MINNEAPOLIS (AP) -- Alliant Techsystems Inc., which makes ammunition, propulsion systems and aerospace supplies, said Tuesday it received a $97 million U.S. Navy contract for the design, development, integration, and test of its multi-stage supersonic target.
With incentives, the deal with the Naval Air Systems Command could be worth as much as $103 million, Alliant said.
The design and development phase of the program is expected to be finished by October 2012. Once that is completed, Alliant said it could receive related follow-on production awards over the next ten years.
The multi-stage supersonic target will simulate a two-stage anti-ship cruise missile threat. It includes a two-stage unmanned aerial target, a launcher and related support equipment, Alliant said.
The Navy will use the target to test the effectiveness of weapons and combat systems against certain surface-to-surface anti-ship missiles, the company said.
Shares of Alliant Techsystems rose $1.67 to $106.90 in morning trading.