HIGHLIGHTS OF THE

DEPARTMENT OF THE NAVY

FY 1997 BUDGET

SECTION II READINESS


Ship Operrations

Battle Force Ships

The size of the deployable Battle Force begins to level off throughout the budget years, reflecting a changed global threat and a corresponding decline in defense resources. The budget provides for a deployable Battle Force of 341 ships by the end of FY 1996, and 339 ships by the end of FY 1997. These numbers are below the Bottom-Up-Review goal of 346 and the Department is reviewing whether additional frigates should be retained in the future to meet requirements pending delivery of new construction ships. Eighteen ships joining the Battle Force in FY 1996 are comprised of 14 new construction and four conversions. The 14 new ships consist of one nuclear aircraft carrier, five AEGIS guided missile destroyers, one TRIDENT submarine, four nuclear attack submarines, including the first SEAWOLF submarine, one amphibious dock landing ship, and two Military Sealift Command (MSC) charter oilers. The conversions consist of two ammunition ships (AE) that will join the MSC as T-AEs and two T-LKAs to address vehicle lift requirements. There are nine ships joining the Battle Force in FY 1997, consisting of seven new construction and two conversions. The seven new ships include five AEGIS guided missile destroyers, one amphibious assault ship, and one TRIDENT submarine. The conversions consist of two T-AEs. The addition of these units during FY 1996 and FY 1997 will be offset by the decommissioning of 30 ships in FY 1996 and 11 ships in FY 1997.

Table 3 summarizes battle force ship levels.

Table 3

Department of the Navy

Ship Operations

FY 1995 FY 1996 FY 1997
Battle Force Ships (353) (341) (339)
Aircraft Carriers 11 11 11
Fleet Ballistic Missile Submarines 16 17 18
Surface Combatants 113 115 119
Nuclear Attack Submarines 83 80 73
Amphibious Ships 39 42 43
Combat Logistics Ships 43 41 40
Support/Mine Warfare 48 35 35


OPTEMPO

For FY 1996 and FY 1997 deployed ship operations are budgeted as in prior years, with carrier battle groups deploying in worldwide operating areas. The budget provides for OPTEMPO of 50.5 underway days per quarter for deployed forces and 27 underway days per quarter for non-deployed forces in FY 1997. The budget reflects additional deployed underway days in FY 1996 and FY 1997 in support of contingency operations in Bosnia and southwest Asia. Budgeted deployed Fleet OPTEMPO support is considered the minimum necessary to meet global forward deployed operational requirements and overseas presence commitments as directed by the unified Commanders in Chief. Non-deployed Fleet OPTEMPO support provides primarily for the training of fleet units when 'not deployed, including participation in individual unit training exercises, multi-unit exercises, joint exercises, refresher training, and various other training evolutions. Non-deployed Fleet OPTEMPO levels are considered the minimum required for maintaining a combat ready and rapidly deployable force. Management efficiencies in underway training will result in reducing non-deployed OPTEMPO from the traditional 29 days per quarter to 27 days per quarter beginning in FY 1997.

Table 4 displays budgeted Ship steaming days per quarter including funded contingency operations and FY 1995 actual OPTEMPO.

Table 4

Ships Steaming Days Per Quarter
Active Forces FY 1995 FY 1996 FY 1997
Deployed 54.5 57.5 55.0
Non-deployed 27.6 29 27

Reserve Ships OPTEMPO

The Naval Reserve Force ship count will consist of 18 Battle Force ships in FY 1997. The Naval Reserve is transitioning from primarily a frigate force to multiple class ships. Transfers of the following class ships to the Naval Reserve will occur during FY 1995 through FY 1997: 1 CV, 2 LSTs, 1 MCS, and 4 MCMs. The reserve operational carrier, USS JOHN F. KENNEDY (CV-67), transitioned to the Reserves in late FY 1995. This expansion allows the Naval Reserve Force to better relieve active operational and personnel tempo. The CV is budgeted at 31 steaming days per quarter and the remaining Naval Reserve Force ships are budgeted at 18 steaming days per quarter.

Table 5 reflects Reserve battle force ships and steaming days per quarter.

