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

The Navy has been procuring Virginia SSN-774 class nuclear-powered attack submarines SSNs at a rate of one per year for the past several years, and a total of 12 boats have been procured through FY2010. The Navys proposed FY2011 budget increases the procurement rate to two boats per year. The eight boats to be procured in the five-year period FY2009-FY2013 boats 11 through 18 are being procured under a multiyear procurement MYP arrangement. The Navys proposed FY2011 budget requests 3,441.5 million in procurement funding to complete the procurement cost of the 13th and 14th Virginia-class boats. The FY2011 budget estimates the combined procurement cost of these two boats at 5,344.4 million, and the boats have received a total of 1,903.0 million in prior-year advance procurement AP and Economic Order Quantity EOQ funding. The Navys proposed FY2011 budget also requests 1,436.8 million in AP funding for Virginia-class boats to be procured in future years, and 254.4 million in Economic Order Quantity EOQ purchases of long-leadtime items for Virginia-class boats to be procured under the FY2009-FY2013 MYP arrangement.