Propulsor systems for the U.S. Navy's Block IV Virginia-class submarines are to be manufactured by BAE Systems, the company said.

The contract for the propulsor systems is worth $72 million. If all options are exercised by the Navy the value could be as much as $162.9 million.

"The propulsor contributes significantly to the overall stealth and effectiveness of a submarine," said Joe Sentfle, vice president and general manager of Weapon Systems at BAE Systems. "This award demonstrates the Navy's confidence in our high standards and ability to deliver this vital technology to the Virginia class, a national security asset."

BAE Systems has so far delivered more than 20 propulsors to the Navy for both Seawolf-class (SSN 21) and Virginia-class (SSN 744) submarines.

Virginia-class attack submarines incorporate new technology and features specifically for use in shallower coastal regions.

The Navy contract received includes funding for the manufacture of associated spare hardware and tailcones, BAE Systems said.

Production under the new award begins this year. Deliveries are scheduled through 2022.