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Business/Financial

E-2D Suffers Nunn-McCurdy Breach, Gets Approved For LRIP

DDN

Tuesday, June 16th, 2009

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By Emelie Rutherford and Geoff Fein The Navy's E-2D Advanced Hawkeye being developed by Northrop Grumman [NOC] suffered a critical cost breach triggering an already completed Pentagon certification under the so-called Nunn-McCurdy statute. Additionally, the aircraft was approved to begin low-rate initial production (LRIP) June 11. Northrop Grumman yesterday was awarded a $432 million fixed-price incentive contract for LRIP. Navy Secretary Raymond Mabus notified Congress' leaders and the heads of its defense panels in letters dated June 11 that the…

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