The contract is over a four-and-a-half year period and will see nine new jobs created, three at RAAF Base Pearce and six at RAAF Base Williamtown.
The announcement for the in-service support contract was made by Minister for Defence Industry Christopher Pyne.
"This contract will see CAE provide classroom and simulator and instructors at RAAF Base Williamtown as well as maintenance and support services at both RAAF Base Pearce and Williamtown," Minister Pyne said.
"The Hawk MK127 Full Mission Simulators all feature a high-fidelity replica of the Hawk MK127 cockpit and will play a vital role in preparing fast-jet air crews for the RAAF next generation fighter aircraft."
The in-service support contract was awarded under a contract change proposal to the existing Australian Defence Force Simulator Through Life Support In-Service Support contract with CAE.
There will be a phase-in period for CAE while the full mission simulators become operational during the first half of 2017.