In spite of all the design problems and the MC-1 crash, a contract was approved on 13 November 1943 for two test flight articles and one static test article of the MC-1 glider designated as the USAAF XCG-16.
Only one XCG-16, (44-76193), was manufactured and tested, demonstrating good flying qualities, but major issues with military equipment and procedures precluded the CG-16 from a production contract as it did not meet military expectations as a combat glider.
The contract for all remaining work on the CG-16 was cancelled on 30 November 1944.