Center for Arms Control

Security Spending

by Christopher Hellman [contact information]

Analysis of the Fiscal Year 2010 Pentagon Spending Request

May 8, 2009

BACKGROUND

On March 2, 2009, the Obama Administration released the initial details of its proposed Fiscal Year 2010 budget for the federal government. As part of this budget, the Administration is seeking $533.8 billion in funding for the Department of Defense, which does not include funding for military operations in Iraq and Afghanistan or the nuclear weapons related activities of the Department of Energy. Adjusted for inflation, the $534 billion request is $9 billion, or 1.7 percent, more than Congress approved for the Defense Department for FY 2009.

On April 6, 2009, Defense Secretary Robert Gates released some additional details on the Pentagon’s FY 2010 budget request including announcing the termination of a number of major weapons systems. These included: the F-22 Fighter; the C-17 Transport Aircraft; the Presidential Helicopter; the Air Force’s Combat Search and Rescue X (CSAR-X) helicopter; the DDG-1000 “Zumwalt” class destroyer; the vehicle component of the Future Combat System (FCS); the Airborne Laser; the Transformational Satellite (TSAT) program; and the Missile Defense Agency’s Multiple Kill Vehicle (MKV) program.

Today’s budget release also includes an additional $130.0 billon to support “Overseas Contingency Operations” (i.e. military operations in Iraq and Afghanistan). Until now, the government has funded military operations through special supplemental appropriations packages. When the Obama Administration released its request on April 9 for supplemental war funding for the remainder of Fiscal Year 2009, however, it stated that it would be the final supplemental request for Iraq and Afghanistan, and that starting in Fiscal Year 2010, these costs would be included as part of the White House’s annual budget request.

REQUEST HIGHLIGHTS

“Top Line” Funding – The Obama Administration is requesting $533.8 billion for the Department of Defense in Fiscal Year 2010, which begins on October 1, 2009. This is $20.5 billion more than the current levels, an increase of 4 percent, and an inflation-adjusted (“real”) increase of 1.7 percent. This figure does not include funding for the nuclear weapons activities of the Department of Energy, which is considered part of total Defense Department spending. Nor does this figure include the costs of ongoing military operations in Iraq and Afghanistan.

Funding for Contingency Operations (Supplemental Appropriations) – In addition to its annual budget request, the Pentagon is also requesting $130 billion for combat operations for Fiscal Year 2010. Congress has already approved $814 billion in supplemental funding for operations in Iraq and Afghanistan, and an additional $75.5 billion in FY’09 war funding is still pending before the House and Senate.

Missile Defense – The Administration is requesting $9.3 billion for the Missile Defense Agency in FY’10, down roughly $1.6 billion from the current $10.9 billion. This total does not include $1 billion for the SBIRS-High satellite. The request calls for the termination of the Multiple Kill Vehicle (MKV), and cancels the second airborne laser (ABL) prototype aircraft, keeping the existing aircraft as part of a restructured R&D program.

Shipbuilding – The request includes funding for the continued development of the Aircraft Carrier Replacement Program ($1.4 billion) the Littoral Combat Ship ($1.9 billion for three vessels), and $4.2 billion for the purchase of one SSN-774 “Virginia” class nuclear attack submarine. It also includes $2.2 billion to restart production of the DDG-51 “Arleigh Burke” destroyer class and to purchase one vessel, and it includes $1.6 billion to complete the funding for the third and final DDG-1000 [DD(x)] “Zumwalt” class destroyer program.

Aircraft – As previously announced by Secretary Gates, the request includes no funding for additional F-22 or C-17 aircraft. The request includes $1.2 billion for 9 of the Navy’s F/A-18E/F “Super Hornet,” $2.7 billion for procurement of 35 V-22 “Osprey” tilt-rotor aircraft, and $10.4 billion for 30 F-35 Joint Strike Fighters. It also includes $440 million for the Air Force’s KC-X new aerial re-fueling tanker program, with the intent to solicit bids this summer.

