PROVISION TO PRESERVE MULTIPLE SHIPYARD DD(X) ACQUISITION STRATEGY PASSES MAJOR CONGRESSIONAL HURDLE, INCLUDED IN CONGRESSIONAL SUPPLEMENTAL APPROPRIATIONS AGREEMENT

Washington, DC – Senators Olympia Snowe and Susan Collins announced tonight that a provision to prevent the Navy from proceeding with a one shipyard acquisition strategy for the DD(X) program this year, was given the green light by Senate and House appropriations negotiators. The language to preserve the current system that provides for two shipyards to construct DD(X) destroyers - including Bath Iron Works (BIW) - was included in the conference report of the Supplemental Appropriations bill. The provision is in opposition to a Navy proposal that would result in only one shipyard building all of the DD(X) destroyers.

The provision that Senators Snowe and Collins worked to have included in the appropriations bill prevents any federal funds from being used to change the acquisition strategy that the Pentagon currently uses for DD(X) contracts. The legislative language was approved tonight by Senate and House conference negotiators as part of the Supplemental Appropriations bill.

"This prevents the Pentagon from proceeding with its one shipyard proposal," said the Senators in a joint statement. "It is vital to the national security requirements of our country that we maintain two working shipyards with the capability to build major surface combatants for our naval fleet. Two shipyards ensure greater competition in the long run – both in the development of cutting edge technology and in ensuring the best price for the taxpayer. It also ensures that we can ramp up production if necessary to meet future defense needs."

The Supplemental Appropriations conference report must now receive final approval by the Senate and House. Once approved, it would be sent to the President for his signature.

The Senate last week approved the Fiscal Year 2006 budget resolution that also included provisions that are critical for BIW, most significantly a provision that will allow for Advanced Appropriations for future U.S. Navy ships, including the DD(X) destroyers. Advanced appropriations would allow Congress to spread out the costs of major ships, such as the DD(X), over several years, instead of in a lump sum.

###