General Dynamics has won a contract worth $22.5 million to develop components for military vehicles as part of the US Army’s modernisation of its network system.

The army is restructuring the future battlefield network programme at a cost of $16.4 billion in four phases, news agency Reuters reports.

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The first phase has seen the Joint Network Node-Network, a communications system already in use by troops in Iraq and Afghanistan, combined with other networks still under development.

The second phase will focus on the development of components for an ‘on the move’ capability.

The contract’s third stage will develop components for vehicles.

The fourth stage will focus on enhanced protection of satellite communications.

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Under the contract General Dynamic will develop the third phase and demonstrate its capability by the end of September 2011.