    [Senate Hearing 113-762]
    [From the U.S. Government Publishing Office]

           DEPARTMENT OF DEFENSE APPROPRIATIONS FOR FISCAL YEAR 2015

                                  ----------

                           WEDNESDAY, MARCH 26, 2014

                                           U.S. Senate,
               Subcommittee of the Committee on Appropriations,
                                                        Washington, DC.
        The subcommittee met at 10 a.m., in room SD-106, Dirksen
    Senate Office Building, Hon. Richard J. Durbin (chairman)
    presiding.
        Present: Senators Durbin, Mikulski, Cochran, Shelby,
    Collins, Graham, and Coats.

                             DEPARTMENT OF DEFENSE

                             Department of the Navy

                            Office of the Secretary

    STATEMENT OF THE HON. RAY MABUS, SECRETARY OF THE NAVY

                 opening statement of senator richard j. durbin

        Senator Durbin. Good morning. The subcommittee meets this
    morning to receive testimony on the fiscal year 2015 budget
    request for the United States Navy and Marine Corps.
        Pleased to welcome the Secretary of the Navy, the Honorable
    Ray Mabus; the Chief of Naval Operations (CNO), Admiral
    Jonathan Greenert; the Commander of the Marine Corps, General
    James Amos; the Chief of the Navy Reserve, Vice Admiral Robin
    Braun; and the Chief of the Marine Corps Reserve, Lieutenant
    General Richard Mills.
        Gentlemen, thank you for being with us today and providing
    your testimony. At the outset, I would like to speak, I am sure
    on behalf of the entire committee, and express our condolences
    to the entire Navy family for the death of a young sailor late
    Monday night at Naval Station Norfolk, responding to a security
    breach on a guided missile destroyer, the USS Mahan. During the
    struggle, the intruder wrestled a gun away from another guard
    and shot the sailor. Our condolences go out to his family.
        An investigation is underway. And we look forward to
    learning more about the incident as soon as possible.
        For fiscal year 2015, the President's budget requests $148
    billion in base funding for the Department of the Navy.
    However, the request does not include the Overseas Contingency
    Operation request, which is a big concern.
        Until we receive the President's request for plans in
    Afghanistan after 2014, it is virtually impossible to
    understand what is required to support sailors and marines
    serving in war zones.
        The Navy is making significant changes to future programs,
    such as requesting reduction to the number of cruisers, not
    funding the overhaul of George Washington, and making
    significant reductions in aircraft ammunitions. This causes
    serious concern about the Navy and Marine Corps' ability to
    execute the shift to the Pacific, along with other
    responsibilities.
        In addition, we are concerned as we look across the next 5
    years of budgets, as the Department of Defense added $115
    billion over the BCA (Budget Control Act) caps written in law.
    What happens if these funds don't materialize?
        Similarly, if funding for education, healthcare, and other
    domestic programs remain at sequester levels, will the Navy and
    Marine Corps have more challenges in finding well-educated,
    fit, capable young men and women to recruit?
        Throughout this conversation, we cannot waver in protecting
    our most precious asset, our people, whether it is one of the
    38,000 new sailors in boot camp at Naval Station Great Lakes in
    Illinois, which we are very proud of, or a Marine unit rotating
    through Darwin, Australia.
        Our men and women in uniform are the finest, most skilled
    fighting forces in the world, and we can't allow budget
    pressures to squander those skills.
        As the department's senior leadership, this committee needs
    your guidance on a number of crucial personnel questions. How
    can the Navy and Marine Corps recruit and retain the best
    talent to deal with the challenges of the 21st century? What
    more can be done to address suicide and PTSD (post-traumatic
    stress disorder)? How do we keep faith with servicemembers and
    their families in this budget environment? What must we do
    differently to combat sexual assault?
        I look forward to working with our distinguished panel
    throughout the year so that our fiscal year 2015 appropriations
    bill can enable the U.S. Navy and the Marine Corps to defend
    our national interests around the world.
        We sincerely do appreciate your service to our Nation, and
    the dedication and sacrifice made every single day by the men
    and women in our Navy and Marine Corps.
        I thank you for your testimony this morning. Your full
    statements will be part of the record.
        Senator Durbin. I am going to turn to our vice chairman,
    Senator Cochran, and then to the chairman of the full
    committee, Senator Mikulski.

