The U.S. Navy has established an affordability plan that sets its annual budget for new Ford-class aircraft carriers at $25 million beginning 2017 to address concerns over cost overruns, DoD Buzz reported Thursday.
Kris Osborn writes that the plan will work to keep spending on the USS Kennedy within the Congress-imposed cap of $11.498 billion after the USS Ford cost the Navy $12.8 billion.
“We will use this design for affordability to make new improvements in cost-cutting technologies that will go into our ships,” said Rear Adm. Michael Manazir, director of air warfare.
Huntington Ingalls Industries‘ Newport News Shipbuilding arm is building Kennedy under a fixed-price contract with incentives for cost savings, the report said.
Osborn reports that costs on the construction of the USS Ford, which is scheduled for delivery to the Navy next year, were attributed to factors such as the integration of many new systems into a single platform and the Ford being a first-in-class ship.
The report that Rear Adm. Thomas Moore, program executive officer for aircraft carriers, recently told reporters that the affordability initiative also aims to cut $500 million from the costs of the USS Enterprise and build future Ford-class carriers in the same length of time as the previous Nimitz-class carriers.