Shipbuilders may decline to bid on next LCSs

[unhappycamper]

Shipbuilders may decline to bid on next LCSs
By Christopher P. Cavas - Staff writer
Posted : Wednesday May 7, 2008 6:31:09 EDT

The Navy may find itself alone at the altar if the stringent contract conditions it’s demanding for the next Littoral Combat Ships put off the two competing shipbuilders.

Sources at Lockheed Martin and General Dynamics confirm that officials are hard at work preparing responses to the Navy’s March 31 Request for Proposal (RfP). But they say the Navy’s desire to transfer risk to the contractors may abolish any incentive to respond.

“‘No bid’ is always an option,” said one industry source.

“It is our intention to submit a proposal to the Navy that is both compliant with the government’s requirements and makes good business sense,” said Craig Quigley, a spokesman for Lockheed Martin.

General Dynamics spokesman Kendell Pease declined to comment on the negotiations, other than to say, “We’re busy reviewing the RfP.”


Rest of article at: http://www.navytimes.com/news/2008/05/defense_lcs_050608/



uhc comment: The original estimated cost for this new class of ship was $200,000,000 a pop. The two delivered ships (out of the four that were originally ordered) cost $600,000,000 a pop under a cost+ basis. LM and GD are interested in keeping any new contracts on a cost+ basis.

[Eagle_Eye]

1. The question that is begging for an answer here is who works for who?

Do the defense contractors work for the Government, or is the Government here to keep the defense contractors in business.

When we have let our ship building industry go down to the level of non existence, and there are only two companies in the country that can lay down a keel, (and they need help for Australia and Italy), we are in trouble. Lockheed and GD wink and nod to each other, and hold the Navy hostage for an extra $500 million per ship.

Our options are all unpalatable. We can just let the Navy slide and not buy new ships. We can pay the money to the defense contractors forever. Or we can pay huge sums of money up front for new shipbuilding facilities.

We are in a bad way here folks, and the contractors are NOT here to help us out.