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Exhibit 1—Summary of FY 1986 Legislative Action Affecting Navy Funding (billions of dollars) Administration House Senate Appropriations Budget Appropriations Appropriations Conference Request Bill Bill Agreement Shipbuilding and Conversion $11.4 $10.7 (2.1) $10.7 (1.1) $10.8 Weapon Procurement 5.6 5.2 ( .1) 5.4 ( 0) 5.2 Other Procurement 6.6 6.0 ( .3) 6 7 ( .2) 6.4 Research, Develop- ment, Test and Evaluation 11.3 9.7 ( .3) 10.3 ( .2) 10.1 Ship Maintenance & Modernization 6.1 6.1 6.1 6.1 Note: Figures in parentheses are amounts obtained from transferring unobligated funds from prior year programs. Source: FY 1986 Defense Appropriation Bill Exhibit 3—FY 1986 Ship Overhauls Scheduled For Commercial Shipyards (millions of dollars) Estimated Cost Ship Assigned To Repair Alterations Total Active Fleet Ships: AS 36 Commercial 38.4 13.5 51.9 ASR 13 Commercial 7.3 1.5 8.8 ASR 14 Commercial 7.3 1.4 8.7 CVN 69 Commercial 209.0 103.6 312.6 DD 963 Commercial 27.9 35.7 63.6 LPH 2 Commercial 30.9 10.3 41.2 LSD 38 Commercial 20.1 4.7 24.8 MSO 490 Commercial 2.0 .6 2.6 DD 990 Commercial 22.5 29.1 51.6 DD 991 Commercial 22.5 47.7 70.2 DD 992 Commercial 22.5 39.8 62.3 LSD 40 Commercial 22.5 8.9 31.4 Naval Reserve Ships: MSO 433 Commercial 1.4 .4 1.8 MSO 456 Commercial 1.2 .9 2.1 MSO 511 Commercial 1.4 .7 2.1 MSO 427 Commercial 3.2 1.0 4.2 MSO 437 Commercial 3.2 .3 3.5 MSO 488 Commercial 3.2 .6 3.8 Source: FY 1986 Defense Appropriations Hearings i.1 f If f ENGINEERING VISIONS, INC. The complete supplier of technical services for military and commercial ship alteration support. For more information write or call Jack Bertram, director of business development 1111 Bay Boulevard Chula Vista, CA 92011 619/575-3300 (continued) stead of in FY 1987. The MCM pro- gram was partially deferred due to technical problems and program slippage. A SWATH design has been approved for the T-AGOS pro- gram. The Coast Guard has received funding authority to build an ice- breaking tug and 16 patrol boats. And a Mariner Fund to build and subsequently lease cargo ships was tentatively funded—subject to au- thorizing legislation. In weapons and systems procure- ment, Congress denied funding of the rolling airframe missile. Funds were provided to buy 150 MK-60 Captor mines. The funding for seasheds was increased $12 million from the $30-million budget re- quest. Important changes were made in engineering and design programs. Funds for the SUBACS program were denied due to "severe technical and management problems (which) have significantly increased costs, delayed schedules, and degraded planned system capability." IBM is the prime contractor in the SUBACS program. In place of the $205 million requested by Navy for further SUBACS development, Congress provided $200 million for a new SSN-21 combat system pro- gram and strongly criticized Navy and DOD's management of the SUBACS program. These and other FY 1986 program changes are summarized in Exhibit 2. Ship Maintenance and Modernization Congress appropriated $6.1 bil- lion this year for ship maintenance and modernization. This is the full amount requested by the Adminis- tration. It will provide funding for 35 active fleet ship overhauls, six naval reserve ship overhauls and 142 short term ship maintenance jobs. Exhibit 3 lists the active and reserve fleet overhauls scheduled for commercial yards in FY 1986. The dollars shown are Navy's estimate of the cost to complete each job. The Congress also issued a num- ber of policy directions concerning homeport policy, yard certification and number of ships to include in this year's public/private yard com- petition. Future Navy Programs On 3 February the President will send his FY 1987 budget request to Congress. It is expected to call for a 3 percent real increase in defense spending next year. The deficit targets set by Gramm- Rudman, and more generally the growing concern over continued def- icit spending, are likely to impact future Navy programs. Look for elimination and stretch out of mar- ginal procurement programs—such as support ships. Navy will likely reduce operational tempo in an ef- fort to save money, with ships spending less time at sea. International Maritime Associates, Inc. is a management consult- ing firm. It specializes in market research and corporate planning. Among its clients are electronics and machinery manufacturers, ship- builders, and systems integrators. IMA as part of its activities occasion- ally prepares a special analysis of high visibility markets. The firm has recently prepared in-depth analyses of U.S. Navy ship procurement and Navy ship maintenance and modernization: • U.S. Navy Overhaul Market—175 pages, updated through Jan- uary 1986 • U.S. Navy Ship Procurement—215 pages, updated through February 1986 These reports focus on market opportunities, contracting procedures and points of contact. They provide invaluable information for planning and implementing marketing efforts. Each report is updated every three months, ensuring the data remain current. The reports—including four quarterly updates—are available to subscribers for $480 each from Inter- national Maritime Associates, 1800 K Street, N.W., Washington, D.C. 20006, phone (202) 296-4615, telex 643215. Navy Contracts Totaling $629.2 Million Awarded To Bath And Ingalls Yards Bath Iron Works Corporation of Bath, Maine, has been awarded a $386.6-million Navy contract for the construction of two Aegis guided- missile cruisers (CG-63 & 64) of the Ticonderoga Class, and Ingalls Shipbuilding of Pascagoula, Miss., was awarded $242.6 million to build one ship (CG-65) of the same class. Bath now has four Aegis cruisers under contract, and recently launched its first, the Thomas S. Gates (CG-51). These ships are 563 feet long, with a beam of 55 feet and displacement of 9,600 tons. With the latest contract, Ingalls has eight of these ships on order, and has delivered four others. The Aegis weapons system, the heart of the Ticonderoga Class fight- ing capability, is a significant ad- vance in fleet anti-air warfare. Fixed array radar antennas, mounted on the four sides of the ship's super- structure, enable the crew to "see" in all directions simultaneously. The system can simultaneously fire and direct more missiles at more targets with greater accuracy than any other system. Circle 320 on Reader Service Card 30 Maritime Reporter/Engineering News
