No, its supposed to work like that.
From the 1.07 patch:
Code:
36. Fixed - Results of Ship states:
No Supply - 1 movement point. Cannot cloak.
Critical Failure - Half normal movement points. Cannot resupply or reordnance others.
Half attack and defense modifier. Cannot cloak.
Mothballed - 0 movement points. Cannot resupply or reordnance others. Cannot cloak.
0 Supplies and Ordnance. 0 Crew. 0 Shields. 0 attack and defense modifier.
No spaceyard capabilities.
Cloaked - Cannot resupply or reordnance others. No spaceyard capabilities.
Critical Failure = Loss of your bridge, all life support, all crew quarters, or all your crew
(a Master Computer when present, replaces the previous criteria).