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Selected Acquisition Report (SAR) 



RCS: DD-A&T(Q&A)823-223 



CVN 78 Gerald R. Ford Class Nuclear Aircraft Carrier (CVN 78) 

As of FY 2017 President's Budget 

Defense Acquisition Management 
Information Retrieval 
(DAMIR) 


March 21,2016 
17:17:44 


UNCLASSIFIED 



CVN 78 


December 2015 SAR 


Table of Contents 

Common Acronyms and Abbreviations for MDAP Programs 3 

Program Information 5 

Responsible Office 5 

References 5 

Mission and Description 6 

Executive Summary 7 

Threshold Breaches 9 

Schedule 11 

Performance 15 

Track to Budget 18 

Cost and Funding 21 

Low Rate Initial Production 46 

Foreign Military Sales 47 

Nuclear Costs 48 

Unit Cost 49 

Cost Variance 55 

Contracts 62 

Deliveries and Expenditures 67 

Operating and Support Cost 68 


March 21,2016 
17:17:44 


UNCLASSIFIED 


2 




CVN 78 


December 2015 SAR 


Common Acronyms and Abbreviations for MDAP Programs 

Acq O&M - Acquisition-Related Operations and Maintenance 

ACAT - Acquisition Category 

ADM - Acquisition Decision Memorandum 

APB - Acquisition Program Baseline 

APPN - Appropriation 

APUC - Average Procurement Unit Cost 

$B - Billions of Dollars 

BA - Budget Authority/Budget Activity 

Blk- Block 

BY - Base Year 

CAPE - Cost Assessment and Program Evaluation 

CARD - Cost Analysis Requirements Description 

CDD - Capability Development Document 

CLIN - Contract Line Item Number 

CPD - Capability Production Document 

CY - Calendar Year 

DAB - Defense Acquisition Board 

DAE - Defense Acquisition Executive 

DAMIR - Defense Acquisition Management Information Retrieval 

DoD - Department of Defense 

DSN - Defense Switched Network 

EMD - Engineering and Manufacturing Development 

EVM - Earned Value Management 

FOC - Full Operational Capability 

FMS - Foreign Military Sales 

FRP - Full Rate Production 

FY - Fiscal Year 

FYDP - Future Years Defense Program 
ICE - Independent Cost Estimate 
IOC - Initial Operational Capability 
Inc - Increment 

JROC - Joint Requirements Oversight Council 

$K - Thousands of Dollars 

KPP - Key Performance Parameter 

LRIP - Low Rate Initial Production 

$M - Millions of Dollars 

MDA - Milestone Decision Authority 

MDAP - Major Defense Acquisition Program 

MILCON - Military Construction 

N/A - Not Applicable 

O&M - Operations and Maintenance 

ORD - Operational Requirements Document 

OSD - Office of the Secretary of Defense 

O&S - Operating and Support 

PAUC - Program Acquisition Unit Cost 


March 21,2016 
17:17:44 


UNCLASSIFIED 


3 




CVN 78 


December 2015 SAR 


PB - President’s Budget 

PE - Program Element 

PEO - Program Executive Officer 

PM - Program Manager 

POE - Program Office Estimate 

RDT&E - Research, Development, Test, and Evaluation 

SAR - Selected Acquisition Report 

SCP - Service Cost Position 

TBD - To Be Determined 

TY - Then Year 

UCR - Unit Cost Reporting 

U.S. - United States 

USD(AT&L) - Under Secretary of Defense (Acquisition, Technology and Logistics) 


March 21,2016 
17:17:44 


UNCLASSIFIED 


4 




CVN 78 


December 2015 SAR 


Program Information 


Program Name 

CVN 78 Gerald R. Ford Class Nuclear Aircraft Carrier (CVN 78) 


DoD Component 

Navy 


Responsible Office 

CAPT Chris Meyer 

Program Executive Office (PEO) Aircraft Carriers 
PMS 378 

614 Sicard Street SE Stop 7007 
Washington, DC 20376-7007 


Phone: 

Fax: 

DSN Phone: 
DSN Fax: 

Date Assigned: 


202-781-3969 
202-781-4684 
326-3969 
326-4684 
June 9, 2011 


chris.meyer(a)navv.mil 


References 

CVN 78 

SAR Baseline (Development Estimate) 

Defense Acquisition Executive (DAE) Approved Acquisition Program Baseline (APB) dated April 23, 2004 

Approved APB 

Defense Acquisition Executive (DAE) Approved Acquisition Program Baseline (APB) dated April 2, 2013 

EMALS 

SAR Baseline (Development Estimate) 

Defense Acquisition Executive (DAE) Approved Acquisition Program Baseline (APB) dated April 23, 2004 

Approved APB 

Defense Acquisition Executive (DAE) Approved Acquisition Program Baseline (APB) dated April 2, 2013 


March 21,2016 
17:17:44 


UNCLASSIFIED 


5 


















CVN 78 


December 2015 SAR 


Mission and Description 

The CVN 78 Gerald R. Ford Class Nuclear Aircraft Carrier (CVN 78) is the planned successor to the NIMITZ-class (CVN 68) 
aircraft carrier. The CVN 78 mission is to provide credible, sustainable, independent forward presence during peacetime 
without access to land bases; operate as the cornerstone of a joint and/or allied maritime expeditionary force in response to 
crisis; and carry the war to the enemy through joint multi-mission offensive operations by: (a) being able to operate and 
support aircraft in attacks on enemy forces ashore, afloat, or submerged independent of forward-based land facilities, (b) 
protecting friendly forces from enemy attack through the establishment and maintenance of battle space dominance 
independent of forward-based land facilities, and (c) engaging in sustained operations in support of the United States and its 
allies independent of forward-based land facilities. 

The CVN 78 Class Aircraft Carrier program includes major efforts for Nuclear Propulsion/Electric Plant 
Design, Electromagnetic Aircraft Launching System (EMALS) and all electric auxiliary systems. Additional design features 
and new technologies have been added, including a new/enlarged flight deck, improved weapons handling capabilities, and 
improved survivability. 


March 21,2016 
17:17:44 


UNCLASSIFIED 


6 




CVN 78 


December 2015 SAR 


Executive Summary 


As of February 2016, the CVN 78 Class design is complete and on the lead ship, GERALD R. FORD (CVN 78), production 
is 97% complete. The Navy and shipbuilder are focused on activity necessary to finish construction, complete the test 
program, and deliver the ship. During this past year, the Initial Light Off of Dual Band Radar (DBR) began in May 2015. 

Electromagnetic Aircraft Launching System (EMALS) shipboard catapult testing commenced on schedule in June 2015 and 
has completed 109 dead-load launches on the two bow catapults. The Advanced Arresting Gear (AAG) shipboard test 
program commenced July 18, 2015. The crew moved aboard as scheduled in August 2015. As of February 1,2016, the 
shipbuilder has turned over 93% of compartments to the crew, and 80% of the overall shipboard testing has been 
completed. 

With 3% of the production effort to go on CVN 78, the principal risk remains completing the shipboard test program and in 
particular, the test programs for concurrently developed systems, including EMALS, AAG and DBR. During EMALS testing 
in October 2015, the EMALS Prime Power Interface Sub System Transformer/Rectifier (T/R) #3 failed. The Navy has 
replaced the T/R with a spare, and dead-load testing has resumed. As of late February 2016, nine dead-load tests are 
complete. DBR testing is progressing. All three Multi-Function Radar arrays have been successfully energized at high 
power. The shipboard construction and test efforts for AAG are behind schedule due to delays in system development. 
Performance Testing was suspended at the AAG land based test site for approximately two years to investigate and correct 
critical design issues with major AAG components. System level installation and checkout testing is projected to complete 
in time to support first aircraft operations in Fall 2016. The Navy is monitoring the land based testing and software 
development efforts closely to ensure system level installation and checkout testing is complete in time to support first 
aircraft operations in Fall 2016. 

Just as we have experienced learning on the design and construction of this first of class carrier, we are also experiencing 
learning during the testing phase. Reasonable time frames were allocated to complete the initial testing, but the 
compounding problems of first of class systems with first of class integration testing have taken longer than originally 
planned. Shipboard testing progress to date has been slower than anticipated. As a result, sea trials are expected to 
commence June 2016, and delivery is expected in late August/early September 2016. The Navy expects no schedule delay 
to CVN 78 deployability due to the sea trials delay and is managing these schedule delays within the $12,887M cost cap. 

CVN 78 is the numerical replacement for USS ENTERPRISE (CVN 65), inactivated on December 1,2012. Upon delivery of 
CVN 78, the Navy carrier force will return to 11 ships as required by 10 U.S.C. 5062(b). 

The Navy will conduct Full Ship Shock Trials (FSST) on CVN 78 prior to deployment in accordance with the ADM signed by 
USD(AT&L) on August 7, 2015. FSST will be conducted in FY 2019 following the completion of CVN 78 component shock 
qualification in FY 2016-FY 2018. Following FSST, CVN 78 will enter its scheduled maintenance availability and required 
training workups prior to being deployment ready in 2021. 

On June 5, 2015, the Navy awarded to Fluntington Ingalls Industries - Newport News Shipbuilding a Fixed Price Incentive 
Firm target contract in the amount of $3.35B for the JOFIN F. KENNEDY (CVN 79) Detail Design & Construction effort. 
Additionally, a $941M modification to the Construction Preparation contract was awarded the same day. This modification 
included the remaining component and steel fabrication and selected construction unit assemblies already underway where 
proven performance results were available. Keeping like work on one contract reduces the cost of contract administration, 
enables better procurement oversight, and avoids potential errors in tracking workers' time charges for similar work scope 
on two separate contracts. An Integrated Baseline Review was conducted in January 2016. 

The keel for CVN 79 was laid into the graving dock on August 22, 2015. CVN 79 is the force structure replacement for USS 
NIMITZ (CVN 68), which is scheduled for inactivation in 2025. 

With 16.8% constructed based on total production hours, the shipbuilder is on track to achieve the negotiated 18% 
production hour reduction on CVN 79. 


March 21,2016 
17:17:44 


UNCLASSIFIED 


7 




CVN 78 


December 2015 SAR 


For CVN 79, the Navy has implemented a two-phase acquisition plan which will allow the basic ship to be constructed and 
tested in the most efficient manner by the shipbuilder (Phase I) while enabling select ship systems and compartments to be 
completed in Phase II, where the work can be completed more affordably through competition or the use of skilled 
installation teams. The two-phase strategy for CVN 79 capitalizes on schedule flexibility to deliver the ship at the lowest cost 
and enables the Navy to procure and install at the latest date possible shipboard electronics systems which otherwise 
would be subject to obsolescence prior to CVN 79's first deployment in 2027. All costs for both Phase I and Phase II are 
included within the CVN 79 end cost and are accounted for within the cost cap. 

The FY 2017 PB submission for ENTERPRISE (CVN 80) is $12.9B, $572M below the FY 2016 PB submission, and $974M 
below the FY 2015 PB submission. The Navy continues to seek out and implement cost reduction opportunities. To that 
end, Navy has established a Ford Class Design for Affordability RDT&E investment for the identification and development of 
initiatives to reduce construction costs. 

As documented in the April 28, 2015 ADM, the USD(AT&L) will conduct annual in-process review DABs of the CVN 78 
Class Program. The Navy and USD(AT&L) remain in discussions about the optimum timing for the program's Milestone C 
review. 

Development and ship integration efforts for EMALS continue as planned. The System Development and Demonstration 
program is 99% complete. Land-based aircraft compatibility testing in Lakehurst, NJ completed in April 2014 and shipboard 
testing with dead-loads started in June 2015. The Lakehurst site will remain operational through 2017 to support shipboard 
testing, the correction of deficiencies, CVN 78 crew training, a maintainability demonstration, and logistics product 
development which is currently 81.5% complete. The delivery of EMALS hardware to CVN 78 is 100% complete. Shipboard 
commissioning began in August 2014 and will continue through 2016. 

The EMALS CVN 79 production shipset contract was awarded as an Undefinitized Contract Action on June 12, 2015. Final 
contract definitization is planned for 3Q FY 2016. 

There are no significant software-related issues with this program at this time. 


March 21,2016 
17:17:44 


UNCLASSIFIED 


8 




CVN 78 


December 2015 SAR 


Threshold Breaches 

CVN 78 


APB Breaches 


Explanation of Breach 


Schedule 

Performance 

Cost RDT&E 

Procurement 
MILCON 
Acq O&M 

O&S Cost 

Unit Cost PAUC 

APUC 


W 

r 

r 

r 

r 

r 

r 

r 

r 


Nunn-McCurdy Breaches 


Current UCR Baseline 

PAUC 

None 

APUC 

None 

Original UCR Baseline 

PAUC 

None 

APUC 

None 


EMALS 


APB Breaches 

Schedule 


|7 

Performance 


r 

Cost 

RDT&E 

17 


Procurement 

r 


MILCON 

□ 


Acq O&M 

□ 

O&S Cost 


r 

Unit Cost 

PAUC 

r 


APUC 

□ 

Nunn-McCurdy Breaches 


Current UCR Baseline 


Shipboard testing progress to date has been slower than anticipated. 
As a result sea trials are expected to commence on June 30, 2016. 
The shipboard testing delay has resulted in a delay to Combat 
Systems Trial Rehearsal which is now planned for May 2016. The 
delay in sea trials has resulted in a subsequent delay to CVN 78 
Delivery and IOC, which are now planned for September 2016 and 
October 2017, respectively. 

