# Industrial Base Analysis and Sustainment (IBAS) Support

**R-2A activity** of project 819 — Industrial Base Analysis and Sustainment  
**Program element:** 0607210D8Z — Industrial Base Analysis and Sustainment Support  
**Component:** Defense-Wide · **Budget Activity:** 7  
**Vintage:** President's Budget PB2027  
**Canonical URL:** https://hitchintel.com/programs/0607210D8Z/819/a0  
**Parent:** https://hitchintel.com/programs/0607210D8Z

## Summary

This activity requests $1.18B in FY2027, 100% of project 819, up 47% on FY2026. The R-2A exhibit describes it across FY2025–FY2027, including what the FY2027 money is planned to buy.

## What the FY2027 request buys

**FY2027 planned work.** 1. Strategic & Critical Minerals Critical Materials and Rare Earth Elements (REE): Continue efforts initiated in prior years to establish, sustain, and improve domestic minerals production capabilities and value-added manufacturing in support of defense and essential commercial product production. Prioritize investment of current funding allocation in midstream production of minerals products through metallization, in line with the administration’s goal of a domestic mine-to-material supply chain. Additional funding in FY 2027 would enable addressing numerous additional priorities including support of additional domestic minerals processing industry by funding the development of supply for precursor and reagent chemicals used in critical minerals processing. Expand support for critical upstream capabilities in response to market forces and anticipated increased demand. Continue to address new supply chain challenges, including non-allied export controls on materials and technology as well as dramatically increased costs and lead times. Begin testing and continue engineering/construction of domestic minerals processing lines in support of the DoW’s efforts to address supply chain risks associated with the dependence on foreign non-allied countries. Continue efforts initiated in prior years to reduce dependence on non-allied countries for essential equipment and materials for the processing of REEs. Continue to support and explore prototype technologies and processes for REE separation and processing to support new domestic sources, with increased emphasis on recycling. Support qualification efforts for domestic REE suppliers to become qualified for use in DoW supply chains. Develop domestic Germanium and Gallium sources and processing infrastructure to refine and purify these materials for use in microelectronics. 2. Kinetic Capabilities IBAS investments will expand supply chains and the industrial base of the top 11 missiles critical to the defense of the nation. Focus will be on tier 2–4 suppliers and known bottlenecks to enable a steady manufacturing capacity improvement to replenish inventories and provide our warfighters engaged in combat operations the tools to win on the battlefield. Missile efforts will focus on establishing a second source solid rocket motor (SRM) capability while boosting component manufacturing of rocket nozzles, actuators, and thermal batteries. IBAS will continue to implement cost reduction and production capacity improvements of hypersonic missiles within the defense industrial base. Projects include Thermal Protection System (TPS) machining changes, advanced processing for affordable TPS, and adoption of next generation TPS and payload adaptor supporting a 2nd source all up round, SRM integration, and flight tests for large hypersonic missiles. Additionally, IBAS will continue capacity improvements for air-launched hypersonic missile supply chain components and platform integration. IBAS will support manufacturing capacity for mid-range scaled hypersonic missile system prototypes with a resilient supply chain. Investments will expand the group 3 tactical reconnaissance and one way attack small, unmanned aircraft system (sUAS) industrial base focusing on delivering improved systems to warfighters for rapid operational assessments. IBAS will prioritize the onshoring of small sUAS motors and batteries to reduce Chinese market dominance by targeting domestic companies manufacturing sUAS components sourced by the US or our allies. IBAS will continue supporting the munitions & energetics OIB ranging from small arms to 155mm, low-cost weapons, and munition enhancements. IBAS funding adds capabilities to build low-cost options to combat the growing unmanned systems threat from the air, surface, underwater, and ground domains with improved munitions, one-way-attack semi-autonomous systems, and counter-swarming autonomy capabilities to enable cost effective detection, tracking, identification, and mitigation options. Counter sUAS capabilities will prioritize scaled directed energy weapons aligned to the Joint Interagency Task Force 401. 3. Microelectronics Upstream Materials Security – Funding and establishment of projects that bolster the domestic PrCB and/or advanced substrate defense industrial base. Work in this effort will address critical DIB supplier bottlenecks in the areas of sub-tier manufacturing capacity improvements for electronic products, manufacturing capability expansions to provide expanded product offerings for the DoW and establish domestic sources for critical upstream manufacturing materials. Secure Packaging – Planned efforts will focus on providing access and availability to secure facilities that can perform one or more of the advanced packaging fabrication processes to include Advanced Packaging and Heterogenous Integration, Heterogenous 2.5D Integration, and Heterogeneous 3D Integration. Advanced RF Prototype Sensor Development – Efforts will continue developing a Prototype X-band, Ku-Band, Multi-Band Radars, and RF Opto-electronic systems for Homeland Cruise Missile Defense to be used for the Fire Control Radar program. Current activity analysis determines that enhancements targeting transitioning capabilities will be necessary during FY 2027 activities. During FY 2026, Low Rate Initial Production (LRIP) activities to support NORAD and USNORTHCOM will include addressing supply chain risks by adapting commercial technology to defense applications and improvements to provide critical Size, Weight, Power and Cost (SWAP-C) advantages. Microelectronics Digital Engineering – Planned efforts for FY 2027 will include awards for this project to modernize the way that the DoW specifies and acquires microelectronics by developing digital engineering methodologies.

