Compass Points - Budget & Contracts
A stronger, more capable Marine Corps
December 18, 2025
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Earlier this week the Senate took a key step toward passing the National Defense Authorization Act (NDAA), setting up a final vote in the coming days. For the Marine Corps, budget issues are all about one thing, spending money to build a stronger more capable Marine Corps. A stronger more capable Marine Corps can do more to help defend the United States.
Although exact numbers may still shift a little, here are some the things the Marine Corps will spend money on in the near future, or money that will be spent on behalf of Marine capabilities.
Deliveries of new F35s will slow.
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Congress is set to allow the military to buy 68 Lockheed Martin-made F-35s in 2025, under this year’s defense authorization bill — but would prevent the Pentagon from accepting 20 of those jets until it shows how it plans to fix several problems with the Joint Strike Fighter program.
The proposed National Defense Authorization Act for fiscal 2025, which lawmakers released Saturday would allow the Air Force to buy and accept delivery of 30 F-35As. The Marine Corps would get nine F-35Bs, which are the short takeoff and vertical landing variant of the jet, and the Navy and Marine Corps would get nine F-35Cs that can land on an aircraft carrier. The Pentagon’s original budget proposal for 2025, released in March, asked for 42 F-35As, 13 F-35Bs and 13 F-35Cs.
Lawmakers have grown increasingly impatient with the F-35 program, as problems with its Technology Refresh 3 upgrades led to a delivery halt in July 2023 that stretched on for about a year, as newly built jets piled up at Lockheed’s factory in Fort Worth, Texas.
The newest F-35s are now being delivered with an interim version of the TR-3 software and can fly combat training missions, but will not be able to fly in combat until 2025. The military is now withholding about $5 million per jet in payments to Lockheed until the new F-35s are combat-capable.
-- Marine Times
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Marines will get a pay raise.
Many outlets are reporting the FY2025 NDAA contains a 4.5 percent pay increase for all military service members, as well as an additional 10 percent increase for junior enlisted in the ranks of E1 through E4.
The bill also expands eligibility for the Department of Defense’s (DoD) Basic Needs Allowance (BNA), which is a supplemental monthly payment for qualifying service members that is intended to help military families pay for groceries and basic household necessities. This year’s NDAA increases the eligibility threshold to participate in the BNA program from 150 percent of the federal poverty line (FPL) to 200 percent.
Not only will Marine pay go up, but the number of new amphibious ships will go up as well. There has been much discussion of amphibious ships over the last several years. Congress, the Navy, and the Marine Corps are all in agreement now that new amphibs need to be constructed. Some older ships will be retired and replaced by newer ships. The total number of ships will most likely remain the same. The Navy will use a multiple ship contract.
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The Navy executed a multi-ship procurement contract for three additional San Antonio-class vessels and a contract modification to add one America-class amphibious assault ship. The America-class of amphibious assault ships is considered to be the centerpiece of Amphibious Ready Group / Marine Expeditionary Unit operations and Marine Expeditionary Brigade with accommodations for the ship’s company, troops, vehicles, and equipment. The San Antonio-class of amphibious transport dock ships are designed to embark, transport, and deploy ground troops and equipment.
. . . The Navy adopted Congress’s recommendation to use the multi-ship procurement approach which has proven successful with the aircraft carriers. The Navy says it will save $901 million by permitting Ingalls to buy equipment in quantity and in advance. In addition to providing a long-term business horizon for the yard, it also permits better planning of manpower and recruitment.
The Navy said using this approach aligns with Secretary of the Navy Carlos Del Toro’s maritime statecraft initiatives to make naval shipbuilding more cost-effective while promoting shipyard stability and investment. They highlighted the agreements will provide a stable shipyard workload well into the early 2030s, providing a consistent demand signal to vendors.
Ingalls reports that half of all its shipbuilders today are working on amphibious ships with another 650 supplier partners in 39 states providing components.