Further, as the Navy has addressed concerns expressed by the 
Government Accountability Office and the Director of Operational 
Test and Evaluation (D,OT&E) regarding the amount of overlap 
between Developmental Testing (DT) and Operational Testing, a 
realignment of the post-delivery test and trial period has resulted in a 
delay to Initial Operational Test and Evaluation (IOT&E) and Platform- 
Level Integration DT Period Complete. IOT&E Start, Platform-Level 
Integration DT Period Complete, and IOT&E Complete have been 
rescheduled to May 2018, November 2018, and April 2020, 
respectively. 

CVN 79 DAB Program Review and Start Construction event 
breaches were previously reported in the December 2014 SAR. 

The Program Office is currently developing a Program Deviation 
Report (PDR) to address these changes and an APB update will be 
submitted at a future date. 


Explanation of Breach 


EMALS will deliver and complete IOC as a component to the ship. 

The ship delivery and IOC have shifted to September 2016 and 
October 2017, respectively. 

Additionally, EMALS will reach IOT&E Start, Platform-Level Integration 
DT Period Complete, and IOT&E Complete with the ship and have 
been rescheduled to May 2018, November 2018, and April 2020, 
respectively. 

The cost breach to RDT&E was previously reported in the December 
2014 SAR for EMALS in the amount of $5.5M. The program 
anticipates this breach to increase to approximately $61.6M. This 
cost breach is the result of additional costs associated with 
maintaining the EMALS shore based test site and continued land 


March 21,2016 
17:17:44 


UNCLASSIFIED 


9 















CVN 78 


December 2015 SAR 


PAUC 

APUC 

Original UCR Baseline 

PAUC 

APUC 


None based testing efforts. 

None The Program Office is currently developing a PDR to address these 
changes and an APB update will be submitted at a future date. 

None 

None 


March 21,2016 
17:17:44 


UNCLASSIFIED 


10 




CVN 78 


December 2015 SAR 


Schedule 


• SAR Baseline Current Objective 


■ APB Objective and Threshold ♦ Current Estimate 


♦ Current Estimate (Breach) 


■04 ’06 '08 '10 

"05 V7 '09 '11 


CVN 78 

CVN 78 

Early Operational Assess... 
Milestone B 

DAB Program Review (PR) 
Start Construction 
Launch 
Delivery 
OPEVAL 
Start 

Complete 

TECHEVAL 

Combat Systems Trial Re... 
Initial Operational Capabil... 
Follow-on Ship (CVN 79) 

DAB Program Review 
Start Construction 
Delivery 

Follow-on Ship (CVN 80) 

DAB Program Review 
IOT&E 
IOT&E Start 
IOT&E Complete 
Milestone C 

Platform-Level Integration D... 


M 


EMALS 

EMALS 

Delivery (with Ship) 

IOC 
IOT&E 
IOT&E Start 
IOT&E Complete 
Platform-Level Integration... 



March 21,2016 
17:17:44 


UNCLASSIFIED 


11 





























CVN 78 


December 2015 SAR 


CVN 78 


Schedule Events 

Events 

SAR Baseline 
Development 
Estimate 

Current APB 
Development 
Objective/Threshold 

Current 

Estimate 

CVN 78 

Early Operational Assessment 

Mar 2004 

Mar 2004 

Sep 2004 

Mar 2004 

Milestone B 

Apr 2004 

Apr 2004 

Oct 2004 

Apr 2004 

DAB Program Review (PR) 

Jan 2006 

Jan 2008 

Jul 2008 

Jul 2008 

Start Construction 

Jan 2007 

Mar 2008 

Sep 2008 

Sep 2008 

Launch 

Nov 2012 

Nov 2013 

May 2014 

Nov 2013 

Delivery 

Sep 2014 

Sep 2015 

Mar 2016 

Sep 2016 1 

OPEVAL 



Start 

Oct 2014 

N/A 

N/A 

N/A 

Complete 

Sep 2017 

N/A 

N/A 

N/A 

TECHEVAL 

Feb 2015 

N/A 

N/A 

N/A 

Combat Systems Trial Rehearsal (CSTR) 

Jul 2014 

Jul 2015 

Jan 2016 

May 2016 1 

Initial Operational Capability (IOC) 

Sep 2015 

Sep 2016 

Mar 2017 

Oct 2017’ 

Follow-on Ship (CVN 79) 


DAB Program Review 

Jan 2010 

Apr 2013 

Oct 2013 

Apr 2015 1 

Start Construction 

Jan 2011 

Aug 2013 

Feb 2014 

Jun 2015 1 

Delivery 

Sep 2018 

Sep 2022 

Mar 2023 

Jun 2022 

Follow-on Ship (CVN 80) 


DAB Program Review 

Jan 2015 

Sep 2017 

Mar 2018 

Oct 2017 

IOT&E 


IOT&E Start 

N/A 

Feb 2017 

Aug 2017 

May 2018 1 

IOT&E Complete 

N/A 

Aug 2019 

Feb 2020 

Apr 2020 1 

Milestone C 

Mar 2017 

Sep 2019 

Mar 2020 

Oct 2017 

Platform-Level Integration DT Period Complete 

N/A 

Sep 2017 

Mar 2018 

Nov 2018 1 


(Ch-1) 


(Ch-2) 

(Ch-3) 


(Ch-4) 


(Ch-5) 

(Ch-6) 

(Ch-7) 

(Ch-8) 


1 APB Breach 


March 21,2016 
17:17:44 


UNCLASSIFIED 


12 













































CVN 78 


December 2015 SAR 


Change Explanations 

(Ch-1) The current estimate for CVN 78 Delivery is revised from March 2016 to September 2016 to reflect delays 
associated with the shipboard testing and integration schedule. 

(Ch-2) The current estimate for CSTR is rescheduled from November 2015 to May 2016 to reflect delays associated with 
the shipboard testing and integration schedule. 

(Ch-3) The current estimate for IOC is rescheduled from March 2017 to October 2017 to reflect a shift in PSA start and 
completion dates resulting from the delay to delivery. 

(Ch-4) The current estimate for CVN 79 Start Construction was revised from May 2015 to June 2015 to reflect actual date of 
contract award. 

(Ch-5) The current estimate for IOT&E Start is revised from September 2017 to May 2018 to reflect shift in the PSA dates 
and partially to provide sufficient time for crew familiarization training and Platform Level DT integration testing with the new 
systems installed during PSA before commencing operational testing. 

(Ch-6) The current estimate for IOT&E Complete is revised from February 2020 to April 2020 to reflect shift in the PSA 
dates and partially to provide sufficient time for crew familiarization training and Platform Level DT integration testing with the 
new systems installed during PSA before commencing operational testing. 

(Ch-7) The current estimate for Milestone C is rescheduled from April 2015 to October 2017 to align with CVN 80 DAB 
Program Review. 

(Ch-8) The current estimate for Platform-Level Integration DT Period Complete is rescheduled from April 2018 to November 
2018 to reflect a shift in PSA start and completion dates resulting from the delay to delivery. 


Acronyms and Abbreviations 

CSTR - Combat Systems Trial Rehersal 

DT - Developmental Testing 

IOT&E - Initial Operational Test & Evaluation 

OPEVAL - Operational Evaluation 

PSA - Post Shakedown Availability 

TECHEVAL - Technical Evaluation 


March 21,2016 
17:17:44 


UNCLASSIFIED 


13 







CVN 78 


December 2015 SAR 


EMALS 


Schedule Events 



SAR Baseline 

Current APB 

Current 

Estimate 

Events 

Development 

Estimate 

Development 

Objective/Threshold 


EMALS 


Delivery (with Ship) 

Sep 2015 

Sep 2015 

Mar 2016 

Sep 2016 1 

IOC 

Sep 2016 

Sep 2016 

Mar 2017 

Oct 2017’ 


IOT&E 


IOT&E Start 

Feb 2017 

Feb 2017 

Aug 2017 

May 2018 1 

IOT&E Complete 

Aug 2019 

Aug 2019 

Feb 2020 

Apr 2020 

Platform-Level Integration DT Period Complete 

Sep 2017 

Sep 2017 

Mar 2018 

Nov 2018 1 


(Ch-1) 

(Ch-2) 

(Ch-3) 

(Ch-4) 

(Ch-5) 


1 APB Breach 


Change Explanations 

(Ch-1) The current estimate for CVN 78 Delivery is revised from March 2016 to September 2016 to reflect delays 
associated with the shipboard testing and integration schedule. 

(Ch-2) The current estimate for IOC is rescheduled from March 2017 to October 2017 to reflect a shift in PSA start and 
completion dates resulting from the delay to delivery. 

(Ch-3) The current estimate for IOT&E Start is revised from September 2017 to May 2018 to reflect shift in the PSA dates 
and partially to provide sufficient time for crew familiarization training and Platform Level DT integration testing with the new 
systems installed during PSA before commencing operational testing. 

(Ch-4) The current estimate for IOT&E Complete is revised from February 2020 to April 2020 to reflect a shift in the PSA 
dates and partially to provide sufficient time for crew familiarization training and Platform Level DT integration testing with the 
new systems installed during PSA before commencing operational testing. 

(Ch-5) The current estimate for Platform-Level Integration DT Period Complete is rescheduled from April 2018 to November 
2018 to reflect a shift in PSA start and completion dates resulting from the delay to delivery. 


Acronyms and Abbreviations 

DT - Developmental Test 

IOT&E - Initial Operational Test & Evaluation 

PSA - Post Shakedown Availability 


March 21,2016 
17:17:44 


UNCLASSIFIED 


14 























CVN 78 


December 2015 SAR 


Performance 

CVN 78 


Performance Characteristics 

SAR 

Baseline 

Development 

Estimate 

Current APB 

Development 

Objective/Threshold 

Demonstrated 

Performance 

Current 

Estimate 

CVN 78 

Interoperability 

Note 2 

N/A 

N/A 

TBD 

N/A 

Sustained Sortie Rate 

220 

220 

160 

TBD 

172 

Surge Sortie Rate 

310 

310 

270 

TBD 

284 

Ship Service Electrical Generating Capacity (times NIMITZ Class capacity in MW) 

3.0 

3.0 

2.5 

TBD 

2.7 

Weight Service Life Allowance (% of full load displacement in long tons) 

7.5 

7.5 

5.0 

TBD 

5.9 

Stability Service Life Allowance (feet) 

2.5 

2.5 

1.5 

TBD 

1.5 

Ship's Force Manpower (billets) 

2391 

2391 

2791 

TBD 

2628 

Follow-on Ship 

Interoperability 

Note 2 

N/A 

N/A 

N/A 

N/A 

Sustained Sortie Rate 

220 

N/A 

N/A 

N/A 

N/A 

Surge Sortie Rate 

310 

N/A 

N/A 

N/A 

N/A 

Service Electrical Generating Capacity (times NIMITZ Class capacity in MW) 

3.0 

N/A 

N/A 

N/A 

N/A 

Weight Service Life Allowance (% of full load displacement in long tons) 

7.5 

N/A 

N/A 

N/A 

N/A 

Stability Service Life Allowance (feet) 

2.5 

N/A 

N/A 

N/A 

N/A 

Ship's Force Manpower (billets) 


March 21,2016 
17:17:44 


UNCLASSIFIED 


15 







































































CVN 78 


December 2015 SAR 


2391 

N/A 

N/A 

N/A 

N/A 

Force Protection and Survivability in an Asymmetric Threat Environment 

Survivability 

N/A 

Level III as defined 
by OPNAV 
Instruction 9070.1 

Level II as defined by OPNAV 
Instruction 9070.1 with the 
exception of Collective 
Protection System 

TBD 

Level II as defined by OPNAV 
Instruction 9070.1 with the 
exception of Collective 
Protection System 

Net-Ready 

N/A 

Meets 100% of top 
level lERs 

Meets 100% of top level lERs 
designated as critical 

TBD 

Meets 100% of top level lERs 
designated as critical 


Classified Performance information is provided in the classified annex to this submission. 


Requirements Reference 

Operational Requirements Document (ORD) Change 2 dated June 22, 2007 


Change Explanations 

None 


Notes 

CVN 78 performance Threshold and Objectives apply to all ships in the class. Current estimates for the follow-on ship will 
be updated, if different from the lead ship, when they become available. 

For additional description regarding CVN 78 and Follow-on Ship Interoperability and other Performance Characteristics, see 
Table 4.4, KPPs, contained in the Future Aircraft Carrier (CVN 21) ORD dated June 22, 2007. 


Acronyms and Abbreviations 

CBR - Chemical, Biological, Radiological 
IER - Interoperability Exchange Requirement 
MW - Megawatt 

OPNAV - Chief of Naval Operations 


March 21,2016 
17:17:44 


UNCLASSIFIED 


16 




























CVN 78 


December 2015 SAR 


EMALS 


Performance Characteristics 

SAR Baseline 
Development 
Estimate 

Current APB 
Development 
Objective/Threshold 

Demonstrated 

Performance 

Current 

Estimate 

See Note 

N/A 

N/A N/A 

TBD 

N/A 


Requirements Reference 

Operational Requirements Document (ORD) Change 2 dated June 22, 2007 


Change Explanations 

None 


Notes 

The JROC has not established KPPs specific to the EMALS subprogram. All existing CVN 78 Class KPPs will be managed 
in the CVN 78 Class ship subprogram section. 


