Lockheed Martin Corp and Australia’s Austal have each won contracts worth up to $564 million to build one Littoral Combat Ship (LCS) for the U.S. Navy, the U.S. Defense Department said on Thursday in its daily digest of arms deals.
Lockheed’s contract covers construction of LCS 25, another of its Freedom-variant littoral combat ships, integration and testing of selected ship systems, and equipment, according to the statement. The work is to be completed by July 2020.
Austal’s contract covers construction of LCS 26, another of its Independence-variant LCS ships, integration, testing and equipment, with work to be completed by July 2020.
The announcement said the cost of the ships could not exceed the congressional cost cap of $564 million, but gave no specifics on the actual cost since the companies are still competing for further orders.
However, Navy officials have testified in the past that the cost of the LCS ships has fallen far below the cost cap.
(Reporting by Andrea Shalal; Editing by David Gregorio and Cynthia Osterman)