Page 32: of Maritime Reporter Magazine (December 1986)

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U.S. NAVY SHIP PROCUREMENT

THE FY 87 NAVY SHIPBUILDING AND CONVERSION

BUDGET—

An Update On Market Developments

By James R. McCaul, President

International Maritime Associates, Inc.

International Maritime Asso- ciates, Inc. publishes quarterly mar- ket assessments of Navy ship and ship systems procurement. This ar- ticle is an excerpt from the Novem- ber quarterly review. Information in this article is current as of Novem- ber 1.

EDITORS NOTE: This Article is not the full quarterly report. It is an excerpt and repre- sents less than 15 percent of the actual data contained in the complete review.

HOW TO ORDER THE COMPLETE REVIEW

Every three months International Maritime Associates, Inc. publishes a detailed review of the U.S. Navy ship procurement market. These quarterly reviews (30 + pages) provide a totally objective assessment of current and prospective Navy busi- ness. Both shipbuilding and ship systems/ordnance procurement are addressed. Each reviews contains a hard hitting assessment of specific programs, lists all major con- tracts awarded by the Navy, identifies future market opportunities and provides a current directory of key Navy contacts.

More than 220 companies now subscribe to IMA's quarterly market review. The price of a one year subscription is $380. The market review can be ordered by contact- ing, International Maritime Associates, Inc., 3050 K Street N.W., Suite 345, Washing- ton, D.C. 20007, (202) 333-8501

SHIPBUILDING AND

CONVERSION

The Navy requested funding for 24 ships in FY 1987. Congress au- thorized and appropriated funds for 21 ships. Details are shown in Ex- hibit 1.

Aegis Ships (CG and DDG)

Funds were provided to build three CG-47 cruisers and two DDG 51 destroyers. Three DDGs were au- thorized—but only two have been funded. One of the FY 87 DDGs is to be awarded to a second source builder. Todd, Ingalls, Avondale and NASSCO are planning to bid on the follow ship contract.

Coastal Minehunter (MHC)

Reflecting strong political pres- sure, the Navy developed a fall back plan to build all MHCs in the U.S. A

U.S. division of Intermarine (Italy) will receive the lead ship contract.

The Navy had wanted to build the first ship overseas and phase in pro- duction in this country. The appro- priations conferees instructed the

Navy to use FY 1986 MSH funds for this program "provided that all

MHC ships are built in the U.S. and that the follow-on ships be awarded competitively and selected by the

Navy." 34 Maritime Reporter/Engineering News

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