March 16, 2016

Navy Virginia (SSN-774) Class Attack Submarine Procurement

The US Navy has been procuring Virginia (SSN-774) class nuclear-powered attack submarines since FY1998. The two Virginia-class boats requested for procurement in FY2017 are to be the 25th and 26th boats in the class. The 10 Virginia-class boats programmed for procurement in FY2014-FY2018 (two per year for five years) are being procured under a multiyear-procurement (MYP)contract.

The Navy estimates the combined procurement cost of the two Virginia-class boats requested for procurement in FY2017 at $5,408.9 million, or an average of $2,704.5 million each. The boats have received a total of $1,623.3 million in prior-year advance procurement (AP) funding and $597.6 million in prior-year Economic Order Quantity (EOQ) funding. The Navy’s proposed FY2017 budget requests the remaining $3,188.0 million needed to complete the boats’ estimated combined procurement cost. The Navy’s proposed FY2017 budget also requests $1,767.2 million in AP funding for Virginia-class boats to be procured in future fiscal years, bringing the total FY2017 funding request for the program (excluding outfitting and post-delivery costs) to
$4,955.2 million.

The Navy’s proposed FY2017 budget also requests $97.9 million in research and development funding for the Virginia Payload Module (VPM).





The Navy plans to build some of the Virginia-class boats procured in FY2019 and subsequent years with an additional mid-body section, called the Virginia Payload Module (VPM), that contains four large-diameter, vertical launch tubes that the boats would use to store and fire additional Tomahawk cruise missiles or other payloads, such as large-diameter unmanned underwater vehicles (UUVs).

The Navy’s FY2016 30-year SSN procurement plan, if implemented, would not be sufficient to maintain a force of 48 SSNs consistently over the long run. The Navy projects under that plan the SSN force would fall below 48 boats starting in FY2025, reach a minimum of 41 boats in FY2029, and remain below 48 boats through FY2036.



Potential issues for Congress regarding the Virginia-class program include the Virginia-class procurement rate in coming years and the number of Virginia-class boats procured in FY2019 and subsequent years that will be equipped with the VPM.

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