April 10, 2007
Lockheed makes new proposal to Navy on LCS
AP reports Lockheed Martin as saying it has submitted a new proposal to the Navy in an effort to get work restarted on the second of two Littoral Combat Ships.
The Navy issued a stop work order on the ship on January 12 because of "significant cost increases currently being experienced with the construction of LCS-1 and LCS-3, under construction by Lockheed Martin."
Secretary of the Navy Donald C. Winter last month said he was prepared to lift the stop work order, but that lifting the order was contingent upon the Navy and Lockheed Martin reaching agreement on a renegotiated contract.
Today's AP story quotes a Lockheed spokesman as saying that the latest proposal "is a starting point for further negotiations" and that company executives had been "in on-and-off meetings with Navy officials all day."