WASHINGTON, D.C. — The Navy will present an updated Ohio Replacement Program cost estimate to the Defense Department later this summer and seek approval to move into detailed design and engineering work, the Program Executive Officer for Submarines said today.
The new ballistic missile submarine program will request a Milestone B decision from the Pentagon’s acquisition chief and the Defense Acquisition Board, and “coincident with that, we’re also producing a new cost estimate,” Rear Adm. Michael Jabaley said at an event co-hosted by the Center for Strategic and International Studies and the U.S. Naval Institute. He said the Navy is still working through this component cost position, of the lifecycle cost estimate, and is awaiting final approval of that dollar figure before presenting to the DAB.
A 2014 cost estimate put the program’s average follow-ship cost — ships two through 12, not including the typically most-expensive lead ship – at $5.2 billion, squarely in between the mandatory threshold of $5.6 billion and the target objective of $4.9 billion. Jabaley added that the 2014 cost estimate put the non-recurring costs – engineering work and building facilities to produce the subs – at $17.4 billion. Updated figures will be publicly released after the DAB approves the Milestone B decision, he said.