• The F-22 Raptor will enable the joint team to dominate the air arena and deny our adversaries sanctuary. It will replace the aging F-15C air superiority fighter and bring a revolutionary combination of stealth, supercruise, and integrated avionics to the air battle. These attributes will ensure America maintains an overwhelming advantage against new, sophisticated threats that will increasingly proliferate around the world. The Raptor successfully completed its first flight in September 1997 and will begin flight testing at Edwards AFB, California, in 1998. It will enter operational service in 2005.

• The Airborne Laser will significantly enhance the ability of America’s theater commanders to deter or defeat the threat posed by theater ballistic missiles (TBMs). The ABL can be deployed anywhere, anytime to shoot down TBMs in their vulnerable boost-phase. This capability may deter adversaries by forcing them to contend with the possibility of their own warheads falling back on their territory. This year, the ABL showcased its sensor and communications capabilities as part of a joint multi-layered theater missile defense architecture in the Roving Sands ’97 wargame. As a shooter, the ABL shot down 16 of the 17 targets it engaged. In its capacity as a sensor, the ABL provided missile launch warning, launch and impact point predictions, and trajectory data to the joint force. The ABL will reach full operational capability in 2008 with seven aircraft.

• The Space-Based Infrared System will significantly enhance the ability of the ABL and other missile defense systems by providing detection and cueing capabilities. SBIRS will consist of constellations of satellites in high and low orbits that provide improved detection and warning to theater forces of missile launches. SBIRS high and low components are slated to reach initial operational capability in 2003 and 2006, respectively. SBIRS will complement the F-22 and ABL to enable our forces to dominate air and space. But space-based capabilities like those provided by SBIRS can only be made available with reliable spacelift. Toward that end, the Air Force is developing the Evolved Expendable Launch Vehicle.

• The Evolved Expendable Launch Vehicle will ensure America’s access to space well into the 21st century. It will replace the current fleet of launch vehicles with two families of boosters. The EELV will reduce life-cycle cost, shorten launch timelines, and enable more DoD, civil, and commercial launches per year. The medium- and heavy-lift EELVs will have their first flights in 2002 and 2003, respectively.

• The C-17 Globemaster III will become the new core airlifter of the Air Force’s mobility fleet. Its ability to carry outsized cargo into remote or austere airfields affords America the ability to deploy forces virtually anywhere on the globe—a capability that no other nation can match. In 1997, the C-17 supported our forces in Bosnia, Haiti, the Middle East, and in a host of smaller operations. Whether it is delivering Army rocket launchers from Oklahoma to Korea, supporting the evacuation of noncombatants from Liberia, or conducting humanitarian relief flights to Central Africa, the C-17 has and will carry the load for joint force commanders.

• Global Access, Navigation, and Safety (GANS) is a management initiative the Air Force is using to consolidate the requirements, acquisition, and funding of seven closely-related navigation and safety-related programs and initiatives. It will preserve access to prime global airspace in the future by implementing safety and navigation upgrades to Air Force aircraft and ensure our forces maintain the ability to rapidly deploy anywhere well into the 21st century.

• The B-2 Spirit is the world’s only long-range stealth aircraft. It delivers large amounts of precision ordnance in a single pass, enabling our nation to place any enemy’s warmaking capability at risk. The B-2 achieved initial operational capability in April 1997 and delivers several varieties of precision and nonprecision weapons.

• The B-1B Lancer is the Air Force’s primary long-range conventional delivery system. In October 1997, the Air Force suspended its active nuclear support role. The B-1 carries three families of cluster bomb weapons, including the antiarmor Sensor Fuzed Weapon (SFW), making it the first bomber with this critical halt phase capability. The near-term planned integration of precision and standoff weapons with a major defensive system upgrade will further enhance the Lancer’s lethality, survivability, and effectiveness.

