DEPARTMENT OF THE NAVY FY 2017 PRESIDENT S BUDGET February 9, 2016
Mission Guidance Operational Context Fiscal Context Balancing Focused Investments Hard Choices Innovation and Reform 1
The Foundation Guidance National Security; Defense; and Military Strategies DoD Strategic Guidance Quad. Defense Rvw SECNAV People; Platforms Power; Partnerships CNO Design for Maintaining Maritime Superiority CMC Advance To Contact 32 2
Executing the Guidance the Navy and Marine Corps Today Russia Options to the Nation 14 Ships Ukraine Refugees Libya SPMAGTF -CR-AF Syria ISIL AQAP SPMAGTF- CR-CC Iran Taliban 24 Ships North Korea China 50 Ships Cyber Attacks 1 CVN 1 ARG/MEU 1 CVN 183 Ships Boko Haram Piracy Spratly Islands Subi Reef Al-Shabab 1 CVN 1 ARG/MEU 1 Ship Personnel Legend Crossroads Naval Presence Average Ship count Today / FY17/ FY21 Total: 272 / 287 / 308 Deployed: 94 / 108 / 118 Sailors deployed afloat 35,564 Sailors forward deployed 32,624 Marines deployed afloat 4,570 Marines forward deployed 30,732 43 as of 1 Feb 2016 3
Executing the Guidance Operational Trends Fleet Size vs Deployed Ships / Avg. Deployment Length 500 250 450 Ships 400 350 300 250 200 150 454 Ships 167 Days Fleet Size 217 Days 272 Ships 200 150 100 Deploymeny Length (Days) 100 50 50 0 108 Ships, FY94 24% of Battle Force Globally Deployed Ships 94 Ships, FY15 35% of Battle Force 0 Ships Deployed Total Battle Force Avg Deployment Length 4
Executing the Guidance Operational Trends CY 13 Operational Employment CY 14 Operational Employment CY 15 Operational Employment *Planned deployments historically address 45% of COCOM demand Planned Deployments 65 5
Executing the Guidance An Evolving World IRAN ISIL CHINA DPRK RUSSIA Submarine Fiber Optic Cable Accelerating change Maritime System Global Information System Rate of Technological Creation and Adoption Blume, Andrew, Undersea Cables. Fortune Magazine, 2012 76 6
Executing the Guidance An Evolving World Nuclear Vacuum, Frank Bennett, Aivazorsky, Darwinek, Yo/ Wikimedia Commons/ CC-BY-SA-3.0 87 7
DON Annual Budget in CY$ - Budget Trends 171 Billions of Dollars 167 163 159 155 166.6 156.8 PB14 158.5 PB16 165.3 163.5 159.9 159.5 158.2 158.9 155.7 166.8 157.4 156.4 151 152.2 152.8 PB15 150.0 PB17 152.9 PB14 PB15 PB16 147 FY 2016 Constant year Dollars FY12 FY13 FY14 FY18 FY19 FY20 FY21 PB17 98 8
Balancing Overview 10 9 9
Military Personnel - Navy Aligns with force structure Active Personnel Strength o FY17 Active end strength 322.9K Fit / Fill funded at 92% / 95% o Sailor 2025 Ready, Relevant Learning funded Active enlisted end strength reduced 6.6K across the FYDP o Reflects deactivation of 10th air wing o Funds HM wholeness; security forces Reserve Personnel Strength o FY17 Reserve end strength 58.0K o Retain HSC-85 and establish two Tactical Support Units ES (K) 340.0 330.0 320.0 329.2 327.9 327.3 MPN 326.5 328.2 329.8 330.0 322.9 322.2 324.4 323.6 323.1 ES (K) 59.0 58.5 58.0 57.5 57.0 57.4 57.4 57.4 RPN 58.0 58.0 58.9 58.9 58.9 58.9 58.9 58.9 58.9 310.0 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 56.5 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 PB16 PB17 PB16 PB17 11 10 10