March 21,2016 
17:17:44 


UNCLASSIFIED 


17 

















CVN 78 


December 2015 SAR 


Track to Budget 

CVN 78 


RDT&E 


Appn 

BA 



Navy 

1319 04 

0603512N 



Project 

Name 



10C098 

Composite Mast for CVN's 

(Sunk) 


2208 

2678 

CVN 21 

Tech Insertion 

(Shared) (Sunk) 

(Sunk) 


2693 

Ship System Definition 

(Sunk) 


4006 

CVN 79 

(Sunk) 


9181 

Adv Battlestations/DSS 

(Sunk) 


9349 

Aviation Ship Integration Center 

(Sunk) 


9516 

Surface Ship Composite Moisture Separators 

(Sunk) 


9B57A 

Carrier Plant Automation and Manning 

Reduction 

(Sunk) 

Navy 

1319 04 

0603564N 



Project 

Name 



2230 

CV Feasibility Studies 

(Sunk) 


4230 

CVNX1 

(Sunk) 

Navy 

1319 04 

0603570N 



Project 

Name 



2692 

Advance Nuclear Power System/CVN 21 
Propulsion Plant Development 


Navy 

1319 04 

0604112N 



Project 

Name 



2208 

CVN 21 



9999 

CVN-78 Shock Trials 


Navy 

1319 05 

0604567N 



Project 

Name 



2301 Contract Design (Sunk) 

3108 CVN 80 Total Ship Integration 


3179 CVN 79 Total Ship Integration 

4007 CVN 21 LFT&E 

4008 CVN 21 Total Ship Integration (Sunk) 

9C20A Automated Fiber Optic Manufacturing Initiative (Sunk) 


Procurement 


Appn BA PE 


Navy 1611 02 07029898N 


Line Item Name 


March 21,2016 
17:17:44 


UNCLASSIFIED 


18 

























CVN 78 


December 2015 SAR 



2001 

Carrier Replacement Program 

(Shared) 

Navy 

1611 02 

0204112N 



Line Item 

Name 



2001 

Carrier Replacement Program 

(Shared) 

Navy 

1611 05 

0204112N 



Line Item 

Name 



5110 

Outfitting 

(Shared) 


5300 

Completion of Prior Year Shipbuilding 

(Shared) (Sunk) 

Navy 

1810 01 

0204112N 



Line Item 

Name 



0981 


Surface Training Equipment 


(Shared) 


MILCON 


Appn 


Navy 


BA PE 


1205 01 0203176N 


Project 


Name 


62688500 Pier 11 CVN-78 Power Booms 


(Sunk) 


Navy 

1205 01 

0702776N 



H Project 

Name | 



32443998 

Drydock 8 Electrical Distribution Upgrade 

(Sunk) 

Acq O&M 


Appn 


BA PE 


Navy 1804 01 0702827N 


Project 


Name 


1B2B 


EMALS 


Ship Operational Support and Training 


(Shared) 


RDT&E 


Appn 

BA 

PE 

Navy 1319 

04 

0603512N 


Project 

Name 

□ 

2208 

CVN 21 

(Shared) (Sunk) 

4004 

EMALS 

(Sunk) 

9B58A 

Improved Corrosion Protection for EMALS 

(Sunk) 

9D24A 

EMALS Congressional Add 

(Sunk) 


Navy 

1319 04 

0604112N 



k‘ Project 


Name j 


4004 

EMALS 



Procurement 

Appn 

BA 

PE 



Navy 1611 02 0204112N 


Line Item Name 


March 21,2016 
17:17:44 


UNCLASSIFIED 


19 









































CVN 78 


December 2015 SAR 



2001 


Carrier Replacement Program 

(Shared) 

MILCON 

Appn 


BA 



Navy 

1205 

01 

0212176N 



Project 

Name 


N0400024 EMALS Facility (Sunk) 


March 21,2016 
17:17:44 


UNCLASSIFIED 


20 









CVN 78 


December 2015 SAR 


Cost and Funding 

Cost Summary - Total Program 


Total Acquisition Cost - Total Program 

Appropriation 

BY 2000 $M 

BY 2000 $M 


TY$M 


SAR Baseline Current APB 

Development Development 

Estimate Objective/Threshold 

Current 

Estimate 

SAR Baseline 
Development 
Estimate 

Current APB 
Development 
Objective 

Current 

Estimate 

RDT&E 

3875.3 

4123.4 

4080.7 

4333.4 

4744.6 

4794.3 

Procurement 

24825.9 

24357.7 

23740.7 

31748.7 

33258.8 

38897.5 

Flyaway 

— 

.. 

23734.3 

— 

— 

38888.8 

Recurring 

-- 

-- 

20540.6 

- 

- 

34184.6 

Non Recurring 

-- 

-- 

3193.7 

- 

-- 

4704.2 

Support 

-- 

- 

6.4 

- 

-- 

8.7 

Other Support 

- 

- 

6.4 

- 

-- 

8.7 

Initial Spares 

- 

- 

0.0 

-- 

- 

0.0 

MILCON 

0.0 

152.0 

46.2 

0.0 

208.5 

56.9 

Acq O&M 

0.0 

0.0 

54.4 

0.0 

0.0 

73.8 

Total 

28701.2 

28633.1 N/A 

27922.0 

36082.1 

38211.9 

43822.5 


March 21,2016 
17:17:44 


UNCLASSIFIED 


21 









CVN 78 


December 2015 SAR 


Cost and Funding 
Cost Summary - CVN 78 



Total Acquisition Cost - CVN 78 

Appropriation 

BY 2000 $M 

BY 2000 $M 

TY$M 

SAR Baseline 
Development 
Estimate 

Current APB 
Development 
Objective/Threshold 

Current 

Estimate 

SAR Baseline 
Development 
Estimate 

Current APB 
Development 
Objective 

Current 

Estimate 

RDT&E 

3490.6 

3472.2 

3819.4 

3269.5 

3923.0 

3999.8 

3835.4 

Procurement 

24235.0 

22764.3 

25040.7 

22478.0 

30977.4 

30808.7 

36750.1 

Flyaway 

- 

- 

- 

22471.6 

- 

- 

36741.4 

Recurring 

- 

- 

- 

19277.9 

- 

- 

32037.2 

Non Recurring 

- 

- 

- 

3193.7 

- 

- 

4704.2 

Support 

- 

- 

- 

6.4 

- 

- 

8.7 

Other Support 

- 

- 

- 

6.4 

- 

- 

8.7 

Initial Spares 

- 

- 

- 

0.0 

- 

- 

0.0 

MILCON 

0.0 

133.2 

146.5 

27.4 

0.0 

187.8 

36.2 

Acq O&M 

0.0 

0.0 

- 

54.4 

0.0 

0.0 

73.8 

Total 

27725.6 

26369.7 

N/A 

25829.3 

34900.4 

34996.3 

40695.5 

Confidence Level 



Confidence Level of cost estimate for current APB: 50% 


The estimate to support this program, like most cost estimates, is built upon a product-oriented work breakdown structure 
based on historical actual cost information to the maximum extent possible, and, most importantly, based on conservative 
assumptions that are consistent with actual demonstrated contractor and government performance for a series of 
acquisition programs in which we have been successful. 

It is difficult to calculate mathematically the precise confidence levels associated with life-cycle cost estimates prepared 
for Major Defense Acquisition Programs (MDAPs). Based on the rigor in methods used in building estimates, the strong 
adherence to the collection and use of historical cost information, and the review of applied assumptions, we project that it 
is about as likely the estimate will prove too low or too high for the program as described. 


Total Quantity - CVN 78 

Quantity 

SAR Baseline 
Development 
Estimate 

Current APB 
Development 

Current Estimate 


RDT&E 00 0 

Procurement _3_3_3 

Total 3 3 3 


March 21,2016 
17:17:44 


UNCLASSIFIED 


22 














CVN 78 


December 2015 SAR 


Cost Summary - EMALS 


Total Acquisition Cost - EMALS 


BY 2000 $M 

BY 2000 $M 

TY$M 

Appropriation 

SAR Baseline 
Development 
Estimate 

Current APB 
Development 
Objective/Threshold 

Current 

Estimate 

SAR Baseline 
Development 
Estimate 

Current APB 
Development 
Objective 

Current 

Estimate 

RDT&E 

384.7 

651.2 

748.9 

811.2 1 

410.4 

744.8 

958.9 

Procurement 

590.9 

1593.4 

1752.7 

1262.7 

771.3 

2450.1 

2147.4 

Flyaway 

- 

- 

- 

1262.7 

- 

- 

2147.4 

Recurring 

- 

- 

- 

1262.7 

- 

- 

2147.4 

Non Recurring 

- 

- 

- 

0.0 

- 

- 

0.0 

Support 

- 

- 

- 

0.0 

- 

- 

0.0 

Other Support 

- 

- 

- 

0.0 

- 

- 

0.0 

Initial Spares 

- 

- 

- 

0.0 

- 

- 

0.0 

MILCON 

0.0 

18.8 

20.7 

18.8 

0.0 

20.7 

20.7 

Acq O&M 

0.0 

0.0 

- 

0.0 

0.0 

0.0 

0.0 

Total 

975.6 

2263.4 

N/A 

2092.7 

1181.7 

3215.6 

3127.0 


1 APB Breach 


Confidence Level 

Confidence Level of cost estimate for current APB: 50% 

The estimate to support this program, like most cost estimates, is built upon a product-oriented work breakdown structure 
based on historical actual cost information to the maximum extent possible, and, most importantly, based on conservative 
assumptions that are consistent with actual demonstrated contractor and government performance for a series of 
acquisition programs in which we have been successful. 

It is difficult to calculate mathematically the precise confidence levels associated with life-cycle cost estimates prepared 
for major complex systems. Based on the rigor in methods used in building estimates, the strong adherence to the 
collection and use of historical cost information, and the review of applied assumptions, we project that it is about as likely 
the estimate will prove too low or too high for the program as described. 


Total Quantity - EMALS 

Quantity 

SAR Baseline 
Development 
Estimate 

Current APB 
Development 

Current Estimate 


RDT&E 00 0 

Procurement _3_3_3 

Total 3 3 3 


March 21,2016 
17:17:44 


UNCLASSIFIED 


23 














CVN 78 


December 2015 SAR 


Cost and Funding 

Funding Summary - Total Program 


Appropriation Summary 


FY 2017 President's Budget / December 2015 SAR (TY$ M) 


Appropriation 

Prior 

FY 2016 

FY 2017 

FY 2018 

FY 2019 

FY 2020 

FY 2021 

1 u 

Complete 

Total 

RDT&E 

4011.7 

116.7 

121.5 

150.0 

134.2 

90.5 

72.2 

97.5 

4794.3 

Procurement 

18832.9 

2659.9 

2668.9 

4361.2 

1650.2 

1736.5 

3097.1 

3890.8 

38897.5 

MILCON 

56.9 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 

56.9 

Acq O&M 

4.8 

38.4 

14.1 

4.8 

3.8 

3.9 

4.0 

0.0 

73.8 

PB 2017 Total 

22906.3 

2815.0 

2804.5 

4516.0 

1788.2 

1830.9 

3173.3 

3988.3 

43822.5 

PB 2016 Total 

22868.8 

2846.9 

3068.4 

3598.8 

2133.0 

931.1 

2339.6 

5174.6 

42961.2 

Delta 

37.5 

-31.9 

-263.9 

917.2 

-344.8 

899.8 

833.7 

-1186.3 

861.3 


March 21,2016 
17:17:44 


UNCLASSIFIED 


24 






CVN 78 


December 2015 SAR 


Cost and Funding 
Funding Summary - CVN 78 


Appropriation Summary 

FY 2017 President's Budget / December 2015 SAR (TY$ M) 

Appropriation 

Prior 

FY 2016 FY 2017 

FY 2018 

FY 2019 FY 2020 

FY 2021 

To 

Complete 


Total 

RDT&E 

3145.1 

104.2 

83.8 

124.0 

118.1 

90.5 

72.2 


97.5 


3835.4 

Procurement 

17946.7 

2386.0 

2434.5 

4183.4 

1472.3 

1609.6 

2984.5 


3733.1 


36750.1 

MILCON 

36.2 

0.0 

0.0 

0.0 

0.0 

0.0 

0.0 


0.0 


36.2 

Acq O&M 

4.8 

38.4 

14.1 

4.8 

3.8 

3.9 

4.0 


0.0 


73.8 

PB 2017 Total 

21132.8 

2528.6 

2532.4 

4312.2 

1594.2 

1704.0 

3060.7 


3830.6 


40695.5 

PB 2016 Total 

21107.3 

2645.1 

2913.1 

3318.0 

1983.0 

866.1 

2189.6 


4645.6 


39667.8 

Delta 

25.5 

-116.5 

-380.7 

994.2 

-388.8 

837.9 

871.1 


-815.0 


1027.7 

Quantity Summary 

FY 2017 President's Budget / December 2015 SAR (TY$ M) 

Quantity 

Undistributed Prior 

FY 

2016 

FY 

2017 

FY FY 

2018 2019 

FY FY 

2020 2021 


To 

Complete 

Total 

Development 


0 0 

0 

0 

0 

0 

0 

0 


0 

0 

Production 


0 2 

0 

0 

1 

0 

0 

0 


0 

3 

PB 2017 Total 


0 2 

0 

0 

1 

0 

0 

0 


0 

3 

PB 2016 Total 


0 2 

0 

0 

1 

0 

0 

0 


0 

3 

Delta 


0 0 

0 

0 

0 

0 

0 

0 


0 

0 


March 21,2016 
17:17:44 


UNCLASSIFIED 


25 










CVN 78 


December 2015 SAR 


Funding Summary - EMALS 


Appropriation Summary 

FY 2017 President's Budget / December 2015 SAR (TY$ M) 

