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SCA Weekly Report | November 9 - 13, 2020

Shipbuilders Council of America

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SCA Weekly Report | November 9 - 13, 2020





EDA transfer: Island Class Patrol Boats to Indonesia


The Navy is proposing the transfer of two Island Class patrol boats (including outfit and equipment) to Indonesia under the Excess Defense Articles (EDA) program. Please reach out to Lee Ann Carpenter by November 19, 2020 with any comments or questions about the EDA transfer.


Lee Ann Carpenter

Bureau of Industry & Security

US Department of Commerce






Senate Appropriations Releases FY21 Spending Bills  

Earlier this week, the Senate Appropriations Committee released the text for all 12 FY21 Appropriations bills.


The measures essentially serve as the Senate‘s opening offer in talks to avoid a shutdown, since the upper chamber has yet to kick off its annual appropriations process. Senate Appropriations markups are unlikely, given the time crunch before the funding deadline.


The bills would fund the government in fiscal 2021, which began on Oct. 1 and runs through Sept. 30, 2021. Congress passed a continuing resolution in September, H.R. 8337, to keep the government open until Dec. 11.


Relevant bills are highlighted below:





The Senate Appropriations Committee allocated a total of $696 billion in total funding for the Department of Defense, including $627.2 billion for base defense, $153 million for related Energy programs and $68.7 billion in Overseas Contingency Operations (OCO) funding.


The recommendation provides $21.35 billion for shipbuilding, an increase of $1.44 billion above the request for total of 9 battle force ships including:

·    1 Columbia-class submarine

·    1 Virginia-class submarine

·    2 DDG-51 Arleigh Burke destroyers

·    1 Constellation Class frigate

·    1 LPD-17

·    1 Expeditionary Fast Transport

·    2 T-ATS fleet tugs


The SCA Summary of the Senate Appropriations Defense mark is HERE. the bill language is HERE; the Committee report is HERE and Committee highlights are available HERE.





The Senate Appropriations Committee allocated a total of $69.8 billion to the Department of Homeland Security, including $12.5 billion to support the U.S. Coast Guard.


The SCA Summary of the Senate Appropriations Coast Guard mark is HERE. the bill language is HERE; the Committee report is HERE and Committee highlights are available HERE.





The Senate Appropriations Committee allocated a total of $74.83 billion to the Department of Transportation, including $1.1 billion to support the U.S. Maritime Administration.


The SCA Summary of the Senate Appropriations Maritime Administration mark is HERE. the bill language is HERE; the Committee report is HERE and Committee highlights are available HERE.




Trump Fires Esper; Appoints Chris Miller as Acting SECDEF

On Monday, President Trump tweeted that Secretary of Defense Mark Esper had been terminated from his position and Trump had appointed Christopher C. Miller as acting Secretary of Defense. Esper became defense secretary in July 2019, after Trump's intended nominee for the job, then-acting Defense Secretary Pat Shanahan, withdrew from consideration amid personal issues involving his ex-wife and children. Trump's first defense secretary, Jim Mattis, resigned in December 2018 over Trump's withdrawal of U.S. troops from Syria. 


Director Miller is the current National Counterterrorism Center Director. Prior to that post, Miller most recently served as Deputy Assistant Secretary of Defense for Special Operations and Combating Terrorism after serving in the Army Reserve from 1983-2014. According to his bio, Director Miller obtained his bachelor's degree in history from the George Washington University in 1987; holds a Master of Arts degree in national security studies from the Naval War College and is a graduate of the Naval College of Command and Staff, as well as the Army War College. 




Galinis: Navy Cutting Maintenance Delays But Will Miss Goal to Eliminate Them in FY21

The Navy successfully cut days of maintenance delay in fiscal year 2020 but will miss its goal to eliminate days of maintenance delay this fiscal year, Vice Adm. William Galinis, the commander of Navy Sea Systems Command, said Thursday. Galinis said at a Defense Writers Group event that the Navy had reduced days of maintenance delay by 40% from FY-19 to FY-20. “Overall, we absolutely made significant improvements in FY-20 compared to FY-19,” he said. The Navy did an analysis of the duration of maintenance availabilities and found that it was not correctly planning availability duration, Galinis said. Moving forward, the Navy is resetting the lengths of its maintenance availabilities. Factoring in this change, the days of maintenance delay decreased by over 80% from FY-19 to FY-20.


