Why Has the Cost of Navy Ships Risen?

Why Has the Cost of Navy Ships Risen?
Author: Mark V. Arena
Publisher: Rand Corporation
Total Pages: 136
Release: 2006
Genre: Technology & Engineering
ISBN: 0833039210

Over the past several decades, increases in acquisition costs for U.S. Navy combatants have outpaced the rate of inflation. To understand why, the authors of this book examined two principal source categories of ship cost escalation (economy-driven factors and customer-driven factors) and interviewed various shipbuilders. Based on their analysis, the authors propose some ways the Navy might reduce ship costs in the future.

Why Has the Cost of Navy Ships Risen? A Macroscopic Examination of the Trends in U.S. Naval Ship Costs Over the Past Several Decades

Why Has the Cost of Navy Ships Risen? A Macroscopic Examination of the Trends in U.S. Naval Ship Costs Over the Past Several Decades
Author:
Publisher:
Total Pages: 0
Release: 2006
Genre:
ISBN:

Over the past four decades, the growth of U.S. Navy ship costs has exceeded the rate of inflation. This cost escalation concerns many in the Navy and the government. The real growth in Navy ship costs means that ships are becoming more expensive and outstripping the Navy's ability to pay for them. Given current budget constraints, the Navy is unlikely to see an increase in its shipbuilding budget. Therefore, unless some way is found to get more out of a fixed shipbuilding budget, ship cost escalation means that the size of the Navy will inevitably shrink. In fact, by some estimates, even boosting the shipbuilding budget from $10 billion annually to $12 billion would only help the Navy achieve a fleet of 260 ships by the year 2035 rather than the nearly 290 it now has (CBO, 2005). To better understand the magnitude of ship cost escalation and its implications, the Office of the Chief of Naval Operations asked the RAND Corporation to explore several questions. These include the magnitude of cost escalation, how ship cost escalation compares with other areas of the economy and other weapon systems, the sources of cost escalation, and what might be done to reduce or minimize ship cost escalation.

Project Cost Overrun

Project Cost Overrun
Author: Esbjörn Segelod
Publisher: Cambridge University Press
Total Pages: 274
Release: 2017-11-23
Genre: Business & Economics
ISBN: 1316805301

Cost overrun is common in public and private sector projects. Costs tend to grow, plans fail and financial problems follow, but how can we approve the right projects if we cannot estimate their true cost? This book, for academics in project management, management accounting and corporate finance, as well as for managers in the public and private sectors, offers a new way of thinking about the causes and consequences of cost overrun for firms and society. It demonstrates that there is a logic behind cost growth and overrun, identifies projects and situations that are more vulnerable, and examines the effects of increased costs. It further identifies the negative and positive consequences of cost overrun, analyses how and why preconditions for cost overrun differ when the logic governing private firms dominates versus the logic of the political sector, and explains why cost can sometimes be of lesser importance to decision makers.

Defence Inflation

Defence Inflation
Author: Keith Hartley
Publisher: Routledge
Total Pages: 132
Release: 2018-10-18
Genre: History
ISBN: 1351727338

Defence inflation is a recurring factor in determining defence spending. It is widely reported in official government publications and in the trade press, but remains relatively neglected by defence and peace economists. In this book, international contributors from Finland, Norway, Sweden, the UK and the USA distinguish between defence inflation and cost escalation, and identify the causes of both. They use specific case studies to address a wide variety of theoretical and empirical issues and key questions, including the following: Does defence inflation affect all countries? What are its effects? Why does it occur? How (if at all) can defence inflation be controlled? While most industry and trade press devote considerable ink and space to the discussion of defence inflation, cost escalation, and their consequential impact on the purchasing dollars of the armed forces, economists have been relatively silent. This book aims to rectify this oversight through a multinational survey and analysis of the topic, while also identifying the opportunities for further theoretical and empirical research in the field. This book was originally published as a special issue of the journal Defence and Peace Economics.

Democracy's Arsenal

Democracy's Arsenal
Author: Jacques S. Gansler
Publisher: MIT Press
Total Pages: 449
Release: 2013-08-16
Genre: Political Science
ISBN: 0262525232

An expert explains why the security needs of the twenty-first century require a transformation of the defense industry of the twentieth century. New geopolitical realities—including terrorism, pandemics, rogue nuclear states, resource conflicts, insurgencies, mass migration, economic collapse, and cyber attacks—have created a dramatically different national-security environment for America. Twentieth-century defense strategies, technologies, and industrial practices will not meet the security requirements of a post-9/11 world. In Democracy's Arsenal, Jacques Gansler describes the transformations needed in government and industry to achieve a new, more effective system of national defense. Drawing on his decades of experience in industry, government, and academia, Gansler argues that the old model of ever-increasing defense expenditures on largely outmoded weapons systems must be replaced by a strategy that combines a healthy economy, effective international relations, and a strong (but affordable) national security posture. The defense industry must remake itself to become responsive and relevant to the needs of twenty-first-century security.

