New IMA Report Available Analyzing U.S. Navy Overhaul Market
The U.S. Navy has budgeted over $6 billion for ship repair and alteration in 1985. Between 30—40 percent of this budget will flow through commercial shipyards. This is an obviously interesting market.
It offers many business opportunities to shipyards and equipment manufacturers. It is also a complex, dynamic market.
Current Players—Navy owns and operates eight naval shipyards, three ship repair facilities and a variety of specialized repair depots. These facilities employ about 100,000 workers and perform about 65 percent of the ship maintenance. The remaining 35 percent is shared by about 30 commercial shipyards. Numerous firms are involved in refurbishing equipment and supplying new components.
Projected Market—The projected 1985 budget for Navy ship maintenance is an increase of 45 percent over 1982. Overhauls decrease from 63 to 56, but projected selected restricted availabilities and phased maintenance availabilities greatly increase.
MSC's maintenance and alteration budget has grown from $240 million in 1983, to a proposed $319 million in 1985. Over 35 ship ovhauls are planned over the next 12-18 months.
Maintenance Strategy—The traditional practice of taking a ship out of service for a 5-20 month overhaul every 3-5 years has changed. In its place are three new maintenance approaches: • engineered/extended operating cycle—which provides for extending overhaul intervals to 5-8 years, with short depot availabilities scheduled between overhauls • progressive maintenance— which essentially aims to eliminate the need for onboard maintenance and regular overhauls by scheduling frequent servicing at specialized maintenance facilities • phased maintenance—a newly introduced concept which uses maintenance approaches found in commercial shipping firms Market size, its composition, and geographical distribution of opportunities have greatly altered as a result of these new maintenance approaches.
Managing An Overhaul—It is a very complex activity with many players. The planning process begins 18—24 months before the overhaul is to start. Numerous organizations within Navy get involved.
The Office of Naval Operations coordinates the planning.
Fleet Type Commanders determine repair requirements for specific ships. Ship modernization is managed by the Naval Sea Systems Command. Eight naval shipyards, sixteen SUPSHIP offices, and five specialized repair planning offices provide the engineering support.
MSC's ship maintenance planning is much less complex. Its approach is similar to commercial practice. Planning starts 2-4 months before the overhaul is scheduled.
Contracting Policies—Decisions concerning homeport policy, private sector allocation, small business set-asides impact heavily on the size of potential market.
They determine the amount of work available to prospective bidders, and who will be eligible to bid.
Qualification—To repair Navy ships a firm must execute a master ship repair agreement. More than 140 firms have such an agreement with NAVSEA, and over 200 have agreements with MSC. Eight firms have master ordnance repair contracts.
Foreign Firms—There is no prohibition against foreign firms repairing Navy ships. Certain technical requirements create obstacles, and special restrictions have been applied to specific situations.
Among the top contractors to MSC are several foreign firms.
A complete review of this complex, interesting market is contained in a July 1984 report by International Maritime Associates (IMA). The entire subject is covered in a tightly written, factual marketing guide. The report is 175 pages. It contains numerous tabulations, explains contracting procedures and recommends contacts to follow up for marketing.
The report is available for $480.
This price includes a subscription to four quarterly updates to be published over the next 12 months.
For more information contact James R. McCaul, International Maritime Associates, Inc., 1800 K Street, N.W., Washington, D.C.
Other stories from August 1984 issue
- Captain Osborne Joins Port of San Francisco page: 6
- ASNE Northern New England Tours BIW Repair Facility page: 7
- Dockmaster's Training Seminar To Be Held Dec. 11-14, 1984 In San Diego, Calif. page: 7
- NMEA Names Gutman President, And Carney Executive Director page: 7
- ASMAR Delivers Dona Eugenia page: 7
- Lockheed Launches U.S. Navy Dock Landing Ship 'Germantown' Ahead Of Schedule page: 8
- Nav-Com Introduces New Complete Shipboard Communications Package page: 8
- AWO Elects Creelman Chairman Of The Board page: 9
- Eastern Marine Delivers Passenger Launch P.C.C. Colibri To Panama Canal Commission page: 10
- Two Smit Tak Tugs Tow Concrete Island Drilling System From Japan To Alaska's North Coast page: 10
- New Airfoil Design Makes Wind-Powered Ships Viable For Commercial Shipping page: 10
- Boghammar Marine Delivers Light-Alloy Pilot Boat page: 10
- New Members Elected To Norshipco Board page: 11
- Organizational Changes Are Announced By Newport News Shipbuilding page: 11
- First Of Four Lauritzen Reefers Launched At Hyundai's Ulsan Yard —Two Bulkers Delivered To Apex page: 12
