The Navy's Columbia-class ballistic missile submarine program has shaved about $100 million from its average procurement unit cost, according to a service official.
Rear Adm. Michael Jabaley, program executive officer for submarines, said the new cost estimate is $7.21 billion, compared to the $7.3 billion quoted in January during the program's milestone B decision meeting. Average procurement unit cost is calculated by dividing total procurement cost by the number of articles to be bought.
On Sept. 21, the Navy inked a $5.1 billion deal with General Dynamics Electric Boat for the Columbia-class design. The service plans to begin construction of the first boat in fiscal year 2021.
“The Columbia-class submarine is the most important acquisition program the Navy has today,” Navy Secretary Richard Spencer said in a Sept. 21 statement. “This contract represents a significant investment in maintaining our strategic deterrent into the future, as well as our ongoing partnership with the United Kingdom.”