US Defence Budget FY 2013
SUMMARY
The Fiscal Year (FY) 2013 President’s Budget develops a defense strategy to transition from emphasis on today’s wars to preparing for future challenges; protects the broad range of U.S. national security interests; advances the Department’s efforts to rebalance and reform; and supports the national security imperative of deficit reduction through reduced defense spending. The FY 2013 Base Budget provides $525.4 billion, a reduction of $5.2 billion from the FY 2012 enacted level ($530.6 billion) and is consistent with Administration-wide efforts to make tough cuts and create savings. The budget adjusts programs that develop and procure military
equipment, begins to re-size ground forces, slows the growth of compensation and benefit programs, continues to make better use of Defense resources by reducing lower priority programs, and restructures for more efficient approaches to doing business.
The incremental costs of Overseas Contingency Operations (OCO), including ongoing efforts in Afghanistan and support for the Office of Security Cooperation in Iraq, are funded separately in the FY 2013 budget request at $88.5 billion, a decrease of $26.6 billion from the FY 2012 enacted level. Details on these costs are presented in the OCO chapter.
Department of Defense Budget
DoD Budget
$ in Billions
|
FY 2011
Actual
|
FY 2012
Enactment
|
FY 2013
Request
|
FY12 – 13
Change
|
Base
|
528.2
|
530.6
|
525.4
|
-5.2
|
OCO
|
158.8
|
115.1
|
88.5
|
-26.6
|
Total Budget
|
687.0
|
645.7
|
613.9
|
-31.8
|
FY 2013 – FY 2017 TOPLINE
Figure 1-3 shows the proposed FY 2013 – FY 2017 DoD topline in this President’s Budget, as compared to last year’s FY 2012 President’s Budget. The FY 2013 topline for the years FY 2013 to FY 2017 is reduced by $259.4 billion.
DoD Proposed Outyear Topline for the Base Budget
$ in Billions
|
FY 2013
|
FY 2014
|
FY 2015
|
FY 2016
|
FY 2017
|
FY13 – 17 TOTAL
|
FY 2012 PB
|
570.7
|
586.4
|
598.2
|
610.6
|
621.6
|
2,987.5
|
FY 2013 PB
|
525.4
|
533.6
|
545.9
|
555.9
|
567.3
|
2,728.1
|
Delta
|
-45.3
|
-52.8
|
-52.3
|
-54.7
|
-54.3
|
-259.4
|
KEEPING FAITH WITH THOSE WHO SERVE
Over the past 10 years, members of the Armed Forces have endured prolonged and repeated deployments. More than 46,000 men and women have been wounded, and more than 6,200 have lost their lives.
MORE DISCIPLINED USE OF RESOURCES
The FY 2013 budget continues efforts started in the FY 2012 budget to reduce the cost of doing business by identifying opportunities for better use of resources. The Department continues to find further savings associated with streamlining overhead and headquarters, business practices and support activities. The FY 2012 budget proposed more than $150 billion in efficiencies, and we continue to monitor progress in implementing these changes. The FY 2013 budget proposes an additional $61 billion in reductions during the period FY 2013 – FY 2017 as a result of reduced overhead, improved business practices, and reduced support requirements. Unlike the FY 2012 budget where the Military Departments were authorized to keep their savings of $100 billion and invest them in high priority requirements, in FY 2013
the $61 billion will be applied to deficit reduction.
The FY 2013 budget continues the reform agenda advanced in the previous three budgets, but with greater emphasis on changing how DoD does business:
• FY 2010 budget: Focused on weapons programs, e.g., terminating F-22 fighter production and the VH-71 Presidential helicopter. Also began insourcing (replacing contractors with DoD civil servants).
• FY 2011 budget: Again focused on weapons programs, e.g., ended C-17 production and stopped pursuit of a second engine for the Joint Strike Fighter.
• FY 2012 budget: Much more focus on DoD business operations, but plans did include some changes in weapons programs. Also proposed military health care changes.
• FY 2013 plan: Continues focus on DoD business operations, overhead activities and support functions.
