UPDATE 1-Unit cost of Raytheon artillery program soared

[unhappycamper]

UPDATE 1-Unit cost of Raytheon artillery program soared
Mon Nov 15, 2010 5:49pm EST

WASHINGTON, Nov 15 (Reuters) - The unit cost of Raytheon Co's (RTN.N) Excalibur precision-guided projectile has increased nearly 200 percent above initial estimates, breaching congressional thresholds and triggering a mandatory review for possible termination, the Pentagon said on Monday.

The increase stemmed from a big cut in the Army's planned purchase from 30,388 Excalibur artillery rounds to just 7,050, the Defense Department said in a news release explaining its most recent acquisition cost report to Congress.

While the program's project unit costs increased by nearly 200 percent, the overall cost of the new weapons program fell by $867 million or 35 percent to $1.6 billion, the Pentagon said.

For the program to continue, the Pentagon's top acquisition official must certify that it meets five criteria, including that it is essential for U.S. national security needs.

The Army's decision to scale back its purchases of the new Excalibur projectiles came in response to an internal review ordered by the vice chief of the Army.



unhappycamper comment: $1,600,000,000 / 7,050 = $226,950 a round unless I'm missing a decimal point or something.

I thought these things were expensive at $89 grand a pop.

[ChairmanAgnostic]

1. wasn't there a fear that a glitch in programming

would make these shells susceptible to jamming, and control by the enemy?

[mediaman007]

2. Nothing another $5,000,000 can't fix!

[DCKit]

3. Per missle. n/t

[unhappycamper]

4. Not really - that's for per 155 mm round.

The old dumb 155mms cost only $300 or so.

[ProgressiveProfessor]

5. Its called a Nunn-Mcurdy Breech for those who want to learn more

If it was well known ahead of time, getting past it is fairly easy.