American Shipbuilding Association

President Signs Defense Appropriations Bill –
Eight News Ships for the Navy

Completing the fiscal year 2007 defense funding process, the President signed the Defense Appropriation Bill into law on September 29th.  The legislation provides over $9 billion for the construction of eight ships -- an increase of $136 million and one additional ship to the Administration’s budget request. 

While fully funding the new ship construction programs, Congress approved the Navy’s request to split-fund the first two DDG-1000 ships and the budget request of $2.6 billion.  In the conference reports accompanying both the Defense Authorization and Appropriations bills, Congress warned the Navy that approval for this acquisition approach is a one-time exception and that the Congress will not consider a similar funding exception for any shipbuilding program, with the exception of aircraft carriers and large deck amphibious ships, which are already funded over several years. 

Though appropriators did not provide the funding, Congress did authorize the budget authority for including $400M in advance procurement for a second Virginia-class submarine.  Regarding the future submarine force structure, the FY 2007 Defense Authorization Bill includes a “sense of the Congress” that “the Secretary of the Navy should take all reasonable efforts to accelerate the construction of Virginia-class submarines to maintain the attack submarine force structure at not less than 48 submarines (and if the number of attack submarines should fall below 48) to minimize the period the attack submarine force structure remains below 48 vessels.” 

Congress has acquiesced to the Navy’s position regarding the aircraft carrier force structure, and has repealed the law established in the FY 2006 National Defense Authorization Act mandating that the Nation maintain a minimum of twelve aircraft carriers.  Last year, Congress stated its concern that the Navy’s decision to reduce the size of the carrier fleet was a budget driven decision and not one based on future threat assessments.  Despite the House of Representatives reaffirming the position that a reduction in the carrier fleet is an unacceptable risk to national security in its version of the Defense Authorization Bill, Congress has adopted the Navy’s plan to cut the force to eleven carriers.  Additionally, Congress granted the Navy authority to retire the USS John F. Kennedy.  However, before the Kennedy is retired, Congress demands formal notice from both the Secretary of Homeland Security and the North Atlantic Treaty Organization that active maintenance of the Kennedy is not necessary. 

Increase for Deepwater Surface Ships

The Coast Guard has received an increase of $131 million to its fiscal year 2007 budget request, which brings the total for the Integrated Deepwater Program to $1.2B.  The U.S. Coast Guard operates one of the oldest coastal fleets in the world.  The Deepwater Program will recapitalize the cutter fleet, through the addition of three new classes of vessels -- the National Security Cutter, the Offshore Patrol Cutter, and the Fast Response Cutter – which will enable the Coast Guard to meet its expanding national security missions in defending the United States, as well as continue to meet its traditional missions.  However, in order to maintain the long term acquisition plan, and avoid cost growth and delivery delays, the Program must be funded at around $1 billion annually. 
 
The increase to the Coast Guard’s recapitalization program includes an additional $55 million for surface ships.  The House and Senate appropriated $42M for the Fast Response Cutter (FRC); increased the budget request for the Medium Endurance Cutter by $5M; and have appropriated $48M for replacement patrol boats.  To satisfy the immediate need for patrol boats, Congress has reprogrammed $79M from the balance of past FRC appropriations, and added $48M in FY 2007 for the immediate acquisition of replacement assets. 

The additional funds provided by Congress will thereby help to ensure that the Deepwater Program avoids delays in the acquisition of new assets, allowing the Coast Guard to perform traditional duties and growing national security missions. 

Membership and Influence of the Congressional Shipbuilding Caucus Continue to Grow

As the 109th Congress nears an end, the Congressional Shipbuilding Caucus proudly announces that since its creation two years ago, its memberships has grown to 107 Representatives.  Caucus Chairs, Representatives Jo Ann Davis (R-VA) and Gene Taylor (D-MS), have continued to encourage their colleagues to join and focus their attention on rebuilding the U.S. shipbuilding industry.  To this end, the Caucus has held meetings this year with Chief of Naval Operations Michael Mullen, Secretary of the Navy Donald Winter, and Deputy Secretary of Defense Gordon England.  The meetings focused on the 313-ship Navy and 30-year shipbuilding plans unveiled by the Department of Defense earlier this year, and how Congress and the Navy can work together to achieve this goal.   To this end, Representatives Davis and Taylor, and 67-Members of the Caucus sent a letter to Secretary of Defense Donald Rumsfeld requesting his support of the Navy leadership’s call for a $14.1 billion budget for new ship procurement in fiscal year 2008 in accordance with the 30-year shipbuilding plan. 

With the beginning of the 110th Congress in January of 2007, the Congressional Shipbuilding Caucus looks forward to welcoming more Members to the Caucus, and continuing to promote a stronger U.S. shipbuilding industry. 

