REPORT OF THE SECRETARY OF THE NAVY
ENDURING IMPACT . . . FROM THE SEA: READY, CAPABLE, AND INNOVATIVE TODAY AND INTO THE 21ST CENTURY
Events over the past year reaffirmed the enduring role that forward deployed, combat ready Naval Forces play in shaping the strategic environment. The presence of the Navy-Marine Corps Team around the world underscored American resolve, bolstered strategic and conventional deterrence, contained crises, reassured allies and potential coalition partners, and enhanced regional stability.
As reflected in Table 33, the Navy-Marine Corps Team remained the force of choice in response to international crisis in 1996. For example, in March the USS Nimitz (CVN-68) and USS Independence (CV-62) Carrier Battle Groups (CVBG) moved into the South China Sea in a measured, but swift response to tensions in the Taiwan Strait. From April through August, the 22nd Marine Expeditionary Unit (Special Operations Capable) [(MEU/SOC)] and the USS Guam (LPH-9) Amphibious Ready Group (ARG) evacuated over 750 American citizens and foreign nationals from war-torn Liberia and the Central African Republic. And in September, the USS Carl Vinson (CVN-70) CVBG was at the center of a joint response to Iraqi aggression against the Kurds. Daily, America's Naval Forces demonstrate their ability to support and defend U.S. national security interests through highly visible forward presence, expeditionary readiness, and potent on-scene power projection capability from the sea.
The ability to execute our strategy and support such diverse missions ultimately
rests on the continued dedication and professionalism of our Sailors and
Marines. The complexity of today's warfare environment requires the talents
of quality personnel led by innovative leaders and a continuing allegiance
to the core values of Honor, Courage, and Commitment. We must continue to
attract and retain high caliber people to remain the world's preeminent naval
power. Consequently, we are dedicated to three principles in support of our
personnel -- acquiring leading-edge equipment, providing realistic training,
and emphasizing quality of life initiatives for our Sailors, Marines, Civilians,
and their families.
| Table 33 |
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| DATE | OPERATIONS | FORCES | LOCATION |
| Jul 92-Mar 96 | PROVIDE PROMISE (Humanitarian Operations) | America, George Washington CVBGs; Wasp, Guam, Saipan ARG: 22nd, 24th, 26th MEU/SOC | Bosnia |
| Aug 92-Present | SOUTHERN WATCH (Enforcement of No-Fly Zone) | America, Nimitz, George Washington, Carl Vinson, and Kitty Hawk CVBGs, and 2D MAW Units | Persian Gulf |
| Apr 93-Present | DENY FLIGHT transitioned to DECISIVE EDGE transitioned to DELIBERATE GUARD (Enforcement of No-Fly Zone) | 2D MAW Units, Carrier Air Wings, and MP Sqdns. | Bosnia |
| Jun 92-Present | SHARP GUARD transitioned to DECISIVE ENHANCEMENT
transitioned to DECISIVE ENDEAVOR (Enforcement of UN Sanctions) |
America, George Washington CVBGs; Wasp, Guam, Saipan ARG: 22nd, 24th, 26th MEU/SOC | Adriatic Sea |
| May 94-Feb 96 | SEA SIGNAL (Migrant Operations) |
II MEF Units | Cuba |
| Mar 95-Apr 96 | UNMIH (Reestablishment of Haitian Infrastructure) | Globally sourced Marine linguist/staff personnel | Haiti |
| Oct 95-Present | FULL ACCOUNTING (Accounting of POWs/MIAs) | 1st MAW | Southeast Asia |
| Aug 95-Present | VIGILANT SENTINEL (Response to Iraqi Threats) | I MEF Units, MPS-2 | Southwest Asia |
| Dec 95-Present | JOINT ENDEAVOR transitioned to JOINT GUARD (Enforcement of Dayton Accord) | 22d, 24th, 26th MEU/SOC, Marine Corps Security Forces, I and II MEF UAV Units, NMCB 133 and 140 | Bosnia |
| Mar-Apr 96 | Flexible Deterrent Option | Independence and Nimitz CVBGs | Taiwan Strait |
| Apr 96-Present | USSPTGRPHAITI (Support for Haiti Operation) | MARFORLANT units | Haiti |
| Apr-Aug 96 | ASSURED RESPONSE (Liberian NEO) | 22d MEU/SOC, SPMAGTF Liberia, Guam ARG, II MEF Units | Bosnia |
| May-Aug 96 | QUICK RESPONSE (Central African Republic NEO) | 22d MEU/SOC, SPMAGTF Liberia, Guam ARG, II MEF Units | Liberia |
| Jun 96 | 21st Olympiad | Chemical-Biological Incident Response Force | Atlanta, Georgia |
| Jul-Oct 96 | TWA 800 Salvage Operations | Grasp, Grapple, Oak Hill, Trenton, EOD Teams | Long Island, New York |
| Jul 96-Present | NAVCENT Security Enhancement | USMC Security Forces | Bahrain |
| Jul 96-Present | DESERT FOCUS (Counterintelligence support to JTF SWA) | Det I MEF | Southwest Asia |
| Jul 96-Present | PACIFIC HAVEN (Kurd Refugee Relocation) | MARFORPAC and II MEF units | Guam |
