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February 11, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

Pentagon budget request increases R&D funding, cuts legacy planes

By: Aaron Mehta

WASHINGTON — U.S. President Donald Trump's defense budget request for fiscal 2021 includes major investments in research and development portfolios as well as “crucial” technologies as part of what the Pentagon is branding an “irreversible implementation” of the National Defense Strategy.

However, the budget also features overall cuts to the Army and Navy top lines, as well as the divestment of legacy platforms from the Air Force.

The president is requesting $705 billion for the Defense Department, including $69 billion in overseas contingency operations, or OCO, wartime funds. Total national security spending, including for the National Nuclear Security Administration and other outside agencies, is $740 billion, as set by a congressional budget agreement last year.

Although not included in the budget documents, total top-line projections over the Future Years Defense Program, or FYDP, are $722 billion in FY22, $737 billion in FY23, $753 billion in FY24 and $768 billion in FY25, according to a senior defense official.

Service budget top lines are $178 billion for the Army, a drop by $462 million from FY20 enacted levels; $207 billion for the Navy, down $1.9 billion from FY20; and $207 billion for the Air Force, up $1.7 billion from FY20. The budget also requests $113 billion for defensewide efforts, which includes the so-called fourth estate agencies, down $6.5 billion from FY20. Overall procurement funding sits at $136.9 billion.

The OCO request of $69 billion is down dramatically from last year's $164 billion, and it comes in three flavors:

  • $20.5 billion in “direct war requirements,” or funding for combat operations that will end at some point in locations like Iraq and Syria.
  • $32.5 billion in “enduring requirements,” which covers funding for the sustainment of bases, as well as pots of money like the European Deterrence Initiative.
  • $16 billion in “OCO for base,” a funding mechanism for money that could be in the base budget but is classified as OCO for the purpose of skirting budget caps imposed by Congress.

Projection for OCO funding falls $20 billion in FY22 and FY23, and then to $10 billion for FY24 and FY25, as “certain OCO costs” are absorbed by the base budget, according to the White House's summary tables. There's no nondefense discretionary OCO proposed for FY21 or the out years.

“This is a budget that makes difficult choices but they are actually choices that support the National Defense Strategy,” a senior defense official said on condition of anonymity ahead the budget rollout.

“We can't have the best of everything in all areas,” the official added. “The low-hanging fruit is gone.”

Among the tough choices: retiring 17 B-1 bombers, 44 A-10 planes, 24 Global Hawk drones, as well as 16 KC-10 and 13 KC-135 tankers from the Air Force.

“When you look at these aircraft, they disproportionately take too much of the readiness account. That's where we've got to go,” the official said. “Those are really the tough choices we had to make. Because we can now take the additional manpower, the [spare parts], all those things we need to make those other aircraft more operationally available and have more flight hours available in the mission we need them to do.”

Congress usually revises presidential budget submissions substantially before passing them into law. A prime target for lawmakers this year will be the Trump administration's favoritism for defense spending over nondefense, which contradicts the rough parity between two that's characterized bipartisan budget deals in recent years.

Congress will also likely upend the administration's FY21 proposal to cut the nondefense base budget by 5.1 percent while adding 0.08 percent to the base defense budget. There are slim odds for Trump's proposal extending budget caps — set to expire next year — through 2025, wherein defense would increase by roughly 2 percent each year as nondefense discretionary decreases 2 percent each year.

‘Irreversible'

Budget documents were branded with the phrase “irreversible implementation of the National Defense Strategy,” a notable signal in an election year that, should Trump not be reelected, could result in major changes to the national budget and American strategy come January.

The branding in support of the NDS can be found throughout the document, even at lower levels. For instance, the Pentagon's security cooperation account has been rebranded the “NDS Implementation (NDS-I) account.”

Missing from the budget request are funds for Trump's border wall with Mexico. However, CNN reported this weekend that “billions” of defense dollars will be going toward the wall effort, with an announcement expected later this week.

