Navy DDG-1000 Destroyer Program: Background, Oversight Issues, and Options for Congress
2007
O'Rourke, Ronald
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 DDG-1000 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.
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