To meet sequestration-mandated cuts, the U.S. Navy will spend about $10.7 billion less in fiscal 2013 than it had intended to spend and the service is projecting about $59 billion less in spending across the fiscal 2014 to fiscal 2018 future years defense plan (FYDP), according to the Navy’s proposed fiscal 2014 budget released this morning.
The proposed baseline funding for fiscal 2014 is $155.8 billion, compared with about $160 billion for fiscal 2013. The Navy projects the proposed baseline will rise again to $163.1 billion in fiscal 2015, $163.6 billion in fiscal 2016, $166.3 in fiscal 2017 and $169.8 billion in fiscal 2018.
Despite those cutbacks, there are nominal increases overall in the aircraft and ship accounts, with aircraft spending proposed at a level 3% higher than last year’s request, and ship spending 5% above last year’s request.
Of proposed procurement spending, about $17.9 billion is being set aside for aircraft, $14.3 billion for ships, $3.1 billion for weapons, $1.3 billion for the, $600 million for ammunition and $6.3 billion for other Navy procurement. In fiscal 2013, Navy procurement broke out this way: $17.3 billion for aircraft; $13.6 billion for ships; $3.1 billion for weapons; $2.6 billion for the Marines; and $1 billion for ammo and $6.3 billion for other Navy procurement.
While many of the big-name, high-profile programs are kept virtually intact for the proposed spending plan, the Navy still intends to cut. inactivate or recalibrate other programs, ships or services.
For example, the Navy is terminating its Organic Airborne and Surface Influence Sweep System (Oasis) program; inactivating two fast combat support ships (T-AOEs)—one in fiscal 2014 and one the following fiscal year; “rephasing” standard missile (SM)-6 buys to better align them with support-system deliveries; changing pricing for its Unmanned Carrier Launched Airborne Surveillance and Strike (Uclass); reducingquantities to meet mission needs; reducing Joint Strike Fighter (JSF) costs; and reducing Marine Corps ammunition.
The Navy says it has achieved further reductions by negotiating savings into/S helicopter contracts and starting a “fuel-savings tool” to reduce fuel consumption during ship transits.
Still, the effects of the budget squeeze are reflected throughout the proposed Navy spending plan in years to come. The plan calls for the Navy to drop from building 11 ships for about $13.8 billion in fiscal 2012 to 10 ships in fiscal 2013 for about $10.9 billion and then eight ships for about $10.8 billion in fiscal 2014.
The Navy expects to spend about $84.7 billion for 41 ships between fiscal 2014 and fiscal 2018.
The projected number of battle-force ships drops to 273 in fiscal 20114 compared to 283 in fiscal 2013 and 289 in fiscal 2012.
While the Navy spending for aircraft procurement has remained relatively flat—$17.6 billion in fiscal 2012, $17.1 billion in fiscal 2013 and $17.9 billion proposed for fiscal 2014—the number of aircraft being bought has dropped to 165 proposed aircraft in fiscal 2014 from 191 in fiscal 2013 and 212 in fiscal 2012.
Of the $155.8 billion baseline proposed for fiscal 2014, the largest amount is $48.5 billion for operations and maintenance, followed by $45.4 billion for personnel, $43.5 billion for procurement and $16 billion for research and development (R&D). That compares to the fiscal 2013 amounts of $49.9 billion for operations and maintenance, $44.2 billion for personnel, $44.5 billion for procurement and $16.9 billion for R&D.
For continuing, through-the-day coverage of the U.S. budget rollout, Aviation Week Intelligence Network subscribers should click here to visit our Fiscal 2014 budget digest page often, where the Aviation Week editorial team will post expert coverage and analysis.