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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (59693)	4/27/2006 3:39:22 PM
From: shades	Read Replies (1) \| Respond to of 110194

House Panel Seeks 2-Ship Limit On DD(X) Destroyer . By Rebecca Christie Of DOW JONES NEWSWIRES WASHINGTON (Dow Jones)--A House Armed Services Committee panel on Thursday proposed limiting the DD(X) destroyer to just two ships, which the Navy could start building next year. U.S. Rep. Roscoe Bartlett, R-Md., Projection Forces Subcommittee chairman, said DD(X) had grown too expensive to justify a full ship class. Since the program of record is now only seven ships, the Navy should focus on two ships with fancy new technology and save money for future projects. "We really do need a technology demonstration platform," Bartlett said. He urged the Navy to build new propulsion systems and other technologies that may eventually be used in a decade on the CG(X) next-generation missile defense cruiser. Bartlett's panel approved a defense authorization bill that would provide $2.6 billion for the DD(X) destroyer. It largely supports the Navy's desire to start two ships simultaneously, so General Dynamics Corp. (GD) and Northrop Grumman Corp. (NOC) both can begin work. The bill would authorize full funding for one of the ships, while allowing detailed design contracts for the other. This would have the effect of allowing both contractors to move forward at the same pace, Bartlett said. The two shipbuilders would benefit from another measure approved by the panel. If enacted, it would provide $400 million next year to start an additional Virginia-class submarine in 2009. This would allow the Navy to accelerate its transition to two submarines per year, which contractors say would bring down per-ship costs. Aircraft programs also would shift if the panel's proposals become law. The subcommittee's mark would add $390 million for three additional C-17 cargo planes, using $300 million the administration had sought to begin line shutdown. The remaining money for the extra C-17s would come from the Air Force's new tanker program. Air Force officials say the service needs its first new tanker more than it needs additional C-17s. But Bartlett said the Air Force was moving so slowly on the new tanker program that it wouldn't be able to spend the money in 2007 anyway. The subcommittee approved Bartlett's mark unanimously, with strong endorsements from panel Democrats. U.S. Rep. Gene Taylor, D-Miss., praised the creative approach to fund two destroyers at once. "Last year we in Congress required the Navy and the shipbuilding industry to use both surface combatant shipyards to build the DD(X). The Navy complied, and I believe this compromise allows us to be consistent in our direction to the department," Taylor said. All of the House Armed Service Committee's subcommittees marked up the 2007 defense authorization bill this week. The entire bill is scheduled to go before the full committee next week. -By Rebecca Christie, Dow Jones Newswires; 202-862-9243; rebecca.christie@dowjones.com (END) Dow Jones Newswires April 27, 2006 13:38 ET (17:38 GMT) Copyright (c) 2006 Dow Jones & Company, Inc.- - 01 38 PM EDT 04-27-06