FEATURE ARTICLE  

Could Deepwater Help Lift U.S. Industrial Might? 

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The Coast Guard’s plan to upgrade its aging fleet could help improve the competitiveness of the U.S. shipbuilding industry, regardless of the number of ships the Coast Guard buys, experts said.

The modernization effort is called “Integrated Deepwater Systems.” Under this program, the Coast Guard would replace 93 cutters, 206 aircraft and all its communications systems, over a 20-year period. Three contractor teams currently are competing for a March 2002 award.

The number of ships needed to modernize the Coast Guard’s fleet of cutters and patrol boats alone would generate significant business for a U.S. shipyard. But, if the Coast Guard decided to buy commercially-designed ships as part of the Deepwater fleet—instead of only traditional military-type vessels—it would spawn potentially lucrative export opportunities for U.S. industry.

“If Deepwater is allowed to have a commercial hull, we have a real shot at having the first U.S. government-built vessel that is highly exportable to many countries,” said Michael J. Brown, executive vice president of AMI International, a naval analysis firm in Bremerton, Wash.

Unlike most U.S. Navy ship programs, Deepwater does not specify to contractors how many ships or aircraft to include in their proposals. The project focuses on “capabilities, not [the number of] platforms,” said the program executive officer, Coast Guard Rear Adm. Patrick Stillman.

The guidelines to contractors, however, allow for “commercially available and non-developmental items” to be used as the “building blocks, components and assets of the integrated Deepwater system.”

According to Brown, who specializes in global market trends in the shipbuilding industry, if Deepwater included a commercial hull, instead of U.S. Navy-specified hulls, “that levels the playing field to be able to export it.” That would be a boon for the industry, said Brown, because shipyards would be able to compete in the global market, unencumbered by the export restrictions associated with U.S. Navy ships.

Northrop Grumman Litton-Avondale Industries, Lockheed Martin Corp. and Science Applications International Corp. lead three separate industry teams competing for Deepwater. Their proposals were due June 15.

Richard Turner, program manager for Deepwater at Lockheed Martin, declined to comment on the potential use of commercial hulls in his company’s proposal. “It gives away my solution to the other competitors,” he said. Turner noted that his team has looked at commercial vessels, such as a British trimaran.

The Deepwater project was conceived in 1998, when each team received a $7 million contract to develop concepts. In fiscal 2002, when the program starts the next phase, it will receive $338 million. The Coast Guard expects to spend approximately $10 billion over a 20-year period.

This program differs radically from traditional Navy modernization efforts, experts noted.

“When we think about the Coast Guard, we have to think in different terms from those of us who are used to Navy terms,” said Norman Polmar, a naval analyst. Coast Guard ships are underway more often and perform more work per deployment than the Navy, he said. Unlike the Navy, which often takes ships to sea for combat exercises, Coast Guard cutters are, on a daily basis, performing rescue, search and anti-drug operations. Deepwater missions are defined as those 50 miles from shore. Other operations include airplane crash rescue and recovery and oil-spill cleanups.

The largest Coast Guard cutters are 12 Secretary-class 378-feet long vessels, which are comparable to navy frigates. The centerpiece of the Deepwater system is a so-called “national security cutter,” a multi-mission ship which the Coast Guard required contractors to include in their proposals, to replace the Secretary-Class cutters.

The average age of current Coast Guard ships is 33 years, said Capt. Robert Parker, who commands the USS Mellon, a Hamilton-class 278-foot cutter, one of the largest in service today. By comparison, a navy surface combatant has a service life of 30 years. Coast Guard cutters have a 35-year expected lifespan.

In an interview, Parker said he hoped the Deepwater program will address the need to improve maintenance on ships and provide systems that can handle the harsh demands of long-distance sea travel. “In the Pacific, the distances are just frightening,” said Parker. “Days and days of steaming, usually without seeing anyone.”

The current cutters are old, so it’s difficult to get parts, Parker said. The aging structures make them unsafe and vulnerable to flooding. The guns are outdated, he added, so the Navy does not buy parts or ammunition for them any longer.

The Deepwater ships will be equipped with new guns. Current cutters have the 76 mm Mk 75 gun, made by United Defense LP (UDLP), under license from Italy’s Otobreda. “It’s a terrific weapon [and] very accurate,” said Parker. But, he added, the guns are old and “harder to support.”

UDLP is proposing three weapons variants for Deepwater: the Mk 75 76 mm 62 caliber naval gun, and two other guns from its Bofors Defence division, in Sweden—the Mk 3 57 mm and the Mk 3 40 mm.

Otobreda, meanwhile, is proposing an upgraded version of its 76 mm 62-caliber gun, called Super Rapid. This gun is in the proposals of Avondale and SAIC. The Lockheed Martin team has an agreement with UDLP.

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