ESTIMATING THE COST OF SHIPBUILDING IN THE USSR

Document Type: 
Collection: 
Document Number (FOIA) /ESDN (CREST): 
CIA-RDP79B00457A001300010001-8
Release Decision: 
RIPPUB
Original Classification: 
S
Document Page Count: 
25
Document Creation Date: 
December 21, 2016
Document Release Date: 
March 20, 2009
Sequence Number: 
1
Case Number: 
Publication Date: 
August 1, 1977
Content Type: 
REPORT
File: 
AttachmentSize
PDF icon CIA-RDP79B00457A001300010001-8.pdf860.82 KB
Body: 
vy- ? R Approved For Release 2009/03/20: CIA-RDP79B00457A001300010001-8 Secret DIRECTORATE OF INTELLIGENCE Office of Strategic Research Estimating the Cost of Shipbuilding in the USSR Not referred to HHS. Waiver applies. NAVY review completed. Secret SR 77-10069 August 1977 Copy No 311 Approved For Release 2009/03/20: CIA-RDP79B00457A001300010001-8 Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 Approved For Release 2009/03/20: CIA-RDP79B00457A001300010001-8 Estimating the Cost of Shipbuilding in the USSR Office of Strategic Research August 1977 Summary A model used by the Soviets to estimate the cost of merchant ships has been adapted by OSR to estimate the cost of the basic portion of Soviet naval surface ships. The term "basic portion" means the total ship less its weapons and electrical and electronics equipment. The model uses cost-estimating relationships (CERs) derived from actual experience at shipyards in the European USSR, where nearly all Soviet merchant ships and most naval surface ships are constructed. It provides CERs for the major groups of ship components. In addition, it gives cost adjustment factors for special characteristics that may be incorporated in a ship. This permits the model to be used to estimate the costs of naval ships, because these adjustments cover the major special features found on basic naval combatants. To test the accuracy of the model, we have used it to estimate the cost of 17 Soviet merchant ships for which actual costs and technical data are available from independent sources. In every case, the estimates fall within 14 percent of actual costs-and for 10 of the ships the range is only 5 percent-thus proving the method to be an excellent predictor of the costs of merchant ships. Use of the model on a sample of 26 Soviet naval ships showed results consistent with those derived by applying a model developed by the Rand Corporation to cost US naval ships in dollar terms. This consistency tends to confirm the validity of adapting the Soviet merchant ship model to costing naval ships. Approved For Release 2009/03/20: CIA-RDP79B00457A001300010001-8 Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 The accuracy of the model in producing average costs of ships of a given class makes it an excellent tool for deriving ruble-dollar ratios for the Soviet and US shipbuilding industries. Use of the model indicates ruble- dollar ratios ranging from .45 to .60 (1970 rubles to 1973 dollars) for Soviet merchant ships and from .50 to .75 for Soviet naval ships. ii SECRET Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 Approved For Release 2009/03/20: CIA-RDP79B00457A001300010001-8 Introduction . . . . . . . . . . . . . . . . . . . . . . . . . 1 The Model . . . . . . . . . . . . . . . . . . . . . . . . . . 1 Major Component Groups . . . . . . . . . . . . . . . . . 1 Hull . . . . . . . . . . . . . . . . . . . . . . . . 1 Main Propulsion System . . . . . . . . . . . . . . . . 2 Mechanical Equipment . . . . . . . . . . . . . . . . 2 Construction Services . . . . . . . . . . . . . . . . . 2 Scale of Production . . . . . . . . . . . . . . . . . . . . 3 Other Factors . . . . . . . . . . . . . . . . . . . . . . 3 Accuracy of the Model . . . . . . . . . . . . . . . . . . . . . 3 Application to Naval Ships . . . . . . . . . . . . . . . . . . . 3 Ruble-Dollar Ratios . . . . . . . . . . . . . . . . . . . . . . 6 Merchant Ships . . . . . . . . . . . . . . . . . . . . . . 6 Naval Ships . . . . . . . . . . . . . . . . . . . . . . . 7 Appendixes . . . . . . . . . . . . . . . . . . . . . . . . . 