The U.S. Navy said on Nov. 30 that it awarded a two-year contract worth slightly less than $8 million to a subsidiary of San Diego-based Kratos Defense & Security Solutions Inc.

Under the deal, Kratos Defense and Rocket Support Services will provide Oriole rocket motors and hardware for suborbital target vehicles called ARAVs, short for Aegis Readiness Assessment Vehicles.

Work under the $7.99 million firm fixed-price contract will take place in Rocket Center, W.V. and Glen Burnie, Md.

The Naval Surface Warfare Center Port Hueneme Division awarded the deal. There was no bidding, as the Navy determined that Kratos (Nasdaq: KTOS) was the only responsible source able to satisfy its requirements.