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SCA Weekly Report | January 10 - 14, 2022

Shipbuilders Council of America

20 F Street NW, Suite 500

Washington, DC 20001




SCA Weekly Report | January 10-14, 2022





Master Boat Builders on 'Dirty Jobs' with Mike Rowe


Tune in to Dirty Jobs which returns on Sunday January 16 at 8 EST on Discovery and discovery+ to watch host Mike Rowe work alongside the shipbuilders at Master Boat Builders. While learning the ins and outs of building a workboat, Dirty Jobs highlights the men and women of our industry and the importance of the work they do every day to keep our economy moving. Watch on your local Discovery channel or online at https://go.discovery.com/tv-shows/dirty-jobs 



2022 SCA Winter Meeting


February 2-3, 2022

The Biltmore Hotel

Coral Gables, FL


The 2022 SCA Winter Membership Meeting will be held in-person on February 2-3, 2022.The cost to attend the meeting is $550.


SCA Board and Committee Meetings will be held on Wednesday, February 2, 2022 and SCA Staff Reports, the Guest Speaker Panel Sessions, and golf tournament will be held on Thursday, February 3, 2022.


The cost to play in the golf tournament is $200 and the cost to rent clubs for the golf tournament is an additional $80.


Confirmed Speakers for the Panel Sessions include:


Government Shipbuilding Panel

  • Rusty Murdaugh, President, Austal USA
  • Richard Hunt, President, Fincantieri Marinette Marine
  • Ben Bordelon, President & CEO, Bollinger Shipyards
  • Joey D’Isernia, President, Eastern Shipbuilding Group
  • Eric Crooker, Vice President of Contracts & Pricing, Ingalls Shipbuilding


Commercial Shipbuilding Panel

  • Garrett Rice, President, Master Boat Builders
  • Gavin Higgins, CEO, Nichols Brothers Boat Builders
  • Chris Allard, CEO, Metal Shark
  • Lee Stokes, Chief Operating Officer, Alabama Shipyard


Vessel Owner & Operator Panel

  • Richard Balzano, CEO and Executive Director, Dredging Contractors of America 
  • Fred Paup, Chairman of the Board & EVP, Manson Construction Co.
  • Jeff Dixon, President, TOTE Services
  • Bill Hanson, Senior Vice President of Market Development & Government Affairs, Great Lakes Dredge & Dock Company, LLC



SCA has secured a room block at The Biltmore Hotel for the Winter Meeting. The rate for the room block is $379/ night.

To book a hotel room under the SCA rate, please click HERE


You will also need to enter the group code on the hotel reservation landing page. The group code is: 6899



2022 SCA Winter Membership Meeting Sponsorships Now Available


SCA is offering sponsorship opportunities for the 2022 SCA Winter Membership Meeting. Items available for sponsorship include the winter meeting panel sessions, golf tournament events, and more.


Additional information on the sponsorship opportunities can be found HERE.


Please reach out to SCA staff if you wish to sponsor any of the events, or if you have any questions.



Registration Now Open: 2022 National Ship Repair Industry Conference (NSRIC)


March 21-24, 2022

The Westin Crystal City

Arlington, VA


The 2022 National Ship Repair Industry Conference (NSRIC) will be held in-person on Mach 21-24, 2022.The cost to attend the meeting is $550.


NSRIC 2022 is only open to SCA members and Ship Repair Association Members and is closed to the press.


Confirmed Government Speakers for Tuesday Include:


  • Vice Chief of Naval Operations, Admiral William Lescher
  • Vice Admiral Roy Kitchener
  • Vice Admiral William Galinis
  • Rear Admiral Eric Ver Hage
  • Rear Admiral Carola List, USCG
  • ASN RDA, Frederick (Jay) Stefany



A room block has been secured for this event at the Westin Crystal City. To book a room at the negotiated rate of $268/ night, click HERE.




Spending Talks Progress; No Deal Reached Yet to Avoid Year-Long CR

This week, leaders from the House and Senate Appropriations committee met to hash out a government funding deal, aiming to reach agreement by the Feb. 18th shutdown deadline. The top House and Senate appropriators from each party talked for an hour yesterday, leaving without a deal. Republicans continue to demand that Democrats set aside new policy riders and include longstanding measures such as the Hyde amendment, which restricts federal funding for abortion, before discussing funding levels. Democrats say they should start with funding levels before negotiating policy riders. That months-old disagreement wasn’t settled yesterday, though negotiators said the conversation was productive.


