making (some?) sense of the dod budget outlook … · guided multiple launch rocket system (gmlrs)...

4/23/2018

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Making (some?) Sense of the DoD Budget

Outlook Conference 2018

0

U.S. Department of Defense

FISCAL YEAR 2019 BUDGET REQUEST

Office of the Under Secretary of Defense (Comptroller) / CFO

February 2018

1

National Security Strategy

• Respond to growing political, economic, military, information competitions

– Revisionist powers such as China and Russia

– Regional dictators such as Iran and North Korea

– Transnational threats, including jihadist terrorists and transnational criminal organizations

• Protect four vital national interests

– Protect the American people, homeland, and way of life

– Promote American prosperity

– Preserve peace through strength

– Advance American Influence

A Strategy of Principled Realism

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2

National Defense Strategy

• Compete, Deter, and Win to Preserve Peace through Strength

– Expand the competitive space leveraging all elements of national power

• Competition with China and Russia is central challenge

– Continue efforts to deter and counter North Korea, Iran, and terrorists

• Sustain U.S. influence and ensure favorable regional balances of power

– Build a more lethal, resilient, agile, and ready Joint Force

– Strengthen alliances and attract new partners

– Reform the Department’s business practices for greater performance and affordability

Great Power Competition is now the Primary Focus

FY 2019 National Defense Budget Request

(Dollars in Billions)

DoD – Military - Base Budget Request $617

DoD - Military - Overseas Contingency Operations (OCO) 69

Total DoD Military (051) $686

Other National Defense (053/054) 30

Total National Defense (050) $716

• Budget driven by the National Defense Strategy

• $74 Billion (10% real growth) over DoD’s current CR levels

• Appreciative of the Congress enacting the Bipartisan Budget Act of 2018

• We are committed to being good stewards of the taxpayers’ money

A Strategy Driven Budget

0%

5%

10%

15%

1940 1945 1950 1955 1960 1965 1970 1975 1980 1985 1990 1995 2000 2005 2010 2015 2020

DoD Outlays

Defense Outlays vs. Gross Domestic Product FY 1940 – FY 2019

2010 2011 2012 2013 2014 2015 2016 2017 2018* 2019

DoD Outlays % 4.5% 4.4% 4.1% 3.7% 3.4% 3.1% 3.1% 3.0% 3.1% 3.1%

40%1944

35.5%35%

30%

25%

20%

195311.3%

19688.6% 1985

5.7% 20104.5% 2019

3.1%

“America can afford survival” – Secretary Mattis

*Reflects annualized Continuing Resolution funding levels

4/23/2018

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$470

$490

$510

$530

$570

$550

$590

$610

FY10 FY11 FY12 FY13

FY 2011 Enacted with Inflation

FY14 FY15

FY 10-11-12 Actuals

FY16 FY17

Original BCA Caps

FY18 FY19

Prior BBA Caps

Original BCA Caps

FY 2018 CR*

Prior BBA Caps

Defense Base Budget(Dollars in Billions)

-$406.5 billion

FY 2018 Request

FY 2018 BBA

*FY 2018 CR ($529B) + $15B of OCO-for -base requirements BCA = Budget Control Act BBA = Bipartisan Budget Acts (2011, 2013, and2018)

Begins Recovery from over $400 Billion of Lost Capability

FY 2019 Request

$0

$300

$200

$100

$500

$400

$600

$700

$800

FY10 FY11 FY12 FY13 FY14 FY19

DoD Funding from FY 2010 Through FY 2023

FY20 FY21 FY22 FY23

Numbers may not add due to rounding

FY15 FY16 FY17 FY18

(Then Year Dollars in Billions)

(Discretionary BudgetAuthority)

524

580 606

691 687

645

560578 581

163 159 115

82 85 6382

528 528 495 496 497 521

6

5

Missile Defense*

617

686

69CR

Base Budget OCO/Other Budget

*Division B, P.L. 115-96, DoD Missile Defeat and Defense Enhancements Appropriations Act, 2018

202020

681 694 722

701 714727 742

20

530 707523

5983

612

Increases funding $74 Billion (10% real growth) over CR Levels

7

FY 2019 President’s Budget Military End Strength

1/ FY 2017 Actuals2/ FY 2018 PB Request. FY 2018 NDAA (P.L. 115-91) increases FY 2018 PB end strength by 9.5K (Army +8.5K (Active +7.5K Reserve +0.5K; Guard +0.5K); USMC +1.0K).

