Outlook 2017 Military Division May 22, 2017

Transcription

1 Outlook 2017 Military Division May 22, 2017

2 AGENDA How We Got Here DoD Overview Army Overview Thoughts On Future Directions For The Army How To Find And View Budget Documents Questions and Discussion

3 HOW WE GOT HERE Change in administration Alphabet Soup BCA BBA CR Base OCO Evolving Geopolitical Crises and Response

4 From There To Here

5 DoD Overview

6 February 9,

7 The FY 2017 Budget: Key Points Adheres to the Bipartisan Budget Act of 2015 (Dollars in Billions) Base budget request $523.9 Overseas Contingency Operations (OCO) budget request $58.8 Total budget request $582.7 Funds a joint force with the capacity and capability to: Defend the homeland Respond to five challenges o Russia o China o North Korea o Iran o Global counter-terrorism Respond to aggression from two different adversaries with overlapping timelines DoD requires funding above the BCA levels after FY 2017 to properly support this strategy

8 Secretary Carter s Priorities for This Budget Given the current level of budget resources ($800B in Budget Control Act cuts), we can t reduce all risk. Instead, the Department must: Prioritize conventional deterrence against our most advanced adversaries Focus more on the shape than the size of the force o Seek the best balance between force structure (size), modernization (capability) and readiness o Emphasize lethality and capability of the force rather than size o Emphasize posture rather than presence Emphasize innovation o Attracting, retaining, and managing talent (Force of the Future) o Update war plans and operational concepts o Pursue offset technologies o Institutional efficiency and reform Today s security environment is dramatically different and it requires new ways of thinking and new ways of acting Secretary Carter, February 2, 2016

9 Major Investments in the FY 2017 Budget (Quantities/Dollars in Billions) Aircraft FY 2017 FYDP F-35 Joint Strike Fighter (USAF, USMC, USN) 63/$ /$56.3 F/A-18 (Navy) 2/$0.4 16/$2.2 KC-46 Tanker Replacement (Air Force) 15/$3.1 75/$15.7 AH-64E Apache helicopters (Army) 52/$ /$5.6 MQ-9 Reaper 24/$1.1 24/$3.9 Shipbuilding Virginia Class submarines (Navy) 2/$5.2 9/$29.4 DDG-51 AEGIS Destroyers (Navy) 2/$3.4 10/$18.3 Littoral Combat ships (Navy) 2/$1.3 7/$5.6 Space Evolved Expendable Launch Vehicle (Air Force) 5/$1.8 23/$9.4 Global Positioning System (Air Force) --/$0.8 10/$5.6 Requires Funding in 5-Year Plan + FY 2017 OCO *Includes Base + OCO Procurement and RDT&E Funding

10 $800 DoD Funding from 9/11 Through FY 2017 Request (Discretionary BudgetAuthority) $700 $600 $500 $400 $ $ $100 $0 FY12 FY13 FY14 FY15 FY16 FY17 Numbers may not add due to rounding DoD Topline, FY 2001 FY 2017 (Current Dollars in Billions) FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 Base Budget OCO/Other Budget

11 FY 2017 Total Base and OCO Funding By Appropriation Title Military Construction and Family Housing, $7.6 By Military Department RDT&E, $71.7 Military Personnel, $138.5 Defense Wide $102.9 Army $148.0 Procurement, $112.0 O&M, $250.9 Air Force $166.9 Navy $164.8 FY 2017 Request: $582.7 billion

12 Cuts to hit the lower FY 2017 Topline We will procure fewer weapons systems than planned: 9 AH-64 Apache helicopters(army) 24 UH-60 Blackhawk helicopters (Army) 5 F-35 A Joint StrikeFighters 2 V-22 aircraft (Navy) 3 C-130J aircraft (Air Force) 4 LCAC Service Life Extension Programs (Navy) 77 Joint Light Tactical Vehicles (Marine Corps) Aircraft procurement accounts reduced $4.4 billion Shipbuilding reduced $1.75 billion Other procurement accounts reduced $2.6 billion Reduce plans for new military construction projects by $1.1 billion Comparison to FY 2016 PB Plan for FY 2017

