INDUSTRY: Running Down Overruns

Defense contractors have often been accused of playing fast and loose with the public's money by bidding low for a new project and later billing the Pentagon for enormous cost overruns. But now the financial tribulations of Lockheed (see following story), which has been directed by Congress to swallow some $200 million in cost overruns, has convinced other contractors that they had better spot and announce excess costs well in advance of production. Last week the top echelon of the Pentagon was debating the future of a major new weapons system after...

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