*All Options Are on the Table* Scraps - FY 2011 Strategic Budget

Nice knowing you, Navy surface combatant

According to Reuters, the forthcoming Fiscal Year (FY) 2011 defense budget “foresees spending about $4 billion over the next five years to maintain the U.S. bomber industrial base, study plans for a possible new bomber, and upgrade existing B-2 and B-52 bombers.” Undersecretary of Defense for Acquisition Ashton Carter said yesterday that when it comes to details about the new bomber, "We will provide an answer on what comes next on that within the next year." Secretary Gates said previously that the new bomber would likely get around $1 billion in FY 2011.

At a HASC subcommittee hearing yesterday, CBO analyst Eric Labs said that building 12 new SSBN(X) ballistic missile submarines to replace the 14 Ohio-class subs could cost around $85 billion, with the lead ship costing $11 billion and subsequent ships costing $7 billion apiece. More modern construction techniques could help hold down costs; however, increased labor and material costs, the enhanced capabilities of all Navy subs, and the current low rate of ship construction (i.e. fixed overhead costs spread over fewer ships) might push costs upward.

At the same hearing, CRS analyst Ronald O’Rourke made the point that if the Navy pays for the new SSBN(X) out of its regular shipbuilding budget, it would have to steal money from other programs. This could reduce the total number of ships the Navy is able to procure by 56 (20 percent) and “make a substantial consolidation of some kind of the surface ship construction industrial base a distinct possibility, if not a likelihood,” according to O’Rourke. To deal with this problem, the Navy has started asking whether or not an individual service like the Navy should be responsible for spending so much of its own budget on “force structure elements that serve a national mission of strategic nuclear deterrence,” as O’Rourke put it. Loren Thompson suggested to HASC the creation of a “separate, strategic funding” category for the SSBN(X) that would keep it separate from other shipbuilding programs, a model similar to how the Department of Energy pays for U.S. nuclear warheads even though they are fielded aboard DOD-financed delivery vehicles.

One last thing covered at the hearing was the issue of ship requirements for the Obama administration's rejiggered plan for U.S. missile defense in Europe (yeah, we might consider Aegis missile defense a "strategic" budget priority now). For more detail, read what both Labs and O'Rourke said.