SSBN(X) Reduced Procurement Costs
The ability to understand and control future costs from a program’s inception is critical to achieving affordability requirements. The Navy has been conducting just this sort of analysis in connection with the commencement of the Ohio-class replacement. This submarine will be the bulwark of our survivable nuclear deterrent for the indefinite future as required by the Nuclear Posture Review, but at the price originally estimated, its construction would swamp the Navy’s shipbuilding budget during 2020-2030. By conducting this kind of design tradeoffs at Milestone B and trimming requirements as a result without compromising critical capability, the Navy has reduced the estimated average procurement cost by 16 percent with a goal of 27 percent. Over the next five years, the Department expects to begin new programs with acquisition costs in the FYDP of over $50 billion and totaling over $200 billion. If the forecast costs of these new programs can be scrubbed down by even a fraction of that achieved in the SSBN(X) program, billions of dollars just within the FYDP can be reallocated to more productive purposes.