Posted on Oct 20, 2015
McCain slams cost overruns for Ford-class carriers as 'outrageous.' What are your thoughts?
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It was battle stations for the Navy's newest supercarriers in October. Lawmakers broadsided the Ford-class carriers for growing costs and delivery delays, which largely stem from challenges with the class' leap-ahead technologies.
The latest confrontation began Oct. 1, when the chairman of the Senate Armed Service Committee, Sen. John McCain, R-Ariz., called the Ford-class carrier program “one of the most spectacular acquisition debacles in recent memory.” The committee demanded to know what went wrong and who was accountable, with the first-in-class Gerald R. Ford now estimated to cost $12.9 billion — $2.4 billion over its initial price tag.
“I am accountable,” replied Sean Stackley, the assistant Navy secretary for research, development and acquisition. “Costs were estimated, and design and production proceeded with inadequate information regarding the complexity of the new
McCain blasted the program a second time Wednesday, highlighting it in his latest edition of “America’s Most Wasted,” a series with the goal of “highlighting, naming and shaming outrageous pork projects funded with your taxpayer dollars.” The Ford-class program is estimated to be more than $6 billion over budget, McCain said. In addition to the 23 percent rise in the cost of the Ford, the future carrier's delivery is at least eight months delayed. Delivery was scheduled for March 31, but officials in late September pushed that back six to eight weeks to allow more time for shipboard tests. Extra manpower money could have made up the difference, but was not an option under the ship’s tight cost cap, said Capt. John Meier, Ford’s commanding officer. “This presents some challenges — no significant roadblocks, it's just the timeliness issue,” Meier told Navy Times the day after the decision to delay. “The pure and simple volume of the technological challenges and change from the Nimitz class to the Ford has created this bow wave of delay.”
The powerful senator said “[n]ot a single senior official has been held accountable for the failures of this program to date. This is due in no small part to a diffusion of authority across multiple offices and program acquisition managers — blurred lines of accountability that allow the leaders of our defense acquisition system to evade responsibility for results."
As
And that is the reason for growing frustration on Capitol Hill, according to McCain’s report. The decision to develop and integrate “a host of advanced — and entirely unproven — technologies all at once, has proven to be the failure of this program.” Only 27 percent of the ship was designed and just five of its 13 new systems were mature when the building program launched. Laden with cost and schedule estimates that had little margin for error, that plan deteriorated as technologies failed to develop.
The senator cited the Advanced Arresting Gear as “one of the most egregious examples of acquisition gone awry.” The new arresting system's price tag is now $1 billion, which is 600 percent over budget. It has taken twice as long to develop as planned. The higher per unit cost and late delivery means Nimitz-class carriers will not be upgraded with AAG, as was planned. When asked for response, PEO Carriers said it had nothing new to add to Stackley’s Oct. 1 testimony. In his remarks, the assistant secretary concurred that the incorporation of 23 developmental systems at various levels of technical maturity “significantly compounded the inherent challenges associated with accomplishing the first new aircraft carrier design in 40 years.” But he added that the new carrier class will be able to meet unprecedented operational challenges at a savings of $4 billion per ship ($80 million per year over a 50-year lifespan.)
McCain remains skeptical. “Since the Second World War, the aircraft carrier has been the centerpiece of our Navy’s fleet,” McCain said in his report. “But the decisions made on the CVN 78 program now threaten to end that legacy.”
The latest confrontation began Oct. 1, when the chairman of the Senate Armed Service Committee, Sen. John McCain, R-Ariz., called the Ford-class carrier program “one of the most spectacular acquisition debacles in recent memory.” The committee demanded to know what went wrong and who was accountable, with the first-in-class Gerald R. Ford now estimated to cost $12.9 billion — $2.4 billion over its initial price tag.
