STATEMENT OF
THE HONORABLE JOHN W. DOUGLASS
ASSISTANT SECRETARY OF THE NAVY
(RESEARCH, DEVELOPMENT AND ACQUISITION)
AND
VICE ADMIRAL CONRAD C. LAUTENBACHER, USN
DEPUTY CHIEF OF NAVAL OPERATIONS
RESOURCES, WARFARE REQUIREMENTS AND ASSESSMENTS
AND
LIEUTENANT GENERAL JEFFREY W. OSTER, USMC
DEPUTY CHIEF OF STAFF
PROGRAMS & RESOURCES
BEFORE THE
MILITARY PROCUREMENT AND
RESEARCH AND DEVELOPMENT SUBCOMMITTEES
OF THE
HOUSE NATIONAL SECURITY COMMITTEE
ON
DOD NAVY AND MARINE CORPS MODERNIZATION PROGRAMS FOR FY 1999
MARCH 4, 1998
Mr. Chairmen, distinguished members of the Subcommittees, thank you for this
opportunity to appear before you to discuss the Department of the Navy's FY 1999
modernization programs.
Since the end of the Cold War, it has been primarily the naval services that have been
called upon to respond to crisis around the world. The Navy/Marine Corps team helped
control events at the outset of the Iraqi invasion of Kuwait, the Marine Corps rescue of
Air Force Captain Scott O'Grady from Bosnia, the evacuation of hundreds of Americans and
country national non-combatants from the fighting in the former Zaire, Liberia, Sierra
Leone, and Albania, the swift response to tensions in the Strait of Taiwan, the on-going
confrontation with Iraq over U.N. weapons inspections-these are but some of the more
dramatic naval operations that are performed everyday all over the world in support of our
national security. Naval forces are not just the favored option, they often are the only
option.
The Presidents FY 1999 Budget request increases the amount of investment in support of the
recapitalization and modernization that is critical to maintaining our Navy and Marine
Corps team as the pre-eminent naval force in the world. Rebounding from the low-water mark
of $15.7 billion as recently as 1996, the FY 1999 Department of the Navy budget request
exceeds $20 billion for procurement programs. Main thrusts of our budget request are to
provide the resources that fully support the elements of the Shape… Respond…
Prepare Defense strategy established by the Quadrennial Defense Review (QDR), and
acquisition strategies that focus on program stability and life cycle costs.
The Department proposes a substantial change in the procurement profile of the tenth and
final NIMITZ Class aircraft carrier, CVN 77. This change was influenced, in no small part,
by the concern of the long construction gap between CVN 76 and CVN 77 and the costly
effects of this gap on the labor force of the shipbuilder. The Department has moved the
full funding of CVN 77 from FY 2002 to FY 2001 to minimize the cost and has provided for
advanced construction/advanced procurement of nuclear and non-nuclear components from FY
1998 through FY 2000. Funding for the DDG 51 procurement continues into the second year of
the planned four year multiyear procurement. The first follow-on ship of the SAN ANTONIO
Class amphibious transport dock ship is also funded in FY 1999. This ship class will serve
as the functional replacement for four existing amphibious ship classes.
We also continue to pursue other efficiencies in our acquisition programs. For example, in
order to make the most of available resources, we propose to maximize the use of multiyear
procurement. In addition to the ARLEIGH BURKE Class destroyer, CH-60, Javelin and the
AV-8B Harrier, our budget proposes three new multiyear programs: E-2C, T-45TS, and Medium
Tactical Vehicle Replacement (MTVR). These new multiyear contracts will permit accelerated
buyout of both aircraft production lines at a combined savings of $450 million compared to
the single year costs. Multiyear procurement of the MTVR is expected to save at least
7.4%, or another $86 million. Our use of the Army's H-60 multiyear contract will save $31
million, or 5.5% off the price of our CH-60 procurement. These contracts, combined with
those approved in previous years for DDG-51 and AV-8B, will enhance our modernization
potential over the Future Years Defense Program (FYDP) by over two billion dollars.
In other acquisition initiatives, we will continue to exploit new relationships with and
among our shipbuilding partners with the objective of lowering the cost of all surface and
submarine programs. Also, minimizing the life cycle cost of operating new platforms and
systems is being given prominent consideration in every acquisition decision.
The F/A-18E/F Super Hornet, the Navy's top air program, continues to set records for
flight hours and flights. The team is closing in on the optimal solution for the wing drop
problem and from the technical perspective this deficiency is almost behind us. Several
aerodynamic solutions have been identified and demonstrated in flight, any one of which
will produce acceptable flight characteristics. At this point, we are in the process of
optimizing the final configuration with a goal of ensuring that overall weapon system
performance, radar signature, range, carrier landing speeds, etc., is preserved. We are
confident that the final solution will not require a redesign to the wing's structure and
there will be minimal cost or schedule impact to either the Engineering and Manufacturing
Development or Low Rate Initial Production (LRIP) programs. Modifications will be
incorporated into the production aircraft in sufficient time to support existing
schedules, to include operational evaluation.
Our budget also provides the resources necessary to exploit emerging technologies. For
example, funding proposed for Navy Communications, Command, Control, Computers, and
Intelligence (C4I) programs will facilitate the transformation of traditional warfighting
via a new operational concept called "network centric" warfare. The Navy's
Information Technology for the 21st Century (IT-21) architecture will provide
the common backbone for inter-netting C4I systems. Marine Corps C4I modernization will
also reflect an emphasis on communication and electronics initiatives to ensure
connectivity and interoperability on the battlefield.
To ensure that our recapitalization program replaces aging systems with technologically
superior systems able to defeat emerging threats, we have increased funding for research
and development. Our FY 1999 RDT&E budget request is now more than $250 million higher
than it was for FY 1999 in the last budget. Within the Science and Technology portion of
the account we have budgeted minor increases to our recent program submission, resulting
in a conservative profile that keeps pace with inflation across the FYDP yet retains our
technological superiority.
The following provides more detailed information on some of our most significant
acquisition programs contained in the Presidents FY 1999 Budget request. They reflect the
priorities established by Navy and Marine Corps operational requirements and carefully
considered acquisition strategies.
REFORMING THE ACQUISITION SYSTEM
The Department of the Navy is making continuous improvement a part of the way it does
business. We are creating the tools, and providing the educational opportunities for our
people, which are facilitating successful reform of the acquisition system. DON is
rigorously pursuing paperless acquisition. Implementation of an automated Standard
Procurement System, now underway, is the first step. A program executive office is
currently being staffed to continue this important task. Equally important is the move to
Simulation Based Acquisition (SBA), a process that is expected to revolutionize the
acquisition of major systems. Simulation Based Acquisition enables large distributed work
teams to operate in synthetic environments to produce higher quality systems at reduced
cost over shorter periods of time. In February 1998 DON opened our Acquisition Center of
Excellence to serve as a test bed and development site for SBA.
In a DON March 1997 survey, over 90% of the acquisition workforce responding to a
questionnaire agreed there has been improvement in the Navy/Marine Corps acquisition
process. These improvements continue to occur across the acquisition system. The Advanced
Amphibious Assault Vehicle (AAAV) will be the most capable combat vehicle in the world
with significant advances in supportability and readiness for the Fleet. The AAAV program
team of Marines, civilians, and industry exemplifies the characteristics and forward
thinking of a superbly managed program. Their efforts this past year will result in
millions of dollars of savings through reduced acquisition costs, reduced acquisition
time, and implementation of state-of-the-art business practices. By totally embracing the
ideas of acquisition reform and industry best practices, the team has reduced the AAAV
unit cost, resulting in $155 million of cost avoidance. The team also implemented a unique
and innovative contracting approach which has avoided Operating and Support Costs by
$238.9 million.
