U.S. Navy Shipbuilding Costs 2013 Questioned by CBO

Press Release
Thursday, July 26, 2012

The Congressional Budget Office (CBO) analyses the Navy's fiscal year 2013 shipbuilding plan.

Since 2006, CBO has performed an analysis of the Navy’s annual report on its plans for building new ships over the next 30 years. The current CBO report summarizes the ship inventory goals and purchases described in the Navy’s 2013 plan and assesses their implications for the Navy’s funding needs and ship inventories through 2042.

Salient features of the analysis follow:

The 2013 plan contains some significant changes in the Navy’s goals for shipbuilding during the next 30 years. Compared to the 2012 plan, the 2013 plan:
    •    Reduces the goal for the inventory of ships from 328 to a range of 310 to 316,
    •    Reduces the number of ships to be purchased from 275 to 268, and
    •    Buys 17 more high-end combat ships and 24 fewer less-expensive support ships.

CBO estimates that the 2013 plan will cost more than the Navy estimates

CBO’s estimate of the costs for new-ship construction over the next 30 years is 19 percent higher than the Navy’s estimate, but average annual costs vary by decade.

The Navy’s 2013 plan would fall short of meeting the Service’s inventory goal for some types of ships

The Navy’s plan would not meet the service’s goals for inventories of destroyers, attack submarines, and ballistic missile submarines:
    •    Destroyers would fall below the goal of about 90 after 2029;
    •    Attack submarines would fall below the goal of about 48 between 2022 to 2034; and
    •    Ballistic missile submarines would fall below the goal of 12 to 14 between 2029 and 2041.

The Navy’s plan would largely meet its inventory goals for aircraft carriers and amphibious ships.

 



 

Maritime Reporter September 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Navy

Mount Whitney Departs Batumi, Georgia

The U.S. 6th Fleet command and control ship USS Mount Whitney (LCC 20) departed Batumi, Georgia, Oct. 18 after completing a successful port visit. While in Batumi,

USS Constitution Not to Set Sail Until 2018

The crew of USS Constitution embarked on their final Boston Harbor underway demonstration aboard Old Ironsides this year, Oct. 17. Constitution set out into

US Navy to Christen Littoral Combat Ship Detroit

The Navy will christen littoral combat ship (LCS) Detroit, on Oct. 18 during a ceremony at Marinette Marine Corporation shipyard in Marinette, Wisconsin. Secretary of the Navy Ray Mabus,

Finance

Maduro Says Venezuela's 2015 Budget to Put Oil at $60

Venezuela's 2015 budget will be based on a target oil price of $60 dollars per barrel, President Nicolas Maduro said on Friday night, but he repeated expectations that prices will recover.

No Merger of Yara & CF Industrie

Yara International ASA and CF Industries have terminated their discussions regarding a potential merger of equals transaction. "This has been a constructive process,

Hurricane Ana Heads towards Hawaii

Tropical Storm Ana strengthened into a hurricane on Friday and was moving in the direction of Hawaii but was not expected to make a direct hit on the islands, the U.

Eye on the Navy

Mount Whitney Departs Batumi, Georgia

The U.S. 6th Fleet command and control ship USS Mount Whitney (LCC 20) departed Batumi, Georgia, Oct. 18 after completing a successful port visit. While in Batumi,

USS Constitution Not to Set Sail Until 2018

The crew of USS Constitution embarked on their final Boston Harbor underway demonstration aboard Old Ironsides this year, Oct. 17. Constitution set out into

US Navy to Christen Littoral Combat Ship Detroit

The Navy will christen littoral combat ship (LCS) Detroit, on Oct. 18 during a ceremony at Marinette Marine Corporation shipyard in Marinette, Wisconsin. Secretary of the Navy Ray Mabus,

Government Update

Shadrin is D.G. of Gazprom Investholding

On October 13 the Gazprom leadership acceded to Alisher Usmanov's request for releasing him from his position as Director General of Gazprom Investholding. At the meeting Alexey Miller,

ITIC Measures against Ebola

The International Transport Intermediaries Club (ITIC) has issued the following general advice related to the outbreak of Ebola. Vessels that have recently

Venezuela's PDVSA Puts Six Tankers Up for Sale

Venezuelan state oil company PDVSA said on Friday it is selling four crude tankers and two liquid petroleum gas (LPG) tankers that are currently inactive, amid a broader plan to modernize its fleet.

 
 
Maritime Careers / Shipboard Positions Maritime Contracts Maritime Security Maritime Standards Offshore Oil Port Authority Ship Repair Ship Simulators Shipbuilding / Vessel Construction Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.2648 sec (4 req/sec)