1997 Congressional Hearings
Special Weapons
Nuclear, Chemical, Biological and Missile





STATEMENT OF

THE HONORABLE JOHN W. DOUGLASS

ASSISTANT SECRETARY OF THE NAVY

(RESEARCH, DEVELOPMENT AND ACQUISITION)

AND

VICE ADMIRAL DONALD L. PILLING, USN

DEPUTY CHIEF OF NAVAL OPERATIONS

RESOURCES, WARFARE REQUIREMENTS AND ASSESSMENTS

AND

LIEUTENANT GENERAL JEFFREY W. OSTER, USMC

DEPUTY CHIEF OF STAFF

PROGRAMS & RESOURCES

BEFORE THE

SUBCOMMITTEE ON NATIONAL SECURITY

OF THE

HOUSE APPROPRIATIONS COMMITTEE

ON

FY 1998 NAVY/MARINE CORPS ACQUISITION





MARCH 6, 1997



Mr. Chairman, distinguished members of the Subcommittee, thank you for 

this opportunity to appear before you to discuss the Department of the 

Navy's FY 1998 RDT&E and Procurement budget request.



Once again, world events during the past year reaffirmed the critical 

importance of forward deployed, combat ready naval forces.  Last March 

the NIMITZ and INDEPENDENCE Battle Groups moved into the South China 

Sea in a measured, but swift, response to tensions in the Taiwan 

Strait.  From April through August, the 22nd Marine Expeditionary Unit 

(Special Operations Capable) [(MEU(SOC)] and the GUAM Amphibious Ready 

Group (ARG) supported the evacuation of several hundred American 

citizens and country nationals from crises in Liberia and the Central 

African Republic.  In September the CARL VINSON CVBG was at the center 

of a joint response to Iraqi aggression against the Kurds.  Our 

reliance on the Navy-Marine Corps Team as the nation's premier 

response force should not be surprising.  Sea-based forces are 

sovereign extensions of our nation in international waters.  They a

re unencumbered by the treaties and access agreements that land-based 

forces require to operate in foreign countries.  Naval Forces also 

offer the flexibility of acting either from beyond the horizon or 

within full view of a potential aggressor.  They are, indeed, a most 

flexible, powerful and convincing tool in protecting our national 

interest and supporting foreign policy.



However, with resources limited and operational demands for naval 

forces remaining at Cold War levels, the Department's greatest 

challenge is to strike the right balance between meeting today's 

readiness requirements and modernizing the fleet for the 21st Century.  

With the "rightsizing" of our forces nearly complete, the Department's 

FY 1998 procurement, Research, Development, Test and Evaluation 

(RDT&E) and National Defense Sealift Fund budget requests reflect a 

commitment to the recapitalization of our Naval forces with a 

cumulative increase of more than $710 million over the FY 1997 

procurement budget; driven primarily by increases in our shipbuilding 

and conversion account.



As we invest in our platforms and weapon systems, the Department 

continues our strong commitment to reform the business side of 

acquisition.  Our acquisition reform initiatives have met with great 

success and are well on their way to being institutionalized.  In 

addition, we have made significant progress in both international 

cooperation with our defense programs and in increasing the quality of

our acquisition workforce through our professional Acquisition 

Workforce Program.



The following provides more detailed information of our most 

significant RDT&E, Shipbuilding, Aviation, Expeditionary Force, Mine 

and Undersea Warfare, C4I, and acquisition business management 

programs.  These programs reflect the priorities and requirements 

established by the warfighters-the theater Commanders-in-Chief.





RESEARCH, DEVELOPMENT, TEST AND EVALUATION (RDT&E)



Our RDT&E programs are directly responsible for our status as the most 

powerful and advanced Naval force in the world.  Some of the most 

significant RDT&E projects include the programs that will ensure our 

military superpower status well into the 21st  Century.  They include:  

the V-22 Tiltrotor; F/A-18E/F Super Hornet; Joint Strike Fighter 

(JSF); New Attack Submarine (NSSN); Surface Combatant-21; CVN 77; 

CV(X); Arsenal Ship; Tomahawk Baseline Improvement Program (TBIP); 

Cooperative Engagement Capability (CEC); and Joint Direct Attack 

Munitions (JDAM)/Joint Stand-Off Weapon (JSOW);Advanced Amphibious 

Assault Vehicle (AAAV); and the Commandant's Warfighting Lab (CWL).



The Department of the Navy's RDT&E budget request for FY 1998 is $7.6 

billion, about $245 million less than FY 1997.



Science And Technology

     The Department continues to place emphasis on Science and 

Technology (S&T)--the front end of the research, development, and 

acquisition process.  The goal of science and technology is to provide 

the Department with more affordable and more capable systems, improve 

current systems through appropriate technology insertion, and offer 

the potential for revolutionary technological "breakthroughs."

  A continuing flow of new technology is the cornerstone of on-going 

fleet modernization efforts and translates directly to improved combat 

performance, lower life-cycle costs, reduced risk and increased 

reliability.



     The Department of the Navy budget request for the FY 1998 

integrated Science and Technology program is $1.3 billion which is 

divided between: Basic Research programs-- for generating entirely new 

concepts and establishing the knowledge base required for 

technological advance; Applied Research programs-- for establishing 

the technical feasibility of emerging concepts; and, Advanced 

Technology Development programs-- for demonstrating specific 

technologies for naval systems.  The Department's investments in S&T 

are directed at technological problems that do not have a ready-made 

or easily adaptable commercial solution.



Advanced Technology Demonstrations

     Advanced Technology Demonstrations (ATDs) are the S&T community's 

most identifiable route to acquisition transition.  They are excellent 

vehicles for showing the results of years of patient, painstaking 

research.  In FY 1998, eight new ATDs will be initiated.  Examples of 

these include: Low Observable Multi-function Stack; Rapid Airborne 

Mine Clearance System; Anti-torpedo Torpedo Technology.



     The Low Observable Multi-function Stack ATD will demonstrate a 

surface ship composite exhaust stack with embedded multi-function 

satellite communications antennas.  This technology will provide 

increased information warfare capability while reducing topside 

signature, volume, weight, and mast antenna population.



     The Rapid Airborne Mine Clearance System ATD will demonstrate a 

new system to detect, target and explosively destroy near surface 

mines using laser directed fire.



     The Anti-torpedo Torpedo Technology for Surface and Submarine 

Applications ATD will demonstrate technologies which can be 

incorporated into existing and planned torpedo systems to improve ship 

and submarine point defense.



Advanced Concept Technology Demonstrations

One of the most recent and highly successful Advanced Concept 

Technology Demonstrations (ACTDs) demonstrated great advances in 

cooperative engagement technology.  The Cruise Missile Defense (CMD) 

ACTD "Mountaintop" demonstrated the first-ever beyond-radar-horizon 

engagements of cruise missile targets.  The joint Navy-Army 

demonstration culminated with 100 percent successful Navy live firing 

tests and 98 percent success rate for more than 100 Army-simulated 

engagements.



