Acquisition plans for the Navy’s Littoral Combat Ship (LCS) program could fall one year and two ships behind if the Senate Appropriations Committee’s recommendations are passed by the full Congress.
The committee recommended halving the Navy’s request for two LCS ships in 2007, citing Congressional Research Service (CRS) estimates that the actual cost to buy each ship will be higher than the service’s $220 million estimate. The committee also wants to take back one of three LCS ships approved last year.
The two ships requested in the 2007 Pentagon budget represent the fifth and sixth units of the LCS type. The first ship was approved in 2005; three were added in 2006.
The Navy plans to build a total of 55 ships under the LCS program, which aims to produce small and relatively inexpensive warships with modular weapon systems.
The service requested $520.7 million for two ships in 2007 at $260 million apiece, according to the committee report that accompanied the defense appropriations bill when it was sent to the full Senate on July 20.
But CRS’s Ron O’Rourke says that Navy budget data supplied along with the 2007 request shows that each ship will actually cost about $300 million.
Navy officials have said that the increase is a result of program management costs, allowances for changes, inflation and initial operating costs.
As a result of the price increase, the Senate Appropriations Committee said in its report, “the Navy is unable to procure both the third and fourth LCS ships without the availability of additional funding. The Committee is troubled by this revelation and recommends rescinding the insufficient fiscal year 2006 funds currently allocated to the fourth LCS vessel.
“Cost growth and design changes are jeopardizing the affordability appeal of LCS,” the committee report said.
In June, the House approved the Navy’s request for two LCS ships in its version of the 2007 defense appropriations bill and added $12.6 million for research and development.
DDG-1000 At Issue The future of DDG-1000/DD(X), the Navy’s controversial $3.3 billion-per-ship destroyer program, also is at issue between House and Senate appropriators. The Navy is asking for partial funding to begin construction of the first two ships in 2007, with the remainder of the cost to be requested in 2008. But the House provides full funding for only one destroyer rather than the partial funding plan for two ships. The Senate Appropriations Committee approved the Navy request.
Full action on the defense appropriations bill might be delayed until September if the Senate doesn’t vote before beginning its August recess on July 29. Differences in the House and Senate versions then will be hammered out by negotiators.
Navy
07-28-2006, 18:42
Senate threatens LCS plans 