The New Attack Submarine Program Office is the first major program to implement the
Integrated Product and Process Development method to complex warship system development
and design. Central to this concept is partnering with the submarine design and
construction industry, which has been the catalyst for the flexibility enabling a dual
yard construction teaming agreement. This shipbuilder teaming will permit unprecedented
sharing and cross pollination of submarine related best manufacturing processes and
practices, with the expectation of dramatic life-cycle cost savings.
The Naval Tactical Command Support System (NTCSS) Program provides standard information
resource management tools to afloat and fleet support shore activities. An aggressive
hardware technology insertion program will provide cost avoidance of $753.3 million over
the life cycle of this program. Utilizing an automated maintenance environment will
produce a cost avoidance of $420.5 million achieved over the next eight years. Reduced
database maintenance has returned man-hours to the activity and equates to a productivity
gain of $744.1 million over the 15-year life-cycle of the program.
The T-45TS Naval Undergraduate Flight Training System has developed the first totally
integrated training system. A multi-year procurement plan will save 5.2% of the program
airframe budget, $47.4 million. Use of Commercial-Off-The-Shelf products, innovative
contracting and concurrent engineering realized initial procurement cost avoidance of $9
million on simulators. Resource reuse of existing assets reduced military construction
with project life cycle cost avoidance of $600K and a five month schedule acceleration.
A small team in the Naval Supply Systems Command, the Fitting Out and Supply Support
Assistance Center, PRICE FIGHTERS Department, is demonstrating DON's unwavering commitment
to excellence. Providing direct engineering-based cost analysis, and technical and
negotiation support throughout the acquisition system, this team has documented savings to
the Department of Defense of $1.7 billion since 1983. Fifty-seven repair analysis projects
in 1997 netted actual savings of more than $21.3 million. Their involvement in FY 1997
E-2C production contracts resulted in reduction in proposed price of $54.6 million.
The bottom line is that our Navy-Marine Corps team, supported by our Acquisition Reform
Office, is implementing acquisition reform. DON has embraced the use of teams and
integrated product and process development. DON is focusing on total ownership cost,
embracing cost as an independent variable, moving to activity based cost and management
approaches, and designing platform systems using an open system architecture allowing for
follow-on technology insertion. The Department continues building partnering relationships
with our industry counterparts to develop, acquire and support technologically superior
and affordable systems. DON is committed to meeting the challenges of an affordable Navy
and Marine Corps of the future.
The Acquisition Workforce
During the past year, the Department downsized its acquisition workforce by
approximately 14,600 people. Since 1989, this workforce has been reduced by over 46
percent. While there may be opportunities to achieve additional savings by reducing
personnel overhead, it is important that such reductions be approached with careful
deliberation so that our organization structures remain efficient and effective. The
Department's acquisition workforce is already stretched and rapidly reducing this
community on top of the large cuts already made would hurt readiness, and impede
significantly our weapons modernization and acquisition reform efforts.
With resources limited and operational demands for naval forces remaining at Cold War
levels, one of our greatest challenges is to continue to provide high quality, cost
effective acquisition support to our warfighters, now into the 21st Century.
Toward this end, we continue to focus on providing our people with the education and
training they need to provide unsurpassed acquisition support to our warfighters. We've
made tremendous progress in this area. During the past year, over 9,300 acquisition
workforce employees completed mandatory training and more than 2,500 individuals attended
college courses using tuition assistance funds specifically earmarked for the acquisition
community. As a result, the majority of our acquisition workforce meets or exceeds the
education and training certification requirements of their positions. We also continue
work started last year to strengthen the Department's Centralized Acquisition Intern
Program to ensure that well-qualified professionals are ready to fill upper-level
positions as senior executives retire and otherwise leave employment.
In March 1997, over 40,000 members of our Navy-Marine Corp. acquisition team stood down to
focus on how to make their programs even better. The Department of the Navy provided over
14,000 training and education products - products that provide resources and tools for
just-in-time use throughout the year -- to facilitate implementation of our new way of
doing business. Over 2,000 Acquisition Reform Certificates of Excellence were presented to
teams and individuals in the acquisition workforce in appreciation of the many
improvements underway throughout our acquisition team.
While we are pleased with our current success in growing highly skilled and talented
acquisition professionals, we remain concerned with our progress in ensuring the same
degree of development in our senior military ranks. We are working hard to identify our
best and brightest officers in the acquisition career fields and to ensure sufficient
career development and promotion opportunities to fill our needs.
AIR PROGRAMS
The Navy operates ten active carrier air wings and three active Marine Corps (USMC)
airwings. The FY 1999 Aircraft Procurement budget requests $7.5 billion for 71 aircraft
and other aviation modernization and upgrade programs. The 71 aircraft procured include 30
F/A-18E/Fs, 7 V-22s, 3 E-2Cs, 15 T-45s, 4 CH-60s and 12 AV-8B Remanufactured aircraft.
Additionally, 3 Remanufactured SH-60Rs are being procured with Research and Development
funds.
F/A-18E/F Super Hornet
The F/A-18E/F is one of the Navy's highest priority programs and critical to the future
of our carrier airwings. The Super Hornet program is on track, within cost, below weight
and meeting or exceeding key performance criteria. The F/A-18E/F modernizes the Navy's
tactical aviation through the affordable and low risk evolution of the F/A-18C/D. The FY
1999 budget request for the F/A-18E/F includes $2.9 billion for the procurement of 30
aircraft and $216 million for continued RDT&E. The procurement of the first LRIP
aircraft will begin the orderly transition of the F-14 and F/A-18A/B/C/D inventory to this
improved strike fighter aircraft. Total planned procurement for the F/A-18E/F is 548
aircraft. Compared to earlier model F/A-18s, the Super Hornet will immediately and
significantly increase our capability in every mission area. It provides greater range,
greater payload flexibility, increased capability to return to the carrier with unexpended
ordnance, and a new aerial refueling platform compatibility integral to the carrier
airwing. It also incorporates enhanced survivability features, and provides growth
potential for future technology. This aircraft will make up the majority of strike fighter
assets for decades, and with the JSF aircraft, continue to provide our nation with
credible power projection capability from our forward deployed carrier battle groups.
The Super Hornet program continues to set records for flight hours and flights. The team
is closing in on the optimal solution for the wing drop problem and from the technical
perspective this deficiency is almost behind us. Several aerodynamic solutions have been
identified and demonstrated in flight, any one of which will produce acceptable flight
characteristics. At this point, we are in the process of optimizing the final
configuration with a goal of ensuring that overall weapon system performance, radar
signature, range, carrier landing speeds, etc., is preserved. We are confident that the
final solution will not require a redesign to the wing's structure and there will be
minimal cost or schedule impact to either the Engineering and Manufacturing Development or
Low Rate Initial Production (LRIP) programs. Modifications will be incorporated into the
production aircraft in sufficient time to support existing schedules, to include
operational evaluation. We are in the process of scheduling an independent assessment by
pilots from the operational test community to obtain their concurrence that the problem is
fully resolved. Although we are confident that we will be able to close this issue within
the next few weeks, our intent is to not approve funding for the next lot of 20 LRIP
aircraft until the final configuration has been identified and approval by the Secretary
of Defense received.
MV-22 Osprey
The MV-22 is the highest priority for Marine Corps aviation and critical to the implementation of our Operational Maneuver from the Sea concept. The V-22 Osprey is designed to replace the Marine Corps CH-46E and CH-53D as well as the Special Operations Command TH-53A, MH-53J, MH-47D, MH-60G, MC-130E,
HC-130 and HC-130E. The FY 1999 budget request includes $665 million for procurement of
7 MV-22 aircraft and $355 million for continued RDT&E. The V-22 test program has
experienced some delay due to technical issues and program taxes. Solutions are in work or
in place and the program is fully funded in the President's FY 1999 RDT&E Budget
request.