Military Personnel Marine Corps o o o o o Focused on forward presence and crisis response Active Personnel Strength Achieves 182K one-year prior than PB16 end strength plan Funds to 182K Active End Strength across FYDP Strength meets steady state forward presence and crisis response requirements around the globe 1:2 deployment-to-dwell ratio Major combat operations will drive risk in Deter/Deny Reserve Personnel Strength o FY17 Reserve end strength 38.5K o o Ready, relevant, responsive force Seamlessly operates as a part of the total force ES (K) 200.0 195.0 190.0 185.0 180.0 175.0 170.0 MPMC 183.5 184.0 182.0 182.0 182.0 182.0 182.0 182.0 182.0 182.0 182.0 182.0 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 ES (K) 39.4 39.2 39.0 38.8 38.6 38.4 38.2 38.0 RPMC 38.9 38.9 38.9 38.5 38.5 38.5 38.5 38.5 38.5 38.5 38.5 38.5 FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 PB16 PB17 PB16 PB17 12 11 11
Civilian Personnel FTE 250,000 200,000 150,000 100,000 50,000 198,642 201,496 203,317 23,405 21,737 21,755 175,237 179,759 181,562 Highlights Ø Ship Maintenance: Growth at Regional Maintenance Centers, SURFMEPP, in Japan, and at public shipyards to address maintenance backlogs. Ø NWCF: FTE added to address increased flight hours and corrosion issues on existing aircraft. Ø Installation Security: Guards added to counter increased risk at installations. Ø Headquarters: Previous reduction increased to 25 percent of funding; will be fully realized by FY20. Ø Overall FYDP: Decline of 2,750 FTE from FY17 to FY21. 0 Marine Corps Navy Total DON FTE FTE by Appropriation/Fund O&M 116,076 118,230 120,409 Other (FHOPS/RDTEN) 1,532 1,787 1,783 WCF 81,034 81,479 81,125 Scientists FY17 FY18 FY19 FY20 FY21 FYDP FTE* Profile: 203,317 201,818 201,503 200,982 200,567 *FTE=Full Time Equivalent Shipyard Workers 13 12 12
Operations & Readiness ($B) 6.0 4.5 3.0 1.5 Ship Operations 58 days/qtr deployed 24 days/qtr non-deployed 1.2 1.4 1.1 3.8 3.8 3.5 ($B) 8.0 6.0 4.0 2.0 Flying Hour Operations Deployed T-Rating Navy 2.0 / Marine Corps 2.0 1.0 6.5 1.4 5.8 0.9 6.5 Marine Corps Readiness Operating Forces ($B) 1.6 1.2 0.7 0.6 0.7 0.8 0.4 0.7 0.7 0.7 0.0 0.0 - Ship Depot Maintenance 100% of projected maintenance funded ($B) 9.0 7.5 6.0 4.5 3.0 1.5 0.0 2.9 2.9 2.9 4.9 4.9 5.2 ($B) 2.0 1.5 1.0 0.5 0.0 NAVY BASE Aircraft Depot Maint/Logistics 85% of projected maintenance funded 0.3 1.4 OCO 0.1 1.5 0.2 1.7 Marine Corps Ground Equip ($B) 0.7 0.6 0.5 0.4 0.3 0.2 0.1-79% of maintenance funded in FY17 0.4 0.2 0.2 0.2 0.2 0.2 14 13 MC BASE OCO 13
