The U.S. Army has awarded Lockheed Martin [NYSE: LMT] a $260 million follow-on production contract for the combat-proven Modernized Target Acquisition Designation Sight/Pilot Night Vision Sensor (M-TADS/PNVS), also known as Arrowhead®, for the AH-64D Apache attack helicopter.

The Lot 7 contract includes M-TADS/PNVS systems as well as Arrowhead kits, plus spares, for delivery to U.S. Army and several international customers. More than 1,000 kits will be delivered with the completion of the Lot 7 contract, which extends production through April 2013.

“Demand by commanders for the Arrowhead-equipped LONGBOW Apache to support current operations remains high,” said U.S. Army Apache Sensors Product Manager Lt. Col. John Vannoy. “LONGBOW Apaches are deployed everywhere our ground forces are to ensure they remain safe and decisive in combat 24/7, worldwide.”

The Arrowhead kit modernizes the U.S. Army’s TADS/PNVS, known as the “eyes of the Apache,” by upgrading the infrared sensors and associated electronics. Arrowhead provides Apache pilots the most advanced long-range, electro-optical precision engagement and pilotage capabilities, ensuring safe flight during day, night and adverse-weather missions.

“Field Commanders describe Arrowhead as a game-changing system in combat,” said Bob Gunning, vice president of Apache Fire Control at Lockheed Martin Missiles and Fire Control. “Maintenance time is down and operational time is up; reports from users are that performance has been terrific. We have a great team working the program for us as the Army prepares to modernize the remaining legacy components of the original TADS/PNVS system.”

Lockheed Martin rolled out the first Arrowhead system to the U.S. Army in May 2005, and completed integration on the first Apache helicopters in June 2005.

Headquartered in Bethesda, Md., Lockheed Martin is a global security company that employs about 136,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The Corporation’s 2009 sales from continuing operations were $44.5 billion.