The aircraft carriers USS Dwight D. Eisenhower (CVN-69), USS George H.W. Bush (CVN-77), USS Enterprise (CVN-65), USS Harry S. Truman (CVN-75), and USS Abraham Lincoln (CVN-72) are in port at Naval Station Norfolk, Va. US Navy Photo
The U.S. Navy will delay the refueling of the aircraft carrier USS Abraham Lincoln (CVN-72) for an unknown period because of the uncertain fiscal environment due to the ongoing legislative struggle, the service told Congress in a Friday message obtained by USNI News.
Lincoln was scheduled to be moved to Huntington Ingalls Industries’ (HII) Newport News Shipyard later this month to begin the 4-year refueling and complex overhaul (RCOH) of the ship. Read More
With the passage of the Budget Control Act (BCA) in 2011, Congress and the President set up a series of mechanisms meant to compel consensus on a roadmap for the nation’s long-term fiscal stability. But instead of compromise, bickering and discontent among the nation’s political leadership led to successive fiscal showdowns and short-term budgetary patches, the latest of which expires in just a few weeks. The effects of the budgetary stalemate have been particularly acute in the Department of Defense (DOD), and the threat to the nation’s armed forces is growing every day.
The head of naval surface forces fears the sea service is teetering dangerously close to an operational cliff where ships simply won’t be available to do what they need to do.Vice Adm. Tom Copeman told the Surface Navy Association Symposium on Tuesday that sailors are being pushed to keep their ships up to snuff without being given enough time, spare parts or training to do proper maintenance. The Navy, he said, has been pushing personnel harder and harder, to do more with less, for years. Copeman pointed to rampant cross-decking, where sailors are snatched from docked ships and put on board deploying ones, often hindering maintenance on the docked vessel. He also said sailors are likely as not to be unable to find the spare parts they need on board their ship when something malfunctions or breaks. Eventually, he said, a day will come when a ship that needs to deploy won’t be able to. “It’s getting harder and harder, I think, for us to look troops in the eye and say, ‘Hey, just do it and meet the standard,'” Copeman said. “Some ships can do it. Some ships can’t.” Copeman said that the surface navy’s depot maintenance budget is practically at rock bottom right now for the size of the Fleet. If the budget gets any lower, he warned that the Navy risks creating a “hollow” Fleet.
Congress closed its 2010-2012 session by passing a fiscal package that delays deep cuts to the defense budget and other executive branch agencies for two months, averting the “fiscal cliff” that threatened to slash nearly $50 billion from DOD’s 2013 appropriations ledger.
The negotiations offered a very public look at the high-drama posturing that has become a hallmark of dealings between the White House and Capitol Hill. To many casual observers, the back-and-forth signaled a new low in relations between the two branches, but to many on the inside, it was symptomatic of the legislative process that grinds on every day, usually outside of public view.
The hard work of crafting bipartisan legislation may take months of talks behind closed doors but produce only a few days of newsworthy drama. The annual National Defense Authorization Act (NDAA) is one of those must-pass measures that enjoy overwhelming bipartisan support but take months of meetings, briefings, hearings and tense negotiations among members of the House and Senate from both sides of the aisle and DOD. The Hill and Pentagon trade budget requests, legislative proposals, cost estimates, testing data, planning documents and long-term strategy to craft each year’s spending priorities and an overarching national-security policy. The House Armed Services Committee (HASC) leads the four defense committees each year, followed by House and Senate Defense Appropriators — the HAC-D and SAC-D — and finally the Senate Armed Services Committee — SASC.
Proceedings, January 2013
A close observer of defense-spending trends takes a look at dollars and sense and the looming budget challenges in the Pentagon.
Defense-budget headlines of late have concentrated on sequestration, as hand-wringing increased about the so-called fiscal cliff. Most coverage has focused on defense officials predicting dire consequences for the Department of Defense (DOD), or industry officials warning of job losses and collapse of certain technology sectors and associated businesses. The U.S. Naval Institute recently hosted Defense Forum Washington with a program titled “The Fiscal Cliff: What Does This Mean for Defense and National Security?” The conference focused on sequestration and its impacts. Speakers and panelists offered different perspectives on impact, ranging from disaster to a mere “pothole,” and on occurrence from irresponsible to a fait accompli that should happen to provoke fundamental changes in DOD.
Two weeks before budget-makers face the fiscal cliff deadline, there continues to be a great deal of uncertainty within the Pentagon. If the sequestration trigger goes into effect, program offices will be forced to cut billions of dollars from line items across the board. But within the Navy’s shipbuilding office, planners are already dealing with cuts that could impact the Virginia-class submarine program. The Navy and Congress have fought hard to institute a buy-rate of two Virginia-class boats a year, laying the groundwork for a five-year buy of the newest fast attack boat, beginning in 2014. But when the Navy delivered its budget request earlier this year, one submarine had been moved from the front of the line to the back so that budget planners could meet spending top lines mandated by last year’s Budget Control Act.