Examples of ACTDs in FY 1998 include the Precision SIGINT Targeting 

System (PSTS) and the Joint Countermine program.  The PSTS will 

conduct two demonstrations in Korea where tactical users will be 

provided near real time targeting information and sensor-to-shooter 

target updating using existing national and tactical assets.



 The Joint Countermine ACTD will demonstrate the potential to conduct 

seamless amphibious mine countermeasure (MCM) operations from sea to 

land.  The demonstration will integrate Army, Navy, and Marine Corps 

technology developments and fielded military equipment.  The ultimate 

goal is to demonstrate emerging mine counter-technologies, operational 

concepts and doctrine in MCM support of amphibious and other 

operations involving Operational Maneuver From the Sea and follow-on 

land operations.  This Joint Countermine ACTD effort will emphasize 

clandestine surveillance/reconnaissance and detection capabilities.



Manufacturing Technology

     Our Manufacturing Technology (MANTECH) program is designed to 

improve productivity of the industrial base and make our weapon 

systems and platforms more affordable.



Based on budgetary constraints and the need to achieve balance in the 

program that we present to you, we have established overall Department 

MANTECH funding targets at about $36 million per year.  We are 

therefore focusing our program on critical manufacturing technologies 

in core areas.  This past year, a MANTECH Executive Steering Committee 

was established, chaired by the Chief of Naval Research and comprised 

of technical directors from the Department's Systems Commands, program 

executive officers, and a Chief of Naval Operations representative.  

Through the efforts of this steering committee, we have established 

core efforts in composites manufacturing through our Composites 

Affordability Program; electronics through our Programmable Electronic 

Building Blocks effort; shipbuilding through our Gulf Coast Maritime 

Technology Center and the National Shipbuilding Research Program; and 

life-cycle support through our Repair Technology Program.  These 

programs support Congressional direction to better meet naval 

requirements, and the expectation that industry share some of the 

production technology costs to account for some of the commercial 

benefits that they will receive from these technologies.  With this 

targeted focus, we expect to better integrate these technology efforts 

with specific Navy and Marine Corps acquisition programs.



SHIPBUILDING PROGRAMS



The total FY 1998 budget request for Shipbuilding & Conversion (SCN) 

is $7.4 billion for the acquisition of three ARLEIGH BURKE (DDG 

51)Class guided missile destroyers, construction of the lead New 

Attack Submarine (NSSN) and the refueling complex overhaul of the USS 

NIMITZ(CVN 68).  The FY 1998 SCN budget request also includes final 

funding for SSN 23, advanced procurement funds for the follow on

 NSSN, and advanced procurement funds for a refueling complex overhaul 

for USS EISENHOWER (CVN 69).



Shipbuilding Industrial Base

     Our nation's critical shipbuilding industrial base has been in 

decline since 1980.  The downsizing of the Navy and the lack of 

significant commercial shipbuilding business has resulted in a 

reduction in the number of ships (both Navy and commercial) under 

construction at U.S. shipyards from 181 in 1980, to 58 in 1997--a 68% 

decrease-- with a corresponding 60 percent drop in shipyard employment 

levels.  During this same period Navy shipbuilding alone declined from 

108 to 39.  More alarmingly, since 1991 the number of Navy ships under 

construction has dropped from 135 to 39.  If current trends continue, 

this figure could drop to the low 20s over the next five years.  This 

decline in shipbuilding demand is of great concern to the Navy because 

it carries an extra cost burden on remaining shipbuilding programs.  

Clearly, the Navy's shipbuilding requirements alone are not enough to 

sustain the current shipbuilding industrial base.



     The FY 1998 shipbuilding plan stabilizes the nuclear industrial 

base and complex surface combatant industrial base which include not 

only the shipbuilders, but hundreds of suppliers that provide 

equipment and engineering services to support Navy shipbuilding 

programs.  The replacement carrier programmed in FY 2002 and the 

innovative teaming strategy proposed for the construction of four New 

Attack Submarines over the next five years maintains the submarine and 

aircraft carrier nuclear industrial base.  In a similar manner, the 

DDG 51 multiyear plan implements a long-term acquisition strategy that 

lowers costs, reduces disruptions from hiring and layoff cycles, 

level-loads employment, and encourages capital investments; thus 

improving the performance, efficiency, and viability of the complex 

surface combatant industrial base.  These actions have been critical 

first steps toward ensuring the long term viability of the 

shipbuilding industry to support our future construction programs for 

the 21st Century in a fiscally constrained environment.



     In the long term, we need consensus on the future of the 

shipbuilding industrial base from all stakeholders.  This includes 

support of shipbuilders' efforts to become competitive in the 

commercial market, a National Defense Features program, sustained Navy 

construction, Foreign Military Sales initiatives from industry and 

other initiatives, like Charter and Build for our Combat Logistics 

Force.  Many other areas of defense (aircraft, electronics and land 

systems) have seen a consolidation in order to maintain core 

capabilities and business viability.  Similar trends in shipbuilding 

are not apparent but will be required.  The future of the shipbuilding 

industrial base must be addressed in order to assure the long term 

health of the U. S. shipbuilding industry and the procurement of 

affordable warships in the future.



ARLEIGH BURKE (DDG 51) Class Destroyer

The FY 1998 budget request includes $2.82 billion for the first three 

of a planned 12 ship multiyear procurement of DDG 51 class destroyers.  

This is the first time that the multiyear procurement concept has been 

applied to a major shipbuilding program, and savings in excess of $750 

million across the four year multiyear procurement have been reflected 

in the FY 1998 through 2001 DDG 51 class budget.



The ARLEIGH BURKE (DDG 51) class destroyers procured in FY 1998 will 

be Flight IIA ships, with the last ship procured having the upgraded 

SPY-1D(V) radar system installed.  SPY-1D(V) further enhances the 

combat proven capability of this multi-mission surface combatant with 

a significantly improved radar system.  Extensive use of commercial-

off-the-shelf (COTS)equipment throughout the ship ensures improved 

performance at reduced cost.  The first DDG 51 Flight IIA contract was

awarded in FY 1994.



Four DDG 51 Flight II ships will be delivered in FY 1997 and three 

will be delivered in FY 1998, all well within budget and schedule.  

The current DDG 51 program includes a total of 57 ships.



