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Exhibit 4 FY 1984 FY 1984-1986 MSC Funding For Ship Maintenance and Repair/Alterations (dollars in thousands) FY 1985 FY 1986 Estimate Approved Current Estimate Estimate Category/Ship Type M&R Alterations Total M&R Alterations Total M&R Alterations Total M&R Alterations Total Recovered through per diem rates CARSS $19,813 $414 $20,227 $15,903 $847 $16,750 $8,186 $539 $8,725 $5,759 $639 $6,398 POL 37,210 3,915 41,125 49,043 11,865 60,908 20,834 5,484 26,318 25,303 3,343 28,646 Rapid Deployment Force 5,354 822 6,176 13,435 2,420 15,855 9,223 4,003 13,226 30,554 14,759 45,313 Scientific Support 35,191 5,374 40,565 47,625 13,291 60,916 36,809 9,519 46,328 37,375 12,591 49,966 Fleet Auxiliary 69,554 9,285 78,839 100,952 28,978 129,930 86,067 28.917 114,984 97.807 38,564 136,371 Subtotal 167,122 19,810 186,932 226,958 57,401 284,359 161,119 48,462 209,581 196,798 69,896 266,694 Reimbursable Scientific Support 316 14,822 15,138 0 0 0 0 0 0 0 0 0 Fleet Auxiliary 32,156 597 32,753 34,168 0 34,168 33,422 1,482 34,904 2,772 57 2,829 Subtotal 32,472 15,419 47,891 34,168 0 34,168 33,422 1,482 34,904 2,772 57 2,829 Grand Total $199,594 $35,229 $234,823 $261,126 $57,401 $318,527 $194,541 $49,944 $244,485 $199,570 $69,953 $269,523 Number of Overhauls 32 50 35 42 Sources: Military Sealift Command Percentage of Fleet Homeport as of Nov. 1983 Norfolk 24 San Diego 0 Charleston 13 Mayport 7 Los Angeles 6 Another Navy policy has been to lengthen the cycle between over- hauls. To maintain ships between these extended overhauls more work is being performed during short se- lected restricted availabilities (SRA's). As a result yards in these five areas have a unique opportuni- ty to capture most of the growing amount of short term maintenance jobs. Navy yard/commercial yard work split—There is continuing pressure to increase the share of ship maintenance expenditures that commercial yards receive. Presently commercial yards get about 35 per- cent of the total ship maintenance funding. Congress (particularly the House) has been encouraging Navy to raise the commercial yard share to 40 percent. Additional work would be available for commercial bidding should the target percent- age be raised. A test program is planned this year to compare naval and commer- cial shipyard performance on Navy ship overhauls. Two LPD overhauls will be awarded on the West Coast—one each to a naval and commercial shipyard. Technical and cost performance will be compared. A similar test is planned using two FF 1052 overhauls on the East Coast. be gone again on schedule. With Pennsylvania Shipbuilding, you'll get no talse promises or lame excuses. We have the facilities to handle several ships at once. So you never have to wait. Our guarantee holds for all sizes and types of ships. We can dock a 400,000-ton tanker and a 5000-ton barge at the same time. We even use our 800-ton floating crane to lift tugs and small barges directly on to blocks set up Circle 140 June, 1985 on the river bank. We're Pennsylvania Shipbuilding. Write: Ship Repair Sales Department, Pennsylvania Shipbuilding Company, P.O. Box 442, Chester, PA 19016. Call: (215) 499-2160 Telex: 834226 (PENN SHIP CHER). Pennsylvania ^Shipbuilding on Reader Service Card IMA Detailed Assessment of Future Navy Market Readers interested in knowing more about the future Navy market may wish to obtain two reports recently prepared by IMA: • U.S. Navy Procurement— published in May 1985, this 220 page report is a professional, thor- ough assessment of the future $40 billion annual U.S. market for ships, ship systems and weapons. • U.S. Navy Ship Overhaul Market—published in July 1984 (updated through June 1985) this 175 page report provides a compre- hensive, professional assessment of the future $6-8 billion market for Navy ship maintenance and altera- tion. Each of these reports (including four quarterly updates) is available for $480. If ordered together both are available for $750. To order please contact International Mari- time Associates, Inc., 1800 K Street N.W., Washington D.C. 20006. Telephone (202) 296-4615; telex 64325; telecopier (202) 293-7508. to turn your ship around in a hurry.