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Latest CRA Allows Navy to Use Multiple Sources for LCS

In the on again off again tale of the Navy’s new small combatant Congress approved the revised acquisition strategy of using multiple sources for the next twenty ships. In the latest Continuing Resolution Authority (CRA) passed by Congress Tuesday and signed by President Obama the Navy is given permission to buy ten Littoral Combat Ships (LCS) from Lockheed Martin (LMT) and Austal America (ASB:AU).

Lockheed will team with Marinette Marine Corp. of Michigan while Austal originally worked with General Dynamics (GD) for the first four LCS but for this round of bidding submitted their own. General Dynamics had decided that for future contracts they might bid by themselves.

Ten days ago the Navy had asked the two bidders to extend their prices while asking Congress for this change in strategy from the plan to buy the next batch of LCS from a sole source. The prices offered were so good that the Navy had decided to try and return to the original LCS acquisition strategy of multiple sources.

Because the plan is to buy fifty or more of the ships the idea of having two or more builders of the small ship would maximize the number being delivered. While the two hull designs are very dissimilar the overall combat load out is the same. The LCS will be optimized for fighting close to shore and be able to carry different equipment so that it may carry out missions such as mine sweeping, anti-piracy as well as fighting other ships and submarines.

The decision is a boon to the U.S. ship building industry as it guarantees work at least for the next few years to two yards rather then one.

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One Response to “Latest CRA Allows Navy to Use Multiple Sources for LCS”

  1. Tweets that mention Latest CRA Allows Navy to Use Multiple Sources for LCS | Defense Procurement News -- Topsy.com on December 23rd, 2010 4:15 am

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