Defense Contractors in S.D. Would Benefit From Spending Bill

House-Senate conferees Thursday approved a defense spending bill containing several programs that would provide work for San Diego’s embattled weapons and shipbuilding industries.

The bill allocates about $385 million to continue major defense projects and authorizes about $690 million in new programs open to bidding by local firms.

Staggering from the recession and military spending cutbacks, Pentagon contractors in San Diego are undergoing a painful restructuring. Some firms have announced massive layoffs, while others have said that some production lines will be moved to other plant sites around the country to consolidate manufacturing operations.

The House-Senate version approved Thursday keeps some large defense programs afloat but offers no major revitalization for beleaguered Southern California defense contractors.

Reps. Duncan Hunter (R-Coronado) and Randy (Duke) Cunningham (R-San Diego) sit on the House Armed Services Committee and helped repel Senate efforts to cut back or eliminate some San Diego projects.

But recognizing the changing fortunes of the once-flourishing San Diego defense industry, they offered low-key appraisals of the conference report.

“This is good, steady work for San Diego,” Hunter said.

“These projects will keep thousands of local workers employed,” Cunningham added.

Rep. Ron Packard (R-Oceanside) also participated in some of the defense negotiations.

The $274-billion defense bill was $7 billion below President Bush’s request. It now returns to the House and Senate for approval, and no opposition is expected.

Republicans said they are confident Bush will sign the bill despite earlier veto threats against deep cuts.

The bill contains $200 million to build the last of four combat support ships, which resupply deployed carrier battle groups with ammunition, fuel and other necessities.

The first three of the AOE-6 Class ships were built by National Steel and Shipbuilding Co., which will bid on the remaining ship.

According to aides for Hunter and Cunningham, $200 million previously authorized for the AOE-6 project had been reallocated last spring to another defense project. The conference committee action Thursday earmarked an additional $200 million to keep building the ships, which cost about $500 million apiece.

The bill also authorized these programs for local firms:

* $68 million in continued funding for medium-range unmanned aerial vehicles (recoverable targets for weapons testing) made by Teledyne Ryan Aeronautical.

* $76 million for development of a short-range unmanned aerial vehicle, which will be open to competitive bidding by TRW Inc.

* $6 million for anti-missile weapons using particle beam technology being developed by Titan Corp.

* $127 million in continued funding for 450 advanced cruise missiles. Hughes Missile Systems Co., which will phase out its San Diego cruise missile production in 1994, will manufacture 350 of the weapons, costing about $100 million.

* $10 million for continued development of the advanced anti-radiation guided missile made by Science & Applied Technology Inc. This jet-borne missile is designed to home in on ground-based enemy radars.

* $613 million for acquiring, refitting or building 20 “sealift” ships to transport bulk military supplies. San Diego shipyards would compete for a share of the massive project.