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Wednesday, February 3, 2010

Navy plans to buy two more subs in 2011; cost of Ford carrier rises 6.3 percent

Northrop Grumman Corp. and Virginia's congressional delegation got their wish this week, as the Navy announced it is seeking to buy two attack submarines next year for the first time since the early 1990s.

The Navy requested $5.1 billion as part of President Barack Obama's $708 billion defense budget to double the production rate of Virginia-class submarines beginning in 2011.

Built jointly by Northrop's Newport News shipyard and General Dynamics Electric Boat in Groton, Conn., the subs had been the subject of speculation in Washington for the past few months about whether the sea service would try to save money in the short term by delaying the ramp-up in production.

Members of Congress and industry officials have lobbied for years to increase the submarine production rate, arguing that higher build rates translate into bottom-line savings and help preserve the jobs of skilled workers in the industrial shipbuilding base.

The money requested would go to fund two subs in fiscal 2011, the advanced procurement of components for two subs in 2012 and 2013 and additional money for research and development. Those six subs are expected to enter the active fleet between August 2016 and February 2019.


The Navy's 2011 proposed shipbuilding budget, released Monday, also shows that the estimated cost to build the next-generation aircraft carrier, the Gerald R. Ford, increased $685 million — or 6.3 percent — over a one-year period.

The Newport News-built carrier, which was christened in late 2008 and is due to be complete in 2015, now is estimated to cost $11.53 billion, compared with a $10.85 billion estimate in the Navy's fiscal 2010 budget.

More than half the cost escalation, or about $350 million, was under a line item labeled "Plan Costs," according to budget documents.

Nearly a third of the cost increase came from three new technologies: an electromagnetic aircraft launch system, a dual-band radar system and new aircraft recovery equipment, according to budget documents.

All three products are government-furnished and are not manufactured by Northrop.

Basic construction costs of the Ford rose about $70 million.

In all, the Ford program is slated to receive $1.73 billion in fiscal 2011, if the budget remains intact after Congress finishes its defense appropriations bill, a step that usually takes place in December.

The budget also includes about $908 million for advance procurement of parts for the next carrier, the yet-to-be-named CVN-79; $1.26 billion for the midlife overhaul and nuclear refueling project on the USS Theodore Roosevelt carrier; and $408 million for planning and advance procurement for the overhaul of the USS Abraham Lincoln carrier.

All those projects are under way or planned to take place in Newport News.


"In general, Northrop Grumman programs are well-supported, which reflects their relevance and importance to current and future national security requirements," said Margaret Mitchell-Jones, a Northrop spokeswoman.

Budget documents also indicate the Navy has embraced Defense Secretary Robert Gates' decree to move carrier production to five-year construction cycles instead of four.

The second ship in the Ford class, the CVN-79, is scheduled to be delivered in 2020, five years after the Ford is completed. Original Navy plans called for the ship to be delivered in 2019.

If continued, the move would result in a 10-carrier fleet by 2040, down from 11 today. But since an 11-carrier fleet is required under federal law, Congress would have to approve the reduction.



 
  


An additional $672 million is slated to continue research and development for a new ballistic-missile submarine to replace the aging Ohio-class fleet. That program, which Northrop might have a role in developing and building, received $493 million in fiscal 2010.(Source dailypress)