The Brazilian Navy has given a directed sub-contract to the U.S. subsidiary of Elbit Systems to upgrade four Grumman C-1A aircraft.

The C-1A is a twin-engine aircraft that was used by the U.S. Navy for carrying mail and cargo, and later as an electronic counter-measures platform. The U.S. Navy retired its last C-1A in 1988.

Brazil in 2010 announced it intended to acquire eight of the planes for on-board carrier deliveries and aerial refueling.

Under the sub-contract to Elbit Systems of America LLC, the four aircraft will receive new engines, new avionics, new communication systems and electronic counter-measure systems and air-to-air refueling capabilities.

The work, to be performed over a five-year period, is valued at $106 million.

"We are pleased to upgrade the Brazilian Navy's aircraft," said Elbit Systems of America's President and Chief Executive Officer Raanan Horowitz. "We built a solid reputation of meeting commitments to our customers and with the successful execution of this overhaul and modernization program we will enhance the capabilities of the Brazilian Navy."

Elbit Systems Ltd of Israel, which announced the sub-contract, said the upgrade will take place at the facilities in Texas of M7 Aerospace, a subsidiary of Elbit Systems of America, under the supervision of Brazilian Navy personnel.

The prime contract for the upgrade of the aircraft is held by Marsh Aviation Company of Mesa, Ariz.

The aircraft will ultimately be used from the Brazilian aircraft carrier NAe Sao Paulo.