April 25, 2013 By Mackenzie Eaglen and Bryan McGrath "Listening to the Secretary of the Navy testify before Congress this week, one might be lulled into thinking all is well with U.S. Navy shipbuilding. But the president’s budget for 2014 shrinks and diminishes the Navy’s fleet. Again. Last year’s budget accelerated these same trends while permanently downsizing the Navy’s long-standing fleet goal from 313 to 298 ships. "In taking credit for his tenure, Mr. Mabus was quick to tell Congress that the Obama Administration has placed 43 ships under contract. While this is surely an improvement over recent years, it is artificially inflated because it counts the deal cut with Littoral Combat Ship (LCS) producers to fix the price of 20 ships vice actually acquiring them, which it does not. The Navy continues to purchase these ships in tranches on an annual basis, as opposed to the multi-year procurements of attack submarines and major surface combatants. "The bottom line remains the same: the Navy is retiring more ships than it plans to build in the President’s 2014 budget request. Over the next five years, the Navy hopes to build 41 ships -- that is if sequestration is repealed or replaced -- but will retire 42 during the same period. |