Page 41: of Maritime Reporter Magazine (February 1992)

or stowed in container slots—dis- placing about 120 TEUs. General arrangements of the ship are shown in Exhibit 1.

Congressional Directives

On Use Of Sealift Funds

Congress included language in the

FY 1992 defense appropriations bill which specifies limits on use of funds for purchase or charter of foreign- built ships.

According to Sec. 8117, "Notwith- standing any other provision of law, no more than 15 percent of the funds available to the Department of De- fense for sealift may be used to ac- quire through charter of purchase, ships constructed in foreign ship- yards: Provided, that ships acquired as provided above shall be neces- sary to satisfy the shortfalls identi- fied in the Mobility Requirements

Study: Provided further, that any work required to convert foreign- built ships acquired as provided above to the United States Coast

Guard and American Bureau of Ship- ping standards, or conversion to a more useful military configuration, must be accomplished in United

States domestic shipyards: Provided further, that no foreign-built ships may be acquired, through charter or purchase, until submission of the

Mobility Requirements Study to the congressional defense subcommit- tees."

Congress also included language in the FY 1992 Defense Authoriza- tion Bill which directs the Navy to purchase U.S.-manufactured pro- pulsion machinery, control systems and interior communications equip- ment.

Ready Reserve Fleet

Contrary to initial reports, respon- sibility for custody and maintenance of RRF ships is to remain in the

Maritime Administration. OMB had proposed to shift responsibility for the RRF to DOD—and transfer about half of the MarAd employees to the

Defense Department. This transfer was to be proposed in the FY 1993 budget submission. Aggressive ef- forts by industry and congressional supporters caused OMB to shelve the proposal. This reversal was es- sential to MarAd—as loss of RRF ship custody would have stripped the agency of any material func- tions.

Mobilization Study

The congressionally mandated mobility study is expected to be sub- mitted to Congress within the next several weeks. Planned delivery is timed to coincide with the FY 1993 budget submission. The upcoming report is supposed to be finalized assessment of mobility require- ments—and is to set the overall framework for the future sealift ship program.

Next Steps In Sealift Program

It should be noted that the Navy has not yet received the $1,875 bil- lion earmarked for sealift ship con- struction. These funds have been appropriated—but will not be re- leased by DOD to the Navy until

Milestone I is reached. Before Mile- stone I, DOD must (1) complete the mobility study; (2) incorporate the results into a revised sealift imple- mentation plan; (3) update the mis- sion elements needs statement; (4) complete a study of survivability trade-offs; and (5) complete the con- cept expiration studies of sealift ship alternatives. Milestone I is sched- uled for next spring.

Exhibit 2: U.S. Navy Shipbuilding Program

FY 1992-1997

SHIP TYPE FY 92 FY 93 FY 94 FY 95 FY 96 FY 97

CVN _ _ 1 _

SSN-21 1 1 1 1 2 1

DDG-51 5 4 3 3 4 3

LSD-41 (CV) - 1 - - -

LX - - 1 - 1

MHC 3 2 1 - -

MHC(V) - - 1 2

AR - - - 1 - '

ARS - - 1 - 2 -

TAGOS 1 1 1 2 -

AOE-6 1 - - - -

Ocean. Ships 2 2 2 1 -

LCAC 24 - - - - -

Total Ships 13* 11 10 *FY 92 ships are funded, FY 93-97 ships are planned; excluding LCACs

Source: IMA records

Exhibit 3: Long Term Navy Shipbuilding Requirements (1998-2010)

NO. OF NEW SHIPS REQUIRED

Other Navy Ship

Construction

Navy Plans, Requires 196 New Ships— $175-$190 Billion

Over Next 19 Years

As of press time, Exhibits 2 and 3 show—the actual appropriations for

FY 92—planned shipbuilding for FY 93 through FY 97 and-Navy ship- building requirements for FY 98 through FY 2010. Not including sealift, Congress has appropriated $9.2 billionfor shipbuilding and con- version in FY 1992. These funds will be used to build 13 ships and 24 air cushion landing craft. Details are shown in Exhibit 2—along with the building plan for the next five years.

As shown, the Navy plans to build 46 ships in the five-year period of FY 93 to FY 97.

Exhibit 3 shows long range ship- building requirements beyond 1997.

As indicated, the Navy will require an additional 137 ships between 1998 and 2010 in order to maintain planned fleet levels. This represents an average expenditure of $9 billion to $10 billion per year in 1992 dol- lars. All inclusive, FY 92 through FY 2010, total long-term requirements call for 196 new ships, with pro- jected expenditures estimated be- tween $175 billion and $190 billion.

TYPE SHIP 1998-2004 2005-2010

AGF Command Ship 1 1

AOE Logistics Station Ship 2 5

AOEV Logistics Shuttle Ship 3 7

AR Repair Ship 0 2

AS Submarine Tender 1 2

ATR Rescue and Salvage Ship 0 3

CVN Aircraft Carrier 3 0

DDG Guided Missile Destroyer 14 24

LHD Amphibious Assault Ship 0 3

LX New Amphibious Ship 13 0

MHC Coastal Mine Hunter 2 0

PHM Small Combatant 1 5

SSBN Ballistic Missile Submarine 0 6

SSN Attack Submarine 17 22

Total

Source: Congressional Budget Office 57 (137) 80

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