NEWTOWN, Conn. -- The FY19 defense appropriations bill contains a larger funding increase for Navy shipbuilding than any of the individual committee bills drafted earlier in the year. In the end, lawmakers provided nearly $2.3 billion in additional money for shipbuilding programs, part of which is intended to support future construction.

The Navy requested funding for a single Littoral Combat Ship in FY19 ahead of a planned transition to an improved frigate design in FY20. The conference bill ads $950 million for another two LCS in FY19. The Navy recently awarded contracts for the three LCS funded in FY18. The appropriations bill also includes funding for one additional expeditionary fast transport and three more LCAC 100 Ship-to-Shore Connectors.

The Navy's FY19 budget request reflected a decision to increase its planned number of large surface combatants from 88 ships to 104 ships. As part of that effort, the FY19 budget increased the DDG 51 built rate from two ships per year to three ships annually in FY19, FY21, FY22, and FY23, increasing the number of ships in the program's FY18-FY22 multiyear contract to 13. The conference bill adds $250 million in advance procurement for an additional destroyer in FY20.

The conference spending bill also adds $350 million for the LPD Flight II program for "advance procurement for fiscal year 2020 LPD Flight II and/or multiyear procurement economic order quantity." The Senate originally wanted to provide $500 million for this purpose, while the House version of the defense bill did not include additional funding.

The legislation adds $350 million in advance procurement for LHA 9 in support of a contract award in FY21. The FY19 budget plan projected advance procurement funding for LHA 9 starting in FY23 ahead of procuring the ship in FY24. Congress also added $225 million to the FY19 budget to expand the submarine industrial base in support of the Columbia class submarine program.

Source: Forecast International - International Military Markets
Associated URL: http://www.forecastinternational.com
Author: S. McDougall, Defense Analyst