American Shipbuilding Association

AMERICAN SHIPBUILDER

Senate Bill Funds Only Four Ships

The Senate passed its version of the FY 2008 Defense Appropriations Bill (HR 3222) on October 3^rd, providing $12 billion for only four of the ships included in the Administration’s budget request. The Senate bill is five ships and $3.5 billion less than the House version of the legislation.

The $12 billion included in the Senate Bill funds one aircraft carrier, one attack class submarine, one amphibious transport dock ship, and one combat logistics force ship. The Bill also provides funding to complete the first two DDG-1000 multi-mission destroyers and incrementally funds the next generation of amphibious assault ship. The Senate did include $470 million above the budget request to begin construction on a second attack class submarine. Contrary to the position taken by the House of Representatives to increase ship procurement and stabilize the U.S. shipbuilding industrial base by adding ships to the budget, the Senate declined to make similar increases. In the report accompanying the Senate Bill, Appropriators stated that “naval shipbuilding has been plagued with too frequent design changes, requirements creep, poor cost estimating, and poor government performance in program management and contractor oversight.” The Senate specifically took aim at the littoral combat ship, denying the Administration’s amended budget request by providing zero funds and rescinding prior year funding, thereby canceling funding for the fourth ship. According to the report, the Senate position will be to wait for the Navy to demonstrate “positive results in cost, schedule, and performance” before increasing the shipbuilding account.

 The American Shipbuilding Association is urging the Senate conferees to recede to the House mark in conference on the FY 2008 Defense Appropriations Bill, which begins the long process of recapitalizing the Navy’s Fleet.

 Representatives Urge Appropriators to Support Senate Funding for Title XI

Representatives Gene Taylor (D-MS) and Jo Ann Davis (R-VA) sponsored a letter signed by 29 of their colleagues urging the House Transportation Appropriations Subcommittee to adopt the Senate’s mark of $10 million for new Title XI loan guarantees during conference on the FY 2008 Transportation Appropriations Bill. The House version of the legislation provides funding for the administration of the program, but no monies for new loan guarantees to satisfy the growing need for affordable financing to replace aging commercial ships.

 Joining Representatives Taylor and Davis in urging support for inclusion of $10 million in the final bill include Representatives: Neil Abercrombie (D-HI), Tom Allen (D-ME), Jason Altmire (D-PA), Jo Bonner (R-AL), Madeleine Bordallo (D-GU), Robert Brady (D-PA), Corrine Brown (D-FL), Henry Brown (R-SC), G.K. Butterfield (D-NC), Joe Courtney (D-CT), Geoff Davis (R-KY), Susan Davis (D-CA), Tom Davis (R-VA), Rosa DeLauro (D-CT), Thelma Drake (R-VA), Randy Forbes (R-VA), Gene Green (D-TX), William Jefferson (D-LA), Bobby Jindal (R-LA), Stephanie Tubbs Jones (D-OH), Jim Langevin (D-RI), John Larson (D-CT), Frank LoBiondo (R-NJ), Mike Michaud (D-ME), Chip Pickering (R-MS), Bobby Scott (D-VA), Bart Stupak (D-MI), Bennie Thompson (D-MS), and Joe Wilson (R-SC).

CNO Nominee Appears Before Senate Armed Services Committee

Admiral Gary Roughead, nominated to become the next Chief of Naval Operations (CNO) appeared before the Senate Armed Services Committee for his confirmation hearing on September 27^th. During questioning by the Committee, Senator Jim Webb (D-VA) pressed the Admiral as to whether or not the 313-ship plan provided a sufficient number of ships to meet the Nation’s needs. The Admiral stated that he envisions 313-ships as a “floor” and reiterated his commitment to reaching that number. However, he declined to comment on increasing the Fleet beyond 313-ships. Below is an excerpt from the Senate hearing.

Senator Webb: Admiral, you stated that 313 was a floor. In this environment of terrorist threats, we tend to forget the necessary strategic issues facing our nation. What do you see as an optimal build number?

Admiral Roughead: I think the shipbuilding plan will give the ships we need for a balanced fleet; from high end warships to non-traditional ships…

Senator Webb: But you won’t give a definite number for optimal build?

Admiral Roughead: No.

Report Focuses on Aircraft Carrier Construction 

In a report released by the U.S. Government Accountability Office (GAO) on September 24^th, the agency assesses the Navy’s ability to meet its goals for developing the new aircraft carrier, CVN 78. The new class of aircraft carrier will include new technologies aimed at improving the carrier’s performance and reducing crew size. The GAO report specifically examined “(1) the extent to which technology development could affect the capability and construction of CVN 78, (2) the status of efforts to achieve design stability, and (3) the challenges to building CVN 78 within budget.” GAO concluded that “delays in technology development may lead to increases in CVN 78’s planned construction costs and potential reductions in the ship’s capability at delivery. CVN 78’s success depends on on-time delivery and insertion of fully mature and operational technologies in order to manage construction costs and enhance ship capabilities.”