| Sep 96 | DESERT STRIKE (Response to Iraqi Aggression) | Shiloh, Laboon, Carl Vinson, Russell, Hewitt. Jefferson City | Persian Gulf |
| Sep 96 | Domestic Fire Fighting Support | I MEF Units | Oregon |
| Sep-Oct 96 | MARATHON (Support for USCG Migrant Intercept Operations) | II MEF Units, Marine Corps Security Forces | Bermuda, Cuba |
| Sep 91-Present | Maritime Interdiction Operations | America, Nimitz, George Washington, Carl Vinson, and Kitty Hawk CVBGs | Persian Gulf |
| Oct 96 | AeroPeru Flt 603 Salvage Support | UNITAS 96 EOD Det | Peru |
| Continuous | Counterdrug Operations | Navy/Marine Corps Active/Reserve Air, Surface, and Ground Units | Caribbean, East Pacific, U.S. Borders |
The Department of the Navy is proud of its heritage of innovative thinking and long-standing contribution to national security. Our commitment to maintaining an immediate response capability for national security tasking, anytime and anywhere, remains paramount. As a member of the Joint Team, and with Joint Vision 2010 as a guide, the Department of the Navy is aggressively preparing for the future warfare environment to ensure continued operational primacy.
Equally important to our future success are the programmatic and acquisition decisions we make today. Detailed coordination between the Navy and Marine Corps during the Department's budget preparations, combined with streamlined acquisition procedures, will provide the Naval Services of the 21st century with modern, efficient, and affordable equipment.
NAVAL EXPEDITIONARY FORCES: PERSUASIVE IN PEACE, COMPELLING IN CRISIS, CAPABLE IN EVERY ASPECT OF WAR
The National Military Strategy defines two national military objectives -- promoting stability and thwarting aggression -- and three sets of tasks -- peacetime engagement, deterrence and conflict prevention, and fight and win. Because we are a maritime nation with vital economic and security interests that span the earth's oceans, we must meet these objectives through the complementary concepts of overseas presence and power projection. Naval Forces are ideally suited to execute these concepts. Indeed, they are the centerpiece of the strategic guidance contained in the Naval White Papers . . . From the Sea and Forward . . . From the Sea.
Persuasive in Peace
Naval forces play a unique and vital role in maintaining U.S. overseas presence. Their full combat capability, inherent mobility, and capacity for self-sustained operations make them an expeditionary force without peer. Consequently, a balanced forward deployed Naval Force serves multiple purposes. It can simultaneously reassure friends and allies, build and enhance coalition interoperability, deter potential aggressors, and respond effectively to crisis or war. On any given day, roughly 30 percent of our Navy and Marine Corps -- over 50,000 Sailors and Marines and 100 ships -- are deployed throughout the world. Our CVBGs, ARGs, and MEUs are forward deployed to achieve near- continuous presence in three major regions: the Mediterranean Sea, the Persian Gulf/Indian Ocean, and the Western Pacific. In Japan, we maintain a Marine Expeditionary Force (MEF), as well as the forward stationed USS Independence (CV-62) CVBG and USS Belleau Wood (LHA-3) ARG. Finally, the Navy's Western Hemisphere Group is specifically focused on supporting our nation's counterdrug efforts, as well as strengthening and improving our ties to Caribbean and South American friends and allies. From these strategically placed forward locations, Naval Forces can quickly deploy to crisis areas outside these regions.
Naval Forces participate in the full gamut of peacetime engagement activities, such as multinational exercises, personnel exchanges, and port visits. These activities provide enormous benefits through military-to-military contacts, as well as promoting trust, respect, and good will in the local communities. While actively supporting the objectives of peacetime engagement, the presence of the potent power projection capabilities of a CVBG or ARG/MEU (SOC) often reshape situations before they reach the crisis level. Additionally, Navy and Marine Corps cooperative efforts with the sea, land, and air forces of friends and allies are a key ingredient for successful coalition building. Because sea-based forces do not require sophisticated support facilities ashore to operate with other nations, the burden imposed on an exercising partner's infrastructure is limited. Ultimately, these activities provide tangible evidence of our commitment to peace and regional security.
