Lockheed, Northrop asked to pay $96 million to Coast Guard for bad boats

Reuters reported this evening that:

WASHINGTON – The U.S. Coast Guard has asked a joint venture of Lockheed Martin Corp and Northrop Grumman Corp to pay $96.1 million for eight patrol boats that it modified, but that cannot be used.

In the latest exchange between the Coast Guard and the venture, Integrated Coast Guard Systems (ICGS), the government said it concluded after reviewing thousands of documents that its revocation of acceptance of the patrol boats, was “not only timely, but was also technically and legally justified.”

“The government is seeking $96.1 million in repayment from ICGS for the failure to deliver 123-foot patrol boats that conform to the requirements of the contract,” said Coast Guard spokeswoman Laura Williams.

The full story can be read at Reuters.

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