Military Department Savings for FY 2013 – FY 2017 ($30.8 Billion)
Department of Army ($18.5 billion)
• Streamline installation support functions and reduce installation support ($5.3 billion)
• Consolidate information technology enterprise services ($1.4 billion)
• Streamline management headquarters and administrative support functions ($0.7 billion)
• Reduce civilians supporting overhead functions ($0.9 billion)
• Reduce recruiting, advertising and enlisted incentives as a result of economic conditions ($0.7 billion)
• Defer training range revitalization projects ($1.3 billion)
• Delay MILCON projects and facility restoration and modernization ($5.8 billion)
• Reduce equipment technical support and ammunition sustainment ($1.7 billion)
• Streamline Personnel Security administration ($0.4 billion)
• Other streamlining efficiencies ($0.3 billion)
Department of Navy ($5.7 billion)
• Implement strategic sourcing of commodities and services ($2.2 billion)
• Consolidate information technology enterprise services ($1.6 billion)
• Streamline organizations ($0.7 billion)
• Reduce procurement modifications ($0.3 billion)
• Increase buying power ($0.7 billion)
• Other streamlining efficiencies ($0.2 billion)
Department of Air Force ($6.6 billion)
• Consolidate information technology enterprise services ($1.1 billion)
• Reduce service support contractors ($1.2 billion)
• Reduce administrative travel and permanent change of station travel ($0.5 billion)
• Streamline contracting ($0.4 billion)
• Reduce inventories ($0.3 billion)
• Reduce accessions and force development and training ($0.5 billion)
• Delay MILCON projects ($2.4 billion)
• Other streamlining efficiencies ($0.2 billion)
DoD-Wide Savings for FY 2013 – FY 2017 ($30.2 Billion)
Civilian Pay Raises ($10.4 billion). The civilian pay increase for FY 2013 was limited to 0.5 percent.
Defense Agency/Office of the Secretary of Defense ($10.7 billion). Initiatives include reducing overhead, staffing, and expenses; more efficient contracting and acquisition; and more.
Better Buying Power ($5.3 billion). As described at the end of this chapter, this initiative would obtain greater efficiency and productivity in defense spending by improving the way the Department acquires critical defense goods and services.
Ensure Compliance with the Executive Order on Promoting Efficient Spending ($0.5 billion). Reductions were made to travel, printing and reproduction by leveraging technology to teleconference and provide information in electronic form.
Reduce Combatant Command Support Costs ($1.5 billion). Initiatives include reducing overhead and support costs.
Reduce Defense Working Capital Fund Rates ($1.1 billion). Reduce rates for supplies and printing provided by the Defense Logistics Agency, financial services provided by the DoD
Finance and Account Service, and Pentagon space as a result of cost reductions.
Delay and restructure various facility projects ($0.6 billion)
FORCE STRUCTURE CHANGES
The strategic guidance prescribes a smaller and leaner force structure. The restructured force will be balanced by technological advancements. The force will be able to deter and defeat aggression, maintain flexibility to ensure surge capability, and readiness that ensures effective mobilization. The force will be ready for the full range of missions assigned in the guidance.
Force Structure Changes FY 2013 through FY 2017
• The Army eliminates a minimum of 8 Brigade Combat Teams (BCTs) and studies brigade structure.
• The Navy eliminates 7 cruisers and 2 Dock Landing Ships (LSDs).
• The Marine Corps eliminates 1 infantry regiment headquarters, 5 infantry battalions (4 active and 1 reserve), 1 artillery battalion, 4 Tactical Air squadrons (3 active and 1 reserve), and 1 combat logistics battalion.
• The Air Force eliminates 6 combat coded fighter squadrons (1 active and 5 reserve components) and 1 non-combat coded fighter squadron (active).
– The active component includes 1 A-10 squadron and 1 F-15C squadron.
– The reserve component includes 4 A-10 squadrons and 1 F-16 squadron.
