Page 24: of Maritime Reporter Magazine (June 1989)

U.S. NAVY (continued) lem. As shown in Exhibit 7, the buy- ing spree over the past ten years has

Type Ship

Rate Recoverable:

Cargo

POL

Afloat preposi- tioning/FSS

Special Mission

Fleet Auxiliary

Subtotal

Reimbursable:

Fleet Auxiliary .2

Special Mission 0

Subtotal .2

Total 137.9 $174.1

Number of Overhauls Scheduled

Source: Military Sealift Command

Fiscal Strategic

Year Forces 1985 43 1986 45 1987 43 1988 43 1989 42 1990 41 1991 41

Source: Department of the Navy resulted in a larger fleet. The active force has grown from 545 ships in 1985 to 568 ships this year. Growth in fleet size will continue over the next several years—despite plans to decommission 39 ships in FY 1990 and 1991.

These ships need to be main- tained. Yet the funds available for such maintenance are increasingly difficult to find. This dilemma prob- ably cannot be resolved internally by Navy. There are too many special interest groups with which to con- tend. Proponents of aircraft car- riers, the new SSN 21 submarine,

Aegis destroyers, etc. will continue to resist cuts in the ship construc- tion budget. Reducing funding for ship maintenance—particularly non-nuclear surface ship mainte- nance—will continue to be a path of least resistance.

Eventually the Congress, the

GAO, perhaps the DOD Inspector

General's office will examine what is taking place. There will be efforts to require Navy to perform more maintenance. Some modest in- creases in funding and shifts in piro- rities may result. But don't expect major shifts until a catastrophe oc- curs.

Things To Look For

Here's a short list of possible actions to look for over the next 12 to 24 months which affect ship maintenance: • cancellation of the Enterprise (CVN 65) refueling overhaul and decommissioning of the ship—de- spite the sunk cost already invested in this effort; • continued substitution of short term maintenance availablilities for overhauls (bad news for firms out- side homeport areas); • accelerated retirement of Ad- ams/Farragut (DDG 2/37) class de- stroyers; • cuts in purchases of replace- ment and modernization compo- nents; • smaller work packages as planned alterations are cancelled due to funding constraints; • cuts in force structure—13 in- stead of 15 carrier groups (watch for hearings before the Senate Subcom- mittee on Projection Forces and Re- gional Defense); • reduced fleet operating tempo; • shift of ships from active to re- serve status (eight ships already ear- marked during FY 1990 and 1991); • privatization efforts to fund military construction needs.

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Exhibit 6—MSC Ship Maintenance and Repair/Alteration Expenditures (millions of $)

FY 1989

M & R

Approved

Alts

Current Estimate

M & R Alts

FY 1990

Estimate

M & R Alts

FY 1991

Estimate

M & R Alts .9 0 35.4 26.1 75.3 137.7 $ .4 2.9 9.0 6.7 17.1 36.2 i 3.4 0 22.3 28.2 83.7 137.5 5 .2 6.1 8.7 6.6 13.1 34.7 .6 0 25.4 30.4 67.8 124.2 $ .2 4.2 3.1 10.2 16.8 34.5

I 1.4 0 31.4 32.8 73.4 139.0

I .4 0 3.4 12.1 12.7 28.7 0 36.2 .4 .3 .7 138.2 .3 .01 .3 35.0 $173.2 33 2.4 1.3 3.7 128.0 .2 34.7 $162.7 41 4.4 0 4.4 143.4 0 28.0 $171.4 42

Exhibit 7—Navy Active Force

FY 1985—1991

Battle

Forces 435 437 446 437 434 435 425

Support

Forces 50 55 57 60 65 68 70

Mobilization

Forces 14 18 22 25 27 30 35

Total 542 555 568 565 568 574 571

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