Navy Littoral Combat Ship (LCS) Program: Background, Oversight Issues and Options for Congress [Updated October 5, 2007] [open pdf - 209KB]
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. In response to significant cost growth in the building of the first LCSs, the Navy in January 2007 placed a 90-day stop-work order on LCS-3 and in March 2007 announced a proposed plan for restructuring the LCS program. […] On April 12, 2007, the Navy announced that the Navy and Lockheed had not reached an agreement on a restructured contract for LCS-1 and LCS-3, and that the Navy consequently was terminating construction of LCS-3. 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. A primary issue for Congress at this point is whether to approve, reject, or modify the Navy's proposed restructuring plan. Congress has several potential options regarding the LCS program. This report will be updated as events warrant."
CRS Report for Congress, RL33741