tv Navy 2020 Budget Request Briefing CSPAN March 18, 2019 5:56pm-6:38pm EDT
coming up here, more on the pentagon's 2020 budget request with a briefing of what is in the navy's budget plan. that's followed by presentations by officials with the air force and military defense agency. while congress is on break we are showing american history tv programs normally only seen on the weekends. tonight is the civil war and presentations from historians co hosted by the american civil war museum and the university of virginia central war history. you will hear about the causes of the war and how african americans dealt with the war. we begin tonight with paul
macham on cspan3. president trump is supposed to increase ship building. the secretary for the navy briefed us on the president's plan. this is 40 minutes. good afternoon. in a few moments we will have the deputy assistant secretary of the navy for budget presenting the position. following the presentation we will take some of your questions. hi every one. thank you for joining me today as i provide an overview of the
department of the navy's fiscal year president's budget request. i will spend 20, 25 minutes on this and then we will have time for questions. for the navy and marine corps this request fields a -- it's a force to deter but when conflict is required one will be ready. this provides the output for the budget request. it is strategy driven and focused on maximizing the naval power and the force to implement the national strategy. the budget goes on to prior year investments to deliver and increed readiness both today as well as in the future and for the joint flight across the
different domains. our budget proud provides for a larger force and a better force through investments that improve our legacy platforms and provide have a lethal mix of next generation opportunities. i will highlight across the top their beginning with the national security defense and military strategies with secretary spencer's guidance on people, capabilities and processes. navy strategy, distributed maritime operations and design for maintaining superiority 2.0. the central theme of this guidance is the return to great power competition and our fiscal year 20 reflects the implementation of this guidance to assure the department can compete and win and ready to
sustain combat operations to protect america. today's execution of that guidance is the result of the resources that we have available and the hard choices we made in prior years to build the marine and navy. the budget i will show you adapts to the changes we see in the security environment and i want to highlight that. we are seeing an increase in reliance on maritime system. maritime traffic has increased four fold over the last two decades. we have more than 90% of all global goods shipped on the high seas and new trade routes opening up to the north and new technology makes it more available so the take away is that our season is more heavily used. so the competition is clearly
on. we know that both russia and china are fielding high end military capabilities. and so for us to be able to compete in that environment we need to be bigger and better and more ready and that's sort of the outline of this brief. i don't have an agenda slide in here but i will talk to the budget in terms of bigger, better and more ready. next slide. i want to provide an operation of context as well. i highlighted some of the challenges to the things going on around the world today. we have navy and marine corps deployed at sea. 10,000 marines deployed on carrier ships, we have 20,000 sailors, 32,000 marines deployed ashore and 24,000
marines in the pacific. to cover a few examples of operations in activities going on, we have the u.s. cook operations in the black sea. we had the south china sea operations as well as the recent 51 straight transit. so all of that -- much of that around china was focused on the demonstrative freedom and navigation as a matter of fundamental principal. we have the strike group that participated with the french and uk navy. again i would say for a key take away, the navy and marine corps continue to be engaged. they provide immediate response options and assuring allies and deterring adversaries.
