31 January 2019 Pentagon space procurement and R&D budget is on an upward trend. How long can this last? By Sandra Erwin Space News |
https://spacenews.com/pentagon-space-budget-is-on-an-upward-trend-how-long-can-this-last/ |
When it comes to military space issues, the Pentagon
and Congress have not always seen eye to eye. But in the
appropriations bill that Congress passed in September to
fund the Defense Department for 2019, lawmakers gave the
Pentagon what it asked for: $8.1 billion for investments
in space systems. As DoD officials haggled with lawmakers over various
sticking points of the $716 billion defense budget that
President Trump signed into law three days before the
government’s new fiscal year began Oct. 1, the Pentagon’s
space proposals encountered little resistance from
Congress. “The dog that didn’t bark in the fiscal year 2019
budget was space,” U.S. Air Force Secretary Wilson
recounted in December. “The fact is that we were able to
build very broad consensus and significant support in the
Congress without controversy.” Congress approved the Pentagon’s 2019 budget as part of
one of the few spending bills to reach Trump’s desk last
year — a consolidated spending bill, H.R. 6157 that also
provided full-year funding for the labor, health and human
services and education departments (The partial government
shutdown that began Dec. 22 resulted from Congress and the
White House allowing funding for most other federal
agencies to lapse). A close examination of H.R. 6157 by budget analyst Mike
Tierney of the Arlington, Virginia-based aerospace,
defense and intelligence consulting firm Velos, shows
congressional appropriators “provided pretty much exactly
what the DoD requested for space, not substantially more
or less.” While the Pentagon says Congress provided more than $12
billion for unclassified space activities for 2019,
Tierney said that total includes about $4 billion in
personnel, operations and maintenance funds that cannot be
traced to publicly available budget documents. The $8.1 billion Congress ultimately provided for
unclassified military space procurement and research &
development for 2019 is about $20 million more than the
Pentagon sought and some $900 million more than the $7.2
billion the Pentagon received for its space portfolio for
2018.
The increase targets primarily four areas: space
launch, satellite communications, ground command networks
and basic scientific research. The Pentagon stands to spend the bulk of this year’s
space procurement and R&D budget on launch services,
satellites and ground systems, Tierney said, with
comparatively smaller investments in research,
development, testing and engineering (RDT&E). One of the takeaways from Tierney’s numbers is that
despite official rhetoric about space being an
increasingly important domain of warfare, funding for
space fluctuates along with all other military accounts.
“Space doesn’t get special treatment,” Tierney said.
“Generally speaking, it rises and falls with the tide of
the DoD budget.” When Congress capped federal spending in 2013, the
Pentagon had to make cuts across the board, including
space. Space procurement and R&D funding for 2013 was $6.6
billion, a dramatic drop from $9.1 billion in 2012. “What
this tells us is that the trajectory of space funding
tracks with the overall DoD top line over that period.” Space funding stabilized after the 2013 sequestration
cuts. When the Pentagon’s top-line increased in 2018,
space procurement and R&D funding went up to $7.2 billion.
DoD’s budget projections include $9.2 billion for space in
2020, $8.7 billion in 2021, $9.6 billion in 2022 and $9.5
billion in 2023. Defense budget analyst Todd Harrison of the Center for
Strategic and International Studies said these projected
increases might be optimistic. “I think overall Congress
supported space programs and activities in the FY2019
budget. But was that because the money was flowing freely
and there was no need to make hard decisions? Or was it
because Congress is making space a priority? I think it’s
too soon to know,” he said. “It will be telling to see
what happens when the overall budget starts declining
again. That’s when we will know if DoD and Congress are
protecting space programs.” The White House is expected to submit its budget
request for 2020 to Congress by Feb. 4. However, the
partial government shutdown that began Dec. 22 could still
delay the Pentagon budget rollout even though it remained
open thanks to Congress completing defense appropriations
before resorting to short-term spending bills for most
other federal agencies. The White House forecast a year ago that its 2020
spending request would include $733 billion for national
defense, a budget account that includes the military
activities of the Department of Defense and nuclear
weapons programs at the Department of Energy. Trump in October said he wanted to trim federal
spending by 5 percent across the board. Defense hawks on
Capitol Hill have been trying to persuade the White House
to increase national defense funding above $733 billion
but the House of Representative’s new Democratic majority
will push back on any funding boost for defense unless
it’s accompanied by increases in domestic spending, which
Republicans will resist. A lot of variables will be in
play that could drive the DoD top-line up or down, along
with space funding. Harrison said the Pentagon’s out-year
projections historically are not reliable predictors of
where the budget is headed but rather are statements of
administration policy. In a deeply divided Washington, the
military budget will be caught in the crossfire. There are no big surprises in how Congress allocated
the $8.1 billion it appropriated for space systems for
2019, as the priorities followed the Pentagon’s request.