**FY2026 to FY2027 change.** The increase of $375.636 million will fund higher Departmental priorities in Strategic & Critical Minerals, Kinetic Capabilities, Microelectronics, Manufacturing (Castings & Forgings, Extended Deterrence), Workforce, and Energy Storage & Batteries.

## Before the request year

**FY2026 plans — current year.** 1. Strategic & Critical Minerals Critical Materials and Rare Earth Elements (REE): Continue efforts initiated in prior years to establish, sustain, and improve domestic rare earth capabilities and value-added manufacturing in support of defense and essential commercial product production. Prioritize investment of current funding allocation in midstream production of REE products through metallization, in line with the administration’s goal of a domestic mine-to-magnet supply chain. Support efforts to reshore various mineral processing efforts to support the aluminum and zinc industries as well for specialty by-products including but not limited to gallium, germanium, vanadium, and tungsten. To support the broader domestic mining and mineral processing industry, developing and expanding the workforce will help ensure that the developing industry will have sufficient labor to enable the industry to produce materials domestically. Additional funding in FY 2026 enables addressing numerous additional priorities including support of domestic minerals processing industry by funding the development of supply for precursor and reagent chemicals used in minerals processing. Expand support for critical upstream capabilities in response to market forces and anticipated increased demand. Continue to address new supply chain challenges, including non-allied export controls on materials and technology as well as dramatically increased costs and lead times. Begin testing and continue engineering/construction of domestic processing lines in support of the DoW’s efforts to address supply chain risks associated with the dependence on foreign non-allied countries. Continue efforts initiated in prior years to reduce dependence on non-allied countries for essential equipment and materials for the processing of REEs. Continue to support and explore prototype technologies and processes for REE separation and processing to support new domestic sources, with increased emphasis on recycling. Support qualification efforts for domestic REE suppliers to become qualified for use in DoW supply chains. Develop domestic Germanium and Gallium sources and processing infrastructure to refine and purify these materials for use in microelectronics. 2. Kinetic Capabilities IBAS investments will continue targeting the capability and affordability of hypersonic weapon systems in coordination with the Services and OSW stakeholders. These efforts will focus on improving production capacity and cost reduction of the Air Force Air-launched Rapid Response Weapon (ARRW) to address the high demand operational needs in support of Combatant Commander. IBAS will increase the production capacity of solid rocket motors (SRM), SRM components, and propulsion to meet surge expectations. FY 2026 plans will initiate low-cost hypersonic prototyping to support INDO-PACOM operational needs. IBAS will advance manufacturing improvements of group 3 tactical reconnaissance UAS mass production options coupled with group 3 one-way-attack UAS to support ongoing combat operations abroad and in support of counter cartel operations. IBAS will initiate engagements with OIB partners to modernize manufacturing at our nation’s depots and arsenals. 3. Microelectronics Upstream Materials Security – One such investment includes facility modernization to save the only electrodeposited copper plating facility in North America from permanently closing in the Spring of 2025. Based on stakeholder interviews with the DoW Primes and their sub-tier suppliers, it is estimated that this early IBAS investment prevented 6–18-month delays for over 30 DoW programs and deepened dependency on foreign sources. Continued work in this effort will address critical DIB supplier bottlenecks in the areas of sub-tier manufacturing capacity improvements for electronic products, manufacturing capability expansions to provide expanded product offerings for the DoW and establish domestic sources for critical upstream manufacturing materials. Secure Packaging - IBAS has successfully initiated onshoring of two key strategic advanced packaging technologies: 300mm wafer preparation and bumping, and fan out wafer level packaging technology. These existing investments are already impacting DoW programs of record, by enabling the manufacturing of novel hardware security solutions that require specialized packaging processes otherwise inaccessible in the DIB. Advanced RF Prototype Sensor Development – Efforts will continue developing a Prototype X-band and Multi-band Radars for Homeland Cruise Missile Defense to be used for the Fire Control Radar program. Current activity analysis determines that enhancements targeting transitioning capabilities will be necessary during FY 2026 activities. During FY 2026, Low Rate Initial Production (LRIP) activities to support NORAD and USNORTHCOM will include addressing supply chain risks by adapting commercial technology to defense applications and improvements to provide critical Size, Weight, Power and Cost (SWAP-C) advantages. Enterprise Parts Management – Efforts will continue developing Enterprise microelectronics parts repository for DMSMS issue resolution and case management. Current activity includes delivery of Minimum Viable Product (MVP) 1 to support initial Service user needs. 4. Manufacturing (Castings and Forgings, Extended Deterrence, Qualification Certs) In FY 2026, the IBAS program leveraged a significant increase in funding to deliver even more changes to Industry 4.0-enabled production and metrology processes, automated/robotics equipment and processes, and computational tools that speed and supplement the production of cast and forged products, as well as initial development and testing of advanced/alternative materials, products, and processes, including those with improved corrosion-resistance.

