The Insider

For a sneak peek at how Republicans on the House Armed Services Committee may approach key issues like defense spending, missile defense, major weapons programs and building security by partnering with allies and friendly nations, look no further than the report accompanying the panel's FY-10 National Defense Authorization Bill.

Rep. Howard “Buck” McKeon (R-CA),  ranking member and now a frontrunner to take over as chairman, was one of two dozen GOP members on the committee last fall who collectively spelled out out issues they would handle differently if in control of the authorization committee.

Their perspective is spelled out in a six-page memo included in the “additional views” section of the report accompanying the FY-10 authorization bill (pages 669 to 674). That authorization bill largely endorsed major changes to DOD's modernization accounts -- including major weapon system terminations -- proposed by Defense Robert Gates in April 2009.

On topline defense spending:

We are concerned that the President’s Budget did not adequately increase defense spending. After taking into account the migration into the base budget of items previously funded in the supplemental the net effect is less than 2% real growth. As a result, the committee had limited headroom in which to address many of the programmatic cuts that accompanied Secretary Gates’ so-called ‘‘reform budget.’’ While the committee included a number of measures in the mark that redress some of the shortcomings found in the Administration’s request, including adopting an amendment which authorized much of the Army and Marine Corps Unfunded Requirements, we question some of the spending priorities of the committee.

Most notably, this committee provides for an additional $402.6 million above the President’s Budget request for the National Nuclear Security Administration’s (NNSA’s) defense nuclear nonproliferation program which was already increased from the previous year’s request. We are concerned that this funding was provided without a formal request by the Secretary of Energy or the Administrator of NNSA and without an integrated, interagency plan for securing nuclear materials. We will carefully monitor NNSA’s execution of these funds in the coming year.

On missile defense:

We believe that such additional funding could have been used to address other priorities such as missile defense. Congress, and particularly the Armed Services Committees in both chambers, has the unmistakable obligation to ensure that the Department of Defense develops and deploys defensive capabilities that protect the American people, our forward-deployed forces, and our allies. This includes promising programs in the area of missile defense.

On the same day in which President Obama acknowledged that a nuclear-armed North Korea posed a ‘‘grave threat’’ to the world, the committee chose to sustain the Administration’s $1.2 billion cut to missile defense. In a year where Iran and North Korea have demonstrated the capability and intent to pursue long-range ballistic missiles and nuclear weapon programs, and a track record for widespread proliferation—elements of a genuine national security threat—the committee endorsed reductions to capabilities that would provide a comprehensive missile defense system to protect the U.S. homeland, our forward-deployed troops, and allies.

The committee sustained the Administration’s 35% reduction to the Ground-based Midcourse Defense program. This national missile defense system, located in Alaska and California, is designed to protect the U.S. homeland from long-range ballistic missiles fired either in anger or by accident. We are deeply disappointed that the committee rejected an amendment to restore funding to the program. The amendment provided a modest increase of funds to complete a partially constructed missile interceptor field in Alaska where all the equipment had already been purchased. It sought to pay for this program with funds set aside to dismantle North Korea’s nuclear program. After witnessing Kim Jong Il walk away from the Six-Party talks, kick out U.S. and International Atomic Energy Agency inspectors, and vow to be recognized as a nuclear weapons state, it is unrealistic to expect that there will be any dismantlement of North Korea’s nuclear program within the fiscal year. We believe that those resources could have been better spent on real, near-term capabilities to protect the United States. Should progress be made in negotiations with North Korea such that dismantling their nuclear complex becomes possible, funds could be reprogrammed at that time.

It is equally troubling that the committee did not enact amendments to reverse the Administration’s decision to reduce and terminate pioneering missile defense programs like the Airborne Laser, Kinetic Energy Interceptor, Multiple Kill Vehicle, and Space Tracking and Surveillance System, or restore their funding. The Department of Defense has yet to deliver to the committee any analysis or new requirements to justify these sweeping decisions. Furthermore, we cannot reconcile the simple fact that as the missile threat is increasing --substantiated by our own intelligence agencies --funding for our missile defense capabilities is decreasing.

The committee supported increased funding for theater missile defenses, which are important capabilities in protecting our forward-deployed troops and allies from shorter-range missiles. However, with a net $1.2 billion cut, we have been forced to trade national missile defense for more theater missile defense. Setting up such a false choice between the defense of our homeland and defense of our forward-deployed troops and allies is neither smart nor sound policy. Both are necessary and both could have been adequately funded without such deep cuts.

