The Navy has released more than $1.3 billion in funding for the construction of four Littoral Combat Ships, two each to prime contractors Lockheed Martin [LMT] and Austal USA.
The Navy announced the funding late Monday for the 13th 14th, 15th and 16th ships in the class designed for close-to-shore operations. The ships were already under contract under a block buy award for 20 of the vessels issued in 2010.
The Navy said it was providing $696.6 million to Lockheed Martin, which builds the Freedom variant with partner Marinette Marine. Austal USA, responsible for the Independence variant, was receiving $681.7 million.
Sean Stackley, the assistant secretary of the Navy for research, development and acquisition, said the service has continued to save money under the block buy while bringing stability to the shipbuilding industry at a time of fiscal uncertainty.
“One of our imperatives in dealing with this fiscal crisis is to execute our programs as effectively as possible,” Stackley said in a statement.
The four ships have yet to receive hull names.