                       statement of senator thad cochran

        Senator Cochran. Mr. Chairman, I am pleased to join you in
    welcoming our distinguished panel of witnesses today. We
    appreciate their leadership.
        The importance of the Navy and Marine Corps role is
    becoming even greater with increased presence in the Asia-
    Pacific region. The department has earned a high level of
    distinction for its accomplishments over the years, the Marine
    Corps, as well. And we are really fortunate to have the kind of
    leadership that we have now in these important positions.
        We look forward to hearing your testimony. Thank you.
        Senator Durbin. Senator Mikulski.

                    statement of senator barbara a. mikulski

        Senator Mikulski. Thank you, Mr. Chairman.
        Mr. Chairman, as you know, I am here as a member of the
    committee, but as the chair of the full committee, I want the
    record to note that both Senator Shelby and I are here to
    support our subcommittee chairman and our vice chairman,
    Senator Cochran, to show that the Appropriations Committee is
    committed to keeping America strong, to supporting its United
    States military, not only with words and what is in the Federal
    law books, but what to put in the Federal checkbook. We are
    going to eagerly listen to the testimony presented today.
        And we also want to note that for one member of the panel,
    it will be his last appearance before Appropriations, with the
    retirement of General Amos. So we want to, in the warmest, most
    admirable way, thank him for his service.
        We in Maryland are really proud of the Navy and the Marine
    Corps. We are the home of one of the oldest ships in the Navy,
    the Constellation, one of the oldest warships, to one of its
    most modern fleets, the Tenth Fleet, in terms of the cyber-
    fleet.
        We are also the home to hallmark institutions within the
    Navy, from the Naval Academy to the Patuxent River Navy Base.
        So we are a Navy State, and we look forward to continuing
    to support you.
        We, too, want to express our condolences in terms of the
    terrible shooting at Norfolk. I want to express my condolences
    to the Navy family, and especially the Naval Academy family,
    for the death of Will McKamey, a 19-year-old freshman who died
    in shock trauma of a brain trauma.
        But as we express our condolences, those young men would
    want us to make sure we have the best Navy and Marine Corps
    that we can.
        We look forward to your testimony, in both what we need in
    terms of its physical infrastructure, but also building its
    human capital.
        So with that, Mr. Chairman, I am eager to hear the
    testimony.
        Senator Durbin. Let's see if Senator Shelby has any
    comments he'd like to make.

                     statement of senator richard c. shelby

        Senator Shelby. Mr. Chairman, I would like for my whole
    statement to be made part of the record.
        And I just want to, again, welcome the Secretary of the
    Navy and his distinguished colleagues here today.
        This is a very important hearing. It is important for us to
    hear on the Appropriations Defense Subcommittee and the full
    Committee of Appropriations, but it is important to the
    security of this country at a crucial time.
        I look forward to all of your testimony and the chance to
    ask questions.
        Senator Durbin. Anyone else wish to make opening comments?
        Senator Collins.

                       statement of senator susan collins

        Senator Collins. Mr. Chairman, in light of the time
    constraints this morning, I will submit my opening statement
    for the record.
        But I just want to welcome all of our witnesses, and note
    that Vice Admiral Braun is from the great State of Maine.
        [The statement follows:]
                 Prepared Statement of Senator Susan M. Collins
        Thank you, Chairman Durbin, for holding this hearing to review the
    Department of Navy's fiscal year 2015 budget submission. This
    subcommittee has a number of important decisions to make, but I am
    hopeful that we can again produce a bipartisan funding bill to support
    our military.
        Secretary Mabus, General Amos, Admiral Greenert, thank you for
    appearing here today and please accept my thanks for your decades of
    collective service to our country.
        I am generally supportive of many of the provisions in the current
    budget. For example, I am pleased that the administration continues to
    fully fund the DDG-51 and DDG-1000 programs which are essential to the
    future of our surface fleet.
        That being said, I have some serious concerns about the proposed
    way forward from a strategic global force standpoint. Our renewed focus
    on the Asia-Pacific region as an area of the highest strategic
    interest, as well as instability in other areas of the world, call for
    maintaining a strong and capable surface fleet.
        What troubles me, however, is that rather than growing the fleet to
    keep pace with the threat, we seem to be headed in the opposite
    direction. In its fiscal year 2014 30-year shipbuilding plan, the Navy
    laid out its need for 306 battle force ships, a reduction from their
    previous requirement of 313 battle force ships. Yet 2 weeks ago, the
    Chief of Naval Operations said that we would need 450 ships to meet the
    present combatant command needs.
        Then just this month, the Navy changed its procedures regarding
    which ships count toward the battle force. For the first time, the Navy
    announced that it is counting ships such as the Cyclone-class coastal
    patrol craft and hospital ships towards its total.
        Moreover, it has been announced that the Navy intends to count the
    11 guided missile cruisers that will be placed in a ``reduced operating
    status'' to save on operations and manning costs as part of the Navy's
    fiscal year 2015 budget proposal. All these changes mask the reductions
    to the surface fleet.
        I am concerned that we continue to move further away from the
    number of ships we actually need to protect our national security. For
    my part, I will continue to argue for maintaining a strong surface
    fleet. So in the coming months, I hope to work closely with you and my
    colleagues on the subcommittee to see how we can work to help the Navy
    get the fleet we really need.
        I look forward to your testimony today.

