Ohio Replacement - Program
Under the Navy’s FY2012 budget, the first Ohio replacement boat was scheduled to be procured in FY2019, and Ohio replacement boats were to enter service on a schedule that would maintain the Navy’s SSBN force at 12 boats. The Navy’s proposed FY2013 budget defers the procurement of the first Ohio replacement boat by two years, to FY2021. As a result of this deferment, the Navy’s SSBN force will drop to 11 or 10 boats for the period FY2029-FY2041.
As of 2013 the start of lead-ship construction was delayed 2 years due to fiscal constraints and was expected to occur in 2021 with delivery in 2028. The first Ohio Replacement was scheduled to begin construction in fiscal year 2021, deliver to the Navy in 2027-8, and conduct its first strategic deterrence patrol in 2031 after undergoing a rigorous testing and evaluation regime. The delay results in costs above the Navy's initial estimate due to inflation. Program officials stated that while significant reviews and demonstrations will be shifted, design and technology development will continue, including work on the CMC and "quad pack" missile tube configuration with the United Kingdom; a new X-stern aft control surface configuration for steering the submarine to improve maneuverability and maintainability; an electric drive system using fewer moving parts to help meet the submarine's stealth requirement; and a new, lower maintenance propulsion shaft.
The National Sea Based Deterrence Fund (NDSF) was created by the Carl Levin and Howard P. ‘‘Buck’’ McKeon National Defense Authorization Act for Fiscal Year 2015 (Public Law 113–291) to address a congressional determination that the recapitalization of the Ohio-class ballistic missile submarine was a national strategic imperative. The recapitalization of this strategic asset was estimated in 2015 at $95.77 billion.
Under the 2016 US Navy's budget, the Ohio Replacement Program needed $1.4 billion on research and development, the funds are due to be allocated by the US Congress. The delay in fund allocation could affect the next generation of nuclear submarines, as the construction was set to begin in 2021. The first Ohio replacement submarine was expected to cost $12.4 billion, according to the plan.
The revised, bipartisan FY2016 National Defense Authorization Act (NDAA) of November 2015 authorizes $1.4 billion for continued development of the Ohio Replacement Program by the Navy, as well as an additional $187 million for Ohio replacement reactor systems development under the Naval Reactors program under the National Nuclear Security Administration. The agreement also expands the National Sea-Based Deterrence Fund (NSBDF) to additional authorities for developing and building the submarine, including incremental funding and Economic Order Quantity (EOQ) authorities, and clarifies that reprogramming authority provided in the creation of the fund last year extends to the entire Defense Department, not just the Navy. The conference report also required the Nay to submit a report with the FY17 budget outlining the acquisition strategy to build Ohio-class replacement submarines, the potential use of the NSBDF to support the ORP, as well as additional authorities that could be provided to support the program.
Using data from the Virginia class submarine program, in October 2015 CBO estimated that the first Ohio Replacement sub-marine will cost $13.2 billion in 2015 dollars. Estimating the cost of the first submarine of a class with an entirely new design is particularly difficult because of uncertainty about how much the Navy will spend on nonrecurring engineering and detail design. All told, 12 Ohio Replacement submarines would cost $88 billion, in CBO’s 2015 estimation, or an average of $7.3 billion each—$1.1 billion more per submarine than the Navy’s estimate. That average includes the $13.2 billion estimated cost of the lead submarine and a $6.8 billion average estimated cost for the 2nd through 12th submarines. Research and development would cost between $10 billion and $15 billion, for a total program cost of $98 billion to $103 billion, CBO estimated.
Overall, the Navy expected a 22 percent improvement in the cost-to-weight relationship of the Ohio Replacement class compared with the first 12 submarines in the Virginia class. Given the history of submarine construction, however, CBO was less optimistic that the Navy will realize as large an improvement in the cost-to-weight relationship of the Ohio Replacement class compared with the Virginia class. CBO estimated a 9 percent improvement, based in part on projected savings attributable to the concurrent production of the Ohio Replacement and Virginia class submarines.
USNI News reported 06 November 2017: "Through innovative legislative authority and contracting techniques, we've already reduced cost by $80 million per hull, to bring [average procurement unit cost or APUC] down to $7.21 [billion]," Rear Adm. Michael Jabaley said at the Naval Submarine League's yearly symposium held from November 1-2. The official said the Navy would like to get the price down to less than $7 billion.
The program's total cost was estimated as of 2017 at around $100 billion, and the first vessel could be commissioned as soon as 2028.
On May 23, 2019 Huntington Ingalls Industries hosted a ceremonial first-cut-of-steel event at its Newport News Shipbuilding division to mark the start of advance construction for the Columbia-class submarine program. With the press of a button, a plasma-burning machine cut the first steel plate that will be used to build Columbia (SSBN 826), the lead ballistic missile submarine. As Newport News continues its digital transformation, the event also marked the first class of submarines that will be built using fully digital blueprints.
“Today is a historic day,” said Jason Ward, Newport News’ vice president for Columbia-class construction. “It has been a half century since Newport News Shipbuilding has constructed a ballistic submarine. Today, we celebrate the decade-plus effort spent working with Electric Boat on the design of this new class of submarine as we formally transition from design to material procurement and now to construction execution.”
Newport News is a major contractor and shipbuilding partner in the Columbia-class program and is performing advance construction activities under a contract the shipyard received from General Dynamics Electric Boat. The Columbia-class boats will replace the fleet of Ohio-class nuclear ballistic submarines. Newport News is starting its work three weeks ahead of schedule to support its advance construction efforts.
“The first cut of steel is a major construction milestone that signifies our shipyard and submarine industrial base are ready to move forward with production,” Ward said. “We have worked to engage the submarine industrial base and leveraged lessons learned from the successful Virginia-class program to building the Columbia-class submarines in the most efficient and affordable manner to provide the best value to the Navy.”
General Dynamics Electric Boat Corp., Groton, Connecticut, is awarded a $9,473,511,245 cost-plus-incentive-fee modification to previously awarded contract N00024-17-C-2117. The contract modification exercises an option for construction and test of the lead and second ships of the Columbia class SSBN 826 and SSBN 827, as well as associated design and engineering support. This modification to the integrated product and process development (IPPD) contract supports the fiscal 2021 construction start of the lead ship (SSBN 826) and advance procurement, advance construction, coordinated material buys and full construction of the follow hull (SSBN 827) in fiscal 2024. Work will be performed in Groton, Connecticut (36%); Newport News, Virginia (25%); Quonset Point, Rhode Island (17%); with other efforts performed at various sites throughout the U.S. (each less than 1%) (22%), and is expected to be completed by April 2030. Efforts within the ship include the Common Missile Compartment which is a joint U.S./United Kingdom effort. Fiscal 2021 National Sea-Based Deterrence Fund (NSBDF) funding in the amount of $545,186,307 (96%); and fiscal 2020 NSBDF funding in the amount of $19,936,251 (4%) will be obligated at the time of award and will not expire at the end of the current fiscal year. This action leverages the acquisition authorities contained in 10 U.S. Code §2218a, NSBDF.
The Naval Sea Systems Command, Washington, D.C., is the contracting activity. Construction of the 12-boat Columbia class will take place in Virginia, Rhode Island and Connecticut, with Electric Boat assembling and delivering all of the submarines. The lead boat is scheduled to be delivered to the Navy in 2027.
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