Budget Request Trims Modernization; Procurement Funds Buy Capability

WASHINGTON, February 11, 2016 — Modernization took the biggest hit in the Defense Department's fiscal year 2017 budget request, but the $102.5 billion in the procurement account can purchase a lot of capabilities, Mike McCord, DoD’s chief financial officer, told reporters at a Feb. 9 Pentagon news conference.

As part of the Bipartisan Budget Act signed in November, the Defense Department had to make up $22 billion in its budget. Modernization took the biggest hit, McCord said.

“Modernization took the brunt of the reduction,” he said. “I would say not in a stupid way. We didn’t terminate programs. We didn’t break multi-year [procurements].”

The act gave DoD two years of relief from sequestration and gave defense planners most of what they believed they needed for the years ahead, McCord said.

Defense officials really didn’t touch compensation, force structure or readiness in the fiscal year 2017 defense budget request. There are no civilian reductions-in-force or other cuts to personnel, “that would involve sort of flailing around and breaking things,” McCord said. “We were careful and thoughtful in how we approached this.”

Aviation Systems

The department took some risk in modernization. There are 24 fewer UH-60 Black Hawk helicopters in the budget and five fewer F-35 Lightning II joint strike fighters for the Air Force. There are fewer V-22 Osprey tilt-rotor aircraft. Overall, reduced aircraft accounts saved about $4 billion, McCord said.

There is also less money in the budget for shipbuilding, the comptroller said.

But even with these cuts, there is still $102.5 billion in procurement proposed in FY 2017, and that can buy a lot of capabilities, he said.

While there will be fewer F-35s, DoD is still asking for 63 of the fifth-generation aircraft. The Marine Corps would get 16 of the F-35B short-takeoff/vertical landing models, the Navy would get four of the F-35C carrier models and the Air Force would get 43 of the F-35A conventional models.

Again, while there will be fewer V-22s requested, DoD still budgeted for 16 of the tilt-rotor aircraft.

The military services are asking for 14 C-130J Hercules airlifters. The aircraft has uses in conventional and special operations roles.

The Air Force has budgeted $3.3 billion for 15 KC-46A tankers.

In unmanned aircraft, DoD is asking for 24 more MQ-9 Reapers, two more RQ-4 Global Hawks and eight RQ-7 Shadows and RQ-21 Blackjacks.

The proposed budget has room for 52 AH-64 Apache helicopters, 22 CH-47 Chinooks and 36 Black Hawks.

The Navy is asking for six E-2D Hawkeye airborne early warning aircraft.

The Marine Corps wants 24 more AH-1Z Viper or UH-1Y Venom attack helicopters.

The Navy has asked for 11 more P-8A Poseidon maritime patrol aircraft, and two more F/A-18 Super Hornet jets.

Planning for tomorrow continues with the Air Force budgeting $2.1 billion for the Long Range Strike Bomber.

Ground Systems

DoD proposes spending $9.8 billion in fiscal year 2017 for ground systems, which includes weapons, combat vehicles and light, medium and heavy tactical vehicles.

The Army plans to buy 1,828 joint light tactical vehicles, 481 heavy tactical vehicles and 1,100 medium tactical vehicles. The Army is upgrading the M1 Abrams battle tank and M109 Paladin family of howitzers. The service is also replacing the venerable M113 armored personnel carrier with the armored multi-purpose vehicle.

The Marine Corps is buying light and medium tactical vehicles and investing in the amphibious combat vehicle.

Missile Systems

Ballistic missile defense program spending totals $8.5 billion in the proposed 2017 budget. Tactical missile defense accounts for $1.8 billion, tactical ballistic missile defense is pegged at $1 billion and $5.7 billion is aimed at the ballistic missile defense system. These include systems such as the Terminal High-Altitude Area Defense system, the Patriot PAC-3 and Aegis systems.

To replenish missile stocks depleted by the fight against the Islamic State of Iraq and the Levant, the FY 2017 budget request asks for $13.9 billion for everything from AIM-120 Advanced Medium-Range Air-to-Air Missiles to Joint Air to Surface Standoff Missiles to Joint Direct Attack Munitions. The department is also asking for 5,846 AGM-114 Hellfire missiles.

Sea, Space Systems

Shipbuilding and maritime systems take up $27 billion of the procurement total with $12.5 billion going for surface combatant ships, $7.8 billion for submarines and $2.9 billion for support ships.

The Navy has asked for $2.7 billion for building the next two nuclear aircraft carriers -- the USS John F. Kennedy and USS Enterprise. The service has also asked for $3.5 billion for two more Arleigh Burke-class destroyers and $1.6 billion for two more littoral combat ships. They have also budgeted $1.6 billion for an America-class amphibious assault ship.

Around $5.3 billion is going to two more Virginia-class attack submarines. The Navy has also asked for $1.8 billion for the Ohio-class nuclear missile submarine replacement.

Finally, in space the department has budgeted $7.1 billion. This includes $3.2 billion for satellites, $1.2 billion for support and $2.7 billion for launches.