Appropriation 

Prior 

FY 2016 

FY 2017 

FY 2018 

FY 2019 FY 2020 

FY 2021 

To 

Complete 

Total 

RDT&E 

866.6 


12.5 

37.7 

26.0 

16.1 

0.0 


0.0 

0.0 

958.9 

Procurement 

886.2 


273.9 

234.4 

177.8 

177.9 

126.9 


112.6 

157.7 

2147.4 

MILCON 

20.7 


0.0 

0.0 

0.0 

0.0 

0.0 


0.0 

0.0 

20.7 

Acq O&M 

0.0 


0.0 

0.0 

0.0 

0.0 

0.0 


0.0 

0.0 

0.0 

PB 2017 Total 

1773.5 


286.4 

272.1 

203.8 

194.0 

126.9 


112.6 

157.7 

3127.0 

PB 2016 Total 

1761.5 


201.8 

155.3 

280.8 

150.0 

65.0 


150.0 

529.0 

3293.4 

Delta 

12.0 


84.6 

116.8 

-77.0 

44.0 

61.9 


-37.4 

-371.3 

-166.4 

Quantity Summary 

FY 2017 President's Budget / December 2015 SAR (TY$ M) 

Quantity 

Undistributed 

Prior 

FY 

2016 

FY 

2017 

FY FY 

2018 2019 

FY 

2020 

FY 

2021 

To 

Complete 

Total 

Development 


0 


0 0 

0 

0 

0 

0 


0 0 

0 

Production 


0 


2 0 

0 

1 

0 

0 


0 0 

3 


PB 2017 Total 02001000 03 

PB 2016 Total _ 0 2 0 0 1 0 0 0 _ 0 3 

Delta 00000000 00 


March 21,2016 
17:17:44 


UNCLASSIFIED 


26 











CVN 78 


December 2015 SAR 


Cost and Funding 

Annual Funding By Appropriation - CVN 78 


Annual Funding - CVN 78 

1319 | RDT&E 1 Research, Development, Test, and Evaluation, Navy 




TY$M 

Fiscal 

Year 

Quantity 

End Item 
Recurring 
Flyaway 

Non End 
Item 

Recurring 

Flyaway 

Non 

Recurring 

Flyaway 

Total 

Flyaway 

Total 

Support 

Total 

Program 


1997 

1998 

1999 

2000 
2001 
2002 

2003 

2004 

2005 

2006 

2007 

2008 

2009 

2010 
2011 
2012 

2013 

2014 

2015 

2016 

2017 

2018 

2019 

2020 
2021 
2022 

2023 

2024 

2025 
Subtotal 


0.9 

46.1 
83.3 

136.8 

189.5 

240.5 

272.4 

268.8 

300.3 

245.5 

229.5 

191.5 
201.8 

179.6 
119.9 

113.3 

104.3 
103.8 

117.3 
104.2 

83.8 

124.0 

118.1 

90.5 

72.2 

35.6 

20.3 

20.6 
21.0 

3835.4 


March 21,2016 
17:17:44 


UNCLASSIFIED 


27 








CVN 78 


December 2015 SAR 


Annual Funding - CVN 78 

1319 1 RDT&E | Research, Development, Test, and Evaluation, Navy 




BY 2000 $M 

Fiscal 

Year 

Quantity 

End Item 
Recurring 
Flyaway 

Non End 
Item 

Recurring 

Flyaway 

Non 

Recurring 

Flyaway 

Total 

Flyaway 

Total 

Support 

Total 

Program 


1997 

1998 

1999 

2000 
2001 
2002 

2003 

2004 

2005 

2006 

2007 

2008 

2009 

2010 
2011 
2012 

2013 

2014 

2015 

2016 

2017 

2018 

2019 

2020 
2021 
2022 

2023 

2024 

2025 
Subtotal 


0.9 

46.9 

83.7 

135.5 

185.1 

232.6 

259.6 

249.2 

271.3 

215.1 

196.2 
160.8 

167.3 

146.7 

95.7 

88.9 
81.0 

79.5 

88.7 

77.5 
61.2 
88.9 
83.0 
62.4 

48.8 

23.6 
13.2 
13.1 
13.1 

3269.5 


March 21,2016 
17:17:44 


UNCLASSIFIED 


28 








CVN 78 


December 2015 SAR 


Annual Funding - CVN 78 

1611 | Procurement | Shipbuilding and Conversion, Navy 



TY$M 

Fiscal 

Year 

Quantity 

End Item 
Recurring 
Flyaway 

Non End 
Item 

Recurring 

Flyaway 

Non 

Recurring 

Flyaway 

Total 

Flyaway 

Total 

Support 

Total 

Program 


2001 

-- 

21.7 

-- 

- 

21.7 

- 

21.7 

2002 

-- 

135.3 

- 

- 

135.3 

- 

135.3 

2003 

-- 

243.7 

- 

151.8 

395.5 

- 

395.5 

2004 

- 

955.2 

- 

207.7 

1162.9 

- 

1162.9 

2005 

- 

274.4 

- 

348.7 

623.1 

- 

623.1 

2006 

- 

241.6 

- 

377.3 

618.9 

-- 

618.9 

2007 

- 

358.3 

- 

424.5 

782.8 

- 

782.8 

2008 

1 

1772.3 

- 

1010.7 

2783.0 

- 

2783.0 

2009 

-- 

3663.0 

- 

54.9 

3717.9 

- 

3717.9 

2010 

- 

830.3 

- 

251.0 

1081.3 

- 

1081.3 

2011 

-- 

1811.0 

-- 

546.3 

2357.3 

-- 

2357.3 

2012 

-- 

453.6 

- 

101.2 

554.8 

-- 

554.8 

2013 

1 

393.7 

- 

82.7 

476.4 

- 

476.4 

2014 

- 

1214.8 

-- 

267.3 

1482.1 

-- 

1482.1 

2015 

- 

1643.8 

- 

109.9 

1753.7 

-- 

1753.7 

2016 

- 

2232.7 

- 

148.6 

2381.3 

-- 

2381.3 

2017 

- 

2325.3 

- 

105.2 

2430.5 

-- 

2430.5 

2018 

1 

4105.4 

-- 

78.0 

4183.4 

- 

4183.4 

2019 

- 

1374.9 

-- 

97.4 

1472.3 

- 

1472.3 

2020 

- 

1514.4 

-- 

95.2 

1609.6 

- 

1609.6 

2021 

-- 

1925.1 

968.4 

91.0 

2984.5 

- 

2984.5 

2022 

-- 

1560.3 

- 

85.5 

1645.8 

- 

1645.8 

2023 

- 

1651.4 

- 

69.3 

1720.7 

- 

1720.7 

2024 

-- 

69.4 

- 

- 

69.4 

- 

69.4 

2025 

- 

61.6 

- 

- 

61.6 

- 

61.6 

2026 

- 

77.7 

- 

- 

77.7 

-- 

77.7 

2027 

- 

140.2 

- 

- 

140.2 

-- 

140.2 

2028 

- 

17.7 

-- 

-- 

17.7 

- 

17.7 

Subtotal 

3 

31068.8 

968.4 

4704.2 

36741.4 

— 

36741.4 


March 21,2016 
17:17:44 


UNCLASSIFIED 


29 








CVN 78 


December 2015 SAR 


Annual Funding - CVN 78 

1611 | Procurement | Shipbuilding and Conversion, Navy 



BY 2000 $M 

Fiscal 

Year 

Quantity 

End Item 
Recurring 
Flyaway 

Non End 
Item 

Recurring 

Flyaway 

Non 

Recurring 

Flyaway 

Total 

Flyaway 

Total 

Support 

Total 

Program 


2001 

-- 

19.7 

-- 

- 

19.7 

- 

19.7 

2002 

-- 

122.0 

- 

-- 

122.0 

- 

122.0 

2003 

-- 

207.7 

- 

129.4 

337.1 

- 

337.1 

2004 

- 

785.7 

- 

170.9 

956.6 

- 

956.6 

2005 

- 

216.1 

- 

274.7 

490.8 

- 

490.8 

2006 

- 

183.8 

- 

287.1 

470.9 

-- 

470.9 

2007 

- 

260.6 

- 

308.8 

569.4 

- 

569.4 

2008 

1 

1246.8 

- 

710.9 

1957.7 

- 

1957.7 

2009 

-- 

2499.9 

- 

37.5 

2537.4 

- 

2537.4 

2010 

- 

547.4 

- 

165.5 

712.9 

- 

712.9 

2011 

-- 

1156.3 

-- 

348.8 

1505.1 

-- 

1505.1 

2012 

-- 

283.2 

- 

63.2 

346.4 

-- 

346.4 

2013 

1 

241.0 

- 

50.6 

291.6 

- 

291.6 

2014 

- 

729.9 

-- 

160.7 

890.6 

-- 

890.6 

2015 

- 

970.8 

- 

64.9 

1035.7 

-- 

1035.7 

2016 

- 

1294.8 

- 

86.2 

1381.0 

-- 

1381.0 

2017 

- 

1323.0 

- 

59.8 

1382.8 

-- 

1382.8 

2018 

1 

2290.4 

-- 

43.5 

2333.9 

- 

2333.9 

2019 

- 

752.0 

-- 

53.3 

805.3 

- 

805.3 

2020 

- 

812.1 

-- 

51.0 

863.1 

- 

863.1 

2021 

-- 

1012.0 

509.2 

47.8 

1569.0 

- 

1569.0 

2022 

-- 

804.2 

- 

44.1 

848.3 

- 

848.3 

2023 

- 

834.5 

- 

35.0 

869.5 

- 

869.5 

2024 

-- 

34.4 

- 

- 

34.4 

- 

34.4 

2025 

- 

29.9 

- 

- 

29.9 

- 

29.9 

2026 

- 

37.0 

- 

- 

37.0 

-- 

37.0 

2027 

- 

65.4 

- 

- 

65.4 

-- 

65.4 

2028 

- 

8.1 

-- 

-- 

8.1 

-- 

8.1 

Subtotal 

3 

18768.7 

509.2 

3193.7 

22471.6 

— 

22471.6 


March 21,2016 
17:17:44 


UNCLASSIFIED 


30 








CVN 78 


December 2015 SAR 


Navy plans to build 11 CVN 78 Class ships to replace CVN 65 and CVN 68 Class ships. 

Cost Quantity Information 

The Navy and shipbuilder have made fundamental changes in the manner in which the CVN 79 will be built to incorporate 
lessons learned from CVN 78 and eliminate the key contributors to cost performance challenges realized in the construction 
of CVN 78. Further improvements are planned for CVN 80 and have been incorporated into the CVN 80 cost estimates and 
budgets. The FY 2017 PB for CVN 80 is $572.0M in TY$ ($279.2M in BY$) less than the FY 2016 PB, and $974M less than 
the FY 2015 PB. 

The FY 2017 PB introduces the first year of funding for CVN 81; however, it is not in the current APB. An update to the APB 
will be needed at a later to date to add CVN 81 to the program baseline. With the addition of CVN 81 into the FYDP, unit 
costs will appear to have increased until CVN 81 is added to the APB and the unit cost is adjusted to reflect four ships. 


March 21,2016 
17:17:44 


UNCLASSIFIED 


31 




CVN 78 


December 2015 SAR 


Cost Quantity Information - CVN 78 

1611 | Procurement | Shipbuilding and Conversion, Navy 

Fiscal 

Year 

Quantity 

End Item 
Recurring 
Flyaway 
(Aligned With 
Quantity) 

BY 2000 $M 

2001 

— 

- 

2002 

- 

-- 

2003 

- 

- 

2004 

- 

- 

2005 

- 

- 

2006 

- 

- 

2007 

- 

- 

2008 

1 

6344.1 

2009 

-- 

- 

2010 

- 

- 

2011 

- 

- 

2012 

- 

- 

2013 

1 

6011.3 

2014 

- 

- 

2015 

- 

- 

2016 

- 

- 

2017 

- 

- 

2018 

1 

6413.3 

2019 

- 

-- 

2020 

- 

-- 

2021 

- 

-- 

2022 

- 

- 

2023 

- 

- 

2024 

- 

- 

2025 

- 

- 

2026 

- 

- 

2027 

- 

- 

2028 

-- 

-- 

Subtotal 

3 

18768.7 


March 21,2016 
17:17:44 


UNCLASSIFIED 


32 







CVN 78 


December 2015 SAR 


Annual Funding - CVN 78 
1810 | Procurement | Other Procurement, Navy 




TY$M 

Fiscal 

Year 

Quantity 

End Item 
Recurring 
Flyaway 

Non End 
Item 

Recurring 

Flyaway 

Non 

Recurring 

Flyaway 

Total 

Flyaway 

Total 

Support 

Total 

Program 

2016 

2017 

— 

” 

— 

— 

— 

4.7 

4.0 

4.7 

4.0 

Subtotal 

— 

— 

— 

— 

— 

8.7 

8.7 


March 21,2016 
17:17:44 


UNCLASSIFIED 


33 








CVN 78 


December 2015 SAR 


Annual Funding - CVN 78 
1810 | Procurement | Other Procurement, Navy 




BY 2000 $M 

Fiscal 

Year 

Quantity 

End Item 
Recurring 
Flyaway 

Non End 
Item 

Recurring 

Flyaway 

Non 

Recurring 

Flyaway 

Total 

Flyaway 

Total 

Support 

Total 

Program 

2016 

2017 

— 

” 