11 iii SECRET Approved For Release 2009/03/20: CIA-RDP79B00457A001300010001-8 Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 Figure 1 Factors in Costing Ship Construction ? Light Displacement ? Horsepower ? Ice Reinforcement ? Horsepower ? Additional Shaft ? Strengthened Steel ? Number of Engines ? Controllable-Pitch ? Superstructure of ? Reduction Gear Propeller Aluminum or Synthetic Material ? Turbocharger ? Special Heat and ? Fiberglass Insulation ? Automatic Control Pressure Standards lv SECRET Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 Estimating the Cost of Shipbuilding in the USSR This paper describes a model used by the Sovi- ets to estimate the cost of their merchant ships and adapted by OSR to estimate the cost of the basic portion of their naval surface ships. The paper also discusses tests applied to determine the validity of the model, outlines its application to the problem of estimating the cost of Soviet naval ships, and examines the ruble-to-dollar ratios that result from applying it to both Soviet and US ships. The Model The Soviet model was developed at the Central Scientific Research Institute and the Leningrad Central Planning and Design Bureau of the Minis- try of the Maritime Fleet. It is described in El Soviet monograph by V. I. Krayev, =:~tupln, and E. L. Limonov, well-known specialists in the economics of shipbuilding.' The authors describe the model as the most complete methodology available for estimating the cost of constructing Soviet merchant ships. It was designed for use by specialists engaged in planning the development of the maritime fleet and in estimating the costs of constructing new classes of vessels. The model is used to estimate prices that would be charged at Soviet ship- yards-that is, full product cost (sebestoimost') plus normal enterprise profit. 1 V. I. Krayev, 0. K. Stupin, and E. L. Limonov, Economic Substantiation in the Design of Seagoing Cargo Vessels, trans. JPRS 63050, 1974. The cost-estimating relationships (CERs) developed for the model are derived from experi- ence at shipyards in the European USSR. Almost all Soviet merchant ships and most naval surface ships are constructed at these yards. The model includes cost adjustment factors for ships con- structed in the northern or far eastern USSR. The CERs are based on 1972 price norms. Major Component Groups For estimating purposes, the model divides the ship into three major component groups-hull, main propulsion system, and mechanical equip- ment-and adds the cost of construction serv- ices.' The US Maritime Administration and the US Navy use similar groups of components in 25X1 preparing cost estimates for constructing ships. The model also provides cost adjustment fac- tors which take into account special features of each component group on merchant ships (Fig- ure 1). These adjustment factors are vital to our ability to apply the model to naval surface ships. Hull The cost of the hull is estimated as a mathe- matical function of light displacement3 and the mission of the ship. The model also provides a capability to adjust this cost for special features, including: 2A detailed breakdown of items included in each group is shown in appendix A. 3Weight of a merchant ship, in tons, with machinery and ready for service, but without crew and their effects, consumable items, or variable load. Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 Figure 2 Cost Adjustment Curves For Multiple Production of Ships With Varied Light Displacement Light Displacement A =To 2,000 tons B =2,001-5,000 tons C =5,001-10,000 tons D =More than 10,000 tons ? ice reinforcement, ? use of strong, higher quality steel, ? a superstructure constructed of aluminum or a synthetic material, ? fiberglass insulation. 