WASHINGTON - The U.S. Navy's FY17 budget includes $14.5 billion for aircraft procurement, comprising $14.1 billion in the base budget and $393 million in the OCO account. The total is down from $17.9 billion enacted in FY16; the Navy had requested $16.3 billion for aircraft in FY16 before Congress increased funding during the markup process. The Navy expects its aircraft coffer to increase to $15.7 billion in FY18 and $17.7 billion in FY19, then decline to $15.9 billion in FY20 before rising again to $17.6 billion in FY21. The budget plan buys 94 aircraft in FY17 and a total of 476 aircraft through the FYDP, but the service also eliminates one of its 10 carrier air wings. The bulk of FY17 aircraft funding is for combat aircraft ($9.1 billion) and various aircraft modifications ($2.7 billion).

The Navy wants $890.7 million for four F-35Cs and $2 billion for 16 F-35Bs, up from 14 planned. Also, Navy and Marine Corps leaders have included four F-35Cs and two F-35Bs on their unfunded priorities lists. Another $1.2 billion is set aside in the request for F-35 research and development. Two F/A-18E/F Super Hornets are funded in FY17 through the OCO budget, and the service plans to buy another 14 aircraft in FY18 to help offset a fighter shortfall. Another 14 aircraft made it into the unfunded priorities list, providing incentive for Congress to bolster the FY17 buy. Lawmakers added five F/A-18E/Fs and seven EA-18G Growlers to the FY16 defense spending bill. The Navy continues to develop the Next Generation Jammer, which will be utilized on the Growler fleet. The service asked for $577.8 million in FY17, and plans to spend $2.2 billion through FY21. Procurement funding is slated to begin flowing in FY19, with the Navy saying it wants $256 million that year. A total of $1.3 billion is programmed for NGJ procurement through FY21.

The budget includes $1.9 billion for 11 P-8A aircraft, with another six aircraft in FY18 and 13 aircraft in FY19 completing the current target of 109 aircraft. The service had originally planned to buy a total of 117 P-8As before eight airframes were removed from the FY15 budget due to funding cuts. Those aircraft were included in the Navy's unfunded priorities list that year, but have not been included on subsequent wish lists. The Navy could still seek to extend production beyond 109 aircraft.

The Navy also wants $916.5 million for six E-2Ds, $128.9 million for two KC-130Js, and $348.6 million for the first two Marine Corps CH-53K heavy-lift helicopters. A total of 40 CH-53Ks are funded through FY21, at a cost of $5.4 billion. A Milestone C production decision is scheduled for FY17, and a total of 194 production aircraft are planned. Development under the CH-53-K program is winding down, but the Navy still wants $404.8 million for development in FY17 and a total of $1.2 billion through FY21. Development of the VH-92A presidential helicopter continues, with the Navy requesting $338.4 million in FY17 and $1.3 billion through FY21. The Navy plans to request $791.3 million in procurement funding for the VH-92A in FY19.

The FY17 request includes $1.3 billion for 16 MV-22s, down from 18 aircraft projected under the previous year's budget plan. The Navy wants to buy six aircraft per year between FY18 and FY20, rather than eight aircraft per year as under the previous plan, followed by 14 aircraft in FY21. The Navy will buy its first Carrier Onboard Delivery variants in FY18 to replace the C-2 Greyhounds. The Navy requests $759.8 million for 24 AH-1Z helicopters in FY17, down from 27 planned. FY17 represents the first year that the H-1 modernization program will procure only AH-1Zs, as UH-1Y procurement was completed in FY16. The final 78 AH-1Zs are funded between FY17 and FY19.

The Navy is seeking $409 million for two MQ-4C Triton unmanned aerial vehicles, plus $293 million for development. The service is buying one less Triton than planned, but Congress added an additional aircraft in the FY16 appropriations bill. The FY17 request includes $72.4 million for one MQ-8C Firescout UAV, down from two planned, but the service plans to buy two aircraft per year through the remainder of the FYDP. Eight MQ-21A Blackjack UAVs are funded in FY17. The Navy systems are funded through the OCO account, while the Marine Corps' procurement account pays for another four systems.

The biggest change to the Navy's unmanned portfolio is the restructuring of the Unmanned Carrier-Launched Airborne Surveillance and Strike System (UCLASS) into an aerial refueling tanker. Initially referred to as the Carrier-Based Aerial Refueling System (CBARS), the aircraft is now going by the name MQ-25 Stingray. There had been a lingering divide between the Navy and Congress over whether UCLASS should be an intelligence-gathering system as wanted by the Navy or an advanced penetrating strike aircraft as called for by many lawmakers. The Navy has gone in a third direction, and wants the Stingray to take some pressure off that portion of the F/A-18 fleet currently used as tankers. The Stingray could still be utilized for surveillance and strike operations, but the new primary mission focus means that stealth is no longer a driving factor for the program. The funding profile for the revamped program does not represent a dramatic reduction in scope, however. Development funding will ramp up to $349 million in FY18, and the service plans to spend $2.2 billion through the FYDP. The Navy had planned to spend about $2.5 billion on UCLASS development under the FY16 five-year plan. The service also expects to take advantage of funding already appropriated for UCLASS, including $300 million added to the FY16 appropriations bill by Congress.

Source: Forecast International - International Military Markets
Associated URL: http://www.forecastinternational.com
Author: S. McDougall, Defense Analyst