In the 1980s, the Navy began a program to replace its aging fleet of A-6 medium attack aircraft with a new aircraft-the A-12-that would incorporate stealth technology. In January 1988, the Navy awarded a fixed-price incentive contract for full-scale development of the A-12 to the team of General Dynamics and McDonnell Douglas Aerospace Corporations. The contract had a target price of $4.4 billion and a ceiling price of $4.8 billion. On January 7, 1991, the Secretary of Defense announced that the Navy had terminated the A-12 contract for default because the contractors had difficulties in executing the contract. The Navy projected that the contractors would overrun the ceiling price by $2.7 billion. The Navy also projected that the first flight would be delayed by over 2 years. This document explains this problem.


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    Title :

    Naval Aviation: Opportunities to Apply A-12 Research, Knowledge, and Technologies


    Publication date :

    1992


    Size :

    8 pages


    Type of media :

    Report


    Type of material :

    No indication


    Language :

    English