    [Budget of the United States Government]
    [V. Investing in the Common Good: Program Performance in Federal Functions]
    [11. National Defense]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    [[Page 171]]

                              11.  NATIONAL DEFENSE

      ----------------------------------------------------------------------

                              Table 11-1.  Federal Resources in Support of National Defense
                                                (In millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                                   Estimate
                   Function 050                   1999   -----------------------------------------------------------
                                                 Actual     2000      2001      2002      2003      2004      2005
    ----------------------------------------------------------------------------------------------------------------
    Spending:
      Discretionary Budget Authority..........   288,117   294,068   306,287   310,069   316,438   324,051   332,364
      Mandatory Outlays:
        Existing law..........................      -590      -519      -884      -839      -792      -665      -672
    Credit Activity:
      Direct loan disbursements...............  ........        11  ........       N/A       N/A       N/A       N/A
      Guaranteed loans........................         5        37  ........       N/A       N/A       N/A       N/A
    Tax Expenditures:
      Existing law............................     2,120     2,140     2,160     2,180     2,200     2,220     2,240
    ----------------------------------------------------------------------------------------------------------------
    N/A = Not available.

      ----------------------------------------------------------------------
      The Federal Government will allocate more than $306 billion in 2001 to
    defend the United States, its citizens, its allies, and to protect and
    advance American interests around the world. National defense programs
    and activities ensure that the United States maintains strong, ready,
    and modern military forces to promote U.S. objectives in peacetime,
    deter conflict, and if necessary, successfully defend our Nation and its
    interests in wartime.
      Over the past half-century, our defense program has deterred both
    conventional and nuclear attack on U.S. soil, brought a successful end
    to the Cold War, and successfully executed numerous contingency
    operations. Today, the United States is the sole remaining superpower in
    the world, with military capabilities unsurpassed by any nation. As the
    world's best trained and best equipped fighting force, the U.S. military
    continues to provide the strength and leadership that serve as the
    foundation upon which to promote peace, freedom, and prosperity around
    the globe.

    Department of Defense (DOD)

      The DOD budget provides for the pay, training, operation, basing, and
    support of U.S. military forces, and for the development and acquisition
    of modern equipment to:
      Shape the international environment by sustaining U.S. defense forces
    at levels sufficient to undertake our strategy of engagement, and
    conducting programs to reduce weapons of mass destruction, prevent their
    proliferation, and combat terrorism;
      Respond to the full spectrum of crises by stationing well-trained and
    equipped forces overseas and maintaining capabilities to mobilize and
    rapidly deploy forces stationed on U.S. soil;
      Prepare for an uncertain future by giving U.S. forces the military
    hardware that employs the best available technologies and by recruiting,
    training and retaining quality personnel;
      Ensure that the U.S. military remains the world's most prepared and
    capable force by sustaining force readiness levels and reengineering
    business practices to improve operations.
      To achieve these objectives, DOD sustains the following capabilities.

      Conventional Forces: Conventional forces include ground forces such as
    infantry and tank units; air forces such as tactical aircraft; naval
    forces such as aircraft carriers, destroyers, and attack submarines; and
    Marine Corps

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    expeditionary forces. The Nation needs conventional forces to deter
    aggression and, when that fails, to defeat it. Funds to support these
    forces cover pay and benefits for military personnel; the purchase,
    operation, and maintenance of conventional systems such as tanks,
    aircraft, and ships; the purchase of ammunition and spare parts; and
    training.
      Mobility Forces: Mobility forces provide the airlift and sealift that
    transport military personnel and materiel throughout the world. They
    play a critical role in U.S. defense strategy and are a vital part of
    America's response to contingencies that range from humanitarian relief
    efforts to major theater wars. Airlift aircraft provide a flexible,
    rapid way to deploy forces and supplies quickly to distant regions,
    while sealift ships allow the deployment of large numbers of heavy
    forces together with their fuel and supplies. The mobility program also
    includes prepositioning equipment and supplies at sea or on land near
    the location of a potential crisis, allowing U.S. forces that must
    respond rapidly to crises overseas to quickly draw upon these
    prepositioned items.
      Strategic Nuclear Forces: Strategic nuclear forces are also important
    to our military capability. Within treaty-imposed limits, they include
    land-based intercontinental ballistic missiles, submarine launched
    ballistic missiles, and long-range strategic bombers. The primary
    missions of our strategic forces are to deter nuclear attack against the
    United States and its allies, and to convince potential adversaries that
    they will never gain a nuclear advantage against our Nation.
      Supporting Activities: Supporting activities include research and
    development, communications, intelligence, training and medical
    services, central supply and maintenance, and other logistics
    activities. In particular, the Defense Health Program provides health
    care through DOD facilities as well as through TRICARE--its contracted,
    civilian network companion program.

