Military contractor BAE Systems said it may lay off as many as 172 employees at two Army bases in Hawaii due to the expiration of a contract with the Department of Defense.

The contract to provide support services at Schofield Barracks and the Pohakuloa Training Area on Hawaii island was redesignated by the DOD as a "small-business set aside" for which BAE Systems is not eligible to bid, a company spokeswoman said.

Although 172 jobs are tied to the contract, the exact number of layoffs is not known because some workers may be retained by the new contractor or offered jobs elsewhere within BAE, according to a notice the company filed with the state Department of Labor and Industrial Relations.

The Hawaii employees covered by the contract provide a range of services, including maintenance, transportation and logistics, the spokeswoman said.

BAE Systems is the nation’s third-largest defense contractor, according to Defense News, an industry trade journal. BAE Systems has 800 employees in Hawaii, including 152 at Schofield Barracks and 20 at Pohakuloa, according to company spokeswoman Audrey Taylor.

The layoffs could occur as early as Feb. 28 when the contract expires. However, BAE is prepared to continue fulfilling terms of the contract beyond that date if the DOD opts to extend it while it searches for a new contractor, according to a statement from BAE.

"The team remains committed to supporting its U.S. Army customer during this process to help ensure a smooth and seamless transition," according to the statement.

"This notification does not reflect upon the work or dedication of the employees on the Schofield Barracks contract. If a reduction in force is necessary, BAE Systems is committed to assisting these individuals during this transition, and will offer career transition assistance and the opportunity to apply for open positions within BAE Systems," the statement said.