Navy Virginia Class Attack Submarine Procurement

The Navy has been procuring Virginia (SSN-774) class nuclear-powered attack submarines since FY1998. The two Virginia-class boats requested for procurement in FY2017 are to be the 25 and 26th boats in the class. The 10 Virginia-class boats programmed for procurement in FY2014FY2018 (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 FY2017 at $5,408.9 million, or an average of $2,704.5 million each. The boats have received a total of $1,623.3 million in prior-year advance procurement (AP) funding and $597.6 million in prior-year Economic Order Quantity (EOQ) funding. The Navy's proposed FY2017 budget requests the remaining $3,188.0 million needed to complete the boats' estimated combined procurement cost. The Navy's proposed FY2017 budget also requests $1,767.2 million in AP funding for Virginia-class boats to be procured in future fiscal years, bringing the total FY2017 funding request for the program (excluding outfitting and post-delivery costs) to $4,955.2 million. The Navy's proposed FY2017 budget also requests $97.9 million in research and development funding for the Virginia Payload Module (VPM). The funding is contained in Program Element (PE) 0604580N, entitled Virginia Payload Module (VPM), which is line 128 in the Navy's FY2017 research and development account. The Navy plans to build some of the Virginia-class boats procured in FY2019 and subsequent years with an additional mid-body section, called the Virginia Payload Module (VPM), that contains four large-diameter, vertical launch tubes that the boats would use to store and fire additional Tomahawk cruise missiles or other payloads, such as large-diameter unmanned underwater vehicles (UUVs). The Navy's FY2017 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 the plan that the SSN force would fall below 48 boats starting in FY2025, reach a minimum of 41 boats in FY2029, and remain below 48 boats through FY2036. Potential issues for Congress regarding the Virginia-class program include whether to procure an additional Virginia-class boat in FY2021 and, more generally, the Virginia-class procurement rate in coming years.

The Navy has been procuring Virginia (SSN-774) class nuclear-powered attack submarines since FY1998. The two Virginia-class boats requested for procurement in FY2017 are to be the 25th and 26th 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 FY2017 at $5,408.9 million, or an average of $2,704.5 million each. The boats have received a total of $1,623.3 million in prior-year advance procurement (AP) funding and $597.6 million in prior-year Economic Order Quantity (EOQ) funding. The Navy's proposed FY2017 budget requests the remaining $3,188.0 million needed to complete the boats' estimated combined procurement cost. The Navy's proposed FY2017 budget also requests $1,767.2 million in AP funding for Virginia-class boats to be procured in future fiscal years, bringing the total FY2017 funding request for the program (excluding outfitting and post-delivery costs) to $4,955.2 million. The Navy's proposed FY2017 budget also requests $97.9 million in research and development funding for the Virginia Payload Module (VPM). The funding is contained in Program Element (PE) 0604580N, entitled Virginia Payload Module (VPM), which is line 128 in the Navy's FY2017 research and development account. The Navy plans to build some of the Virginia-class boats procured in FY2019 and subsequent years with an additional mid-body section, called the Virginia Payload Module (VPM), that contains four large-diameter, vertical launch tubes that the boats would use to store and fire additional Tomahawk cruise missiles or other payloads, such as large-diameter unmanned underwater vehicles (UUVs). The Navy's FY2017 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 the plan that the SSN force would fall below 48 boats starting in FY2025, reach a minimum of 41 boats in FY2029, and remain below 48 boats through FY2036. Potential issues for Congress regarding the Virginia-class program include whether to procure an additional Virginia-class boat in FY2021 and, more generally, the Virginia-class procurement rate in coming years.