Builds Capacity & Lethality – FY 2019 +25.9K and +56.6K by FY 2023

Military Component FY 20171/ FY 20182/ FY 2019 FY 2023 Δ FY18-19 Δ FY18-23

Active Components (AC)

Army 476,245 476,000 487,500 495,500 +11,500 +19,500

Navy 323,944 327,900 335,400 344,800 +7,500 +16,900

Marine Corps 184,514 185,000 186,100 186,400 +1,100 +1,400

Air Force 322,787 325,100 329,100 338,800 +4,000 +13,700

TOTAL AC 1,307,490 1,314,000 1,338,100 1,365,500 +24,100 +51,500

Reserve Components (RC)

Army Reserve 194,318 199,000 199,500 200,000 +500 +1,000

Navy Reserve 57,824 59,000 59,100 59,200 +100 +200

Marine Corps Reserve 38,682 38,500 38,500 38,500 -- --

Air Force Reserve 68,798 69,800 70,000 70,200 +200 +400

Army National Guard 343,603 343,000 343,500 344,500 +500 +1,500

Air National Guard 105,670 106,600 107,100 108,600 +500 +2,000

TOTAL RC 808,895 815,900 817,700 821,000 +1,800 +5,100

Army AC + RC 1,014,166 1,018,000 1,030,500 1,040,000 +12,500 +22,000

Navy AC + RC 381,768 386,900 394,500 404,000 +7,600 +17,100

Marine Corps AC + RC 223,196 223,500 224,600 224,900 +1,100 +1,400

Air Force AC + RC 497,255 501,500 506,200 517,600 +4,700 +16,100

TOTAL AC + RC 2,116,385 2,129,900 2,155,800 2,186,500 +25,900 +56,600

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8

FY 2018 Request FY 2019 Request

Qty $B Qty $B

Aircraft

F-35 Joint Strike Fighter (Air Force, Marine Corps, Navy) 70 10.8 77 10.7

KC-46 Tanker Replacement (Air Force) 15 3.1 15 3.0

F/A-18E/F Super Hornet (Navy) 14 1.3 24 2.0

AH-64E Apache Attack Helicopter (Army) 63 1.4 60 1.3

VH-92 Presidential Helicopter (Marine Corps) - 0.5 6 0.9

P-8A Poseidon (Navy) 7 1.6 10 2.2

CH-53K King Stallion (Marine Corps) 4 1.1 8 1.6

Shipbuilding

Virginia Class Submarine 2 5.5 2 7.4

DDG-51 Arleigh Burke Class Destroyers 2 4.0 3 6.0

Littoral Combat ships (LCS) 2 1.7 1 1.3

CVN-78 Class Aircraft Carrier 1 4.6 - 1.8

Fleet Replenishment Oiler (T-AO) 1 0.5 2 1.1

Towing, Salvage, and Rescue Ship (T-ATS) 1 0.1 1 0.1

Expeditionary Sea Base - - 1 0.7

Space

Evolved Expendable Launch Vehicle (Air Force) 3 1.9 5 2.0

Global Positioning System (GPS) (Air Force) - 1.1 - 1.5

Space Based Infrared System (Air Force) - 1.5 - 0.8


Major Investments in the FY 2019 Budget(Base + OCO)

Includes Procurement and Research, Development, Test and Evaluation (RDT&E)funding

FY 2018 Request FY2019 Request

Qty $B Qty $B

Preferred Munitions

Joint Direct Attack Munition (JDAM) (Navy, Air Force) 34,529 0.9 43,594 1.2

Guided Multiple Launch Rocket System (GMLRS) (Army and Marine Corp) 6,474 0.9 9,733 1.2

Small Diameter Bomb I (SDB I) (Navy, Air Force) 6,852 0.3 6,826 0.3

Small Diameter Bomb II (SDB II) (Navy, Air Force) 550 0.3 1,260 0.4

Hellfire Missile (Army, Navy, Air Force) 7,664 0.7 7,045 0.6

Joint Air-to-Surface Standoff Missile-Extended Range (Air Force) 360 0.5 360 0.6

Joint Air-to-Ground Missile (JAGM) (Army, Navy) 824 0.2 1,121 0.3

Ground Systems

Joint Light Tactical Vehicle (Army, Marine Corps, Air Force) 2,777 1.1 5,113 2.0

M-1 Abrams Tank Modifications/Upgrades (Army) 56 1.2 135 2.7

Amphibious Combat Vehicle (Marine Corps) 26 0.3 30 0.3

Armored Multi-Purpose Vehicle (Army) 107 0.6 197 0.8







Note: Aegis FY 2018 increased by $0.5 million and Qty of 16 SM-3 IIA (MDDE Amendment)Ground Based Midcourse FY 2018 increased by $0.6 million (MDDE Amendment, includes MILCON)

