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

Italy Ending Med Sea Rescues

Rights groups warn of risk of more deaths; EU mission Triton will have more limited scope. Italy said on Friday it would close a sea rescue mission that has saved the lives of more than 100,

Libyan Government: Ports, Oil Fields Safe

Libyan oil ports and fields are safe and under government control, the country's interior minister said on Friday after visting the eastern Brega port. "This

Keel Laid, Fabrication Started on 2 Navy Warships

This week, General Dynamics Bath Iron Works celebrated two milestone events for the Arleigh Burke-class program. On October 30, Bath Iron Works held a keel laying

Finance

Italy Ending Med Sea Rescues

Rights groups warn of risk of more deaths; EU mission Triton will have more limited scope. Italy said on Friday it would close a sea rescue mission that has saved the lives of more than 100,

St. Lawrence Seaway Workers Extend Strike Deadline

The union that represents workers on the St. Lawrence Seaway, the waterway that links the Great Lakes and the Atlantic Ocean, has extended a strike deadline to Monday at 5 p.

Mitsubishi Exits Cruise Business; Books $357m Loss

Mitsubishi Heavy Industries, Ltd. (MHI) announced its decision to book an extraordinary loss from its cruise ship business in the company's consolidated financial

Eye on the Navy

Italy Ending Med Sea Rescues

Rights groups warn of risk of more deaths; EU mission Triton will have more limited scope. Italy said on Friday it would close a sea rescue mission that has saved the lives of more than 100,

Libyan Government: Ports, Oil Fields Safe

Libyan oil ports and fields are safe and under government control, the country's interior minister said on Friday after visting the eastern Brega port. "This

Somali Pirates free Indian Sailors after 4 Years

Somali pirates have freed seven Indian sailors detained for close to four years in exchange for an undisclosed ransom, Somali officials and a maritime monitoring group said on Friday.

Government Update

Italy Ending Med Sea Rescues

Rights groups warn of risk of more deaths; EU mission Triton will have more limited scope. Italy said on Friday it would close a sea rescue mission that has saved the lives of more than 100,

MARAD Tests Alternative Power for Ships

The Maritime Administration (MARAD) is testing state-of-the-art, environmentally efficient technology onboard the Training Ship (TS) Kennedy.   The National Defense

St. Lawrence Seaway Workers Extend Strike Deadline

The union that represents workers on the St. Lawrence Seaway, the waterway that links the Great Lakes and the Atlantic Ocean, has extended a strike deadline to Monday at 5 p.

 
 
Maritime Contracts Maritime Security Naval Architecture Navigation Offshore Oil Pipelines Pod Propulsion Ship Electronics Ship Simulators Sonar
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: 0.1681 sec (6 req/sec)