The U.S. Navy said it awarded Northrop Grumman Corp. a $17.1 million contract for system software and engineering services related to the Fire Scout unmanned helicopter. Work will be done in San Diego.

The deal runs through December 2017. It covers software design and system integration, qualification testing, cybersecurity activities as well as engineering services.

The contract was not competitively procured since there is only one qualified bidder, the Pentagon said in its Dec. 27 announcement. Northrop Grumman’s Rancho Bernardo team created the two Fire Scout models by taking two manned helicopter models and adapting them to fly autonomously from Navy ships.

NAVAIR, the Naval Air Systems Command of Patuxent River, Md. awarded the deal.

Funds will come from several sources including R&D, procurement, and operations and maintenance accounts.

Shares of Northrop Grumman trade on the New York Stock Exchange under the symbol NOC.