American Shipbuilding Association

Senators Sound Alarm and Make America’s Navy a Priority

During the confirmation hearing before the Senate Armed Services Committee on October 6th, nominee for Secretary of the Navy, Donald C. Winter responded to a volley of insightful questions from Committee members, each of which addressed a common and alarming theme – the threat to the Nation if the naval fleet and domestic shipbuilding industry continue to decline. 

Senator Saxby Chambliss (R-GA) began by pointing out that the Navy has been reduced by over half of what it was 15-20 years ago, and that the Navy has been coming to Congress with budgets that have steadily downsized the force structure.  Noting that terrorism is not the only threat facing the U.S.,  and that countries that could be potential adversaries are building their naval fleets, Sen. Chambliss questioned why the Navy is still focusing on downsizing, rather than recapitalizing the fleet.  The criticism was echoed  by Senator Joseph Lieberman (D-CT), specifically in regards to the Nation’s submarine fleet.  Noting that there has not been “an officially approved, unambiguous plan for the future size and structure of the Navy” for some time, and though report after official report state that the Nation needs an attack submarine force of 55-75 submarines, the Navy continues to request only one submarine a year, a procurement rate that will never recapitalize the fleet.

The most poignant comments on establishing the Nation’s force structure and then rebuilding the required fleet, came from Senator Jim Talent (R-MO), Chairman of the Sea Power Subcommittee.  Highlighting the ever shifting range in force structure proposed by the Navy; the future years procurement plans that continue to slash ship numbers; and the fact that China is advancing its naval force structure by leaps and bounds, Senator Talent blasted the Navy for citing fiscal constraints as a means of determining force structure.  Addressing his colleagues on the Committee, Talent commented, “…If we’re worried about constraints, okay.  To the extent that we imperil the security of the United States or risk a war… it’s going to be very bad for the budget, a whole lot worse for the budget than spending the amounts now to get the Navy that we need.”  Talent charged Winter, with the “historic responsibility” of rebuilding the fleet, if confirmed.

Senator Susan Collins (R-ME) voiced the challenges the shipbuilding industry is facing with low rates of procurement, and instability and lack of predictability in procurement plans, and how these factors are jeopardizing the skilled industrial base needed to build naval ships.  Collins commented that skilled shipbuilders and engineers are not likely to remain in the industry if there is no certainty of stable employment.  If these employees are lost, the nation will lose its ability to build ships.  In addition to low procurement, Collins revisited the Navy’s faulty cost saving measure of a winner-take-all strategy for the DDX, the next generation of destroyer, which was proposed earlier this year.  If it had been pursued, the plan would have resulted in the likely closure of a shipyard.  Collins cautioned Winter against considering any policy that would create a sole-source situation for naval ships, or any policy which would directly and negatively impact the country’s shipbuilding industrial base.   

Directly tackling the issue of low rates of procurement, Senator Jack Reed (D-RI) expressed concern over the “meager annual production of ships” and asked, in light of the increased cost of ships, how the nation is going to be able to continue building naval ships.  Committee Chairman, Senator John Warner (R-VA) noted that while Congress has authorized alternative funding mechanisms for naval ships, these funding measures will not correct the problem of stable procurement and funding requests.  In response, Mr. Winter acknowledged that the increase in capability comes with a price tag and while funding flexibility helps, he agreed it is not the sole solution.  He commented that the Nation must determine the required naval force structure, and then work out how to pay for it. 

While Winter’s responses to the questions and comments voiced during the confirmation hearing were thoughtful, with assurances that during his tenure he would work with Congress to address the force structure and recapitalization issues, the hearing served as a substantive forum for the Senate Armed Services Committee to underscore that investments in shipbuilding can no longer be postponed and that the future security of the country lies with rebuilding the fleet now. 

Defense Appropriations Bill Moves to Conference

Before leaving for the Columbus Day recess, the Senate completed work on its version of the FY 2006 Defense Appropriations Bill.  Though cutting the procurement request from 4 ships to 3, the Senate restored funding to most of the major shipbuilding programs; funding that is vital to reduce costs and prevent construction delays. 

Included in the Senate’s bill is an additional $86.7 million to the budget request for the CVN-21 aircraft carrier, and an additional $50 million for advance procurement for the second DDX next generation of destroyers.  The Senate did, however, cut all funding for the T-AKE combat force logistics ship, citing concern with delays in the construction schedule.  In contrast, the House bill, which was passed in June, did not include additional funds for CVN-21, and cut all funding for advanced procurement for DDX.  The House did include an additional $50 million in funding for the LHA(R) amphibious assault ship and added a second T-AKE to the President’s budget request. 

