Thursday, March 22, 2012

USAF withholds $621M to maker of gold-plated AMRAAM

USAF is withholding money for the latest AIM-120 AMRAAM:

Raytheon’s subcontractor, “has had difficulty for the past year consistently producing rocket motors to specification,” according to the Air Force.

The missiles are the newest version of the Advanced Medium- Range Air-to-Air Missile. These missiles are intended for deployment to Air Force fighter wings and Navy aircraft carriers once testing is done and they are declared combat-ready in fiscal 2013, the service said. The missile has been bought by more than 33 U.S. allies, including Jordan, Morocco and Kuwait.

“The government believes the suspension of payments is an appropriate and measured response to incentivize Raytheon contract compliance,” Lieutenant Colonel Jack Miller, an Air Force spokesman, said in an e-mailed statement. “Payments will resume after consistent delivery of functional missiles. The government is actively engaged in a joint industry-government team production improvement effort.”

In the last budget submission. DOD is now paying around $2.35M per AMRAAM !

Good use of your tax dollars.

3 comments:

Mike M. said...

I wonder if we could do a deal for Meteor? Some sort of hardware swap?

Anonymous said...

Last cost was 2 milion pounds each?

Anonymous said...

Hang on, according to jackjack,Aussie Digger, Gary Fairlie et al,it has a 100%success rate, so what is every one's problem?