Table 5

Department of the Navy
Significant Naval Reserve Force Factors
FY 1995 FY 1996 FY 1997
Reserve Battle Force Ships (19) (18) (18)
Aircraft Carriers 1 1 1
Surface Combatants 14 10 10
Amphibious Ships 2 2 2
Support/Mine Warfare 2 5 5
Steaming Days Per Quarter
Reserve Operational Carrier 31 31
Other Naval Reserve Force Ships 18 18 18

Mobilization

Mobilization forces are maintained for rapid response to unforeseen contingencies throughout the world. The Required Sealift capacity in millions of square feet was established by the Mobilization Requirements Study (MRS) and the MRS Bottom Up Review Update (BURU). Funding for these operating forces is provided through the National Defense Sealift Fund (NDSF) by various DOD customers. Forces funded by DON appropriations include Maritime Prepositioning Ships, Hospital Ships, and Aviation Maintenance Ships. Each one of the three Maritime Prepositioning Ship squadrons is able to support a Marine Expeditionary Brigade for 30 days. The remaining ships support cargo/hospital operations for a variety of military operations. Table 6 displays our mobilization capacity and Navy assets.

Ready Reserve Force

FY 1996 is the first year in which DOD financed maintenance of Ready Reserve Force (RRF) vessels. The Ready Reserve Force program finances the cost of acquiring and maintaining a surge shipping and resupply capability to carry cargo and support deployment of US armed forces during a contingency.

Table 6

Department of the Navy Strategic Sealift Mobilization _Capacity
FY 1995 FY 1996 FY 1997
Mobilization Capacity (millions of square feet)
Afloat Prepositioning Capacity Required 3.2 3.5 3.9
Current Prepositioning Program 2.7 2.9 3.2
Surge Sealift Capacity Required 7.2 8.0 8.0
Current Surge Sealift Program 6.2 6.5 7.6
Strategic Sealift (# of ships) (18) (18) (18)
Prepositioning Ship 1 1 1
Maritime Prepositioning Ships 13 13 13
Aviation Logistics Support Ships (T-AVB) 2 2 2
Hospital Ships (T-AH) 2 2 2
Ready Reserve Forces (# of ships) - 94 95

Ship Depot Maintenance

The budget satisfies approximately 91% of requirements for active forces ship depot maintenance in FY 1996 and 88.5% in FY 1997. The decrease in funding in FY 1997 reflects a change in the mix of the restricted and technical (RA/TA) availabilities. Due to funding constraints, two scheduled ship overhauls are not funded in FY 1997.

This budget satisfies 100% of requirement for Naval Reserve ship depot maintenance.

Tables 7 and 8 display active and reserve ship depot maintenance.

Table 7

Department of the Navy
Active Forces Ship Depot Maintenance
(In Millions of Dollars)
FY 1995 FY 1996 FY 1997
Ship Depot Maintenance $2,206.5 $2,245.0 $1,803.8
Depot Operations Support 910.9 716.2 787.3
Total: Ship Maintenance $3,117.4 $2,961.2 $2,591.1
No. of Ship Overhauls (Units) 10 7 6
Ship Overhaul Backlog (Units) 0 0 2
Estimated No. of RA/TA (Units) 92 * 101 * 82
Percentage of Requirement Funded - * 95% * 90%

* Revised March 13, 1996

Table 8

Department of the Navy Reserve Depot Maintenance
(In Millions of Dollars)
FY 1995 FY 1996 FY 1997
Reserve Ship Depot Maintenance $46.2 $71.3 $84.0
Percentage of Requirement Funded 100% 100% 100%


AIR OPERATIONS

Tactical Air Forces

This budget provides for the operation, maintenance and training of ten active USN carrier air wings and three Marine Corps (USMC) air wings and aviation components of the 1st Marine Expeditionary Brigade (MEB). Naval aviation is divided into three primary mission areas: Tactical Air/Anti-Submarine Warfare (ASW), Fleet Air Support, and Fleet Air Training. Tactical air squadrons conduct strike operations and are flexible in dealing with a wide range of threats identified in the national strategy and provide long range and local protection against airborne and surface threats. Anti-Submarine Warfare squadrons locate, destroy and provide force protection against sub-surface threats, and conduct maritime surveillance operations. Fleet Air Support squadrons provide vital fleet logistics support. Fleet Readiness Squadrons provide the necessary training to allow pilots to become proficient with their specific type of aircraft and transition to fleet operations.

The Navy will decommission one helicopter combat support squadron and one Marine F/A-18 squadron in FY 1996 and three A-6 squadrons, one P-3 squadron, three F-14 squadrons and one Marine F/A-18 squadron in FY 1997. One F-14 squadron and two A-6 squadrons previously scheduled for disestablishment in FY 1997 will be retained. Also beginning in FY 1997, two Navy A-6 squadrons will transition to F/A-18 squadrons and _one F-14 squadron will increase from 10 to 12 primary authorized aircraft per squadron, until these F-14 squadrons transition to F/A-18 squadrons. Additionally, two Navy EA-6B squadrons will stand-up in FY 1996 and two in FY 1997, to support the electronic countermeasures mission formerly provided by Air Force EF-111A forces.

