The Coast Guard on Wednesday evening said it awarded Birdon America, Inc., a potential $1.2 billion contract for its new waterways commerce cutter (WCC), which will consist of two boat types, river buoy tenders and inland construction tenders.

The initial award is worth $28.5 million for detail design of the WCCs.

River buoy tenders service aids-to-navigation (ATON) on western rivers in the U.S., setting, relocating and recovering buoys to mark navigable channels.

Inland construction tenders built, repair and maintain fixed ATON within the inland waterways along the Eastern Seaboard and Gulf of Mexico. The Coast Guard said these boats are their only platform to drive and remove piles, erect towers and make major structural changes.

If all options are exercised, Birdon America will build 16 river buoy tenders and 11 inland construction tenders. The company is part of Australia’s Birdon.

The WCCs will replace will replace legacy tenders that have an average life of 57 years with some as old as 78. The new boats will have greater endurance, speed and deck load capacity than the legacy fleet and will also have improved comfort features and accommodate mixed-gender crews.

Birdon America, which is based in Denver, is currently under contract with the Coast Guard to refit 117 motor lifeboats.