Authorization Bill Clashes With Ship Force Level

The Bush administration has stated that it "strongly opposes" provisions in the House-approved fiscal year (FY) 2004 National Defense Authorization Act (H.R. 1588) that would cut $1.7 billion from information technology programs and delay the planned retirement of a number of ships and aircraft. The strongest opposition was aimed at the bill's reduction in information technology programs and at separate provisions requiring the Navy to maintain no fewer than 305 vessels in its active fleet and the Air Force to have 46 fighter squadrons in its active force. Although the Navy plans to retire several destroyers and cruisers over the next 18 months, leaving the active fleet with only 292 ships by late 2004, H.R. 1588 directs the Navy to keep no fewer than 305 ships in the active fleet. The administration is strongly concerned about the added cost of keeping these ships in the active fleet. According to the Congressional Budget Office, delaying the ship retirements could incur operation and maintenance costs totaling $1.1 billion from FY 2005 to FY 2008.

Homeland Security Concerns Voiced

Senate Commerce, Science, and Transportation Committee Chairman John McCain (R-Ariz.) and ranking member Ernest (Fritz) Hollings (D-S.C.) released a statement saying that the administration has failed to address the port security mandates outlined in the Maritime Transportation Security Act (MTSA), which was signed into law last year and created the nation's first maritime security guidelines. In the statement, McCain and Hollings said they were concerned that the Transportation and Homeland Security Departments are not effectively implementing the MTSA requirements.

The two senators, who said they want a tracking system for large tankers in operation as soon as possible, also said that there have been problems in coordinating security efforts among federal agencies both at home and abroad. According to the Coast Guard, the largest agency in the new Department of Homeland Security, it will take more than $6.6 billion over the next 10 years for privately owned port facilities alone to meet the baseline mandates in the MTSA. Given that less than $500 million has been appropriated for this over the last two years, the Homeland Security Department generally, and the Coast Guard particularly, will need significant increases in funding to achieve their goal.

Hollings and McCain said they have asked the General Accounting Office (GAO) to examine the administration's original port vulnerability assessments and to explain how it estimated the costs for addressing security deficiencies. They also asked GAO to come up with recommendations on how the government should develop the new programs called for in the MTSA such as the Sea Marshal program, an Automated Vessel Identification System, maritime intelligence system requirements, transportation worker identification cards, and various related requirements to evaluate and certify the security of systems used in international transportation.

Obsolete Vessel Disposal Provision

Included in the Defense Authorization Act for FY 2004 (H.R. 1588) is a provision the Navy League has been advocating for the last year. H.R. 1588 authorizes $20.0 million--an increase of $8.6 million above the president's budget request--for the disposal, by 30 September 2006, of all vessels in the National Defense Reserve Fleet that are not otherwise assigned to the Ready Reserve Force or otherwise designated for a specific purpose. The provision states that domestic scrapping may be the most competitive and appropriate course of action, expresses disappointment that only 14 vessels have been scrapped over the last two years, and relays the concern of Congress that any further delays in scrapping the vessels could result in harm to the marine environment and lead to a potentially more expensive disposal plan. The legislation recommends the use of a domestic private-sector integrator with experience in the management of ship scrapping projects that can facilitate the efficient and environmentally sound disposal of the vessels, which in the long term could result in cost savings to the Maritime Administration. n

Jeremy M. Miller is director of legislative affairs of the Navy League.