Shipbuilding and maritime related news from the Central Gulf Coast region
Thursday, December 26, 2019
Ship cuts; Congress has last word
WASHINGTON – The Defense Department sent a plan to the White House that would cut the construction of more than 40 percent of its planned Flight III Arleigh Burke destroyers from FY 2021-25. The proposal would cut five of the 12 DDGs planned through the future years defense program (FYDP). In total, the plan would cut about $9.4B (8%) out of the total shipbuilding budget, according to a memo from the White House’s Office of Management and Budget (OMB) to DoD that was obtained by Defense News. The memo also outlined plans to accelerate the decommissioning cruisers, cutting Ticonderoga-class ships in the fleet from 13 to nine by 2025. The plan would shrink the fleet to 287 ships from 293, which is in contrast to the Navy’s goal of 355. The OMB memo directs DoD to submit a “resource-informed” plan to get to 355 ships, still a President Trump goal, though it’s unclear how that direction might affect the Navy's math regarding destroyer construction. Huntington Ingalls-Pascagoula, Miss., and Bath (Maine) Iron Works build destroyers, which cost an average of $1.82B apiece, according to the Congressional Research Service. A Trump administration official spoke on background saying the proposal to shrink the fleet was primarily being drive from the Office of the Secretary of Defense, and that OMB is supportive of the President's 355 ship goal. (Source: Defense News 12/24/19) https://www.defensenews.com/naval/2019/12/24/pentagon-proposes-big-cuts-to-us-navy-destroyer-construction-retiring-13-cruisers/ Update2: Sens. Susan Collins (R-Miss.) Angus King (I-Maine) called the proposal “an abrupt reversal of the Navy’s plan to increase the size of the fleet.” The senators noted that Congress will have the final say, and suggested much of the funding is already in the works. (Source: The AP 12/27/19)