The acquisition of this medium lift tiltrotor, vertical/short takeoff and landing (VSTOL)
aircraft represents a revolutionary leap in our ability to project forces from over the
horizon toward inland objectives. The MV-22 will fly significantly farther and faster with
a greater payload than our aging fleet of medium lift CH-46 helicopters. Its ability to
carry 24 combat-loaded Marines at a cruising speed of 240 knots is key to the execution of
maneuver warfare. This combat multiplier nearly triples the present day battlespace and
will give commanders the tactical flexibility to respond, adapt to, and defeat a wide
range of threats. The MV-22 will give us the ability to maintain battlefield dominance
well into the 21st Century. Initial Operating Capability for MV-22 is 2001.
Joint Strike Fighter (JSF)
The Joint Strike Fighter (JSF) is the Department of Defense's future strike aircraft
for the Navy, Marine Corps, Air Force, and several of our allies. The Department of the
Navy's FY 1999 budget request for the JSF RDT&E is $463 million. The program
emphasizes affordability-- reducing the life-cycle cost of development and production
programs. The JSF program merges fully validated and affordable joint operational
requirements with demonstrated cost leveraging technologies and flying
concept-demonstration aircraft to lower risks and costs prior to entering Engineering and
Manufacturing Development of the JSF in FY 2001.
JSF will lay the foundation for an affordable family of strike aircraft which meet or
exceed individual Service requirements. Initial delivery of operational JSF aircraft
variants is anticipated circa 2008. Maintaining the JSF schedule is vital to the future of
Navy/Marine Corps aviation. The current program includes funding for the development of an
alternate engine. We expect to continue funding for this important program through FY 2005
as does the Air Force
Multiyear Air Programs
In addition to the AV-8B Remanufacture program and aircraft procured from the Army's
CH-60 program, the FY 1999 budget request proposes two additional air programs for
multiyear procurements-the E-2C and T-45TS. The combined acquisition cost savings
estimated from these four multiyear aviation programs and repricing efforts total $609
million.
AV-8B Remanufacture: The economical remanufacture of the AV-8B Day Attack Harrier to
the AV-8B II+ Night/Radar Attack configuration significantly increases the multi-mission
capabilities of the Harrier. The FY 1999 budget request includes $338 million for the
purchase of 12 aircraft. Our 1998 procurement contract contains cost provisions which
establish the framework for entering a multiyear procurement contract in the near future.
Expected savings from AV-8B Remanufacture program repricing and the multiyear procurement
total $128 million.
CH-60: The CH-60 will to be the Navy's fleet utility aircraft designed to
support forward deployed fleets through airborne delivery of materials and personnel, and
support amphibious operations through search and rescue coverage. The CH-60 program is
based on an engineering change to the Army's UH-60L Blackhawk airframe, incorporating
SH-60 dynamic components and commercial-off-the-shelf avionics. As such, the Navy is
entering a multiservice procurement with the Army by using the Army's multiyear contract
to procure initial CH-60s in FY 1999 through FY 2001, to be followed by multiyear
contracts for the balance of the CH-60 procurements. The FY 1999 budget request includes
$132 million for the purchase of four aircraft. Expected savings through the CH-60
multiyear programs total $31 million, in conjunction with the SH-60 Remanufacture.
E-2C: The E-2C Hawkeye carrier based surveillance aircraft extends the carrier task
force defense perimeters by providing early warning of approaching enemy air and surface
units and vectoring interceptors and strike aircraft to the attack. The E-2C also provides
area surveillance, intercept, search and rescue coordination, communications relay, and
strike/air traffic control. The FY 1999 budget request includes $389 million for three
aircraft. Expected savings through the proposed E-2C multiyear program total $204 million.
T-45TS: The T-45 Training System (TS) is the Navy's strike pilot training system. It
is designed to replace both the T-2C and the T-4J. The aircraft is a derivative of the
British Aerospace Hawk, with modifications for carrier catapult take-offs and arrested
landings. The FY 1999 budget request includes $342 million for 15 aircraft. Expected
savings through the proposed T-45TS multiyear program and acceleration total $246 million.
Shipbuilding Programs
The FY1999 budget request for Shipbuilding and Conversion (SCN) includes $5.7 billion
for the acquisition of three ARLEIGH BURKE (DDG 51) Class guided missile destroyers, one
SAN ANTONIO (LPD 17) amphibious transport dock ship, one New Attack Submarine (NSSN), one
oceanographic ship (TAGS), and the last Large Medium Speed Roll-On/Roll-Off vessel. The
FY1999 SCN budget request also includes funding for advance procurement and advance
construction of components for CVN 77.
Shipbuilding Industrial Base
Relative to last year's budget, the Department's shipbuilding plan improves the nuclear
and surface combatant industrial base that includes the shipbuilders and suppliers that
provide equipment and engineering services which support Navy shipbuilding programs. The
CVN 77 replacement carrier programmed in FY 2001, a year earlier than planned last year,
and the innovative teaming strategy approved by Congress last year for the construction of
four New Attack Submarines in FY 1998-2003 maintains the submarine and aircraft carrier
nuclear industrial base. In a similar manner, the DDG 51 multiyear plan and two additional
ships in FY 2002 implements a long-term acquisition strategy that lowers costs, reduces
disruptions from hiring and layoff cycles, level-loads employment, and encourages capital
investments; thus improving the performance, efficiency, and viability of the complex
surface combatant industrial base. These actions are key steps in a continuing effort to
ensure the long term viability of the shipbuilding industry to support our future
construction programs for the 21st Century.
The downsizing of the Navy and the lack of significant American commercial shipbuilding
business has resulted in a reduction in the number of ships under construction in U.S.
shipyards from 181 in 1980 to 65 in 1998 - a 64% decrease. During this same period Navy
shipbuilding has declined from 108 to 44 ships. If the current trend continues, this
figure could drop to the low 20s over the next five years. This decline in shipbuilding
demand is of great concern to the Navy and DoD. In response to the Quadrennial Defense
Review's projections of Navy new construction, the Department initiated a comprehensive
review of the current shipbuilding industrial base. The study is in its final stages,
having benefited from up-front shipbuilder involvement. The results of the study are
anticipated this spring and will help determine:
- If the Navy should place future ship construction contracts without regard to possible yard closings.
- If DoD should take a position with respect to mergers and consolidations within the domestic shipbuilding industry.
While it is recognized that the volume of commercial work is still quite low, new
commercial opportunities available to U.S. shipyards are promising. A prime example is the
construction of two cruise ships in the United States - a project that has not been
undertaken since 1957. The level of complexity of these ships ensure preservation of
shipbuilding skills that can be readily translated to Naval warship construction. The Navy
continues to support and promote the industry opportunities for Foreign Military Sales and
direct commercial sales for Navy contractors.
Finally, the Navy has to continue to promote expansion of the traditional Navy
shipbuilders into the commercial marketplace with programs that benefit the industry by
promoting commercial shipbuilding, such as a National Defense Features program. This
program will not only promote commercial practices, but will provide much needed naval
assets in a timely manner.
Aircraft Carrier Programs
The aircraft carrier is the centerpiece of Navy forward presence. As the tip of the
Nation's sword, aircraft carriers project American power like no other weapons systems in
our arsenal. Using historical data, we can expect a carrier to respond to approximately
twenty major crises and possibly three major conflicts, conduct over 500,000 aircraft
launches and recoveries, spend approximately 6,000 days at sea, steam a total of three
million nautical miles, and house over 100,000 men and women. Maintaining the Quadrennial
Defense Review (QDR)-directed force structure of 12 aircraft carriers and upgrading their
capabilities to meet future threats while drastically reducing ownership costs is a
critical challenge in accomplishing the Navy's overall mission.