        Senator Durbin. Senator Coats.

                       STATEMENT OF SENATOR DANIEL COATS

        Senator Coats. Except for the recognition of the State of
    Maine, a ditto to what Senator Collins just said.
        No disrespect for Maine. It is just that I don't have the
    same parochial interest.
        But our time is constrained. We ought to hear what these
    people have to say.
        Senator Durbin. Someone said all politics is local.
        Secretary Mabus, please proceed.

                      SUMMARY STATEMENT OF HON. RAY MABUS

        Mr. Mabus. Mr. Chairman, before I begin my formal
    statement, I would like to thank you and the members of the
    committee for your condolences on behalf of the Navy family. We
    send out our thoughts and prayers to the family, the shipmates,
    the friends of the sailor who was lost in Norfolk, and also to
    the midshipman who died at the Naval Academy.
        Mr. Chairman, Madam Chairwoman, Vice Chairman Cochran, and
    members of this subcommittee: First, thank you for your support
    of the Department of the Navy, for our sailors and marines, our
    civilian employees, and their families.
        General Amos, the Commandant of the Marine Corps, and
    Admiral Greenert, the Chief of Naval Operations, and I couldn't
    be prouder to represent those courageous and faithful sailors,
    Marines, and civilians. These men and women serve their Nation
    around the world with skill and dedication, no matter what
    hardships they face, no matter how far they are from home and
    from their families.
        And as Senator Mikulski pointed out, I want to take a
    personal moment, this will be the last hearing before this
    committee on posture that General Amos participates in. And I
    just want to say what a high privilege and great honor it has
    been to serve with the Commandant of the Marine Corps James
    Amos.
        The architects of our Constitution recognized the inherent
    value of the United States Navy and Marine Corps. Article I
    section 8 gave Congress the responsibility to provide and
    maintain a navy because our Founding Fathers knew that the
    Nation needed a naval force to operate continuously in war and
    peace.
        Over two centuries ago, the United States had a crucial
    role in the world. Today, that role is exponentially greater.
        Whether facing high-end combat, asymmetrical threats or
    humanitarian needs, America's maritime forces are ready and
    present on day one of any crisis, for any eventuality.
        In today's dynamic security environment, naval assets are
    more crucial than ever. In military terms, they provide
    presence--presence worldwide. They reassure our partners that
    we are there, and remind potential adversaries that we are
    never far away.
        This presence provides immediate and capable options for
    the Commander in Chief when a crisis develops anywhere in the
    world. In the past year, our naval forces have operated
    globally from across the Pacific to continuing combat in
    Afghanistan, from the Gulf of Guinea to the Arctic Circle.
        The 2012 Defense Strategic Guidance and the newly released
    QDR (Quadrennial Defense Review) are both maritime in focus and
    require presence of naval forces around the world. Four key
    factors make that global presence and global action possible.
        These four factors--people, platforms, power, and
    partnerships--have been my priorities during my tenure as
    Secretary, and they have to continue to receive our focus
    looking ahead.
        In our fiscally constrained times, we have used these
    priorities to help balance between the readiness of the force,
    our capabilities, and our capacity.
        Our people are our biggest challenge, and we have to ensure
    that they continue to get the tools they need to do their job.
    In compensation, we have increased sea pay to make sure those
    sailors and marines deployed aboard ship are appropriately
    recognized.
        However, this budget also seeks to control the growth in
    compensation benefits, which threatens to impact all other
    parts of our budget. If this is not addressed, as the CNO has
    so forcefully put it, the quality of work for our sailors and
    marines will almost certainly decline.
        Shipbuilding and our platforms remain key elements of our
    maritime power, and a focus of this committee. The number of
    ships, submarines, and aircraft in our fleet is what gives us
    the capacity to provide that global presence.
        While we have the most advanced platforms in the world,
    quantity has a quality all its own. And I think it is important
    to understand how we got to our current fleet size.
        On September 11, 2001, our fleet stood at 316 ships. By
    2008, after one of the great military buildups in American
    history, the fleet was down to 278 ships. In the 4 years before
    I took office, the Secretary of the Navy put 19 ships under the
    contract. Since I took office in May 2009, we have put 60 ships
    under contract. And, by the end of this decade, our plan will
    return the fleet to 300 ships.
        We are continuing our initiatives to spend smarter and more
    efficiently, which are driving down costs through things like
    competition, multiyear buys and just drive a harder bargain for
    taxpayer dollars.
        Power, or energy, is a national security issue and central
    to our naval forces and our ability to provide that presence.
    Dramatic price increases for fuel threaten to degrade our
    operations and training, and could impact how many platforms we
    can acquire.
        Having more varied, stably priced, American-produced
    sources of energy makes us better warfighters. From sail to
    coal to oil to nuclear, and now to alternative fuels, the Navy
    has led in energy innovation.
        Since the end of World War II, U.S. naval forces have
    protected the global commons to maintain the foundation of the
    world's economy. In today's complex environments, partnerships
    with other nations, evidenced by things like interoperability,
    exercises, and operations continue to increase in importance.
        The Navy and Marine Corps, by the nature of their forward-
    presence, are naturally suited to develop these relationships,
    particularly in the innovative small footprint ways that are
    required.

