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The Cost of Seapower
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Why Has the Cost of Navy Ships Risen?
Over the past several decades, increases in acquisition costs for U.S. Navy combatants have outpaced the rate of inflation. To understand why, the authors of this book examined two principal source categories of ship cost escalation (economy-driven factors and customer-driven factors) and interviewed various shipbuilders. Based on their analysis, the authors propose some ways the Navy might reduce ship costs in the future.
Why Has the Cost of Navy Ships Risen? A Macroscopic Examination of the Trends in U.S. Naval Ship Costs Over the Past Several Decades
Over the past four decades, the growth of U.S. Navy ship costs has exceeded the rate of inflation. This cost escalation concerns many in the Navy and the government. The real growth in Navy ship costs means that ships are becoming more expensive and outstripping the Navy's ability to pay for them. Given current budget constraints, the Navy is unlikely to see an increase in its shipbuilding budget. Therefore, unless some way is found to get more out of a fixed shipbuilding budget, ship cost escalation means that the size of the Navy will inevitably shrink. In fact, by some estimates, even boosting the shipbuilding budget from $10 billion annually to $12 billion would only help the Navy achiev...
The Long-Term Costs of Naval Forces
In response to threats posed by the former Soviet Union, the Reagan Administration advocated building a 600-ship Navy. In reality, the Navy never exceeded 570 ships. As the Soviet threat declined, the Bush Administration proposed a fleet of 450 ships, including 13 aircraft carriers (12 deployed and 1 for training). Recently, the Clinton Administration has recommended that the naval fleet be reduced to 413 ships by 1994. The new Administration will not submit a long-term plan for naval or other military forces until later this year or early next year. Press reports suggest, however, that the Navy is considering a further reduction in the size of the fleet to about 330 ships, including 12 carr...
A Parametric Cost Model for Estimating Operating and Support Costs of U. S. Navy (Non-Nuclear) Surface Ships
With few effective decision-making tools to assess the affordability of major weapon systems, management of total ownership costs is continually misunderstood. Cost analysis provides a quick and reliable assessment of affordability. Because there is no standardized method for calculating reliable estimates of operating and support (O&S) costs (the principal component of total ownership cost), this thesis formulates a parametric cost model which can be used to determine the annual O&S costs of U.S. Navy (non-nuclear) surface ships based on known (or assumed) physical characteristics and manpower expectations. Source data for the cost model is obtained from the Navy Visibility and Management o...
The Future British Surface Fleet
This book addresses the composition of fleets according to defense needs and budgets. Using Britain as an example, the author analyzes the needs of modern navies and desirable fleet mixes as well as suggesting alternative approaches to problems such as quality versus quantity and ship size.
Analysis of the Navy’s Fiscal Year 2012 Shipbuilding Plan
This is an independent analysis of the Navy's latest shipbuilding plan. This study summarizes the ship inventory goals and purchases described in the Navy's FY 2012 plan and assesses their implications for the Navy's funding needs and ship inventories through 2041. The Navy currently envisions buying a total of 275 ships during the next 30 years at an average annual cost of nearly $16 billion (in 2011 dollars) for new construction alone or a little more than $17 billion for total shipbuilding. By comparison, this report estimates that the cost of the Navy¿s plan will average $18 billion per year for new construction or $20 billion per year for total shipbuilding. Charts and tables. This is a print on demand report.