13 FY 2017 Force Structure Force structure assessed sufficient to execute the strategy Major elements include: 14 SSBNs, 450 ICBMs 96 Operational Bombers (154 total) 287-ship Navy with 11 Carriers in FY 2017 (Building to a 308-ship Navy) 54+1 Tactical fighter squadrons 990k Army Total End Strength (460k Active) (30 Active BCTs in FY 2017) 221k Marine Corps Total End Strength (182k Active) FY 2017 Force Structure Sufficient to Execute Strategy

14 FY 2017 Overseas Contingency Operations (OCO) (Dollars in Billions) Operation FREEDOM S SENTINEL (Afghanistan) and Theater Posture $ Continues responsible transition of in-country presence - Includes training and equipping of Afghan security forces ($3.4 billion) - Includes other theater-wide support requirements and costs - Includes Coalition Support ($1.4B) Operation INHERENT RESOLVE (Iraq and Syria) $7.5 - Supports slightly increased activities - Includes training and equipping of Iraqi security forces and vetted moderate Syrian opposition ($0.9 billion) European Reassurance Initiative Counterterrorism Partnerships Fund Increases counterterrorism activities in Africa Base-to-OCO requirements - Consistent with enacted BBA OCO level of $58.8B - Supports other readiness and readiness support requirements - Includes preferred munitions $3.4 $1.0 $0.2 $5.0 OCO funding crucial to trans-regional counterterrorism efforts

15 Joint Force Readiness PB17 funds Service efforts to enhance readiness Focus is on recovering full spectrum readiness to meet current demands and to ensure our Joint Force is ready for future contingencies Resources are not the dominant factor in readiness recovery; OPTEMPO, training, maintenance throughput, and other factors may delay readiness recovery Joint Force dependent on OCO funding for current operational demands and future reset requirements PB17 allows Services to continue readiness recovery but gains are fragile and dependent on continued adequate and predictable resources

16 Additional Budget Request in March 2017 Provide a summary of what is included in the $30 billion March request for additional appropriations Base budget request Overseas Contingency Operations (OCO) budget request Total budget request (Dollars in Billions) $ $+30.0 Request the Congress pass a full year Defense Appropriations bill that includes this request for additional appropriations Under a CR, There is a tremendous mismatch of appropriations compared to the request - not enough operating funds, too much procurement funds Inability to increase rate productions hampers planned programs; may result in increased unit costs No new start restrictions affect planned deliveries of equipment to the warfighter DoD could be limited in its ability to counter the Islamic State of Iraq and Syria (ISIS)

17 What the FY 2017 Additional Request Would Buy Execute the President s direction to: Conduct a 30-day Readiness Review Develop a Military Readiness request for additional resources based on the results of the review Develop a plan to accelerate the campaign to defeat ISIS and other worldwide violent extremists organizations Require additional funding to: Improve near-term readiness (i.e., maintenance, spare parts, training time, peacetime flying hours, munitions, etc.) Fund must pay bills (e.g., pay raise increase to 2.1%, denied healthcare reforms, storm damage to military facilities, NDAA added end strength) Avoid 4 th quarter reprogramming actions especially in the operating accounts Invest in items to begin improving mid-term and long-term readiness

18 $800 DoD Funding from 9/11 Through FY 2018 Request (Discretionary Budget Authority) March Request for FY 2017 Base = $+25B OCO = +5B Total = $+30B $700 $600 $500 $400 $ $ $100 $0 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 DoD Topline, FY 2001 FY 2018 (Current Dollars in Billions) Base Budget OCO/Other Budget FY17 FY17 FY18 O T T Request Amend Numbers may not add due to rounding Note: FY 2017 reflects enacted funding provided in division A of P.L for the Military Constructions Bill appropriations and division B of P.L (Security Assistance Appropriations Act, 2017) for the Defense Bill appropriations

