American Shipbuilding Association

American Shipbuilder

Volume 15, Issue 6                                                                    September-October 2009

Senate Appropriates $13.6 Billion for Seven Ships

On October 6th, the Senate passed its version of the FY 2010 Defense Appropriations Bill (HR 3326, as amended), providing $13.6 billion for seven naval ships. The Senate added $1.7 billion and one additional DDG-51 Arleigh Burke class multi-mission destroyer to the Administration’s request, increasing the proposed FY 2010 procurement from one ship to two. In the report accompanying the Senate bill, appropriators stated that they believed that additional funding is needed to ensure economy of scale and “improve stability in the nation’s shipbuilding industrial base” as the Navy restarts the DDG-51 production line. The Senate also added $170 million in advance procurement funding for the LHA-7 amphibious assault ship, expressing support for funding LHA in FY 2010 in order to achieve a construction start in FY 2011.

The Senate cut the budget request for the T-AKE combat logistics force ship by $400 million, reducing the recommended procurement from two ships to one. Senate appropriators opted to halt funding for the second ship until after the Department of Defense completes the Quadrennial Defense Review of the Maritime Prepositioning Force of the Future. An additional cut of $300 million was made to the Administration’s request for the littoral combat ship, reducing the budget request from three ships to two. In the accompanying bill report, Senate appropriators expressed concern that the FY 2010 budget request of $460 million per littoral combat ship is insufficient to support the procurement of three ships given “the cost and schedule performance as well as the future acquisition strategy for the program.” The report stated that $540 million per ship in FY 2010 was a more realistic cost estimate.

The conference to resolve the differences between the House and Senate versions of the FY 2010 Defense Appropriations legislation is underway. The major differences to be resolved will be T-AKE, DDG-51, and LHA-7 funding. Another issue will be funding for the Title XI Ship Loan Guarantee program for commercial ships, which was funded at $50 million in the House bill. 

Secretary of the Navy Meets With Congressional Shipbuilding Caucus

On September 30th, the Congressional Shipbuilding Caucus, co-chaired by Representatives Gene Taylor (D-MS) and Rob Wittman (R-VA), hosted a meeting with Secretary of the Navy Ray Mabus to discuss the importance of maintaining strong Navy and Marine Corps fleets and a vibrant domestic shipbuilding industrial base. Other Members of Congress attending the meeting included Representatives Roscoe Bartlett (R-MD), Travis Childers (D-MS), Joseph Cao (R-LA), Joe Courtney (D-CT), Susan Davis (D-CA), John Duncan (R-TN), Gregg Harper (R-MS), Walter Jones (R-NC), Jim Langevin (D-RI), Eric Massa (D-NY), Glenn Nye (D-VA), Steve Scalise (R-LA), and Bobby Scott (D-VA). Other distinguished guests included Commandant of the Coast Guard Admiral Thad Allen and Sean Stackley, Assistant Secretary of the Navy for Research, Development, and Acquisition.

In his opening remarks, Secretary Mabus posed the question, “Why, in today’s shrinking global environment, does America need to maintain a robust Navy?” In response, the Secretary stressed that as a maritime nation, the United States must possess a global fleet. He said, “America’s Navy and Marine Corps are always forward deployed and are able to respond to any threat that comes at [the United States]. We do not have to ask permission to use the sea lanes, nor do we need a footprint on land to conduct wars, provide humanitarian assistance, or respond to disasters.” Citing the earthquake and tsunami that struck the Samoa islands on September 29th, Secretary Mabus said that U.S. naval ships were already underway to respond to the crisis. He stressed that America needs enough of these multi-mission platforms to respond to all missions, stating, “One ship, no matter how high the quality, cannot be in two places at once. At some point quantity becomes a quality all its own.”

Maintaining a robust shipbuilding industrial base is critical to maintaining a naval fleet capable of meeting global challenges. Secretary Mabus commented that the Navy has responsibilities to the U.S. shipbuilding industrial base to provide stability and predictability in its procurement plans. He noted that industry also has responsibilities to invest in facilities and train and maintain a skilled workforce that will result in cost savings that can be passed on to the American taxpayer.

