Audit Report: Cost of SSN-21 Class Submarines.

This report addresses the cost limitation on the procurement of the three submarines, the SSN-21 SSN-22, and SSN-23 submarines, that comprise the SSN-2l Seawolf class of submarines. In the National Defense Authorization Act for FY 1996, Congress imposed a cost limitation of 7.2 billion for the procurement of the three Seawolf submarines. The 7.2 billion cost limitation was based on cost estimates that the Navy provided to Congress. The cost limitation has increased to 7.4 billion because of allowable increases of 55.3 million for economic inflation escalation and 1 14.1 million for outfitting and post delivery costs. The Navy did not include 745.4 million that it had obligated during FY 1992 through 1994 for the SSN-23, SSN-24, and SSN-25 Seawolf submarines canceled ship funds that the President had canceled in January 1992. The audit was initiated as a result of congressional direction in the National Defense Authorization Act for FY 1998. The Act directed the Inspector General, DoD, to answer congressional questions on the cost limitation, and exclusions from that cost limitation, that Congress had placed on the Seawolf submarine program.