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STATEMENT BY
LIEUTENANT GENERAL JOHN M. LE MOYNE
DEPUTY CHIEF OF STAFF, G1
UNITED STATES ARMY

BEFORE THE TOTAL FORCE SUBCOMMITTEE
HOUSE ARMED SERVICE COMMITTEE
UNITED STATES HOUSE OF REPRESENTATIVES

MARCH 13, 2003
  

Mr. Chairman and distinguished members of the Committee, on behalf of the outstanding soldiers of the United States Army, thank you for this opportunity to appear before this Subcommittee today to give you an overview of The Army's Personnel Transformation as well as our FY04 budget request.  First, I want to express my deep gratitude for your Congressional support and assistance which has assured major successes and achievements in our Army this past year. 

Our soldiers, civilians and their families are key to maintaining a lethal agile and well-trained fighting force able to deploy to defend freedom at a moments notice.  Our American Soldier's deep sense of duty, commitment to honor and love of country throughout our history is what has made this country the greatest and secured our freedom for more than 200 years.  While helping to fight the Global War on Terrorism, deploying to possible operations in South West Asia and supporting the Homeland Defense, our Army is in the midst of a profound change.  Personnel transformation remains our constant imperative - today, tomorrow, and for the future.

Today, more than 198,000 soldiers remain deployed and forward stationed in 120 countries around the globe, conducting operations and training with our friends and allies.  The resources provided by Congress to the Army for important missions are some of the reasons for our most recent success.  Soldiers from both the Active and the Reserve Component have remained "on point" for the Nation. 

LEADERSHIP

The Army is a profession - the Profession of Arms.  The development of each member of The Army is the foundation of lifelong devotion to duty - while in uniform and upon returning to the civilian sector.  Profession of Arms must remain firmly grounded in Constitutional values and constant change  to preserve its competitive advantage in an evolving strategic environment. At all levels, our military leaders -  and civilian - must apply their professional knowledge in increasingly varied and unique situations that are characteristic of today's strategic environment. Ultimately, we must grow professional Army leaders who provide military judgments founded on long experience and proven professional expertise. This capacity is developed only through a lifetime of education and dedicated service - in peace and in War.

Soldiers serve the Nation with the full realization that their duty may require them to make the supreme sacrifice for others among their ranks. Soldiers fighting the war on terrorism today, those who will fight our future wars, and those who have fought in our past wars are professional soldiers and a precious national asset. To ensure we remain the greatest land power in the world defending our nation. The Army and the Nation rely upon our soldiers unique and hard-earned experiences and skills. To develop the operational skills required to defend the Nation, training must remain our number one priority.

The evolving strategic environment, the gravity of our responsibilities, and the broad range of tasks The Army performs require us to review and update the way we educate, train, and grow professional war fighters. The Army's strategic responsibilities to the Nation and Combatant Commanders now embrace a wider range of missions. Those missions present our leaders with even greater challenges than previously experienced. Therefore, leader development is the lifeblood of the profession. It is the deliberate, progressive, and continuous process that trains and grows Soldiers and civilians into competent, confident, self-aware, and decisive leaders prepared for the challenges of the 21st Century in combined arms, joint, multinational, and interagency operations.
    

END STRENGTH (Active)

While the Congressionally mandated FY02 Active Army end strength was 480,000, The Army exceeded this end strength target, as well as the budgeted average strength of 474,000 man-years.  The Army finished FY02 with an end strength of 486,543 (78,158 officers, 404,305 enlisted, and 4,080 Cadets).  Stop Loss accounted for 2,217 of the total FY02 end strength.  Our average strength was 482,733 man-years.  Stop Loss accounted for 827 of the total FY02 man-years.  The Army recruited 79,585 new soldiers and met its accession quality marks.  The Army exceeded its retention goals by 1,437 for initial term, mid career and career categories and 2,961 for end term of service category.

END STRENGTH (Reserve)

The Army Reserve finished FY02 with a Selected Reserve (SELRES) strength of 206,682 soldiers; 100.8 percent of its congressionally mandated end strength objective (ESO) of 205,000.  If recruiting and retention continue at the current pace, The Army Reserves expects to end FY03 slightly above the 205,000 ESO, but well within the two percent variation allowed by Congress.  In FY02 the Army Reserve enlisted Troop Program Unit attrition was 27%.  The Army Reserve exceeded the FY02 SELRES ESO by 1,682 soldiers.  Additionally, expanding the Retention Transition Division (RTD) allows the Army to implement more effective Reserve soldier life-cycle management.  Active Guard/Reserve (AGR) and Individual Mobilization Augmentee (IMA) programs remain key to the SELRES manning strategy.  The Army Reserve continues to experience a Troop Program Unit (TPU) officer shortfall, achieving 94.6% of the ESO for officers. 

