HOT TOPIC: Pentagon elated by 2018 appropriations. Can the good times last? Military space among the budget winners Only six months ago, everyone in the building was saying that lifting the Budget Control Act spending caps "would be extraordinarily difficult," recalled Deputy Defense Secretary Patrick Shanahan. "Pretty much the consensus was that it would not happen," he said last week at the Center for a New American Security. With Congress, always expect the unexpected. Lawmakers gave the Pentagon the largest year-to-year increase in base funding in 15 years. After President Trump signed the massive $1.3 trillion omnibus spending bill March 23, Pentagon officials have gone out of their way to thank Congress. With $589.5 billion in base funding and $65.2 billion for overseas operations, DoD in 2018 gets $61 billion more than in 2017 and $15 billion more than the president had requested for 2018. Shanahan said the extra money will be used to boost the military's combat readiness, to "de-risk" programs of record and accelerate modernization. There will be more focus on "results and accountability." Defense industry consultant James McAleese, of McAleese & Associates, suggested the Pentagon will have to show "visible improvements" in modernization because this level of growth in spending could be a one-time deal. "There is growing belief that a potential 2020-2021 budget deal will not be as favorable to DoD," McAleese wrote in an email to clients. Despite an initial focus on readiness, 2018 turned out to be the "year of modernization" with an "explosive 20+ percent spike" in investment accounts. Many space programs received a plus-up: Weather Systems Follow-on; Operationally Responsive Space; space situational awareness; counter-space systems; GPS 3 space segment; GPS-OCX, classified space, EELV launches, the next-generation missile-warning spacecraft to replace SBIRS, and the Wideband Global SATCOM satellites — with a surprising $600 million add-on for two WGS satellites the Pentagon did not request. Appropriators approved $3.5 billion for space procurement, a 33-percent increase, or nearly $1 billion over 2017 levels. Because the budget was passed six months into the fiscal year, there were concerns the Pentagon would have to rush to spend the money — and possibly make poorly planned spending decisions — before the fiscal year ends Sept. 30. But Congress made some allowances. The $3.5 billion space procurement funds "remain available for obligation until September 30, 2020." The military space sector is energized by the prospect of new programs, noted Bill Gattle, president of Harris Corp.'s Space and Intelligence Systems. He said the industry has not seen this kind of funding in nearly two decades. Only five to 10 years ago, there was talk about the need to beef up military space systems. But it was just rhetoric, Gattle told SpaceNews. "At this point it's moved from rhetoric to reality. It is impacting budgets, it is impacting our business." Wilson to Congress: We can modernize faster, but there are risks Appropriators' language in the omnibus bill reflects some underlying tension between the "go fast" philosophy embraced by DoD and military leaders, and skeptical lawmakers who would prefer a more cautious approach. But you can't have it both ways, cautioned Air Force Secretary Heather Wilson. There is some risk involved in shifting money from the production of current designs into the development of next-generation satellites. If Congress wants faster and innovative space programs, the tradeoff will be less predictability and possibly some failures. Wilson said the risks are justified. "We will explain to Congress that they call experiments 'experiments' for a reason." Some projects won't work, she said, "and you learn from them." |
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