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  • LCS's Shocking Ending: Everybody Wins
    Posted by Michael Bruno 10:14 PM on Dec 29, 2010

    This just in from the Pentagon...

    The Navy has awarded Lockheed Martin Corp. and Austal USA each a fixed-price incentive contract for the design and construction of a 10 ship block-buy, for a total of 20 littoral combat ships from fiscal 2010 through fiscal 2015.

    The amount awarded to Lockheed Martin Corp. for fiscal 2010 littoral combat ships is $436,852,639. The amount awarded to Austal USA for the fiscal 2010 littoral combat ships is $432,069,883. Both contracts also include line items for nine additional ships, subject to congressional appropriation of each year's Littoral Combat Ship (LCS) Program requirements.  When all 10 ships of each block buy are awarded, the value of the ship construction portion of the two contracts would be $3,620,625,192 for Lockheed Martin Corp., and $3,518,156,851 for Austal USA.

    The average cost of both variants including government-furnished equipment and margin for potential cost growth across the five year period is $440 million per ship. The pricing for these ships falls well below the escalated average Congressional cost cap of $538 million.
    UPDATE: Aviation Week's Mike Fabey's story is here. Needless to say I suspect everyone is happy, except the future fleet commander who has to make logistics and personnel work affordably across two different classes of LCS.

    Tags: ar99, LCS, Navy

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