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Summary of an Analysis of the Navys Fiscal Year 2017 Shipbuilding Plan 1 (January 4, 2017)

handle is hein.congrec/cbo3305 and id is 1 raw text is: / / J ANUAR Y2017 Summary of An Analysis of the Navy's Fiscal Year 2017 Shipbuilding Plan The Department of Defense (DoD) submitted the Navy's 2017 shipbuilding plan, which covers fiscal years 2017 to 2046, to the Congress in July 2016.1 The average annual cost of carrying out that plan over the next 30 years- about $21 billion in 2016 dollars, the Congressional Budget Office estimates-would be one-third more than the average amount of funding that the Navy has received for shipbuilding in recent decades. The Navy's 2017 ship- building plan is similar to its 2016 plan with respect to the goal for the total inventory of battle force ships, the number and types of ships that the Navy would purchase, and the funding proposed to implement its plans. The Navy's 2017 Plan Aims to Expand the Fleet to 308 Battle Force Ships In November 2016, the fleet numbered 272 battle force ships-aircraft carriers, submarines, surface combatants, amphibious ships, combat logistics ships, and some sup- port ships. (Other support ships are not included in that number.) The Navy's goal (in military parlance, its requirement), as stated in its 2017 shipbuilding plan and reflecting its 2014 force structure assessment, was to maintain a fleet of 308 battle force ships. Toward that end, the Navy would buy a total of 254 ships over the 2017-2046 period: 209 combat ships and 45 combat logistics and support ships (see Table 1). If the Navy adhered to its current schedule for retiring ships, it would meet the goal of 308 ships under the 2017 plan by 2021, and it would be able to maintain its inventory at that 1. Department of the Navy, Report to Congress on the Annual Long-Range Plan for Construction of Naval Vesselsfor Fiscal Year 2017 (July 2016), https://news.usni.org/2016/07/12/20627. level or higher through 2028. After that, however, the fleet would fall below 308 ships. By the 2030s, the fleet would number fewer than 300 ships.2 In mid-December 2016, the Navy released a new force structure assessment, which called for building a fleet of 355 ships.' This CBO report assesses the projected out- comes under the 2017 plan against the 308-ship goal set in the 2014 force structure assessment that was in effect when the plan was written, rather than against the larger December number. The 2017 shipbuilding plan falls short of the 2014 force structure assessment's specific goals for some types of ships in some years. With the exception of small surface combatants, the shortfalls are slightly smaller than those in the plans for the previous two years, which also incor- porated a goal of 308 ships. But when compared with the 355-ship target called for by the new 2016 force structure assessment, the current plan falls short of the specific goals for most types of ships by larger amounts. 2. Although most new ships are built to replace older ships as they retire (such as the new ballistic missile submarines that are proposed for the 2020s and 2030s), the Navy sometimes builds ships to fulfill a new mission or to satisfy a specific need. For example, several years ago, the Navy canceled the DDG-1 000 destroyer program and restarted its DDG-51 destroyer line after assessing the need for different types of ships. The new Montford Point class of expeditionary transfer docks represents a new type of ship meeting a new need for the Navy. 3. Department of the Navy, Executive Summary, 2016Force Structure Assessment (PSA) (December 14, 2016), http://tinyurl.com/ zgdk5o7. Note: Unless otherwise indicated, years referred to in this document are federal fiscal years, which run from October 1 through September 30 and are designated by the calendar year in which they end.

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