RL32109
Navy DDG-1000 and DDG-51 Destroyer Programs: Background, Oversight Issues, and Options for Congress
October 22, 2008

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Summary:

At a July 31, 2008, hearing, Navy officials announced a major change in the service's position on what kind of destroyers it wants to procure over the next several years: The Navy testified that it no longer wants to procure additional Zumwalt (DDG-1000) class destroyers, and instead now wants to restart procurement of Arleigh Burke (DDG-51) destroyers. The Navy has proposed this new path as part of internal Department of Defense (DOD) planning for the FY2010 defense budget to be submitted to Congress in early 2009. The Office of the Secretary of Defense (OSD) has reserved judgment on the Navy's proposal, pending further analysis, but gave the Navy permission in late July to brief the proposal to Congress. Until the July 31 hearing, the Navy for several years had stressed the need for procuring additional DDG-1000s, defended the DDG-1000 program against various criticisms, and rejected proposals for stopping DDG-1000 procurement and for resuming procurement of DDG-51s. Although the Navy's proposed FY2009 budget requested funding for procuring a third DDG-1000, Navy officials suggested at the July 31 hearing that they would prefer Congress to instead fund the procurement of a DDG-51 in FY2009. On August 18, 2008, however, OSD and the Navy informed Congress that OSD had directed the Navy to support the procurement of a third DDG-1000 in FY2009. The issue for Congress for FY2009 was how to take the Navy's new position on destroyer procurement into account in marking up the Navy's proposed FY2009 budget. Potential oversight issues for Congress included the timing of the Navy's announcement of its new position, the availability of the Navy's analytical basis for its new position, the changed threat assessment that the Navy says underlies its new position, the Navy's selection of the DDG-51 as the ship best suited for responding to the changed threat assessment, the Navy's description of the DDG-1000's anti-air warfare (AAW) capabilities, and the industrial-base implications of stopping DDG1000 procurement and restarting DDG-51 procurement. The FY2010 defense appropriations bill, which was enacted as Division C of H.R. 2638/P.L. 110-329 of September 30, 2008, a consolidated appropriations bill, provides $1,508.8 million in FY2009 DDG-1000 procurement funding, reflecting a decision to procure a third DDG-1000 in FY2009 using split funding (i.e., two-year incremental funding) in FY2009 and FY2010. H.R. 2638/P.L. 110-329 rejects the Navy's request for $51 million in FY2009 DDG-1000 advance procurement funding to support the procurement of a fourth DDG-1000 in FY2010, and provides $200 million in FY2009 DDG-51 advance procurement funding "to preserve the option to restart the DDG-51 class destroyer program." Congress has several options regarding destroyer procurement in FY2010 and subsequent years. This report will be updated as events warrant.