Industrial Base Implications of the

FY13 Defense Budget

Byron Callan

Director,

Capital Alpha Partners, LLC

David J. Berteau

Director,

CSIS International Security

Program

Brett Lambert

Deputy Assistant Secretary of Defense,

Manufacturing and Industrial Base

Policy

Department of Defense Budget, 2001-2017

$403 $434

$467 $466 $475 $472 $483

$521 $551 $555 $547 $541

$525 $523 $524 $522 $522

$18

$22 $93 $112 $90 $133 $186

$203 $156 $171 $164 $117

$89

$0

$100

$200

$300

$400

$500

$600

$700

$800

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Co

nst

ant

20

13

$ b

illio

ns

? ? ? ?

Source: Department of Defense, FY 2013 Budget Request Overview Book, Office of the Under Secretary of Defense (Comptroller), February 2012

FY 2001 – 2011 Actual

FY 2012

Enacted

FY 2013 Request

Note: Numbers may not add due to rounding

$429

$456

$559 $579 $569

$615

$673

$725 $715 $727 $711

$659

$614

$523 $524 $522 $522

Base Budget Authority

Source: Department of Defense, FY 2013 Budget Request Overview Book, Office of the Under Secretary of Defense (Comptroller), February 2012

Note: Numbers may not add due to rounding

$0

$100

$200

$300

$400

$500

$600

-4.7%

+5.9%

-5.5%

-2.8%

-14.9%

$69.4

$98.8

$208.8

$135.1

$15.7

$71.3

$104.5

$197.2

$141.8

$13.3

FY 2012 Enacted FY 2013 Request

Military Personnel

O&M

Procurement

RDT&E

Other

Total Budget Authority (Base + OCO)

Source: Department of Defense, FY 2013 Budget Request Overview Book, Office of the Under Secretary of Defense (Comptroller), February 2012

Note: Numbers may not add due to rounding $0

$100

$200

$300

$400

$500

$600

$700

-2.6%

-4%

-10%

-3.1%

-14.1%

$69.7

$108.5

$272.7

$149.2

FY 2012 Enacted FY 2013 Request

$71.9

$120.6

$284.0

$153.1

Military Personnel

O&M

Procurement

RDT&E

Other $16.1 $13.8

Share of Budget vs. Share of Cuts

Source: Department of Defense, FY 2013 Budget Request Overview Book, Office of the Under Secretary of Defense (Comptroller), February 2012

Note: Numbers may not add due to rounding

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Other

Military

Personnel

O&M

Procurement

RDT&E 11%

18%

44%

24%

2%

7%

38%

35%

12%

7%

$0

$100

$200

$300

$400

$500

$600

$700

Defense-Wide

Navy

Army

Air Force

-4.8%

-1.4%

-8.3%

-4.5% $154.3

$184.6

$170.1

$104.8

FY 2012 Enacted FY 2013 Request

$161.7

$201.4

$172.5

$110.1

Source: Department of Defense, FY 2013 Budget Request Overview Book, Office of the Under Secretary of Defense (Comptroller), February 2012

Note: Numbers may not add due to rounding

Total Budget Authority (Base + OCO)

Share of Budget vs. Share of Cuts

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

25%

30%

28%

17%

Source: Department of Defense, FY 2013 Budget Request Overview Book, Office of the Under Secretary of Defense (Comptroller), February 2012

Note: Numbers may not add due to rounding

23%

53%

7%

17% Defense-Wide

Navy

Army

Air Force

Cuts, Consolidations and Savings

Terminations

Global Hawk Block 30

Defense Weather Satellite System

C-27J Joint Cargo Aircraft

HMMWV Recapitalization

C-130 AMP

Cruiser Modernization Program

Joint Air-to-Ground Missile

Sea-Based X-Band Radar

Light Attack and Armed Reconnaissance Aircraft

Joint High Speed Vessel

Program Restructuring

F-35 Joint Strike Fighter

SSBN(X) Ohio-class Replacement

Littoral Combat Ship

V-22 Osprey

P-8A Poseidon

CVN-79 Ford-class Aircraft Carrier

JLENS (Cruise missile defense sensor)

Ground Combat Vehicle

Family of Medium Tactical Vehicles

Retirements

KC-135 Tanker

C-130J Super Hercules

C-27 Spartan

C-5A Galaxy

RC-26 Metroliner

Landing Ship, Dock (LSD)

CG Cruisers

Source: Office of Management and Budget, FY 2013 Budget of the U.S. Government: Cuts, Consolidations and Savings.

Industrial Base Implications of the

FY13 Defense Budget

Byron Callan

Director,

Capital Alpha Partners, LLC

David J. Berteau

Director,

CSIS International Security

Program

Brett Lambert

Deputy Assistant Secretary of Defense,

Manufacturing and Industrial Base

Policy