Navy Cuts One Littoral Combat Ship in 2015

Posted by Greg Trauthwein
Thursday, April 10, 2014

 U.S. Navy Aims To Smooth Impact Of Fiscal 2015 Cut To Ship Orders

 
Add to Collection(Oil)|Print
Download:Plain TextXMLAll
 
 
 
 
WASHINGTON, April 10 (Reuters) - The U.S. Navy hopes to smooth out the impact on Lockheed Martin Corp and Australia's Austal of a budget-driven decision to order three Littoral Combat Ships instead of four in fiscal year 2015, the Navy's top weapons buyer said on Thursday.
 
The Navy had planned to buy two of each of the different small warships built by Lockheed and Austal in fiscal 2015 and 2016, but it scaled back those orders to three ships a year as a result of budget cuts mandated by Congress.
 
Assistant Navy Secretary Sean Stackley told members of the Senate Armed Services Committee's seapower subcommittee that Navy officials would now meet with both companies, and evaluate their schedules, material purchases, expenditures and performance before deciding how to divy up the orders this year.
 
"What we are striving for is an outcome that has zero impact to either builder and the vendor base," Stackley told reporters after the hearing. "We're going to arrive at what we think is the best outcome between the two builders and the split of ships between 2015 and 2016," he told reporters.
 
Stackley said the decrease in orders for 2015 would have some effect on the cost of the ships, but the Navy hoped to minimize that impact by working closely with the shipbuilders.
 
The Pentagon is reassessing the $34 billion Littoral Combat Ship (LCS) program and whether to buy all 52 of the fast, agile warships planned, or whether to modify the designs to give the ships more firepower and increase their ability to survive.
 
Stackley said he was confident that the Navy's orders for the ship orders could be timed to maintain both shipyard's production schedules, but he was less confident about smaller vendors that provide materials to the larger contractors.
 
Both companies are under contract to build a total of 10 ships for the Navy, and the final four ships were to be ordered in fiscal 2015, bringing the total built to 24.
 
Stackley said the contracts were contingent on the availability of funding from Congress, but any changes to the contracts would require bilateral agreements, he said.
 
In addition to the budget cuts, Defense Secretary Chuck Hagel has ordered the Navy to halt orders for the smaller, more agile warships after 32 ships, and to study ways to better protect the ships and give them more firepower.
 
A high-level Navy task force is to deliver recommendations on the issue by July 31, in time to inform the Navy's fiscal 2016 budget deliberations, Stackley told the committee.
 
Senator John McCain, a senior Republican on the committee who has urged the Navy to halt the LCS program after 24 ships, renewed his criticism of the program at the hearing on Thursday.
 
Stackley acknowledged the program encountered sharp cost increases shortly after it began in 2005 but said that was largely due to changes in Navy requirements. He said costs were now far below congressional cost caps, and development was progressing on separate interchangeable equipment packages.
 
Stackley said the ship had some ability to protect itself, but would generally be deployed together with other ships that could provide greater protection against airborne threats.
 
He said the ships were also far more "survivable" than the mine-hunting ships they were replacing, which had no self-defense capability.
 
(By Andrea Shalal; Reporting by Andrea Shalal; Editing by Ken Wills)
 
 
Maritime Reporter October 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

World’s Largest Boxship is DNV GL classed

CSCL Globe, the world’s largest containership and the first of a series of five 19,100 TEU containerships ordered by China Shipping Container Lines (CSCL) in 2013,

ESSA's Fleet Upgradation Environmental Driven

State-controlled Exportadora de Sal SA de CV of Mexico ("ESSA"), one of the world’s largest salt exporters with a 10-million-ton annual production, has strengthened

Kleven Wins New Yacht Contract

Norwegian ship builder Kleven has secured a new contract for a high specification, 116-metre long Expedition Support Vessel. The order is placed by Mr Graeme Hart,

Navy

NATO Unconcerned by Russian Warships in English Channel

A squadron of Russian warships entered the English Channel on Friday but a NATO official dismissed a Russian media report that they were there to conduct military exercises.

Japan Military Wants China "Crisis Management" Pact

Japan's highest-ranking military officer on Friday urged an early start to a "crisis management" mechanism with China amid conflicting claims to a group of tiny East China Sea islands.

NAVCENT Commander Recognizes Journey of Hope Sailors

Commander, U.S. Naval Forces Central Command, U.S. 5th Fleet, Combined Maritime Forces, Vice Adm. John. W. Miller, recognized the accomplishments of three special-needs sailors from the Kuwaiti ship,

Finance

Asia VLCC Rates Could Could Climb Even More

Owners see rates climb by nearly $22,000 per day; Rates could peak as more tonnage comes free. Rates for very large crude carriers (VLCCs) on key Asian routes

New Players in Singapore Markets in OW's Absence

The downfall of a leading marine fuel supplier that prompted sellers to tighten credit terms in Singapore is skewing the post-OW Bunker jostle for market share

Asian Airlines Pause Before Hedging on Fuel

Oil fell to four-year low of $72 on Thursday; Airlines hope the price will slip below $70 a barrel. Airlines in Asia-Pacific are holding off from hedging their

Marine Power

DNV GL “Modification Excellence Award” for Schiffahrt

Classification society DNV GL recognised that E.R. Schiffahrt has retrofitted seven ultra large container vessels to meet the highest energy efficiency standards

Wärtsilä Integrated Solutions for Maersk's AHTS Vessels

A new series of six Anchor Handling Tug Supply vessels to be built at the Kleven Verft AS in Norway for the Danish based Maersk Supply Service A/S - part of the A.

ClassNK Approves Niigata Dual-fuel Engine Design

Classification society ClassNK has granted approval to the design of the new 28AHX-DF dual-fuel engine developed by Niigata Power Systems Co., Ltd. The new engine

Government Update

EU Regs on Ship CO2 Reporting Complicates IMO Agreement

ICS Concerned that EU will Preempt IMO CO2 Negotiations.   The global trade association for shipowners – the International Chamber of Shipping (ICS) – is disappointed

NATO Unconcerned by Russian Warships in English Channel

A squadron of Russian warships entered the English Channel on Friday but a NATO official dismissed a Russian media report that they were there to conduct military exercises.

Japan Military Wants China "Crisis Management" Pact

Japan's highest-ranking military officer on Friday urged an early start to a "crisis management" mechanism with China amid conflicting claims to a group of tiny East China Sea islands.

 
 
Maritime Contracts Maritime Security Maritime Standards Naval Architecture Offshore Oil Pipelines Port Authority Ship Repair Ship Simulators Winch
rss | archive | history | articles | privacy | terms and conditions | 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: 0.1430 sec (7 req/sec)