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FEDERALhearing transcript
High Impact

Hearing on Navy Shipbuilding Costs and Efficiency

Original title: [H.A.S.C. No. 114-69]ACQUISITION EFFICIENCY AND THE FUTURE NAVY FORCE

January 1, 2016

Navyshipbuildingdefense spendingacquisition reformbudgetprocurement

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The Frame

What this does

The committee is evaluating ways to save up to 10% on multi-billion dollar Navy shipbuilding programs, including the $100 billion Ohio Replacement Program, by changing how the government contracts for these vessels.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

U.S. Navy

The Navy's shipbuilding procurement processes and budget planning are subject to the oversight and potential policy changes discussed by the subcommittee.

Taxpayers

The efficiency of defense procurement directly impacts the total cost of national defense programs funded by federal tax revenue.

Defense Industrial Base

Shipbuilders and contractors are affected by changes in procurement contract structures, such as multiyear agreements.

What changed

Last recorded activity January 1, 2016.

What's next

Next step not available in the current record.

Summary

The House Subcommittee on Seapower and Projection Forces held a hearing to discuss strategies for reducing the cost of Navy shipbuilding. The committee explored using existing legislative tools, such as contracts, to achieve potential savings on major programs like the Ohio Replacement Program.

Why It Matters

The committee is evaluating ways to save up to 10% on multi-billion dollar Navy shipbuilding programs, including the $100 billion Ohio Replacement Program, by changing how the government contracts for these vessels.

Key Facts

  • The subcommittee is investigating methods to reduce Navy shipbuilding costs by approximately 10%.
  • The Ohio Replacement Program is estimated to cost $100 billion, with potential savings of $10 billion if procurement efficiencies are realized.
  • Chairman Forbes advocates for increased use of multiyear procurement contracts and incremental funding to stabilize the industrial base.
  • The Navy's current 30-year shipbuilding plan aims for a 308-ship fleet by 2022.
  • The hearing featured testimony from experts at the Congressional Budget Office (CBO) and the Congressional Research Service (CRS).
  • The subcommittee chairman expressed skepticism regarding the funding assumptions underlying the Navy's 30-year shipbuilding plan.

Frequently Asked Questions

What is the goal of this hearing?
The goal is to discuss how the Navy can procure ships more efficiently to save taxpayer money, specifically by using different contracting methods.
What is the 'Ohio Replacement Program'?
It is a major Navy shipbuilding program with an estimated total cost of $100 billion.
How does the committee propose to save money on ships?
By utilizing legislative tools like contracts and to achieve economies of scale.

News Coverage

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Sponsors

Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift90% confidence

Focus on Procurement Efficiency

The committee is shifting focus from structural DOD reform to utilizing existing legislative contracting tools to achieve immediate cost savings.

J. Randy ForbesNational Sea-Based Deterrence Fund

Connected Entities

personFrank Kendall“Under Secretary of Defense for Acquisition, Technology, and Logistics”Map →
organizationNational Sea-Based Deterrence Fund“Fund authorized to use specific procurement tools”Map →
personJoe Courtney“Ranking Member of the Subcommittee”Map →
otherOhio Replacement Program“A major shipbuilding program projected to cost $100 billion”Map →
personEric J. Labs“Senior Analyst for Naval Forces and Weapons at the CBO”Map →
personJ. Randy Forbes“Chairman of the Subcommittee on Seapower and Projection Forces”Map →
personRonald O'Rourke“Specialist in Naval Affairs at the CRS”Map →

Sources

Open source document

www.govinfo.gov

Analysis Score

0–100
  • Significance75
    How much this matters to a regular citizen
  • Controversy20
    Intensity of disagreement among stakeholders
  • Entertainment10
    Compellingness for a non-policy-wonk reader
  • Buzz15
    Current news / social attention level

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