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
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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
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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
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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
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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
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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
