American Shipbuilding Association

House Appropriations Committee Cuts Naval Shipbuilding

On June 27th the House passed H.R. 5010, the FY2003 Defense Appropriations Bill. The bill cuts the President’s already anemic shipbuilding procurement request by eliminating all funding in FY2003 for the LHD-1 class amphibious assault ship, reducing the Virginia Class submarine procurement by $22 million, and cutting $75 million in research and development funds for the DD (X) program. It is disappointing that the Appropriations Committee did not follow the recommendations of the Armed Services Committee, which added $810 million for a third DDG-51 destroyer, authorized $415 million in advance appropriations for a multi-year procurement contract for Virginia-class submarines, and provided $229 million to restore the schedule of the CVN (X) aircraft carrier to 2006.

The Appropriations Committee recommended that $250 million it cut from other shipbuilding programs be applied toward the CVN-77 Integrated Warfare System (IWS). As originally envisioned, the CVN-77 was to have an IWS featuring a new phased array radar being developed under the DD-21 program, and an open system technology architecture to provide an easily upgradeable base for future technology insertion and product improvement efforts. With the termination of the DD-21 program and its restructuring as DD (X), the development schedules for the new radar no longer met the construction schedule requirements for CVN-77. Additionally, in an effort to not add to prior year shipbuilding bills the Navy chose to delete a substantial amount of the open system technology work that was to be accomplished in the IWS. Upon reviewing these decisions, the committee directed the Navy to include IWS on CVN-77 to maximize cost effectiveness today as opposed to some future post launch availability. 

The Appropriations Committee, under the National Defense Sealift Fund (NDSF), endorsed developing a prototype ship for the Marine Corps Maritime Prepositioning Force (Future). The bill requires the program to examine commercial material handling capabilities that would provide a totally sea-based logistics support capability and use a Large Medium Speed Roll-on/Roll-off (LSMR) ship as a test platform. However, the Committee did not provide any additional funding for this program in FY03.  The committee also provided $10 million to accelerate the FastShip program’s pending application under the Title XI Ship Loan Guarantee Program administered by the Maritime Administration. Congress appropriated $25 million for FastShip loan guarantees last year in the NDSF.

Senate Demands Budget Plan for Naval Fleet's Future

The Senate amended and passed H.R. 4546 on June 27th by a vote of 97 to 2. An amendment to the bill sponsored by Senator Mary Landrieu (D-LA) reiterated that the policy of the United States is to maintain a strong naval fleet, and directs the Department of Defense (DOD) to submit an annual ship construction plan for combatant and support ships to meet the Navy’s fleet requirement. The amendment requires that estimated levels of funding necessary to carry out the shipbuilding plan, and the procurement strategies on which the estimated funding levels are based, be submitted with the budget. The amendment also requires the Secretary of Defense to certify that both the current budget and the future year’s defense plan submitted to Congress provide sufficient funding for naval ship construction and procurement to meet force structure requirements of the United States.

Speaking in support of the amendment, Senator Landrieu stated: “Even though we are in a time of war and even though we are about to approve the largest increase in defense spending in the last two decades, we are simply not procuring naval ships at a rate that will sustain a strong Navy in the future. If the size of our Navy fleet continues to decline, I fear we will not be able to carry out the missions before us. … Essentially this amendment states that it is a national policy of the United States to maintain a strong and robust Navy, with the appropriate number of ships to protect our interest both at home and abroad.”

CNO Outlines Navy's Strategic Vision for Future --
"Sea Power 21"

On June 12th, Chief of Naval Operations Admiral Vern Clark used the Naval War College’s 53rd Annual Current Strategy Forum to outline the new operational construct for the Navy, entitled “Sea Power 21.” At the heart of operational construct are three concepts: Sea Basing – the projection of U.S. sovereignty without reliance upon foreign government base rights; Sea Strike – the projection of offensive power; and Sea Shield – the projection of defensive power. All three concepts combined provide enhanced support for U.S. national security and protection of American interest abroad.

Admiral Clark used Operation Enduring Freedom as an example of the “Sea Power 21” operational constructs. Sea Basing demonstrates that “the independence of naval vessels operating on the high seas allows us to conduct combat operations anywhere, anytime, without having to first ask for permission,” stated Admiral Clark.  From Sea Basing the U.S. Navy was able to execute the majority of American air strikes in Afghanistan from aircraft carrier based fighter and strike aircraft, demonstrating the effectiveness and importance of the Navy’s Sea Strike capabilities. Building upon these capabilities Sea Shield extends homeland security “to the fullest extent using forward deployed forces, buying time and space for the detection and tracking of threats headed toward our country.”

