The Department of Defense has awarded a multi-million contract to fund two more Littoral Combat Ships from Austal USA's Mobile operations. The announcement, which comes as the Navy is weighing the future of the ship, is evidence of the vital role the vessel plays in the Navy's future, according to Sen. Jeff Sessions.
The Pentagon announced this week it was awarding contracts worth a total of $1.4 billion to purchase two more LCSs from Austal Ltd. and the same number from Lockheed Martin Corp. Austal's portion of the contract is worth $684 million and will cover the construction of two more of its trimaran aluminum-design ships, known as the Independence variant. Lockheed's contract is worth $699 million for a pair of the steel monohull design, or Freedom variant.
The Austal vessels, LCS 18 and LCS 20, will be the seventh and eighth vessels to be built by Austal as prime contractor under a 10 vessel, $3.5 billion Navy contract.
Austal Chief Executive Officer Andrew Bellamy said funding for the additional ships secured construction work at the shipyard through to 2019.
"Our knowledge base in designing and constructing these revolutionary ships continues to grow as the LCS program matures, enabling better program outcomes for the U.S. Navy, and improved margins and returns for shareholders," Bellamy said in a written statement.
Sessions said the contract is "excellent news" for Mobile's Austal operations.
"I am proud of the workforce at the Mobile shipyard and I know these tremendous ships will serve their crews well. The LCS is an integral part of the Navy's future and I, along with a coalition of lawmakers, will continue making the case that the Department of Defense must not abandon the Navy's 52 ship requirement."
Navy weighs cutting LCS buy
The contract comes as the Pentagon's 2015 budget includes cutting the total number of LCS sought by the Navy from 52 to 32. As part of that plan, Secretary of Defense Chuck Hagel asked the Navy to submit alternative proposals for a new small surface combatant that have capabilities consistent with that of a frigate. Among those considerations would be production of a completely new design, existing ship designs or modified LCSs.
The Navy's original plan called for the Austal facility to build 12 LCSs, with two ships being built per year.
Austal has five Littoral Combat Ships under various stages of construction at its Mobile shipyards, including the USS Jackson, or LCS 6, Austal's first as prime contractor. It follows delivery of two prior LCSs through a subcontract with General Dynamics. LCS 6 was launched in December 2013 and is preparing for sea trials before delivery by the end of this year. USS Montgomery, or LCS 8, is set to be launched by the end of the year.
Sessions and other Alabama lawmakers have vowed to fight against cuts to the LCS program.
Chief of Naval Operations Admiral Jonathan Greenert said this week he would set up a task force to examine the LCS issue with preliminary recommendations set for July.
U.S., Japan team on version of LCS
As the U.S. weighs the future of the LCS, Japan announced it will team with the U.S. to develop a version of LCS that has the capability to carry helicopters.
Reports on the project are preliminary but it appears the ship would likely be a lighter variant of the LCS. The current LCS weighs about 3,000 tons and is designed primarily for mission in shallow coastal waters.
The new vessel is designed to give Japan the ability to quickly intervene during incursions by Chinese vessels in the East China Sea. End of Article
ASB Price at posting:
87.5¢ Sentiment: Hold Disclosure: Held
(20min delay)