THAAD FY 2018 increased by $0.5 billion and Qty of 50 (MDDE Amendment)

PAC-3 MSE FY 2018 increase by $0.6 billion and Qty of 147 (MDDE Amendment)

FY 2018 Request FY 2019 Request

Qty $B Qty $B

Nuclear Deterrence

B-21 Long Range Strike Bomber (Air Force) - 2.0 - 2.3

Columbia Class Submarine - (Advance Procurement + RDT&E) (Navy) - 1.9 - 3.7

Long-Range Stand-Off (LRSO) Missile (Air Force) - 0.5 - 0.6

Ground Based Strategic Deterrent (GBSD) (Air Force) - 0.2 - 0.3

Missile Defense Programs

AEGIS Ballistic Missile Defense (SM-3) 54 2.1 43 1.7

Ground Based Midcourse Defense (Interceptors/Silos) -/10 1.9 4/10 2.1

Terminal High Altitude Area Defense (THAAD) Ballistic Missile Defense 84 1.3 82 1.1

Patriot Advanced Capability (PAC-3) Missile Segment Enhancement 240 1.1 240 1.1

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Investments in Technology Innovation

• Funds science and technology to further innovation ($13.7 billion)

• Supports DoD, academic, and industry partnerships with initiatives for:

– Hypersonics

– Autonomy

– Cyber

– Space

– Directed Energy

– Electronic Warfare

– Artificial Intelligence

Accelerates Delivery of New Capabilities

Major Investments to Support Europe and Asia

• Capability enhancements in Asia– Investment in Air and Space Superiority

– Procurement of one submarine Virginia Payload Module

– Increase procurement of the P-8A by 3

– Support for increased naval presence in the Pacific to include infrastructure investments

• Capability enhancements in Europe– Procurement of modernized equipment for the Army's second Armored

Brigade Combat Team (ABCT) equipment set in APS-2 (e.g. Abrams Tanks, Bradley Fighting Vehicles, and Armored Multi-Purpose Vehicles)

– Replenishment of wartime stockpiles of preferred and advanced munitions to increase lethality

– Expansion of European airbase infrastructure and equipment to support rapid expansion of airbases for high volume air combat operations

“Forward Force Maneuver and Posture Resilience” - NDS

Improving Warfighter Readiness

• Continues on the path to achieving full spectrum readiness across the Joint Force

• Advances the Department’s multi-pronged, multi-year approach to build a more lethal and ready force with targeted investments in training, equipment, maintenance, munitions, modernization and infrastructure.

• Supports Combatant Command exercises and engagements to increase joint training capabilities, reassure allies, and provide U.S. presence

FY 2019 Enhances Cross Cutting Readiness Investments

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Restore Service Readiness• Army:

– Supports increased home station training and additional high-end collective training exercises, resulting in 20 combat training center rotations in 2019

– Total Army end strength grows from 1,018K to 1,030.5K to fill critical personnel gaps and grow force structure

• Navy:– Ship Depot Maintenance and Aviation Readiness remain the top two readiness recovering priorities;

conducting schedule maintenance and reducingbacklog– Ship maintenance efforts include improvements in the planning process and continuing to build

workforce capacity in the Naval Shipyards– Aviation Readiness accounts include increases in engineering and program-related logistics to speed

the repair process and also increases in the workforce at Aviation Depots• Marine Corps:

– Grows an additional 1,100 Marines and fully funds Marine Corps operating forces and associated maintenance– Invests in information warfare, long-range precision fires, air defense, and enhanced maneuver capabilities

• Air Force:– Invests in additional military end strength to fill critical gaps in pilot, cyber, maintainer, and Intelligence, Surveillance, and Reconnaissance

(ISR) career fields– Builds on the progress made in PB 2018 to restore the readiness of the force, increase lethality, and cost-effectively modernize while also

moving to multi-domain warfare• USSOCOM:

– Funds efforts to mitigate capacity readiness challenges in command and control, cyber, Intelligence, Surveillance, and Reconnaissance (ISR), precision strike munitions, and air and maritime mobility

