Babcock & Wilcox Company, the parent of B&W NOG, said the contract carries a value of $1.3 billion over the next three years if all provisions are carried out.
"We are very pleased with this contract and the opportunity it affords B&W to continue to support our country, our customer, our employees and our shareholders," said Peyton S. Baker, president of B&W Nuclear Operations Group. "The reliability of our nuclear products will again be called on to help ensure that our Navy can successfully meet its missions."
Products to be manufactured under the program include nuclear power systems for submarines and aircraft carriers.
B&W NOG said an order for $508 million has already been released for immediate work on the power systems.
Work under the contract will be performed at B&W NOG's facilities in Lynchburg, Va., Mount Vernon, Ind., and Barberton and Euclid, Ohio.