“DESIGN BUDGETING” ‐ A BOLD NEW SHIP ACQUISITION STRATEGY… NOW A PROVEN CONCEPT

Abstract

ABSTRACTTraditional ship acquisition practices no longer support the requirements of today's shipbuilding programs. These practices require development of major combat and ship systems to be essentially complete prior to issuance by the government of the Request For Proposal (RFP) for ship detail design and construction. With the need for timely delivery of warships equipped with the most modern weapon systems possible, and maximum remaining years of functional effectiveness after delivery becoming increasingly important, new acquisition strategies are essential. “Design Budgeting,” an innovative new Navy acquisition and design strategy, is now a proven concept. Developed and implemented by the AEGIS Shipbuilding Project, it has been explored in depth with the Shipbuilding Industry as an alternative acquisition process that enables Combat System development and ship acquisition to proceed concurrently. Applied for the first time in the acquisition of Ticonderoga (CG‐47), its use permitted development of major portions of the AEGIS Combat System (later to be Government Furnished Equipment to the shipbuilder) to continue well into ship detail design and construction without impact on overall schedules. Hundreds of changes to the ship engineering baseline which resulted from continued development and test of Combat System, were incorporated into the shipbuilding contract with no cost increase or delay and disruption of the shipbuilding schedule. Proven, adaptable, and available now, “Design Budgeting” is an acquisition and design strategy than can satisfy the requirements of current and future shipbuilding programs.