Huntington Ingalls Wins $2.6 Billion to Refuel Aircraft Carrier
Huntington Ingalls won a $2.6 billion Department of Defense contract with the Navy on Friday. The "cost-plus-incentive fee contract" hires Huntington to perform a refueling and complex overhaul, or RCOH, of the nuclear aircraft carrier USS Abraham Lincoln. The award of the contract was made possible by the Consolidated and Further Continuing Appropriations Act for Fiscal Year 2013 recently passed in Congress.
RCOH refers to nuclear-powered aircraft carriers' need to be refueled with nuclear fuel about halfway through their 50-year expected service lives. The Lincoln, having been commissioned in late 1989, is just about at the 25-year mark already.
To date, only five U.S. aircraft carriers have undergone this procedure, which ordinarily takes three years to complete. Accordingly, Huntington is expected to complete work on the RCOH by November 2016.
The article Huntington Ingalls Wins $2.6 Billion to Refuel Aircraft Carrier originally appeared on Fool.com.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 don't 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.