5 6 7 Number of Similar Ships Main Propulsion System The cost of the main propulsion system is esti- mated as a function of the number and types of engines, their horsepower and speed, and the type of transmission. Special adjustment features can account for: ? reduction gears, ? turbocharging, and ? automatic control. Mechanical Equipment The cost of mechanical equipment is estimated to be a function of the type and power of the main engine, the type of propulsion shafts, and the ship's mission. Special adjustments can be made for: ? additional shafts, ? controllable-pitch propellers, and ? special temperature and pressure standards.' Construction Services The cost of construction services is estimated as a function of light displacement and the ship's mission. 4To be used when temperature and pressure in the engine and boiler exceed 470?C and 40 atmospheres, respectively. Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 Scale of Production The model also considers the effect of produc- tion scales on the cost of a ship. When units of a similar type are constructed sequentially in the same shipyard, the cost per ship decreases through the first few units. The rate of decrease in the marginal cost of a ship depends primarily on the ship's light displacement and the number of units constructed in a class. According to the model, the lighter ships benefit more from eco- nomies of scale than the heavier ones. In addi- tion, these benefits continue longer with light ships (Figure 2). For ships with light displace- ments up to 2,000 tons, reduction in cost contin- ues through about the 12th ship in the class. On the other hand, for ships of more than 10,000 tons the Soviets believe that there is no reduction in cost after the fifth unit. Analysis of the cost and production data given in the model indicates that the Soviets expect learning curves of about 88 to 90 percent for all types of ships. Other Factors The cost can be further adjusted to take into account the location of the shipyard if the ship was not constructed in the European USSR. In addition, the model can be modified to take into account the cost of accommodating the addi- tional crew carried on naval ships. Accuracy of the Model The Soviet authors do not provide quantitative measures of the accuracy of the model in predict- ing the costs of Soviet merchant ships. To test its accuracy, the model was used to derive the costs of 17 Soviet merchant ships for which actual costs and technical data are available from inde- pendent sources.5 As shown in Table A and Figure 3, the model proved to be a highly accurate predictor of actual cost for the 17 ships. All of the estimated costs fall within a range of minus 8 to plus 14 percent of actual costs; in 10 cases they fall within plus or minus 5 percent. While the size of the sample is too small for more definitive testing, the differences appear to be random and not biased by ship size or class. Application to Naval Ships The Soviet cost model was designed to esti- mate the cost of merchant ships, but it can be adapted for the basic portion of naval surface ships (total ship less weapons and electrical and electronics equipment) because of some similar- ities between basic naval and merchant ships. An examination of shipbuilding practices in the US reveals that hull costs per ton and propul- sion machinery costs per shaft horsepower are almost the same for merchant and naval ships. Moreover, there is little difference in the con- struction costs of a basic US naval ship and that of a merchant ship of the same displacement and horsepower. It had been thought that different construction standards for merchant and naval ships would greatly alter their respective costs, but this factor has not proven to have had much impact on expenditures. The studies of US ships indicate that naval ships have a higher total cost than merchant ships almost entirely because of the costs of outfitting, armaments, electrical and electronics equipment, and auxiliary machin- ery-that is, those systems that are required spe- cifically for the fulfillment of the naval ship's mission. .6 On the Soviet side, there do not appear to be major differences in the construction norms of the basic portion of