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Navy Shipbuilding — Update (continued from page 16) Appropriations bills are in com- mittee mark-up process. A Continu- ing Resolution will provide defense funding until November 15 at FY 1983 levels. This action will allow further time for passage of FY 1984 Appropriations. Another Continuing Resolution will be necessary, should Congress be unable to meet the No- vember 15 deadline. Congress trimmed Navy budget request by almost 5 percent, reflect- ing across-the-board cuts imposed by the First Concurrent Budget Resolu- tion. Exhibit I presents a breakdown of the requested versus authorized levels of Navy spending. Impact on Navy Shipbuilding Program Congress has authorized new con- struction of 16 ships, conversion of five others, and acquisition of one from the British Navy in FY 1984. This program differs from the Administration request by: • eliminating construction of one fleet oiler (TAO) • reducing the number of mine counter measures ships (MCM) from four to three • adding one guided missile frig- ate (FFG) Exhibit 2 compares the final Congressional authorization for Navy shipbuilding with the Administra- tion's request. CG-47—Aegis Guided Missile Cruiser Construction of three CG-47's has been authorized. This action brings to 12 the number of CG- 47's authorized, with another 11 scheduled for FY 1985-88. A total of 27 CG-47's are planned. DDG-51—Arleigh Burke Class Guided Missile Destroyer The DDG-51 program has drawn considerable Congressional atten- tion. Issues involve estimated cost of each ship ($700 million to in ex- cess of $1 billion), growth margins for future equipment, capabilities of the design, and requirements to be met by the ships. Specific ques- tions have arisen over the lack of LAMPS III ASW helicopter facili- ties and inability to install Ran- kine Closed Energy Recovery (RACER) System in the first eight ships. Congress has requested a report from Navy addressing these issues and questions by November 1983. FFG-7—Guided Missile Frigate Congress added an FFG-7 class ship to the Navy program. This ac- tion was taken because: • it was felt the ship could be acquired relatively cheaply since the class is already in series production • the additional ship would help preserve jobs in the shipbuiling sector Congress reversed the Adminis- tration, stating that Navy has a validated requirement for more FFG-7's. Congress pointed to the distribution of recent Navy con- tracts (and lack of new commercial orders), stating this situation threatens to increase unemploy- ment in shipbuilding. LHD-1—Amphibious Assault Ship Congress authorized the $1.4 billion requested for this modified version of the LHA design. Con- tract will be awarded to Ingalls on a sole source basis. LPD (SLEP) Authorization for advance pro- curement funding of this program was denied. Navy planning has moved this program back by one year. Advance procurement fund- ing will now be requested for FY 1985. The first actual SLEP is now scheduled to begin in FY 1986. LSD-41—Landing Ship Dock Multiyear procurement of five ships over the next three years has been authorized. The Senate initially rejected multiyear pro- curement on grounds that budget constraints would prohibit full funding of the planned procure- ment. However, cost savings at- tributed to the multiyear program convinced the conference commit- tee of the advantages of acquiring the ships under multiyear con- tracting. CV (SLEP) Advance procurement funding for the FY 1985 SLEP of U.S.S. INDEPENDENCE was authorized in full. BB—Battleship (Reactivation) Advance procurement funding for reactivation of U.S.S. MIS- SOURI was authorized in full. The currently active battleship, U.S.S. NEW JERSEY has demon- strated a wide range of capabili- ties achievable through reactiva- tion and modernization. However, questions have been raised with regard to the ship's role to support amphibious operations versus use as a strategic cruise missile plat- form. While continuing to support the program, Congress has re- quested a better definition of the role the BB will play in the fleet. SSBN—Trident Ballistic Missile Submarine Authorization for construction of one OHIO class submarine was approved. Revised cost estimates submitted by Navy indicated that (continued on page 20) Program/Budget Item Exhibit I Procurement Authorizations for FY 1984 Navy Programs (in millions of dollars) Administration Congressional Request Authorization Aircraft Procurement (APN) Weapons Procurement (WPN) Shipbuilding & Conversion (SCN) Other Procurement (OPN) Procurement, Marine Corps (PMC) Total $11,127 4,029 12,699 5,002 1,852 $34,709 $10,638 3,903 12,045 4,498 1,805 $32,889 Difference $-489 -126 -654 -504 -47 $-1,820 Source: Department of Defense Authorization Act, 1984 Conference Report, Aug. 15, 1983. Exhibit 2 Navy Shipbuilding and Conversion Authorizations, FY 1984 Budget Item Administration Request Congressional Authorization Difference Qty Amount1 Qty Amount' Qty Amount1 (in millions) (in millions) (in millions) CG-47 3 $ 3,435.0 3 $ 3,397.4 0 $ -37.6 Aegis Guided Missile Cruiser DDG-513 0 99.5 0 79.0 0 -20.5 Guided Missile Destroyer FFG-7 0 0 1 300 + 1 + 300.0 Guided Missile Frigate LHD-1 1 1,379.7 1 1,379.7 0 0 Amphibious Assault Ship LPD (SLEP)3 0 13.8 0 0 0 -13.8 Amphibious Service Life Extension Program LSD-41 1 509.0 1 509.0 0 0 Landing Ship Dock CV (SLEP)3 0 95.9 0 95.9 0 0 Carrier Service Life Extension Program BB3 0 57.7 0 57.7 0 0 Battleship (reactivation) SSBN 1 1,832.1 1 1,759.0 0 -73.1 Trident Ballistic Missile Submarine (nuclear) SSN-688 3 2,042.4 3 2,042.4 0 0 Attack Submarine (nuclear) MCM-1 4 381.0 3 301.0 -1 -80.0 Mine Countermeasures Ship MSH-1 1 65.0 1 65.0 0 0 Minesweeper Hunter T-AO 3 $ 524.6 2 $ 365.4 -1 $-159.2 Fleet Oiler T-AK3 0 .9 0 .9 0 0 Cargo Ship (conversion) T-AGS3 0 34.5 0 34.5 0 0 Ocean Survey Ship (conversion) T-AKR 4 246.5 4 246.5 0 0 Fast Logistic Ship (conversion) T-AH 1 260.0 1 260.0 0 0 Hospital Ship (conversion! T-AFS 1 16.1 1 16.1 0 0 Combat Stores Ship (acquisition) Service Craft4 — 119.3 — 119.3 — 0 Landing Craft4 — 15.0 — 15.0 — 0 LCAC5 6 161.1 6 161.1 0 0 Strategic Sealift5 9 31.0 9 31.0 0 0 Other2 — 1,378.7 — 809.5 = -569.2 Total 23 $12,698.8 22 $12,045.4 -1 $-653.4 Notes: Amounts shown include advance procurement. includes outfitting, post delivery, cost growth, escalation, transfers, and inflation adjustment. 3Denotes advance procurement for contract award in FY 1985. 4Quantity not specified. 5Quantity not included in total. Source: Department of Defense Authorization Act, 1984 Conference Report, Aug. 15, 1983. November 15, 1983 19
