Virginia Payload Module

Inside the Navy recently reported on the Navy's acquisition chief describing steps the service is taking to minimize costs on the Virginia Payload Module as directed by the most recent appropriations act:

Sean Stackley, assistant secretary of the Navy for research, development and acquisition, sent a report to the four defense committees on Sept. 14 outlining a cost containment strategy for the Block V VPM design. Inside the Navy reviewed the report.

"The act directs the Navy secretary to create a separate budget line item to enable additional congressional oversight and increase transparency into the costs of the VPM," the report reads.

The 2014 Appropriations Act provided $59.1 million for VPM development. If the Navy fails to submit a bi-annual report to Congress the agreement fences $20 million of that money.

Cost projections for non-recurring engineering are about $744 million in calendar year 2010 dollars, which is below the service's objective cost of $750 million. The current estimate for the VPM for the lead ship is about $423 million in CY-10 dollars, a figure that is below the $425 million objective cost. The $318 million cost of the VPM for follow-on ships is below the objective cost estimate of $325 million in CY-10 dollars.

We now have that report.