• The B-52 Stratofortress has demonstrated its ability to deter war throughout the Cold War and, when necessary, to project power in today’s combat operations. Currently, the B-52 is America’s only long-range aircraft with precision standoff global attack capability—the technique of choice for minimizing risk to our aircrews during combat. Upgrades to its navigation system and standoff weapons capability have maintained the B-52’s ability to deliver decisive firepower anytime, anywhere.

• The Minuteman III ICBM fleet’s rapid, global, precision strike capability rounds out the Air Force’s global attack package. Ongoing modernization programs such as the propulsion and guidance replacement programs continue to ensure the Minuteman force remains a reliable and credible nuclear deterrent.

• The Joint Direct Attack Munition (JDAM) is an inexpensive guidance kit that converts 1,000 and 2,000 pound general purpose and penetrator warheads into accurate, adverse weather weapons with in-flight retargeting capability. JDAM Low-Rate Initial Production (LRIP) began in 1997 and deliveries will start in 1998.

• The Joint Air-to-Surface Standoff Missile (JASSM) will enable theater commanders to accurately target heavily defended, fixed or relocatable, high-value targets. It is a long-range, low observable, conventional, precision-guided, autonomous, air-to-ground standoff missile currently being developed by Lockheed Martin and Boeing. The decision to proceed to Engineering and Manufacturing Development is scheduled for 1998. The LRIP decision is scheduled for 2000.

• The Joint Standoff Weapon (JSOW) is a Global Positioning System (GPS)-guided, adverse weather standoff munition. This air-to-ground glide weapon will be used against land and sea targets at ranges from 15-40 miles. The Air Force will field two variants optimized against soft and heavily-armed targets in 1998 and 1999, respectively.

• The Wind-Corrected Munitions Dispenser (WCMD) is an inexpensive guidance kit that provides 1,000 pound class dispenser weapons (Combined Effects Munitions, GATOR, and SFW) a first time capability to be delivered accurately from medium to high altitude in adverse weather. WCMD will enter LRIP in 1998 and full rate production in 2000.

• The Sensor Fuzed Weapon is a 1,000 pound class dispenser weapon which uses the BLU-108 antiarmor submunition. SFW covers 500,000 square feet providing multiple kills per pass and is the Air Force’s weapon of choice for the halt phase of a major theater war. SFW entered full rate production in 1996, providing the warfighters an antiarmor capability that was recently deployed to the Gulf region on the B-1. When fitted with the WCMD guidance kit, SFW will be capable of greater accuracy from medium to high altitude.

• The Joint Strike Fighter (JSF) is a precision engagement asset that will replace the aging fleets of Air Force F-16 and A-10 aircraft. It will complement the F-22 to provide our Service the right mix of multi-role and air superiority aircraft for the 21st century. The program is on-track to supply over 2,900 next-generation multi-role strike fighters to the Air Force, Navy, Marines, and the United Kingdom Royal Navy. Delivery of the first operational JSF is scheduled for 2008.

• Command and control is managed by the Air Force as a weapon system and we are committed to the evolutionary acquisition and integration of new C² programs. To implement and oversee these initiatives, the Air Force stood up the Air and Space Command and Control Agency in 1997. This agency, together with the Air Force Communications and Information Center, also established in 1997, will be pivotal in expanding our nation’s information edge. Each organization will leverage information systems and technologies to enhance our warfighters’ capabilities.

• The Joint Surveillance Target Attack Radar System (JSTARS) provides the theater commander with surveillance of enemy ground movements. In combat, this information is crucial. In peacetime, it can deter hostile acts before they occur. JSTARS made valuable contributions during Operation Desert Storm and played an important role in bringing about the Dayton Peace Accords when all of the factions saw and understood how well the United States could monitor their military actions. The JSTARS achieved initial operational capability in December 1997.

• The Predator Unmanned Aerial Vehicle (UAV) provides theater commanders a reconnaissance asset with long loiter time and a varied sensor array to use when the cost or risk of using manned systems is inappropriate. It was the first Advanced Concept Technology Demonstrator to transition to a formal acquisition program, following program initiation by DoD on August 8, 1997. The Predator has been continuously deployed to Bosnia since March 1996, supporting the joint forces with a wealth of imagery information.

