LCS-2 Now +$252,000 per Ton

It feels like Groundhog Day for the Littoral Combat Ship program.

Keep in mind; we only have several more years of trial and error for these ships before they actually make a deployment. Chris Cavas has the report.

The estimated cost of the first of the Navy’s Littoral Combat Ships rose a modest $6 million over the past year, but the price tag to complete the second LCS jumped $68 million, putting the ship over the $700 million mark, Pentagon budget documents show.

The price to build, outfit and deliver the Freedom (LCS 1) now is $637 million, up from last year’s estimate of $631 million. The ship was delivered to the Navy last September and commissioned in November, but the service and shipbuilder Lockheed Martin will continue to complete the warship well into 2009, as intended.

The price tag for the Independence (LCS 2), however, is pegged by the Navy at $704 million, up from last year’s mark of $636 million. The ship is still under construction at Austal USA in Mobile, Ala., under subcontract from General Dynamics. Initial sea trials are expected to take place this summer, with delivery scheduled for later this year.

With LCS-2 now +$252,000 per ton, assuming 2784 tons, the USS Independence is more expensive per ton than any ship under construction by the US Navy, including a $2.5 billion DDG-51 or a $3.5 billion DDG-1000, and I'm overestimating the costs of both the DDG-51 and DDG-1000 with those estimates.

I don't see how $460 million price cap is in any way realistic. I also still don't see any realistic discussions of the Littoral Combat Ship from anyone inside the Navy.

With the competition competing both designs head to head for awhile, I'm curious how many of each design would need to be purchased at once to reach the $460 million cost cap per ship. I also don't see how Bob Work's suggestion to evolve the design in Blocks will in any way reduce the price of the ships, particularly when static designs are what allows one to estimate costs effectively.

This program is treading water, and as of right now is a small 4 ship program of technology demonstrators. The Navy needs a credible plan regarding the Littoral Combat Ship, because everything the Navy and the Industry is saying about this platform further erodes not only the credibility of the program, but the credibility of leadership.