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Investigating Outfitting Density as a Cost Driver in Submarine Construction

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Technical Report

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Naval Postgraduate School Monterey United States

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Through the Naval Surface Warfare Center NSWC, the National Shipbuilding Research Program NSRP completed a study in 1992 where the NSRP identified the top-level parameters that have an effect on the cost of naval shipbuilding. These parameters, identified in the study Evaluating the Producibility of Ship Design Alternatives, are arrangements, simplicity, material, standardization, and fabrication requirements. Since 2011, the Budget Control Act has created a climate wherein cost reductions dominate the program managers decision-making process. Consequently, it is important for submarine program managers to understand the limitations of submarine cost construction estimates. In Density as a Cost Driver in Naval Submarine Design and Procurement, a 2008 Naval Postgraduate School thesis, Benjamin P. Grant suggests the potential of applying a modular outfitting density factor into the submarine cost estimating process. This thesis investigates the arrangement aspect of the NSRP study using outfitting density, how tightly the submarines components are installed within a determined volume, and the correlation on production man-hours used to construct the submarine. The results of this study evaluate outfitting density and construction costs of historical submarines and find a positive correlation to aid cost estimators in determining if an outfitting density-adjusted cost estimating relationship CER is applicable for preparing submarine construction cost estimates.

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