– Specific investments made to increase contracted ISR orbits and improve capability, enhance aircraft contractor logistical support, and accelerate transition to an all A/MC-130J model fleet

FY 2019 Budget Continues Investment in Readiness Recovery

FY 2019 budget provides a competitive compensation package that reflects the unique demands and sacrifices of U.S. service members

• Provide 2.6% military pay raise – largest increase in 9 years

• Includes NO compensation cost share reforms in FY 2019 (e.g., no increases in pharmacy co-pays)

• Instead, pursues efforts focused on internal business process improvements and structural changes to find greater efficiencies (e.g., modernize military health care system to an integrated system)

• Sustains family support initiatives – invests more than $8 billion

– Spousal/community support to include offices to prevent and respond to sexual assault and domestic/child abuse and neglect

– Child care for 1 million children

– Counseling support (Financial Readiness; Military OneSource, etc.)

– DoD Dependent Schools educating over 78K students

– Commissary Operations at 237 stores

Keeping Faith With Service Members and Families

Largest Military Pay Raise in 9 years

• Increases facilities investment by 7% (+$0.7B) above the FY 2018 base budget request of $9.8B (FY 2019: $10.5B)

– Operational and training facilities (airfield improvements, training ranges, etc.) to improve readiness

– Maintenance and productions facilities (e.g., missile assembly building and high explosives magazine) to improve readiness

– Recapitalization of facilities in poor and failing condition

– Improved Quality-of-Life for Service Members and their families (schools, barracks, medical facilities, etc.)

• Concentrates efforts on ensuring the basing infrastructure is ideally sized to increase the lethality of U.S. forces while minimizing the cost of maintaining unneeded capacity, which diverts resources from critical readiness and modernization requirements

Facilities Investment

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Reforming DoD’s Business Operations• Deputy Secretary Shanahan is leading effort to reform DoD’s business operations and reapply

those savings to improve readiness and to increase the lethality and capacity of the military

• Focus is on using shared, centralized services throughout DoD with the goal of using best practices to maximize effectiveness; this is a multiyear effort focused on:

Healthcare

Human Resources

Contracted Goods & Services

Community Services

– Information Technology (IT)

– Real Property

– Financial Management

– Logistics and Supply Chain

– Testing and Evaluation

• The FY 2019 Budget reflects continued savings from ongoing reforms initiatives such as defense travel modernization and the management headquarters 25% reduction

• DoD has Implemented the FY 2017 NDAA Reforms:

– Reorganizing the Under Secretary of Defense for Acquisition, Technology and Logistics into two new Under Secretaries of Defense

– Appointing a Chief Management Officer to manage the business operations of DoD

– Elevating Cyber Command

“Business reform is the foundation of our competitive edge”– Secretary Mattis

• Operation FREEDOM’S SENTINEL (Afghanistan) and Theater Posture 46.3– Maintains increased in-country U.S. presence to continue the President’s South Asia strategy

– Funds training and equipping of Afghan security forces, including support for the Afghan Air Force and Special Security Forces ($5.2 billion)

– Includes other theater-wide support requirements and costs, including the replenishment,replacement, and repair of equipment destroyed, damaged, or worn out due to prolongeduse in combat operations

• Operation INHERENT RESOLVE (Iraq and Syria) 15.3– Supports ongoing operations against ISIS, including training and equipping of Iraqi Security

Forces and vetted Syrian opposition forces ($1.4 billion)

– Funds the replacement of munitions, both expended and projected

• European Deterrence Initiative (EDI) 6.5– Enhances capability and posture resiliency to improve deterrence and U.S. warfighting

effectiveness in Europe

– Includes funding for Ukraine to build capacity to conduct internal defense operations to defend its sovereignty and territorial integrity ($200 million)

0.9• Security Cooperation (SC)– Builds partner capacity to conduct counterterrorism, crisis response, and other SC missions

through training, equipping, and other activities

TOTAL OCO REQUEST 69.0

FY 2019 Overseas Contingency Operations (OCO)(Dollars in Billions)

FY 2019 Budget Summary

• Driven by the National Defense Strategy

• Improves the lethality and capability of the Joint Force

• Begins reforming DoD’s business operations by using best practices to centralize common services

• Needs Congress to pass this budget on time – end Continuing Resolutions

“This national defense strategy will guide all our actions, aligning thedepartment's three lines of effort to gain synergies. But we recognize nostrategy can long survive without necessary funding and the stable,predictable budgets required to defend America in the modern age.”

