Page 25: of Maritime Reporter Magazine (December 1989)

A STATUS REPORT ON NAVY SHIPBUILDING

AND REPAIR

SENATE APPROVES $1 BILLION FOR SEALIFT SHIP PROCUREMENT

By James R. McCaul

IMA Associates, Inc., Washington, D.C.

The U.S. Navy continues to be the major source of business for shipyards and marine equipment manufacturers in the United States.

This article is an excerpt from re- cent IMA quarterly business reports on Navy shipbuilding and repair.

Navy Shipbuilding

The Navy plans to build 90 ships and perform three major modifica- tions/conversions over the next five years (FY 1990-94). The breakdown of this program and a comparison to

FY 1989 is provided in Exhibit 2.

As of early November, Congress had not yet passed either an autho- rization or appropriation bill for de- fense spending. Exhibit 1 shows the status of funding for the proposed

FY 1990 shipbuilding program. This information is as of 1 November.

The Senate recently approved $1 billion for procurement of four fast sealift cargo ships and two sealift tankers. This past summer, a simi- lar measure was included in the approved House Defense Appro- priations Bill.

Projected 5-Year Navy Spending Program 1990-1994 (as of November 1989)

Projected Annual Spending ($ in billions)

New Ship Construction

Ship Repair/Modernization

Electronics & Systems

Weapons

RDT& E from 10 to 12 from 4 to 6 from 5 to 6 from 5 to 7 from 9 to 11

Annual Total from $33 billion to $42 billion

PROJECTED FIVE-YEAR TOTAL" from $165 billion to $210 billion "Total does not include spending for aircraft

December, 1989 27