Citing Tight Budgets, U.S. Navy Decides To Scrap Fire-Damaged Nuclear Sub
WASHINGTON | Wed Aug 7, 2013 3:15pm EDT
(Reuters) - The U.S. Navy said on Wednesday it will scrap a nuclear-powered submarine damaged by an arsonist last year rather than repair it, saying the $700 million repair cost could not be justified in a time of tight budgets.
The decision to deactivate the USS Miami nuclear attack submarine, which had been scheduled for another decade of service, was the second example in as many days of the balancing act facing the Pentagon as it attempts to deal with effects of huge across-the-board budget cuts.
The department announced on Tuesday that it had found ways to trim $1 billion in planned spending, enabling it to reduce the unpaid leave it is forcing on some 650,000 civilian employees this fiscal year to six days from 11.
Rear Admiral Rick Breckenridge said the decision to deactivate the USS Miami, which involves removing the nuclear fuel and preparing the vessel to be taken apart, followed a reassessment that projected a jump in likely repair costs to about $700 million from the initial $500 million.
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http://www.reuters.com/article/2013/08/07/us-usa-defense-submarine-idUSBRE97612L20130807