As a key tenet of the National Military Strategy, our military forces must present a credible deterrent to an adversary's most potent weapon. As long as nuclear weapons are deployed in a manner that threatens our homeland or other national interests, we must continue to discourage their proliferation and use. Fundamental to overall nuclear deterrence is our highly mobile and capable strategic ballistic missile submarine force. This force, able to remain undetected at sea, is the most survivable element of the nation's strategic nuclear triad.
The prevention of conflict through deterrence remains a primary function of the Navy-Marine Corps Team, intrinsically and inseparably linked to their ability to fight and win. Their high profile while forward deployed provides a deterrent effect against intimidation and aggression that facilitates regional stability, including the economic stability so vital to our nation. Forward deployed Naval Forces also serve as a concrete symbol of the powerful joint forces that can be projected from the continental United States. Naval presence and capabilities combine to make our forces persuasive in peace.
Compelling in Crisis
Naval Forces conducting peacetime engagement simultaneously serve the nation by providing immediate crisis response capabilities. Their expeditionary character becomes more pronounced when nations are reluctant to offer visible support or grant access for fear of reprisal or because warning is ambiguous. Operating in an uncertain world, the Navy-Marine Corps Team -- highly mobile, self-sustaining, and responsive in nature -- is a prudent first choice when our national interests are threatened. Naval Forces, on-scene at the onset of a crisis or conflict, represent the nation's willingness to act and share in the risks. To limit the extent of a crisis, U.S. leadership is provided with a wide range of options including strike operations, naval fires, amphibious operations, special operations, and Marine Air-Ground Task Forces (MAGTF) operations ashore.
An increasingly important issue in promoting regional stability is our emerging ability to extend theater missile defenses (TMD) to joint forces, friends, and allies. Mobile sea-based TMD will enhance the security of allies and friendly nations by providing defense against missile attacks by rogue states. Building on the existing Aegis system, the Navy is vigorously pursuing area and theater missile defense capabilities.
The Navy-Marine Corps Team remains a powerful, visible, and credible instrument for supporting national policies and preventing conflict. Forward deployed Naval Forces, expeditionary and adaptive in nature, are the preeminent force for responding to impending crises. When necessary, they can bring sustained, decisive force to bear. Naval Forces represent our nation's global interests -- most of which reside within the littorals. Their on-scene capability, ready to respond immediately to the nation's tasking, makes them compelling in crisis.
Capable in Every Aspect of War
The ability to fight and win against any adversary is the irreducible core of what the nation's military must do. Naval Forces are an integral part of this joint capability. When deterrence fails, forward deployed Naval Forces, working with other U.S. and coalition forces, must blunt an adversary's offensive, prevent the consolidation of his position, and protect friendly forces until additional combat forces can arrive in theater. Naval Forces must also ensure maritime superiority and provide the strategic sea lift to transport joint and allied forces into theater. The sea control, strategic sealift, and forced entry capabilities inherent in our Naval Forces are essential to Joint Force dominant maneuver. The threat of amphibious operations disrupts enemy planning and execution, forcing him to either concentrate his forces at the most likely avenues of approach or spread his defenses thin to cover the entire threatened area. In either case, the enemy's action or inaction will expose gaps and vulnerabilities that joint or combined forces can exploit.
Maneuver operations from the sea provide an opportunity to use unique Naval advantages in executing precision engagement. Naval precision engagement underscores the Navy-Marine Corps Team's ability to tailor force packages for specialized and task organized missions, to employ special operations forces and MAGTF, and to deliver extremely accurate and high volume naval fires.
Naval Forces also provide the defensive umbrella under which joint and combined forces can safely deploy during a conflict. These forces counter enemy threats from the air, land, or sea. Developing capabilities will respond to information warfare and ballistic missile threats. Beyond defensive measures, Naval contributions to full dimensional protection will include enhanced offensive measures to eliminate potential threats at the source. Sea-based defenses will, in many circumstances, be the only capability available at the onset of a crisis. They provide critical protection to forces flowing into theater by airlift, sealift, or prepositioning ships. Overall, Naval Forces provide critical contributions during all phases of a conflict, and demonstrate a wide range of capabilities in every aspect of war.
