April 21, 2024 | International, Security
May 21, 2020 | International, Naval
Shipbuilding suppliers need more than market forces to stay afloat
By: Bryan Clark and Timothy A. Walton
The U.S. Navy's award this month of the contract for its new class of frigates starts the very necessary process of rebalancing the U.S. surface fleet, but the competition also highlighted the U.S. shipbuilding-industrial base's increasing fragility.
If they lost, two of the four shipyards bidding on the frigate were at risk of either going out of business or joining the underemployed ranks of U.S. commercial shipbuilders. Due to specialization, only one or two yards construct each class of Navy combat ship with workforces, equipment, and infrastructure that would be expensive and difficult to adapt.
A decision on any single ship class, as with the frigate, can shut down a shipyard and send its workers to the unemployment line.
Specialization is also a problem when orders increase. The Navy's two submarine shipyards, General Dynamics Electric Boat and Huntington Ingalls Industries' Newport News division, shrank the time needed to build subs by 20 percent during the past decade while increasing production to two per year.
The rising sophistication of Virginia-class submarines has now reversed this trend, however, and submarine builders' challenges are only increasing. They recently started a new contract to build up to 10 of the larger Block V Virginia submarines and are in negotiation with the Navy on a block-buy contract for the first two Columbia-class ballistic missile submarines.
Supplier challenges abound
U.S. shipbuilders may be fragile, but their suppliers are on life support. After decades of being whipsawed by changes to shipbuilding plans and budget uncertainty, a shrinking number of suppliers are able and willing to stay in business.
The Navy's recent initiatives to improve supplier production capacity and resilience don't go far enough to address its rising dependence on sole-source suppliers, which now provide more than 75 percent of submarine parts. For example, when problems with Columbia missile tubes led the Navy to seek new suppliers, it replaced the existing, sole source — BWXT — with another — General Dynamics — that will assemble tubes at the same facilities that are constructing parts for the Virginia and Columbia submarines.
Last year, the Trump administration used the Defense Production Act to establish new suppliers for military missile fuel. The Navy should build on this effort to identify sole-source items for which an additional supplier is appropriate.
In selecting additional suppliers, the Navy should prioritize attributes other than cost. Sole-source items by definition are important enough to justify seeking out or creating a single supplier rather than adapting the ship's design to use an existing item. Therefore, the Navy should emphasize the provider's track record in conducting similar or other challenging engineering; its ability to adjust to what will likely be variable demand and changing specifications; and the likelihood of quality production that avoids rework.
Planning for resiliency
The Department of Defense could help address the shipbuilding-industrial base's fragility with its current study of the number and mix of ships needed in the future fleet. Although the primary goal of this analysis should be determining the most effective fleet possible within likely budget constraints, it must also ensure the industrial base can build and sustain the future Navy.
Industrial base considerations are not new to Navy force structure planning. During the last decade, the Navy or Congress added amphibious ships, submarines, destroyers and auxiliary vessels to maintain hot production lines or keep a shipyard afloat until the next order. Each of the Navy's new combatant ships are expected to cost more than $1 billion to build, constraining the Navy's ability to spread ship construction to other qualified shipyards to fill production gaps or extend classes to keep a shipyard in operation.
The Navy could better support shipbuilders by rebalancing its fleet architecture to increase the number of smaller vessels such as corvettes or tank landing ships, and reduce the number of larger destroyers and amphibious warships.
Smaller, less-expensive ships could be built in larger numbers per year, providing more flexibility in shipbuilding plans to stabilize the workload for shipbuilders and providing more scalability to align shipbuilding expenditures with changing budgets.
Smaller ships could also be built at a wider range of shipyards, including those that only build commercial vessels and noncombatant government ships like Coast Guard cutters and oceanographic research vessels. These “dual-use” shipbuilders suffer today from a lack of coordination between commercial and government shipbuilding, which creates a feast-or-famine cycle of orders.
The Navy and nation depend on a healthy shipbuilding-industrial base. To foster the industrial base in the face of natural and man-made challenges, the Navy should change its fleet design and shipbuilding plans, while investing to establish and qualify new suppliers. Without deliberate action, the U.S. shipbuilding industry will become increasingly fragile, limiting the Navy's ability to build the ships it needs and respond when today's competitions turn to conflict.
Bryan Clark is a senior fellow at the Hudson Institute, where Timothy A. Walton is a fellow.