**FY2025 accomplishments.** FY 2025 Plans: 1. Workforce Industrial Skills Development and Acceleration (National Imperative for Industrial Skills (NIIS) initiative): Over 50 NIIS portfolio pilot projects (ongoing plus new awards) will be executed during FY 2025, iteratively testing, validating, and refining multiple elements or segments of the initiative’s ‘Industrial Skills Workforce Development Model.’ The intent is to produce increasing levels of real-world system maturity, harmonization/integration and effectiveness as depicted in the model. In continued actions following-up on recommendations from the OASD(IBP) report, “Career and Technical Education (CTE) Pilot Program, Report to the House and Senate Appropriations Committees, August 2023,” the Innovation Capability and Modernization (ICAM) Office will continue to invest in creating new and expanding existing outreach and education programs to get more students into technician-level CTE pipelines and partner with other government organizations (for example, the Drug Enforcement Administration was added as a new partner in FY 2024). Investment will create and expand age-appropriate K-12 baseline industrial skills programs that introduce and attract students to defense industry careers and essential skillsets starting in middle school. Submarine Industrial Base Workforce: IBAS, in partnership with the Navy submarine enterprise, will continue to invest in the industrial base’s development of the necessary recruitment functions, education and training programs, and worker retention/wrap-around support for critical workforce development needs. The objective is to accelerate the path to establishing at-scale regional training systems and other workforce pipeline delivery capability to provide sufficient numbers of “ready to work” high skill technical tradespeople supporting production levels meeting the nuclear Navy’s submarine modernization requirements. Using informed data analytics, we will collaborate with all appropriate government agencies to identify new workforce supply sources so that all Americans can prosper from jobs in the MIB. Efforts will continue to focus on priority states/regions where key suppliers reside. Continuing to build-out regional training systems in New England, Virginia, and the Great Lakes region, IBAS will expand its focus to include the Gulf Coast, West Coast, Hawaii, and broader Indo-Pacific regions. IBAS investments will address critical Indo-Pacific workforce needs focused heavily on the region’s sustainment mission, such as the introduction of advanced training programs and the associated curricula for skilled professionals in the realms of welding, machining, non-destructive testing, fiber optics and additive manufacturing. This strategy relies on the use of regional coordinators to help establish and improve essential organizational regional relationships and better align DoD, other U.S. Government agency capabilities, state/local, and nongovernmental investments in each defense-critical region. FY 2025 efforts will include a contract awarded to supplement the submarine industrial base (SIB) with an advanced manufacturing training suite in Oahu and will also explore infrastructure, talent pipelines, and training systems in Guam. FY 2025 efforts will include maintenance, repair, and operational sustainment of capabilities developed in previous years, and a contract awarded to supplement the submarine industrial base (SIB) with an advanced manufacturing training suite in Oahu and will also explore infrastructure, talent pipelines, and training systems in Guam. Associated data analytic initiatives in the Indo-Pacific region will guide future investment in this critical region. 