The U.S. Navy lab on Point Loma awarded Coherent Technical Services Inc. a two-year, $20.5 million contract modification to conduct research and development on emerging navigation technology.

Coherent is based in Maryland, but 80 percent of the work will be performed in San Diego.

The Space and Naval Warfare (SPAWAR) Systems Center Pacific San Diego awarded the deal, which the Pentagon announced on April 18. The contract came about because the Navy exercised an option on an existing contract.

The deal calls for Coherent to provide navigation technology engineering services for air and shipboard C4ISR capabilities. The abbreviation stands for command, control, communication, computers, intelligence, surveillance and reconnaissance.

Coherent is a small, veteran-owned company.