American Society of Military Comptrollers

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Yesterday, the House passed its version of the FY2014 Defense Authorization bill, 315-108. The House bill authorizes $552.1 billion for the Department of Defense (DoD) and Department of Energy (DoE) funding for the nuclear weapons program.  The bill also authorizes $85.8 billion for Overseas Contingency Operations (OCO) in FY2014.

Final passage came after the House approved an amendment prohibiting the use of funds to release or transfer Yemen detainees from the U.S. military detention facility at Guantanamo Bay, Cuba. The full House rejected an amendment calling for closing the military detention facility at Guantanamo Bay by the end of 2014.

The House bill contains very strong provisions relating to sexual assault in the military including: requiring mandatory two-year sentences for servicemembers convicted by a military court of rape or sexual assault and removing from commanders the power to overturn such convictions. Servicemembers who commit rape or sexual assault would be dismissed or dishonorably discharged, under the bill.

The House bill provides military personnel with a 1.8 percent pay raise, almost twice the 1 percent raise requested in the president’s budget. The bill rejects DoD’s proposed increases to TRICARE Prime enrollment fees, pharmacy co-pays, and an enrollment fee for TRICARE for Life and TRICARE Standard.

The bill rejects administration proposals to achieve savings to meet constrained funding levels or reapply to other higher priority programs. The House bill prohibits DoD from planning or initiating another Base Realignment and Closure (BRAC) round in 2015, rejects the Navy’s plan to retire seven cruisers and two amphibious ships, and prevents the retirement of Global Hawk block 30 unmanned aircraft.

The House rejects a cap on individual salaries when calculating allowable private sector compensation on DoD contracts. Instead, it would exclude the salaries of some contractors’ top five earners from allowable expenses and freeze the baseline for current employee compensation. Future adjustments in the baseline would be made using the economic cost index.

The bill drew an immediate veto threat from the White House. A Statement of Administration (SAP) on the bill issued by the Office of Management and Budget (OMB) identified “serious concerns” about a number of provisions in the bill including the management of detainees at Guantanamo Bay. However, no specific concern drew a veto threat. Rather, the veto threat is framed in a very general way: “If the bill is presented to the President in its current form, the President’s senior advisors would recommend that the President veto the bill.”  

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Yesterday, the House Appropriations Committee (HAC) approved the FY2014 Department of Defense (DoD) Appropriations bill. The HAC bill provides $512.5 billion for the DoD base budget (excluding military construction), almost $3.4 billion below the president’s request.

The HAC bill also provides $85.8 billion for Overseas Contingency Operations (OCO) in FY2014.

The HAC bill funds a 1.8 percent military pay raise that would be authorized under the House Armed Services Committee’s (HASC) FY2014 Defense Authorization bill. The president’s budget requests a 1 percent pay raise for military personnel.

The bill proposes to fund the Defense Health Program (DHP) at $33.6 billion, $519 million above the request. Increases are primarily for medical research and medical facility upgrades.

Funding for Operations and Maintenance (O&M) programs in the bill would total $175 billion, $124 million below the request. The bill includes a $922 million increase for what the committee calls underfunded facility sustainment and modernization. The HAC also adds $536 million to cover a shortfall in fuel funding that was reported by the General Accountability Office (GAO).

The HAC bill would provide $98.4 billion for procurement programs, $750 million less than the request.  The bill provides $15 billion to build 8 new ships (including two SSN-774 Attack Submarines, one DDG-51, and four Littoral Combat Ships) and funding to buy 29 F-35 and 21 EA-18G aircraft. The HAC funds the purchase of 73 H-60 Blackhawk (8 more than the request) and the requested 28 CH-47 Chinook helicopters. The bills also provides funds for 18 MV-22 and three CV-22 Osprey aircraft. The HAC includes $1.5 billion for Guard and Reserve equipment, not requested by DoD, and $100 million to modernize the HMMWV (Humvee) vehicle for the Army Guard, also not requested by DOD.

Funding in the bill for research and development totals $66.4 billion, $1.1 billion below the president’s request. The bill funds requests to continue development of the replacement for the Ohio-class ballistic missile submarine, a new penetrating bomber, and the Next Generation Aerial Refueling Aircraft, and to develop the Ground Combat Vehicle. The bill makes significant funding cuts to development of the Next Generation Jammer (-$100 million) and to continued development of the F-35 aircraft (-$67 million).

The HAC approved bill is expected to go to the House floor before the July 4^th recess.

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Yesterday, the House Armed Services Committee (HASC) approved (56Y-5N) the FY2014 Defense Authorization Bill. The HASC bill authorizes $552 billion for the Department of Defense (DoD) and Department of Energy (DoE) funding for the nuclear weapons program.  The bill also authorizes $85.8 billion for Overseas Contingency Operations (OCO) in FY2014.

