Page 3rd Cover: of Maritime Reporter Magazine (March 1985)

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Market Opportunities For Shipbuilders, Equipment

Manufacturers, System Integrators And Engineering Firms

New Report and Advisory Service

Available February 1985 • basic 200+ page report (outlined below) • quarterly updates reporting important developments, program changes, analysis of con- tract awards • advisory follow-up for clarification of recent developments

I. Introduction

A. Historical pattern of naval ship procurement

B. Market drivers—military needs, technical obsolescence, budget constraints, etc.

C. Impact of technology 1. Unit ship cost has risen vastly since 1960 2. Systems more important than platform 3. Electronics systems particularly growing in sophistication 4. Weapons are increasingly more lethal and accurate

D. Several important controversies 1. Surface ship usefulness being questioned 2. DOD trying to promote competition in procurement 3. Insufficient work to support shipbuilding industry

II. Description of Current Players

A. Shipbuilders 1. Major surface combatants—Bath, Ingalls, Todd-LA 2. Submarines—Newport News, GD-Electric Boat 3. Carriers—Newport News 4. Amphibious ships—Lockheed, Ingalls, Avondale 5. Auxiliaries—GD-Quincy, NASSCO, Avondale, Tampa, Beth Steel-Sparrows

Pt., Pennship 6. Small ships—Peterson, Marinette Marine, Bell-Halter, Todd-Seattle, Tacoma, others 7. Patrol boats, landing craft and service craft—Boeing, Swiftships, Atlantic Ma- rine, others

B. Ship systems manufacturers 1. Machinery—GE, Westinghouse, DeLaval, Colt 2. Ordnance and Electronics—RCA, Litton, Sperry, GE Hughes, IBM, Raytheon,

FMC, Honeywell, Rockwell, Gould, ITT, Interstate Electronics, Motorola, San- ders, Magnavox, Singer, GD-Pomona, Lockheed, Martin Marietta

C. Engineering services 1. Naval architects—AME, Adtech, Arinc, CASDE, D&P, Geo. Sharp, Gibbs &

Cox, JJ Henry, JJMA, M. Rosenblatt, NKF, RAM 2. Systems integration—Vitro, BBN, Booz Allen, C Cubed, Calculon, Columbia

Research, EG&G, Essex, Milcom, ORI, Syscom, TRW, Westinghouse

D. Summary of recent work distribution 1. Top 200 contractors 2. Top 50 ship system awards 3. Top NAVSEA, NAVELEX, MSC engineering contractors

III. Procurement Process

A. Organizations in DOD which impact on procurement 1. OSD, SECNAV, CNO—how they relate 2. Material Command—role of "Competition Czar" 3. NAVSEA—role of SEA 06, 05, 02, PMS's—and SEA 08 4. NAVELEX—role of PME's 5. Planned reorganization, creation of Naval Combat Systems Command 6. MSC—contracting office for T-ships

B. The formal PPBS cycle 1. Why introduced, how it works, is it effective 2. Role of various DOD components, OMB, Congress

C. NAVSEA's seven phase acquisition process 1. Tied to PPBS cycle 2. Provides points at which design is frozen (supposedly!) 3. Makes early program entry important

D. Recent variants to acquisition process 1. Two step procurement 2. Build/charter

IV. Projected Market

A. Five year plan—analysis of business impact in 100 industries

B. Analysis of major future ship programs 1. DDG 51—lead ship decision imminent for 29 ship ($20-30 billion) program, three contenders 2. SSN 21—new submarine for 1990's, two contenders 3. LPDX or modified LSD-41—amphibious ship planned for late 1980's 4. AE, AG, AOE, AR—auxiliaries planned, maybe conversions 5. TAO, TAGOS—follow flight to be competed 6. MSH—opportunities for subcontractors, second source expected 7. Service craft—lots of opportunities

C. Analysis of major ship systems now being procured or planned 1. Ship mechanical systems—LM 2500 gas turbines (GE), reactor plants (GE,

Westinghouse), diesel engines (Colt, Isotta-Fraschini), pumps (Worthington), condensers (DeLaval) 2. Electronics—Aegis (RCA, Raytheon), control systems (Litton, GE), ASW sys- tems (IBM, GE, EDO, Gould, Hazeltine, Raytheon, Honeywell), radar (Raytheon, ITT-Gilfillan, Sperry, Cardion Electronics), SUBACS (IBM), navi- gation systems (Rockwell, Litton, Racel Decca), integrated radio room (RCA) 3. Ordnance—Vertical launch system (Martin Marietta, FMC), torpedoes (Gould, Hughes, Honeywell), ASW stand-off weapon (Boeing), close-in-weap- ons system (GD), missiles (GD, McDonnell Douglas, Lockheed, Raytheon)

D. Engineering services required in FY 1985 1. Conceptual feasibility studies 2. Preliminary design—repair ship (AR) 3. Program design and engineering support—LOE contracts 4. System integration support

E. Opportunities these programs offer 1. Prime contracts—numerous opportunities available, emphasis on competition will help 2. Subcontracts—many opportunities open to electronics firms, steel fabricators, pump manufacturers, machine shops and engineering firms 3. Foreign firms—offset deals are very important

F. Sensitivity to future events 1. Budget constraints—deficit will present increasing problem 2. Surface ships—vulnerability big issue, could impact plan

V. Contracting Rules and Procedures

A. Federal acquisition regulations and DOD FAR supplement—provides complete set of rules

B. Contracting Methods 1. Advertised procurement 2. Negotiated procurement 3. Types of contracts—fixed price, CPIF, CPAF, etc.

C. Source selection process—path followed to award contract

D. Set asides—small businesses, minority firms, labor surplus area 1. Relevant rules 2. How rules are implemented in NAVSEA 3. Meaning to potential competitors

E. Specifications 1. Federal specifications, military specifications 2. Qualified products list

F. Buy American requirements 1. Buy American Act 2. Burns-Tollefson amendment 3. Special legislative provisions—e.g., FY 1985 rules on LSV procurement 4. Specialty metals restrictions 5. Trade Agreements Act of 1979

G. Defense cooperative agreements 1. Memoranda of understanding 2. Special agreement with Canada 3. How foreign firms can utilize these agreements to sell into DOD programs

VI. Points Of Marketing Contact


B. Prime contractor contacts for subcontractors 1. Shipyards—purchashing liaison 2. Systems, equipment manufacturers—purchasing liaison

C. Engineering and design firms—point of contact for early program contact

Appendix A Detailed description of plannning and acquisition process

B Relevant DOD contracting forms

C Detailed breakdown of 1985 Navy ship procurement, weapon procurement, other procurement, and research, development, test and evaluation budgets.

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First published in 1881 Maritime Reporter is the world's largest audited circulation publication serving the global maritime industry.