-- Maritime Executive
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While new amphibious ships are being constructed at a faster pace, USNI News is reporting that the experimental Landing Ship Medium (LSM) has had its RFP pulled. This means the LSM will not move forward now or possibly ever. The LSM was to be a key part of the controversial plan to place SIF missile units on islands near China.
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The development of a new landing ship key to the Marines Corps’ island-hopping strategy in the Western Pacific is on hold due to Navy concerns over cost, USNI News has learned.
After receiving bids from industry, the Navy canceled the request for proposals for the Landing Ship Medium, a beachable platform crucial to how the Marine Corps envisions itself operating in a conflict with China in the Indo-Pacific under its Force Design plans.
“We had a bulletproof – or what we thought – cost estimate, pretty well wrung out design in terms of requirements, independent cost estimates,” Assistant Secretary of the Navy for research, development and acquisition Nickolas Guertin said at an American Society of Naval Engineers symposium last week.
“We put it out for bid and it came back with a much higher price tag,” he added. “We simply weren’t able to pull it off. So we had to pull that solicitation back and drop back and punt.”
A Marine Corps spokesman acknowledged the difficulty in developing an affordable platform that can effectively shuttle Marines around islands and shorelines. For now, to quickly get the Marines a ship that can move them around the region, the Navy plans to buy a “non-developmental vessel” while it works on the requirements, Lt. Col. Eric Flanagan told USNI News last week.
“The Marine Corps and Navy are currently working to create an acquisition way ahead for LSM Block I that includes a schedule, cost estimate, and detailed requirements,” Flanagan said. “Affordability and delivery schedule are key factors in pursuing littoral maneuver in support of [stand-in forces]. As with all modernization efforts, our capabilities must be pursued within affordability constraints.”
-- USNI News
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In another recent contract, the Marine Corps has agreed to pay a contractor nearly $1bil to upgrade littoral warfighting systems.
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The Marine Corps is pouring $269 million into a secretive project to upgrade the service’s tactical systems to better integrate across agencies, and another $715 million to design and test its new littoral warfighting systems.
The two five-year research and development contracts, totaling roughly $1 billion, went to technology solutions company ManTech, according to a Dec. 3 release from the contractor.
The integration contract, led by the deputy commandant for information’s office, will see ManTech use its rapid prototyping process to upgrade the Marines’ tactical network, then bring the products through evaluation, demonstration, and field testing, the release said.
A Marine official declined to say just how the work will improve the Corps’ tactical network, but said it is part of a larger Headquarters Marine Corps effort to make the service the premier battlefield choice for joint terminal attack control—that is, directing air strikes and other aerial support.
-- Defense One
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What can be concluded about some of the Marine Corps' major budget and contract items?
-- Pay raise for Marines and a bigger pay raise for junior Marines? This is a big win for the Marine Corps. It helps Marines keep up with inflation. It helps the Marine Corps recruit, train, and retain high quality Marines.
-- Slow delivery of F35s? This is just one more red flag about the F35. Congress has long had concerns. In addition, Elon Musk and DOGE have already expressed doubts about the F35.
-- New contract for multiple amphibious ships? This is a big win for the Marine Corps and for the United States. Congress wants America's 9-1-1 force restored, upgraded, and enhanced. While the Marine Corps in recent years has taken its focus off the worldwide Marine Air Ground Task Force (MAGTF), the Congress is telling the Marine Corps to put its focus back on the global MAGTF.
-- Pull the LSM RFP? This may spell the end of the Landing Ship Medium and is also, at a minimum, a tremendous setback for the Marine Corps' long stalled and controversial program to place small missile units on islands in the Pacific. If the value of building the LSM was clear, it would be built. But the value of the current LSM is not clear. This is a negative vote for the entire SIF concept. It is becoming accepted that the Marine missile concept is duplicative of missile capabilities the Navy, Air Force, and Army have already deployed. The Navy may be trying to get out ahead of DOGE by cutting the LSM now. There are still too many questions about the Marine Corps' entire plan for island-based missile units.