Carrier Maintenance and Modernization
The maintenance and upgrade of our nuclear carriers is accomplished through the
Incremental Maintenance Plan, of which the Refueling Complex Overhaul (RCOH) is the
industrial availability to extend the life our existing fleet well into the 21st
century. We are currently planning for execution of the FY 1998-funded RCOH for USS NIMITZ
(CVN 68), and our FY 1999 budget request contains $275 million to continue funding of the
RCOH Advance Planning/Procurement for USS EISENHOWER (CVN 69). Such investments are vital
to recapitalization of these national assets.
CVN 77
Our aircraft carrier acquisition program responds to future challenges and requirements
with a two-track strategy. The near-term track of this strategy is CVN 77, the tenth and
final ship of the NIMITZ Class and the first carrier of the 21st Century. The
FY 1999 budget request includes $38 million in RDT&E funding to support incorporation
of critical transition technologies in CVN 77. Technology innovations fielded in CVN 77,
which are targeted to achieve a 15% reduction in Operation and Support Costs, will also be
backfit as feasible in the other nine ships of the NIMITZ class through the Carrier
Improvement Plan, and forward fit to achieve cost savings and risk reduction in the next
class, CVX. Responding to Congressional action on the FY 1998 budget request, we have
substantially revised the Department's SCN funding profile for CVN 77 in the FY 1999
budget submission. Including the $50 million provided by Congress in the FY 1998
Appropriations Act, we have applied a total of $241 million above the originally planned
advance procurement of nuclear components, for advance procurement and advance
construction of components in FYs 1998 through 2000. We accelerated the full funding of
CVN 77 one year to FY 2001. The resultant profile, which shortens the production gap
between CVN 76 and CVN 77, will provide significant industrial base benefits and savings
while balancing other shipbuilding priorities.
CVX
The second, and long-term, part of our two-track strategy is a new ship class and a new
vision: CVX. The Navy's vision for CVX is to develop a new class of aircraft carriers to
significantly reduce total ownership cost and incorporate an architecture for change,
while maintaining the core capabilities of Naval aviation (high-volume firepower,
survivability, sustainability and mobility) for the 21st century and beyond.
Achieving this vision will require significant design changes to incorporate advances in
technology and to focus the design on affordability drivers since little carrier research
and development has been undertaken since the 1960's. The Navy's FY 1999 plan for CVX
includes $40 million in RDT&E funding for feasibility and trade studies supporting CVX
design and a Milestone I decision. The FY 1999 request for CVX also includes $149.5
million in RDT&E funding for the development of critical technologies. These R&D
efforts include: advanced technology catapult, advanced propulsion concepts, enhanced
survivability features, integrated information management technologies, automation for
reduced manning, and computer aided design tools. It is crucial that these critical
technologies are started in FY 1999 to ensure that CVX can reduce the total cost of
ownership of aircraft carriers and meet a required Initial Operational Capability date of
2013.
Aircraft Carrier Acquisition Structure
Recognizing the critical importance of our nation's aircraft carriers, we are also in
the process of implementing a significant organizational change to provide increased
management focus to these programs.
ARLEIGH BURKE (DDG 51) Class Destroyer
The cornerstone of our new construction surface combatant effort remains the DDG 51
Class program. FY 1999 budget request includes $2.68 billion for the procurement of three
DDG 51 Class guided missile destroyers. These ships are the second increment of the four
year, 12 ship multiyear contract. Savings of $1.4 billion are expected across the
multiyear program which has allowed acceleration of two additional DDG 51 Class ships.
The three ARLEIGH BURKE Class destroyers procured in FY 1999 will be Flight IIA ships with
all of the new capability resident in Baseline Seven of the Aegis Combat System including
the upgraded SPY-1D(V) radar system, Theater Ballistic Missile Defense and Cooperative
Engagement Capability, the longer range 5"/62 gun firing Extended Range Guided
Munitions, advanced processing, Remote Minehunting System, and a host of other warfighting
upgrades and improvements. In addition, these ships will be selectively fitted with
applicable technologies tested in the highly successful "Smart Ship" program,
allowing for incremental reductions in operations and maintenance costs for DDG 51 Class
ships.
DD 21 Class Destroyer The FY 1999 budget requests includes $84 million to
continue RDT&E for development of the Navy's newest destroyer, the DD 21 Land Attack
Destroyer. The DD 21 replaces the highly successful DD 963 and FFG 7 classes of destroyer
and frigate in today's inventory. The DD 21 will be a true fleet destroyer, capable of
handling any mission that a Fleet commander might ask, from key wartime missions in land
attack and undersea warfare to the more mundane, but equally important presence missions,
noncombatant evacuations, escort, and diplomatic missions that have been closely
associated with Navy destroyers for almost a century.
As with previous destroyer designs, DD 21 will be focused on the key mission areas facing
the nation and the Navy during its design phase. Today, the Navy needs a destroyer that is
capable of exceptional performance in the littoral regions of the world and one that can
provide significant support to forces ashore. As a result, DD 21 must excel in mission
areas that include land attack and maritime dominance. Given the large inventory of
upgraded CG 47 and new DDG 51 Class ships that will be in the fleet by the time the first
few DD 21 class ships begin to join the fleet after 2008, a robust self defense capability
in air defense will be sufficient for this ship. Cost is a key factor in the design
of these ships. Projected shipbuilding budgets, constrained operations and maintenance
budgets, coupled with a need to recapitalize our submarine, aircraft carrier, and
logistics fleets in the early 21st Century dictate that DD 21 must be an affordable ship
to build and operate. This has led the Navy to seek, and find, new approaches to ship
design and acquisition and apply them to DD 21. The DD 21 program is fostering increased
industry involvement and enhanced opportunities for industry competition through use of
innovative acquisition strategies and is currently considering use of Section 845/804
authority for the first portion of the DD 21 development process. The surface combatant
acquisition community has been completely reorganized to allow for this. Competitive
industry involvement is critical to the success of this program, and the Navy is working
closely with the Office of the Secretary of Defense to foster a competitive environment.
Finally, the Navy has fully incorporated the Maritime Fire Support Demonstrator lessons
learned into the DD 21 program. This included transferring all of the Maritime Fire
Support Demonstrator contract deliverables and the bulk of the people working on Arsenal
Ship to the DD 21 Program Office. A full analysis of all three Maritime Fire Support
Demonstrator proposals has been completed, and the good aspects of the program, of which
there were many, are being fully incorporated in the DD 21 and CVX programs.
TICONDEROGA (CG 47) Cruiser Conversion Plan
The Navy has funded a plan to enhance and extend the capability of 12 of the 27 existing
CG 47 class ships over the FY1999-2003 FYDP, with the initial unit funded in FY 2001. The
FY 1999 budget request includes $20.0 million in RDT&E for a mid-life upgrade of these
ships to enhance their combat systems capability for the new Theater Ballistic Missile
Defense mission area. Other enhanced combat capabilities envisioned for these highly
capable ships include a new Area Air Defense Commander suite and upgraded land attack
capability. In addition, these ships should continue to be upgraded with the "Smart
Ship" technologies successfully demonstrated on USS YORKTOWN (CG 48) in 1996 and
1997. Finally, by extending the useful service life of the weapons systems of these highly
capable combatants, we will be able to delay the introduction of CG 21, the follow on ship
to DD 21, and second member of the SC 21 "family of ships". This will allow the
Navy to build additional lower-cost DD 21.
