VADM David C. Johnson. Principal Military Deputy to the Assistant Secretary of the Navy for Research, Development and Acquisition April 4, 2017
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1 DAU's Acquisition Training Symposium VADM David C. Johnson Principal Military Deputy to the Assistant Secretary of the Navy for Research, Development and Acquisition April 4, 2017
2 Defense Acquisition Organization CONGRESS CHAIRMAN JCS SECDEF DEPSECDEF USD(AT&L) DEFENSE ACQUISITION EXECUTIVE SECRETARY OF THE NAVY COMMANDANT OF THE MARINE CORPS CHIEF OF NAVAL OPERATIONS FMB ASN(RD&A) PMD PCD FLEET OPNAV SYSCOMs PEOs DASNs N9 NAVSEA Joint Strike Fighter Strategic Systems Program (DRPM) Management & Budget Ships N8 SPAWAR Ships Integrated Warfare Systems Acquisition & Procurement Air N2/N6 NAVSUP Enterprise Information Systems Submarines International Programs C4I & Space N4 NAVFAC C4I Aircraft Carriers Unmanned RDT&E MARCOR Space Systems Air ASW Assault & Special Mission Assistant General Counsel Expeditionary & Logistics Management NAVAIR Land Systems Tactical Air SUPERVISOR S OF SHIPBUILDING NAVAL SHIPYARD S ONR Littoral Combat Ship Unmanned Aviation & Strike Weapons 2
3 O&M: $46.9B Ship Ops & Maint $11.0 Aviation Ops & Maint $8.0 Base Ops & Support $6.6 Marine Corps O&M $5.9 Combat/Weapons Support $5.5 Service Wide Support $4.9 Training and Education $1.9 Reserve O&M $1.2 Environmental Restoration $0.3 Mobilization $1.6 Summary by Appropriation Group FY 2017 DON Base Budget Navy: 31% Marine Corps: 27% FY17: $155.4B 30% DON 28% Procurement: $44.0B Ships $18.3 Aircraft $14.1 Weapons $3.2 Marine Corps $1.4 Ammunition $0.7 Other Navy Procurement $6.4 Navy: 32% Marine Corps: 7% MilPers: $45.6B Basic Pays $19.2 Housing Allowance $7.8 Retired Pay Accrual $5.6 Health Accrual $2.1 Reserve Personnel $2.7 Subsistence $2.2 Allowances $1.0 Special Pays $1.3 Other $3.7 Navy: 24% Marine Corps: 61% 29% 11% 1% Infrastructure: $1.6B MILCON $1.1 BRAC $0.1 Family Housing $0.4 Navy: 1% Marine Corps: 2% R&D: $17.3B Basic Research $0.5 Applied Research $0.9 Advance Tech Dev $0.7 Adv Component Dev $4.6 System Dev & Demo $6.0 Management Support $0.9 Ops Systems Dev $3.6 Navy: 12% Marine Corps: 3% = The percentage of each Service s total budget applied to each appropriation group Numbers may not add due to rounding 3
4 A Design for Maintaining Maritime Superiority Mission The United States Navy will be ready to conduct prompt and sustained combat incident to operations at sea. Our Navy will protect America from attack and preserve America s strategic influence in key regions of the world. U.S. naval forces and operations from the sea floor to space, from deep water to the littorals, and in the information domain will deter aggression and enable peaceful resolution of crises on terms acceptable to the United States and our allies and partners. If deterrence fails, the Navy will conduct decisive combat operations to defeat any enemy. Four Lines of Effort Strengthen Naval Power at and from Sea Achieve High Velocity Learning at Every Level Strengthen Our Navy Team for the Future Expand and Strengthen Our Network of Partners Core Attributes Integrity Accountability Initiative Toughness 4
5 CNO s Five Points 1. Being Competitive Competition not Complacency Winner takes all mentality We are not interested in being #2 Not taking anything for granted Relentless chase of best ever performance Asking ourselves the hard question are we All-in? 2. Raise Our Eyes Above the Horizon Think strategically - not doing it comes at a cost Carve time out in our schedules to do that Need to do in this competitive environment Radical delegation, high standards, technical rigor Do ferociously List of things we ll stop doing If it doesn t have a value in making us more lethal 5
6 CNO s Five Points (cont.) 3. We are Going to Get Digital In context of getting more competitive Data - Analysis - Info - Decisions 4. Become Very Output/Outcomes Centric Shooting toward a defined result Do in ½ the time 5. Sense of Urgency/Anxiety/Discomfort Have we, as leaders, done everything we can to win? Am I seeing the theoretical limit of performance? Don t let our team down 7-10 outcomes that you ll achieve (w/ subtractions) Make your Navy more lethal, effective, feared and capable 6
7 Current ASN(RDA) Priority Areas Budget FY17 Amended Budget Submit PBR-18 POM 19 Force Structure Assessment Future Fleet Architecture Long Range Plans (30 year) Ships and Aviation RDT&E (New) Surface Ship Combat System Rapid Prototyping MACO (MQ-25A, LDUUV) RPED (SNLWS) Unmanned Systems Expand Small Business Opportunities Designated Deputy PMs as SB Advocates Establish individual program annual goals Improve logistics support Evaluate PBL contracting strategies/options Promote Foreign Military Sales opportunities (NIPO) Improve cycle time between request and approval Saudi Navy Expansion Program (SNEP) II/P-8As/F/A- 18/ Aegis/Standard Missiles Getting Digital Data Analytics Digital Warfare Offices Stood- Up Commercial Web Services Stabilize procurement Block Buys in FY18 (LCS/Frigate, F35) MYPs in FY18 (V22, DDG 51) Stable Build Rates (>MSR) Manage Strike Fighter Inventory (F-18A-D; E/F) Procurement Depot Management Protect Critical Industrial Base New Construction Non-nuclear ship repair Radar Second Tier Suppliers Reduce time of Doing Business Annual Contracting Plans (SYSCOMs/PEOs) Streamline documentation and processes Improve Acquisition Workforce Diversity Hiring Freeze DAWDF 7
8 Acquisition Themes 1. Getting the Requirements Right 2. Performing to a Stable Plan 3. Making Every Dollar Count 4. Relying on Experienced Acquisition Workforce 5. Fostering Healthy Industrial Base 8
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