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August 10, 2020 | International, Naval

Major Submarine Contractor Drops Navy Missile Tube Biz

The disclosure comes as the Pentagon has been looking for ways to backstop key parts of its industrial base as supply chains slowed due to the COVID epidemic.

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WASHINGTON: One of the Navy's primary suppliers of missile tubes for its nuclear submarines is planning to walk away from the military business, a move that will drop the number of domestic companies capable of doing the work to two at a time when the service is in a scramble to ramp up its sub-building efforts.

BWX Technologies President Rex Geveden says that the company is “not likely to pursue” any more Navy business and will repurpose a factory in Indiana that makes the components once the next set of deliveries of missile tubes wrap up in 2022. The Navy work “just doesn't have the margin profile that we want to see in the business,” Geveden said in a Tuesday investor call.

BWX was slated to build the missile tubes for the new Columbia subs, but prime contractor Electric Boat says it has options to replace the company in coming years.

The company “works with multiple suppliers to ensure we can meet the Navy's schedule requirements on these important programs,” a spokesperson emailed. “These are Babcock Marine, BAE Systems, Precision Custom Components and BWX Technologies. BWX Technologies will complete all currently contracted work for EB by 2022.”

This comes as the Pentagon has been looking for ways to bolster key parts of its industrial base as communities shut down and workers are told not to report to work or take time off, due to the COVID epidemic.

In a call with reporters late last month, Navy acquisition chief James Geurts acknowledged that the service is deeply worried that such closures and slowdowns could have wide-ranging impacts on shipbuilding. “I am absolutely interested in ensuring that we don't lose large chunks of the industrial base,” he said. “Restarting an industrial base that you lose is really hard, really painful, and takes a long time. We are absolutely focused on ensuring we do not lose an industrial base because we don't have the time or resources to re-generate it later when we need it.”

The winnowing of such a key part of the industrial base will place more pressure on the handful of other companies who can do this sort of work, something to which Pentagon leadership is particularly sensitive.

Overall, the Navy plans to buy 12 Columbia-class submarines between 2021 and 2035, with 10 of those coming 2026 and after. In the near-term, it plans two Virginia-class subs per year between 2021 and 2026, meaning shipyards will have to pump out two to four submarines a year in the mid-2020s.

The new Columbia submarines will begin being delivered to the Navy in 2030, just in time to begin replacing the Cold War-era Ohio-class subs as the Navy's leg of the nation's nuclear triad. The subs will carry 70 percent of the nation's stockpile of warheads allowed by the New Start treaty with Russia.

Falling in to replace the Ohio's on time would be a critical failure for the nation's nuclear triad, as the aging ships will have next to no life left in them by the end of the decade, and leaving the sea leg of the nuclear enterprise in some jeopardy.

Babcock Marine is a UK-based company, but does work on some components that are used for both the Columbia program and the UK's Dreadnaught submarines, which shares similar missile tubes with the Columbia effort.

In 2018, Virginia-based BWX was forced to pay $27 million to fix welding problems on the Columbia tubes, after issues were found on a total of 44 tubes. So far, 21 of those have been fixed and 11 delivered to the Navy.

Navy officials have closely tied the modernizing of the current Virginia-class subs with the building of new Columbia's, warning that since they share a base of companies who can make precision parts for nuclear-powered submarines. So any problem with one program will have knock-on effects to the other. Geurts and others have said the Navy would prioritize the health of the Columbia effort over Virginia if they had to.

If the House of Representatives gets its way, however, billions more will flow into the Virginia program than the White House has called for. Last week, the House voted to fund the construction of a second Virginia-class submarine in the 2021 budget request, after the White House dropped the planned buy to one submarine in its submission.

The push was led by Rep. Joe Courtney, chairman of the Seapower Subcommittee who represents the Connecticut district that's home to Electric Boat. The bill now includes $6.8 billion to produce two Virginia-class attack submarines, approximately $2.5 billion more than the White House's own request, and $2.2 billion more than the Senate's.

“The budget request we received from the White House flew in the face of testimony that we've heard from Navy leaders, experts, and combatant commanders,” Courtney said in a statement. “It requested the fewest ships in over a decade, and it eliminated construction of the second Virginia-class submarine in 2021—a vessel that the Navy quickly listed as its most important unfunded priority in 2021.”

https://breakingdefense.com/2020/08/major-submarine-contractor-drops-navy-missile-tube-biz

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  • Senate Republicans unveil $1.4T spending bill, with $696B for defense

    November 11, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Senate Republicans unveil $1.4T spending bill, with $696B for defense

