Home / Contract Awards / Lockheed, Austal Awarded Navy Littoral Warship Contract Modifications; Joe North Comments

Lockheed, Austal Awarded Navy Littoral Warship Contract Modifications; Joe North Comments

Littoral-Combat-ShipAustal USA and Lockheed Martin (NYSE: LMT) have received contract modifications for each company to build two more Littoral Combat Ships for the U.S. Navy, USNI News reported Wednesday.

Megan Eckstein writes the military service awarded Lockheed approximately $362 million for the construction of one LCS and about $79 million in advance procurement funds for another unit.

“The $79 million is allowing us to procure the equipment we need… so getting the second ship awarded by Dec. 31 allows us to maintain the production schedule for the second ship, ” Joe North, Lockheed vice president of littoral ship systems, told USNI News.

Austal was awarded $691 million to construct the two additional warships, according to the report.

Both modifications fall under a pair of five-year, 10-ship block buy contracts and contain an option for an 11th LCS ship in fiscal 2016, Eckstein writes.

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