The Army Reserve continues to maintain end strength slightly above the ESO of 205,000.  Recruiting, led by no prior service soldiers entering Reserve units, is keeping pace with manpower requirements.  Attrition rates are on the rise believed to be due to demobilization, reduction of the non-participant population, and increased retirements.  Fully funding manpower accounts are critical to maintaining momentum.  Army Reserve goals remain to: improve full time manning (AGR and military technicians); promote maximum soldier participation; reduce and stabilize attrition; and continue attracting high quality recruits.

PERSTEMPO

To meet the demands of the current National Emergency, the Army has experienced substantial increases in Personnel Tempo (PERSTEMPO).  By necessity, due to global operational commitments, soldier deployments and Reserve Component mobilizations have combined to increase the turbulence and uncertainty felt by soldiers and their families who serve our Nation.  In defense of our Nation, soldiers in all components are being tasked to spend significant time away from home, for missions both foreign and domestic.  We have not yet turned the tide in the upward spiral of these requirements, but wish to assure you that the Army is doing what it can to track and monitor deployments at the individual soldier level.

The Army employs various measures to actively manage and minimize the effects of PERSTEMPO and coordinates with OSD to manage force requirements.  The Army seeks to reduce PERSTEMPO by rotating units, by selectively using Reserve Component forces, and through a post-deployment stabilization policy.  The Army endeavors to manage contingency operations requirements through global sourcing, as well as through use of career and contract civilians where feasible.  

We considered the effects of PERSTEMPO and implemented tracking and reporting the number of days a soldier is deployed in FY00.  The statutes surrounding PERSTEMPO for tracking, reporting and payment procedures were imposed to encourage the Services to reduce, where possible, excessive individual deployments vice payment of an entitlement for the soldier.  The Army places priority on our mission requirements over the high deployment per-diem and will not compromise readiness nor unit cohesion to avoid future potential high deployment per diem payments.  Army deployments will continue based on the needs of the Nation, the Army and the best interest of the soldier, in that order.  The Army has a duty to comply with PERSTEMPO requirements and to manage them for the welfare of our soldiers, their families and the future of the Army.

Our most recent report supports a total of over 1,004 soldiers exceeding the 400 days threshold of PERSTEMPO in the preceding 730 days. The Army will continue to manage deployments with an emphasis on maintaining readiness, unit integrity, and cohesion while meeting operational requirements.

STOP LOSS

The present National Emergency warrants that certain soldier skills are essential to the national security of the United States under the provisions of 10 USC 12305.  Selected soldier skills and officer/warrant officer specialties, will be retained on active duty and will not otherwise be separated or retired.  Those affected by the order cannot retire or leave the service as long as reserves with those same skills are called to active duty or until otherwise released by proper authority.

On 30 November 2001, The Assistant Secretary for Manpower and Reserve Affairs, ASA (M&RA) approved a limited stop loss for soldiers of the Active Army (Stop Loss 1).  On 27 December 2001, the ASA (M&RA) expanded Stop Loss 1 to include the Ready Reserve and additional skills and specialties for both the Active Army and the Ready Reserve (Stop Loss 2).  On 8 February 2002, a third increment of stop loss was approved to include additional skills and specialties for both the Active Army and the Ready Reserve (Stop Loss 3).  On 4 June 2002, the ASA (M&RA) approved partially lifting stop loss for skills and specialties affected by Stop Loss 1-3, and approved a fourth increment of stop loss to include additional skills and specialties for both the Active Army and the Ready Reserve (Stop Loss 4).  Stop Loss 4 ensured a zero sum gain against FY02 end strength.  Active Component soldiers who have completed their obligation under the Army's 12-month, skilled-based stop loss will not be subject to this

new stop loss (soldiers however, will be given the choice to continue serving).  Active Component (AC) unit stop loss, for selected forces that deploy in support of operations in the CENTCOM AOR, was approved on 14 February 2003.  Potential impact to FY03 Army end strength if this stop loss initiative is approved ranges from 492.7K to 504.6K (2.7% to 5% over 480K end strength).  Partial Lift #3 has been completed for the MP Corps. 

The global war on terrorism is projected to take years to successfully complete.  Stop loss was not designed to preclude soldiers from voluntarily separating for an indefinite period of time.  The time has come to provide soldiers affected by stop loss more predictability on when it will be lifted. 

