The U.S. Navy's DDG-1000 destroyer program has breached congressional cost thresholds due to last year's decision to truncate the program at three ships, Defense Secretary Robert Gates said. But Gates said the cost increase was not due to any performance issues, and the Pentagon planned to continue the program despite a mandatory review that could lead to its termination under the Nunn-McCurdy law.
The Navy told lawmakers in a letter dated Feb. 1 that the ship's program acquisition unit costs had increased by 86.4 percent, breaching the cost thresholds, but emphasized the surge was due solely to the reduced quantity.
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