US Navy’s Virginia-Class Submarine Program Faces Significant Budget Overruns and Delays
The US Navy’s Virginia-class submarine program is projected to exceed its budget by $17 billion through 2030, according to recent reports. This revelation comes as the USS Hawaii, a Virginia-class submarine, completed a historic maintenance period with the Royal Australian Navy as part of the AUKUS agreement.
The Navy’s ambitious goal of constructing two Virginia-class submarines annually is facing substantial challenges. A review conducted earlier this year found that most of the Navy’s major shipbuilding projects, including the Virginia-class program, are experiencing severe delays of up to three years.
During a recent Congressional hearing, House Representative Ken Calvert criticized the Navy for lack of transparency regarding costs and delays. Calvert expressed “zero confidence” that Navy shipbuilding would improve without intervention.
Navy officials have attributed these setbacks to ongoing COVID-19 impacts on the workforce and supply chain disruptions. Currently, the Navy is struggling to construct just 1.3 vessels per year, falling short of the required two.
In response to these challenges, Navy Secretary Carlos Del Toro has been advocating for the Shipyard Accountability and Workforce Support (SAWS) proposal. This initiative aims to reallocate funds to address inflation-related costs and worker pay issues at shipyards. HII CEO Christopher Kastner praised the proposal for its potential to address wage gaps and invest in the industrial base without exceeding the Navy’s planned budget.
The Navy has acknowledged the importance of submarine acquisitions amidst fiscal constraints and has implemented measures to address the situation. These include creating an independent cost agency to increase accuracy on program costs and working to streamline ship design processes and improve shipyard facilities.
However, the delays in delivering Virginia-class submarines may impair the US’ ability to fulfill its commitments under the AUKUS agreement, which includes the potential sale of up to five Virginia-class submarines to Australia. These submarines are considered vital for deterring and potentially engaging China in naval conflicts.
The broader implications of these delays are significant, especially considering China’s rapid expansion of its naval capabilities. A 45-day review earlier this year revealed that multiple top Navy programs are facing major delays, increasing costs across the board.
Furthermore, delays in the Virginia-class program could have a ripple effect on other critical naval projects, such as the new Columbia-class ballistic missile submarines, a top priority for the Pentagon. Any setbacks in the Columbia-class program could jeopardize the Navy’s requirement of maintaining 10 ballistic missile submarines ready for deployment at all times.
As the Navy grapples with these challenges, the situation underscores the complex interplay between budgetary constraints, technological advancements, and strategic imperatives in maintaining naval supremacy in an increasingly competitive global environment.