New Attack Submarine

     The New Attack Submarine is the Navy's first submarine designed 

to satisfy a broad spectrum of regional and littoral mission 

requirements while retaining blue-water undersea battlespace 

dominance.  With added emphasis on expeditionary warfare in the 

littoral environment, the New Attack Submarine will surpass the 

warfighting and surveillance  performance of any current or projected 

threat submarine.  The ship will have improved electromagnetic 

stealth, sophisticated surveillance capabilities, special warfare 

enhancements and will provide for SEAWOLF level quieting in a smaller 

platform.  New Attack Submarine will be able to launch advance-

capability heavy-weight torpedoes, all configurations of land-attack

and anti-ship cruise missiles, and mines in the present and planned 

inventory. Special Operations Forces capabilities have been 

incorporated into the ship's design from the start.  Covert launch and 

recovery of forces are supported by an integral lock-in/lock-out 

chamber and/or swimmer delivery vehicles, including the Advanced SEAL 

Delivery System.



     The New Attack Submarine design also focuses on affordability.  

The extensive use of computer aided design and engineering tools and 

virtual models have substantially improved the design process.  

Virtual models allow engineers and designers to accurately assess and 

incorporate new technology to respond to changing missions, threats 

and resources.  Innovations such as open systems architecture 

electronics, enhanced modular construction and the use of COTS 

technology provide the flexibility for and reduce the cost of 

technology insertion.  The New Attack Submarine balances military 

performance requirements with affordability, while providing the 

flexibility for future technology insertion.



The Department is ready to proceed with lead ship construction and has 

requested $2.6 billion in FY 1998 for the design and construction of 

the first New Attack Submarine.  The budget request supports the 

proposed innovative teaming arrangement for procurement of four New 

Attack Submarines over the next five years from Electric Boat 

Corporation and Newport News Shipbuilding.  The use of a single

contract for the four submarines is a key element of the Navy plan 

because it provides the business incentive for the two submarine 

shipbuilders to team.  The approach generates substantial cost savings 

over the previous plans.  This acquisition strategy is affordable, 

executable and supports our national security requirements.



SEAWOLF (SSN 21) Class Submarine

     The SEAWOLF (SSN 21) class submarine is the most sophisticated 

and capable submarine in the world.  It is designed to operate 

autonomously against the world's most capable submarine and surface 

threats.  This impressive capability translates directly into enhanced 

joint warfighting performance in high threat littoral areas.  SEAWOLF 

is multi-mission capable.  In addition to its robust capability to 

counter enemy submarines and surface shipping, SEAWOLF is ideally 

suited for strike, intelligence and warning, reconnaissance and 

surveillance, clandestine missions and Battle Group support.  With an 

increased number of torpedo tubes and an increase in weapon magazine 

size over the 688 class submarines, SEAWOLF is exceptionally capable 

of establishing and maintaining battlespace dominance.



The SEAWOLF program totals three submarines.  SEAWOLF (SSN 21) met or 

exceeded preliminary expectations for power plant and acoustic 

performance during initial(ALPHA) and second (BRAVO) sea trials.  SSN 

21 will complete final sea trials and be delivered this Spring.  SSN 

22 is approximately 75% complete and is scheduled to be delivered in 

1998.  The final funding increment of $154 million for SSN

 23 is in the FY 1998 budget request.  SSN 23 is approximately 20% 

complete and will deliver in 2002.  We are continuing to monitor 

performance against the Congressionally mandated cost cap.  Due to 

aggressive efforts to manage cost, it is expected that we will be able 

to complete the three ships within that cap.  Termination costs for 

the fourth and follow-on ships occurred prior to establishment of the 

cost cap.  The current cost cap language should be clarified regarding 

how such termination costs are to be treated, and regarding the 

backfit of improvement arising from research on the New Attack 

Submarine.



Aircraft Carrier Programs

     The Navy's aircraft carrier programs are proceeding along a dual 

track strategy.  In the near term, to maintain a force structure of 

eleven carriers plus an operational/reserve carrier, the Navy plans to 

build CVN 77, the "Smart Transition" carrier.  CVN 77 will incorporate 

the latest technologies that will reduce life-cycle cost and provide a 

bridge to the carrier of the next century, CV(X).  The next generation 

carrier, CV(X), will be a more modern, affordable aircraft carrier 

that will be a multi-mission, multi-threat tactical aviation sea-based

platform.  Besides affordability, the key objective for the CV(X) 

program is to capitalize on technology in a clean sheet design to 

improve core carrier capabilities including ship survivability, joint 

C4I, and operations for current and future aircraft such as F/A-18E/F, 

JSF and the follow-on to JSF.



     The key to the success of the CV(X) program is acquisition 

affordability and reduction in life-cycle "ownership" costs.  The 

CV(X) carrier program will remain in service throughout the next 

century.  Accordingly, it is critical now to provide adequate research 

and development investment to save on life-cycle costs in the future.  

The FY 1998 budget request includes $90.2 million for CV(X) Research 

and Development funding.



     To better understand the impact on life cycle costs, and the need 

to provide adequate investment early in new ship design, it is helpful 

to observe that each CV(X) aircraft carrier that this nation builds is 

anticipated to have a fifty year service life.  Using historical data, 

we can expect the first CV(X) carrier to respond to approximately 

twenty major crises and possibly three major conflicts; the carrier 

will conduct over 500,000 aircraft launches and recoveries, spend 

approximately 6,000 days at sea, and steam a total of three million 

nautical miles.  Over 100,000 men and women will serve aboard each 

CV(X) over the life the carrier.



21st Century Surface Combatant (SC-21)

The 21st Century surface combatant is the key element in our long term 

surface ship modernization program.  Conceived as a family of related 

ships sharing common architectures, SC-21 ships will eventually 

replace retiring FFG-7, DD-963, DDG-993, CGN-36 and CG-47 class ships 

through the first third of the next century. Conceptual studies begun 

in 1995, will be completed this year and will serve to define the 

nature and character of this critical family of surface combatant 

ships.  SC-21 will incorporate advanced features which will increase 

capability while reducing the life-cycle cost of the ship.  As such, 

SC-21 will benefit from the efforts currently underway on the Navy's 

Smart Ship, USS YORKTOWN (CG-48). The SC-21 class will have two 

primary missions: to establish comprehensive battlespace dominance and 

influence events ashore through the application of precision 

firepower.  The FY 1998 budget includes $55 million for SC-21 Research 

and Development funding.



Arsenal Ship

The Arsenal Ship is a joint DON/DARPA demonstration project.  It is 

conceived as an entirely new concept ship capable of maximum firepower 

supported by an integrated command and control system featuring 

cooperative engagement capability and off-board weapons launch 

command.  Over the past year we have conducted two competitive design 

reviews and down selected from six to three industry teams.  It

is intended that selection of the final design and construction team 

will be made in early 1998 with the goal of going to sea in 2000.



Two of the principle goals of the demonstration project are to  

minimize life-cycle cost through the extensive use of automation in 

the engineering, damage control and ship and weapons control systems, 

and to limit the crew size to no more than 50.  The Arsenal Ship 

effort is funded jointly by the Navy (FY 1998; $103 million) and DARPA 

(FY 1998; $47 million) RDT&E.



