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National Defense > Blog > Posts > 2014 Budget: Nearly $14B Savings Projected From Program Terminations, Restructuring
2014 Budget: Nearly $14B Savings Projected From Program Terminations, Restructuring
By Sandra I. Erwin

A number of programs will be either terminated or restructured between fiscal years 2014 and 2018, according to the Obama administration's budget proposal for the Defense Department sent to Congress April 10.

Savings of $13.7 billion would come from the following programs:

• Precision tracking space system: $1.7 billion (termination)
• Next generation Aegis missile: $2.1 billion (restructure)
• Army Apache helicopter, new E model: $1.3 billion (delay)
• Army Light Utility Helicopter: $400 million (reduce procurement)
• Army mid-tier networking vehicular radio: $200 million (reduce requirement)
• Army unmanned aerial systems: $400 million (revised acquisition strategy)
• Redundant rotary-wing unmanned vertical takeoff and landing aircraft: $300 million (termination of development)
• Navy Standard Missile 6: $700 million (reduce procurement)
• Joint Strike Fighter support: $700 million (reduce cost growth)
• Marine Corps ammunition: $600 million (reduce requirements)
• Navy F/A-18 legacy Hornet upgrades: $600 million (reduce requirement)
• Space based surveillance follow-on satellite: $500 million (termination)
• Air Force C-17 cargo aircraft investment funds: $200 million (reduce excess)
• Special Operations Forces ground mobility vehicle: $200 million (reduce procurement)
• Special Operations Forces manned surveillance aircraft: $200 million (restructure)
• Other weapon terminations/reductions: $3.6 billion

Defense Secretary Chuck Hagel said these decisions are part of a broader effort to cut costs at the Defense Department in anticipation of budget cuts. During a Pentagon news conference April 10, he unveiled a $526.6 billion request for military spending in fiscal year 2014 that does not reflect future sequester cuts that are currently mandated by law. Hagel said the goal in this budget is to “maximize our use of resources.” As an example, he cited the Army’s new ground combat vehicle. “By revising the acquisition strategy by the Army's Ground Combat Vehicle program, the Department will save over $2 billion in development costs,” he said. “This budget also increases DoD's investments in its cyber workforce, continues to implement our rebalance to Asia, and makes new investments in the flexible platforms needed for the future.”

Photo Credit: Defense Dept., Air Force


Re: 2014 Budget: Nearly $14B Savings Projected From Program Terminations, Restructuring

DoD Budget remains volatile with insufficient data for Tier 1 and mid-tier companies to adequately forecast and plan.  It is imperative that congress and the administration get on the same page soon.
Zach Parker at 4/10/2013 5:48 PM

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