DEFENSE CONTRACTORS: Grumman v. the Navy

IN recent years the scenario involved in developing new weapons has almost always followed the inevitable course of a Greek tragedy: the contractor signs with the Defense Department to do the work; then he runs into cost problems and manages to renegotiate the contract at a higher price. The Pentagon's budget suffers. Lately an angry audience of Congressmen, fed up with the repetitive drama, has been clamoring for the Pentagon to get tougher with defense contractors. Last week Grumman Corp. of Bethpage, Long Island, talked tough in return as it argued the...

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