— 

— 

— 

3.5 

2.9 

3.5 

2.9 

Subtotal 

— 

— 

— 

— 

— 

6.4 

6.4 


March 21,2016 
17:17:44 


UNCLASSIFIED 


34 








CVN 78 


December 2015 SAR 


Annual Funding - CVN 78 

1205 | MILCON | Military Construction, Navy and Marine 

Corps 

Fiscal 

TY$M 

Year 

Total 

Program 

2013 

32.8 

2014 

3.4 

Subtotal 

36.2 


March 21,2016 
17:17:44 


UNCLASSIFIED 


35 








CVN 78 


December 2015 SAR 


Annual Funding - CVN 78 

1205 | MILCON | Military Construction, Navy and Marine 
_ Corps _ 


BY 2000 $M 

Fiscal 

Year Total 

Program 


2013 

2014 
Subtotal 


24.9 

2.5 

27.4 


March 21,2016 
17:17:44 


UNCLASSIFIED 


36 








CVN 78 


December 2015 SAR 


Annual Funding - CVN 78 

1804 | Acq O&M | Operation and Maintenance, Navy 


TY$M 

riSCal 

Year 

Total 

Program 

2015 

4.8 

2016 

38.4 

2017 

14.1 

2018 

4.8 

2019 

3.8 

2020 

3.9 

2021 

4.0 


Subtotal 73.8 


March 21,2016 
17:17:44 


UNCLASSIFIED 


37 








CVN 78 


Annual Funding - CVN 78 

1804 | Acq O&M | Operation and Maintenance, Navy 



BY 2000 $M 

rlSCal 

Year 

Total 

Program 

2015 

3.6 

2016 

28.8 

2017 

10.4 

2018 

3.5 

2019 

2.7 

2020 

2.7 

2021 

2.7 

Subtotal 

54.4 


December 2015 SAR 


March 21,2016 
17:17:44 


UNCLASSIFIED 


38 








CVN 78 


December 2015 SAR 


Annual Funding By Appropriation - EMALS 


Annual Funding - EMALS 

1319 1 RDT&E 1 Research, Development, Test, and Evaluation, Navy 




TY$M 

Fiscal 

Year 

Quantity 

End Item 
Recurring 
Flyaway 

Non End 
Item 

Recurring 

Flyaway 

Non 

Recurring 

Flyaway 

Total 

Flyaway 

Total 

Support 

Total 

Program 


2000 

2001 

2002 

2003 

2004 

2005 

2006 

2007 

2008 

2009 

2010 
2011 
2012 

2013 

2014 

2015 

2016 

2017 

2018 
2019 

Subtotal 


41.0 

41.0 

41.0 

44.2 

37.2 

49.4 

56.8 
108.2 

40.5 
113.2 

90.9 

59.1 
31.0 

54.9 

46.9 

11.3 

12.5 
37.7 
26.0 

16.1 
958.9 


March 21,2016 
17:17:44 


UNCLASSIFIED 


39 







CVN 78 


December 2015 SAR 


Annual Funding - EMALS 

1319 1 RDT&E | Research, Development, Test, and Evaluation, Navy 




BY 2000 $M 

Fiscal 

Year 

Quantity 

End Item 
Recurring 
Flyaway 

Non End 
Item 

Recurring 

Flyaway 

Non 

Recurring 

Flyaway 

Total 

Flyaway 

Total 

Support 

Total 

Program 


2000 

2001 

2002 

2003 

2004 

2005 

2006 

2007 

2008 

2009 

2010 
2011 
2012 

2013 

2014 

2015 

2016 

2017 

2018 
2019 

Subtotal 


40.6 
40.0 

39.6 

42.1 

34.5 

44.6 

49.8 

92.5 
34.0 

93.9 
74.3 

47.2 

24.3 

42.6 

35.9 
8.5 
9.3 

27.6 

18.6 

11.3 
811.2 


March 21,2016 
17:17:44 


UNCLASSIFIED 


40 








CVN 78 


December 2015 SAR 


Annual Funding - EMALS 

1611 | Procurement | Shipbuilding and Conversion, Navy 


Fiscal 

Year 



TY$M 

Quantity 

. ltQm Non End 

End Item .. 

_ Item 

Recurring _ 

3 Recurring 

Fl ' ,awa '' Flyaway 

Non Total Total Total 

Flyaway Flyaway Support Program 

2007 

— 

5.8 

5.8 - 5.8 

2008 

1 

25.6 

25.6 - 25.6 

2009 

- 

177.2 

177.2 - 177.2 

2010 

- 

138.6 

138.6 - 138.6 

2011 

- 

257.5 

257.5 - 257.5 

2012 

- 

- 

- 

2013 

1 

17.8 

17.8 - 17.8 

2014 

- 

65.3 

65.3 - 65.3 

2015 

- 

198.4 

198.4 - 198.4 

2016 

- 

273.9 

273.9 - 273.9 

2017 

-- 

234.4 

234.4 - 234.4 

2018 

1 

177.8 

177.8 - 177.8 

2019 

- 

177.9 

177.9 - 177.9 

2020 

- 

126.9 

126.9 - 126.9 

2021 

- 

112.6 

112.6 - 112.6 

2022 

- 

87.8 

87.8 - 87.8 

2023 

- 

69.9 

69.9 - 69.9 

Subtotal 

3 

2147.4 

2147.4 - 2147.4 


March 21,2016 
17:17:44 


UNCLASSIFIED 


41 








CVN 78 


December 2015 SAR 


Annual Funding - EMALS 

1611 | Procurement | Shipbuilding and Conversion, Navy 


Fiscal 

Year 

Quantity 

BY 2000 $M 

End Item 
Recurring 
Flyaway 

Non End 
Item 

Recurring 

Flyaway 

Non 

Recurring 

Flyaway 

Total 

Flyaway 

Total 

Support 

Total 

Program 

2007 

— 

4.2 

- 

- 

4.2 

- 

4.2 

2008 

1 

18.0 

- 

- 

18.0 

- 

18.0 

2009 

- 

120.9 

- 

- 

120.9 

- 

120.9 

2010 

- 

91.4 

- 

-- 

91.4 

- 

91.4 

2011 

- 

164.4 

- 

- 

164.4 

- 

164.4 

2012 

- 

- 

- 

- 

- 

- 

- 

2013 

1 

10.9 

- 

- 

10.9 

- 

10.9 

2014 

- 

39.2 

- 

- 

39.2 

- 

39.2 

2015 

- 

117.2 

- 

- 

117.2 

- 

117.2 

2016 

- 

158.8 

- 

- 

158.8 

- 

158.8 

2017 

-- 

133.4 

- 

- 

133.4 

-- 

133.4 

2018 

1 

99.2 

- 

- 

99.2 

-- 

99.2 

2019 

- 

97.3 

- 

- 

97.3 

- 

97.3 

2020 

- 

68.0 

-- 

- 

68.0 

-- 

68.0 

2021 

- 

59.2 

- 

- 

59.2 

-- 

59.2 

2022 

- 

45.3 

- 

- 

45.3 

-- 

45.3 

2023 

- 

35.3 

- 

-- 

35.3 

-- 

35.3 

Subtotal 

3 

1262.7 

— 

— 

1262.7 

— 

1262.7 


March 21,2016 
17:17:44 


UNCLASSIFIED 


42 








CVN 78 


December 2015 SAR 


Cost Quantity Information 

The Navy was successful in using Firm Fixed Price (FFP) Contracting for EMALS on the CVN 78 to control costs and 
has utilized the same contracting approach on the CVN 79. 


Cost Quantity Information - EMALS 

1611 | Procurement | Shipbuilding and Conversion, Navy 

Fiscal 

Year 

Quantity 

End Item 
Recurring 
Flyaway 
(Aligned With 
Quantity) 

BY 2000 $M 

2007 

— 

- 

2008 

1 

438.2 

2009 

- 

- 

2010 

- 

- 

2011 

- 

- 

2012 

-- 

-- 

2013 

1 

424.0 

2014 

- 

- 

2015 

- 

-- 

2016 

- 

-- 

2017 

- 

-- 

2018 

1 

400.5 

2019 

- 

- 

2020 

- 

- 

2021 

- 

- 

2022 

- 

- 

2023 

- 

-- 


Subtotal 3 1262.7 


March 21,2016 
17:17:44 


UNCLASSIFIED 


43 








CVN 78 


December 2015 SAR 


Annual Funding - EMALS 

1205 | MILCON | Military Construction, Navy and Marine 
_ Corps _ 


Fiscal 

Year 


TY$M 

Total 

Program 


2004 

Subtotal 


20.7 

20.7 


March 21,2016 
17:17:44 


UNCLASSIFIED 


44 








CVN 78 


December 2015 SAR 


Annual Funding - EMALS 

1205 | MILCON | Military Construction, Navy and Marine 
_ Corps _ 


BY 2000 $M 

Fiscal 

Year Total 

Program 


2004 

Subtotal 


18.8 

18.8 


March 21,2016 
17:17:44 


UNCLASSIFIED 


45 








CVN 78 


December 2015 SAR 


Low Rate Initial Production 

CVN 78 


Item 


Initial LRIP Decision 


Current Total LRIP 


Approval Date 
Approved Quantity 
Reference 
Start Year 
End Year 


4/26/2004 

3 

Milestone B ADM 

2004 

2018 


4/26/2004 

3 

Milestone B ADM 

2004 

2018 


The Current Total LRIP Quantity is more than 10% of the total production quantity due to the ADM dated April 26, 2004 
approving three ships. 

EMALS 


EMALS has no LRIP quantities because the current LRIP decision occurred prior to the establishment of EMALS as a major 
subprogram. 


March 21,2016 
17:17:44 


UNCLASSIFIED 


46 







CVN 78 


December 2015 SAR 


Foreign Military Sales 

CVN 78 


Notes 


The Navy has initiated discussions with the Government of India under the DTTI through the JWGACTC about assistance 
in the construction of an indigenous 65,000 ton aircraft carrier. The discussions are in the early stages and are 
coordinated through USD(AT&L) International Cooperation and the NIPO. The Program is determining disclosure and other 
exportability considerations that may impact cooperation/sales. A Critical Program Information assessment has been 
completed and the Program Office is working with NIPO to develop the necessary documentation to complete a 
Technology Transfer and Security Assistance Review Board in CY 2016. 


EMALS 


Notes 


The Navy has initiated discussions with the Government of India under the DTTI through the JWGACTC about assistance 
in the construction of an indigenous 65,000 ton aircraft carrier. The discussions are in the early stages and are 
coordinated through USD(AT&L) International Cooperation and the NIPO. The Program is determining disclosure and other 
exportability considerations that may impact cooperation/sales. A Critical Program Information assessment has been 
completed and the Program Office is working with NIPO to develop the necessary documentation to complete a 
Technology Transfer and Security Assistance Review Board in CY 2016. 


Acronyms and Abbreviations 


DTTI - Defense Technology and Trade Initiative 

JWGACTC - Joint Working Group on Aircraft Carrier Technology Cooperation 
NIPO - Navy International Progams Office 


March 21,2016 
17:17:44 


UNCLASSIFIED 


47 









CVN 78 


December 2015 SAR 


Nuclear Costs 

CVN 78 


Nuclear Research and Development and Reactor Plant Government Furnished Equipment costs are included within the 
program costs in this report; however, Department of Energy nuclear costs are not included in this report. 

Shipbuilding & Conversion Navy Nuclear Propulsion Equipment Cost is $6,221,0M in TY dollars for the CVN 78 Class 
Aircraft Carriers (CVN 78-80). 


