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U.S. NAVY (continued) lem. As shown in Exhibit 7, the buy- ing spree over the past ten years has Type Ship Rate Recoverable: Cargo POL Afloat preposi- tioning/FSS Special Mission Fleet Auxiliary Subtotal Reimbursable: Fleet Auxiliary .2 Special Mission 0 Subtotal .2 Total 137.9 $174.1 Number of Overhauls Scheduled Source: Military Sealift Command Fiscal Strategic Year Forces 1985 43 1986 45 1987 43 1988 43 1989 42 1990 41 1991 41 Source: Department of the Navy resulted in a larger fleet. The active force has grown from 545 ships in 1985 to 568 ships this year. Growth in fleet size will continue over the next several years—despite plans to decommission 39 ships in FY 1990 and 1991. These ships need to be main- tained. Yet the funds available for such maintenance are increasingly difficult to find. This dilemma prob- ably cannot be resolved internally by Navy. There are too many special interest groups with which to con- tend. Proponents of aircraft car- riers, the new SSN 21 submarine, Aegis destroyers, etc. will continue to resist cuts in the ship construc- tion budget. Reducing funding for ship maintenance—particularly non-nuclear surface ship mainte- nance—will continue to be a path of least resistance. Eventually the Congress, the GAO, perhaps the DOD Inspector General's office will examine what is taking place. There will be efforts to require Navy to perform more maintenance. Some modest in- creases in funding and shifts in piro- rities may result. But don't expect major shifts until a catastrophe oc- curs. Things To Look For Here's a short list of possible actions to look for over the next 12 to 24 months which affect ship maintenance: • cancellation of the Enterprise (CVN 65) refueling overhaul and decommissioning of the ship—de- spite the sunk cost already invested in this effort; • continued substitution of short term maintenance availablilities for overhauls (bad news for firms out- side homeport areas); • accelerated retirement of Ad- ams/Farragut (DDG 2/37) class de- stroyers; • cuts in purchases of replace- ment and modernization compo- nents; • smaller work packages as planned alterations are cancelled due to funding constraints; • cuts in force structure—13 in- stead of 15 carrier groups (watch for hearings before the Senate Subcom- mittee on Projection Forces and Re- gional Defense); • reduced fleet operating tempo; • shift of ships from active to re- serve status (eight ships already ear- marked during FY 1990 and 1991); • privatization efforts to fund military construction needs. Want Further Details? IMA publishes two series of quar- terly business reports on the U.S. Navy. Each 50+ page report pro- vides details on upcoming business opportunities and assesses develop- ments which impact industry. • U.S. Navy Ship & Equipment Procurement Quarterly Report Series No. 7103 $480.00 for four reports • U.S. Navy Ship Maintenance and Modernization Quarterly Report Series No. 7104 $480.00 for four reports Business planners and marketing executives will find the information invaluable. To order please call or write: IMA Associates, Inc. — 835 New Hampshire Ave., NW — Washington, DC 20037 — Phone: (202) 333-8501 - Fax: (202) 333-8504. Exhibit 6—MSC Ship Maintenance and Repair/Alteration Expenditures (millions of $) FY 1989 M & R Approved Alts Current Estimate M & R Alts FY 1990 Estimate M & R Alts FY 1991 Estimate M & R Alts .9 0 35.4 26.1 75.3 137.7 $ .4 2.9 9.0 6.7 17.1 36.2 i 3.4 0 22.3 28.2 83.7 137.5 5 .2 6.1 8.7 6.6 13.1 34.7 .6 0 25.4 30.4 67.8 124.2 $ .2 4.2 3.1 10.2 16.8 34.5 I 1.4 0 31.4 32.8 73.4 139.0 I .4 0 3.4 12.1 12.7 28.7 0 36.2 .4 .3 .7 138.2 .3 .01 .3 35.0 $173.2 33 2.4 1.3 3.7 128.0 .2 34.7 $162.7 41 4.4 0 4.4 143.4 0 28.0 $171.4 42 Exhibit 7—Navy Active Force FY 1985—1991 Battle Forces 435 437 446 437 434 435 425 Support Forces 50 55 57 60 65 68 70 Mobilization Forces 14 18 22 25 27 30 35 Total 542 555 568 565 568 574 571 At Your Deck and Call When you want responsive, reliable marine cus- tomer service, call TANO Marine Systems or our newly acquired General Regulator Divi- sion. Our engineers specialize in solving any electronic, electrical or pneumatic problems with ship machinery, propul- sion or control systems. Our field engi- neers are qualified to service a wide variety of marine hardware. Call on us for immediate service. TOO MARINE SYSTEMS, INC. to order spare parts from our large inventory, to initiate our depoi service for factory repair of components, or for a cost-effective pre- ventive maintenance contract. Whether your ship is in home port or overseas, the service experts from TANO and our General Regulator Division can be on deck within hours. All it takes is a call. NEW ORLEANS: (504)254-3500 DALLAS: (2)4)458-6220 SEATTLE: (206) 391-6095 24-HOUR SERVICE: (504) 254-3515 Circle 308 on Reader Service Card 28 Maritime Reporter/Engineering News