Shipbuilding Procurement FY16 FY17 FY18 FY19 FY20 FY21 FYDP Ohio Replacement Program 0 AP AP AP AP 1 1 CVN-21 0 0 1 0 0 0 1 SSN-774 2 2 2 2 2 1 9 DDG 51 2 2 2 2 2 2 10 LCS/FF 3 2 1 1 1 2 7 LHA(R) 0 1 0 0 0 0 1 LPD 17 1 0 0 0 0 0 0 LX(R) 0 0 0 0 1 0 1 T-ATS 1 0 1 1 1 1 4 Expeditionary Fast Transport (EPF) (formerly JHSV) 1 0 0 0 0 0 0 Expeditionary Mobile Base (ESB) (formerly MLP AFSB) 1 0 0 0 0 0 0 T-AO(X) 1 0 1 1 1 1 4 New Construction Total QTY 12 7 8 7 8 8 38 LCAC SLEP 4 0 0 0 0 0 0 Ship to Shore Connector 4 2 6 10 12 12 42 LCU 1700 1 0 1 2 4 4 11 Moored Training Ships 0 1 0 0 0 0 1 CVN RCOH 1 0 0 0 1 0 1 Other Construction Total QTY 10 3 7 12 17 16 55 Total Shipbuilding QTY 22 10 15 19 25 24 93 FY16 enacted includes Congressional adds for T-ATS, JHSV (EPF), MLP AFSB (ESB), LCU 1700 and Congressional reduction of one Ship to Shore Connector. SSN 785 DDG 107 Black Sea LHA 6 CVN 78 ESB 3 15 14 14
Aircraft Procurement F-35C (CV JSF) E-2D Hawkeye FY16 FY17 FY18 FY19 FY20 FY21 FYDP Fixed Wing F-35C (CV) 6 4 6 12 18 24 64 F-35B (STOVL) 15 16 20 20 20 21 97 EA-18G** 10 0 0 0 0 0 0 FA-18E/F*** 5 2 14 0 0 0 16 E-2D AHE 5 6 5 3 4 5 23 P-8A (MMA)** 17 11 6 13 0 0 30 CA-40A 1 0 0 0 0 0 0 KC-130J 2 2 2 2 2 2 10 Rotary Wing CH-53K (HLR) 0 2 4 7 13 14 40 MV-22B* 19 16 6 6 6 14 48 MH-60R 29 0 0 0 0 0 0 AH-1Z/UH-1Y 29 24 27 27 0 0 78 VH-92A 0 0 0 6 6 5 17 UAV MQ-4 Triton 4 2 3 3 5 6 19 MQ-8C Firescout 5 1 2 2 2 2 9 RQ-21A Blackjack*** 6 8 4 5 5 3 25 MV-22B Osprey CH-53K King Stallion MQ-8C Firescout TOTAL 153 94 99 106 81 96 476 *FY 2018-2021 includes 6 V-22 per year for the Navy. **FY 2016 reflects A-12 settlement for 3 EA-18G and plan to procure 1 additional P-8A (MMA). ***FY 2017 includes 2 F/A-18 and 4 RQ-21 requested in the OCO request. AH-1Z P-8A Poseidon 16 15 15
MK-54 SM-6 Weapons Procurement FY16 FY17 FY18 FY19 FY20 FY21 FYDP Aircraft Weapons AIM-9X 227 152 150 153 153 150 758 AMRAAM 167 163 247 260 252 248 1,170 AARGM 155 253 336 322 183 197 1,291 LRASM 0 10 25 25 0 0 60 JAGM 0 96 104 110 110 221 641 HELLFIRE* 0 100 0 0 0 0 100 SDB II 0 0 90 750 750 750 2,340 Ship Weapons TACTOM 149 100 0 0 0 0 100 SM6 113 125 125 125 125 125 625 RAM 90 90 90 90 90 90 450 ESSM 30 75 28 52 46 56 257 MK 48 HWT 8 11 15 24 33 40 123 MK 48 HWT MODS 81 73 64 50 43 52 282 MK 54 LWT MODS 140 144 167 174 170 130 785 SOPGM 27 24 24 24 24 24 120 LCS SSMM 0 24 110 110 110 110 464 * OCO funding for FY 2017. LRASM TACTOM ESSM AIM-9X Tomahawk Maritime Strike 17 16 16
