Publisher's Synopsis
The Navy had been planning to procure an eventual total of 52 LCSs, but on February 24, 2014, Secretary of Defense Chuck Hagel announced that "no new contract negotiations beyond 32 ships will go forward" and that the Navy is to submit "alternative proposals to procure a capable and lethal small surface combatant, generally consistent with the capabilities of a frigate. I've directed the Navy to consider a completely new design, existing ship designs, and a modified LCS." Following Hagel's February 24, 2014, announcement, the Navy began an internal study of options for small surface combatants (SSCs) to be procured following the 32 LCSs. The Navy states that study was completed on July 31, 2014, as required. On December 10, 2014, Secretary of Defense Chuck Hagel, after reviewing the Navy's work, approved a Navy plan to procure an SSC based on an upgraded version of the two LCS designs. The upgrade includes additional equipment for air defense, surface warfare, and antisubmarine warfare, plus some other changes. The Navy estimates that the changes will increase the cost of each LCS by $60 million to $75 million. The Navy states that it is now starting to develop an acquisition strategy for procuring the 20 modified LCSs. LCSs have been procured since FY2010 under a pair of 10-ship, fixed-price incentive (FPI) block buy contracts that the Navy awarded to the two LCS builders-Lockheed and Austal USA-on December 29, 2010. Under these contracts, which cover the years FY2010-FY2015, four LCSs (numbers 21 through 24) were to be requested for procurement in FY2015. The Navy's proposed FY2015 budget, however, requests funding for the procurement of three rather than four LCSs. Hagel's February 24 announcement and the Navy's request for three rather than four LCSs in FY2015 raise several potential oversight issues for Congress, including the Navy's plan for determining which of the two LCS builders would receive one LCS in FY2015 rather than two, and the analytical basis for the actions affecting the LCS program announced by Hagel on February 24. The LCS program has been controversial due to past cost growth, design and construction issues with the lead ships built to each design, concerns over the ships' survivability (i.e., ability to withstand battle damage), and concerns over whether the ships are sufficiently armed and would be able to perform their stated missions effectively. Prior to Secretary Hagel's February 24, 2014, announcement, some observers, citing one or more of these issues, had proposed truncating the LCS program. In response to criticisms of the LCS program, the Navy has acknowledged certain problems and stated that it was taking action to correct them, and disputed other arguments made against the program.
