About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

1 The Cost of the Navy's New Frigate 1 (October 13, 2020)

handle is hein.congrec/cbocnavy0001 and id is 1 raw text is: OCTOBER 2020 The Cost of the Navy's New Frigate On April 30, 2020, the Navy awarded Fincantieri Marinette Marine a contract to build the Navy's new sur- face combatant, a guided missile frigate long designated as FFG(X).1 The contract guarantees that Fincantieri will build the lead ship (the first ship designed for a class) and gives the Navy options to build as many as nine addi- tional ships. In this report, the Congressional Budget Office examines the potential costs if the Navy exercises all of those options. - CBO estimates the cost of the 10 FFG(X) ships would be $12.3 billion in 2020 (inflation-adjusted) dollars, about $1.2 billion per ship, on the basis of its own weight-based cost model. That amount is 40 percent more than the Navy's estimate. The Navy estimates that the 10 ships would cost $8.7 billion in 2020 dollars, an average of $870 million per ship. If the Navy's estimate turns out to be accurate, the FFG(X) would be the least expensive surface combatant program of the past 50 years (measured in cost per thousand tons when the ship is mostly empty), even in comparison to much less capable ships. 1. Navy Secretary Kenneth Braithwaite announced on October 7, 2020, that the first FFG(X) would be named USS Constellation and carry the designation FFG-62. Several factors support the Navy's estimate: - The FFG(X) is based on a design that has been in production for many years. - Little if any new technology is being developed for it. The contractor is an experienced builder of small surface combatants. An independent estimate within the Department of Defense (DoD) was lower than the Navy's estimate. Other factors suggest the Navy's estimate is too low: - The costs of all surface combatants since 1970, as measured per thousand tons, were higher. Historically the Navy has almost always underestimated the cost of the lead ship, and a more expensive lead ship generally results in higher costs for the follow-on ships. - Even when major parts of the ship's estimated cost are known, as they were for the Arleigh Burke destroyer, costs have turned out to be higher than initially estimated. Compared with the design on which it is based, the FFG(X) will be more densely built and will have somewhat more complex weapon systems. Notes: All years referred to in this report are federal fiscal years, which run from October 1 to September 30 and are designated by the calendar year in which they end. Unless this report indicates otherwise, all costs are expressed in 2020 dollars. Numbers in the text, tables, and figures may not add up to totals because of rounding.

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most