-- Littoral Systems contracts. What exactly will the Marine Corps receive for paying ManTech $1bil over the next 5 years? The Marine Corps says the answer is "secretive" but ManTech will help design and test Marine new littoral warfighting systems. Are any new systems acquired? Are any old systems replaced? The answers are not clear. For the Marine Corps, $1bn is a large piece of funding. It is still a mystery if the juice will be worth the squeeze.
Compass Points salutes all those across the Marine Corps, the Navy, and in Congress working hard to make sure the Marine Corps has the funding it needs to help defend the United States. In both the new budget and new contracts, the Marine Corps has two big hits, the increase in pay and the increase in new amphibious ships. There are also two misses: the slowdown in F35s and the end of the LSM. But both may turn out to be blessings in disguise if they help the Marine Corps to focus on upgrading, restoring, and enhancing the global MAGTF. Finally, the mysterious $1bn to ManTech? No way to know for sure now. Only the future holds the answer.
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DEPARTMENT OF THE NAVY
FISCAL YEAR (FY) 2025
BUDGET ESTIMATES
JUSTIFICATION OF ESTIMATES
MARCH 2024
Operation and Maintenance, Marine Corps
https://www.secnav.navy.mil/fmc/fmb/Documents/25pres/OMMC_Book.pdf
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Marine Times - 12/10/2024
Defense bill for 2025 would delay F-35 deliveries
By Stephen Losey
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Maritime Executive - 09/25/2024
US Navy Awards Critical $9.6B Construction Contract for Four Amphibs to HII
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Defense One - 12/16/2024
Marines will spend nearly $1B to develop littoral warfighting, upgrade tactical systems
ManTech will do both jobs under two five-year contracts.
Meghann Myers
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USNI News - 12/17/2024
Landing Ship Medium Program Stalled Over Price, Navy Cancels Industry RFP
By Mallory Shelbourne
This article appeared on Real Clear Politics Defense a few days ago. “Taiwan and Mahan: What Determines Seapower?”
https://nationalinterest.org/feature/taiwan-and-mahan-what-determines-seapower-213928
IMHO opinion a worthwhile read regarding Naval Strategy. Mahan advance Clausewitz’s land based strategy into the realm of Naval Strategy, hence the establishment of the decisive naval battle strategy in order to exercise sea control. There is an alternate naval strategy establish by the noted Naval Strategist Julian Corbett based on his historical study books of England in the Seven Year’s War, Maritime Operations in the Russo-Japanese War 1904–05 and Some Principles of Maritime Strategy. The eye opener for this paper is the single statement; “The conventional wisdom, which is almost certainly in alignment with the Chinese People’s Liberation Army Navy (PLAN)’s wishful thinking, is naval historian Julian Corbett’s proposition that local and temporary sea control is sufficient for producing a strategic effect.” Corbett’s take on sea control is command of the sea is a relative concept, not an absolute one. Corbett distinguished between general and local, temporary and permanent control. If we ignore the words of “wishful thinking” in the above statement, my question is: Has the CCP adopted the naval strategy of Corbett?
This statistical study (which is not complete) is “A survey of every war with a significant naval campaign since 1200 validates the theory of nineteenth-century naval strategist Alfred Thayer Mahan that a decisive naval battle dramatically increases the prospects of winning a war.” However, the author’s thesis is the US must ”resist the temptation to use its blue-water fleet to intercept a sudden Chinese amphibious assault on Taiwan proper and instead concentrate on luring China’s fleet into a decisive battle under more favorable circumstances… Furthermore, the United States should not risk its blue water fleet, which needed to enforce a blockade, against a regional brown water fleet, the possible outcome of which could be a Chinese victory and the United States’ loss of naval supremacy in the Pacific.”
This study created three datasets. “The first comprises seventy-five wars involving a major maritime theatre, coded with thirty-one variables, ranging from the 1213-14 Anglo-French War to the 1982 Falklands War… The second dataset is drawn from Colomb’s 1891 Naval Warfare: Its Ruling Principles and Practices. Its units of analysis are the seventy-one planned amphibious landings, executed or not, between the Spanish Armada of 1588 to the 1879–1883 War of the Pacific … The third dataset consists of ninety-three planned modern amphibious operations from the Japanese landings at Wuhan in 1938 to the 2012 Kismayo Battle between Kenya and Somalia and primarily focused on the U.S. Pacific Theatre of the Second World War.” Impressive to say the least.