                               PREPARED STATEMENT

        With the fiscal year 2015 budget's submission, we are
    seeking, within fiscal constraints imposed, to provide our Navy
    and Marine Corps with the equipment, the training, and the
    tools needed to carry out the missions the Nation needs and the
    Nation expects from them.
        There are never any permanent homecomings for sailors or
    marines. In peacetime, wartime, all the time, they remain
    forward-deployed, providing presence, and providing whatever is
    needed by our country.
        This has been true for 238 years, and it is our task to
    make sure it remains true now and in the future.
        Thank you.
        [The statement follows:]
                      Prepared Statement of Hon. Ray Mabus
        Chairman Durbin and Ranking Senator Cochran, and members of the
    committee: today I have the privilege of appearing to discuss posture
    and readiness for the fifth time on behalf of the men and women of the
    Department of the Navy. It is an honor to represent the Sailors and
    Marines across the globe, as the Marine Hymn says, ``in every clime and
    place;'' the civilians who support them at home and around the world;
    and to report on the readiness, posture, progress, and budgetary
    requests of the Department. Along with Commandant of the Marine Corps,
    General James Amos, and Chief of Naval Operations (CNO), Admiral
    Jonathan Greenert, I take great pride in the opportunity to both lead
    and serve the dedicated men and women of our Department. This
    statement, together with the posture statements provided by CNO
    Greenert and Commandant Amos, are designed to present an overview of
    the state of the Department of the Navy for your consideration as we
    move forward with the fiscal year 2015 budget process.
        The architects of our Constitution recognized the inherent value of
    the United States Navy and Marine Corps. Article 1, section 8, gave
    Congress the responsibility to ``provide and maintain a Navy,'' because
    our Founding Fathers knew that the Nation needed a naval force to
    operate continuously in war and peace. Over two centuries ago they
    recognized that having a Navy and Marine Corps to sail the world's
    oceans in defense of our national interests and our commerce sent a
    powerful signal to our allies and our potential adversaries. Even then,
    the United States had a crucial role in the world. Today that role is
    exponentially greater.
        This year we celebrate the Bicentennial of Thomas Macdonough's
    ``signal victory'' on Lake Champlain during the War of 1812. From that
    early triumph in the defense of our Republic to the heroic fights in
    places like Mobile Bay and Manila; to the Chosin Reservoir and the
    quarantine during the Cuban Missile Crisis and the coastal and riverine
    patrols of Vietnam; to the mountains of Afghanistan and the littorals
    of the Pacific presently; our Navy and Marine Corps have been there
    when the Nation called. We have given our Commanders-in-Chief the
    options needed.
        These options are far greater than just waging war, although the
    Navy and Marine Corps are ready, when necessary, to fight and win our
    Nation's wars. In today's complex world, with a dynamic security
    environment, naval assets are more critical than ever. This year our
    ground forces are returning home from the battlefields of Afghanistan,
    just as they have from Iraq. Yet our Sailors and Marines know that they
    will continue to forward deploy as the guardians of our safety and
    security. In peace, as in war, we will deploy, day after day, year
    after year. For seven decades our global presence and maritime strength
    have ensured the freedom of the seas and the security of peaceful free
    trade around the world. This has resulted in unprecedented growth in
    the world's economy, which has benefitted all. It also ensures
    America's interests are respected and our people remain secure.
        The Navy and Marine Corps respond whenever the Nation calls.
    Whether facing high-end combat, asymmetrical threats or humanitarian
    needs, America's maritime forces are ready and present on Day One of
    any crisis, for any eventuality.
                           strategic context in 2013
        Throughout the past year, the Navy and Marine Corps repeatedly
    demonstrated the critical role they play in ensuring global stability.
    In military terms, they provide worldwide presence. Naval forces
    operated across the Pacific, and in the continuing combat mission in
    Afghanistan, from the Gulf of Guinea to the Arctic Circle. As President
    Theodore Roosevelt said, ``A good Navy is not a provocation to war. It
    is the surest guarantee of peace.'' We don't have to surge units from
    home. Our ships don't take up an inch of anyone else's soil. We