Surface Warfare Programs

The budget maintains funding for various ship defense programs and 

battle group defense programs including the Ship Self Defense System 

Mark 1 (SSDS MK-1), the Advanced Combat Direction System (ACDS) and 

Advanced Integrated Electronic Warning System (AIEWS).  Initial 

procurement is underway for the all-up-round and upgrade kits of the 

Standard Missile Block IIIB variant which incorporates the Missile 

Homing Improvement Program (MHIP).  Procurement of the Standard 

Missile Block IV variant continues as requested in FY 1997.  We have 

continued development and procurement of the Cooperative Engagement 

Capability (CEC), the Close In Weapons System (CIWS), and the Evolved 

Sea Sparrow Missile (ESSM), all integral to SSDS MK-1.  Bottom line: 

our budget continues an all out effort to protect our Sailors and 

Marines serving aboard ships against missile attack.



The budget request continues to support our commitment to improving 

our Naval Surface Fire Support capability through the development of 

the high energy upgrade program for the 5 inch MK 45 gun and the 

Extended Range Guided Munition round. These programs will provide 

accurate and lethal naval fires from beyond the horizon to support 

amphibious operations and the continuing land attack.



To ensure strategic deterrence, the annual procurement rate for the 

TRIDENT II (D-5) missile program continues to be 7 missiles per year 

across FYs 1997-1999 and 12 missiles in FYs 2000 and 2001 pending 

final decisions on START II ratification.  MK-48 ADCAP torpedo 

performance upgrades began in FY 1995 and continue though the FYDP.  

The quantity budgeted for procurement over the FYDP has been reduced 

from 1,386 to 1,110 kits, reflecting decreased requirements.





     NAVAL AVIATION PROGRAMS



The Department of the Navy operates ten active USN carrier air wings 

and three active Marine Corps (USMC) airwings.  The FY 1998 Aircraft 

Procurement budget requests $6.1 billion for 51 aircraft and other 

aviation modernization and upgrade programs.  The 51 aircraft procured 

include 20 F/A-18E/Fs, 5 V-22s, 3 E-2Cs, 12 T-45s, and 11 AV-8B 

Remanufactured aircraft.



F/A-18E/F Super Hornet

The F/A-18E/F is the Navy's number one aviation program and critical 

to the future of our carrier airwings.  The Super Hornet program is on 

track, within cost, below weight and meeting all performance criteria.  

All seven of the flight test aircraft have been delivered to the Naval 

Test Center at Patuxent River.  In January, 1997, the Super Hornet 

successfully completed initial carrier qualifications.



The F/A-18E/F modernizes the Navy's tactical aviation through the 

affordable and low risk evolution of the F/A-18C/D.  The FY 1998 

budget request includes $2.2 billion for the procurement of 20 F/A-

18E/F aircraft and $267.5 million for continued RDT&E.  The 

procurement of the first Low Rate Initial Production (LRIP) aircraft 

will begin the orderly transition of the F-14 and F/A-18A/B/C/D 

inventory to this improved strike fighter aircraft.  Compared to 

earlier model F/A-18s, the Super Hornet will immediately and 

significantly increase our capability in every mission area.  It 

provides greater range, greater payload flexibility, increased 

capability to return to the carrier with unexpended ordnance, and a 

new aerial refueling platform compatibility integral to the carrier 

airwing.  It also incorporates enhanced survivability features, and 

provides growth potential for future technology.  This aircraft will 

make up the majority of strike fighter assets for decades, and with 

the JSF aircraft, continue to provide our nation with credible power 

projection capability from our forward deployed carrier battle groups.



Total planned procurement for the F/A-18E/F is 1,000 aircraft.



MV-22 Osprey

The MV-22 is the highest acquisition priority for Marine Corps 

aviation and critical to the implementation of our Operational 

Maneuver from the Sea concept.  The V-22 Osprey is designed to replace 

the Marine Corps CH-46E and CH-53D as well as the Special Operations 

Command TH-53A, MH-53J, MH-47D, MH-60G, MC-130E, HC-130 and HC-130E.



The total FY 1998 MV-22 budget request is $1.1 billion, with $542 

million earmarked for procurement of five MV-22's, and $529 million 

for continued RDT&E.



The acquisition of this medium lift tiltrotor, vertical/short takeoff 

and landing (VSTOL) aircraft represents a revolutionary leap in our 

ability to project forces from over the horizon toward inland 

objectives.  The MV-22 will fly significantly farther and faster with 

a greater payload than our aging fleet of medium lift CH-46 

helicopters.  Its ability to carry 24 combat-loaded Marines at a 

cruising speed of 240 knots is key to the execution of maneuver 

warfare.  This combat multiplier nearly triples the present day 

battlespace and will give commanders the tactical flexibility to 

respond, adapt to, and defeat a wide range of threats.  The MV-22 will 

give us the ability to maintain battlefield dominance well into the 

21st Century.



Low rate initial production began in FY 1997 with an Initial Operating 

Capability (IOC) of 2001.  The current acquisition profile for the MV-

22 will complete the projected 425 aircraft procurement in 25 years.



Joint Strike Fighter (JSF)

The Joint Strike Fighter (JSF) program is the Department of Defense's 

focal point for defining future strike aircraft and weapon systems for 

the Navy, Marine Corps, Air Force, and our allies.  The overall DoN FY 

1998 budget request for the JSF RDT&E is $449 million.  The program 

emphasizes affordability-- reducing thelife-cycle cost of development 

and production programs.  The JSF program merges fully validated and 

affordable joint operational requirements with demonstrated cost 

leveraging technologies and flying concept-demonstration aircraft to 

lower risks and costs prior to entering Engineering and Manufacturing 

Development (E&MD) of the JSF in FY 2001.



JSF will lay the foundation for an affordable family of strike 

aircraft which meet or exceed individual Services requirements.  

Initial delivery of operational JSF aircraft variants is anticipated 

circa 2008.  Maintaining the JSF schedule is vital to the future of 

Navy/Marine Corps aviation.  As directed by Congress, DARPA's Advanced 

Short Takeoff/Vertical Landing concept has been fully integrated into 

the JSF program.



AV-8B Remanufacture

     The remanufacture of the AV-8B Day Attack Harrier to the AV-8B 

II+ Night/Radar Attack configuration will significantly increase the 

multi-mission capabilities of the Harrier.  The FY 1998 budget request 

includes $296.6 million for the purchase of 11 aircraft.  Full AV-8B 

remanufacture requirement is funded in the FYDP for the remaining 33 

aircraft of the 72 total aircraft remanufacture program.