The Pentagon's top budget official told lawmakers on Wednesday that billions of dollars in purchasing power would be lost if the military is forced to operate under stopgap funding for the rest of the fiscal year.


During a hearing on the effects of continuing resolutions on Defense Department programs, Comptroller Mike McCord told House appropriators that while overall Pentagon funding under the current patch clocks in roughly $8 billion below the level requested by the administration, the actual hit would be triple that amount, approximately $24 billion.


Appropriators agreed that continuing resolutions are harmful to the military, yet are still at loggerheads over funding the government for the rest of the year. But defense may be the least controversial aspect of the partisan budget brawl.


That's because lawmakers in both parties have largely agreed that Pentagon funding should be higher than what Biden requested. Defense policy legislation enacted last month endorsed a $25 billion boost to Biden's defense budget, but the increase won't become a reality until appropriators match it with their own bill.




Rogers Announces New Readiness Ranking Member

This week, House Armed Services (HASC) Ranking Member Mike Rogers (R-AL) announced changes to Republican subcommittee leadership on the committee. Rep. Doug Lamborn (R-CO) will serve as the Ranking Member of the subcommittee on Strategic Forces and Rep. Michael Waltz (R-FL) will serve as the Ranking Member of the subcommittee on Readiness.  




This week, the Surface Navy Association (SNA) hosted its first annual symposium in-person since 2019. With much of Navy and Coast Guard leadership participating in the event, there are several stories of importance to come out of the event:


CNO Blames Culture of Poor Self-Assessment for Major Navy Problems

The reluctance across the Navy to be self-critical and a tendency to hide mistakes and minimize flaws have resulted in systemic problems in the service and stalled efforts to improve, Chief of Naval Operations Adm Mike Gilday said on Tuesday.


“We have seen examples of significant organizational drift – instances of unsatisfactory unit performance, late completion of shipyard maintenance availabilities and failure to deliver game-changing, innovative technologies and concepts at pace.”


Gilday highlighted the inconsistency in performance from unit to unit. Those faults contributed to public failures, like the 2020 fire aboard the former USS Bonhomme Richard (LHD-6), which showed that sailors and their commanders weren’t ready to fight a fire on a ship undergoing maintenance.


Gilday’s proposed fix is to have commanders and sailors be more realistic about their performance and not ignore or minimize problems.


SWOBOSS Unveils New Surface Vision; Announces New USV Command

Naval Surface Forces commander Vice Adm. Roy Kitchener on Tuesday formally unveiled a new strategic vision for the surface force.


Surface Warfare: The Competitive Edge,” lays out multiple lines of effort to have more ships ready for tasking and do a better job training its sailors. Kitchener declined to provide the number of ready ships the Navy needs, arguing the service has more work to do. But he said the number is helping the Navy get a better picture of the surface fleet enterprise, from ships to spare parts.


While the Navy uses OFRP to generate Navy tasking for the combatant commanders, Kitchener said he wants the surface fleet to evaluate what assets would be available for other tasking.


Kitchener also noted that the Navy will stand up Unmanned Surface Vessel Division One this summer to shape the service’s decision-making process before the acquisition of USVs.


“Division One will be focused exclusively on USV experimentation and fleet advocacy with our program,” he said. “The future of our service force is a formidable manned and unmanned team where unmanned elements enhance the decision speed and lethality of our commanders and surface forces.”


USV Division One will report to Surface Development Squadron 1, operating out of Port Hueneme, CA. The first two Overlord vessels, Nomad and Ranger, were at sea last month prototyping USV kill chains as a part of Exercise Steel Knight, Kitchener said, and 5th Fleet’s Task Force 59 has been experimenting with small and agile unmanned systems to achieve persistent maritime domain awareness.


RELATED: SCO ends Project Overlord, Shifts Unmanned Vessels to Navy


Navy Targeting April Construction Start for Lead Frigate

The Navy is targeting an April start of construction for the first Constellation-class frigate but won't begin construction before the design is fully ready, Capt. Kevin Smith, the frigate program manager, said Tuesday.