The Navy has been procuring Virginia (SSN-774) class nuclear-powered attack submarines since FY1998. The two Virginia-class boats requested for procurement in FY2018 are to be the 27th and 28th 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 FY2018 at $5,532.7 million, or an average of $2,766.4 million each. The boats have received a total of $1,647.0 million in prior-year "regular" advance procurement (AP) funding and $580.4 million in prior-year Economic Order Quantity (EOQ) AP funding. The Navy's proposed FY2018 budget requests the remaining $3,305.3 million needed to complete the boats' estimated combined procurement cost. The Navy's proposed FY2018 budget also requests $1,920.6 million in AP funding for Virginia-class boats to be procured in future fiscal years, bringing the total FY2018 funding request for the program (excluding outfitting and post-delivery costs) to $5,225.9 million. The Navy plans to build one of the two Virginia-class boats scheduled to be procured in FY2019, and all Virginia-class boats procured in FY2020 and subsequent years, with an additional mid-body section, called the Virginia Payload Module (VPM), that contains four large-diameter, vertical launch tubes that the boats would use to store and fire additional Tomahawk cruise missiles or other payloads, such as large-diameter unmanned underwater vehicles (UUVs). The Navy's proposed FY2018 budget requests $72.9 million in research and development funding for the Virginia Payload Module (VPM). The Navy's previous force-level goal was to achieve and maintain a 308-ship fleet, including 48 SSNs. The Navy's new force-level goal, released in December 2015, is to achieve and maintain a 355-ship fleet, including 66 SSNs. The Navy's FY2017 30-year shipbuilding plan was developed in association with the previous 308-ship force-level goal, and consequently does not include enough SSNs to achieve and maintain a force of 66 SSNs. CRS estimates that 19 SSNs would need to be added to the FY2017 30-year shipbuilding plan to achieve and maintain a 66-boat SSN force. The Congressional Budget Office (CBO) estimates that 16 to 19 would need to be added to the FY2017 30-year shipbuilding plan to achieve and maintain a 66-boat SSN force. Taking into account the capacity of the submarine construction industrial base and the Navy's current plan to also build Columbia (SSBN-826) class ballistic missile submarines in coming years, CRS and CBO estimate that the earliest a 66-boat SSN force could be achieved might be the mid- to late 2030s. From FY2025 to FY2036, the number of SSNs is projected to experience a dip or valley, reaching a minimum of 41 boats (i.e., 25 boats, or about 38%, less than the 66-boat force-level goal) in FY2029. This projected valley is a consequence of having procured a relatively small number of SSNs during the 1990s, in the early years of the post-Cold War era. Some observers are concerned that this projected valley in SSN force levels could lead to a period of heightened operational strain for the SSN force, and perhaps a period of weakened conventional deterrence against potential adversaries. The projected SSN valley was first identified by CRS in 1995 and has been discussed in CRS reports and testimony every year since then. The Navy has been exploring options for mitigating the projected valley. Procuring additional Virginia-class boats in the near term is one of those options. In that connection, the Navy has expressed interest in procuring an additional Virginia-class boat in FY2021. Congress also has the option of funding the procurement of one or more additional Virginia-class boats in FY2018-FY2020.

The Navy has been procuring Virginia (SSN-774) class nuclear-powered attack submarines since FY1998. The two Virginia-class boats requested for procurement in FY2015 are to be the 21st and 22nd 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 FY2015 at $5,288.7 million or an average of $2,644.3 million each. The boats have received a total of $1,577.0 million in prior-year advance procurement (AP) funding and $158.4 million in prior-year Economic Order Quantity (EOQ) funding. The Navy's proposed FY2015 budget requests the remaining $3,553.3 million needed to complete the boats' estimated combined procurement cost. The Navy's proposed FY2015 budget also requests $1,649.5 in AP funding and $680.8 million in EOQ funding for Virginia-class boats to be procured in future fiscal years, bringing the total FY2015 funding request for the program (excluding outfitting and post-delivery costs) to $5,883.6 million. EOQ funding is a common feature in the initial years of an MYP contract. The Navy's proposed FY2015 budget also requests $132.6 million in research and development funding for the Virginia Payload Module (VPM). The funding is contained in Program Element (PE) 0604580N, entitled Virginia Payload Module (VPM), which is line 123 in the Navy's FY2015 research and development account. DOD and the Navy are considering whether to build Virginia-class boats procured in FY2019 and subsequent years with an additional mid-body section, called the Virginia Payload Module (VPM), that contains four large-diameter, vertical launch tubes that the boats would use to store and fire additional Tomahawk cruise missiles or other payloads, such as large-diameter unmanned underwater vehicles (UUVs). The Navy estimates that building Virginia-class boats with the VPM might increase their unit procurement costs by about 13%. It would increase the total number of torpedo-sized weapons (such as Tomahawks) that they could carry by about 76%. 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.

