Page 21: of Maritime Reporter Magazine (November 15, 1983)

(continued from page 21) 3. CONTRACTS

Since June 1983, Navy has awarded over 200 major contracts with a total value exceeding $5.8 billion. Twelve major U.S. defense contractors have received more than 75 percent of the value of these awards: • Litton • McDonnell Douglas • Lockheed • United Technologies • Westinghouse Electric • Grumman • Hughes Aircraft • Raytheon • IBM • General Electric • General Dynamics • Morrison-Knudsen

Exhibit 3 lists major Navy con- tracts awarded between June 1 and September 30 as announced by the Department of Defense and published in the Wall Street Jour- nal. The list is not comprehensive, but has been arranged to include contracts for ships, systems, weap- ons, and services. Aircraft-related contracts are not included.

EDITOR'S NOTE: Since the mid-1960's, 100% of all new

U.S. Navy vessels (and some for Allies) have been con- structed in privately owned shipyards (the prime con- tractors). About 30- to 35% of

Navy repair and overhaul work is also accomplished in civilian yards. The Naval

Shipyards perform no new construction work.

Almost all, if not all, of the nation's leading naval archi- tectural firms (private corpo- rations) have been engaged, to a great degree, in naval work for decades. Most of the individuals (civilians) in both the shipbuilding and design areas who have been responsible for the selection and purchase of equipment and services for private ship- building projects are the same private individuals now re- sponsible where naval work is concerned.

There is a clear and impor- tant distinction, between what is known as GFE (govern- ment-furnished equipment) and CFE (contractor-fur- nished equipment). When the

Navy awards a contract to a private shipbuilder (the prime contractor) for construction of, say, a nuclear-powered aircraft carrier it will nor- mally specify in detail what systems, subsystems, and equipment items will be built or purchased by the prime contractor (the private yard) (CFE) and what will be built or purchased by the govern- ment and provided to the prime contractor (GFE).

The shipyard, as prime contractor, has the authority to choose one supplier over another where contractor furnished equipment (CFE) is concerned.

For example, the total con- tract price for the two car- riers, CVN 72 and 73, is ap- proximately $6.7 billion.

Government Furnished

Equipment (GFE) is not in- cluded in this figure.

Of the $6.7 billion, approx- imately $2.2 billion will be used for normal shipyard op- erating expenses such as sa- laries, etc. Therefore, the shipyard, a private company staffed and managed by ci- vilians, has the discretionary authority to spend in the neighborhood of about $4.5 billion with sub-contractors and suppliers—about two- thirds of the money.

The dominant role played by commercial shipyards and civilian personnel in the con- struction of Naval vessels and the selection and purchase of equipment cannot be over- emphasized.

WELCO

NAVY MOTORS

The 1984 Annual

Welco Industries, Inc. is uniquely capable of supplying the special motors for U.S. Navy requirements.

We've been supplying military-aerospace motors for over 30 years. With our predecessor companies, we've been producing electric motors for over 100 years.

Quality standards and motor sizes meet MIL specs.

Almost any type enclosure is available. Motors meet

Service "A", Service "C" or "Silent Run", per

MIL-M-17059 and MIL-M-17060.

Power ranges from VA HP through 200 HP with selected or standard sealed insulation systems. Special voltages and frequencies can be supplied.

Call or write Robert Klein, Applications Engineer, today.

INDUSTRIES, INC.

Subsidiary EAC Industries, Inc. 9027 Shell Rd. / Cincinnati, OH 45236 / 513-891-6600

Write 195 on Reader Service Card

INDUSTRIAL

INTERCOMS

FOR MARINE

COMMUNICATIONS

Designed originally to provide U.S. industry with intercoms which would deliver clear, dependable voice communication under the most severe operating conditions, ADCO units have earned wide acceptance in many segments of the marine industry.

Typical installations are aboard ship—bridge to deck or engine room, control center to diving bell—on offshore oil platforms—and throughout repair yards, dry docks, piers and storage areas.

What makes ADCO intercoms different is their ability to perform efficiently regardless of high ambient noise, weather or temperature extremes. Their heavy-duty cast aluminum cases are built to withstand rough usage—and are both weather and corrosion-proof.

Since each unit is a self-contained station which receives, amplifies and transmits the signal, intercom systems can include many stations over very long distances. Installation is simple and practical: each unit plugs into a nearby AC or DC power source, then is connected by ordinary low voltage 2-wire cable.

Phone or write for bulletin outlining complete range of models available.

ATKINSON

DYNAMICS

A Division of Guy F. Atkinson Company

Section 6 10 West Orange Avenue

South San Francisco, CA 94080

Phone (415) 583-9845

EQUIPMEMT

CATALOG

The World's Most Complete Annual

Marine & Naval Equipment Catalog

For Vessel Owners, Shipbuilders,

Marine Designers, Naval Architects and Purchasing Agents.

DETACH AND MAIL

Mail to: Marine Equipment Catalog c/o Maritime Reporter 107 East 31st Street

New York, New York 10016

Yes, I wish to take advantage of this Special Pre-

Publication Offer. Please reserve copies of Marine Equipment Catalog.

Name

Position _

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Business

Address _ • Enclosed is my remittance of $45.00 per copy for copies of the Marine Equipment Catalog. • Please bill me • Please bill my company

November 15, 1983 Write 597 on Reader Service Card Write 100 on Reader Service Card 23