June 14 (UPI) -- Virginia Beach, Va.-based Q.E.D. Systems has been awarded a $15 million contract for maintenance on U.S. Navy littoral combat ship-class ships.
The contract, from Naval Sea Systems Command and announced on Wednesday, enables Q.E.D. to procure long lead time materials to support the LCS class of ships for both maintenance and sustainment, including planning for such support on the East Coast, West Coast and outside the United States. The deal comes under a cost-plus-incentive fee, cost-plus-fixed fee, cost-only contract, the Pentagon said.
Littoral combat ships are a class of relatively small vessels, though larger than patrol ships, that are designed to be used near shorelines and in shallow water.
The company will perform the majority of the work in San Diego, with 20 percent performed at Virginia Beach, and it is expected to be completed by June 2019.
The contract includes options, notably procurement of long lead time material in support of the ships, which could increase its value to more than $237.6 million.
The Navy has awarded $25,000 from fiscal 2018 Navy operations and maintenance funds at the time of the award, which will expire at the end of the current fiscal year.