to provide a historic trend of the navy's fiscal environment and we start off by saying we are appreciative with the fact we had increasing funding over the last couple of years. the idea of adequate, stable and predictable funding is a high priority, the highest i would say. for fy20 the combine base operation budge for the the department is $205.6 billion, that's base plus the required amount to execute the national defense strategy and the budget you see. this is a four percent .8% increase as compared to the fy19 and active budget and since 17 we averaged 5.7% growth. that's not corrected for inflation, that's just the straight number. last year we talked about the erosion of the military advantage that occurred during the years that you can see in the center of the chart. this budget puts us on a better
trajectory to restore that competitive advantage. the budget increases allow us to increase combat capabilities while we grow capacity where it makes sense. even with the increasing budget, i would point out the gold line that runs across the chart, which is fy10, cost of dollars applies to individual bars so our buying power today is the same level as it was in 2010 and 2011. let's go up to the next chart, please. this slides provides really an overview of how the money moved by appropriation group. where we are at today, it's hard to see but the navy request is 159.7 and marine is 49.9 billion. in all of the groups we are
seeing increasing funding with the exception of procurement. there is a slight decrease there and i will explain the adjustments through the briefing. i want to start off with the readiness and the people because they are the most important resource we have and our greatest advantage in my view. what i would say is that both sailors and marines and active reserves, without them we can't do the missions we are required and at the very top left of the chart it shows the battle force ships increasing. today we are at 289. 301 at the end of fy20, which is a five and a half percent
increase in the battle force ships. at the top of the chart for the navy we grow to 349,000, 500 and that supports the flew platforms and capabilities and addressing fleet needs and reducing gaps. at the bottom for the reserve force this remains steady and delivers a role of operational capability that we continue to preserve our strategic depth and the budget includes the 3.1% pay raise that is highlighted today. so this is the marine corps. increased to 186, 200. that supports the marine corps operating concept and delivers a more capable force. on the bottom for the marine reserves steady at 338, 500. the force is capable of
augmeanting reinforcing and operating the total over all force. next slide. 1.5% between fy19 and fy20 which is balanced to provide for the new capabilities and platforms. we are building more skilled labors and inudclooing scientists and engineers and others as we bring on new technologies and operating concepts and all of this is geared towards implementing and improving readiness. next slide. so i will spend a minute on ship depot and operations. we increase the funding 6.8% over where we were last year and we are funded to the 95% requirement which i believe is the next capacity we have in
20. we are committed to insuring the ships are ready today as well as in the future. in some cases we have maintenance bag logs, more work than we can get pushed through and we have delays and cost growth and we are working to get after that and investing in skilled labor and infrastructure, all focused on growing capacity and improving productivity and work flow and contracting strategy with industrial partners to improve predictability and future work load. we do grow our ship workforce up to 36,000 full-time equivalent. down at the bottom that account increases from 5.5% as compared to last year and funds 58 days
unemployed. the increased investment is also applied to consumable and repair parts for the ships. the bottom line take away from this slide is we deliver ships combat ready and worldwide deployable. let's go to the next slide, please. at the bottom marine corps readiness funding increases are 13% which provides for more capability forces. negligence slide. aviation depot maintenance and air operation. aviation depot is at the top.
funding decreases slightly from 19 to 20. we go from 1.5 to 1.4. this is in alignment with the air frames we have acquired in 20. we have key performance drivers and equipment readiness and spare parts and similar to the ship depot maintenance efforts through data analytics. we are funded to maximum capacity. it is at 95% of our model requirement and we are making second requests strike fighters. for air operations at the bottom we increase that account by 4.2%, which amounts to 25,000 additional hours to align to increasing mission capable rates and funded through the maximum capacity. all quadrants are deploying combat ready and what i would
say as a take away here we continue to provide available aircraft by providing the right part at the right time along with a correct number and mix of skilled maintainers. shifting to installation and facilities, this is an area where we have taken risk in recent years. we have increased funding and navy is at the top and marine corps at the bottom. we are at 85% of the goal which is a good thing. i have a sizable backlog with maintenance and repair of $14 million and for the marine corps it is near 9 million. investment will arrest the degrade over shore facilities and target investments in mission critical infrastructure and i think the increased funding will help with the material condition. we hold the base operating
