Defense Infrastructure: Navy Can Improve the Quality of Its Cost Estimate to Homeport an Aircraft Carrier at Naval Station Mayport

Abstract

GAO's independent cost estimate suggests that the total one-time cost of homeporting a nuclear-powered aircraft carrier at Naval Station Mayport is expected to be between $258.7 million and $356.0 million, in base year 2010 dollars. The Navy's estimate of the one-time cost is $537.6 million--also in base year 2010 dollars--which is outside the upper range of GAO's estimate. Unlike GAO's estimate, the Navy did not conduct a risk and uncertainty analysis on its one-time costs; as a result, its estimate does not include a range. The largest difference between GAO's estimate of one-time costs and the Navy's estimate is the cost of constructing new facilities at Mayport. Based on the historical costs of constructing similar facilities, GAO estimates at the 65 percent confidence level that the cost for constructing the controlled industrial facility will be $70.5 million, and the cost for constructing the ship maintenance support facilities will be $45.6 million. The Navy estimates the construction costs to be much higher at $139.1 million and $157.2 million, respectively. Navy officials told GAO the difference is due to the increased cost involved in protecting the buildings from a potential storm surge associated with a Category 4 hurricane. GAO included a hurricane factor in its estimate to account for this increase, but GAO and the Navy used different estimating methods in developing the estimates for the construction costs. GAO used adjusted actual costs from similar construction projects, while the Navy used a detailed engineering estimate. For recurring costs, GAO's independent cost estimate suggests that the total is expected to be between $9.0 million and $17.6 million per year. The Navy's estimate of $15.3 million per year is within GAO's estimated range.

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Document Details

Document Type
Technical Report
Publication Date
Mar 01, 2011
Accession Number
ADA538575

Entities

Organizations

  • United States Government Accountability Office

Tags

Communities of Interest

  • Air Platforms
  • Ground and Sea Platforms

DTIC Thesaurus Topics

  • Aircraft Carriers
  • Aircraft Nuclear Propulsion
  • Congress
  • Cost Analysis
  • Cost Estimates
  • Costs
  • Department Of Defense
  • Infrastructure
  • National Governments
  • Naval Air Stations
  • Naval Operations
  • Naval Shore Facilities
  • Navy
  • Nuclear Powered Ships
  • Nuclear Propulsion
  • United States
  • United States Government

Readers

  • Life Cycle Cost Analysis
  • Maritime and Naval Warfare Studies
  • Public Financial Management and Budgeting