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Tuesday, December 17, 2013

Navy Finally Gets a Refund on Canceled 1991 Stealth Attack Aircraft Project

A-12 Avenger IIBack in 1991, then-Secretary of Defense Dick Cheney abruptly canceled the Navy’s plans to buy 858 A-12 stealth attack aircraft after the cost of the program had spiraled to $5 billion from original estimates of just under $2 billion.

The A-12 manufacturers - McDonnell Douglas (now owned by Boeing) and General Dynamics – took the matter to court, including a trip to the Supremes, and lost, with a judgment requiring them to fork over $1 billion to the Navy.

This tale – rather quaint in 2013, when the Pentagon plans to spend $397 billion on the F-35 Joint Strike Fighter – will soon come to an end if the Senate passes the 2014 National Defense Authorization Act this week.

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