Navy DDG-1000 (DD(X)), CG(X), and LCS Ship Acquisition Programs: Oversight Issues and Options for Congress

Publication Date: August 2006

Publisher: Library of Congress. Congressional Research Service

Author(s):

Research Area: Military and defense

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Abstract:

The Navy wants to procure three new classes of surface combatants -- the DDG-1000 (formerly DD(X)) destroyer, the CG(X) cruiser, and a smaller surface combatant called the Littoral Combat Ship (LCS). The Navy wants to procure 7 DDG-1000s, 19 CG(X)s, and 55 LCSs.

The first two DDG-1000s are to be procured in FY2007, with each ship being split-funded (i.e., incrementally funded) across FY2007 and FY2008. The estimated cost of each ship is $3,291 million, for a total of $6,582 million. The FY2007 budget requests $2,568 million in procurement funding for the two ships. The Navy estimates that the next three DDG-1000s will cost an average of roughly $2.5 billion each. The Navy wants to procure the first CG(X) in FY2011.

The first LCS was procured in FY2005, three more were procured in FY2006, and the Navy's proposed FY2007 budget requests $521 million to procure two additional ships. The Navy's FY2007 unfunded requirements list (URL) -- its "wish list" of items desired but not included in the FY2007 budget -- includes an additional two LCSs for an additional $520 million.

The DDG-1000/CG(X) and LCS programs raise several oversight issues for Congress, including the affordability of the DDG-1000/CG(X) program and the acquisition strategies for both programs.

FY2007 Defense Appropriations Bill (H.R. 5631). The House Appropriations Committee, in its report (H.Rept. 109-504 of June 16, 2006) on H.R. 5631, recommends approving the Navy's request for FY2007 DDG-1000 procurement funding to fully fund the procurement of one DDG-1000 rather than partially fund the procurement of the first two DDG-1000s. The report recommends approval of the $521 million requested for procuring two LCSs (page 141) and recommends increasing funding for LCS research and development work by $12.6 million above the requested amount (pages 239 and 250).

The Senate Appropriations Committee, in its report (S.Rept. 109-292 of July 25, 2006) on H.R. 5631, recommends approving the Navy's request for FY2007 procurement funding for the first two DDG-1000s (page 115), and increasing the Navy's request for FY2007 DDG-1000 research and development funding by a net $1 million (pages 179 and 186). The report recommends funding the procurement of one LCS (rather than the requested two) in FY2007, and rescinding funding (in Section 8043) for one of the three LCSs procured in FY2006 (pages 114, 115-116, and 230-231). The report recommends increasing the FY2007 request for LCS research and development funding by $1.8 million (pages 177 and 185).

This report will be updated as events warrant.