Case Study: US Navy achieves $400m per boat cost savings with PA Consulting

Helping to define a cost reduction strategy to achieve savings of $400m per boat

PA Consulting worked with the US Navy, which needed to increase Virginia-class submarine production from one to two boats per year while reducing the cost of each submarine by $400 million. The challenge was to achieve major savings without disrupting the program’s strong performance or ongoing delivery.

PA Consulting supported the Virginia-class program office and shipbuilding team with dynamic simulation and rigorous analysis of the full program cost and schedule from design through construction of 18 submarines. By evaluating changes to design, construction, funding, engineering investment, production rates, schedules, and workforce, PA Consulting helped the Navy agree on a realistic path to achieve the targeted $400 million in savings per boat.

US Navy