The base portion of the contract totals $807 million and will be funded in January and March and included in backlog at the end of 2010.
Contract options are expected to be funded in the government's fiscal years 2012 and 2013.
The contract to Babcock and Wilcox Nuclear Operations Group Inc. is for the manufacture of nuclear components to support U.S. defense programs, including the manufacture of naval nuclear power systems for submarines and aircraft carriers.
The company said the work will be performed over a 10-year period, beginning this month.
"We are pleased with this new agreement and our ongoing support of U.S. defense programs," said Winfred D. Nash, president of B&W NOG. "We look forward to continuing to fulfill our commitment to the nation's security by providing reliable and technologically advanced nuclear products."
The company didn't identify the customer.