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Navy DD(X), CG(X), and LCS Ship Acquisition Programs: Oversight Issues and Options for Congress

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The Navy wants to procure three new classes of surface combatants the DDX destroyer, the CGX cruiser, and a smaller surface combatant called the Littoral Combat Ship LCS. The Navy reportedly wants to procure a total of 7 DDXs, 19 CGXs, and 55 LCSs. The first two DDXs are to be procured in FY2007, with each ship being split- funded i.e., incrementally funded across FY2007 and FY2008. The total estimated cost of the two ships is 6,633 million, or an average of 3,316 million each. The two ships have received a total of 1,010 million in FY2005 and FY2006 advance procurement finding. The FY2007 budget requests an additional 2,568 million in procurement funding for the two ships. The final 3,055 million in procurement funding for the two ships is to be requested in FY2008. The Navy estimates that subsequent DDXs will cost roughly 2.5 billion each. The first CGX is to be procured in FY20l 1. The first LCS was procured in FY2005, three more were procured in FY2006, and the Navys proposed FY2007 budget requests 521 million to procure two additional ships. The estimated procurement cost of each LCS has grown to about 260 million, an increase of about 18 over the original target cost of 220 million. Section 124 of the conference report on the FY2006 defense authorization bill H.R. 181 5P.L. 109-163 limits the cost of the two FY2007 ships to 220 million per ship, or a total of 440 million. The Navys FY2007 unfunded requirements list URL, its wish list of items desired but not included in the FY2007 budget includes an additional two LCSs for an additional 520 million. The DDX, CGX, and LCS programs raise several oversight issues for Congress, including the affordability of the DDX and CGX and the total cost of the LCS program.

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  • Economics and Cost Analysis
  • Marine Engineering

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