RELATED: NAVSEA: Cruiser Modernization Delays Biggest Hurdle to On-Time Maintenance




DCMA to Allow Updates on Contractor Cyber Regime Compliance  

The Defense Contract Management Agency will give contractors the opportunity to make updates on their compliance with NIST Special Publication 800-171 in the Pentagon's Supplier Performance Risk System, according to agency leader John Ellis. Contractors who handle controlled unclassified information will be required to submit a basic assessment of their compliance with 110 controls in the National Institute of Standards and Technology publication starting on Nov. 30 for new contracts. The requirement is part of an interim rule that will implement the Pentagon's Cybersecurity Maturity Model Certification program over the next five years. Ellis is the director of DCMA's software division and he leads the agency's Defense Industrial Base Cybersecurity Assessment Center, which has been conducting voluntary assessments of contractors based on NIST 800-171 for over a year.




Working out the Election’s Impact on the U.S. Maritime Industry

Vice President Biden has been explicit in his support of the Jones Act, which resulted in official endorsements from the International Longshore and Warehouse Union (ILWU), the Marine Engineers Beneficial Association (MEBA), the International Organization of Masters, Mates and Pilots (MM&P), and the Seafarers International Union (SIU). In accepting the endorsement of MEBA and MM&P, Vice President Biden wrote, “Just as unions are essential to the middle class, the U.S.-flag Merchant Marine fleet and the men and women who operate U.S.-flag ships are crucial to America’s national security, our international trade relationships, and economic development. For this reason, I have been a consistent and strong advocate for the Jones Act and its mandate that only U.S.-flag vessels carry cargo in the coastwise trade. As President, I will continue my strong support for the Jones Act.” Accordingly, it would appear that general Jones Act interests are in good hands.




Offshore Wind on the Rise

Offshore wind is making great strides as a potentially significant source of energy for America. In fact, according to the National Renewable Energy Laboratory, offshore wind in the United States has a technical resource potential of over 2,000 gigawatts (GW). Already, over 30 offshore wind projects are in development across the country, while Block Island Wind Farm off the coast of Rhode Island was completed in 2016. The University of Delaware estimates that fixed-bottom offshore turbines, either currently underway or in advanced planning stages off the East Coast, could provide 18.6 gigawatts of electricity between 2020 and 2030. This output is equivalent to that of eighteen average-sized nuclear power plants.


Louisiana Pursuing Wind Energy Opportunities in the Gulf of Mexico

Recently, Louisiana Governor, John Bel Edwards, announced a renewable energy initiative for the Gulf of Mexico, with plans to harness Louisiana’s strengths in offshore energy production for the development of wind power. A single 600-megawatt wind farm in the Gulf would produce an estimated 4,400 jobs and $445 million in economic output during the construction phase, based upon modeling by U.S. Department of Energy’s National Renewable Energy Laboratory. Operations would contribute 150 new permanent jobs, along with an estimated $14 million in annual spending.





Newport News Residents Eligible for Free Fast-Track Shipbuilding and Repair Courses

A fast-track skilled training program for shipbuilding and ship repair is looking for applicants in Newport News to apply. The Hampton Roads Workforce Council is partnering with the Virginia Ship Repair Association (VSRA) to provide free training for residents living in the city who are interested in shipbuilding careers. The program is for people who have faced financial hardship due to the coronavirus pandemic.


Training for the program will cover welding, electrical, sheet metaling, coatings, and outside machinist positions. Upon completion, those enrolled will receive certifications for Occupational Safety and Health Administration (OSHA) 10-Hour Maritime, Emergency First Response and VSRA Marine Trade Training Level I. The deadline to apply is November 21, 2020.


VT Halter Marine Unveils New Plasma Cutting Machine

As Halter Marine prepares for construction of the U.S. Coast Guard’s Polar Security Cutter, the company is acquiring new technologies such as robotic welding machines and the PythonX plasma cutter. Halter Marine unveiled the PythonX at a recent ceremony. The PythonX will replace the traditional hand-cut method of cutting steel. Now, those parts will be cut via computerized numeric control; the CNC process is driven by 3D production design models. Bringing in high-tech tools such as these ensures that Halter Marine will be ready when construction on the PSC begins next year, Bob Merchent, president and CEO of Halter Marine, said in a statement announcing the shipyard’s new piece of equipment.


SeaDream Halts Caribbean Cruise as More Passengers Test Positive for COVID-19

SeaDream Yacht Club has halted a cruise in the Caribbean following several positive coronavirus tests among passengers, the company said on Friday. The SeaDream vessel has returned to port in Barbados and all passengers are currently being re-tested, the privately owned company said in a statement. SeaDream Yacht Club said in September it planned to become the first luxury cruise operator to resume sailing in the West Indies, with 22 voyages planned from November 7 onwards. By contrast, most U.S. cruise operators have suspended their operations until the end of 2020, the Cruise Lines International Association (CLIA) said on November 3. SeaDream Yacht Club, founded by Norwegian investor Atle Brynestad, operates two luxury vessels, each with a capacity of up to 112 passengers.



If you have any questions, please do not hesitate to contact Paula Zorensky on the SCA staff.