Saudi Arabia is balking at the potential sale from the U.S. Navy of 4 Lockheed Martin Littoral Combat Ships (LCS) because of concerns about delivery schedules and costs, according to a report in Defense News.
One source thought the time to deliver the first ship would be around seven years, which the Saudis reportedly think is excessive. The US, sources said, is expected to come back with counteroffers. The deal for the ships is thought to cost between $3 billion – $4 billion, a source told Defense News.
Saudi Arabia is one of the largest buyers of U.S. arms, and made the largest single purchase of U.S. arms in history in 2010, when the Kingdom bought over $60 billion in aircraft, helicopters and other military equipment. One defense official told a small gathering of professionals in Washington last fall that while Saudi Arabia prefers the superior quality of U.S. arms, delivery schedules are often longer than desired. Saudi Arabia’s naval forces are primarily supplied by French equipment and ships.
Although Saudi Arabia has balked at the cost and delivery schedule for the 4 LCS ships, it is not rejecting the offer outright. The U.S. is said to be working to prepare a new offer. According to Defense News, negotiations have been underway between the US and the Saudis over the Lockheed Martin Multi-Mission Combat Ship package, which includes weapons, logistics, training and other services.
Saudi Arabia received approval to pursue the deal from the State Department in October for $11.25 billion under the Foreign Military Sales program according to an official cited by Bloomberg.
The Defense Security Cooperation Agency (DSCA) recorded a record of $46.6 billion in foreign military sales for the fiscal year of 2015. DSCA director Vice Adm. Joseph Rixey said that 2015 was the agency’s biggest year yet, outside of a 2012 boost from F-15 fighter jet sales to Saudi Arabia.
DSCA processed $34.2 billion in sales in 2014, and $27.8 in 2013.
