Dec. 12 (UPI) -- Bath Iron Works has been awarded a modified contract from the U.S. Navy for engineering and technical services for Arleigh Burke-class guided missile destroyers.
The deal announced, announced Monday by the Department of Defense, is a modified contract worth more than $23.9 million under the terms of a cost-plus-award-fee agreement, which is a cost-reimbursement contract that potentially could provide Bath Iron Works with an award fee, based upon a later evaluation by the U.S. government.
The award fee is used to motivate defense industry contractors to provide the best possible work they can on a given award contract.
The contract will also provide a "liaison for follow ship construction, general class services, class logistic services, class design agent services, and continuation of the DDG-51 Arleigh Burke-class Flight III upgrade design efforts and class change design services for follow ships."
Work on the contract will mostly be split between Brunswick, Maine, and Bath, Maine, with some taking place in Washington, D.C., and Pascagoula, Miss., and is expected to be completed by June 2018.
U.S. Navy shipbuilding and conversion funds from fiscal years 2012, 2013, 2014 and 2016 totaling more than $22.5 million has been obligated to Bath Iron Works and will not expire at the end of the current fiscal year.