Tuesday, September 15, 2015

General Dynamics Destroyer Reviewed by U.S. for Cancellation - Bloomberg Business

General Dynamics Destroyer Reviewed by U.S. for Cancellation - Bloomberg Business: Pentagon officials are weighing whether to cancel the last of three ships in General Dynamics Corp.’s $22 billion program to build new destroyers even though the vessel is already under construction.

Canceling the USS Lyndon B. Johnson, a Zumwalt-class destroyer, is a topic that’s “to be reviewed in the next few weeks” by teams formed by the Pentagon’s independent cost-assessment office, according to a Defense Department briefing document dated Aug. 25. Two officials familiar with the issue confirmed that cancellation discussions are under way although no decision has been made.

The Zumwalt-class destroyer is designed as a multimission land-attack vessel that will use electricity generated by gas turbines to power all of its systems, including weapons. The cancellation discussions, part of planning for the fiscal 2017 budget, are the latest twist for a program that’s been buffeted by delays, rising costs and changing plans.