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• Federation of American Scientists

Summary

The Navy is procuring a new kind of destroyer called the DDG-1000 (formerly the DD(X)). Navy plans call for procuring 7 DDG-1000s between FY2007 and FY2013. The first two DDG-1000s were procured in FY2007 and are being splitfunded (i.e., incrementally funded) across FY2007 and FY2008. The Navy estimates the combined procurement cost of the first two DDG-1000s at $6,370 million. The two ships received $1,010 million in FY2005 and FY2006 advance procurement funding, and $2,557 million in FY2007 procurement funding. The Navy's FY2008 budget requests the two ships' remaining $2,802 million in procurement funding. The Navy's FY2008 budget also requests $151 million in advance procurement funding for the third DDG-1000, whose procurement cost the Navy estimates at $2,563 million, and $503 million in research and development funding for the DDG1000 program. The DDG-1000 program raises several potential oversight issues for Congress, including the accuracy of Navy cost estimates for the program, technical risk and system integration, the acquisition strategy for the third and subsequent ships in the program, the shared-production arrangement for the program, and the program's potential implications for the shipbuilding industrial base. Potential options for Congress for the DDG-1000 program include supporting the Navy's proposed plans, using a block-buy arrangement for procuring several DDG-1000s, and curtailing procurement of DDG-1000s. FY2008 Defense Authorization Bill (H.R. 1585/S. 1547). The House Armed Services Committee, in its report (H.Rept. 110-146 of May 11, 2007) on H.R. 1585, recommended approving the Navy's request for FY2008 procurement funding for the DDG-1000 program and increasing the Navy's FY2008 request for research and development funding for the program by $9 million. The Senate Armed Services Committee, in its report (S.Rept. 110-77 of June 5, 2007) on S. 1547, recommended approving the Navy's request for FY2008 procurement funding for the program and increasing the Navy's FY2008 request for research and development funding for the program by $15 million. FY2008 Defense Appropriations Bill (H.R. 3222). The House Appropriations Committee, in its report (H.Rept. 110-279 of July 30, 2007) on H.R. 3222, recommended reducing the Navy's FY2008 procurement funding request for the DDG-1000 program by $30 million and increasing the Navy's FY2008 request for research and development funding for the program by $8 million. The Senate Appropriations Committee, in its report (S.Rept. 110-155 of September 14, 2007) on H.R. 3222, recommended increasing the Navy's FY2008 procurement funding request for the DDG-1000 program by $4.8 million and increasing the Navy's FY2008 request for research and development funding for the program by $16 million. This report will be updated as events warrant.

Related Legislation:
• H.R.1585
• S.1547
• H.R.3222

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