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Navy Virginia (SSN-774) Class Attack Submarine Procurement: Background and Issues for Congress

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Technical Report

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The Navy has been procuring Virginia SSN-774 class nuclear-powered attack submarines since FY1998. The two Virginia-class boats requested for procurement in FY2016 are to be the 23rd and 24th boats in the class. The 10 Virginia-class boats programmed for procurement in FY2014-FY2018 two per year for five years are being procured under a multiyear-procurement MYP contract. The Navy estimates the combined procurement cost of the two Virginia-class boats requested for procurement in FY2016 at 5,376.9 million or an average of 2,688.4 million each. The boats have received a total of 1,613.5 million in prior-year advance procurement AP funding and 416.9 million in prior-year Economic Order Quantity EOQ funding. The Navys proposed FY2016 budget requests the remaining 3,346.4 million needed to complete the boats estimated combined procurement cost. The Navys proposed FY2016 budget also requests 1,663.8 million in AP funding and 330.0 million in EOQ funding for Virginia-class boats to be procured in future fiscal years, bringing the total FY2016 funding request for the program excluding outfitting and post-delivery costs to 5,340.1 million. The Navys proposed FY2016 budget also requests 167.7 million in research and development funding for the Virginia Payload Module VPM. The funding is contained in Program Element PE 0604580N, entitled Virginia Payload Module VPM, which is line 123 in the Navys FY2016 research and development account. The Navy plans to build Virginia-class boats procured in FY2019 and subsequent years with an additional mid-body section, called the Virginia Payload Module VPM, that contains four large-diameter, vertical launch tubes that the boats would use to store and fire additional Tomahawk cruise missiles or other payloads, such as large-diameter unmanned underwater vehicles UUVs. The Navy estimates that building Virginia-class boats with the VPM might increase their unit procurement costs by about 13.

Subject Categories:

  • Submarine Engineering
  • Undersea and Antisubmarine Warfare
  • Economics and Cost Analysis

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