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Rs 20643

Rs 20643

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Rs 20643
Rs 20643

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Published by: samlagrone on Apr 17, 2014
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04/22/2014

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Navy Ford (CVN-78) Class Aircraft Carrier Program: Background and Issues for Congress
Ronald O'Rourke
Specialist in Naval Affairs April 9, 2014
Congressional Research Service
7-5700 www.crs.gov RS20643
 
Navy Ford (CVN-78) Class Aircraft Carrier Program: Background and Issues for Congress
Congressional Research Service
Summary
CVN-78, CVN-79, and CVN-80 are the first three ships in the Navy’s new Gerald R. Ford (CVN-78) class of nuclear-powered aircraft carriers (CVNs). CVN-78 was procured in FY2008. The Navy’s proposed FY2015 budget estimates the ship’s  procurement cost at $12,887.2 million (i.e., about $12.9 billion) in then-year dollars. The ship received advance procurement funding in FY2001-FY2007 and was fully funded in FY2008-FY2011 using congressionally authorized four-year incremental funding. The Navy did not request any procurement funding for the ship in FY2012 and FY2013. To help cover cost growth on the ship, the ship received an additional $588.1 million in procurement funding in FY2014, and the Navy is requesting another $663.0 million in procurement funding for FY2015. CVN-79 was procured in FY2013. The ship received advance procurement funding in FY2007-FY2012, and the Navy plans to fully fund the ship in FY2013-FY2018 using congressionally authorized six-year incremental funding. The Navy’s proposed FY2015 budget estimates CVN-79’s procurement cost at $11,498.0 million (i.e., about $11.5 billion) in then-year dollars, and requests $1,300 million in procurement funding for the ship. CVN-80 is scheduled to be procured in FY2018. The Navy’s proposed FY2015 budget estimates the ship’s procurement cost at $13,874.2 million (i.e., about $13.9 billion) in then-year dollars. Under the Navy’s proposed FY2015 budget, the ship is to receive advance procurement funding in FY2016-FY2017 and be fully funded in FY2018-FY2023 using congressionally authorized six-year incremental funding. Oversight issues for Congress for the CVN-78 program include the following:
 
cost growth in the CVN-78 program;
 
CVN-78 program issues that were raised in a January 2014 report from the Department of Defense’s (DOD’s) Director of Operational Test and Evaluation (DOT&E); and
 
the potential for a two-ship block buy on CVN-79 and CVN-80. An additional issue relating to aircraft carriers that has been raised by the Navy’s proposed FY2015 budget concerns funding for the mid-life nuclear refueling overhaul of the aircraft carrier
George Washington
 (CVN-73).
 
Navy Ford (CVN-78) Class Aircraft Carrier Program: Background and Issues for Congress
Congressional Research Service
Contents
Introduction ...................................................................................................................................... 1
 
Background ...................................................................................................................................... 1
 
The Navy’s Aircraft Carrier Force ............................................................................................. 1
 
Statutory Requirement to Maintain Not Less Than 11 Carriers ................................................ 1
 
Origin of Requirement ........................................................................................................ 1
 
Waiver for Period Between CVN-65 and CVN-78 ............................................................. 1
 
Funding and Procuring Aircraft Carriers ................................................................................... 2
 
Some Key Terms ................................................................................................................. 2
 
Incremental Funding Authority for Aircraft Carriers .......................................................... 2
 
Aircraft Carrier Construction Industrial Base............................................................................ 3
 
Gerald R. Ford (CVN-78) Class Program ................................................................................. 3
 
CVN-78 ............................................................................................................................... 4
 
CVN-79 ............................................................................................................................... 5
 
CVN-80 ............................................................................................................................... 5
 
Program Procurement Funding ........................................................................................... 5
 
Increases in Estimated Unit Procurement Costs Since FY2008 Budget ............................. 6
 
Program Procurement Cost Cap .......................................................................................... 8
 
Issues for Congress .......................................................................................................................... 8
 
Cost Growth............................................................................................................................... 8
 
Overview ............................................................................................................................. 8
 
March 2014 GAO Report .................................................................................................... 9
 
October 2013 CBO Report ................................................................................................ 10
 
September 2013 GAO Report ........................................................................................... 12
 
June 2013 Press Report ..................................................................................................... 15
 
March 2013 Navy Report to Congress (Released May 2013) ........................................... 17
 
December 31, 2012, DOD SAR (Released May 2013) ..................................................... 18
 
May 2013 Navy Testimony ............................................................................................... 20
 
 November 2012 Press Report ............................................................................................ 22
 
March 2012 Navy Letter to Senator McCain .................................................................... 23
 
Issues Raised in January 2014 DOT&E Report ...................................................................... 28
 
Potential Two-Ship Block Buy on CVN-79 and CVN-80 ....................................................... 32
 
Legislative Activity for FY2015 .................................................................................................... 37
 
FY2015 Funding Request ........................................................................................................ 37
 
Figures
Figure 1. Navy Illustration of CVN-78 ............................................................................................ 4
 
Tables
Table 1. Procurement Funding for CVNs 78, 79, and 80 Through FY2019 .................................... 6
 
Table 2. Changes in Estimated Procurement Costs of CVNs 78, 79, and 80 ................................... 7
 

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