naval and merchant ships. In addition, intelligence analysis indicates that ship- building practices in Soviet yards are almost the 50. A. Novikov, Ekonomika I Ekspluatatsiya Morskogo Flora, Trud: No. 130 (Economics and Operations of the Maritime Fleet, No.130) (Leningrad: Izdatel'stvo Transport, 1971), pp. 12-17. A. Ye. Berkov, N. V. Dymchenko, and 0. A. Novikov (edi- tors), Tsennik No. 27 Dlya Pereotsenki Sudov Morskogo, Rechnogo, I Rybopromyshlennogo Flota na 1 Yanvarya 1973 Coda, (Price List No 27 for Reappraisal of Ships in Maritime, River, and Fishing Fleets-1 January 1973) (Moscow: Izda- tel'stvo Transport, 1972). 6J. A. Fetchko, Cost Comparison, Naval vs. Commercial Ships, Naval Ship Systems Command, Dec 1971. Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 Figure 3 Comparison of Estimated and Actual Ruble Cost of Soviet Merchant Ships' Actual Cost 16r 1 Million 1970 Rubles A Dry Cargo ^ Tanker ? Timber Carrier o Icebreaker x Tugboat ? Hydrofoil Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 Approved For Release 2009/03/20: CIA-RDP79B00457A001300010001-8 Estimated and Actual Ruble Cost of Soviet Merchant Ships Light Estimated Cost Actual Cost Type and Name of Soviet Ship Displacement (Tons) (Million Rubles) (Million Rubles) (Million Rubles) (Percent) Dry Cargo Abruka 347 .715 .75 -.035 -5 Slavyansk 4,600 7.48 7.32 +.16 +2 Bezhitsa 6,330 7.06 6.95 +.11 +2 Kapitan Kushnarenko 7,153 11.82 11.25 +.57 +5 Tanker Baskunchak 1,260 1.83 2.00 -.17 -8 Mangyshlak 4,010 7.97 8.6 -.63 -7 Kazbak 4,800 7.13 6.4 +.73 +11 Velikiy Oktyabr' 4,860 9.83 9.5 +.33 +3 Praga 10,100 13.62 11.9 +1.72 +14 Sofiya 12,000 15.01 15.6 -.59 -4 Timber Carrier Baykal 1,040 2.74 2.9 -.16 -6 Sirbirles 1,833 3.58 3.6 -.02 -1 Seliger 2,407 4.58 4.25 +.33 +8 Vytegrales 3,300 4.34 4.66 -.32 -7 Icebreaker Vasiliy Pronchischev 2,055 Tugboat BK-1201 Hydrofoil Meteor Average percent deviation same for naval as for merchant ships.' Thus the cost factors for Soviet merchant and naval basic ships should be almost the same. Furthermore, nothing in available Soviet literature disproves the assumption that merchant cost planning fac- tors can be used for estimating basic naval ship costs. The above analyses of the factors contributing to the cost differential between US merchant and US naval ships and of Soviet shipbuilding prac- tices all support the theory that the CER model can be used to estimate Soviet basic naval ship 7Conversations with experts in Soviet shipbuilding practices from NISC and NAVSEC. SECRET construction spending, provided the costs of special features are added. It is especially impor- tant, therefore, in estimating the cost of a naval ship to account for the special features which generally are not found on a merchant ship. The model does provide cost adjustment factors to account for these special features, thus making it possible to estimate the cost of basic naval shins. One of the most significant differences be- tween naval and merchant ships is the size of the crew. For example, although US Naval Amphib- ious Force Flagship AGC-20 and the C4-S-696 Approved For Release 2009/03/20: CIA-RDP79B00457A001300010001-8 Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 Table B Estimated Ruble Cost of Selected Major Soviet Warships Type Class Average Cost of Basic Ship (Million 1970 Rubles) CL Sverdlov 42.67 CG Kynda 29.26 CG Kresta I 31.16 CG Kresta II 28.19 CG Kara 33.0 DD Krupnyy 27.41 DD Kildin 28.57 DDG Kashin 22.66 DD Krivak 20.39 DD Skoryy 16.43 DD Kotlin 23.82 DD Tallin 30.17 FF Kola 10.16 FF Riga 9.38 FFL Mirka 13.19 FFL Petya I 14.18 FFL Petya II 13.10 CHG Moskva 73.33 CVSG Kiev 114.32 CVSG Follow-on Kiev 125.47 DD Follow-on Krivak 22.43 CG Follow-on Kresta II 31.04 CG Follow-on Kara 36.30 FF Jaguar 15.00 CL Kirov 37.24 CL Chapayev 39.40 merchant cargo ship are similar in displacement and horsepower, the naval ship has accommo- dations for 1,465, while the merchant ship carries a crew of 5 1. The cost of auxiliary systems is related directly to the site of crew