Congress working to help Pentagon avoid ‘foolish spending’ spree when new money starts to flow

AN EMBARRASSMENT OF RICHES: It’s an enviable yet daunting problem: How can the Pentagon make sure a lot of money doesn’t slosh over the sides as the services race to spend a full-year’s budget increase of $80 billion in six months? At a House Appropriations subcommittee meeting yesterday, New Jersey Republican Rep. Rodney Frelinghuysen indicated the problem will be addressed with increased flexibility to spend the money into the next fiscal year, which begins Oct 1. That’s all predicated on the assumption Congress will in fact enact the bipartisan budget deal it forged last month by the March 23 deadline.

“Sometimes when you get a huge bucket of money people say, ‘This is the gold mine,’ ” Frelinghuysen told Navy leaders at a House Appropriations defense subcommittee session. “I think we worked out a path forward to provide that degree of flexibility you and the other services are looking for,” he said. To which Navy Secretary Richard V. Spencer replied, “Outstanding. We welcome that with open arms. We will not do any sort of, quote-unquote, ‘foolish spending.’ We can’t afford to.”

Earlier in the week, Assistant Commandant Gen. Glenn Walters told the McAleese Defense Conference that the Marine Corps needs authority to “cross the fiscal boundary” to spend some fiscal 2018 money in fiscal 2019. “Just give us the authority to spend across the line or money is going to dry up on the vine,” he pleaded.

‘GOD-AWFUL’ ABUSES: The same question came up on the other side of Capitol Hill, where the Senate Budget Committee was taking testimony on the Pentagon’s promise to finally complete a full audit of the department’s spending. “What we’ll likely see in this omnibus that’s coming before us in a few weeks is some of the most God-awful taxpayer abuses that we’ve ever seen, because things are being plussed up so quickly,” said Tennessee Republican Sen. Bob Corker, who is not running for reelection.

“Some of that could take place at the Pentagon. I mean we’re raising the cap by $80 billion. What the president requested wasn’t good enough we had to go $30 billion, $35 billion above that,” Corker said as he grilled DoD Comptroller David Norquist. “How is it possible with six months remaining in the year for you to possibly spend the $80 billion you’re getting plus I think $71 billion in [overseas contingency operations] spending? How is it possible to spend that money wisely, Mr. Norquist?”

Norquist said much of the increase is already spread over multi-years, two and three-year money, for procurement and R&D. “The challenge is going to be an operations and maintenance account,” which Norquist said amounts to about $13 billion over the sequestration levels.

SPRING LOADED: Back over at the House, Spencer said the Navy has “racked and stacked,” and it’s contracting people ready to pounce. “We are now coming out of a period of doing more with less, and we’ve been in the backward crouch, so to speak. We now have the resources to stop analyzing the threat and be the threat,” Spencer said. “But that is going to take some new muscle movements and were going to have to really make sure that we are on game for this.”

THE SPARE PARTS SHORTAGE: One of the effects of previous years’ strict spending caps is the squeeze it has put on inventories of spare parts. And a shortage of spare parts for the very expensive F-35 has grounded almost half of the fleet, officials for all three services that fly the plane told Congress yesterday. “We have a lot of challenges,” Vice Adm. Mat Winter, head of the F-35 Joint Program Office, told the House Armed Services Subcommittee on Tactical Air and Land Forces.

Almost 60 percent of the older model jets are down for repairs, while newer models have a more respectable 70 percent availability rate. Winter said his “first and foremost priority” is to get spare parts to the warfighters on the flight line, and that the current budget funds more than doubling the number of repair depots from 28 to more than 60. Winter said there are more than 3,000 subsystems on the F-35 for which there is a backlog of spare parts, everything from simple tires to sophisticated avionics and thermal management systems.

Part of the problem was a lack of funds, but witnesses admitted that another factor was a lack of foresight. “I would love to share the blame with Congress,” said Lt. Gen. Jerry Harris, deputy chief of staff for strategic plans and requirements for the Air Force, “but it’s partially us sitting here. We were late in standing up our depots to actually turn and fix those parts.”