– Secretary Mattis

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FY 2019 Total Base and OCO Funding

Army$182.0 B,

27%

Navy$194.1 B,

28%

Air Force$194.2 B,

28%

Defense Wide

$115.8 B, 17%

FY 2019 Request: $686.1 billion

By Appropriation Title By Military Department

RDT&E,$92.4 B,

14%

Military Construction and Family Housing, Other

$12.9 B, 2%

Procurement,$144.3 B,

21%

Military Personnel,$152.9 B,

22%

O&M,$283.5 B,

41%


For More Information

• Visit the website for the Office of the Under Secretary of Defense (Comptroller) at

– www.budget.mil

– Download the Department of Defense’s FY 2019 Budget Request

Compete, Deter, and Win:

To address the current threats, the Army must restore warfighting readiness, modernize capabilities, and reform our institutional processes to innovate faster than near‐peer adversaries with global ambitions.

Globally Engaged and Responsive

Building a more Lethal, Agile, and Capable ArmyWhere we areDeployed and Committed: 186KIn more than 140 countriesAcross 6 continentsArmy SOF: 4K deployed in 80 countriesWorldwide Support to CT Operations

Today’s Environment Long-term strategic competition with

revisionist powers Rogue regimes destabilize regions and

seek WMD capability. Terrorists and malicious non-state

actors cause global disruption Rapid technological advancements are

changing the character of war

Strategic Approach Build Readiness for major combat

operations Modernize key capabilities Establish force posture to deter and

provide strategic flexibility Deepen Joint and Allied

Interoperability Reform Institutional Processes for

greater performance.

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$138$127

$126* $123* $128* $130*$139* $148*

$67

$50

$36$28 $23

$29

$34

$205

$177

$162$151 $151

$159$169

$30

$182

FY 14 FY 15 FY 16 FY 17 FY 18 FY 19

Budget Trends

RequestActuals

The FY 2019 Budget Builds upon the Readiness Improvements Started in FY 2017

Overseas Contingency Funding (OCO)

Base Actuals

Base Funding

Pending Request

FY 2012 – FY 2019($B)Base and OCO

Request w/ Amendment

FY 12 FY 13

* Includes OCO for Basepurposes

FY14: $3.1B OCO for Base Transfer






FY 2019 Budget ThemesThe Army’s FY 2019 Budget will help to ensure the Army increases our overmatch capability and remains the world’s preeminent ground fighting force through investments in current and future readiness to deter adversaries and, when necessary, fight and win.

U.S. and Polish Soldiers conduct training: Poland

Defeat Enemies in Ongoing Conflicts

Increase Warfighter Readiness

Increase Army’s Capacity

Invest in Army Modernization Priorities

Increase Lethality and Combined Arms Overmatch

Improve Rapid Response Readiness

Invest in Critical Infrastructure

Increase Global Security through Allies and Partners

Reform Army Processes

Support Soldiers, Civilians and their Families

MILPER,$60.6

MILCON,$2.0

RDA,$32.0

O&M,$52.5

Other,$1.2

$148.4B

FY 2019 Budget Request(Base Funding Program)

The Army’s topline base funding grew by 7% from the total FY18 budget request

The FY19 base budget funds the Army’s readiness requirements and the higher end strength:

Military Personnel 4.5% ▲

Operations & Maintenance 6.1%▲

Procurement/RDTE (RDA) 14.3%▲

$B FY17Actuals

FY18Request

FY19Request

Military Personnel 55.3 58.0 60.6

Operation and Maintenance 1 46.8 49.5 52.5

Procurement/RDTE 26.4 28.0 32.0

Military Construction/Family Housing/BRAC 1.6 2.3 2.0

Other Base (CAMD/AWCF/ANC) 0.9 1.2 1.2

Totals 131.12 138.93 148.44

Base Request

O&M Civilian Pay,$14.5


Other Base: Chemical Agent and Munitions Destruction, Army Working Capital Fund, and Arlington National Cemetery 1: Includes Environmental Restoration Account (ERA) funding2: Includes $6.0B in OCO for Base purposes3: Includes $0.9B Missile Defeat and Defense Enhancement, $0.6B Hurricane Supplemental and $0.2B OCO for Base purposes4. Includes $5.0B in OCO for Base purposes

