Navy cancels $20b purchase of destroyers

A stunning Navy decision to abort a $20 billion plan for a new fleet of destroyers yesterday threw into question the future of Raytheon Co.'s largest defense program and renewed longstanding concerns about the fate of the Bath Iron Works shipyard in Maine. Waltham-based Raytheon is the prime contractor for the ship's combat systems, which are being developed at its Tewksbury and Andover plants. Assembly work on the guided-missile destroyers was to have been divided between the 124-year-old Bath shipyard, owned by General Dynamics Corp., and a yard in Mississippi. Cancellation of the 14,000-ton, Zumwalt-class destroyer, called the DDG-1000, after just two ships were funded, was made public by Maine's two Republican senators, Olympia J. Snowe and Susan M. Collins, and US Representative Thomas H. Allen, a Democrat whose district includes the Bath shipyard. The lawmakers said they were informed by top Navy officials that with costs rising 50 percent, to $3 bil lion per ship, the program has become too expensive and would make it impossible for the Navy to meet its overall goal of a 313-ship fleet. The service currently has about 280 ships. The lawmakers said they were also told that the Navy had concluded the destroyer's design was not well suited to combating the evolving threat of long-range missiles. Navy representatives declined to confirm they were scrapping the program, nor would spokesmen for Raytheon and General Dynamics. "We won't discuss the content of our internal budget briefings," Lieutenant Clay Doss, a Navy spokesman, said yesterday. "That said, we continue to discuss all options to develop the surface ship force for the future that will meet all identified requirements". The news set off a flurry of activity. Dugan Shipway, Bath Iron Works president, flew to Washington yesterday to discuss the impact of the cancellation with Maine lawmakers. The lawmakers and their staffs scheduled a series of meetings with the Navy to get more answers.