Navy Orders 4 Lockheed, Austal Littoral Combat Ships for $1.4B

AustalLCSThe U.S. Navy has awarded approximately $1.4 billion in contract funds to Austal USA and Lockheed Martin (NYSE: LMT) for construction of four additional Littoral Combat Ships.

Contract line items for each ship cover seaframe construction, systems integration and test and systems equipment, the Defense Department said Monday.

Lockheed was awarded approximately $698.9 million to build the seventh and eighth LCS ships under contract was awarded in 2010 to build 10 steel monohull-design variants, the company said.

Austal USA said in a separate release that it will build its seventh and eighth ships for the LCS program under an estimated $684 million modification, which is part of a 10-ship contract to construct aluminum trimaran vessels.

Lockheed’s modification covers Indianapolis (LCS 17) and the unnamed LCS 19, which will be built by Fincantieri subsidiary Marinette Marine Corp. with engineering support from Gibbs & Cox.

The team has completed USS Milwaukee (LCS 5) in 2013 and is preparing it for delivery in 2015, with USS Detroit (LCS 7) to launch late this year.

Little Rock (LCS 9),  Sioux City (LCS 11) and Wichita (LCS 13) are currently under construction and the team plans to start building Billings (LCS 15) this year.

The funds awarded to Austal USA cover construction of LCS ships 18 and 20 and the company has delivered two ships to the Navy via a subcontract with General Dynamics (NYSE: GD).

USS Jackson (LCS 6) and four other ships are under various stages of construction at Austal USA’s shipyard in Mobile, Ala. and the company plans to deliver the USS Jackson to the Navy by the end of calendar year 2014 after sea trials.

USS Montgomery (LCS 8) is scheduled for launch in the fourth quarter of the company’s 2014 fiscal year.

Lockheed was awarded approximately $698.9 million

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