VA Class Cost Reduction

Presented by Joel BinderDecember 5, 2007

EMSE 231Program and Project Management

Professor Jim Collins

VIRGINIA Class SubmarineCost Reduction Effort

Approved for Public Release

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Introduction to Submarines

Ballistic Missile Submarine (SSBN)– OHIO Class

• Length: 560 feet

• Beam: 42 feet (10.1 meters)

• Displacement: 18750 t submerged

– Patrols oceans on strategic deterrence missions

– Four SSBNs converted to SSGNs

Fast Attack Submarine (SSN)

– VIRGNIA Class• Length: 377 feet

• Beam: 34 feet (10.1 meters)

• Displacement: 7800 t submerged

– Open ocean and littoral missions– Cost Reduction Program

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Fast Attack Submarine Classes

Length: 353 feet (107.6 meters)

USS JIMMY CARTER - 453 feet

Beam: 40 feet (12.2 meters)

Displacement: 10,248 t submerged

USS JIMMY CARTER - 12,151 t

Speed: 25+ knots

Ships: USS SEAWOLF (SSN 21) USS CONNECTICUT (SSN 22) USS JIMMY CARTER (SSN 23)

Crew: 145 (total) 134 (deployed) (14 Officers, 120 Enlisted)

LOS ANGELES Class




Speed: 25+ knots

Ships: 688 and 688(I) – 46 total


VIRGINIA Class




Speed: 25+ knots

Ships: USS VIRGINIA (SSN 774) USS TEXAS (SSN 775) USS HAWAII (SSN 776)

Seven ships under construction.


SEAWOLF Class

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Platform Description

Characteristics:• Length: 377 Feet • Beam: 34 Feet• Displacement: 7800 LT

Submerged• Test Depth: > 800 Feet• Speed: > 25 Knots• Weapons Launchers:

4 Horizontal, 12 Vertical• Accommodations: 119

total berths; 118 crew deployed

Design Requirements:• Design for stealth

performance equal to SEAWOLF Class

• Make the design flexible enough to adapt to changing missions

• Build in capability to accept future technology upgrades

• Be affordable; Required trading off speed, depth, and payload capacity

Features:• Lock-in/Lockout Trunk• Next generation

propulsor• Reconfigurable

torpedo room• Modular Isolated Deck

Structure (MIDS)

Key Performance Parameters:

• Radiated noise• Active target strength • Electro-magnetic quieting• Non-acoustic signatures• Flank speed• Torpedo launch rate• Payload• VLS missile cells• Test depth• Endurance• Net ready

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New Technology on theBaseline VIRGINIA Class

12 VerticalLaunch System

Canisters

Reconfigurable

Torpedo Room

Advanced Seal Delivery System Capable Lock-In / Lock-Out Chamber

Wide ApertureArray Panels High Frequency

ChinArray

SailArray

Logistic Escape Trunk(LET)

DDS CapableLogistic

Plug Trunk (LPT)

LockoutTrunk(LOT)

WeaponsShipping

Hatch

SOF ControlStation

SonarSphere

Universal Modular Masts

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Multiple Mission Capability to Counter Multi-Faceted Threats

Supporting Sea Power 21 concepts: Sea Shield by control of the seas and sustained littoral access; Sea Basing as a sovereign platform capable of deploying Special Operations Forces (SOF); and

Sea Strike through information superiority and flexible strike capabilities.

Power ProjectionCovert Insertion, Support & Extraction of SOF

Battle Group SupportCovert Mine Warfare

Anti-Submarine Warfare

Anti-Surface Ship Warfare

Covert Intelligence/Surveillance &

Reconnaissance

Sea Shield Sea Basing Sea Strike

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VIRGINIA Program Overview

• Innovative design and construction arrangement

– Integrated Product and Process Development (IPPD) environment

– Shipbuilders―General Dynamics, Electric Boat (EB) and Northrop Grumman Newport News (NGNN) are the design and construction team; EB is prime contractor

• Thirty ship program

– 10 ships under contract including 3 ships delivered and 6 ships under construction

• Cost Prohibitive

– Target price was to be $1.8 Billion per ship compared to the $2 Billion SEAWOLF

– Actually cost $2.4 Billion in 2005 dollars.

