JED - March 2013 - 24

washing t on
repor t
AOC/LEXINGTON INSTITUTE EXAMINE POTENTIAL IMPACT OF SEQUESTER ON EW PROGRAMS

The Journal of Electronic Defense | March 2013

24

Late last month the AOC presented a webcast given by Dr.
Daniel Gouré, Vice President, Lexington Institute, entitled –
“Man-made Disasters: The Impacts and Implications of Sequestration and a Year-long Continuing Resolution.”
Even culling out the known facts and data points from the
political theater surrounding the sequester can be challenging,
let alone trying to predict actual outcomes in a continuallyshifting budgetary and legislative paradigm, but Dr. Gouré did
his best to sort the reality from the rhetoric and to give a
reasoned and objective view of what the greatest factors and
concerns will be for the DOD overall going forward, as well as
drilling down to the specific potential impact of sequestration
and other factors on EW programs and objectives.
According to Gouré, the Pentagon will face a nominal 8.5
percent reduction in defense spending due to cuts imposed by
sequestration in FY2013 compared to spending levels proposed
in the 2013 DOD budget. However, Gouré points out that an additional problem comes from the fact that “we’re already five
months through that budget, with money already spent and,
because the President has exempted military personnel and
other areas from the cuts, the remaining DOD accounts, such
as shipbuilding, Operations and Maintenance (O&M) and military construction (MILCON) will necessarily be more heavily
targeted. As a result, some accounts in the DOD budget could
see reductions of as much as 23 percent.”
It is not sequestration cuts alone, however, that are threatening to dramatically impact defense spending and capabilities. The now regular practice of the Congress failing to
accomplish a conventional budgeting and appropriations process, and instead passing short-term, continuing spending
resolutions, actually creates potentially more serious and
long-lasting problems for Pentagon planners. For example, the latest continuing resolution provides funding
from October 1, 2012 to March 27, 2013, so if a new
appropriations bill is not passed by then, another continuing resolution will be required to keep the government operating. However, the funding provided by
such a (full-year) continuing resolution based on 2012
funding levels will not meet the President’s proposed
2013 budget spending.
In addition, unlike conventional budgeting, continuing resolutions come with significant additional
spending restrictions. For example, as Gouré notes,
they prohibit production rate increases, new

starts or new multiyear contracts. These restrictions are particularly onerous on DOD planning which depends on longterm, multi-year spending programs. In this case for example,
Gouré notes it means the FY2013 Navy shipbuilding plan cannot be carried out. “The restrictions apply to procurement,
RDT&E and MILCON accounts, and don’t just impact 2013
spending, but will have ripple effects of deep budget cuts
on defense programs in FY2014 and beyond. Most important,
is that the restrictions prevent the movement of funds from
surplus to deficit accounts.”
Combining the spending reductions of both sequestration
and a continuing resolution, Gouré says “the Pentagon is looking at an overall spending reduction of approximately $55 billion in FY2013, with a disproportionate impact on base O&M
budget accounts ($11 billion due to continuing resolution and
$18 billion due to sequestration).” Gouré also notes that higher
projected war costs could add an additional $5-6 million to
O&M, “so, better than half the total cuts in spending in 2013
will come in the O&M accounts.”
Using the Navy as one example, Gouré describes the potential near-term impact of sequestration together with a
continuing resolution on that Service (worst-case scenario).
“It would include a number of ‘new start’ prohibitions such
as deferring the start of MILCON projects ($675 million); construction of CVN 79 ($608 million); aircraft procurements ($150
million); R&D ($263 million); and construction cancellation of
one DDG-51 ($1.4 billion).”
Specific to EW, Gouré observes that the DOD requested
$4.95 billion for EO and EW programs for FY2013 ($300 million
more than FY2012), with $3.44 billion aimed at procurement
and $1.51 billion for RDT&E. Gouré says to “expect significant
hits in equipment maintenance as well as training.” He also
predicts cuts to major acquisition programs such as “reduced
buys of EA-18G Growlers for 2013, a reduction in counter IED
systems by the Army, as well as both ship and aircraft selfprotection systems. The Next Generation Jammer (NGJ) may
also be impacted with some suggestion that the next phase of
the program or downselect could be delayed. “
Summing up the situation, and noting that the caps on defense spending will remain in force out to 2021 unless changed
by Congress, Gouré says that “By and large there is just no way
that the DOD can continue with its existing strategy with
these cuts, and that means the DOD’s strategy will have to
change. “ – J. Haystead a