Army Ground Systems – On April 6 Secretary Gates announced a major restructuring of the Future Combat System (FCS), including termination of the current $87 billion manned vehicle, but the request includes nearly $3 billion for other aspects of the program. The request funds $5.5 billion for procurement of Mine Resistant Ambush Protected (MRAP) vehicles and $1.7 billion for HMMWV “Humvee” vehicles, plus $479 million support funding for the “Stryker” armored vehicle program.

Military Personnel – The request includes an increase in base pay of 2.9 percent. According to the Pentagon, base pay has risen over 35 percent since 2001.

Army/Marine Corps End Strengths – The budget request reflects the fact that the Army and Marine Corps have reached their end strength goals of 547,400 and 202,100 active duty personnel respectively sooner than planned. In addition, the budget calls for reducing the number of planned Army Brigade Combat Teams (BCT) from 45 to 48 while maintaining the planned increase in end strength of 547,000. The decision is intended to ensure that the remaining BCTs will be fully manned when deployed and reduces the Army’s use of its “stop loss” program.

Nuclear and Strategic Forces – The request begins to replace the Navy’s “Ohio” class ballistic missile submarines in FY 2010, and delays the development of the next generation Air Force bomber program.

Cooperative Threat Reduction (CTR) – The Administration is requesting $404.1 million for the CTR (also known as “Nunn-Lugar”) program, 6.9 percent below the current level of $434.1 million. The CTR program assists Russia and the former Soviet republics in the safeguarding of weapons of mass destruction and related technologies.

Department of Energy Activities – The request includes $6.384 billion for the nuclear weapons activities of the Department of Energy (a $4.4 million increase), and $2.137 billion for DoE’s nuclear nonproliferation work, (a $654 million increase, or 44 percent above current levels). It also includes $5.496 billion for Defense Environmental Cleanup, $161 million (or 2.9 percent) below current levels. [SOURCE: The Department of Energy’s Fiscal Year 2010 request]

FUNDING PROVISIONS

FY’10 FUNDING BY FUNCTION
$136.0 billion – Military Personnel (up $11.1 billion)
$185.7 billion – Operations & Maintenance (up $8.4 billion)
$107.4 billion – Procurement (up $5.7 billion)
$78.6 billion – RDT&E (down $0.9 billion)
$21.0 billion – Military Construction (down $0.9 billion)
$2.0 billion – Family Housing (down $1.2 billion)
$3.1 billion – Other (down $0.1 billion)
$533.8 billion – TOTAL (051) (up $20.5 billion)

FY’10 FUNDING BY SERVICE
$142.1 billion – Army (up $2.9 billion)
$156.4 billion – Navy/Marine Corps (up $9.0 billion)
$144.5 billion -- Air Force (up $3.3 billion)
$90.8 billion – Defense Wide (up $5.3 billion)
$533.8 billion – TOTAL (051) (up $20.5 billion)

FY’10 FUNDING REQUEST FOR BALLISTIC MISSILE DEFENSE

Ballistic Missile Defense
$10,920.5 million – FY’09 Total
$9,301.5 million – FY’10 Request

Ballistic Missile Defense Agency (MDA) – Selected Functions

Terminal Defense
$956.7 million – FY’09 Total
$719.5 million – FY’10 Request

Boost Defense
$400.8 million – FY’09 Total
$186.7 million – FY’10 Request

Midcourse Defense
$1,507.5 million – FY’09 Total
$982.9 million – FY’10 Request

AEGIS BMD
$1,170.5 million – FY’09 Total
$1,859.5 million – FY’10 Request

THAAD
$882.4 million – FY’09 Total
$1,117.5 million – FY’10 Request

BMD Sensors
$767.6 million – FY’09 Total
$636.9 million – FY’10 Request

Space Tracking & Surveillance
$208.9 million – FY’09 Total
$180.0 million – FY’10 Request