accommo- dations. The larger crew size of a naval ship also increases the requirement for environmental con- ditioning services and berthing and mess pro- visions. The Soviet model can be adjusted for additional crew. The Soviet model has several formulas avail- able, depending on the type of merchant ship that is being costed. To apply the model to naval ships, therefore, it is necessary to select merchant ships to serve as analogs for different classes of naval ships.' The principal criterion for selecting analogs is similarity of design and configu- ration. For example, a dry cargo ship is the best type of in ship for estimating the cost of the basic portion of a Soviet guided-missile de- stroyer. The results of these cost calculations for sev eral selected major Soviet warships are given in table B.. Ruble-Dollar Ratios The accuracy of the Soviet costing model in producing average costs of ships of a given class makes it an excellent tool for deriving ruble- dollar ratios for the Soviet and US shipbuilding industries. By comparing the ruble costs of So- viet ships with the cost of producing such ships in the United States, we can develop Soviet- weighted ruble-dollar ratios. Such ratios depict the relative purchasing power of the currency of the two countries with respect to ships of So- viet design and technical characteristics. US- weighted ratios are derived by comparing the ruble and dollar costs of producing US ships. They reflect the relative costs of producing ships of US design and technical characteristics. Such ratios permit reasonably accurate conver- sion of the cost of the output of the ship- building industries of each of the two countries into the currency of the other. Merchant Ships Ruble cost estimates for several classes of Soviet merchant ships covering a wide range of displacements and costs were derived from the Soviet cost model and compared with dollar cost estimates of the same ships. The dollar estimates, reflecting what it would cost to build the Soviet ship in the United States, were fur- nished by the US Maritime Administration. Ruble-dollar ratios were then calculated for each class of ship. The results are shown in table C. The values of all of the observations fall within a range of .467 to .613 (1970 rubles to 1973 dollars)-an exceptionally narrow range for ruble-dollar calculations-and appear to be aA complete list is given in appendix D. Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 normally distributed around mean and median values of .537 and .522, respectively.9 To complement this analysis, cost estimates were derived in both dollars and rubles for a sample of US merchant ships. The physical de- scription and dollar cost data were obtained from the US Maritime Administration. The So- viet model was used to derive theoretical ruble costs. The results are given in table D. The values again appear to be normally distributed, with a mean of .647, median of .656, and a range of .542 to .757.10 The data in tables C and D illustrate that the average Soviet-weighted ratio is lower than the average US-weighted ratio. This accords with the economic principle that countries design and produce products for which they have a comparative advantage. In other words, the So- viets are slightly better (that is, have a lower ruble-dollar ratio) at building their own mer- chant ships than they would be at building US ships, and the converse is true for the United States. Naval Ships As discussed earlier, the model was used to estimate the average ruble costs of the basic portion of 26 different classes of Soviet war- ships. The dollar costs of these warships were then estimated by using a model developed by the Rand Corporation.'' Ruble-dollar ratios were calculated and are shown in table E. The statistical properties of the sample are sum- marized in figure 4. The derived average ratio of .620 is somewhat higher than that for the So- viet-weighted sample for merchant ships, imply- ing that the Soviets have a slight comparative advantage in producing merchant ships vis-a-vis naval ships. Like the sample for merchant ships, 9The oK lmogrov-Smirnov statistical test applied to the sample results in a value of .173. At a significance level of 20 percent, a value in excess of .339 would have been needed to refute the assertion that the ratios are normally distributed. 