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.
Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Huntington Ingalls Industries. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.