How big a Navy ... and when?
The U.S. Navy continues to be overwhelmingly the largest customer for the U.S. shipbuilding industry. According to the American Shipbuilding Association, which represents the large yards building Navy ships, its member shipyards employ more than 90% of all the workers engaged in ship construction in the U.S. The dollars involved in naval shipbuilding are staggering. Last month, for example, Northrop Grumman Corporation received a $1.386 billion construction preparation contract for work on the new generation nuclear-powered aircraft carrier, CVN 21. Just to put things in perspective, the price of the world's most expensive cruise liner, Queen Mary 2, was $800 million.
The $1.38 billion is just a partial payment on CVN 21. It includes the continued design of the ship's propulsion plant and increased design efforts to meet the requirements of increased sortie rates, manning reductions and weight reductions. Long lead-time materials, such as propulsion machinery, will also be purchased under this contract, and advanced construction will begin for select units. The contract also provides for continued research and development efforts with key suppliers.
Innovations for CVN 21 include an enhanced flight deck, improved weapons movement, a redesigned island, a new nuclear power plant, allowance for future technologies and reduced manning. Construction is expected to begin in 2007 with delivery to the Navy in 2014.
NINE SHIPS IN FY 2005 BUDGET REQUEST
In March, in prepared testimony, John J. Young, Jr., Assistant Secretary of the Navy, Research, Development and Acquisition, noted that the FY 2005 Budget request calls for construction of nine ships: three DDG 51 Class destroyers; one Virginia (SSN 774) class submarine; one LPD 17 class Amphibious Transport Dock ship; two T-AKE Class Auxiliary cargo and ammunition ships; one DD(X); and one Littoral Combat Ship (LCS). This would increase to 38 the total number of ships authorized and under construction, an increase of two ships over the seven ships in the FY 2004 program. In addition, funding is requested for advance procurement of the eighth and ninth Virginia Class submarines, Economic Order Quantity (EOQ) material procurement for the eighth, ninth, and tenth Virginia Class submarines, advance procurement for CVN 21 construction and CVN 70 refueling complex overhaul (RCOH), continued funding for SSGN Engineered Refueling Overhaul (ERO) and conversion, continued funding for LHD 8, funding for Ticonderoga Class cruiser modernization, and the service life extension for five Landing Craft Air Cushion (LCAC) craft.
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