Friday, February 28, 2014

Navy braces for budget restrictions.


Promises to only ask for three Little Crappy Ships that can not carry out operational mission which they do not have instead of the four originally planned.
The U.S. Navy will request $2.1 billion to continue developing the Littoral Combat Ship and buy three of the vessels in fiscal 2015, one fewer than previously planned, according to defense officials.

No decision has been made on which of the two companies building different versions -- Lockheed Martin Corp. (LMT) and Austal Ltd. (ASB) -- will see one of its ships delayed by a year, according to one of the officials, who asked not to be identified before the Pentagon budget for the year beginning Oct. 1 is sent to Congress on March 4.

The reduced pace of ship purchases underscores the budget constraints facing the Defense Department and may reflect what Defense Secretary Chuck Hagel this week called his “considerable reservations” about the Littoral Combat Ship, a lightly armed vessel designed for missions in shallow coastal waters.

The ship is intended to operate in a “relatively permissive environment,” and the Pentagon must “closely examine” whether the vessel “has the protection and firepower to survive against a more advanced military adversary and emerging new technologies, especially in the Asia-Pacific,” Hagel said....

The Navy’s request also will include $2.1 billion for a new class of aircraft carriers, funding research and procurement for the Gerald R. Ford and John F. Kennedy vessels, an increase from $1.6 billion this year and $781.7 million in fiscal 2013, according to Navy budget figures. Carriers are built and refurbished by Huntington Ingalls Industries Inc. (HII) based in Newport News, Virginia.

In presenting his budget outline this week, Hagel said current plans foresee the Navy keeping 11 aircraft carrier groups. That may decline to 10 groups because plans to refuel and overhaul the aging George Washington will have to be canceled unless automatic budget cuts, known as sequestration, are eased for future years, he said.
So three Little Crappy Ships with no foreseeable mission cost as much as 1 years work on two of the latest CVN class which includes systems that were still in the beta stage when installed. Good to see the Navy is doing its bit to deal with the budget.

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