The future threat, particularly from proliferated ballistic missiles and advanced antiship cruise missiles, can be better addressed by the DDG 51. Modifying the DDG 1000s to support these missions is unaffordable from the Navy's standpoint.
Given the range of missions assigned to the Navy in the future, the technical complexity of the threats we are to face and the relative likelihood we will be called upon to execute these missions, the greatest single threat is the proliferation of advanced ballistic missiles, followed by a burgeoning deep water, quiet diesel submarine capability by potential adversaries.
The future Navy will have to address these threats first and today. The DDG 51 presents more capability in these areas than does the DDG 1000.
Testimony July 31,, 2008, House Armed Services Committee, Vice Admiral Barry McCullough
Like most people, I've
assumed all along the reason for truncating the DDG-1000 was cost. In reviewing the Navy's testimony on July 31 in front of the House, other than indicating the costs of the DDG-51 were known and the DDG-1000 costs were less known, the only time the Navy made cost an issue was in the comment above that the cost to add AAW/BMD to the DDG-1000 is unaffordable.
I was looking through a CRS report out on the DDG-1000 program and noticed an interesting phrase, that the Navy "proposal to build DDG-51s rather than DDG-1000s is intended to be roughly budget-neutral over the period FY2010-FY2015..." I think the implication the Navy is treating this as "budget neutral" is very interesting, because as I look at the numbers, I've begun wondering how "budget neutral" this swap for DDG-51s really is.
InsideDefense was able to obtain some numbers on the DDG-51 proposed change. The OSD request begins the discussion on the decision to truncate the DDG-1000 by telling the Navy to "Provide better arguments as to why the DoN's truncation cost estimates are correct - think the DoN's estimate is too low." That doesn't build much confidence, but upon examination, neither do the numbers.
In thinking how to present a "budget neutral" example of the DDG-1000 trade for DDG-51s, I've come up with the following equation and definitions:
(PLAN A) DDG-1000 + DDG-1000 AAW/BMD SW + HW + DDG-1000 R&D = (PLAN B) DDG51 Restart + FLT IIA + DDG-51 R&D + DDG-1000 R&D for first 3
Requirements for PLAN B:
AMOD
DDG-51 AEGIS SW + HW
Definitions:
(PLAN A) = Plan to build just the 7 DDG-1000s FY10+
(PLAN B) = Plan to build the 3 funded DDG-1000s and DDG-51s FY10+
DDG-1000 = 4 remaining ships FY10 - FY13
DDG-1000 AAW/BMD SW + HW = Raytheon bid to add BMD to DDG-1000
DDG-51 Restart = costs to restart industrial base for DDG-51
FLT IIA = New DDG-51s FLT IIA FY10-FY15
AMOD = AEGIS modernization, part of the new DDG-51s to be built in new purchase
DDG-51 AEGIS SW + HW = Missile Defense Agency funding from FY09 - FY13 to complete ACB12 (AEGIS baseline for new destroyers)
We do not know all of these costs, but we know enough that we can get a feeling for the "budget neutral" aspect of the discussion, and we can get a feel for the unaffordable BMD capability McCullough testified the Navy is worried about as quoted above. According to POM10 documentation available from
InsideDefense (subscription), the planned R&D total for DDG-1000 is from FY10-FY15 is $2065.9
even after the program is truncated at 3 ships. The R&D for DDG-51 is $537.9 million according to the new plan. The following estimates based on the truncated program are also available.
DDG-1000 POR estimate by the Navy (in millions)
FY09 = $2,553.8
FY10 = $2,713.9
FY11 = $2,427.0
FY12 = $2,619.1
FY13 = $2,347.4
Total = $12,661.2
DDG-1000 for equation = $10,107.4 (4 ships Fy10-FY13)
DDG-51 POM10 POR estimate by the Navy (in millions)
FY09 = $0
FY10 = $2081.0
FY11 = $3608.2
FY12 = $2267.1
FY13 = $3775.4
FY14 = $2352.0
FY15 = $2361.1
FLT IIA for equation = $16444.8 (8 ships FY10-FY15)
I also have the following numbers. Dan Smith of Raytheon has used the BMD SW + HW number in numerous media sources. AMOD is a well known program and figure from numerous sources, and MDA is avialable via Presidents FY09 budget numbers.
DDG-1000 AAW/BMD SW + HW = $550 million
AMOD = AEGIS modernization is $1.2 billion FY08 to FY13
AEGIS SW + HW = Missile Defense Agency totals $5.3 billion from FY09 to FY13
Now lets fill in what we can using the equation above:
(PLAN A) DDG-1000 + DDG-1000 AAW/BMD SW + HW + DDG-1000 R&D = (PLAN B) DDG51 Restart + FLT IIA + DDG-51 R&D + DDG-1000 R&D for first 3
(Plan to build just the 7 DDG-1000s FY10+) $10107.4 + $550 million + $2065.9 = (Plan to build the 3 funded DDG-1000s and DDG-51s FY10+) DDG51 Restart + $16444.8 + $537.9 million + $2065.9
(Plan to build just the 7 DDG-1000s FY10+) $12723.3 = (Plan to build the 3 funded DDG-1000s and DDG-51s FY10+) DDG51 Restart + $19048.6
What am I missing here? Oh, wait, let me also account for DDG-51 AMOD and AEGIS SW + HW, because both are
required in order to build the DDG-51 Flight IIA BMD capable destroyers that are replacing the DDG-1000 in the shipbuilding plan, and those costs are $1.2 billion and $5.3 billion respectively.
So according to the Navy's own budget plans to truncate the DDG-1000, as per the
Service POM Briefs and Resulting Actions document dated August 27, 2024 available at
InsideDefense, the FY09 DDG-1000 plan will cost $12723.3 million to finish the last 4 ships, but to cancel those ships and build DDG-51s starting in FY10 it will cost $19048.6 million, plus whatever it costs to restart the DDG-51 program, and even that has
a mandatory requirement of $6.5 billion just for the new DDG-51s to have AEGIS BMD.
So the Navy ignores the mandatory requirement of $6.5 billion to put AEGIS BMD on the DDG-51s they want to buy, but McCullough is telling Congress in testimony how unaffordable it is to modify the DDG-1000 to support BMD, when according to Dan Smith of Raytheon that cost is $550 million? BTW, I confirmed that number with the Navy folks who know, the number is actually $558.6 million for anyone who wants to confirm my numbers are legit.
I'm adding in the cost of BMD for the DDG-1000s here in the equation as cited, and I still must be missing something. The new plan basically builds 4 more Burkes for an extra $6325.3 million + the costs to restart the DDG-51 line, but if the Navy's own cost estimates are correct, the Navy could build 3 DDG-1000s with all the AAW/BMD for almost the same price as the DDG-51 estimate based on the Navy's own budget numbers, meaning either 7 or 8 more DDGs through FY15, and the 7 DDG-1000s would be much more capable with the DBR/VSR than the 8 DDG-51s with a SPY-D upgrade.
With the new plan, even the cost reasoning for truncating the DDG-1000 doesn't make much sense. If the Navy numbers are accurate, like they continue to claim, how is this plan smarter than the original DDG-1000 plan? As the CRS reports by Ronald O'Rourke have made clear the last seveal months, the DDG-1000 plan is better for the shipyards, so why is this new DDG-51 plan that creates instability in shipbuilding at greater cost better than the old plan?
Am I the only American taxpayer wondering WTF? What am I missing here?
Update: Scott B rocks, and helped clean up some of my numbers. I have adjusted the numbers above, and it still doesn't make sense.