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Industry: Email Alert RSS FeedContract for Littoral Combat Ship (LCS 4) Terminated
Sea Technology, Feb 2008
The U.S. Navy recently terminated construction of the fourth littoral combat ship (LCS 4) because the Navy and General Dynamics (Falls Church, Virginia) could not reach agreement on the terms of a modified contract.
The Navy had not yet authorized construction on LCS 4, following a series of cost overruns on LCS 2.
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The Navy intended to begin construction of LCS 4 if they could agree with General Dynamics on the terms for a fixed-price incentive agreement. The two worked closely to try to restructure the agreement for LCS 4 to more equitably balance cost and risk, but could not come to terms and conditions that were acceptable to both parties.
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