The British Army is extending its contract with Saab, continuing the company's support for the Direct Fire Weapon Effects Simulator.

The three-year contract extension is valued at approximately $25 million, and will go into effect during the first quarter of 2017.

The Direct Fire Weapon Effects Simulator, or DFWES, is a high-fidelity laser-based training simulation platform designed to prepare troops to respond to direct and indirect fire on the battlefield. The system can simulate various ammunition types, including those used by main battle tanks.

Operators can also use the platform to perform counter-IED exercises. It incorporates full-motion video and data collection capabilities, allowing users to evaluate their performance.

"This new contract, extending the use of the capability, is a proof of the strong relationship between Saab and the British Army, and a renewal of our commitment as a highly trusted complete training provider to a leading military customer," Saab's Åsa Thegström said in a press release.

Britain also uses the system to support training programs for the Royal Air Force and Royal Marines.

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