PEOPLE: THE MEANS TO SUCCESS
The most vital resource of the Navy-Marine Corps Team is our people -- active, reserve, and civilian. The intense demands of a modern, high technology Naval Force operating in a complex foreign littoral environment requires highly motivated, well-trained and responsibly-led Sailors and Marines. The daily sacrifices of our people, who are deployed around the globe to ensure the security of the United States, deserve the best possible career and family support. Wise investment of resources in people and their families will maintain the Navy-Marine Corps Team as the world's preeminent Naval Force and will ensure the Department of the Navy enters the 21st century on a solid foundation.
The Department's readiness depends on the ability to attract and retain high quality people. While challenging, 1996 was a highly successful year for Navy and Marine Corps recruiting. Navy and Marine Corps recruiters achieved 100 percent of their enlisted accession goal through targeted marketing. The strategy successfully procured qualified individuals for particular skill areas needed most in the Fleet and Fleet Marine Forces, while achieving significant progress in recruiting minorities. Minority accessions will be the most representative in the Department's history. Although low national unemployment and other changes in demographics combined to create a tough recruiting environment, the academic quality of enlisted recruits remained high; 95 percent possessed a high school diploma and more than 66 percent scored in the upper half of the Armed Forces Qualification Test.
The year was also successful for officer recruiting, with nearly all programs attaining 100 percent of their goal. Medical recruiting accessed 36 percent more physicians and dentists than just one year ago. Similar increases were achieved for Pilots and Naval Flight Officers.
To continue the positive momentum of the Navy-Marine Corps recruiting effort, the Department of the Navy proposed several initiatives to improve the process. The addition of more recruiters to the force and the approval of a congressionally sponsored increase to recruiter Special Duty Assignment Pay will help maintain the best recruiters in this challenging assignment.
Adopting proven methods from the commercial sector, the Navy successfully tested the concept of using professional telemarketers, resulting in over 34,000 quality leads for recruiters. Additionally, a 60-second infomercial was developed for selected cable networks. This promising program generated leads comparable to direct mail efforts and will be further evaluated during 1997. Traditional commercials emphasizing core values are well received and continue to be a major recruiting tool to reach the general populace. Based on new recruit surveys, our FY 1996 advertising program worked. The Department of Defense Youth Attitude Tracking Survey registered the first positive movement in male youth desire to join the Navy since 1991.
For the Marine Corps, the propensity to enlist remained constant. This is largely attributable to an effective yet prudent advertising program. An increase in the direct mail budget realized a 25 percent rise in contacts. The Internet also proved to be a useful low cost source of leads and contacts. Continued improvements include an expanded enhanced area canvassing effort through event partnerships with youth oriented programs. This program, along with other cost-effective methods, are directly connecting our recruiters and youth market, with promising results.
Maintaining a quality force is a key element of overall readiness, and retention of our Sailors and Marines is a critical component. We have many tools to accomplish this. Special pays and bonuses are targeted for those skills most costly to replace. The Selective Reenlistment Bonus (SRB) and Special Duty Assignment Pay (SDAP) are two of these. The enlisted SRB program is the Navy and Marine Corps' most cost-effective tool for increasing or maintaining the retention of high quality people and highly technical skills. It provides the capability to respond quickly and precisely to changes in either requirements or retention.
Similar to bonuses, special pays provide compensation for personnel serving in specific billets, locations, or types of arduous duty. SDAP is used to attract high quality volunteers into the most demanding and responsible billets. This permits significant savings in the areas of permanent change of station (PCS) costs and retraining of new personnel for those billets.
These bonuses and special pays are also essential tools for ensuring our future inventory of Navy and Marine Corps officers will meet diverse and highly technical requirements. Examples of these include Nuclear Officer Incentive Pay, Aviation Continuation Pay, and Medical Officer Incentive Special Pay. Bonuses and special pays help us to remain competitive for those skills which can be directly utilized in certain civilian industries. As a case in point, problems were encountered in Marine Corps aviator retention, primarily due to a major increase in civilian airline hiring. The Marine Corps has expanded its Aviation Retention Pay program in FY 1997 to reverse this trend. Improved retention in mission-critical skills and compensation for our personnel serving in these environments allow us to maintain peak readiness and morale. This is critical in today's all volunteer force.
This year, the Navy has initiated a new Homebasing Program designed to reduce the turbulence and costs associated with PCS moves. Since 1980, the number of Sailors with families has increased from 42 percent to 57 percent. The Homebasing Program's goals are to improve the Sailor's quality of life and improve retention.
Voluntary education programs make a significant contribution to recruiting, retention, and readiness. For those already in the service, the vast majority of Tuition Assistance users are our prime retention candidates in pay grades E-4 to E-6. Offering continuous access to educational opportunities is one of the most effective ways to increase the proficiency and capabilities of our personnel, and retain a quality force for the 21st century. Demonstrating our commitment to voluntary education, we made concerted efforts toward standardizing Tuition Assistance payment policy; improving distance learning opportunities through the Program for Afloat College Education and the Marine Corps Satellite Education Network; expanding access to basic academic skills learning (reading, writing, and math); and establishing an official educational transcript program that will ensure military personnel receive full academic credit for their educational experiences.