Good Thursday morning and welcome to Jamie McIntyre’s Daily on Defense, compiled by Washington Examiner National Security Senior Writer Jamie McIntyre (@jamiejmcintyre), National Security Writer Travis J. Tritten (@travis_tritten) and Senior Editor David Brown (@dave_brown24). Email us here for tips, suggestions, calendar items and anything else. If a friend sent this to you and you’d like to sign up, click here. If signing up doesn’t work, shoot us an email and we’ll add you to our list. And be sure to follow us on Twitter @dailyondefense.

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HAPPENING TODAY: Two senior South Korean officials are on their way to Washington to brief U.S. officials on their meeting this week with North Korea’s Kim Jong Un. The South Korea government says Chung Eui-yong, the top security adviser to President Moon Jae-in and intelligence chief Suh Hoon will relay a message from Kim to U.S. officials.

“We cannot reveal everything to the media but we do have additional views of North Korea we will relay to the United States when we visit the U.S.,” Chung told reporters in Seoul, according to the South Korean Yonhap News Agency.

It’s not clear who Chung will meet with, whether it will be President Trump, or members of his national security team such as Lt. Gen. H.R. McMaster and Defense Secretary Jim Mattis. Secretary of State Rex Tillerson is in Ethiopia on an Africa trip. Yesterday in response to a reporter’s question at the top of a meeting with the Estonian Defense Minister Jüri Luik, Mattis said, “Obviously we’re cautiously optimistic that there is some forward progress here, but we’ve been optimistic before so we’re going to have to watch actions and see if they match words.”

Likewise, AP reports this morning that Tillerson called the movement “potentially positive symbols” from North Korea, but “we’re a long ways from negotiations.”

LESSONS LEARNED: The last person to actually conclude a deal with North Korea has some advice for the next negotiations. Robert Gallucci, who negotiated the 1994 “agreed framework” that failed to stop North Korea’s nuclear program but did delay it for almost a decade says the key to any future deal is verification. “Ronald Reagan was wrong, it’s not ‘trust but verify,’ ” Gallucci said, “it’s ‘don’t trust and therefore verify.’ ” And he says just because Kim Jong Un is untrustworthy doesn’t mean you can’t strike a bargain. “You can make a good deal, one that advances your national security and that of your allies, even if the other side cheats,” he said.

Gallucci, who is now the chairman of the U.S.-Korea Institute at Johns Hopkins, told me the lessons he learned from his experience 23 years ago dealing with Kim Jong Un’s father, and how they can apply to today’s possible negotiations.

AND THEN THERE’S THE MILITARY OPTION: Gallucci said the Trump administration is right to keep the full range of pressure on the North. “The thing that this administration I think really doesn’t want to do is start taking the pressure off, taking its foot off the gas pedal on sanctions, on exercises, things we know the North wants us to do before we get some real performance.” On Tuesday, Vice President Mike Pence reiterated that the U.S. campaign of “maximum pressure” will not change unless North Korea takes “credible, verifiable, and concrete steps toward denuclearization.”

Arizona Republican Sen. Jeff Flake fears that in the end only military action will force Pyongyang to forsake its nukes. “It’s going to be very difficult, short of going in with a military strike,” Flake told the Washington Examiner, admitting, “That’s just not a good option.”

NATO/EUCOM COMMANDER TESTIFIES: The Senate Armed Services Committee hears testimony at 9:30 a.m. from Gen. Curtis Scaparrotti, the head of U.S. European Command and the supreme allied commander of NATO. Expect many questions about Russian influence and aggression in the region and the U.S. response.

