The contract for the Saab Australia SAS, awarded by Luerssen Australia, is expected to run over the 12-year OPV shipbuilding program, which will see the delivery of 12 new ships.
The SAS is based on Saab Australia’s 9LV Combat Management System.
Minister for Defence Industry Christopher Pyne said the SAS will offer leading situational awareness for the Australian Navy, while the EOS 500 will enhance its observation and fire control.
"The system provides the Navy with complete, consistent and up-to-date situational awareness and mission management using on-board, off-board, and remote data sources," Minister Pyne said.
"The OPVs will also be fitted with Saab’s EOS 500, a lightweight electro-optical fire control director used for observation, target identification and fire control."
Saab Australia's managing director Andy Keough said the latest contract will position the company for more naval projects.
"Saab Australia is pleased to receive this order from Luerssen Australia. This is also an important step towards system commonality for the Navy, with 9LV installed, or contracted for delivery, across four classes of ship," said Keough.
"The development work being undertaken by Saab in Australia will also support export opportunities and position us well for future maritime projects."
Saab Australia will carry out the majority of the work in its Adelaide facilities, which will create and sustain up to 50 jobs.
Local Australian companies will be contracted to fabricate selected components of the SAS including command consoles and computer cabinets, providing a high level of Australian industry participation and sovereign capability.
Construction of the OPVs will commence on the first ship at Osborne Naval Shipyard in South Australia before the end of the year.
The first two OPVs will be built in South Australia before the project transitions to Western Australia, where the remaining 10 will be constructed from 2020.