Navy Littoral Combat Ship (LCS) Program: Background, Oversight Issues, and Options for Congress [Updated November 2, 2007] [open pdf - 204KB]
From the Summary: "The Littoral Combat Ship (LCS) is a small, fast surface combatant that is to be equipped with modular mission packages, including unmanned vehicles (UVs). The basic version of the LCS, without any mission packages, is referred to as the LCS sea frame. The first LCS (LCS-1) was procured in FY2005, another three (LCSs 2, 3, and 4) were procured in FY2006, and two more (LCSs 5 and 6) were procured in FY2007. The Navy's proposed FY2008 budget, submitted to Congress in February 2007, requested $910.5 million in procurement funding for three more LCSs. Navy plans call for procuring a total of 55 LCSs. […] On April 12, 2007, the Navy announced that it had not reached an agreement with Lockheed on a restructured contract for LCS-1 and LCS-3, and consequently was terminating construction of LCS-3. On November 1, 2007, the Navy announced that it had not reached an agreement with General Dynamics on a restructured contract for LCS-2 and LCS-4, and consequently was terminating construction of LCS-4. On May 10, 2007, it was reported that the Navy would ask Congress to increase the procurement cost cap for the fifth and sixth LCSs to $460 million each in FY2008 dollars. This report will be updated as events warrant."
CRS Report for Congress, RL33741