Sea Basing, Sea Strike, and Sea Shield are Navy core concepts that are based upon a long history of success. Advances in technologies will lead to major increases in operational effectiveness in these core capabilities by doubling the combat output from naval ships and weapon systems such as DD (X), advanced gun systems, and modernization of sea-based assets.

China Expands Its Navy

China is in negotiations with Russia to buy eight more 636 Kilo class submarines in a $1.6 billion deal that will increase its ability to blockade Taiwan and challenge U.S. naval supremacy in the Pacific and the Taiwan Strait. The deal for additional submarines is part of a $4 billion weapons package that Russia has committed to provide China over the next four to five years. Included in the package are two more Sovremenny-class destroyers adding to a pair China has already received. China has previously purchased four Kilo-class subs from Russia, including two 636 Kilo-class vessels.

Defense experts at the National War College in Washington, have stated that the submarine deal will “very significantly enhance the Chinese navy's ability to influence events in the East China Sea by enforcing a blockade against Taiwan, and also by posing a serious problem for opposing naval forces attempting to operate in the area.”

The Kilo class submarine is designed for anti-submarine and anti-ship warfare in the protection of naval bases, coastal installations and sea-lanes, and also for general reconnaissance and patrol missions. The Kilo is considered to be one of the quietest diesel submarines in the world, and the 636 models have improved range, firepower, acoustic characteristics and reliability over earlier versions of the Kilo class. Four Russian producers are bidding to build the diesel-powered Project 636 Kilo-class submarines, which will include the Klub long-range, anti-ship missile systems with a range of 140 miles.  

Industry News

USCG Deepwater Contract Awarded to ICGS  

On June 25th, Michael P. Jackson, the U. S. Deputy Secretary of Transportation, joined by Representative David Vitter (R-LA), Coast Guard Commandant Thomas H. Collins, Dr. Ronald Sugar, COO of Northrop Grumman, and Dr. Vance Coffman, CEO of Lockheed Martin, announced the contract award for the Coast Guard’s Integrated Deepwater System to Integrated Coast Guard Systems (ICGS), a joint venture owned by Northrop Grumman and Lockheed Martin.  The contract is valued at $11 billion for a fleet of new ships and aircraft, plus improved command and control systems to meet the service’s homeland security and other mission needs. In addition, the contract includes $5.91 billion for operating, maintenance, and sustainment costs for a value of $17 billion.

On the award, Congressman Vitter remarked that “this contract and the commitment to improving the Coast Guard’s fleet will make the critical difference needed to meet the diverse challenges that confront America. The project involves the acquisition of 91 ships, many of which will likely be designed and produced at Avondale Shipyard.” Coast Guard Commandant Admiral Collins stated that ICGS offered a superior solution, a strong management approach, and a low-risk implementation strategy, all of which address the Coast Guard's modernization needs.

Under the ICGS joint venture, Ingalls and Avondale will lead in the design and construction of the first new class of cutters for the Coast Guard – the National Security Cutter (NSC). Lockheed Martin will lead the design and construction of aircraft and C4I systems. Deepwater will involve the acquisition of up to 91 ships, 35 airplanes, 34 helicopters, and communications, surveillance, command and control systems.  The ICGS award is the largest ever for the U. S. Coast Guard, and the first time the Coast Guard has bundled procurement of several types of assets into an integrated procurement program.

ASA Welcomes New Partner -- OAO Technology Solutions

OAO Technology Solutions, of Greenbelt, MD, is a global provider of information technology services that address the enterprise-wide challenges of Fortune 100 companies, mid-market organizations, health benefit organizations, and the public sector. OAO Technologies provides value by giving customers one source of accountability for a full-range of IT services that span the full spectrum required to plan, build, staff and manage a company’s IT systems. OAO Technologies employs over 2,400 professionals.

Newport News Shipbuilding Lays Keel for USS Texas

On July 12, 2002, Newport News Shipbuilding will have a keel laying ceremony for the USS Texas, the second ship of the Virginia class attack submarine, and the first of the class that will undergo final assembly and delivery at Newport News Shipbuilding in 2005. The keel that will be laid for USS Texas is part of the stern section of the ship.  Newport News Shipbuilding is teamed with Electric Boat to build the first four ships of the Virginia class.