Navy Littoral Combat Ship (LCS) Program: Oversight Issues and Options for Congress [Updated April 13, 2007] [open pdf - 181KB]
From the Summary: "The Navy is procuring a new type of surface combatant called the Littoral Combat Ship (LCS). The LCS is a small, fast ship that uses modular 'plug-and-fight' 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 was procured in FY2005, another three were procured in FY2006, and two more 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 the Navy and Lockheed could not reach an agreement on a restructured contract for LCS-1 and LCS-3 and that the Navy consequently was terminating construction of LCS-3. A primary issue for Congress at this point is whether to approve, reject, or modify the Navy's proposed restructuring plan, and what additional actions, if any, should be taken in response to the Navy's decision to terminate construction of LCS-3. Congress has several potential options regarding the LCS program. This report will be updated as events warrant."
CRS Report for Congress, RL33741