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TESTIMONY OF
BRIGADIER GENERAL ROBERT B. NELLER
DIRECTOR, OPERATIONS DIVISION
UNITED STATES MARINE CORPS

BEFORE THE
HOUSE ARMED SERVICES COMMITTEE
SUBCOMMITTEE ON READINESS
UNITED STATES HOUSE OF REPRESENTATIVES

REGARDING
MARITIME PROPOSITIONING FORCE READINESS

 March 24, 2004
 

Introduction

Chairman Hefley, Congressman Ortiz, distinguished members of the Committee; it is my privilege to report to you on the state of readiness of your Marine Corps.  Your Marines are firmly committed to warfighting excellence, and the support of the Congress and the American people has been indispensable to our success in the Global War on Terrorism.  Your sustained commitment to sustaining, modernizing, and transforming our Nation's armed forces to meet the challenges of today as well as those of the future is vital to the security of our Nation.  On behalf of all Marines and their families, I thank the Committee for your continued support and commitment to the readiness of your Marine Corps.

Recent Operations & Current Status of Maritime Prepositioning Forces

Our Maritime Prepositioning Force program figured prominently during operations in Iraq last year as eleven of our 16 ships offloaded their equipment and supplies in support of OPERATION IRAQI FREEDOM.  All eleven of these ships were completely offloaded in a total of just 18 days.  Vehicle offload operations averaged under 48 hours per ship, with eight of the eleven ships offloading the vast majority of their vehicles on the first day their respective offload began.  Container offload operations averaged around 60 hours per ship, with the containers holding 30 days' worth of supplies and sustainment for two Marine Expeditionary Brigades including Meals Ready to Eat, ammunition, medical equipment and supplies, multiple repair parts blocks, and construction and engineering supplies.  Additionally, two 500-bed fleet hospitals, two expeditionary airfields, and equipment and supplies for two Naval Mobile Construction Battalions were offloaded.  In total, over 7,000 vehicles and nearly 6,000 twenty-foot equivalent unit containers were offloaded during this process.  The result was that equipment and supplies were distributed to two reinforced regimental combat teams and associated aviation and combat service support elements, enabling rapid force closure and ultimately, the establishment of a potent fighting force poised to conduct actions as directed by the Commander, U.S. Central Command.  Undoubtedly, such an accomplishment equates to a tremendous strategic success and serves to reinforce the global presence and force projection capabilities of the naval services.

In terms of overall performance, our prepositioned stocks performed extremely well.  The prepositioned equipment and supplies that formed the nucleus of I Marine Expeditionary Force's combat power rolled off the ships at a 98.5% readiness level and eventually was used in support of combat operations throughout Iraq in areas such as Basra, An Nasariyah, Al Kut, Baghdad, An Najaf, and ultimately Tikrit.

Equipment Status

The execution of decisive combat operations in support of OPERATION IRAQI FREEDOM placed excessive wear on all of our equipment.  The assessment of that equipment continues.  Throughout last summer and autumn, we had approximately 2,200 Marines and civilian contractors in Iraq and Kuwait working to inspect, and where feasible, repair equipment in order to bring it back up to an operational capability.  The goal of our reconstitution actions was to rapidly return operationally capable equipment to our prepositioning ships and operating forces.  By operationally capable I mean equipment able to support our ability to shoot, move, and communicate-and we successfully met that objective.  Specific guidance was issued that directed the equipment in the best condition, regardless of original ownership, to be returned to the Maritime Prepositioning Ships.  This meant that our Maritime Prepositioning Ships received the highest priority for overall reconstitution-even above that of equipment, which remained in custody of our units.  This guidance was proffered in order to ensure that our global reach and force projection capabilities were returned to optimal status as soon as possible.

Reconstitution of our Maritime Prepositioning Force

The equipment used to support the reconstitution of the Maritime Prepositioning Force was sourced from a number of locations and organizations.  These included assets left behind in the Continental United States (CONUS) by deploying units, standard unit tables of equipment representing organic equipment stocks, Norway Air-Landed Marine Expeditionary Brigade (NALMEB) assets, global war reserve stocks, and of course, from the assets of those units that participated in OPERATION IRAQI FREEDOM.  It will take time to return the Maritime Prepositioning Force program to pre-OPERATION IRAQI FREEDOM employment capability, and the use of Maritime Prepositioning Squadron assets in support of OPERATION IRAQI FREEDOM II may extend the overall reconstitution timeline.  One squadron is complete, MPSRON-3 in Guam, and ready to respond to any contingency.  Several ships in the other two squadrons had completed reconstitution, but those ships have since been used to support the Marine forces deploying for OPERATION IRAQI FREEDOM II.