SPENCER DEFENDS LCS BUY: The Navy’s budget plan to buy just one littoral combat ship is “not optimal” but good enough, Spencer said when he was questioned on Capitol Hill Wednesday. “We believe that is a good sustaining rate for both yards as we move into what is going to be a very robust competition for the frigate,” Spencer told the House Appropriations Committee. Last year, the Navy requested a single LCS, but in an unusual move spurred by the White House it added another of the ship one day after its budget request was submitted. After House and Senate wrangling, Congress eventually approved three ships for this year. Now, its 2019 purchase plans are again drawing attention.

“Both LCS shipbuilders have publicly stated that they do not believe that [with] one ship in the fiscal year 2019 budget there’s enough work to sustain the industrial base and hot production lines going into the frigate competitions,” said Rep. Martha Roby, an Alabama Republican who sits on the appropriations committee. The Navy has continued to buy LCS hulls in order to keep a Lockheed Martin shipyard in Wisconsin and Austal USA shipyard in Alabama humming so they can be ready to build the ship’s planned successor, a new Navy frigate.

IT’S STILL A MAD WORLD: The Cold War-era doctrine of mutually assured destruction is not going anywhere despite Russia’s claims of new and provocative doomsday weapons, said Gen. John Hyten, the head of U.S. Strategic Command. “I don’t think we have to worry about that [changing] for at least a decade. I think the capabilities that we have, that we will operate for the next decade, will allow us to maintain the basis of nuclear deterrence,” Hyten said in testimony to the House Armed Services Committee. Mutually assured destruction, or MAD, is the theory that no nuclear power will launch an attack if it would result in obliteration of both sides. The doctrine underpinned the decades-long nuclear standoff between the U.S. and former Soviet Union.

Russian President Vladimir Putin unveiled a stable of new weapons last week and claimed Russia has developed a submarine drone capable of carrying a nuclear payload and a hypersonic nuclear missile that can evade any U.S. defenses. Analysts are skeptical. But Hyten said the real nuclear risk is a miscalculation by Russia or China, which is also a nuclear power bent on developing new weapons to challenge the U.S.

Still, the MAD doctrine and the U.S. advantage cannot be taken for granted, Hyten warned the House. Current weapons systems are rapidly aging, meaning a heightened risk of nuclear war could be just over the horizon. “Ten or 12 years from now, all the capabilities that I operate today will be reaching end of life. We can’t allow that to happen without modernizing and replacing them,” Hyten said.

TARIFF CARVE-OUTS: Trump’s proposed tariffs on steel and aluminum imports will include “carve-outs” for some countries with whom trade provides a national security benefit to the U.S., White House press secretary Sarah Sanders said yesterday. “There are potential carve-outs for Mexico and Canada based on national security, and possibly other countries as well,” Sanders told reporters at the White House.

Trump announced last week that his administration would apply a 25 percent tariff to all imported steel and a 10 percent tariff to all imported aluminum, regardless of origin, in order to protect American steel and aluminum producers. The president has since suggested Canada and Mexico could earn exemptions to the duties by conceding to more favorable terms for the North American Free Trade Agreement, which his administration has sought to renegotiate.

ZELLO, THE TERRORISTS’ TOOL: You may have never heard of Zello, a push-to-talk app that can be used on smartphones, tablets and PCs, but a new report suggests the instant communication app that turns a smartphone into a two-way radio in which multiple users can hear everyone else is becoming a terrorist tool. “Islamic State (ISIS) supporters and other jihadis from around the world are using the Austin, Texas-based communication application Zello for planning and executing terrorist attacks in the U.S., the U.K., European countries, Turkey, and elsewhere around the world,” said the Middle East Media Research Institute. “On January 30, 2018, it was reported that the perpetrator of the April 2017 Stockholm truck attack had used Zello to communicate with other jihadis immediately after he drove the vehicle into crowds on a main street, killing five people and injuring 14. In March 2017, a Texas-based ISIS recruiter who moderated a Zello channel, instructed followers to kill infidels, and personally approved terror attacks was indicted by a federal grand jury,” the report says.

The Zello website states that the app’s “advanced encryption ensures all communications are secure.” It adds: “Services may disclose personally identifiable information when it’s required to comply with law enforcement requests or subpoenas when you violate the Terms of Service.”

