Navy official says new submarines will save money

Rear Adm. John Butler, the Navy's program executive for submarines, Thursday tried to dispel House appropriators' concerns about the cost and the design of the new Virginia-class nuclear subs and said multiyear funding would save more than $115 million per boat.

In a presentation to defense reporters at the Washington Navy Yard, Butler argued that the Navy's cost projections for the new attack submarines are based on "real-life" data from the nearly completed first sub and four that have been started. Butler also said the Virginia design is stable and has experienced only a fraction of the changes of the Seawolf-class submarine, which was terminated early because of complaints that it was a Cold War relic and not an adequate response to future challenges.

Butler also disputed GAO complaints that the Virginia design has not been tested enough to warrant multiyear authorization. The new submarine's design is based on advanced computer simulation and on the actual results of underwater shock trials and other tests conducted for the Seawolf, he said. The House Defense Appropriations Subcommittee has denied the Navy's request for multiyear funding, although the Senate fiscal 2004 Defense appropriations bill authorizes multiyear procurement of the Virginia-class subs.

Butler said the Navy's proposal to buy seven submarines over five years would save more than $805 million. He predicted that the final contract with the manufacturing team of Electric Boat and Northrop Grumman's Newport News shipyard would show even greater savings from the block purchase. Butler expected to present that contract to the Navy's acquisition executive later this month and predicted it would enable the Navy to save the multiyear buy in the House-Senate compromise of the fiscal 2004 appropriations.