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American Shipbuilder
Volume 14, Issue 3 July-August 2008
Defense Authorization and Appropriations Bills Postponed Until September
Congress will recess during the month of August, postponing work on the FY 2009 Defense Authorization and Appropriations Bills until September. Despite announcements by the leaders of the House and Senate that Congress will pass a Defense Appropriations Bill before the end of the calendar year, the fates of both the Defense Authorization and Appropriations Bills remain uncertain.
The President’s FY 2009 budget requests $12.4 billion for seven new
naval ships. The House of Representatives authorized $12.5 billion for
six ships in its FY 2009 Defense Authorization Bill (HR 5658) which
passed the House on May 22nd. The companion Senate legislation (S
3001), which was voted out of the Senate Armed Services Committee on
May 12th, provides $12.4 billion for seven ships. On July 30th, the
House Defense Appropriations Subcommittee marked its FY 2009 spending
bill, the details of which will be revealed when the full House
Appropriations Committee takes up the legislation tentatively the week
of September 8th. The Senate Appropriations Committee will hopefully
mark-up its bill in September.
A major issue facing the Congress upon its return is a response to
the Navy’s decision on July 22nd to end the DDG-1000 multi-mission
surface combatant program after two ships. The DDG-1000 is the newest
class of destroyers and is specifically designed for surface warfare,
anti-aircraft, and naval fire support. Apart from meeting current and
emerging threats in the littorals, the DDG-1000 was intended to serve
as the foundation for spiral development of technology and engineering
for future classes of surface combatants. The House Armed Services
Committee recommended only $400 million for either DDG-1000 or to
restart the DDG-51 production line. Early reports from the House
Defense Appropriations Subcommittee indicate that the House FY 2009
Defense Appropriations Bill provides only $450 million for the third
DDG-1000; a reduction of $2.1 billion from the Navy’s original request.
In a July 31st hearing, the House Armed Services Seapower
Subcommittee received testimony from the Navy regarding its plan to end
the DDG-1000 production line. The Navy testified that the decision to
end the program was based on a change in mission requirements. The Navy
went on record stating that the emerging mission requirements could be
met with DDG-51s, and advocated that the production line be restarted.
The last DDG-51s were procured in FY 2005. Though the Navy stressed
during the hearing that funding is needed in FY 2009 to begin procuring
additional destroyers, the Navy’s decision has not received approval
from the Secretary of Defense. The Navy and Department of Defense must
present to Congress the cost associated with ending the DDG-1000
program and restarting the DDG-51 production line; the number of
DDG-51s and the fiscal years in which they will be procured; and the
impact on the surface combatant industrial base. The country needs more
multi-mission surface combatants, and the two shipyards dedicated to
building surface combatants cannot afford another production gap and
maintain its skilled workforce. The Navy’s decision has left many
unanswered questions for both Congress and the industry regarding the
Navy’s multi-mission surface ships for the future. In July 24th letter
to the House Armed Services Seapower and Expeditionary Forces
Subcommittee, Ronald Ault, President of the Metal Trades
Department of the AFL-CIO, stressed the importance of the DDG-1000
program to the future of America’s surface combatant industrial base,
in addition to the future security of this country. Mr. Ault urged that
a decision to end the DDG-1000 production line not be made without
seriously analyzing all the factors involved in ending a program.
Congressional Shipbuilding Caucus Grows
The Congressional Shipbuilding Caucus, co-chaired by Representatives Gene Taylor (D-MS) and Rob Wittman (R-VA), has increased its membership to 115 Members of Congress. The newest Members of the Caucus include Representatives Tammy Baldwin (D-WI), Ken Calvert (R-CA), John Carter (R-TX), Travis Childers (D-MS), Jerry Costello (D-IL), Elijah Cummings (D-MD), Mary Fallin (R-OK), Chaka Fattah (D-PA), Phil Gingrey (R-GA), Doug Lamborn (R-CO), Bob Latta (R-OH), Jeff Miller (R-FL), Thomas Petri (R-WI), Joe Pitts (R-PA), Dave Reichert (R-WA), Linda Sanchez (D-CA), Steve Scalise (R-LA), and Debbie Wasserman Schulz (D-FL).
Established in January 2005, the Congressional Shipbuilding Caucus
seeks to inform lawmakers about the U.S. shipbuilding industry, and it
works for the enactment of budgets and policies to rebuild our sea
services and shipbuilding industrial base. The Caucus is one of the
largest and most proactive organizations in Congress.
