US Navy Needs to Improve Cost Controls Before Building Billion Dollar Frigate - Report
The US Navy needs to strengthen its cost projections and controls systems before building the first of a new class of frigates costing more than $1 billion each, the Government Accountability Office (GAO) said in a report on Friday
The US government needs to "Ensure that the Assistant Secretary of the Navy for Research, Development, and Acquisition provides to Congress the finalized independent cost estimate prior to award of the detail design and construction contract," the report said.
The GAO pointed out that the Navy has asked for $1.3 billion to build the first frigate in the class before having a solid understanding of its design and cost.
The Navy therefore needs to show Congress that this estimate is consistent with the fiscal year 2020 budget request for that warship, the report recommended.
The Defense Department cost estimators told the GAO that the timeline for completing the independent cost estimate was still uncertain and would not be finalized until the Navy communicated to them which design for the frigate was expected to receive the contract, the report said.
The Navy plans to add 20 new guided missile frigates to its combat fleet at a cost currently estimated at about $20 billion and plans to award a construction contract in July 2020.