American Shipbuilding Association

House Members Found Congressional Shipbuilding Caucus

As the 109th Congress convened, Representatives Jo Ann Davis (R-VA) and Gene Taylor (D-MS) announced the formation of a Congressional Shipbuilding Caucus.  In a Dear Colleague letter sent to Members of the House of Representatives, the Congressional Shipbuilding Caucus

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To date, the following Members have joined the Caucus:  Representatives Gary Ackerman (D-NY), Todd Akin (R-MO), Rodney Alexander (R-LA), Tom Allen (D-ME), Henry Bonilla (R-TX), Robert Brady (D-PA), Eric Cantor (R-VA), Shelley Moore Capito (R-WV), Duke Cunningham (R-CA), Thelma Drake (R-VA), Anna Eshoo (D-CA), Virgil Goode (R-VA), Robin Hayes (R-NC), Maurice Hinchey (D-NY), David Hobson (R-OH), Steve Israel (D-NY), Darrel Issa (R-CA), William Jefferson (D-LA), Patrick Kennedy (D-RI), Jim Langevin (D-RI), Rick Larsen (D-WA), John Larson (D-CT), Frank LoBiondo (R-NJ), James McGovern (D-MA), Mike McIntyre (D-NC), Mike Michaud (D-ME), Chip Pickering (R-MS), Todd Russell Platts (R-PA), Dutch Ruppersberger (D-MD), Bobby Scott (D-VA), Rob Simmons (R-CT), Chris Smith (R-NJ), Stephanie Tubbs Jones (D-OH), and Roger Wicker (R-MS).

As the naval fleet continues to decline in size while the demands on the fleet grow, it is imperative that the threats to the fleet and the industrial base that builds that fleet be addressed immediately.  Every Member of Congress who has an interest in the national security of this country should be an active participant in the Caucus.  The American Shipbuilding Association applauds the leadership of Reps. Davis and Taylor and urges all Members to join.      

2004 Shipbuilding Convention

“The last thing I want to see is American men and women serving on warships built in China.”

Rep. Jo Ann Davis (R-VA)

Concerned about the present and future state of America’s national security and seapower, representatives from shipyards, ship component manufacturers, shipbuilding labor, and Congress met in early December to discuss the threats facing the United States from countries like China, and the direct threat to the Nation’s independence if we lose our shipbuilding capacity.  Exchanging questions and concerns with industry and labor, former Sen. John Breaux (D-LA) and Representatives Tom Allen (D-ME), Jo Ann Davis (R-VA), Randy Forbes (R-VA), Maurice Hinchey (D-NY), David Hobson (R-OH), Rob Simmons (R-CT), Gene Taylor (D-MS), Stephanie Tubbs Jones (D-OH), and Roger Wicker (R-MS) offered insight and recommendations as to how the shipbuilding industry and Congress should work together to bring the plight of a 289 ship Navy to the national forefront. 

John Casey, President of Electric Boat began the workshop by pointing out that China presently has 278,000 people employed in its shipyards, compared to the 59,000 employed in the U.S. shipyards.  This does not take into account the hundreds of thousands of people in both countries employed in ship component and system manufacturing.  As China becomes the world’s largest manufacturer, and holds a significant portion of the United States’ foreign debt, it is not difficult to see the dominant role China will play on the world stage in just a few short years.  Moreover, China is building its naval fleet at a ferocious rate.  In early December, the country launched its newest class of ballistic missile submarines.  According to studies by DOD and Congress, the Chinese submarine fleet will eclipse the size of the U.S. fleet by 2010.  The entire Chinese naval fleet will surpass the U.S. in size by 2015. 

The proposed naval shipbuilding budget for FY 2006 and beyond was one of the central issues of the event.  The proposed budget for FY 2006 requests only $5.2 billion for four new ships.  Addressing the proposed request, Sen. Breaux and Rep. Davis referenced responses to letters that they had received from the Secretary of the Navy Gordon England, in which the Secretary cited that the “Navy’s budget, including funding for shipbuilding, of necessity reflects optimum balance between critical warfighting requirements and fiscal constraints.”  However, four ships for next year, combined with proposals for future cuts to shipbuilding programs is no way to recapitalize the U.S. fleet.  Despite an urging for industry to reach out to their individual Senators and Representatives to urge active involvement to reverse to low rates of  procurement, Congressional attendees acknowledged that Congress as a whole has failed in its role in demanding direct answers about the Navy’s requirement and not forcing the Navy to submit more responsible budgets that reflect those needs. 

During the annual convention, industry unanimously passed two resolutions.  The first resolution was for all members of the industry to support a shipbuilding caucus, and the second, to work to rebuild America’s naval fleet through increased shipbuilding budgets.  The text of each resolution follows: 

Shipbuilding Caucus Resolution

Whereas American citizens are unaware of the danger facing the United States as the Nation loses her naval fleet and the domestic industry to build that fleet, the Congress of the United States shall establish a Shipbuilding Caucus;

Whereas representatives of shipyards, ship component and system manufacturers, and labor unions that comprise the shipbuilding industry of the United States will urge their federally elected Representatives to join the Shipbuilding Caucus; 

Whereas the Shipbuilding Caucus will work closely with the Manufacturing Caucus, the Black Caucus, and the Steel Caucus, which Caucuses share the concerns and interests in revitalizing the United States defense industrial base; 

Be it resolved that the Congress will form a Shipbuilding Caucus to educate lawmakers and work for enactment of budgets and policies to rebuild our naval fleet and shipbuilding industrial base.

Shipbuilding Budget Resolution

Whereas current naval shipbuilding budgets fail to provide adequate funding to ensure our national security and our shipbuilding industrial base; 

Be it resolved that the Congress, the shipyards, ship component and system manufacturers, and labor unions that comprise the shipbuilding industry of the United States will work together to increase the budgets for the construction of naval ships in the United States. 

The Buy American Act is Becoming a Nullity 

As the number of Memorandums of Understanding (MOU) and Trade Agreements continue to increase, manufacturers of domestic products for defense will be faced with increased competition from foreign sources. 

The Buy American Act is implemented through the use of Federal Acquisition Regulations (FAR).  However, over the years the FAR provisions, as they related to the enforcement of the Buy American Act, have been amended many times as a result of MOUs and Trade Agreements, and each amendment has created rules for exceptions, waivers, and “constructive” interpretations that allow the Department of Defense to buy products from “qualifying” foreign countries.  In recent years, the U.S. has entered into a steadily increasing number of MOUs and Trade Agreements with governments of foreign countries.  Each time the U.S. enters into an MOU or Trade Agreement, the FAR is amended to recognize those countries as “qualifying” for special status under FAR provisions.  In short, MOUs and Trade Agreements have become a “back alley” avenue for circumventing the Buy American Act. 

As of January 1, 2005, FAR exceptions and waivers to the Buy American Act, that are based on MOUs and Trade Agreements, have the potential to be applied to at least 33 countries, and are explicitly applied to the 21 countries that have an MOU with the U.S.  Currently the U.S. Trade Representative is negotiating or about to begin negotiating trade agreements with 12 additional  countries. 

Curtiss-Wright Flow Control Corporation Joins ASA

ASA welcomes Curtiss-Wright Flow Control Corporation (CWFC), as a new Partner company.  Located in Cheswick, Pennsylvania, CWFC specializes in the design and manufacture of highly engineered valves and related products for naval propulsion systems. 

Well Said!

“Without a decisive naval force we can do nothing definitive,
and with it, everything honorable and glorious.”
President George Washington
November 15, 1781