WASHINGTON — A plan to have Navy destroyers
built at a single shipyard needs more study, a
top Pentagon official said Wednesday,
temporarily ending fears that Bath Iron Works
could lose its share of work on new stealth
destroyers now nearing production. Dugan
Shipway, president of BIW, called the
determination "an encouraging sign."
Maine Sen. Susan Collins agreed but said she
would pursue legislation to prevent the Defense
Department from changing its strategy for
building the so-called DD(X) destroyers.
"It's a positive step forward that supports
our efforts to block the one-shipyard
acquisition strategy for the DD(X)," said
Collins, a Republican and a member of the Armed
Services Committee. "It is not the final word on
the issue, but it certainly is good news that a
high-level Pentagon official who has
responsibility for acquisition policy has
reservations. That is very encouraging."
Shipway, who met Wednesday with Collins, said
the finding - contained in a memo written by
Michael Wynne, the Pentagon's undersecretary for
acquisition - means there will be no decision
about a single shipyard until the Navy studies
the ramifications further.
"This is a signal that (the Navy) is not
quite ripe for any decision yet," he said.
Sen. Olympia Snowe, R-Maine, called the
announcement "proof that they recognize the need
to step back to re-evaluate this ill-advised
one-shipyard policy. Maintaining multiple
shipyards is absolutely vital because we cannot
foresee how many destroyers we will need in the
future."
Wynne's memo came one day after a
congressional hearing at which Navy Secretary
Gordon England defended his proposal to
consolidate destroyer construction at a single
shipyard. Wynne is higher in the chain of
command than England, though England has been
nominated to become deputy defense secretary,
the second-highest official at the Pentagon.
BIW and the Northrop Grumman Ingalls shipyard
in Mississippi have shared destroyer
construction for years, but BIW seemed most
vulnerable to a switch to a single yard. Ingalls
had already won the competition to design the
DD(X) and would have been favored to win the
construction contract, leaving Bath scrambling
to find work for its 6,200 employees.
England maintains the Navy could save $300
million per ship by reducing the overhead of
supporting both shipyards. But critics contend
that having a single builder for surface
warships would leave the country vulnerable to
everything from price hikes to hurricanes.
The single-yard debate took on even greater
significance after the Navy cut back its plans
for destroyer construction, with only five
planned over the next six years rather than the
12 sought a year ago.
In his memo, Wynne authorized the Navy to
seek further industry comment on the strategy of
having a single shipbuilder.
"However, at this time, I consider it
premature to change the shipbuilder portion of
the acquisition strategy which I approved on
February 24, 2004," Wynne wrote.
Collins, meanwhile, is trying to prevent a
winner-take-all strategy through legislation
attached to the $81 billion in emergency funding
for Iraq and Afghanistan that Congress is now
debating. Her provision is included in the
Senate version of the bill but not the House
version. The White House has not taken a
position.
"It's encouraging to have the person in
charge of acquisition strategy for the
Department of Defense listen to the concerns
that we've been raising," Collins said.
"Apparently he shares at least some of our
reservations, or otherwise he would have just
given a green light to the project. What he's
done is turned on a yellow light. This is
certainly good news, but it's not the final
decision."
Michael Keenan, president of the machinists
union in Bath, said the memo was welcome news on
a day when 32 workers were laid off.
"It's something to give hope to the thousands
of shipbuilders that have vested many years at
Bath Iron Works," he said. "It'll also keep our
craftsmen within the shipyard instead of looking
for opportunities outside the shipyard."
Shipway also repeated his commitment to keep
BIW operating. He agreed that the yard could
build Coast Guard ships at some point in the
future, but said he is not interested in taking
away work from another company lined up to build
those ships at this time.
"We will look for opportunities every place
they are," he said. "BIW is going to be here for
decades into the future. We build destroyers. We
hope to be able to build more destroyers in the
future, more DD(X), and maybe Coast Guard
cutters."