support steady. they're funding increase is 28% over where it was last year. this supports the infrastructure strategy and contributes to force generation of force readiness. to help with hurricane damage from michael and florence and we are working fy19 in excuse to get additional funds to help substantial damage at the occurred at cherry point new river in albany. next slide. so i want to transition away from the readiness discussion and move to the capacity, the bigger, better part of the brief. i would highlight at the top
that you can see based on the operational context and what we are seeing out there in the world today we need to grow. and so i have highlighted how to grow across. we achieve 355 in fy 44 under the current plan. there is a lawn range plan that will be released next week along with budget material that will provide specifics of how that is achieved and at the bottom i would highlight these are the key capacity people. preferred ammunitions are increasing. we are expanding an the unmanned capacity towards a more distributed lethal and cost imposed enforce as the future of conflict is changing. they help us expand the competitive space we are operating in and we continue
with the stripe fighter and other air draft investments and at the bottom we expand the information warfare efforts. let's go to the next slide. a budget request provides significant investment towards innovation to deliver better forces today and in the future. our research and development account increases by $1.8 billion from 19 to 20, which is a nine and a half percent increase. the ship aircraft and weapons development efforts are sustained. we have columbia class at the top right on track. we begin investment in the future with champ, which is the common multi mission platform we leverage haul and equipment commonality and increase funding for fy35. in the area of weapons development we provide
hypersonic weapons. and through marine corps investments through the combat vehicle, high mobility, the ground based air defense and ground air task oriented radar and the marine corps will enhance the long range decision fires and air defense which lays the foundation for their contribution to any campaign we might have. at the bottom you can see accelerated mission is increased, applies ai and machine learning. next slide, please. so in the area of information warfare and this crosses multiple appropriations and covers competition we are dealing with it every day as people are trying to get into our networks all the way
through lethal combat so we will continue to invest in it the legacy platforms as we modernize those as well as future capabilities. in terms of increases to legacy capabilities that are provided through the other navy account, those are increased. as the budget grows by eight percent. cyber security, command, control, communications, computers, intelligence, the resiliency of the network and infrastructure prioritize the budget. we increase quantities for the surface electronic warfare system. and along the bottom of that chart you can see we are growing our force of information warfare experts. we are leveraging new technology and working on
policy, command and control to insure we can employ it. marine corpses play a major part here and are a big contributesure in the cyber budget arena to fund training for full suspecter cyber operations within the marine corps and personnel information group which helps us manage information operations. next slide. shifting to talking about -- it has been highlighted through the other briefs, autonomy is an area we invested in. we begin procurement of the large vessel. it will be smaller, potentially more cost imposing and more tribal than conventional ships and in addition to be more
affordable. we pro cure 10 vessels, which is 10 per year. they are funded through research and development but we expect to transition the program to ship construction at some point later as we further develop the capabilities of command, control and operations through fleet demonstration. at the center you can see investment in areas like xluv or ocha. they are the under sea man, we pro cure nine of those as well as vehicle assessment. at the bottom empty 25 stingray, we entered into a contract in august for the mq25 which will accelerate the ioc,
initial operating capability. the next slide is ship procurement. the department absolutely appreciates the strong support we receive from congress on naval ship building. last year we requested 10 ships and we were given three additional ships by congress and this year we request 12 battle force ships and i think it was also highlighted earlier with the largest ship construction budget request in 20 years. starting towards the top left, we continue the fourth year of advanced procurement and remains on schedule to meet the first patrol in 2031. we have a second listing laid in fy 24 and will begin production in 26. in the second quarter we awarded the contract to build two carriers, it was a contracting strategy that gained us over $4 billion
inefficiencies and savings, 2.4 billion were inside the private and going down i will point out as part of the work with osd and the line up with national defense strategy we added a third virginia class and fy20 and that brings that program to 11 virginias and 13 destroyers. down, continuing down, we completed the lcs buy for 35 total. we have atlcs awarded in various states of construction which provides sufficient work load as we transition and you can see construction begins in 20. we have nine of those laid in. in fy20 we request two
