Since 05-01-04
Long-Lead Material Lag May Not Thwart Virginia-Class Hull Construction By Lorenzo Cortes
Since 05-01-04
DEFENSE DAILY 23 APR 04
Long-Lead Material Lag May Not Thwart Virginia-Class Hull Construction By Lorenzo Cortes
The requirements for technologically sophisticated long-lead materials for the Virginia-class (SSN-774) nuclear attack submarines developed by General Dynamics [GD] and Northrop Grumman [NOC] may not delay the start on actual hull construction given the modular assembly of the subs, but the boat will eventually need the materials to come online in a timely fashion, according to a top GD official. "You can't of course wait to the last minute--the day you give the construction contract is the day you begin the press for longlead materials," Frederick Harris, senior vice president for programs at GD Electric Boat, told Defense Daily yesterday during a forum hosted by the Submarine Industrial Base Council in Washington, D.C.
"Long-lead material is very pressing. And although the shipyard can in fact accommodate some change in long-lead material--a small amount--and make some of it up, the vendor base across the country, the people who are here today, of course need longlead materials to stay active and stay strong for the future."
Examples of long-lead materials include internal equipment and engines, Harris said. The Navy is procuring the Virginia-class ships in a multiyear procurement (MYP) contract with the GD-Northrop Grumman team. Presently the Navy will begin buying two ships a year starting in FY '09.
The Navy last summer approved an $8.7 billion block buy of six Virginia-class subs. The Navy's $8.7 billion block-buy contract could swell to about $10.9 billion--not including the cost for government-furnished equipment (GFE)--as the Navy converts the deal to MYP from the block-buy (Defense Daily, Aug. 18).
The Navy supported a seven-ship MYP but is currently cleared for a smaller five-ship MYP. "In multiyear buys, with the right number of ships per year, you will see savings from this community that would for that type of material that they are providing to the shipyard, it could be anywhere from 10 percent to 30 percent of the cost," Harris said.