A question that pops into my head after reading this article is how can two Canadian academics beat the US military analysis companies (CSIS, ISW, etc.) and military education systems (NWC and the USMC University) to a timely study like this? Has the NWC and the USMC University ask for access to these databases? The authors state “All of these datasets are freely available by email on the condition that improvements are shared with the authors.”
The author’s thesis is the US must ”resist the temptation to use its blue-water fleet to intercept a sudden Chinese amphibious assault on Taiwan proper and instead concentrate on luring China’s fleet into a decisive battle under more favorable circumstances.” The study historical statistics shows that the CCP has a 5% chance of achieving a surprise invasion of Taiwan… and “a 24 percent likelihood of being undeterred and taking the risk of conducting an amphibious attack against Taiwan. There is a further 24 percent likelihood that the United States would unadvisedly intercept, in which case China would have only an 11 percent chance of capturing Taiwan using only local sea control. If the conquest of Taiwan is successful, then China has a 17 percent chance of being able to leverage its new bases against any approach by the U.S. Navy.”
As I stated before, what got my attention is the authors statement: “The conventional wisdom, which is almost certainly in alignment with the Chinese People’s Liberation Army Navy (PLAN)’s wishful thinking, is naval historian Julian Corbett’s proposition that local and temporary sea control is sufficient for producing a strategic effect.” Julian Corbett’s thesis on Naval Strategy is very different from Mahan’s decisive battle strategy. I remember a gentlemen by the name of Bill Lind recommending that all Marine Officers should read Corbett’s book: England in the Seven Year’s War (the first Global War) that demonstrates how to win a war by controlling the SLOCs vs the decisive battle. I have to wonder if Col John Boyd (and USMC Warfighting Doctrine) would be more comfortable with Corbett than with Mahan. Seems to me the flexibility and adaptability of the MAGTF is the best counter to either Mahan or Corbett. I am also beginning to wonder if the CCP is reading Corbett.
This post certainly highlights why a real hard look at not only ongoing procurement, but future process's for procurement, for the Corps and DOD in the main need to be looked at in a stern manner.
First the good news. Marines will get an increase in pay and apparently a cost of living expense increase. It would appear some admission that the Navy ergo the Marine Corps needs more amphibious lift. So more dollars for ships. But, caveat, not really more, just newer. Net net? Zero gain? Happy to be schooled up, if this an incorrect understanding. The new fixed wing aircraft, doesn't fly well. Hmmm billions for a jet that doesn't fly well. How long before someone somewhere is held accountable? Right, don't hold out collective breath.
Better news, the LSM is dead for the moment. Making SIF and MLR harder to justify. Fear not the consultants are standing by, to advise that we really need armor, artillery, engineers etc., so let's go dialing for those dollars! It would seem to make FD2030 harder to justify and execute. Fear not the same guy that brought you "Being a Marine is bonus enough" is unlikely to admit the error of the plan.
As the specter of a new administration looms, and much talk has been generated about the use of fiscal disciplines for the Federal Government, is there anything in this post that says, we don't need a DOGE, or OMB, or GAO (the good ole honest GAO, we can trust them, they're not like the others!), that we don't need just a top to bottom, bottom to top review of a nearly trillion dollar annual defense budget? Further to Douglas Rape's analogy about a brick in the wall, a good house builder knows in his head, even before looking at the detail plans, what the house is going to look like when finished. What is our house going to look like when finished? When it is said the military can't run like a business that is sort of true, but a military as an entity must be held to a very much higher standard than most businesses. How can a military that cannot count, maintain, retain or care for the resources it is allocated, be trusted with more of those precious resources? It apparently can not, so now the wise guys are coming in to hold it accountable. People are not going to like the down sizing. Let's hope General Victor Krulak was correct, and American's will want a Marine Corps when all is said and done.