The total number of active aircraft inventory decrease from 3,496 in FY 1995 to 3,367 in FY 1997 (a 3.7% decrease).

Naval Reserve Air Forces

Naval Reserve aviation has expanded its role by accepting more missions from the active Navy. These missions include: consolidation of Active and Reserve airborne mine countermeasures squadrons; 100% of the Navy's adversary mission; the Navy's outconus logistics mission; an E-2 counternarcotics squadron and a portion of the electronic warfare training mission. These are all part of the Navy's effort to employ Reserve Forces to meet operational requirements.

Table 9 reflects active and reserve air operations.

Table 9

Department of the Navy
Air Operations
FY 1995 FY 1996 FY 1997
Air Forces - Active 13 13 13
Air Wings - USN 10 10 10
Air Wings - USMC 3 3 3
Naval Reserve Air Forces
Tactical Air Wings (Navy Reserve) 1 1 1
Reserve Patrol/ASW Air Wings 2 2 2
Reserve Helicopter Air Wing 1 1 1
Reserve Logistics Air Wing 1 1 1
Air Wings (Marine Reserve) 1 1 1
Total Reserve Air Wings 6 6 6
Active Aircraft Inventory 3,496 3,442 3,367
Navy 2,430 2,372 2,307
Marine Corps 1,066 1,070 1,060
Reserve Aircraft Inventory 450 456 453
Navy 265 271 268
Marine Corps 185 185 185

OPTEMPO

The active aircraft flying hour program provides 85% Primary Mission Readiness (PMR) to train and maintain qualified aircrews in the primary mission of their assigned aircraft in FY's 1996 and 1997. This budget also reflects additional PMR and Fleet Air Support in FY 1996 and FY 1997 in support of contingency operations in Bosnia and southwest Asia. This operational tempo (OPTEMPO) supports ten active carrier wings and three active Marine Corps air wings and aviation components of the 1st Marine Expeditionary Brigade (MEB). Fleet Readiness Squadrons are funded at 100% of the requirement to enable pilots to complete the training syllabus. Student levels are established by authorized TACAIR/ASW force level requirements, aircrew maintenance personnel rotation rates and student output from the Undergraduate Pilot/NFO training program. Fleet Air Support requirements correlate with TACAIR operational requirements, while training needs are based on historical execution. Naval Reserve PMR remains funded at 87% in FY 1996 and FY 1997.

Table 10 displays active and reserve flying hour readiness indicators.

Table 10

Department of the Navy
Flying Hour Program
FY 1995 FY 1996 FY 1997
Active
TACAIR Primary Mission Readiness (%) 1/ 86% _89% 88%
Fleet Readiness Squadrons (%) 90% 100% 100%
Fleet Air Support (%) 90% 85% 83%
1/Includes 2% simulator contribution
FY 1995 FY 1996 FY 1997
Reserve
Primary Mission Readiness (%) 1/ 87% 87% 87%
1/ Includes 0.25% simulator contribution

Aircraft Depot Maintenance

The Active Forces Aircraft Depot Maintenance program is structured to achieve a backlog level of 112 airframes and 250 engines in FY 1996. FY 1997 is budgeted at a manageable backlog level of 100 airframes and 250 engines. Projected FY 1996 requirements are the result of incorporation of FY 1995 execution experience and EA-6B repair requirements due to the assumption of the Air Force tactical airborne electronic warfare mission. The FY 1996 maintenance shortfall created by EA-6B repair requirements is funded in FY 1997. The program reflects a substantial decline in DBOF rates in FY 1996 and an increase in FY 1997.

Tables 11 summarize active aircraft depot maintenance.

Table 11

Department of the Navy
Active Forces Aircraft Depot Maintenance
(In Millions of Dollars)
FY 1995 FY 1996 FY 1997
Airframes 443.6 311.4 423.7
Engines 178.5 165.1 146.9
Components 35.5 29.5 32.1
Total: Aircraft Depot Maintenance $657.6 $506.0 $602.7
Airframes Backlogged 91 112 100
Engines Backlogged 263 250 250


MARINE CORPS OPERATIONS

Marine Corps

This budget will support a Fleet Marine Force (FMF) of three active divisions and associated combat support divisions, station support for three aircraft wings and operation and maintenance of training bases, logistics functions and administrative activities.

The budget includes extension of a variety of quality-of-life initiatives including increased funding for BEQ maintenance to continue drawing down the existing backlog. To enhance the quality of life of Marines in the field, this budget continues an accelerated procurement of initial issue items such as tents, sleeping bags and laser eye protectors. Also, beginning in FY 1997, O&M funding (including housing, vehicles and 'travel) for USMC Marine Security Guard (MSG) Detachments will be transferred from the State Department to DON.