“As I said, we’re coming through design, so there could be some risk to that. One thing we want to make sure is we don’t start building a ship where the design is not mature. But right now, we’re looking at this year,” Smith said.


Smith said the program is aiming to conduct its critical design review in the second quarter of fiscal year 2022 and the production readiness review in the third quarter of FY-22.


“The biggest thing about a lead ship class is you’ve got to get the design right before you start building it,” he said. “So that’s our mantra.”


Navy Unveils Next Generation DDG(X) Warship Concept with Hypersonic Missiles, Lasers

The Navy wants its next warship to fire hypersonic missiles and lasers that would be ten times more powerful than the service’s existing laser weapons, according to the most detailed outlook to date of the DDG(X) next generation warship issued by the service.


The warship, the largest the Navy’s attempted in more than 20 years, is designed to provide the service with the power to drive a new generation of directed energy weapons and high-power sensors that will follow the Navy’s current fleet of Arleigh Burke-class guided-missile destroyers. The warship is estimated to start construction in 2028.


The Navy is developing the DDG(X) using the combat system developed from the Flight III Arleigh Burkes that incorporated the new SPY-6 air search radar and the Baseline 10 Aegis combat system. You can view the presentation from the DDG(X) program manager HERE.


RELATED: Navy Unveils Latest Concept for Future Destroyer, DDG(X)


HASC Lawmakers Forecast ‘Bloodbath’ for Navy FY23 Budget

Two House Armed Services Committee lawmakers forecast a difficult upcoming budget cycle for the Navy and criticized the service for not coming to Congress with a strategy to build a fleet that can counter China.


Reps. Elaine Luria (D-Va.) and Mike Gallagher (R-Wis.) voiced concern over the Navy’s impending Fiscal Year 2023 budget submission.


“Everything I hear from inside the building, not with details, is that the next one is actually going to be worse,” Luria said of the Fiscal Year 2023 budget, comparing it to the FY 2022 plan that asked for fewer battleforce ships than previously projected.


“And it really frightens me. It frightens me when we have … increased aggressive actions of China against Taiwan, not only in rhetoric, but their sorties,” she added.


Gallagher echoed Luria’s concerns and said he has heard similar rumblings about the budget slated for release in the coming months.


“It could be a bloodbath for the Navy,” he said.


Luria, a former nuclear-qualified surface warfare officer, argued the threat from China means more resources should get allocated to the Navy and the Air Force for a conflict in the Indo-Pacific theater and that the Pentagon should depart from the traditional even budget split between the Army, Air Force and Navy. Gallagher said that when asked what legacy systems should be divested, Pentagon officials cite both Army force structure and Pentagon civilian force structure.


The two lawmakers, who both sit on the HASC seapower and projection forces subcommittee, also expressed concern over the potential for a year-long continuing resolution for FY 2022. Gallagher described CRs as “incredibly damaging,” while Luria said a year-long CR would have “disastrous” consequences for the Navy.


Navy’s Amphib Force Structure Study Could be Completed by End of March

The Navy will complete its force structure assessment on amphibious warships by the end of March, Capt. Cedric McNeal, amphibious warfare program manager, said on Wednesday.


The force structure assessment will evaluate the Navy’s requirements for quantities of amphibs in the future, McNeal said. “That study will inform where we go with future procurements and acquisition strategies to ensure we buy those remaining platforms in the most affordable and smartest way possible,” he said.


The fiscal year 2022 National Defense Authorization Act authorized $250 million for long-lead-time material for LPD-32, but Ingalls wants to see LPD-32 fully funded in the FY-23 budget.


Ship to Shore Connector Program to Reach Four Deliveries Per Year

The Navy expects to deliver four Ship-to-Shore Connector amphibious craft per year, Capt. Scot Searles, SSC program manager, said on Wednesday.


The program is positioned “very well” to reach four deliveries per year and if it doesn’t get to four in 2022, it will be three with one that barely misses, Searles said. 


Described as a “flying ship,” the SSC can conduct amphibious operations and move over ice, mud, rivers, rocks, boulders and obstacles up to four feet high, Searles said.