SAN ANTONIO (LPD 17) Amphibious Transport Dock Ship
The FY 1999 budget request includes $638 million for the second of this 12 ship
program. This amount, in conjunction with the $96 million of advance procurement provided
by Congress in FY 1998, fully funds this ship.
The SAN ANTONIO Class amphibious transport dock ships represent the Navy and Marine Corps'
future in amphibious warfare, and is one of the cornerstones in the Department's strategic
plan known as "Forward...from the Sea". The 12 ships of the SAN ANTONIO Class
will replace 27 amphibious ships from the classes now in service. This plan will not only
modernize our amphibious forces, but will also result in significant manpower and
life-cycle cost savings by reducing the total fleet manning required for the older
amphibious ships that are replaced.
SEAWOLF (SSN 21)
The USS SEAWOLF (SSN 21) was commissioned in July 1997, the first of a three ship
class. Evaluation of SEAWOLF's performance has shown that this submarine is the fastest,
stealthiest and most technologically advanced submarine in the world. The SEAWOLF Class is
a multi-mission submarine that can operate autonomously against the world's most capable
submarine and surface threats.
SEAWOLF (SSN 21) is in the process of conducting Post Delivery Shakedown Period.
Pre-Commissioning Unit CONNECTICUT (SSN 22) is 87% completed and is scheduled to be
delivered December 1998. SSN 23 is 34% completed and is scheduled to be delivered in
December 2001. The program continues to be managed within the Congressionally mandated
cost cap. However, the value of the cost cap has run its course. The conditions leading to
high levels of cost uncertainty have been overcome and costs are being contained.
Continued reviews and interpretation of costs that should or should not be included in the
cap divert Navy management attention to managing the program. The need for a cost cap
limitation must be revisited.
New Attack Submarine
The FY 1999 budget request includes $1.5billion for the construction of the second of
four New Attack Submarines plus $0.5B for advance procurement for the third ship, that are
part of the unique single contract and construction teaming plan approved by Congress last
year. The plan is expected to achieve cost reductions for the first four submarines versus
a similar "allocate and then compete" plan. In addition, it will keep the
nations submarine industrial base viable well into the next century.
The New Attack Submarine will improve on every aspect of mission performance versus the
SSN 688 Improved LOS ANGELES Class submarine. It will also equal or better operational
performance of SEAWOLF including stealth, special warfare, littoral warfare, surveillance,
and mission flexibility -but for approximately 30 percent less cost. In addition it
will incorporate flexibility for future technology insertion.
The United States maintains a capabilities based, multi-mission submarine force that is
sized to satisfy peacetime requirements and is not sized to counter any single country's
threat. New Attack Submarine production is essential to maintaining a highly effective
multi-mission SSN force level of 50 high performance submarines to meet future operational
requirements. The New Attack Submarine program is the only new class of submarine in the
Navy FYDP.
Submarine Technology
The FY 1999 budget request includes $64 million in RDT&E funding for Advanced
Submarine Technology Development Program. Seventeen design enhancements beyond the core
design, in comparison to five a year ago, have been approved thus far for final
development or insertion in the New Attack Submarine. Both submarine shipbuilders are
playing important roles by assisting the Department's efforts to identify additional
technologies for insertion opportunities and by identifying design changes that bring a
life cycle or construction cost avoidance benefit.
The Advanced Submarine Technology Development will enhance the capability of the Large
Scale Demonstrator System to conduct hydrodynamic/hydroacoustic/flow
management/maneuvering tests, as well as development of an advanced propulsion system and
sensor & processing technologies being considered for insertion in the New Attack
Submarine.
Maritime Prepositioning Force (Enhancement)
The FY 1997 budget requested funds for the third and final conversion for the Maritime
Prepositioning Force (MPF). Solicitation for this conversion ship was issued in the spring
of 1997 with the contract award expected during the third quarter of FY 1998.
The MPF supports the rapid deployment of Marine forces by providing mobile, long-term,
storage of equipment and supplies forward deployed near areas of potential conflict. In
crisis scenarios, these ships will respond immediately and provide the requisite forces
with sufficient and critical sustainability to conduct a host of crisis response missions
around the globe.
Strategic Sealift
The FY 1999 budget request includes $251.4 million for the construction of the final
(19th) Large Medium Speed Roll-On/Roll-Off (LMSR) vessel. This fully funds the
last ship along with the $35.0 million appropriated for Advance Procurement in FY1998.
This year the $251.4 million is funded in the Ship Conversion, Navy account vice the
National Defense Sealift Fund.
Oceanographic Survey Ship (T-AGS 65)
The FY 1999 budget request includes $60M for the construction of the T-AGS 65. The FY
1998 Defense Appropriations Act included $16M for advance procurement for the mission
electronics and other long lead items in support of the ship. The acquisition and full
funding of T-AGS 65 will complete the re-capitalization of the oceanographic survey fleet
and maintain it at eight ships. Procurement of this eighth ship will significantly improve
the Navy's oceanographic data collection capability to meet existing and emerging Navy,
DoD, JCS and other agencies operational requirements.
EXPEDITIONARY FORCES PROGRAMS
The FY 1999 budget request maintains support for the Operational Maneuver From the Sea
concept through continued modernization and recapitalization of Marine Corps combat
forces. The FY 1999 Marine Corps Procurement and Ammunition budget request is $892.5
million, a 49% increase over the FY 1998 funding level. The Marine Corps highest priority
programs in these accounts are the Advanced Amphibious Assault Vehicle (AAAV), the
Lightweight 155mm Howitzer (LW155), and the Medium Tactical Vehicle Replacement (MTVR).
The AAAV, funded under the Research and Development budget and currently in the Program
Definition and Risk Reduction phase, will enter production after the turn of the century.
Both the MTVR and LW155 programs are in Engineering and Manufacturing Development.
Funding for the procurement of ammunition is reflected in the Procurement of Ammunition,
Navy and Marine Corps appropriation. The FY 1999 budget request continues the effort to
reach the Marine Corps goal of satisfying the Combat Requirement through the FYDP while
meeting the annual ammunition training requirements.
Advanced Amphibious Assault Vehicle (AAAV)
As the most critical ground combat requirement in the Marine Corps, the AAAV program
remains the Marine Corps number one priority ground development program in FY 1999. The
AAAV's high water speed and superior land mobility, will dramatically improve both
battlespace dominance and forcible entry by Marine Corps forces. For the first time,
Marines will be able to directly link the maneuver of ships with the landing force
maneuver ashore. This capability will fully complement the MV-22's capabilities and
realize the full potential of Operational Maneuver From the Sea. The AAAV will carry 17-18
combat equipped Marines at three times the water speed of the current Amphibious Assault
Vehicle, and it will significantly increase survivability. The FY 1999 budget request of
$104.8 million reflects the third full year of the Program Definition Risk Reduction phase
contract and includes funds to complete procurement of materials and assembly for
prototypes and contractor/government testing.
Lightweight 155 Howitzer (LW155)
The LW155 is a top priority Marine Corps ground development program as it will be the
Corps' sole artillery weapon for all forces and missions. The LW155 will replace the aging
M198 howitzer, which ends service life in FY 2002. The light weight design of the LW155
markedly improves the tactical and strategic mobility of artillery units. The LW155 is a
joint Marine Corps/Army program with the Marine Corps as the lead service. An Engineering
and Manufacturing Development contract was awarded in 1997 with options for the first two
years of production. The FY 1999 budget request of $35.4 million contains both RDT&E
and PMC funds. The RDT&E funds will be used to continue developmental and operational
testing, and the Procurement Marine Corps funds will procure long lead items for the first
year of production. Developmental testing commenced in FY 1997 and a production decision
is scheduled for 2nd quarter of FY 2000. Marine Corps IOC is scheduled for
2002.
