Navy Using 2 Littoral-Ship Teams Blunts Risk, GAO SaysBy Tony Capaccio - Wed Dec 08 23:33:12 GMT 2010
The U.S. Navy’s proposal to buy Littoral Combat Ships from two teams instead of from a single supplier as originally planned might blunt the risk that a model won’t work, congressional auditors said.
“A second ship design provided under the dual-award strategy could provide the Navy an additional hedge” as the groups led by Lockheed Martin Corp. and by a unit of Australia’s Austal Ltd. face “much work and demonstration” ahead, the U.S. Government Accountability Office said today in a report to lawmakers.
The Navy’s experience with the first two vessels from the teams, and contracts locking in the price, should help improve the vessels’ chances of success, the GAO said without giving the strategy a full endorsement. “In the near term, cost increases are likely, but it is unknown whether increases will exceed what the Navy has budgeted for fiscal years 2010 and beyond,” the auditor said.
If backed by Congress, the Navy’s Nov. 3 proposal to acquire 20 of the shallow-water vessels would supersede the service’s 2009 plan to choose one design in a winner-take-all competition. U.S. lawmakers are considering separate measures that might win House approval for the dual-ship approach.
he Congressional Research Service estimated that under the single-model strategy, the ships would cost $480 million each. Using two designs can save at least $1 billion on the first 20 ships with possibly as much as $1.9 billion more in savings by 2016, according to the Navy.
unhappycamper comment: Wowsa. We can 'save' 'at least $1 billion on the first 20 ships'?
That's not so much if you consider the USS Freedom cost $584 million dollars and the USS Independence cost $704 million dollars. I'll bet you pennies on the dollar they cannot meet the new '$480 million each' price point.