US Navy unhappy with LCS bids, wants cost cap raised

The U.S. Navy is unhappy with the bids submitted by Lockheed Martin Corp and General Dynamics Corp for three more shore-hugging warships and will ask both companies to go back and provide more information, said sources briefed about the Navy's plans.

At the same time, the Navy also is talking with lawmakers about modifying a $460 million cost cap imposed by Congress for new Littoral Combat Ships ships purchased in fiscal 2008 or later, said the sources, who asked not to be identified.

Some Navy officials have suggested in the past that the cap should be raised to as high as $560 million, said one congressional aide, who asked not to be named.

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