4BN/4BW

     The AH-1W and UH-1N helicopter upgrade (4BN/4BW) addresses 

current operational and safety issues and extends the service life of 

both aircraft until the 2020 time frame.  One hundred eighty AH-1Ws 

and 100 UH-1N will be remanufactured with a new four-bladed rotor 

system, tail drive system and a new integrated cockpit.  The program 

is designed to achieve maximum commonality between aircraft.



     Both the Department and OSD evaluated alternative aircraft 

procurements in lieu of the planned remanufacture and found the 

4BN/4BW plan the most cost effective.  The program is currently in the 

E&MD phase with a FY 1998 RDT&E budget request of $80.7 million.  

Remanufacture is planned from FY 2002 through FY 2011.



EXPEDITIONARY FORCES PROGRAMS



The FY 1998 budget request maintains support for the Operational 

Maneuver From the Sea concept with continued modernization and 

recapitalization of Marine Corps combat forces.  Marine Corps programs 

are budgeted under the RDT&E; Procurement, Marine Corps (PMC); and 

Procurement of Ammunition, Navy and Marine Corps (PANMC) accounts.  

The FY 1998 Marine Corps procurement and ammunition budget request is 

$473 million.  The Marine Corps highest priority programs in these 

accounts are the Advanced Amphibious Assault Vehicle (AAAV), the 

Lightweight 155mm Howitzer (LW155), Medium Tactical Vehicle 

Remanufacture (MTVR), and joint C4I connectivity.  The AAAV, currently 

in the Program Definition & Risk Reduction (PPDR) phase and funded 

under the Research and Development budget , will begin production

after the turn of the century.  Both the MTVR and the LW155 are in 

E&MD.



Advanced Amphibious Assault Vehicle (AAAV)

The Advanced Amphibious Assault Vehicle (AAAV) program is the Marine 

Corps' number one priority ground development program in FY 1998 and 

considered the most critical ground combat requirement within the 

Marine Corps.  With its ability to maintain high maneuverability, 

speed, and firepower during waterborne assaults, the AAAV will 

dramatically improve our forcible entry capability.  For the first

time, Marines will be able to directly link maneuver of ships with the 

landing force maneuver ashore, fully complementing the MV-22's 

capabilities and allowing the full potential of Operational Maneuver 

From the Sea to be realized.  The Advanced Amphibious Assault Vehicle 

will carry 17-18 combat equipped Marines at three times the water 

speed and significantly increases survivability over the current 

Amphibious Assault Vehicle which will soon be reaching the end of its 

service life.  The FY 1998 budget request of $61.3 million reflects 

the second full year of the Program Definition Risk Reduction (PDRR) 

phase contract and includes funds to begin procurement of materials 

for prototypes.



Lightweight 155 Howitzer (LW155)

The Lightweight 155 Howitzer (LW155) program is second only to the 

AAAV in terms of weapons development priority for the Marine Corps.  

The light weight design of the LW155 markedly improves the tactical 

and strategic mobility of artillery units.  The LW155 is a joint 

Marine Corps/Army acquisition program with the Marine Corps as the 

lead service.  A seven month technical and operational "shoot off" 

between competitors was completed in December 1996.  Source selection 

to a single contractor and award of an E&MD contract (with options for 

the first two years of production) occurs in March 1997.



The FY 1998 budget request of $35.3 million supports continued E&MD 

efforts.  Eight additional prototypes will be built during E&MD 

incorporating the lessons learned from the 1996 shoot-off.  

Developmental testing starts in FY 1998 and Milestone III and 

production are scheduled for the second quarter of FY 2000.  Marine 

Corps IOC occurs in 2002.



Medium Tactical Vehicle Remanufacture (MTVR)

Funding is included in the FY 1998 budget request for the Medium 

Tactical Vehicle Remanufacture (MTVR) program.  This remanufacturing 

program extends the life and increases the capability of our aging 5-

ton truck fleet.  The MTVR represents the best value for the Marine 

Corps.  The remanufacture will provide the most capable cargo truck in 

its class in the world; capable of dramatically improved mobility in 

off-road conditions and increased capacity to carry ammunition while

towing 155mm Howitzers.  The MTVR program is managed by the Army and 

harmonized with the future Army truck remanufacture program.  Initial 

Production of the MTVR is planned in FY 1999.



Marine Corps Communications Programs

In an effort to ensure connectivity and interoperability on the 

battlefield, several communications and electronics initiatives are 

under way.  These include Manpack Secondary Imagery Dissemination 

Systems (SIDS) and the Intelligence Analysis System (IAS).  SIDS 

provides the capability to collect, store, display and transmit 

imagery in near-real time.  IAS provides finished intelligence data to 

the commander in near-real time.



To continue base modernization, the Marine Corps will invest in Base 

Telecommunications Infrastructure to upgrade systems with a fiber 

optic backbone capable of disseminating data and information requiring 

high bandwidth, such as computer modeling and simulation, 

intelligence, and video conferencing.  New infrastructure switching 

systems will support garrison units and help sustain those deployed.





In support of the Fleet Marine Force, the Tactical Data Network (TDN) 

will provide an integrated data network to form the backbone for the 

Marine Air Ground Task Force (MAGTF) tactical data network systems.  

It will provide file transfer services and a variety of message 

handling capabilities linked to existing radio networks.  Another 

MAGTF enhancement, the Digital Technical Control (DTC) facility, will 

greatly enhance the control of major tactical communication and data 

systems for the MEF command element and subordinate commands.  Using 

new digital technology, DTC will be integrated with TDN and the 

multitude of single channel and multi-channel communication networks 

to provide seamless communications while making efficient use of 

limited bandwidth and equipment.



Other Expeditionary Forces Programs

The Predator, formally know as the Short Range Assault Weapon (SRAW), 

program will provide a lightweight anti-tank weapon capable of 

defeating the most advanced armored threats in the world.  This 

program is a joint effort with the Army for delivery of their Multi-

purpose Individual Munitions.



 The Marine Corps is also pursuing several night vision equipment 

initiatives to enhance warrior capability.  The Monocular Night Vision 

Device provides night observation capability to small unit leaders and 

the Scout Sniper Night Enhancement Device will replace the current 

sniper scope, allowing for more accurate firing during day and night 

operations.







Commandant's Warfighting Lab (CWL)

     The Commandant's Warfighting Lab (CWL) serves as the cradle and 

testbed for the development of enhanced operational concepts, tactics, 

techniques and procedures which will be progressively introduced into 

the Fleet Marine Force in concert with new technologies.  The CWL is 

the integrating ground for new technologies, a focal point for 

warfighting refinements, and the critical engine to take the Marine 

Corps into the next century.