10The Kolmogrov-Smirnov test gives a value of .135 for these samples. At a 20-percent signficance level, a value larger than .339 is needed to reject the assertion that dispersion is normal. 11 R. P. Johnsons et at., Determination of Weight, Volume, and Construction Costs for Naval Combatants and Auxiliary Ships, the Rand Corporation, Santa Monica, California, 1969. Figure 4 Frequency Curve of Ruble-Dollar Ratios for Selected Major Surface Combatants Sample Size 26 Range 0.512 to 0.800 Mean 0.620 Variance 0.004 Standard Deviation : 0.065 Coefficient of Variation ? 11 percent that for naval ships shows an exceptionally nar- row dispersion about the mean value. The statistical properties of the sample in- dicate a consistency of the results of the Soviet model with those of the Rand Corporation model. That is, by using a ruble-dollar conver- sion factor of .62, the Soviet model predicts the dollar costs of the naval ships within plus or minus '22 percent (with a 95 percent confidence interval). This consistency of results tends to confirm the validity of adapting the Soviet mer- chant ship model to costing naval ships. Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 Approved For Release 2009/03/20: CIA-RDP79B00457A001300010001-8 Table C Ruble-Dollar Cost* of Soviet Merchant Ships Cost of First Unit Light Ruble- Type and Name Displacement (Million 1970 (Million 1973 Dollar of Ship (Tons) Rubles) Dollars) Ratio Container Carrier - Aleksandr 3,460 7.94 14,0 .567 Container Carrier - Sestroretsk 3,760 7.97 16.24 .491 Dry Cargo - Dneproges 4,270 9.63 18.75 .514 Tanker - Velikiy Oktyabr' 4,860 11.14 21.70 .513 Dry Cargo - Capitan Kushnarenko 7,150 13.51 28.90 .467 Tanker - Pekin 8,100 14.61 26.88 .544 Bulk Carrier - Aleksandr Metrosov 11,200 17.30 28.70 .603 Tanker - Sofiya 12,000 17.13 32.80 .522 Tanker - Krym 30,200 36.11 58.94 .613 Average ruble-dollar ratio .537 * Ruble and dollar estimates include design and shipyard equipment costs. Table D Ruble-Dollar Cost* of US Merchant Ships Light Cost per Unit Ruble- Type and Name Displacement (Million 1970 (Million 1973 Dollar of Ship (Tons) Rubles) Dollars) Ratio Oceanographic S2-M-MA74a 1,800 6.32 9.63 .656 Tanker T6-S-93A 8,800 11.7 18.17 .644 Container Carrier C5-S-73B 10,330 12.87 17.00 .757 Container Carrier C7-S-88a 12,700 17.47 25.26 .692 Barge Carrier C8-S-81C 13,800 18.23 32.30 .564 Roll-on Roll-off C7-S-95a 15,900 21.20 37.37 .567 Lighter Carrier C9-S-81D 16,070 19.37 27.86 .695 Tanker T8-S-100B 16,800 19.60 27.86 .704 Tanker T11-S-116a 60,140 59.00 108.83 .542 Average ruble-dollar ratio * Ruble and dollar estimates include design and shipyard equipment costs. Approved For Release 2009/03/20: CIA-RDP79B00457A001300010001-8 Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 Ruble-Dollar Ratios* of Selected Major Warships Million Million Ruble- Total Cost (Millions) No. of 1970 1973 Dollar Type Class Units Rubles Dollars Ratio 1970 19 73 Rubles Dol lars CL Sverdlov 14 42.6725 68.1531 .626 597.415 954. 1434 CG Kynda 4 29.2601 48.1431 .608 117.0404 192. 5724 CG Kresta 1 4 31.1620 53.3167 .584 124.648 213 .2668 CG Kresta II 12 28.170 52.2335 .529 338.040 638 .8020 CG Kara 7 32.9993 64.4454 .512 230.9951 451 .1178 DD Krupnyy 8 27.4060 40.3612 .679 219.248 322 .8896 DD Kildin 4 28.5721 35.7062 .800 114.2884 142 .8248 DDG Kashin 20 22.6625 43.6687 .519 453.25 873 .374 DD Krivak 20 20.3869 34.8157 .586 407.738 696 .314 DD Skoryy 72 16.4348 26.8970 .611 1183.3056 1936 .584 DD Kotlin 27 23.8154 38.4591 .619 643.0158 1038 .3957 DD Tallin 1 30.1679 40.9412 .737 30.1679 40 .9412 FF Kola 8 10.1622 15.3370 .663 81.2976 122 .696 FF Riga 64 9.3774 13.9141 .674 600.1536 890 .5024 FFL Mirka 