LCS4 Contract terminated

[sfga6970]

IMMEDIATE RELEASE No. 1269-07
November 01, 2007

Navy Terminates Littoral Combat Ship (LCS 4) Contract

Secretary of the Navy Donald C. Winter and Chief of Naval Operations Adm. Gary Roughead announced today that the Department of the Navy is terminating construction of the fourth littoral combat ship (LCS 4) for convenience under the termination clause of the contract because the Navy and General Dynamics could not reach agreement on the terms of a modified contract.

The Navy had not yet authorized construction on LCS 4, following a series of cost overruns on LCS 2. The Navy intended to begin construction of LCS 4 if the Navy and General Dynamics could agree on the terms for a fixed-price incentive agreement. The Navy worked closely with General Dynamics to try to restructure the agreement for LCS 4 to more equitably balance cost and risk, but could not come to terms and conditions that were acceptable to both parties.

The Navy remains committed to the LCS program. "LCS continues to be a critical warfighting requirement for our Navy to maintain dominance in the littorals and strategic choke points around the world," said Winter. "While this is a difficult decision, we recognize that active oversight and strict cost controls in the early years are necessary to ensuring we can deliver these ships to the fleet over the long term."

"I am absolutely committed to the Littoral Combat Ship," said Roughead. "We need this ship. It is very important that our acquisition efforts produce the right littoral combat ship capability to the fleet at the right cost."




U.S. Department of Defense
Office of the Assistant Secretary of Defense (Public Affairs)

On the Web: http://www.defenselink.mil/Releases

[sabadgeman]

Interesting. Are there other manufacturers in the USA who can complete the contract or will this be outsourced to China as well I wonder?

[sfga6970]

There are several other shipyards in the US that can compete for the project so I believe the Navy can work it out. I doubt that it will be outsourced because of the classified technology and electronics involved in the construction of the ship. We don't want the "bad guys" to know exactly what it can or can't do.

[sabadgeman]

Meant tongue in cheek lol. China has made huge advances and the west needs to watch em like a hawk literally and figuratively as if they think the doves rule then they will chance their arm!