Following is a list of some major actions proposed in the Obama administration's budget for fiscal 2013, which begins Oct. 1, although the U.S. Congress will determine the final shape of defense spending:
- End procurement of the C-27J medium-sized cargo aircraft built by L-3 Communications Holdings Inc and Alenia, a unit of Italy's Finmeccanica SpA, and divest the current fleet, shifting that airlift and support function to the larger C-130 transport plane built by Lockheed Martin Corp . The move would save $480 million in 2012.
- End a $6.4 billion Boeing Co program to modernize all previous generations of the C-130 transport plane and standardize cockpit instruments.
- Reduce planned modernization of U.S. Navy cruisers and decommission seven of the warships, a move that would save $1.5 billion over the next four years.
- Generate long-term savings of $3.8 billion by terminating a new weather satellite system being built by Northrop Grumman Corp, launching two existing older satellites that are currently in storage.
- Generating $15.1 billion over the next five years by slowing procurement of Lockheed's F-35 Joint Strike Fighter.
- Ending production of Northrop's Global Hawk high-altitude unmanned surveillance plane, given its higher operating costs, and shifting the surveillance work to the manned U-2 aircraft. Work on the Navy's version of the plane would continue.
- Cutting Army plans to upgrade 6,000 of its workhorse Humvee trucks, a move that would save $849 million over the next five years. The Army will focus instead on developing a replacement for the Humvees.
- Eliminating procurement plans for Lockheed's Joint-Air-to-Ground Missile program, but completing its development through 2015. The move would save $1.6 billion.
- Putting Raytheon Co's Sea-based X-Band Radar, a giant floating radar that is part of the U.S. missile defense system, on "limited test support" status, starting in the fourth quarter of 2012. Maintaining the system for testing, rather than terminating it, would save $500 million, while retaining the ability to recall it to an active operational status if needed.
- Cancelling the Air Force's plans to develop and buy a new light attack and armed reconnaissance airplane.
- Cutting procurement of eight Joint High Speed Vessels built by Australia's Austal, and capping the program at 10 ships, generating savings of $1.4 billion over the next five years.
Copyright Reuters, 2012