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Federal Funding of Nuclear-Powered Carrier Passes $533 Million

By Rich Smith – May 7, 2013 at 4:59AM

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Huntington Ingall gets latest installment to prepare to build the USS John F. Kennedy.

Work on the nation's next nuclear-powered aircraft carrier, the USS John F. Kennedy (CVN 79), continues apace.

Following up on a $65 million contract award to fund purchases of "long lead material" in early March, and a further $407.4 million awarded a couple of weeks later, the Department of Defense modified its contract with Huntington Ingalls (HII 0.95%) yet again on Monday.

According to the Pentagon's announcement, this latest $60.8 million installment is expected to give Huntington sufficient funds needed to "provide all services and material in preparation for construction of CVN 79, including necessary research studies; engineering; design; related development efforts; advance planning; advance procurement for detail design and procurement of long lead material; advance construction; life cycle support; logistics data and other data."

In total, therefore, Huntington has now been awarded more than $533 million over the past two months, to ensure it has the monies necessary to proceed with building the Kennedy -- at least through October 2015, when the current contract expires.


Fool contributor Rich Smith has no position in any stocks mentioned. The Motley Fool owns shares of Huntington Ingalls Industries. 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.

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