Overview of NASSCO for NDIA

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• Overview of NASSCO for NDIA
• Steve Clarey
• July 13, 2005

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BACKGROUND
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Background

• Original business was founded in 1905 as the
  California Iron Works. Moved to the waterfront in
  1944 to build boats and barges. NASSCO as a
  corporate entity was formed in 1959, and began
  constructing large ocean-going ships.
• In November 1998, NASSCO joined the Electric Boat
  Corporation and Bath Iron Works as the third
  shipyard in General Dynamics Marine Group.
• U.S. shipbuilding industry is highly segmented by
  product type and customer
• GD EB and NG Newport News -- SSNs and CVNs
• GD BIW and NGSS Ingalls - CGs, DDGs, LHDs
• NGSS Avondale - LMSRs, LPDs, and commercial
  ships
• GD NASSCO - AOEs, LMSRs, T-AKEs and commercial
  ships
• Kvaerner Philadelphia - commercial containerships
  and product tankers
• 25 of NASSCO business is repair. NASSCO is the
  prime maintenance contractor for the U.S. Navy
  LHA/LHD amphibious assault ships and the FFG-7
  class of surface combatants.
• NASSCO is the only remaining major repair yard on
  the west coast capable of performing major battle
  damage or structural repairs for the Navy.

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U.S. Navy Ships
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Commercial Ships
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RECENT/CURRENT PROGRAMS
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Strategic Sealift - LMSR
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TOTE ORCA Class Alaskan Trailership
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BP Alaska Class Tanker
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Dry Cargo /Ammunition Ship - T-AKE
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T-AKE Innovations
Open Transfer Deck
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Improved Cargo Elevators

• Optimized arrangements
• Dedicated pre-stage areas
• Wide cargo flow paths

Bi-Parting Door w/ Integrated Guards
Lightweight Composite Dunnage
Shipboard Warehouse Management System

• Integrated diesel-electric drive
• Multi-purpose, convertible cargo holds
• 40-year service life

• Heavy UNREP kingpost incorporated
• Dedicated oversize cargo area on transfer deck
  for QUADCONS, a/c jet engines, etc.

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Full Service Repair on U.S. West Coast
Since the 1980s, NASSCO has accomplished more
than 300 U.S. Navy surface ship repair
availabilities across every class of surface ship.
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FACILITIES and WORKFORCE
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Facilities and Workforce

• 2 Building Ways
• 1 Graving Dock
• 1 Floating Dry Dock
• 8 Full Service Berths
• 6 Production Shops
• 10 portal cranes

• Port District Leased Property
• 80 Acres of Land
• 46 Acres of Water
• Largest industrial manufacturer in San Diego
  Region 4200 employees

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Facility Improvements - 135M by GD
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FUTURE NAVY PROGRAMS
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NASSCO T-AOE(X) Concept Design

• Non-developmental design drawing on NASSCOs
  T-AKE and BP tanker designs
• Double-hull construction post-panamax beam
  ABS rules for CLF vessels
• Commercial standards ABS/USCG regulations for
  cargo segregation
• 26 knot speed integrated electric drive
  (non-developmental commercial system)
• T-AKE level of survivability with increased
  redundancy in power and propulsion
• MSC-operated with reduced number of FAS
  stations from AOE-1
• AOE-1 dry cargo capacities with improved
  throughput to support CVN 21

BUSINESS SENSITIVE INFORMATION-NOT TO BE PUBLICLY
DISCLOSED. ALL INFORMATION CONTAINED IN THIS
SHEET IS BUSINESS SENSITIVE AND SHALL BE HANDLED
IN ACCORDANCE WITH NAVSEA INST. 4295.1B
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Navy Proposed MPF(F) Platforms
3 - T-AKE
2 LHA(R) (MEB C2) 1 BLT

• Lightship Displacement 25,700 MT
• Landing Spots 2/ship
• Accommodations 194/ship
• Personnel 20 Marines/ship
• Ship Speed 20 kts

• Lightship Displacement 30,862 MT
• Landing Spots 9/ship
• Accommodations 3000/ship
• Personnel 1,542 Marines/ship
• Ship Speed 22 kts

3 Mobile Landing Platform (New Design)
1 LHD (AVN C2) 1 BLT

• Lightship Displacement 28,423 MT
• Landing Spots 1/VERTREP
• Accommodations 1300/ship
• Personnel 1,112 Marines/ship
• Ship Speed 20 kts

