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SCA Weekly Report | March 13-17, 2023

Shipbuilders Council of America

20 F Street NW, Suite 500

Washington, DC 20001




SCA Weekly Report | March 13-17, 2023





**Please note that there will not be a SCA Weekly Report next week due to the National Ship Repair Industry Conference**



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.




Registration Now Open:

2023 SCA Spring Membership Meeting


May 17-18, 2023

20 F St. NW

Washington, D.C. 20001


Registration for the 2023 SCA Spring Membership meeting in Washington, D.C. is now open. The meeting will be held at the Adams and Reese offices at 20 F St. NW, Washington, D.C 20001.


For more information on the schedule and to register, CLICK HERE




SCA and MMA Sea, Air and Space Reception




NAVSEA Workforce Grant Opportunities





Navy Releases Summary FY24 Budget Request

On Monday, the Department of Defense, including the Department of the Navy, released summary requests of the fiscal year 2024 budget. The overall request for the Navy is $255.8 billion - $53.2 billion for the Marine Corps and $202.5 billion for the Navy. The total DON request is a 4.5% increase over what Congress appropriated last year, according to the service’s budget presentation. 


The request asks Congress to purchase one Columbia-class ballistic-missile submarine, two Flight III Arleigh Burke-class destroyers, two Virginia-class attack boats, two Constellation-class frigates, one John Lewis-class fleet oiler and one next-generation submarine tender replacement known as AS(X) for a total of $32.8 billion in the Navy’s shipbuilding account. The service sped up the first AS(X) procurement to FY 2024 from a previously planned start of FY 2025.


In addition to the battle force ship request, the Navy wants funding for one Landing Craft, Air Cushion Service Life Extension Program, two Landing Craft Utility 1700s, and two used sealift ships.


The Future Years Defense Program (FYDP), or the Pentagon’s five-year budget outlook, shows the Navy buying two Flight III destroyers and two Virginia-class attack boats a year through FY 2028. It also shows the Navy buying one Columbia-class ballistic-missile submarine per year from FY 2026 through FY 2028, one Ford-class aircraft carrier in FY 2028, and the next America-class amphibious assault ship in FY 2027. The Navy previously planned to buy that ship – LHA-10 – in FY 2031. For the Constellation-class frigate, the Navy plans to buy one in FY 2025, two in FY 2026, one in FY 2027 and two in FY 2028.


The Navy is also seeking $1.8 billion in incremental funding for LHA-9, which the service bought in FY 2021, and $1.9 billion for the two Ford-class aircraft carriers it previously purchased in a block buy.


The five-year outlook shows the service starting the Landing Ship Medium program – previously known as the Light Amphibious Warship – in FY 2025 by purchasing one ship, one in FY 2026, two in FY 2027, and two in FY 2028. The ship is meant to have a beaching capability so it can shuttle small units of Marines between islands and shorelines in the Pacific.


The request seeks to decommission eight ships in FY 2024 before they reach their expected service lives: three Whidbey Island-class dock landing ships, three Ticonderoga-class cruisers, and two Independence-class Littoral Combat Ships. Of those eight ships, the Navy sought to decommission four of them last year: cruiser USS Vicksburg (CG-69) and dock landing ships USS Germantown (LSD-42), USS Gunston Hall (LSD-44) and USS Tortuga (LSD-46). Congress prohibited the Navy from retiring those hulls in FY 2023. The Navy also wants to decommission cruisers USS Antietam (CG-54) and USS Leyte Gulf (CG-55), and Los Angeles-class submarine USS San Juan (SSN-751), all of which are past their expected service lives.


The service performed a “ship-by-ship review” to consider the decommissionings for both the LSDs and other ship classes, Navy Under Secretary Erik Raven told reporters last week.


An SCA Summary of the request will be available following the release of the detailed budget line items – expected early next week.




Navy Again Plans to Offer 3 Shipbuilding Paths

This week, in remarks before the McAleese Defense Programs conference, Navy Secretary Carlos Del Toro suggested that the Navy’s annual 30-year shipbuilding plan would again provide three pathways for future shipbuilding. 


“Unless things change dramatically, I think it will… have three options in there and I think that’s a good strategy,” SECNAV said Wednesday, “It provides options for future leaders to be able to make decisions based on the current threat of the day.”


The FY 23 plan broke precedent by providing Congress with three potential pathways for future shipbuilding. Two options assumed little to no increase in overall defense spending and suggested around 300 ships by fiscal 2035, while the third planned on the Navy getting a significantly larger topline and targeting 326 ships by FY35. No official choice was made, but the eventual funding suggested lawmakers were more in line with the third option. Still, the choice itself irked some lawmakers who saw the move as indecision on the part of the Navy.


