The subsidiary will provide the branch with design, planning, and material support services to help maintain and modernize DDG 51 and FFG 7 class ships.
Work under the cost-plus-fixed fee contract will occur in Bath, Maineand the Pentagon expects the work to finish by December 2016.
The Naval Sea Systems Command in Washington is the contracting activity.
Bath Iron Works also holds a potential $663 million modification to produce the fourth ship in the Navy’s Arleigh Burke-class construction program.