The largest share is for space launch ($2.4 billion). Next
is positioning, navigation and timing ($1.4 billion),
satellite communications ($984 million), missile warning
($978 million) and command-and-control ($835 million). The bulk of the Defense Department’s $2.4 billion space
launch budget will be used to pay United Launch Alliance
and SpaceX to continue lofting national security payloads
using their existing rockets. However, Congress provided
the biggest plus-up for the continuation of an effort
aimed at refreshing the field of launch providers vying
for DoD business while ending U.S. dependence on the
Russian RD-180 engine that powers ULA’s Atlas 5 rocket.
Congress provided $445 million in RDT&E dollars — $200
million more than the Air Force requested — to fund the
Launch Service Agreement (LSA) program that in October
awarded $2.3 billion worth of contracts to ULA, Northrop
Grumman and Blue Origin to develop next-generation launch
vehicles. The Air Force ultimately intends to select just
two providers for its future launch business. SpaceX,
which was passed over for development dollars last fall,
remains eligible to compete for LSA launch contracts under
a solicitation expected to begin late this year with the
release of a draft request for proposal. Meanwhile, Congress appropriated $954 million under the
legacy Evolved Expendable Launch Vehicle (EELV) program
for the Air Force to order several more
competitively-awarded launches from ULA and SpaceX this
year before transitioning to the LSA era. The EELV budget
also includes $660 million this year in so-called launch
capability funding the Air Force provides ULA to help the
Boeing-Lockheed Martin joint venture keep both the Atlas 5
and the relatively seldom-used Delta 4 in service. The Air
Force intends to do away with the direct subsidy in 2020
as DoD shifts toward a more commercial approach to buying
launch services.
Although the first GPS 3 satellite launched in December
aboard a SpaceX Falcon 9 rocket, the Defense Department
continues to spend big on its fleet of 31 legacy GPS
satellites and efforts to replace them with a more robust
and jam-resistant positioning, navigation and timing (PNT)
system. The $1.4 billion Congress appropriated for PNT in 2019
includes $451 million for GPS 3 satellites being built by
Lockheed Martin Space Systems and $513 million for the
accompanying ground system. The centerpiece of that
effort, a next-generation ground control system, called
OCX, has been plagued by delays, prompting the Air Force
to pump more money into upgrading the existing GPS system
as a stopgap. Lockheed Martin is building the first 10 GPS 3
contracts under a 2008 contract. In September, the company
was awarded a $7.2 billion contract for 22 follow-on GPS
3F satellites after Boeing and Northrop Grumman declined
to bid. Concerns about electronic interference with GPS signals
have driven recent investments in more secure satellites
and ground systems. The Air Force has developed a new
military GPS signal called M-code that will be more secure
and resistant to jamming and spoofing. The Air Force, Navy
and Army in recent years have experimented with ways to
augment space-¬based PNT capabilities with other
technologies. In 2018, Congress disappointed satellite operators when
it added an unexpected $600 million to DoD’s budget to
fully fund the purchase of two more Wideband Global Satcom
(WGS) satellites from Boeing instead of buying more
commercial services from the likes of Intelsat, Inmarsat,
SES and others. This year’s $984 million satellite communications
budget, while slightly below DoD’s $1 billion request, is
more notable for carving out $49.5 million for a new
budget line for commercial satellite communications.
