Has the LCS project fallen behind its original schedule?

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The LCS Project is Experiencing a Minor Delay

The implementation of the mobilisation plan for the Royal Malaysian Navy’s (RMN) Littoral Combat Ship (LCS) Second Generation Patrol Vessel project has not yet reached a significant level. While the overall progress of the project shows a negative variance of 0.07 per cent, equivalent to a one-month delay from the original plan, both BNS and the RMN have provided assurances that this will not impact the final delivery timeline of the LCS ships.
Project Progress and Oversight

Despite the ongoing construction work at the Boustead Naval Shipyard Sdn Bhd (BNS), the project is currently behind its planned schedule by approximately one month. This finding stems from a working visit by the Public Accounts Committee (PAC) to BNS on October 5. To monitor progress, several committees are in place, including the Technical Committee at the project team level, the project management review (PMR) at the Ministry of Defence (Mindef) level, a Working Committee chaired by the deputy secretary-general (Development) of Mindef, and a Project Monitoring Committee (PMC) jointly chaired by the secretaries-general of Mindef and the Treasury.
Detailed Design Status and Approval Bottlenecks

The detailed design of the LCS is currently at 96 per cent completion from the construction contractor's perspective. However, only 84 per cent of this design has undergone the confirmation, verification, and approval stages by France’s Naval Group, the designated design authority. The remaining confirmation work from Naval Group is pending due to outstanding payment arrears.
Payment Arrears and Contractual Timelines

The resolution of payment arrears to the Original Equipment Manufacturer (OEM) and other relevant parties is contingent upon the signing of the Sixth Supplementary Contract (SA 6). These repayments are expected to be completed within six months after SA 6 is finalised. Mindef is tasked with ensuring that the construction contractor finalises the detailed design, including obtaining approval from Naval Group, by August 2024, as stipulated in SA 6. Payments to the OEM and other parties must align with the terms of SA 6 to prevent further construction delays.

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Has the LCS project fallen behind its original schedule?

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