Distribution Of Navy Repair Work

Commercial yards have performed more than 60 percent of maintenance availabilities over the past six years. Of the 1,261 scheduled maintenance availabilities performed between FY 1985 and 1990, 799 (63 percent) were contracted to commercial shipyards. The eight naval shipyards performed 373 availabilities (30 percent) and 89 (7 percent) were performed in the Yokosuka, Guam and Subic ship repair facilities. Details are shown in Exhibit 5.

But Navy yards have performed the complex work. Virtually all of the submarine and nuclear surface combatant overhauls are assigned to naval shipyards. These are the big ticket jobs. Commercial shipyard get to work on conventionally powered surface ships. However, even there they find themselves competing with naval shipyard for the more attractive surface combatant overhauls. They also have competition from the Navy-owned ship repair facilities for work on amphibious, auxiliary and support ships.

Fifteen shipyards performed 57 percent of the short term availabilities and 65 percent of the long term availabilities of large surface ships over the past six years.'Small surface ships (e.g., minesweepers, rescue ships) and submarines are excluded from this calculation. Southwest Marine had the leading market share in short term availabilities.

Philadelphia Naval Shipyard performed the largest number of overhauls and other long term availabilities.

Interestingly, the Navy-owned repair facility in Yokosuka was the second largest performer of short term availabilities. Details are shown in Exhibit 6.

Maritime Reporter Magazine, page 34, Jul 1992

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