Skip to content


  • Add this article to your LinkedIn page
  • Add this article to your Twitter feed
  • Add this article to your Facebook page
  • Email this article
  • View or print a PDF of this page
  • Share further
  • Add this article to your Pinterest board
  • Add this article to your Google page
  • Share this article on Reddit
  • Share this article on StumbleUpon
  • Bookmark this page

US Navy: Helping to define a cost reduction strategy to achieve savings of $400m per boat

The US Navy’s Virginia-class submarines cost approximately $2.4 billion to produce and $50 million a year to operate, and make 13-15 deployments over their 33-year lifecycle. Following a defense review, the Navy was instructed to increase production from one to two Virginia-class submarines a year – but only if it could reduce the cost of producing each submarine by $400 million.

Given the excellent performance of the Virginia-class program to date, it was imperative to aggressively drive down cost without disrupting ongoing performance.

We worked collaboratively with the Virginia-class program office and shipbuilding team to model the overall cost and schedule performance of the program from design through to full construction of 18 submarines. We evaluated the full, program-wide direct and indirect impacts of potential changes to the design and construction process in combination with other potential changes such as funding levels, engineering investments, production rates construction schedules and shipyard workforce. Using dynamic simulation and rigorous analysis, we provided a clear, realistic view of the likely savings from the changes and helped stakeholders to agree on an effective path forward to achieve the desired reductions of $400 million.

Read how @PA_Consulting helped @USNavy achieve #savings of $400m per boat #defence

Contact the defence and security team


By using this website, you accept the use of cookies. For more information on how to manage cookies, please read our privacy policy.