19 (Dollars in Billions) Changes to Original FY17 Base Budget Request by Title Changes to Feb 2016 Budget Request +4.8% $+24.9B $524 $549 Procurement $+13.5B +13.0% Military Construction/Family Housing* $+0.2B +3.5% RDT&E $+2.0B +2.9% O&M/WCF $+8.2B +3.9% FY17 FY07* Request FY17 Request for Additional Appropriations Military Personnel $+1.0B +0.7% *Reflects enacted division A of P.L except it excludes $ million of prior year rescissions

20 Request Supports Future Capabilities (Base Budget) (Dollars in Millions) $+15.5B* Army $+4.6B Navy $+5.8B Air Force $+4.1B Defense-Wide $+1.0B MQ-1 UAV +13/$+130 AH-64 Apaches +20/$+708 UH /$+376 RQ-7 UAV Mods $+248 MSE Missiles +60/$+279 Javelin +591/$+104 Guided MLRS+1188/$+155 Patriot Mods $+228 Abrams Upgrade+27/$+330 Bradley Mods $+214 Ammunition $+304 Ammo Industrial Facility $+182 I 3 MP $+195 F/A-18E/F +24/$+2,320 V-22 +2/$+171 V-22 Mods $+99 P-8 +6/$+920 C-40A +2/$+208 Aircraft Spares $+302 Tomahawks +96/$+85 Standard Missile $+43 DDG-51 $+433 Ship-to-Shore Connector Javelin G/ATOR I 3 MP = Installation Info Infrastructure Mod Program G/ATOR = Ground/Air Task Oriented Radar +3/$ /$+77 +3/$+125 F-35 HC/MC-130 F-16 Mods C-130 Mods Bombs Vehicles Physical Security Eq EOD Eq EOD = Explosive Disposal Ordinance MDA = Missile Defense Agency +5/$ /$+500 $+160 $+137 $+60 $+361 $+145 $+221 THAAD USSOCOM ACWA +12/$+151 $+198 $+127 THAAD = Terminal High Altitude Area Defense ACWA = Assembled Chemical Weapons Alternatives Investments Improve Near-term and Mid-term Warfighter Readiness *Includes procurement and RDT&E funding

21 Army Overview

22 Velocity of Instability BUILD AFGHAN FORCES DETER RUSSIA The US Army remains committed to training Afghan forces, and supporting counterterrorism operations against the remnants of alqaeda ENGAGE ASIA / DETER NORTH KOREA The US Army is working with allies to deter Russian aggression and assure European nations DESTROY ISIL The US Army contributes to Asia Pacific regional security and stability to deter North Korean aggression and assure Pacific partners The US Army contributes troops to train, advise and assist Iraqi Security to destroy ISIL The instability throughout the world has a direct impact on the number and size of US Army s missions and operations and its ability to keep pace with the global security environment.

23 $243 $240 $99 $100 $205 $67 Budget Trends FY 2010 FY 2017($B) $177 $50 $162 $36 $151 $28 Overseas Contingency Funding (OCO) FY14: $3.10B Base-to-OCO Transfer FY15: $0.85B Base-to-OCO Transfer; $.27B OCO Readiness Add FY16: $2.20B Base-to-OCO Transfer; $.49B OCO Readiness Add Base Actuals/Enacted FY17: $2.02B included in OCO request to comply with BBA15 FY17 Base Request $148 $148 $21 $23 $3.1 $.1.1 $2.7 $2.0 $144 $140 $138 $127 $126 $123 $127 $125 $123 Base $122 Base $124 Base $123 Base Actuals Enacted Request FY 10 FY 11 FY 12 FY 13 FY 14 FY 15 FY 16 FY 17 Numbers may not add due to rounding Global instability in the face of continued fiscal pressures requires leveraging OCO flexibility to meet requirements Source: DoD Comptroller Information System

