LOOKING FOR SAVINGS

One of the drivers in construction of the overall Bush budget request for FY 2006 has been the need to show cost savings.

The Pentagon's outgoing transformation chief, retired Vice Adm. Arthur K. Cebrowski, who has just stepped down as director of the Office of Force Transportation, told a recent conference that "We now have a Navy that scales poorly, or to put it another way, really doesn't scale at all. So when someone decides they want to reduce the budget, what disappears is something like an aircraft carrier, a couple of high-end destroyers. Big chunks disappear from the force."

Added to the problem are cost overruns. Cost growth above original budgeted amounts continues to bestet the Navy. Over the past few years, it has used "prior year completion" funding--additional appropriations for ships already under contract--to pay for cost overruns. That, of course, leaves less money available for future ships. And it calls into question the likely accuracy of any number the Navy plugs into its budget for future ships. Since our print issue went to press the GAO has published a report that addresses this issue.

How does all this translate into what's in the penny-pinching FY 2006 budget request?

The request looks for procurement of just four new construction ships (two less than previously projected): a Virginia Class Submarine, an LPD-17 San Antonio Class amphibious transport dock ship, a Littoral Combat Ship, and a T-AKE dry cargo and ammunition ship.

Procurement of the first DD(X) is pushed out to 2007. And procurement of Virginia Class submarines goes down to one a year over the next six years.

New generation ships with FY 2006 funding include:

CVN-21: $565 million to continue advance procurement. This ship class features an innovative electrical generation and distribution system, larger flight deck, and a smaller crew (by at least 500) than the aircraft carriers it will replace. Construction will start in FY 2008.

DD(X): $716 million for advance procurement. The budget also includes research and development funding of $1.1 billion for continued development of this multi-mission surface combatant. The ship will provide precision and high -volume fires, at sea and in support of forces ashore. The lead ship will be funded in FY 2007, and another four funded through FY 2011.

With an early introduction of the next generation cruiser—CG(X)—the Navy has decided it needs less DD(X)s and the budget reflects that change.

Over the past few years, the Navy has developed different options for transitioning between the DD(X) and CG(X) programs as DD(X) technologies mature and now, according to the administration, believes that procuring one DD(X) per year is the appropriate investment until the CG(X) is procured in 2011. In addition, the upcoming 2005 Quadrennial Defense Review will review the Navy's current fleet and determine the capabilities needed in the future, which could imp act the number of DD(X)s bought and the appropriate transition to CG(X) cruisers.

As a descendant of the DD(X) program, the CG(X) will share with DD(X) a common propulsion architecture and a stealthier hull form. This hull form will contain an integrated all-electric power system that is more efficient and survivable than today's propulsion systems, and provides more power capacity for future weapons. CG(X) will also use many of the same transformational technologies used in DD(X) to reduce crew size and operating and support costs. CG(X) will maintain air superiority over the total force. Larger, faster, and longer-range missiles will allow CG(X) to counter state-of-the-art air threats hundreds of miles inland and to perform other missions well in the littoral. A generation of air defense radars is currently under development to counter low-radar cross section (RCS) threats at extended ranges; CG(X) will not only provide sustained air superiority, but will also detect, track and engage ballistic missiles outside of the atmosphere.

In another recent development, the Navy has let it be known that it would now like to recompete the DD(X) program, giving construction to just one yard rather than splitting the program between Northrop Grumman Ship Ystsems and GD Bath iron Works, as presently planned.

Littoral Combat Ship: $613 million, including $249 million in research and development funds for ship construction. This new ship will be a fast, agile, stealthy, relatively small and affordable surface combatant capable of operating in shallow water close to shore. Navy plans include 21 ships for FY 2006-2011.

Virginia Class Submarine: $2.4 billion to continue procurement. This new attack submarine has state-of-the-art stealth and enhanced features to support Special Operations Forces and diverse missions in coastal areas. Procurement will be one ship per year through FY 2011.

TANGO BRAVO

Something to keep an eye on in Pentagon budgeting is research.

Interestingly, Navy research funding for "Advanced Submarine System Development" goes from $85.7 million in FY 2004 to $88.2 million in FY 2005 and $162.9 million in FY 2006.

In the works at the Advanced Technology Office of the Defense Advanced Research Project Agency (DARPA) is a program called Tango Bravo. Essentially, it's aimed at coming up with a design for a nuclear sub that has pretty much the same capabilities as the Virginia class, but that would be a lot smaller, cost a lot less and make use of such innovative technology as shaftless drive and housing a torpedo delivery system outside of the pressure hull.