Stock Markets June 24, 2026 05:33 PM

Huntington Ingalls Secures $44.1M Modification for John C. Stennis Overhaul

Newport News Shipbuilding to perform supplemental refueling-complex work under schedule-incentivized contract change

By Caleb Monroe
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Huntington Ingalls Industries received a $44.1 million cost-plus-incentive-fee modification to an existing Navy contract to complete supplemental work on the CVN 74 Refueling Complex Overhaul for the USS John C. Stennis. Newport News Shipbuilding will carry out the work at its Newport News, Virginia facility, with a projected completion date of October 2026. The Navy will obligate $15 million in fiscal 2026 shipbuilding and conversion funds at award; those funds will expire at the end of the current fiscal year. Naval Sea Systems Command in Washington, D.C., is the contracting activity.

Huntington Ingalls Secures $44.1M Modification for John C. Stennis Overhaul
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Key Points

  • Huntington Ingalls received a $44.1 million cost-plus-incentive-fee modification to contract N00024-21-C-2106 for supplemental work on the CVN 74 Refueling Complex Overhaul.
  • Newport News Shipbuilding in Newport News, Virginia, will perform all work, which is expected to be completed by October 2026.
  • The Navy will obligate $15 million in fiscal 2026 shipbuilding and conversion funds at award; those funds will expire at the end of the current fiscal year.

Huntington Ingalls Industries has been awarded a $44.1 million modification to an existing contract from the U.S. Navy to support additional work on the USS John C. Stennis (CVN 74) refueling complex overhaul. The change to contract N00024-21-C-2106 is structured as a cost-plus-incentive-fee award and specifically covers supplemental tasks tied to the CVN 74 Refueling Complex Overhaul.

The modification includes a defined incentive aimed at encouraging adherence to schedule targets. Newport News Shipbuilding - the companys shipbuilding division located in Newport News, Virginia - will perform the work. According to the contract terms, all activities associated with this modification will be carried out at the Newport News facility.

Work under this modification is scheduled to conclude by October 2026. At the time of award, the Navy will obligate $15 million in fiscal 2026 shipbuilding and conversion funds toward the modification. Those funds are noted in the contract as expiring at the close of the current fiscal year.

Naval Sea Systems Command, based in Washington, D.C., is listed as the contracting activity responsible for this modification.


Below are the principal details of the contract modification and its immediate implications:

  • Contract vehicle and value: Cost-plus-incentive-fee modification valued at $44.1 million to contract N00024-21-C-2106.
  • Scope: Supplemental work on the CVN 74 Refueling Complex Overhaul for the USS John C. Stennis.
  • Performance location and organization: Newport News Shipbuilding, Newport News, Virginia; all work at that facility.
  • Schedule: Expected completion by October 2026.
  • Funding: $15 million in fiscal 2026 shipbuilding and conversion funds will be obligated at award and will expire at the end of the current fiscal year.
  • Contracting activity: Naval Sea Systems Command, Washington, D.C.

This modification adjusts the financial and scheduling parameters of ongoing work on the Stennis overhaul, incorporating explicit incentives tied to schedule performance while allocating near-term fiscal 2026 funds to support the additional tasks.

Risks

  • Schedule risk tied to the special incentive for schedule performance - failing to meet timeline targets could affect contract outcomes and potential incentives (impacts shipbuilding and defense contractors).
  • Funding risk related to the $15 million in fiscal 2026 shipbuilding and conversion funds which will expire at the end of the current fiscal year if not used (impacts defense funding and program cash flows).
  • Operational concentration risk since all work is scheduled to take place at the Newport News facility, which could amplify local workforce or facility disruptions (impacts shipbuilding operations and the regional economy).

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