The Navy has been procuring Virginia (SSN-774) class nuclear-powered attack submarines (SSNs) at a rate of one per year for the past several years. The procurement rate is scheduled to increase to two boats per year starting in FY2011. A total of 11 boats have been procured through FY2009. The 8 Virginia- class submarines to be procured in the 5-year period FY2009-FY2013 (boats 11 through 18) are being procured under a multiyear procurement (MYP) arrangement. The Navy's proposed FY2010 budget, which is expected to be submitted to Congress in early- to mid-May, is expected to request procurement funding to complete the procurement cost of the 12th Virginia-class boat, advance procurement funding for the 2 Virginia-class boats scheduled to be procured in FY2011, and additional advance procurement funding for Virginia-class boats scheduled to be procured in subsequent fiscal years. The Navy's proposed FY2009 budget requested $2,107.0 million to complete the procurement funding for the 11th Virginia-class boat. This boat had already received $756.0 million in prior-year advance procurement funding. The Navy's proposed FY2009 budget also requested $719.8 million in advance procurement funding for Virginia-class boats to be procured in future fiscal years, and $596.8 million in additional procurement funding for economic order quantity (EOQ) purchases of key components for the 8 Virginia-class boats being procured under the FY2009- FY2013 MYP arrangement. Section 8011 of the compromise version of the FY2009 defense appropriations act (Division C of H.R. 2368/P.L. 110-329 of September 30, 2008) granted authority for using FY2009 funds for an MYP arrangement for the Virginia-class program. The act approved the Navy's FY2009 procurement funding request for the Virginia-class program and increased by $79 million the Navy's FY2009 advance procurement funding request for the program. The $79- million increase was for EOQ.


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