Friday, March 21, 2008

Signs and Portents

In a new contract modification with Electric Boat, the Navy paid $325 million for the procurement of materials for construction of SSN 784 and SSN 787.
http://frontierindia.net/325-million-contract-for-virginia-class-submarine-advance-procurement
http://www.bizjournals.com/masshightech/stories/2008/03/17/daily45.html

This is a significant development pointing to the Navy's Commitment to increasing the pace of delivery for the Virginia class submarines.

Of course the sailors going to the next several of these boats also should expect some degree of pain in the building and testing process because of the Navy's push to lower the cost of these boats. Anyone who has ever been in a shipyard, will know that there are two ways to lower costs like this: lower quality and shorted the yard period. The two go hand-in-hand.

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