24 $ Billions Army Topline $138.4 (Base Funding Program) (Base Funding Program) $135 $127.4 $126.2 $126.5 $125.1 $125 $122.7 $123.1 $121.9 $124.3 $123.1 $120.5 $121.1 $ $116.8 $ Base-to-OCO Transfer FY12-15 Actuals BBA Relief - Base FY16 Enacted BCA Levels FY17 PB Request FY14: $3.1B Base-to-OCO Transfer FY15: $.85B Base-to-OCO Transfer FY16: $2.2B Base-to-OCO Transfer FY17: $2.0B included in OCO request to comply with BBA15 The two-year Bipartisan Budget Acts of 2013 (BBA13) and 2015 (BBA15) provided limited predictability but did not eliminate future BCA budget spending caps which, barring new legislation, return in FY18. BBA15 funding levels for FY17 required the Army to prioritize near-term operational requirements and readiness at the expense of end strength, sustainment and modernization to meet competing current and future demands BBA15 repeats the seesaw funding of BBA13 extending the time necessary to restore balance between readiness, end strength and modernization. OCO funding is an essential funding source for incremental wartime costs, but its continued use as a supplement for shortfalls to base funding requirements comes at the detriment of prudent long-term planning and erosion of the Army s Base Funding program.

25 Operational Testing Trust Your Product!?

26 FY 2017 Budget Request Request ($B) (Base Funding Program) Other Base: Chemical Agent and Munitions Destruction, Army Working Capital Fund, Arlington National Cemetery 1: Includes Environmental Restoration Account (ERA) funding 2: Includes $3.1B Base-to-OCO Transfer 3: Includes $.85B Base-to-OCO Transfer; $.3B Readiness Add 4: Includes $2.2B Base-to-OCO Transfer; $.5B Readiness Add 5: Includes $2.0B in OCO request to comply with BBA15 FY17 request is $1.4B less than FY16 enacted, protecting current readiness at the expense of future modernization and end strength Funding levels and distribution represent reductions required to meet the BBA15 funding toplines. FY14 Actuals 18% 36% FY15 Actuals MILCON, $1.3 RDA, $22.6 Other, $0.7 O&M, $45.2 FY16 Enacted Base Request MILPERS, $55.3 FY17 Request Military Personnel Operation and Maintenance Procurement/RDTE Military Const/Family Housing/BRAC Other Base (CAMD/AWCF/ANC) Totals $125.1B 44%

27 Procurement Summary Request ($B) FY14 Actuals FY15 Actual FY16 Enacted FY17 Request Procurement Total Aircraft Missiles WTCV Ammunition Other Procurement $15.1 B Capability Portfolio* Numbers may not sum due to rounding 1: Includes OCO request to comply with BBA15: Missiles $150M and Other Procurement $162M Prioritizes modernization of Apache, Black Hawk, and Chinook helicopter fleets in support of the Total Force Prioritizes modernization of Abrams and Bradley Mods, Stryker (Double V Hull & Lethality), Paladin Integrated Management, and Joint Light Tactical Vehicle in support of the Combat Vehicle Modernization Strategy Modernizes the Mission Command Network to enable Soldiers with information and protected connectivity across all tactical echelons for Unified Land Operations in support of the Joint Force and our multiple partners * Small amount of FY17 S&T procurement not reflected in pie chart Ensure formations possess the appropriate balance of lethality, mobility, situational awareness and protection

