Page 76: of Maritime Reporter Magazine (May 1992)

Read this page in Pdf, Flash or Html5 edition of May 1992 Maritime Reporter Magazine


Although scaled back, the new Fiscal Year (FY) 1993 U.S. Navy budget, if approved, will offer a substantial number of market opportunities for U.S. ship- builders and vessel repairers, ships, equipment suppliers and allied in- dustry support firms. The FY 1993 budget proposes funding of $23.3 billion for the construction, conver- sion and repair of ships, procurement of ships' equipment and research, development, testing, and evalua- tion.

Furthermore, market opportuni- ties could result from the President's proposed National Defense Sealift

Fund (NDSF), which would be cre- ated for the purpose of acquiring and maintaining necessary sealift capability. If approved, the NDSF would initially start out with $3.1 billion in FY 1993.

Table 1—FY 1993 Navy Budget

At A Glance

New Ship Construction $5.32 billion

Ship Repair & Modernization $3.55 billion

RDT&E $8.52 billion

Other Ship Equipment $5.86 billion

Navy Total*— $23.25 billion

Sealift Total-- $3.10 billion

Coast Guard Total-- $3.72 billion

MarAd Total- $0.31 billion

TOTAL MILITARY, GOV'T $30+ BILLION *Note: Approximately 70 percent of Navy ship construction, ship repair and moderniza- tion funds are used by shipyards to purchase equipmentfrom outside suppliers. This amounts to approximately $6.2 billion for FY 1993.

Add to this the $5.86 billion proposed for other equipment, and the total Navy spending for ship equipment in FY 1993 is approxi- mately $12.06 billion. $5.32 Billion

For New Ships

The Navy Shipbuilding and Con- version (SCN) appropriation request of $5.32 billion in FY 1993 will fund six new construction ships. These ships include four Arleigh Burke

Class guided missile destroyers (DDG-51) and two Osprey Class coastal minehunters (MHC-51). An advance procurement request of $832.2 million is also included for long-lead nuclear components in support of a replacement aircraft carrier planned for FY 1995.

The FY 1993 program includes $19.5 million for an oceanographic ship conversion program to convert retiring T-AGOS Class ships to

U.S. NAVY FY 1993

New Budget Proposes Over $23.3 Billion For New Ships, Repair & Ship Equipment

Total Military, Government Maritime Spending Would Exceed $30 Billion of the aircraft carrier USS Ranger (C V-61) and advance planning fund- ing for the FY 1994 inactivation of the nuclear-powered cruiser USS

Long Beach (CGN-9). $8.52 Billion


The appropriation request for

Research, Development, Testing &

Evaluation (RDT&E) is $8.52 bil- lion in FY 1993. Part of the budget reflects an increase of $40 million as a result of the lessons learned from

Operations Desert Shield/Desert


One significant program funded in the FY 1993 budget is the contin- ued development of electric drive.

Program funding has been proposed at $99.2 million, a substantial jump over FY 1992's funding of $39.3 mil- lion.

Additionally, part of the $5.1 bil- lion funding proposed for tactical programs includes the continued development of an advanced am- phibious assault vehicle, electronic warfare systems, and a next genera- tion submarine. $5.9 Billion

Requested For Ship

Support Equipment

The appropriation request of $5.86 billion in FY 1993 will fund the procurement of ship support equipment, communications and electronics equipment, aviation sup- port equipment, ordnance support equipment, civil engineering, sup- ply and command support equipment, and spares and repair parts.

The FY 1993 program includes

Ships Support Equipment budgeted at $1.39 billion. Items procured in this budget activity include propul- sion, safety and pollution control equipment, as well as design efforts associated with the modernization of Navy platforms. The most signifi- cant change from the FY 1992/FY 1993 Amended President's Budget is the transfer to the SCN appro- priation of $17.7 million to procure components associated with the refueling of nuclear-powered sur- face ships.

Communication and electronics equipment is budgeted at $2.13 bil- lion in FY 1993. This Budget Activity

The recently christened USS Cape St. George, Navy's newest cruiser under construction at Ingalls

Shipbuilding division of Litton in Pascagoula, Miss. fulfill oceanographic research re- quirements. Additionally, advance procurement of $6.8 million and $30.4 million is included to support future refueling overhauls of CVNs and CGNs, respectively. The re- maining $814.8 million primarily supports service craft, outfitting, and post delivery requirements.

Significant changes in the FY 1993 budget request from the FY 1992/FY 1993 Amended President's

Budget submission include the de- letion of one Seawolf Class attack submarine (SSN-21), one Dock Land- ing Ship, Cargo Variant, (LSD-CV), one ocean surveillance ship (T-

AGOS), and one oceanographic survey ship (T-AGS). These ships have been deleted in light of fiscal constraints and as a result of re- evaluation of program requirements.

Due to the significant cost, com- plexity and the length of these type availabilities, the appropriation in- cludes refueling overhauls of nuclear carriers and cruisers in order to re- flect these availabilities as a major capital investment. $3.6 Billion

For Ship Repair & Maintenance

Funded at $3.55 billion, the FY 1993 budget reflects a rebalancing of the overall ship maintenance pro- gram. Ship Depot Level Repair funding decreases in FY 1993, as previously deferred maintenance and Desert Storm-related mainte- nance is completed during FY 1992.

FY 1993 funding supports 10 over- hauls, including an extensive COH for the aircraft carrier USS John F.

Kennedy (CV-67), the overhaul of the ballistic missile submarine USS

Ohio (SSBN-726) and the refueling overhaul of two Los Angeles Class submarines. Funding in FY 1993 also reflects the transfer of nuclear cruiser refueling funds from the

Operation and Maintenance account to the Shipbuilding and Conversion account.

FY 1993 inactivation funding at $335 million includes the decom- missioning funds for the retirement 68 Maritime Reporter/Engineering Ne i/vs

Maritime Reporter

First published in 1881 Maritime Reporter is the world's largest audited circulation publication serving the global maritime industry.