The Navy Buys USS Fort Worth (LCS 3)

The Navy has purchased another Littoral Combat Ship, the USS Fort Worth (LCS 3). From the DoD Contract announcement today.

Lockheed Martin Corp., - Maritime Systems & Sensors, Baltimore, Md., is being awarded a contract for LCS FY09 Flight 0+ ship construction, class design services, configuration management services, additional crew and shore support, special studies and post delivery support. As this award represents Phase I of a competitive two-phased acquisition approach to procure FY09/FY10 LCS, with Phase II including potential award of up to three additional LCS Flight 0+ Class ships, the award amount is considered source selection information (see FAR 2.101 and 3.104) and will not be made public at this time. LCS Class ships are networked, agile, and high-speed surface combatants with versatile warfighting capabilities optimized for littoral missions. LCS is optimized for flexibility in the littorals as a system of systems that are both manned and unmanned, and mission reconfigurable. LCS focuses on three primary mission areas: Littoral Surface Warfare operations emphasizing prosecution of small boats, Littoral Anti-Submarine Warfare and Littoral Mine Countermeasures. LCS also possesses inherent capabilities to execute other missions such as: Joint Littoral Mobility; Intelligence, Surveillance, and Reconnaissance; Joint Special Operations Force support; Maritime Interdiction Operations; Homeland Defense; and Anti-Terrorism/Force Protection. Work will be performed in Marinette, Wis. (63 percent); Moorestown, N.J. (12 percent); Washington, D.C., (11 percent); Clearwater, Fla., (4 percent); Baltimore, Md., (4 percent); Arlington, Va., (3 percent); Brunswick, Ga., (2 percent); and Eagan, Minn., (1 percent), and is expected to be completed by Dec. 2012. Contract funds will not expire at the end of the current fiscal year. The Naval Sea Systems Command, Washington, D.C., is the contracting activity (N00024-09-C-2303).

Note the actual cost is not released. Chris Cavas raises a few points in Navy Times.

The contract award announced March 23 uses funds appropriated in fiscal 2009, although the contract re-uses the hull number of the 2006 ship. Such a practice is unusual, in that the hull number is also considered an account identification number for bookkeeping purposes.

Revised acquisition costs for each of the first two ships have yet to be revealed by the Navy, and discussion of the new contract costs for LCS 3 and LCS 4 won’t be revealed until after the next round of contract awards, to be conducted for the fiscal 2010 ships, according to a Navy spokesman.

“The amounts will be released when the fiscal 2010 competition is over,” said Lt. Cmdr. Victor Chen, a spokesman for the Navy’s acquisition team.

The Navy plans to ask for three more LCS ships in the 2010 budget request, with two ships going to the competitor offering the best terms.

All the new LCS ships are referred to by the Navy as “Flight 0+” ships, with minor modifications over the initial, Flight 0, ships.

This really is creative contracting by the Navy. Apparently it is very easy for the Navy to avoid the cost discussion regarding the Littoral Combat Ship, they simply don't tell anyone how much it costs. I also note there is no mention whether this is a cost plus or fixed cost contract. With a phase II contract in the mix, I wonder if it matters?

Can someone fill me in. If both Lockheed Martin and General Dynamics know they are going to build at least 2 ships, why do we expect cost savings on the third ship?

can we at least get an update by someone what a Flight 0+ Lockheed Martin LCS is? What are the changes?