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* ** * O. ** * ASSESSMENT OF THE U.S. NAVY SEALIFT SHIP PROGRAM Report No. 7116 -- $1,200 per copy January 1991 Navy has $ 1.3 billion available to procure sealift ships. Construction and/or conversion of these ships represents one of the best near term business opportunities available to shipbuilders, equipment manufacturers and other firms in the maritime industry. A new, in-depth report by IMA assesses Navy's plans and options for sealift ship procurement. The report provides information needed to develop a business strategy and plan of action for involvement in the sealift program. ******************* OUTLINE OF REPORT * * 1. EXECUTIVE SUMMARY Evolution of the Sealift Program Sealift Development Plan Hurdles Remaining Design Features Acquisition Actions Contracting Policies Industry Situation Program Responsibility 2. EVOLUTION OF THE SEALIFT PROGRAM Iranian Hostage Crisis T-ship Program Creative financing Results Period Between Mideast Hostilities Sealift Planning Spending for sealift capability Studies 1990 DOD sealift strategy report Navy position on sealift Impact of funding constraints Congress gets in the act FY 90 sealift funds withheld by DOD Iraq Invasion of Kuwait Changes the Picture House Appropriation Committee Directions Senate Appropriation Committee Directions FY 1991 Defense Authorization Bill The Scene is Set 3. SEALIFT DEVELOPMENT PLAN Available Funds Two Prang Approach Likely Near term program Mid and long term program Cangressionally mandated mobility study Operational requirements Ship Characteristics Improvement Board Defense Department review Sequence of events Next Steps 4. HURDLES REMAINING Defense Spending Constraints The growing budget crunch Budget outlook Reductions in defense spending Impact on Navy shipbuilding Impact on sealift program Other Hurdles Program focus could change Activities could be diverted to R&D effort Navy apathy could hamper program Navy position on long term technology FY 1992 Budget Will Set the Picture 5. DESIGN FEATURES Near Term Ship GD prepositioning ship clone Existing RO/RO acquisition and conversion Mar Ad mill timiss ion ship Matson variant Seaworthy sealift ship LASH conversion Mid Term Design Design characteristics Power and machinery Status Long Term Design Concepts 6. ACQUISITION ACTIONS Available Acquisition Options Standard ship acquisition process Circular of requirements procurement Build or convert/charter Acquisition Procedures Used in Earlier Sealift Programs SL-7 procurement MPS procurement Likely Acquisition Actions in Planned Program Near term sealift ships LASH conversions Mid and long term sealift ships 7. CONTRACTING POLICIES Type Contract to be Awarded Near term ship construction Mid and long term ship design Standards to be Specified Buy American Restrictions Burns-Tollefsan amendment Special ship construction/conversion limitations Component sourcing limitations Sourcing restrictions in previous sealift ship contracts Likely rules for the new sealift program Specialty Metals Restriction 8. INDUSTRY SITUATION Shipbuilders Avondale NASSCO Bethlehem Steel Tampa/AmShip Bath Iron Works Newport News Ingalls Other shipyards Major Component Manufacturers Propulsion plant Gensets Cargo access equipment Cranes 9. PROGRAM RESPONSIBILITY Department of Defense Reporting relationship Joint Chiefs of Staff (J-4) Under Secretary of Defense (Acquisition) DOD Comptroller Department of the Army Army reporting relationships DCSLOG USTRANSCOM Department of the Navy Office of the CNO (OP 04) Assistant Secretary of the Navy (RD&A) Naval Sea Systems Command (SEA 05. PMS 377) Military Sealift Command Maritime Administration 10. APPENDICES A - T-Ship Acquisition Strategy B -Excerpts from the Report of the National Security Sealift Strategy Task Force C - Circular of Requirements for Previous Maritime Prepositioning Ships D - Reaction to Previous Built/Charter Acquisitions As the program is still in a formative stage, advisory memos will be sent to subscribers over the next 12 months. These memos will report and analyze all major sealift program developments as they occur. To order please contact: IMA Associates, Inc. - 2600 Virginia Avenue, NW - Suite 901 - Washington, D.C. 20037 - Telephone (202) 333-8501 - Fax (202) 333-8504. Telephone or telefax orders will be accepted. Circle 221 on Reader Service Card €PQK>