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Military End Strength

6

Supports a Total Army end strength of 1,030,500 Soldiers

Increases end strength to continue rebuilding warfighting readiness and improving capability and lethality

Grows Active Guard Reserve (AGR) full-time support for the Army National Guard and the Army Reserve

U.S. Soldiers participating in Exercise Noble Partner: Republic of Georgia

1: Authorized in the FY 2018 National Defense Authorization Act, Public Law No: 115‐91

ComponentFY17

ActualsFY18

BudgetedFY18

AuthorizedFY19

Request

Regular Army 476,245 476,000 483,500 487,500

Army National Guard 343,603 343,000 343,500 343,500

Army Reserve 194,318 199,000 199,500 199,500

Totals 1,014,166 1,018,000 1,026,5001 1,030,500

Military Personnel

Requested Rate Increases (Effective 1 Jan 19) FY19

Basic PayBasic Allowance for

Housing Basic Allowance for

Subsistence

2.6%

2.9%

3.4%

Compensates 1,030,500 end strength, including adjustments for pay, subsistence, housing allowances; continues to address retirement compensation

Increases funding for Reserve Component Soldiers on active duty supporting missions

Provides incentives to recruit and retain theAll-Volunteer Force; includes recruiting andretention bonuses and education benefits

U.S. Soldiers conduct Expert Field Medical Badge training: Republic of Korea


1: Includes $0.3B in OCO for Base purposes

$BFY17

ActualsFY18

RequestFY19

Request

Regular Army 39.7 41.5 43.7

Army National Guard 8.1 8.4 8.7

Army Reserve 4.5 4.8 5.0

Medicare Eligible Ret Health Care Fund 3.0 3.3 3.2

Totals1

55.3 58.0 60.6

Operation and Maintenance (Regular Army)

$ BF Y 1 7

A c t u a l sF Y 1 8

R e q u e s tF Y 1 9

R e q u e s tR e g u l a r A r m y ( O M A ) 3 7 . 1 1 3 9 . 0 2 4 2 . 0 3


1: Includes $3.6B in OCO for Base purposes2: Includes $20.1M in Hurricane Supplemental 3: Includes $5.0B in OCO for Base purposes

30

Trains the Force Resources 20 Combat Training Center rotations - 16 Regular Army and 4

ARNG Resources three additional Security Force Assistance Brigades (SFABs).

Operates the ForceImproves global posture; increased capacity (convert ABCT from IBCT)Focuses attention on pre-positioning and rotations in the Pacific and Europe

Sustains the Force Prioritizes rapid global response and force projection readiness Improves the industrial base and ammunition management

M777A2 Howitzer Training

Installation/Enterprise Support Maintains commitment to Family and Soldier programs and installation support Improves facility sustainment; continues to invest in restoration and modernization

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Operation and Maintenance (Reserve Components)

Operation and Maintenance, Army National Guard Strengthens readiness through unit specific training Integrates into Global Army Missions Continues support to Family Programs Improves facility sustainment and restoration and

modernization

Operation and Maintenance, Army Reserve Creates new Ready Force units at Platoon (+) readiness level Provides capability for early enablers to deploy in 0-90 days Supports 79 functional and multifunctional support

brigades Funds base operations for 3 installations and

707 Reserve centers

Ohio Army National Guard Soldiers conduct training

$BFY17 1

ActualsFY18 2

RequestFY19

RequestArmy National Guard (OMNG) Army Reserve (OMAR)

6.92.7

7.42.9

7.42.9

U.S. Army Reserve Soldiers: Operation Cold Steel II

31


1: Includes OCO for Base purposes for ARNG: $140M; USAR: $14M 2: Includes Hurricane Supplemental for ARNG: $55M, USAR: $12M

Modernization Summary

$32.1 BCapability Portfolios Fills critical capability gaps and improve lethality in

munitions, and air and ground combat platforms

Increases modernization of Abrams, Bradley, Stryker, and Paladin combat vehicles

Increases procurement of critical missiles, rockets, and 155-mm artillery projectiles

Accelerates procurement of Joint Battle Command –Platform (JBC-P)

RDT&E increases in: Mobile Protected Firepower, Combat Vehicle Prototyping, Long Range Precision Fires, Synthetic Training Environment and Short Range

ModernizationPriorities1. Long‐Range Precision Fires2. Next Generation Combat Vehicles3. Future Vertical Lift4. Army Network5. Air and Missile Defense6. Soldier Lethality


