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SCA Weekly Report | February 13-17, 2023

Shipbuilders Council of America

20 F Street NW, Suite 500

Washington, DC 20001




SCA Weekly Report | February 13-17, 2023





Registration Still Open:

2023 National Ship Repair Industry Conference (NSRIC)


March 20-23, 2023

The Westin Crystal City

Arlington, VA


The 2023 National Ship Repair Industry Conference (NSRIC) will be held in-person on March 20-23, 2023.The cost to attend the meeting is $550.


NSRIC 2023 is only open to SCA members and Ship Repair Association Members, and is closed to the press.


Invited Government Speakers for Tuesday Include:


  • Chief of Naval Operations, Admiral Michael Gilday
  • Vice Chief of Naval Operations, Admiral Lisa Franchetti
  • Commandant of the United States Coast Guard, Admiral Linda Fagan
  • Commander, Naval Sea Systems Command, Vice Admiral William Galinis
  • Commander, Naval Surface Forces, Vice Admiral Roy Kitchener
  • Commander, Naval Surface Force Atlantic, Rear Admiral Brendan McLane
  • Commander, Regional Maintenance Center, Rear Admiral Eric Ver Hage
  • Program Executive Officer for Ships, Rear Admiral Thomas Anderson
  • Program Executive Officer for Aircraft Carriers, Rear Admiral James Downey
  • Assistant Commandant for Engineering & Logistics, USCG, Rear Admiral Carola List
  • Director of Acquisition Programs & Program Executive Officer, USCG, Rear Admiral Chad L. Jacoby
  • Secretary of the Navy, Mr. Carlos Del Toro
  • ASN RDA (Acting), Mr. Frederick J. Stefany



A room block has been secured for this event at the Westin Crystal City. To book a room at the negotiated rate of $272/ night, click HERE.



Notice of Proposed Rulemaking for Build America, Buy America

On February 9, 2023, the Office of Management and Budget (OMB) issued a Notice of Proposed Rulemaking (NPRM) proposing to revise OMB Guidance for Grants and Agreements to support implementation of the Build America, Buy America Act (BABA) provisions of the Infrastructure Investment and Jobs Act. OMB is seeking comments on the NPRM. Comments must be submitted electronically to www.regulations.gov by March 13, 2023.



OMB is proposing a new part 184 in 2 CFR chapter I and revisions to 2 CFR 200.322, all relating to domestic preference requirements. The revision adds a new part addressing the Buy America Preference for all Federal grant awards with infrastructure expenditures and provides definitions and a common framework for applying Buy America Preferences to Federal Financial Assistance projects. These revisions are intended to provide consistent implementation of Buy America requirements for infrastructure projects Government-wide.


OMB requests public comment on the proposed guidance. Public comments are particularly invited on: (1) Cost of components; (2) Other construction material standards; (3) Proposed definition of construction materials; (4) Definition for “predominantly” iron or steel items; (5) How to distinguish between categories of products; (6) Meaning of composite building materials; (7) Fiber optic cables and optical fibers; (8) Standards applicable to optical fiber and optic glass; (9) Aggregates; (10) Specific sections of proposed guidance; and (11) Reducing burden on recipients.



NAVSEA Workforce Grant Opportunities





OMB, Pentagon Reach Accord on FY24 Budget Figure

The Office of Management and Budget and the Pentagon have agreed to an overall fiscal 2024 budget number that will exceed the $816 billion Congress passed in December, officials say without providing the exact number. The budget is expected to be released on March 9 with the multi-billion dollar details and voluminous justification books for Congress that will be transmitted March 13.


DoD Releases Updated Cyberspace Workforce Qualification and Management Program

As the Defense Department faces challenges to recruit and train "cyber warriors," the office of DOD Chief Information Officer John Sherman has released guidance aiming to unify its cyber workforce efforts under a common umbrella.


The manual, titled 8140.03 Cyberspace Workforce Qualification and Management Program, is the third issue in the CIO’s 8140 policy series, which helps the department identify, develop and qualify cyber personnel.