The program faced issues in 2020 after the original propeller blade experienced “composite micro-cracks” when the craft was loaded with weight. The Navy conducted studies of what caused the cracking in 2020 and developed a solution to both strengthen the blade design and modify the propeller control software, according to Searles.




Supreme Court Blocks Shot-or-Test Rule for Workers

Yesterday, a divided U.S. Supreme Court blocked the centerpiece of Biden’s push to get more people vaccinated amid the Covid-19 surge, rejecting an Occupational Safety and Health Administration rule that would have required 80 million workers to get shots or periodic tests. Justices let a separate rule take effect requiring shots for workers in nursing homes, hospitals and other facilities that receive Medicare and Medicaid payments from the federal government.


The OSHA rule required employers with 100 or more workers to make them get vaccinated or be tested regularly, potentially at their own expense. OSHA issued the rule as a so-called emergency temporary standard, or ETS. Under federal law, the agency can put an ETS in place immediately for six months but must meet a more demanding legal test by showing it is “necessary” to protect employees from “grave danger.”


“Although Congress has indisputably given OSHA the power to regulate occupational dangers, it has not given that agency the power to regulate public health more broadly,” the court said in an unsigned verdict.




U.S. to Hold ‘Historic’ Wind Energy Lease Sale Offshore New York and New Jersey

The Biden Administration is set to hold a massive offshore wind lease sale next month, auctioning a record of more than 480,000 acres offshore New York and New Jersey. The February 23 auction will allow offshore wind developers to bid on six lease areas, the most areas ever offered in a single auction, in an area known as the New York Bight. Leases offered could result in 5.6 to 7 gigawatts of offshore wind energy, enough to power nearly 2 million homes, according to the Department of Interior’s Bureau of Ocean Energy Management (BOEM).


The Biden Administration has set a goal to install 30 GW of offshore wind by 2030, complemented by state offshore wind policies and actions throughout the Northeast and Mid-Atlantic. Collectively, New York and New Jersey have set the nation’s largest regional offshore wind target of installing over 16 GW of offshore wind by 2035.


BOEM Begins Environmental Assessment for Offshore Wind in the Gulf

Earlier this week, the Bureau of Ocean Energy Management (BOEM) announced it is preparing a draft environmental assessment (EA) to consider the impacts of potential offshore wind leasing in federal waters of the Gulf of Mexico. The area that will be reviewed in the EA includes almost 30 million acres just west of the Mississippi River to the Texas-Mexico border.




Bollinger Announces Latest Order from General Dynamics Electric Boat

Lockport, Louisiana-based Bollinger Shipyards has announced its latest order from General Dynamics Electric Boat in support of the U.S. Navy’s new Columbia-class ballistic missile submarines. The shipbuilder will construct a new Pontoon Launcher used in the construction and launching of the new class of nuclear-powered submarines. The Pontoon Launcher is scheduled to be delivered to Electric Boat’s Groton Connecticut shipyard in 2024.


Electric Boat is the prime contractor on the design and build of the Columbia Class Submarine, which will replace the aging Ohio Class Ballistic Missile Submarines.


Fincantieri Begins Construction on the Largest LNG Barge in the U.S.

Fincantieri Bay Shipbuilding has started construction on the largest LNG bunkering barge ever built in the United States. The unit is under construction for Crowley, which will operate it under a long-term charter to Shell. The 400-plus-foot barge which will have capacity for more than three million gallons of LNG, making it the largest Jones Act-compliant vessel of its kind. It will also be the second Jones Act-compliant bunker barge Shell has under charter, following the Q-LNG 4000.


ABS to Class First Jones Act-compliant Subsea Rock Installation Vessel

Earlier this week, ABS announced that the Great Lakes Dredge & Dock Company's new Jones Act-compliant Subsea Rock Installation Vessel, the first such ship to enter the U.S. market, will be built to ABS Class by Philly Shipyard. The vessel will transport and strategically deposit loads of up to 20,000 metric tons (MT) of rock on the seabed, laying scour protection for offshore wind farm foundations, cables, and other structures. It will be awarded the ABS SUSTAIN-2 Notation, recognizing adherence to certain UN Sustainable Development Goals related to vessel design, outfitting and layout.




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