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NAVY UPDATE Exhibit 2—Changes to Proposed FY 1986 Navy Program During Defense Appropriations Process Program Ships Battleship reactivation Mine countermeasure ships (MCM) T-AGOS surveillance ships Special warfare craft— medium Coast Guard vessels Mariner Fund Ship Ordnance and Systems Rolling airframe missile (RAM) Captor mine Seasheds AN/SQR-17 acoustic processors AN/BLD-1 over-the-horizon radar Low cost sonobuoy Microwave landing system Engineering SUBACS development Variable payload design (SSES) Ship contract design Administration Request advanced procurement of long lead items for FY 1987 program to reactivate Wisconsin (BB-64) $334 million for four MCM ships $114 million for two T-AGOS ships $34 million for three craft no funding requested no funding requested $45 million for 117 missiles plus R&D funding of $11 million no FY 1986 funds for MK-60 Captor mines $59 million for sealift support equipment, of which $30 million is for seasheds $15 million for 20 units no funds $11 million for 100,000 units $7 million for 14 units $205 million to continue engineering development $5 million for engineering $89 million for design work House Appropriations Bill transfer of $469 million from prior year funding to begin reactivation of the Wisconsin in FY 1986 funds denied for this program in FY 1986 due to program problems and delivery slippage $90 million for two ships (no mention of new design) $11 million for one craft, directing Navy to award on a competitive basis no funding provided no funding provided $15 million $60 million for 150 MK-60 Captor mines $71 million for sealift support equipment, of which $42 million is for seasheds $22 million for 23 units $12 million $46 million for 150,000 units deferment of this program no further funding of SUBACS, but $60 million for new SSN 21 combat system continued funding denied $80 million Senate Appropriations Bill stay with schedule to reactivate Wisconsin in FY 1987 $197 million for two MCM ships and transfer of one ship from FY 1985 $114 million, which can be used for one SWATH and one monohull T-AGOS $34 million for three craft $20 million for one 140' icebreaking tug and $112 million for 16 110' patrol boats $852 million for a cargo vessel build-lease program defer FY 1986 procurement funding due to program and development uncertainties, cut R&D funding to $4 million no funds in FY 1986 pending Navy internal review of mine inventory requirements $59 million for sealift support equipment, of which $30 million is for seasheds $15 million for 20 units $12 million $46 million for 150,000 units deferment no further funding of SUBACS, but $200 million for new SSN 21 combat system deletes $3 million and recommends slowing program $120 million, including $40 million to fully fund SSN 21 contract design and $5 million for AO jumboization specifically denied EMSEDE funding request, pointing out it will become a $50 million effort $13 million Conference Agreement $469 million to begin reactivation of Wisconsin in FY 1986 $197 million for two MCM ships and transfer of one ship from FY 1985 $114 million to be used for one SWATH and one monohull T-AGOS program funding not provided $20 million for one 140' icebreaking tug and $112 million for 16 110' patrol boats $852 million for a cargo vessel build-lease program no funding provided for RAM procurement, full $11 million approved for RAM R&D work $60 million for 150 MK-60 Captor mines $71 million for sealift support equipment, of which $42 million is for seasheds $22 million for 23 units $12 million $46 million for 150,000 units deferment no further funding of SUBACS, but $200 million for new SSN 21 combat system; conferees criticized Navy and DOD management of SUBACS deletes $3 million, slowing program $120 million, including $40 million to fully fund competitive SSN 21 contract design and $5 million for AO 177 jumboizing design $1 million cut from program budget, but left to Navy discretion to assign cut to EMSEDE $9 million, with $3 million earmarked to develop a stored chemical energy propulsion system Electromagnetic system $1 million for new project cut $1 million from environment engineering start program budget (EMSEDE) Advanced ASW target $13 million for $8 million development Source: House and Senate Appropriations Committee Reports 28 Maritime Reporter/Engineering News