    reassure our partners that we are there, and remind those who may wish
    our country and allies harm that we're never far away. We protect the
    global commons and ensure the freedom of navigation which has
    underwritten the growth of the world's economy for decades.
        In recent years we have had a range of examples which illustrate
    what our Navy and Marine Corps mean for our Nation. Every time North
    Korea conducts missile tests or threatens their neighbors, our
    Ballistic Missile Defense ships are already there, already on patrol.
    There's no overt escalation, because we are already present. When
    special operations units conduct operations all over the globe, from
    capturing known terrorists in Libya to raids in Somalia, they rely on
    Navy ships and Marine Corps units as critical enablers. We support
    friends and allies with humanitarian assistance missions like Pacific
    Partnership and in exercises that help build our ability to operate
    together like our Cooperation Afloat Readiness and Training (CARAT)
    exercises with numerous partners. Around the world the credible combat
    power of the U.S. Navy and Marine Corps opens the door for diplomacy
    and helps our leaders address emerging threats.
        A few months ago when Typhoon Haiyan moved toward our allies in the
    Philippines, our naval forces in the region tracked its progress. U.S.
    Marines were on the ground within hours after the storm. Our C-130s and
    MV-22 Ospreys brought in early aid and began to survey and assess the
    damage. Within days we had a dozen ships, including the George
    Washington Strike Group, in the waters around the Philippines along
    with over a hundred aircraft, providing lifesaving aid and supplies to
    devastated communities.
        Humanitarian Assistance and Disaster Relief missions are an
    important contribution our Navy and Marine Corps make to our Nation's
    diplomacy because our presence allows us to respond quickly and
    effectively. These operations build our partnerships and they encourage
    stability and security by helping those in need get back on their feet.
    However, it should not be lost on anyone that we are talking about
    warships, warplanes and warfighters. We amassed a dozen combat ready
    warships and massive amounts of air support, rapidly, to respond to a
    crisis. We were able to do so because of the inherent flexibility of
    our people and our platforms.
        These examples demonstrate that for the Navy and Marine Corps
    global presence is our purpose. We are there to deal with the
    unexpected. We are the Nation's hedge against new crises and new
    conflicts. The Navy and Marine Corps are our Nation's Away Team, ready
    for whatever comes over the horizon.
                               today's priorities
        Four key factors make our global presence and global action
    possible. These four factors--People, Platforms, Power and
    Partnerships--have been my priorities during my tenure as Secretary and
    they must continue to receive our focus looking ahead.
        Each of these four priorities contributes directly to the
    Department of the Navy's ability to provide the presence and options
    which the Commander-in-Chief and the American people have come to
    expect. They are what makes our Navy and Marine Corps the most
    immediate and capable option when a crisis develops anywhere in the
    world. Our People, Platforms, Power, and Partnerships guide our
    approach to the fiscal year 2015 budget process.
                       people--supporting our vital asset
        In 1915, my predecessor, Josephus Daniels testified before Congress
    that ``a Navy, no matter how powerful, unless it is well manned by an
    adequate number of well-equipped and well trained Sailors, would have
    very little value.'' That statement is even more true today. Our Total
    Force of active duty and reserve military, and civilians are what make
    the Navy and Marine Corps the best in the world.
        Our equipment--the ships, submarines, aircraft, vehicles, weapons
    and cyber systems; everything that our Sailors and Marines operate--are
    technological marvels and the most advanced in the world. But they only
    exist thanks to those who design, build and procure them. And they
    would be useless without those who sail and fly and operate them. The
    people are the real marvel. They are what gives the United States the
    edge and what sets us apart from the world. And that is why our people
    have been and must continue to be our highest priority. However, the
    last few years have seen increasing challenges to our people, uniform
    and civilian.
        Those in uniform have seen ever lengthening deployments. The
    average number of days that ships are underway or deployed increased 15
    percent since 2001. In 2013 the USS Dwight D. Eisenhower Strike Group
