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DEFENSE COMMUNITIES 360

Milcon Delay Contributes to Budget Savings

  • February 14, 2012
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DOD officials are counting a delay in funding planned military construction projects from fiscal 2013 to 2017 as saving $8.2 billion when compared to the previous year’s long-term spending plan.

The department is relying on the delay in funding construction projects as one of its primary areas of savings in its latest round of efficiency initiatives. Altogether, officials expect to cut $61 billion through FY 2017 by streamlining overhead, improving business practices and reducing support requirements.

The Army’s efficiency initiatives are estimated to save $18.5 billion, including:

  • delaying milcon projects and facility restoration and modernization ($5.8 billion);
  • streamlining installation support functions and reducing installation support ($5.3 billion); and
  • streamlining management headquarters and administrative support functions ($0.7 billion).

The Air Force estimates it will save $6.6 billion through better use of its resources, including $2.4 billion from delaying construction projects. The Navy’s $5.7 billion estimated savings, however, does not include a contribution from deferred construction, according to DOD’s budget request overview.

DOD and defense agencies plan to save $30.2 billion through FY 2017 from efficiency initiatives, including $0.6 billion from delaying and restructuring various facility projects.

For FY 2013, milcon spending would decline $1.8 billion from the current year to $9.6 billion under the budget proposal unveiled Monday. Of the three departments, the Army would suffer the biggest drop in milcon funding — not including family housing — declining $995 million to $3.2 billion in 2013. Air Force spending on milcon would fall $893 billion to $566 million, while the Navy’s milcon account would decrease $339 million to $1.9 billion.

Defense-wide milcon would enjoy a $433 million boost in FY 2013 to $3.9 billion, according to the budget request.

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