Coast Guard FY 2020 Budget Request

Below I have duplicated the Coast Guard’s FY2020 Budget “Fact Sheet”. You can see supporting documents here. My comments are at the bottom.

U.S. Coast Guard Fact Sheet

Fiscal Year 2020 President’s Budget  

BACKGROUND: The FY 2020 President’s Budget requests $11.34 billion for the Coast Guard, including $9.32 billion in discretionary funding.  This begins to address the Service’s erosion of readiness through critical investments in the workforce, cybersecurity, and depot maintenance of legacy assets and infrastructure.  The Budget also supports the Service’s highest priority acquisition, the Offshore Patrol Cutter (OPC), and continues recapitalization efforts for capital assets and infrastructure.

BUDGET PRIORITIES:

  • Maximize Readiness Today and Tomorrow—increasing global complexity and expanding demand for Coast Guard services necessitates investment in the workforce, assets, and infrastructure to address the erosion of Service readiness.   
  • Address the Nation’s Complex Maritime Challenges—as the Nation’s unique instrument across the full spectrum of maritime operations, the Budget invests in capabilities and capacity to detect, deter, and counter maritime threats in support of homeland security and defense operations.
  • Deliver Mission Excellence Anytime, Anywhere—the Coast Guard is an agile and adaptive force whose greatest value to the Nation is an ability to rapidly shift among its many missions. The Budget advances modernization efforts in both operations and acquisitions by adapting to the dynamic nature of maritime operations.

MAXIMIZE READINESS TODAY AND TOMORROW: The FY 2020 Budget requests $7.9 billion for Operations & Support (O&S).  Budget highlights include: 

  • $118 million for requisite military pay and allowances as per the FY 2019 National Defense Authorization Act requirements, which keeps DoD and Coast Guard military members compensated equitably, as well as providing civilian benefits and retirement contributions.
  • $59 million for new assets including: crew and shore-side support for NSC #9; operations and maintenance for FRCs #3741; crews for FRCs #39-43; shore-side maintenance personnel for FRC homeports; crew for OPC #1; maintenance support personnel for the C-27J fleet; and operations, maintenance, and flight crews for HC-130J aircraft #12. 
  • $27 million for human capital support infrastructure, and vessel, aircraft, and C5I maintenance funding to address spare parts inventory shortfalls that have led to decreased operations and lower readiness levels due to unplanned repairs. 
  • $22 million for the final phase of Federal Aviation Administration (FAA) compliance upgrades, including the replacement of obsolete aircraft equipment and systems necessary to meet 2020 airspace requirements.

ADDRESS THE NATION’S COMPLEX MARITIME CHALLENGES: The FY 2020 Budget requests $1.2 billion for Procurement, Construction, & Improvements (PC&I) to continue recapitalization of the Service’s highest priority acquisitions: 

  • $792 million for vessels, including: $457 million for the construction of Offshore Patrol Cutter (OPC) #3 as well as long lead time materials for OPCs #4 and #5; $140 million for the procurement of two Fast Response Cutters (FRCs); $60 milllion for post-delivery activities for the seventh through eleventh National Security Cutters (NSCs); $35 million for program management and production activities associated with the detail design and construction contract for Polar Security Cutters (PSCs); and $15 million for a multi-year Service Life Extension Project (SLEP) for POLAR STAR. 
  • $200 million for aircraft, including: $20 million to support service life extensions for MH-60T helicopters; $50 million for a service life extension and avionics upgrade on the H-65 helicopter fleet; $120 million for missionization of fixed-wing HC-27J and HC-144A aircraft; and $9 million for small unmanned aircraft systems (sUAS).
  • $174 million for shore infrastructure projects, including funding for: utility upgrades and construction at Air Station Ventura, CA; improvements at Station Tillamook Bay, OR; replacement of moorings at Station Siuslaw River, OR; and facility upgrades and construction to support FRC and OPC homeports.

DELIVER MISSION EXCELLENCE ANYTIME, ANYWHERE: In FY 2020, the Coast Guard will make sound, riskbased decisions to efficiently allocate resources while investing in critical recapitalization initiatives.  Highlights include: 

  • $15 million to address obsolete communications equipment on cutters, aircraft, and shore facilities to ensure continued interoperability with DoD Combatant Commanders (COCOMs) in theater, as well as in the high latitudes, and during disaster response.
  • $12 million in savings associated with the planned decommissioning of one High Endurance Cutter (WHEC) and three 110foot Patrol Boats (WPBs).  These assets are being replaced by new, more capable NSCs and FRCs, respectively.

My Commentary: 

The $118M quoted above for military pay and allowances is to fund the pay increase not the full amount of pay and allowances.

The top line amount in the budget request, $11.34B, is roughly $770M less than the final FY2019 budget and about $860M less than the FY2018 budget as enacted. Fortunately Congress has usually made additions to the request, but this request is also less than last year’s request.

