Government Wants Refund for Faulty ShipsAssociated Press | January 09, 2008
WASHINGTON - Northrop Grumman and Lockheed Martin are open to negotiating a refund for faulty ships they provided the Coast Guard, but do not appear ready to fork over the $96.1 million the agency has requested.
The Coast Guard in May revoked its acceptance of eight 123-foot patrol boats due to hull buckling. A month later, problems were identified with other equipment and systems provided by Integrated Coast Guard Systems, a joint venture between Lockheed Martin Corp. and Northrop Grumman Corp.
The companies in June said the Coast Guard's request for a refund was not "supported as a matter of fact or law." They have left open the possibility of negotiating a settlement, however.
Northrop Grumman builds the ships while Lockheed Martin provides communications equipment and other technology.
The eight faulty cutters were removed from the waters off Florida in late 2006 and permanently decommissioned in April. Some of the electronics problems were first identified in 2003, a year after the joint venture was awarded the contract for the Coast Guard's so-called Deepwater fleet modernization.
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http://www.military.com/features/0,15240,159675,00.htmluhc comment: Another MIC scam unraveling.