May 15 (UPI) -- Boston Ship Repair was awarded a contract from the U.S. Navy for services on the USNS Patuxent, a Henry J. Kaiser-class replenishment oiler.
The deal, announced Monday by the Department of Defense, is valued at more $16.1 million under the terms of a firm-fixed-price contract.
The contract award from the Navy's Military Sealift Command enables Boston Ship Repair to provide a range of services on the ship, which is designed to replenish other naval ships with critical deployment stock such as fuel, food and other amenities without the ship having to pull into port to resupply.
The contract award has built in options that could see its overall cumulative value surge to more than $18 million if exercised.
Work on the contract will occur in Boston, Mass., and is expected to begin regular overhaul dry docking on July 2018. The period of performance will occur until September 2018, according to the Pentagon.
The total cumulative value without options exercised will be obligated to Boston Ship Repair at the time of award.
The obligated funds will be allocated from Navy fiscal 2018 operations and maintenance funds, which will expire at the end of the current fiscal year in September.