Page 20: of Maritime Reporter Magazine (June 1989)

U.S. NAVY

THE OUTLOOK FOR U.S. NAVY SHIPBUILDING

AND SHIP REPAIR

Status of U.S. Navy Ship Modernization and Maintenance

By Dr. James R. McCaul, President

IMA Associates, Inc.

NAVY BUDGET

The proposed Navy budget is $101.7 billion in FY 1990 and $105.1 billion in FY 1991. This would rep- resent a three to four percent in- crease over current spending. De- scribed below are Navy's plans and budget for major program activities over the next several years.

SHIPBUILDING

Navy has requested $10.4 billion in FY 1990 to fund construction of 20 new ships and two major conver- sions. The amount of $9.8 billion is requested in FY 1991 to build 14 ships—including two follow ships in the SSN 21 attack submarine pro- gram.

Outlays for ship construction will grow from $8.9 billion in FY 1988 to $10.9 billion in FY 1991. This growth occurs despite the fact that obligational authority is much lower in FY 1991 than

FY 1988.

Shown in Exhibit 1 is the break- down of the shipbuilding budget request for the FY 1988-1991 peri- od. Exhibit 2 shows the projected program over the next five years.

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 Navy's plan to overlap construction of the

SSN 21 and SSN 688. The current plan is now to end the SSN 688 pro- gram in FY 1990. In FY 1991 Navy plans to order two SSN 21's and maintain a construction rate of three per year thereafter.

Navy plans to build DDG 51 Ae- gis destroyers at the rate of five per year over the next five years. This program is a target for budget cut- ting—most likely by stretch-out— building fewer ships per year over a longer period.

Other changes from last year's plan include a change in timing for several programs—including the

AOE fast combat support ship,

LHD amphibious assault ship and

TAGOS survelliance ship. Three

MCM mine countermeasure ships have been added for FY 1990. (See

MR, 3/89 issue page 25 for a full report on 'The Navy—A $35-Billion

Annual Market')

SHIP REPAIR

U.S. Navy ship maintenance and modernization continues to be a ma-

Exhibit 1—Shipbuilding and Conversion Budget (in millions of $)

FY 1988 FY 1989 FY 1990 FY 1991

Qty $ Qty $ Qty $ Qty $

New 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./

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 (TAO-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

Conversion/Acquisition

Carrier Modernization (CV SLEP) 1 729.8 — 62.7 1 651.2 72.6

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 2—Navy Shipbuilding and Conversion

Five Year Plan (FY 1990-1994)

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

New 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) (9) (12) (12) (12) (12) (57)

Total New Construction 20 14 21 20 20 95

Conversion/Acquisition

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

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

Moored Training Ship m — (1) — — (2)

Total Conversion 2 — — 1 — 3

Total Ships 22 14 21 21 20 98

Source: Department of the Navy jor source of business for many ship- yards and equipment suppliers in the United States.

Funding for Active Forces

Maintenance and Modernization

The Navy has asked for $5.5 bil- (continued) 24 Maritime Reporter/Engineering News