Navy John Lewis (TAO-205) Class Oiler Shipbuilding Program: Background and Issues for Congress [May 30, 2017] [open pdf - 877KB]
"The John Lewis (TAO-205) class oiler shipbuilding program, previously known as the TAO(X) program, is a program to build a new class of 20 fleet oilers for the Navy […] The first ship in the TAO-205 program was funded in FY2016 at a cost of $674.2 million and is scheduled to be delivered to the Navy in November 2020. As part of its proposed FY2018 budget, the Navy is requesting the procurement of the second ship in the class. The Navy estimates the second ship's procurement cost at $539.1 million. Much of the difference in procurement cost between the first ship and the second is due to the fact that the procurement cost of the first ship included the detailed design/nonrecurring engineering (DD/NRE) costs for the class. Incorporating most or all of the DD/NRE cost for a class of ship into the procurement cost of the lead ship in the class is a traditional budgeting practice for Navy shipbuilding programs. The estimated unit procurement costs of the third and subsequent ships in the class are similar to that of the second ship [...] Issues for Congress for FY2018 regarding the TAO-205 program include the following:  whether to approve, reject, or modify the Navy's requests for procurement funding for the second ship and AP funding for the third ship;  whether to accelerate the procurement of TAO-205 class ships by funding the procurement of two TAO-205s rather than one in FY2018; and  whether to encourage or direct the Navy to build TAO-205s with more ship self-defense equipment than currently planned by the Navy. "
CRS Report for Congress, R43546
Federation of American Scientists: http://www.fas.org/sgp/crs/index.html