Medium Tactical Vehicle Replacement (MTVR)
The FY 1999 funding request for the MTVR program will begin the replacement of the
Marine Corps aging five-ton truck fleet. The MTVR will provide significant improvement
under all terrain and environmental conditions. Mobility will be increased through
addition of a six wheel, independent suspension and a central tire inflation system. The
MTVR will employ a commercial, electronically controlled engine and transmission as well
as heavy duty, state of the art, commercial components which will significantly improve
reliability. The FY 1999 budget request of $85.7 million contains both RDT&E
and PMC funds. The RDT&E funding will be used to continue operational testing while
the PMC funds will be used to commence low rate initial production. Contract award for low
rate initial production is scheduled for 1st quarter, FY 1999.
Other Expeditionary Forces Programs
The FY 1999 budget request emphasizes modernization and recapitilization in Marine
Corps investment accounts. The Marine Corps will initiate the Light Tactical Vehicle
Replacement (LTVR) program as a replacement for the Corps aging HMMWV fleet. FY 1998 funds
are expected to be used to procure an upgraded version of the Corps current HMMWV. This
program, in concert with the MTVR, will modernize the Corps' light and medium
transportation fleet of vehicles. In addition, the Marine Corps will invest in a
reliability and maintainability rebuild to standard of a portion of its Assault Amphibious
Vehicle fleet to extend its life until introduction of the AAAV. The Marine Corps also
maintains its commitment to its two anti-armor programs, Javelin and Predator, and it
continues to emphasize procurement and use of night vision enhancement devices.
The Marine Corps has continued to emphasize interoperability and connectivity in its
communications programs. In addition to the existing suite of communications equipment,
the Marine Corps will start the acquisition of two new programs in concert with the Army
during FY 1999. The EHF Tactical Satellite Terminal (SMART-T) and SHF Tri-band Tactical
Satellite Terminal (STAR-T) will leverage state of the art technology at affordable rates
and will ensure the timely and uninterrupted flow of intelligence to battlefield
commanders. In addition, progress in modernization of base telecommunications
infrastructure continues on schedule along with procurement of Tactical Data Network and
Digital Technical Control.
Marine Corps Warfighting Laboratory (MCWL)
The MCWL is the integrating ground for new technologies, a focal point for warfighting
refinements, and the critical engine to take the Marine Corps into the next century. The
MCWL develops and field-tests future operational and technological concepts through use of
a carefully developed, five year experimentation plan.
The completed first phase, Hunter Warrior, focused on mid-intensity level advanced
operational concepts and technologies on an extended and dispersed battlefield, in both
open and mountainous terrain. The second phase, Urban Warrior, is currently under way and
will be completed in FY 1999. This phase focuses on development of new tactics,
techniques, and supporting technologies for operations in urban areas, close terrain, and
near urban littoral areas. The final phase, Capable Warrior, will use the lessons learned
from the first two phases to integrate the full capability of a Marine Air-Ground Task
Force with naval units operating at the numbered fleet level of joint task force.
MINE AND UNDERSEA WARFARE
The Navy's mine and undersea warfare capabilities continue to receive great attention
from the Chief of Naval Operations, the Commandant of the Marine Corps, the Secretary of
the Navy, and the Secretary of Defense. Of particular importance is the Department's Mine
Warfare Plan, required by law, updated annually and verified by the Chairman of the Joint
Chiefs of Staff for full funding. Details for specific Mine and Undersea Warfare programs
follow.
Mine Warfare Plan
The Department continues to modernize its Mine Countermeasures Forces. The FY 1999
budget request fully funds the Navy's Mine Warfare Plan. Programs in the FY 1999 budget
request that support the Mine Warfare Plan include:
Integrated Combat Weapon System (ICWS): The ICWS is a series of major incremental
block upgrades to the current combat system of the OSPREY Class (MHC-51) coastal mine
hunter ship. The major focus of this program is to reduce total cost of ownership while
improving reliability and maintainability. This will be accomplished by transitioning the
combat system to an open system architecture with common operator console operating on a
Local Area Network. The final two MHC-51 Class mine hunter ships are scheduled for
delivery in 1998. These are world-class ships dedicated to MCM operations and are well
along the way to integration into the mainstream of Naval operations.
Organic Mine Hunting Capabilities: While there will always be a requirement for
dedicated MCM forces, the Navy is developing organic mine hunting capabilities including
the Remote Minehunting System (RMS) program for surface ships, and the Near Term Mine
Reconnaissance System (NMRS) and the Long Term Mine Reconnaissance System (LMRS) for
submarines utilizing Unmanned Underwater Vehicle technology. Successful RMS prototype
propulsion testing was completed in September 1997 and the RMS (V)3 Engineering
Development Model will undergo system integration and testing this year. The NMRS will be
ready for acceptance testing this summer and the LMRS will complete its Detailed Design
phase in FY 1999.
Additional organic MCM efforts such as the Shallow Water Assault Breaching System (SABRE)
and the Distributed Explosive Technology (DET) programs are being pursued to neutralize
shallow water and surf zone mines. SABRE and DET in combination with the Explosive
Neutralization Program will evolve into an Assault Breaching System with a capability of
neutralizing known mine threats which would otherwise hinder our forces in the surf zone
during an amphibious assault.
Airborne Laser Mine Detection System (ALMDS): Scheduled for program start in FY 1999,
ALMDS completed the Congressionally mandated flyoff in December 1997. The results of the
three systems evaluated by this evolution, Magic Lantern® (Deployment Contingency),
ATD-111 and the Advanced Airborne Hyperspectral Imaging System, are being analyzed and
will be used to develop system specifications for the this program. A report to Congress,
based on the analysis of the fly-off results, will be forwarded this summer.
Rapid Airborne Mine Clearance System (RAMICS): This helicopter borne system uses a
super cavitating 20mm projectile to destroy near surface mines. The supercavitating
projectile is specially designed to travel in water and drive a chemical initiator into
the mine explosive. Laser detection and ranging is used to locate and target the mine
providing aiming coordinates to the fire control system. RAMICS is an FY 1998 Advance
Technology Demonstration program and should transition to an acquisition program in FY
2001.
Airborne Mine Neutralization System (AMNSYS): This system will explosively neutralize
unburied bottom and moored sea mines that are impracticable or unsafe to counter using
existing mine sweeping techniques. A successful technology demonstration was conducted
first quarter FY 1998. Based on a successful Operational Test and Evaluation, production
is planned for FY 2000.
Supporting the Operational Maneuvers from the Sea doctrine, the Airborne Mine
Countermeasure community will have the ability to satisfy the need for near real time
helicopter positional data, dissemination and promulgation of mine-like contacts, and
tactics/equipment performance reporting with a C4I data link between the airborne
helicopters and the mine warfare support ship or shore site. The C4I program includes
procuring the necessary installation packages to outfit MH-53E helicopters, the USS INCHON
(MCS-12), and upgraded Mobile Operating Centers.
Anti-Submarine Warfare (ASW) Programs
The Department continues to develop ASW systems to improve our ability to conduct ASW
in the littoral/shallow water regions. The recently completed, Congressionally directed
ASW Assessment confirmed that maintaining funding for our ASW programs in this budget will
result in protecting our world leadership in this area. It further emphasized that the
fielding of systems in this budget will result in an improved ASW capability at the end of
the budget cycle.
