Page 27: of Maritime Reporter Magazine (December 1987)

programs is summarized in Ex- hibit 1. 2. FUTURE FUNDING OF

SHIP CONSTRUCTION

The Navy proposed to build 16 ships and perform four major con- versions in FY 1988. At time of pre- paring this article there had been no resolution of the FY 1988 budget.

But the actions taken thus far by

Congress clearly indicate a reduc- tion is expected.

The House and Senate authoriza- tion bills provide for construction of 13 ships. Major change is in the

Aegis surface combatant program.

The President requested a program of two CG 47 Aegis cruisers and three DDG 51 Aegis destroyers.

Both House and Senate deleted the

DDG 51's from the program—but instead authorized five CG 47's.

In late October the House ap- proved a defense appropriations bill. It makes cuts in funding for ship construction. The House bill provides funding for two Aegis ships—denying the request for three DDG 51's. It also denies fund- ing for the MCM minesweeper in

FY 1988 and cuts the crane ships conversion plan.

The House appropriations bill contains some interesting items. It orders a study to be made by Navy of a build and charter program for strategic sealift tankers. The bill also requires the Navy to conduct "a full and open competition for the

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IMA's two quarterly business re- views will help keep you informed.

One covers Navy ship maintenance and modernization. Another covers ship and equipment procurement.

Both deal with contract opportuni- ties, long term spending plans and key points of buying power. More than 300 companies selling to Navy subscribe to these reports. • U.S. Navy Ship Mantenance and Modernization

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IMA, Telefax (202) 333-8504. fiscal year 1989 DDG 51 ships and the awarding of at least one ship to a third shipyard." Navy can be ex- pected to oppose this requirement and attempt to have it deleted in the final House/Senate appropria- tions bill language. Another inter- esting item in the House bill is a request that the Navy consider an alternative design for the LSD 41 cargo variant. It requests that the

Navy "examine the viability and cost effectiveness of a modified SL- 7 design, with LM 2500 engines as a cargo variant."

Details on the FY 1988 shipbuild- ing funding request and Congres- sional action to date are shown in

Exhibit 2. Note that the Senate had not yet acted on a defense appro- priations bill—and cuts resulting from deficit reduction negotiations are expected to affect the final de- fense budget. 3. FUNDING OF SHIP

SYSTEMS AND EQUIPMENT

The President's budget requested $22 billion to fund weapons, other procurement and provide funds for research and development in FY 1988. Both House and Senate have authorized reduced programs.

In late October the House passed a defense appropriations bill mak- ing serious cuts in this portion of the

Navy budget. The total was cut from $22 to $19 billion.

The House appropriations bill contains some items of particular interest to marine suppliers. It in- cludes an additional $10 million to be used "solely for the purchase of

U.S.-built, totally enclosed survival systems." These will be state-of- the-art survival systems for use on civilian manned T-ships operated by MSC. Another item is an addi- tional $12 million for the continued dual source procurement of sea- sheds and adapters.

A new buy American provision is also contained in the House appro- continued)

Exhibit 4

Legislative Status Of Funding

For Navy Ship Maintenance

And Modernization In FY 1988 ($ in millions)

Budget

Request Appropriation

Active Fleet

Ship Depot

Maintenance

Active Fleet

Ship

Modernization

NRF Ship

Maintenance

And Modernization $2,775 $1,291 $178

House

Appropriations

Bill $2,613

Senate

Appropriations

Bills $1,291 $174 o ^ en » g

Source: Navy Budget Request

House Defense Appropriation Bill

Exhibit 3

Legislative Status of FY1988 Funding for

Navy Weapons, Equipment and Systems (in millions of $)

Authorization

Weapons

Other Procurement

Research & Development

Budget

Request $6,502 4,984 10,490

Appropriation

House

Authorization Bill $6,482 5,254 9,292

Senate

Authorization Bill $6,220 4,968 10,269

House

Appropriations Bill $5,366 5,012 8,635

Senate

Appropriations Bill

No

Action

To Date

Source FY1988 Defense Authorization and Appropriations Bill

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December, 1987 35