The big difference, more than $1B, is in the Procurement, Construction, and Improvement account. Amounts requested for Ships and Boats, Aircraft, and Shore-side Infrastructure are all lower. The $1.2B total is little more than half the approximately $2B/year the Coast Guard has been saying they need.

Items missing in the description of the budget that might have been expected, are a second “Polar Security Cutter” (better to do it in 2020 when we are not trying to also fund two OPCs), the Waterways Commerce Cutter, any additional HC-130J aircraft, and a land based Unmanned Air System. The procurement of only two Fast Response Cutters is below the optimum build rate and appears to have resulted in higher unit costs.

FY2019 Budget


US Capital West Side, by Martin Falbisoner

With a bit of help from a friend, the actual FY2019 budget documents were located:  “The Joint Explanation” and “The Conference Report.”

I found the Joint Explanation easiest to wade through. The Budget breakdown is found on pages 65 to 69 of the 612 page pdf.

Note in some cases I have rounded to the nearest $0.1M


Our total Coast Guard FY2019 budget is $12,015,921,000. This is $91,803,000 less than last year, but $577,720,000 more than the budget request.

The Operations and Support allocation is $7,808.2M. That is $434.9M more than last year (a 5.6% increase), and $215.1M more than requested.

I have provided information on the PC&I budget below including a complete list of line items that I was unable to provide before.

PROCUREMENT, CONSTRUCTION, AND IMPROVEMENTS (PC&I) $2,248.26M

Vessels and Boats

  • Survey and design:                      5.5M
  • In service vessel sustainment:   63.25M
  • National Security Cutter:              72.6M (Follow up on ships already funded)
  • Offshore Patrol Cutter:                  400M (Second of class + LLTM for third)
  • Fast Response Cutter: 340M (Six Webber class including two for PATFORSWA)
  • Cutter boats                                       5M
  • Polar Security Cutter:                     675M (First of class + LLTM for second)
  • Waterways Commerce Cutter:           5M
  • Polar sustainment:                            15M (Polar Star Service Life Extension)

—-Vessels Subtotal:  $1,581.35M

Aircraft

  • HC-144 Conversion/Sustainment:         17M
  • HC-27J Conversion/Sustainment:         80M
  • HC-1330J Conversion/Sustainment:   105M
  • HH-65 Conversion/Sustainment:           28M
  • MH-60 Conversion/Sustainment:         120M
  • Small Unmanned Aircraft:                        6M

—Aircraft Subtotal:  $356M

Other Acquisition Programs:

  • Other Equipment and System:                                               3.5M
  • Program Oversight and Managemen:                                    20M
  • C4ISR                                                                                    23.3M
  • CG-Logistics Information Management System (CG-LIMS):   9.2M

—Other Acquisitions Programs Subtotal:   $56M

Shore Facilities and Aids to Navigation:

  • Major Construction; Housing; ATON; and Survey and Design: 74.51M
  • Major Acquisition Systems Infrastructure:                                 175.4M
  • Minor Shore                                                                                      5M

—Shore Facilities and Aids to Navigation Subtotal:  $254.91M

The PC&I total, $2,248.26M, was $446.48M less than FY2018, but it was $361.51M above the budget request.

R&D was cut by almost a third. This is probably a place to spend more not less.

Reserve Training disappeared as a separate line item, so I can’t tell what happened there.

Also included in the new budget is $5M for the National Coast Guard Museum

Incidentally, the total amount appropriated for the polar security program includes $359.6M (FY2018 and prior) + $675M (FY2019), or $1,034.6M, of which $20M is for Long Lead Time Material for the second ship, and the remainder is for the first ship and other program-related expenses.

With Operations and Support up more than 5% over 2018 and Procurement Construction &Improvement (PC&I) over $2B for the second year in a row, this is the kind of budget we can live with. It just needs to keep happening.

FY2019 PC&I Appropriations

I have not been able to find a complete FY2019 Coast Guard budget as it was signed into law, but we do have at least a partial list of Procurement, Construction, and Improvement appropriations for ships and aircraft based on two Congressional Research Service reports (Coast Guard Polar Security Cutter (Polar Icebreaker) Program: Background and Issues for Congress” and “Coast Guard Cutter Procurement: Background and Issues for Congress “) and a Homeland Security Today report.

$1,507.6M For Ships (LLTI refers to Long Lead Time Material):

  • $675M   for the first Polar Security Cutter and LLTM for the second
  • $400M   for the second Offshore Patrol Cutter and LLTM for the third
  • $340M   for six Fast Response Cutters
  • $72.6M  for the National Security Cutter program
  • $15M     for life extension work on Polar Star
  • $5M       for initial work on procuring an additional Great Lakes Icebreaker

Coast Guard C-130J

$208M For Aircraft:

  • $105 for the HC-130J program (I think that is one aircraft)
  • $95M for MH-60T recapitalization (reworking existing aircraft I believe)
  • $8M for upgrades to the MH-65s

That is $1,715M for the items above. This, hopefully, is not all. I don’t have a figure for the Waterways Commerce Cutter (a small figure at this point), no information on unmanned systems, and there should also be money to address the backlog of shoreside improvements, but this does seem to show a recognition of the real needs of the Coast Guard for recapitalization. Looks like the $2+B annually for PC&I the Coast Guard has been saying they need is within reach.

