The Littoral Combat Ship (LCS) is a relatively inexpensive Navy surface combatant equipped with modular 'plug-and-fight' mission packages. The Navy wants to field a force of 55 LCSs. The first two LCSs (LCS-1 and LCS-2) were procured in FY2005 and FY2006 and were commissioned into service on Nov 8, 2008, and Jan 16, 2010. Another two (LCS-3 and LCS-4) were procured in FY2009 and are under construction. Two more (LCS-5 and LCS-6) were procured in FY2010 and are under contract. The Navy's proposed FY2011 budget requested funding to procure an additional two (LCS-7 and LCS-8). Although the Navy's FY2011 funding has not yet been fully determined, the Navy announced on March 17 that it had brought these two ships under contract. The Navy's proposed FY2012 budget requests funding to procure four more (LCSs 9 through 12). Navy plans call for procuring an additional 15 LCSs in FY2013-FY2016 in annual quantities of 4-4-4- 3. There are two very different LCS designs -- one developed and produced by an industry team led by Lockheed, and another developed and produced by an industry team led by General Dynamics. On Nov 3, 2010, the Navy notified congressional offices that it was prepared to implement a dual-award acquisition strategy under which the Navy would award each LCS builder a 10- ship contract for the six-year period FY2010-FY2015. The Navy stated that, compared to an earlier down select strategy that the Navy had announced in Sep 2009, the dual-award strategy would reduce LCS procurement costs by hundreds of millions of dollars. The Navy needed additional legislative authority from Congress to implement the dual-award strategy. Congress granted the authority in Section 150 of H.R. 3082/P.L. 111-322 of Dec 22, 2010. On Dec 29, 2010, the Navy implemented the dual-award strategy, awarding a 10-ship, fixed-price incentive (FPI) block-buy contract to Lockheed, and another 10-ship, FPI block- buy contract to Austal USA.
Navy Littoral Combat Ship (LCS) Program: Background, Issues, and Options for Congress
2011
69 pages
Report
Keine Angabe
Englisch
Business & Economics , Marine Engineering , Logistics Military Facilities & Supplies , Costs , Incentive contracts , Littoral zones , Naval procurement , Naval vessels(Combatant) , Quantity , Shipbuilding , Cancellation , Cracking(Fracturing) , Legislation , Multimission , Naval architecture , Naval budgets , Ship hulls , Shipyards , Survivability , Littoral combat ship , Dual-award acquisition strategy , Down select acquisition strategy , Lockheed martin design , General dynamics design , Fixed-price incentive block-buy contracts , Procurement costs , Cost growth , Hull cracking , Mission module changes , Ship cancellations