Page 49: of Maritime Reporter Magazine (February 1991)

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ASSESSMENT OF THE U.S. NAVY SEALIFT SHIP PROGRAM

Report No. 7116 -- $1,200 per copy

January 1991

Navy has $ 1.3 billion available to procure sealift ships. Construction and/or conversion of these ships represents one of the best near term business opportunities available to shipbuilders, equipment manufacturers and other firms in the maritime industry.

A new, in-depth report by IMA assesses Navy's plans and options for sealift ship procurement. The report provides information needed to develop a business strategy and plan of action for involvement in the sealift program. *******************

OUTLINE OF REPORT * * 1. EXECUTIVE SUMMARY

Evolution of the Sealift Program

Sealift Development Plan

Hurdles Remaining

Design Features

Acquisition Actions

Contracting Policies

Industry Situation

Program Responsibility 2. EVOLUTION OF THE SEALIFT PROGRAM

Iranian Hostage Crisis

T-ship Program

Creative financing

Results

Period Between Mideast Hostilities

Sealift Planning

Spending for sealift capability

Studies 1990 DOD sealift strategy report

Navy position on sealift

Impact of funding constraints

Congress gets in the act

FY 90 sealift funds withheld by DOD

Iraq Invasion of Kuwait Changes the Picture

House Appropriation Committee Directions

Senate Appropriation Committee Directions

FY 1991 Defense Authorization Bill

The Scene is Set 3. SEALIFT DEVELOPMENT PLAN

Available Funds

Two Prang Approach Likely

Near term program

Mid and long term program

Cangressionally mandated mobility study

Operational requirements

Ship Characteristics Improvement Board

Defense Department review

Sequence of events

Next Steps 4. HURDLES REMAINING

Defense Spending Constraints

The growing budget crunch

Budget outlook

Reductions in defense spending

Impact on Navy shipbuilding

Impact on sealift program

Other Hurdles

Program focus could change

Activities could be diverted to R&D effort

Navy apathy could hamper program

Navy position on long term technology

FY 1992 Budget Will Set the Picture 5. DESIGN FEATURES

Near Term Ship

GD prepositioning ship clone

Existing RO/RO acquisition and conversion

Mar Ad mill timiss ion ship

Matson variant

Seaworthy sealift ship

LASH conversion

Mid Term Design

Design characteristics

Power and machinery

Status

Long Term Design Concepts 6. ACQUISITION ACTIONS

Available Acquisition Options

Standard ship acquisition process

Circular of requirements procurement

Build or convert/charter

Acquisition Procedures Used in Earlier Sealift Programs

SL-7 procurement

MPS procurement

Likely Acquisition Actions in Planned Program

Near term sealift ships

LASH conversions

Mid and long term sealift ships 7. CONTRACTING POLICIES

Type Contract to be Awarded

Near term ship construction

Mid and long term ship design

Standards to be Specified

Buy American Restrictions

Burns-Tollefsan amendment

Special ship construction/conversion limitations

Component sourcing limitations

Sourcing restrictions in previous sealift ship contracts

Likely rules for the new sealift program

Specialty Metals Restriction 8. INDUSTRY SITUATION

Shipbuilders

Avondale

NASSCO

Bethlehem Steel

Tampa/AmShip

Bath Iron Works

Newport News

Ingalls

Other shipyards

Major Component Manufacturers

Propulsion plant

Gensets

Cargo access equipment

Cranes 9. PROGRAM RESPONSIBILITY

Department of Defense

Reporting relationship

Joint Chiefs of Staff (J-4)

Under Secretary of Defense (Acquisition)

DOD Comptroller

Department of the Army

Army reporting relationships

DCSLOG

USTRANSCOM

Department of the Navy

Office of the CNO (OP 04)

Assistant Secretary of the Navy (RD&A)

Naval Sea Systems Command (SEA 05. PMS 377)

Military Sealift Command

Maritime Administration 10. APPENDICES

A - T-Ship Acquisition Strategy

B -Excerpts from the Report of the National

Security Sealift Strategy Task Force

C - Circular of Requirements for Previous Maritime

Prepositioning Ships

D - Reaction to Previous Built/Charter Acquisitions

As the program is still in a formative stage, advisory memos will be sent to subscribers over the next 12 months. These memos will report and analyze all major sealift program developments as they occur.

To order please contact: IMA Associates, Inc. - 2600 Virginia Avenue, NW - Suite 901 - Washington, D.C. 20037 - Telephone (202) 333-8501 -

Fax (202) 333-8504. Telephone or telefax orders will be accepted.

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