Article: Navy Official Warns on Cost Overruns

WASHINGTON - A senior Navy official is warning that rising costs in key programs such as Lockheed Martin and General Dynamics' next-generation surface combat ships could derail efforts by the department to modernize its fleet and aircraft.

"We can't let costs continue to grow, or quite frankly, we won't have a Navy and the Navy won't have work to do," said Adm. Michael Mullen, Chief of Naval Operations, during a panel discussion this week at the Navy League Sea-Air-Space Exposition.

The Navy has awarded contracts for four ships that initially were estimated to cost $270 million each under the Littoral Combat Ship (LCS) program, two to Bethesda, Md.-based Lockheed Martin Corp. and two to ...

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