Congress protests DDG-100 cancellation
Filed under: Congress, Federal Budget Process, General Dynamics, Maine, Massachusetts, Northrop Grumman Corp., Restructuring, U.S. Navy, development program, production program
Recently the US Navy announced that it was not going to continue the DDG-100 program. Two ships are under construction by Northrop-Grumman and General Dynamics. Not unexpectedly the Senators from the affected states, mainly Massachusetts and Maine, have protested. See an article here. The major recent the Navy cites is the continued cost growth of the program. The first two were projected at under $4 B each, but now the estimates are over $5.5 B. Other than the shipbuilders, Raytheon is the most affected company as it was building the combat system of sensors for the ship. The Navy intends to continue production of the DDG-51 class instead. Read more
Boeing claims USAF cost estimates for KC-45 favored EADS
Filed under: Boeing, Contract Awards, EADS, Northrop Grumman Corp., Protest, U.S. Air Force, commercial aviation, development program, logistics
As part of the source selection for any program the Government does an Independent Cost Estimate (ICE) for the various proposals. If it is for an ACAT ID program the OSD Cost Analysis Improvement Group (CAIG) does it, and if it is ACAT IC then the service’s cost people do it. Boeing is claiming that the ICE for their aircraft was flawed and that the USAF deliberately favored the Northrop Grumman proposal. See the story here. Having been involved in the process of generating these estimates I find it hard to believe that the independent cost analysts would deliberately do this. Read more
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