Key defense spending accounts break down like this:

  • Mission-support activities: $66.8 billion
  • Aircraft and related systems: $56.9 billion
  • Shipbuilding and maritime systems: $32.2 billion
  • Missiles and munitions: $21.3 billion
  • Space-based systems: $15.5 billion
  • Ground systems: $13 billion
  • C4I systems: $11.9 billion
  • Missile defeat and defense programs: $11.6 billion

The department is requesting $106.6 billion to fund research, development, test and evaluation (RDT&E) efforts, an increase of $2 billion over the FY20 enacted figures — something another senior defense official called the “largest [RDT&E] request in over 70 years.” Funding for that came from savings from the defensewide review, which found $5.7 billion in money to reprogram in FY21, as well as the retirement of older platforms.

Four “crucial” technologies are now bunched together under a new acronym — ACE, which stands for advanced capability enablers: hypersonics at $3.2 billion, microelectronics/5G at $1.5 billion, autonomy at $1.7 billion, and artificial intelligence at $800 million.

However, for the second straight year, science and technology funding for early technology development (the Pentagon's 6.1, 6.2 and 6.3 accounts) is requested at $14.1 billion; that includes $3.5 billion for the Defense Advanced Research Projects Agency. Congress plussed that funding to $16.1 billion in FY20 enacted levels, meaning the request here is $2 billion less than what the Pentagon received this current year.

Cyber activates total $9.8 billion, including $5.4 billion for cybersecurity-focused projects. The rest of the funding goes toward supporting defensive cyber operations.

https://www.defensenews.com/smr/federal-budget/2020/02/10/pentagon-budget-request-increases-rd-funding-cuts-legacy-planes/

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  • Contract Awards by US Department of Defense - July 07, 2020