2. Critical Minerals & Materials Critical Materials and Rare Earth Elements (REE): Continue efforts initiated in prior years to establish, sustain, and improve domestic rare earth capabilities, value-added manufacturing, and essential commercial product production. These critical activities must continue despite new supply chain challenges including non-allied export controls on materials & technology as well as dramatically increased costs and lead times. Continue the design and scaling of two domestic REE processing lines in support of the DoD’s efforts to address supply chain risks associated with the dependence on rare earth elements from foreign non-allied countries. Begin efforts to qualify and support stockpiling of magnets for defense applications. Continue development of technologies for extracting critical minerals from alternative and sustainable feedstocks such as acid mine drainage and coal ash tailings. Initiate efforts to reduce dependence on non-allied countries for essential equipment, minerals, and materials for the processing of REEs. 3. Castings and Forgings (C&F) and Machine Tools Continue to increase the pace and scope of research into ways to supplement or obviate the need for cast and forged products, and to incorporate Industry 4.0 capabilities (including but not limited to industrial automation and robotics) more broadly into production of those products. Continue to work with the Services to accelerate metalworking process improvement, expand workforce development efforts, revitalize casting and forging-related capabilities for materials processing, welding/joining, and additive manufacturing. Continue to develop modern computational tools to support advanced applied metallurgy, work with industry and academia to reduce barriers to entry posed by legacy qualification processes for materials and production processes, evaluate and invest in projects for new metal alloys and metal working processes that will improve performance and cost-effectiveness. Complete several projects to improve materials modeling, production, and inspection capabilities at key suppliers of aviation and ground combat systems. Continue and enhance work with the Air Force to create and evaluate production processes for critical alloy powders.

## Funding

| Fiscal Year | Estimate Type | Amount ($M) |
|---|---|---|
| FY2025 | Actual | 975.1 |
| FY2026 | Enacted | 801.7 |
| FY2027 | Request | 1,177.4 |

> Prior, current and budget year only — an R-2A activity carries no five-year plan. It sums exactly into its project in the request year and not necessarily in any other.

## Source & machine access

- **Source:** FY2027 Office of the Secretary of Defense RDT&E Budget Justification, Exhibit R-2A, PE 0607210D8Z project 819 (PB PB2027). Narrative is the government's own text.
- **No marks, no contractors at this grain** — congressional marks land on the program element and R-3 performers on the project.
- **MCP:** `mcp.hitchintel.com` — `budget_get_activity`.

*HitchAI is an independent intelligence service, not affiliated with the U.S. Department of Defense. Budget figures are requests/estimates, not obligations.*