Numbers may not add due to rounding Additional Investment Billions of Dollars 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 OPN 2.0 $6.4B $6.5B $6.5B 2.3 1.9 1.9 2.2 2.4 2.1 1.9 2.3 2.5 Ships Support Equipment Communications and Electronics Equipment Aviation, Ordnance & Other Support Equipment SEWIP Key OPN Capability Enhancements CYBER and the EM Spectrum Ship Capabilities Submarine & Underwater Capabilities Billions of Dollars Billions of Dollars 1.5 $1.5B $1.2B 1.0 $1.0B 0.5 0.7 0.4 0.5 0.6 0.7 0.8 0.0 PMC 1.0 0.8 $0.8B $0.8B $0.7B 0.6 0.6 0.4 0.6 0.5 0.2 0.2 0.2 0.2 0.0 ANMC Weapons, Vehicles & Other Communicati ons and Electronics Equipment Navy USMC G/ATOR General Purpose Bombs Key PMC Capability Enhancements Joint Light Tactical Vehicle (JLTV) Ground/Air Task Oriented Radar (G/ATOR) Common Aviation Command and Control System (CAC2S) Key PANMC Capability Enhancements General Purpose Bombs Air Expendable Countermeasures Active Jammers, IR Decoys 18 17 17
R&D Investment Billions of Dollars 20.0 18.0 16.0 14.0 12.0 10.0 8.0 $16.1B 12.7 $18.1B 14.9 $17.4B 14.4 Virginia Payload Module MQ-4C Triton Major Systems ($M) Shipbuilding Ohio Replacement Program 1,203 1,391 1,091 Virginia Class SSN 189 317 209 CVN 78 236 225 223 Surface Ship Torpedo Defense 57 71 87 Aviation Joint Strike Fighter (F-35) 995 1,085 1,198 CH-53K 538 592 405 Executive Helo Development 357 507 338 Unmanned MQ-4C Triton 449 357 293 UCLASS 382 435 0 6.0 CBARS (RAQ-25) 0 0 89 MQ-8 43 53 27 4.0 2.0 0.0 1.3 0.9 0.9 2.1 2.3 2.1 S&T Management Development ACV XL/LD Unmanned Undersea Veh 11 12 146 USMC Amphibious Combat Vehicle 101 212 159 G/ATOR 91 66 84 Other Rapid Prototyping 0 0 55 Energy 245 231 328 Cyber Resiliency 0 55 88 Numbers may not add due to rounding 19 18 18
Shore Readiness ($B) Facilities Support Navy 70% of facility sustainment model 8.0 7.0 6.0 5.0 4.0 3.0 2.0 $6.2B 1.7 0.1 $6.9B 2.3 0.1 $6.2B 1.7 4.4 4.5 4.3 0.2 OCO FSRM BOS 1.0 0.0 ($B) 3.5 3.0 2.5 2.0 Facilities Support USMC 74% of facility sustainment model $2.9B $2.9B 0.2 0.2 0.7 0.8 $2.9B 0.7 OCO 1.5 FSRM 1.0 2.0 1.9 2.2 BOS 0.5 0.0 20 19 19
Military Construction & Family Housing Millions of Dollars 2,000 1,800 1,600 1,400 1,200 1,000 800 600 400 200 0 $1.1B 390 749 $1.7B 754 986 60 426 640 FY 2015 FY 2016 FY 2017 Navy Marine Corps OCO $1.1B FY17 MILCON Projects Major Categories $ in Millions # of Projects New Platform/Mission Support 357 9 COCOM Support 176 6* Energy 85 4 Ground Forces 73 1 Guam 62 1 Naval Shipyards 58 3* Quality of Life 48 2 Training 39 2 Reserves 35 4 Environmental 13 1 Planning and Design 92 N/A Unspecified Minor Construction 30 N/A OCO 60 3** Joint Region Marianas, Guam Parris Island Reconditioning Center 450 Millions of Dollars 400 350 $361M $370M 16 300 250 200 344 353 150 301 100 50 0 FY 2015 FY 2016 FY 2017 17 $395M 94 *Includes Energy project **Includes European Reassurance Initiative (ERI) FHOPS FHCON 21 20 20
Where it Matters, When it Matters 22 21 21
For more Information Fully searchable justification material available at: http://www.secnav.navy.mil/fmc/fmb/pages/fiscal-year-2017.aspx 23 22 23