• The Airborne Warning and Control System (AWACS) is the theater commander’s most important asset for airborne surveillance and battle management. The Air Force is investing in several key modification programs to enhance AWACS performance in combat identification, communications connectivity, target and aircraft location accuracy, and detection range for small targets.

• Acquisition Reform. The Air Force is changing the culture of acquisition. The emphasis is to provide weapon systems better, cheaper, faster, and in a more streamlined and consistently smoother process. Virtually every new acquisition program is taking advantage of commercial practices by altering its strategy toward commercial specifications and standards, privatization, outsourcing, commercial off-the-shelf technology, and contractor system responsibility. Through its Lightning Bolt initiatives in streamlining, teaming, and innovative acquisition strategies, the Air Force has realized $6 billion in cost savings and $11 billion in cost avoidance. Newer efforts focus on continuous improvement and establishing strategic steps to ensure acquisition reform becomes the norm. To accomplish these objectives, we will continue to advance the professional development of our acquisition work force by providing quality continuing education and training.

• Strategic Business Planning. Sustaining the current force while simultaneously investing in the systems necessary for operations in the 21st century is a significant challenge in today’s fiscally constrained environment. The key Air Force leaders responsible for accomplishing and supporting acquisition and sustainment have joined together to embark on a shared vision and commitment toward a strategic business plan to move the acquisition and sustainment communities toward better business practices and continuous process improvement. The goal is to reduce costs without sacrificing mission capability.

• Partnership with Industry. In June 1997, the Air Force’s senior leaders in acquisition, requirements, and planning and programming signed a memorandum encouraging Air Force members to communicate more openly with industry. The intent of the memorandum is to increase industry’s understanding of Air Force mission and affordability requirements in order to achieve innovative and more affordable business solutions.

• Competition and Privatization. The Air Force is taking a strategic and long-term approach to competition and privatization to achieve the best value through public/private sector competitions. A formalized process exists to identify competition candidates to achieve maximum savings in infrastructure costs while preserving necessary combat functions. The Air Force has identified 50,000 additional positions for competition over the next six years—a two-fold increase of the entire historical execution since 1979. Recent competitions indicate a savings of approximately 34 percent. We have earmarked these funds for Air Force readiness and modernization accounts.

• Depot Maintenance. In the area of depot maintenance, Air Force efforts continue with the public/private sector competitions at Kelly AFB, Texas, and McClellan AFB, California. The results of the C-5 depot maintenance competition at Kelly AFB were announced in September 1997. The public competitor, Warner Robins Air Logistics Center located at Robins AFB, Georgia, won the competition. This contract will yield savings of $190.2 million over the next seven years. We project completing the remaining maintenance competitions for these two locations over the next year.

• Commercial Off-The-Shelf (COTS). Making the most of our resources includes avoiding the temptation to reinvent the wheel. Our focus is on increasing the use of current commercial products, processes, and practices. At the same time, we will work to improve the public/private sector business environment to enable a greater use of COTS. Some of our current initiatives include the conversion of 17 percent of our military product specifications to commercial item descriptions or nongovernment standards; the establishment of a Market Research Working Group to define commercial market research techniques that will reveal the best commercially available items to insert into military systems; and the preparation of a draft COTS handbook to aid in identifying and procuring commercial items.

• Lean Logistics. Air Force lean logistics focuses on improving operational units’ capabilities by integrating and applying state-of-the-art business practices across all logistics functions and processes. The objective is to maximize operational capability by using high velocity, time definite supply and delivery processes in lieu of large inventories to manage mission and logistics uncertainty. This results in shorter cycle times, reduced inventories and costs, and a smaller mobility footprint, which are critical to achieve Air Force agile combat support objectives.

