Defense Undersecretary Frank Kendall said the department would look to other options if Raytheon’s performance did not improve.
Kendall approved the revamped schedule after a December 4 review of the troubled programme which has doubled in cost to $3.6 billion.
Apparently the Pentagon looked hard at the project and the consensus was that it needed to continue” with Raytheon but with intense management.
Halting the programme and starting over would have added billions of dollars in costs and delayed completion by at least three years, Kendall said.
Kendall said he opted for the two-year delay instead of the 47-month delay initially proposed by the Air Force because Kennedy had assured him it was doable, and also because he did not want to “give the program that kind of latitude”.
Raytheon’s problems on the programme had gone on for years and the program “has not been executed very well,” he said.