The Navy Friday awarded General Dynamics [GD]-Bath Iron Works a fixed price contract to construct one Flight 0+ Littoral Combat Ship (LCS)-named Coronado and designated LCS-4, according to the Navy.
The Coronado will be built at Austal USA shipyard in Mobile, Ala.
The construction contract’s value is considered source-selection sensitive information because the price of the FY ’09 ship is linked to the ongoing competitive solicitation for FY ’10 ships, the Navy said.
Coronado is expected to cost less than Independence (LCS-2). The cost savings are due to a stable design, readiness of production facilities, an experienced build team in place and a fixed-price contract.
On March 23, the Navy awarded Lockheed Martin [LMT] a similar contract for Fort Worth (LCS-3), the first contract award for the program since cancellation of LCS-3 in 2007 (Defense Daily, March 24).
“We are conducting a competition for three additional seaframes in FY ’10. All FY ’09 and FY ’10 ships will be fixed-price type contracts,” Lt. Clayton Doss, a Navy spokesman, said.
The current Flight 0+ phase of the LCS program includes ships procured during FY ’09 and FY ’10 and will incorporate the existing designs from the incumbent industry teams along with all approved Engineering Change Proposals, improved production techniques and material improvements discovered as a result of the construction and testing of LCS-1 and -2, Doss said.
“The design for both ships is mature and we are incorporating revisions to specific areas based on the lessons learned from the construction of the initial ships, proposed production improvements and acceptance inspections,” Doss added. “Those revisions will be in place for the start of construction of the FY ’09 ships. Affordability is a critical objective for the LCS program. Navy and LCS industry teams are working to reduce cost, achieve steady production, and improve execution. We remain committed to effective cost control and have modified contracting strategies and management practices to provide program stability.”
The Navy needs 55 LCS to fill urgent warfighting gaps, Doss noted.
“LCS will provide capability in sea mine localization, clearance and neutralization; defense against swarming small boats equipped with anti-ship cruise missiles; and finding and neutralizing quiet diesel submarines in noisy environments,” he said. “These capabilities are required now to establish and maintain U.S. Navy dominance in the littorals, sea lines of communication and choke points around the world.”
Lockheed Martin delivered the USS Freedom (LCS-1) to the Navy on Sept. 18, 2008 and the ship was commissioned on Nov. 8, 2008. LCS-1 is currently conducting post- delivery tests and trials off the East Coast.
Independence (LCS-2), built by General Dynamics with Austal USA shipyard, was christened on Oct. 4, 2008 and is expected to deliver in September 2009, with initial builders trials and acceptance trials to complete prior to ship delivery.
The current Flight 0+ phase of the LCS program includes ships procured during FY ’09 and FY ’10, and will incorporate the existing designs from the incumbent industry teams along with all approved Engineering Change Proposals, improved production techniques and material improvements discovered as a result of the construction and testing of LCS-1 and -2, Doss said. Acquisition strategies for FY ’11 and outyear ships are under review, he added.
“The Navy’s strategy will be guided by cost and performance of the respective designs, as well as by options for sustaining competition throughout the life of the program,” Doss said. “The Navy continues to look for opportunities to reduce total ownership costs through commonality, reductions, or consolidations based on return-on-investment analysis.”