A Halifax defence company has won a multi-million dollar contract to supply parts for Canadian Forces light armoured vehicles (LAVs).

David Gossen, CEO at IMP Aeropsace and Defence, said the $2.74-million project has saved 10 jobs in its electronic components operation.  

Grant Corey, of defense contractor General Dynamics Canada, made the announcement on Monday.  

"[We have] awarded a $2.74-million dollar contract to IMP electronic systems for the supply of high quality cabling and wiring harnesses," he said.       

Military contracts are a key source of revenue for the company that employs about 115 people at the plant on Hammonds Plains Road.   

The federal government is spending more than $1 billion on the project to upgrade 550 LAVs used by the Canadian Forces.

The government has issued contracts throughout the country, trying to spread the money around and creating jobs through a regional benefits program.

"This project is having ripple effects throughout our economy," said Defence Minister Peter MacKay on Monday.   

Gossen said the contract helps to solidify the company's business relationship for future projects.  

"It's really important to continue that partnership with General Dynamics and be part of that supply chain because those 10 jobs today could very easily be 20 or 30, you know, next week or next month as they continue to sell product around the world," he said.