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Summary

The Administration's FY2010 defense budget proposes to end the procurement of DDG-1000 (Zumwalt) class destroyers with the third ship, which was authorized and partially funded in FY2009, and restart procurement DDG-51 (Arleigh Burke) class Aegis destroyers, which were last procured in FY2005. The Administration's budget is consistent with a proposal for stopping DDG-1000 procurement and restarting DDG-51 procurement that the Navy announced in July 2008. The Navy's plans for destroyer procurement in FY2012 and beyond are somewhat unclear. The Navy since July 2008 has spoken on several occasions about a desire to build a total of 11 or 12 DDG-51s between FY2010 and FY2015, but the Navy also testified to the Seapower subcommittee of the Senate Armed Services Committee on June 16, 2009, that it is conducting a study on destroyer procurement options for FY2012 and beyond that is examining design options based on either the DDG-51 or DDG-1000 hull form. A January 2009 memorandum from the Department of Defense acquisition executive called for such a study. The proposed FY2010 defense budget requests procurement funding to complete the cost of the third DDG-1000 and to procure one DDG-51, and advance procurement funding for two more DDG-51s that the Navy wants to procure in FY2011. FY2010 defense authorization bill: Section 125 of the House-reported version of the FY2010 defense authorization bill (H.R. 2647) would authorize a multiyear procurement (MYP) arrangement for the procurement of DDG-51s beginning in FY2010. Section 113 of the Senate-reported version of the bill (S. 1390) would, among other things, prohibit the Navy from obligating or expending funds for surface combatants procured in FY2012 or subsequent years until certain conditions are met. FY2010 DOD appropriations bill: The House Appropriations Committee, in its report (H.Rept. 111-230 of July 24, 2009) on the FY2010 DOD appropriations bill (H.R. 3326), recommended approving the Navy's request for FY2010 procurement and advance procurement funding for the DDG-51 program, and reducing by $11 million the Navy's request for FY2010 procurement funding for the DDG-1000 program. The Senate Appropriations Committee, in its report (S.Rept. 111-74 of September 10, 2009), recommended increasing the Navy's request for FY2010 procurement funding for the DDG-51 program so as to support the procurement of two DDG-51s in FY2010, and approving the Navy's request for FY2010 procurement funding for the DDG- 1000 program.

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