    returned from back-to-back deployments, totaling 12 months, with only a
    2-month break in between. USS Nimitz, which returned home just before
    Christmas, was extended twice because of the crisis in Syria and was
    deployed for 10 months. Instead of 6-month deployments, which had been
    standard for decades, 8 months at sea is the new normal and 10 months
    is becoming more common. These extended deployments, which immediately
    follow an intense training cycle requiring recurring operations at sea,
    stress our Sailors and Marines and their families. This will continue
    because the requirement for naval presence will not diminish.
        Our civilian personnel have been tested as well. We literally could
    not put our fleet to sea without these committed and courageous
    individuals. The horrific attack at the Washington Navy Yard in
    September cost the lives of 12 devoted public servants left two
    physically injured and intangible scars across our workforce. Just days
    later, as soon as they were permitted, most of their colleagues on the
    Navy Yard returned to work, committed to their mission despite 3 years
    in which they received no pay raises and were subject to furloughs. Two
    weeks after the shooting our Navy and Marine Corps civilians, including
    many who worked at the Navy Yard but were not part of Naval Sea Systems
    Command or Naval Facilities Engineering Command, were forced off the
    job again by the Government shutdown.
        A concrete demonstration of our support for our Sailors, Marines,
    and civilians are their pay and benefits. Military pay and benefits
    continue at a competitive level, and in some skill areas are better
    than those found in the private sector. The promise of a military
    retirement is a key element of the covenant we have with the men and
    women who serve our country for an entire career. We must safeguard
    that promise for today's Sailors and Marines. However, we also have to
    realize that the growth rate in military compensation must be
    controlled. Our Sailors and Marines chose to serve their country out of
    duty and patriotism, not just for the money. We must ensure that we
    support our active duty personnel by giving them the resources and
    tools they need to do their jobs, as well as their well-earned
    compensation.
        We support the sensible and fair reforms to compensation and
    benefits introduced in the President's budget. We look forward to
    considering the complete review being conducted by the Military
    Compensation and Retirement Modernization Commission. We must have a
    holistic approach which ensures that any changes are reasonable,
    effective, and fair in sustaining the All-Volunteer Force.
        Today's demanding environment will require the most resilient force
    that our Navy and Marine Corps has ever fielded. Because of that we
    continue to develop the 21st Century Sailor and Marine Initiative as an
    overarching method of supporting our people, to eliminate stovepipes
    and ensure a comprehensive approach. The goal is to help our Sailors
    and Marines maximize their personal and professional readiness, and to
    assist them and their families with the mental, physical and emotional
    challenges of military service.
        The initiative is influencing Sailors and Marines around the world.
    In particular, we are working to counter the challenges of suicide,
    sexual assault and alcohol-related incidents. These tragic occurrences
    not only impact the resilience of our Sailors and Marines, they also
    directly impact the discipline of the force and degrade combat
    effectiveness.
        We remain resolute in our efforts to minimize suicides and we are
    striving to understand the root causes and contributing factors that
    lead to suicide and suicide-related behavior. We want an environment in
    which Sailors and Marines are comfortable coming forward when they feel
    they may harm themselves, or when they know of a shipmate contemplating
    harm. Over the past few years we have introduced a number of
    initiatives including the Navy Operational Stress Control (OSC) Program
    to help build personal resilience, promote peer-to-peer support,
    enhance family support, and enable intervention up and down the chain
    of command. We have also added additional Mobile Training Teams who
    travel to units around the world to teach these skills and foster a
    sense of community. Our suicide prevention teams examine each incident
    for insights and data to inform our programs and we apply those lessons
    to help improve our training and policy.
        Sexual assault continues to be an ``insider threat'' with serious
    impacts on the Navy and Marine Corps. Because of the seriousness of
    this issue, soon after taking office I established the first and only
    Sexual Assault Prevention and Response Office reporting directly to me
