Navy Attack Submarine Procurement: Background and Issues for Congress
2008
O'Rourke, Ronald
The Navy's proposed FY2009 budget requests $2,107.0 million to complete the procurement funding for an 11th Virginia (SSN-774) class nuclear-powered attack submarine (SSN). This boat has already received $756.0 million in prior-year advance procurement funding. The Navy's proposed FY2009 budget also requests $719.8 million in advance procurement funding for Virginia-class boats to be procured in future fiscal years, and $596.8 million in additional procurement funding for economic order quantity (EOQ) purchases of key components for eight Virginia-class submarines (the 11th boat and seven others) that are to be procured under a multiyear procurement (MYP) arrangement during the 5-year period FY2009-FY2013. As part of its action on the Navy's FY2008 shipbuilding budget, Congress added $588 million in advance procurement funding for an additional Virginia class submarine to be procured in a year prior to FY2012. The Navy, as part of its proposed FY2009 budget, included this additional submarine in its shipbuilding plan and scheduled it to be fully funded in FY2011. One issue for Congress for FY2009 is whether to accelerate the full funding of the newly added submarine from FY2011 to FY2010 or FY2009, so as to facilitate a follow-on option of funding an additional one or two Virginia-class submarines in FY2010 and/or FY2011. Supporters of this option could argue that it would mitigate a projected seven-boat shortfall in SSNs. Opponents could argue that it would place added pressure on the Navy's FY2009 budget and/or its FY2010 budget, making it more difficult for the Navy to fund other priorities in those years. This report will be updated as events warrant.
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