 

 

First Polar Security Cutter Fully Funded

Polar Security Cutter Concept by Fincantieri Marinette Marine

If you have been wondering if the $655M allocated for the first Polar Security Cutter was enough, let me set your mind at ease. The original FY2019 request was for $750M and only $655M was included in the budget, so it appears we are $95M short. There is an explanation.

Incredibly Mr Ronald O’Rourke has already updated “Coast Guard Polar Security Cutter (Polar Icebreaker) Program: Background and Issues for Congress” (as well as “Coast Guard Cutter Procurement: Background and Issues for Congress “) to reflect passage of the FY2019 budget.

A footnote on page 19 of the report on the Polar Security Cutter (PSC) explains.

“47 The Coast Guard’s proposed FY2019 budget was submitted before Congress finalized action on the Coast Guard’s FY2018 budget. In its action on the FY2018 budget, Congress approved the Coast Guard’s request for $19 million in Coast Guard acquisition funding for the program, and provided $150 million in unrequested acquisition funding for the program in the Navy’s shipbuilding account. If the FY2019 request for $750 million is intended solely to complete the funding for the first ship, and if this figure does not assume that more than $19 million would be provided for the program in FY2018, then approving the $750 million request would provide $150 million more than needed to fully fund the first ship. “

There is also  $15M for Service Life Extension work on the Polar Star (see Table 3 on page 35.

So, if I understand this correctly, we have $824M for the completion of design work and the construction of the first Polar Security Cutter. Additionally we have $20M for long lead items for the second PSC. If as reported earlier, the first three ships should cost approximately $2.1B, then we have a little over 39% of the funding for the three ship buy.

I would really like to see us do a block buy. Congress has authorized it, and the request for proposal asked for Block Buy quotes, so it should not be impossible.

Polar Star –Doing the Job, but with Difficulties

USCGC Polar Star. USCGC photo.

While we have this government shutdown, progress on the new Icebreaker (Polar Security Cutter) has certainly slowed, if not stopped entirely. Meanwhile the Polar Star and her crew soldier on. Naval Today reports:

During this year’s deployment, one of the ship’s electrical systems began to smoke, the Coast Guard said, causing damage to wiring in an electrical switchboard, and one of the ship’s two evaporators used to make drinkable water failed.

The ship also experienced a leak from the shaft that drives the ship’s propeller, which halted icebreaking operations in order to send scuba divers in the water to repair the seal around the shaft. A hyperbaric chamber on loan from the US Navy aboard the ship allows Coast Guard divers to make external emergency repairs and inspections of the ship’s hull.

The Polar Star also experienced ship-wide power outages while breaking ice. Crew members spent nine hours shutting down the ship’s power plant and rebooting the electrical system in order to remedy the outages.

No one knows how long the crew can keep her going, but there is a good chance we are going to see serious problems before the new ship is ready.

Thanks to Lee for bringing this to my attention. 

 

“Breaking Faith with America’s Coast Guard” –USNI

Coast Guard Commandant Adm. Paul Zukunft (right) meets with then-Southern Command chief Gen. John Kelly.

The US Naval Institute has published 25th Commandant, Admiral Zukunft’s, thoughts on the impact of the government shutdown on the Coast Guard.

He makes a good case, but one statement in particular really hit me.

“…yet on any given day, over one-third of our operational resources are deployed in support of the military geographic combatant commanders around the globe.”

I have been reading the USNI news feed, and every week they have a story titled “Fleet and Marine Tracker,” that talks about ongoing operations and includes a breakout of vessels deployed and vessels underway. I don’t actually have a definitive average, but it has been pretty consistent in showing one fourth of the fleet underway and one third deployed. If the statement above is correct, then, in addition to Coast Guard operations under Coast Guard operational control, We are also deploying in support of Combatant Commanders at essentially the same rate as the Navy.

You might also want to look at a report of 23rd Commandant, Thad Allen’s remarks.

You may not be aware but several bills have been introduced that would provide pay to either the Coast Guard or to all Federal employees. So far the Senate Majority leader has refused to allow a vote on any of them.

 

Coast Guard Mutual Assistance –Help is Needed

Cutter Stratton sailor returns home U.S. Coast Guard photo by Petty Officer 1st Class Matthew S. Masaschi.

The current budget impasse is creating hardships for Coast Guard members and their families. If you want to help, one of the best ways is through Coast Guard Mutual Assistance. If you would like to make a donation or organize a fund raiser, this is the link.