Page 33: of Maritime Reporter Magazine (September 1985)

Exhibit 3 FY 1986 Navy Other Procurement (in millions of dollars)

Budget House Senate Conference

Request Authorization Authorization Agreement

Ship support equipment 923.0 908.0 935.0 935.0

Comm. and elect, equip. 2,154.0 2,085.8 2,111.7 2,134.5

Aviation support 1,184.0 1,187.2 1,124.0 1,206.8

Ordnance support 1,396.5 1,326.5 1,396.5 1,396.5

Civil eng. support 221.6 221.6 232.6 232.6

Supply support 62.5 62.5 62.5 62.5

Personnel & command support 379.8 376.6 389.9 389.9

Spares & repair parts 279.8 269.8 279.8 279.8

Noncentrally managed items — 170.8 — 125.3

General reduction/transfer (617.3) (1,252.6) (772.0)

Total Budget 6,601.2 5,991.5 5,279.4 6,040.8

Source: House and Senate Reports.

Exhibit 4 FY 1986 Research, Development, Test and Evaluation Budget (in millions of dollars)

Budget House Senate Conference

Request Authorization Authorization Agreement

Technology base 853.2 847.9 833.7 840.8

Advanced tech. div. 239.4 202.3 209.7 214.8

Strategic programs 2,482.0 2,294.1 2,458.0 2,430.5

Tactical programs 6,161.0 5,241.1 5,777.9 5,447.9

Intelligence & commun. 704.0 558.1 646.0 595.3

Defensewide support mission 824.7 795.8 736.8 763.5

General reduction/additions/ transfer — (301.7) (193.7) (186.4)

Total 11,264.3 9,637.6 10,468.6 10,106.4

Source: House and Senate Reports. fy its business base. At the annual stockholders meeting on 17 July,

Todd management indicated pro- gress in acquiring a second core business. The chairman said Todd is now making a financial and business investigation of a specific company with volume of about $100 million.

Bath Employees On Strike

A major, potentially lengthy work stoppage brought yard production to a halt at Bath Iron Works at the end of June. The issues involve a proposed wage freeze and reduction in benefits. The strike will delay launching of the CG-51 and impact other new construction and over- haul work in the yard. It is not impacting the DDG 51 at this time, as work is still in the engineering phase. (continued on page 34)

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Exhibit 5 DDG-51 Contract Milestones

MILESTONE EVENTS DATE

Start Fabrication 05-10-87

Complete layout, cutting, and shaping of first 100 tons of hull structure.

Lay Keel 12-14-87

Erection of the first assem- bled unit on the building ways or equivalent.

Load Main Machinery 02-28-88

Propulsion machinery in po- sition, but not aligned, and structure required for its in- stallation complete.

Complete Hull Assembly/

Integration 07-17-88

All units and superstructure erected and assembled on building ways or equivalent.

Launch/Float-Off 08-21-88*

Ship launched from building ways and moored at pier.

Start Combat System Test 12-18-88

Completion of Contractor support system tests which will support uninterrupted testing for Navy stage 3-7 testing.

Start Dock Trials 06-04-89

Commence operational dockside checkout of main propulsion and auxiliary sys- tem in preparation for build- er's trials.

Compartment Completion

Inspection Rept. 07-02-89 100 percent of Compart- ment Completion Inspec- tion Reports submitted.

Inclining 06-11-89

Accomplished in accord- ance with the Ship Specifi- cations Section 097.

Complete Trial ALPHA 06-18-89

Shipbuilder operates ship at sea for preliminary demon- stration of machinery and for limited combat system demonstrations.

Complete Trial BRAVO 07-09-89 (Builder's Trials)

Shipbuilder operates ship at sea, verifies operability of ship subsystem equipments and components as prereq- uisite to acceptance trials.

Phase one will constitute fir- ing all ship's armament, in- cluding missiles. Phase two will be a Mock INSURV trial.

Allowance Shortage Lists (a) Submit 60 days prior to 06-04-89

Trial CHARLIE (b) Submit at start of Trial 07-30-89

CHARLIE (c) Submit at ship delivery 09-24-89

Complete Trial CHARLIE 08-06-89 (Acceptance Trials)

Completion verifies opera- bility and performance of ship subsystems and com- ponents and signifies readi- ness for delivery to Navy.

Delivery of Ship 09-24-89

Satisfactory fulfillment of contract requirements and preliminary acceptance by

Navy.

Complete Guaranty Period 06-24-90

Satisfactory fulfillment of contract requirements and final acceptance by Navy. *Note: IThe launch date is subject to suit- ability of tide conditions and a maxi- mum variation of ± 3 weeks from the date shown above.

Source: Contract No. N00024-85-C-2144

For years Engelhard has been meeting the challenges of the sea head on. Our Capac® system provides reliable impressed current corrosion protection for thousands of vessels from tugs to VLCC's as well as for offshore rigs.

The Chloropac® system, with its efficient modular design, provides continuous-fouling control through electrolytic hypo- chlorite generation from sea water.

GAPAG® (Cathodic Protection Automatically Controlled)

Extends period between dry dockings Lowest installed cost Reduces fuel costs Less painting and hull maintenance Simple operation controls corrosion even under varying hull coatings, speeds and water conditions

Maritime Regulatory Agency and Classification Society approval Suit- able for any type vessel or off- shore rig

Backed by

Engelhard . . . the only company in the world to design and manufacture components, and refine its own precious metals for anodes The permanent answer to short term sacrificial anodes and special coatings.

CHLOROPAC®

Controls marine fouling with treatment of less than V2 part per million hypochlorite

Eliminates eroding heat exchangers Water boxes and sea chests stay clean Surface condensers maintain heat transfer rate and reduce fuel consumption Keeps piping clean reducing fouling induced erosion corrosion 5-year express warranteed cell life.

For more information on how Engelhard can save you money, write or call Engelhard Corporation, Capac/Chloropac Prod- ucts, 2655 U.S. Route 22, UNION, NJ 07083, (201) 964-2766

Telex: 13-83246 Telefax: (201) 686-8613. SINGAPORE:

Telex: 23361 Tel.: 336-8059, HONG KONG: Telex: 44787,

Tel.: 3-650301/6, SAN LEANDRO, CA: Telex: 172-086,

Tel.: (415) 638-6663, NEWPORT GWENT, UK: Telex: 497870,

Tel.: 0291 423833, Telefax: 291-423836.

September 1, 1985

Circle 292 on Reader Service Card 1 1