28 Overseas Contingency Operations Request ($M) FY14 FY15 FY16 FY17 Actuals Actuals Enacted Request Military Personnel (MILPERS) 5,593 3,190 2,037 2,228 1 Operation & Maintenance (O&M) 23, , , ,826 2 Research, Development, & Acquisition(RDA) 1,802 1,676 2,084 2,563 3 Military Construction, Army (MCA) Working Capital Fund(AWCF) Army Total 31,076 22,038 16,393 18,682 Passthrough / Transfer Accounts Afghan Security Forces Fund 3,962 4,109 3,652 3,449 Iraq Train & Equip Fund - 1, Syria Train & Equip Fund Joint Improvised Explosive Device Defeat Fund Afghanistan Infrastructure Fund All Army Appropriations 36,116 28,209 21,110 23,011 1: MILPERS account does not include $63M in FY17 OCO request to comply with BBA15 2: O&M account does not include Base-to-OCO Transfers: FY14: $3,100M; FY 15: $850M; FY16: $2,200M. Does not include $1,650M in FY17 OCO request to comply with BBA15 3: RDA account does not include $312M in FY17 OCO request to comply with BBA15 4: 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. Operation FREEDOM S SENTINEL (Afghanistan; Horn of Africa) includes Operation Spartan Shield (CENTCOM) Operation INHERENT RESOLVE (Iraq) European Reassurance Initiative (Europe) Training for Moderate Syrian Opposition (Levant) OCORequest $25.0B 5 O&M, 62% $15,476 RDA,11% $2,875 Pass-Through, 17% $4,329 MILPERS,9% $2,291 MCA/AWCF,$66 5: $25B OCO requestincludes $2B in OCO to comply with BBA15

29 OCO-European Reassurance Initiative Extends Presidential initiative beyond initial two year period Continues Brigade Combat Team rotations to Europe Increases warfighting capacity on the continent through increased prepositioned equipment stocks Continues to provide rotational aviation capability to the European Command Area of Responsibility Initiative ($M) FY15 Actual FY16 Enacted FY17 Request Increased Presence $ 266 $ 320 $ 727 Build Partner Capacity $ 3 $ 38 $ 50 Additional Bilateral & Multilateral Exercises & Training $ 15 $ 61 $ 89 Setting Conditions $ 161 $ 91 $ 1,959 Total $ 444 $ 509 $ 2,825 U.S. Army AH-64 helicopter crew, assigned to 12th Combat Aviation Brigade, provides over watch for a Danish Leopard 2 battle tank moving into initial battle position on the live-fire range during Operation White Sword at the Oksbol Training Area, Denmark, Dec. 10, 2015 The Army is key to the EUCOM effort to demonstrate US resolve to assure our European Allies and deter any aggression that could threaten European security

30 FY 2017 Amended Budget Request Request ($B) (Base Funding Program) FY17 Request FY17 Amend t FY17 Total MilitaryPersonnel Operation andmaintenance Procurement/RDTE Military Const/Family Housing/BRAC Other Base(CHMD/AWCF/ANC) Totals Other Base: Chemical Agent and Munitions Destruction, Army Working Capital Fund, Arlington National Cemetery 1: Includes Environmental Restoration Account (ERA) funding 2: Includes $2.0B transfer of Base requirements to OCO to comply with BBA15 FY17 total request is $7.19B more than FY17 PB Request, enhancing current readiness while providing a more balanced funding program across all appropriations 20% MILCON, $1.4 RDA, $27.1 Other, $0.7 O&M, $47.3 MILPERS, $55.7 $132.3B 42% 36%

31 New Paradigms (?)

32 Request ($B) Procurement Total Modernization FY14 Actuals 14.1 FY15 Actuals 13.9 FY16 Enacted 16.4 S1 FY17 Request RDT&E Total RDA Total ummary (Base) $22.6 B Capability Portfolios 1: Includes $312M in OCO request tocomply with BBA15 Slows the pace of near-term development and accepts risk in reduced operational overmatch in the mid-term Protects Science and Technology (S&T) funding to support the Army of 2025 guided by the Army Operating Concept Continues to develop and incrementally improve existing fleet systems to enhance survivability, mobility, and lethality Balanced portfolio, fiscally constrained by current operational/readiness priorities

33 RDT&E Summary Request ($B) FY14 Actuals FY15 Actuals FY16 Enacted FY17 Request RDT&E Total Basic Research Applied Research Advanced Technology Dev Demonstration/Validation Engineering Manufacturing Dev Testing & Management Support Operational System Development $7.5 B Capability Portfolio Numbers may not sum due to rounding Invests in key S&T efforts to include Combat Vehicle & Automotive Technology, Joint Multi-Role Helicopter, and High Energy Lasers Major engineering and developmental efforts include: CombatVehicle, Air & Missile Defense, and Aircraft Improvement Programs; Assured Position, Navigation & Timing; and CyberspaceOperations Starts Ground Mobility Vehicle and Mobile Protected Firepower toincrease Brigade Combat Team mobility and lethality in support of the Combat Vehicle Modernization Strategy Continue to invest in military-unique revolutionary and evolutionary technologies to solve future capability gaps

