Chief of Naval Operations Adm. Jonathan Greenert has told Congress that the service might have to scale back the procurement of several major acquisition programs to offset possible funding losses for operations and maintenance.
In testimony this week to the armed services committees in the House and Senate, Greenert said the Navy could face an $8.6 billion shortfall in operations and maintenance for fiscal year 2013 under automatic cuts known as sequestration, with a continuing resolution (CR) governing spending, as well as other emerging costs.
To restore that funding, the Navy may have to look at reducing procurement of the Littoral Combat Ship (LCS), the F-35C Joint Strike Fighter variant, and the P-8A Poseidon aircraft, Greenert said.
“If Congress authorizes the Navy to transfer funds within the FY ’13 budget, we intend to restore our most critical operations and maintenance requirements,” Greenert said in his written opening remarks.
“This will be done by taking funding from investments such as perhaps the P-8A Poseidon, F-35C Lightning II and Littoral Combat Ship–resulting in fewer of these platforms being procured in FY ’13,” he added.
In its FY ’13 budget request last year, the Navy requested funding for four Littoral Combat Ships, two each from Lockheed Martin [LMT] and Austal USA, for 13 Boeing [BA]-built maritime surveillance P-8As, and for four Lockheed Martin F-35Cs.
Congress has yet to pass an appropriations bill for FY ’13 and is keeping the Pentagon running on a continuing resolution (CR), which keeps spending at about fiscal 2012 levels. The Navy has said the CR does not adequately fund operational requirements. FY ’13 ends Sept. 30.
Further, sequestration is scheduled to kick-in March 1 and, unless averted by Congress, would create at least 8 percent in additional reductions across the Navy’s accounts, Greenert said.