The defense and aerospace giant said the contract awarded Tuesday is for 879 million dollars to design and develop the Aerial Common Sensor (ACS), an airborne intelligence, surveillance, reconnaissance (ISR) and target-identification system.

The system would enable battlefield commanders to see a real-time representation of areas under surveillance.

The new aircraft will replace the army's Guardrail Common Sensor, the Airborne Reconnaissance Low aircraft and the Navy's fleet of E-P3 aircraft, Lockheed said in a statement.

Lockheed Martin said it will "combine and enhance the capabilities of the current systems on these platforms" into a single mission package on an Embraer ERJ-145 platform.

It said the contract has a potential value of some seven billion dollars over the life of the expected 20-year program.

"We are extremely proud to partner with the US government in the development of ACS," said Stan Sloane, Lockheed Martin's executive vice president.

"With ACS, warfighters can see and act first with greater speed and accuracy. Our team will deliver a highly sophisticated system that will help enable net-centric operations and provide a tactical overwatch for the future force."

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