Cubic Global Defense has been awarded a contract to continue supporting weapon effects simulation (WES) systems for the Canadian Armed Forces.
Valued at around $200m, the contract requires the company to provide in-service support for WES systems until October 2021.
The contract extension supports the continued employment of approximately 25 Canadian employees.
Canada Minister of Public Services and Procurement Judy M. Foote said: "The Government of Canada is committed to providing our men and women in uniform with the equipment they need, when they need it.
“This contract will ensure continued in-service support for the weapon effects simulation system for five more years."
The military uses simulation systems in rural and urban settings to train soldiers.
The WES system integrates electronic components on weapons, soldiers and vehicles with lasers to create realistic training outcomes, according to the Canadian Government.
It also provides precise feedback on the soldier's performance during the simulation to monitor the improvement of individual and collective skills.
Canada Minister of National Defence Harjit S. Sajjan said: "Our government is committed to ensuring that our soldiers are trained and prepared to meet the realities and challenges they face on operations.
"This system supports the Canadians Armed Forces by providing a realistic but simulated combat setting for training."
Under a new programme, the hardware and software used by WES systems at the army's bases will be upgraded or replaced.
Nearly $249m investment has been earmarked for the programme.