    DOD Performance

      DOD's corporate goals derive from the key tenets of the U.S. national
    security strategy and form the basis of the performance goals and
    measures presented here.

      Shaping the International Environment and Responding to the Full
    Spectrum of Crises: DOD's first corporate goal is to shape the
    international environment by participating in international security
    organizations, such as NATO, and improving our ability to work
    cooperatively with our friends and allies. Such efforts are designed to
    promote regional stability and security, and reduce the threat of war.
    Their failure could lead to a major conflict affecting U.S. interests.
      Also, DOD must be able to respond to the full spectrum of crises, from
    small-scale contingencies to two nearly simultaneous major theater wars.
      Evaluating DOD's performance in this area includes an assessment of
    the ability of U.S. forces to:
       Enhance and sustain security relationships with friends and
              allies, enhance coalition warfighting capability, promote
              regional stability and support U.S. regional security
              objectives, deter aggression, and prevent or reduce the threat
              of conflict. One measure of this is DOD's ability to conduct
              joint exercises. In 2001, DOD will conduct 204 joint and
              combined overseas military exercises.
      DOD's current force structure (which was derived from the Quadrennial
    Defense Review (QDR)) was designed to respond to the full spectrum of
    crises, up to and including two major-theater wars. DOD acknowledges the
    impact of a high rate of operation on unit readiness. Thus, it has set
    goals for limiting operational tempo to levels which do not adversely
    impact overall quality of life for service members and their families.
    DOD will closely monitor the pace of peacetime operations across the
    forces using these goals as a guide.
       The Army will maintain four active corps headquarters, 18
              active and National Guard divisions, two active armored
              cavalry regiments, and 15 National Guard enhanced readiness
              brigades. The Army will minimize the number of units deploying
              more than 120 days per year.
       The Navy will maintain 11 aircraft wings, 12 amphibious ready
              groups, 12 aircraft carriers, 55 attack submarines, and 116

