The Naval Sea Systems Command (NAVSEA) awarded the Austal USA and Lockheed Martin [LMT] teams separate contracts to each build one littoral combat ship (LCS), the Defense Department announced Friday.
Both contracts are under the $584 million congressional cost cap for each LCS. The Navy said specific LCS award amounts are not being made public because it considers it source selection sensitive information. The service noted it expects to release a competitive solicitation for additional LCS ships in future years.
Austal USA builds the Independence-variant LCS ships in Mobile, Ala., while the Freedom-variant is built by a team led by Lockheed Martin and Italy’s Fincantieri at Fincantieri Marinette Marine in Marinette, Wisc.
Austal’s award is a modification to a previously awarded contract exercising the option for an additional LCS. The company will perform and oversee necessary design, planning, construction, test and trials activities to support delivery of an Independence-variant LCS to the Navy, LCS-30. This will be the 15th ship Austal builds in the class.
Austal said in a statement that “the award of LCS 30 is a clear sign of the Navy’s confidence in Austal’s LCS program.”
“We’re honored to be awarded this contract in such a highly competitive environment. This further supports the Navy’s recognition of Austal as a key component in building their 355-ship fleet,” Craig Perciavalle, Austal USA president, added.
The majority (54 percent) of the contracted work will occur in Mobile, Ala. and is expected to be finished by Oct. 2023.
Austal delivered two LCS ships on schedule in 2016, and one of two so far in 2017. It delivered the future USS Omaha (LCS-12) to the Navy last month. LCS-12is the 10th LCS delivered and sixth Independence-variant (Defense Daily, Sept. 18).
Separately, the Navy awarded the Lockheed Martin-Fincantieri team a new firm-fixed-incentive firm target contract to build a separate littoral combat ship, LCS-27. This award includes associated cost-plus-fixed-fee LCS-class services and integrated data environment support.
The award noted this contract includes options to build additional LCS ships and related support services. The work will be performed in various continental U.S. locations, with 37 percent occurring in Marinette.
This ship will be the 14th Freedom-variant LCS.
“We are excited to continue our partnership with the U.S. Navy to build and deliver these capable ships to the fleet. With the Freedom-variant now in serial production, our team is increasing efficiency with each ship produced and working to maintain ship and program affordability,” Joe DePietro, vice president of small surface combatants and ship systems at Lockheed Martin, said in a statement.
Lockheed Martin and Fincantieri are in full-rate production of the Freedom-variant LCS. The team has delivered five so far, the latest last month, the future USS Little Rock (LCS-9) (Defense Daily, Sept. 29). The companies noted they have seven ships is different construction stages at the production center plus two more in long-lead production.
LCS-27 work is expected to be completed by Oct. 2023.
The Navy said the LCS-27 contract was awarded through a limited competition between Austal USA and Lockheed Martin pursuant to regulations citing only a limited number of responsible sources.