• The Air Force reduces 303 aircraft:
– 123 Combat Aircraft – 102 A-10, 21 F-16
– 150 Mobility and Tanker Aircraft – 65 C-130, 27 C-5A, 20 KC-135, 38 C-27
– 30 Intelligence, surveillance, and reconnaissance (ISR) Aircraft – 11 RC-26, 1 E-8C, 18 RQ-4
End Strength Changes FY 2013 through FY 2017
Reflecting these force structure changes, the Department’s overall military end strength (Base and Overseas Contingency Operations) changes from 2,269,700 in FY 2012 to 2,238,400 in FY 2013, a 1.4 percent reduction equating to 31,300 in end strength. By FY 2017, the overall military end strength will be 2,145,800, a 5.5 percent reduction equating to 123,900 in end strength from FY 2012. Details provided below:
• Army Active, Reserve, and Army National Guard end strength in FY 2013 is 1,115,300 – 0.9 percent less than FY 2012. In FY 2017 the end strength will be 1,048,200, a 6.8 percent reduction from FY 2012.
• Navy Active and Reserve end strength in FY 2013 is 385,200 – 1.7 percent less than FY 2012. In FY 2017, the end strength will be 376,600, a 3.9 percent reduction from FY 2012.
• Marine Corps Active and Reserve end strength in FY 2013 is 236,900 – 2.0 percent less
than FY 2012. In FY 2017 the end strength will be 221,700, an 8.3 percent reduction from FY 2012.
• Air Force Active, Reserve, and Air National Guard end strength in FY 2013 is 501,000 – 1.9 percent less than FY 2012. In FY 2017, the end strength will be 499,300, a 2.3 percent reduction from FY 2012.
ARMY MODERNIZATION CHANGES
CAPABILITY IMPROVEMENTS
Warfighter Information Network – Tactical (WIN-T) Funding in FY 2013 is $0.9 billion and totals $6.1 billion from FY 2013 – FY 2017.
CH-47 Chinook Helicopter Funding in FY 2013 is $1.2 billion and totals $5.7 billion from FY 2013 – FY 2017.
Stryker Vehicle Funding in FY 2013 is $0.3 billion and totals $0.5 billion from FY 2013 – FY 2017.
TERMINATIONS AND RESTRUCTURINGS
High Mobility Multi-Wheeled Vehicle (HMMWV) Recapitalization Termination
The Army and Marine Corps propose the termination of the HMMWV Recapitalization program. The combined savings in FY 2013 is $0.2 billion and totals $0.9 billion from FY 2013 – FY 2017.
Joint Air-to-Ground Missile (JAGM) Restructuring
The proposed savings in FY 2013 is $0.3 billion and totals $1.6 billion from FY 2013 – FY 2017.
Ground Combat Vehicle (GCV) Delay
The Department proposes the GCV restructuring in order to accommodate the fact-of-life adjustments to the program. The proposed savings is $1.3 billion in FY 2013 and totals $1.3 billion from FY 2013 – FY 2017.
Joint Light Tactical Vehicle (JLTV) Restructuring
The Department proposes restructuring JLTV due to revised pricing estimates. The
proposed savings in FY 2013 is $0.2 billion and total $2.1 billion from FY 2013 – FY 2017.
Family of Medium Tactical Vehicles (FMTV) Restructuring
The Army proposes the restructuring of the FMTV program in FY 2013 due to Department funding constraints. The proposed savings in FY 2013 is $0.1 billion and total $2.2 billion from FY 2013 – FY 2017.
Joint Land Attack Cruise Missile Defense Elevated Netted Sensor System (JLENS)
Restructuring
The JLENS fills the capability gap to provide a persistent, 360-degree, 3-dimensional,
surveillance and integrated fire control capability. The Army will restructure JLENS and assume a manageable risk in Cruise Missile Defense, and subsequently rely on Joint aerial assets to partially mitigate any associated capability gaps. The proposed savings in FY 2013 is $0.4 billion and totals $2.2 billion from FY 2013 – FY 2017.