“I am accountable,” replied Sean Stackley, the assistant Navy secretary for research, development and acquisition. “Costs were estimated, and design and production proceeded with inadequate information regarding the complexity of the new
McCain blasted the program a second time Wednesday, highlighting it in his latest edition of “America’s Most Wasted,” a series with the goal of “highlighting, naming and shaming outrageous pork projects funded with your taxpayer dollars.” The Ford-class program is estimated to be more than $6 billion over budget, McCain said. In addition to the 23 percent rise in the cost of the Ford, the future carrier's delivery is at least eight months delayed. Delivery was scheduled for March 31, but officials in late September pushed that back six to eight weeks to allow more time for shipboard tests. Extra manpower money could have made up the difference, but was not an option under the ship’s tight cost cap, said Capt. John Meier, Ford’s commanding officer. “This presents some challenges — no significant roadblocks, it's just the timeliness issue,” Meier told Navy Times the day after the decision to delay. “The pure and simple volume of the technological challenges and change from the Nimitz class to the Ford has created this bow wave of delay.”
The powerful senator said “[n]ot a single senior official has been held accountable for the failures of this program to date. This is due in no small part to a diffusion of authority across multiple offices and program acquisition managers — blurred lines of accountability that allow the leaders of our defense acquisition system to evade responsibility for results."
As
And that is the reason for growing frustration on Capitol Hill, according to McCain’s report. The decision to develop and integrate “a host of advanced — and entirely unproven — technologies all at once, has proven to be the failure of this program.” Only 27 percent of the ship was designed and just five of its 13 new systems were mature when the building program launched. Laden with cost and schedule estimates that had little margin for error, that plan deteriorated as technologies failed to develop.
The senator cited the Advanced Arresting Gear as “one of the most egregious examples of acquisition gone awry.” The new arresting system's price tag is now $1 billion, which is 600 percent over budget. It has taken twice as long to develop as planned. The higher per unit cost and late delivery means Nimitz-class carriers will not be upgraded with AAG, as was planned. When asked for response, PEO Carriers said it had nothing new to add to Stackley’s Oct. 1 testimony. In his remarks, the assistant secretary concurred that the incorporation of 23 developmental systems at various levels of technical maturity “significantly compounded the inherent challenges associated with accomplishing the first new aircraft carrier design in 40 years.” But he added that the new carrier class will be able to meet unprecedented operational challenges at a savings of $4 billion per ship ($80 million per year over a 50-year lifespan.)
McCain remains skeptical. “Since the Second World War, the aircraft carrier has been the centerpiece of our Navy’s fleet,” McCain said in his report. “But the decisions made on the CVN 78 program now threaten to end that legacy.”
Navy
Cost Estimator
Posted 10 y ago
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We'll see if we can get the Air Force to scrap a few of those F-35's for ya...
That should cover the cost... ;)
That should cover the cost... ;)
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It's the same game. Win the bid with a low price and make up for it with change orders from the DOD. To be fair no one could estimate a vessel such as this that will take years to complete and be current technology.
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SCPO (Join to see)
I heartily agree. But this may put a big crimp in the Navy's goal for a 15-carrier force. We have eleven now, and three of those are toast in ten years or less. Being a former carrier squid, I know there is nothing more imitating than the dozen "visible" ships of a U.S. Navy carrier task force.
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Suspended Profile
Master Chief, Senior Chief; the Navy does as many change orders as does Newport News, if not more. They love the growth, because it exempts them from performance penalties... Every SHIPALT, every "Gee I wish I had this or that" etc...
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If you think there are cost overruns now, wait until they put F-35s on it...
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Does Congress Ever Look at the taxpayers Dollars that they continue to WASTE ! They could Cut-back with their spending, also they could keep the Government/Country running.. this would save the Country money..
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SCPO (Join to see)
Hardly, Nick. Those puppies are going to be around for a long time. Their versatility and adaptability will prove to be their greatest assets.
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First off Senator McCain is an ass and needs to retire very quickly.
Secondly there is never anything made for any service that has ever come in at or below budget.
Fix the contracting process, if the contractor says it can do the contract for $2 billion then anything over that is on the contractor unless the military comes in and says how much would this cost to add? Then stick with whatever number is given. We need to stop all of this wasteful spending and crooked accounting.
