Page 44: of Maritime Reporter Magazine (August 15, 1984)

Navy Shipbuilding—Update (continued from page 44) mended authorization for defense programs totalling $294.8 billion— $18.6 billion below the $313.4 re- quested by the Administration.

The Committee cut $10 billion from the proposed defense procure- ment budget. Program authoriza- tion was passed by the House on 31 May (298 to 98).

In response to the budget deficit, the Administration sent a revised defense budget request to Con- gress at the beginning of May. It contained $14.4 billion in reduc- tions—lowering the defense budget

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Exclusive to Clemco per- formance systems! request to $299.0 billion. The re- vised budget request cut $811 mil- lion from Navy ship procurement.

This reduction was achieved by eliminating an attack submarine and the T-AK resupply ship from the FY 1985 budget.

The Senate Armed Services

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Committee on 31 May submitted its defense authorization report (S.98-500). It recommended au- thorizing programs totalling $299.0 billion—$14.4 billion below the original budget request. While the same total as the Administration's amended budget request, the com- position is different. The Senate

Committee recommended authori- zation for four attack submarines (as originally requested) but re- moved the T-AK and one T-AGOS from the program. Program au- thorization was passed by the Sen- ate on 20 June (82 to 6).

Exhibit I summarizes the Navy ship procurement program as re- quested by the Administration and passed by House and Senate.

Senate Armed Services Com- mittee Recommended That

Army Restrict Procurement Of

Four Logistics Support Vessels (LSV) To Domestic Sources

The LSV is to be a 12 knot, 2,000 ton capacity vessel used by the Army to haul cargo to remote locations and be used in the over- the-shore operations. Army had received $28.5 billion appropria- tion in FY 1984 to initiate this program. As there is no domestic source restriction imposed on Army procurement, the program was to be open to worldwide competition.

The standard buy American test (see IMA's June 83 report, pp. 92- 94) would apply, except to sources in countries having memoranda of understanding with the U.S.

On 6 March the LSV solicitation was made available to interested firms. Various foreign yards were interested in bidding. Under pres- sure from U.S. shipyards, Army decided to withdraw the solicita- tion until the procurement sourc- ing regulation is clarified.

In recommending the $18.8 mil- lion authorization for FY 1985 the committee stated: "The committee does not believe that procurement of LSV's from for- eign sources is consistent with the intent of Section 7309 of Title 10,

United States Code, enacted by the

Congress during consideration of the Department of Defense Author- ization Act, 1983. In an effort to preserve adequate U.S. shipbuild- ing capacity, this section bars the

Navy from buying ships from for- eign shipyards unless the President determines that it is in the interest of the national security to do so.

The committee believes that the

Congress intended that all military vessels, not just "naval vessels," be covered by the restriction. To clarify this issue, the committee recom- mends bill language that expands the scope of Section 7309 of Title 10 to cover all military vessels." (continued on page 48)

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