Specifically, the 8140.03 manual “modernizes DOD talent management, allowing for more targeted and flexible approaches within the cyber human capital lifecycle,” according to a DOD announcement this week.


While competing for cyber talent with the commercial tech industry, the Pentagon is hoping to track and manage its cyber workforce across the DOD enterprise with its 8140 policy series.


Concurrently, the Office of the National Cyber Director is working on a national cyber workforce strategy and more broadly, the Biden administration is expected to release a national cyber strategy in early 2023.


Coast Guard Moving Cutter to Pacific as Regional Missions Expand

Driven by greater demand for its partnerships and presence in the Indo-Pacific region, the U.S. Coast Guard is growing its operational presence in the vast region that’s unsettled by continuing incursions from China’s naval militia and fishing fleet, the Pacific Area commander said at a conference this week.


Part of that plan is the deployment of a 270-foot medium endurance cutter, based on the East Coast but undergoing a shipyard overhaul, to the Pacific sometime in 2024, Vice Adm. Andrew Tiongson, the Coast Guard Pacific Area Commander, said Wednesday. “This cutter will remain in the Pacific and will build upon many decades of enduring presence, operating in concert with the needs of our allies and our partners,” said Tiongson.


There are no medium-endurance cutters operating in the region, he noted. He envisions the medium-endurance cutter operating in the Pacific islands, much like the work of the now-retired USCGC Gentian, a buoy tender that spent its last decade as a support tender in the Caribbean. The tender went “from country to country, providing whatever that partner may need.” That might be law enforcement training or operations, he said. “If they want to do training on search and rescue, they’re equipped with that kind of thing,” Tiongson added.




Marine Corps Requirements Call for 9 Light Amphibious Ships Per Regiment

The service has said for months that it needs 35 Landing Ship Mediums – previously known as the Light Amphibious Warship – for the type of operations it envisions in the Indo-Pacific region. The idea is that the three Marine Littoral Regiments operating in the Indo-Pacific would each have nine LSMs, while leaving room for eight ships that would inevitably get tied up in maintenance periods, according to a new Marine Corps video about requirements.


The Marine Corps came up with this requirement after modeling and simulations, deputy commandant for combat development and integration Lt. Gen. Karsten Heckl said Tuesday at the WEST 2023 conference, co-hosted by the U.S. Naval Institute and AFCEA.


The requirements focused on tonnage, square footage for cargo and the need for Marines to move around the region on their own, without the benefit of long runways or ports and piers.


While the program has faced fits and starts over the last few years, Marine Corps officials say the requirements are solid and now it’s time to start building the ship.


Navy Considering Use of Freedom-Class LCS as ‘Mothership’ for Unmanned Platforms

The Navy is studying the potential of using Littoral Combat Ships as motherships for unmanned vessels, with the “current phase” of its study expected to wrap up in 2023, according to a letter to key lawmakers obtained by Breaking Defense.


“The Navy continues to conduct fleet experimentation in pursuit of future capabilities across multiple platforms, including an ongoing study of the supporting infrastructure required to operate a future hybrid manned/unmanned fleet,” Navy Secretary Carlos Del Toro wrote in a Feb. 1 letter. The memo was sent to House Armed Services Committee chairman Rep. Mike Rogers (R-AL), and House Appropriations defense subcommittee chairman Rep. Ken Calvert (R-CA).


The letter goes on to say that the Navy is evaluating “use cases” to ascertain whether a warfighting requirement for such a capability exists, and is weighing other factors including implementation and modernization costs, manpower and training.




Dominion Says $9.8 Billion Virginia Offshore Wind Farm is ‘On Track’

Last week, Dominion Energy executives said that the electric utility’s $9.8 billion offshore wind farm is on track and on budget, having recently entered a critical phase of the environmental review process. The roughly month-long public comment period on the environmental impact study of the 2.6 gigawatt project will end in February, Dominion Chief Executive Steven Ridge said on the Richmond, Virginia-based company’s quarterly earnings call.