• Other Cost-Cutting Initiatives. Additional ongoing cost-cutting initiatives implemented or investigated in 1997 include:

• Environmental Restoration and Compliance. Environmental compliance, restoration, and conservation go hand-in-hand with our readiness goals. Our efforts to be good neighbors—and become better ones—have helped preserve our access to ranges, airspace, and installations. The firm commitment to know and obey environmental laws and regulations has resulted in a dramatic reduction in the number of open enforcement actions against the Air Force from 263 in 1992 to only 16 in 1997. Stable funding allowed the environmental restoration program to maintain its 1997 cleanup schedule at all contaminated sites. Partnerships with governmental and nongovernmental organizations are fostering biodiversity and integrated ecosystem management at many installations.

• Financial Reform. Compliance with the Government Performance and Results Act (GPRA) is key to improving financial management. During the past year, the Air Force has supported OSD efforts to develop GPRA output measures and to comply with its many requirements. The Air Force incorporated some GPRA output measures into Air Force financial statements required by the Chief Financial Officers (CFO) Act, and is experimenting with activity-based costing.

• Operational Risk Management. Operational Risk Management (ORM) is a decision making tool to systematically identify risks and benefits and determine the best course of action for any given situation. ORM is designed to enhance mission effectiveness by minimizing risks in order to reduce mishaps, preserve assets, and safeguard the health and welfare of our people. In 1997, formal education and computer-based training were initiated to instruct our people in the use of ORM. All Air Force personnel should receive this training by October 1, 1998.

• Base Closures/Realignments. The Air Force continues to work with the communities impacted by base closure/realignment to put the property and facilities into economic reuse. In 1997, the Air Force completed Economic Development Conveyances (EDCs) for property at six of these bases. Most notably, the Air Force and the Greater Kelly Development Corporation signed an EDC for Kelly AFB, Texas, just two years after the base was announced for realignment.

• Force Protection. Air Force operations require a viable force protection strategy to protect its people, resources, and facilities anywhere in the world. In 1997, the Air Force established the 820th Security Forces Group and the Force Protection Battle lab at Lackland AFB, Texas, as well as Office of Special Investigations (OSI) Antiterrorism Teams. These organizations are comprised of security forces, civil engineers, communicators, intelligence experts, logisticians, medical, and OSI personnel. They have each taken part in force protection activities throughout the world.

• Operation Joint Guard. This NATO-led coalition has maintained peace among the formerly warring factions in Bosnia. Since the operation began on December 20, 1996, the Air Force has deployed over 2,000 personnel and flown over 3,000 missions (25 percent of the coalition total) including close air support, combat air patrol, suppression of enemy air defense, air refueling, combat search and rescue, and intelligence collection sorties. Additionally, deployed space support teams furnished critical space communications, weather, navigation, and missile warning support.

• Operations over Iraq. Operation Southern Watch was established to monitor Iraqi compliance with United Nations Security Council Resolution (UNSCR) 688 in Southern Iraq. Since its beginning in August 1992, the Air Force has deployed over 7,000 personnel to support Operation Southern Watch and has flown over 110,400 sorties (70 percent of the coalition total).

• Air Expeditionary Force (AEF) Deployments. AEFs provide the nation a very mobile, lethal, and highly capable flexible deterrence option, giving theater and joint force commanders a wide range of airpower options to meet their specific needs. AEF options can be applied to the full spectrum of military operations. AEF V, which deployed to Bahrain in late 1997, accounted for 444 sorties in support of Operation Southern Watch during its deployment. It was the first AEF to include bombers—significantly increasing its firepower.

• Counterdrug Operations. The Air Force continued to play a major role in the fight against the illicit drug trade. Aerostat radar balloons are deployed along the southern U.S. border, while military working dog teams patrol border entry points and seaports. AWACS and ground surveillance radars monitor known and suspected drug transit and source zones in South America. Air National Guard fighter aircraft routinely identify drug smuggling aircraft, while Civil Air Patrol aircraft provide transportation for law enforcement agencies and assist in the detection and eradication of marijuana crops within the continental United States. Air Force Reserve aircraft and personnel supported drug enforcement agencies by providing imagery, transportation, and intelligence analysis.

