Pentagon threatens to cancel C-17The Pentagon warned the...

BUSINESS DIGEST

May 12, 1993

Pentagon threatens to cancel C-17

The Pentagon warned the McDonnell Douglas Corp. yesterday that it would end the development of the C-17, a military transport, unless the contractor overhauled the troubled program, which has been hit by delays, cost overruns and technical problems.

The letter was the first indication that the Clinton administration was seriously considering canceling the $40 billion program, which is more than $1 billion over budget and caught in a web of contract disputes.

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