Tuesday, December 21, 2024

Dual Purchase of LCS Approval Looking Good

The Senate has until midnight tonight to pass a Continuing Resolution (CR) to keep the government operating. The Senate bill most likely to pass can be viewed here. See HR 3082 and the 5 Senate amendments. Note, the Senate amendment 4885 includes language in Sec. 150. "Subject to the availability of appropriations, the Secretary of the Navy may award a contract or contracts for up to 20 Littoral Combat Ships (LCS)."

If this bill passes, the Navy can buy both versions of the Littoral Combat Ship - 10 of each per the current plan.

This is very important to anyone who believes the shipbuilding industry needs to be stabilized. Right now the only surface combatants under contract are the very last few DDG-51s, DDG-1000, and the second Littoral Combat Ship from each contractor.

The Navy still has not issued new contracts for new DDG-51s. Feel free to speculate but I'll tell you, there are some noteworthy rumors that the cost for restarting DDG-51 has skyrocketed. In my opinion, that means getting fixed cost steady construction for LCS locked in sooner rather than later would be a good thing, because it will shift the focus back towards large surface combatants where it needs to be right now.

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