Navy Terminates Littoral Combat Ship 3

Monday, April 16, 2007
Secretary of the Navy (SECNAV), the Honorable Donald C. Winter discusses the Littoral Combat Ship (LCS) acquisition program during a press conference in the Pentagon. The new program plan will improve management oversight, implement more strict cost controls, incorporate selective contract restructuring and ensure vital warfighting capability is provided to the fleet in a timely manner. U.S. Navy photo by Chief Mass Communication Specialist Shawn P. Eklund From the Office of the Assistant Secretary of Defense Public Affairs

The Navy issued a stop-work order on construction on LCS 3 in January following a series of cost overruns on LCS 1 and projection of cost increases on LCS 3, which are being built by Lockheed Martin under a cost-plus contract. The Navy announced in March that it would consider lifting the stop-work order on LCS 3 if the Navy and Lockheed Martin could agree on the terms for a fixed price incentive agreement by mid-April. The Navy worked closely with Lockheed Martin to try to restructure the agreement for LCS 3 to more equitably balance cost and risk, but could not come to terms and conditions that were acceptable to both parties.

The Navy remains committed to completing construction on LCS 1 under the current contract with Lockheed Martin. LCS 2 and 4 are under contract with General Dynamics, and the Navy will monitor their cost performance closely. The Navy intends to continue with the plan to assess costs and capabilities of LCS 1 and LCS 2 and transition to a single seaframe configuration in fiscal year 2010 after an operational assessment and considering all relevant factors. General Dynamics’ ships will continue on a cost-plus basis as long as its costs remain defined and manageable. If the cost performance becomes unacceptable, then General Dynamics will be subject to similar restructuring requirements.

“LCS continues to be a critical warfighting requirement for our Navy to maintain dominance in the littorals and strategic choke points around the world,” said Winter. “While this is a difficult decision, we recognize that active oversight and strict cost controls in the early years are necessary to ensuring we can deliver these ships to the fleet over the long term.”

Maritime Reporter May 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Baltic Mercur II makes maiden voyage to Antwerp

This week Atlantic Ro-Ro Carriers (ARRC) celebrates the maiden voyage of the Baltic Mercur II via the port of Antwerp as part of their regular transatlantic service to the US Gulf.

USCG Provides Safety Tips to Paddlesports Enthusiasts

As the boating season unofficially begins, the 9th Coast Guard District is reminding paddlesport enthusiasts to take precautions to ensure safe trips and increase

USS George Washington Completes Carrier Qualifications

Carrier Air Wing (CVW) 5 and the Nimitz-class aircraft carrier USS George Washington (CVN 73) completed its carrier qualifications (CQ), May 23. CQ allows

Navy

Libyan War Plane Bombs another Tanker

A fighter jet operated by Libya's military force backed attacked an oil tanker that was about to anchor in the northern city of Sirte, reports local media.   Lt Gen.

US Navy Submarine to be Named USS New Jersey

The U.S. Navy's next Virginia-class attack submarine will bear the name USS New Jersey, says AP reports.   U.S. Secretary of the Navy Ray Mabus hosted a ship-naming

USS George Washington Completes Carrier Qualifications

Carrier Air Wing (CVW) 5 and the Nimitz-class aircraft carrier USS George Washington (CVN 73) completed its carrier qualifications (CQ), May 23. CQ allows

 
 
Maritime Security Naval Architecture Offshore Oil Pipelines Pod Propulsion Port Authority Ship Electronics Ship Repair Ship Simulators Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.3119 sec (3 req/sec)