“As it relates to the project’s execution, it’s very much on track and on budget,” Ridge said, adding that Dominion is working with the Bureau of Ocean Energy Management and other overseers of U.S. offshore wind development. The wind installation designed to start 27 miles off the Virginia Beach shores, which could provide carbon-free power to more than 650,000 homes and businesses, is slated for completion by the end of 2026.


Massachusetts SouthCoast Wind Project Moves Another Step Forward

The Bureau of Ocean Energy Management (BOEM) has announced the availability of its draft Environmental Impact Statement (EIS) for the proposed SouthCoast Wind energy project offshore Massachusetts. SouthCoast Wind’s construction and operation plan (COP) for the proposed wind energy facility and associated export cables on the Outer Continental Shelf offshore Massachusetts, includes up to 147 wind turbines and two export cable corridors.


SouthCoast Wind represents the seventh project that is currently in the draft EIS stage of review by BOEM. If approved, BOEM estimates that this proposed 2,400-megawatt project could provide power for more than 800,000 homes. 


Crowley Takes First Step Toward Creating Port Fourchon Offshore Wind Facility

Crowley recently reached a deal with Port Fourchon for right of first refusal to build an offshore wind terminal on Louisiana's coast. Port Fourchon has a 40-acre site with 2,200 feet of waterfront that might well become an offshore wind terminal in the years ahead, according to Crowley. Interest in the Gulf of Mexico's wind potential is picking up, and the U.S. Bureau of Ocean Energy Management has designated its first two Wind Energy Areas (WEAs) in the region - including one located off Lake Charles, about 150 nm to the west of Port Fourchon.




USDOT Announces More Than $660 Million Available Through the Port Infrastructure Development Program

Last week, the U.S. Department of Transportation’s Maritime Administration (MARAD) announced a Notice of Funding Opportunity (NOFO) making available more than $662 million in Federal Fiscal Year (FY) 2023 funding for MARAD’s Port Infrastructure Development Program (PIDP).


The PIDP investment will modernize our nation’s ports and help strengthen our supply chains for generations to come, helping to reduce shipping time, costs, and ultimately the costs of goods for the American people. The President’s infrastructure package provides $450 million annually in funding for the Program. “America’s ports play a central role in our supply chains,” said U.S. Transportation Secretary Pete Buttigieg. “With today’s announcement, we are helping make our ports safer, more efficient, and more reliable—strengthening supply chains, reducing costs for the American people, and positioning us for economic success.” READ MORE >


Austal USA Opens San Diego Ship Repair Facility

Earlier this week, Austal USA officially opened the company’s new San Diego waterfront ship repair facility. During the opening ceremony on February 13, Austal highlighted that its new facility, located adjacent to Naval Base San Diego, will provide full-service repair, maintenance, and modernization services for small surface combatants, unmanned and autonomous vessels, and auxiliary ships. Austal USA already has service contracts for both series of Littoral Combat Ships.


Since finalizing the agreement for the property, Austal USA reports it has invested over $100 million in facility upgrades and a new floating dry dock. The site now provides 678 feet of improved San Diego Bay shoreline, 80,000 square feet of covered working space, and has been equipped with new pier fenders and moorings, modernized shore power conversions, and enhanced security.


Freeport LNG Seeks to Restart Commercial Operations at Texas Export Plant

Freeport LNG sought permission from federal regulators on Monday to restart commercial operations at its long-idled liquefied natural gas (LNG) export plant in Texas, a move that could soon provide the world with another much needed source of the super-cooled fuel.


The amount of gas flowing from U.S. pipelines to Freeport jumped on Monday to its highest since the facility was shut down by a fire in June 2022 after the company restarted one of the plant's three liquefaction trains, which turn gas into LNG for export. But energy regulators and analysts have said they do not expect Freeport, the second-biggest U.S. LNG export plant, to return to full commercial operations for months.


In a filing with the U.S. Federal Energy Regulatory Commission (FERC) on Monday, Freeport asked for permission to put what it called Phase 1 of its restart plan into commercial operation. Phase 1 includes the full restart of the plant's three liquefaction trains, two storage tanks and one LNG loading dock.




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