The back-to-back use of our Maritime Prepositioned Force in support of OPERATION IRAQI FREEDOM I and II is challenging the readiness of the Marine Corps.  We are meeting present OPERATION IRAQI FREEDOM II operational requirements within the constraints of our capabilities.  Our reconstitution/resetting the force requirement costs are partially addressed in the FY04 supplemental.  We continue to assess our equipment status and needs, and those additional costs will be addressed in future budget requests.  We have initiated reprogramming actions from our investment accounts that will effectively defer replacement of combat losses and other equipment reconstitution from OPERATION IRAQI FREEDOM I.  Of our more than $200 million depot maintenance backlog, only about $52 million of the assets are actually available to be inducted into depot maintenance in FY 2004.   However, there is a practical limit to what our maintenance depots at Albany and Barstow and our Maritime Prepositioning Force facility at Blount Island Command in Jacksonville, Florida can execute this fiscal year.  Both are currently operating in excess of 20% of labor hours as overtime.  To add additional capacity and shifts requires a four to six month hiring process to recruit the necessary skilled labor.

The operational impact of funding OPERATION IRAQI FREEDOM II requirements has not been completely addressed because that operation has just begun.  To fund OPERATION IRAQI FREEDOM II emerging requirements, the Marine Corps has deferred a portion of FY 2004 Procurement Marine Corps/Procurement Ammunition Navy Marine Corps (PMC/PANMC) budget to procure urgent needs items.  The interruption of the Maritime Prepositioning Force maintenance and reconstitution cycle to support OPERATION IRAQI FREEDOM II requirements necessitated sourcing of equipment from the Marine Component Commander Forces to meet Maritime Prepositioning Force Maintenance Cycle - 8 (MMC-8) requirements.  We continue to assess our needs for reconstitution funding, the impact on equipment delivery dates, and potential effects on training and future deployments.

The current schedule has one Maritime Prepositioning Squadron, MPSRON-1, completing its scheduled maintenance cycle in April 2005, and the second squadron, MPSRON-2, concluding its scheduled maintenance cycle in April 2006.  The time it will take until we have all three squadrons reconstituted to 100% operating capability will be a function of additional equipment requirements in support of OPERATION IRAQI FREEDOM II, Marine Corps-wide equipment readiness, and the condition of the equipment that returns from OPERATION IRAQI FREEDOM II.  In any case, reconstitution of our forces and Maritime Prepositioning Squadrons will be a challenge for at least two more years.

Role of our Land-based Prepositioning Programs in Reconstituting the Maritime Prepositioning Force

We have used assets from the NALMEB Prepositioning Program-our prepositioned assets currently held in storage caves in Norway--in the reconstitution of our Maritime Prepositioning Ships Squadrons, and expect to tap further into the assets stored there as we progress in the overall Maritime Prepositioning Force reconstitution as well as in support of Operation IRAQI FREEDOM II.   Norway continues to demonstrate its role as a critical and valuable ally through its tremendous support to our utilization of assets that are strategically prepositioned on Norwegian soil.  Specifically, Norwegian forces have supported several equipment draws, provided local security and in-country transportation for those assets, and executed the loading of that equipment onto Military Sealift Command shipping in support of our overall OPERATION IRAQI FREEDOM requirements.

Depot Maintenance.  Returning our operating and Maritime Prepositioning Force equipment to full capability is one of our highest priorities, and that priority is reflected in the supplemental requests for depot maintenance funding.  However, we have constrained our request for equipment throughput at our two Marine Corps depots in order to preclude a significant investment in new facilities or production line tooling.  We will continue to evaluate options to accelerate our depot maintenance throughput in order to return mission essential equipment to the operating forces as expeditiously as possible.

Blount Island Command Facility.  The Marine Corps will complete the acquisition of the Blount Island facility in Jacksonville, Florida in 2004. Upon ownership transfer to the Marine Corps, Blount Island Command becomes responsible for the stewardship of the local land, buildings, and environment. To ensure a smooth transition, efforts are in progress to establish facility management processes for base operating support and services, capital improvements, facilities sustainment and restoration, and anti-terrorism/force protection.

The acquisition of the Blount Island facility is critical to our Nation and to our Corps' warfighting capabilities.  Blount Island's peacetime mission is to support the Maritime Prepositioning Force.  Its wartime capability to support massive logistics sustainment from CONUS gives it strategic significance.  The Blount Island facility plays a vital role in the National Military Strategy as the site for Maritime Prepositioning Force maintenance operations.  The Marine Corps thanks Congress for your role in supporting this acquisition project.

