The Navy Department will have to create new platform concepts capable of performing its missions in a timely and cost-effective way. The challenges faced by the Navy and Marine Corps in this era are similar to those faced by the Navy in making the transition from sail to steam and, later, to carrier jet aircraft. Each of these tenets is reflected in the recommendations made in this report. The Navy has adapted to its sharply reduced budget by decommissioning ships and aircraft that still have significant operational capability. In the context of this downsizing of U.S. naval forces, a decision was made to support the production base in Navy-unique technology and production capabilities.
Shipbuilding is a case in point.
There is a two-edged sword at play here. On the one hand, there is a need to maintain momentum in the shipbuilding industry in the face of reduced procurement. On the other, decreased procurement volume drives unit cost up. To offset and regain funds for recapitalization it is essential for the Navy Department to have a comprehensive plan that minimizes manning, infrastructure, and all life-cycle support costs. Ideally, this should be coupled to a broad agreement with DOD and Congress to allow recaptured funds to be applied to the Navy and Marine Corps recapitalization program.