General Dynamics says it has met the Pentagon's Aug. 3 deadline for submitting its bid to build Littoral Combat Ships for the Navy. Rival Lockheed Martin says its bid was submitted on July 31. The White House has budgeted for three new LCS ships, with a congressionally mandated price cap of $460 million each. The winning bidder will build two ships, while the runner-up gets one order, according to the Navy.
Soaring steel and oil prices have helped push up the cost of a warship Lockheed Martin is building for the Navy. The cost of Lockheed's Littoral combat ship is now $550 million per ship, up from the $220 million initial estimate. Design changes have also pushed the cost of the ship higher. General Dynamics is also building a Littoral combat ship.
The Navy has canceled one of two contracts for General Dynamics to develop prototype ships in competition for the larger Littoral Combat Ship contract. The winner of the Littoral Combat Ship contractor could potentially land contracts worth tens of billions of dollars. Lockheed Martin is also producing a ship to compete for the contract.
Costs from a federal ethics probe and delays in foreign surveillance aircraft contracts will wipe out Boeing's second-quarter profit, the company said. The investigation involved Boeing's improper acquisition of secret documents belonging to competitor Lockheed Martin. The delays for the aircraft program stem from computer integration problems.
The U.S. Navy has awarded Lockheed Martin a $188 million contract to build the Navy's first Littoral Combat Ship. Construction of the ship is set to begin in the first quarter of 2005 at Marinette Marine in Marinette, Wisc. The steel-hull, aluminum-superstructure design of the ship will allow it to reach sprint speeds near 50 knots.