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Navy Ford (CVN-78) Class Aircraft Carrier Program: Background and Issues for Congress

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Navy Ford (CVN-78) Class Aircraft Carrier Program: Background and Issues for Congress Navy Ford (CVN-78) Class Aircraft Carrier Program: Background and Issues for Congress (name redacted) Specialist in Naval Affairs December 22, 2017 Congressional Research Service 7-.... www.crs.gov RS20643 Navy Ford (CVN-78) Class Aircraft Carrier Program: Background and Issues for Congress Summary CVN-78, CVN-79, CVN-80, and CVN-81 are the first four ships in the Navy’s new Gerald R. Ford (CVN-78) class of nuclear-powered aircraft carriers (CVNs). CVN-78 was procured in FY2008. The Navy’s proposed FY2018 budget estimates the ship’s procurement cost at $12,907.0 million (i.e., about $12.9 billion) in then-year dollars. The ship received advance procurement funding in FY2001-FY2007 and was fully funded in FY2008- FY2011 using congressionally authorized four-year incremental funding. To help cover cost growth on the ship, the ship received an additional $1,374.9 million in FY2014-FY2016 cost-to- complete procurement funding. The Navy’s proposed FY2018 budget requests $20 million in additional cost-to-complete procurement funding. The ship was delivered to the Navy on May 31, 2017, and was commissioned into service on July 22, 2017. CVN-79 was procured in FY2013. The Navy’s proposed FY2018 budget estimates the ship’s procurement cost at $11,377.4 million (i.e., about $11.4 billion) in then-year dollars. The ship received advance procurement funding in FY2007-FY2012, and the Navy plans to fully fund the ship in FY2013-FY2018 using congressionally authorized six-year incremental funding. The Navy’s proposed FY2018 budget requests $2,561.1 million in procurement funding for the ship. The ship is scheduled for delivery to the Navy in September 2024. CVN-80 is scheduled to be procured in FY2018. The Navy’s proposed FY2018 budget estimates the ship’s procurement cost at $12,997.6 million (i.e., about $13.0 billion) in then-year dollars. The ship received AP funding in FY2016 and FY2017, and the Navy plans to fully fund the ship in FY2018-FY2023 using congressionally authorized six-year incremental funding. The Navy’s proposed FY2018 budget requests $1,880.7 million in procurement funding for the ship. The ship is scheduled for delivery to the Navy in September 2027. CVN-81 is scheduled under the Navy’s FY2017 30-year shipbuilding plan to be procured in FY2023. Under that schedule, the Navy would use AP funding for the ship in FY2021 and FY2022, and then fully fund the ship in FY2023-FY2028 using congressionally authorized six- year incremental funding. The Navy’s FY2018 budget submission programs the initial increment of AP funding for the ship in FY2021. Oversight issues for Congress for the CVN-78 program (and other carrier-related issues) for FY2018 included the following: whether to approve, reject, or modify the Navy’s FY2018 procurement requests for the CVN-78 program; the impact of using a continuing resolution (CR) to fund the Department of Defense (DOD) for the first few months of FY2018 on the execution of FY2018 funding for the CVN-78 program; whether to provide advance procurement (AP) funding in FY2018 for the purchase of materials for CVN-81, so as to accelerate the procurement of the ship to a year earlier than FY2023 and/or initiate a combined purchase of materials for CVN-80 and CVN-81 or a block buy contract for the two ships; cost growth in the CVN-78 program, Navy efforts to stem that growth, and Navy efforts to manage costs so as to stay within the program’s cost caps; CVN-78 program issues that were raised in a December 2016 report from the Department of Defense’s (DOD’s) Director of Operational Test and Evaluation (DOT&E); and Congressional Research Service Navy Ford (CVN-78) Class Aircraft Carrier Program: Background and Issues for Congress whether the Navy should shift at some point from procuring large-deck, nuclear- powered carriers like the CVN-78 class to procuring smaller aircraft carriers. Congressional Research Service Navy Ford (CVN-78) Class Aircraft Carrier Program: Background and Issues for Congress Contents Introduction ..................................................................................................................................... 1 Background ..................................................................................................................................... 1 The Navy’s Aircraft Carrier Force ............................................................................................ 1 Statutory Requirement to Maintain Not Less Than 11 Carriers ................................................ 1 Origin of Requirement ........................................................................................................ 1 Waiver for Period Between CVN-65 and CVN-78 ............................................................. 1 Statutory Requirement to Maintain Not Less Than Nine Carrier Air Wings ............................ 2 New Navy Force-Level Goal of 12 Carriers ............................................................................. 2 Aircraft Carrier Procurement Rates........................................................................................... 2 Procurement Rates and Resulting Dates for Achieving 12-Carrier Force .......................... 2 Avoiding a Decline from 11 Carriers to 10 ......................................................................... 3 Funding Requirements and Unit Costs ............................................................................... 3 Funding and Procuring Aircraft Carriers ................................................................................... 4 Some Key Terms ................................................................................................................. 4 Incremental Funding Authority for Aircraft Carriers .......................................................... 4 Aircraft Carrier Construction Industrial Base ........................................................................... 5 Gerald R. Ford (CVN-78) Class Program ................................................................................. 5 CVN-78 ............................................................................................................................... 6 CVN-79 ............................................................................................................................... 6 CVN-80 ............................................................................................................................... 7 CVN-81 ............................................................................................................................... 7 Program Procurement Funding ........................................................................................... 7 Changes in Estimated Unit Procurement Costs Since FY2008 Budget .............................. 8 Program Procurement Cost Cap .......................................................................................... 9 Issues for Congress for FY2018 .................................................................................................... 10 FY2018 Funding Request ....................................................................................................... 10 Impact of CR on Execution of FY2018 Funding .................................................................... 10 Option for Accelerated Procurement of CVN-81 and/or Block Buy or Combined Material Buy for CVN-80 and CVN-81 ................................................................................ 11 Overview ............................................................................................................................ 11 Press Reports ..................................................................................................................... 12 2015 Navy Testimony ....................................................................................................... 14 2012 Navy Information Paper ........................................................................................... 16 Two-Carrier Buys in FY1983 and FY1988 ....................................................................... 17 Cost Growth and Managing Costs within Program Cost Caps ............................................... 18 Overview ........................................................................................................................... 18 Recent Related Legislative Provisions .............................................................................. 19 Sources of Risk of Cost Growth and Navy Actions to Control Cost ................................ 20 Developments in 2016 and 2017 ....................................................................................... 21 Issues Raised in December 2016 DOT&E Report .................................................................. 25 Navy Study on Smaller Aircraft Carriers ................................................................................ 29 Overview ........................................................................................................................... 29 Navy Study Initiated in 2015 ............................................................................................ 30 Report Required by Section 128 of P.L. 114-92 ............................................................... 31 Legislative Activity for FY2018 .................................................................................................... 34 Summary of Congressional Action on FY2018 Funding Request .........................................
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