Navy shipyards and defense supply chains with Maiya Clark

Researcher Maiya Clark at the Heritage Foundation joined me on the Acquisition Talk to discuss her recent paper on the Navy's public shipyards as well as other industrial base matters. She finds that the four remaining public shipyards, which service the Navy's entire nuclear fleet, are all over 100 years old. They are not designed to maintain larger ships like the Ford-class carriers or Block 5 of the Virginia-class submarines. As a result of under-investment in capital, maintenance delays have been on the rise. Though delays have trended back in the right direction, exceptional procedures like 45% overtime on an on-going basis cannot last forever. During the episode, we discuss: - The Navy's Shipyard Infrastructure Optimization Plan (SIOP) - How a fault line can claim one shipyard in Puget Sound - What's wrong with Buy American proposals - A research agenda for defense supply chains - The viability of Trusted Capital Marketplace One major issue concerning the public shipyards is whether they can service a growing fleet. While the Navy's ship count reached a nadir of 275, Congress was receptive to a plan for 355 ships. More recent discussions have the figure north of 500. Much of that expansion is in non-nuclear surface and unmanned vessels. But it still raises the question about shipyard maintenance capacity. The Navy's SIOP capital investment plan of $21 billion over 20 years -- which is likely to be underfunded -- will recover most of the expected maintenance delays for today's fleet. Even if the Navy could expand ship production, it isn't clear how they could be maintained. The Navy may find itself with the same readiness metrics debate going on in the tactical aircraft world. I see two interpretations. First, over-production of major weapons that cannot be sustained in peacetime is a risk-management proposition. Production lead times are very long. In times of emergency, it is easier to surge operations and support capacity than it is industrial production capacity. Countering that view, it is likely that many existing weapon systems will be found vulnerable to new systems and CONOPS. Having more outdated and outclassed systems could be a recipe for disaster. Such was the stance the US Army found itself in prior to WWII. For example, General Hap Arnold said using B-18s against Germany was "suicide." This podcast was produced by Eric Lofgren. Soundtrack by urmymuse: "reflections of u". You can follow us on Twitter @AcqTalk and find more information at AcquisitionTalk.com.