    By: Joe Gould , Valerie Insinna , David B. Larter , Andrew Eversden , and Nathan Strout   WASHINGTON ― Senate Republicans on Tuesday introduced a governmentwide, $1.4 trillion spending package, with $696 billion for defense, teeing up negotiations in Congress' tense lame-duck session ― and several fights with House Democrats. The government is operating on a stopgap continuing resolution, or CR, through Dec. 11, and Congress must either pass a deal, or another funding patch, to avoid a government shutdown in the middle of a turbulent presidential transition. A separate COVID-19 relief effort and the annual defense policy bill are also on Capitol Hill's busy to-do list. The Senate must reconcile its long-awaited package of 12 bills with the House, which passed its own bills in July. The Senate's GOP-drafted defense language for fiscal 2021 differs from the House version on the number of Lockheed Martin-made F-35 Joint Strike Fighters to order and funding for a space-based sensor. Compared to the House bill, the Senate version also calls for one fewer Virginia-class submarine and $19 million more in funding for next-generation 5G networks. Though the Senate bill was mostly bipartisan and Senate Appropriations Committee Chairman Richard Shelby, R-Ala., expressed confidence in an eventual deal, the atmosphere for compromise is unclear. The post-election period remains white hot politically, as Republican leaders back President Donatl Trump in his legal challenges of President-elect Joe Biden's electoral win, and as two races to determine control of the Senate face January runoffs. On Tuesday, Democrats chided Republicans over the long-stalled bills. Stopping short of endorsing the effort, Senate Appropriations Committee Vice Chairman Patrick Leahy, D-Vt., criticized the legislation for ignoring the country's COVID-19 relief needs, shortchanging safety net programs and the environment, and wasting money on Trump's border wall. The House passed its $694.6 billion Pentagon spending bill for fiscal 2021 in July as part of a $1.3 trillion package. It included politically charged provisions to set aside $1 million for the Army to rename 10 bases that honor Confederate leaders and to bar the Trump administration from using more Pentagon funds on border wall construction. It would reduce transfer authority from the requested $9.5 billion to $1.9 billion, and place additional oversight mechanisms on the Defense Department's ability to reprogram funds. Here's what stood out in the Senate GOP's latest proposal: Air warfare: The Senate panel would fund a total of 96 F-35s in FY21, 17 jets more than the Pentagon's request and five more than the panel's House counterpart. Its bill added about $1.7 billion for 12 F-35As for the Air Force and five F-35Cs for the Marine Corps and Navy. Though the bill fully funds the B-21 bomber program, many of the Air Force's other major development programs received slight cuts. Funding for one of its biggest priorities, the Advanced Battle Management System, shrank from $302 million to $208 million. The committee cited “poor justification” as a reason for the cuts. The Air Force's Next Generation Air Dominance program also would take a hit despite the headline-grabbing first flight of a full-scale demonstrator aircraft, which was disclosed by the service in September. The Air Force wanted $1 billion in FY21 to continue development of NGAD ― a suite of manned and unmanned air superiority technologies that could include a sixth-generation fighter. However, the committee shaved about $70 million off the request. Naval warfare: The bill provides money to buy nine ships, though some argue it's only eight because the LPD-17 was already procured. The total comes to roughly $21.35 billion, or $1.44 billion more than the president's request, but less than the House bill. The ships include one attack submarine (one less than the House bill but a match to what the administration requested), a Constellation-class frigate, two destroyers, and two towing and salvage ships. The Senate bill also calls for nine P-8A Poseidon maritime patrol aircraft and four E-2D Advanced Hawkeyes, as well as 24 F/A-18 Super Hornet fighters. 5G technology: The bill fully funded the Pentagon's $449 million budget request for defensewide 5G projects, $19 million more than the House. In their budget justification, House appropriators cited “historical underexecution” for its $430 million recommended allocation. The Pentagon is working with industry on multiple ongoing 5G experiments that are underway at military bases across the country. The department recently awarded $600 million in contracts for the effort. Satellites: The bill also adds to frustrations expressed by members of the House at how a new constellation of hypersonic weapon-tracking satellites will be funded. While technically a Missile Defense Agency program, former Under Secretary of Defense for Research and Engineering Mike Griffin pushed for the Hypersonic Ballistic Tracking Space Sensor, or HBTSS, to be funded through the Space Development Agency. Leaders of both agencies have insisted that the program remains under MDA's ownership, but legislators have expressed concern over the arrangement and the low level of funding set aside for it. No money was set aside for HBTSS in MDA's budget, while the Space Development Agency's budget included $20 million for the critical sensor. In June, the House Armed Services Committee's' strategic forces subpanel threatened to transfer MDA away from the undersecretary of defense for research and engineering, placing it instead under the undersecretary of defense for acquisition and sustainment. While the Senate bill doesn't go that far, it does add an additional $140 million in unrequested funding for HBTSS, including a $20 million transfer from the Space Development Agency. Furthermore, senators demanded the agencies report on their acquisition strategy for HBTSS and fully fund the program in their future budget proposals. https://www.defensenews.com/congress/2020/11/10/gop-unveils-14t-spending-bill-with-696b-for-defense/

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