Navy Requests Changes to General Dynamics

Navy Requests Changes to General Dynamics Deal

Monday, September 24, 2007

The U.S. Navy has reportedly asked General Dynamics Corp to switch to a fixed-price contract for its shore-hugging Littoral Combat Ships or risk losing at least part of the deal. The Navy asked General Dynamics to restructure the deal due to cost growth ranging from 50 percent to 75 percent on the company's lead ship. General Dynamics cannot start work on its second LCS ship until a deal is reached to set a ceiling on the construction price, the Navy said. (Source: Reuters)

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