The U.S. Navy has ordered the builder of its Landing Craft Utility 1700 program to stop work and terminate the contract, Louisiana-based small business Swiftships reported, after laying off nearly 100 workers related to the program.
Swiftships won the LCU competition in March 2018, receiving contracts worth $18 million, $26.7 million, and $50.1 million for the construction of these craft.
Alabama-based Austal USA was awarded a new LCU contract in September 2023, calling for building three craft for $91.5 million, with options for another nine.
The Navy raised the possibility of terminating the program in November 2023, and officially terminated the contract with Swiftships on Feb. 20, 2023.
Swiftships faced challenges as the Navy and Swiftships did not agree on the final design, delays in settling adjustments, and unexpected design changes that led to construction delays.
Lawmakers raised concerns about work being taken from smaller yards and awarded to Austal USA, prompting a letter to the secretaries of the Navy and the Department of Homeland Security.
