Nuclear-Powered Aircraft Carrier Life-Cycle Cost Analysis

Abstract

In 1996, to find ways to reduce operating costs as well as the costs of future acquisitions, the Navy began to assess various design concepts for a new class of aircraft carriers and to analyze life-cycle costs, not just the acquisition costs, as life-cycle cost implications were complex and would significantly impact current and future budgets. The acquisition decisions for the next-generation aircraft carrier, CVX, would largely be determined on the basis of a life-cycle cost review of the current class of nuclear-powered carriers. Students will apply their understanding of the key elements of life-cycle costing to review the basic life-cycle costs associated with nuclear-powered aircraft carriers. Excerpt UVA-C-2282 Nuclear-Powered Aircraft Carrier Life-Cycle Cost Analysis In 1996, to find ways to reduce operating costs as well as the costs of future acquisitions, the Navy began to assess various design concepts for a new class of aircraft carriers and to analyze life-cycle costs, not just the acquisition costs. Life-cycle cost implications were complex and would significantly impact current and future budgets. The acquisition decisions for the next-generation aircraft carrier, CVX, would largely be determined on the basis of a life-cycle cost review of the current class of nuclear-powered carriers. You have just reported to your assignment in PEO Carriers and have been asked to dive into the life-cycle cost data for CVN-68 and provide feedback and fresh ideas regarding the analysis and implications for future carriers. You picked up your notes from the Navy Corporate Business Course you attended at the Darden School of Business last year and refreshed your understanding of the key elements of life-cycle costing to review the basic life-cycle costs associated with nuclear-powered aircraft carriers. . . .