http://www.crows.org

JED - March 2013

Table of Contents for the Digital Edition of JED - March 2013

The View From Here
Conferences Calendar
Courses Calendar
From the President
The Monitor
Washington Report
World Report
Enabling Global Strike: EW Updates to the USAF’s Bomber Fleet
Technology Survey
EW 101
AOC News
2013 AOC Industry Member Guide
Index of Advertisers
JED Quick Look
JED - March 2013 - cover1
JED - March 2013 - cover2
JED - March 2013 - 3
JED - March 2013 - 4
JED - March 2013 - 5
JED - March 2013 - The View From Here
JED - March 2013 - 7
JED - March 2013 - Conferences Calendar
JED - March 2013 - 9
JED - March 2013 - Courses Calendar
JED - March 2013 - 11
JED - March 2013 - From the President
JED - March 2013 - 13
JED - March 2013 - 14
JED - March 2013 - The Monitor
JED - March 2013 - 16
JED - March 2013 - 17
JED - March 2013 - 18
JED - March 2013 - 19
JED - March 2013 - 20
JED - March 2013 - 21
JED - March 2013 - 22
JED - March 2013 - 23
JED - March 2013 - Washington Report
JED - March 2013 - 25
JED - March 2013 - World Report
JED - March 2013 - 27
JED - March 2013 - Enabling Global Strike: EW Updates to the USAF’s Bomber Fleet
JED - March 2013 - 29
JED - March 2013 - 30
JED - March 2013 - 31
JED - March 2013 - 32
JED - March 2013 - 33
JED - March 2013 - 34
JED - March 2013 - 35
JED - March 2013 - 36
JED - March 2013 - 37
JED - March 2013 - 38
JED - March 2013 - Technology Survey
JED - March 2013 - 40
JED - March 2013 - 41
JED - March 2013 - 42
JED - March 2013 - 43
JED - March 2013 - 44
JED - March 2013 - 45
JED - March 2013 - 46
JED - March 2013 - 47
JED - March 2013 - EW 101
JED - March 2013 - 49
JED - March 2013 - AOC News
JED - March 2013 - 51
JED - March 2013 - 52
JED - March 2013 - 2013 AOC Industry Member Guide
JED - March 2013 - 54
JED - March 2013 - 55
JED - March 2013 - 56
JED - March 2013 - 57
JED - March 2013 - 58
JED - March 2013 - 59
JED - March 2013 - 60
JED - March 2013 - 61
JED - March 2013 - 62
JED - March 2013 - 63
JED - March 2013 - 64
JED - March 2013 - 65
JED - March 2013 - 66
JED - March 2013 - 67
JED - March 2013 - 68
JED - March 2013 - 69
JED - March 2013 - 70
JED - March 2013 - 71
JED - March 2013 - 72
JED - March 2013 - 73
JED - March 2013 - 74
JED - March 2013 - 75
JED - March 2013 - 76
JED - March 2013 - 77
JED - March 2013 - 78
JED - March 2013 - 79
JED - March 2013 - Index of Advertisers
JED - March 2013 - 81
JED - March 2013 - JED Quick Look
JED - March 2013 - cover3
JED - March 2013 - cover4
https://www.nxtbook.com/naylor/JEDM/JEDM0318
https://www.nxtbook.com/naylor/JEDM/JEDM0218