The Airborne Low Frequency Sonar (ALFS) system is an improved "dipping sonar"
that will significantly enhance our ability to conduct active prosecution of subsurface
targets, including those in the shallow water environment. ALFS is in the final stages of
development and will be incorporated in the SH-60R Light Airborne Multi-Purpose System
(LAMPS) helicopter. The SH-60R LAMPS remanufacture program will also include upgraded
acoustic processing to dramatically improve the ASW capability of the LAMPS aircraft.
The AN/SQQ-89(V)14 Surface Ship ASW Combat System will integrate COTS into surface ASW
combat systems and generates significant cost savings over previous Military Standard
Systems. The AN/SQQ-89 is the ASW Combat System for all surface combatants and will be the
technological foundation for the ASW combat system of the DD-21.
The New Attack Submarine C3I system, through its extensive use of COTS and open system
architecture, is a pace setter on achieving breakthroughs in system affordability and
flexibility. This innovative approach will achieve new performance standards while
minimizing risk, and promoting new levels of extended contractor responsibility and
participation in the maintenance and upgrade of the system over its life-cycle.
The Advance Deployable System (ADS) is being developed to provide the ability to rapidly
and covertly deploy an underwater surveillance system designed for use in shallow littoral
environments. This surveillance information will be available to the tactical commanders
for use in monitoring naval activity in any region of interest. ADS is currently in the
Demonstration and Validation phase with Milestone II scheduled for FY 1999.
In addition to providing improvements to our detection and surveillance systems, Navy
continues to upgrade our undersea weapons capabilities for improved shallow water
performance. The MK-46 Service Life Extension Program and MK-50 Block I program improve
the performance of our existing light weight torpedo inventory. The Lightweight Hybrid
Torpedo, MK-54, to be introduced in FY 2003, will further improve the lightweight torpedo
inventory performance in shallow water. This program will utilize available components of
the MK-46 and MK-50 in addition to extensive use of COTS electronic components. The MK-48
ADCAP MODS heavy weight torpedo program is also updating existing submarine launched
torpedoes with propulsion and homing systems improvements for the very difficult shallow
water ASW environment.
COMMAND, CONTROL, COMMUNICATIONS, COMPUTER AND INTELLIGENCE (C4I)
PROGRAMS
Network Centric Warfare (NCW)
Reliance on NCW is at the heart of current C4I efforts in the Department of the Navy.
NCW is based on the ability of a widely distributed, self-synchronizing warfighting force
to mass effects when and where desired. To make NCW a reality, the force must be able to
share timely, accurate, common information. This requires fast and powerful networks; high
quality, widely distributed and netted sensors; a streamlined command structure; and
warfighting platforms capable of autonomous operation and unity of effort.
Network Centric Warfare increases the speed, precision, and effectiveness of Naval forces.
NCW enables the Navy to attain information superiority, mass effects instead of forces,
and disrupt the enemy's ability to carry out its strategy. Achieving this new warfighting
concept requires that we take full advantage of the information technology revolution, as
we are now doing.
Information Technology for the 21st Century (IT-21)
Information Technology for the 21st Century (IT-21) is the Department of the Navy
strategy to optimize IT acquisition through extensive coordination of all information
technology infra-structure expenditures within the Department. This IT infrastructure is
essential to realizing Department's shift to Network Centric Warfare and enabling the Navy
and Marine Corps to implement the Joint Staff's guidance (detailed in Joint Vision 2010)
on how U.S. military forces will fight in the next century.
IT-21 embodies affordable, highly capable personal computers for warfighting,
characterized by seamless ashore/afloat transfer of voice, video, and data information;
extensive use of web technology to manage data; widespread use of industry standards, open
architectures and COTS; and the fusion of tactical and non-tactical data on a common IT
infrastructure. IT-21 provides an integrated operational capability with satellite
communication upgrades, robust local and wide-area networks, infrastructure modernization,
and tactical and warfare support C4I enhancements, within an information-protected
environment.
Cooperative Engagement Capability (CEC)
A central element of Network Centric Warfare is the Cooperative Engagement Capability.
CEC provides a revolutionary improvement in battle group air and missile defense
capability with both Congressional and Department of Defense mandates for an aggressive
development and delivery schedule to accelerate the capability to the Fleet.
Real time netting of battle group air defense sensors and weapons is now possible through
the CEC. Utilizing highly advanced data transfer and processing techniques, CEC is able to
integrate the air defense sensors of both CEC-equipped surface ships and aircraft into a
single composite fire-control-quality network. CEC integrates the radar measurements of
each platform, distributes the measurement data to all participating units, and gives each
unit an identical real time air picture. In addition, CEC allows the early cuing of
self-defense sensors and permits engagements of threats with remote CEC data.
CEC also has promising potential for Joint Service applications with systems such as Army
Patriot and the Air Force Airborne Warning and Control System (AWACs). Fleet initial
operational capability was achieved at the end of FY 1996. An initial Operational Test of
the smaller production version (USG-2) was conducted in August 1997 on USS Wasp (LHD-1).
Further Operational Test and Evaluation is scheduled in mid-1998 with an additional test
to demonstrate a large multinode network composed of ships from two battlegroups planned
for mid-1999. These test events will be followed by Full Rate Production and installation
in over 200 ships and aircraft.
Theater Ballistic Missile Defense
Perhaps the most dramatic new capability to be deployed with U.S. Naval forces in the
next decade will be the Navy's Theater Missile Defense (TBMD) programs. The Navy, in
conjunction with the Ballistic Missile Defense Organization, has determined the best
architecture for Theater Ballistic Missile Defense is a two tiered approach composed of a
Theater Wide system and an Area system. The Department, with strong Congressional support,
has added over $1 billion to TBMD related programs and implemented several initiatives to
accelerate the TBMD program. Among these initiatives are the Aegis Baseline Consolidation
plan, the Cruiser Conversion Program and the establishment of a fully distributed
architecture for Navy TBMD.
The Area system builds on the current Aegis SPY-1 radar and the Standard Missile/Block IV,
requiring minimal modifications to the vertical launch system. By adding this capability
as an additional mission for our Aegis capable ships, we leverage the investment already
made in these ships and take advantage of the thousands of successful intercepts completed
in the Standard Missile program. The Navy Area TBMD is expected to have an initial
deployment capability in 1999 on two Aegis cruisers through a User Operational Evaluation
System. This will serve to influence the tactical design as well as provide for
contingency use by the Commanders in Chief. The first fully equipped operating capability
will occur in 2001.
The Navy Theater Wide system will be of a much longer range which will enable
exo-atmospheric intercepts against weapons of mass destruction. The Navy has demonstrated
the space-tested technologies and has successfully integrated them with the Standard
Missile. The Standard Missile-Lightweight Exo-Atmospheric Projectile (LEAP) program will
provide the maximum level of operational flexibility against long range threats. The Navy
will follow a two-pronged development approach to the Theater Wide system that is expected
to field a Block I system capability to counter the preponderant exo-atmospheric missile
threats in 2006, and a more robust Block II system that will be able to counter all
exo-atmospheric threats in 2010.
Year 2000 (Y2K) Computer Issues
The safety of our Sailors and Marines and our ability to meet our
warfighting responsibilities will not be compromised by a failure of our computer
hardware, software, and firmware to support the change of century date.
Working closely with the Department of Defense, under the personal leadership of the
Deputy Secretary of Defense, the Department of the Navy Chief Information Officer is
leading the Navy attack on the Y2K problem. The Chief of Naval Operations is establishing
a program office to mitigate the Y2K risk. The Commandant of the Marine Corps has tasked
his Assistant Chief of Staff C4I with oversight and management of the Y2K issue within the
Marine Corps. Leading industry consultants are assisting us in managing and expanding our
approach. Funding will be found within the programs responsible for individual systems. No
additional funding is being requested. Our analysts and programmers are hard at work
finding potential concerns, fixing them, and planning for contingencies.