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VIRGINIA Class Submarine Cost Reduction

3 Element Strategy

• 7 Ship Multi-Year Procurement Contract (Block III)

– Legislative Proposal along with Presidential Budget

• Construction Performance

– 84 to 60 months

– Capital Expenditure Program

• Design for Cost Reduction

Reducing Cost Without Reducing Capabilities

$600M FY08-FY13 Program

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VIRGINIA Cost Reduction Status

Milestones (FY05$)

$2.0 B

$2.4 B 7 Ship MYP Contract (Block III)Transition to 2/yr VA in a MYP contract with EOQ material buys Anticipated to achieve savings of $150M to $200M per hullNo further initial investment required to achieve this savingsConfidence this savings can be delivered is high

Design for Cost ReductionCapability Neutral ~$500-600M $150M $9.2M

Capability Reduction $TBD $TBD $0M

Construction PerformanceWork Share Allocation: NA $50M $10MProducibility: NA $10M $5MCapital Expenditures (CAPEX) NA $15M $8MConstruction Span Reduction (84 to 60) $15M $55M $0MNPES Initial Outfit $10M $20M $0M

$150M

$150M

$200M

$2.2 B

$2.1 BProposed Potential RealizedInvestment /ship /ship

Proposed Potential RealizedInvestment /ship /ship

Target is $2B in FY05$ by FY12

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Project Investment

VIRGINIA Class

Savings

($ in Millions) ($ in Millions)

Sheetmetal Light Fabrication Facility Project EB $9.4 $31.0

NGNN Modular Outfitting Facility Upgrade NN $7.1 $41.2

Module Transportation Project EB $13.1 $98.6

Horizontal Machining Center Upgrade NN $0.6 $4.7

Quonset Point Coating Facility Project EB $9.3 $139.5 Pre-launch Final Assembly Facility (B260) Upgrade

EB $18.2 $81.3

Multi-Purpose Portable Enclosures NN $2.1 $8.7

AMI Clamp-On Welders NN $0.9 $7.4

"To Fit Work" (TFW) Machining Facility NN $0.5 $3.8

C-Seam Welding Machines NN $1.8 $5.8

Project Description Locn

• Special incentive in Block II contract

– Provides $91M (funds available) for shipyard projects that facilitate reduced construction cost

• 9 projects approved to date, 4 complete

• Total cost $61.2M on approved projects; total savings of $416.2M on approved projects

Construction Performance

7:1 Return on Investment through FY20 ShipSaving $8M/Ship on Block I & II Ships

Module Transportation Project

QP Coating Facility Project

Sheetmetal Light Fabrication Facility Project

CAPEX (Capital Expenditure) Project

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Construction Performance“84 to 60” Schedule Reduction

FY09 Ship at 63 Months; $30M-$50M Price Reduction

Increased Velocity Through the Construction Cycle will Lower Cost and Deliver Ships Sooner to the Operational Commander

SSN 782

SSN 783

SSN 778

SSN 779

SSN 780

SSN 781

SSN 775

SSN 776

SSN 777

0 12 24 36 48 60 72 84 96

Months From Construction Start0 12 24 36 48 60 72 84 96

Months From Construction Start

72-Month Construction Span Trend

60-Month Construction Span Trend

Current VIRGINIA Class Ships Under Construction

Construction Start

Early Delivery

Contract Delivery

Scheduled Delivery

Late Delivery

EB Construction

LEGEND

NGNN Construction

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Program Methodology

The Navy and the Shipbuilder agreed that a new approach was required to produce an affordable submarine for low rate production

– Integrated Product and Process Development (IPPD) or Design/Build Concept

• Requires early selection of a Designer/Integrator• All stakeholders - Government and Shipbuilder Design,

Planning, and Production trades work together from the start• Integration of all aspects of design, planning, and

construction• Streamlines design process

Maximize advantage of computer technology– CAD/CAM electronic design

• CATIA and IGRIP interactive design tools• 3-dimensional design instead of traditional engineering drawings

Fully integrated electronic data throughout the life of the program, from design concept to construction to lifecycle maintenance

– Single database supports all applications• Links design with production and business operations; lead yard with follow yard• Fully integrated electronic data throughout lifecycle

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VIRGINIA Bow Redesign

VIRGINIA Payload Tubes (VPT)

Large Aperture Bow (LAB) Array

• 2 Large (7 ft dia) VA Payload Tubes (VPT) replace 12 VLS tubes

• Large Aperture Bow (LAB) array replaces spherical array• FY12 Hull Savings: ~$40M per ship