Current Prepositioning Budget

OPERATION IRAQI FREEDOM has obviously greatly impacted our current prepositioning budget.  The following areas amplify the extent of this impact.  All figures cited include identification of the budgeted requirements for the indicated activity this fiscal year and the actual expenditures incurred as a result of OPERATION IRAQI FREEDOM.  The actual costs cited include the expenditure of funds received as a result of the OPERATION IRAQI FREEDOM supplemental.

• Maintenance Cycle Operations.  A total of $8.2 million was budgeted prior to the execution of OPERATION IRAQI FREEDOM for our MPF Maintenance Cycle.  To date, we have spent a little more than $65 million; with the additional $56.8 million spent as a result of post OPERATION IRAQI FREEDOM maintenance requirements.  Those costs are expected to increase further as we continue to assess, repair, and replace equipment.  Budgeting for these actions includes the identification of requirements for the procurement of parts used during the maintenance cycle (consumables and repairable), shelf-life replacement, care-in-stores materials, 30 day sustainment block requirements, Supply System Responsible Items (SSRI) replacement and Using Unit Responsible Items (UURI) procured through Marine Corps and Department of Defense (DoD) supply systems or special supply chain arrangements. 

• Port Operations.  A total of $6.9 million was budgeted for port operations at Blount Island Command expenses prior to the execution of OPERATION IRAQI FREEDOM.  This year's operations have required us to actually spend just over $23 million in support of port operations, with the additional $16.1 million spent as a result of port costs associated with our participation in OPERATION IRAQI FREEDOM.  Normally, the majority of our port operations budgeting is designed to support operations of the port facilities located at Blount Island and in support of associated shipboard operations there since that is where the preponderance of our routine port operations occur.  These costs include areas such as utilities, communications, security, custodial, dry/wet trash removal, civilian labor, travel, organic support, container repair/replacement, and miscellaneous contract support. Additionally, we budget for port operations we expect to conduct overseas in areas where our maritime prepositioning squadrons normally operate, such as Guam/Saipan, Diego Garcia, and Rota, Spain.  The port of Ash Shuaybah, Kuwait is not a port where we normally operate.  However, as you know, we conducted extensive operations there during OPERATION IRAQI FREEDOM, and the expenses incurred with that additional port operations requirement are reflected by the additional $16.1 million cited above.  As with our additional maintenance cycle costs associated with OPERATION IRAQI FREEDOM, the additional port operational costs we have experienced so far have been funded by the supplemental. 

• Maintenance Support.  A total of just over $37.5 million was budgeted for maintenance support actions.  As a result of OPERATION IRAQI FREEDOM, though, we have incurred expenses totaling almost $63 million to date, an increase of $25.5 million.  Maintenance support actions principally consist of the contracted logistics and maintenance requirements.  Specifically, these include the costs of logistics functions performed by Blount Island Command prime contractors on site, aboard ships, and deployed around the world.  Costs associated with this category primarily represent funding for labor to provide maintenance; warehousing; automated information systems; preparation, preservation, and packaging of materiel; transportation management operations support; and supply management.  Other associated funding requirements include the costs associated with materials not available through the Department of Defense supply system. 

• Government of Norway (GON) Maintenance Agreement. A total of $1.1 million was budgeted for equipment repair and preparation for shipment by Blount Island Command prime contractors, temporary additional duty costs for quality assurance and program management visits, and various other support costs.  As a result of OPERATION IRAQI FREEDOM, though, we have incurred expenses totaling just under $3 million to date, an increase of $1.9 million that has been covered by the supplemental.
• NALMEB Operations Support.  We budgeted $2.4 million dollars for support of routine NALMEB operations last year.  These actions include costs associated with maintenance parts used by the Norwegians in conducting contracted preventive and corrective maintenance actions on our equipment prepositioned in Norway, care of in-stores supplies, replenishment of sustainment block and shelf-life materials, and acquisition of Supply System Responsible Items (SSRI) replacement and Using Unit Responsible items (UURI) procured through Marine Corps and Department of Defense supply systems or special supply chain arrangements.  As a result of OPERATION IRAQI FREEDOM, though, we have incurred expenses totaling just under $11 million to date, an increase of $8.6 million that has been covered by the supplemental.

There are of course other areas that impact our maritime prepositioning force program for which we routinely budget.  Examples include funding requirements for the leasing of the Blount Island Command facilities at Jacksonville, Florida as well as the various maritime prepositioning force exercises conducted by our operating and support forces.  However, we experienced no significant cost increases to these activities as a result of OPERATION IRAQI FREEDOM.  Thank you for your support in meeting our emerging requirements through current and  supplemental funding.