“We did not have sufficient headroom to fully fund the second boat in 2014,” Sean Stackley, the Navy’s top acquisition official, told the Senate Armed Services Seapower Subcommittee in April.
With a price tag of more than $2 billion, it’s easy to see how a submarine that’s two years away from construction ended up on the chopping block. But the costs associated with each boat have come down significantly since the program began, and opponents of the cut say removing one boat from the program now could reverse that trend.
USS Hawaii returns to Joint Base Pearl Harbor-Hickam after completing a six-month deployment to the western Pacific region In November. U.S. Navy Photo
The Navy estimates that sliding the submarine back to Fiscal Year 2014 from 2018 would reduce the total cost of the other nine boats in the current multiyear deal by roughly $900 million. Cost savings on par with the Navy’s estimate mean building the sub in 2014 would be 35 percent cheaper than doing it four years later. Virginia-class shipbuilders General Dynamic Electric Boat and Huntington Ingalls Industries’ Newport News Shipbuilding add that the continuity of two boats in 2014 would help maintain stability between the supplier base and the workforce.
Sequestration has lately been hotly debated and often derided. Many probably have heard the term, aware it involves budget reductions, and possibly many know it could come to pass on Jan. 2, 2013. These potential spending reductions and simultaneous expiration of tax cuts have been collectively dubbed the “fiscal cliff,” receiving increased, post-election media attention as the President and lame-duck Congress negotiate a potential deal to change or avert both. But what does sequestration mean, and in context of the Department of Defense (DOD), what is its impact?
Sequestration could still be avoided (the President alluded to this in the Oct. 22 final campaign debate). Likewise, another outcome could be modification of the amount of budget reduction and/or the mechanisms by which it is conducted. However, worst-case sequestration under current provisions, coupled with previous budget reductions under the Budget Control Act (BCA) and compounded by other long-standing trends in defense spending, will be extraordinarily disruptive and damaging to the long-term defense program. Any change to sequestration requires passage of new legislation and presidential signature before Jan. 2, 2013 which very well may not happen. Therefore, assuming sequestration does trigger as planned in both timing and manner, let’s consider implementation impact on DOD.
It’s been a little more than six months since two prominent Senate Armed Services Committee Republicans took aim at efforts underway within the Department of Defense (DoD) to develop a national biofuels market. During the Committee’s May, 24th mark-up of this year’s defense authorization bill, Sen. Jim Inhofe (R-OK) and the panel’s Ranking Member, John McCain (R-AZ), pushed through separate amendments that would have ended the Department’s pursuit of advanced renewable fuels.
The bill reported out of Committee included Inhofe’s amendment that prohibits the Pentagon from buying alternative fuels if their up-front cost is higher than that of traditional fossil fuels. Language added by McCain and backed by Inhofe banned the DoD from building or retooling refineries to produce biofuels. But in the last two weeks, talks on the energy issue intensified, sparked by a letter to Senate leadership signed by 38 members. The topic of biofuels emerged as a key sticking point, Senate aides said.
Fuels Distribution Systems Operator David Riggs, from Fleet Logistic Center Puget Sound Manchester Fuel Department, secures a fueling hose during a biofuels transfer to the Military Sealift Command fleet replenishment oiler USNS Henry J. Kaiser (T-AO 187). Henry J. Kaiser took on 900,000 gallons of a 50/50 blend of advanced biofuels and is scheduled to deliver the biofuels to platforms participating in the Great Green Fleet demonstration during the exercise Rim of the Pacific 2012. U.S. Navy Photo
The November, 16th letter led by Sen. Mark Udall (D-CO) and joined by 35 other Democrats, Independent Joe Lieberman (CT) and Republican Susan Collins (ME) called the Inhofe and McCain provisions “harmful and counterproductive” and expressed strong support for “the ability of military leaders to develop and employ alternative fuels.”
Rep. J. Randy Forbes is chairman of the House Armed Services Readiness Subcommittee. The Virginia Republican has held several hearings on naval readiness in the current Congress. He will be part of a panel on the looming fiscal cliff— that could result in a 10 percent reduction in defense spending—at Defense Forum Washington hosted by the U.S. Naval Institute next week.
Rep. Forbes, you said Wednesday that you’re expecting to see sequestration in some form in January. Could you expand on that?
Obviously we are still hopeful to divert sequestration from taking place. The clock is ticking. We continue to believe that defense has already paid its share and shouldn’t be cut in such an arbitrary and drastic fashion. But it’s going to take an awful lot to keep from going over the cliff.