

The costs of all surface combatants since 1970, as measured per thousand tons, were higher.Other factors suggest the Navy’s estimate is too low: An independent estimate within the Department of Defense (DoD) was lower than the Navy’s estimate.The contractor is an experienced builder of small surface combatants.Little if any new technology is being developed for it.The FFG(X) is based on a design that has been in production for many years.Several factors support the Navy’s estimate: If the Navy’s estimate turns out to be accurate, the FFG(X) would be the least expensive surface combatant program of the past 50 years (measured in cost per thousand tons when the ship is mostly empty), even in comparison to much less capable ships.The Navy estimates that the 10 ships would cost $8.7 billion in 2020 dollars, an average of $870 million per ship.That amount is 40 percent more than the Navy’s estimate. CBO estimates the cost of the 10 FFG(X) ships would be $12.3 billion in 2020 (inflation-adjusted) dollars, about $1.2 billion per ship, on the basis of its own weight-based cost model.In this report, the Congressional Budget Office examines the potential costs if the Navy exercises all of those options. 1 The contract guarantees that Fincantieri will build the lead ship (the first ship designed for a class) and gives the Navy options to build as many as nine additional ships. On April 30, 2020, the Navy awarded Fincantieri Marinette Marine a contract to build the Navy’s new surface combatant, a guided missile frigate long designated as FFG(X).
