Unless budget relief from Congress is forthcoming, Chief of Naval Operations Adm. Jonathan Greenert said yesterday the Navy will have to cut its ship and aircraft procurement plans in fiscal 2014, a move that would affect Littoral Combat Ships, destroyers, submarines and F-35 fighters.
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| The budget squeeze could cost the Navy a Littoral Combat Ship in 2014, Chief of Naval Operations Adm. Jonathan Greenert said Thursday. Photo by Lockheed Martin |
Greenert said that with sequestration remaining in place, the Navy may be forced to eliminate one of the four LCSs planned for construction in fiscal 2014, which begins Oct. 1, as well as an Afloat Forward Staging Base, an Arleigh Burke-class (DDG-51) destroyer, and a Virginia-class (SSN-774) sub.
“These will be challenges, these will be issues we will be working with the Congress” to resolve, Greenert said, adding that Navy is operating under the assumption that sequestration, which kicked in March 1, will remain in effect.
The Navy was able to manage the impact on shipbuilding in fiscal 2013 by drawing from unused money in previous year accounts, but it won’t have that option in 2014, Greenert said during a speech at the American Enterprise Institute. He said the Navy faces $14 billion in cuts in fiscal 2014.
Greenert said the Navy will be seeking approval from Congress to borrow funds from other accounts, or reprogram, to curtail the impact on shipbuilding and aircraft orders.
If sequestration persists into next year, the Navy will also have to scale back production plans for about 25 aircraft, Greenert said. That would include F-35 Joint Strike Fighters, P-8 Poseidon maritime patrol aircraft and helicopters and other aircraft.
The cuts would have a broad impact on the defense industry, including on Lockheed Martin [LMT], General Dynamics [GD], Austal USA, and Boeing [BA].
Greenert said the Navy will also have to cancel up 34 ship maintenance availabilities, and 190 aircraft maintenance depots.