Navy Contract: AOE 6 Shipbuilding Claims Settled But More Delays and Cost Growth Likely

DOD did not concur. The Navy indicated that it had now identified the final total costs for the AOE 6, 7, and 8. DOD indicated that the estimates of final costs are inherently conservative. DOD also contended that, as a result of the 2-day, at sea limited propulsion test, the ability of the AOE 6 to perform to the requirements had been demonstrated. DOD reported that the trial presented no major technical problems and successfully demonstrated the operability of the reversing reduction gears and the machinery centralized control system. In addition, DOD contends that the development process risk is inherently low because there is very little developmental work, and that all equipment and systems are thoroughly tested before going to sea. DOD maintains that the risks of AOE 6 systems integration are no greater than any other shipbuilding program.

DOD did not concur. DOD and the Joint Staff extensively reviewed the requirement for AOE 10. The Chairman of the Joint Chiefs of Staff advised that the AOE 10 acquisition was an appropriate step in meeting support ship requirements of one station ship for each aircraft carrier battle group. The AOE 10 will be the eighth station ship of the eleven required to support the active carrier force structure approved in the Bottom-up Review of October 1993.