    July 8, 2020 | International, Aerospace, Naval, Land, C4ISR, Security

    Contract Awards by US Department of Defense - July 07, 2020

    ARMY Advanced Technology International, Summerville, South Carolina, was awarded a $450,392,000 modification (P00074) to contract W15QKN-16-9-1002 for large-scale manufacturing of antibodies directed to novel coronavirus. Work will be performed in Summerville, South Carolina; and Tarrytown, New York, with an estimated completion date of June 30, 2021. Fiscal 2020 research, development, test, and evaluation, Army, funds in the amount of $450,392,000 were obligated at the time of the award. U.S. Army Contracting Command, Newark, New Jersey, is the contracting activity. (Awarded July 6, 2020) Modern Technology Solutions Inc.,* Alexandria, Virginia, was awarded a $23,182,248 modification (P00012) to contract W31P4Q-16-D-0017 to increase the contract ceiling amount to enhance and maintain the current suite of distributed digital simulation and system of systems unique development facilities. Work locations and funding will be determined with each order, with an estimated completion date of March 2, 2021. U.S. Army Contracting Command, Redstone Arsenal, Alabama, is the contracting activity. NAVY Elite Pacific Construction Inc.,* Kaneohe, Hawaii (N62478-18-D-4022); Su-Mo Builders Inc.,* Honolulu, Hawaii (N62478-18-D-4023); RORE Inc.,* San Diego, California (N62478-18-D-4024); Environet Inc.,* Kamuela, Hawaii (N62478-18-D-4025); Insight Pacific LLC,* Brea, California (N62478-18-D-4026); GM/Bulltrack JV LLC,* Clackamas, Oregon (N62478-18-D-4027); and Alan Shintani Inc.,* Waipahu, Hawaii (N62478-18-D-4028), are awarded a $90,000,000 firm-fixed-price modification to increase the maximum dollar value of an indefinite-delivery/indefinite-quantity, multiple award, design-build/design-bid-build construction contract. This contract provides for construction projects located primarily within the Naval Facilities Engineering Command (NAVFAC) Hawaii area of operations (AO). Work will be performed at various Navy, Marine Corps, Air Force and miscellaneous federal and other facilities in the NAVFAC Hawaii AO. The work to be performed provides for, but is not limited to, labor, supervision, tools, materials and equipment that are necessary to perform new construction, repair, alteration and related demolition of existing infrastructure based on design-build or design-bid-build (full plans and specifications) for infrastructure within the state of Hawaii. No task orders are being issued at this time. Work is expected to be completed by April 2023. After award of this modification, the total cumulative contract value will be $335,000,000. No funds will be obligated at time of award. Funds will be obligated on individual task orders as they are issued. Task orders will be primarily funded by operations and maintenance (Navy); and Navy working capital funds. The NAVFAC Hawaii, Pearl Harbor, Hawaii, is the contracting activity. Wiley Wilson Burns & McDonnell JV, Alexandria, Virginia, is awarded a $75,000,000 maximum amount, indefinite-delivery/indefinite-quantity, architect-engineering contract for multi-discipline architect-engineer services for general and administrative facilities within the Naval Facilities Engineering Command (NAVFAC) Washington area of operations. All work on this contract will be performed at various Navy and Marine Corps facilities and other facilities within the NAVFAC Washington area of operations including, but not limited to, Maryland (40%); Virginia (40%); and Washington, D.C. (20%). The work to be performed on this contract is design and engineering services of facilities, including but not limited to, child development care, general administrative spaces, dining facilities, commissary and exchange, educational, sports and fitness facilities, museums and memorials, training and instructional facilities, wet labs and electronic laboratories. The term of the contract is not to exceed 60 months and work is expected to be completed by July 2025. No task orders are being issued at this time and no funds will be obligated at the time of award. Funds will be obligated on individual task orders as they are issued. Future task orders will be primarily funded by operations and maintenance (Navy). This contract was competitively procured via the Navy Electronic Commerce Online website, and eight proposals were received. The NAVFAC Washington, Washington, D.C., is the contracting activity (N40080-20-D-0018). Jacobs EwingCole JV, Pasadena, California, is awarded a $52,000,000 firm-fixed-price modification to increase the maximum dollar value of an indefinite-delivery/indefinite-quantity contract for multi-discipline architect-engineering services for large projects under the military construction program within the Naval Facilities Engineering Command (NAVFAC) Southwest area of responsibility (AOR). After award of this modification, the total cumulative contract value will be $230,000,000. Work will be performed at various Navy and Marine Corps facilities and other government facilities within the NAVFAC Southwest AOR including, but not limited to, California (87%); Arizona (5%); Nevada (5%); Colorado (1%); New Mexico (1%); and Utah (1%). The work to be performed provides for the preparation of design-bid-build construction contract packages; site investigations; cost estimates; post construction award services; preparation of request for proposals for design-build projects; studies and report related to the design of new facilities; technical reviews of government-prepared designs and design-build packages; preparation of planning and programming support documents; coordination of various technical disciplines; and identification and abatement methods for existing hazardous materials. Work is expected to be completed by November 2022. No contract funding is obligated at the time of award; funds will be obligated on individual task orders as they are issued. Task orders will be primarily funded by military construction (Navy). The