STOP MOVE    

Stop move for selected AC units supporting operations in the CENTCOM AOR was announced 22 December 2002.  Units in support of Operations Enduring Freedom (OEF) or Noble Eagle (ONE) are currently not affected by stop move.  The intent of the Army's stop move program is to maintain personnel operating strengths, readiness, and cohesion for deploying units, while ensuring we do not deplete the rest of the Army (i.e., Korea) effective 21 December 2002.  Soldiers in deploying units with PCS report dates between 31 Dec 02 and 28 Feb 03 continue to PCS while enlisted soldiers with report dates of 1 Mar 03 or later will deploy with the unit.  Officers and warrant officers with report dates between 1 Mar and 31 May 03 will be initially deferred for 90 days; additional deferrals and modifications for these officers with report dates 1 Jun 03 or later may be made pursuant to future operational assessment. 

Stop move will affect Korea through the Involuntarily Foreign Service Tour Extensions (IFSTE) for up to 2900 soldiers in Korea for 90 days beyond DEROS.  Soldiers involuntarily extended will not be further extended for operational reasons or be required to meet service remaining requirements for PCS back to CONUS.  Soldiers who would undergo undue hardship because of short-notice IFSTE (e.g., already shipped HHG, started terminal leave, or moved family members) are also exempt.

ACTIVE/RESERVE FORCE MIX

 

The Army's current force mix provides required capabilities consistent with the new Defense Strategy.  The force mix, however, also reflects numerous adjustments as a result of changes in Defense Strategies over the last 30 years, as well as dramatically increasing everyday demands.  Currently, 64 percent of the active Army's total structure is in its operation forces (307K), with 23 percent (110K) in the Generating Force (e.g., recruiting, training and education, power projection and industrial base); the remainder, 63K (13%) is in the Transient, Trainee, Holding and Students account.  Of the 307K Operating Force, approximately 184K (38% of total Active Component (AC) structure) is combat and 123K (26% of total AC is combat support or service support structure).  Lastly, the AC Generating Force totals include 44K of Congressional and/or OSD mandated missions (e.g., Joint Staff, OSD Staff, Intelligence, Medical, RC training Support).  The result is a structure that has balanced risks and priorities, over time, in light of significant changes in the operational environment as well as resource constraints.

 

Most noticeably, AC end strength has been reduced from 611K in fiscal year 1992, down to 480K today.  Simultaneously, the AC inactivated four divisions and reorganized the maneuver structure of the remaining divisions.  This resulted in a 25% decrease in heavy division maneuver combat power, with available savings reinvested in the most critical areas, balancing risk and operational requirements.

The current AC/RC mix is a result of a conscious decision to migrate the largest portion of specific tasks into the RC because these skills were determined to be costly, training intensive, difficult to maintain acuity and difficult to retain due to civilian demand for similar skills.  At the same time, many of these skills lent themselves to smaller more specialized team organizations that did not require the level of collective training needed for war fighting skills; easier to mobilize.  Based on the current defense strategy and worldwide deployments, the Army continues to adjust its force structure.  The Army maintains six critical operational capabilities at the level of 75% or more in the Reserve Component to include: Civil Affairs, Personnel Services, Psychological Operations, Public Affairs, Supply Operations and Chemical.  The Army's current force mix provides required combat/support capabilities consistent with the new defense strategy and reflects decisions that balance risks and priorities in light of significant constraints.

All services have AC/RC mix issues; however The Army's are the most complex.  Some reasons for embedding capabilities in the RC are changing in the post 9/11 world; others remain valid.  Reserve Component Forces projected for early use must sustain high levels of readiness during peacetime.  The Army must remain active in determining the mix of the Active and Reserve force component. 

LOW DENSITY/HIGH DEMAND LD/HD UNITS

The Army has three types of units on the Global Military Force Policy (GMFP) list as LD/HD:  Patriot Battalions; Biological Identification and Detection Systems (BIDS) Companies; and Technical Escort Units (TEUs).

The Army has a total of 12 PATRIOT Battalions of which nine battalions are GMFP.  The one permanently deployed in Korea and the two ARNG battalions are not included in GFMP.  The Army has now resourced a maintenance company for each of the battalions.  Additionally, POM 04-09 resourced additional manpower (22 spaces) to bring the AC battalions to full strength.

The Army currently has two BIDS companies (one active and one reserve) with the projected activation of an additional company in each component in FY03.  Based on the FY04-09 POM submission, BIDS force structure will increase to a total of 17 by FY09.  The Army is programming the manpower spaces, common equipment, and training for these units.  OSD is funding the $518M for the Joint Biological Point Detection System (JBPDS) to meet this timeline.  Currently, the manufacturer can only produce two systems per year inhibiting a more rapid fielding of JBPDS.