The agency did note the Navy’s progress in maturing the ship’s design. According to Newport News, Northrop Grumman, builder of CVN 78, the shipyard has developed an integrated process for all developmental technologies in order to accommodate changes as equipment designs are completed, in addition to making adjustments without significant disruption to the design and construction of the ship. While most developmental technologies experience unexpected challenges that result in delays, the shipyard is working with suppliers and the Navy to ensure a smooth integration of new technologies. According to Newport News, the suppliers delivery dates meet the shipyard’s “in-yard” need dates, and the ship’s design is on schedule.  

National Security Cutter “Best First in Class Cutter Ever Built”

Admiral Thad Allen, Commandant of the Coast Guard, voiced his support for the National Security Cutter (NSC), during the September 19^th luncheon of the Propeller Club of Washington, DC. Admiral Allen called the ship highly capable and the “best first-in-class cutter ever built” for the U.S. Coast Guard. Despite concerns pertaining to the structural life of the ship and cost overruns within the Deepwater program, the Admiral stressed that the Coast Guard is working to address oversight concerns. Issues related to the construction of the NSC are not related to the safe operation of the vessel, and the Coast Guard continues to work closely with Ingalls, Northrop Grumman Ship Systems to deliver the first two National Security Cutters and embark on construction of the follow-on ships.

The NSC is the first new large cutter developed for the Coast Guard in nearly forty years, and it will be the most technically advanced ship in the Coast Guard fleet. Delivery of the first two NSC vessels is scheduled for early next year.

OSHA and ASA Renew Partnership

On August 22^nd, the Occupational Safety and Health Administration (OSHA) and the American Shipbuilding Association (ASA) renewed their Alliance Agreement. In place since 2003, the Alliance Agreement seeks to promote cooperative relationships between management, labor, and OSHA, and the implementation of comprehensive safety and health management systems in the workplace. Participation in the signing ceremony included Assistant Secretary of Labor for OSHA Edwin G. Foulke, Jr., and ASA President Cynthia L. Brown.

Edwin G. Foulke, Jr., Assistant Secretary of Labor for OSHA and Cynthia L. Brown, President of the American Shipbuilding Association.

Ms. Brown stated, “This Alliance Agreement with OSHA demonstrates the importance that the American Shipbuilding Association places on the safety and well-being of our workforce.  The shipbuilding industry is heavily dependent upon and highly values our skilled workforce.  That is why we prioritize this relationship with the federal regulatory agency responsible for helping us to ensure a safe and quality working environment for the men and women who build the safest and most technologically advanced ships in the world.”

Outstanding Sea Power Ambassador Recruitment Recognized

On September 12^th, the American Shipbuilding Association recognized five Partners for their active recruitment of Sea Power Ambassadors. The following companies are recognized for their 2007 recruitment efforts: AMSEC, LLC located in Virginia Beach, VA and San Diego, CA; Dresser Rand, with operations in Olean, Painted Post, and Wellsville, NY, and Houston, TX; Henschel of Newburyport, MA; SPD Electrical Systems of Philadelphia, PA; and Marotta Controls of Montville, NJ.

Pictured from left to right: Jay Wilcox, Group Vice President, L-3 Marine Systems; Bob Coates, Vice President of Business Development, SPD Electrical Systems; Fred Conroy, Vice President of the Government Business Unit, Dresser-Rand; Cynthia L. Brown, President, American Shipbuilding Association; and Don Roussinos, President and General Manager, Henschel.

The Sea Power Ambassador Program is a grassroots initiative to educate the American public and elected officials on the need to make rebuilding America’s Navy and Coast Guard fleets a national priority. Join today at www.seapowerambassador.org.

WELCOME NEW ASA MEMBER

TRI-TEC Manufacturing, LLC

TRI-TEC Manufacturing located in Kent, Washington is a leading manufacturer of electric and hydraulic actuators, valves, controllers, closures and hydraulic control panels for naval ships.  

Well Said!

“A powerful Navy we have always regarded as our proper and natural means of defense; and it has always been of defense that we have thought, never of aggression or of conquest…

We shall take leave to be strong upon the seas, in the future as in the past.

And there will be no thought of offense or provocation in that.

President Woodrow Wilson

Annual Message to Congress

December 8, 1914