Page 37: of Maritime Reporter Magazine (June 1992)

U.S. NAVY SHIPBUILDING

Navy Still Major Source

Of Shipbuilding Work 89 Navy Vessels Under Construction

At End Of 1991

Navy Shipbuilding and Conversion (SCN) appropriation request of $5.32 billion in FY 1993 will fund four

Arleigh Burke Class guided missile destroyers (DDG-51) and two Osprey

Class coastal minehunters (MHC- 51). An advance procurement re- quest of $832.2 million is also in- cluded for long-lead nuclear compo- nents 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.

The U.S. Navy shipbuilding pro-gram continues to be the pri-mary source of ship construction con- tracts, awarding over $2."2 billion during 1991 alone (See Table 3).

As of the first of this year, 89 Navy vessels totaling 980,272 light dis- placement tons were under construc- tion at U.S. private shipyards. Addi- tionally, two fleet oilers displace- ment 22,992 light tons were being jumboized (See Table 1).

Table 2 shows Navy vessel deliv- eries during 1991 by U.S. private shipyards. In all, 14 new construc- tion ships were delivered and three fleet oilers were jumboized.

An examination of the proposed

Fiscal Year 1993, for instance, shows that there is still a significant num- ber of market opportunities for U.S. shipbuilders and vessel repairers, and equipment suppliers. The pro- posed FY 1993budgetproposes fund- ing of $23.3 billion for the construc- tion, conversion and repair of ships, procurement of ships' equipment and research, development, testing, and evaluation.

In addition, the $3.1 billion Na- tional Defense Sealift Fund, pro- posed by President Bush as a means of enhancing the nation's sealift ca- pability, looms as an important op- portunity as well.

Initially, funding would be accom- plished through the transfer of ex- isting shipbuilding appropriations provided by the Congress for sealift totaling about$1.9 billion, as well as an additional $1.2 billion requested in the amended FY 1993 President's budget. The Maritime Administra- tion and the Navy would jointly manage the fund.

Design contracts already have been awarded to nine shipyards, and construction contracts are expected to be awarded as early as the spring of 1993.

New Design From

Newport News

However, with the paring of the defense budget, and in particular

Navy ship construction funding, many of the major U.S. shipbuilders are reassessing their strategy in an effort to maintain or expand their business base.

Last month, for example, it was reported that Newport News Ship- building, the nation's sole builder of aircraft carriers, had introduced a new frigate design to compete on the foreign military market with simi- lar German and French designs (see

May issue of MARITIME RE-

PORTER, "Newport News Markets

Frigate Design To World"). Called the FF-21, the 322-foot combatant would cost about $400 million to construct, some $50 million less than competitive designs.

Seawolf Saved?

As of press time, it appears that as many as two Seawolf Class subma- rines (SSN-21) will be built with funding in the Fiscal Year 1992.

The full Senate approved a bill restoring two SSN-21 attack sub- marines to the budget. The Presi- dent had previously canceled the authorization and funding of three subs.

In the meantime, the House ap- proved its version which would fund the construction of one Seawolf.

The differences in the two bills will be worked out in committee later this year.

Navy Shipbuilding & Conversion

Table 4 shows details of the Navy's

Shipbuilding & Conversion plan from Fiscal Year 1991 to 1993. The

Table 1. U.S. Naval Vessels Under Construction

Symbol Type No. of Vessels

Total Light

Disp. Tons

Private Shipyards New Construction

AOE Fast Combat Support Ship 3 59,100

CG Guided Missile Cruiser 7 66,500

CVN Aircraft Carrier (Nuclear) 3 213,000

DDG Guided Missile Destroyer 16 132,800

LHD Amphibious Assault Ship 4 114,000

LSD Dock Landing Ship 4 46,782

MCM Mine Countermeasures Ship 6 7,572

MHC Coastal Minehunter Ship 7 5,460

SSBN Ballistic Missile Submarine (Nuclear) 6 75,000

SSN-688 Attack Submarine (Nuclear) 15 90,000

SSN-21 Attack Submarine (Nuclear) 1 9,150

T-AGOS-19 Ocean Surveillance Ship (SWATH) 3 7,458

T-AGOS-23 Ocean Surveillance Ship (SWATH) 1 3,800

T-AGS-45 Deep Ocean Survey Ship 1 7,312

T-AGS-51 Coastal Hydrographic Survey Ship 1 1,300

T-AGS-60 Oceanographic Survey Ship 2 6,038

T-AO Fleet Oiler 9 135,000

TOTAL 89 980,272

Private Shipyards Conversions & Modernizations

AO(J) Fleet Oiler (Jumbo) 2 22,992

Source: Shipbuilders Council of America

Table 2. Deliveries By U.S. Private Shipyards During 1991,1,000 Light Displacement Tons & Over ($ In Millions)

Contract Delivery Light Approx.

