DOD Leases of Foreign-Built Ships: Background for Congress

O' ; Rourke, Ronald

Library of Congress. Congressional Research Service.

关键词: Defense policy;    Leases;    Business;    Defense economics;    Military and naval supplies;   

RP-ID  :  RS22454
RP-ID  :  RS22454_2010Sep28

美国|英语

来源: UNT Digital Library

【 摘 要 】

The Department of Defense (DOD) in recent years has leased some foreign-built cargo ships for total periods, including options and renewals, of almost 10 years -- a length of time that some observers argue effectively circumvents a legal requirement that U.S. military ships be built in U.S. shipyards. These observers, particularly the American Shipbuilding Association (ASA), have proposed reducing the current five-year legal limit on ship leases to two years for foreign-built ships. DOD has opposed the idea, arguing that its ship leases are the most cost-effective way to meet its needs for the ships in question. This report briefly discusses this issue, as well as related legislation.