On working with allies:

We commend the inclusion of provisions taken from the bipartisan NATO FIRST bill that was introduced earlier in the year by Representatives Turner and Marshall. A strong commitment to transatlantic security is necessary as the Administration engages in a reset policy with Russia. We regret that the committee did not adopt the Administration’s proposals relating to building the capacity of partners in order to increase coalition partner nation participation in Afghanistan. These proposals are necessary to be able to quickly implement the new Afghanistan policy. Without these authorities we miss an opportunity to reduce the burden on our deployed forces in Afghanistan.

We are pleased the committee endorsed an amendment that sought to increase support for a European missile defense system proposed to be located in the Czech Republic and Poland. As the amendment noted, ‘‘Missile defense promotes the collective security of the United States and NATO and improves linkages among member nations of NATO by defending all members of NATO against the full range of missile threats.’’ Though the committee rejected authorizing additional resources, it did support the creation of a framework to evaluate alternatives, should they be pursued by the Administration. However, we would note that based on independent analysis requested by the committee, we have seen no alternative that provides a more cost-effective and operationally available solution to protect the U.S. and Europe than the current proposal.

We appreciate the Chairman’s commitment to work with us to address an amendment that would establish binding legislation to ensure that any treaty or agreement with Russia that seeks bilateral reductions in our strategic nuclear forces does not include limitations on U.S. missile defenses, space, or advanced conventional weapons capabilities. These important conventional capabilities continue to remain vital to our military forces and the defense of the American people and our allies, and are not collateral for U.S. negotiators to trade away to persuade Russia to reduce its nuclear forces.

On the Navy's Littoral Combat Ship:

We had concerns about the Littoral Combat Ship (LCS) program and the relief that was being provided to the cost cap in the subcommittee mark. Current law caps LCS end costs at $460 million per vessel, beginning in fiscal year 2010, with the fifth and follow-on ships. The committee has now raised the cap or delayed implementation of the cap for three years in a row. This program was proposed to Congress on the basis of affordability, but the price tag of the latest ships is approximately 250% greater than the original price estimate.

We have increased congressional oversight of this program; but, particularly in light of the passage of the Weapon System Acquisition Reform Act of 2009 in May, the first legislative act of this committee should not be approving a unilateral increase to the end cost of this program. This is especially true since the Navy has not officially requested a change to the current legislation. Therefore, we were pleased that the committee agreed to support an amendment to strengthen section 121, regarding the LCS cost cap. The bipartisan amendment imposes additional requirements before any changes to the cost cap may go into effect. This amendment is intended to send the signal that this committee is serious about controlling costs, does not adjust cost caps lightly, and is determined that the Navy make a knowledge-based decision prior to procuring additional Flight 0 LCS vessels.

On "transparency and defense oversight":

Finally, we believe that to carry out our constitutional mandate to raise and support the armed forces, the committee expects a transparent and open relationship with the Department of Defense where the independent views of the Service Chiefs are represented to the Congress by the civilian senior leadership in a timely manner.

That is why we are disappointed that the committee did not fully adopt an amendment that would have provided a statutory framework for the Service Chiefs to provide their independent view to the Congress.

The House Republicans' policy agenda that was rolled out in September, called the "Pledge to America," states that the GOP will "fully fund missile defense" to protect the homeland and support U.S. allies. No specifics are given, but Republican members of the House Armed Services Committee were very upset when the Obama administration cut $1.2 billion from missile defense funding in the fiscal year 2010 defense budget.

As part of that move, the administration eliminated the Kinetic Energy Interceptor program and the Multiple Kill Vehicle program, reduced the scope of the Airborne Laser program (renaming it the Airborne Laser Testbed and shifting it from the Missile Defense Agency to the office of the director of defense research and engineering) and committed to fielding 30 ground-based interceptors in Alaska and California. The previous Bush administration wanted 44 interceptors.

Riding a wave of Tea Party anger over government spending, among other issues, the newly elected House GOP majority may have to explain to its base why missile defense should be given any more money if you consider the argument laid out by Defense Secretary Robert Gates. During a May 13, 2009 appearance before the House Armed Services Committee, Gates defended the administration's moves this way:

In terms of your larger point, I would say that the security of the American people and the efficacy of missile defense are not enhanced by continuing to put money into programs that, in terms of their operational concept, are fatally flawed or research programs that are essentially sinkholes for taxpayer dollars.

