Raytheon Australia has secured a contract from the Australian Department of Defence to support the short-range, ground-based air defence project worth up to A$2bn ($1.53bn).

Under the A$12.1m ($9.3m) contract, the company will support the first stage development of the new air defence system.

Expected to create up to ten new jobs, the contract covers the delivery of risk mitigation activities for one year to inform the final system configuration of national advanced surface-to-air missile system (NASAMS).

Raytheon will also conduct workshops on supply chain opportunities across Australia later this year to engage with the nation’s industry.

Australian Defence Industry Minister Christopher Pyne said: “The government has committed to the highly successful NASAMS, which will be adapted to Australian requirements.

“This work will investigate potential capability enhancements to inform the NASAMS’s final system configuration.”

“Importantly, this work will investigate potential capability enhancements to inform the NASAMS’s final system configuration, including integration with existing Australian Defence Force equipment.

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“This will include integration testing with CEA Technologies’ phased array radar system and Thales Australia’s Hawkei and Bushmaster protected mobility vehicles.”

In April, Raytheon Australia was selected as the prime system integrator for NASAMS that is in service with several nations, including Norway and the US.

To be operated by the Australian Army’s 16th Air Land Regiment, the system will be capable of providing ‘the innermost layer of Australia’s improved integrated air and missile defence capability’, according to Pyne.