Navy seeks more HII cost-cutting

WASHINGTON -- The Navy is working with Huntington Ingalls to drive down costs on the CVN 78 aircraft carrier and LPD amphibious ships under construction. Navy acquisition chief Sean Stackley said HII hit the cost ceiling established in a fixed price contract for LPD-22, the second ship delivered at the Ingalls shipyard in Pascagoula, Miss. He told reporters at the Surface Navy Association's annual conference that subsequent ships in the class were also over target, but showing improvement. HII Chief Executive Mike Petters said the company had already taken charges for the cost overruns on the LPD ships 22 through 25, but said the company was doing better with LPD 26, which is in the early stages of production. (Source: Reuters, 01/12/12)