DOD seeks additional funding for CCA -- suffering nearly 40% cost growth -- SM-6, and more

By Jason Sherman  / July 2, 2024

The Pentagon is seeking congressional permission to shift $3.3 billion among budget accounts to launch a handful of new-start projects, including additional funding needed for the Air Force's Collaborative Combat Aircraft program, Army accounts to buy ship-sinking missiles needed for its Mid-Range Capability program and a new Mobile-Long Range Precision Strike Missile.

On June 28, Pentagon Comptroller Mike McCord submitted a pair of omnibus reprogramming requests to Congress to shift funds appropriated in fiscal years 2024 and 2023 to higher-priority programs in FY-23. Inside Defense obtained a copy of the documents; one is for general budget funding realignment; the second is for military intelligence programs.

"This reprogramming action provides funding in support of higher-priority items, based on unforeseen military requirements, than those for which were originally appropriated and are determined to be necessary in the national interest," both documents state.

One document, a 78-page request to shift funds, seeks authority to shift $3.19 billion between accounts; the MIP reprogramming is a 10-page document that would shift $176 million between intelligence programs.

The Air Force’s new Collaborative Combat Aircraft program is encountering not previously reported huge cost growth -- nearly 40% higher than budgeted -- right out of the gate. The Pentagon is seeking to shift an additional $150 million in fiscal year 2024 funds to the CCA program, noting the $392 million originally requested, approved by Congress and enacted is not enough.

“Funds are required due to higher than planned costs for the Collaborative Combat Aircraft (CCA) program in support of the Next Generation Air Dominance (NGAD) Family of Systems,” according to the Air Force. “The funds will be utilized to conduct analyses, identify technology candidates, perform concept refinement studies and design/build/test production representative test articles. The increase is primarily due to the recently approved acquisition strategy, refined attributes for the production prototype and revised costs following receipt of proposal and contract award.”

Air Force Secretary Frank Kendall aimed to get ahead of the cost-growth news, and told Defense News in a story published July 1 that the service is committed to the program but is looking to find a more affordable path.

“I can tell you that we are looking at the NGAD platform design concept to see if it’s the right concept or not. . . . We’re looking at whether we can do something that’s less expensive and do some trade-offs there,” Kendall said.

Separately, the Army is seeking to shift $39 million to buy additional SM-6 Block 1A missiles for its new Mid-Range Capability, a ground launch system that can also fire Tomahawk cruise missiles.

“Funds are required to procure eight Standard Missile-6 (SM-6) Blk 1A missiles with canisters, which will enable the full combat capability of the Mid-Range Capability,” according to the reprogramming request. “The unique capabilities of the SM-6 will service time-sensitive maritime and land-based targets. The urgency is to reduce risk in INDOPACOM by procuring more missiles with available funds now.”

According to DOD, the Army’s total munition requirement changed after the FY-24 budget request was submitted to Congress -- which “significantly increased the SM-6 requirement last year.”

“If not funded, the only SM-6 missiles are the initial prototype capability Battery delivered by the Rapid Capability and Critical Technologies Office in FY-23, limiting the effectiveness against the full range of targets,” according to the proposed budget action. “The Army has coordinated with the Navy to procure them on the SM-6 contract to be awarded in FY-24.”

MRC is intended to improve the Army's ability to counter anti-access, area-denial capabilities, such as those Russia and China are developing, in order to attack specific adversary vulnerabilities and penetrate, dis-integrate and exploit in both strategic as well as deep-maneuver areas.

Separately, the Army is seeking to shift $33 million in advanced component development and prototype funding to the service’s tank and medium caliber ammunition accounts for a new variant of the Long-Range Precision Strike Missile.

“Funds are required to satisfy Army's Mobile Long-Range Precision Strike Missile (M-LRPSM) directed requirement approved in August 2023,” according to the reprogramming request. “The additional funds will be used to acquire munitions and develop the interface kit for mounting the M-LRPSM on the Army's Infantry Brigade Combat Team vehicles. The M-LRPSM effort provides organic capability intended to be a ballistic rocket system used by the IBCT to suppress and disrupt enemy forces.”