Tag Archives: Jonathan Greenert

Will Sequestration Sink General Dynamics' Aegis Destroyer?

By Katie Spence, The Motley Fool

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Sequestration’s in full swing, and it’s putting a kink in the Navy’s ship-buying plans. Before sequestration took effect, the Navy signed a multi-year procurement contract, which saved money by buying ships in bulk. Now, however, the defense budget has been cut, and that contract’s in jeopardy. This is bad news for defense contractors on the DDG 51 Aegis Destroyer contract and could also be bad news for investors. Here’s what you need to know.

U.S. Navy photo by Paul Farley. Public domain, via Wikimedia Commons

Who builds what
Both General Dynamics‘ Bath Iron Works shipbuilding company and Huntington Ingalls Industries‘ Ingalls Shipbuilding build the DDG 51 Aegis Destroyer, with the Navy typically buying ships from each builder.

In a move to save money, the Navy signed a 30-year shipbuilding plan that saw the purchase of 10 Aegis Destroyers for the price of nine. It also increased the Navy’s shipbuilding budget from $15 billion to almost $19 billion annually. Now, Rep. Randy Forbes (R-Va.), chairman of the House Armed Services Committee, has expressed grave concerns about funding the 30-year plan and has asked the Navy for “a scintilla of evidence” that it can be done.  

One of the reasons the Navy’s costs are so astronomical is that the service also has to replace the Ohio, a nuclear-capable submarine dating to the 1980s. Adm. Jonathan Greenert, chief of Naval operations, has stated, “People ask me what is my No. 1 program of concern, and I will tell you it’s the Ohio replacement program.” Not only is the Ohio outdated, but the replacement program will also provide 70% of the United States‘ nuclear deterrent capabilities.  

With the price of the new subs and the need for new ships, the Navy is seeing its costs escalating, which of course conflicts with the 10-year, $500 billion cut to defense spending under sequestration . 

Will the Navy remain mission-capable?
Ships aren’t the only area where the Navy is seeing cuts; the service was also planning on purchasing one P-8A maritime surveillance plane from Boeing , one E-2D Hawkeye battle management aircraft and two unmanned Fire Scout helicopters from Northrop Grumman , and one F-35C carrier fighter from Lockheed Martin — all of which face being cut.  

Clearly, this is all bad news for defense contractors. It’s also bad news for the Navy, as it relies on these systems to remain mission-ready.

What now?
What’ll happen to the Aegis Destroyer contract remains to be seen, but it’s not looking great. If it does get cut, General Dynamics and Huntington Ingalls could see their stocks suffer. On the other hand, that might end up being a great time to load up on defense stocks at a discounted rate. Yes, sequestration is hurting defense, and contracts are being cut, but as I’ve said before, defense contractors are essential to the military. Consequently, while defense contractors may be hampered in the short term, in

Source: FULL ARTICLE at DailyFinance

U.S. Navy Lays Down the LaWS for Iran

By Rich Smith, The Motley Fool

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The Internets are buzzing this week — the complex series of tubes practically vibrating with excitement over a new video just released by the U.S. Navy.

What the video shows is the new, unimaginatively named Laser Weapon System, or LaWS, that the Naval Sea Systems Command has developed to shoot down enemy drones and disable small boats. In just under one minute of footage, the video shows the LaWS first setting a target drone afire, and then literally cutting it in half while in flight.

Installed aboard the Arleigh Burke-class guided missile destroyer USS Dewey, the LaWS is said to have shot down three drones in tests conducted off the California coast last summer. Further tests conducted on land resulted in a further nine shootdowns. So it’s official now, folks. The U.S. Navy now has a bona fide laser gun in its arsenal. And as Chief of Naval Operations Adm. Jonathan Greenert avers: “It works.”

Most amazingly of all, the new LaWS was apparently developed on a relative shoestring budget (in Pentagon terms) — a mere $40 million, invested over six years of research, spent to develop the prototype. Already, the program is said to be two years ahead of schedule in its development. Next year, the Navy intends to put the weapon in the field in maneuvers off the Iranian coast aboard the Austin-class amphibious transport dock USS Ponce. And if all goes well, and the weapon goes into production, the cost of subsequent systems should drop dramatically.

Speaking of costs, Chief of Naval Research Rear Adm. Matthew Klunder says the LaWS will cost “about one dollar to shoot.” That’s orders of magnitude less than a cannon shell or guided missile costs, and even cheaper than the cost of the targets the LaWS would probably be pointed at — enemy drones, boats, warplanes, and anti-ship missiles. This raises the very real possibility that developing this new space-age weapons system could actually lower the cost of U.S. defense spending, rather than increase it.

Further research will be needed, of course, to grow the weapon to its full potential. According to wired.com, for example, the current version of LaWS is believed to be incapable of generating a laser beam of even 100 kilowatts. It’s plenty hot enough to kill a flimsy drone, but probably not robust enough to take down a full-sized warplane or anti-ship missile just yet. Ultimately, the military would really like to build a laser gun capable of transmitting a full megawatt of energy — probably tapping into a ship’s power system to get the necessary juice. Once that’s accomplished, however, the resulting beam would be hot enough to burn through 20 feet of steel in a second and dispatch most targets it might be pointed at in mere nanoseconds.

How to invest in it
Many companies are involved in the race to develop a workable laser gun. Witness the now-defunct team effort among Boeing , …read more

Source: FULL ARTICLE at DailyFinance