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              surface combatants. Compared to 1999, the number of aircraft
              carriers and amphibious ready groups remain at 12, surface
              combatant ships (active and reserve) remain at 116, and there
              are 2 fewer attack submarines. In addition, the Navy will
              minimize the number of units not meeting its personnel tempo
              goal.
       The Air Force will maintain 20.2 Air Force fighter wing
              equivalents, four air defense squadrons, and around 190
              bombers. The Air Force will hold unit deployments in excess of
              120 days to a minimum.
       The Marine Corps will maintain three marine expeditionary
              forces, three active and one reserve divisions, three active
              and one reserve air wings, and three active and one reserve
              force service support groups. This keeps the Marine Corps
              forces at the same level as recent years. The Marine Corps
              will minimize the number of units deploying more than 180 days
              per year over a 36-month scheduling period.
      Overseas presence, mobility, and the sustaining of a capable force
    structure are also key to DOD's ability to respond effectively to
    crises. DOD thus maintains forces ``forward deployed'' (that is, on-site
    around the world and at U.S. bases) that are capable of rapidly
    converging at the scene of a potential conflict to deter hostilities and
    protect U.S. citizens and interests in times of crisis.
       The Army will maintain, as it did in 1999, one mechanized
              division in the Pacific region and two divisions with
              substantial elements in Europe.
       The Navy will maintain an overseas presence, defined by the
              percentage of time regions are covered by an aircraft carrier
              battle group, at 100 percent in the Pacific, 75 percent in
              Europe and 75 percent in Southwest Asia. Carrier battle groups
              will continue to shift, as necessary, from these notional
              assignments to respond to real world events. In 1999, carrier
              battle groups were on station for a lesser percentage of time
              in the Pacific and Europe than planned, while Southwest Asia
              deployments increased to 100 percent coverage. Coverage in
              1999 for all three regions exceeded that achieved in 1998.
       The Air Force will continue maintaining two fighter wing
              equivalents in the Pacific, two in Europe and one in Southwest
              Asia.
       The Marine Corps will cover the Pacific region with a Marine
              expeditionary unit or amphibious ready group 100 percent of
              the time, Europe eighty percent of the time, and Southwest
              Asia 50 percent of the time. Amphibious Ready Groups will
              continue to shift, as necessary, from these notional
              assignments to respond to cover real world events. In 1999,
              for example, Marine Expeditionary Units covered Europe 100
              percent of the time, and total coverage in all three regions
              was 30 percent greater than planned.
      Remaining the world's most ready and capable force depends on six
    elements: ensuring the readiness of military units; maintaining a robust
    research and development program; procuring appropriate military
    equipment; recruiting and retaining high-quality personnel;
    strengthening and enhancing quality of life programs for military
    members and their families; and, providing equal opportunity throughout
    the armed services.
      DOD has identified specific milestones to measure progress and to
    monitor readiness levels across the forces, such as the amount of
    training that individual units accomplish, the availability and
    operability of equipment, and the achievement of recruiting and
    retention goals.
       Several factors determine overall unit readiness, such as
              training, quantity and condition of equipment, and the number
              and experience of personnel. In 2000 and 2001, DOD will ensure
              that all of its units meet their specified readiness goals.
       On average for active forces, the Army will strive to attain
              800 tank miles a year; the Air Force will strive to maintain
              its 2000 program of 17.2 active fighter/attack flying hours
              per crew a month; the Marine Corps plans to execute its
              mission training syllabus fully; and, the Navy plans to
              execute 50.5 deployed and 28.0 non-deployed ship steaming days
              per quarter.
      Finally, the amount of sealift and airlift capacity must be sufficient
    to meet deployment time lines for deterring and defeating large-

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    scale, cross-border aggression in two distant theaters in overlapping
    time frames, and to sustain U.S. forces engaged in two major theater
    wars.
       In 2001, DOD will maintain its 1999 organic strategic airlift
              capability of 26 million ton miles a day and will attain a
              surge sealift capacity of 9.2 million square feet. In 1999,
              the surge sealift capability was 7.7 million square feet.

