WASHINGTON – The U.S. Navy will exercise a $77.7 million option for a planning-yard-class services contract with Bath Iron Works, U.S. Sen. Olympia Snowe announced Thursday.

“This is good news for Bath Iron Works and confirms once again the pivotal role of BIW in the Navy’s surface ship modernization effort,” Snowe said. Snowe is chairman of the Senate Armed Services Seapower Subcommittee.

The $77.7 million contract modifies a previous announcement by exercising the Navy’s option for planning yard-class services for fiscal 2001, including long-range planning, research engineering and development for the DDG-51 Aegis destroyer program. Work on the contract, awarded and administered by Naval Sea Systems Command in Arlington, Va., must be completed by September 2001.

“Today’s announcement builds upon the year’s previously awarded contract for lead yard services, further reinforcing BIW’s leadership in a wide range of Navy contracts ,” Snowe said.