House panel slashes top Army programs

House authorizers slashed funding for two of the Army’s most coveted programs on Wednesday as the House began writing the 2009 Defense authorization bill.

The Army’s flagship Future Combat Systems program and the Armed Reconnaissance Helicopter (ARH) both took hits worth several hundred million dollars from members of the House Armed Services Air and Land Forces subcommittee.

{mosads}The Future Combat Systems (FCS) — envisioned as a network of manned and unmanned vehicles and aircraft connected by an impenetrable communications system — is being slashed by $200 million in 2009. Overall, the Army’s modernization program has been cut by nearly $1 billion over the last four years.

While the cut is a small part of the Pentagon’s $3.6 billion request for FCS, it is still a bit of a blow to lead contractors Boeing and SAIC . It could also set up a clash with the Senate, which fully funded the Pentagon’s request.

Instead, the subcommittee opted to approve funding for National Guard equipment, upgrades of the battle tank and other fighting vehicles as well as artillery. They also approved money for more Boeing C-17 cargo aircraft, Lockheed Martin ’s F-22 Raptor fighter jet and a second engine for the Joint Strike Fighter.

The House panel has been critical of the scope and development of FCS.

“These adjustments are based on the need to shift funding to higher-priority Army readiness needs and the fact that the FCS program, in addition to a history of delays and cost overruns, continues to operate in violation of many major Department of Defense acquisition policies,” said Rep. Neil Abercrombie (D-Hawaii), the subcommittee’s chairman.

Abercrombie said that the cut in FCS is “modest” and mainly reduces funding for technologies that won’t be ready until 2015 at the earliest.

Supporters of the FCS such as Rep. Todd Akin (R-Mo.) expressed concern over cuts to the Army’s only “comprehensive modernization program” in years, although he said he was glad the cuts were smaller than previous reductions. Boeing and SAIC headquartered their FCS program office in St. Louis, which is in Akin’s district.

The committee cut the ARH’s funding by $166 million, more than twice the $75 million cut approved by Senate appropriators. The Army requested $438.9 million for the ARH, which was designed to replace the decades-old OH-58 Kiowa Warrior.  

The ARH, which is produced in Fort Worth, Texas, has seen its production costs double, according to committee aides. One aide said  low-rate production by contractor Bell Textron would be delayed until next spring or early summer.

The higher costs and difficulties had put Bell Textron’s contract at risk. To try to save its contract, it built two helicopters at its own cost and invested money in a new Fort Worth facility. GOP Rep. Kay Granger’s district includes Fort Worth.

The Pentagon’s Defense Acquisition Board is expected to approve a restructuring of the Bell Textron contract and authorize the purchase of 10 helicopters at its July meeting. It is also expected to approve funding for advance production items.

One senior Army official criticized the House cut, which the official said would delay the Army’s ability to acquire 30 helicopters by 2010 to outfit the first ARH battalion. The Senate’s smaller cut, in contrast, would still allow the Army to purchase all 30 ARHs in that timeframe.

Overall, the panel approved $3.1 billion for the Army’s helicopters and upgrades.

Abercrombie’s panel recommended an additional $800 million for Army National Guard and Reserve equipment to satisfy a long list of unfunded requirements. The subcommittee also authorized $2.2 billion for upgrading General Dynamics ’ Abrams tank and Stryker vehicles as well as BAE Systems’ Bradley fighting vehicles.

The panel recommended $2.6 billion for the transportation operations and maintenance of Mine Resistant Ambush Protected Vehicles. The funding for the MRAPs is included as part of a $70 billion “bridge fund” for the wars in Iraq and Afghanistan.

The same bridge fund also includes $3.9 billion for 15 additional C-17 aircraft and $523 million for advance procurement for 20 F-22s.

The panel approved the Pentagon’s $3 billion request for 20 F-22 Raptors. The Pentagon, however, did not include additional funding that would ensure a production line for the jets in Marietta, Ga., will remain open past 2011.

Meanwhile, Senate authorizers included a provision that would allow the next president to either close down the production line or buy additional F-22s.

Over the years, the Air Force has insisted it needs 381 F-22s to maintain air superiority, but Pentagon leaders so far have green-lighted production for only 183 jets.

Abercrombie’s panel also recommended $523 million in funding for General Electric and Great Britain’s Rolls-Royce to build an engine for the Joint Strike Fighter, despite opposition from the Pentagon. It has only requested money for Pratt-Whitney to develop an engine, and opposes funding another contract to develop a second engine.

The panel also cut funding for the Air Force’s new tanker by $62 million because there is no need for advance procurement, since the Airbus aircraft is in production. The cut is not prejudicial to the tanker program since that money is not needed, aides said.

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