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

Navy

East and South China Sea Disputes Need Creative Diplomacy

China and the United States appear headed for a damaging confrontation over the extent of China's territorial claims in the South and East China Seas. Now that

Darwin, Australia Scene of KAKADU Exercise Planning

Over 1,200 military personnel from the Asia Pacific and Indian Ocean regions have completed collaborative, tactical warfare planning during the first week of the

Navy Autonomous Underwater Vehicle Delivery Milestone

Commander, Submarine Development Squadron 5 (CSDS 5), Detachment UUV, informs of the delivery of Large Training Vehicle 38 (LTV 38), an unmanned undersea vehicle (UUV),

Finance

Bollore First Half Boosted by Transport, Advertising Unit

French industrial group Bollore said first-half operating income rose 11 percent to 314 million euro because of strength at its transport business and advertising agency Havas,

CMA CGM Continues Expansion, Confirms Profits

The Board of Directors of CMA CGM Group, the world’s third largest container shipping company, met under the chairmanship of Jacques R. Saadé, Chairman and Chief Executive Officer,

Odfjell Drilling in Tighter 2Q North Sea Market

Odfjell Drilling reports second quarter 2014 financial results showing a profit of US$29-million. Profit & loss Q2 2014 Operating revenue for Q2 2014 was USD 272 million (USD 289 million),

Eye on the Navy

East and South China Sea Disputes Need Creative Diplomacy

China and the United States appear headed for a damaging confrontation over the extent of China's territorial claims in the South and East China Seas. Now that

HMS Illustrious Decommissioned

HMS Illustrious – the last of the Royal Navy’s Invincible-class aircraft carriers – was decommissioned at Portsmouth Naval Base today, marking the end of her 32-year career.

HMS Prince of Wales Hull Departs for Rosyth

A huge section of hull for HMS Prince of Wales, the second Queen Elizabeth Class aircraft carrier, has today begun its delivery voyage from HM Naval Base Portsmouth

Government Update

East and South China Sea Disputes Need Creative Diplomacy

China and the United States appear headed for a damaging confrontation over the extent of China's territorial claims in the South and East China Seas. Now that

Iraqi Kurdistan Oil Shipments Reach 8.8m Barrels

Iraqi Kurdistan has shipped 8.8 million barrels of oil from the Turkish port of Ceyhan since May, Turkish Energy Minister Taner Yildiz said, as the autonomous region

British WWl Warship Refurbishment Project

Northern Ireland Office Minister, Dr Andrew Murrison MP, visited the historic HMS Caroline in Belfast’s Titanic Quarter as restoration grants are received, informs the UK Government.

 
 
Maritime Contracts Maritime Security Maritime Standards Navigation Offshore Oil Pipelines Pod Propulsion Ship Electronics Ship Repair 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: 0.1253 sec (8 req/sec)