EMALS 


None 


March 21,2016 
17:17:44 


UNCLASSIFIED 


48 





CVN 78 


December 2015 SAR 


Unit Cost 

CVN 78 


Unit Cost Report 



BY 2000 $M 

BY 2000 $M 


Item 

Current UCR 
Baseline 
(Apr 2013 APB) 

Current Estimate 

% Change 


(Dec 2015 SAR) 


Program Acquisition Unit Cost 

Cost 

26369.7 

25829.3 


Quantity 

3 

3 


Unit Cost 

Average Procurement Unit Cost 

8789.900 

8609.767 

-2.05 

Cost 

22764.3 

22478.0 


Quantity 

3 

3 


Unit Cost 

7588.100 

7492.667 

-1.26 


BY 2000 $M 

BY 2000 $M 


Item 

Original UCR 
Baseline 
(Apr 2004 APB) 

Current Estimate 

% Change 


(Dec 2015 SAR) 


Program Acquisition Unit Cost 

Cost 

28701.2 

25829.3 


Quantity 

3 

3 


Unit Cost 

Average Procurement Unit Cost 

9567.067 

8609.767 

-10.01 

Cost 

24825.9 

22478.0 


Quantity 

3 

3 


Unit Cost 

8275.300 

7492.667 

-9.46 


March 21,2016 
17:17:44 


UNCLASSIFIED 


49 














CVN 78 


December 2015 SAR 


CVN 78 


Unit Cost History 


APB Unit Cost History 




n oto 

BY 2000 $M 

TY $M 

iiem 

uaie 

PAUC 

APUC 

PAUC 

APUC 

Original APB 

Apr 2004 

9567.067 

8275.300 

12027.367 

10582.900 

APB as of January 2006 

Aug 2005 

9068.800 

7778.000 

12004.400 

10526.633 

Revised Original APB 

N/A 

N/A 

N/A 

N/A 

N/A 

Prior APB 

Nov 2007 

9068.800 

7778.000 

12004.400 

10526.633 

Current APB 

Apr 2013 

8789.900 

7588.100 

11665.433 

10269.567 

Prior Annual SAR 

Dec 2014 

8414.567 

7366.800 

13222.600 

12005.733 

Current Estimate 

Dec 2015 

8609.767 

7492.667 

13565.167 

12250.033 


SAR Unit Cost History 


Current SAR Baseline to Current Estimate (TY $M) 


Initial PAUC Changes PAUC 

Development Current 

Estimate Econ Qty Sch Eng Est Oth Spt Total Estimate 


11633.467 2145.467 0.000 279.833 -27.067 -469.433 0.000 2.900 1931.700 13565.167 


March 21,2016 
17:17:44 


UNCLASSIFIED 


50 











CVN 78 


December 2015 SAR 


Current SAR Baseline to Current Estimate (TY $M) 


Initial APUC Changes APUC 

Development Current 

Estimate Econ Qty Sch Eng Est Oth Spt Total Estimate 


10325.800 2113.300 0.000 222.467 132.967 -547.400 0.000 2.900 1924.234 12250.033 



SAR Baseline History 




SAR 

SAR 

SAR 

Current 

Estimate 

Item 

Planning 

Estimate 

Development 

Estimate 

Production 

Estimate 

Milestone 1 

N/A 

N/A 

N/A 

N/A 

Milestone B 

N/A 

Apr 2004 

N/A 

Apr 2004 

Milestone C 

N/A 

Mar 2017 

N/A 

Oct 2017 

IOC 

N/A 

Sep 2015 

N/A 

Oct 2017 

Total Cost (TY $M) 

N/A 

34900.4 

N/A 

40695.5 

Total Quantity 

N/A 

3 

N/A 

3 

PAUC 

N/A 

11633.467 

N/A 

13565.167 


March 21,2016 
17:17:44 


UNCLASSIFIED 


51 







CVN 78 


December 2015 SAR 


EMALS 


Unit Cost Report 



BY 2000 $M 

BY 2000 $M 


Item 

Current UCR 
Baseline 
(Apr 2013 APB) 

Current Estimate 
(Dec 2015 SAR) 

% Change 

Program Acquisition Unit Cost 

Cost 

2263.4 

2092.7 


Quantity 

3 

3 


Unit Cost 

Average Procurement Unit Cost 

754.467 

697.567 

-7.54 

Cost 

1593.4 

1262.7 


Quantity 

3 

3 


Unit Cost 

531.133 

420.900 

-20.75 


BY 2000 $M 

BY 2000 $M 


Item 

Original UCR 
Baseline 
(Apr 2013 APB) 

Current Estimate 
(Dec 2015 SAR) 

% Change 

Program Acquisition Unit Cost 

Cost 

2263.4 

2092.7 


Quantity 

3 

3 


Unit Cost 

Average Procurement Unit Cost 

754.467 

697.567 

-7.54 

Cost 

1593.4 

1262.7 


Quantity 

3 

3 


Unit Cost 

531.133 

420.900 

-20.75 


March 21,2016 
17:17:44 


UNCLASSIFIED 


52 














CVN 78 


December 2015 SAR 


EMALS 


Unit Cost History 


APB Unit Cost History 



M PAUC 
M APUC 


Item 

n oto 

BY 2000 $M 

TY $M 



uaie 

PAUC 

APUC 

PAUC 

APUC 

Original APB 

Apr 2013 

754.467 

531.133 

1071.867 

816.700 

APB as of January 2006 

N/A 

N/A 

N/A 

N/A 

N/A 

Revised Original APB 

N/A 

N/A 

N/A 

N/A 

N/A 

Prior APB 

N/A 

N/A 

N/A 

N/A 

N/A 

Current APB 

Apr 2013 

754.467 

531.133 

1071.867 

816.700 

Prior Annual SAR 

Dec 2014 

718.000 

460.267 

1097.800 

797.300 

Current Estimate 

Dec 2015 

697.567 

420.900 

1042.333 

715.800 


SAR Unit Cost History 


Current SAR Baseline to Current Estimate (TY $M) 


Initial PAUC Changes PAUC 

Development Current 

Estimate Econ Qty Sch Eng Est Oth Spt Total Estimate 


393.900 164.967 0.000 0.000 0.000 483.466 0.000 0.000 648.433 1042.333 


March 21,2016 
17:17:44 


UNCLASSIFIED 


53 











CVN 78 


December 2015 SAR 


Current SAR Baseline to Current Estimate (TY $M) 


Initial APUC Changes APUC 

Development Current 

Estimate Econ Qty Sch Eng Est Oth Spt Total Estimate 


257.100 156.400 0.000 0.000 0.000 302.300 0.000 0.000 458.700 715.800 



SAR Baseline History 




SAR 

SAR 

SAR 

Current 

Estimate 

Item 

Planning 

Estimate 

Development 

Estimate 

Production 

Estimate 

Milestone A 

N/A 

N/A 

N/A 

N/A 

Milestone B 

N/A 

N/A 

N/A 

N/A 

Milestone C 

N/A 

N/A 

N/A 

N/A 

IOC 

N/A 

Sep 2016 

N/A 

Oct 2017 

Total Cost (TY $M) 

N/A 

1181.7 

N/A 

3127.0 

Total Quantity 

N/A 

3 

N/A 

3 

PAUC 

N/A 

393.900 

N/A 

1042.333 


March 21,2016 
17:17:44 


UNCLASSIFIED 


54 







CVN 78 


December 2015 SAR 


Cost Variance 
CVN 78 


Summary TY $M 

H Item 

RDT&E 

Procurement 

MILCON 

Acq O&M 

Total i 

SAR Baseline (Development 

3923.0 

30977.4 

- 

— 

34900.4 

Estimate) 






Previous Changes 






Economic 

+100.7 

+6291.0 

+0.3 

-0.2 

+6391.8 

Quantity 

- 

- 

- 

- 

- 

Schedule 

+172.1 

+667.4 

- 

- 

+839.5 

Engineering 

-480.1 

+398.9 

- 

- 

-81.2 

Estimating 

-192.0 

-2317.5 

+35.9 

+90.9 

-2382.7 

Other 

- 

- 

- 

- 

- 

Support 

- 

- 

- 

- 

- 

Subtotal 

-399.3 

+5039.8 

+36.2 

+90.7 

+4767.4 

Current Changes 






Economic 

-3.4 

+48.9 

-0.1 

-0.8 

+44.6 

Quantity 

- 

- 

- 

- 

- 

Schedule 

- 

- 

- 

- 

- 

Engineering 

- 

- 

- 

- 

- 

Estimating 

+315.1 

+675.3 

+0.1 

-16.1 

+974.4 

Other 

- 

- 

- 

- 

- 

Support 

- 

+8.7 

- 

- 

+8.7 

Subtotal 

+311.7 

+732.9 

- 

-16.9 

+1027.7 

Total Changes 

-87.6 

+5772.7 

+36.2 

+73.8 

+5795.1 

CE - Cost Variance 

3835.4 

36750.1 

36.2 

73.8 

40695.5 

CE - Cost & Funding 

3835.4 

36750.1 

36.2 

73.8 

40695.5 


March 21,2016 
17:17:44 


UNCLASSIFIED 


55 








CVN 78 


December 2015 SAR 


Summary BY 2000 $M 

Item 

RDT&E 

Procurement 

MILCON 

Acq O&M 

Total 

SAR Baseline (Development 
Estimate) 

3490.6 

24235.0 

— 

— 

27725.6 

Previous Changes 






Economic 

- 

- 

- 

- 

- 

Quantity 

- 

- 

- 

- 

- 

Schedule 

+120.2 

- 

- 

- 

+ 120.2 

Engineering 

-352.4 

+ 187.7 

- 

- 

-164.7 

Estimating 

-208.9 

-2322.3 

+27.3 

+66.5 

-2437.4 

Other 

- 

- 

- 

- 

- 

Support 

- 

- 

- 

- 

- 

Subtotal 

-441.1 

-2134.6 

+27.3 

+66.5 

-2481.9 


Current Changes 


Economic 

- 

- 

- 

- 

- 

Quantity 

- 

- 

- 

- 

- 

Schedule 

- 

- 

- 

- 

- 

Engineering 

- 

- 

- 

- 

- 

Estimating 

+220.0 

+371.2 

+0.1 

-12.1 

+579.2 

Other 

- 

- 

- 

- 

- 

Support 

- 

+6.4 

- 

- 

+6.4 

Subtotal 

+220.0 

+377.6 

+0.1 

-12.1 

+585.6 

Total Changes 

-221.1 

-1757.0 

+27.4 

+54.4 

-1896.3 

CE - Cost Variance 

3269.5 

22478.0 

27.4 

54.4 

25829.3 

CE - Cost & Funding 

3269.5 

22478.0 

27.4 

54.4 

25829.3 


Previous Estimate: December 2014 


March 21,2016 
17:17:44 


UNCLASSIFIED 


56 








CVN 78 


December 2015 SAR 


RDT&E 

$M 

Current Change Explanations 

Base 

Year 

Then 

Year 


Revised escalation indices. (Economic) 

N/A 

-3.4 

Adjustment for current and prior escalation. (Estimating) 

+ 1.2 

+1.5 

Revised estimate for CVN 78 Class (Ford Class Design) for the identification and 

+110.8 

+ 161.7 

development of initiatives to reduce construction costs. (Estimating) 



Revised estimate for CVN 78 shock testing. (Estimating) 

+68.7 

+97.2 

Congressional increase in FY 2016 for CVN 78 shock testing. (Estimating) 

+37.2 

+50.0 

Congressional reduction in FY 2016 for CVN 78 due to program under-execution. 

-0.4 

-0.5 

(Estimating) 



Congressional reduction in FY 2016 for CVN 79 due to program under-execution. 

-1.2 

-1.6 

(Estimating) 



Congressional reduction in FY 2016 to CVN 80 for radar integration ahead of need. 

-5.2 

-7.0 

(Estimating) 



Revised estimate for CVN 78 non-pay, non-fuel purchase rate adjustments. (Estimating) 

-1.9 

-2.6 

Revised estimate for CVN 79 non-pay, non-fuel purchase rate adjustments. (Estimating) 

-0.5 

-0.8 

Revised estimate for CVN 80 non-pay, non-fuel purchase rate adjustments. (Estimating) 

-1.6 

-2.2 

Revised estimate for CVN 78 as a result of miscellaneous adjustments. (Estimating) 

-1.2 

-1.4 

Revised estimate for CVN 79 as a result of miscellaneous adjustments. (Estimating) 

-0.3 

-0.4 

Revised estimate for CVN 80 as a result of miscellaneous adjustments. (Estimating) 

-0.5 

-0.6 

Revised estimates in the outyears for Operational Test & Evaluation and Live Fire Test & 

+ 13.6 

+19.9 

Evaluation due to CVN 78 Delivery effort shift. (Estimating) 



Revised estimate due to application of new outyear escalation indices. (Estimating) 

+ 1.3 

+1.9 

RDT&E Subtotal 

+220.0 

+311.7 

Procurement 

$M 


Base 

Thpn 

Current Change Explanations 

Year 

Year 


Revised escalation indices. (Economic) 

N/A 

+48.9 

Adjustment for current and prior escalation. (Estimating) 

-12.5 

-20.8 

Revised estimate for CVN 78 Outfitting/Post Delivery (OF/PD). (Estimating) 

+ 15.5 

+26.5 

Revised estimate for CVN 79 OF/PD. (Estimating) 

+3.1 

+6.2 

Revised estimate for CVN 79 to fund to the PM's Estimate at Completion of $11.498B. 

+83.9 

+ 150.4 

(Estimating) 



Revised estimate for CVN 79 to align with revised cost cap of $11.398B. (Estimating) 

-31.2 

-38.4 

Congressional Reduction in FY 2016 for CVN 79 for Ship's Signal Exploitation Equipment 

-0.9 

-1.6 

hardware and tech services cost growth. (Estimating) 



Congressional reduction in FY 2016 for CVN 79 for High Frequency Radio cost growth. 

-1.6 

-2.8 

(Estimating) 



Congressional reduction in FY 2016 for CVN 79 due to other electronics cost growth. 