     The CWL has developed a Five Year Experimentation Plan (FYEP) 

which will serve as a guideline for planning and experimentation.  The 

FYEP is divided into three Phases: Hunter Warrior, Urban Warrior and 

Capable Warrior.  Hunter Warrior began in FY 1996 and continues in FY 

1997.  Urban Warrior will begin in FY 1997 and will continue until FY 

1999.  Capable Warrior begins in FY 1999 and concludes in FY 2000.  

The focus of Urban Warrior will be on operations is urban, near urban 

and close terrain.  Units will conduct intelligence gathering, 

targeting, maneuver and close combat.  For FY 1998, focus areas 

include C4I fires and targeting and non-lethal weapons.



The CWL's experimental activities and strategically placed liaison 

officers enable it to interface and coordinate with the Army Battle 

Labs, other DoD warfighting labs, institutions of higher education and 

private industry in an attempt to capitalize on technological 

innovation.





COMMAND, CONTROL, COMMUNICATIONS, COMPUTER AND INTELLIGENCE (C4I) 

PROGRAMS



   Our future warfighting environment is projected to be 

unpredictable, fast paced, highly lethal, and widely dispersed.  It 

will also involve cooperative, long range engagements and a highly 

responsive Command and Control decision cycle.



Accordingly, we are developing the C4I architectures, drafting our 

platform and system master plans and acquiring systems, products and 

services to meet this challenge.  This approach is called the 

Copernicus...Forward strategy, which serves as the architecture for 

the integration of systems, products and services which together 

achieve the seamless information environment required by our modern 

warfighters.  Copernicus focuses on five main precepts:



* Modern precision weapons require more, not less, information.



* The operator should be able to "pull" information from the outside 

rather than

 having it "pushed" to him, clogging both physical and mental 

channels.



* Information must be handled in multiple formats (e.g., voice, video, 

data).



* Pathways for information must move beyond HF and UHF to include 

Extremely High Frequency, commercial satellite communication (SATCOM) 

and other media.



* Technology should be "commercial off-the-shelf," adhering to Open 

Systems standards.



The following list make up the mainstay of the Department of the 

Navy's Command, Control, Communications, Computer and Intelligence 

programs:



Cooperative Engagement Capability (CEC)

The Cooperative Engagement Capability (CEC) program is designed to 

link Battle Group Anti-Air Warfare units, Airborne Early Warning 

aircraft and joint air defense units ashore into a theater-wide air 

defense system.  CEC provides real-time, high quality, composite track 

data over highly jam resistant links.  From this data, each 

cooperating unit develops its own fire control solution for weapon 

engagements for threats beyond its own sensor horizon.  Engineering 

discussions are under way for interfacing CEC as an element within the 

Army Patriot system and Air Force Airborne Warning and Control System 

(AWACS).



Cooperative engagement has demonstrated the capability of being a 

force multiplier in various warfare areas.  To date, CEC has been the 

major element in two at-sea cruise missile defense demonstrations.  

CEC was successfully employed with the EISENHOWER Battle Group in a 

series of tests off the coast of Puerto Rico and in a major 

demonstration called "Mountain Top" off the coast of Hawaii.  

Detection data from remote sensors located several thousand feet above 

the sea surface was linked to an Aegis ship from which a fire control 

solution was developed and surface-to-air missiles were launched.  The 

target was successfully engaged in every test.  CEC achieved fleet IOC 

at the end of FY 1996.



Theater Ballistic Missile Defense

The President has committed the Department of Defense to pursue a 

robust missile defense program.  The mobile and forward nature of 

naval forces makes sea-based systems a most promising solution to the 

theater ballistic missile defense problem.  The potential for this 

capability was demonstrated by the USS BUNKER HILL(CG-52) in 

operations near Taiwan in March 1996.  Rapidly repositioning in 

response to National Tasking, that ship successfully detected and 

tracked missile shots fired during a Chinese military exercise 

conducted near Taiwan.  Complete tracking was possible from the moment 

the missile rose in its ascent phase above the horizon of the sensor.  

This is critically important if we are to achieve missile kills at a 

distance that will avoid harm to our own forces.



The Navy, in conjunction with the DoD Ballistic Missile Defense 

Office, has conducted analyses to determine the best architecture for 

ballistic missile defense.  Our conclusions point to a two tiered 

approach composed of a Theater Wide system and an Area system.  The 

Area system builds on the current Aegis SPY-1 radar and the Standard 

Missile/Block IV, requiring minimal modifications to the vertical 

launch system.  By adding this capability as an additional mission for 

our Aegis Fleet, we leverage the $40 billion the American taxpayer has 

already invested in these state-of-the-art ships.  Also, we take 

advantage of the thousands of successful intercepts completed in the 

Standard Missile program.



This year the Navy is continuing work on the Theater Wide system or 

exo-atmospheric portion of our two tiered, sea-based approach.  We 

have conclusively demonstrated the concept of modifying an endo-

atmospheric missile for exo-atmospheric use, employing a Terrier 

missile with a Lightweight Exo-Atmospheric Projectile (LEAP) vehicle 

as the kill mechanism.  Several other kill vehicle concepts are also 

being evaluated, including Army, DARPA, and contractor systems.  At 

the same time, we anticipate the value of the CEC can be greatly 

enhanced by linking joint services' sensor detection data with the CEC 

network.



Joint Maritime Command Information System (JMCIS)

     The Joint Maritime Command Information System (JMCIS) strategy 

was the Department's quantum leap forward in Command and Control 

systems.  JMCIS '98, the next version of JMCIS, is the next leap 

forward.  It will play a central role in allowing us to achieve the 

IT-21 vision.



     JMCIS '98 was conceived in direct response to IT-21, turning 

those ideas and new technologies into real systems to provide a 

homogeneous software and hardware environment across each battle 

group, the shore infrastructure, and all tactical and mobile sites.  

Design of JMCIS '98 will capitalize on commercial industry and be 

implemented in phases to allow for better cost vs. benefit milestone a

ssessments.  Acquisition reform initiatives such as cost as an 

independent variable, and vastly accelerated and simplified 

contracting methods ensure significantly accelerated unit level 

installations, with the ultimate goal being an all-new COTS personal 

computer (PC) environment.  To continue support while minimizing 

impact to operations, leading edge logistics will provide efficient 

training, real-time troubleshooting methods and effective spare-parts 

procurement.



Joint Maritime Communications System (JMCOMS)

     The addition of the maturing Joint Maritime Communications System 

(JMCOMS) strategy brings the crucial connectivity and interplatform 

networking elements necessary to fulfill the IT-21 vision.  JMCOMS 

provides an investment and technical strategy that allows for the 

flexible implementation of Naval communication systems in support of 

existing and future Naval missions.  As part of the emphasis of Naval 

forces on littoral warfare and in support of Marine Corps maneuver 

warfare, JMCOMS is implementing an expeditionary warfare module which 

will enable seamless, continuous communications across all warfighting 

environments, providing guaranteed connectivity across the joint 

battlespace.