The Navy’s new fiscal 2024 shipbuilding plan has not yet been released, although senior leadership in charge of crafting the budget said it would be delivered to the Hill in the coming weeks. When asked whether the new plan would continue the “three choices” route, Del Toro said it would and argued that the plan still provides industry with stability in the near term.


The purpose of the long-range shipbuilding plan, which despite being statutorily required the Navy has a spotty record of delivering annually, is to give Congress and industry a clear road map of its plans for building warships, a process that takes years of advanced preparations.


Del Toro has also said that this year he intends to deliver a 30-year long-term infrastructure plan in an effort get a bird’s eye view of the service’s aging dry docks and bases.


Coast Guard Seeks $1.19 Billion in Vessels for FY24

On March 13, 2023, the Coast Guard released its detailed fiscal year 2024 budget request. Overall, the request would seek $1.19 billion in new vessels, $273 million more than the FY23 enacted level. According to the budget documents, the FY 2024 Budget continues efforts for the Coast Guard’s two highest acquisition priorities, the Offshore Patrol Cutter and the Polar Security Cutter. The FY 2024 Budget also advances the Great Lakes Icebreaker acquisition – an asset that will ensure America’s continued economic prosperity on our domestic waterways. Additionally, the FY 2024 Budget provides funding for the purchase of a commercially available polar icebreaker, which is critical to increasing presence in the Arctic.


An SCA Summary of the Coast Guard's Request can be found HERE. Original documents from the Coast Guard can be found HERE.


MARAD Seeks $984M in FY24

The Fiscal Year (FY) 2024 Budget Request includes $980.2 million for the Maritime Administration (MARAD) to strengthen the United States’ maritime transportation system. MARAD programs support U.S. shipyards, ports, waterways, ships and shipping, vessel operations, strategic mobility for National security, ship disposal, and maritime education and training. In addition, MARAD partners with the Department of Defense (DoD) to maintain the National Defense Reserve Fleet (NDRF) of vessels to provide sealift to transport military equipment and supplies during war and National emergencies. DoD provides funding for NDRF through reimbursable agreement.


An SCA Summary of the MARAD request is HERE. Original documents from MARAD can be found HERE.




U.S. to Sell Nuclear-Powered Submarines to Australia under AUKUS Deal

On Monday, President Joe Biden announced an accelerated timeline for Australia to receive its own nuclear-powered submarines early next decade under an agreement between the U.S, the United Kingdom and Australia. The goal of the deal is to “safeguard peace and stability” in the Indo-Pacific, “not to provoke, not to go try to fight wars, but rather to deter conflict and to promote peace and stability," national security adviser Jake Sullivan told reporters Monday.


The deal was developed under a three-phase approach. Phase 1 involves American and British submarines visiting ports in Australia and embedding those sailors into U.S. and U.K. forces and nuclear power schools. Both the U.S. and U.K. already use nuclear propulsion in their submarines, but Australia does not. Starting as early as 2027, the three countries will participate in a rotational submarine force aptly named Submarine Rotational Forces West.


Once enough Australians have been trained and the country has enough infrastructure to house many subs, then it’s on to Phase 2, where Australia will buy three Virginia-class nuclear-powered submarines from the U.S. with the option to buy two more if needed. That’ll take place in the 2030s if both U.S. and Australian funding and infrastructure improvements for American shipyards come through.


Phase 3, beginning late in the next decade, is the heart of the agreement. Britain will design and deliver to its own forces a new nuclear-powered submarine named SSN AUKUS, which will feature Virginia-class technologies from the U.S. Australia will do the same for its navy in the early 2040s based on the same new design.


This plan was the best way for the trilateral group to ensure Australia didn’t suffer a capability gap while the countries grew their submarine industrial bases, the U.S. officials said. The Biden administration, for example, announced a budget plan Monday to spend $4.6 billion on improving that industrial base over the next five years.


Secretary of the Navy Carlos Del Toro said last month that AUKUS is all about “being able to repair our submarines much further out, being able to build them in Australia as well, too, and create that much more presence in the Indo-Pacific where we need it the most.” He added, “the ability of the United States Navy to be able to do forward-based repair and maintenance is critical to us; it’s part of why we’re actually proceeding down the AUKUS path as well, too, with regards to submarine capability in the future.”


Navy Awards $2.8 Billion for Pearl Harbor Drydock Project

Naval Facilities Engineering Systems Command (NAVFAC) Pacific has awarded a $2.8-billion task order under a previously-awarded contract to Dragados/Hawaiian Dredging/Orion JV, based in Honolulu, Hawaii, to replace Dry Dock 3 at Pearl Harbor Naval Shipyard and Intermediate Maintenance Facility (PHNSY & IMF). 