Technical Escort Units provided DoD and other government agencies with a unique immediate response capability for chemical, biological and industrial material weapons or hazards, including weapons of mass destruction.  Beginning in FY04, the Army will invest an additional 123 military spaces and convert the currently non -deployable TDA unit into a deployable MTOE battalion.  This battalion will have the capability to provide 10 joint response teams, 5 national response teams and seven remediation response teams.    Current GMFP force lists correctly identify critical LD/HD organizations for the Army.  POM 04-09 resourcing efforts have adequately addressed shortfalls and minimized risk in homeland security and force projection strategy requirements.    Our desire is that Congress continues to support retention of current Army forces listed on the GMFP, without adding any new organizations.

UNIT MANNING     

 

Unit manning seeks to synchronize the life cycle of a unit with the life cycle of the Soldier within that unit.  Soldiers and leaders will be stabilized, resulting in a significant increase in cohesion and combat readiness over our present individual replacement system. Such a system has significant second and third order effects across the force - training and leader development, recruiting and retention, unit readiness levels, and total Army end strength, among others. All of these systems are being studied intensively. 

 

The objective of our manning strategy is to ensure we have the right people in the right places to fully capitalize on their war fighting expertise. Correctly manning our units is vital to assuring that we fulfill our missions as a strategic element of national policy; it enhances predictability for our people; and it ensures that leaders have the people necessary to perform their assigned tasks.  In FY00, we implemented a strategy to man our forces to 100% of authorized strength, starting with divisional combat units. The program expanded in FY01 and FY02 to include early deploying units.  FY02 represented the third year of implementation for the Army manning strategy and we have maintained our manning goals and continued to fill our Divisions, Armored Cavalry Regiments, and selected Early Deploying Units to 100% in the aggregate, with a 93-95% skill and grade-band match. We remain on target to accomplish our long-term goal of filling all Army units to 100% of authorized strength. Our manning initiatives have filled our line divisions and other early deploying units to reduce the internal turbulence of partially filled formations and help put a measure of predictability back into the lives of our families.

PERSONNEL TRANSFORMATION

 

At war and transforming, The Army is accelerating change to harness the power of new technologies, different organizations, and revitalized leader development initiatives that enable flexible, cost effective personnel policies for reshaping the Interim and the Objective Force for 2015. 

To accomplish this, we must transform our current personnel systems to meet the Army's vision of being more strategically responsive across the full spectrum of military operations.  While the Army's eight Personnel Life Cycle functions (acquire, distribute, develop, deploy, compensate, sustain, transition, and structure) do not change under the Army vision, how we do them does change as we migrate legacy systems to web-based technology. 

New capabilities under Army eHR will include paperless electronic workflow, digital signature, passive personnel tracking, predictive analytics, unobtrusive record keeping, and a variety of on-line services.  Overall customer service to the soldier, staff officer, and commander on the battlefield will be significantly more timely and accurate. 

In preparation for the Objective Force, and with the infusion of enterprise COTS (Commercial Off the Shelf) technology, a complete realignment of the Personnel structure and workforce is well underway.  Implementing new technology is absolutely key therefore we must invest in HR systems through FY05.  This will enable the reshaping of personnel units to become more responsive to the needs of commanders from a smaller footprint in the battle space. 

As the integrating framework, five Personnel Transformation themes synchronize the personnel life cycles to form the sync matrix for concept development, decision-making, and resourcing.  These five themes are Personnel Enterprise System, which forms the operational infrastructure and the knowledge architecture, which is the vehicle for revolutionizing the delivery of personnel services to soldiers and commanders and enhancing operational readiness.  The resulting capabilities include online services, transactional capabilities, and analytical decision support with accurate and timely data.  Second, Manning is the key and essential part of readiness.  Our plan is to man the future force employing a Rotational Unit Manning concept.  A major change in the way we do business is necessary given a dramatic increase in deployments, the Global War on Terrorism, coupled with the fielding of an increasingly complex force.  Significant changes in how we structure, recruit, manage our personnel, develop soldiers and leaders must be reconsidered to create degrees of freedom currently resident in the individual, equity based personnel system.  Third, Force Structure changes are already underway, especially in the personnel community's workforce and organizations.  From HQDA to unit level, a variety of multi-functional units are being structured and redesigned to meet the future needs of the Army.  Fourth, Training and Leader Development must be mutually supportive.  We will work diligently to develop policies that meet the readiness goals inherent in unit manning while at the same time support the professional development needs of our Army and our people. Fifth, Well-Being is key to both individual and unit readiness.  It is also critical to sustainment of our Army of today as well as that of the Objective Force.  More specifically, it is an integrated system that:  recognizes the institutional needs of the Army; designed and resourced to successfully account for the dynamic nature of The Army's operational challenges; maximizes outcomes such as performance, readiness, retention, and recruiting; and contributes to an institutional strength that enables The Army to accomplish its full spectrum mission. 