This report provides background information and issues for Congress on the Virginia-class nuclear-powered attack submarine (SSN) program. The Navy's proposed FY2014 budget requested $5,285.3 million in procurement and advance procurement (AP) funding for the program. Decisions that Congress makes on procurement of Virginia-class boats could substantially affect U.S. Navy capabilities and funding requirements, and the U.S. shipbuilding industrial base.

Contents: (1) Intro.; (2) Background: Types of Sub¿s. in the U.S. Navy; Attack Sub. Force Levels; Virginia (SSN-774) Class Program; Past and Planned Procurement; Changes in Planned Procurement Rates; Joint Production Arrangement; Cost-Reduction Effort; Sub Construction Industrial Base; Design and Engin. (D&E) Portion; Projected SSN Shortfall; Navy Study on Options for Mitigating Projected Shortfall; (3) Issues for Congress: 48-Boat Force-Level Goal and Planned SSN Procurement; (4) Options for Congress; (5) Legislative Activity for FY 2010. Appendices: Past SSN Force-Level Goals; Views Regarding 48-Boat SSN Force-Level Goal; Options for Funding SSNs; Maintaining Sub. D&E Base. A print on demand pub.

The Navy's proposed FY2009 budget requests $2,107.0 million to complete the procurement funding for an 11th Virginia (SSN-774) class nuclear-powered attack submarine (SSN). This boat has already received $756.0 million in prior-year advance procurement funding. The Navy's proposed FY2009 budget also requests $719.8 million in advance procurement funding for Virginia-class boats to be procured in future fiscal years, and $596.8 million in additional procurement funding for economic order quantity (EOQ) purchases of key components for eight Virginia-class submarines (the 11th boat and seven others) that are to be procured under a multiyear procurement (MYP) arrangement during the 5-year period FY2009-FY2013. As part of its action on the Navy's FY2008 shipbuilding budget, Congress added $588 million in advance procurement funding for an additional Virginia class submarine to be procured in a year prior to FY2012. The Navy, as part of its proposed FY2009 budget, included this additional submarine in its shipbuilding plan and scheduled it to be fully funded in FY2011. One issue for Congress for FY2009 is whether to accelerate the full funding of the newly added submarine from FY2011 to FY2010 or FY2009, so as to facilitate a follow-on option of funding an additional one or two Virginia-class submarines in FY2010 and/or FY2011. Supporters of this option could argue that it would mitigate a projected seven-boat shortfall in SSNs. Opponents could argue that it would place added pressure on the Navy's FY2009 budget and/or its FY2010 budget, making it more difficult for the Navy to fund other priorities in those years. This report will be updated as events warrant.

The U.S. Navy operates three types of submarines- nuclear-powered ballistic missile submarines (SSBNs), nuclear-powered cruise missile and special operations forces (SOF) submarines (SSGNs), and nuclear-powered attack submarines (SSNs). This book provides background information and issues for Congress on the Virginia-class SSN program. The Navy's proposed FY2016 budget requests $5,340.1 million in procurement, advance procurement (AP), and Economic Order Quantity (EOQ) funding for the program. Decisions that Congress makes on procurement of Virginia-class boats could substantially affect U.S. Navy capabilities and funding requirements, and the U.S. shipbuilding industrial base. Furthermore, this book provides background information and potential oversight issues for Congress on the Ohio replacement program (ORP), a program to design and build a new class of 12 ballistic missile submarines (SSBNs) to replace the Navy's current force of 14 Ohio-class SSBNs. The Ohio replacement program is also known as the SSBN(X) program. The Navy wants to procure the first Ohio replacement boat in FY2021, with advance procurement (AP) funding starting in FY2017. The Navy has identified the Ohio replacement program as its top priority program.