$6 Billion Lockheed Deal For Spy Plane in Jeopardy - WP

"The Army ordered Lockheed Martin Corp. to stop work on a $6 billion manned spy plane program yesterday after determining that the company's proposal would not meet the project's requirements."

"Lockheed beat a team led by Northrop Grumman Corp. last year for the contract to develop the unarmed Aerial Common Sensor, which is intended to fly at 37,000 feet to detect enemy signals and track troop movements. But the Army determined that the regional jet from Brazil's Embraer SA that Lockheed planned to use was too small for the job."

"Though the Army did not cancel the program yesterday, Lockheed has only 60 days to submit a plan addressing the Army's concerns. A stop-work order is generally considered an indication that a program is at risk of cancellation. Lockheed officials have said they are considering several options, including using a different plane."

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