34 Recent New Products

35 Rapid Innovation Fund Requirement #: ARMY-FY17-18-PEOSOLD05 Title: Advanced Materials for Soldier Environmental Protection Military System or Acquisition Customer: Program Executive Office Soldier, Project Manager Soldier Protection & Individual Equipment (PM SPIE) Description: Advanced materials are needed that provide improved protection from various threats and environments. Environmentally protective materials/systems are needed which provide improved comfort and dexterity for mission execution across a wide spectrum of environments. Thermally protective materials are desired with improved durability, strength, and moisture vapor transport. Alternative spatial vector protection technologies are needed with increased deterrence, functional time, and low toxicity. Breakthrough alternative concealment technologies are needed. Advanced and innovative ways to improve weight distribution of load carriage equipment are needed. Technologies and processes which combine multiple capabilities, reduce weight and/or reduce cost are desired. Mature technology solutions are desired that can satisfy this requirement for $1 million or less. Because additional funds may become available, priced options for additional funding are encouraged. Proposals for base amounts greater than $1M will be considered, but will be at a competitive disadvantage to lower dollar figure efforts. Technical POC: Suzanne Horner, , suzanne.e.horner.civ@mail.mil Requirement #: ARMY-FY17-14-PEOSOLD01 Title: "Advanced Technologies for Lighter Weight Soldier Protective Equipment Military System or Acquisition Customer: Program Executive Office Soldier, Project Manager Soldier Protection & Individual Equipment (PM SPIE) Description: US Army has a need for advanced material, processing, and integration technology for lighter weight Soldier equipment with equal or improved performance. Novel fiber-based, film, or other advanced materials with improved tenacity, durability and ballistic performance are desired for application in hard armor, soft armor, and helmets. Technology is needed for improved hard armor inserts such as ultra-hard ceramics, advanced alternative materials, or novel integration methods. Advanced manufacturing methods are needed for hard armor and combat helmets to improve ballistic performance and reduce weight. High performance energy absorbing materials are needed for blunt impact protection for head, extremities, etc. Advanced transparent materials with improved scratch resistance and ultrafast transitioning are needed to improve ballistic eyewear. Mature technology solutions are desired that can satisfy this requirement for $1 million or less. Because additional funds may become available, priced options for additional funding are encouraged. Proposals for base amounts greater than $1M will be considered, but will be at a competitive disadvantage to lower dollar figure efforts. Technical POC: Virginia Halls, , virginia.a.halls.civ@mail.mil

36 Some New Directions Anything Cyber Wearables/Telemetry Sensors and Imagery Robotics Autonomous (all domains) Situational Awareness Portable Power

37 TALOS We are on our fifth prototype. Will we get everything we want? Probably not. That was never the intent, James Geurts of Special Operations Forces Acquisition, Technology and Logistics.

38 Operational Testing Know The Test Standards

39 For More Information Visit the website for the Office of the Under Secretary of Defense (Comptroller) at Download the Department of Defense s FY 2017 Budget Request

40 Contact Information Ron Houle President Pivot Step Consultants LLC th Street NW Suite 700 Washington, DC

41 (Re)defining Requirements?

42 Addendum: Completing The Audit Trail For 2017 FY 2017 Omnibus Budget Assembled on May 1 st FY 2017 Omnibus Budget Passed on May 5 th Sources for review of the DoD Appropriations for 2017 (Tables for: Budget Request, Final Bill, Explanation of Project Level Adjustments) Consolidated Appropriations Act of 2017 H.R. 244 (DoD is Division C, Department of Defense Appropriations Act, 2017) See Also--NGB LL Web Site See Also--Senate Report HINT: Examine RDT&E, Army For Growth Opportunities