Tuesday, September 22, 2015

Cuts To Zumwalt Destroyer Won’t Save Much « Breaking Defense - Defense industry news, analysis and commentary

Cuts To Zumwalt Destroyer Won’t Save Much « Breaking Defense - Defense industry news, analysis and commentary: The DDG-1000 Zumwalts are expensive; three ships will cost almost $13 billion. About $9 billion of that was spent on research and development alone. As a result, they’re the most sophisticated surface combatants in the Navy, with a radar-baffling hull and enough electrical power to run high-tech weapons like lasers and rail guns. To pack in all that technology, they’re also 60 percent larger than the standard Arleigh Burke (DDG-51) design. Originally intended as the follow-on to the Burkes, they grew so expensive that, in a classic death spiral, the Navy cut the production run repeatedly: from 32 to 24 to 16 to seven to three.

Now, according to a Pentagon memo, first reported by Bloomberg’s Tony Capaccio, the Defense Department’s independent Cost Assessment & Program Evaluation office (CAPE) is considering cutting the third ship — which is in large part already built and paid for.

“If they wanted to kill the third ship , they’re about two years late,” said Loren Thompson, a defense industry analyst and consultant — and member of BD’s Board of Contributors — who’s criticized the Navy’s handling of the Zumwalt program. “You will lose an entire warship, but you will only reclaim a fraction of the cost. So, given the likely political fallout, why would you do it?”

Counting the current fiscal year (which ends nine days from now), Congress will have appropriated $11.8 billion for the DDG-1000 program, out of a projected total of $12.8 billion. So the maximum possible amount left to save is $979 million