Naval New Ship Construction Cost Analysis and Trends

Abstract

This thesis presents an analyses of the Ship Construction and Conversion, Navy, Appropriation cost estimates for new ship construction during the period 1960-1992. Emphasis is placed on Four specific shipbuilding programs: Guided Missile Destroyer (DDG-51), Fleet Ballistic Submarine (Trident), Attack Submarine (SSN-688), and Guided Missile Cruiser (CG-47). These programs are analyzed to determine how competition/dual sourcing, contract type and the shipbuilding marketplace have influenced the actual costs of these ships. These programs are also compared for the period 1981-1992 to determine if there are any trends or consistency for all of the programs. The research concludes that the shipbuilding marketplace has a significant influence on actual construction costs of Navy ships. When there is limited commercial work available the shipbuilders may, underbid contracts to remain in business. Competition in Navy shipbuilding does not necessarily result in cost savings due to the small number of ships produced and the limited number of competitive shipyards. Ship Construction and Conversion; Shipbuilding Industry; Competition; Contracts; Cost Growth; Marketplace.

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Document Details

Document Type
Technical Report
Publication Date
Jun 01, 1992
Accession Number
ADA256446

Entities

People

  • David J. Holmgren

Organizations

  • Naval Postgraduate School

Tags

Communities of Interest

  • Ground and Sea Platforms
  • Weapons Technologies

DTIC Thesaurus Topics

  • Attack Submarines
  • Ballistic Missile Submarines
  • Boats
  • Contracts
  • Cost Analysis
  • Cost Estimates
  • Destroyers
  • Engineering
  • Engineers
  • Fleet Ballistic Missiles
  • Guided Missiles
  • Naval Vessels
  • Naval Vessels (Combatant)
  • Navy
  • Shipbuilding
  • Submarines
  • Uss Arleigh Burke

Fields of Study

  • Engineering

Readers

  • Industrial Economics
  • Maritime and Naval Warfare Studies
  • Naval Engineering and Maritime Security