Department of the Navy Chief Information Officer (DON CIO)
The Secretary of the Navy has established the Office of the DON CIO to provide
top-level advocacy in the development and use of Information Management and Information
Technology (IM/IT) and create a unified IM/IT vision for the Department. The DON CIO is
responsible for the development of IM/IT strategies, policies, plans, architecture,
standards, guidance, and process re-invention support for the entire Department.
Additionally, the DON CIO objectively balances the needs and interests of Department of
Navy users to ensure that developed and acquired IT systems are efficient, interoperable,
and consistent with the Navy's vision.
Research, Development, Test & Evaluation Programs
The RDT&E budget request funds the development and testing of current programs such
as the F/A-18E/F, V-22, Joint Strike Fighter, New Attack Submarine, Ship Self Defense,
Cooperative Engagement Capability, as well as the continued emphasis on Science and
Technology programs. The FY 1999 RDT&E budget request of $8.1 billion represents an
increase of 2.9% over the FY 1998 appropriation. The status of programs under development
and testing are discussed under their respective platform areas. The following provides
more detailed information on our Science & Technology and Manufacturing Technology
(MANTECH) programs.
Science & Technology
The superior technology we enjoy today was built on a foundation of basic research laid
years ago. From our basic research program through our manufacturing technology program,
naval science and technology is the keystone for supporting our ongoing affordability and
fleet modernization process, and is the wellspring from which our technological
superiority is maintained. Our FY 1999 integrated Science and Technology budget request of
$1.3 billion supports Basic, Applied, and Advanced Technology research and Advanced
Concept Technology Demonstrations.
Basic Research
Basic Research programs (6.1) provide the knowledge base for subsequent advances
in defense-related technologies in such areas as ocean science, advanced materials and
information sciences. The FY 1999 budget request of $362 million for Basic Research
programs reflects an increase of $24 million from the FY 1998 appropriation and puts the
Department on a path toward a goal of achieving and sustaining $400 million in basic
research by the end of the FYDP.
Applied Research and Advanced Technology Development
Applied Research programs (6.2) provide the necessary link between scientific
understanding and proof-of-principle experiments that establish whether promising
technologies can satisfy unique Navy and Marine Corps requirements. Advance Technology
Development programs (6.3) demonstrate specific technologies for naval systems. It is here
technologies with the most promise are demonstrated to determine their potential to
contribute to future naval capabilities.
During the last year many results from our research and development investments have had
global implications: a Nobel Prize winner in Chemistry; the discovery of the atom laser;
and a new anti-rejection immune technologies for transplant recipients. The anti-rejection
immune technologies holds great promise in combating infectious agents and is currently
undergoing testing in individuals infected with the HIV virus. The immune technologies
will also be tested as a cancer treatment and for the many infectious agents not yet
preventable using a vaccine. Ultimately, the value of this research to the military will
be the prevention or treatment of infectious illnesses and to save the lives of combat
casualties with severe burns, organ failure, and/or bone marrow failure.
Advanced Concept Technology Demonstrations
The goal of our Advanced Concept Technology Demonstration (ACTD) program is to conduct
essential technical demonstrations of mature technologies and provide acquisition options
for those technologies. An example of an ongoing ACTD to be conducted in FY 1998 is the
second Joint Countermine Demonstration as a large scale, real-time
operation that will clearly assess the military utility of new Joint Countermine
technologies. Eleven ģnovelī countermine systems will exercise the full range of
countermine operations from deep water to shallow water and from over the beach to the
land battle space behind the littoral zone. With a free-playing ģOpposing
Forcesī, Demonstration II will build on the user feedback and lessons learned from
Demonstration I. In addition, some of the novel systems will be available as residuals to
support subsequent force training, contingency operations, military utility assessment,
and continued concept of operations/tactics development.
The FY 1999 budget request includes funds for core programs that support eight ACTD's that
are particularly important to the Navy and Marine Corps mission. Two examples of those
demonstrations include:
Extending the Littoral Battlespace (ELB): The ELB ACTD will demonstrate enhanced
capabilities for Joint Expeditionary Warfare that leverage command, control
communications, computational, sensing and fire direction technologies for operations in
the littoral battlespace. The first major demonstration will be conducted during exercise
Kernel Blitz'99 using operating forces from the 1st Marine Expeditionary
Forces, 3rd Fleet and other commands to evaluate the ELB concept and
technology.
Link 16/Variable Message Format (VMF) Interface: The Link 16/VMF
ACTD will demonstrate a new interface for exchange of tactical information between two
existing systems to provide a seamless sensor picture to shooters. A successful
demonstration will significantly improve joint warfighters effectiveness and provide
improved over-the-horizon sensor-to-shooter cuing.
Manufacturing Technology (MANTECH)
The MANTECH program is an important element of our acquisition strategy to improve
productivity of the industrial base and make our weapon systems and platforms more
affordable. The principal goal is to reduce acquisition costs by developing and utilizing
manufacturing technology, cost-containment technology, and life-cycle support (repair)
technology. The Department has substantially increased its commitment to MANTECH programs
in the FY 1999 budget request of $59 million. This reflects an increase of 10% from the FY
1998 appropriation. A 1997 validation study of nearly one-third of Navy MANTECH programs
show a substantial return on our investments. Three examples illustrate the considerable
contribution MANTECH programs can offer to the affordability of our systems.
Centrifugally Cast Titanium Carbide/Bronze Components project: Also known as spin
casting, this project built upon very strong applied research work to develop friction
drums for the Standard Navy Hauling (refueling) Winch. The operating cost of these winches
has been reduced from $235 per hour to $18 per hour, with the development and installation
costs being recouped in the first year of operation of these new friction drums. This
MANTECH project received the Department of Defense Logistics Life Cycle Cost Reduction
award.
Aegis Electronics Demonstration project: This MANTECH project supports a high priority
Naval Sea Systems Command requirement to reduce the cost of manufacturing advanced High
Density Interconnect Transmit/Receive (T/R) modules for radar phase arrays in the DD 21
Class surface combatants. Up to 50,000 T/R modules will be purchased for each of the 32 DD
21 Class ships. An estimated manufacturing savings of $83 per T/R module will yield a
potential total cost avoidance of $128 million, or 30%, using the improved manufacturing
process. This Navy MANTECH demonstration project enjoys a 2 to 1 cost share advantage with
our industry partners and has a projected return on investment of close to 13 to 1.
EA-6B Universal Exciter Upgrade: This project involved new technology insertion for
this critical component in the aircraft's electronic warfare suite. In addition to
leveraging a 1 to 1 cost share between the Navy and the manufacturer, an overall cost
avoidance of ten percent was achieved with a return on investment for the Navy of 4 to 1.
Overall, our MANTECH program continues to show a wide range of successes such as these.
The returns are truly starting to show a definitive payoff.
SUMMARY
In summary, Mr. Chairman, the Navy and Marine Corps community is working hard everyday
to make acquisition success a routine occurrence. Our guiding principles are to
communicate fully and openly with the Congress, industry, our warfighters, and our
acquisition professionals, to do everything it takes to make sure our Sailors and Marines
are provided with the best equipment for the lowest investment possible. Our highest
priorities are to bring stability to our acquisition programs-this alone will save
billions of dollars; strengthen our industrial base; and ensure that our children and
grandchildren who serve in the Navy and Marine Corps of the future, defending America,
have what they need to prevail. We believe that the Department of the Navy's budget
request for FY 1999 supports the requirements to maintain our status as the world's
greatest naval power, forward deployed and combat ready. We appreciate the support
provided by the Congress and look forward to working together with this Committee toward a
secure future for our nation.
