Lockheed makes new proposal on LCS ship |
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Tue, 10 Apr 2007 23:49
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WASHINGTON (AP) - Lockheed Martin said Tuesday it submitted a new proposal to the Navy for a next-generation combat ship in an effort to end a work stoppage the Navy ordered in January after cost overruns on the contract soared.The Navy ordered the work stoppage on the second of two Littoral Combat Ships that Lockheed originally had contracted to build for $270 million and later said would cost as much as $350 million.The Bethesda, Md.-based contractor has blamed the cost overruns on revised Navy requirements and delays in getting material from subcontractors.Lockheed spokesman Craig Quigley said Tuesday that the latest proposal 'is a starting point for further negotiations.' Company executives were in on-and-off meetings with Navy officials all day Tuesday, Quigley added.Navy Secretary Donald Winter said last month that Lockheed could start work on the second ship at its Wisconsin shipyard if the company agreed by April 12 to switch to a fixed-price contract.The Navy declined to confirm that Lockheed had submitted a new proposal or whether a deal could be cut before the deadline.'Negotiations with Lockheed Martin are on going. It would be inappropriate to talk about it at this time,' said Lt. Cindy Moore, a Navy spokeswoman.Lockheed's contract is for two LCS ships and Falls Church, Va.-based General Dynamics Corp. has a contract to build two more.Shares of Lockheed rose two cents to close at $98.05 on the New York Stock Exchange, while share of General Dynamics fell 13 cents to close at $78.39, also on the NYSE.Copyright 2007 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
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Lockheed, Navy could broker deal on LCS 