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December 31, 2018 | International, Aerospace, Naval, Land, C4ISR, Security

Budget Busters: What to Look For in 2019 and Beyond

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The release of the 2020 defense budget is still over a month away, and it's already been a wild ride. A look at what has happened, and what might happen next.

WASHINGTON: If there's one complaint that has sounded a consistent across the Joint Chiefs and Pentagon leadership in recent years, it has been the lack of predictability in year-to-year funding.

If there's one thing we have learned about President Trump, it's that nothing is certain until the very end. And even when there's a decision, it can be flipped, rehashed, tinkered with or forgotten about in the time it take to knock out a Tweet on phone. After two years of budget certainty in 2018-19, the 2020 submission was humming along at $733 billion — until it wasn't. In late October, the number plummeted (relatively speaking) to $700 billion, until the president was convinced by Defense Secretary Jim Mattis — not yet on his way out at the time — to rocket it up to $750 billion.

But even that number isn't certain. Most analysts see the 2020 submission settling around the $733 billion level. Visiting US troops at the Al Asad air base on Dec. 26, the president gave the latest vague update. “I mean, I want to see costs come down, too. But not when it comes to our military. You have to have the finest equipment anywhere in the world, and you have that — $716 billion. And this year, again, we're going to be — don't tell anybody because nobody else knows — even a little bit higher.”

Whatever the number is, it appears likely that incoming acting Defense Secretary Patrick Shanahan will be the one to deliver and defend it on Capitol Hill in February, as Mattis has been told to leave by Jan. 1. It's unclear what effect the firing of Mattis will have on the process, or if there will be any significant strategic shifts for the department given the change in leadership.

As budget guru Todd Harrison of the Center for Strategic and International Studies told me this week — specifically in reference to the Space Force, but it really applies across the entire budget — “the thing to keep in mind is that this is, so far, just the Pentagon's proposal to the White House. It's not clear if the White House is going to agree to this. The president has a way of sticking to his ideas even if his own administration recommends otherwise.”

Here are a few of the stories we've done over the past months breaking down what is happening, and what might — might — happen next.

Full article: https://breakingdefense.com/2018/12/budget-busters-what-to-look-for-in-2019-and-beyond

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    April 9, 2020 | International, Aerospace

    Open source platforms, flexible airframes for new drones

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  • Boeing Gets $3.9 Billion Contract for New Air Force One

    July 18, 2018 | International, Aerospace

    Boeing Gets $3.9 Billion Contract for New Air Force One

    By Anthony Capaccio Capping off a contentious contracting tussle with President Donald Trump, Boeing Co. received a $3.9 billion contract to continue development, modification and testing of two new aircraft to serve as Air Force One, according to two people familiar with the decision. The planes, Boeing 747-8s, would be delivered by December 2024. That would be Trump's last full year in office if he wins a second term. Congressional committees were informed of the decision on Tuesday. Trump reached an informal deal in late February with Chicago-based Boeing for the fixed-price contract that a White House spokesman said at the time would save taxpayers $1.4 billion from an earlier projection for buying and outfitting two presidential jets. But public estimates suggest the savings would be far less -- perhaps a few hundred million dollars. Trump shook the defense industry -- and put all large U.S. companies with government contracts on notice -- when he began criticizing the Air Force One contract more than a month before he took office in January 2017. On Dec. 6, 2016 he wrote on Twitter that “Boeing is building a brand new 747 Air Force One for future presidents, but costs are out of control, more than $4 billion. Cancel order!” That surprising statement was followed by talks with Boeing Chief Executive Officer Dennis Muilenburg. After a visit to Trump's Mar-a-Lago resort in January, Muilenburg said, “We're going to get it done for less than that, and we're committed to working together to make sure that happens.” Announcement of the contract came the same day Trump said in an interview with CBS that the new aircraft will be painted “be red, white and blue, which I think is appropriate,'' instead of its traditional white, blue and light-blue color scheme. The Air Force said last year that it saved some money when the president reached a preliminary deal with Boeing for two 747 jumbo jets to serve as Air Force One, taking advantage of an unusual limited-time discount on planes once bound for Russia. Much of the costs for the presidential plane come from pricey and complex modifications required to turn Boeing's iconic hump-backed jets into the flying fortresses that ferry U.S. presidents around the world. The jets would be outfitted with dual auxiliary power units, rather than the one electrical power system standard for commercial jets, along with a complex communications system, work and rest quarters for the first family, elevators to ease boarding, self-defense capabilities and other features, according to Air Force budget documents. The Air Force decided in 2015 to award Boeing a sole-source deal to build the Air Force One replacements without competition while insisting that subcontractors be allowed to bid on its specialized equipment. The service determined then that Boeing's aircraft was the only one manufactured in the U.S. “that when fully missionized meets the necessary critically important capabilities” that the president needs. https://www.bloomberg.com/news/articles/2018-07-17/boeing-said-to-get-3-9-billion-contract-for-new-air-force-one

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