Navy Virginia (SSN-774) Class Attack Submarine Procurement: Background and Issues for Congress [March 3, 2015] [open pdf - 2MB]
"The Navy has been procuring Virginia (SSN-774) class nuclear-powered attack submarines since FY1998. The two Virginia-class boats requested for procurement in FY2016 are to be the 23rd and 24th boats in the class. The 10 Virginia-class boats programmed for procurement in FY2014- FY2018 (two per year for five years) are being procured under a multiyear-procurement (MYP) contract. The Navy estimates the combined procurement cost of the two Virginia-class boats requested for procurement in FY2016 at $5,376.9 million or an average of $2,688.4 million each. The boats have received a total of $1,613.5 million in prior-year advance procurement (AP) funding and $416.9 million in prior-year Economic Order Quantity (EOQ) funding. The Navy's proposed FY2016 budget requests the remaining $3,346.4 million needed to complete the boats' estimated combined procurement cost. The Navy's proposed FY2016 budget also requests $1,663.8 million in AP funding and $330.0 million in EOQ funding for Virginia-class boats to be procured in future fiscal years, bringing the total FY2016 funding request for the program (excluding outfitting and post-delivery costs) to $5,340.1 million. The Navy's FY2015 30-year SSN procurement plan, if implemented, would not be sufficient to maintain a force of 48 SSNs consistently over the long run. The Navy projects under that plan that the SSN force would fall below 48 boats starting in FY2025, reach a minimum of 41 boats in FY2028-FY2030, and remain below 48 boats through FY2034. Potential issues for Congress regarding the Virginia-class program include the Virginia-class procurement rate in coming years, particularly in the context of the SSN shortfall projected for FY2025-FY2034 and the larger debate over future U.S. defense strategy and defense spending."
CRS Report for Congress, RL32418
Federation of American Scientists: http://www.fas.org/sgp/crs/index.html