Submarine Industrial Base Council (SIBC)’s Post

The House's FY2025 defense spending bill only provides funding for one Virginia-class attack submarine, instead of the typical two. This decision goes against the wishes of a bipartisan group of lawmakers who have lobbied for two subs to sustain the industrial base and meet US Navy requirements. The bill allocates $3.6B for one Virginia-class sub and $3.7B in advance procurement for future boats. However, this leaves uncertainty for supply chain companies not receiving advance funding. The House Armed Services Committee had previously authorized partial funding for a second sub, but appropriators sided with the Navy's request for just one due to production delays and industrial base constraints. This move could impact the Navy's ability to meet fleet requirements, including the AUKUS agreement to provide Australia with up to 5 attack subs over the next decade. Congress is still finalizing the FY2025 defense budget, so the future of Virginia-class sub funding remains in flux. #DefenseNews #NavalPower #MilitarySpending #Congress #DefenseSpending #NavalShipbuilding #VirginiaClassSubmarines

As a team at Holowan Industries, we're closely following the recent developments in defense budgeting. Congress has passed a temporary spending bill, crucial for avoiding a government shutdown. This bill, however, imposes limitations on the Pentagon's initiatives and, by extension, impacts the defense contracting sector, including emerging companies like ours. The bill maintains budgets at last fiscal year's levels, potentially leading to a year-long freeze for FY24. This scenario is particularly challenging as it slows down Pentagon contracting processes, affecting everything from shipbuilding to Air Force procurement. One significant exemption within the bill allows the Navy to begin building the second Columbia-class ballistic missile submarine. However, other major projects like the Virginia-class submarine and the Constellation-class frigate await a full FY24 defense spending bill. For the Air Force, crucial initiatives like the C3 battle management system are stalled. This system is a part of the Pentagon's broader goal of establishing a unified AI-powered network. Additionally, the Pentagon's plan to ramp up munitions production, including 155mm artillery shells, is facing delays, highlighting the broader implications of the continuing resolution on the defense supply chain. At Holowan Industries, we're adapting our strategies to navigate these uncertain times. We remain committed to innovation and agility, ensuring that we're ready to capitalize on opportunities and mitigate the challenges presented by the current budget landscape. Staying informed and prepared is key. For more insights on the defense industry’s current state, check out the full articles: https://lnkd.in/dZSN4v4K

In early April, the U.S. Navy—in a “rare public accounting”—announced that nine of its key shipbuilding programs were facing notable delays (https://lnkd.in/gV6Zq4zA). Unfortunately, the Navy isn’t the only government agency struggling to build ships on time and on budget. The US Government Accountability Office recently issued a report (link below) finding that the U.S. Coast Guard, part of the Department of Homeland Security, “continues to face challenges in its highest priority shipbuilding acquisition programs—the Offshore Patrol Cutter [(OPC)] and Polar Security Cutter [(PSC)].” According to GAO, the primary culprits for schedule delays and cost increases are design instability (“The shipbuilders have yet to stabilize their designs”) and inadequate program oversight, such as the Coast Guard’s failure to establish, and then enforce, key project milestones. GAO also cited poor contractor performance as a contributing cause of the delays and cost overruns. For example, GAO stated that the two companies overseeing the OPC stage 1 and PSC contracts, respectively, each lacked “the necessary business systems . . . to monitor cost and schedule performance on their contracts.” As all government contractors know, contract performance issues, such as delays and unexpected cost growth, can lead to litigation with the government. Have questions about a pending or ongoing government contracting dispute? Give Ward & Berry, PLLC a call! https://lnkd.in/gPJeyWCZ #coastguard #navy #shipbuilding #govcon #disputes #opc #psc Ryan Berry Daniel Ward Ryan Bradel Eric Kronman Amanda Merced Michael Hatch Tyson Marx Camille Chambers Chelsea Padgett Nicholas Perry Matthew Saliman Brian Yu Jill Berry Kerry McCarthy Juliana Berry

SOS—Save the US Navy (Commission) By Mackenzie Eaglen AEIdeas June 04, 2024 The Army and Air Force have both previously had outside, independent reviews which offered valuable recommendations and actionable insight. The Commission on the Future of the Army was tasked with attempting to resolve a so called “civil war” between active and reserve components and worked diligently to find solutions towards “balancing competing roles and missions objectives between the Regular Army and the Reserve Components.”  In the end, the Army took 42 of the 63 of its commission’s recommendations for action, resolving many of the cross-cutting policy disputes. Similarly, despite initial delays in the Air Force implementing its own Commission’s findings, the recommendations were widely hailed as constructive by Air Force leadership and the service has worked to implement many since.  Though Congress has already included language in the 2025 National Defense Authorization bill, to save the Commission and provide the Navy with similar actionable recommendations, Congress must act to preserve and extend the life of the Commission and ensure the panel has the necessary time and resources to complete our work.

Congress is wisely directing the DoD to utilize its SkillBridge Program to direct separating Service members into the Defense Industrial Base in the FY2025 National Defense Authorization Act. SEC. 569G. SKILLBRIDGE FOR THE SUBMARINE INDUSTRIAL BASE. (a) IN GENERAL.—Not later than September 30, 2025, the Secretary concerned shall— (1) conduct a survey to determine which such employers in the submarine industrial base are experiencing workforce shortages; and (2) use the Skillbridge program to provide members training under such program with such employers. (b) PREFERENCE.—In selecting an employer under subsection (a), the Secretary concerned shall give preference to smaller employers. (c) REPORT.—Not later than one year after the date of the enactment of this Act, the Secretary of Defense shall submit to the Committees on Armed Services of the Senate and House of Representatives a report on implementation of this section.

This is awesome - and I 100% support the concept. But ... for a congressional document, there is not a single call for a change or update to law, code, policy, etc. The "strategy" does mention the Jones Act twice - with the second mention coming the closest to a policy recommendation: "Strengthen America’s maritime workforce and the Jones Act Fleet—the backbone of our sea service." Gentlemen - with respect - the Jones Act does not need strengthening - it needs repealing and replacing. The Jones Act is outdated and a driver - if not the main driver - of the slow death of the American maritime industry. If congress attempts to legislate the market when it comes to attempts to revitalize the maritime industries of the United States, unfortunately, there will be two results, 1) the industries will continue to fail and decline, and 2) civilian, government, and military vessels that will continue to be mandated to be constructed in the U.S. will become even more expensive. https://lnkd.in/em2Wi796

Government shutdown: How it could impact the military, civilians and defense industry LINK: https://lnkd.in/gzA7QwsA Hashtags: #USDefense #Government #Contracts #Awards Link: https://lnkd.in/ep9cgX_Q