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


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                          2.  NATIONAL DEFENSE

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                          Table 2-1.  Federal Resources in Support of National Defense
                                            (In millions of dollars)
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                                                                               Estimate
               Function 050                   2000   -----------------------------------------------------------
                                             Actual     2001      2002      2003      2004      2005      2006
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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

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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.