The Navy is procuring a new type of surface combatant called the Littoral Combat Ship (LCS). The LCS is a small, fast, relatively inexpensive combat ship that is to be equipped with modular 'plug-and-fight' mission packages. The basic version of the LCS, without any mission packages, is referred to as the LCS sea frame. The Navy wants to procure a total of 55 LCSs. The Navy substantially restructured the LCS program in 2007 in response to significant cost growth and construction delays in the program. The first ship in the program (LCS-1) was commissioned into service on November 8, 2008. A second (LCS-2) is to be delivered to the Navy later this year. Two more LCSs were funded in FY2009 at a cost of $1,020 million and are now under construction. The Navy is expected to request roughly $1,500 million in its proposed FY2010 budget for the procurement of three more LCSs. Section 122 of the compromise version of the FY2009 defense authorization bill (S. 3001/P.L. 110-417 of October 14, 2008) delayed the implementation of the LCS sea frame unit procurement cost cap to ships procured in FY2010 and subsequent years. (The cost cap previously was to be applied to ships procured in FY2008 and subsequent years.) The issue for Congress is whether to approve, reject, or modify the Navy's plans for the LCS program. The LCS program raises potential oversight issues for Congress relating to cost growth, total program acquisition cost, the procurement cost cap, technical risk, operational evaluation and competition for production, a proposed common combat system, and coordination of sea frames and mission packages. This report will be updated as events warrant.


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