Navy John Lewis (TAO-205) Class Oiler Shipbuilding Program: Background and Issues for Congress [October 2, 2017]   [open pdf - 912KB]

"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 primary role of Navy fleet oilers is to transfer fuel to Navy surface ships that are operating at sea, so as to extend the operating endurance of these surface ships and their embarked aircraft. 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."

Report Number:
CRS Report for Congress, R43546
Public Domain
Retrieved From:
Federation of American Scientists: http://www.fas.org/sgp/crs/index.html
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