11/14/2007 2:17 PM

Brief to National Defense Industrial Association

24 October 2007

The Navy’s 30-year Shipbuilding Plan – Challenges To Making It A Reality

211/14/2007 2:17 PM

The Navy Today • Global War on Terrorism

– A Direct Navy Issue!• Over 28,000 Marines and 19,500 Navy personnel in

CENTCOM AOR for GWOT support• Naval medical personnel in Iraq to support Marine

forces• CSG and ESG provide continuous on station

operational & combat support– Indirect Navy commitment

• Global engagement and partner nation support• Stability operations in Philippines and elsewhere• Humanitarian assistance and disaster relief

throughout the world

• Maritime Presence, Domain Awareness and Supremacy

– Navy’s core competencies!• Worldwide presence with purpose – deterrent

shield against major combat operations across the globe

• Transitioning from legacy to revolutionary platforms

• World Class people• Heavy investment in transformational technology• Platforms and people postured for short duration

high intensity conflicts

The Navy’s role increasingly important in global security environmentThe Navy’s role increasingly important in global security environment

311/14/2007 2:17 PM

CounterinsurgencyStability Ops

Consequence Management

HomelandDefense

War on Terror /Irregular Warfare

ConventionalCampaigns

Interdiction

Foreign Internal Defense (FID)

Major Combat / Strike, Stability Ops

ReconstructionCons. Management

Regional Regional DeterrenceDeterrence

Train & Equip

Transnational Transnational DeterrenceDeterrence

Information Ops

Information Ops

Active Partnering &

Tailored Shaping

WMD Elimination

Active Partnering &

Tailored Shaping

Forward Presence

Global Global DeterrenceDeterrence

Steady-State Surge

Active Partnering withUSG Agencies

Frequency Number Scale / Intensity ConcurrencyDuration Policy Environment Partner Capabilities

Variables:

Changing Security Environment

Evolving security threat demands transformationEvolving security threat demands transformation

411/14/2007 2:17 PM

Challenge facing Navy Shipbuilding

Future Force StructureCurrent War Operations

Strategic Guidance

ManpowerReadiness

New ships require major investmentNew ships require major investment

Transformation

Navy Goals• Sustain Combat Readiness• Build a Fleet for the Future

Fiscal Realities• Limited TOA• Cost of OIF/OEF/GWOT• Entitlement Growth in out years• Competing Government Demand

How do we keep pace and maintain

relevance in tightened fiscal environment?

511/14/2007 2:17 PM

Required Balance30-year Shipbuilding Plan must be• Transformational• Affordable• Stable

Plan must balance required capability with affordability and industrial basePlan must balance required capability with affordability and industrial base

Capa

bilit

y

Industry BaseAffordability

611/14/2007 2:17 PM

ConventionalCampaign(s)

War on TerrorIrregular Warfare

Transformation to 21st Century Navy

Ship Type

2005 FSA Reqmts

CV/CVN 11

CG 19

DDG 62

DDG 1000

7

FFGLCSMIW

0550

SSBN 14

SSGN 4

SSN 48

Amphib 31

MPF(F) 12

CLF 30Command & Support

20

Total 313

HomelandDefenseGlobal

Deterrence

TransnationalDeterrence

Regional Deterrence

Missile DefenseUndersea Warfare

Time Critical StrikeSea Basing

Persistent ISR

Littoral OperationsShaping Operations

Flee

t Res

pons

e Pl

anG

loba

l CO

NO

PSM

ariti

me

Dom

ain

Aw

aren

ess

Required Capabilities

CVN-21

TransformationalPrograms

SSN-774 / SSGN

LCS

E-2D

CGXSM-3SM-6

DDG 1000

MPF(F) / LHA(R)

JSF

MMAACS

BAMS

MV-22

Warfighting requirements inevitably evolve and an adaptable force is a mustWarfighting requirements inevitably evolve and an adaptable force is a must

711/14/2007 2:17 PM

LCS Will Fill Today’s & Tomorrow’s COCOM’s Demand Signals

Theater Security Cooperation• Counter Drug Ops• GWOT• Establish Regional Partnerships• Enhance Hemispheric Stability

and Security

Theater Security Cooperation• Gulf of Guinea

- Sub-Saharan Navy Cooperation• HOA

- Counter Terrorism- Counter Piracy

• Persian Gulf- Counter Terrorism- Regional Engagement- Oil Platform Protection

Theater Security Cooperation• Southern Philippines

- Counter Terrorism• Establish Regional Partnerships• Enhance Hemispheric Stability

and Security

811/14/2007 2:17 PM

First MCM Mission Package Delivered 14 September 2007

911/14/2007 2:17 PM

Maintaining Industrial Base

• Enduring requirement to maintain shipbuilding capability– Impacts shipbuilding plan

• Maintenance of 313-ship force structure– 8-10 ships per year– Stable and predictable

• Plans will provide– Longer production runs– Fewer design changes

• Intended to yield– Labor pool stabilization– More efficient production– Cost reduction

The Nation must maintain a viable shipbuilding industrial baseThe Nation must maintain a viable shipbuilding industrial base