The transformation process of making Sailors and Marines is challenging. This requires an emphasis on instilling the ideals and core values of our Naval Services to build an effective fighting force. The Marine Corps has improved and made harder its tried and true methods of transforming young men and women into United States Marines. The process has been strengthened in four phases including: recruiting, recruit training, the strengthening of cohesion, and sustaining the transformation. In the recruit training phase, an additional week has been added to focus on core values and includes a 54 hour Crucible event that serves as the defining moment in the recruit training experience. Additionally, portions of Basic Warrior Training were combined with Marine Combat Training to create an improved continuum of combat skills instruction and application. The Navy adopted the concept of mentorship and individual stewardship to further promote internalizing core values.
Leadership and professional education remain a high priority. The Navy's Leadership Continuum is a total career concept of professional education and development designed to groom and prepare our personnel for the challenges of leadership. It includes resident and nonresident schools and courses, and an extensive professional reading program. Key elements of this professional military education are required either for promotion eligibility or immediately following promotion. Additionally, the Marine Corps University continues to expand education opportunities through improved nonresident professional military education courses, distance learning resources, video-teleconferencing, and virtual seminar and conference groups. Finally, the Navy Civilian Leadership Development program is designed to establish a framework of technical and leadership training for civilian employees.
The Department of the Navy is fully committed to ensuring our personnel are provided a working environment which promotes success. We continue our dedication to important areas, such as promoting Core Values and Equal Opportunity, while preventing sexual harassment and drug and alcohol abuse. These efforts are also reflected in our recruiting campaigns to ensure young people joining the Navy and Marine Corps Team understand our expectations and are willing to serve at this caliber of excellence. The benefits of imbuing these values in our people enrich our nation, whether an individual stays in the service or returns to civilian life.
While it is imperative that our Naval Forces are well trained and equipped, it is equally important that we maintain the highest possible quality of life for our personnel and their families. An adequate package of compensation and benefits and a positive environment that offers service members the tools to reach their full potential are key to retaining quality people.
Bachelor and family housing continue to be a high priority quality of life issue in the Department. Recently, a private sector housing strategy was accepted and later enhanced by the public-private venture introduced by the 1996 Family Housing Revitalization Act. It was expanded to include bachelor housing in 1997. Revitalization and construction of bachelor and family housing depend on the use of these authorities. A combination of these approaches will permit accelerated achievement of the Department's goals without increasing costs.
Another critically important workforce issue is quality child care at affordable prices. Several options to meet the growing child care demand are underway or being developed. These initiatives include contracting for spaces in qualifying off-base civilian centers, expanding Family Child Care to include off-base residences, enhancing our Resource and Referral Program, encouraging school-age care partnerships, and obtaining wrap-around contracts with local providers.
We also remain committed to providing a full range of community and family support services for our family members. These services help prepare family members for the challenges of frequent relocations, major life transitions, employment opportunities, deployments, and mobilizations. In cases where the demands of work and personal life become increasingly difficult, family members can seek counseling from their nearest Family Service Center. Additional funding is programmed in FY 1998 for counseling services to ensure the highest quality professional assistance is available.
One of the most important facets of individual and family support is the spiritual services supplied by our Chaplain Corps. In addition to providing critical pastoral teachings, the over 800 Navy chaplains continue to foster initiatives for our Sailors, Marines, and their families in numerous religious and counseling programs.
Finally, the Department continues to ensure single member needs are also addressed. Funding has been earmarked specifically for single Sailor and Marine programs, such as pierside laundry facilities and secure parking and storage for deployed personnel.
While there have been dramatic changes in the world environment requiring changes in our Naval Forces, we remain committed to our most valuable asset: the Sailors, Marines, civilians, and families who make up the Navy-Marine Corps Team. The Department is fully committed to building the strongest possible Naval Force, capable of meeting every contingency while maintaining the highest standards of character and ethical behavior.
READINESS: PERFORMANCE TODAY . . . PREPARATION FOR TOMORROW
Navy and Marine Corps readiness is high today, but concerns about the future persist. Readiness requires a careful balance between force structure and recapitalization. Failure to properly balance force structure and recapitalization could result in a force that is ready today, but has mortgaged the future with a smaller, aging, and ultimately less capable force.
