Breaking News from the front page of Military.com:
A senior Navy official said Thursday one of General Dynamics Corp. next-generation combat ships has been canceled after efforts to control costs failed.
After more than a month of extensive talks, neither the Navy nor Falls Church, Va.-based General Dynamics could agree on a restructured contract that contained cost overruns in a way that was acceptable to both parties.
"They were above the numbers we were willing to accept," Navy Adm. Charles Goddard, told reporters at a Pentagon briefing.
This is the second ship that the Navy has canceled on the so-called Littoral Combat Ship program. In April, the Navy terminated Bethesda, Md.-based Lockheed Martin Corp.'s second ship after costs on the first ship soared to at least $350 million from an initial price of $270 million.
The Navy declined to specify how much costs on the General Dynamics ship has exceeded initial estimates, but said the cost difference is comparable to Lockheed's.