The Australian Department of Defense has awarded Lockheed Martin the contract to develop the AIR 5428 Pilot Training System to train the country's pilots.

The contract, valued at about $868 million, tasks Lockheed Martin with leading the delivery of a system that will be used to train all future pilots from the Royal Australian Air Force, Royal Australian Navy and the Australian Army. The contract includes performance based options for up to 25 years.

"We are honored to partner with Australia to deliver a comprehensive training solution that is customized for their needs and focused on fifth-generation mission readiness," Lockheed Martin Training and Logistics Solutions vice president Jon Rambeau said in a statement. "Our proven, innovative training system will help the Australian Defence Force meet the challenge of preparing pilots to perform in today's complex global environment."

The AIR 5428 contract also includes training aircraft to be delivered by Pilatus Aircraft and Hawker Pacific.

"Our approach will be tailored to the particular needs of Australia's future defense requirements and will leverage proven turn-key training capabilities from Lockheed Martin, as well as those of our partners -- Pilatus Aircraft and Hawker Pacific," Lockheed Martin Australia and New Zealand Chief Executive Raydon Gates said.

A similar program conducted by the Lockheed Martin-led Team 21, is currently in place in Singapore, where they are in the ninth year of their 20-year training program for pilots