replenishment oilers and one advanced procurement. the department requested two towing and rescue and there are five of those. we begin construction of the ocean construction. on the ship to shore connector program we restructured that program due to construction backlog and contract delays. in terms of hard choices i will highlight we made the difficult decision to retire the harry truman in lieu of the previous funding schedules to occur in fy24. this is with the defense department's commitment to pursue and diversify investments in next generation capabilities including unmanned
and optially manned system and to provide a strong signal for future capabilities. this pursues a balance of high end platforms like the aircraft carrier as well as a greater number of more affordable and potentially more cost opposing options. this decision is towards the future, mindful we still have time to respond to further analysis. there is a structure assessment and other work on going that will help us validate this decision. let's go to the next slide. in the area of aviation procurement this account decreases by eight percent from last year to this year as we complete the buy on several different type model series and some aircraft we do procure at 20 or lower costs. we continue production of the b and c lightening twos, the split between the navy and marine corps, there are 202 of
those -- i'm sorry, yes, 202 total and 82f-35bravos and 12035c's. to complete the final advanced multi procurement in fy23 and that brings us to 70 aircrafts. we will enter into a multi year contract for the f18, that will expand from fy19 to 21 at 24 aircrafts per year. continuing down we complete the pa aircraft of the final six that takes us to 117. we increase the logistical capacity and capability with the multi year buy with the super tanker and ramp up the production and multi year procurement of the cmv 22 on board delivery variant. on the unmanned front we
purchased 2mq tritans and then you can see the future quantities of the mq 25. the purchase at the bottom there i think you see they fulfill the operations for the marines and we intend to transition with the program record once we complete the program validation process. i want to talk briefly about the next slide. okay. a little about audit to highlight what is going on. a lot of work going on. fy 18 the department completed an audit where we looked at the processes in the systems and the resources which highlighted areas where we need to improve the business practices and internal controls. leaders both inside the navy and marine corps focus on implementing changes to improve. audit uncovered low inventory accuracies which is an area we are looking hard at to put in
systems and accountability. some of the things that this is leading us to were consolidation of the number of financial systems including enhancing the current enterprise resource planning system, strengthening internal controls and also looking at the number of systems we have to feed the financial system and trying to eliminatory do you understandancy. trying to drive this into the culture. at the end of the day the efforts will turn into greater readiness for us. next slide. for reform, in support of the national defense strategy the defense budget operation plan across the different business areas is amines to drive greater efficiency. this is focused on getting the most out of every dollar that we get and this is another area we are doing a lot of good work
on, for our budget request this year you find that between the navy and marine corps we identified 1.9 billion in reform savings and 9.4 billion in addition to $25 billion of savings we are tracking and identified and laid in and continue to be tracked. we track the reforms in five main categories, for example, in the acquisition process, improvement would capture savings some efforts under policy reform. the point here is that audit and reform do go hand in glove and we are trying to be more efficient. next slide. so i think just to summarize we are focused and driving towards a bigger ready naval force we know that competition is on.
there is a lot going on out there. we need to be bigger and better and more ready. we align this program to the strategy and deliver on program wholeness to sustain strategic advantage and i look forward to any questions you might have. >> we have 10 minutes. please identify yourself and your organization. we will get through as many as we can. >> can we talk about the truman? so for example how much money will you save with the fida and over all and as you kind of left the door open for a going back and forth thing, fsan, what is the driving force right now? >> part of this is trying to send a signal we are serious about this. we are focused on some issues and capabilities we need to get and we need to get after it
today. we are not in kansas any more and we have to get moving. that's part of it. i highlight the study and work because we need to prove to ourselves we are making a good decision here. in terms of savings, we captured 3.4 billion of savings and we estimate another 2 billion of savings that are procurement related and then about a billion dollars in savings associated with operations and maintenance and that's the burden cost associated with the carrier and airway. >> i want to ask about aircraft procurement. for fy 2020 there is decreases in f35 procurement and i want to ask if any of that was related to the truman decision or unmanned systems?