    as Secretary. We have implemented numerous programs to strengthen our
    approach, including consistent leadership, new training methods, and
    victim-centered support efforts. Reporting of sexual assaults increased
    in fiscal year 2013, which we believe reflects a positive aspect of our
    efforts. It indicates that our Sailors and Marines believe that their
    reports will be taken seriously and that perpetrators will be held
    accountable.
        Another key element is our effort to strengthen the expertise and
    increase the resources of the Naval Criminal Investigative Service and
    our Judge Advocates to investigate and prosecute sexual criminals. We
    have also focused some of their training on advocating for victims. We
    continue to conduct regular voluntary anonymous surveys in order to
    learn as much as possible about perceptions and the factors influencing
    decisions to report or not report sexual assaults
        We continue to work to curb alcohol abuse and reduce the number of
    alcohol-related incidents which can end lives and careers. There has
    been a downward trend in alcohol related incidents which continued in
    2013 as we saw yet another reduction in cases of DUI and alcohol
    related behavior. We attribute this in part to dynamic media and
    education campaigns and directed-actions for irresponsible use of
    alcohol. We have also instituted limits to the shelf space available
    for the sale of alcohol at Navy and Marine Corps Exchanges.
    Implementation of the alcohol detection device program is still
    relatively new but fleet feedback suggests these devices, paired with
    an effective command prevention program which includes things like
    curfews and base patrols, provide an effective deterrent to alcohol
    abuse.
        Another positive development in 2013 was the significant strides
    the Navy made toward our goal of complete equality of opportunity for
    women in every officer designator and enlisted rating. Female officers
    and enlisted currently serve on virtually every class of surface ship
    and in every type of aviation squadron. Female officers now serve as
    well in our Submarine Force and the Task Force on Enlisted Women in
    Submarines continues to develop details for full Submarine Force
    integration. The Navy is opening 252 enlisted and 15 officer billets to
    women in the Coastal Riverine Force. The sole remaining area in the
    Navy not yet open to women is Navy Special Warfare. However, once
    assessments are complete and Congress has been notified, assigning
    women in that area will be in accordance with the U.S. Special
    Operations Command implementation plan.
        The Marine Corps continues to implement its plan to open closed
    positions to women. All positions currently closed will either be
    opened to women or an exception to policy requested from the Secretary
    of Defense by January of 2016. Since the 2011 NDAA the Marine Corps has
    opened 463 positions in 22 units in the Ground Combat Element to female
    officers and staff noncommissioned officers with open occupational
    specialties. Female officers and female enlisted Marines have been
    given the opportunity to volunteer for the training in Infantry Officer
    School or the Infantry Training Battalion as part of the research
    effort to inform decisions to open currently closed positions to women.
                      platforms--building the future fleet
        The Marines, Sailors and civilians are the heart of our force, but
    what enables them to do their job are the ships, submarines, and
    aircraft in our fleet. As I noted earlier, we have the most advanced
    platforms in the world and we must constantly work to maintain that
    technological advantage. However, at a certain point quantity has a
    quality all its own.
        The very nature of the Navy and Marine Corps mission, maintaining a
    global presence and positioning forces to respond immediately to
    emergent threats from man or nature, means that there is not much
    difference in our operations in times of war or peace. And the updated
    Defense Strategic Guidance and Quadrennial Defense Review clearly rely
    even more on maritime assets in our national security strategy.
        It is important to understand how we got to our current fleet size.
    On 9/11, the fleet stood at 316 ships. By 2008, after one of the
    largest military buildups in American history, that number had dropped
    to 278 ships. In the 4 years before I took office as Secretary, the
    Navy put 19 ships under contract. Since I took office in May of 2009,
    we have put 60 ships under contract and by 2019 our current plan will
    enable us to return the fleet to 300 ships.
        Some of the Navy's decline in the number of ships may be attributed
    to our understandable focus on ground forces involved in two major wars
