Waste of the Day: New Ships Could Cost Billions More Than Navy Expects
Topline: The Congressional Budget Office estimates that an upcoming shipbuilding project will cost $6.2 billion to $7.8 billion, roughly two to three times more than the Navy claimed in its plan submitted to Congress.
Key facts: The CBO’s estimate assumes the Navy will build 18 medium landing ships. Military officials have said they might buy up to 35 boats, which the CBO says could cost up to $15 billion.
The boats will be used to deploy Marine Corps soldiers and missiles in the Western Pacific.
The Navy estimated that each ship will cost $150 million, but the CBO predicts they will cost up to $430 million each.
The Navy is not even sure how much the boats will weigh, which is why the CBO provided a broad price estimate.
The CBO said calculating the estimate is a “challenge” because the Navy has not built many similar boats in the past. It did not explain why the Navy’s estimate is so much lower.
Despite the high cost, the ships are not expected to have the strong hull and complete safety features of a typical military boat. That would cost an extra $2 billion to $3 billion.
The Navy has been spending money on research for the ships since 2021 but none has been built yet. They said the first boat would arrive in 2023, but it’s been delayed to 2025.
This year’s budget request contains $268 million for the program.
Critical quote: “Many facets of the program remain uncertain, such as the number of ships the Navy wants to buy, as well as the design and capabilities of the ship,” the CBO wrote. “Equally uncertain is the overall cost of the program, because the Navy’s estimates have varied widely in its last three shipbuilding plans and budget submissions.”
Summary: The Pentagon’s weapons projects often take more time and money to complete than expected. It’s important that projections are not flawed before development even begins.
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