The U.S. Navy has awarded BAE Systems Land and Armaments LP a $30,556,246 contract for production of the Mk 38 mod 3 machine gun system.

The contract aims to meet technical requirements for the Mk 38 mod 3 25mm MGS, and also covers spare parts. It combines the purchases for the U.S. government, as well as 6 percent to be allocated to the government of the Philippines.

The Mk 38 is a 25 mm machine gun used for maritime defense, and is mounted on ships to counter High Speed Maneuvering Surface Targets. The weapon was first used on combatant and auxiliary ships during escort missions in the Middle East in support of Operations Desert Shield and Desert Storm.

The Navy says the Mk 38 is both low-cost and ideal for stabilized self defense for vessels. The new mod 3 variant is a follow-up to the Mk 38 mod 2.

Work on the MGS will be performed in both Israel and Kentucky, and is expected to be completed by April 2017.