Page 35: of Maritime Reporter Magazine (September 1986)

The RACER system was intended to complement the LM-2500 pro- pulsion system on the Navy's lat- est destroyer—the DDG-51 Ar- leigh Burke Class. It was esti- mated that RACER would extend the range of these ships by up to 2,000 miles. During the past two- year period, however, the pro- gram has been mismanaged. The

Navy did not follow Congression- al guidance and, in fact, used funds authorized and appro- priated for the RACER program for other purposes. The RACER system tests were suspended by the Navy, and subsequently, the contract for RACER development was canceled.

The committee does not concur in the Navy's action to cancel the

RACER program and, accord- ingly, recommends $20.0 million in authorization to resume testing of the RACER system for deploy- ment on the DDG-51 as well as other platforms. Section 204 would provide that no funds be used for research, development, test and evaluation for the DDG- 51 class ship until the Secretary of the Navy resumes testing of the

RACER system and advises the

Congress that testing will contin- ue through completion of land- based and at-sea testing. Addi- tionally, the RACER and DDG-51 designs must be compatible.

The Senate accepts the Navy's decision to abandon RACER. Lan- guage in the Senate authorization bill eliminates the requirement that the lead DDG-51 be capable of ac- commodating the RACER system.

Surface ship enhancement—

The House committee recommends that the Navy begin a program in

FY 1987 to upgrade surface ship sensor and defensive system capa- bility. It recommends $90 million be authorized for this effort. Of this total $30 million would be for sen- sors upgrades, $35 million for en- gagement improvements (e.g. hy- pervelocity defense missile) and $25 million for anti-air warfare weapon development. This recommendation is one element in the "conventional defense initiative" proposed by the

House committee. •

Defense Department's

First Two-Year Budget

Cycle To Begin For FY88

Deputy Secretary of Defense

William H. Taft IV announced recently that the Department of De- fense would use its current review of the FY 1988 defense program and budget to assess the requirements for both FY 1988 and FY 1989. The product of this review will be a two- year budget. Because this year's re- view will cover both FY 88 and FY 89, no program or budget review will be needed next year. The Deputy

Secretary has directed that prepara- tions for those reviews be stopped.

This action carries out the re- quirements of the FY 1986 Authori- zation Act, which directs the Presi- dent to submit a two-year budget for the Department of Defense next year, and it carries forward the

Packard Commission endorsement of the two-year budget concept.

Two-year budgeting is a key rec- ommendation of the Packard Com- mission, and should bring much- needed stability to Defense spend- ing. The DoD intends to work close- ly with the Congress to insure a smooth transition to a two-year budget.

MAJOR NAVY CONTRACTS

This special section includes ma- jor Navy contract awards issued between the dates of June 19 to

August 6, 1986. For Navy contracts prior to these dates refer to MARI-

TIME REPORTER, July 15, 1986 issue, "Major Navy Contracts," page 11. Contract awards from

April 1 to June 17, 1986 are cov- ered.

June 19

Raytheon Company, Missile Systems Di- vision, Bedford , Mass., is being awarded a $107,832,229 fixed-price-incentive/per- formance-incentive contract for qualifica- tion and production of guidance, control and air-frame sections for Standard Missile 2 (SM-2), Block II. Work will be performed in

Bristol, Tenn. (79 percent); Lowell, Mass. (11 percent), and Quincy, Mass. (10 per- cent), and is expected to be completed

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September, 1986 37