As fiscal resources become increasingly constrained, unfunded contingencies that require deployment of additional ships, squadrons, and Marines cause reductions in other accounts, which directly affect current readiness. The Navy and Marine Corps Active and Reserve Operation and Maintenance (O&M) accounts bear the burden of supporting unfunded contingencies. Diverting programmed O&M funds delays vital equipment repairs and disrupts quality training.
The shift in the National Security Strategy from fighting a global war to meeting the challenges of regional contingencies has changed the focus of the Naval and Marine Corps Reserves. Instead of training solely for wartime mobilization, our Reserves are completely immersed in significant training and operations in day- to-day support of the active duty forces. In 1996, Navy and Marine Corps Reservists routinely provided tens-of-thousands of man-days in support of the active component while acquiring operational experience. This total force integration of Navy and Marine Corps Reserves provides a significant offset to the operating and personnel tempo of the active component and, as a result, increases overall readiness.
Future readiness requires investment today. Both the Navy and Marine Corps are planning increases in procurement and R&D accounts to guarantee future readiness. These actions must be taken in concert with maintaining readiness today. New Attack Submarines (NSSN), San Antonio-class LPDs (LPD-17), and the F/A-18 E/F Super Hornet will replace their aging predecessors in the near term. Next generation platforms and systems, such as the Surface Combatant of the 21st century (SC-21), MV-22 aircraft, the Joint Strike Fighter (JSF), Advanced Amphibious Assault Vehicle (AAAV), and Theater Missile Defense are essential long-term investments. Where considered most cost efficient, current systems, such as the AV-8B Harrier and P-3 Orion aircraft, are being remanufactured or given service life extensions. Cost efficiencies are also sought by designing ships such as the new Arsenal Ship with reduced manning requirements. Whether giving new life to old systems or taking a technology leap to systems of the next century, it is only through proper funding of modernization accounts that Naval Forces will be able to support the national security and military strategies in the future. The budget constraints challenge us to create and maintain the correct balance between current and future readiness. Both are important and neither can be ignored. The Department believes that within these constraints a correct balance has been made.
TECHNOLOGY: INNOVATION AND MODERNIZATION
Mature, carefully integrated technology is the linchpin for a Naval Force required to operate in disparate regions of the world. Yet, the price of technology can be prohibitive without the correct mixture of innovation and modernization. Our approach relies on an acquisition investment strategy that maximizes our scarce procurement dollars without compromising quality or losing critical capabilities. This strategy must capture the cutting edge of technology to guarantee the continued operational primacy of our Navy-Marine Corps Team. Our goal is to maintain a balance between reinvigorating older platforms through technology insertion and acquiring the next generation of systems.
Solid, proven platforms are superb candidates for modernization. The Arleigh Burke-class (DDG-51) destroyer, Los Angeles-class (SSN 688) submarine, AV-8B Harrier, F/A-18 Hornet, and the Marine Corps' light and medium vehicles are perfectly suited to this approach. Modernizing these platforms is fiscally sound. For example, a relatively small investment in Arleigh Burke destroyer modernization initiatives results in exceptional capabilities upgrades. Similarly, a remanufactured AV-8B saves more than 20 percent compared to the cost of a new aircraft.
While modernization of major systems is appropriate in the short term, retaining our operational primacy requires recapitalization. A successful recapitalization program requires continued support from Congress to achieve production goals and acquisition timelines. Our investment strategy must remain executable to avoid losing future capabilities.
New generation platforms, such as the JSF and AAAV, are critical replacements for older technology. By the time some of these platforms enter active service, they will replace systems which have been on the front lines for 30 or more years. Our strategy maximizes the return on our investment. One example of this strategy is the dual-track recapitalization philosophy being pursued with CVN-77. In addition to modernizing the carrier force, CVN-77 will incorporate innovative technologies for both existing and future aircraft carriers. Most importantly, CVN-77 maintains the carrier force level while facilitating long-term planning for CVX, a completely new and revolutionary air capable platform for the 21st century.
In another approach, revolutionary technology will be introduced through platforms such as the tilt-rotor MV-22 Osprey, the replacement for aging CH-46E and CH-53A/D helicopters. The MV-22 will radically change the battlefield and stimulate further use of advanced technology.
Advanced Enclosed Mast System (AEMS) is an excellent example of using technology insertion to produce advanced equipment at a reduced cost. AEMS encloses rotating antennas in a composite structure to reduce radar signature, improve sensor performance, and reduce maintenance. The AEMS will be installed on the USS Radford (DD-968) during FY 1997 and is under consideration for the San Antonio-class (LPD-17) ships.