https://www.nxtbook.com/naylor/JEDM/JEDM0118
https://www.nxtbook.com/naylor/JEDM/JEDM1217
https://www.nxtbook.com/naylor/JEDM/JEDM1117
https://www.nxtbook.com/naylor/JEDM/JEDM1017
https://www.nxtbook.com/naylor/JEDM/JEDM0917
https://www.nxtbook.com/naylor/JEDM/JEDM0817
https://www.nxtbook.com/naylor/JEDM/JEDM0717
https://www.nxtbook.com/naylor/JEDM/JEDM0617
https://www.nxtbook.com/naylor/JEDM/JEDM0517
https://www.nxtbook.com/naylor/JEDM/JEDM0417
https://www.nxtbook.com/naylor/JEDM/JEDM0317
https://www.nxtbook.com/naylor/JEDM/JEDM0217
https://www.nxtbook.com/naylor/JEDM/JEDM0117
https://www.nxtbook.com/naylor/JEDM/JEDM1216
https://www.nxtbook.com/naylor/JEDM/JEDM1116
https://www.nxtbook.com/naylor/JEDM/JEDM1016
https://www.nxtbook.com/naylor/JEDM/JEDM0916
https://www.nxtbook.com/naylor/JEDM/JEDM0816
https://www.nxtbook.com/naylor/JEDM/JEDM0716
https://www.nxtbook.com/naylor/JEDM/JEDM0616
https://www.nxtbook.com/naylor/JEDM/JEDM0516
https://www.nxtbook.com/naylor/JEDM/JEDM0416
https://www.nxtbook.com/naylor/JEDM/JEDM0316
https://www.nxtbook.com/naylor/JEDM/JEDM0216
https://www.nxtbook.com/naylor/JEDM/JEDM0116
https://www.nxtbook.com/naylor/JEDM/JEDM1215
https://www.nxtbook.com/naylor/JEDM/JEDM1115
https://www.nxtbook.com/naylor/JEDM/JEDM1015
https://www.nxtbook.com/naylor/JEDM/JEDM0915
https://www.nxtbook.com/naylor/JEDM/JEDM0815
https://www.nxtbook.com/naylor/JEDM/JEDM0715
https://www.nxtbook.com/naylor/JEDM/JEDM0615
https://www.nxtbook.com/naylor/JEDM/JEDM0515
https://www.nxtbook.com/naylor/JEDM/JEDM0415
https://www.nxtbook.com/naylor/JEDM/JEDM0315
https://www.nxtbook.com/naylor/JEDM/JEDM0215
https://www.nxtbook.com/naylor/JEDM/JEDM0115
https://www.nxtbook.com/naylor/JEDM/JEDM1214
https://www.nxtbook.com/naylor/JEDM/JEDM1114
https://www.nxtbook.com/naylor/JEDM/JEDM1014
https://www.nxtbook.com/naylor/JEDM/JEDM0914
https://www.nxtbook.com/naylor/JEDM/JEDM0814
https://www.nxtbook.com/naylor/JEDM/JEDM0714
https://www.nxtbook.com/naylor/JEDM/JEDM0614
https://www.nxtbook.com/naylor/JEDM/JEDM0514
https://www.nxtbook.com/naylor/JEDM/JEDM0414
https://www.nxtbook.com/naylor/JEDM/JEDM0314
https://www.nxtbook.com/naylor/JEDM/JEDM0214
https://www.nxtbook.com/naylor/JEDM/JEDM0114
https://www.nxtbook.com/naylor/JEDM/JEDM1213
https://www.nxtbook.com/naylor/JEDM/JEDM1113
https://www.nxtbook.com/naylor/JEDM/JEDM1013
https://www.nxtbook.com/naylor/JEDM/JEDM0913
https://www.nxtbook.com/naylor/JEDM/JEDM0813
https://www.nxtbook.com/naylor/JEDM/JEDM0713
https://www.nxtbook.com/naylor/JEDM/JEDM0613
https://www.nxtbook.com/naylor/JEDM/JEDM0513
https://www.nxtbook.com/naylor/JEDM/JEDM0413
