Description
Organization: NAVSEA, PMS-400
Team Name: DDG-51 Program Office
Related Acquisition Topic(s): Commercial Practices, Financial Management, Partnering
Description: Program Description: The Arleigh Burke (DDG-51 Class) acquisition program, with the first ship awarded in 1985, is a significant success story in achieving substantial acquisition program savings over the life of the program.
The Milestone IV DAB directed the Navy to program for a total of 57 ships. To date a total of 32 ships have been awarded to two shipbuilders: Bath Iron Works as the lead yard and Ingalls Shipbuilding as the follow yard. Ten ships have been commissioned (eleven when DDG-61 commissions 22 July 1995) and an additional 21 ships are in construction.
Program Cost Reduction: The DDG-51 program has realized $269M in cumulative cost reductions for FY 85 - 95 ships (with an additional $330M projected through FY 01) through the Navy's partnership with industry in the DDG-51 Class Affordability Program.
Cost reductions have been achieved through the DDG-51 Class Affordability Program in a cooperative effort among PMS 400, Supervisors of Shipbuilding, shipbuilders, and other defense contractors. The Navy uses a rigorous review process to evaluate the technical and cost reduction merits of innovative ideas while also managing the associated risks. The result is reduced costs to the Navy and shipbuilders through cost reductions achieved on the shipbuilding contract shareline.
Some specific initiatives are listed below:
Initiative
Estimated Savings Per Ship
Advanced Electrical Distribution
Delete Requirement for HP Air Service
Fastener Standardization
Commercial Applications in AEGIS Consoles
$0.786M
$1.100M
$1.100M
$1.000M