      Preparing Now for an Uncertain Future: To achieve DOD's second
    corporate goal, U.S. forces must maintain a qualitative superiority over
    potential adversaries by pursuing a focused procurement and research and
    development program, and by recruiting, training, and retaining quality
    personnel. DOD must transform the force by exploiting the revolution in
    military affairs, and reengineering the Department to achieve a 21st
    century infrastructure. Achieving this goal depends on ensuring that:
       DOD will acquire modern and capable weapon systems and will
              deliver them to U.S. forces in 97 months or 25 percent less
              time than the 132 months it previously took, while (1)
              ensuring that costs do not grow more than one percent a year
              in the years 2000 and 2001, and (2) meeting required
              performance specifications.
       DOD will recruit more than 200,000 new members for the active
              armed services in 2001. At least 90 percent of these recruits
              will have a high school diploma and 60 percent will be in AFQT
              mental categories I-IIIA. Recruitment funding will be
              increased in 2000 and 2001 to ensure that the Services are
              successful in achieving their recruiting goals and meet the
              challenges of a booming economy and lower youth unemployment
              rates. The 2001 recruitment goal for new recruits is slightly
              above the average number of enlisted recruits during the 1997-
              9 period.
      As part of meeting this goal, DOD will follow the strategy of Joint
    Vision 2010, developed by the Chairman of the Joint Chiefs of Staff, to
    transform U.S. forces for the future, and it exploit emerging
    communication, information and associated technologies to reshape the
    way it fights and prepares for war.
       Defense Technology Objectives (DTOs) guide both basic
              research and focused investment. In 2000 and 2001, DOD will
              maintain 70 percent of DTOs on track as determined by peer
              review. For the past three years, well over 90 percent of the
              DTOs have been judged to have shown satisfactory progress.
      Joint experimentation is an aggressive new program designed to give
    insights into new operational concepts and validate their ability to
    meet future battlefield requirements. In 2001, DOD will conduct 24 joint
    experiments. This program was newly established in 1999.
      DOD must also develop new, innovative approaches to manage
    infrastructure costs and capitalize on the revolution in business
    affairs. Given its importance, DOD will again submit legislation this
    Spring for new base closure rounds in 2003 and 2005. In addition, DOD
    will continue to explore new ways to reduce infrastructure costs
    wherever possible. The budget also supports an aggressive ongoing
    program to adopt innovative management techniques and technological
    practices.
      As part of this effort, DOD must also transform its support functions.
    Therefore, DOD has identified specific measures around which to focus
    the reform of acquisition and business affairs.
      By 2001, DOD will strive to:
       Ensure that U.S. forces can achieve immediate visibility (for
              example, information on location and status) of 94 percent of
              DOD materiel assets, while resupplying military peacekeepers
              and warfighters and reducing the 1997 average order-to-receipt
              time of 35 days by more than 55 percent. Last year, DOD
              exceeded its interim goal, reducing delivery time to 18 days.
       Demolish and dispose of more than 57 million square feet of
              excess and obsolete facilities. DOD is planning to demolish
              and dispose of more than 80 million square feet by 2003.
       Develop a request-for-proposal to privatize appropriate DOD
              utility systems. Of the total 2,744 DOD utility systems, more
              than 200 already have been privatized or are no longer DOD
              systems. All eligible,

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              feasible systems are planned for privatization before October
              2003.
       Dispose of $427 million in excess National Defense Stockpile
              inventories and $180 million in unneeded Government personal
              property, while reducing supply inventory by $3 billion. In
              1999, these initiatives reduced excess inventory by over $6
              billion.
       Dispose of 57.7 million cumulative square feet of excess real
              property. Cumulative disposals through 1998 amounted to 16
              million square feet.
       Initiate competitions for more than 200,000 positions under
              OMB Circular A-76 (public-private sector competitions) and the
              new strategic sourcing processes. Savings will be around $11
              billion by 2005.
       Limit the cost growth of major acquisition programs to less
              than one percent.
       Simplify purchasing and payment by continuing to use purchase
              card transactions for at least 90 percent of all DOD
              micropurchases, while reengineering the requisitioning,
              funding, and ordering processes. DOD reached 90 percent
              purchase card usage for the first time in 1999.
       Perform 90 percent of acquisition transactions through
              electronic commerce and electronic data interchange.
       Eliminate layers of management by streamlining processes,
              while cutting DOD's acquisition-related work force by 22
              percent from its 1997 level.
      DOD's management goals address necessary improvements to the finance,
    accounting, and information systems.
      By 2001, DOD will strive to:
       Reduce the number of finance and accounting systems that do
              not comply with applicable Federal accounting standards from
              17 in 1999 to three in 2001. This continues an improvement
              effort that has reduced the total number of finance and
              accounting systems from 324 in 1991. Last year alone, DOD
              reduced noncompliant systems from 109 to 17.
       Achieve unqualified audit opinions on two additional
              financial statements.

