Bloomberg: Lockheed helicopter came with unpublicized cost increase

|About: Lockheed Martin (LMT)|By:, SA News Editor

The Pentagon’s recent approval for the Marine Corps to start buying Lockheed Martin's (NYSE:LMT) new CH-53K King Stallion helicopter came with a surprise 6.9% cost increase for the program to $31B from $29B the Navy had reported in March 2016, Bloomberg reports.

The “program acquisition unit cost” estimate, with everything included, rose to $138.5M per helicopter from $131M as of August 2016 and a 20% increase from the initial goal of ~$115M established in late 2005, according to the report.

It is not unusual for cost estimates of major weapons programs to increase at a significant milestone, such as this month’s decision on the LMT helicopter, but the new cost estimate may become a focus of congressional oversight when the Marine Corps’ FY 2018 budget is submitted to Congress.