https://www.nxtbook.com/naylor/JEDM/JEDM0313
https://www.nxtbook.com/nxtbooks/naylor/JEDM0213
https://www.nxtbook.com/nxtbooks/naylor/JEDM0113
https://www.nxtbook.com/nxtbooks/naylor/JEDM1212
https://www.nxtbook.com/nxtbooks/naylor/JEDM1112
https://www.nxtbook.com/nxtbooks/naylor/JEDM1012
https://www.nxtbook.com/nxtbooks/naylor/JEDM0912
https://www.nxtbook.com/nxtbooks/naylor/JEDM0812
https://www.nxtbook.com/nxtbooks/naylor/JEDM0712
https://www.nxtbook.com/nxtbooks/naylor/JEDM0612
https://www.nxtbook.com/nxtbooks/naylor/JEDM0512
https://www.nxtbook.com/nxtbooks/naylor/JEDM0412
https://www.nxtbook.com/nxtbooks/naylor/JEDM0312
https://www.nxtbook.com/nxtbooks/naylor/JEDM0212
https://www.nxtbook.com/nxtbooks/naylor/JEDM0112
https://www.nxtbook.com/nxtbooks/naylor/JEDM1211
https://www.nxtbook.com/nxtbooks/naylor/JEDM1111
https://www.nxtbook.com/nxtbooks/naylor/JEDM1011
https://www.nxtbook.com/nxtbooks/naylor/JEDM0911
https://www.nxtbook.com/nxtbooks/naylor/JEDM0811
https://www.nxtbook.com/nxtbooks/naylor/JEDM0711
https://www.nxtbook.com/nxtbooks/naylor/JEDM0611
https://www.nxtbook.com/nxtbooks/naylor/JEDM0511
https://www.nxtbook.com/nxtbooks/naylor/JEDM0411
https://www.nxtbook.com/nxtbooks/naylor/JEDM0311
https://www.nxtbook.com/nxtbooks/naylor/JEDM0211
https://www.nxtbook.com/nxtbooks/naylor/JEDM0111
https://www.nxtbook.com/nxtbooks/naylor/JEDM1210
https://www.nxtbook.com/nxtbooks/naylor/JEDM1110
https://www.nxtbook.com/nxtbooks/naylor/JEDM1010
https://www.nxtbook.com/nxtbooks/naylor/JEDM0910
https://www.nxtbook.com/nxtbooks/naylor/JEDM0810
https://www.nxtbook.com/nxtbooks/naylor/JEDM0710
https://www.nxtbook.com/nxtbooks/naylor/JEDM0610
https://www.nxtbook.com/nxtbooks/naylor/JEDM0510
https://www.nxtbook.com/nxtbooks/naylor/JEDM0410
https://www.nxtbook.com/nxtbooks/naylor/JEDM0310
https://www.nxtbook.com/nxtbooks/naylor/JEDM0210
https://www.nxtbook.com/nxtbooks/naylor/JEDM0110
https://www.nxtbook.com/nxtbooks/naylor/JEDM1209
https://www.nxtbook.com/nxtbooks/naylor/JEDM1109
https://www.nxtbook.com/nxtbooks/naylor/JEDM1009
https://www.nxtbook.com/nxtbooks/naylor/JEDM0909
https://www.nxtbook.com/nxtbooks/naylor/JEDM0809
https://www.nxtbook.com/nxtbooks/naylor/JEDM0709
https://www.nxtbook.com/nxtbooks/naylor/JEDM0609
https://www.nxtbook.com/nxtbooks/naylor/JEDM0509
https://www.nxtbook.com/nxtbooks/naylor/JEDM0409
https://www.nxtbook.com/nxtbooks/naylor/JEDM0309
https://www.nxtbook.com/nxtbooks/naylor/JEDM0209
https://www.nxtbook.com/nxtbooks/naylor/JEDM0109
https://www.nxtbook.com/nxtbooks/naylor/JEDM0908
https://www.nxtbookmedia.com