19 May 2009

Under Close Scrutiny from Gates, Service Wish Lists Get Smaller

May 18, 2009 -- The Air Force and Marine Corps have dramatically scaled back the size and scope of their new-equipment wish lists, suggesting that Defense Secretary Robert Gates is bringing the service chiefs to heel in curbing an annual practice through which the top brass have indirectly sought billions of dollars for systems not funded in Pentagon budget requests.

The Air Force today sent Congress a $1.9 billion list of unfunded requirements for fiscal year 2010 -- a list considerably smaller than the services' FY-09 compilation of $18.8 billion -- which features items urgently sought by combatant commanders, such as $180 million for the Battlefield Airborne Communications Node.

Likewise, the Marine Corps, which last year compiled more than $3 billion in “unfunded requirements” -- including $1.7 billion for a new amphibious assault warship -- today sent lawmakers a request that totals just $188 million for FY-10, including $117 million for new equipment.

InsideDefense.com obtained copies of the Air Force and Marine Corps lists. The Army and Navy are due to deliver their unfunded requirements lists to Rep. John McHugh (R-NY), ranking member of the House Armed Services Committee, who requested them last month.

Since the mid-1990s, when Congress began asking service chiefs to provide such lists, the service chiefs have prepared them without input from their political masters in the Office of the Secretary of Defense or the White House Office of Management and Budget. The cumulative total of equipment the services include in the list has grown dramatically from $7 billion in FY-01 to $35 billion in FY-08. Last year's lists -- for FY-09 -- added up to more than $30 billion.

This year, however, Gates is taking a new interest in these lists. Last month, he became the first defense secretary to assert a statutory prerogative to review the lists before the service chiefs sent them to Congress, as InsideDefense.com first reported May 6.

“I decided to actually ensure that everybody followed the statute,” Gates told the Senate Armed Services Committee May 15. “I have no problem with them [service chiefs] putting together a list of unfundeds. But the law requires them to inform me, about that list, before they send it up here.”

Gates met with the service chiefs on Friday to hear exactly what they deemed “unfunded” beyond items included in the $435 billion FY-10 annual budget and accompanying $130 billion request for war funding.

The Marines list $100.4 million in procurement needs, including $10.5 million for 146 digital data link upgrade kits to improve communication with unmanned aerial vehicles; $28.9 million for 352 tactical truck trailers; and $58 million for tactical engineering vehicles. In addition, the Marine Corps could use an additional $17 million for a series of enhancements to the MV-22 Osprey, according to its list.

The Air Force has 20 items on its FY-10 wish list. Big-ticket items include $180.2 million for two commercial business jets that could carry airborne data link translators and $158 million for two Lockheed Martin HC-130J rescue tankers.

“These requirements provide direct support to our combatant commanders for the joint fight, accelerate programs to achieve national security goals, or identify programatic disconnects that resulted from the rapid close of the FY-10” budget revision, Gen. Norton Schwartz, Air Force chief of staff, wrote in a letter to McHugh dated today that accompanies the list.

“Among the 20 items there are a few so mission-critical to the combatant commanders that we would provide offsets to ensure their funding, such as Battlefield Airborne Communications Node,” Norton added. “These urgent operational needs are our highest priorities.”

Schwartz last week said the Bombardier BD-700 jets equipped with the Battlefield Airborne Communications Node (BACN) have become a top urgent operational need for U.S. Central Command.

The tankers are needed for personnel recovery in the European and African theaters and “will help the Air Force meet the increasing demands for CSAR assets” from the combatant commanders, according to the document.

Another $120 million has been requested for three Sikorsky HH-60G combat search-and-rescue helicopters to replace aircraft lost in theater. The Air Force's base budget requested funding for two Pave Low choppers.

In addition, $169.5 million has been eyed for 11 high-priority military construction projects. The Air Force has substantially decreased its military construction budget in recent years to fund aircraft recapitalization projects.

Another $143 million has been requested for “F-35 procurement shortfalls.”

If approved, the money would “complete F-35 funding requirements to procure spares and support equipment for 10 programmed aircraft in FY-10,” the document states.

The service also has asked for $103.4 million for two Goodrich-built Operationally Responsive Space satellites' development and launch. Funding the satellites will mitigate a “CENTCOM ISR capability shortfall projected in FY-10,” according to the document.

The Air Force wants $50 million to buy five Active Electronically Scanned Array radars for F-15C fighter jets “to capitalize on previous development funding and continue outfitting the F-15C fleet with enhanced radar” and an electronic warfare capability, according to the document.

Another $44 million has been eyed for the procurement of 17 AIM-9X Sidewinder and 33 AIM-120D Advanced Medium-Range Air-to-Air missiles. Both weapons are built by Raytheon. -- Jason Sherman and Marcus Weisgerber