7/29/2019 The F-35: A must-have we can afford

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2003

2013

2003

2013

2003

2013

13%

23%

administration services

air operations

operating forces

34%

27%

44%

58%

f-35: 29

OTHE

R

CBRN

E

C41

GV

NAV

AM

A

The f-35A MUST-HAVE WE CAN AFFORD

Next-generation competitors and customers

SINGAPORE

SOUTH KOREA

TAIWAN

PARTNER COUNTRIES FUTURE CUSTOMERS POSSIBLE COMPETITORS

The F-35 is the sole next-generation aircraft now under construction to servethe U.S. Air Force, Marine Corps and Navy. It is the cutting-edge vehiclekeeping American military technology ahead of international competitorslike China and Russia, and is a key deliverable for US sales to allies, includingIsrael, The United Kingdom, Canada, and Australia, among others.

Affordable investmentCritics complain that F-35 production, which has suffered project delays and cost overrunssince its inception in 2003, takes up too much of the Defense Departments procurementbudget. Yet, while the F-35 is by far the largest acquisition program underway, it only comprises1.6 percent of the Defense Departments overall budget request to Congress for 2013.

1.6 percent, relatively speakingBy comparison, according to a 2011Bureau of Labor Statistics survey, 1.6

percent is about half of the averagefamilys budget share dedicated toclothing, and less than a third of whatthe average family allocates from itsannual budget to entertainment.

SOURCE: Bureau of Labor Statistics

$$$$

$$$

revolving management funds

military construction

2003 ALLOCATED 2013 REQUESTED

family housing

RDT&E

PROCUREMENToperations & maintenancemilitary person nel

At the same time that the procurement percentage of the pie remained constant, the cost ofoperations and management has increased by 10 percent relative to other expenses. A bigdriver of that increase is going to administrative costs as well as the cost of operating forces,both of which increased in absolute and relative terms while air operations decreased.

To criticize the increased spending on the F-35$9 billion overall in the 2013fiscal year requestis to ignore that the aircraft are actually now beingdelivered and maintained. Though the number F-35s procured are dwarfedby the procurement numbers of other aircraft, its capabilities will make it thekeystone of American air power for decades to come.

Pentagon priorities

1.6%

SHARE OF Defense department's BUDGET FOR F-35

SHARE OF FAMILY BUDGET FOR CLOTHING

SHARE OF FAMILY BUDGET FOR ENTERTAINMENT

3.5%

5.0%

Sharing the pieLooked at another way, the share of funding dedicated to the F-35 has increasedfrom 14 to 27 percent of the overall aircraft procurement budget. Yet the share ofthe budget allocated to both aircraft and overall procurement remained constantbetween 2003 and 2013. Thus, neither the F-35 nor the overall procurement budget isdriving increases in defense spending.

operations & maintenance

military personnel

rdt&E

procurement

family h ousi ng

revolving and management funds military construction

40%

25%

18%

14%

1%1%

2003 DEFENSE ALLOCATIONS

1%

aircraft ammunition & missiles

33% 11%

other27%

naval vessels

cbrne

c41

ground vehicles

3%

8%

6%

12%

2013 DEFENSE REQUEST

operations & maintenance

military personnel

rdt&E

procurement

family ho usin g military construction

44%

24%18%

14%

0%2%1%

11%

revolving and management funds

2013 PROCUREMENT BUDGET REQUEST

aircraft

ammunition & missiles

33%

4%

other34%

naval vessels

cbrne

c41

ground vehicles

2%

10%

3%

14%

AIR POWER

p-8 poseidon : 13

F-18A/E: 26

V-22 Osprey: 21

HELICOPTERS: 252

Transport Aircraft: 7

Market dynamicsSpending on procurement is set to peak in 2017 beforeleveling out and dropping off in 2027 when the Navy stopsacquiring the aircraft. If the US stops or slows production ofthe F-35, not only does it lose its customer base among itsallies, but their departure from the market raises the priceper plane for the US. And without the next-generationtechnology, the US will not be in a position in the future torepel emerging threats.

2012 2034

overall program cost per unit

UAVs :283

operations &Management spending

F-35 = 1.6%

$ IN MILLIONS

( CONSTANT 2003 $ )

2003 PROCUREMENT BUDGET ALLOCATION

THOMAS DONNELLY AND PHILLIP LOHAUS

U.A.E.

The F-35 Joint Strike Fighter program has been criticized for cost overruns and project delays.It is the Pentagons largest single acquisition program, but to what extent does it actually drivethe overall budget? Answer: Not that much.