    Department of Energy (DOE) Performance

      DOE contributes to our national security mainly by reducing the global
    danger from nuclear weapons and other weapons of mass destruction. DOE
    is committed to maintaining confidence in the nuclear weapons stockpile
    without testing to strengthen the nuclear nonproliferation regime; to
    work with states of the former Soviet Union to improve control of
    nuclear materials; to develop improved technologies to detect, identify,
    and respond to the proliferation of weapons of mass destruction and
    illicit materials trafficking; and to clean up aggressively the
    environmental legacy of nuclear weapons programs.
       The budget proposes $13.0 billion to meet DOE's national security
    objectives, of which $6.7 billion is for ongoing national security
    missions and $6.3 billion addresses environmental cleanup activities.
       DOE will achieve the following performance goals:

     National Security

       Meet all scheduled nuclear weapons alterations and
              modifications and certify to the President that standards for
              safety, reliability, and performance of the nuclear weapons
              stockpile are met. In 1999, DOE met all milestones for weapons
              alterations and certification, and DOE selected a primary
              tritium production technology.
       Provide scientific understanding of the nuclear package of
              weapon systems to sustain our ability to certify the nuclear
              weapon stockpile without underground nuclear testing. In 1999,
              DOE conducted two subcritical experiments that provided
              valuable scientific information about the implosion phase of a
              nuclear weapon and demonstrated a three trillion operations
              per second computer system.
       Produce and deliver three satellite nuclear explosion
              detection sensor systems per year to provide continuous
              worldwide monitoring for nuclear explosions occurring in the
              atmosphere or space. In 1999, DOE

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              demonstrated autonomous operations of the next-generation
              space-based radio frequency monitoring sensor.
       Continue to implement a bilateral agreement with Russia for
              disposing of surplus weapons plutonium. In 1999, DOE issued a
              Record of Decision for the U.S. surplus plutonium disposition
              program and initiated negotiations with Russia on the
              bilateral agreement.
       Begin consolidation of weapon-usable material into fewer
              buildings and fewer sites in Russia and eliminate 200
              kilograms of weapons-grade material by converting it to non-
              weapons grade form, thereby improving security and reducing
              overall cost. In 1999, DOE integrated and improved technology
              practices, facilities and training for eventual material
              protection, control and accounting for 650 metric tons of
              weapons-usable material at more than 40 locations in Russia.

     Environmental Quality

      DOE is making significant progress in reducing contamination and
    decommissioning facilities no longer needed at former nuclear weapons
    production installations. However, the following performance measures
    may show slower progress as DOE addresses more difficult and long-term
    cleanup projects.
       Complete 90 release site assessments. A release site is a
              specific location where hazardous, radioactive, or mixed waste
              has or is suspected to have occurred. In 1999, DOE completed
              288 release site assessments.
       Clean up 160 release sites, bringing the number completed to
              more than 4,900 of a total inventory of approximately 9,700
              release sites. In 1999, DOE completed cleanup of 161 release
              sites.
       Complete 40 facility decommissioning assessments.
              Decommission 30 facilities, increasing the number completed to
              more than 660 out of a total inventory of approximately 3,300
              facilities. In 1999, DOE decommissioned 92 facilities.

    Other Defense-Related Activities

      Other activities that support national defense and are implementing
    performance measurement include programs involving the:
       Coast Guard, which supports the defense mission through
              overseas deployments for engagements with friends and allies,
              port security teams, boarding and inspection teams for
              enforcing UN sanctions, training, aids to navigation,
              international icebreaking, equipment maintenance, and support
              of the Coast Guard Reserve;
       Federal Bureau of Investigation, which conducts
              counterintelligence and surveillance activities;
       Maritime Administration, which helps maintain a fleet of
              active, military useful, privately owned U.S. vessels that
              would be available in times of national emergency. By July
              1999, 93 percent of the strategic commercial port facilities
              designated as necessary to meet national security requirements
              were ready;
       Arlington National Cemetery, which is developing a capital
              investment plan for using contiguous land sites that will be
              vacated by the Services, including the Navy Annex and portions
              of Fort Meyer. A review is underway of the demographics of the
              four million annual visitors to this national historic shrine;
              and,
       Selective Service System, which is modernizing its
              registration process to promote military recruiting among
              registrants, and in cooperation with the Department of
              Defense, is reducing active duty and reserve force officers to
              reflect the readiness requirements, and to fund additional
              automation.