>> no. i think some of those are we are getting the completed program in some cases. in terms of the f35 some of that was tied to structure mixes, i believe it was highlighted the mix had that closely this year. so the mix between f35b and c for the marine corps and there was affordability in there. we are trying to build a balanced program and when i mean balanced i mean i have to have everybody, people and readiness across the board. we have constraints we have within the top line and we went after this in an analytic way and this is where the chips fell. >> are there certain programs that you identify as being budget constraint related? >> i would say no. none of those adjustments were related to the truman decision.
i can answer that. >> the large unmanned surface, what are you buying? >> today we are leveraging an effort being brought today in 19, so we will buy2 more of those in 20. i will not get into the capabilities today but it would likely transition to the way we currently envision how this works to something that has vertical launch built in and that would drive us to change the way that program is laid out to ship construction as we validate the requirements. we have to get through details of concept of operations and command control and how it will work in a distributed environment. we need the test articles to see how this will work. >> could you speak to what the budget is doing in terms of the
navy's 20 year optimization plan? the executive summary says that the navy was requiring top line release to execute it. what money is in the budget to do that? >> sure. it's about -- i should have labeled this stuff. too many papers. let me find it here. i think it is right here. here it is. in fy 20 we have $454 million laid in. of that, about 150 million is opn which is tied to procurement of modern repair equipment and tooling. there is 204 million in oman which is focused on modernization of material
handling and ship service support in norfolk and ship yards and additional funds in milcon which provides for improved flood capability in norfolk and carrier docking at pugent sound. we have 2.7 billion as programmed focusing on shipyard improvements. >> you talked about marine corps, there is a program called mux. is that to replace? >> we are still working on the mux program. i don't think i have the numbers. i can get you a more completed answer but we are still working on that. i will have to take a look on
that one. >> the navy budget documents indicates you spent 537 million for the port, is it going to be waited and what happens with the money? >> you are correct in 2008 we procured one and in 2011 we procured the second core tied to the truman and those will go on the shelf as emergency replacement cores for the program and until the life of the ships are done so if they are needed they would be used and if not then no. we expensed the total of roughly 538 million. that's correct. >> is that considered wasted money? it's on the shelf? >> we were work with reactors to be placed on the shelf in
availability in case an emergency situation arrives. >> response you are buying six this year and the plan is nine. does that reflect the many problems the program is having? >> we have a wait on the ch53. we are waiting to get additional money in r & d to make corrections. so yes. >> thank you. >> the aircraft procurement table the helicopter is broken up by navy and marine corps which i thought was odd. >> we probably should put those back together. i don't think there is a reason to have them broken apart. >> hi, can you talk about the large surface combats? you are buying 10 of them. are they validated requirements? >> so as i already stated, the intent is to bring these things
on board to start demonstrating what we can get. there is test articles initially but we will transition as we build the program of record. they are 2,000-ton. i'm not sure what the final form will be. that's what we are using today. in terms of what the ghost fleet buy is but i don't think we know what the form will be. that's more work to be done. >> just to make sure we understand that what are the requirements for the -- coming from? >> it comes from the fact that as we look to the way distributive maritime operations are going to work and how to fight a future fight we are looking at what the
investments need to be and what we need to bring on and this is one of the things we need to bring on and i need to get started to develop the documents and the things you highlight. those things will absolutely come. >> can you communicate what is in the budget for faxx? >> i will have to look up that. i don't recall off the top of my head. >> both for the 20, for the record. >> i don't know the answer to that one, sorry. >> what if the congress does not allow you to retire the truman? how does that effect your plans? >> if we were not allowed to retire it we would have to identify other sources to restore it. we will cross that bridge if we get to it but we will leave it at that.
>> one more question. tell us about the medical facilities, you will cut six of those. how many people are we talking about? >> 100 people in fy 20, about 5300 total over the fdup. this was in alignment with the national defense strategy and the most stressing operational plan to alignment community with what we need to cut the excess. so that's what is going on there. >> what happens to those people? they will be managed very carefully through normal attrition and that's how that will work. >> that's all the time we have today.