U.S. Navy Awards Lockheed Martin Team Contract to Construct up to 10 Littoral Combat Ships.
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The U.S. Navy has awarded a Lockheed Martin-led industry team a fixed-price-incentive-fee contract to construct up to 10 Littoral Combat Ships (LCS).
The first of the 10 ships will be acquired in 2010, at a contract value of $437 million, and the rest via options through 2015. If all options are exercised, the total value of the ship construction portion of the contract will reach approximately $3.6 billion.
“The Lockheed Martin team’s Littoral Combat Ship is designed to confront rapidly changing global threats while providing a cost-effective solution in an era of tight budgets,” said Lockheed Martin Chairman and CEO Bob Stevens. “This team’s strong performance will enable the Navy to deploy a class of affordable, multi-mission combatants to address the nation’s needs for decades to come.”
“The LCS is uniquely designed to win against 21st century threats in coastal waters posed by increasingly capable submarines, mines and swarming small craft,” said Chief of Naval Operations Adm. Gary Roughead. “Both designs provide the capabilities our Navy needs, and each offers unique features that will provide fleet commanders with a high level of flexibility in employing these ships.”
Prior to this competition, Lockheed Martin was awarded contracts to construct two ships for this new class. The Lockheed Martin-led team designed and constructed USS Freedom (LCS 1), which was delivered to the Navy in 2008 and completed its first deployment to the U.S. Southern and U.S. Pacific Command areas of responsibility earlier this year. Throughout its deployment, the ship and crew conducted four drug interdictions and seized more than five tons of cocaine. USS Freedom also participated in the world’s largest maritime exercise, known as Rim of the Pacific 2010, where it interacted with international navies from 13 nations.
At the same time, the Lockheed Martin team is constructing LCS 3, Fort Worth, and construction remains on cost and on schedule. The program is more than 80 percent complete and the ship was recently christened and launched – a milestone reached in just 20 months since the contract award.
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