Surface Combatant Construction Update

Surface Combatant Construction Update
Author: United States. Congress. House. Committee on Armed Services. Seapower and Expeditionary Forces Subcommittee
Publisher:
Total Pages: 144
Release: 2008
Genre: Shipbuilding
ISBN:

Navy LPD-17 Amphibious Ship Procurement

Navy LPD-17 Amphibious Ship Procurement
Author: Ronald O'Rourke
Publisher: DIANE Publishing
Total Pages: 51
Release: 2011-05
Genre: Technology & Engineering
ISBN: 143793885X

The Navy¿s FY 2011-2015 shipbuilding plan calls for procuring an 11th and final San Antonio (LPD-17) class amphibious ship in FY 2012. The Navy estimates the procurement cost of this ship at $2 billion. The ship received $184 million in FY 2010 advance procurement funding, and the Navy plans to request the remaining $1.9 billion of the cost in the FY 2012 budget. Accordingly, the Navy¿s proposed FY 2011 budget does not request any procurement funding for the LPD-17 program. Contents of this report: (1) Intro.; (2) Amphibious Ships in General; LPD-17 Program; (3) Issues for Congress. Appendix A. Amphibious Lift Goal; Appendix B. LPD-17 Cost Growth and Construction Problems. Illus. This is a print on demand report.

Assessing China's Naval Power

Assessing China's Naval Power
Author: Sarah Kirchberger
Publisher: Springer
Total Pages: 337
Release: 2015-06-23
Genre: Political Science
ISBN: 3662471272

This book analyzes the rise of China’s naval power and its possible strategic consequences from a wide variety of perspectives – technological, economic, and geostrategic – while employing a historical-comparative approach throughout. Since naval development requires huge financial resources and mostly takes place within the context of transnational industrial partnerships, this study also consciously adopts an industry perspective. The systemic problems involved in warship production and the associated material, financial, technological, and political requirements currently remain overlooked aspects in the case of China. Drawing on first-hand working experience in the naval shipbuilding industry, the author provides transparent criteria for the evaluation of different naval technologies’ strategic value, which other researchers can draw upon as a basis for further research in such diverse fields as International Security Studies, Naval Warfare Studies, Chinese Studies, and International Relations.

Canada's National Security in the Post-9/11 World

Canada's National Security in the Post-9/11 World
Author: David S. McDonough
Publisher: University of Toronto Press
Total Pages: 337
Release: 2012-01-01
Genre: Political Science
ISBN: 1442641355

After the terrorist attacks of 9/11, which targeted the heart of financial and military power in the United States, Canada once again proved its credentials as a key American ally. With the imminent end of its combat role in Afghanistan, however, it is time to take stock of how Canada has adapted to the exigencies of the post-9/11 world and to consider the future directions for its foreign, defence, and security policies. This timely exploration and re-assessment of Canada's approach to strategic affairs offers a diverse set of nuanced, sometimes controversial, and always insightful perspectives on the most pressing security challenges that Canada currently faces. Bringing together noted experts on these issues – including a Canadian Senator, a past Minister of National Defence, former high-level military officers, and top scholars - this collection provides powerful ideas and guidance for the difficult task of formulating an overarching national security strategy.

Ebbing Opportunity: Australia and the US National Technology and Industrial Base

Ebbing Opportunity: Australia and the US National Technology and Industrial Base
Author: Brendan Thomas-Noone
Publisher: United States Studies Centre at the University of Sydney
Total Pages: 23
Release: 2019-11-25
Genre: Political Science
ISBN: 1742104916

The United States’ National Technology and Industrial Base (NTIB) is a congressionally-mandated policy framework that is intended to foster a defence free-trade area among the defence-related research and development sectors of the United States, Canada, Australia and the United Kingdom. To date, however, the NTIB has only managed to facilitate limited bilateral cooperation between some members, falling well short of its goal. The US defence export control regime is one of the biggest barriers to NTIB integration. Specifically, bureaucratic fragmentation, its failure to treat trusted allies differently from other partners and its leaders’ reluctance to attempt politically costly reform are significant barriers to progress. Canberra’s ability to maintain its own competitive military advantage and to serve as an effective ally of the United States in the Indo-Pacific is threatened by real and growing opportunity costs in an age of rapid strategic and technological change that Australia and Australian industry face as a result of slow NTIB implementation. Australian leaders should elevate NTIB progress to the political level and accelerate efforts to make a strategic case in Washington as to why extensive and ambitious implementation of NTIB’s original vision is urgently needed.