In closing, the Secretary stressed again the importance of America maintaining a strong Navy. He said, “America needs a Navy in order to remain a global power. We need to be able to reassure our allies, deter conflicts, build relationships with other nations in order to avoid conflicts, and maintain the capabilities to provide humanitarian assistance and disaster relief. In other words, do all the things only a great Navy can do.”

U.S. Sea Services Focus on the Arctic

As new sea lanes open in the Arctic region and ship traffic increases, America’s sea services continue to develop strategies to ensure that this country’s national security and economic interests in the region are protected. During a September 22nd conference sponsored by the U.S. Naval War College on climate change, Rear Admiral David Titley, Oceanographer and Navigator of the Navy, outlined the Navy’s efforts to create an “Arctic road map.” According to Rear Admiral Titley, the road map will be used to make decisions about what ships, equipment, and infrastructure the Navy should invest in going forward. While no new naval missions have been specified, there exists the potential for an increased scope of naval operations in the Arctic. In addition to ensuring access to the Arctic region, the U.S. Navy is also concerned with the location of coastal bases as sea levels rise. Furthermore, climate changes may lead to changes in ocean currents and weather patterns, resulting in regional droughts and floods, which could result in increased humanitarian assistance and disaster relief missions. “The Navy sees the Arctic as much more of an opportunity than a challenge,” stated Titley. “Not to minimize the challenges that are there, but this is an opportunity to show the world that different nations can cooperate while simultaneously preserving their interests. We can get this right. We have the opportunity to get this right,” he went on to say. The Navy’s Arctic road map is expected to be publicly released at the end of the year.

The Coast Guard, the principal agency tasked with executing and supporting America’s interests in the Arctic, has been working closely with the Navy to determine the assets needed for an increased Arctic presence. For the Coast Guard, the issue is polar icebreakers. The Coast Guard has only three. Two of the ships have exceeded their 30-year intended service lives, and the other one is currently not operational. Commandant of the Coast Guard Admiral Thad Allen has testified before Congress that insufficient polar icebreaking capability places the ability of the United States to support its interest in the Arctic region at risk. In regard to naval assets, Rear Admiral Titley commented that submarines will continue to play a critical role in providing maritime security in the Arctic. With the current limited base infrastructure and harsh operating environment, a greater role for naval surface ships in protecting Arctic sea lanes is being evaluated.

The increased focus by America’s sea services to develop an Arctic strategy coincides with a report by the Danish Defense Intelligence Agency (DDIA) that warns of an increase in diplomatic and military conflicts as access to the Arctic increases, especially among the major Arctic powers. In addition to Denmark (via Greenland), these include the United States, Canada, Russia, and Norway. As published in the September 28th issue of Defense News, the DDIA report states that “the growing demand for oil will cause tensions as countries attempt to control the resources around the Arctic. The northern sea route will also increase in popularity, as the route will reduce shipping times and costs… In turn, this will augment the possibility of minor clashes and diplomatic crises between the coastal states in the Arctic region in the medium to long term.”

China Displays Military Strength

As part of celebrations marking the sixtieth anniversary of the People’s Republic of China, fifty-two types of new weapon systems developed and made in China, including the country's most advanced nuclear-capable missiles, were displayed. According to an October 1st article in People’s Daily, ninety percent of the weapons were exposed for the first time. The October 5th edition of Defense News reported that the weapons on display included anti-ship missiles, ship-to-air missiles, ground-to-ship missiles and amphibious vehicles.

Last April, the People’s Liberation Army Navy (PLAN) displayed two of China’s new indigenously constructed nuclear submarines, which was reported to be the first public that fleet.

You Can Make A Difference

Today’s Navy of 285 ships is the smallest naval fleet the United States has had in 92 years, and it is 28 ships below the force structure requirement of a 313 ship fleet. Keep informed of the decisions Congress is making with respect to America’s sea services. Sign up today to be a Sea Power Ambassador.

Well Said!

“We need to have the greatest Navy in the world in order to remain a global power.”

Secretary of the Navy Ray Mabus
Congressional Shipbuilding Caucus Breakfast Meeting
September 30, 2009