NAVY AND MARINE CORPS MODERNIZATION CHANGES
CAPABILITY IMPROVEMENTS
Shipbuilding
The FY 2013 President’s Budget requests funding for the procurement of 10 new ships. The 10 ships include: 2 Virginia-class attack submarines, as well as funding for the design of the Block 5 Virginia Payload Module, which will increase future Virginia-class submarine strike payload capacity; 2 DDG-51 class Aegis Destroyers; 4 Littoral Combat Ships (LCSs), 1 Joint High Speed Vessel (JHSV) and 1 CVN-21-class aircraft carrier. This will allow the Navy to carry out its many missions, including safely patrolling and keeping open international sea lanes such as the Horn of Africa, Strait of Hormuz, Strait of Malacca, and the South China Sea.
The FY 2013 budget requests $38 million for design efforts to construct a modified Mobile Landing Platform (MLP) variant known as the Afloat Forward Staging Base (AFSB), planned for procurement in FY 2014. The AFSB will provide troop berthing and aviation modules that will offer the Combatant Commanders greater flexibility and provide additional in-theater capability. Funding for the construction of Navy and Sealift ships and the development of the Block 5 Virginia Payload Module is $17.7 billion in FY 2013 and totals $83.7 billion from FY 2013 – FY 2017.
Aircraft Procurement
The FY 2013 budget requests funding for the procurement of 26 F/A-18E/F aircraft, now in the fourth year of a multi-year contract. The Super Hornet possesses enhanced range, payload and survivability features compared with the C/D model aircraft and was first operationally deployed in 2002. Funding is $2.2 billion in FY 2013 and totals $3.5 billion from FY 2013 – FY 2017. The FY 2013 budget requests funding for the procurement of 12 EA-18G aircraft. The EA-18G, with its Airborne Electronic Attack capability to detect, identify, locate, and suppress hostile
emitters, is the Navy’s replacement for the EA-6B. Funding is $1.0 billion in FY 2013 and totals $1.1 billion from FY 2013 – FY 2017. The FY 2013 budget also requests funding for the procurement of Small Tactical Unmanned Aircraft Systems (STUAS) and modifications. The STUAS provides persistent Intelligence, Surveillance and Reconnaissance and target acquisition support for tactical maneuver decisions at the unit level for the services and SOCOM. Funding is $32 million in FY 2013 and totals $0.3 billion from FY 2013 – FY 2017.
TERMINATIONS AND RESTRUCTURINGS
Medium-Range Maritime Unmanned Aerial System (MRMUAS) Termination
To terminate the MRMUAS program in FY 2013. The proposed savings is $0.2 billion in FY 2013 and totals $1.3 billion from FY 2013 – FY 2017.
Joint High Speed Vessels (JHSV) Restructuring
The Department proposes reducing the procurement of JHSV in the FY 2013 budget from 18 ships to 10 ships. The proposed savings is $0.2 billion in FY 2013 and totals $1.5 billion from FY 2013 – FY 2017.
MV-22 Osprey Restructuring
Due to the changing force structure requirements of the Marine Corps, the Department proposes reducing the MV-22 ramp by 24 aircraft from FY 2013 – FY 2017. The deferral of 24 aircraft to beyond the FYDP is estimated to save $875 million as compared to the FY 2012 President's Budget FYDP estimate, with $0.4 billion attributable to FY 2013. The cost avoidance estimated from FY 2013 – FY 2017; based on the reduced quantity ramp, will be $852 million. The total of the reduced MV-22 FYDP ramp and the follow on MYP will total more than $1.7 billion, with $0.4 billion attributable to FY 2013.
P-8A Poseidon Restructuring
Due to changing priorities within the Department and funding constraints, the Department deemed that it was a manageable risk to reduce P-8A procurement by 10 aircraft from FY 2013 – FY 2017. Savings total $5.2 billion from FY 2013 – FY 2017.
E-2D Advanced Hawkeye (AHE) Surveillance Restructuring
Due to changing priorities, the Department deemed that it is a manageable risk to reduce the AHE program by 9 aircraft from FY 2013 – FY 2017. The proposed savings is $0.3 billion in FY 2013 and totals $0.5 billion from FY 2013 – FY 2017.