BMD Technologies
$119.3 million – FY’09 Total
$109.8 million – FY’10 Request

BMD System Interceptors
$385.5 million – FY’09 Total
$0 – FY’10 Request

Multiple Kill Vehicle
$283.5 million – FY’09 Total
$0 million – FY’10 Request
NOTE: On April 6 Secretary Gates announced that the Pentagon was terminating this program

BMD European Components
$465.5 million – FY’09 Total
$50.5 million – FY’10 Request

Israeli Cooperative
$0 million – FY’09 Total
$119.6 million – FY’10 Request

Non-MDA Ballistic Missile Defense

MEADS/Patriot CAP
$460.8 million – FY’09 Total
$585.6 million – FY’10 Request

Patriot/PAC-3
$1,037.1 million – FY’09 Total
$404.4 million – FY’10 Request

Other

Space Based Infra-Red System-High (SBIRS-High)
$2,335.5 million – FY’09 Total
$1,013.5 million – FY’10 Request

GRAND TOTAL Ballistic Missile Defense

$13,256.0 million – FY’09 Total
$10,315.0 million – FY’10 Request

Source: DoD’s FY 2010 “Program Acquisition Costs by Weapon System,” February 2009.

FUNDING FOR SELECTED WEAPONS SYSTEMS

NOTE: Amounts reflect weapons funding included in both the base budget request and the FY 2010 Overseas Contingencies Operations funding request

F-22A Fighter
$1,015.2 million requested
$350.8 million – per unit cost
$64,539.9 million – total program cost
NOTE: On April 6 Secretary Gates announced that the Pentagon was ending the program at 187 aircraft, the last four of which are to be funded as part of the Fiscal Year 2009 Emergency Supplemental spending package announced on April 9.

F-35 Fighter (JSF)
$10,426.9 million requested for 30 aircraft (20 Navy and 10 Air Force)
$121.7 million – per unit cost
$298,842.8 million – total program cost

F/A-18E/F Fighter
$1,188.7 million requested for 9 aircraft
$94.0 million – per unit cost
$46,344.8 million – total program cost

E/A-18G Jamming Aircraft
$1,687.8 million requested for 22 aircraft
$101.8 million – per unit cost
$8,649.1 million – total program cost

C-17 Transport Aircraft
$852.4 million requested
$327.9 million – per unit cost
$62,306.7 million – total program cost
NOTE: On April 6 Secretary Gates announced that the Pentagon would end production of the C-17 at 205 aircraft, the number already approved by Congress. The amount requested includes funding for shut down of C-17 production

C-130J Cargo Aircraft
$509.2 million requested for 3 aircraft
$89.8 million – per unit cost
$12,029.3 million – total program cost

Joint Cargo Aircraft (JCA)
$328.5 million requested for 8 aircraft
$52.4 million – per unit cost
$4,087.8 million – total program cost

KC-X Next Generation Airborne Tanker
$429.6 million requested

V-22 Osprey Aircraft
$2,860.4 million requested for 35 aircraft (30 Navy and 5 Air Force)
$118.4 million – per unit cost
$54,226.9 million – total program cost

MH-60R "Seahawk" Helicopter
$1,025.2 million requested for 24 aircraft
$47.8 million – per unit cost
$12,139.4 million – total program cost

MH-60S "Knighthawk" Helicopter
$542.0 million requested for 18 aircraft
$28.9 million – per unit cost
$7,843.0 million – total program cost

Aircraft Carrier Replacement Program (CVN-21)
$1,397.3 million requested
$11,706.4 – per unit cost
$35,119.1 million – total program cost

DDG-1000 (DDx) Surface Combatant
$1,623.2 million requested
$4,126.7 million – per unit cost
$28,886.7 million – total program cost
NOTE: On April 6 Secretary Gates announced that the Pentagon was ending the DDG-1000 program at three vessels. The funds requested in FY’10 are to complete the third vessel.

