Observing Cost Growth in Shipbuilding

Without the detailed budget information, we don't know why, but I think I'll go ahead and float this.

From the Navy shipbuilding section in the FY 2010 Presidents budget (PDF), line item 22 under prior year program costs we have this little blurb:

Completion of PY Shipbuilding Programs (454,586)

SSN-774 (MEMO NON ADD) (45,608)
DDG-1000 (MEMO NON ADD) (309,636)
LPD 17 (MEMO NON ADD) (99,342)

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454,586
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In other words, the Virginia class is over budget by $45.6 million (~2%), the LPD-17 is over budget by $99.3 million(~6%), and the DDG-1000 is already over budget by $309.6 million (~9%).

Like I said, we don't know why, perhaps John Young who touted "on cost, on schedule" all last year can make himself available for comment?

Considering this is previous fiscal year, it happened before October 1, 2008, over 6 months ago and more importantly after Congress pushed ahead with the third DDG-1000 in the FY09 budget. One can't help but have a really bad feeling when the new $3.5 billion dollar destroyer that has only been under construction for 3 months is already 9% over budget.

We should keep in mind there almost certainly will be unforeseen cost growth this year in the program due primarily to the new shipbuilding agreement between General Dynamics and Northrop Grumman to build all the DDG-1000s at BIW. Still, this little budget line item cost increase for the DDG-1000 could have purchased the Coast Guard an additional 6 Sentinel class fast response cutters, or 6 of the latest F/A-18E/F Super Hornets.

The DDG-1000 may get fixed price contracts for the 2nd and 3rd ship, but something tells me the first one is going to cost a lot more than John Young's $3.5 billion number, and I won't be surprised if it costs more than the 55,000 ton yet to be built brand new USS America (LHA 6) when it is all said and done.