The U.S. Army has awarded an $89,5 million contract to BAE Systems Ordnance Systems, picking up an option for the company to maintenance of military’s primary propellant manufacturer.

According to the Pentagon,  BAE Systems Ordnance Systems Inc., was awarded an $89,520,585 modification (0053 09) to contract W52P1J-11-G-0053 for operations and maintenance of Radford Army Ammunition Plant.

Work will be performed in Radford, Virginia, with an estimated completion date of Dec. 31, 2019.

Situated on more than 7,000 acres in southwestern Virginia, the Radford Army Ammunition Plant was built in the 1940s to support the war effort. It has played an important role in every American conflict since then, and today is the core propellant-manufacturing facility for the U.S. Department of Defense.

Radford is capable of producing mass quantities of solvent and solventless propellants to support direct fire, indirect fire, and rocket applications. The facility uses a variety of ingredients in its propellant-making process, including nitroglycerin and nitrocellulose. Radford currently is the primary supplier of solventless propellants.and is the only North American manufacturer and supplier of nitrocellulose.

Owned by the U.S. Army and operated by private contractor BAE Systems, the arsenal employs about 2,500 people on 4,800 acres in Montgomery and Pulaski counties and an 1,800-acre site near Dublin, according to richmond.com. The plant has a medical clinic, generates its own electricity, treats its own water, manages industrial waste and rents space to 15 private companies.