DDG-51 “Arleigh Burke” Class Destroyer
$2,241.3 million for one vessel
$1,012.2 million – per unit cost
$62,756.3 million – total program cost

Littoral Combat Ship (LCS)
$1,877.8 million requested for three vessels
$1,424.3 million – per unit cost
$2,848.6 million – total program cost
NOTE: "Total Program Cost" for LCS reflects only the cost of Research, Development, Testing and Evaluation (RDT&E).

SSN-774 "Virginia" Attack Submarine
$4,182.0 million requested for one vessel
$3,065.5million – per unit cost
$91,965.3 million – total program cost

LPD-17 Landing Ship
$1,062.2 million requested
$1,582.4 million – per unit cost
$14,241.7 million – total program cost

T-AKE Cargo & Ammunition Ship
$940.1 million for two vessels

Trident II D-5 Missile
$1,135.4 million requested for 24 missiles
$69.2 million – per unit cost
$38,817.4 million – total program cost

Tactical Tomahawk Cruise Missile
$296.3 million requested for 196 missiles
$1.33 – per unit cost
$4,375.3 million – total program cost

Joint Direct Attack Munition (JDAM)
$203.0 million requested for 7,452 units
$0.03 million – per unit cost
$5,260.1 million – total program cost

Joint Stand-off Weapon (JSOW)
$155.3 million requested for 430 units
$0.44 million – per unit cost
$4,586.7 million – total program cost

Joint Air to Surface Standoff Missile (JASSM)
$82.2 million requested
$1.2 million – per unit cost
$6,065.8 million – total program cost

Small Diameter Bomb
$339.8 million requested for 2,440 units
$0.06 million – per unit cost
$1,476.9 million – total program cost

Stryker Interim Armored Vehicle (IAV)
$478.9 million requested
$4.4 million – per unit cost
$15,691.1 million – total program cost

Future Combat System (FCS)
$2,981.0 million requested
N/A – per unit cost
$159,320.2 million – total program cost
NOTE: On April 6, Secretary Gates announced a major restructuring of the FCS program, including termination of its $87 billion vehicle component

Family of Medium Tactical Vehicles (FMTV)
$1,620.2 million requested for 5,532 vehicles
$0.25 million – per unit cost
$20,676.4 million – total program cost

Expeditionary Fighting Vehicle
$293.5 million requested
$26.8 million – per unit cost
$15,860.2 million – total program cost

Mine Resistant Ambush Protected Vehicle (MRAP)
$5,456.0 million requested for 1,080 vehicles
$1.46 million – per unit cost
$22,415.0 million – total program cost

HMMWV “Humvee” Vehicle
$1,746.9 million requested for 10,268 vehicles

Sources: DoD’s FY 2010 Budget Request Summary Justification “Major Weapons Systems,” February 2009.

"Per Unit Costs" and "Total Program Costs" are based on DoD's Selected Acquisition Report, November 17, 2008. “Per Unit Costs” are derived by dividing total program costs by the number of systems purchased, and include both procurement and research & development funding.

GLOSSARY

* Military Budget – Military spending contained in the Pentagon budget, intelligence budget, Department of Energy military programs, and a few smaller programs
* Budget Authority (BA) – Total amount that Congress makes available to an agency through authorizations and appropriations in a Fiscal Year
* Outlays – Amount an agency actually spends, money that has been approved in current or prior fiscal years
* DoD – Department of Defense
* DoE – Department of Energy
* Fiscal Year (FY) – from October 1 through September 30

Christopher Hellman 202-546-0795 chellman@armscontrolcenter.org

Christopher Hellman is the Military Policy Fellow at the Center for Arms Control and Non-Proliferation where his work focuses on national security spending, military planning and policy, trends in the defense industry, global military spending, and homeland security. Hellman is a frequent media commentator on these issues. Previously, Hellman worked for the Center for Defense Information, Physicians for Social Responsibility, and spent ten years as a congressional staffer working on national security and foreign policy issues.

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