Boeing Co.'s (BA) largest U.S. radio program was terminated by
the Defense Department because of rising costs, Bloomberg reported
on its website Friday, citing a letter to Congress from the
Pentagon's acting top weapons buyer.
"Based on growth in the unit procurement costs, I am terminating
the program," Frank Kendall wrote in the letter, which was obtained
by Bloomberg News.
The Defense Department will pursue a development program to buy
less-powerful radios to "provide required military capability at
less cost," Kendall wrote.
Boeing was developing the Joint Tactical Radio System's Ground
Mobile Radios as part of a group that included Northrop Grumman
Corp. (NOC), Rockwell Collins Inc. (COL), BAE Systems Plc (BA.LN)
and Harris Corp. (HRS).
Full story at
http://www.businessweek.com/news/2011-10-14/boeing-army-radio-program-terminated-by-pentagon-as-costs-rise.html
-Dow Jones Newswires; 212-416-2900