By Jen DiMascio

The Congressional Budget Office (CBO) places the Navy’s shipbuilding tab for the next five years about 30 percent higher than the Navy does, according to a report released yesterday.

The biggest gaps are in estimates of two premier modernization programs–the DDG-1000 destroyer and the CG(X) cruiser. Between 2009 and 2013, the Navy plans to buy five DDG- 1000s and two CG(X) cruisers. Whereas the Navy has said those ships will cost $16.4 billion, CBO estimates the cost will be $28.7 billion.

“If CBO’s cost estimates for the DDG-1000 and the CG(X) are realized, it would be difficult for the Navy to build a 313-ship fleet without substantially increasing the service’s shipbuilding budgets during the years spanned by the 2009 [future years defense plan] and beyond,” said the report by Eric Labs, a senior analyst at CBO. He testified at a March 14 House Armed Services seapower subcommittee hearing.

Ronald O’Rourke, a specialist in naval affairs with the Congressional Research Service, told the subcommittee that the Navy is looking ahead at the same budget challenges in recapitalizing key equipment as the Air Force, but the Navy is not stressing that point.

“The Air Force is responding by stating directly and repeatedly that the Air Force budget needs to be increased by $20 billion a year over the next five years,” O’Rourke said, contrasting that example with the Navy, which he said has “studiously avoided” lobbying for an increase to its budget.

“If one service is vocal about the need for a budget increase while the other is not, policymakers could develop an unbalanced understanding of the relative funding needs of the two services,” O’Rourke said.

On key issue for the subcommittee is a proposal by Rep. Gene Taylor (D-Miss.) to buy only two DDG-1000 destroyers, in favor of buying additional DDG-51s and applying some funding to the development of the next-generation nuclear cruiser.

Allison Stiller, deputy assistant secretary of the Navy for ship programs, told the committee that the last contract for DDG-51s was signed in fiscal year 2005. Renewing a contract for production of the ships would require conversations with the contractor and the vendor base, which is poised to move into the DDG-1000. She agreed to contact key subcontractors and report back to Taylor within about one month.

Vice Adm. Barry McCullough, the deputy chief of naval operations for resources and requirements, told reporters after the hearing, “It’s incumbent upon us to explain to Congress why we need that ship,” referring to the DDG-1000.