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Social SciencesEconomics and Cost Analysis

A New Paradigm for Achieving the Navy's Budgetary Goals

Authors: James A Neuman; ARMY WAR COLL CARLISLE BARRACKS PA
Abstract:
The Department of Defense is facing a severe budget cut and must take decisive action if it is to avoid the hollow force. The Navy's budget also must be reduced, but with the added challenge of balancing risk while trying to maintain and deploy a 313-ship force. Only through the adoption of a paradigm shifting budget reduction strategy can the Navy effectively cut its budget. The Navy needs to reduce procurement costs through the globalization of shipbuilding, incorporate warship serialized production and stable design to lower operating and maintenance costs, and reduce overall manning afloat by incorporating human systems integration engineering up front while designing future ships. When adopting a new strategy, risks must be considered as well as any mitigating options. In summary, the Department of Defense must make serious choices regarding budget reduction strategies. It cannot afford to make piecemeal cuts by cancelling or delaying individual programs. The entire system must be reexamined and a new path taken if real savings are to be achieved in the long run while the Navy simultaneously preserves its commitment to meet America's strategic goals.

Limitations: APPROVED FOR PUBLIC RELEASE
Description: Research paper
Pages: 30
Report Date: 22 Mar 2012
Report Number: A254165
Keywords relating to this report:
COST REDUCTION
DEPARTMENT OF DEFENSE
GLOBALIZATION
INDUSTRIAL PRODUCTION
MAINTENANCE
MANPOWER
MODULAR CONSTRUCTION
NAVAL ARCHITECTURE
NAVAL BUDGETS
NAVAL PROCUREMENT
NAVAL VESSELS(COMBATANT)
OPERATION
SHIP PERSONNEL
SHIPBUILDING
SHIPYARDS
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