American Shipbuilding Association

American Shipbuilder

Volume 14, Issue 4 September-October 2008

House and Senate Race to Finish Defense Bill

On September 30th, the President signed into law HR 2638, the Consolidated Security, Disaster Assistance and Continuing Appropriations Act of 2009, which includes the FY 2009 Defense Appropriations Bill. The legislation provides $12.4 billion for 8 new naval ships.

Specifically, the bill appropriates money for the procurement of one Virginia class attack submarine, one DDG-1000 multi-mission destroyer, one LPD-17 amphibious transport dock ship, two littoral combat ships, one joint high speed vessel, and two combat logistics force ships. The DDG-1000 and LPD-17 were split funded, with the Navy directed to budget for the completion of the ships in its FY 2010 request. Congress also added $79 million in advance procurement funding in order to accelerate the procurement of two Virginia class submarines a year.
Additionally, Congress provided $200 million in advance procurement to restart the DDG-51 Arleigh Burke class destroyer production line. On July 22nd the Navy had recommended ending the DDG-1000 multi-mission surface combatant program after only two ships and resuming procurement of DDG-51 destroyers. On August 18th, the Navy reversed its decision and announced that it would procure a third DDG-1000 as recommended in the FY 2009 budget request, in addition to supporting funding to restart the DDG-51 production line. In the report accompanying the spending bill, Congress directed the Joint Requirements Oversight Council of the Department of Defense to review the Navy’s decision to terminate the DDG-1000 program and restart the DDG-51 line, and how this decision will impact the future surface combatant warfighting requirements of the country. Obligation of the funding appropriated by Congress for the DDG-1000 and DDG-51 classes could be impacted by the Council’s final determination.

Coast Guard Receives Money to Reactivate Polar Icebreaker

The FY 2009 Homeland Security Appropriations Bill was also part of HR 2638, the Consolidated Security, Disaster Assistance and Continuing Appropriations Act. The bill provides $1 billion for the Coast Guard’s Deepwater program, $571 million of which is appropriated for surface ship procurement. Congress fully funded the Coast Guard’s budget request of $541 million for ship acquisition, and added $30 million to the budget in support of polar icebreaker sustainment.

The Coast Guard has three polar icebreakers. Two of the ships, the USCGC Polar Star and USCGC Polar Sea have exceeded their 30-year intended service lives. Additionally, the Polar Star is not operational and has been on caretaker status since 2006. On July 16th, 2008, Commandant of the Coast Guard Admiral Thad Allen testified before the House Transportation and Infrastructure Committee that insufficient polar icebreaking capability places the ability of the United States to support its interest in the polar region at risk. With the melting of ice in the Arctic Ocean, new shipping lanes are opening, creating a greater need for icebreakers to monitor sea traffic and protect ships bound for the United States. Additionally, Russia continues its efforts to prove a territorial claim in the Arctic region. The third U.S. Coast Guard polar icebreaker, the USCGC Healy, is working in concert with the Canadians to counter Russia’s aggressive claim. During the July 16th hearing, Admiral Allen stated that “our nation is at a crossroads with Coast Guard domestic and international icebreaking capabilities. We [the country] have important decisions to make, and I believe we must address our icebreaking needs now.”

The Coast Guard estimates that it would take 8-10 years before replacement icebreakers would enter the fleet. Recognizing the need to maintain America’s presence in the Arctic, Congress appropriated $30 million to reactivate the Polar Star in order to provide the ship with an additional 7-10 years of service life. The Coast Guard is analyzing ways to extend the service lives of the icebreakers in the fleet, while at the same time budgeting for the construction of replacement ships.

Congress Appropriates $48 Million for Title XI

Earlier this year, Rep. John P. Murtha (D-PA), Chairman of the House Defense Appropriations Subcommittee stated his support to include funding for the Title XI Ship Loan Guarantee Program in the FY 2009 Defense Appropriations Bill. Fulfilling his pledge to strengthen the U.S. shipbuilding industry and facilitate the construction of ships for the U.S. Jones Act Fleet, the FY 2009 Consolidated Security, Disaster Assistance and Continuing Appropriations Act (HR 2638) provides $48 million for new Title XI loan Guarantees in the National Defense Sealift Fund.

The Title XI program, which is administered by the Maritime Administration of the Department of Transportation, provides small and medium sized companies access to affordable financing to replace aging vessels and meet this country’s domestic transportation needs. The ships built with Title XI financing are also available to serve as defense auxiliary ships in times of war or national emergency. 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.

