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Navy Littoral Combat Ship (LCS) Program: Background and Issues for Congress

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Navy Littoral Combat Ship (LCS) Program: Background and Issues for Congress Navy Littoral Combat Ship (LCS) Program: Background and Issues for Congress Ronald O'Rourke Specialist in Naval Affairs August 10, 2012 Congressional Research Service 7-5700 www.crs.gov RL33741 CRS Report for Congress Prepared for Members and Committees of Congress Navy Littoral Combat Ship (LCS) Program: Background and Issues for Congress Summary The Littoral Combat Ship (LCS) is a relatively inexpensive Navy surface combatant equipped with modular “plug-and-fight” mission packages. The Navy wants to field a force of 55 LCSs. Twelve LCSs have been funded through FY2012, and the FY2013-FY2017 Future Years Defense Plan (FYDP) calls for procuring 16 more, in annual quantities of 4-4-4-2-2. The Navy’s proposed FY2013 budget requests $1,785.0 million in procurement funding for the four LCSs requested for FY2013. The Navy’s proposed budget also requests $102.6 million in procurement funding for LCS mission modules. There are two very different LCS designs—one developed by an industry team led by Lockheed, and another developed by an industry team that was led by General Dynamics. The Lockheed design is built at the Marinette Marine shipyard at Marinette, WI; the General Dynamics design is built at the Austal USA shipyard at Mobile, AL. LCSs 1, 3, 5, and so on are Marinette Marine- built ships; LCSs 2, 4, 6, and so on are Austal-built ships. The 20 LCSs procured or scheduled for procurement in FY2010-FY2015—LCSs 5 through 24— are being acquired under a pair of 10-ship block buy contracts. Congress granted the Navy the authority for the block buy contracts in Section 150 of H.R. 3082/P.L. 111-322 of December 22, 2010, and the Navy awarded the block buy contracts to Lockheed and Austal USA on December 29, 2010. The contracts are both fixed-price incentive (FPI) block-buy contracts. The LCS program has encountered controversy from time to time over the years over various program-related issues. Some observers, citing these issues, potential future Navy operations, and potential future constraints on defense spending, have proposed truncating the number of LCSs to be procured. In response to criticisms of the LCS program, the Navy over the years has acknowledged certain problems and stated that it was taking action to correct them, disputed other arguments made against the program, and maintained its support for the program and for procuring a total of 55 LCSs. Current issues for Congress concerning the LCS program include the LCS’s prospective mission performance and cost-effectiveness, the combat survivability of the LCS, hull cracking and engine problems on LCS-1, and corrosion on LCS-2. Congressional Research Service Navy Littoral Combat Ship (LCS) Program: Background and Issues for Congress Contents Introduction...................................................................................................................................... 1 Background...................................................................................................................................... 1 The Program in General ............................................................................................................ 1 The LCS in Brief................................................................................................................. 1 Planned Procurement Quantities ......................................................................................... 2 Two LCS Designs................................................................................................................ 2 Two LCS Shipyards ............................................................................................................ 4 Mission Package Deliveries and Initial Operational Capability (IOC) Dates..................... 4 Manning and Deployment Concept..................................................................................... 5 Unit Procurement Cost Cap................................................................................................. 5 Acquisition Cost.................................................................................................................. 6 Operation and Support (O&S) Cost .................................................................................... 7 Major Program Developments................................................................................................... 8 Growth in Sea Frame Procurement Costs ........................................................................... 8 2007 Program Restructuring and Ship Cancellations.......................................................... 8 2009 Down Select Acquisition Strategy (Not Implemented).............................................. 8 2010 Dual-Award Acquisition Strategy (Implemented)...................................................... 9 Changes in Mission Module Equipment ........................................................................... 10 Controversy and Proposals to Truncate the Program .............................................................. 16 FY2013 Funding Request........................................................................................................ 17 Issues for Congress........................................................................................................................ 17 Mission Performance and Cost-Effectiveness......................................................................... 17 Changes in Mission Module Equipment ................................................................................. 22 Combat Survivability............................................................................................................... 22 Appropriateness of LCS Survivability Standard ............................................................... 22 Achieving the Survivability Standard (Shock Testing) ..................................................... 29 Hull Cracking and Engine Problems on LCS-1....................................................................... 31 Corrosion on LCS-2 ................................................................................................................ 37 Technical Risk ......................................................................................................................... 40 Sea Frame.......................................................................................................................... 40 Mission Packages .............................................................................................................. 41 Total Program Acquisition Cost .............................................................................................. 43 Separate SAR Reporting of Sea Frame and Mission Module Costs ....................................... 43 Operational Concepts .............................................................................................................. 44 Legislative Activity for FY2013.................................................................................................... 46 FY2013 Funding Request........................................................................................................ 46 FY2013 National Defense Authorization Act (H.R. 4310/S. 3254) ........................................ 47 House................................................................................................................................. 47 Senate ................................................................................................................................ 48 FY2013 DOD Appropriations Bill (H.R. 5856) ...................................................................... 51 House................................................................................................................................. 51 Senate ................................................................................................................................ 51 Congressional Research Service Navy Littoral Combat Ship (LCS) Program: Background and Issues for Congress Figures Figure 1. Lockheed LCS Design (Top) and General Dynamics LCS Design (Bottom) .................. 3 Tables Table 1. Past and Projected Annual Procurement Quantities........................................................... 2 Table 2. Construction Status of LCSs.............................................................................................. 4 Table C-1. Status of LCSs Funded in FY2005-FY2009 ................................................................ 63 Table E-1. Navy and CBO Estimates of Ship Procurement Costs Through FY2015 Under Down Select and Dual-Award Strategies.................................................................................... 85 Appendixes Appendix A. Summary of Congressional Action in FY2005-FY2012 .......................................... 52 Appendix B. Cost Growth on LCS Sea Frames in FY2007-FY2013 Budgets .............................. 54 Appendix C. 2007 Program Restructuring and Ship Cancellations............................................... 61 Appendix D. Down Select Acquisition Strategy Announced in September 2009 ......................... 64 Appendix E. Dual-Award Acquisition Strategy Announced in November 2010........................... 78 Appendix F. Navy Surface Ship Survivability Standards .............................................................. 90 Contacts Author Contact Information..........................................................................................................
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