Information Warfare (IW)

     The Information Warfare (IW) element of IT-21 brings the need for 

incorporation of highly secure environments and sensor platforms into 

the IT-21 totally integrated solution.  While providing our 

warfighters with access to more information than ever before, the 

interconnection of DON networks with public information systems and 

networks exposes us to new threats.  We are delivering IW strategies 

and policy to address these threats.  IW initiatives include the 

fielding of information systems security (INFOSEC) technology 

components and technology from private industry, such as firewalls; 

the fielding of network security detection and monitoring tools in 

Navy Network Operations Centers; renewed emphasis on education and 

training for network administrators; and fleet exercises to more fully 

develop our capability to detect and respond to intrusions and attacks 

on DON networks.



Global Broadcast Service (GBS)

The Global Broadcast Service (GBS) program allows us to take advantage 

of commercial Direct Broadcast TV technology to increase the amount of 

information we can get to the field.  The ability to use very small 

dish antennas--18 to 24 inches in diameter--will allow us to send and 

receive information to small, mobile users nearly world-wide.  As an 

interim measure, we are taking advantage of the Navy's Ultra High 

Frequency (UHF) Follow-On (UFO) satellites currently in production to 

get this capability on orbit in 1998.  We are using the last three UFO 

satellites as hosts and integrating the GBS capability to add 

approximately 100 million bits-per-second communications capability 

nearly world-wide.  The first satellite, UFO-8, is planned to cover 

the Pacific.  IOC is April 1998.



While this does not answer all of our communications needs, it is a 

revolutionary step in getting critical information such as imagery, 

weather and tasking orders to the people who need it most in near 

real-time.  It will also increase quality-of-life by giving ship at 

sea the capability to receive television broadcasts.  The high 

capacity one-way transmission capability will free up capacity on 

other, critical two-way systems.  The interim capability on UFO 

satellites will allow us to refine our operational concept and 

requirements to aid in the DoD Space Architect's work in defining what 

the future, objective architecture should be.



Multifunction Information Distribution System (MIDS)

     Multifunction Information Distribution Systems (MIDS) is the 

Department's joint international program to develop an affordable, 

light weight, tactical radio terminal.  This information system takes 

a major step in solving the joint Warfighter's interoperability 

problems, including combat identification, as its open system 

architecture can easily be configured to meet the requirements of many

different users.  This year the Army and the Air Force joined the MIDS 

program. The increasing demand for this terminal by all services and 

our international partners will dramatically reduce the life-cycle 

support cost.  The Department's share of the MIDS program in the FY 

1998 budget request is $39 million.  IOC is expected in FY 2000 on 

ships.





MINE AND UNDERSEA WARFARE



The Department is modernizing its Mine Countermeasures Forces, 

fulfilling a major deficiency identified during Operation DESERT 

STORM.  The Department's Mine Warfare Plan, as required by Public Law, 

is updated annually by the Chief of Naval Operations and the 

Commandant of the Marine Corps.  The Chairman of the Joint Chiefs of 

Staff supports the DoN plan and has endorsed it for full funding as 

part of the President's budget request.  One of our top Mine Counter 

Measure (MCM) programs is  the OSPREY Class (MHC-51) coastal mine 

hunter ships.  These ships have a glass reinforced plastic hull for 

reduced acoustic and magnetic signatures.  This is a 12 ship program 

divided between two shipbuilders:  Intermarine USA of Savannah, 

Georgia (8 ships); and Avondale Industries of New Orleans, Louisiana 

(4 ships).  MHC 51s are being delivered at a rate of two per year with 

the final unit scheduled for delivery in December 1998.



Additional MCM efforts such as the Shallow Water Assault Breaching 

System (SABRE) and the Distributed Explosive Technology (DET) programs 

are being pursued to neutralize shallow water and surf zone mines.  

Organic mine hunting capabilities are also being developed by 

accelerating the Remote Minehunting System (RMS) program for surface 

ships, and developing the Near Term Mine Reconnaissance System

and the Long Term Mine Reconnaissance System for submarines utilizing 

Unmanned Underwater Vehicle (UUV) technology.  The Remote Minehunting 

System was delivered to the KITTY HAWK Battle Group on deployment in 

the Arabian Gulf in January 1997 as an operational test vehicle to 

examine the utility of future systems.  The RMS concept was also 

evaluated as a success by the Surface Warfare Development Group (SWDG) 

during SHAREM 119 exercise in January 1997.



Finally, the 1996 conversion of USS INCHON into a mine countermeasures 

support ship, with the capability of supporting our airborne and 

surface MCM forces has given the Department the only rapid-deployment 

MCM capability in the world.  In January 1997, INCHON participated in 

the GOMEX Gulf of Mexico exercise.  It is in workups for the NATO Blue 

Harrier exercise in the Baltic Sea this summer.



Other initiatives receiving priority in the development of modern MCM 

capabilities are focused on providing our operational forces an 

"organic" capability to deal with the sea mine threat until dedicated 

MCM forces can be deployed.  These capabilities include:



* The Airborne Laser Mine Detection System (ALMDS), being considered 

for program start in FY 1999.

* The Rapid Airborne Mine Clearance System (RAMICS) which would use 

super cavitating rounds to destroy near-surface mines and is budgeted 

as an advanced Technology Demonstration in FY 1998.

* The Airborne Mine Neutralization System (AMNSYS) which would use an 

expendable homing device deployed by either helicopters or surface 

ships to neutralize sea mines.  A competitive "fly-off" is scheduled 

in FY 1998.



Anti-Submarine Warfare

The department continues to develop Anti-Submarine Warfare (ASW) 

systems to improve our ability to conduct ASW in the littoral/shallow 

water regions.  The Airborne Low Frequency Sonar (ALFS) system is an 

improved "dipping sonar" that will significantly enhance our ability 

to conduct active prosecution of subsurface targets, including those 

in the shallow water environment.  ALFS is in the final stages of 

development and will be incorporated in the SH-60R Light Airborne 

Multi-Purpose System (LAMPS) helicopter.  The SH-60R LAMPS 

remanufacture program will also include upgraded acoustic processing 

to dramatically improve the ASW capability of the LAMPS aircraft.



We continue to upgrade our torpedoes for improved shallow water 

performance.  The MK-46 Service Life Extension Program and MK-50 Block 

I program improve the performance of our existing light weight torpedo 

inventory.  The Lightweight Hybrid Torpedo, to be introduced in FY 

2001, delivers a significant performance increase in shallow water.  

It will utilize available components of the MK-46 and MK-50 in 

addition to extensive use of  COTS electronic components.  The MK-48 

ADCAP MODS heavy weight torpedo program is also updating existing 

torpedoes with propulsion and homing systems improvements for the very 

difficult shallow water ASW environment.



The AN/SQQ-89(V)X Surface Ship ASW Combat System will integrate COTS 

into surface ASW combat systems and generates significant cost savings 

over previous Military Standard Systems.  The AN/SQQ-89 is the ASW 

Combat System for all surface combatants.



