Fy19 Budget Plan Bolsters U.S. Navy Procurement in FY19 And Beyond
(Source: Forecast International; issued March 26, 2018)
The service wants $21.9 billion for ships ($2 billion over FY18), $19.1 billion for aircraft ($3.9 billion over FY18), $3.7 billion for weapons ($144 million over FY18), $9.4 billion for other procurement ($1.1 billion over FY18), and $2.9 billion for Marine Corps procurement ($788 million over FY18).
The Navy's base procurement budget is slated to remain flat in FY20, then increases to $63.2 billion in FY21 (+8.1 percent), $66 billion in FY22 (+4.4 percent), and $68.4 billion in FY23 (+3.7 percent). The aircraft account remains relatively flat through most of the FYDP, but jumps sharply between FY22 and FY23, reaching $22 billion. The weapons account shows strong growth throughout the FYDP, reaching $5.4 billion by FY23. Shipbuilding funding fluctuates over the next five years, but is consistently higher than planned under the previous administration.
Some fluctuation in the shipbuilding account is normal, given the fact that shifting the timeline of a single ship can have a major impact on the topline. The shipbuilding account drops to $21 billion in FY20, then increases to $24.4 billion in FY21 and $26.4 billion in FY22 as the first Columbia class ballistic missile submarines are procured, then dips slightly to $26 billion in FY23. The service's RDT&E budget declines steadily over the FYDP, totaling $18.5 billion in FY19, $17.6 billion in FY20, $16.1 billion in FY21, $14.4 billion in FY22, and $14.3 billion in FY23.
The Navy wants $2 billion for 24 F/A-18E/Fs, and the spending plan increases Super Hornet production through the FYDP. The FY18 budget plan funded 80 Super Hornets through FY22, but the Navy now plans to buy 110 aircraft between FY19 and FY23. The FY19 budget includes $1.8 billion for 10 P-8A aircraft, compared to seven planned. The final nine aircraft will be included in the FY20 budget. A planned buy of 18 AH-1Z helicopters was increased to 25 aircraft in FY19, at a cost of $820.8 million. No additional AH-1Zs are funded beyond FY19.
Although the FY18 request did not project any C-40As in FY19, the request includes $206 million for two aircraft. The budget also includes $1.1 billion for nine F-35Cs, $2.3 billion for 20 F-35Bs, $1.1 billion for eight CH-53Ks, $806.3 million for seven V-22s, $742.7 million for four E-2Ds, $160.4 million for two KC-130Js, $568.7 million for three MQ-4 Tritons, $649 million for six VH-92A executive helicopters, and $1.2 billion for F-18 modifications.
The Navy once again wants to end production of new Tomahawk missiles, focusing instead on the recertification process for the existing inventory. The service also wants $1.1 billion for Trident II missiles, $212.2 million for 141 AMRAAM missiles, and $490.2 million for 125 SM-6 missiles.
The FY19 request bolsters the Navy's shipbuilding account, but the service will still be unable to reach its desired 355-ship fleet any time soon. It should be noted that the goal of expanding the fleet not only relies on increasing new ship production, but also on extending the service life of existing designs. The request includes $5.3 billion for three DDG 51 class destroyers and $488 million for destroyer modifications. The previous budget plan funded two destroyers per year, for a total of 10 ships through the FYDP. The FY19 spending plan funds three destroyers per year, except in FY20 when two are funded, for a total of 14 ships through the FYDP.
The FY18 defense policy bill authorized the Navy to enter into a multiyear deal for up to 15 DDG 51s between FY18 and FY22. The budget also increases spending on the Expeditionary Sea Base and T-AO 205 class oiler programs. The request adds one ESB in FY19 and one in FY20. The previous spending plan funded one oiler per year, while the FY19 plan alternates between two ships and one ship per year between FY19 and FY23.
The budget also includes $3 billion for the Columbia class submarine, $1.6 billion for the Ford class aircraft carrier, $4.4 billion for two Virginia class submarines and $2.8 billion in advance procurement, $646.2 million for one Littoral Combat Ship, and $80.5 million for one T-ATS ship. Congress may step in to increase the LCS buy in FY19. The service also wants funding for two LCU 1700 landing craft and five LCAC 100 Ship-to-Shore Connectors.
The Navy is seeking $718.9 million for continued development of the MQ-25 unmanned tanker, the single most expensive line in the service's RDT&E account. The FY19 allocation for the MQ-25 is $485 million more than planned, and a total of $3.3 billion has been programmed through FY23. The budget adds $105.4 million over projected funding levels for directed energy and electric weapon systems development, for a total of $233.3 million in FY19. This line item funds the Navy's railgun and Surface Navy Laser Weapon System projects. Funding for the Offensive Anti-Surface Warfare (OASuW) weapon is $78.3 million higher in the FY19 budget than originally planned, totaling $143.1 million.
