Wednesday, October 15, 2008

Budget for 2009: Includes 2 LCS and 1 JHSV

Logical Reasoning

The 2 LCS and 1 JHSV budgeted for 2009, Lockheed Martin should get the contract to build the 1st of those 2 new LCS. Based on how Austal-USA's LCS-2 performs in it's trials when it is finally under it's own power, the second of the 2 new LCS may go to either Austal-USA or to Lockheed Martin if LCS-2 does not perform adequately.

As for the 1 JHSV, it is expected that the Navy will award that to Bath Iron Works/Rolls-Royce or to Bollinger-Incat, which the Army has had successful experience testing, and that the Army will try to begin testing, either under individual transport contracts or with a full lease, a recently completed Austal-USA HSV similar to Austal-USA's expected JHSV design proposal.

LCS-2's actual performance should determine if Austal-USA is contracted to build any more for the U.S. -- Austal-USA's HSV Hull 616's performance under contract or lease should determine whether Austal-USA is contracted to build any more JHSV's for the U.S.
Wednesday, October 15, 2008
FY 2009 Shipbuilding

"The President signed the Duncan Hunter National Defense Authorization Act for Fiscal Year 2009 (PDF) today. The following is the shipbuilding section:

'...Additionally, the budget request contained $920.0 million for two Littoral Combat Ships (LCS) ...The agreement would authorize the budget request of $920.0 million for two LCS vessels...While these are significant milestones, we remain concerned that the Navy has not taken sufficient actions to control costs for LCS follow on vessels...'

...the Bush administration ends up building 47 ships for an average of 5.875 ships per year. By comparison, the Clinton administration averaged 5.0 per year. The really scary part looking forward, during the Bush administration the Navy has spent twice as much money for only 7 more ships. Over the last 16 years of Clinton and Bush, the Navy has build only 87 ships. Do the math, if ships last on average 30 years, we are on pace to build a fleet of between 150-177 ships. The life of the LCS is expected to only be 25 years. The reality of the last 16 years loom large the challenge of the next four. As budget resources tighten, the necessity to reach the floor of 313 ships becomes a difficult task for leadership." Posted by Galrahn of Information Dissemination

Aloha, Brad

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