service with the Royal Australian Navy in the Collins class combat system augmentation project.”
Commodore Ruting said the new contract would maximise the investment the Commonwealth had already made in the Collins submarines and provide foundations for future enhancement.