Northrop Drone Costs Rising `Unacceptably,' Must Be Held, Pentagon SaysBy Tony Capaccio - Wed Sep 15 04:01:00 GMT 2010
The price of Northrop Grumman Corp.’s Global Hawk unmanned reconnaissance plane is rising too quickly and must be reined in, the Pentagon’s top weapons buyer said.
“Its costs have been growing unacceptably and have to be gotten under control -- and will be,” Undersecretary for Acquisition Ashton Carter said in an interview with Bloomberg Television. “We are not happy with the productivity we are getting. We are very much discussing that program and going through its management in detail.”
A Defense Department and Air Force review of the $11.1 billion program to buy 77 planes is almost done, the service said in a statement.
The per-aircraft procurement cost has increased 11 percent to $100.8 million since the project started in 2000, according to the Air Force.Global Hawk is one of several unmanned planes being used to meet Defense Secretary Robert Gates’ goal of expanding 24-hour drone patrols to 65 a day by 2013 from about 39 now. Gates has said he plans to save as much as $100 billion through 2015 by wringing out inefficiencies and overhead in the defense industry and the Pentagon itself.
The objective of the “very intensive” review is to avoid cost increases that would trigger the 1982 Nunn-McCurdy law requiring the Pentagon to certify to Congress the program’s importance to national security and show why it shouldn’t be canceled, Carter said. The measure takes effect when a program’s expense exceeds its initial cost estimate by 15 percent.
unhappycamper comment:
Bloomberg sez a single Global Hawk costs $100.8 million dollars.
Wikipedia sez a single Global Hawk costs $123.2 million dollars.
Northrop Grumman isn't looking all that good.