Cost of ford-class carriers in question.

AuthorHarper, Jon
PositionBudget Matters

The Navy's Ford-class aircraft carrier program is under renewed scrutiny after a government watchdog group said the second ship might bust its cost cap.

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The lead ship, the USS Gerald R. Ford, also known as CVN 78, has experienced cost growth of nearly 23 percent. The price tag is now estimated to be $12.9 billion, the Government Accountability Office noted in a recent report titled, "Ford-Class Aircraft Carrier: Follow-On Ships Need More Frequent and Accurate Cost Estimates to Avoid Pitfalls of Lead Ship."

"Cost growth for the lead ship was driven by challenges with technology development, design and construction, compounded by an optimistic budget estimate," the report said.

The Navy estimated that the second ship in the class, the USS John F. Kennedy, CVN 79, would not cost more than $11.4 billion--the cap set by lawmakers. But the GAO raised doubts about whether that target could be met.

The Navy's projection "is not reliable and... does not demonstrate that the program can meet its $11.4 billion cost cap," the report said. "The Navy developed an estimate for CVN 79 that assumes a reduction in labor hours needed to construct the ship that is unprecedented in the past 50 years of aircraft carrier construction.

"Analysis shows that the... cost estimate may not sufficiently account for program risks, with the current budget likely insufficient to complete ship construction," it added.

The GAO recommended the Pentagon obtain an independent cost estimate, and ask Congress to revise the cost cap if the independent analysis indicates that the Kennedy can't stay within the current one.

In its official response to the GAO report, the Defense Department said its cost assessment and program evaluation office would conduct an independent review and provide an updated estimate for the Kennedy. However, it pushed back against the idea that the ship was destined for a cost overrun.

"The department does not concur with revising the cost cap should the... independent cost estimate exceed the current cost cap, as it would be premature to do so," it said. "Rather, the Navy will use the independent cost estimate to determine whether the execution within the cost cap is at risk and whether additional mitigation strategies are needed to ensure CVN 79 is delivered at or below the cost cap."

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