HASC chairman Rep Buck McKeon (R-CA) emphasized that the FY2014 Defense Authorization bill would be the 52nd consecutive Defense Authorization bill passed by the Congress.

According to a committee summary, the HASC bill provides military personnel with a 1.8 percent pay raise, almost twice the 1 percent raise requested in the president’s budget. The bill rejects DoD’s proposed increases to TRICARE Prime enrollment fees, pharmacy co-pays, and an enrollment fee for TRICARE for Life and TRICARE Standard. In the FY2013 Defense Authorization bill, Congress approved a small increase in the TRICARE pharmacy co-pay, but rejected most of DoD’s proposals to reduce TRICARE costs by increasing fees.

The bill reflects strong opposition in the Congress to another Base Realignment and Closure (BRAC) round. It would prohibit DoD from planning or initiating another BRAC round in 2015. In the FY2013 budget, DoD proposed a BRAC round for 2014, but backed away from that proposal in the face of strong congressional objections. At that time then DoD Secretary Leon Panetta said DoD was not abandoning the push for closing unneeded installations and would probably revive a BRAC request in the future.

The bill also rejects the Navy’s plan to retire seven cruisers and two amphibious ships, providing modernization funding to keep them in the fleet, and prevents the retirement of Global Hawk block 30 unmanned aircraft.

The committee does support much of the administration’s budget request for major weapons programs.  The bill supports requested funding for the nuclear aircraft carrier (CVN-78) and multiyear procurement of the E-2D Hawkeye and C-130J Super Hercules. The bill also supports funding for the KC-46 Tanker, the Long Range Bomber (LRS-B) and modernization of the C-130H aircraft for the Guard and Reserves.

The bill includes additional funding for National Guard and Reserve equipment, advance procurement for the F/A-18E/F and Amphibious Combat Vehicle, and the MQ-9 Reaper. The bill would also address what it considers unfunded Air Force requirements for F-15E and F-16 Engines.

The HASC bill would reject a cap on individual salaries when calculating allowable private sector compensation on DoD contracts. Instead, it would exclude the salaries of some contractors’ top five earners from allowable expenses and freeze the baseline for current employee compensation. Future adjustments in the baseline would be made using the economic cost index.

The full House is expected to begin consideration of the bill next week.

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Yesterday, the House Appropriations Defense Subcommittee (HAC-D) approved the FY2014 Department of Defense (DoD) Appropriations bill.  According to a committee press release, the HAC-D bill would provide $512.5 billion for the DoD base budget (excluding military construction), almost $3.4 billion below the president’s request.

The HAC-D bill would also provide $85.8 billion for Overseas Contingency Operations (OCO) in FY2014. The president originally included an $88.5 billion OCO placeholder in the FY2014 budget request. However, last month he sent Congress a budget amendment that replaced the placeholder with a detailed $79.4 billion OCO budget request.

In a statement that accompanied the committee release, HAC-D chairman Rep. Bill Young (R-FL) said the bill provides “the resources needed to maintain and modernize the best equipped and most capable military in the world,” without adversely affecting military readiness.

The Subcommittee action was held in a closed session so the full details are not yet available. But, the committee press release highlights some components of the subcommittee mark.

The HAC-D bill would fund a 1.8 percent military pay raise that would be authorized in the proposed FY2014 Defense Authorization bill, approved by the House Armed Services Committee (HASC). The president’s budget requests a 1 percent pay raise for military personnel.

The bill proposes to fund the Defense Health Program (DHP) at $33.6 billion, $519 million above the request. Increases are primarily for medical research and medical facility upgrades.

Funding in the HAC-D bill for Operations and Maintenance (O&M) programs would total $175 billion, -$124 million below the request. The bill includes a $922 million increase for facility sustainment and modernization and $536 million more to cover a shortfall in fuel funding.

The bill would provide $98.4 billion for procurement programs, $750 million less than the request.  Included in the bill’s approved procurement level are funds to build 8 new ships (including two SSN-774 Attack Submarines), buy 29 F-35 (Joint Strike Fighter) and 21 EA-18G aircraft, 73 H-60 Blackhawk and 37 MH-60S/R helicopters. The bill also proposes $1.5 billion for Guard and Reserve equipment, not requested by DoD.

Funding in the bill for research and development would be $66.4 billion, $1.1 billion below the president’s request.

To offset the HAC-D proposed increases, the bill includes cuts of $1 billion for what the subcommittee calls excess program funding, $437 million for a rejected civilian 1 percent civilian pay raise, and $2.1 billion in recessions of prior-year program funding.