I would be wiling to bet that if you broke down the cost to build a piece of military equipment that the costs would be less than are actually reported. Its simply greed that drives these costs up and they are greedy because they know that their costs are going to be met.
Secondly there is never anything made for any service that has ever come in at or below budget.
Fix the contracting process, if the contractor says it can do the contract for $2 billion then anything over that is on the contractor unless the military comes in and says how much would this cost to add? Then stick with whatever number is given. We need to stop all of this wasteful spending and crooked accounting.
I would be wiling to bet that if you broke down the cost to build a piece of military equipment that the costs would be less than are actually reported. Its simply greed that drives these costs up and they are greedy because they know that their costs are going to be met.
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SCPO (Join to see)
First, I despise people who slander John McCain. Secondly, I know nothing about the contracting process, and, as sure as I am that the Sun will rise in the East tomorrow, I am certain that you know even less. Does it have issues, damn straight. Nine-hundred dollar toilet seats say enough about that problem.
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PO1 Glenn Boucher
Well contracting is not that hard once you get rid of the greed factor.
I did plenty of contracts as a cook in the Navy, between linen and maintenance contracts in the barracks and food and inventory costs in the galley its something you learn.
Maybe you think because I am a retired CS1 that I don't know about contracts but rest assured I have a very good knowledge about how contracting works, my Chief and Senior Chief relied on me to give an input on the various contracts and budgets when I was assigned in the barracks. I am apologize in advance for assuming, again no disrespect intended.
I learned how to figure out the costs of food servings even before it became an automated process, if I can figure out how much 1 serving of lasagna costs then figuring out how much it costs to build an aircraft carrier is not that much harder, it will be much longer and more detailed but in the end its an itemized list of parts, materials and man hours used to make the final product.
Actually very similar to what is figured out during a ships availability period when you have to budget for work to be done its in the deeper part of the 3M System.
I will not apologize for saying anything about Senator McCain and I did not slander him, honestly I may have been a bit disrespectful but sometimes its hard to respect politicians such as Senator McCain because of his actions, or lack of action, as a politician. I do respect him for his time in service as a Naval Aviator and a POW. I cannot respect him for his continued failure to provide for veterans and for his continued attacks on military spending including pay raises for active duty, reservists and retirees. I would be willing to bet as a result of his days as a POW that Senator McCain is receiving closed to 100% disability pension if not actually 100%. he benefits from the VA yet fails to help his fellow veterans.
I personally feel that its well past time for Senator McCain to gracefully retire.
I did plenty of contracts as a cook in the Navy, between linen and maintenance contracts in the barracks and food and inventory costs in the galley its something you learn.
Maybe you think because I am a retired CS1 that I don't know about contracts but rest assured I have a very good knowledge about how contracting works, my Chief and Senior Chief relied on me to give an input on the various contracts and budgets when I was assigned in the barracks. I am apologize in advance for assuming, again no disrespect intended.
I learned how to figure out the costs of food servings even before it became an automated process, if I can figure out how much 1 serving of lasagna costs then figuring out how much it costs to build an aircraft carrier is not that much harder, it will be much longer and more detailed but in the end its an itemized list of parts, materials and man hours used to make the final product.
Actually very similar to what is figured out during a ships availability period when you have to budget for work to be done its in the deeper part of the 3M System.
I will not apologize for saying anything about Senator McCain and I did not slander him, honestly I may have been a bit disrespectful but sometimes its hard to respect politicians such as Senator McCain because of his actions, or lack of action, as a politician. I do respect him for his time in service as a Naval Aviator and a POW. I cannot respect him for his continued failure to provide for veterans and for his continued attacks on military spending including pay raises for active duty, reservists and retirees. I would be willing to bet as a result of his days as a POW that Senator McCain is receiving closed to 100% disability pension if not actually 100%. he benefits from the VA yet fails to help his fellow veterans.
I personally feel that its well past time for Senator McCain to gracefully retire.
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