Procurement: April 7, 2001

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Northrup Grumman, builder of the B-2 bomber, says they can cut the price to $700 million if nuclear weapons capabilities are removed. This offer is no doubt driven by the new analysis of the defense budget undertaken by the new administration. But the price quoted is not much different than what was offered earlier. Nuclear capability does not cost much and the $2 billion per plane price often quoted includes the enormous development costs. We've built 20 B-2s at a total cost of $40 billion. If 40 more are built at $700 million each, the new per aircraft cost for 60 B-2s is $1.13 billion each. Still a pretty pricey bomber.