20 13.1883 20.11508 .654 263.766 403 .016 FFL Petya I 23 14.1780 20.6815 .686 326.094 475 .6745 FFL Petya II 37 13.1016 20.6815 .633 484.7592 765 .2155 CHG Moskva 2 73.3328 120.0874 .611 146.6656 240 .1748 CVSG Kiev 3 114.3184 187.2046 .611 342.9552 561 .6138 CVSG Follow-on Kiev 2 125.4657 205.4592 .611 250.9314 410 .9184 DD Follow-on Krivak 8 22.4256 38.2973 .586 179.4048 306 .3784 CG Follow-on Kresta II 6 31.0354 58.5568 .530 186.2124 351 .3408 CG Follow-on Kara 3 36.2992 70.8899 .512 108.8977 212 .6700 FF Jaguar 6 15.0038 22.7496 .660 390.0990 591 .4900 CL Kirov 6 37.24 59.0179 .631 223.44 354 .1074 CL Chapayev 5 39.40 61.7534 .638 197.00 308 .7670 Average ruble-dollar ratio for basic ship .620 * Ruble-dollar ratios are for basic ships only. Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 Approved For Release 2009/03/20: CIA-RDP79B00457A001300010001-8 Appendix A Basic Ship Components Affecting Cost Estimates Hull and Equipment Distributing Boards Frames Lines Within Engine and Boiler Room Skin Main Engine Bulkheads Recesses Main Engine Technical Specifications Decks and Platforms Diesel Engine Foundations for the Main Engines and Auxil- Spare Parts iary Equipment Instruments and Tools Stacks Coolers Furniture and Equipment in the Compartments Heat Regulators Raw Items Filters Wood Tanks Coatings Reduction Gear Insulation Paint Main Turbogear Assemblies Structures Turbine Deck Machinery Reduction Gear General Ship's Systems Condenser Electrical Equipment Diesel Electric Plants Navigational and Radio Equipment Fittings Main Diesel Generators Electric Propeller Drives Mechanical Equipment Construction Services Mechanical Equipment of Engine and Boiler Docking Operations Room General Auxiliary & Production Operations Shaft Alleys Mooring Trials Propellers Sea Trials Main and Auxiliary Boilers Acceptance Trials Approved For Release 2009/03/20: CIA-RDP79B00457A001300010001-8 Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 Iq Next 3 Page(s) In Document Denied Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 Approved For Release 2009/03/20: CIA-RDP79B00457A001300010001-8 Appendix D Guidelines for Selecting Merchant Ships as Analogs for Basic Naval Ships To estimate the cost of specific basic naval ships, different types of merchant ships are used, as analogs. The following data show the various examples: 1. Major Surface Combatants CHG and CV-Dry Cargo CA, CG, CL, & CLC-Dry Cargo or Aver- age of Dry Cargo and Container Carrier DD, DDG, FF, and FFL-Dry Cargo or Average of Dry Cargo and Refrigerated Ship II. Minor Surface Combatants PGGP-Dry Cargo or Average of Dry Cargo and Refrigerated Ship PCEP-Average of Dry Cargo and Con- tainer Carrier PB, PC, PCE, PCS, PGH, PGM, PT, PTC, PTF, PTFG, and PTG-Dry Cargo MCS, MSB, MSC, MSF, MSI, and MSL-Dry Cargo III. Amphibious Warfare Types LKA and LCM-Dry Cargo LCU, LPH, LSM, and LSV-Container or Lighter Carrier LST-Average of Lighter Carrier and Roll-on/Roll-Off Roll-on/Roll-off, and Dry Cargo AETL-Container Carrier AE-Refrigerated Ship AG-Average of Dry Cargo and Refrigerated Ship and Tanker or Container Carrier AGB and AGBL-Average of Dry Cargo and Refrigerated Ship (Ice reinforcement) AGF and AGI-Dry Cargo AGM-Average of Dry Cargo and Lighter Carrier AGOR-Average of Refrigerated Ship and Container Carrier or Dry Cargo AGS, AGT, and ALBD-Dry Cargo AO and AOR-Tanker AOS-Gas Carrier (Combined method for petrol gases) AOSR-Gas Carrier APB-Dry Cargo (Ice reinforcement) AR and ARL-Average of Dry Cargo and Refrigerated Ship ARC-Average of Dry Cargo and Tanker (Strengthened Steel) AS, ASL, and ASR-Refrigerated Ships or Tugs or Dry Cargo ATA and ATR-Dry Cargo AWK-Tanker ADG and AFS-Dry Cargo AEM-Average of Container Carrier or V. Surface Craft YAM, YF, and YRD-Dry Cargo or Con- tainer Carrier or Tanker, or average of all of these Approved For Release 2009/03/20: CIA-RDP79B00457A001300010001-8 Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 Iq Next 1 Page(s) In Document Denied Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 