Marine Corps Reserve Operations

This budget supports a Marine Reserve Force that includes the Fourth Marine Division, the Fourth Marine Aircraft Wing, the Force Service Support Group and the Marine Corps Reserve Support Command.


MILITARY PERSONNEL

Military Personnel budget estimates include pay raises of 2.4%, effective 1 January 1996, and 3.0%, effective 1 January 1997. This budget also reflects a transfer of the Subsistence- in-Kind (SIK), In Place Consecutive Overseas Tours (IPCOT), and Overseas Tour Extension Incentive Program (OTEIP) from the Navy and Marine Corps Operation & Maintenance appropriations to the Navy and Marine Corps Military Personnel appropriations in FY 1997. This transfer will allow for the efficient and effective management of these programs.

Navy

This budget will support active Navy end strengths of 424,500 and 406,900 in FY 1996 and FY 1997, respectively. Navy's primary focus continues to be quality of life and maximum readiness through selective retention of qualified and experienced personnel. Fluctuations in the amounts for pay and allowances for officers and enlisted are being caused by a change in the Retired Pay Accrual Normal Cost Percentage and the net overall changes in end strength reductions from year to year.

Marine Corps

This budget will support a steady end strength of 174,000 which is the Base Force level for the Marine Corps. The Marine Corps has adjusted its accession phasing plan so that gains are no longer "level loaded" through the fiscal year. As a result of this change, resources have been realigned to support operating forces and operating forces support programs. Also, beginning in FY 1997, Military Personnel funding (including Basic Allowance for Subsistence and Cost-of-Living Adjustments) for USMC Marine Security Guard (MSG) Detachments will be transferred from the State Department to Department of the Navy.

Tables 12 and 13 provide summary personnel end strength data for Military Personnel, Navy and Military Personnel, Marine Corps, respectively.

Table 12

Department of the Navy
Military Personnel, Navy
FY 1995 FY 1996 FY 1997
End Strength
Officers 58,788 58,400 56,100
Enlisted 371,670 362,100 346,800
Midshipmen/NAVCADS 4,159 4,000 4,000
Total: End Strength 434,617 424,500 406,900
Table 13
Department of the Navy
Military Personnel, Marine Corps
FY 1995 FY 1996 FY 1997
End Strength
Officers 17,831 17,978 17,978
Enlisted 156,808 156,022 156,022
Total: End Strength 174,639 174,000 174,000

Chart 4 - Military Personnel End Strength

Naval Reserve

This budget will support Naval Reserve end strengths of 98,894 and 95,941 in FY 1996 and FY 1997 respectively. The Department remains committed to increasing use of the Naval Reserve in the Total Force. The budget will provide for extensive contributory support of the active forces in addition to Navy roles and missions specifically assigned to reserve units. Examples of contributory support include active participation in worldwide contingencies, intelligence support, fleet exercises/ deployments, air logistics operations, counterdrug missions, mine and inshore undersea warfare and extensive medical support of the active forces. The Sea Air Mariner program is being reinstated in FY 1996 to provide non-rated, non-prior service participants in the Reserve Construction Battalions (CB) in an attempt to offset manpower shortfalls for non-rated personnel.

Marine Corps Reserve

This budget will support a Marine Corps Reserve end strength of 42,274 in FY 1996 and 42,000 in FY 1997.

This will ensure availability of trained units to augment and reinforce the active forces, provide a Marine Expeditionary Brigade Headquarters, and provides for the Marine Reserve Force (MARRESFOR), comprised of a Fourth Marine Division, Fourth Marine Aircraft Wing, and Fourth Force Service Support Group, and the Marine Corps Reserve Command.

The budget provides for pay and allowances for Selected Marine Corps Reserves attached to specific units; for Individual Mobilization Augments and personnel in the training pipeline; and Full-Time Support Reserve personnel. Additionally, other training and support funding provides for necessary travel, training and entitlement programs such as education and incentive benefits.

The Department remains committed to increasing the Reserve contributory support capability to enhance and complement the active force while maintaining unit readiness to meet crisis requirements. Tables 14 and 15 provide personnel strength data for these accounts.

Table 14

Department of the Navy
Reserve Personnel, Navy
FY 1995 FY 1996 FY 1997
End Strength
SELRES 83,050 81,145 79,285
Sea/Air Mariner 13 198 150
Full Time Act Duty 17,534 17,551 16,506
(TARS/TEMACs)
Total: End Strength 100,597 98,894 95,941

Table 15

Department of the Navy
Reserve Personnel, Marine Corps
FY 1995 FY 1996 FY 1997
Selected Marine Corps Reserves 40,933 42,274 42,000