Navy funds construction of four more FY 2012 littoral combat ships

The Navy reports that it has issued contract modifications to Lockheed Martin Corporation and Austal USA under their respective littoral combat ship (LCS) block buy contracts to add funding for construction of two fiscal year 2012 littoral combat ships each.

Under the block buy contract with Lockheed Martin Corporation, $715,000,351 was added for construction of two fiscal year 2012 LCS ships. Under the block buy contract with Austal USA, $691,599,014 was added for construction of two fiscal year 2012 LCS ships. These ships will be built at Marinette Marine Corporation in Marinette, Wis., and Austal USA in Mobile, Ala., respectively.

This is the third funding increment for each contractor under their previously awarded, fixed-price incentive “block buy” contracts for the design and construction of up to 10 LCS Flight 0+ ships. The two block buy contracts provide for the acquisition of a total of up to 20 littoral combat ships from fiscal year 2010 through fiscal year 2015, subject to availability of appropriations.

The prices for the fiscal year 2012 ships were determined based on the competitive, LCS dual block buy contracts awarded Dec. 29, 2010, and also include values associated with the incorporation of approved change orders funded for the fiscal year 2010 and fiscal year 2011 ships previously awarded in the block buy contracts.

“The Navy is successfully driving down costs in the Littoral Combat Ship program,” said Rear Adm. James Murdoch, program executive officer for Littoral Combat Ships. “We are continuing to execute the dual award strategy for these ships. Efforts to stabilize design, improve production planning, invest in shipbuilder improvements and leverage long-term vendor agreements all within the framework of a competitive fixed-price contract have returned this program to the level of affordability necessary for the Navy to move forward with construction at efficient rates in support of the 55-ship LCS requirement.”

The funding obligated is for the ninth through the twelfth ships in the LCS class. USS Freedom (LCS 1) was delivered to the Navy in September 2008 and is currently executing it planned post delivery test and trial events at its homeport in San Diego. USS Independence (LCS 2) was delivered to the Navy in January 2010 and is currently undergoing test and trials in Mayport, Fla. Fort Worth (LCS 3) is under construction at Marinette Marine and is planned to deliver in June 2012. Coronado, (LCS 4) is under construction at Austal USA and, is expected to deliver in early 2013.

Milwaukee (LCS 5) and Jackson (LCS 6) are in the early stages of construction. Detroit (LCS 7) and Montgomery (LCS 8) are in pre-production stages.

March 19, 2012