– LAB array: $11M

– VPT: $8M

– 25 Associated design changes: $20M

• Will be part of the Block III RFP and go aboard the FY 09 boat, SSN 784

Large Payload Volume and Adaptable Electronic Interface Provide an Open Architecture Payload System

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FY 09 VIRGINIA Payload Tubes

Current Bow Design

VIRGINA Payload Tubes

• Two SSGN Multiple All-Up Round Canisters (MAC) replace 12 VLS Tubes– Payload volume increased from 1,200 ft3 to 2,300 ft3

– Interoperable with future SSGN payloads

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Medium Frequency Active

Passive Array

Large Aperture Bow Array

• Water-backed Geo/Conformal array replaces air-backed spherical array to reduce construction and life cycle costs – Improved passive, equal active, capabilities– Removes 1,000+ SUBSAFE openings– Utilizes proven, life of the hull sensors

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Tracking the Savings

Plan to Book Design and Construction Improvement Savings in time to Support VIRGINIA Class Block III Contracting

$2.00

$2.05

$2.10

$2.15

$2.20

$2.25

Aug-06 Sep-06 Oct-06 Nov-06 Dec-06 Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08

Date

Pro

jec

ted

FY

12

Sh

ip C

os

t (F

Y0

5$

B)

Planned Glide Slope

Booked Glide Slope

$200M (FY05$) costs targeted in baseline ship systems and construction

processes

Expect to book minimum goal of $200M (FY05$) savings by

March 08

Initial savings reaped from Propulsor & Construction

related improvements

Producibility and Propulsion Plant related improvements booked in

March 07

LAB Array savings booked in

August 07 timeframe

Machinery and Bow savings booked in September 07

timeframe

RFP Proposal

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Milestone and Current Production Schedule

FY98 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 Total1 1 0 1 1 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 0 30

Block I Block II Block III Block IV Block V

Notional Build Rate (FY09 OSD Submit)

FY96 FY97 FY98

MILESTONES

CONTRACTS

TEST AND DT: DT-I DT-IIA DT-IIB DT-IIC IID

EVALUATION IIE IIF

OT: EOA (OT-I) OT-IIA OT-IIB OT-IIC OT-IID IOT&E/OPEVAL

CONSTRUCTION USS VIRGINIA (SSN 774) EB Lead Ship Construction PSA

FIRST USS TEXAS (SSN 775) Jun 06 PSA

BLOCK USS HAWAII (SSN 776) Dec 06 PSA

NORTH CAROLINA (SSN 777) Dec 07 PSA

NEW HAMPSHIRE (SSN 778) Oct 08 PSA

SECOND NEW MEXICO (SSN 779) Apr 10 PSA

BLOCK SSN 780 Apr 11 PSA

SSN 781 Apr 12 PSA

SSN 782 Apr 13

SSN 783 Apr 14

THIRD SSN 784

BLOCK SSN 785

Contract Award in FY09 SSN 786

SSN 787

SSN 788

SSN 789

SSN 790

SSN 791

FY96 FY97 FY98

Percent complete data as of 22 June 07 weighted for material and labor SSN 777 & 778 delivery dates are current PM estimates; 779 through 783 are contract dates. Updated 29 Sep 2007

FY99

Oct 04

19%

NGNN Lead Ship Construction

48%

78%

34%

FY95

71%

90%

FY03 FY04 FY05 FY06 FY13FY12FY07 FY08 FY09 FY10 FY11FY00 FY01 FY02

FY13FY12FY11FY10FY09FY08FY07FY06FY05FY04FY03FY02FY01FY00FY99FY95

5-ship Multi-Year Contractmod signed 29 Jan 04(FY04 to FY08 ships)

LEGEND: Milestones ContractsDT Developmental TestOT Operational Test

Prog Review -LRIP

Prog Review

OIPT

Prog Review

OIPT

ProductionReadiness

Review

IOCMar 07

MS IIIApr 09

MSII

IPPD 96 ContractClass Design & Construction

Block II Construction

Contract

Conversion to Mult-Year

Block IIIContractOct 08

Prog Review

OIPT

Block IConstructionContract

Blocks I & II: 10 Ships Under Contract 3 Delivered; 6 Under Construction

2008 Focus: RFP for FY09 to FY13 Multi-Year Contract andOpEval

FY03 to FY086 Ships

FY98 to FY024 Ships

FY09 to FY138 Ships Next MYP Contract

Prog Review

OIPT

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Questions?

VA Class Cost Reduction

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