Operational Readiness Outlook - Near Term

We are preparing our Marines and equipment for continued operations in Iraq, Afghanistan, and worldwide.  Your Marines deploying for OPERATION IRAQI FREEDOM II will deploy in two rotations of seven months each, and assets from five Maritime Prepositioning Ships-essentially one Maritime Prepositioning Squadron-will support this force throughout that deployment

Modernization and Transformation

The Naval Services have been working to bring the concept Maritime Prepositioning Force 2010 to reality since the concept was approved in December 1997.  The concept remains key to successfully conducting Expeditionary Maneuver Warfare and Ship to Objective Maneuver operations.  The principal concepts behind our Maritime Prepositioning Force (Future) program revolve around the following capabilities:

• To provide Combatant Commanders and Joint Force Commanders a highly flexible, operational and logistics support capability to meet widely varied expeditionary missions ranging from projecting combat power ashore to conducting independent operations.

• To work within an interoperable construct with other Joint, interagency, and combined forces/systems.

• To rapidly deploy Marine Air Ground Task Forces (MAGTF) and associated Navy/other service elements to enable joint maritime expeditionary operations.

• To enable operations ranging from those of the current Maritime Prepositioning Ships to future transformational Sea Based operations.

• To exploit the sea as maneuver space from over-the-horizon.

• To provide a series of platforms from which aviation actions can be conducted.                      

• To perform selective off-loading of cargo.

Achieving our vision for the future of the Marine Corps while maintaining near-term readiness will require the upgrade and modernization of current systems, until they can be replaced, while we concurrently carry out key modernization and transformational programs.  Our top acquisition priorities, such as the MV-22 Osprey, the KC-130J, the Expeditionary Fighting Vehicle, the Short Take Off Vertical Landing Joint Strike Fighter, the Lightweight-155 mm Howitzer, the High Mobility Artillery Rocket System, and the CH-53X and UH-1Y/AH-1Z tie directly to our future warfighting concepts, of which our Maritime Prepositioning Force (Future) program is a cornerstone.  Additionally, initiatives like the family of Navy and Marine Corps Mine Countermeasures systems; concepts such as Tactical Air Integration, Logistics Modernization and Command and Control; and improvements in Intelligence and Information Operations are equally essential to our transformation effort.  Accordingly, we continue to explore technology and processes that facilitate our transformation. 

Most important of all to our future readiness are our Sea Power 21 initiatives in partnership with the Navy.  We hold a deep and abiding conviction that Sea Basing initiatives hold the greatest promise for transforming your Marine Corps-Navy team into a more ready, flexible, and responsive force -that is able to project sustainable power across the full spectrum of operational capabilities anywhere in the world.  More than just an alternative to current capabilities, operations conducted from a sea base may well become the preferred method for national crisis response in the 21^st century.  Naval forces will be even more strategically and operationally agile, projecting power from a fully networked sea base while operating within the security derived from the Navy's command of the sea.  Sea Basing will provide national decision makers with unprecedented versatility, because naval forces can exploit the freedom of the high seas as maneuver space, relatively unconstrained by political, geographic, or diplomatic restrictions.  Navy and Marine Corps warfighting capabilities, thoroughly integrated across all sea-based systems and assets, will provide our Nation and Regional Combatant Commanders the combat ready forces necessary to fight and win in the conflicts of the 21^st century.

This year, the Marine Corps continues to refine plans for the Marine Expeditionary Brigade of 2015, in concert with our concept for sea-based operations.  Similarly, the Analysis of Alternatives for our Maritime Prepositioning Force (Future), a critical component of Sea Basing, will provide valid choices for achieving Sea Basing capabilities.  These initiatives will serve as an invaluable complement to the amphibious lift and forcible entry capabilities of the LHA(R), LPD-17, and current amphibious platforms will provide the Nation a deployment and employment capability unmatched in the modern world.

Conclusion

In conclusion, I would like to again thank the members of the Committee for their continuing support of the Marine Corps, and for the opportunity to discuss our readiness issues.  The young men and women of your Corps are doing an exceptional job in OPERATIONS ENDURING FREEDOM and IRAQI FREEDOM.  Their accomplishments are a direct reflection of your continued support and commitment to maintaining our Nation's expeditionary warfighting capability.  We go forward with confidence because Marines have the best training and equipment in the world, thanks to the support of this Committee, and the Nation we proudly serve.