Pentagon Increases Spending on New Aircraft Carrier by $407 Million

For the second time this month, the U.S. Department of Defense has awarded military shipbuilder Huntington Ingalls (NYSE: HII  ) a multimillion-dollar modification to a previously awarded contract for work related to construction of the new aircraft carrier CVN 79.

The carrier in question is the USS John F. Kennedy, scheduled to go into service in 2020. Huntington was awarded $65 million earlier this month to "procure additional long lead material and advance construction activities." The instant contract ups that amount by a further $407.4 million (so $472.4 million in all), and again funds procurement of long lead materials and advance construction activities.

The Pentagon's award announcement notes that by providing these additional funds today, Huntington may have a better chance of being able to preserve the construction schedule originally worked out. Huntington is expected to spend these latest funds by October 2015.


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