Current Members of the Congressional Shipbuilding Caucus include:  Representatives Jo Ann Davis (R-VA), Gene Taylor (D-MS), Neil Abercrombie (D-HI), Gary Ackerman (D-NY), Todd Akin (R-MO), Rodney Alexander (R-LA), Tom Allen (D-ME), Robert Andrews (D-NJ), Richard Baker (R-LA), Roscoe Bartlett (R-MD), Charles Bass (R-NH), Marion Berry (D-AR), Brian Bilbray (R-CA), Michael Bilirakis (R-FL), Tim Bishop (D-NY), Henry Bonilla (R-TX), Jo Bonner (R-AL), Madeleine Bordallo (D-GU), Dan Boren (D-OK), Allen Boyd (D-FL), Jeb Bradley (R-NH), Robert Brady (D-PA), Corrine Brown (D-FL), Henry Brown (R-SC), Sherrod Brown (D-OH), G.K. Butterfield (D-NC), Eric Cantor (R-VA), Shelley Moore Capito (R-WV), Dennis Cardoza (D-CA), Steve Chabot (R-OH), Ander Crenshaw (R-FL), Geoff Davis (R-KY), Susan Davis (D-CA), Tom Davis (R-VA), Rosa DeLauro (D-CT), Norm Dicks (D-WA), Mike Doyle (D-PA), Thelma Drake (R-VA), John Duncan (R-TN), Phil English (R-PA), Anna Eshoo (D-CA), Bob Filner (D-CA), Mike Fitzpatrick (R-PA), Randy Forbes (R-VA), Trent Franks (R-AZ), Rodney Frelinghuysen (R-NJ), Virgil Goode (R-VA), Bob Goodlatte (R-VA), Bart Gordon (D-TN), Gene Green (D-TX), Mark Green (R-WI), Melissa Hart (R-PA), Robin Hayes (R-NC), Brian Higgins (D-NY), Maurice Hinchey (D-NY), David Hobson (R-OH), Peter Hoekstra (R-MI), Tim Holden (D-PA), Steve Israel (D-NY), Darrell Issa (R-CA), William Jefferson (D-LA), Bobby Jindal (R-LA), Nancy Johnson (R-CT), Walter Jones (R-NC), Marcy Kaptur (D-OH), Patrick Kennedy (D-RI), John Kline (R-MN), Randy Kuhl (R-NY), Jim Langevin (D-RI), Rick Larsen (D-WA), John Larson (D-CT), Steven LaTourette (R-OH), Frank LoBiondo (R-NJ), Stephen Lynch (D-MA), Carolyn McCarthy (D-NY), Thaddeus McCotter (R-MI), James McGovern (D-MA), Mike McIntyre (D-NC), Charlie Melancon (D-LA), Mike Michaud (D-ME), Juanita Millender-McDonald (D-CA), Candice Miller (R-MI), John P. Murtha (D-PA), Richard Neal (D-MA), Chip Pickering (R-MS), Todd Platts (R-PA), Nick Rahall (D-WV), Mike Ross (D-AR), Steve Rothman (D-NJ), Dutch Ruppersberger (D-MD), Tim Ryan (D-OH), Jim Saxton (R-NJ), Joe Schwarz (R-MI), Allyson Schwartz (D-PA), Bobby Scott (D-VA), Rob Simmons (R-CT), Chris Smith (R-NJ), Cliff Stearns (R-FL), Ted Strickland (D-OH), Bart Stupak (D-MI), John Sullivan (R-OK), Bennie Thompson (D-MS), Stephanie Tubbs Jones (D-OH), Roger Wicker (R-MS), Joe Wilson (R-SC), and Frank Wolf (R-VA).

ASA Partners Form Advisory Council

The Partner companies of the American Shipbuilding Association (ASA) have formed the Partners Advisory Council.  The Council, comprised of five members of the American Shipbuilding Association’s Partner members, will provide advice and counsel to ASA’s President and Board of Directors on issues of importance to the Partner members in an effort to strengthen the shipbuilding industrial base and the Association.  Additionally, the Council will recommend actions to improve educational outreach to the public and Members of Congress on the shipbuilding industry. 

ASA congratulates the following individuals on their election to the Council:  John DeMaso, President of Sperry Marine Northrop Grumman, located in Charlottesville, Virginia; Joan Grande, President & CEO of Hose-McCann Telephone Company, located in Deerfield Beach, Florida; Steve Kantor, President of L-3 Communications/Power & Control Systems Group, located in New York, New York; Andrew Marsh, President of Rolls Royce Naval Marine, located in Walpole, Massachusetts and Pascagoula, Mississippi; and Roger Sexauer, President of DRS Power Systems, located in Gaithersburg, Maryland.

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Well Said!

“They [shipbuilders] do this work day in and day out in blistering heat, freezing cold, and in the rain… It is dangerous work.  It is difficult and demanding work.  And it is noble work.”

Mike Petters
President, Newport News Northrop Grumman
Christening of the USS George H.W. Bush
October 7, 2006