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Navy Continues LCS Production with Orders for Both Teams

Earlier this year the U.S. Navy had gone ahead and awarded contracts to the two builders of the Littoral Combat Ships (LCS) for up to ten ships of their designs. The LCS is a new small warship that will be the a largest class of ships built over the next few decades for the Navy.

Two teams one lead by Lockheed Martin (LMT) and the other by Austal America (ASB:AUS) are building the ships. Lockheed uses the Wisconsin based Marinette Marine as their shipbuilder and Austal utilizes their yard in Mobile, AL. Each team had orders for two but the new contracts increased that to up to 12.

Now the Navy is allocating funding for the ships under these contracts with Lockheed and Marinette receiving a contract for the second ship of their order of ten, LCS 7, which will be named the U.S.S. Detroit. The ships are expected to cost upwards of $400 million when completed but the contract is for about $375 million. The Navy had previously ordered LCS 5, the U.S.S. Milwaukee.

Austal has completed U.S.S. Independence (LCS 2) and is building the U.S.S. Coronado (LCS 4). They received an order for a further LCS at the same time Lockheed did which is worth about $368 million. This should be for LCS 8 but no name or number was given.

The subsidiary of the Australian maker of high speed ferries and other ships had earlier received a contract for engineering support worth about $20 million while Lockheed received one as well worth a little more.

The Navy had originally planned to use multiple sources for the LCS due to the need for the rapid construction of so many ships. This acquisition strategy went through some changes with at one point the Service planning a single source for the second batch after the delivery of the first four ships. Due to the competitive bids received from Lockheed and Austal the Navy asked Congress for permission to use two sources which was approved late last year. This led to the similar contracts for ten ships each.

The Navy has had plans to build upwards of fifty of the ships which while they have dissimilar hull designs carry the same basic payload of weapons and sensors. The ships will conduct a variety of missions including patrol, anti-submarine warfare and mine warfare.

Photo from uscgantareapa flickr photostream.

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One Response to “Navy Continues LCS Production with Orders for Both Teams”

  1. Navy Awards Littoral Combat Ship (LCS) Training Contracts | Defense Procurement News on January 29th, 2013 3:40 am

    […] far each yard has delivered 2 ships having received contracts for up to 10. LCS-4, the USS Coronado, made by Austal is almost complete and will commission this […]

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