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Rising procurement costs for Navy ships have recently emerged as a mailer of concern for both Navy officials and some Members of Congress who track Navy-related issues. Combined with constraints on ship-procurement funding, these rising costs have caused the Navy to reduce planned ship procurement rates. The issue for Congress is how to respond to rising Navy ship procurement costs. Aside from reducing planned ship procurement rates, options include increasing annual ship- procurement funding, modifying how Navy ships are funded in the budget, making greater use of multiyear procurement (MYP), and changing the acquisition strategy for certain Navy ships. Another option, particularly if the previous options are not implemented or prove insufficient, would be to reduce Navy ship procurement costs by shifting from currently planned designs to designs with lower unit procurement costs. This report focuses on this option.