-2.5 

-4.3 

(Estimating) 



Congressional reduction in FY 2016 for CVN 79 for MK-29 launching system hardware cost 

-1.7 

-3.0 

growth. (Estimating) 



Congressional reduction in FY 2016 for CVN 79 for Hull Mechnical & Engineering (HM&E) 

-2.0 

-3.5 


engineering services growth. (Estimating) 


March 21,2016 
17:17:44 


UNCLASSIFIED 


57 








CVN 78 


December 2015 SAR 


Congressional reduction in FY 2016 for CVN 79 due to program cost growth. (Estimating) 
Congressional reduction in FY 2016 for CVN 80 to defer non-nuclear long lead material. 
(Estimating) 

Revised estimate for CVN 79 due to miscellaneous adjustments. (Estimating) 

Revised estimate for CVN 80 due to miscellaneous adjustments. (Estimating) 

Decrease to CVN 80 due to realized efficiencies from optimizing the build sequence and re¬ 
phasing funding into earlier years of execution. (Estimating) 

Revised estimate for CVN 80 non-pay, non-fuel purchase rate adjustments. (Estimating) 
Revised estimate due to the addition of first year of Advance Procurement for CVN 81. 
(Estimating) 

Revised estimate due to application of new outyear escalation indices. (Estimating) 

Increase in Other Support to procure CVN 78 classroom training equipment for new 
Contractor Furnished Equipment Systems. (Support) 


-2.0 

-3.5 

-7.1 

-12.3 

+0.2 

+0.2 

+5.1 

+9.4 

-105.7 

-252.0 

-63.4 

-115.5 

+509.1 

+968.4 

-15.1 

-28.1 

+6.4 

+8.7 


Procurement Subtotal 

+377.6 

+732.9 

MILCON 

$M 

Current Change Explanations 

Base 

Year 

Then 

Year 

Revised escalation indices. (Economic) 

N/A 

-0.1 

Adjustment for current and prior escalation. (Estimating) 

+0.1 

+0.1 

MILCON Subtotal 

+0.1 

0.0 

Acq O&M 

$M 

Current Change Explanations 

Base 

Year 

Then 

Year 

Revised escalation indices. (Economic) 

N/A 

-0.8 

Adjustment for current and prior escalation. (Estimating) 

+0.3 

+0.4 

Revised estimate for CVN 78 Life Cycle training system development. (Estimating) 

+2.9 

+3.9 

Revised estimate for CVN 78 sustainment funding. (Estimating) 

-13.3 

-18.0 

Revised estimate due to miscellaneous adjustments. (Estimating) 

-5.0 

-6.8 

Revised estimate for CVN 78 outyear estimates. (Estimating) 

+2.7 

+4.0 

Revised estimate due to application of new outyear escalation indices. (Estimating) 

+0.3 

+0.4 

Acq O&M Subtotal 

-12.1 

-16.9 


March 21,2016 
17:17:44 


UNCLASSIFIED 


58 










CVN 78 


December 2015 SAR 


Cost Variance 
EMALS 


Summary TY $M 

1 Item 

RDT&E 

Procurement 

MILCON 

Total 'i 

SAR Baseline (Development 

410.4 

771.3 

— 

1181.7 

Estimate) 





Previous Changes 





Economic 

+26.1 

+465.8 

- 

+491.9 

Quantity 

-- 

- 

- 

- 

Schedule 

-- 

- 

- 

- 

Engineering 

-- 

- 

- 

- 

Estimating 

+444.3 

+1154.8 

+20.7 

+1619.8 

Other 

- 

- 

- 

- 

Support 

- 

- 

- 

- 

Subtotal 

+470.4 

+1620.6 

+20.7 

+2111.7 

Current Changes 





Economic 

-0.4 

+3.4 

- 

+3.0 

Quantity 

- 

- 

- 

- 

Schedule 

- 

- 

- 

- 

Engineering 

- 

- 

- 

- 

Estimating 

+78.5 

-247.9 

- 

-169.4 

Other 

- 

- 

- 

- 

Support 

- 

- 

- 

- 

Subtotal 

+78.1 

-244.5 

- 

-166.4 

Total Changes 

+548.5 

+1376.1 

+20.7 

+1945.3 

CE - Cost Variance 

958.9 

2147.4 

20.7 

3127.0 

CE - Cost & Funding 

958.9 

2147.4 

20.7 

3127.0 


March 21,2016 
17:17:44 


UNCLASSIFIED 


59 








CVN 78 


December 2015 SAR 



Summary BY 2000 $M 



Item 

RDT&E 

Procurement 

MILCON 

Total 

SAR Baseline (Development 
Estimate) 

Previous Changes 

Economic 

Quantity 

Schedule 

Engineering 

Estimating 

Other 

Support 

384.7 

+369.7 

590.9 

+789.9 

+18.8 

975.6 

+1178.4 

Subtotal 

+369.7 

+789.9 

+18.8 

+1178.4 

Current Changes 

Economic 





Quantity 

- 

- 

- 

- 

Schedule 

- 

-- 

- 

- 

Engineering 

- 

-- 

- 

- 

Estimating 

+56.8 

-118.1 

- 

-61.3 

Other 

- 

- 

- 

- 

Support 

- 

- 

- 

- 

Subtotal 

+56.8 

-118.1 

- 

-61.3 

Total Changes 

+426.5 

+671.8 

+18.8 

+1117.1 

CE - Cost Variance 

811.2 

1262.7 

18.8 

2092.7 

CE - Cost & Funding 

811.2 

1262.7 

18.8 

2092.7 


Previous Estimate: December 2014 


March 21,2016 
17:17:44 


UNCLASSIFIED 


60 








CVN 78 


December 2015 SAR 


RDT&E 

$M 

Current Change Explanations 

Base Then 

Year Year 

Revised escalation indices. (Economic) 

Adjustment for current and prior escalation. (Estimating) 

Revised estimate to support Integrated Test & Evaluation efforts. (Estimating) 

Revised estimate to support land based testing efforts. (Estimating) 

Revised estimate due to miscellaneous adjustments. (Estimating) 

N/A -0.4 

+0.3 +0.4 

+53.0 +73.3 

+2.5 +3.3 

+1.0 +1.5 

RDT&E Subtotal 

+56.8 +78.1 

Procurement 

$M 

Current Change Explanations 

Base Then 

Year Year 

Revised escalation indices. (Economic) 

Adjustment for current and prior escalation. (Estimating) 

Congressional reduction in FY 2016 due to CVN 79 EMALS program cost growth. 

(Estimating) 

Revised estimate for CVN 80 EMALS. (Estimating) 

Revised estimate due to application of new outyear escalation indices. (Estimating) 
Procurement Subtotal 

N/A +3.4 

-0.9 -1.4 

-23.1 -46.5 

-93.1 -198.0 

-1.0 -2.0 

-118.1 -244.5 


March 21,2016 
17:17:44 


UNCLASSIFIED 


61 









CVN 78 


December 2015 SAR 


Contracts 


Contract Identification 


Appropriation: 
Contract Name: 
Contractor: 
Contractor Location: 

Contract Number: 
Contract Type: 
Award Date: 
Definitization Date: 


Procurement 

CVN 78 DETAIL DESIGN & CONSTRUCTION (DD&C) 

Huntington Ingalls Industries (Hll) Newport News Shipbuilding (NNS) 

4101 Washington Avenue 
Newport News, VA 23607-2734 
N00024-08-C-2110 

Cost Plus Award Fee (CPAF), Cost Plus Incentive Fee (CPIF), Cost Plus Fixed Fee (CPFF) 
September 10, 2008 
September 10, 2008 


Contract Price 


Initial Contract Price ($M) 

Current Contract Price ($M) 

Estimated Price At Completion ($M) 

Target Ceiling Qty 

Target Ceiling Qty 

Contractor Program Manager 

4910.5 N/A 1 

6063.0 N/A 1 

6928.3 6911.0 


Target Price Change Explanation 


The difference between the Initial Contract Price Target and the Current Contract Price Target is due to the award of a new 
contract structure for Non-Recurring Engineering (NRE) and adjudicated change orders, procurement of special tooling and 
test equipment, and NRE associated with design and integration of developmental systems. 


Contract Variance 

Item 

Cost Variance 


Schedule Variance 

Cumulative Variances To Date (12/31/2015) 


-1063.1 

-79.5 

Previous Cumulative Variances 


-876.7 

-67.2 

Net Change 


-186.4 

-12.3 


March 21,2016 
17:17:44 


UNCLASSIFIED 


62 











CVN 78 


December 2015 SAR 


Cost and Schedule Variance Explanations 

The unfavorable net change in the cost variance is due to material cost growth (21%), labor inefficiencies (32%), Overhead 
degradation (49%), and Facilities Capital Cost of Money (FCCM) improvement (-2%). The material variances are attributed 
to impacts associated with a "first of class" specification on contractor furnished direct material costs (e.g. valves, electrical 
components), and increases in vendor services cost for supporting completion of new developmental systems (e.g. 
advanced weapons elevators, plasma arc waste disposal system). Labor inefficiencies are the result of unanticipated 
challenges with vendor equipment (e.g. advanced weapons elevators, oxygen plant), design changes (e.g. advanced 
weapons elevator, EMALS), and producibility issues (e.g. thin plate steel, JP-5 corrosion resistant steel piping, weld 
distortion, and the increased use of temporary structures and rigging). Additionally, increased supervision and additional 
recurring engineering costs have been required to manage the above challenges. Contributing to the Cost Variance (CV) are 
schedule impacts due to planning/budgeting integration efforts to accurately apply distributed budgets to both current and 
future work. 

The unfavorable net change in the schedule variance is due to unanticipated challenges with completing developmental 
systems, and the complexity of managing and integrating a large volume of work. Although shipbuilder actions to resolve 
“first of class” issues have retired some technical and schedule risk, HIl-NNS was unable to retire all schedule risk, resulting 
in a four month delay to the launch of CVN 78, with associated impact to delivery. The Navy agreed to delay the delivery date 
accordingly while HII-NNS has increased material funds to facilitate additional Leased Labor for system and compartment 
finalization. Contributing to the Schedule Variance (SV) are schedule impacts due to planning/budgeting integration efforts to 
accurately apply distributed budgets to both current and future work. 


Notes 


The Program Manager's Estimated Price at Completion (PMEPAC) of $6,911M exceeds the current Target Price of 
$6,063M by $848M. This total includes $740M of contractor performance based variance and $108M of authorized work 
that has not yet been adjudicated. Both the PMEPAC and the current cumulative cost variance include this $108M of 
authorized unadjudicated work. Upon adjudication, this work will be moved to target leaving a Price Variance at Completion 
of $740M. The Cost VAC has increased to $1,018M for the reasons described above. The government liability for this cost 
variance is $740M based on share line ratios which reduce the contractor's target fee as cost increases. 


March 21,2016 
17:17:44 


UNCLASSIFIED 


63 







CVN 78 


December 2015 SAR 


Contract Identification 


Appropriation: 
Contract Name: 
Contractor: 
Contractor Location: 

Contract Number: 
Contract Type: 
Award Date: 
Definitization Date: 


Procurement 

CVN 79 Construction Preparation (CP) 

Huntington Ingalls Industries (Hll) Newport News Shipbuilding (NNS) 

4101 Washington Avenue 
Newport News, VA 23607-2734 
N00024-09-C-2116 

Cost Plus Fixed Fee (CPFF), Cost Plus Incentive Fee (CPIF) 
January 15, 2009 
December 08, 2010 


Contract Price 


Initial Contract Price ($M) 

Current Contract Price ($M) 

Estimated Price At Completion ($M) 

Target Ceiling Qty 

Target Ceiling Qty 

Contractor Program Manager 

373.5 N/A N/A 

4237.0 N/A N/A 

4298.6 4295.4 


Target Price Change Explanation 


The difference between the Initial Contract Price Target and the Current Contract Price Target is due to award of CVN 79 
CP contract extensions for FY 2011 through FY 2014 efforts, a modification awarded on June 5, 2015 which includes the 
remaining component and steel fabrication and, multiple modifications for procurement of additional material to support the 
CVN 79 procurement strategy. 


Contract Variance 

| Item 

Cost Variance 


Schedule Variance 

Cumulative Variances To Date (12/31/2015) 


+57.3 

+3.5 

Previous Cumulative Variances 


+ 12.2 

+0.4 

Net Change 


+45.1 

+3.1 

Cost and Schedule Variance Explanations 


The favorable net change in the cost variance is due to meeting performance challenges in the manufacturing and 
assembly process areas that were achieved through improvement initiatives. 


The favorable net change in the schedule variance is due to the shipbuilder's execution of the material procurement plan 
focused on shipset procurements where possible. There was a slight degradation associated with labor performance as the 
shipbuilder's primary focus has been on achieving cost challenges. Mitigation plans are in place to address schedule 
variances in fabrication, assembly, and engineering. 


Notes 


A $941M modification was awarded on June 5, 2015 which includes the remaining component and steel fabrication, and 
selected construction unit assemblies already underway where proven performance results were available. As of 
December 31,2015, the CP contract is 59.1% complete based on dollars. 


March 21,2016 
17:17:44 


UNCLASSIFIED 


64 














CVN 78 


December 2015 SAR 


Contract Identification 


Appropriation: 
Contract Name: 
Contractor: 
Contractor Location: 

Contract Number: 
Contract Type: 
Award Date: 
Definitization Date: 


Procurement 

CVN 79 Detail Design & Construction 

Huntington Ingalls Industries (Hll) Newport News Shipbuilding (NNS) 

4101 Washington Ave 
Newport News, VA 23607 
N00024-15-C-2114 

Fixed Price lncentive(Firm Target) (FPIF) 

June 05, 2015 
June 05, 2015 


Contract Price 


Initial Contract Price ($M) 

Current Contract Price ($M) 

Estimated Price At Completion ($M) 

Target 

Ceiling 

Qty 

Target 

Ceiling 

Qty 

Contractor 

Program Manager 


3352.6 N/A 1 3352.6 N/A 1 3352.6 3296.7 


Contract Variance 

Item 

Cost Variance 


Schedule Variance 

Cumulative Variances To Date (12/31/2015) 


-4.9 

+13.1 

Previous Cumulative Variances 


- 

- 

Net Change 


-4.9 

+13.1 


Cost and Schedule Variance Explanations 

The unfavorable cumulative cost variance is due to initial challenges in ship integration and engineering, and material 
charges for support, maintenance and facilities with only 2.6% of contract complete. 

The favorable cumulative schedule variance is due to efficient performance in planning and engineering, with only 2.6% of 
contract complete. 


Notes 

This is the first time this contract is being reported. 

The Navy awarded a FPIF contract in the amount of $3.35B for the CVN 79 Detail Design & Construction effort. As of 
December 31,2015, the DD&C contract is 2.6% complete based on dollars. 


