    [Budget of the United States Government]
    [III. Creating a Better Government]
    [2. National Defense]
    [From the U.S. Government Publishing Office, www.gpo.gov]

    [[Page 19]]

                              2.  NATIONAL DEFENSE

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                              Table 2-1.  Federal Resources in Support of National Defense
                                                (In millions of dollars)
    ----------------------------------------------------------------------------------------------------------------
                                                                                   Estimate
                   Function 050                   2000   -----------------------------------------------------------
                                                 Actual     2001      2002      2003      2004      2005      2006
    ----------------------------------------------------------------------------------------------------------------
    Spending:
      Discretionary Budget Authority..........   300,767   311,271   325,079   333,934   343,194   352,704   362,515
      Mandatory Outlays:
        Existing law..........................      -470      -445      -122      -182      -517      -555      -630
        Proposed legislation..................  ........  ........        97       155       150       108        68
    Credit Activity:
      Direct loan disbursements...............  ........        32        72       136       201  ........  ........
      Guaranteed loans........................        47        39       120       518       537  ........  ........
    Tax Expenditures:
      Existing law............................     2,140     2,160     2,190     2,210     2,240     2,260     2,290
    ----------------------------------------------------------------------------------------------------------------

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      The Federal Government will allocate $325 billion in 2002 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 fielded forces for
    conflicts in Korea, Vietnam, and Southwest Asia, deterred both
    conventional and nuclear attack on U.S. soil, helped bring an end to the
    Cold War, and successfully executed numerous contingency operations.
    Today, the United States military remains the strongest on earth, but it
    still faces a number of challenges. These include assuring that military
    personnel are adequately paid, their families are adequately housed, and
    that they receive the necessary training and equipment to do their jobs.
    In order to meet the challenges of the 21st Century, the President has
    asked the Secretary of Defense to conduct a major review that will
    analyze the Nation's military strategy, the structure of our Armed
    Forces, and defense spending priorities.

    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 equipment. DOD sustains the capabilities that follow to achieve its
    objectives.

      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 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

    [[Page 20]]

    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 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. The
    mobility program also ensures that DOD will have access to a fleet of
    active, militarily useful, privately-owned U.S. vessels that would be
    available in times of national emergency.
      Strategic Forces: Nuclear forces are an essential element of our
    national deterrent posture. They include land-based intercontinental
    ballistic missiles, submarine-launched ballistic missiles, long-range
    bombers, and sub-strategic forces. In addition to offensive forces, the
    President has established the deployment of effective missile defenses
    as a top Administration policy. To deter new threats, including weapons
    of mass destruction and increasingly sophisticated ballistic missiles,
    we require offensive and defensive systems working together. The
    President has initiated a review to determine how to put this new
    concept of deterrence into effect.
      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

      The President has asked the Secretary of Defense to conduct a major
    review to analyze the Nation's military strategy, the structure of our
    Armed Forces, and the defense budget priorities. The results of this
    review will lay the foundation for DOD's future goals, clarify key
    performance measures, and guide future decisions on military spending.
    Consequently, DOD's 2002 Performance Plan will be prepared following the
    completion of this review. The Administration will determine final 2002
    and outyear funding levels only when the review is complete.
      DOD's Performance Report for 2000 examined the Department's success in
    achieving the goals outlined in its 2000 Performance Plan. The
    Performance Report highlighted several critical long-term goals
    accomplished by DOD in 2000.
      Overseas Presence: During 2000, U.S. military forces supported
              a variety of peacetime deployments worldwide. Many of these
              missions were undertaken as part of the almost 200 annual
              joint and combined exercises sponsored by DOD.
      Recruitment: During 2000, aggregate active and reserve
              component forces met recruiting and quality goals.
      Joint Experiments: In its second year as the lead for joint
              experimentation, the U.S. Joint Forces Command conducted 19
              transformation-related joint experiments in 2000--more than 35
              percent above original projections.
      Infrastructure Streamlining: The portion of the defense budget
              spent on infrastructure decreased from a high of 45 percent in
              1995 and 1996 to 42 percent in 1999. DOD exceeded its target
              for disposing of excess land and demolishing unused buildings.
              DOD was also able to surpass its target of 90 percent asset
              visibility and to exceed its target for reducing the National
              Defense Stockpile.
      Acquisition Reform: During 2000, 79 percent of DOD
              transactions in the areas of contracting, program management,
              and logistics were processed electronically. In addition, 95
              percent of all micro-purchases under $2,500 were made with
              purchase cards. Finally, the acquisition work force was
              reduced by an additional five percent (relative to 1997), and
              DOD completed disposal of over 50 percent of Government
              surplus property--147,000 cumulative acres.
      Financial Management: DOD has reduced the number of accounting
              and finance systems from 324 in 1991 to 76 in 2000. At the end
              of 2000, 13 accounting and finance systems were reported to be
              compliant with legislative requirements.

