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Cost of New Northrop Ship Grows Again

From Bloomberg News

Northrop Grumman Corp.'s first San Antonio-class amphibious warfare vessel has increased in cost again, this time by about $40 million to repair leaky pipe joints, poorly strung cable and other flaws, said John Young, assistant secretary of the Navy for acquisition.

The ship is projected to cost $1.6 billion, or about 64% more than the Government Accountability Office projected in the mid-1990s. The vessel was delivered last month -- three years late and with more repairs required. It will be seven more months before it can be deployed.

Century City-based Northrop, the No. 1 U.S. shipbuilder, has had “significant quality issues” on this program, Young said in his first public remarks on the issue. “The $40 million is essentially an overrun.”


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