Page 33: of Maritime Reporter Magazine (December 1986)

Fast Combat Support Ship (AOE)

House/Senate conferees agreed to provide $499 million for construc- tion of the lead AOE. The Navy requested $613 million. The Senate had earlier rejected the AOE on the basis of funding constraints.

Meanwhile, proposals to build the

AOE were submitted on October 31.

Six yards were invited to submit proposals. Four or five (Avondale,

NASSCO, BethSteel, PennShip— maybe Litton) have submitted bids.

The contract will be for one ship with three option ships. The con- tract award is planned in late De- cember.

Oceanographic Ship (AGOR 23)

This year's budget provides $33 million to build an oceanographic ship. A circular of requirements (COR) providing required perform- ance parameters is to be issued this month. Proposals will be submitted in May. The contract award is planned for next August or Septem- ber.

Coastal Hydrographic Vessels (TAGSC)

The Navy was given $35 million to procure and convert fishing boats for use as hydrographic vessels.

They are being referred to as mini-

TAGS and will be used for oceano- graphic use.

A circular of requirements (COR) will be issued inviting owners of fishing boats or small freighters to submit proposals. The conversion contract will probably be awarded in 10-14 months.

Strategic Sealift

The appropriations conferees provided $78 million to purchase ships for the ready reserve fleet.

This is $50 million more than the

Navy's request. The conferees di- rected the Navy to "examine the possibility of using a portion of these funds to take advantage of a unique opportunity to acquire a roll-on roll-off vessel built in the

United States (in) 1975 which is a sister ship of vessels already in the reserve fleet."

New Carrier(s)

The Navy is understood to have included long lead item funding for a new aircraft carrier in the FY 1988 budget request. Funding may be requested for two sets of long lead items. The Navy now has 15 carriers in active service and two under con- struction. The proposed new car- rier^) would be delivered in the late 1990s and replace older ships now in service. Newport News will be the major beneficiary of this funding.

SWATH TAGOS

McDermott was the successful bidder for the lead SWATH design

TAGOS. Its price of $25.4 million is understood to be significantly under the next lowest bidder. The Navy

December, 1986 plans to buy nine of these twin-hull ships.

Amphibious Assault Ships (LHD)

Ingalls won the LHD follow ship competition. On September 11 the firm received a $402.5 million fixed price incentive contract for one ship, with priced options for two additional ships. Three other bids were received.

Funding Recisions

The appropriations conferees agreed to rescind $1.3 billion in prior year shipbuilding and conver- sion funding. Actual costs to build ships are running significantly be- low estimated costs and Congress decided to recover some of the ex- cess funds for ships contracted over the past four years. The Navy ship funding recisions represent 24 per- cent of total defense funding reci- sions ordered by the appropriations conferees.

A major portion ($338 million) of ship funding recisions was directed at the LHD program. The award of the LHD follow ship contract was made in mid-September—in time for the appropriation conferees to note an award price $300-400 mil- lion under Navy expectation. (continued)

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