WASHINGTON — A Lockheed subsidiary agreed Thursday to trim an additional $253 million from the cost of the Air Force's C-5B program, accepting a reduced $1.95-billion contract to build the final 21 giant cargo planes.
The contract will bring to 50 the number of C-5s delivered by Lockheed-Georgia in Marietta, Ga., a wholly owned subsidiary of Lockheed, which has headquarters in Calabasas, Calif.
Thursday's price reduction brings the total cost of the 50-plane program down to about $6.95 billion from the 1982 contract price of $7.8 billion.
A House committee has charged that the original contract was far too generous. Rep. John Dingell (D-Mich.), chairman of the House Energy and Commerce Committee, said Lockheed was allowed to charge huge amounts in overhead and to set in place a generous profit margin and that the total contract could be overvalued by as much as $1 billion.