Approved For Release 2009/03/20: CIA-RDP79B00457A001300010001-8 Appendix F Glossary of Ship Designators This glossary is based on work done by the Defense Intelligence Agency and published by them. This system is in general use. Major Surface Combatants Guided Missile Helicopter Ship CHG Aircraft Carrier CV Heavy Cruiser CA Light Cruiser CL Guided Missile Cruiser CG Command Light Carrier CLC Destroyer DD Guided Missile Destroyer DDG Frigate FF Small Frigate FFL Minor Surface Combatants Large Submarine Chaser PC Patrol Escort PCE Small Submarine Chaser PCS Patrol Gunboat PG Patrol Guided Missile Boat (point defense)PGGP Motor Gunboat PGM Patrol Boat PB Patrol Gunboat (hydrofoil) PGH Motor Torpedo Boat PT Motor Boat Submarine Chaser PTC Fast Patrol Craft PTF Guided Missile Patrol Boat PTG Large Guided Missile Boat PTFG Mine Countermeasures Ship MCS Minesweeping Boat MSB Minesweeper, Coastal (nonmagnetic) MSC Minesweeper, Fleet (steel hull) MSF Minesweeper, Inshore MSI Minesweeper Launch MSL Amphibious Warfare Ships Amphibious Cargo Ship LKA Landing Craft, Mechanized LCM Landing Craft, Utility LCU Amphibious Assault Ship LPH Medium Landing Ship LSM Tank Landing Ship LST Vehicle Landing Ship LSV Auxiliary Ships Degaussing Ship ADG Ammunition Ship AE Missile Support Ship AEM Small Ammunition Transport AETL Combat Store Ship AFS Miscellaneous AG Icebreaker AGB Miscellaneous Command Ship AGF Intelligence Collector AGI Missile Range Instrumentation Ship AGM Oceanographic Research Ship AGOR Surveying Ship AGS Target Service Ship AGT Heavy Lift Buoy Tender ALBD Oiler AO Replenishment Oiler AOR Special Liquid Carrier AOS Radiological Liquid Carrier AOSR Barracks Ship APB Repair Ship AR Cable Repairing Ship ARC Landing Craft Repair Ship ARL Submarine Tender AS Small Submarine Tender ASL Submarine Rescue Ship ASR Auxiliary Ocean Tug ATA Rescue Ocean Tug ATR Water Carrier AWK Service Craft Missile Support Craft YAM Covered Lighter YF Floating Dry Dock Workshop YRD Approved For Release 2009/03/20: CIA-RDP79B00457A001300010001-8 Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 Secret Secret Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 Iq Next 12 Page(s) In Document Denied Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 OSR Report, SR 77-10069, "Estimating the Cost of Shipbuilding in the USSR, August 1977, MEMORANDUM FOR: Mr. Andrew W. Marshall Director of Net Assessment, OSD Room 3-A-930, The Pentagon Washington, D.C. 20301 The attached report details one of the principal pieces of analysis underlying the change- which we made last year in our estimate of Soviet defense spending in rubles. STAT STAT wri FORM lUl EDITIONS sous Chief Military-Economic Analysis Center OSR Date 2 2 AUG 1977 MEMORANDUM FOR: Mr. Paul K. Cook Director, Office of Research and Analysis for the Soviet Union and Eastern Europe ( INR/DDR/RSE) Room 4758, State Department Washington, D.C. The attached report details one of the principal pieces of analysis underlying the change which we made last year in our estimate of Soviet defense spending in rubles. STAT Chief Military-Economic Analysis Center OSR Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 MEMORANDUM FOR: Mr. Daniel Gallik Economic Division, Room 804 State Annex 6 Washington, D.C. 20451 The attached report details one of the principal pieces of analysis underlying the change which we made last year in our estimate of Soviet defense spending in rubles. STAT X13 5 75 101 ED USE ITIONS PREVIOUS Chief Military-Economic Analysis Center OSR Date Mr. J. Dale Pafenberg Hdqs. USAF (INA) Department of the Air Force Washington, D.C. 20330 The attached report details one of the principal pieces of analysis underlying the change which we made last year in our estimate of Soviet defense spending in rubles. STAT Chief Military-Economic Analysis Center OSR 2 2 AUG 19(7 Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8 Next 22 Page(s) In Document Denied Iq Approved For Release 2009/03/20: CIA-RDP79B00457AO01300010001-8