USMC Landing Craft Case Study

Abstract

This case study is written to produce an active learning environment to increase the capability of acquisition/program management professionals and senior leaders regarding program planning, decision-making, and affordability. The U.S. Marine Corps (USMC) Landing Ship Medium (LSM) program is a USMC priority acquisition program originating from USMC Force Design 2030 organizational changes and managed within the Naval Sea Systems Command (NAVSEA) Program Executive Office Ships acquisition portfolio. The USMC LSM procurement objective is 35 ships, and the initial cost estimate for each ship was between $100 million and $150 million. The U.S. Navy (USN) has expressed concern over the LSM’s limited survivability requirements. To meet the USN’s more stringent survivability requirements, the LSM cost would increase to more than $350 million per ship and threaten the program’s affordability within the USN’s shipbuilding budget. Moving forward, the USMC faces challenges addressing the best option to solve the medium-size amphibious ship capability gap as well as determining the optimal acquisition pathway and contracting strategy. The program must balance the following in determining the path forward: performance and security requirements; affordability/cost constraints; schedule need dates; program, technical, and manufacturing risks; and industrial base challenges.