Support for Reform? The Case of CVN-78
Vandroff and McGrath cite the case of the Ford class aircraft carriers to support their claim that their proposed acquisition reform is needed. They argue that the Ford (CVN-78) acquisition program would not have experienced major cost and schedule problems if former Secretary of Defense Donald Rumsfeld and his staff had left the initial acquisition plan of the CVN-78 program office alone. As current Assistant Secretary of the Navy for Research, Development, and Acquisition (ASN[RD&A]) Sean Stackley testified to the members of the Senate Armed Services Committee in October 2015, the initial June 2000 acquisition strategy for CVN-78 and its successor (CVN-79) was cautious and evolutionary. The new class of carriers would be developed in stages, from CVN-77 through CVN-79. New and revolutionary technologies, such as the dual-band radar and the electromagnetic aircraft launch system (EMALS), would be proven before they were designed into CVN-78.[13] Other new technologies would not be incorporated into the new carrier class until CVN-79.
Construction of Gerald R. Ford in 2013. U.S. Navy photo courtesy Huntington Ingalls Industries.
This deliberate, risk-reduction approach was superseded in 2002 when Secretary Rumsfeld directed the Navy to reassess it. The Navy then chose to advance the timetable for the installation of new technologies, placing what were considered to be systems of high technological risk into CVN-78.[14] That plan was approved in December 2002 in a program decision memorandum (PDM) signed by the Deputy Secretary of Defense. The plan was affirmed in the April 2004 operational requirements document (ORD) for the Ford class carriers, and an acquisition decision memorandum (ADM) that same month approved low-rate initial production of the first three ships of the class. The step up from CVN-77 to CVN-78 was dramatically increased; the risks to the program increased accordingly.
The basic subsystems of CVN-78 had not been well defined when the program passed that major technical and fiscal review in April 2004. Given the perturbations made in the program by officials at a level above that of the Secretary of the Navy, the review process could not be thorough. As ASN(RD&A) Stackley explained to the Senate Armed Services Committee, the CVN-78 program office therefore had to cope with the responsibility of directing a shipbuilding effort where a number of the “developmental systems introduced on CVN 78” were not technically mature. Stackley told the senators that “In 2006, the Navy identified 10 of these new systems . . . as critical technologies which posed the highest ship integration risk.” An extensive series of tests of these systems identified “design deficiencies,” and once the problems had been pinpointed they had to be overcome, and overcoming them resulted “in delays and cost growth to certain systems and equipments.”[15] In plain terms, pulling all the systems together was a knotty and very time-consuming task. The complexity of the task, and the amount of time it took to complete it, ran up the estimated bill and knocked the schedule off its tracks.
The case of CVN-78 illustrates the strength and the weakness of the acquisition reform proposals put forward by Captain Mark Vandroff and Bryan McGrath. If the Secretary of the Navy had been in legal charge of the CVN-78 program, then the Office of the Secretary of Defense might not have altered the Navy’s acquisition strategy. But can we be sure of that? The program was so expensive, so complex, and yet so promising that there were a number of influential “stakeholders,” and it would have been difficult for them to resist encouraging a jump to a new carrier concept in one leap. How could a service secretary constrain enough of them to retain ultimate control of the program?
[13] Sean J. Stackley, ASN(RD&A), “
Statement” [.pdf] before the Senate Armed Services Committee on Procurement, Acquisition, Testing and Oversight of the Navy’s Gerald R. Ford Class Aircraft Carrier Program,” Oct. 1, 2015, p. 3. For a more detailed chronology of decisions affecting the CVN-78 program, see “Navy Ford (CVN-78) Class Aircraft Carrier Program: Background and Issues for Congress,” by Ronald O’Rourke, Congressional Research Service, Dec. 17, 2015. Also see the Selected Acquisition Report (SAR) for the CVN 78 Class, Dec. 31, 2011.
[14] Senator Jack Reed (D-RI), “
Opening Statement,” [.pdf] to receive testimony on procurement, acquisition, testing, and oversight of the Navy’s Gerald R. Ford-class aircraft carrier program, Senate Armed Services Committee, Oct. 1, 2015, p. 2.
[15] Ibid., p. 9.