US Navy's New AEGIS Destroyer Looks Very Impressive...But Is It Affordable?

Dave Majumdar

Security,

Does the Navy have any idea what it will cost? 

The U.S. Government Accountability Office (GAO) is urging the U.S. Navy to delay procurement of the service’s Flight III version of the long-serving Arleigh Burke-class (DDG-51) destroyer. The new destroyer subclass will replace the original SPY-1 phased array radar with an advanced SPY-6 gallium nitride-based active electronically scanned array (AESA) radar—which will be many times more powerful. However, the new warship will require extensive redesign to accommodate the new radar and a host of other upgrades.

“The Navy has not demonstrated sufficient acquisition and design knowledge regarding its Flight III procurement approach and opportunities exist to enhance oversight,” reads an Aug. 4 GAO report titled Delaying Procurement of DDG 51 Flight III Ships Would Allow Time to Increase Design Knowledge. “If the Navy procures the lead Flight III ship in fiscal year (FY) 2016 as planned, limited detail design knowledge will be available to inform the procurement.”

The GAO also disputes the Navy’s cost estimates for the new ships, noting that the service has not updated those figures for the new Flight III design. “The Navy’s anticipated cost savings under the FY 2013-2017 Flight IIA multiyear procurement (MYP) plan do not reflect the planned addition of Flight III ships,” the report states. “While the Navy did not update its cost savings with Flight III information, doing so would increase transparency and could help inform expected savings under the next MYP.”

The GAO is concerned that the Navy intends to request authority for a multiyear buy for the Flight III destroyers without enough cost data. “The Navy plans to request authority to award new Flight III MYP contracts (FY 2018-2022) in February 2017,” the GAO stated in its report.  “The Navy will be asking Congress for this authority to procure nearly half of Flight III ships before being able to meet the criteria to seek this authority. For example, detail design will not be complete and costs will not be informed by any Flight III construction history.”