1: Includes $1.7B in OCO for Base purposes2: Includes FY18 Amendment for Missile Defense Defeat Enhancement (MDDE) and $.2B in OCO for Base purposes

Air Missile Defense 9%

Ammunition 5%

Aviation16%

Combat Service

Support 7%

Fire SupportGround

Maneuver

Intelligence 2%

Mission Command

12%

Other11%

S&T 8%Soldier4%

$BFY17

ActualsFY18

RequestFY19

Request

Procurement TotalRDT&E Total

17.98.6

18.59.4

21.910.2

Totals 26.51 27.9 2 32.1

8%Air Defense (M-SHORAD). 18%

Procurement Summary $21.9 B

Capability Portfolios

Sustains Apache, Blackhawk and Chinook aircraftremanufacture and new builds

Accelerates Multiple Launch Rocket Systems (MLRS) launcher modernization and maximizesprocurement of key munitions Patriot Missile Segment Enhancement (MSE) missiles, GuidedMLRS rockets, and Army Tactical Missile Systems (ATACMS)

Accelerates modernization of Abrams, Bradley and Stryker fleets with mobility and lethality upgrades

Sustains procurement of Paladin Integrated Management (PIM) and Joint Light Tactical Vehicle for Low Rate Initial Production (LRIP)

Increases procurement of Joint Battle Command – Platform (JBC-P), baselining the force of the mounted mission command


1: Includes $1.7B in OCO for Base purposes

Air Missile Defense8%

Ammunition 7%

Aviation 19%

Combat Service

Support10%Fire Support

9%

Maneuver 21%

2: Includes FY18 Amendment for Missile Defense Defeat Enhancement (MDDE) and $.2B in OCO for Base purposes Intelligence2%

Ground

Mission Command

13%

Other 6% Soldier 5%$B

FY17Actuals

FY18Request

FY19Request

Aircraft 4.9 4.2 3.8Missiles 2.4 3.6 3.4Weapons & Tracked Combat Vehicles (WTCV) 2.4 2.4 4.5Ammunition 2.0 1.9 2.2Other Procurement 6.2 6.5 8.0

Totals 17.91 18.62 21.9

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Select Procurement Quantities(Base and OCO)

Apache

Paladin

JLTV

Abrams

Bradley

Chinook

Black Hawk

GMLRS AMPV

ProgramQuantities

FY18 FY19

AH‐64E Apache Remanufacture 50 48

AH‐64E Apache New Build 13 12

UH‐60M Black Hawk 48 50

CH‐47 Chinook 6 7

Abrams Upgrade 56 135

Bradley Upgrade/MOD 195 210

Armored Multi‐Purpose Vehicle (AMPV) 107 197

Paladin Integrated Management (PIM) 71 36

Joint Light Tactical Vehicle (JLTV) 2,498 3,390

Guided MLRS Rocket (GMLRS) 6,084 9,450

MSE Missile 240 240

ATACMS Service Life Extension Program (SLEP) 122 404

Javelin 572 784

155mm Artillery Projectile 16,573 148,287

Joint Battle Command ‐ Platform (JBC‐P) 16,552 26,355

RDT&E Summary $10.2 B Capability Portfolios

$B

FY17

Actuals

FY18

Request

FY19

RequestBasic ResearchApplied Research Advanced Technology Dev.

0.5

1.21.4

0.4

0.91.12

0.4

0.91.0

S&T Subtotal 3.1 2.4 2.3Demonstration/Validation 0.6 0.9 1.3Engineering Manufacturing Dev. 2.3 3.0 3.2

Testing & Management Support 1.4 1.3 1.3Operational System Development 1.3 1.9 1.9

Totals 8.6 1 9.4 10.2Numbers may not add due to rounding

1: Includes $70M in OCO for Base purposes2: Includes FY18 Amendment for Missile Defense Defeat Enhancement (MDDE)

Air Missile Defense11%

Ammunition 1%

Aviation8%

Combat Service

Support2%

Fire Support

5%

Ground Maneuver

13%Intelligence3%Mission Command9%

Other 20%

S&T26%

Soldier 3%

Comprehensive realignment of the Science and Technology (S&T) portfolio towards the Army’s priorities (Realigned $234M in FY19)

Increases investments in Mobile Protected Firepower, Combat Vehicle Prototyping, Long Range Precision Fires,Synthetic Training Environment, Short Range Air Defense (M-SHORAD), and Future Tactical Unmanned AircraftSystems (FTUAS)

Continues Combat Vehicle Improvement Programs, Soldier Night Vision Devices, and Electronic Warfare Development to increase lethality and maintain combat arms overmatch

Facilities

Supports environmental remediation actions at sites closed during prior BRAC rounds.


