There’s an “after-action report” from the Cato Institute’s recent panel on the Future of the Navy Surface Fleet:
Yesterday’s event on the U.S. Navy was a big success and generated a vigorous discussion. Ben Freeman from POGO spelled out his concerns about the littoral combat ship, specifically the Freedom (LCS-1) (documented here and here) and CBO’s Eric Labs raised a few additional ones pertaining to the program as whole. Under Secretary of the Navy Robert Work delivered an impassioned defense of the LCS within the context of the entire fleet design, drawing on examples from history to demonstrate how the Navy learns and adapts. Consistent with past practice, Work is confident that the fleet will put the LCS through the paces—two completely different ships—and figure out how to use them.
It was refreshing to engage in a serious discussion among people who are committed to a Navy that is second-to-none, and who care enough to raise questions designed to make it stronger. I focused my remarks on the LCS’s operating characteristics, but especially on the decision to buy two different LCS types. The original plan was for the Navy to select just one. The advantage of having two ships, Work stressed, was that the Navy would learn about each vessel’s unique capabilities. The disadvantage, as I see it, is the loss of economies of scale, including in parts, logistics and training.
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Second, I seriously doubt that the Navy’s shipbuilding budget will grow very much even if Mitt Romney is elected president, and it certainly won’t grow enough to obviate any discussion of trade offs between different ships. Even if the Navy is handed billions or tens of billions of dollars more for shipbuilding, it is still the case that every ship that we build, or every new one proposed, is competing against one another. There are always opportunity costs, even when the topline budget grows. Navy warships compete against aircraft carriers. Navy surface ships compete with submarines. And the Navy competes with the Air Force. And the Air Force and Navy compete with the Army, etc.
For now, the Navy has chosen the LCS over possible alternatives. But there are alternatives. Eric Labs authored a good study a few years ago looking at the Coast Guard’s national security cutters (.pdf), but stated yesterday that the NSCs would be more costly than the LCSs. In the paper, “Budgetary Savings from Military Restraint,” Ben Friedman and I suggested retaining the Perry-class frigates for a few more years while we develop a different ship, perhaps a new class of frigates or corvettes that could do many of the same missions that the LCS is expected to perform, and, we believe, at less cost. At yesterday’s forum, Under Secretary Work stated that we could not purchase a new frigate for less than $750 million. While I respect the Under’s expertise, I plan to spend some time over the coming months scrutinizing that claim.
