The Navy's rendering of the newly-awarded FFG(X). (Source: US Navy)
WASHINGTON – The U.S. Navy’s cost estimate for its new Constellation-class frigate will end up being about 40 percent short of the final cost per ship, the Congressional Budget Office predicted Tuesday.
Eric Labs, the widely respected CBO analyst who produces assessments of Navy programs for lawmakers, calculated the cost of the ship would be about $1.2 billion per hull. The Navy’s estimate is $870 million per ship. The whole 10-ship contract, if executed, will cost about $12.3 billion, CBO estimated. The Navy estimates $8.7 billion.
The CBO analysis is based on a combination of factors including: the average cost of building similar ships per thousand tons; the cost of similar systems on similar ships; historical data of savings achieved across the life of a shipbuilding program; and it accounts for the fact that the growth of shipbuilding costs historically outpaces inflation in the overall economy.
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Update: Navy’s Frigate Seen Busting Goal by 40% at $1.2B (Bloomberg)
WNU Editor: You would think that the Pentagon would have some explaining to do on why their cost estimates for this new frigate are now 40% higher. But of course that is not happening. It seems their priority is to decide on what names to give these future ships .... U.S. Navy reveals name of next-generation frigate class (Defence-Blog).
from War News Updates https://ift.tt/376AG5v
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