     The Advance Deployable System will provide the ability to rapidly 

and covertly deploy an underwater surveillance system designed for use 

in shallow littoral environments.  This surveillance information will 

be available to the tactical commanders for use in controlling any 

region of interest.  The program is currently in the Demonstration and 

Validation phase with Milestone II scheduled for FY 1998.



     Finally, the New Attack Submarine C3I system, through its 

extensive use of COTS and open system architecture, is a pace setter 

on achieving breakthroughs in system affordability and flexibility. 

This innovative approach will achieve new performance standards while 

minimizing risk, and promoting new levels of extended contractor 

responsibility and participation in the maintenance and upgrade of the 

system over its life-cycle.



REFORMING THE ACQUISITION SYSTEM



Acquisition Reform

The Department of the Navy is changing the way it does business.  The 

new streamlined SECNAVINST 5000.2 combines a number of SECNAV, OPNAV, 

Marine Corps, and Information Technology instructions, orders and 

procedures resulting in a reduction of over 300 pages of duplicate 

requirements.  Our new acquisition process eliminates unnecessary 

regulations, delegates decision authority to the lowest possible 

organizational level, eliminates non-essential military specifications 

and standards, and encourages maximum use of COTS equipment.



In a DON survey on May 31, 1996, over 85% of the acquisition workforce 

that responded to a questionnaire agreed there has been improvement in 

the Navy/Marine Corps acquisition process.  These improvements are 

occurring in programs of all sizes.  Positive examples are the F/A-

18E/F, Aegis DDG-51 class and Cooperative Engagement Capability (CEC) 

programs.  The F/A-18E/F program was designed to implement acquisition 

reform.  Cost As an Independent Variable (CAIV) principles were 

applied in the initial planning and Integrated Product Teams are 

guiding concurrent design and manufacturing implementation efforts.  

Government-industry partnering continues as the Integrated Test Team 

continues work at Patuxent River.  Using historical cost data from the 

last seven aircraft programs, this approach projects a unit cost 

avoidance of approximately $3.0 billion.



Since inception of its affordability initiative, the Aegis program has 

identified 972 areas of potential cost avoidance.  The program has 

increased the use of COTS hardware, streamlined manufacturing 

processes, reduced contract oversight requirements and eliminated 

unnecessary specifications and standards.  Costs have been reduced by 

$30 million per ship, per year, with total projected savings and cost 

avoidance of more than $700 million starting with flight IIA ships.



The CEC program has adopted a streamlined approach using COTS-based 

components which has an RDT&E cost avoidance of $1.2 million and a 

procurement cost avoidance of over $366 million for the production of 

174 projected shipboard and airborne units.



The Navy-Marine Corps team, led by our Acquisition Reform Office, is 

implementing acquisition reform initiatives.  DON has embraced the use 

of teams and integrated product and process development.  DON is 

focusing on total ownership cost, which includes designing platform 

systems using an open system architecture allowing for follow-on 

technology insertion.  The Department has made a tremendous effort to 

form a partnership with our industry counterparts to develop, acquire 

and support technologically superior and affordable systems.  The 

strong and continuous DON commitment to acquisition reform is driving 

creation of the Acquisition Center of Excellence (ACE).  ACE will 

research and deploy advanced technology, best business practices, and 

leading edge facilitation and training, and provide real-time access 

to integrated major electronic information systems.  DON is committed 

to meeting the challenges of an affordable Navy and Marine Corps of 

the future.



International Program Initiatives

The Department of the Navy is aggressively pursuing international 

sales and cooperative program opportunities which will result in 

U.S./allied cost savings and technology enhancements as well as 

traditional interoperability and foreign policy benefits.  Examples of 

recent successes reflected in our budget are:



* F/A-18 sales to Switzerland and Thailand.

* Aegis weapons system sales to Japan and Spain.

* Joint Strike Fighter cooperative development with the U.K., Denmark, 

Netherlands, Norway, and Canada.

* Multifunction Information Distribution System (MIDS) cooperative 

development and production with France, Italy, Germany, and Spain.

* Evolved Sea Sparrow Missile (ESSM) with nine NATO allies plus 

Australia.



     In FY 1996 our Navy International Programs Office (NIPO) 

completed 528 Foreign Military Sales (FMS) agreements with 60 

countries and international organizations valued at $2.2 billion.  

With these new cases NIPO now oversees 4,941 open cases with 110 

nations valued at $57.3 billion.  In addition, 22 new Research and 

Development Memorandums of Understandings were completed providing 

over $110 million in foreign R&D contributions.



Acquisition Workforce

Coupled with these business management initiatives, the Department of 

the Navy has made significant progress developing its professional 

acquisition workforce through its centralized professional Acquisition 

Workforce Program.  With full implementation in 1993 of the Defense 

Acquisition Workforce Improvement Act, the Department has focused on 

developing its people with the education, training, and cutting-edge 

skills needed to provide unsurpassed support to our warfighters.

In FY 1996, over 2,500 individuals attended college courses using 

funds earmarked for tuition assistance to enhance the education level 

of our acquisition community.  We also redesigned and expanded our 

Acquisition Intern program to ensure that well-qualified and 

experienced professionals are ready to fill upper-level positions as 

senior executives retire.  This particular program has become a 

diversity showcase for Defense with 55% of its interns being female or 

minority-a rate that significantly exceeds the national average.  In 

FY 1996 the Department of the Navy led the Department of Defense in 

the number of scholarship awardees.





In addition, 8,500 training quotas were used by the Navy and Marine 

Corps acquisition community to complete their certification 

requirements.  As a result, the majority of our acquisition workforce 

has been certified as meeting or exceeding the requirements of their 

positions.  The bottom-line benefit is better, cost effective world-

wide support to the Department's war fighters, now and into the 21st 

Century.



SUMMARY



In summary, Mr. Chairman, there are thousands of people in the Navy 

and Marine Corps community that work hard everyday to make acquisition 

success a routine occurrence.  Our guiding principles are to 

communicate fully and openly with the Congress, industry, our war 

fighters, and our acquisition professionals, to do everything it takes 

to make sure our Sailors and Marines are provided with the best 

equipment possible for the lowest investment possible.  Our highest 

priorities are to bring stability to our acquisition programs-this 

alone could save billions of dollars; strengthen our industrial base; 

and ensure that our children and grandchildren who serve in the Navy 

and Marine Corps of the future, defending America, have what they need 

to prevail.  We believe that the Department of the Navy's budget 

request for FY 1998 supports the requirements to maintain our status

as the world's greatest naval power, forward deployed and combat 

ready.  We appreciate the support provided by the Congress and look 

forward to working together with this committee toward a secure future 

for our nation.



                                  -USN-