DCNS signs first operational contract for Australian Future Submarine

French shipbuilder DCNS has signed the first operational contract to support the Australian Future Submarine Program.

The agreement is a "design and mobilization contract," and facilitates a number of activities between the Australian government and DCNS. Lockheed Martin has been selected to integrate combat systems.

Australia's Future Submarine Project seeks to bolster the country's naval combat capabilities by providing new vessels. DCNS chairman and CEO Hervé Guillou called the first operational contract's signing a significant step forward for the project.

"DCNS is looking forward to a strategic and sustainable partnership with the Commonwealth of Australia, Lockheed Martin and Australian Industry," Guillou said in a press release. "This contract will allow DCNS to commence the initial phase of Australia's Future Submarine. DCNS is committed to ensuring that Australia has a regionally superior submarine constructed in Adelaide and develops a sovereign naval industry."

Australia's Future Submarine Program, also known as SEA1000, is the largest defense procurement project in the country's history. The government estimates the program represents a $50 billion investment.