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      The Department will also seek to improve management and efficiency by:
    (1) reducing cost growth and cycle times on major weapon systems to less
    than one percent and eight years, respectively; (2) eliminating excess
    infrastructure; (3) expanding annual public-private A-76 competitions;
    and (4) developing better measurement of inadequate defense housing.

    Department of Energy (DOE) Performance

      DOE's defense missions include national security and environmental
    remediation. The National Nuclear Security Administration (NNSA) is
    responsible for maintaining a safe, secure, and reliable nuclear weapons
    stockpile, improving nuclear nonproliferation, and managing the naval
    nuclear propulsion program. The goal of DOE's Environmental Management
    (EM) program is to clean up the legacy of contamination from nuclear
    weapons programs.
      The NNSA and EM programs continue to experience delays and cost
    overruns in managing contracts and acquiring capital assets. DOE intends
    to increase performance-based contracting and improve project management
    to achieve significant cost savings for the taxpayers.
      The budget proposes $13.4 billion to meet DOE's national security and
    environmental objectives, of which $7.2 billion is for ongoing national
    security missions and $6.2 billion addresses environmental cleanup
    activities.
      In 2002, DOE will achieve the following performance goals:

    National Security

      Report annually to the President on the need to resume
              underground nuclear testing to certify the safety and
              reliability of the nuclear weapons stockpile.
      Meet the milestones in DOE's science campaigns to improve
              understanding of nuclear weapons systems to certify annually
              the nuclear weapons stockpile without underground testing.
      Meet all annual weapons maintenance and refurbishment
              schedules jointly developed by DOE and DOD.
      Continue consolidation of weapons-usable material into fewer
              buildings and fewer sites in Russia. Convert an additional 1.7
              metric tons of weapons grade highly enriched uranium to low
              enriched uranium, increasing the total converted to 3.8 metric
              tons.

    Environmental Quality

      Complete remediation of one geographic site, bringing the
              total number of sites cleaned up to 75 out of a total of 113.
      Clean up 64 release sites, bringing the number completed to
              more than 5,166 of a total inventory of approximately 10,000
              release sites. (A release site is a specific location where
              hazardous, radioactive, or mixed waste has or is suspected to
              have been discharged.)
      Treat high-level waste in the Defense Waste Processing
              Facility at the Savannah River site to produce 150 canisters
              of solidified waste, bringing the total produced to 1,576 of
              the estimated 19,179 required.
      Ship 3,149 cubic meters of transuranic waste to the Waste
              Isolation Pilot Plant, bringing the total waste shipped to
              6,227 cubic meters out of 175,600 cubic meters requiring
              disposal.

    Other Defense-Related Activities

       Several other national defense activities are implementing
    performance measurement. These include: the Coast Guard; the Federal
    Bureau of Investigation; the American Battle Monuments Commission;
    Arlington National Cemetery; and the Selective Service System.
      The Coast Guard 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.
      The Federal Bureau of Investigation conducts counterintelligence and
    surveillance activities.

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      The American Battle Monuments Commission is reducing the backlog of
    maintenance and continuing productivity improvements at cemeteries and
    memorials overseas.
      Arlington National Cemetery is implementing a capital investment plan
    for using contiguous land sites that will be vacated by the Services,
    including the Navy Annex and portions of Fort Myer. A review is underway
    of the demographics of the four million annual visitors to this national
    historic shrine.
      The Selective Service System is modernizing its registration process
    to promote military recruiting among registrants, and in cooperation
    with DOD, is reducing active duty and reserve force officers to reflect
    the reduced readiness requirements, and to fund additional automation.