- New Dry Dock Delivered To Southwest Marine page: 12
- North American Marine Jet Purchases Jacuzzi Marine Jet Line page: 12
- Crude Oil Tanker Exxon Baytown Christened At Avondale Shipyards page: 13
- First of Three Fast Sealift Ships Delivered page: 14
- RFD-Elliot Offers Catalogs Describing Elliot Product Line page: 14
- Edwards Will Succeed Stonebreaker As President Of Halter Marine page: 14
- Mirrlees Offers Brochure On Its K&KV Major Mk3 Diesel Engine Range page: 14
- ASMAR Of Chile In Joint Venture To Build $13-Million Shipyard page: 15
- SEACOR Wins Contracts Worth $8.4 Million page: 15
- Mississippi Marine Proves Its Strength On Mammoth Repair Job page: 16
- Verolme Botlek Awarded Contract For Rig Modification page: 16
- Flexaust Announces A Major Improvement In Its Product Line page: 16
- Seaworthy And Bethlehem Steel Offer An Innovative 1,500-TEU Class Convertible Container Carrier page: 16
- A New Fireboat For Seattle page: 17
- Blount Delivers 425-Passenger Dinner Cruise Vessel 'Riveranda' page: 17
- Literature Available On Clemlite Heavy Duty Abrasive Blast Nozzle page: 17
- Tyne Shiprepair Wins Contract To Rebuild The Sir Tristram page: 17
- Ingram Barge Company Names New President page: 17
- Fagerstrom New President Of Alfa-Laval, Inc. (U.S.) page: 18
- Orange Shipbuilding Signs Contract For Push Boat page: 18
- McDermott Announces Transfer Of Two Senior Managers page: 18
- AWO — A Legislative Report page: 20
- NAVY WORK IN PRIVATE U.S. YARDS page: 20
- Tipping Over The Pork Barrel page: 25
- AWO Regulatory Activity: A Review Of Problems — And Solutions — Currently Afloat page: 27
- AWSC: Legislation And Regulation In The Shipyard Industry page: 29
- Farrell Comments On Rail-Barge Merger page: 30
- it UNITED WE STAND 99 - A Call To Membership In The National Ocean Industries Association page: 31
- MonArk Boat Announces Promotions And Changes page: 32
- IMODCO Gets Contracts From Indonesia, India page: 32
- Dubai Drydocks Reports Successful First Year Of Operation page: 33
- Willem Pot B.V. Offers 44-Page Marine Equipment Stocklist And Catalog page: 33
- McDermott Delivers First Jumboized Crowley Barge — Gets Contract To "Stretch" Three Additional Units page: 34
- Todd Seattle A w a r d ed $500,000 Phase I Contract For LCAC Program page: 35
- Lykes A w a r d s $ 1 5 0 - M i l l i on C o n t r a c t To Build Four C o n t a i n e r s h i p s In Japan page: 35
- Hitachi Zosen Receives Jackup Drilling Rig Order From India page: 36
- 14 MarineSafety Training Courses Detailed In 12 Page Brochure page: 36
- ASTECH Offers Literature On Lightweight Steel Honeycomb Structures page: 36
- Lubritech Fuel Additive Lowers Maintenance Costs page: 37
- The Second Annual International Inland Waterways Conference & Trade Show page: 38
- OUTSTANDING WARSHIP DESIGNS page: 38
- U.S. NAVY SHIPBUILDING PROGRAM page: 44
- Literature Available On New Mechanical Pump Seals From Drew page: 46
- Midland Enterprises' President Geary Speaks Against CSX/ACBL Merger page: 46
- Krupp Atlas Has Major Orders For Atlas Polarfix — Literature Available page: 48
- New Brochure Available From American Standard Heat Exchanger Repair page: 48
- Fram Offers 20-Page Color Brochure On Its CPS-3 Marine Separator page: 48
- Aqua-Dyne Offers Brochure On Jet-Blasting Equipment page: 48
- Ferrous Announces FMS, System For Administering Catalyst Into Fuel Oil — Literature Available page: 49
- Philip Burguieres Named National Ocean Industries Association Chairman page: 49
- UNIPAR Offers Literature On Diesel Power Packs, Parts And Components page: 49
- Dillingham Delivers Massive Bridge Construction Materials To Alaska By Tandem Barge Tow page: 51
- M a c G r e g o r - N a v i re President Hanson Dies Suddenly page: 51
- Navidyne Study Shows New Satcom Antennas Save Shipowners Money page: 51
- Ferrous Offers Literature On Catalyst Proportioning Pump And Depulsing Unit page: 51
- St. Augustine Shipbuilding Vessel For Caribbean Service Designed By DeJong & Lebet page: 52
- CIME Technical Seminar Hosted By Vancouver, B.C. Branch page: 52
- NMEA Annual Meeting Set For Oct. 14-16 In Boston page: 52
- Bowditch Introduces New Navigation And Piloting Aid page: 52
- Danos & Curole Christen Jackup Barge Alyce Danos page: 52
- AVONDALE DELIVERS FAST SEALIFT SHIP USNS ANTARES TO MSC page: 53
- Dahl To Market New Improved Racor Replacement Elements page: 53
- Baatservice Building Big Catamaran Survey Vessel page: 53
- TEP 3000 Turbocharger Injector Pump Extends Turbocharger Life — Literature Available page: 54
- McDermott-Built Barge Uses Markey Machinery Windlass And Capstans page: 54
- PRC Reports On Navy Use Of PRORECO III Deck System page: 54
- New IMA Report Available Analyzing U.S. Navy Overhaul Market page: 55
- Renk Opens New Plant In South Carolina — Literature Available page: 55
- Coflexip Flexible Pipe Riser Used In Test Program By Navy page: 57
- Meyer Werft Delivers Gas Carrier And Gets Contract For Cruise Liner page: 58
- NABRICO Constructing 45 Barges For N.Y. City Department of Sanitation page: 61
- Rauma-Repola Delivers 225-Foot Salvage Tug To Soviet Union page: 62