THE RUNDOWN

New York Times: Former Russian Spy Poisoned by Nerve Agent, British Police Say

Daily Beast: Peace Now? Be Careful. South Korea’s Government May Be as Deceptive as Kim Jong Un.

Defense News: Some ‘hiccups’ with engine design, but B-21 on track, Wittman says

Business Insider: Boeing’s struggling Air Force tanker program may be headed for more trouble

USNI News: Navy Working New Fleet Size Study Following Latest Strategic Reviews

Defense One: Stand Up for the Constitution: Stop Unauthorized Involvement in Yemen’s Civil War

Army Times: Army to position more armored vehicles in Europe, speed upgrades to equipment at home

Fox News: Navy begins under-ice submarine exercise off Alaska coast

CNN: Pledge to halt missile tests comes after busy year of launches

Foreign Policy: Baathism Caused the Chaos in Iraq and Syria

Military.com: US, Allies Conduct Biggest Artillery Event in Europe Since Cold War

Marine Corps Times: SECNAV, Marine Corps commandant criticize China’s expansion plans

Task and Purpose: The Marine Corps Says It’s Not Lowering Standards For Female Marines. This Photo Says Otherwise.

AP: Retention of female submariners on par with men

USA Today: Syria: Civilians continue to flee escalating violence in Ghouta

Calendar

THURSDAY | MARCH 8

7 a.m. 920 Jones Branch Dr. Cyber-Enabled Emerging Technologies Symposium with Lt. Gen. Vincent Stewart, Deputy Commander at U.S. Cyber Command. ndia.org

9 a.m. Rayburn 2118. Subcommittee Hearing on Mobility and Transportation Command Posture with Gen. Darren McDew, Commander of U.S. Transportation Command, and Mark Buzby, Administrator of the Maritime Administration. armedservices.house.gov

9:30 a.m. Dirksen G-50. Hearing on United States European Command with Gen. Curtis Scaparrotti. armed-services.senate.gov

9:30 a.m. 1616 Rhode Island Ave. NW. Global Leaders Forum: Jüri Luik, Minister of Defense of Estonia. csis.org

10:30 a.m. Subcommittee Hearing on Arlington National Cemetery – Preserving the Promise. armedservices.house.gov

11:30 a.m. 1700 Army Navy Dr. Expeditionary Warfare Division Annual Meeting with Gen. Robert Neller, Marine Corps Commandant. ndia.org

2:15 p.m. Dirksen G-50. Domestic Violence and Child Abuse in the Military. armed-services.senate.gov

5:30 p.m. 1616 Rhode Island Ave. NW. Intelligence, Innovation, and Inclusion: A Conversation with Sue Gordon, Principal Deputy Director of National Intelligence. csis.org

FRIDAY | MARCH 9

9 a.m. 1030 15th St. NW. Sanctions in the Trump Era – One Year In. atlanticouncil.org

10 a.m. 1616 Rhode Island Ave. NW. National Technology and Industrial Base Integration: How to Overcome Barriers and Capitalize on Cooperation. csis.org

10 a.m. 1616 Rhode Island Ave. NW. The Logic of American Nuclear Strategy. csis.org

12 noon. 1300 Pennsylvania Ave. NW. US Counterterrorism: From Nixon to Trump – Key Challenges, Issues, and Responses. wilsoncenter.org

4 p.m. 1616 Rhode Island Ave. NW. The Return of Marco Polo’s World: A Book Launch and Reception with Bestselling Author Robert Kaplan. csis.org

MONDAY | MARCH 12

1:30 p.m. 1616 Rhode Island Ave. NW. Discussion with the Secretaries of the U.S. Military Departments including Army Secretary Mark Esper, Navy Secretary Richard Spencer, and Air Force Secretary Heather Wilson. csis.org

