General Dynamics Corp. said that its Advanced Information Systems unit received a subcontract that could be worth as much as $250.1 million over 10 years if its U.S. Navy customer exercises all options.

Part of the work is expected to flow to General Dynamics (NYSE: GD) offices in San Diego.

Under the deal, GD will be a subcontractor to Raytheon Co. It will support the engineering and manufacturing development of the Navy’s next-generation air and missile defense radar, known in defense circles as AMDR. The radar will go aboard Arleigh Burke-class destroyers, specifically the Flight III ships, beginning in 2016.

Other General Dynamics offices doing work on the project are Fairfax, Va.; Bloomington, Minn.; Scottsdale, Ariz.; and Kauai, Hawaii.

Virginia-based General Dynamics said it received the work in January.