Navy Ships

Status of SSN-21 Design and Lead Ship Construction Program Gao ID: NSIAD-93-34 November 17, 1992

This is the unclassified version of a May 1992 GAO report on the Navy's Seawolf Nuclear Attack Submarine (SSN-21) construction program. GAO found that the SSN-21 program is experiencing cost overruns and schedule delays. As of the end of 1991, design costs were estimated to more than double by the time the design contract is completed and total construction costs were estimated to rise by about 45 percent over the original target costs. Welding cracks discovered during the lead ship's construction caused a 1-year delay. As a result, the potential construction schedule impact of the Newport News Shipbuilding's and Electric Boat's late delivery of design data has been reduced. Two weapons systems that were planned for use on the SSN-21 experienced development and funding problems and were canceled. Because of this, the SSN-21 will be less capable than planned.

GAO found that: (1) the estimated costs for completing the SSN-21 design contract would increase by $352 million over the original contract cost of $303 million; (2) complexities in incorporating modular construction concepts into the SSN-21 design and the cost of two shipyards designing the submarine resulted in cost overruns and schedule delays; (3) cost growth and schedule revisions were primarily due to the late delivery of design data; (4) as of 1991, the SSN-21 design schedule had fallen behind by 500,000 hours, and only 3,970 of the 4,444 drawings had been issued due to a $75 million budget design reduction; (5) the SSN-21 design and construction schedule imbalance was eliminated due to the discovery and correction of hull and component part welding cracks; (6) welding cracks in submarine components increased the total cost by $68.6 million and delayed SSN-21 construction by 1 year; (7) the Navy cancelled two weapons systems intended for the SSN-21, rendering it less capable; and (8) the Navy cancelled planned procurements for two weapons systems for use on SSN-21 because one system failed to meet noise level specifications and the other system's high cost.

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