Cost Estimation Lessons Learned for Future Submarine Acquisition Programs

Abstract

The passage and signing of the Weapons Systems Reform Act of 2009 indicated the concern of the President and Congress that Major Defense Acquisition Programs (MDAPs) continue to experience cost problems. One of the most significant cost issues is the Navys $13 billion annual ship building budget. Indeed, the Government Accounting Office (GAO) reported it is not uncommon for estimates to be off by 20 to 50 percent of the acquisition cost1 and that the Navy exceeded the budget on a total of 41 ships for $4 billion.2 The Virginia class submarine program accounted for approximately $1 billion of this cost overrun on its first two hulls3.

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Document Details

Document Type
Technical Report
Publication Date
Feb 17, 2010
Accession Number
AD1018536

Entities

People

  • James E. O'harrah

Organizations

  • Air War College

Tags

Communities of Interest

  • Ground and Sea Platforms

DTIC Thesaurus Topics

  • Attack Submarines
  • Boats
  • Business Administration
  • Engineers
  • Military Acquisition
  • Naval Operations
  • Naval Warfare
  • Navy
  • Nuclear Powered Submarines
  • Nuclear Propulsion
  • Seawolf Class
  • Shipbuilding
  • Submarine Warfare
  • Uss Greeneville
  • Uss Jimmy Carter
  • Uss Seawolf
  • Virginia Class

Readers

  • Defense Acquisition Program Management
  • Life Cycle Cost Analysis
  • Public Financial Management and Budgeting