Every day, our Sailors and Marines operate complicated systems around the world in extremely diverse and challenging physical environments. To contend with these complex requirements, we must embrace change and keep pace with rapid technological advances. Training, materials, systems, and platforms all require cutting edge technology. Consequently, the Department is using the latest business applications, commercial off-the-shelf (COTS) technology, and streamlined acquisition methods to expand capabilities for the future. These methods ensure new technology is readily available to our Sailors and Marines. The use of COTS in systems such Battle Force Tactical Training; command, control, communication, computer and intelligence equipment; and submarine sonar processing and display equipment are examples of accelerating technology insertion into the Fleet.
Naval science and technology efforts ensure tomorrow's dominance in critical areas. A few areas which demand technological superiority include: the rapid collection, analysis, and dissemination of tactical information; weapons maintenance, dependability, and delivery; and incorporation and use of new materials. To ensure the required technology is in place when needed, the Department's program will span the entire technology spectrum: basic and applied research, advanced technology development, and a vigorous manufacturing technology program. Additionally, since commercial technology opportunities are generally more abundant, the Department will foster partnerships with the other Services, government agencies, academia, and industry to reduce the cost of acquiring new technology.
The Department of the Navy has made great strides in the pursuit of international programs to assist modernization requirements and reduce costs. Cooperative research, development, and acquisition activities on key programs such as Joint Strike Fighter, Multifunctional Information Distribution System, and the Evolved Sea Sparrow Missile (ESSM) are already underway. International cooperation in such projects resulted in contributions of over $800 million by foreign partners in 1994 and 1995, plus the application of world-class foreign technology to meet mutual needs. Innovative activities in foreign military sales also have a positive impact on modernization efforts. For example, F/A-18 foreign military sales produced $2.3 billion in unit cost savings associated with domestic F/A-18 purchases over the past 18 years. In addition to the savings realized through technology and modernization burden sharing, international programs result in the deployment of common equipment in the forces of allied and friendly nations, directly enhancing coalition building. In view of recent successes, the Department plans to expand the scope of international activities which will minimize duplicative investment, and result in a greater number of high quality, high payoff cooperative programs in future years.
EFFICIENCY: THE QUEST FOR EXCELLENCE
Today's fiscal realities clearly mandate efficient, responsible utilization of our precious resources. The Department continues to search for better and smarter ways of doing business. Our Sailors, Marines, and Civilian professionals have been steadfast in efforts to scrutinize every aspect of our operations, infrastructure, and methodology to identify efficiencies and cost savings. Additionally, we are capitalizing on enabling technologies, employing lessons learned from other successful defense programs, and implementing acquisition policies that stabilize our out-year procurement funding. Initiatives in four key areas provide a basis for these efficiencies: infrastructure reform, acquisition reform, organizational reform, and innovative business practice implementation.
Infrastructure reform is being pursued through a number of venues. The Department of the Navy aggressively implemented the Base Realignment and Closure (BRAC) strategy identified during the four BRAC rounds. To date, 115 of 178 required BRAC closures and realignments have been completed, and all remaining actions will be accomplished within the mandated six year time frame. The Department is intensifying efforts to implement BRAC actions to reap the savings. The prompt and efficient closure and disposal of excess shore infrastructure is expected to yield significant savings over the course of BRAC implementation -- almost $2 billion in FY 1997, growing to a steady-state savings of approximately $2.7 billion after FY 1999. These funds can and should be directed to support remaining infrastructure as well as force modernization initiatives. The potential savings make it imperative that BRAC actions remain appropriately funded. Otherwise, delays could reduce anticipated savings and create new closure costs. The Department has budgeted about $1.4 billion in FY 1997, and almost $1 billion in FY 1998 to meet this goal. The FY 1997 funding will complete all remaining BRAC 1991 moves and realignments. This will leave the Department with most major closure actions completed, and a substantial portion of the environmental remediation actions required for property disposal and conveyance well underway. The FY 1998 budget submission reflects a change in direction, with more funds dedicated to support disposal actions than to construction and moving, firmly demonstrating the Department's commitment to prepare excess infrastructure for follow-on redevelopment.
A significant effort over the past year has focused on stabilizing the civilian shipbuilding industrial base, a crucial part of the nation's industrial readiness. As an example of this partnership, commercial shipyards are deeply involved in the construction of Arleigh Burke-class destroyers through innovative multiyear contracting. The industrial base is also doing its share to facilitate efficiency by adopting innovative business practices to reduce costs and improve product quality. This approach is crucial in helping the Department of the Navy transition to the future.
