General Dynamics' Work On Marine Corps Vehicle Under Fire In Congress

General Dynamics' Work On Marine Corps Vehicle Under Fire In Congress

General Dynamics Corp. demonstrated poor performance the last 12 years in developing a new U.S. Marine Corps amphibious warfare vehicle that's now almost five years behind schedule, a top lawmaker said Tuesday.

The transport has repeatedly failed tests designed to show it can perform without breakdowns.

The cost per vehicle has risen to $13.3 million from $5.31 million, calculated in mid-1990s dollars. In 2007 dollars, the cost is estimated at $21 million apiece.

Still, the Marine Corps has paid Falls Church, Virginia-based General Dynamics its fixed fee of $43 million, almost 80 percent of its eligible bonus -- $82 million, and plans to award the company another contract to build seven more prototype vehicles, said Representative Gene Taylor, chairman of the House Armed Services Committee panel that controls Navy and Marine Corps funding.

``An observer might reasonably ask why a contractor should get $82 million in award fee for a program that did not perform as promised and then get a contract extension that will be worth millions more,'' Taylor said at a hearing on the vehicle Tuesday.

``Going into combat in an armed vehicle that floats is dangerous enough, but if the same vehicle gets ashore -- far from maintenance support -- and breaks down, the Marines on that vehicle could be extremely vulnerable,'' said Taylor, a Mississippi Democrat.

General Dynamics spokesman Kendell Pease said: ``The company is working very closely with the Marine Corps and Navy leadership on a way ahead to enhance the reliability of the vehicle. We have taken great steps to identify the issues and are in the process of implementing improvements.''

The vehicle, the Expeditionary Fighting Vehicle, is the Marine Corps' top weapons program and is estimated to absorb as much as 39 percent of the service's weapons budget through 2013.

The transports are designed to deploy from vessels almost 30 miles (46 kilometers) off shore and carry 17 Marines to land three times faster than the current, 35-year-old vehicles now used in Iraq. The transport is supposed to go 43.5 hours without breaking down.

In testing last year, hydraulic leaks, engine overheating, weapons jams and other glitches occurred every 4.5 hours on average, according to the Pentagon's test office.

The transports would be built in Lima, Ohio. General Dynamics has built 10 pre-production models to date.

-- Bloomberg