Coast Guard Commandant Meets with Congressional Shipbuilding Caucus

Commandant of the Coast Guard Admiral Thad Allen met with Members of the Congressional Shipbuilding Caucus on September 18th to discuss the current and expanding role of the Coast Guard, and how the sea service is meeting the national security needs of the United States. The meeting was co-hosted by Shipbuilding Caucus co-chairs Representatives Gene Taylor (D-MS) and Rob Wittman (R-VA), and attended by Representatives Roscoe Bartlett (R-MD), Madeleine Bordallo (D-GU), Joe Courtney (D-CT), John Duncan (R-TN), and Joe Wilson (R-SC).

Admiral Allen briefly discussed the history of the Coast Guard, which was established in 1790, when the first Congress created the service to enforce tariff and trade laws and to prevent smuggling. The traditional mission of the Coast Guard has been to patrol the U.S. coast to stop illegal immigration, drug trafficking, assist in environmental clean-up, and search and rescue operations. As part of its ever emerging role in national security, the Coast Guard has been tasked with the security of U.S. ports, escort duty for incoming ships, and searching commercial ships for biological and chemical weapons. The service has also been working in cooperation with the Navy to develop warfighting requirements and interoperability, and is engaged in several missions overseas. Citing examples, Admiral Allen stated that since 2002, six Coast Guard vessels have been operating in the Persian Gulf protecting oil platforms, and that the U.S. Coast Guard has been engaged in humanitarian operations following the invasion of the country of Georgia by Russia. The Coast Guard is also working with Canada in exploring North America’s Arctic territorial claim in response to Russia’s continued effort to claim that the area is part of its continental shelf in order to obtain the mineral resources there.

Few Know Importance of America’s Navy and Coast Guard

Despite the multitude of missions the U.S. Navy and Coast Guard fulfill, most Americans are unfamiliar with the day-to-day role the sea services play in their lives. The Navy has reported that in a 2004 Gallup Poll, most Americans ranked the Navy at 9% and Coast Guard at 4% in their overall importance to the national security and safety of this country. It is important to remember the missions America’s sea services perform daily in support of the safety of U.S. borders and America’s security around the world. Following are a few recent examples.

• Ninety percent of global commerce is transported across the seas. According to a September 2nd Navy Times article nearly 200 acts of piracy have been reported around the world so far this year. Many of the incidents are occurring in high-traffic areas critical to the global economy.  The most recent act took place off the coast of Somalia after a group of pirates hijacked a vessel carrying 33 Soviet-designed tanks and other arms. The U.S. Navy has been actively engaged in security operations in the area, particularly in patrolling the entrance to the Gulf of Aden after an increase in pirate activity. The Gulf of Aden leads to the Suez Cannel, which is one of the world’s busiest shipping channels.
• • The Navy and Coast Guard are instrumental in countering increasingly sophisticated narcotics traffickers. On September 13th, the Navy and Coast Guard intercepted a self-propelled semi-submersible vessel in open waters off the coast of Guatemala that was carrying 37 bales of cocaine valued at $187 million.
• • The Navy and Coast Guard were mobilized in advance of the successive hurricanes striking the Gulf of Mexico so far this year. According to the Coast Guard, more than 200 people were rescued before, during, and after Hurricane Ike struck the Texas coast in early September. In the days following the storm, the Coast Guard headed recovery operations, inspected damage to the Texas ports and oil and gas platforms, removed debris and repaired navigation aids in the Houston Shipping Channel, and participated in environmental remediation. The Navy has been delivering relief supplies to Haiti, which was heavily damaged by Hurricanes Fay, Gustav, Hanna, and Ike.

Support America’s Navy, Marine Corps, and Coast Guard

As this country prepares to elect a new President and Congress you can let your voice be heard on the need to rebuild the nation’s Navy, Coast Guard, and merchant fleets. As a Sea Power Ambassador, you will receive news articles about the decisions that are being made that will impact the security of this country. You will also have the opportunity to “take action” and let your elected officials know that rebuilding America’s sea services must begin today. Visit the Sea Power Ambassador website and click Join Now!

www.seapowerambassador.org

Well Said!

“For in this modern world, the instruments of warfare are not solely for waging war. Far more importantly, they are the means for controlling peace.”

Admiral Arleigh Burke
August 1, 1961