Shore installations and Marine Corps bases are complex activities similar to towns or small cities. Each installation provides hundreds of services, including law enforcement, food, medical, fitness, and communications. Most of these have civilian or industrial equivalents. The Department has initiated a program to leverage commercial technology and methods. This program, known as SMART BASE, will examine the use of state-of-the-market commercial technologies and methods that can reduce the cost of running shore installations. Classified as an Advanced Concept Technology Demonstration and a Re-Invention Laboratory, SMART BASE is empowered to use abbreviated acquisition procedures and authority to waive regulations as required for rapid, direct implementation.
Likewise, the Department is looking for similar savings by identifying the best candidates for commercialization or privatization. Cost savings and efficiencies are anticipated through the realignment of certain operations to commercial activities. The SMART BASE initiative and regional maintenance strategy are two examples which promise significant returns. These programs will improve efficiency through state-of-the-art commercial technology and consolidation of certain facilities to reduce operating costs, respectively. And while not considered a reform initiative, stabilizing our ship building industry through multiyear contracting is considered essential to the long-term health of our industrial base.
Acquisition reform is being implemented across the full spectrum of Department of the Navy programs. As an example, the newest class of amphibious warfare ship, LPD 17, is capitalizing on acquisition reform initiatives to change fundamentally the way ships are designed, built, acquired, and operated. This program uses competitive teams of shipbuilders and systems integrators to design a new class of amphibious warfare ship.
Another success is the Joint Lightweight 155 (LW155) Towed Howitzer Program. This program is demonstrating the power and efficiency of Integrated Product Teams (IPT) by moving through developmental phase approval in just one year. The success of the LW155 Program, with multiagency, multiservice, IPT concepts, is spurring similar application to programs at lower category levels, resulting in tremendous cost and time savings.
The F/A-18 E/F Super Hornet is a model program; an affordable, low risk continuation of the proven F/A-18C/D aircraft. This acquisition success story is proceeding on cost, on schedule, and meeting or exceeding all performance requirements and will be ready for fleet introduction in FY 2001.
Organizational reform is taking place in both the operational forces and in the Service staffs. 1996 marked the first full year for fleet reorganization designed to maximize training and to meet changing operational commitments worldwide. Stand up of the 5th Fleet in Southwest Asia and the reorganization of our forces into 12 core battle groups enhanced operational integrity and increased the efficient use of our Fleets. Improvements to internal staff functioning and the Combat Development System are both a focus of the Marine Corps. Through its Business Enterprise, proven Department of Defense and industry techniques are adopted and key processes such as resource allocation and information management are improved.
The Department is also evaluating and incorporating the best available commercial business practices. The implementation of Integrated Process Teams is one of the most important initiatives for encouraging cost avoidance and meeting schedules and performance goals. Similarly, regionalizing common support services in areas of fleet concentration will create additional efficiencies and savings. Finally, international cooperative programs provide a means to reduce research, development, and acquisition costs in systems such as the Joint Strike Fighter and the ESSM.
These reforms translate into major program successes. From the New Attack Submarine to the antiarmor Predator program, efficiencies are being realized. The Department's dedication to achieving every efficiency possible -- a continuing quest for excellence -- will contribute to future modernization and readiness.
CONCLUSION: CHARTING A COURSE FOR THE FUTURE, READY AND CAPABLE TODAY
The ultimate value of any organization is its ability to perform when required. In 1996, the Navy-Marine Corps Team responded successfully around the globe and across the spectrum of operations, from peacetime presence through humanitarian support to crisis response and combat. Operations included direct action to deter Iraqi aggression, a show of force to diffuse tensions between China and Taiwan, embassy protection and evacuation in Africa, counterdrug support in the Caribbean and Eastern Pacific, and humanitarian assistance in the waters off the coast of Peru. Within the continental United States, Sailors and Marines answered the call for antiterrorist support during the 1996 Atlanta Summer Olympic Games, provided manpower and equipment to fight forest fires in California, and supplied the essential resources to conduct the recovery operation of TWA Flight 800 off Long Island, New York. The Navy-Marine Corps Team, with its inherent mobility, firepower, flexibility, and self-contained sustainability, is tailor-made to contend with this diverse range of missions.
Throughout the Department of the Navy, dedicated men and women have used the solid foundation of . . . From The Sea and Forward . . . From The Sea to deal with the complexities of today's international environment. We have also charted a course for the future which will blend the finest Sailors and Marines in the world with the proper tools to meet the requirements of our National Security Strategy and National Military Strategy. Because of our enduring emphasis on people, readiness, efficiency, innovation, and modernization, the Navy-Marine Corps Team is on-station, on-call, and ready: today, tomorrow, and into the 21st century.
| /signed/ John H. Dalton Secretary of the Navy |
