Kratos Defense & Security Solutions Inc. is among 23 companies selected to compete for U.S. Navy work under a deal the Navy calls Training Systems Contract IV.

The 23 companies received indefinite delivery, indefinite quantity contracts in late July. They will split up to $980 million worth of work.

Under the deals, contractors will provide new training systems, modifications and upgrades to existing systems, complementary instructional systems development and support services. Work could last up to nine years.

Kratos (Nasdaq: KTOS) must now compete for orders.

“With our selection to the TSC IV contract, we look forward to continue to support our warfighter readiness with our innovative synthetic training environment (STE) technologies that enable world-class training solutions, which lower costs, provide for rapid development and deliver high-fidelity performance,” said Jose Diaz, senior vice president of Kratos Training Services, in a prepared statement.

Kratos said it integrates virtual reality, augmented reality and mixed reality technology with its simulation systems and instructional design.

The Naval Air Warfare Center Training System Division in Orlando, Florida awarded the deal. Some 40 businesses submitted proposals.