Lockheed Martin Submits Final Littoral Combat Ship Proposal to U.S. Navy

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LCS USS Freedom. (Photo: USN)

15 September 2010, WASHINGTON, D.C. -- The Lockheed Martin [NYSE: LMT]-led industry team submitted its final proposal revision for the Littoral Combat Ship (LCS) fiscal year 2010-2014 contract to the U.S. Navy today.

Lockheed Martin is one of two industry teams competing for the contract. The Navy will award the winning team a fixed-price incentive fee contract to provide up to 10 ships as well as combat systems for five additional ships.

“The Lockheed Martin team is providing a low-risk, affordable LCS option that will meet the U.S. Navy’s needs for years to come,” said Lockheed Martin Chairman and CEO Bob Stevens. “During my attendance at last month’s presentation to the Navy, I committed the full financial, technical and programmatic strength of our Corporation to the success of this critical program.”

Prior to this competition, Lockheed Martin was awarded contracts to construct two ships for this new class. The Lockheed Martin-led team designed and constructed USS Freedom (LCS 1), which was delivered to the Navy in 2008 and successfully completed its first deployment earlier this year. USS Freedom’s design meets all requirements and has completed sea trials, helicopter landings, weapons firings, small boat launch and recovery testing. USS Freedom also recently participated in the world’s largest maritime exercise, known as Rim of the Pacific 2010, where it operated with international navies and successfully completed a series of operational exercises.

In March 2009, the Navy awarded the Lockheed Martin team a fixed-price incentive fee contract to build the third LCS. LCS 3, the future USS Fort Worth, is being built in Marinette, Wis., and recently reached the 60-percent completion mark. Construction remains on cost and on schedule for delivery to the Navy in 2012. Lessons learned from designing and building USS Freedom have resulted in improved efficiencies in Fort Worth’s construction, including a 30-percent reduction in labor hours.

Headquartered in Bethesda, Md., Lockheed Martin is a global security company that employs about 136,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. The corporation reported 2009 sales of $44.5 billion.

Lockheed Martin


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