March 21,2016 
17:17:44 


UNCLASSIFIED 


65 













CVN 78 


December 2015 SAR 


Contract Identification 


Appropriation: 
Contract Name: 
Contractor: 
Contractor Location: 
Contract Number: 
Contract Type: 
Award Date: 
Definitization Date: 


RDT&E 

EMALS Basic Ordering Agreement Logistics Development Order 

General Atomics Electromagnetic Systems Group 

San Diego, CA 92121-1122 

N68335-11-G-0003 

Cost Plus Fixed Fee (CPFF) 

August 12, 2012 
August 12, 2012 


Contract Price 


Initial Contract Price ($M) 

Current Contract Price ($M) 

Estimated Price At Completion ($M) 

Target Ceiling Qty 

Target Ceiling Qty 

Contractor Program Manager 

44.5 N/A 1 

44.6 N/A 1 

46.8 51.2 


Target Price Change Explanation 


The difference between the Initial Contract Price Target and the Current Contract Price Target is due to contract 
modifications to incorporate changes to logistics products due to two EMALS specification change notices. 


Contract Variance 

I Item 

Cost Variance 


Schedule Variance 

Cumulative Variances To Date (12/31/2015) 


-1.6 

-1.5 

Previous Cumulative Variances 


+0.6 

-1.8 

Net Change 


-2.2 

+0.3 

Cost and Schedule Variance Explanations 


The unfavorable net change in the cost variance is due to technical manual development which experienced reduced 
efficiency due to newly hired, inexperienced personnel. Rework of maintenance task analyses and technical manuals due to 
engineering changes were also contributors. 


The favorable net change in the schedule variance is due to technical manual development. Past due fault isolation data 
module development tasks were completed. 


Notes 


The Program Manager's Estimated Price at Completion (PMEPAC) currently exceeds the Current Contract Price by $6.6M. 
An Integrated Baseline Review (IBR) was conducted in December 2013 that yielded 27 findings. A PMEPAC of $63.3M was 
established based on the cost and schedule risks associated with the IBR findings. General Atomics took corrective action 
to address all IBR findings and the IBR was closed in December 2014. Naval Air Systems Command subsequently 
conducted a Schedule Risk Assessment and an updated Estimate at Completion the results of which represent a $12.1M 
reduction in the PMEPAC to $51.2M. This order is currently 81.5% complete. 


March 21,2016 
17:17:44 


UNCLASSIFIED 


66 















CVN 78 


December 2015 SAR 


Deliveries and Expenditures 

CVN 78 


Deliveries 

Delivered to Date 

Planned to Date Actual to Date 

Total Quantity 

Percent 

Delivered 

Development 

Production 

0 

0 

0 0 

0 3 

0.00% 

Total Program Quantity Delivered 

0 

0 3 

0.00% 


Expended and Appropriated (TY $M) 


Total Acquisition Cost 
Expended to Date 
Percent Expended 
Total Funding Years 


40695.5 Years Appropriated 
19132.8 Percent Years Appropriated 
47.01% Appropriated to Date 
32 Percent Appropriated 


20 

62.50% 

23661.4 

58.14% 


The above data is current as of February 25, 2016. 


EMALS 


Deliveries 

Delivered to Date 

Planned to Date 

Actual to Date 

Total Quantity 

Percent 

Delivered 

Development 

Production 

0 

0 


0 0 

0 3 

0.00% 

Total Program Quantity Delivered 

0 


0 3 

0.00% 


Expended and Appropriated (TY $M) 


Total Acquisition Cost 3127.0 

Expended to Date 1215.0 

Percent Expended 38.86% 

Total Funding Years 24 


The above data is current as of February 25, 2016. 


Years Appropriated 17 

Percent Years Appropriated 70.83% 

Appropriated to Date 2059.9 

Percent Appropriated 65.87% 


March 21,2016 
17:17:44 


UNCLASSIFIED 


67 















CVN 78 


December 2015 SAR 


Operating and Support Cost 

CVN 78 


Cost Estimate Details 


Date of Estimate: 
Source of Estimate: 
Quantity to Sustain: 
Unit of Measure: 
Service Life per Unit: 
Fiscal Years in Service: 


March 02, 2016 

POE 

3 

Ship 

50.00 Years 
FY2017- FY 2077 


The current APB Objective/Threshold values and current estimate reflects Total O&S costs for three ships in accordance 
with the current Program of Record. The CVN 78 Class Program is planned for a total of 11 ships over a 50 year service 
life. 

O&S costs are developed at the ship level, on an annual cost per ship basis by cost category and appropriation, with total 
and annual average cost over the ship's expected service life. Costs are estimated for all categories listed in the CAPE 
Operating and Support Cost Estimating Guide using historical data from operating carrier classes and the Chief of Naval 
Operations (OPNAV) "Maintenance" Notices. Maintenance and Personnel costs are the major contributors to the total 
O&S Program. 


Sustainment Strategy 

Sustainment strategy includes nuclear aircraft carrier certified Naval Shipyards (Newport News Shipyard (NNSY), Puget 
Sound Naval Shipyard (PSNSY) & Intermediate Maintenance Facility (IMF)) and/or Huntington-lngalls, Inc - Newport News 
Shipyard (HII-NNS) for Depot-level Maintenance in concert with regional multi-ship/multi-option (MSMO) contractors, 
Intermediate-level activities (e.g., Mid-Atlantic Regional Maintenance Center (MARMC), Southwest Regional Maintenance 
Center (SWRMC)), Organizational-level maintenance strategies, and the employment of existing shore support to the 
maximum extent possible. 


Antecedent Information 


The CVN 68 O&S costs were derived from requirements, actual returns, and the Naval Visibility and Management of 
Operating and Support Costs (VAMOSC) database, with the primary focus using requirements. Unit Level Manpower 
(1.0) was based on authorized billets (3,291) as detailed in the CVN 68 Ship Manpower Document (SMD); the billets were 
multiplied against the OSD composite rates for calculating the unit level manpower. Indirect Support (6.0) was based on 
authorized billets (3,291) as detailed in the CVN 68 SMD; the billets were multiplied against the Naval Center for Cost 
Analysis (NCCA) Manpower Cost Estimating Tool for Enhanced Online Reporting (METEOR) rates for calculating the 
indirect support cost. Depot Maintenance (3.3) was derived from OPNAV Note 4700 (dated June 8, 2015). 

Unit Operations (2.0), Intermediate Maintenance (3.2), Sustaining Support (4.0), and Continuing System Improvements 
(5.0) were derived from VAMOSC, with data pulled from FY 2000 through FY 2010; using full year data and excluding CVN 
73 which was a forward deployed ship starting in 2008. 


March 21,2016 
17:17:44 


UNCLASSIFIED 


68 









CVN 78 


December 2015 SAR 


Annual O&S Costs BY2000 $M 

Cost Element 

CVN 78 

Average Annual Cost Per Ship 

CVN 68 Class (Antecedent) 
Average Annual Cost Per Ship 

Unit-Level Manpower 


129.020 

162.738 

Unit Operations 


10.130 

10.241 

Maintenance 


101.286 

130.099 

Sustaining Support 


10.853 

11.818 

Continuing System Improvements 


20.163 

23.600 

Indirect Support 


119.520 

151.083 

Other 


0.000 

0.000 

Total 


390.972 

489.579 



Total O&S Cost $M 

Item 

CVN 78 

r\/M CQ Place 


Current Development APB 
Objective/Threshold 

Current Estimate 

vVN DO vsIcISS 

(Antecedent) 

Base Year 

Then Year 

55600.0 61160.0 

251600.0 N/A 

58645.8 

180995.0 

244789.7 

N/A 


Total O&S cost for 11 ships would be $215,034.69M BY dollars/$1,041,643.00M in TY dollars. 


Equation to Translate Annual Cost to Total Cost 


Total Cost = Average Annual Cost Per Ship * 

Number of Ships * Service Life = $390,972 * 3 * 50 = $58,645.83M 

O&S Cost Variance 

1 Category 

Change Explanations 

Prior SAR Total O&S Estimates - Dec 

48009.8 

2014 SAR 


Programmatic/Planning Factors 

0.0 

Cost Estimating Methodology 

1425.0 Updated to reflect updated OPNAV 4700 Note dated June 


08, 2015. 

Cost Data Update 

321.2 Update to reflect updated VAMOSC data from FY 2000-FY 


2014. 

Labor Rate 

7539.8 Updated to reflect revised labor and health benefit rates. 

Energy Rate 

0.0 

Technical Input 

1350.0 Added software maintenance costs for Advanced Arresting 


Gear (AAG), Ship Self Defense System (SSDS), 


Enterprise Air Surveillance Radar (EASR), and Machinery 


Control and Monitoring System (MCMS). 

Other 

0.0 

Total Changes 

10636.0 


March 21,2016 
17:17:44 


UNCLASSIFIED 


69 














CVN 78 


December 2015 SAR 


Current Estimate 

58645.8 

Disposal Estimate Details 


Date of Estimate: 

Source of Estimate: 

Disposal/Demilitarization Total Cost (BY 2000 $M): 

July 18, 2007 

POE 

Total costs for disposal of all Ship are 1612.2 


The current estimate for disposal costs for the CVN 78 Class ships is $5,911,4M for eleven ships in BY 2000 dollars. 
Disposal costs include disposal of EMALS. 


March 21,2016 
17:17:44 


UNCLASSIFIED 


70 





CVN 78 


December 2015 SAR 


EMALS 


Cost Estimate Details 


Date of Estimate: 
Source of Estimate: 
Quantity to Sustain: 
Unit of Measure: 
Service Life per Unit: 
Fiscal Years in Service: 


March 02, 2016 

POE 

3 

Ship 

50.00 Years 
FY2017- FY 2077 


The current APB Objective/Threshold values and current estimate reflects Total O&S costs for three shipsets in 
accordance with the current Program of Record. The CVN 78 Class Program is planned for a total of 11 shipsets over a 
50 year service life. 

O&S Costs are developed at the ship level, on an annual cost per ship basis by cost category and appropriation, with total 
and annual average cost over the ship's expected service life. Costs are estimated for all categories listed in the CAPE 
Operating and Support Cost Estimating Guide using historical data from operating carrier classes and 
the OPNAV "Maintenance" Notices. Maintenance and Personnel costs are the major contributors to the total O&S 
Program. 


Sustainment Strategy 

EMALS will be under a blended support and sustainment scenario by the Original Equipment Manufacturer (OEM), 
General Atomics (GA), and Navy support from Naval Air Systems Command (NAVAIR) PMA 251 as is applicable. The 
intention is for GA to provide support and have the shipyards and the Navy to provide the both industrial level support, (i.e. 
cranes, lifts, power (including step down backup) and air) as well as shop modifications, equipment to support motor 
repairs, equipment storage areas and temperature controls. 

The final EMALS System Maintenance Plan review was conducted in November 2015. The delivery of final maintenance 
planning information is currently projected to be 3rd quarter FY 2016 as part of the submission of Provisioning Technical 
Data. Depot Planning to support out year requirements is slated to begin during FY 2018 with an estimated completion 
date of FY 2019/2020. 


Antecedent Information 


EMALS is specifically designed to meet the requirements of the CVN 78 class. The advanced technologies and 
capabilities, and unique ship interface requirements of EMALS do not exist in any legacy launcher systems. As such, 
there are no comparable antecedent systems. 


March 21,2016 
17:17:44 


UNCLASSIFIED 


71 









CVN 78 


December 2015 SAR 


Annual O&S Costs BY2000 $M 

Cost Element 

EMALS 

Average Annual Cost Per Ship 

No Antecedent (Antecedent) 

Unit-Level Manpower 

4.453 

0.000 

Unit Operations 

0.000 

0.000 

Maintenance 

5.995 

0.000 

Sustaining Support 

1.494 

0.000 

Continuing System Improvements 

3.658 

0.000 

Indirect Support 

1.704 

0.000 

Other 

0.000 

0.000 

Total 

17.304 




Total O&S Cost $M 

Item 

EMALS 



Current Development APB 
Objective/Threshold 

Current Estimate 

imo Anieceaeni 

(Antecedent) 

Base Year 

Then Year 

2574.3 2831.7 

6422.6 N/A 

2595.6 

7832.0 



Total O&S cost for 11 Shipsets would be $9,517.0M in BY dollars/$44,956.0M in TY dollars. 


Equation to Translate Annual Cost to Total Cost 

Total Cost = Average Annual Cost Per Shipset * number of Shipsets * Service Life = $17.304M * 3 * 50 = $2,595.6M 


O&S Cost Variance 

Category 

BY 2000 
$M 

Change Explanations 

Prior SAR Total O&S Estimates - Dec 

2014 SAR 

2574.3 



Programmatic/Planning Factors 

21.3 Revised to reflect movement of depot stand-up from FY 
2017 to FY 2021. 

Cost Estimating Methodology 

0.0 

Cost Data Update 

0.0 

Labor Rate 

0.0 

Energy Rate 

0.0 

Technical Input 

0.0 

Other 

0.0 


Total Changes 

21.3 

Current Estimate 

2595.6 


March 21,2016 
17:17:44 


UNCLASSIFIED 


72 














CVN 78 


December 2015 SAR 


Disposal Estimate Details 

Date of Estimate: July 18, 2007 

Source of Estimate: POE 

Disposal/Demilitarization Total Cost (BY 2000 $M): Total COStS for disposal of all Ship are 0.0 

EMALS disposal costs are included in the CVN 78 Class Disposal Cost. 


March 21,2016 
17:17:44 


UNCLASSIFIED 


73