SECNAV Cancels LCS 3

This just in:

Secretary of the Navy Donald C. Winter announced today that the Department of the Navy is terminating construction of the third Littoral Combat Ship (LCS 3) for convenience under the Termination clause of the contract because the Navy and Lockheed Martin could not reach agreement on the terms of a modified contract.

The Navy issued a stop-work order on construction on LCS 3 in January following a series of cost overruns on LCS 1 and projection of cost increases on LCS 3, which are being built by Lockheed Martin under a cost-plus contract.The Navy announced in March that it would consider lifting the stop-work order on LCS 3 if the Navy and Lockheed Martin could agree on the terms for a fixed price incentive agreement by mid-April.The Navy worked closely with Lockheed Martin to try to restructure the agreement for LCS-3 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 completing construction on LCS 1 under the current contract with Lockheed Martin.LCS 2 and 4 are under contract with General Dynamics, and the Navy will monitor their cost performance closely.The Navy intends to continue with the plan to assess costs and capabilities of LCS 1 and LCS 2 and transition to a single seaframe configuration in fiscal year 10 after an operational assessment and considering all relevant factors.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.

"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."

Defense news: Interceptor - Unmanned Surface Vessel Unveiled

Well, 'twas only a matter of time -- UAV's are expanding in numbers, scope and capabilities (though the FAA isn't happy about one recent test) and now comes news of the surface equivalent:



The Interceptor unmanned surface vessel (USV) is developed under cooperation between AAI, and two U.S. - Marine Robotic Vessels International (MRVI) and Sea Robotics Company (SRC). Interceptor is designed for security and public service applications such as anti-piracy patrol, harbor security and oil rig surveillance. It began sea trials in September 2006. (more...)

Plan B for LCS perhaps? Waiting to hear what the Phibian, eagle1, and a couple of others have to say...

Things That Make You Go Hmmm....

Posting on the road today from that Midwestern metropolitan center known as Omaha, or, as the residents of Elkhorn found out yesterday, Russia re-incarnate with Omaha's naked grab of the town formerly known as Elkhorn. Interesting little law in Nebraska that allows a municipality to 'borg' a neighboring town without allowing the victim township the opportunity to vote on the matter. Omaha's lawyers said "yea, a bad law but we're still going to use it" and the Soviet Nebraska Supreme Court has agreed with Omaha. Only state in the union with such a law too -- and here you thought Big Red referred to the team down at UNL...

Meanwhile, over at Lockheed-Martin, Big Navy is manifestly unhappy with progress on LCS:

NEWS RELEASES from the United States Department of Defense

No. 039-07 IMMEDIATE RELEASE January 12, 2007

Navy Issues Stop Work Order for Littoral Combat Ship 3 Announced

The Navy has issued a stop work order today to Lockheed Martin Corp. Maritime Systems & Sensors unit, Moorestown, N.J., for the construction of the third Littoral Combat Ship (LCS). This stop work order will take effect immediately and is for a period of 90 days. The stop work order was issued because of significant cost increases currently being experienced with the construction of LCS-1 and LCS-3, under construction by Lockheed Martin. "I determined that at this point in time it was critical to stop work on LCS-3 to assess the LCS program and ensure we understand the program's cost and management processes before we move forward. It is essential that we complete LCS 1 and get it to sea so we can evaluate this new ship design" said Secretary of the Navy Donald Winter.

More to come, I'm sure...

As YHS casts a wary weather eye towards the South and East at the mess that stretches up through the central region, he pauses to reflect how the weather genie once again manages to drop trou and let fly on his flight plans. More regular postings once we return to our humble abode in Occupied Territory, hopefully earlier rather than later this coming week.

- SJS

P.S. For all you OSU fan out there...