Gates walked the committee through each program and gave his reasons for why each should be cut. The KEI effort was, at the time of Gates' testimony, in its 14th year of development even though the program plan called for five years. Gates said KEI was "a program that wasn't going anywhere." In its justification material sent to Congress with the FY-10 budget, MDA laid out several technical problems affecting the KEI program. "Even if such technical problems could be solved without excessive cost and schedule implications, we have become concerned about the cost-effectiveness of the KEI interceptor, which is currently estimated at $75 million per unit," the agency said.

Gates said the Multiple Kill Vehicle was aimed at a stronger missile threat, such as from China or Russia, and not the threat posed by rogue states like Korea and Iran. MKV was "incompatible" with the policies of both the Obama and Bush administrations in that sense, Gates said.

The operational concept behind the ABL does not hold up, Gates pointed out. Joint Chiefs of Staff Chairman Adm. Mike Mullen, testifying with Gates, told the committee he felt the ABL "has been a flawed concept for years." Gates pointed out that if the target were Iran, the concept calls for ABL to "orbit almost entirely within the borders of Iran. This is probably a little problematic."

Eight days after Gates and Mullen spoke to the committee, MDA Director Lt. Gen. Patrick O'Reilly explained why 30 ground-based interceptors provided the protection needed against a possible North Korean missile attack. O'Reilly explained that there was never any analysis done to justify the 44-interceptor limit and the threat projections done in 2002 that supported the 44 number "were off by a factor of 10 to 20 in that regard."

Through the Freedom of Information Act, Inside Missile Defense obtained a May 2010 report, marked "for official use only," that contains the following threat assessment:

While both Iran and North Korea have demonstrated technologies that are directly applicable to the development of ICBMs, neither has yet to show any evidence of developing an ICBM-class warhead.

The Joint Strike Fighter alternate engine program is not on the ballot, but its future may hang in the balance of today's midterm election results. If predictions of a Republican surge and takeover of the House come to pass, the political exigencies of the moment -- in particular, pressure to reduce federal spending -- could make it difficult for lawmakers who for the last five years have added money to the budget for the F136 program in the name of sound public policy to continue to do so.

Should control of the House flip, it will likely be many weeks before Congress sorts out how it will proceed with stalled fiscal year 2011 appropriations and authorization bills. Meantime, under a stopgap funding measure the Pentagon is permitting the F136 program to continue development by utilizing carryover fiscal year 2010 funds, a sum that will keep the effort going until early December.

In the event Congress enacts another continuing resolution to fund government operations beyond Dec. 3, the F136 program is in trouble. Under rules issued by Jeffrey Zients, acting director of the White House Office of Management and Budget, Defense Secretary Robert Gates -- who is leading the effort to kill the F136 program -- can unilaterally turn off funding for the F136 because it did not receive support in all four proposals of the FY-11 defense bill proposed by congressional panels that oversee military spending. In a Sept. 30 bulletin to federal department heads, OMB explains:

If either the House or Senate has reported or passed a bill that provides no funding for an account at the time the CR is enacted, the CR automatic apportionment does not apply to the account. Instead, you must submit a written apportionment request to OMB if you want to request funds for the account during the period of the CR. OMB will apportion funds in such a manner as not to impinge on the final funding prerogatives of Congress.

With election day 2010 less than 24 hours away and a Republican takeover of the House predicted by virtually every political pundit, the top four Democrats on the House Armed Services Committee may not have to worry about minority status. All four may be gone from the House, period.

Notably, committee Chairman Rep. Ike Skelton (MO) is in the political fight of his life. Skelton won reelection two years ago with 66 percent of the votes cast. This year, however, his race against Republican Vicky Hartzler, who served in the state House, is considered a "toss-up" by the political website RealClearPolitics.com, which bases its judgments on national and in-state polls.

John Spratt (SC) is right behind Skelton in terms of seniority among Democrats on the committee. And like Skelton, he won reelection in 2008 by a comfortable margin of 62 percent. But 2010 is a bad year for Spratt's party, and he faces a long day tomorrow against challenger Mick Mulvaney. Mulvaney, like so many Republicans running this year, is criticizing his opponent for supporting the Obama-Pelosi agenda. RealClearPolitics.com says the Spratt-Mulvaney race "leans GOP."

