Marine Log - January 2008 - (Page 13) from the Secretary of the Navy. This one would determine, on a one-time, nonrecurring basis, and in consultation with the Department of Labor, the average number of H2B visa workers employed by the major shipbuilders in the construction of U.S. Navy ships during the calendar year ending December 31, 2007. The study shall also identify the number of workers petitioned by the major shipbuilders for use in calendar year 2008, as of the first quarter of calendar year 2008. The results of this study would be required no later than April 1, 2008. The H2B non-immigrant visa program permits U.S. employers to hire foreign workers to come temporarily to the U.S. and perform temporary non-agricultural services or labor on a one-time, seasonal, peakload, or intermittent basis. WAIT FOR IT! Congress is also trying to ensure that shipbuilding programs don’t start lead ship construction prematurely. The conference report requires that concurrent with approving the start of construction of the first ship for any major shipbuilding program, the Secretary of the Navy shall 1) Submit a report to the congressional defense committees on the results of any production readiness review; and 2) Certify that the findings of any such review support commencement of construction. The report must include, at a minimum, an assessment of : (1) The maturity of the ship’s design, as measured by stability of the ship contract specifications and the degree of completion of detail design and production design drawings; (2) The maturity of develop- mental command and control systems, weapon and sensor systems, and hull, mechanical and electrical systems; (3) The readiness of the shipyard facilities and workforce to begin construction; (4) The Navy’s estimated cost at completion and the adequacy of the budget to support the estimate; (5) The Navy’s estimated delivery date and description of any variance to the contract delivery date; (6) The extent to which adequate processes and metrics are in place to measure and manage program risks. LCS STICKER SHOCK As can be imagined, the conference report has a lot to say about the Littoral Combat Ship program. Back in March 2007 (p.27) we reported that Rep. Gene Taylor (D-Miss.), Chairman of the House Seapower and Expeditionary Forces panel, was aggrieved because the cost of the first LCS from Lockheed Martin was going to come in way above the estimated $270 million and could reach “almost $400 million.” In 2008, an LCS price tag of $400 million would apparently look good, because now the conference report is stipulating that “the total amount obligated or expended for the procurement costs of post2007 LCS vessels shall not exceed $460,000,000 per vessel.” It also requires that the Secretary of the Navy employ a fixed-price type contract for construction of post-2007 LCS vessels and that he not enter into a contract, or modify a contract, for construction or final delivery of post-2007 LCS vessels if the limitation of the Government’s cost liability, when added to the sum of other budgeted procurement costs, would exceed $460,000,000 per vessel. www.marinelog.com JANUARY 2008 MARINE LOG 13 http://www.stearnsinc.com http://www.stearnsinc.com http://www.marinelog.com
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