TUESDAY | MARCH 13

7 a.m. 6715 Commerce St. 2018 Human Systems Conference. ndia.org

9 a.m. 1775 Massachusetts Ave. NW. Thinking the unthinkable: War on the Korean Peninsula. brookings.edu

9:30 a.m. Hart 216. United States Central Command and United States Africa Command with Gen. Joseph Votel, Commander of U.S. Central Command, and Gen. Thomas Waldhauser, Commander of U.S. Africa Command. armed-services.senate.gov

12 noon. 1201 Pennsylvania Ave. NW. Consolidating and Losing Gains in Syria. hudson.org

2:30 p.m. Russell 222. Cyber Posture of the Services with Lt. Gen. Paul Nakasone, Commanding General of U.S. Army Cyber Command; Maj. Gen. Loretta Reynolds, Commander of Marine Forces Cyberspace Command; Maj. Gen. Christopher Weggeman, Commander, Air Forces Cyber; and Vice Adm. Michael Gilday, Commander of U.S. Navy Fleet Cyber Command. armed-services.senate.gov

WEDNESDAY | MARCH 14

7 a.m. 6715 Commerce St. 2018 Human Systems Conference. ndia.org

8 a.m. 800 17th St. NW. Manufacturing Division Meeting. ndia.org

8 a.m. 1501 Lee Hwy. Mitchell Hour: Current Acquisition Challenges and Opportunities with a Discussion with Gen. Ellen Pawlikowski, Commander of Air Force Materiel Command. mitchellaerospacepower.org

9 a.m. 1789 Massachusetts Ave. NW. Present and future dangers on the eve of Vladimir Putin’s reelection with Rep. Seth Moulton. aei.org

9 a.m. 1000 Massachusetts Ave. NW. The Future of BRAC: A Conversation with Rep. Adam Smith, Ranking Member of the House Armed Services Committee. cato.org

10 a.m. House 140. Subcommittee Hearing on Fiscal Year 2019 Air Force Budget with Air Force Secretary Heather Wilson and Gen. David Goldfein, Air Force chief of staff. appropriations.house.gov

10 a.m. Dirksen 419. Subcommittee Hearing Somalia’s Current Security and Stability Status. foreign.senate.gov

2:30 p.m. Russell 232-A. Subcommittee Hearing on Department of Energy Atomic Energy Defense Activities and Programs with Lisa Gordon-Hagerty, Undersecretary For Nuclear Security, Department Of Energy, and Adm. James Caldwell, Deputy Administrator For Naval Reactors, National Nuclear Security Administration. armed-services.senate.gov

5:30 p.m. 1124 9th St. NW. Cocktails & Conversations: Why the Future of the Military is Miles Up. defenseone.com

THURSDAY | MARCH 15

8 a.m. 800 17th St. NW. Manufacturing Division Meeting. ndia.org

10 a.m. House 140. Subcommittee Hearing on Fiscal Year 2019 Army Budget with Army Secretary Mark Esper and Gen. Mark Milley, Chief of Staff of the Army. appropriations.house.gov

10 a.m. Dirksen 419. Full Committee Hearing Review of the FY 2019 State Department Budget Request and Redesign Plans with Secretary of State Rex Tillerson. foreign.senate.gov

12:15 p.m. 214 Massachusetts Ave. NE. Countering Authoritarianism and Advancing U.S. Interests in Latin America with Sen. Marco Rubio. heritage.org

1:30 p.m. 1616 Rhode Island Ave. NW. The My Lai Massacre: History, Lessons, and Legacy. A panel discussion with historians and military law experts. csis.org

4 p.m. 740 15th St. NW. Book discussion of “No Turning Back: Life, Loss, and Hope in Wartime Syria” with author Rania Abouzeid. newamerica.org

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QUOTE OF THE DAY
mdc
“Obviously we’re cautiously optimistic that there is some forward progress here, but we’ve been optimistic before so we’re going to have to watch actions and see if they match words.”
Defense Secretary Jim Mattis on the prospects of North Korea giving up its nuclear weapons.
mdc

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