The RDT&E account also includes $511.5 million for F-35 improvements under two new Continuous Capability Development & Delivery (C2D2) line items, $514.8 million for the Columbia class submarine, $459.5 million for the Next Generation Jammer, $326.9 million for the CH-53K, $245.1 million for the VH-92 executive helicopter, $233.6 million for the E-2D, and $219.4 million for MQ-4 Triton modernization.
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Vehicles and Missiles Come Out Ahead in U.S. Army's FY19 Budget Request
(Source: Forecast International; issued March 26, 2018)
The request contains $27.8 billion for Army procurement ($22.9 billion base and $5 billion OCO), which is $6.6 billion more than the FY18 request. The service wants $4.1 billion for aircraft, $5.2 billion for missiles, $5.6 billion for weapons and combat vehicles, $2.5 billion for ammunition, and $9.3 billion for electronics and other procurement programs. The procurement budget (excluding OCO) is slated to drop to $21.8 billion in FY20, at which point it begins another climb, ultimately reaching $24.4 billion in FY23.
Compared to the FY18 request, the FY19 budget provides a $2.1 billion increase for missiles, $2 billion more for weapons and combat vehicles, and $2.5 billion more for "other procurement." However, the aircraft account is $429 million less than requested in FY18. Furthermore, the $3.8 billion allocated in the Army's base aircraft budget is the most money the Army will see for aircraft in any given year through the entire FYDP. The aircraft account falls to $3.4 billion in FY20, and totals $3.7 billion in FY21, $3.3 billion in FY22, and $3.3 billion in FY23.
The Army also wants $10.5 billion for RDT&E in FY19, which is $940 million above the FY18 request. The Army's research and development budget declines by an average of 4.4 percent per year through the FYDP, dropping to $9.4 billion in FY20, $8.9 billion in FY21, $8.8 billion in FY22, and $8.5 billion in FY23. These figures do not include future OCO funding, but OCO represents only a small fraction of the R&D budget.
The M1 Abrams tank is the biggest winner in the Army's acquisition budget. The service requested $1.5 billion to upgrade 135 tanks (including 40 paid for with OCO funding), compared to only 20 tanks projected for FY19 in the previous year's budget plan. The Army also wants $961.6 million for other Abrams improvements, up from $248.5 million planned. Congress has historically added funding to the budget for Abrams upgrades, but now the Army is taking the initiative. Funding for Bradley modifications has also increased - to $675.4 million, up from $333 million planned, with another $205 million provided for 61 Bradley conversions.
The Army wants $710.2 million for 197 Armored Multi-Purpose Vehicles (AMPVs), as well as $469.1 million for development, an increase of $325.3 million from the planned amount. The request also includes $1.3 billion for 3,390 Joint Light Tactical Vehicles (JLTVs), $418.8 million for 36 Paladins, $152.9 million for 38 M88A2 Hercules recovery vehicles, and funding for 12 assault breacher vehicles and 30 joint assault bridge vehicles.
The Patriot and Guided Multiple Launch Rocket System programs also saw significant funding increases. The budget includes $1.1 billion for 240 Patriot MSE (Missile Segment Enhancement) missiles, up from 95 missiles planned. A further $313.2 million is set aside for Patriot modifications. A total of $984.1 million is included for 9,540 MLRS rockets, compared to 1,242 rockets planned.
It should be noted that about two-thirds of the FY19 rocket buy is funded through the OCO account, for which the DoD does not provide a forecast. Another $502.2 million is included in the request for MLRS modifications, up from $102.2 million planned. The Army also wants $255 million for 2,684 HELLFIRE missiles, $276.5 million for 1,046 Joint Air-to-Ground Missiles (JAGMs), $334.8 million for 784 Javelin missiles, and $105 million for 1,472 TOW missiles.
Procurement under the Army's Warfighter Information Network-Tactical program was zeroed out, reflecting a cut of $404.6 million in FY19 and a total of $1.6 billion through FY22. The change reflects the Army's decision to end WIN-T Increment 2 and to revamp its network strategy. The service will spend $1.3 billion in procurement funding on other major network programs in FY19, including $469.1 million for tactical network technology modernization, $431.4 million for the Joint Battle Command-Platform, and $351.6 million for handheld, manpack, and small form fit (HMS) radios. The Army budget also includes $351.6 million for the Distributed Common Ground System-Army (DCGS-A) and $327.3 million for counterfire radars.
The service's research and development budget includes $411.9 million for combat vehicle improvements, $393.6 million for Mobile Protected Firepower, $277.6 million for Army Integrated Air and Missile Defense (AIAMD), $192.6 million for the Improved Turbine Engine, $186.5 million for Long-Range Precision Fires, $157.8 million for CH-47F improvements, $157.7 million for the Indirect Fire Protection Capability Increment 2 Block 1, and $154.1 million for Guided MLRS.
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