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Wednesday, May 12, 2010

Ship cost hike law looms over BIW

Zumwalt class destroyer (DDG-1000)U.S. Sen. Susan Collins, R-Maine, sought assurances from a top Navy official last week that a federal cost review won’t slow production in the DDG-1000 program. Delays in the futuristic destroyer program, Collins said, could threaten work force stability at Bath Iron Works.

The cost analysis was triggered by the DDG-1000 program’s breach of the Nunn-McCurdy provision, language passed by lawmakers in 1983. According to Nunn-McCurdy, when a defense program cost spikes by more than 15 percent, Congress must be notified.

At a 25 percent increase, the Secretary of Defense must certify that the program is essential to national security or that the new cost estimates are reasonable. Without the secretary’s certification, the program in question must be eliminated outright.

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