In addition to the Members listed above, the current roster of the Shipbuilding Caucus includes Representatives: Neil Abercrombie (D-HI), Gary Ackerman (D-NY), Todd Akin (R-MO), Rodney Alexander (R-LA), Tom Allen (D-ME), Jason Altmire (D-PA), Robert Andrews (D-NJ), Roscoe Bartlett (R-MD), Marion Berry (D-AR), Brian Bilbray (R-CA), Tim Bishop (D-NY), Jo Bonner (R-AL), Madeleine Bordallo (D-GU), Dan Boren (D-OK), Allen Boyd (D-FL), Robert Brady (D-PA), Corrine Brown (D-FL), Henry Brown (R-SC), G.K. Butterfield (D-NC), Eric Cantor (R-VA), Shelley Moore Capito (R-WV), Dennis Cardoza (D-CA), John Carter (R-TX), Steve Chabot (R-OH), Joe Courtney (D-CT), 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), 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), 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), Stephanie Tubbs Jones (D-OH), Walter Jones (R-NC), Steve Kagen (D-WI), 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), Charles Melancon (D-LA), Mike Michaud (D-ME), Candice Miller (R-MI), Patrick Murphy (D-PA), John Murtha (D-PA), Richard Neal (D-MA), Chip Pickering (R-MS), Todd Platts (R-PA), Adam Putnam (R-FL), Nick Rahall (D-WV), Mike Ross (D-AR), Steven Rothman (D-NJ), Dutch Ruppersberger (D-MD), Tim Ryan (D-OH), Jim Saxton (R-NJ), Allyson Schwartz (D-PA), Bobby Scott (D-VA), Carol Shea-Porter (D-NH), Chris Smith (R-NJ), Cliff Stearns (R-FL), Bart Stupak (D-MI), John Sullivan (R-OK), Betty Sutton (D-OH), Bennie Thompson (D-MS), Joe Wilson (R-SC), and Frank Wolf (R-VA).
Senate Appropriates $10 Million for Title XI
On July 10th, the Senate Appropriations Committee passed its FY 2009
Transportation Appropriations Bill, which recommends $10 million for
new Title XI ship loan guarantees. The House version of the legislation
is pending before the House Appropriations Committee, but is not
expected to include funding for Title XI loan guarantees.
The Title XI program provides small and medium sized companies
access to affordable financing to replace aging vessels and meet this
country’s domestic transportation needs. The Jones Act fleet of
oceangoing ships averages more than 22 years of age. Many of the ships
are well over 30 years old. These ships are in need of replacement to
ensure that the necessary number of Jones Act vessels remains available
to carry domestic cargo. The construction made possible by Title XI
loan guarantees helps to strengthen the entire U.S. maritime
transportation network and the U.S. shipbuilding industrial base.
Representative John Murtha Receives Herbert H. Bateman Award
Honored for consistent leadership in support of a strong shipbuilding industrial base, Representative John P. Murtha (D-PA) was presented with the American Shipbuilding Association’s Herbert H. Bateman Award during a ceremony held on June 4th. The Bateman Award is the shipbuilding industry’s highest honor.
“Representative Murtha knows all to well how important it is for the
nation to have a robust fleet of Navy, Marine Corps, and Coast Guard
ships to promote peace and security here at home and far from our
shores. He understands the importance of a strong shipbuilding industry
to build and support our sea services,” said American Shipbuilding
Association (ASA) President Cynthia L. Brown. Highlighting
Representative Murtha’s dedication over the past three decades in
support of a larger military and commercial fleet, Ms. Brown noted how
the Congressman funded a defense strategic sealift construction program
in 1989 that resulted in the building of 16 ships and the conversion of
5 ships to meet dedicated military sealift requirements. In 1992,
Representative Murtha appropriated $40 million to bring the Title XI
Ship Loan Guarantee Program for commercial ship construction into
compliance with the Credit Reform Act. This money was critical to the
survival of the program and facilitated the construction of many
oceangoing commercial ships in the U.S. In addition to his support for
increasing shipbuilding budgets, Representative Murtha has consistently
acted to require that ships and components of ships for our Armed
Forces be built in this country.
The Herbert H. Bateman award was established by the American
Shipbuilding Association in 2000. This Award is given annually to an
individual in the Executive Branch, Legislative Branch, or industry who
has demonstrated years of consistent, outstanding, and inspirational
leadership in fighting for a stronger shipbuilding industry.
Representative Herbert H. Bateman (R-VA), the award’s namesake
who served the First District of Virginia from 1981-2000, demonstrated
these qualities throughout his tenure in the U.S. House of
Representatives. Previous recipients of the Herbert H. Bateman award
are: Representative Herbert H. Bateman (R-VA); Senator Olympia Snowe (R-ME); Representative Gene Taylor (D-MS); Senator Ted Stevens (R-AK); Representative Duncan Hunter (R-CA); Senator Trent Lott (R-MS); Representative Jo Ann Davis (R-VA), and Senator Susan Collins (R-ME).
Industry News
New Partners
Oto Melara North America, Inc.
Oto Melara North America, Inc., with locations in
Philadelphia, Pennsylvania, and Washington, DC, is a leading provider
of naval defense weaponry systems to the U.S. Navy and Coast Guard.
Rapid Prep, LLC
Rapid Prep, LLC is a full service provider of steel and
concrete surface preparation equipment, including: dry abrasive blast
machines, grit blast & recycling machines, and vacuums. The
equipment and blast media are used to clean the metal surfaces of ship
hulls and tanks. The company is headquartered in Johnston, Rhode Island.
Well Said!
“We need more ships.”
General James T. Conway
Commandant of the Marine Corps
At a Meeting with the Congressional Shipbuilding Caucus
July 16, 2008
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