Welcome to DU! The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards. Join the community: Create a free account Support DU (and get rid of ads!): Become a Star Member All Forums Issue Forums Culture Forums Alliance Forums Region Forums Support Forums Help & Search

The Straight Story

(48,121 posts)
Tue Jan 3, 2012, 08:40 PM Jan 2012

Navy: Carrier cost overruns may hit $1.1 billion,may put the company's $579.2 million profit at risk

Navy: Carrier cost overruns may hit $1.1 billion

The Navy has estimated a worst-case cost overrun of as much as $1.1 billion for the aircraft carrier Gerald R. Ford, the service's most expensive warship.

The carrier is being built in Newport News by Huntington Ingalls Industries under a cost-plus, incentive-fee contract in which the Navy pays for most of the overruns. Even so, the service's efforts to control expenses may put the company's $579.2 million profit at risk, according to the Navy.

A review of the carrier's rising costs began in August after the Navy's program manager indicated that the "most likely" overrun had risen to $884.7 million, or about 17 percent over the contract's target price of $5.16 billion. That's up from a $650 million overrun estimated in April, according to internal Navy figures made available to Bloomberg News. The worst-case assessment would be about 21 percent over the target.

"Regular reviews of the cost performance indicated cost increases were occurring," Capt. Cate Mueller, a Navy spokeswoman, said in a statement.

http://hamptonroads.com/2012/01/navy-carrier-cost-overruns-may-hit-11-billion

5 replies = new reply since forum marked as read
Highlight: NoneDon't highlight anything 5 newestHighlight 5 most recent replies
Navy: Carrier cost overruns may hit $1.1 billion,may put the company's $579.2 million profit at risk (Original Post) The Straight Story Jan 2012 OP
Well it is a republican carrier Angry Dragon Jan 2012 #1
If you caculate by the per lb.....we're getting a good deal when compared to the aircraft Old and In the Way Jan 2012 #3
too effing bad, eat the loss like a free market corporation should, without welfare nt msongs Jan 2012 #2
It's not Solyndra. hay rick Jan 2012 #4
Thats why we need free trade , It should be built, overseas. bahrbearian Jan 2012 #5

Old and In the Way

(37,540 posts)
3. If you caculate by the per lb.....we're getting a good deal when compared to the aircraft
Tue Jan 3, 2012, 08:53 PM
Jan 2012

that fly off their decks.

hay rick

(7,521 posts)
4. It's not Solyndra.
Tue Jan 3, 2012, 08:54 PM
Jan 2012

Twice the loss, 2% of the coverage. It's good to be a part of the media-shielded military/industrial complex.

Latest Discussions»General Discussion»Navy: Carrier cost overru...