Lockheed Martin Corp (>> Lockheed Martin Corporation) and Australia's Austal (>> Austal Limited) each build different models of the smaller, fast coastal warships. Carter said he wants the Navy to have a competition and pick just one supplier for future ships.
Work said the Pentagon decided to buy two of the ships in fiscal 2017, instead of scaling orders back to just one ship as Defense Secretary Ash Carter had ordered in a memo late last year, at the Navy's request. He said the move was meant to help ensure a smooth transition to a future competition by keeping both shipbuilders working for another year.
(Reporting by Andrea Shalal; Editing by Chizu Nomiyama)