Lockheed, Austal Teams to Receive Littoral Ship Contracts...

Lockheed, Austal Teams to Receive Littoral Ship Contracts Today
By Tony Capaccio - Dec 30, 2010 6:01 AM ET


The U.S. Navy plans to award multibillion-dollar contracts today for construction of as many as 10 Littoral Combat Ships to each of two teams led by Lockheed Martin Corp. and Austal Ltd., said three industry officials familiar with the matter.

Congress approved the Navys plans last week to buy ships from each of the two teams under a dual-design approach, rather than choosing just one supplier as announced in September. The bids submitted averaged $440 million per ship, including construction and potential changes, Navy officials told the Senate Armed Services Committee in Dec. 14 testimony.

Lockheed, based in Bethesda, Maryland, and Marinette Marine Corp. of Marinette, Wisconsin, are working together on one model, while the other is being developed by Mobile, Alabama- based U.S. subsidiary of Australias Austal Ltd. and General Dynamics Corp. General Dynamics is providing combat systems designed at its Pittsfield, Massachusetts, facility for the Austal vessel.

The awards will be disclosed by the Pentagon after 5 p.m. Washington time, said the officials, who requested anonymity because the formal announcement hasnt yet been made. Captain Cate Mueller, a Navy spokeswoman, declined to comment on the timing.

Littoral Combat Ships are designed to operate closer to coastlines than existing surface vessels, such as destroyers, in missions such as clearing mines, hunting submarines and providing humanitarian relief. The Navy projects buying 55 ships under the program.

To contact the reporter on this story: Tony Capaccio in Washington at [email protected]