Lockheed Martin [LMT] officials last week announced a new Air Force contract for C-5M Super Galaxy cargo aircraft upgrades.

A $299 million contract award funds the Reliability Enhancement and Re-Engining Program (RERP). It covers production for nine aircraft, including installation on one plane, material and fabrication for three planes, and long-lead funding for five others.

Production is to begin in August, according to Lorraine Martin, Lockheed Martin C-5 program vice president.

“These funds are for the production of more C-5Ms and related support for the Air Force,” Martin told reporters at a Feb. 27 briefing held at the Air Force Association’s annual winter symposium in Orlando, Fla.

Martin added that another $25 million contract will support the C-5Ms delivered to the Air Force during the initial familiarization period and continue through operational testing. Those funds will be used for logistics.

Two re-engineered C-5Ms have been returned to the Air Force, and the company is expected to deliver 52 fully modernized C-5Ms by 2016.

The C-5M is undergoing a two-phase modernization effort. The first, the Avionics Modernization Program (AMP), provides a new glass cockpit with modern avionics and flight instruments. The RERP is the second phase of the modernization effort. It includes 70 enhancements or replacements of major components and subsystems, including the installation of GE CF6-80C2 commercial engines.

The C-5M is expected to remain in service with the Air Force through 2040.