CBO Testimony: Potential Costs of the Navy's 2006 Shipbuilding Plan
CONGRESSIONAL BUDGET OFFICE (U S CONGRESS) WASHINGTON DC
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Mr. Chairman, Congressman Taylor, and Members of the Subcommittee, we appreciate the opportunity to appear before you today to discuss the costs associated with the Navys new plan for a 313-ship fleet. The Congressional Budget Offices CBOs ongoing analysis of the Navy s shipbuilding program, the Navy s new report on shipbuilding over the next 30 years, and the description of the ship program in the Future Years Defense Program FYDP indicate the following B The Navy s new shipbuilding plan projects average annual costs for the 2007- 2011 FYDP of about 14.9 billion, or about 27 percent higher in real terms than the funding the Navy has received during the past six years. B CBO s estimate for shipbuilding costs through 2011 is about 10 percent higher than the Navy s, implying average annual costs through 2011 that are about 40 percent greater than those during the past six years. B Through 2035, CBO estimates, the Navy s proposed shipbuilding plan would cost about 20.5 billion annually, or about 70 percent more than the funding provided for ship construction over the past six years.
- Economics and Cost Analysis
- Marine Engineering