Design Report Guided Missile Submarine SSG(X) - AOE - Virginia ...

SSG(X) Design – VT Team 3 Page 44
3.4.3 Cost
Figure 32 – Cost module diagram shows the process used to calculate the Basic Cost of Construction (BCC) for
the SSG(X). The input variables required for the module are listed in Table 29.
Figure 32 – Cost module diagram
Table 29 – Cost module input variables
Input Variable Description
W1 SWBS 100 structure weight
W2 SWBS 200 propulsion weight
W3 SWBS 300 electrical weight
W4 SWBS 400 command and control weight
W5 SWBS 500 auxiliaries weight
W6 SWBS 600 outfit weight
W7 SWBS 700 ordnance weight
Yioc Initial operational capability year
Rp Shipbuilding rate per year after lead ship
Mh Average man – hour rate (dollar/hr)
R Average inflation rate
Yb Base year (appropriation)
ovhd Overhead rate
profit Profit margin
PROPtype Propulsion propeller type
BATtype Battery type
PSYS Propulsion system
Cman Manning and automation factor
The process of determining the BCC of the submarine is broken into several components. As shown in Figure 32,
the inflation factor, labor cost, material cost, total direct and indirect costs are the components used to determine the
BCC. The cost for each of the component used to determine the BCC is calculated as follows:
• The inflation factor is determined using the average inflation rate and the number of years between the
initial estimate and the base year. This provides a factor to multiply by a given year estimate to produce a
current estimate.
• The labor cost is determined using the ship work breakdown structure (SWBS) weights, complexity factors,
and the man-hour rate. First, the labor cost for SWBS 100 – 700 is determined by multiplying the manhour
rate by the complexity factor and weight. Second, the labor costs for the production support, and
design and integration are determined using half by the sum of the SWBS labor costs. The total labor cost