The U.S. Navy has awarded General Dynamics Bath Iron Works, a $126 million contract extension.

The funding will be used to continue servicing Arleigh Burke-class (DDG 51) and Oliver Hazard Perryclass ships. The contract extension runs through December 2017, with options for an additional six months.

“This funding is critical to ensuring that the highly-skilled men and women of Bath Iron Works have the necessary resources to continue manufacturing the best, most-advanced destroyers in our Navy,” said Sens. Susan Collins and Angus King in a joint statement. “We applaud the Navy for this contract modification, which will support our country’s national security and the Maine economy.”

Collins is a member of the Senate Defense Appropriations Subcommittee and King is a member of the Senate Armed Services Committee.

This funding is a cost-plus award-fee modification to a previously awarded contract for the continuation of Integrated Planning Yard services. The modification covers integrated planning and support for the Arleigh Burke-class destroyers and Oliver Hazard Perry-class of frigates built at Bath, and tasks include engineering, design, material kitting, logistics, planning and modernization efforts.

Funding was allocated through the Navy’s Naval Sea Systems Command.

BIW is currently supporting 68 ships, representing about 75 percent of the nation’s surface combatants.

DDG 51 Planning Yard services are provided in Brunswick, as well as the following DDG 51 homeports: Norfolk, Virginia; Mayport, Florida; San Diego; Everett, Washington; Pearl Harbor, Hawaii; Rota, Spain; and Yokosuka, Japan.