American Shipbuilding Association

Congressman Gene Taylor Earns
Herbert H. Bateman Award

On April 23rd Congressman Gene Taylor (D-MS) was presented with the American Shipbuilding Association’s highest recognition, The Herbert H. Bateman Award, for his years of consistent, outstanding, and inspirational leadership in promoting a strong American shipbuilding industry.  The American Shipbuilding Association’s Board of Directors presented the award at the association’s annual Salute To Congress reception. Also present at the presentation was Mrs. Laura Bateman, wife of the late Congressman Bateman.

Congressman Taylor has consistently worked to strengthen America’s economic prosperity and security by working to increase naval and commercial ship construction. This year, Congressman Taylor is leading the effort in the House to reverse a decade of neglect by calling for a $3.5 billion increase in naval ship procurement. Congressman Taylor is also an outspoken champion for the Jones Act and the Passenger Vessel Services Act, working to close loopholes in these laws to expand the cargo and cruise ship markets for American shipbuilders.

Appropriators Urged To Slow Navy’s Demise

Twenty-two Senators and fifty-four Representatives have expressed the need to rebuild the U.S. Navy by calling for a $3.5 billion increase for naval ship procurement in fiscal year 2003. In letters sent to the Chairman and Ranking member of the House and Senate Defense Appropriations Subcommittees, these Members of Congress warned that “the United States will not have a Navy of the size and capability to respond to near-term and future threats if we do not act now to stop the fleet’s demise. A building rate of five ships per year equates to a force of 150-ships – not 300. No matter the age or capability of each ship in the fleet, no ship can be in two places at the same time. Numbers do matter.  The urgency of this national requirement should be evident in the fact that it takes four to eight years to build a warship. Four years from today, the fleet will number just over 280, and will drop to 258-ships based on previously enacted budgets. This course must be reversed now,” they stated. The Members of Congress recommended that the $3.5 billion be distributed as follows:

• $810 million for one additional DDG-51 destroyer;
• $125 million in advance procurement for a third DDG-51 destroyer in 2004;
• $415 million to advance procure materials for Virginia class submarines in economic order quantities to achieve cost savings and facilitate a procurement rate of two submarines per year;
• $1.1 billion to procure a second LPD-17 in 2003 and return the procurement profile to two per year in subsequent budgets;
• $850 million to accelerate procurement of the LHD-1 class amphibious assault ships; and
• $230 million to advance procure materials for the CVN (X), and restore her construction award to the original 2006 schedule.

Senator Mary Landrieu (D-LA) sponsored the Senate letter and was joined by twenty-one of her colleagues: George Allen (R-VA), John Breaux (D-LA), Jean Carnahan (D-MO), Thad Cochran (R-MS), Susan Collins (R-ME), Jon Corzine (D-NJ), Mike DeWine (R-OH), Chris Dodd (D-CT), Jesse Helms (R-NC), John Kerry (D-MA), Joseph Lieberman (D-CT), Trent Lott (R-MS), Barbara Mikulski (D-MD), Jack Reed (D-RI), Harry Reid (D-NV), John D. Rockefeller (D-WV), Paul Sarbanes (D-MD), Richard Shelby (R-AL), Bob Smith (R-NH), Olympia Snowe (R-ME), and Robert Torricelli (D-NJ).

Congressmen Gene Taylor (R-MS) and Randy “Duke” Cunningham (R-CA) sponsored the House letter and were joined by fifty-two of their colleagues: Neil Abercrombie (D-HI), Tom Allen (D-ME), Robert Andrews (D-NJ), John Baldacci (D-ME), Roscoe Bartlett (R-MD), Robert Brady (D-PA), Eric Cantor (R-VA), Sonny Callahan (R-AL), Eva Clayton (D-NC), John Cooksey (R-LA), Ander Crenshaw (R-FL), Jo Ann Davis (R-VA), Susan Davis (D-CA), Tom Davis (R-VA), Robert Ehrlich (R-MD), Phil English (R-PA), Lane Evans (D-IL), Mike Ferguson (R-NJ), Bob Filner (D-CA), Randy Forbes (R-VA), Robin Hayes (R-NC), Maurice Hinchey (D-NY), Joe Hoeffel (D-PA), William Jefferson (D-LA), Walter Jones (R-NC), Nancy Johnson (R-CT), Marcy Kaptur (D-OH), Jim Langevin (D-RI), Rick Larsen (D-WA), John B. Larson (D-CT), Stephen Lynch (D-MA), James Maloney (D-CT), James McGovern (D-MA), Mike McIntyre (D-NC), Juanita Millender-McDonald (D-CA), Charles “Chip” Pickering (R-MS), Nick Rahall (D-WV), Bob Riley (R-AL), Jim Saxton (R-NJ), Ed Schrock (R-VA), Bobby Scott (D-VA), Ronnie Shows (D-MS), Rob Simmons (R-CT), Adam Smith (D-WA), Bart Stupak (D-MI), John Sweeney (R-NY), W.J. “Billy” Tauzin (R-LA), Bennie Thompson (D-MS), Jim Turner (D-TX), David Vitter (R-LA), Joe Wilson (R-SC), and Frank Wolf (R-VA).