Congressional appropriators took the money from the $61
million the Air Force had requested for so-called
pathfinder initiatives to supplement or replace WGS
services. The shift was welcome news to commercial satellite
operators that have sought for years to convince DoD to
spend less on WGS satellites and more on commercial
services. The WGS 11 and 12 satellites will still be
procured, but with the addition of a new program line for
commercial satcom, Congress is forcing DoD to figure out a
strategy for the procurement of commercial services. Other satellite communications programs receiving
funding in 2019 include the Navy’s Mobile User Objective
System narrowband constellation (led by Lockheed Martin),
Enhanced Polar System satellites for communications in the
northern polar region (Northrop Grumman), the Advanced
Extremely High Frequency system for classified
communications (Lockheed Martin) and the
still-in-development Protected Tactical Satcom system that
seeks to provide improved cybersecurity. In the user equipment area, Congress added $10 million
to DoD’s $9 million request for Secure Mobile Anti-Jam
Reliable Tactical (SMART-T) terminals Raytheon is
developing for the Army. DoD received $978 million for missile-warning
satellites. But Congress made a major reallocation, moving
$643 million from a program known as Evolved Space Based
Infrared System (SBIRS) to a new missile-warning satellite
program called Next Generation Overhead Persistent
Infrared (Next Gen OPIR). The shift came as a surprise. The Air Force developed
SBIRS to serve as the “unblinking eye” for ballistic
missile warning and defense for the U.S. and its allies.
The SBIRS constellation has four satellites in
geosynchronous Earth orbit and two hosted payloads in
highly elliptical orbit. Two satellites — GEO-5 and GEO-6
— currently in production by Lockheed Martin, will replace
GEO-1 and GEO-2 in 2021 and 2022. The Air Force was
planning to buy GEO-7 and GEO-8 but abruptly changed
course in February — after consulting and getting
agreement from lawmakers — in order to put the program on
an accelerated schedule. The Air Force in May announced a $2.9 billion
sole-source contract award to Lockheed Martin to produce
three geosynchronous next-generation OPIR satellites, and
a $47 million award to Northrop Grumman to begin the
design of the polar satellites. Officials said the
next-gen OPIR will deliver a constellation by 2025, four
years earlier than the original plan for Evolved SBIRS. Lockheed Martin selected Raytheon and a Northrop
Grumman and Ball Aerospace team to compete for the mission
payloads of the next-gen OPIR Block 0 missile warning
satellites. Not funded in the 2019 budget is a new missile-defense
constellation of sensors to protect the U.S. and allies
from hypersonic weapons being developed by China and
Russia. Senior officials including Undersecretary of
Defense for Research and Engineering Mike Griffin and the
commander of U.S. Strategic Command Gen. John Hyten have
warned that these advanced missiles — capable of flying at
several times the speed of sound on unpredictable
trajectories — cannot be detected with ground radars and
that a space-based tracking system is required. Congress in the 2019 National Defense Authorization Act
directed the Missile Defense Agency to start designing a
space-based sensor architecture for missile defense.
Griffin said DoD would seek funding in the 2020 budget for
development and prototyping of a space sensor layer. Congress appropriated $835 million for space command
and control (C2). In space programs, C2 are the systems
that enable commanders to plan, direct and control
operations. Some of the funds pay for software and hardware
upgrades for the Combined Space Operations Center
(formerly known as the Joint Space Operations Center) at
Vandenberg Air Force Base, California. This is where U.S.
military, allies and commercial and civil partners
cooperate on space efforts. Also funded in 2019 is the Enterprise Space Battle
Management Command and Control program that seeks to
integrate data for operational commanders, and the Joint
Space Operations Center Mission System — a modernized
hardware and software system that will provide real-time
integrated space situational awareness. The JSpOC Mission
System Increment 2 ran into troubles in 2016 and the Air
Force decided to terminate a portion of the program and
divided up the rest between the Joint Space Operations
Center Mission System program and the Enterprise Service
Battle Management Command and Control program. C2 systems
are becoming increasingly important as the military steps
up development of space warfighting concepts and tactics. The 2019 National Defense Authorization Act criticized
the Air Force for lagging in the procurement of commercial
software for C2 applications and for space situational
awareness. The Air Force is developing an overarching
vision, called Enterprise Ground Service, to transition
existing telemetry, tracking and command software to a
common infrastructure that is run on commercial software. |
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