Sighted Missile, Sank Same

The AIM-54C Phoenix air-to-air missile has become a symbol for both critics and supporters of the Pentagon's penchant for high-tech weaponry: at $950,000 a shot, it is designed to be launched from the Navy's supersophisticated F-14 fighter jets and to home in on enemy planes using computer-guided radar -- when it works. Last week the Navy, which budgeted $388.7 million for the missiles this fiscal year, publicly complained about the quality of the product. It told Hughes Aircraft Co. it would no longer accept shipments because of "marginal workmanship." Said one Navy officer: "It's quality control throughout the missile. When it's working, it's the best air missile in the world."

The Navy said it had discovered faulty welding and incorrect coding of electrical wires in the AIM-54C after a team of technicians disassembled a production-line missile last month. The Navy has already received 2,500 Phoenixes and has 373 more on order this year. A Navy technical team in Tucson is dissecting two more Hughes missiles to determine how serious the slip-ups have been. In the meantime the Navy is soliciting signs of interest from other suppliers. Said a Navy official: "I have a feeling this will shake things up quite a bit and Hughes will rapidly get its act into shape."