WASHINGTON — The Naval Sea Systems Command has issued the following statement regarding a cost increase regarding the Ship-to-Shore Connector Program, designed to replace the Navy’s legacy fleet of Landing Craft, Air Cushion (LCAC). Textron Systems is the designer and builder of the new craft:
“On March 26, the U.S. Navy notified Congress of an increase in the Program Acquisition Unit Cost and the Average Procurement Unit Cost for the Ship to Shore Connector (SSC) program that exceeds the current baseline estimate, breaching the significant Nunn-McCurdy cost threshold. The breach is attributed to first in class challenges that led to increased construction costs resulting from labor and material cost growth and schedule related issues on early craft. This is not a critical Nunn-McCurdy breach that would require recertification of the program and USD A&S has been notified. The SSC program production is now stable as the first in class challenges have been resolved.
“Textron has delivered three craft and follow-on craft are in serial production. The delivery of LCACs 100 and 101 have allowed the Navy to move forward with the initial operator training pipeline and move into post-delivery test and trials at Naval Surface Warfare Center Panama City Division.
“LCAC 102 was delivered on June 3, 2021, and transited to Naval Surface Warfare Center Panama City Division, arriving June 9.
“LCACs 103-115 currently in production, show reduced overall man hours and expedited outfitting in earlier stages of construction for improved cost and schedule performance.
‘The updated acquisition program baseline is based on procuring 72 operational craft and actual serial production cost experience of the shipbuilder and its vendors.”