1: Includes $0.5B Hurricane supplemental

These projects recapitalize poor and failing facilities as well as building new facilities that meet unit demand. Provides construction of new facilities across all three components.

Regular Army: 19 projects, $1,012M

Army National Guard: 8 projects, $180M

Army Reserve: 2 projects, $65M

Supports U.S. and overseas Army Family Housing operation and maintenance, leases, and construction (6 projects, $331M)

$M FY17 Actuals FY18 Request FY19 RequestMilitary Construction 1,005 1,7241 1,257Army Family Housing 480 529 707Base Realignment and Closure 133 58 63

Totals 1,618 2,311 2,027

Unmanned Aerial Vehicle Hanger, Fort Carson

4/23/2018

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Cemeterial Expenses, Army (Arlington National Cemetery)

Provides for operation, maintenance, infrastructure revitalization and construction at Arlington National Cemetery in Arlington, Virginia, and the Soldiers’ and Airmen’s Home National Cemetery in Washington,D.C.

ANC is the final resting place for Service Members, Veterans, and their Families; as an active cemetery, hosts more than 7,000 burialsannually

Chemical Agent and Munitions Destruction (DoD Program)

Provides for destruction of US inventory of lethal chemical agents and munitions as outlined in the Chemical Weapons Convention

Chemical Agent-Destruction continues at Blue Grass and Pueblo Pilot Plants

Continues the chemical stockpile preparednessprogram

Army Working Capital Fund

Provides for the acquisition of secondary items for Army Prepositioned Stocks

Sustains industrial base equipment required formobilization

Other Base Accounts

$M FY17 Actuals FY18 Request FY19 RequestArmy National Cemetery and Construction 71 71 71Chemical Agent and Munitions Destruction 651 962 994Army Working CapitalFund 197 84 159

Arlington National Cemetery


Overseas Contingency Operations

OCO Request$33.7B

Appropriation ($M)FY17

ActualsFY18

RequestFY19

RequestMilitary Personnel (MILPERS) 2,287 2,893 3,161Operation & Maintenance(O&M) 15,925 17,132 18,363 5

Research, Development, &Acquisition (RDA) 3,610 2,692 4 5,289Military Construction, Army (MCA) 30 140 261Working Capital Fund(AWCF) 48 3 50 7

Army Subtotal 21,900 22,907 27,081Counter-Islamic State of Iraq and Syria Train and Equip Fund 1 1,438 1,769 1,400

Afghan Security Forces Fund 4,263 4,938 5,199

Iraq Train & Equip Fund 290 - -

Joint Improvised Explosive Device Defeat Fund 2 88 - -

Passthrough / Transfer Accounts Subtotal 6,079 6,707 6,599Totals 27,979 29,614 33,680

Operation INHERENT RESOLVE (Iraq)

European Deterrence Initiative (Europe)

Afghan Security Forces Fund

Counter-ISIS Train & Equip Fund


1: The Iraq and Syria Train & Equip Funds were combined into a single Counter‐ISIS Train & Equip fund in FY172: The Joint Improvised Explosive Device Defeat mission has been assumed by a new DOD organization for FY17 and beyond. Partial FY16 and FY17 JIEDDF funding information can be found in the DOD Budget Materials.3: Army Working Capital FY17 numbers reflect enacted appropriations 4: Does not include $0.2B OCO for Basepurposes.5: Does not include $5.0B OCO for Basepurposes

Operation FREEDOM’S SENTINEL (Afghanistan; Horn of Africa) includes Operation Spartan Shield(CENTCOM)

MILPERS 9%

O&M 54%

RDA 16%

Pass‐Through 20%

MILCON/AWCF 1%

Other Topics and Concerns

Significant Reforms in DoD Procurement, Especially For The Army

Recruiting and Retention

Pilot Shortages

Army Strategies That May Effect A Family of Military Shelters

Concerns for The DoD Budget of 2020 (currently being drafted)

4/23/2018

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Contact Information

Ron HoulePresident

Pivot Step Consultants, [email protected]

914‐806‐3775

making (some?) sense of the dod budget outlook … · guided multiple launch rocket system (gmlrs)...

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