Thursday, April 12, 2007

FLASH - LCS-3 cancelled - FLASH

SECNAV Winter has killed LCS-3 and all other LMT LCS.
The Navy has terminated its contract for the third Littoral Combat Ship because it could not come to terms with builder Lockheed Martin on a modified contract, officials announced Thursday afternoon.

In January the Navy issued a “work-stop” order on LCS 3, as it is known, after a series of steep cost overruns on the first and third ships in the class. The top brass tried to negotiate new terms with Lockheed to control costs, but talks ultimately stalled, said Navy Secretary Donald C. 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,” he said in a statement.

The other two ships in the class, LCS 2 and 4, are a drastically different triple-hull design built by General Dynamics, and are not affected by Winter’s decision.
“General Dynamics’ ships will continue on a cost-plus basis as long as its costs remain defined and manageable. If the cost performance becomes unacceptable, then General Dynamics will be subject to similar restructuring requirements,” the Navy announcement said.
Shipmates, no shocker for you. Took a lot of grief for the CDR Salamander position - but there is is.

SECNAV: Bravo Zulu.

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