Cost of Littoral Combat Ship questioned.With a month to go before the Navy selects a Littoral Combat Ship The Littoral Combat Ship is the first of the U.S. Navy's next-generation surface combatants. Intended as a relatively small surface vessel for operations in the littoral region (close to shore), the LCS is smaller than the Navy's guided missile frigates, and have been compared to hull design, questions remain about the potential cost of the program. Of specific concern to lawmakers and budget experts is the cost of the mission equipment. The Navy is requesting $352 million in 2005 for LCS LCS - Language for Communicating Systems development and initial procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. . The mission modules are critical to the success of LCS. The initial phase of the program focuses on three key mission profiles: anti-submarine warfare “A/S” redirects here. For the Danish stock company form, see Aktieselskab. “A/S” redirects here. For the Norwegian stock company form, see aksjeselskap. , mine warfare The strategic, operational, and tactical use of mines and mine countermeasures. Mine warfare is divided into two basic subdivisions: the laying of mines to degrade the enemy's capabilities to wage land, air, and maritime warfare; and the countering of enemy-laid mines to permit friendly and maritime interdiction operations Maritime Interdiction Operations were operations that took place in the Persian Gulf, during Operation Southern Watch. They took place between the end of Operation Desert Storm in 1991, until the beginning of the Iraq War in 2003. . The mission modules are the sensors, weapons and off-board platforms required to execute these missions. Some experts estimate the modules could cost between $100 million and $180 million apiece. A Congressional Budget Office The Congressional Budget Office (CBO) is responsible for economic forecasting and fiscal policy analysis, scorekeeeping, cost projections, and an Annual Report on the Federal Budget. The office also underdakes special budget-related studies at the request of Congress. report from March 2003 stated that the Navy would need to purchase 70 mission modules for the 56 planned LCS hulls. An additional 14 modules (above the required 56) would cost about $2.5 billion in all, or about $50 million per LCS. "These ships could cost well in excess of $500 million," said Robert O. Work, of the Center for Strategic and Budgetary Assessments. "The only thing we know is one component: the sea frame." The Navy is asking for $2.76 billion during the next five years to develop and procure modular mission packages for LCS and other ships. Service officials, however, say that a number of factors prevent them from discussing the total cost of the LCS modules. "It's hard to define that piece right now," Rear Adm. Raymond Spicer, Navy deputy director for surface ships, said at a Capitol Hill briefing on the LCS. Spicer noted that the Navy has not decided yet the required number of mission modules for the force. "That's where the challenge lies," he said. The CBO CBO See: Collateralized Bond Obligation. estimated that the full cost for the initial LCS--including hull and modules--could be as high as $700 million. But that the succeeding 55 LCS would drop to an average of $350 million per ship. The cost for the modules could drop if the Navy were to order additional packages, said Spicer. Consolidating equipment also could drive down the cost. For example, the anti-submarine and mine warfare mission modules may be able to share key components, he said. Under the current plan, the Navy expects that the mission modules could be swapped ashore. The Navy plans to build the first LCS in 2005 and another in 2006 before ramping up production to three in 2008. Production will increase to four per year from 2009 to 2020. With the final three ships to be built in 2021, for a total fleet size of 56. |
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