Congress amended 10 U.S.C. 7310 in 1996 to ensure that U.S. Navy ships homeported in the United Stares would be repaired in U.S. shipyards. Congress' intent was to ensure that the American industrial base would be preserved and that the American shipyard industry would benefit from the work that the U.S. Navy contracts for repairs. A number of the MSC ships have been repaired in foreign shipyards under the current Navy policy, disregarding the intent of Title 10.
Foreign shipyards are often government-subsidized.
American shipyards are at an additional competitive disadvantage because U.S. companies comply with U.S. environmental, safety and minimum wage laws. The U.S. Navy's current policy results in the loss of American jobs in American shipyards and undermines national security by eroding the American industrial base. Western governors further urge the U.S. Navy to repair its ships, including vessels of the MSC, in U.S. shipyards. Western governors recognize that this policy would not affect the Navy's ability to perform voyage and emergency repairs, when necessary, in foreign shipyards. The Western Governors' Association shall convey this resolution to the President of the United States, the Secretary of Defense, the Secretary of the Navy, and to relevant committees and subcommittees of Congress.