• Disaster Relief. In April 1997, severe flooding occurred in North Dakota and Minnesota. Grand Forks AFB, North Dakota, was made the support installation for the area and provided over 25,000 civilians and military personnel with shelter and support.

• Other Major Contributions. In 1997, the Air Force supported noncombatant evacuation operations during Operation Bevel Edge in Cambodia; Operation Silver Wake in Albania; and Operation Guardian Retrieval in the former Zaire. In addition, the Air Force provided support for the Economic Community of West African States Military Observer Group during Operation Assured Lift; Cuban Flotilla operations during Operation Monitor; aeromedical evacuation support for the President of Guyana; and Kurdish refugee support during Operation Pacific Haven.

• Cooperative Engagement. With the changing nature of modern warfare and a growing reliance on the military capabilities of friends and allies, the Air Force seeks to enhance its relationships with the militaries of other countries. Recently, the focus of Air Force constructive engagement and stability enhancement efforts have been in our Partnership for Peace military contact program and in security assistance, which includes Foreign Military Sales (FMS), International Military Education and Training (IMET), and the Armaments Cooperation Program.

• Space Operations. The Air Force is committed to assured access to space. Thus far, 1997 was the busiest year for Air Force space operations. The two major Air Force ranges, Vandenberg AFB, California, and Patrick AFB, Florida, conducted 45 successful space and missile launches, including range support and support services for every government and commercial launch of the Space Shuttle, Pegasus, Atlas, Delta, Titan IV, and Athena II boosters. In addition, the Air Force Satellite Control Network maintained a 99.5 percent mission effectiveness rate with over 159,000 satellite contacts.

• Compensation. Compensation continues to be a primary focus for our Total Force quality of life agenda. It has the most direct impact on standards of living. Specifically, we need congressional support to continue to provide competitive annual compensation packages.

• Housing. Access to safe, affordable, and adequate housing is essential. In August 1997, our unaccompanied airmen began moving into our first new one-plus-one dormitories (one person per sleeping room with a shared kitchen and bath) at McChord AFB, Washington. We are moving into the second phase of implementation of the private-room assignment policy for existing dormitories. We have a responsibility to provide the same level of quality housing for our overseas installations, such as those in Korea, where the lack of unaccompanied housing has force protection implications.

• Health Care and Medical Initiatives. Air Force families demand and deserve quality health care. The Air Force operates 46 of the Department’s 115 hospitals and 33 of its 471 clinics. Each of these facilities is accredited by the Joint Commission on Accreditation of Healthcare Organizations, and meets the same standards as civilian hospitals. For the past five years, average accreditation scores for military hospitals have exceeded the average civilian scores. Furthermore, 17 percent of Air Force facilities received accreditation with commendation—the highest rating available—compared to 12 percent in the civilian sector.

• Balanced Tempo. TEMPO, the measure of how hard our people are working, is comprised of two parts—OPTEMPO and PERSTEMPO. OPTEMPO measures a weapon system’s or unit’s activity level, while deployed or at home station. It includes operational and contingency deployments, training and exercises, home station or base support, and professional development and education. PERSTEMPO is the measure of an individual’s temporary duty away from home station. Since 1989, deployment requirements have quadrupled, while permanent forward basing and end strength have decreased by 66 percent and 37 percent respectively.

• Community Programs. Air Force community programs are designed to help active duty members with their dual responsibilities as military members and parents. They provide childcare, before and after school programs for children 6-12 years of age, youth centers for teens, and family support centers to help individuals cope with family separations.

• Retirement. Our continuing objective with respect to retirement pay is to preserve its value and to protect this benefit as a strong retention tool.

• Education. A fully-funded tuition assistance program and exploitation of distance learning technologies remain the two key components of our quality of life-related educational programs.