The Naval Sea Systems Command (NAVSEA) this week awarded two fixed-price firm target modifications to Lockheed Martin [LMT] and Austal USA for one and two FY 2018 Littoral Combat Ships (LCSs), respectively.
The Navy said it would not release the contract values because it may release a competitive solicitation for additional LCSs in FY 2019 so the specific contract dollar numbers are “considered source selection sensitive information.”
Lockheed Martin is the prime integrator for the odd-numbered Freedom-variant, built at Fincantieri’s Marinette Marine shipyard in Marinette, Wis. It won the contract for LCS-29. Austal builds the even-numbered Independence-variant LCSs at its shipyard in Mobile, Ala., and won the contract for LCS-32 and LCS-34.
The Austal LCS work will mostly occur in Mobile, (61 percent), Pittsfield, Mass (20 percent), and Cincinnati, Ohio (4 percent) while Lockheed Martin’s work will occur in Marinette (40 percent) and in various other parts of the U.S.
“These contract awards represent an important next step in delivering critical warfighting capability to the Fleet,” said Capt. Mike Taylor, LCS program manager (PMS-501) at Program Executive Office Unmanned and Small Combatants (PEO USC).
The work for both contracts is expected to be finished by September 2024. The Navy said the modifications were awarded through a limited competition between the two companies.
LCS-32 and -34 will be the 16th and 17th Independence-variant ships. Austal said winning two LCSs is a sign the Navy has confidence in its design.
“To be awarded these Independence-variant contracts in such a highly competitive environment is a great honor,” Austal USA president Craig Perciavalle, said in a statement.
The company noted the specific value of the contract remains under a congressional cost cap of $584 million per vessel.
LCS-32 is set to start construction in 2019 and Perciavalle said this award “will keep Austal busy building ships into 2023.”
Including these new contract modifications, the Navy has procured a total of 32 LCSs, its original planned total number. Ten LCSs are under contract (LCS-15, -17, and 19-26) and six more are under contract (LCS-27-30, 32, and 34).
The last Force Structure Assessment in 2016 planned for 32 LCSs before the Navy builds 20 FFG(X) future frigates, for a total of 52 small surface combatants. However, the Navy is now set to build 35 LCSs because Congress has funded additional vessels.
First it appropriated funds for three instead of the two requested ships in FY 2018, which would be a total of 32 LCSs. Then in the FY 2019 request the Navy requested one more LCS, but the final appropriations bill funded three total (Defense Daily, Sept. 14).