[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]


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                          11.  NATIONAL DEFENSE

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                          Table 11-1.  Federal Resources in Support of National Defense
                                            (In millions of dollars)
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                                                                               Estimate
               Function 050                   1999   -----------------------------------------------------------
                                             Actual     2000      2001      2002      2003      2004      2005
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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.

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  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.