April 2 (UPI) -- Huntington Ingalls has been a awarded a contract by the Navy for services to support the USS Gerald R. Ford, the first of the Navy's next class of aircraft carrier.
The deal, announced Friday by the Department of Defense, is valued at more than $55.8 million under the terms of a cost-plus-fixed fee contract, which is a modification to a previous award.
The agreement enables Huntington Ingalls to provide "material and labor supporting planning and the preliminary accomplishment of the post-shakedown availability/selected restricted availability," according to the Defense Department.
The contract options between Huntington Ingalls and the U.S. Navy could potentially see the overall cumulative value to the contract surge to more than $66.5 million if exercised, said the Pentagon.
Work on the contract will occur in Hampton Roads, Va., and is expected to be complete in June 2019.
More than $26.2 million will be obligated to Huntington Ingalls from Navy fiscal 2018, 2017 and 2010 shipbuilding and conversion funds.
The Defense Department said the obligated funds will not expire at the end of the current fiscal year, however, more than $1.7 million that will be additionally obligated from Navy fiscal 2018 operations and maintenance funds will expire at the end of fiscal year 2018.
The Ford, the first newly-designed aircraft carrier in about 40 years, is expected to leave on its first deployment in 2021.