Naval Facilities Engineering Command Southwest, San Diego, California, is the contracting activity (N62473-18-D-5801). Lyme Computer Systems Inc.,* Lebanon, New Hampshire, is awarded a $31,819,843 not to exceed, indefinite-delivery/indefinite-quantity, firm-fixed-price contract with firm-fixed-price task order provisions for commercial off-the-shelf industrial-grade networking hardware and components manufactured. Work will be performed at the contractor's facility in Lebanon, New Hampshire. This requirement is to provide commercial off-the-shelf industrial-grade networking hardware and components manufactured by Siemens/RuggedCom. The networking equipment is used for installation on operational hulls across multiple ship classes, to include the USS Arleigh Burke (DDG-51); USS Ticonderoga (CG-47); USS Whidbey Island (LSD-41); USS Whidbey Island (LSD-49); USS Avenger (MCM-1); USS Wasp (LHD-1); USS Makin Island (LHD-8); USS San Antonio (LPD-17); USS Nimitz (CVN-68); and the USS Gerald R. Ford (CVN-78), as part of their hull, mechanical, electrical and navigation network infrastructures. Work is expected to be completed by July 2025. Fiscal 2020 other procurement (Navy) funding in the amount of $1,016,509 ($500 minimum guarantee) will be obligated at time of award via individual delivery orders and will not expire at the end of the current fiscal year. The contract was competitively procured as a small-business set-aside via the beta.SAM.gov website and two offers were received. The Naval Surface Warfare Center Philadelphia Division, Philadelphia, Pennsylvania, is the contracting activity (N64498-20-D-4023). Olympus America Inc., Waltham, Massachusetts, is awarded a $10,570,631 firm-fixed-price, indefinite-delivery/indefinite-quantity contract. This contract is for the production, test and delivery of up to 330 Eddy Current Testing Systems, replacing the currently fielded system, to perform nondestructive inspection of aircraft components and support equipment for fatigue cracks and other surface defects on conductive materials. Work will be performed in Waltham, Massachusetts, and is expected to be completed by June 2023. No funds will be obligated at the time of award. Funds will be obligated on individual orders as they are issued. This contract was not competitively procured pursuant to 10 U.S. Code 2304(c)(1). The Naval Air Warfare Center Aircraft Division, Lakehurst, New Jersey, is the contracting activity (N68335-20-D-0036). Northrop Grumman Systems Corp., Rolling Meadows, Illinois, is awarded a $9,061,423 modification (P00005) to previously awarded cost-plus-fixed-fee, indefinite-delivery/indefinite-quantity contract N68936-17-D-0017. This modification increases the ceiling of the contract to provide for the production and delivery of two additional Advanced Tactical Datalink test units and five additional detailed technical demonstrations. This modification also provides for studies and analysis of the system relative to emerging mission threats not previously anticipated. Work will be performed in Rolling Meadows and is expected to be completed by August 2022. No funds will be obligated at the time of award. Funds will be obligated on individual orders as they are issued. The Naval Air Warfare Center Weapons Division, China Lake, California, is the contracting activity. Gravois Aluminum Boats LLC, doing business as Metal Shark Boats, Jeanerette, Louisiana, is awarded a $7,027,703 firm-fixed-price delivery order to previously awarded contract N00024-17-D-2209 for the construction, shipping and item unique identification and documentation of four 40-foot patrol boats (PB): PB-2001; PB-2002; PB-2003; and PB-2004. Prices were previously established via the indefinite delivery/indefinite quantity contract. Contract modification (A00002) exercised options for the applicable contract line item numbers (i.e., 4000 series) on June 17, 2020. Work will be performed in Jeanerette, Louisiana. The contractor will provide expert design, planning and material support services. Work is expected to be completed by April 2023. Fiscal 2020 other procurement (Navy) funding in the amount of $7,027,703 will be obligated at time of award and will not expire at the end of the fiscal year. The Supervisor of Shipbuilding, Conversion and Repair, Gulf Coast, Pascagoula, Mississippi, is the contracting activity. DEFENSE LOGISTICS AGENCY Altitude Technologies, doing business as Chinook Medical Gear Inc., Durango, Colorado, has been awarded a maximum $46,445,291 indefinite-delivery/indefinite-quantity contract for numerous medical surgical products. This was a competitive acquisition with one response received. This is a one-year base contract with nine one-year option periods. Location of performance is Colorado, with a July 6, 2021, ordering period end date. Using customers are Army, Navy, Air Force, Marine Corps and federal civilian agencies. Type of appropriation is fiscal 2020 through 2021 defense Warstopper funds. The contracting agency is the Defense Logistics Agency Troop Support, Philadelphia, Pennsylvania (SPE2D0-20-D-0007). BAE Systems Information & Electronic Systems Integration, Greenlawn, New York, has been awarded a $26,305,633 firm-fixed-price delivery order (SPRPA1-20-F-C20G) against five-year basic ordering agreement SPRPA1-17-G-C201 for E-2D aircraft electronic phase shifters. This was a sole-source acquisition using justification 10 U.S. Code 2304 (c)(1), as stated in Federal Acquisition Regulations 6.302-1. This is a seven-year, five-month contract with no option periods. Location of performance is New York, with a Nov. 30, 2027, performance completion date. Using customers are Navy and Japanese military. Type of appropriation is fiscal 2020 through 2028 Navy working capital funds and Foreign Military Sales funds. The contracting activity is the Defense Logistics Agency Aviation, Philadelphia, Pennsylvania. *Small Business https://www.defense.gov/Newsroom/Contracts/Contract/Article/2266743/source/GovDelivery/

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