Early Thursday morning (1:00 a.m.), House unveiled the 2012 Omnibus Appropriations Bill. This includes HAC/SAC compromise reached on the 9 outstanding 2012 Appropriations Bills, ranging from Defense; to DHS; to State Department. I have included summary of the main impacts from the 2012 Defense Appropriations Bill. Agreement appears to have been reached late last night between House and Senate, to proceed with Omnibus Appropriations Bill, despite previous Payroll Tax extension dispute.
McAleese cautions that the Omnibus/Defense Appropriations Bill does not include the detailed Conference Report, showing Program-specific 2012 final Base/OCO funding. The Bill itself only shows top-line funding for each major RDT&E, Procurement, or O&M Account, (e.g., Army RDT&E; Army Aircraft Procurement; Other Procurement Army; etc.).
I. Overall DoD Impact:
- Final compromise added +$5B plus-up to 2012 DoD Base, which was partially-offset by a -$2.5B cut to 2012 OCO. ($539B 2012 DoD Base Request, but SAC-D cut -$25B under Budget Control Act, down to $513B Base). Final 2012 DoD Base is now $518B, with additional $115B OCO. (Excludes separately-funded MilCon).
- Of +$5B plus-up, +$1.4B (27%) was added back to Base RDT&E. Final is $73B Base/OCO.
- Of +$5B plus-up, +$2.5B (50%) was added back to Base Procurement. (However, -$1.9B of total -$2.5B cut to the OCO, came from OCO Procurement.). Majority of ≈$2.5B plus-up to Base Procurement went to “Other Procurement Army” (OPA), (which principally funds Communications & Electronics; and secondarily Wheeled Tactical Vehicles, and “Other Support Equipment”).
- Lastly, Base O&M was increased by +$600M (+12%). Final is $163B O&M Base. (Be alert that SAC-D had previously cut -$8B from Base O&M Request; had then cut -$5.5B in low-priority OCO O&M, and had transferred ≈$7B of that -$8B Base O&M cut into OCO O&M Accounts. This minimized actual O&M impact, despite appearance of large -$8B O&M Base cut.).
II. Army Impact:
- W&TCV: $2.1B Base/OCO (+$200M (+11%) over $1.9B Base/OCO Request). (Abrams).
- Other Procurement Army: Total -$1.9B cut significant, but priority Programs intact. (Comm. & Elec.; Trucks; Support Equipment). $9.2B Base/OCO (-$1.9B (-17%) from $11.1B Base/OCO Request; but +$400M (+5%) increase from SAC-D mark). (Presumably cuts to: JTRS GMR cancellation; JTRS ManPack delay; WIN-T Incr. 2 delay; HMMWV Recap Reprogramming/OBE; ABCTM cancellation; possibly Ground Soldier System delay).
- O&M: $75.8B Base/OCO (-$3.2B (-4%) from $79B Base/OCO Request).
- RDT&E: $8.7B Base/OCO (-$1B (-10%) from $9.7B Base/OCO Request). (Presumably cuts to: WIN-T Incr. 3; possible CIRCM delay; FCS Sys. Eng.; UGV; GCV; possibly AAS ahead-of-need).
- Army Procurement overall: $21.6B Base/OCO (-$2.8B (-11%) from $24.4B Base/OCO Request).
- Army Aircraft Procurement: $6.5B Base/OCO (-$1B (-13%) from $7.5B Base/OCO Request). (Presumably cuts to: EMARSS cancellation; OH-58 Upgrade/WRA; modest slowing of Gray Eagle production).
III. Navy/USMC Impact:
- RDT&E: $17.9B Base/OCO (-$200M (-1%) from $18.1B Base/OCO Request). (Potentially: VXX; UCLASS; and possibly NGJ).
- Navy Procurement overall: $46.1B Base/OCO (-$1.9B (-4%) from $48B Base/OCO Request).
- Shipbuilding (SCN): $14.9B Base (Fully-funded).
- USMC: $2.6B Base/OCO (-$100M (-4%) from $2.7B Request).
- Navy O&M: $45.8B Base/OCO (-$600M (-1%) from $46.4B Base/OCO Request).
- USMC O&M: $9.4B Base/OCO (-$200M (-2%) from $9.6B Base/OCO Request).
- Aircraft Procurement (APN): Cuts proportionate, but APN historically protected or plussed-up. $18.2B Base/OCO (-$1.1B (-6%) from $19.3B Base/OCO Request). (Partially F-35 flat-lining).
- Weapons: $3.2B Base/OCO (-$200M (-6%) from $3.4B Base/OCO Request). (Presumably, AMRAAM and Standard Missile).
- Navy Other Procurement: (Ship Support Equipment; Comm. & Elec.). $6.2B Base/OCO (-$346M (-5%) from $6.6B Base/OCO Request).
IV. USAF Impact:
- RDT&E: $26.8B Base/OCO (-$1.1B (-4%) from $27.8B Base/OCO Request). (Presumably cuts to: DWSS Termination/Re-compete; HH-60 Recap; F-22 Upgrades; KC-46A excess-to-need).
- USAF Procurement overall: $41.4B Base/OCO (-$700M (-2%) from $42.1B Base/OCO Request).
- Aircraft Procurement: $14.1B Base/OCO (-$528M (-3%) from $14.6B Base/OCO Request). (Presumably, slowing of F-35 CTOL; LAARS; CV-22 WRA).
- Missile Procurement: $6.1B Base/OCO (Fully-funded).
- Other Procurement: (Comm. & Elec.; bulk of Classified). $20.5B Base/OCO (-$300M (-1%) from $20.8B Base/OCO Request). (Presumably AFNET; JTRS AMF delay).
- USAF O&M: $45.9B Base/OCO (-$1B (-2%) from $46.9B Base/OCO Request).
V. Residual Defense Agencies (“DoD-wide”) Impact:
- RDT&E: $19.4B Base/OCO (-$798M (-4%) from $20.2B Base/OCO Request).
- DoD-wide O&M: $39.4B Base/OCO (-$800M (-2%) from $40.2B Base/OCO Request).
- Defense Production Act: $170M Base (+$150M (+750%) over $20M Base Request).
- National Guard/Reserve Equipment: $1B OCO (+$1B over $0 OCO Request).
- MRAP: $2.6B OCO (-$600M (-19%) from $3.2B OCO Request).
- “DoD-wide” Procurement overall: $5.3B Base/OCO (-$564M (-10%) from $5.9B Base/OCO Request).