Page 34: of Maritime Reporter Magazine (May 1989)

U.S. NAVY

Exhibit 2—Shipbuilding and Conversion Budget (in millions of $)

FY 1988 FY 1989 1990 1991

Qty $ Qty $ Qty $ Qty $

Construction

Trident Submarine (SSBN) 1 $1,260.8 1 $1,196.2 1 $1,228.6 1 $1,254.5

Carrier Replacement (CVN) 2 6.225.0 — — — — — —

Attack Submarine (SSN 688) 3 1,676.9 2 1,364.6 2 1,520.3 — —

New Attack Submarine (SSN 21) — 257.6 1 1,533.0 — 866.0 2 3,161.9

Aegis Cruiser (CG 47) 5 4,100.7 — — — — — —

Destroyer (DDG 51) — 5.5 4 2,826.1 5 3,600.7 5 3,604.7

Mine Countermeasure Ship (MCM) — — — — 3 341.5 — —

Coastal Minehunter (MHC) — — 2 196.7 3 230.3 3 214.9

Amphib. Landing Craft (LSD 41) 1 258.0 — — 1 229.3 1 232.7

Amphib. Assault Ship (LHD 1) 1 752.9 1 733.1 — — — 35.8

Ocean Surveill. Ship (TAGOS) — — 3 158.9 1 155.8 — —

Fleet Oiler (TA0-187) 2 256.4 5 689.9 — — — —

Fast Combat Support Ship (AOE) — — 1 363.1 1 356.4 1 357.7

Ocean. Research Ship (AGOR) — — — — 3 278.1 1 41.9

Landing Craft (LCAC) — 35.3 (15) 305.5 (9) 219.3 (12) 284.0

Ship Modernization/Conversion

Carrier Modernization (CV SLEP) 1 729.9 — 62.7 1 651.2 — 76.6

Crane Ship Conversion (TAC) 2 53.1 — — — — — —

Fleet Oiler Lengthening (AO 177) 1 44.1 2 75.0 1 35.7 — —

Moored Training Ship — — — — (1) 220.0 — —

Other costs — 319.6 — 376.8 — 486.4 — 500.7

Total Budget 19 $15,975.7 22 $9,881.6 22 $10,419.6 14 $9,765.4

Source: Department of the Navy

Exhibit 3—Navy Shipbuilding and Conversion

Five-Year Plan (FY 1990-1994)

FY 1990 FY 1991 FY 1992 FY 1993 FY 1994 FY 1990-94

Ship Construction

Trident Submarine (SSBN) 1 1 1 1 1 5

Attack Submarine (SSN 688) 2 — — — — 2

New Attack Submarine (SSN 21) — 2 3 3 3 11

Destroyer (DDG 51) 5 5 5 5 5 25

Mine Countermeasure Ship (MCM) 3 — — — — 3

Coastal Minehunter (MHC) 3 3 4 4 — 14

Amphib. Landing Craft (LSD 41) 1 1 1 1 1 5

Amphib. Assault Ship (LHD 1) — — 1 1 — 2

Ocean Surveill. Ship (TAGOS) 1 — 2 1 2 6

Ammunition Ship (AE) — — — 1 2 3

Fast Combat Support Ship (AOE) 1 1 1 1 1 5

Ocean. Research Ship (AGOR) 3 1 2 2 1 9

Ocean Surveill. Ship (AGOS) — — 1 — 2 3

Repair Ship (AR) — — — — 1 1

Salvage Ship (ARS) — — — — 1 1

SOF Landing Craft — — — (1) (6) (7)

Landing Craft (LCAC) J9] (12) (12) (12) (12) (57)

Total Construction 20 14 21 20 20 95

Ship Modernization/Conversion

Carrier Modernization (CV SLEP) 1 — — 1 — 2

Fleet Oiler Lengthening (AO 177) 1 — — — — 1

Moored Training Ship All — All — — (2)

Total Modernization/Conversions 2 — — 1 — 3

Total Number of Ships 22 14 21 21 20 98

Note: Figures in parentheses not included in totals

Source: Department of the Navy (continued) ers. In December 1988, the Navy negotiated a contract modification with Avondale which provides am- munition capability as well as in- creased oil capacity in the midbo- dy.

PROPOSED SHIP

PROCUREMENT BUDGET

FOR FY 1990/91

For FY 1990, $10.4 billion has been requested to fund construction of 20 new ships and perform two major conversions. In FY 1991, $9.8 billion was requested to build 14 ships—including two follow ships in the SSN-21 attack submarine pro- gram.

Shown in Exhibit 2 is the break- down of the shipbuilding budget request for the FY 1988-91 period.

Exhibit 3 shows the five-year ship- building plan.

A major change in the future pro- gram has been the deletion of three

SSN-688 submarines originally planned for FY 1991 and 1992.

There had been criticism of the

Navy's plan to overlap construction of the SSN-21 and SSN-688. The current plan is to end the SSN-688 program in FY 1990—and order two

SSN-21s in FY 1991, maintaining a construction rate of three SSN-21s per vear thereafter.

The Navy plans to build DDG-51

Aegis destroyers at the rate of five per year over the next five years.

However, due to budget pressures, this program is a target for stretch- out. The Congressional Budget Of- fice has estimated that buying three

DDG-51s per year versus five per year would produce cumulative sav- ings of $7.3 billion over the next five years.

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