Q&A ยท 1:22:31-1:23:04

Why unwanted LCS hulls kept being commissioned

Contract structure and cancellation penalties can keep an unpopular warship program moving after confidence in the design has eroded.

Question

Why did the U.S. Navy keep building and commissioning Littoral Combat Ships despite strong criticism of the class?

Short answer

Existing contracts and substantial cancellation penalties made it difficult to stop accepting ships already ordered.

Notes

Existing contracts kept Littoral Combat Ship construction and commissioning moving. Cancellation penalties could make abandoning the orders unattractive even after the navy had lost enthusiasm for the ships. Britain's aircraft-carrier contracts provide the comparison: a government considering cancellation discovered that the termination clauses were expensive.