The planned five-year Pearl Harbor dry dock replacement project will construct a new graving dock, to be designated Dry Dock 5, to support the shipyard’s ability to continue serving the Navy decades into the future by maintaining and modernizing the U.S. Pacific Fleet’s nuclear-powered submarines.


The shipyard’s Dry Dock 3 will become functionally obsolete once the Navy’s Los Angeles-class submarines are no longer in service. The dry dock, built in 1942, cannot service Virginia-class submarines or larger surface ships.


“As part of the Navy’s Shipyard Infrastructure Optimization Program (SIOP), replacing Dry Dock 3 at Pearl Harbor Naval Shipyard is a critical enabler of increased naval capability,” said Pete Lynch, program executive officer for Industrial Infrastructure, who oversees SIOP. “This project is a key investment in increasing capacity and modernizing our nation’s public shipyards through upgraded dry docks and facilities, new equipment, and improved workflow.”




Guertin Appears before Senate Armed Services Committee in Nominations Hearing for DASN Job

Nickolas Guertin appeared before the Senate Armed Services Committee Wednesday for consideration to become the assistant secretary of the Navy for research, development and acquisition. During his testimony, Guertin raised concerns about workforce issues facing shipyards that are resulting in delays.


“Our ships don’t do us much good in shipyards and drydocks,” but the yards need the qualified labor force to return them more promptly to sea, he said.  If confirmed, he also pledged to see for himself the state of the Navy’s facilities and what can be done to improve them. Guertin’s nomination will now need to be advanced out of committee before consideration on the Senate floor.




Ørsted and Eversource Propose Revolution Wind 2 Project for Rhode Island

Offshore wind partners Ørsted and Eversource recently submitted a proposal for an 884-megawatt project called Revolution Wind 2 in response to Rhode Island’s newest wind power solicitation, promising “unprecedented investments in port improvements and shipbuilding.”


Revolution Wind 2 would be a second phase in the developers’ plans for their federal wind energy lease area, on a tract south of the current Revolution Wind project area that starts about 18 miles south of Point Judith, R.I. With the 2016 installation of five wind turbines off Block Island in 2016, Rhode Island became the first base for the U.S. offshore wind industry.


Shell and Gulf Wind Technology to Establish Offshore Wind Hub

In an effort to advance offshore wind energy technology and expand the emerging industry’s skilled workforce, Gulf Wind Technology (GWT) recently announced it is collaborating with Shell to establish a research, training and technology demonstration program at GWT’s Avondale Global Gateway facility in New Orleans, site of the old Avondale Shipyard. GWT, supported by a $10 million investment from Shell, will create 30 new direct jobs with an average annual salary of $83,000. Louisiana Economic Development estimates the project will result in an additional 54 new indirect jobs, for a total of 84 new jobs.




GLDD Preps for its New Hopper Dredge Galveston Island

Conrad Shipyard recently launched Galveston Island, the first of two newbuild hopper dredges being built for Great Lakes Dredge & Dock Corporation. The new trailing suction hopper dredge is in the water and is scheduled to be in operation the first half of 2023. The dredge will be equipped with a direct high-power pump-ashore installation, dredging system automation, dynamic positioning and tracking, U.S. EPA Tier 4 compliant engines, and have capabilities of running on biofuel to minimize the environmental impact. Great Lakes hopper fleet renewal program will be complete in 2025 with the delivery of the sister ship to the Galveston Island.


Eastern Hosts Keel Authentication Ceremony for New York Ferry

Last week, Eastern Shipbuilding Group Inc. (ESG) held a keel authentication ceremony at its Allanton Shipyard in Panama City, FL, for a new 302' passenger/vehicle ferry for the Bridgeport and Port Jefferson Steamboat Co. Steel cutting began in January and delivery is scheduled for 2024. The ferry will operate between Bridgeport, CT and Port Jefferson on New York's Long Island. The ferry is based on the P.T. Barnum and Grand Republic auto/passenger ferries that Eastern Shipbuilding previously built for McAllister Towing and Transportation Co., owners of the Bridgeport & Port Jefferson ferry. 


Chesapeake Shipbuilding Starts Work on New American Cruise Lines’ Ship

Chesapeake Shipbuilding has started constructing American Cruise Lines’ fourth Coastal Cat vessel, American Legend, at its yard in Salisbury, Maryland. The 100-guest American Legend will be one of 12 new small ships in the brand’s Project Blue series, which have been designed to sail domestic cruises in North America. It will have 56 staterooms and suites with private balconies, indoor and outdoor lounges, multiple dining venues and an open-air top deck. The ship will also have an innovatively shaped hull, enabling the brand to incorporate a wide activity platform at the stern, which will be equipped with kayaks and a large tender boat for excursions.




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