Shipyard Navy No. Name Vessel Type Date Date Disp. Tons Contract Price

Marinette Marine MCM-4 Champion Mine Countermeasure Ship 12/23/83 1/07/91 1,000 $42.0

Avondale T-AO-194 John Ericsson Fleet Oiler 2/27/86 3/18/91 9,500 96.9

Bath Iron Works CG-64 Gettysburg Guided Missile Cruiser 1/08/86 4/05/91 8,910 193.3

Ingalls Shipbuilding CG-66 Hue City Guided Missile Cruiser 4/16/87 6/28/91 8,910 184.0

Bath Iron Works DDG-51 Arleigh Burke Guided Missile Destroyer 4/02/85 4/29/91 8,300 317.6

Avondale LSD-47 Rushmore Dock Landing Ship 12/10/85 4/26/91 11,100 148.7

GD-Electric Boat SSBN-737 Kentucky Ballistic Missile Sub 8/13/85 6/27/91 12,500 616.4

GD-Electric Boat SSN-757 Alexandria Attack Submarine 11/26/84 6/13/91 6,000 283.0

Newport News SSN-758 Asheville Attack Submarine 11/26/84 8/29/91 6,000 259.8

Trinity Industries AGOR-23 Thomas G. Thompson Oceanographic Research Ship 6/10/88 7/08/91 2,100 20.9

McDermott T-AGOS-19 Victorious Ocean Surveil. Ship (SWATH) 10/31/86 8/13/91 2,486 24.1

Marinette Marine MCM-7 Patriot Mine Countermeasure Ship 8/20/86 8/30/91 1,000 51.7

Trinity Industries T-AGS-51 John McDonnel Coastal Hydrographic Survey 11/10/88 10/25/91 1,300 14.0

Avondale T-AO-196 Kanawha Fleet Oiler 6/16/88 12/09/91 15,000 95.0

TOTAL OF 14 SHIPS 94,106 $2,347.4

Vessel Conversions

Avondale AO(J)-179 Merrimack Fleet Oiler (Jumbo) 7/15/88 4/22/91 11,496

Avondale A0(j)-180 Willamette Fleet Oiler (Jumbo) 7/15/88 9/27/91 11,496

Avondale AO(J)-178 Monongahela Fleet Oiler (Jumbo) 10/04/88 12/21/91 11,496

TOTAL OF 3 SHIPS 34,488

Source: Shipbuilders Council of America

Table 3. Contract Awards Of 1,000 Light Displacement Tons & Over

Placed With U.S. Private Shipyards During 1991

Shipyard Navy No. Name Vessel Type

Contract

Date

Est.

Delivery

Date

Light

Disp. Tons

Approx.

Contract Price

Bath Iron Works DDG-64 Carney Guided Missile Destroyer 1/16/91 9/14/95 8,300 $256.5

Bath Iron Works DDG-66 Gonzalez Guided Missile Destroyer 1/16/91 3/14/96 8,300 256.5

Ingalls Shipbuilding DDG-65 Benfold Guided Missile Destroyer 1/16/91 11/27/95 8,300 254.9

Ingalls Shipbuilding DDG-67 Cole Guided Missile Destroyer 1/16/91 3/25/96 8,300 254.9

Trinity Industries T-AGS-60 Pathfinder Surveying Ship 1/30/91 1/30/94 3,019 49.9

Trinity Industries T-AGS-61 Sumner Surveying Ship 1/30/91 7/30/94 3,019 42.9

Avondale Industries LSD-51(CV) Oak Hill Dock Landing Ship 3/27/91 2/27/95 11,894 135.1

American Ship Bldg. T-AGOS-23 Impeccable Ocean Surveillance Ship 3/28/91 5/28/94 3,800 58.6

Avondale Industries MHC-56 Kingfisher Coastal Minehunter Ship 3/29/91 11/94 780 55.5

Avondale Industries MHC-57 Cormorant Coastal Minehunter Ship 3/29/91 2/95 780 55.5

Intermarine MHC-55 Oriole Coastal Minehunter Ship 4/01/91 9/94 780 71.5

Ingalls Shipbuilding LHD-5 Bataan Amphibious Assault Ship 12/20/91 12/20/96 28,500 731.3

TOTAL OF 12 SHIPS 85,772 $2,223.1

Source: Shipbuilders Council of America

June, 1992 45