Estimation of destroyer type naval ship procurement costs

Abstract

This study presents three models by which the total procurement cost of Destroyer and Destroyer Escorts may be estimated. One model utilizes 9 subsystem costs estimating relationships (CERs) to obtain a total cost estimate; the second model utilizes subsystem CERs; the final model is a single total cost equation. The CERs were developed using the linear least squares regression technique on a data base of ships built from 1954-66. The CERs utilize input variables that may be determined long before actual ship construction begins. This fact, and the precision of the model estimates, recommend usage of these models in cost-effectiveness analysis. The Patrol Frigate is utilized as a sample application, wherein model estimates compare favorably with the current NAVSHIPS cost estimates. This study uses the data base from Resource Management Corporation Report CR-058, The NAVSHIPS Cost Model, and critiques that report.