LCS contract delayed

The Navy confirmed this week that it will not award a $5 billion contract for 10 littoral combat ships this summer, but instead delay the decision until closer to the end of the year. Austal USA and Lockheed Martin are competing with two different designs to build the ships. At stake are at least 51 vessels. The service already has bought two ships from each competing team. When complete, the LCS fleet will number about one-sixth of the entire U.S. fleet. Austal USA employs about 1,500 people in its Mobile River shipyard. Austal officials have said the LCS contract would necessitate the hiring of another 2,000 workers. (Sources: Mobile Press-Register, 08/20/10, Defense News, 08/23/10)