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Pentagon announces $600M in 5G experiments
Andrew Eversden WASHINGTON — The U.S. Department of Defense announced $600 million in contracts for 5G experiments Thursday evening for projects at five military bases across the country. The long-anticipated awards are for a series of 5G experiments, including smart warehouses, advanced radars, and augmented and virtual reality capabilities. The awards are part of a Pentagon effort to work with commercial vendors to advance the 5G capabilities of both the department and industry. “The Department of Defense is at the forefront of cutting edge 5G testing and experimentation, which will strengthen our Nation's warfighting capabilities as well as U.S. economic competitiveness in this critical field," said Michael Kratsios, acting under secretary of defense for research and engineering, in a statement. “Through these test sites, the Department is leveraging its unique authorities to pursue bold innovation at a scale and scope unmatched anywhere else in the world. Importantly, today's announcement demonstrates the Department's commitment to exploring the vast potential applications and dual-use opportunities that can be built upon next-generation networks.” The DoD is setting up test beds at several bases where military leaders, industry and academia will work together on a broad range of experiments. The test beds are Hill Air Force Base, Utah; Joint Base Lewis-McChord, Washington; Marine Corps Logistics Base Albany, Georgia; Naval Base San Diego, California; and Nellis Air Force Base, Las Vegas, Nevada. According to Joseph Evans, the DoD's director of 5G, the department plans for the testbeds to be working in a year. “Each of the experiments has some aspect that's really new and exciting to us,” Evans told reporters. “In addition, it also provides an opportunity for industry to experiment and mature their technologies along those parallel tracks.” According to a DoD press release, the bases were chosen because of their access to spectrum, and mature fiber and wireless infrastructure. At Joint Base Lewis-McChord, the Pentagon will work with four vendors to experiment with 5G-enabled augmented and virtual reality goggles for mission planning, training and operations using mid-band spectrum. The vendors are GBL System Corp., AT&T, Oceus Networks and Booz Allen Hamilton. Evans told reporters that in year three of the work at the base the department wants a “brigade-sized deployment of the technology.” The department will also address 5G spectrum sharing challenges with cellular networks through an experiment at Hill Air Force Base. The project, according to a DoD press release, will “develop sharing/coexistence system prototypes and evaluate their effectiveness with real-world, at-scale networks in controlled environments.” The department is seeking to allow sharing or coexistence between airborne radar systems and 5G cellular technology in the 3.1-3.45 GHz band. Vendors for the spectrum sharing test bed include Nokia, General Dynamics Mission Systems, Booz Allen Hamilton, Key Bridge Wireless, Shared Spectrum Company and Ericsson. The Defense Department is also partnering with AT&T at Nellis Air Force Base for a distributed command and control testbed to enhance C2 survivability in combat. The telecom giant will eventually provide a mobile 5G environment with high capacity, low latency communications to meet the needs of a mobile combined air operations center. “We're basically trying to make our forces more survivable by taking command and control functions that have long been housed in single buildings and spread them out and make them make them mobile,” Evans told reporters. “So [we're] really trying to change the way our forces are deployed in the field.” The department will experiment with 5G-enabled smart warehouses at both Naval Base San Diego (NBSD) and Marine Corps Logistics Base Albany, Ga. The project in San Diego will focus on transshipment between shore facilities and naval units, while the Marines Corps project will center on vehicle storage and maintenance. Both projects will work “to increase the efficiency and fidelity of ... operations, including identification, recording, organization, storage, retrieval, and transportation of materiel and supplies,” a DoD press release said. Industry partners for the San Diego-based project are AT&T, GE Research, Vectrus Mission Solutions Corporation and Deloitte. AT&T will use cullar spectrum in the sub-6 GHz and millimeter wave bands, the DoD press release said. Partners at Marine Corps Logistics Base Albany, Ga. are Federated Wireless, GE Research, KPMG and Scientific Research Corporation. The Air Force also recently chose AT&T to provide 5G capabilities at three bases. The DoD is also in the process of choosing vendors for 5G experiments at seven more bases. According to Evans, the first solicitation release and industry day for the Navy and Marines Corps bases in that tranche will come in mid-October using the Navy's Information Warfare Research Project consortium. The Air Force and Army solicitations are expected to be rolled out through December through the National Spectrum Consortium, Evans said. https://www.c4isrnet.com/battlefield-tech/it-networks/5g/2020/10/08/pentagon-announced-600-million-in-5g-experimentation-contracts/