At Least One Shipyard May Close as Navy Struggles with COVID Costs

August 11, 2020

Production costs at defense contractor sites may have increased by $11 billion between March and June, and the Navy may shut down one of its seven major shipyards, Breaking Defense reported, citing a Pentagon memo.

The document did not indicate which site may be closed.

It also laid out “major program delays” for the F-35 program and several other programs as staffing shortages slow manufacturing.

The memo asks Congress to fund coronavirus-related cost overruns – $4.7 billion for the Navy, $4.3 billion for the Air Force, $1.1 billion for the Army, $594 million for the Missile Defense Agency and $190 million for the Special Operations Command – according to the report.

Coast Guard Photo by Petty Officer 2nd Class Patrick Kelley

August 11, 2020

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