Our efforts in transforming the Army's personnel system are progressing. To date, we have successfully used technology to webify or digitize various personnel systems (i.e. OMPF On-Line and 2X Citizen, PERSCOM Online, PERSTEMPO, automated selection boards, etc.).  Working together with all components, we are confident that when the Army gets to the Objective Force in 2015, the Personnel and Pay communities will be transformed and ready.  One of the five personnel enterprise systems, Unit Manning deserves additional attention as a significant factor of personnel transformation. 

THIRD WAVE

The primary objective of The Third Wave is to make sure we are properly utilizing the military manpower we have before asking for additional resources.  This is necessary because we are operating within fixed constraints, a 480K-end strength, in an environment where there may be increasing demands for military capabilities for the global war on terrorism and worldwide contingencies.  We will leverage our current end strength by converting non-core military positions to civilian employees or contract, where appropriate.   We will pay for these conversions through savings generated from public-private competition and divestitures.  The Third Wave supports the President's Competitive Sourcing Initiative, which is one of five government-wide initiatives on the President's Management Agenda.  The Third Wave analysis is based on the Inventory of Commercial and Inherently Governmental Activities (which includes functions in the FAIR Inventory) and Senior Executive Council memorandum, subject: Using Core competencies to Determine DoD's Sourcing Decisions.  Third Wave study costs will be programmed in POM 05-09.  

WELL-BEING

Well-Being is the Strategic Human Capital Management System for the Army.  When applied at every level of leadership, this system provides the focus for balancing the needs of the Army and the expectations of our people - Soldiers, retirees, veterans, SA civilians and their families.  Well-Being is oriented on developing strategic outcomes within the human dimension, and measuring progress and results in achieving those strategic ends.

To measure these results, the Army designed a Well-Being Status Report (WSBR).  The WBSR serves as a feedback mechanism designed to track the current and future status of Well-Being as it impacts the personnel dimension of readiness, enabling the senior leadership of the Army to make informed decisions. 

The Army is testing the concept at five locations for an entire year (June 2002 to May 2003).  Additionally, the National Guard Bureau has funded a Well-Being laboratory site to explore methods to improve the effective delivery and receipt of Well-Being services and products to Guardsmen, Civilians and their family members.  The NGB site is scheduled to stand up the first week of April 03.

Well-Being initiatives over FY02 have resulted in the largest pay raise for soldiers in a generation, as well as a 4.6% pay raise for civilians.  There was an 18% increase in military construction for new barracks, family housing and medical facilities.  The medical component of Well-Being resulted in full funding for TRICARE military health care - a $6 billion increase over the past year.  Included in this initiative is TRACARE for Life for Medicare-eligible uniformed services retirees, family members and survivors.  Well-Being's impact on our Reserve and National Guard constituents resulted in improved pay, benefits and quality-of-life initiatives for reserve component soldiers and their families, such as TRICARE eligibility for the military sponsor beginning on the effective date of their orders to active duty.  For those soldiers ordered to active duty for more than 30 consecutive days, their families are eligible for health care under TRACARE Standard or TRICARE extra.

Given the competing demands for limited resources we must ensure the Well-Being of the force by making informed decisions about which Army Organizational Life Cycle functions provides largest "payoff", in terms of Well-Being of its people, while achieving the tasks to assess, recruit, train, retain and meet the Army's mission.  Well-Being allows the Army leadership to focus the application of resources with a measurable result.

CONCLUSION    

The  Army's soldiers, family members and civilians are proud of our progress.  We  truly appreciate Congress's continued support for its programs for improving the lives of our people.  We are grateful for recent congressional initiatives to increase military pay and benefits and improve the overall well being of soldiers.  This allows fine young men and women, to return to America's communities better educated, more mature and with the skills and resources to prepare them for a productive and prosperous life.  They make valuable contributions to their communities.

We are hopeful that your support and assistance will continue as we demonstrate our commitment to fulfilling the manpower and welfare needs of the Army; active, reserve, civilian and retired.

Again, thank you for the opportunity to appear before you today.