KITTERY, Maine — Officials say a $38 million defense contract has been awarded to a Massachusetts company to repair and upgrade the Portsmouth Naval Shipyard in Kittery.

U.S. Sen. Susan Collins of Maine says the Navy’s awarded a contract to Environmental Chemical Corp., based in Marlborough, Mass., for energy and structural repairs at the submarine repair yard.

The contract follows a 2010 the Government Accountability Office report that found that the Navy’s modernization requirements at nation’s four public shipyards, including Portsmouth, were underestimated. Work under the contract is expected to be completed by December 2014.