Armed Services Committees Mark

On May 10, 2002, the U.S. House of Representatives passed H.R. 4546, The Bob Stump National Defense Authorization Act for fiscal year 2003, by a vote of 359 to 58. As the House was completing work on its defense authorization bill, the Senate Armed Services Committee was marking up its bill. Both bills increase the naval shipbuilding account by $1 billion over the President’s anemic budget request.

The House defense authorization was split into two separate bills, H.R. 4546 and H.R. 4547. H.R. 4546 contains the base defense budget for fiscal year 2003 and the Navy’s shipbuilding and conversion account. H.R. 4547, The Cost of War Against Terrorism Authorization Act, will serve as the vehicle to authorize a $10 billion contingency fund once the Administration submits a detailed budget proposal for the fund.

The House and the Senate Armed Services Committee (SASC) authorized two (2) DDG-51 Arleigh Burke-class destroyers, one (1) SSN-774 Virginia-class attack submarine, one (1) T-AKE auxiliary cargo and ammunition ship, one (1) LPD-17 amphibious transport dock ship, and continued funding for the LHD-8 amphibious assault ship as requested by DOD. Also authorized was $960 million budget request for research and development of the Navy’s next-generation surface combatant, the DD (X) program. Both authorized an increase of $229 million to return the CVN (X) aircraft carrier program to its original schedule of a FY2006 construction contract award. 

The House added $810 million for a third DDG-51 destroyer and granted the Secretary of the Navy authority to enter into a Multi-year Procurement (MYP) contract in FY2003 for the Virginia-class submarine. However, this additional destroyer and MYP contract authority was tied to resolution of the A-12 settlement. If the Attorney General rejects the settlement then the MYP contract authority is revoked and the $810 million will be allocated as follows: $415 million for Virginia-class submarine advance procurement, $210 million for cruiser conversion advance procurement, and $185 million for nuclear attack submarine engineering refueling overhaul.

The SASC transferred $690 million in funding requested for missile defense programs to authorize $415 million for advance procurement of Virginia-class attack submarine to support increasing the production rate to two boats per year in fiscal year 2005; $150 million for advance procurement of an additional LPD-17 dock landing ship; and $125 million for advance procurement of an additional DDG-51 destroyer.

House Authorizes $50 Million For Title XI

Under the leadership of Chairman Duncan Hunter (R-CA), the U.S. House of Representatives authorized $50 million for the Title XI Ship Loan Guarantee Program in the Bob Stump National Defense Authorization Act, H.R. 4546. Recognizing the importance of the Title XI program in meeting our national objectives of energy self-sufficiency, increased domestic commerce, and a strengthened defense shipbuilding industrial base, Chairman Hunter and the Members of the Merchant Marine Panel rejected the Administration’s proposal to provide no funding for the program. Title XI is a loan guarantee that provides affordable ship financing to small and medium sizes ship operating companies that would not be able to obtain credit at reasonable rates or terms because of the high capital cost of ships and the few banks familiar with ship financing.

On May 13th Ingalls received the highest marks possible in the specified performance areas of schedule, technical, management, and cost for the final performance period - January through April 2002. The USS Cole was delivered ahead of schedule and based on the perfect scores the Navy awarded a $3.9 million performance award fee to Ingalls.

NASSCO Launches the USNS Soderman

On April 26, 2002, National Steel and Shipbuilding Company (NASSCO) launched the eighth and final Strategic Sealift ship in the LSMR program to be built by NASSCO. Dick Vortmann, President of NASSCO, stated: “This has been a highly successful shipbuilding program for our armed forces and the company, making a major contribution to our nation’s readiness by adding much-needed prepositioning and strategic sealift capability. All of the new construction ships have been delivered ahead of their contract delivery dates and below target price.”

Polar Discovery Christened At Avondale

On April 13th Avondale and Polar Tankers Inc., christened the third double-hulled oil tanker Polar Discovery, with a contract cost valued at $168 million. Phillips Petroleum Company, the parent of Polar Tankers, has ordered five Endeavor Class tankers from Avondale. These ships are the first crude-oil carriers being built for the Alaska trade in compliance with the federal Oil Pollution Act of 1990.  The first tanker, the Polar Endeavor, arrived in Valdez, Alaska in July 2001. The new Polar Discovery will join the polar tanker fleet in 2003, and this summer the Polar Resolution will enter the Alaska trade.  The Polar Adventure will be delivered in late 2004, followed by the fifth ship, Polar Enterprise, in 2005.

Ingalls Shipbuilding Awarded $1.37 Billion
Construction Contract for LHD-8

On April 19th Ingalls was awarded a $1.37 billion Navy construction contract to build the eighth ship of the LHD-1 class of amphibious assault ships. Construction of LHD-8 is expected to begin in May 2003. This contract includes $360 million previously awarded for advance work on the ship, including design, equipment procurement and fabrication selected ship assemblies. The most significant enhancement for LHD-8 will be the introduction of gas turbine propulsion, replacing classical steam propulsion in previous ships of the class.

Well Said!