Lockheed’s Army Spy Plane Contract Canceled

Lockheed Martin Corp.’s $879-million contract to develop a spy plane was canceled by the Army.

Lockheed has had problems controlling the Aerial Common Sensor’s weight and cost since it won the contract in August 2004 from Northrop Grumman Corp., builder of the Army’s current spy plane.

The contract was terminated because Lockheed Martin’s suggested options to solve the problems “could not provide the value that the taxpayers and our war fighters would expect from the existing contract,” an Army statement said.

The overall program was not canceled and will “go back to the drawing board,” the statement said.