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Pentagon budget 2022: US Navy adjusts overhaul funding needs for carrier overhauls

The US Navy is requesting additional funding in its proposed fiscal year (FY) 2022 budget for its Refueling Complex Overhauls (RCOHs), according to budget proposal documents released on 28 May.

Altogether, the USN is requesting about USD2.5 billion in FY 2022, compared with the USD1.5 billion the service received for RCOH programmes in FY 2021.

FY 2022 is the third of three years of full funding for the USS John C Stennis (CVN 74). The USN's request includes a USD571.3 million, which is “primarily the result of USD347.3 million for the prime contractor [Huntington Ingalls Industries] shifted from FY 2021 to FY 2022, and USD190.6 million for cost increases in basic construction”, the USN noted.

“This increase is driven by a higher than budgeted execution contract award value that incorporated CVN 74 specific repair items into the base work package,” the USN said. “CVN 74 specific repair items were finalised with the prime contractor in 2020 and the execution contract was awarded to the prime contractor, with period of performance starting January 2021.”

The USN says its needs USD190.6 million more for CVN 74 basic construction costs, compared with FY 2021, “due to the higher than budgeted execution contract award value and updated cost estimates received by the prime contractor and other repair activities”. The base work package was finalised with the prime contractor in 2020.

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