Reps. Solomon Ortiz (TX) and Gene Taylor (MS) -- the third and fourth-ranking Democrats, respectively -- hold subcommittee chairmanships. Taylor has taken a very high profile over the last number of months because of the Gulf oil spill. He has also consistently argued for a larger surface fleet for the Navy. Northrop Grumman's Ingalls Shipyard is in Mississippi. RealClearPolitics. com puts both races in the "toss-up" category.

Maybe their wealth of political skill can get them reelected one more time. But in a year when the word incumbent is being spelled with four letters, each man carries a heavy burden -- their length of service in the House. Skelton was first elected in 1977, Spratt and Ortiz were members of the House freshman class of 1982, and Taylor was sworn in in 1989.

Most of the data analysis of a successful Aegis Ballistic Missile Defense system intercept conducted this week has already concluded, according to a Raytheon official.

An SM-3 Block 1A missile launched from the Japanese destroyer Kirishima successfully shot down a medium-range, ballistic missile target yesterday off the coast of Hawaii, MDA announced early this morning. Kirishima is the fourth of four ships that Japan has retrofitted to carry Aegis BMD missiles.

Frank White, vice president of the company's air and missile defense business unit, said in a brief telephone interview today that "we've gotten pretty good at doing this, and so even within an hour of the mission, we'd done a lot of the data analysis. Essentially within a week, we will have completely run through all of the data there is to run through, but a significant amount of data analysis has already been done in the last 12 hours, and is done real-time."

The next intercept test of the Aegis BMD system -- off a U.S. combat ship -- is scheduled for the spring of next year and will feature an SM-3 Block 1A missile and Aegis Combat System version 3.6.1, according to White.

The managers of some of the Pentagon's largest weapon programs -- including the Joint Strike Fighter, Stryker, CVN-68, C-5 RERP, and P-8A -- did not avail themselves of acquisition rules established by Congress to ensure prime contractors are not thwarting competition when determining whether to may a part in house or subcontract to another firm, according to federal auditors.

The Government Accountability Office, in a new report, concludes that additional Pentagon guidance is required to "improve visibility into the structure and management of major weapon system contracts" in according with the 2009 Weapon System Acquisition Reform Act (WSARA). The GAO report, prepared at the direction of the FY-10 National Defense Authorization Act, concludes:

[P]rogram officials seemed reluctant to use available acquisition provisions, such as the make-or-buy plan, that enable the government to gain visibility into the prime contractor's subcontracting effort, largely because of fears regarding government liability. Further, government officials often questioned the overall purpose of these provisions. Nevertheless, Congress directed DOD in WSARA to ensure that prime contractors’ make-or-buy decisions are fair and reasonable. Provisions such as the make-or-buy plan represent important tools that the government can use to gain insight into the prime contractor’s methods for awarding subcontracts.

Shay Assad, director of defense procurement and acquisition policy, said in an Oct. 22 memo accompanying the GAO finding that the Pentagon will update acquisition guidance for contracting officers by June 30, 2011.

The 2009 Weapon Systems Acquisition Reform Act directed DOD "to improve competition throughout the life cycle of major defense programs, to ensure that contractors' make-or-buy decisions are fair and objective," GAO notes. "Specifically, the Secretary of Defense was directed to require prime contractors to give full and fair consideration to qualified sources other than the prime contractor for the development or construction of major subsystems and components of major weapon systems."

The Pentagon's acquisition executive has set Nov. 22 as a day of reckoning for the Joint Strike Fighter program, according to a Defense Department official. On that day the Defense Acquisition Board will meet and hear from F-35 Program Executive Officer Vice Adm. David Venlet who will present the results of a wide number of initiatives directed by DOD acquisition executive Ashton Carter in June.

At this milestone review, Carter is expected to consider results of a technical baseline review, affordability initiatives -- for a program that in June the Pentagon estimated will cost $382 billion -- as well as an independent manufacturing review, reorganization and manning of the F-35 Joint Program Office, a revised risk management process, intelligence community support to the F-35 program, status of F-35 funding in DOD's FY-12 to FY-16 investment plan, and status of the flight test plan.