The Navy on Friday canceled Boeing‘s [BA] Harpoon Block III weapon system Program due to cost overruns and a delay in the testing schedule, the service said.

The Block III, was a modification of the current Harpoon Block I C weapon system, and added a Global Positioning System and weapons data-link to provide increased target selectivity and target acquisition.

The decision to terminate was made after Sean Stackley, the Navy’s acquisition chief, made a recommendation for cancellation following the program’s Gate 6 review March 27, the Navy said.

A Gate 6 review assesses overall program health including readiness for production. The review resulted in a recommendation for cancellation, citing budget concerns attributable to cost overruns and a delay in testing schedule. To date, $67 million has been expended to on the Harpoon Block III program, according to the Navy.

Budget concerns are attributed to an increase in the scope of required government ship integration and test and evaluation and a delay in development of a data-link for the system. Refinement of the required integration and test and evaluation resulted in a one-year extension of those phases. Developmental issues at Rockwell Collins [COL], a subcontractor to Raytheon [RTN], resulted in a delay in providing the prime contractor, Boeing, with government furnished equipment data-link for final integration into the Harpoon missile and launch control system algorithms, the Navy said.

Boeing’s performance on this contract was not a contributing factor to the cancellation of the program, the Navy added.

“The Harpoon Block III program team is executing an orderly and logical program cancellation plan and ensuring the continued fleet readiness of the currently fielded Harpoon Block I C,” Capt. Mat Winter, Precision Strike Weapons program manager, said. “Our number one priority continues to be to deliver the warfighter weapons that are lethal, interoperable and cost effective.”