Navy Force Structure and Shipbuilding Plans: Background and Issues for Congress

Ronald O'Rourke
Specialist in Naval Affairs

The planned size of the Navy, the rate of Navy ship procurement, and the prospective affordability of the Navy’s shipbuilding plans have been matters of concern for the congressional defense committees for the past several years.

The Navy in February 2006 presented to Congress a goal of achieving and maintaining a fleet of 313 ships, consisting of certain types and quantities of ships. The Navy in subsequent years changed its desired quantities for certain ship types, and by mid-2011 the Navy’s desired fleet appeared to have grown to a total of 328 ships. In September 2011, the Navy began briefing congressional offices on a new 313-ship plan that incorporates some of the changes that the Navy made over the years to the 313-ship plan of February 2006 while staying within the overall total of 313 ships. Among other things, the 313-ship plan of September 2011 reduces the planned number of Joint High Speed Vessels (JHSVs) to 10, compared to a previously planned total of 21.

Press reports in September and October 2011 state that the Navy, in response to anticipated reductions in planned levels of defense spending, is examining options for maintaining a fleet with considerably fewer than 300 ships; for retiring certain ships in the near term, well before the ends of their expected service lives; and for deferring or cancelling certain planned procurements.

The Navy’s proposed FY2012 budget requests funding for the procurement of 10 new battle force ships (i.e., ships that count against the 313-ship goal). The 10 ships include two Virginia-class attack submarines, one DDG-51 class Aegis destroyer, four Littoral Combat Ships (LCSs), one LPD-17 class amphibious ship, one Mobile Landing Platform (MLP) ship (i.e., a maritime prepositioning ship), and one Joint High Speed Vessel (JHSV). The Navy’s five-year (FY2012- FY2016) shipbuilding plan, submitted to Congress in conjunction with the Navy’s proposed FY2012 budget, includes a total of 55 new battle force ships, or an average of 11 per year. Of the 55 ships in the plan, 27, or almost half, are relatively inexpensive LCSs or JHSVs.

The Navy’s FY2012 30-year (FY2012-FY2041) shipbuilding plan, submitted to Congress in late May 2011, includes 276 ships. The FY2012 30-year plan does not include enough ships to fully support all elements of the Navy’s 313-ship goal over the long run. Among other things, the Navy projects that the cruiser-destroyer and attack submarine forces would drop substantially below required levels in the latter years of the 30-year plan.

A June 2011 Congressional Budget Office (CBO) report on the cost of the Navy’s FY2012 30- year (FY2012-FY2041) shipbuilding plan estimates that the plan would cost an average of $18.0 billion per year in constant FY2011 dollars to implement, or about 16% more than the Navy estimates. CBO’s estimate is about 7% higher than the Navy’s estimate for the first 10 years of the plan, about 10% higher than the Navy’s estimate for the second 10 years of the plan, and about 31% higher than the Navy’s estimate for the final 10 years of the plan. Some of the difference between CBO’s estimate and the Navy’s estimate, particularly in the latter years of the plan, is due to a difference between CBO and the Navy in how to treat inflation in Navy shipbuilding.

Issues for Congress include the appropriate future size and structure of the Navy in light of changes in strategic and budget circumstances, the sufficiency of the Navy’s FY2012 30-year shipbuilding plan for achieving and maintaining the Navy’s 313-ship goal, and the affordability of the FY2012 30-year shipbuilding plan.


Date of Report: November 28, 2011
Number of Pages: 39
Order Number: RL32665
Price: $29.95

Follow us on TWITTER at http://www.twitter.com/alertsPHP or #CRSreports

Document available via e-mail as a pdf file or in paper form.
To order, e-mail Penny Hill Press or call us at 301-253-0881. Provide a Visa, MasterCard, American Express, or Discover card number, expiration date, and name on the card. Indicate whether you want e-mail or postal delivery. Phone orders are preferred and receive priority processing.