Flexible and Adaptable Ship Options: Assessing the Future Value of Incorporating Flexible Ships Design Features into New Navy Ship Concepts

Abstract

In order to successfully implement the Surface Navy's Flexible Ships concept, PEO-SHIPS requires a new methodology that assesses the total future value of various combinations of Flexible Ships design features and how they will enable affordable warfighting relevance over the ship's full service life. Examples of Flexible Ships design features include decoupling payloads from platforms, standardizing platform-to-payload interfaces, allowance for rapid reconfiguration of onboard electronics and weapons systems, preplanned access routes for mission bays and mission decks, and allowance for sufficient growth margins for various distributed systems. This research analyzes the application of strategic Real Options Valuation methodology within the Integrated Risk Management process to assess the total future value of Flexible Ships design features and to be used in the Future Surface Combatant Analysis of Alternatives. The current research has the explicit goal of proposing a reusable, extensible, adaptable, and comprehensive advanced analytical modeling process to help the U.S. Navy in quantifying, modeling, valuing, and optimizing a set of ship design options to create a business case for making strategic decisions under uncertainty.