Defense Acquisitions: Additional Analysis Needed to Capture Cost Differences Between Conventional and Nuclear Propulsion for Navy's Future Cruiser
2009
The National Defense Authorization Act for Fiscal Year 2008 requires that any budget request for construction of a new class of major combatant vessels will be for one with an integrated nuclear power system, unless the Secretary of Defense submits notification to Congress that it is not in the national interest to do so. The Navy's Next Generation Cruiser?CG(X)-is subject to this legislation. In response to a congressional request, GAO reviewed the Navy's analysis of options for CG(X), including cost estimates related to building nuclear and conventional cruisers. GAO examined (1) the design concepts included in the CG(X) Analysis of Alternatives, (2) how each ship design concept addresses threats that cause capability gaps for maritime air and missile defense, and (3) how the Navy's methodology and assumptions affect its estimates of the relative costs for conventional and nuclear cruisers. To accomplish this, GAO analyzed CG(X) program documents, interviewed Navy and Department of Defense officials, and assessed the effect of alternative methodologies and assumptions on cost estimates. This letter is an unclassified summary of the classified report. In the CG(X) Analysis of Alternatives, the Navy identified six ship design concepts. These concepts include developing new designs as well as making modifications to previous hulls. For example, two concepts are based upon making modifications to the DDG 1000 Zumwaltclass destroyer and another concept is based upon making modifications to the DDG 51 Arleigh Burke-class destroyer. The ship design concepts vary in both capability, including the sensitivity of the radar and number of missile cells, and propulsion system. The variability is based on whether the concept uses a previous hull or is a new design.
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