Given the extremely differing approaches taken by the House and the Senate, the conference of the two bills will be closely monitored.  The shipbuilding industry, in a formal letter to Defense Appropriations Conferees, requested that the Senate appropriation for CVN-21 and DDX be retained, in addition to retention of the House recommendation for LHA(R).  Industry has also urged that the President’s request for one T-AKE be funded.  While Congress has taken steps to mitigate the damage to the naval shipbuilding account, the shipbuilding industry urges further foresight, and encourages Congress to keep naval shipbuilding a priority for the present and the future. 

Naval and Coast Guard Ships Respond to Gulf Hurricanes

In the hours and days following Hurricanes Katrina and Rita, the United States Navy and Coast Guard were the first to respond.  Shortly after Hurricane Katrina subsided, Navy crew members on board the USS San Antonio, which is in the final stages of construction at Ingalls, Northrop Grumman Ship Systems in Pascagoula, Mississippi, set forth in preparing potable water and ice for the citizens in the area, and helped to provide power and fuel.  In the days following the storm, over 20 U.S. naval ships arrived in positions off the coasts of Louisiana, Mississippi, and Alabama.  The hospital ship, USNS Comfort provided medical care to hurricane victims.  Amphibious ships served as shelters to displaced residents, providing hot meals, showers, and beds.  Other naval ships assisted in search and rescue operations, delivery of desperately needed supplies, and removal of underwater debris from ports and shipping lanes.  According to figures cited by the Navy, it helped to rescue and evacuate nearly 10,000 people, delivered over 1.9 million pounds of food and water, and provided medical treatment to over one thousand civilian patients.  With the ships already in the area, the Navy was also in place to assist residents of Louisiana and Texas following Hurricane Rita.   

The Coast Guard assisted in preparations before the storms, and in rescue efforts during, and in the days following both hurricanes.  The Department of Homeland Security reports that the Coast Guard rescued and evacuated over 33,000 people from Hurricane Katrina.

While devastating, Hurricanes Katrina and Rita help to remind Americans that in addition to protecting the United States from hostile attacks and emerging threats, America’s sea services play vital roles in humanitarian relief.  In times of war, terrorist attack, or natural disaster, the Nation depends on its naval and Coast Guard ships.  While the missions of our sea services continue to grow, the Nation’s naval fleet continues to sink to historic lows – numbering just 281 ships today (down from almost 600 just fifteen years ago) and our Coast Guard vessels are among the oldest in the world.  To ensure readiness, the Nation must invest in its Navy and Coast Guard fleets. 

NASSCO President to Retire

On October 6th, Richard Vortmann, President of National Steel and Shipbuilding Company (NASSCO) in San Diego, announced that he will retire as president of the shipyard at the end of this year.  He will assume Chairmanship of NASSCO’s Board of Directors in January of next year.  Mr. Vortmann has served as President for 23 years, and has been one of the shipbuilding industry’s strongest leaders, focusing not only on the ships built at NASSCO, but the health of the entire shipbuilding industry. 

Fred Harris will succeed Mr. Vortmann as President.  Mr. Harris presently serves as senior Vice President for Programs at Electric Boat where he has played an instrumental role in several key design, construction and fleet support programs for numerous programs, including the Seawolf- and Virginia-class submarine programs.  He is a graduate of the Maine Maritime Academy with a Bachelor’s degree in Marine Engineering, and earned his MBA degree from Babson College.  He sailed for several years in the U.S. Merchant Marine, notably aboard the SS Transglobe, the most decorated American merchant ship of the Vietnam War.

ASA extends its gratitude to Mr. Vortmann for his years of dedicated service and guidance and wishes him well in his new role as Chairman of the NASSCO Board.  The industry also extends its welcome to Mr. Harris and looks forward to benefiting from his extensive experience. 

Well Said!

“…I’ve heard a lot about fiscal constraint, and the need to make dollars go further.  I

certainly agree..., but I do not want that, in the belief that we can make dollars go

further, to be an excuse for not appropriating what we have to appropriate to get the

ships that we need… We’re talking about the security of the United States.”

Senator Jim Talent (R-MO)

Senate Armed Services Committee

Confirmation Hearing of Donald C. Winter for Secretary of the Navy

October 6, 2005