Northrop Grumman Aerospace Systems has been awarded a $93 million Defense Advanced Research Projects Agency (DAPRA) contract to develop and test a prototype demonstration system for the Tactically Exploited Reconnaissance Node (TERN) phase III program.

According to the United States Department of Defense (DoD), which announced the contract in its Wednesday digest of labor deals, the Tern program will design and manufacture technologies for a medium-altitude long-endurance UAV and shipboard-capable launch and recovery system. Both the system and the UAV will benefit what the DoD classified as “smaller ships.”

The total value of the agreement is $132.4 million, meaning that Northrop Grumman Aerospace Systems will cover the $39.3 in remaining costs not funded by the government. Nearly $30 million in fiscal 2015 and 2016 research and development funds are being assigned with the award.

The labor will be conducted in various locations throughout the U.S., and should be finished in November 2017.