The Congressional Budget Office said the U.S. Navy may need to scale down the inventory requirements under its fiscal year 2015 shipbuilding plan in light of recent budget cuts at the Defense Department.
The service plans to spend $21 billion (in 2014 dollars) on average to complete its 30-year shipbuilding plan, CBO said, citing documents the Pentagon submitted to Congress in July of this year.
According to CBO’s analysis published Monday, the figure is 35 percent larger than most of the previous funding the Navy has been allotted in recent years.
The office estimates construction costs for the service’s inventory goal of 264 new ships through years 2014 to 2044 will amount to $566 billion or $18.9 billion a year, up $66 billion (13 percent) from the Navy report’s calculations.
The new ships include 218 warships, with the other 46 vessels to be used for combat logistics and support.
“If the Navy receives the same amount of funding (in constant dollars) for new-ship construction in each of the next 30 years that it has on average over the past three decades, it will not be able to afford its 2015 plan,” CBO said.