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The Navy has completed a review of the MFSD industry team proposals, and has determined that a significant number of the technical concepts used for MFSD are also applicable to DD 21. Two examples are revolutionary manning and signature reduction initiatives. Although the MFSD program was not afforded the opportunity to demonstrate these and other innovative technologies at sea, the effort pursued for MFSD supports the requirements levied upon for DD 21.
Cost is a key factor in the design of these ships. Projected shipbuilding budgets, declining operations and maintenance budgets, coupled with plans to recapitalize submarine, aircraft carrier, and logistics fleets in the early 21st Century dictate that DD 21 must be an affordable ship to build and operate. This has led the Navy to seek, and find, new approaches to ship design and acquisition and apply them to DD 21. The DD 21 program is fostering increased industry involvement and enhanced opportunities for industry competition through use of innovative acquisition strategies and is currently considering use of Section 845/804 authority for the first portion of the DD 21 development process. The surface combatant acquisition community has been completely reorganized to allow for this, and the Navy's FY 2000 budget request will show a significant realignment of DD 21 funding request as the full effects of the revolutionary acquisition strategy for DD 21 take effect. Competitive industry involvement is critical to the success of this program, and the Navy is working closely with the Office of the Secretary of Defense to foster a competitive environment.
The cost savings that can be derived from the DD 21 class destroyers include
savings in construction costs that would result from achievement of the Navy's target per-ship cost of $750,000,000 by the fifth ship constructed in each construction yard;
savings that would result from the estimated reduction of the crews of destroyers by 200 or more personnel for each ship; and
savings that would result from a reduction in the operating costs for destroyers by an estimated 70 percent.
To implement Cost as An Independent Variable (CAIV) in order to achieve an Operations and Support (O&S) cost of $2,700 or less per hour underway and a production Objective/Threshold cost of $650/$750 million for the fifth DD 21 System in FY 96 dollars. For a year of ship operation, 3,274 hours are steaming hours underway and 1,886 hours are steaming hours in port, the remaining hours are hours in port in which "hotel" services are provided. For the $650/$750M targets, assumptions for the timing and procurement rates for buying these ships are a quantity of 32 DD 21s, at a rate of three per year beginning one year after the lead ship award. |
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