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Effective competition between industry bidders to build the littoral combat ship (LCS) led the US Navy on November 4 to discuss with key Defense Committee members and their staff, as well as industry, the possibility of gaining congressional authorisation to award each bidder a 10-ship block buy.
Consideration of this option is separate from the ongoing LCS down select process (between the Lockheed Martin and Austal contenders), and if congressional approval for a dual block buy is not received, the Navy will proceed to down select in accordance with the terms of the current solicitation.
Either a down select or a dual ship block buy approach will ensure the Navy procures affordably priced ships.
“This option is good for the taxpayers because it enables us to buy more ships for the same money and allows us to lock in a lower price for all 20 ships,” secretary of the Navy Ray Mabus said.
“It’s good for the Navy because it gets us more ships faster and increases our flexibility, and it’s good for industry because it maintains and even expands jobs at two shipyards.”
Unlike the current solicitation, this option would require Congressional action to authorise two block buys by mid-December 2010.
“The Navy’s LCS acquisition strategy to down select to a single design resulted in a highly effective competition and an industry response that signals a significant potential savings in the LCS program,” Sean Stackley, assistant secretary of the Navy for research, development and acquisition, said.
“These competitive bids, coupled with the Navy’s desire to increase ship procurement rates to support operational requirements, create an opportunity to award each bidder a fixed-price, 10-ship block buy - a total of 20 ships from fiscal year 2010 to fiscal year 2015.”