GAO's independent cost estimate suggests that the total one-time cost of homeporting a nuclear-powered aircraft carrier at Naval Station Mayport is expected to be between $258.7 million and $356.0 million, in base year 2010 dollars. The Navy's estimate of the one-time cost is $537.6 million--also in base year 2010 dollars--which is outside the upper range of GAO's estimate. Unlike GAO's estimate, the Navy did not conduct a risk and uncertainty analysis on its one-time costs; as a result, its estimate does not include a range. The largest difference between GAO's estimate of one-time costs and the Navy's estimate is the cost of constructing new facilities at Mayport. Based on the historical costs of constructing similar facilities, GAO estimates at the 65 percent confidence level that the cost for constructing the controlled industrial facility will be $70.5 million, and the cost for constructing the ship maintenance support facilities will be $45.6 million. The Navy estimates the construction costs to be much higher at $139.1 million and $157.2 million, respectively. Navy officials told GAO the difference is due to the increased cost involved in protecting the buildings from a potential storm surge associated with a Category 4 hurricane. GAO included a hurricane factor in its estimate to account for this increase, but GAO and the Navy used different estimating methods in developing the estimates for the construction costs. GAO used adjusted actual costs from similar construction projects, while the Navy used a detailed engineering estimate. For recurring costs, GAO's independent cost estimate suggests that the total is expected to be between $9.0 million and $17.6 million per year. The Navy's estimate of $15.3 million per year is within GAO's estimated range.


    Access

    Access via TIB

    Check availability in my library


    Export, share and cite



    Title :

    Defense Infrastructure: Navy Can Improve the Quality of Its Cost Estimate to Homeport an Aircraft Carrier at Naval Station Mayport


    Publication date :

    2011


    Size :

    83 pages


    Type of media :

    Report


    Type of material :

    No indication


    Language :

    English