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

SSG(X) Design – VT Team 3 Page 94
4.11 Cost and Risk Analysis
4.11.1 Cost and Producibility
SSG(X) is a highly producible, body of revolution design. The structure is made of HY80steel that the U.S.
Navy uses on current submarines. The beam to depth ratio of unity reduces extra production costs that arise from
non-uniform shapes. The design also is capable of being produced modularly for quick substitution of the fore,
mid, or aft sections tailored to different mission objectives.
The cost calculation is primarily based on SWBS group weights. Multiplying a specific complexity factor for
each group by the weight of the SWBS group times the man-hour rate produces the labor costs. The material costs
for each group were determined by multiplying the specific complexity factor by the weight times an average
inflation factor. Following these calculations the total Direct Cost (DC) is determined by adding the total Cost of
Labor (CL) and the total Cost of Material (CM). An example of these calculations done in is shown below in Figure
95.
C. Lead Ship Shipbuilder Labor Cost :
Structure
Update Man Hour Rate (fully burdened):
Mh :=
75⋅dol hr
700⋅hr KN1 := CL := KN1⋅W ⋅Mh
CL = 64.1Mdol
lton
1 1
1
800⋅hr + Propulsion KN2 := CL := KN2⋅W ⋅Mh
CL = 20.1Mdol
lton
2 2
2
D. Lead Ship Shipbuilder Material Cost :
Structure
20⋅Kdol KM1 := CM := FI⋅KM1⋅W CM = 32.9Mdol
lton
1
1
1
+ Propulsion
3. Direct Cost:
150⋅Kdol KM2 :=
lton
DC := CL + CM
CM := FI⋅KM2⋅W 2
2
CM = 67.5Mdol
2
Figure 95 - Cost Calculations
The indirect costs were calculated as an overhead percentage of the direct costs, in this case 25%. For a typical
U.S. nuclear submarine this percentage would be closer to 150%. The cost of the boat satisfies the threshold value
specified in the ORD, $700 million for basic cost of construction and $1 billion for lead ship cost. Figure 96 below
shows the SWBS cost percentage breakdown. SSG(X) is a cost efficient and producible alternative to today’s
nuclear powered submarines.
4%
2%
15%
10%
SWBS Cost Percentage Breakdown
8%
11%
10%
21%
19%
Figure 96 - SWBS Cost percentage breakdown
SWBS 100
SWBS 200
SWBS 300
SWBS 400
SWBS 500
SWBS 600
SWBS 700
SWBS 800
SWBS 900