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thedrifter
03-15-06, 06:50 AM
Admiral keelhauls execs over USS San Antonio
Web Posted: 03/15/2006 12:00 AM CST

Eric Rosenberg
Hearst Newspapers

WASHINGTON — Conceding the Navy chronically fails to build new warships on budget, the nation's top admiral said Tuesday he has chided executives of Northrop Grumman Corp. about their poor performance in building the newest over-budget ship, the USS San Antonio.

Nonetheless, Adm. Michael Mullen, the chief of naval operations, said the San Antonio — commissioned in January, based Norfolk, Va., and undergoing testing, "is going to be a great ship."

"I personally have engaged the company at senior levels," Mullen told defense reporters, "and have been assured that they know they didn't do that well" and that they should not repeat the poor performance. "That assurance is important to me."

The USS San Antonio, also known by the designation LPD-17, is the first ship in a new class that will transport Marines, their weapons and equipment.

With a crew of about 360 and able to carry some 700 Marines, the San Antonio is the first ship designed to carry the Marine Corps V-22 tilt-rotor aircraft, which will enter service next year.

In addition, the ship will carry helicopters and hovercraft.

The ship has proved to be one of the Pentagon's most troubled recent acquisitions.

A major problem stemmed from the fact that Northrop Grumman was building the ship as it was designing it, according to the Government Accountability Office, Congress' investigative branch. This manufacturing strategy known as "concurrency," which Congress has lambasted in the past for leading to huge overruns on other weapons projects, proved high-risk, high-cost and ultimately inefficient.

Navy inspectors last year found the San Antonio was rife with shoddy workmanship — such as bad electrical wiring, corrosion and safety flaws throughout. Mullen said these problems have since been corrected.

"We have struggled at times with the contractor in terms of delivering ships on time and some of the quality of the work," Mullen said.

Congress initially approved $953 million for the USS San Antonio and $762 million for the second ship in the class, LPD-18, for a total of $1.7 billion for both ships.

But costs have surged, and the price tag for both ships now is expected to come to $2.7 billion, an estimated $1 billion over budget.

The GAO is warning that costs could creep up another $300 million by the time both ships are ready for deployment.

Northrop Grumman began construction on the ship in 2000, and the company was to deliver it to the Navy in 2003. But the problems resulted in a two-year delay.

Mullen conceded Tuesday that the Navy doesn't "have a very good track record for the last decade or so in terms of controlling costs."

But "we think we understand an awful lot of the drivers with respect to why the costs aren't controlled."

The Navy commissioned the San Antonio in January, and it could take another 18 months of testing and crew training before the ship steams on its first deployment.

Ellie