Rising Steel, Oil Prices Raise LCS Costs

Monday, August 18, 2008

Lockheed Martin Corp. says a double-digit jump in the cost of steel and rising oil prices have influenced the rise in the final price tag of its latest warship for the Navy to more than double the initial estimates.  Navy officials last month told lawmakers the service's initial estimate of $220m per ship had ballooned to as much as $550 million, which they blamed on design changes that occurred during construction.

While the cost of the first two Littoral combat ships--one each being built by Lockheed Martin and General Dynamics Corp.-- is not allowed to breach a congressional cost cap of $460 million per vessel, the ceiling does not apply to run-ups in inflation.   Lockheed Martin is expected to deliver its first ship to the Navy in a few weeks, after the service completes its own set of trials and the company makes any necessary changes. The Navy has yet to set a date on when the ship will be commissioned.

Source:  AP

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

Navy

Brazilian Police to Probe Nuclear Submarine Program

Brazilian federal police are investigating potential irregularities in a military program that aims to build a nuclear-powered submarine in partnership with France by 2023, newspaper Folha de S.

Philippines Mulls Massive Military Spend

Philippine generals on Wednesday asked Congress to almost triple annual defence spending over the next five years to upgrade equipment amid an escalating marine dispute with giant neighbour China.

Japan Seeks Australian Submarine Contract

Japan will send a high-level delegation to Adelaide for talks on building Australia's next-generation fleet of submarines.   A former commander of the Japanese

 
 
Maritime Standards Naval Architecture Pipelines Pod Propulsion Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar 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: 0.1466 sec (7 req/sec)