Pentagon: Faulty Data Likely Used To Save Lockheed C-130J Deal-WP

Source URL: http://money.aol.com/news/articles/_a/pentagonfaulty-data-likely-used-to-save/n20060624154909990006?cid=1205
Posted at: http://www.air-attack/com/news/news_article/1788

NEW YORK -(Dow Jones)- U.S. Defense Secretary Donald H. Rumsfeld relied on potentially faulty data when he saved Lockheed Martin Corp.'s (LMT) C-130J Hercules from cancellation last year, the Pentagon inspector general said in a report Friday that partly blamed a poorly written contract for keeping the transport plane alive, The Washington Post reported Saturday.

The Pentagon had recommended canceling the program, which had been plagued by rising costs and questions about its performance. However, an Air Force report to Rumsfeld concluded that it would cost nearly as much to cancel the commercial contract - about $1.78 billion - as it would to complete it. That finding prompted Rumsfeld to reverse course, the newspaper said.

The new report said the Air Force may have overstated the cost of canceling the contract by as much as $1.1 billion, the Post reported.

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