March 9 (UPI) -- Huntington Ingalls was awarded a contract from the U.S. Navy to continue repairs on the USS Fitzgerald.
The deal, announced Thursday by the Department of Defense, is valued at more than $77.5 million under the terms of a cost-plus-fixed-fee contract, which is a modification to a previous award.
The modified contract between the U.S. Navy and Huntington Ingalls enables the company to continue emergent repair and restoration, in additional to, collision repairs, maintenance and modernization of the USS Fitzgerald, the Pentagon said in a press release.
The USS Fitzgerald is a guided missile destroyer that collided with a container ship offshore Japan in June 2017 that left seven U.S. sailors dead.
Work will occur in Pascagoula, Miss., and is expected to be complete by January 2020.
More than $31.6 million will be obligated to Huntington Ingalls from Navy fiscal 2018 operations and maintenance funds, in addition to more than $7.1 million from fiscal 2017 other procurement funds, at the time of the award.
The Department of Defense said that more than $31.6 million of contract funds will expire at the end of the current fiscal year.