• Lightship Displacement 28,333 MT
• Landing Spots 9/ship
• Accommodations 3000/ship
• Personnel 1,542 Marines/ship
• Ship Speed 22 kts

2 - Legacy Dense Pack
3 LMSR (Modified Design)

• Lightship Displacement 36,289 MT
• Landing Spots 2/ship
• Accommodations 345 500 Surge/ship
• Personnel 705 Marines/ship
• Ship Speed 24 kts
• Designed for Army Equipment

• Lightship Displacement 19,900 MT
• Landing Spots 1/ship
• Accommodations 62/ship
• Personnel 20 Marines ship
• Ship Speed 18 kts

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T-AKE Seabasing Variant
CONOPS skin-to-skin transfers with commercial
containerships to on-load TEUs 20-foot
containers
Would have at least one High Capacity Seabased
Sustainability (HiCASS) crane on the starboard
side plus vacuum mooring and DPS
MISSION Seabased Sustainability
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LMSR Seabasing Variant

• Mission RO-RO/ Prepositioning, Mission Tailored
  Packages

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MLP Mobile Landing Platform - Concept
CURRENT LMSR
MLP CONCEPT SHIP
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FUTURE COMMERCIAL PROGRAMS
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What is the Jones Act?

• Merchant Marine Act of 1920
• Cabotage law requiring that any vessel trading
  merchandise between two US ports be
• Built in the US
• Includes hull and superstructure
• Does not include outfitting
• Be US flagged
• Owned by a US citizen
• Crewed by US citizens

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Jones Act Overview Dry Cargo
ALASKA
TO GUAM
TO PUERTO RICO
HAWAIIAN ISLANDS
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Jones Act Overview Tanker Trade
ALASKA
ANS CRUDE
ConocoPhillips
VIA PANAMA CANAL
HAWAIIAN ISLANDS
CLEAN PRODUCTS
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MARITIME INDUSTRY IN SAN DIEGO
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NASSCOs Impact on San Diego Economy

• Largest manufacturing employer and 10th largest
  
• private employer in San Diego
• More than 2 million in annual property taxes
• Second largest defense contractor in San Diego
• Annual revenues of 750 million - 75 from new
• construction 25 from repair of U.S. Navy
  ships
• Annual payroll - 185 million
• Purchasing/subcontracting in California 245M
• San Diego purchases/subcontracts 152 million
• San Diego small business contracts 80 million

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People Building Ships - Employment

• PEOPLE MAKE US SUCCESSFUL
• Today NASSCO employs more than 4,200 and
  hiring
• 3600 in production including salaried
  supervision
• 200 naval architects, marine engineers, and
  designers

NASSCO IS ONE OF THE LARGEST SKILLED LABOR
EMPLOYERS IN SAN DIEGO

• Above average hourly wage (23.43), full
  benefits,
  
  extensive training and education programs
• Essential employment niche between San Diegos
• high technology industries and tourist-based
• service industry
• Large minority employer - minorities represent
• 76 of hourly workforce and 33 of salaried
  workers

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Maritime Issues in San Diego

• NASSCO the last remaining shipbuilder on the
  West Coast
• A vibrant ship repair and maintenance industry to
  support the Navy in San Diego and the CNOs Fleet
  Response Strategy 10,000 workers
• A small but growing cargo industry 10th Avenue
  Terminal and the National City terminal Pasha
  and an expanding Pasha Hawaii Transport Lines
• 10th Avenue Terminal a vital resource for
  NASSCO to support military and commercial
  shipbuilding NASSCO 10,000 tons/year
• The fastest growing cruise ship port in America
  600,000 visitors in 2005 aging cruise ship
  infrastructure
• Land use and encroachment expanding residential
  and tourism versus a healthy marine industry and
  a strategic homeport for the U.S. Navy

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Summary - Key Issues

• NASSCO is a strategic resource to the nation
  to the Navy to the Southern California region
• Navy will always need a balanced capability
  across mission areas and an efficient industrial
  base to produce ships for each mission
  combatants, submarines, and auxiliary ships
• NASSCO and GD are investing in NASSCOs future
  the business base, however, must be sustainable
• A healthy shipbuilding industry requires
• Stable programs
• Sustained funding
• Program continuity
• Preservation of key shipbuilding technologies
• Marine Industry is an essential and growing part
  of the San Diego economy