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

The Navy is procuring a new type of surface combatant called the Littoral Combat Ship LCS. The LCS is a small, fast, relatively inexpensive combat ship that is to be equipped with modular plug-and-fight mission packages. The basic version of the LCS, without any mission packages, is referred to as the LCS sea frame. The Navy wants to procure a total of 55 LCSs. The Navy substantially restructured the LCS program in 2007 in response to significant cost growth and construction delays in the program. The first ship in the program--LCS-1--was commissioned into service on November 8, 2008. A second--LCS-2--is to be delivered to the Navy later this year. Two more LCSs were funded in FY2009 at a cost of 1,020 million and are now under construction. The Navys proposed FY2010 budget requests 1,380 million for the procurement of three more LCSs. This figure equates to 460 million per ship--the unit procurement cost cap for the LCS program, which applies to LCSs procured in FY2010 and subsequent years. The Navys proposed FY2010 budget also requests 136.7 million for the procurement of LCS mission modules, and 360.5 million in research and development funding for the LCS program. The 360.5 million includes 75.5 million to cover cost growth on the construction of LCSs 1 and 2, which were procured through the Navys research and development account. The issue for Congress is whether to approve, reject, or modify the Navys plans for the LCS program.