Cost Reduction
The Navy is pursuing every opportunity to reduce cost without compromising combat capability in the DDG 1000 class.
Parameters such as signature, manning and firepower are paramount for DDG 1000 to operate in the littorals for extended periods and to reduce operating, maintenance and support costs.
In the last three years, the Navy has implemented several steps to lower costs. The Navy has reduced the ship displacement from 18,000 tons to 14,500; lowered the gun firing rate from 12 to 10 rounds per minute; and defined a resupply concept to reduce the gun magazine size. In addition, the Navy has also implemented design decisions, such as delivering AGS to the shipbuilders in modular pieces, which will enhance producibility and drive down cost.
The Navy’s current estimate is $3.3 billion for each lead ship while follow ship costs are projected to be significantly less. Based on the current build profile, the cost estimate for the fifth ship is $2.3 billion (FY11 dollars). Congress, in the FY06 Authorization Act, set a cost cap of $2.3 billion on the fifth ship in the DDG 1000 class.
Discussions about ship costs must also consider the changing value of money over time. For example, the lead DDG 51 Arleigh Burke was purchased in 1985 for $1.2 billion, but accounting for realistic inflation in the industries that make up shipbuilding, that ship would cost $2.4 billion today. With significant improvements across the board, $3.3 billion for each lead DDG 1000 versus the $2.4 billion (FY07 $) lead DDG 51 is a good value. |
This is an official U.S. Navy
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Last Updated:
03 February, 2010
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