Thanks to fiercehomelandsecurity.com, we have a summary of the FY2013 budget request for the Coast Guard. They also provide a link to the full budget justification.

I would like to focus on the AC&I portion and compare and contrast it with the FY 2012 appropriation which we talked about here.

Total AC&I funds go down from $1,463,968,000 to $1,192,309,000, a drop of almost 18%.

In the out years (FY 2014, 2015 and 2016) the AC&I budget is projected to rise above the FY2012 level.

A number of programs are zeroed out in FY 2013, either because they are cancelled, are on hold, or because they are complete. These include “In-service Vessel Sustainment,” Response Boat-Medium, HH-60 conversion projects, Long Range Surveillance Aircraft (C-130H/J), Rescue 21, Inter-agency Operations Centers (IOCs).

AC&I for vessels went up from $642M to $879.5M, but last year did not fund an NSC as this one does. As has been reported the seven and eighth NSC have been removed from the out-year budgets.

The breakdown for “vessels” (cutters, small boats and related equipment) looks like this:

………………………………………………….FY2012………..FY2013

Total for Vessels ……………………………….$642M……….$879.5M

• Survey and Design – Vessels & Boats ….$6M ………….$2.5M (175 ft WLM begins)
• In Service Vessel Sustainment (ISVS) ….$14M…………..(Restarts FY2014)
• Response Boat – Medium (RB-M) ……$110M…………. (Complete)
• National Security Cutter (NSC) …………$77M………….$683M
• Offshore Patrol Cutter (OPC) …..………$25M……………$30M
• Fast Response Cutter (FRC) …….……$358M………….$139M
• Cutter Boats ………………………………$5M…………….$4M
• MEC Sustainment ……………………….$47M…………..$13M
• Heavy Icebreaker …………………………………………….$8M

Icebreakers:

There is a total of $770M identified for a new icebreaker in FY 2014, 2015, and 2017. Total acquisition cost “TBD.”

“The survey and design phase (for the new icebreaker) would last from the second quarter of fiscal 2013 through the fourth quarter of fiscal 2016, according to the justification.”

Offshore Patrol Vessels:

The $30M is to fund competitive design efforts by up to three short-listed competing ship building organizations.  This is expected to be a two step, three year design process beginning after the end of FY 2012, followed by a presumably three to four year construction process to hopefully deliver the first OPC before the end of calender year 2019. Surprisingly the out-years appear to provide for OPC construction at the rate of only one ship per year. Only $360M per year in FY2015 (first ship), 2016, and 2017. If we continue to build OPCs at only one per year it will take until 2043 to build the 25 projected by which time the newest 270 will be 53 years old. 2045 if we build two extra to replace the cancelled NSCs. (That would be truly ridiculous.) Stretching out the production run will inevitably lead to higher unit costs in contrast to the multi-year production contracts the Navy used for the Littoral Combat Ships (two five year contracts with options for up to 10 ships each).

Fast Response Cutters

The cutters are being built at a rate of four per year. Last years budget included funds for six. FY 2013 request funds number 19 and 20, and will keep the line going. FY 2014, 2015, and 2016 go back up to a $360M/year level.

AC&I for aircraft dropped from $354.4M to $74.5M.

Out years are all higher than FY 2012, as purchases of HC-144s are projected to go back up from $43M in FY 2013 to $220M/year for the succeeding three years and a total of $470M is projected for C-130s 2014-2016. Some notes of interest below:

“The LRS program continues efforts to extend the operating life and enhance the capability of the HC-130H fleet by replacing key component Center Wing Boxes (CWBs) and adding new capability (avionics-A1U), permanently defers the second avionics upgrade (A2U), and reduces the scope of the mission systems upgrade in favor of C-130J production. Consolidation of the C-130H and C-130J PPAs into one new LRS Project enables greater flexibility toward achieving an 11H/11J fleet configuration, which is expected to result in increased mission effectiveness and minimizes lifecycle cost. The eventual goal is to transition to an all C-130J fleet by the mid-2020s, when it will no longer be practical or affordable to keep the C-130H in service.”

“The Coast Guard intends to leverage FY 2012 funding initially intended for the H-60 Radar Sensor System for sustainment segments now underway, including life-limiting component recapitalization and replacement of obsolete components. These revised plans will focus resources on sustaining existing capacity and capability.”

Finally:

AC&I for “Shore, Military Housing and Aids to Navigation dropped from approximately $200.7M to 69.4M.

If we could get the Air Force’s nearly new C-27Js in lieu of HC-144s as has been discussed, it might allow us to build a second OPC each year.

(Note most of the cost breakdown information is found on page CG-AC&I-12)