AN ECONOMIC ANALYSIS OF US NAVAL SHIPBUILDING COSTS

This Report examines the investment cost of U.S. naval ships in order to determine whether alternative procurement practices might lead to reduced costs. The analysis has been limited to privately owned shipyards in the United States and other selected countries and has only been concerned with that portion of the work carried out in the shipyard (i.e., it has not considered Government-furnished equipment). The Report identifies three ways in which the procurement cost of U.S. naval ships could be reduced. First, research indicated that between 1951 and 1965 the U.S. Navy could have aggregated its ship purchasing so as to realize fully those cost reductions typically associated with volume procurement. Second, the U.S. naval shipbuilding industry could have exhibited more efficiency than it did given U.S. factor costs. Third, the U.S. Navy could purchase ships from selected foreign shipbuilders at reduced cost.

• Corporate Authors:

  Institute for Defense Analyses

  Economic and Political Studies Division
  Arlington, VA  United States 
• Authors:
  • Williams, H
  • Wells, J D
  • Johnston, E R
  • Sanders, E G
• Publication Date: 1966-12

Media Info

• Features: References;
• Pagination: 158 p.

Subject/Index Terms

• TRT Terms: Alternatives analysis; Costs; Shipbuilding; Shipyards
• Old TRIS Terms: Shipyard costs
• Subject Areas: Design; Finance; Marine Transportation;

Filing Info

• Accession Number: 00046168
• Record Type: Publication
• Source Agency: United States Department of Defense
• Report/Paper Numbers: R-120
• Contract Numbers: SD-50, Article IB(3)
• Files: TRIS
• Created Date: Oct 31 1973 12:00AM