WASHINGTON — The U.S. Navy is suffering from major financial and operational problems with its Littoral Combat Ships, mainly related to Freedom-class vessels. A recent report from the Navy, which was obtained by Breaking Defense, pegged the cost to repair defective combining gear on those vessels at between $8 million and $10 million per ship. That repair bill is being split evenly between the Navy and prime contractor Lockheed Martin.
It could cost anywhere from $56 million to $70 million to fix the Freedom-class LCS. The figures are based on ships that are being delivered with the fix already applied and the earliest LCS that have yet to get approval for the repairs. The Combining gear—a critical component that links the ship’s diesel engines with gas turbines—was found to have problems late in 2020, which limited the ships’ speed under certain conditions. This issue has not affected the Independence-class ships made by Austal USA, only the Freedom-class LCS.
According to the Navy’s report to Congress, which was signed by acting acquisition executive Frederick Stefany, the following status applies to each of the Freedom-class vessels. Fixes have already been made to LCS-19, 21, and 23, with changes included in the deliveries of LCS-25, 27, 29, and 31. LCS-11, 13, 15, and 17 are either in or will soon begin repair status. It is also eyeing plans for including the combining gear fix on ships slated for decommissioning in FY23, to include LCS-5, LCS-7, and LCS-9.
Lockheed Martin said it is working on cost apportionment, per provisions in the contracts for delivered ships, according to lawmakers. The Navy also updated its current schedule regarding the LCS lethality and survivability program, which will install common upgrades to both variants of the ship, including a Combat Management System; Gun Weapon System; Electronic Warfare; Decoy Launching System; and improved data link capability.
Those ships set for decommissioning include Freedom-class ships, specifically the USS Sioux City (LCS-11). The Siouxland Chamber of Commerce indicates that the USS Sioux City is set to be commissioned on August 14, 2023, at Naval Station Mayport, Florida. That is less than five years since it hit the water. The USS Sioux City had problems with its engine cooling system detected in January—hardly the first problem it has faced in its short service life, much like other LCSs.
The Navy’s LCS program has had issues with high operating costs and reliability problems. Minimal manning, which initially had as few as 32 sailors and eight officers onboard the ship, drove costs higher. Returning some maintenance to the hands of sailors, rather than having it performed by contractors, is an avenue that could help the Navy reduce the vessel’s operational costs. It currently runs around $70 million annually to operate a littoral combat ship, though Navy officials dispute that figure, saying it’s closer to $50 million.
Chief of Naval Operations Adm. Michael Gilday acknowledged the pricey cost of operating the ships but highlighted the shift that needs to occur from a contractor-centric maintenance model to a more sailor-centric one. That may require more sailors, he said but could garner significant cost savings. The Navy is also righting reliability issues—notably with the combining gear on the Freedom-class LCS—while long-delayed anti-submarine warfare and mine warfare mission packages are on course to deliver in 2022.
While this process is underway, some analysts say that the Navy should forward-base the ships at locations like Sasebo, Japan, Bahrain, and Mayport, Florida. This would, of course, center maintenance infrastructure and help drive down operational costs. Others say it might be time to retire some of the early LCS to free up resources for projects of greater value.
Ultimately, the Navy must ensure that the United States receives value for money from the LCS program while at the same time solving the overwhelming financial and operational challenges facing these ships since their commissioning.