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Rising Costs Shipwreck Navy’s Expansion

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The price tag for the Navy’s latest ship-construction plan is raising hackles on Capitol Hill. The service is trying to expand the fleet from 280 to 313 over the next 30 years, and its leaders have persistently promised that they would keep costs under control. But the Navy’s own fiscal 2009 shipbuilding blueprint forecasts cost growth of anywhere from $5 billion to $9 billion a year to meet construction goals. Analysts’ interpretation of the latest numbers is that the Navy is finally owning up to its past failures to accurately estimate the cost of ships. The really bad news for the Navy is that by acknowledging that warships will be far more expensive than previous calculations, the 313-ship goal is becoming even more remote.

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