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As Navy faces $848M O&M shortfall, picking what maintenance to skip is full of risk

By Megan Eckstein, for USNI News

May 27, 2016

A mid-year review of Navy operations and maintenance funding found a $848-million shortfall, forcing the Navy to restrict flying hours, defer five ship maintenance availabilities until Fiscal Year 2017, defer continuous maintenance work for two amphibious ready groups and a carrier strike group – and nearly suspend work at the service’s largest regional maintenance center.

Without enough money to continue at pace through the remainder of the fiscal year, a complex prioritization process began that looked at both lower-priority work that could be pushed back as well as what locations could absorb cuts with the least disruption.

The operations and maintenance shortfall – which totals just two percent of the Navy’s O&M budget but led to some painful cuts – consists of $500 million still needed for ship depot maintenance after work delays and growth in work package scope drove up costs, $255 million for flying hours and $91 million to extend the Truman Carrier Strike Group’s deployment in the Middle East, according to U.S. Fleet Forces Command and House Armed Services Committee documents related to a Navy readiness hearing held today.

Read more about how the cuts were selected.


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