SSBN(X) Development Delay
The Department determined that it is a manageable risk to delay SSBN(X) development by two years. The proposed savings is $0.6 billion in FY 2013 and totals $4.3 billion from FY 2013 – FY 2017.
AIR FORCE MODERNIZATION CHANGES
CAPABILITY IMPROVEMENTS
CYBER Capabilities
The FY 2013 budget request continues to strengthen CYBERCOM to ensure our military is ready to effectively operate in cyberspace across the full range of cyber contingencies. Funding in FY 2013 is $3.4 billion and totals $18.0 billion from FY 2013 – FY 2017.
Space Capabilities
Overall, space funding in FY 2013 is $8.0 billion and totals $40.1 billion from FY 2013 – FY 2017.
New Bomber
The average procurement unit cost is anticipated to be about $550 million in FY 2010 dollars for a fleet of 80-100 aircraft. Funding in FY 2013 is $0.3 billion and
totals $6.3 billion from FY 2013 – FY 2017.
NATO Alliance Ground Surveillance System
The FY 2013 budget requests funding for 3 NATO Alliance Ground Surveillance (AGS) systems. Funding is $0.2 billion in FY 2013 and totals $0.9 billion from FY 2013 – FY 2017.
Strategic Deterrence
The FY 2013 budget request continues to support the nuclear triad that maintains a safe, secure and effective arsenal to deter potential adversaries and assure U.S. allies. Highlights include continued support to the National Nuclear Security Agency providing an additional $439 million in FY 2013 and $2.9 billion from FY 2014 – FY 2017 for nuclear weapons and naval reactor activities; Department funding
for Strategic Deterrence is $2.7 billion in FY 2013 and totals $25.1 billion from FY 2013 – FY 2017.
TERMINATIONS AND RESTRUCTURINGS
Joint Strike Fighter (JSF) Restructuring
Due to changing Department priorities, funding constraints, and the need to reduce
concurrency, the Department determined that it is a manageable risk to reduce procurement by a combined total of 13 aircraft in FY 2013 and 179 aircraft from FY 2013 – FY 2017. The proposed Navy/Air Force savings is $1.6 billion in FY 2013 and totals $15.1 billion from FY 2013 – FY 2017.
RQ-4 Global Hawk Block 30 (GH30) Termination
The Department has determined that the termination of the GH30 is a manageable risk and proposes to extend U-2 operations until FY 2025. The proposed savings is $0.8 billion in FY 2013 and totals $2.5 billion from FY 2013 – FY 2017.
Defense Weather Satellite System (DWSS) Termination
The proposed savings is $0.5 billion in FY 2013 and totals $2.3 billion from FY 2013 – FY 2017.
C-130 Avionics Modernization Program (AMP) Termination
The proposed savings is $0.3 billion in FY 2013 and totals $2.3 billion from FY 2013 – FY 2017.
C-27J Joint Cargo Aircraft Termination
The Department has deemed that it is a manageable risk to terminate this program because many of its missions can be accomplished by the legacy C-130 fleet. The proposed savings is $0.2 billion in FY 2013 and totals $0.4 billion from FY 2013 – FY 2017.
KC-46A Tanker Restructuring
The FY 2013 budget request proposes to restructure the KC-46A program to reflect the development and production plans associated with the newly awarded contract. The FY 2013 budget continues to support development of a new aerial refueling tanker restructuring production funding from FY 2013 to FY 2015 to support the signed contract. The proposed savings is $1.0 billion in FY 2013 and totals $2.4 billion from FY 2013 – FY 2017.
Unmanned Air Systems Restructuring
The FY 2013 program sustains 65 MQ-1/9 combat air patrols with a surge capability to 85; retains the Predator longer than previously planned, protects funding for the Army’s Gray Eagle, and continues the development of new capabilities. The Department has determined that 24 MQ-9 Reaper aircraft adequately support 65 combat air patrols and has reduced the procurement of the MQ-9 Reaper by 24 aircraft and reinvested the funds in ground stations.
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