HASC Seapower & Projection Forces Markup Expands Parameters of Sea-Based Deterrence Fund

The House Armed Services Seapower & Projection Forces Subcommittee markup of the Fiscal Year 2016 National Defense Authorization Act gives the Navy Secretary increased power to push money into the Sea-Based Deterrence Fund and allows the fund to incorporate “cross-program coordinated procurement efforts.” The FY 2015 NDAA authorized only the Defense Secretary to shift money into the Fund. Sean Stackley, the Assistant Navy Secretary for Research, Development and Acquisition, ordered a study which, in part, explores ways to develop common pieces of the Ohio-class Replacement and Virginia Payload Module to keep the programs affordable and on schedule.

 

The legislation allows Navy Secretary Ray Mabus to enter into contracts known as “economic order quantity contracts” with private shipyards and other commercial or government entities to achieve efficiency derived from major component or subsystem development. The economic order quantity is the order quantity that minimizes total inventory holding costs and ordering costs. “The authority under this subsection extends to the procurement of parts, components, and systems (including weapon systems) common with and required for other nuclear powered vessels under joint economic order quantity contracts,” the mark states. The mark does not amend the portion of the FY 2015 NDAA that green-lights $3.5 billion in unobligated balances from FYs 2014, 2015 and 2016 to be put into the account. Appropriators have not moved money into the account.