ConsiderationsConsiderations

1011/14/2007 2:17 PM

Industrial Partnership

• Limiting design changes• Using common hull forms for

multiple ship types• Standardizing engineering

plants across ship types• Using common combat systems

across multiple ship types• Longer production runs• Matching steady state

requirements with procurements• Incorporating gap following lead

ship to integrate learning• Stabilizing shipbuilding plans

• Improved production planning

• Economies of scale• Long term learning• Improved quality• Easier modernization• Quicker introduction of new

technologies • Shortened production times• Reduced procurement costs

The Navy will do its part but must have industry support to achieve successThe Navy will do its part but must have industry support to achieve success

IndustryIndustryNavy Navy

1111/14/2007 2:17 PM

0

10

20

30

40

50

60

70

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

SCN Investment Avg SCN

Shipbuilding Affordability• Based on historical figures

(FY05$) ~$11B invested annually for new construction yields ~260 ship Navy over long term

• Warfighting requirement about 313 ships requires ~$13.4B annual investment

• Challenges:– Ship cost growth– Retirement rate– New designs– Capability gaps– New mission requirements

CY05 $B

~$11.0B

CVN Procurement

Historical SCN InvestmentHistorical SCN Investment

200

250

300

350

400

450

500

550

600

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

Ship Count

Affordability is a continuing challengeAffordability is a continuing challenge

Resulting Force SizeResulting Force Size

1211/14/2007 2:17 PM

Affordability – Primary Challenge

• Performing Long range force level requirements analysis– Ship service lives 25-50 years

• Incorporating production study recommendations– RAND Study– NAVSEA Affordable Future

Fleet Study• Incorporating risk analysis in

budgeting • Modeling procurement options

– 30-year shipbuilding plan

The Navy will design a future force that is both capable and affordableThe Navy will design a future force that is both capable and affordable

Navy Actions Navy Actions

$$$

21st Century Force

1311/14/2007 2:17 PM

Requirements Checks & Balances

• Navy is committed to controlling the costs of its ships to ensure long-term affordability by enforcing budget discipline for each ship type

• Navy Capabilities Board (NCB) and Resources, Requirements, and Review Board (R3B)

• New ships will be built with cost as a design requirement– CG(X)– GWOT platforms

New capabilities are vital to an effective force - but how much is enough?New capabilities are vital to an effective force - but how much is enough?

ResourcesSCN, APN, WPN, OPN, MPN, RPN,

RDTEN, OMN,MILCONPANMC

Acquisition Processes

NavalCapability R3B

ReadinessInfrastructure

Manpower

ResourcesSCN, APN, WPN,

OPN, RDTENAcquisition Processes

NavalCapability

NCB

1411/14/2007 2:17 PM

Force Structure Changes

• Current force was largely designed to fight Cold War threat which required costly high-end multi-mission capability

• Current and future threat requires different mix– High-end ships to fight and win against

future major combat operation threat– Larger number of less sophisticated

ships to deliver GWOT-level capability in more places

– Net effect is a larger fleet at lower average per-ship cost

– Future ship design is less manpower intensive, freeing manpower resources to pay for shipbuilding

The Navy will design a future force that is both capable and affordableThe Navy will design a future force that is both capable and affordable

1511/14/2007 2:17 PM

Challenges to Plan Becoming Reality

• Normal challenges in accurately predicting the future– Warfighting requirements– Economic environment– National will

• Increasing budget requirements to support other higher priority defense requirements

• Time required to build a new force– Ships being built today will be

operational in 2050

Significant challenges must be overcome if plan is to become a realitySignificant challenges must be overcome if plan is to become a reality

1611/14/2007 2:17 PM

Summary• The Navy’s 30-yr shipbuilding

plan will:– Address the evolving warfighting

requirements to ensure the force we build today is relevant in tomorrow’s global security environment

– Maintain legacy ships to ensure they reach their expected service lives

– Establish a viable strategy for acquiring the ships we need when we need them

– Control costs, minimize design changes and execute optimum procurement methods to ensure the force we build will be affordable

• Industry can contribute by:– Relentlessly driving to reduce

production costs while maintaining quality

– Improving manufacturing and production techniques

– Developing designs that are easily modernized

– Shortening construction times

Together we can face these challenges and build the right Navy for the NationTogether we can face these challenges and build the right Navy for the Nation

To be successful we will need help

To be successful we will need help

11/14/2007 2:17 PM

Brief to National Defense Industrial Association

24 October 2007

The Navy’s 30-year Shipbuilding Plan – Challenges to making it a reality

1811/14/2007 2:17 PM

BACK UPS

1911/14/2007 2:17 PM

Lockheed Martin Team Lockheed MartinGibbs & CoxMarinette MarineBollinger Shipyards

General Dynamics Bath Iron Works

General Dynamics AISAustal USA

BAE SystemsMAPC

L3

Littoral Combat Ship

Competition leads to better shipsCompetition leads to better ships

2011/14/2007 2:17 PM

LCS Mission Package Capability

VTUAV

MH-60R/S

NETFIRES

30mm Gun

VTUAV

USV

MH-60R

RMS

TOWEDARRAY

MULTISTATIC

USV

RMS

VTUAV

MH-60S

UUV

UUV

Beach/Surf Zone Detection

EOD

COBRA

Mine Warfare

Mine Warfare

Antisubmarine Warfare

Antisubmarine Warfare

Surface Warfare Surface Warfare

Installed in Mission Module Spaces

A 21st Century Ship for Asymmetric ThreatsA 21st Century Ship for Asymmetric Threats