    for more than a decade. But when I took office, I found it necessary to
    significantly revamp our basic management and oversight practices as
    well.
        When I took office, many of the Navy's shipbuilding programs were
    seriously troubled, with costs spiraling out of control and schedules
    slipping. There were some fundamental flaws in the acquisition process
    we were using. Ships were still being designed while under
    construction, immature technology was added before being proven, and
    requirements grew without restraint or realistic price forecasts. One
    of the central problems the Navy faced was a lack of competition in the
    system. With a smaller number of shipbuilders, Navy contracts had begun
    to be treated like allocations, rather than competitions to earn our
    business.
        In the past 5 years we have turned shipbuilding around by promoting
    acquisition excellence and integrity as well as aggressive oversight.
    We have been rebuilding the Department's core of acquisition
    professionals. Our focus is on everything from requirements, to design,
    to construction efficiency, to projected total life cycle costs. We
    emphasized firm, fixed-price contracts over the cost-plus contracts
    that can inflate costs. We introduced initiatives to spend smarter and
    more efficiently through competition, multiyear buys, and driving
    harder bargains for taxpayer dollars. I have made it clear to industry
    that Navy expects three things. A learning curve should be evident so
    each ship of the same type, whose design had not dramatically changed,
    would take fewer man-hours to build and should cost less than previous
    ships. Second, costs have to be scrubbed relentlessly with total
    visibility for Navy in estimates and bids. Third, appropriate
    investments in both infrastructure and workforce training must be made
    and are a shipbuilder's responsibility.
        But along with those harder bargains and expectations I made a
    commitment to our industry partners that the Department will do three
    things to keep up our end of the relationship. First, we must build
    stable designs without major changes during construction. Second, if a
    new advanced technology comes along after construction has started; it
    must wait until the next block of ships. Finally, we will offer a
    realistic shipbuilding plan so that the number, type, and timing of
    building would be transparent and offer some stability to the industry.
        In today's fiscal environment maintaining and increasing the fleet
    size will require sound management, innovative solutions, and
    continuing to seek out efficiency in our acquisition system. Navy
    shipbuilding is a unique public-private partnership; a key economic
    engine touching all but one of the 50 States that provides over 100,000
    high-skilled, high-paying jobs and the basis for the global prosperity
    and security that naval presence has assured since World War II.
        The fiscal year 2015 Shipbuilding Plan projects that we will reach
    300 ships by the end of the decade. This plan maintains a force that is
    balanced and flexible and focuses on critical technologies. It is
    designed to be able to prevail in 21st century combat situations,
    including anti-access, area-denial environments, and to be
    operationally effective and resilient against cyber attacks. In 2013 we
    awarded two Arleigh Burke class destroyers (DDGs) and contracted for
    seven more, which will be built over the next several years through a
    multiyear procurement contract. In total in 2013 we delivered seven new
    vessels to the fleet. We deeply appreciate the support of this
    committee and will work with you in order to build and maintain the
    fleet needed to address our global requirements and responsibilities.
        2013 saw a number of significant milestones for our new platforms
    and our research and development (R&D) programs. Our interim Afloat
    Forward Staging Base (AFSB) USS Ponce continued to develop operating
    concepts for future AFSB's and Mobile Landing Platforms (MLPs). The
    next generation destroyer USS Zumwalt (DDG-1000) and the MLP USNS
    Montford Point were launched. The first P-8 Poseidon maritime patrol
    aircraft deployed to the Pacific and the Navy and Marine Corps
    established their first F-35 Lightning II squadrons. The Air and
    Missile Defense Radar (AMDR) began development. The Standard Missile 6
    (SM-6) was introduced to the fleet. None of these programs would be
    possible without your continued support.
        The deployment of Littoral Combat Ship (LCS) USS Freedom to the
    Pacific is an important milestone in the LCS Program. The deployment
    tested the ship and its key operating concepts, overcame first-in-class
    challenges, and provided the Navy with lessons learned and ways to
    improve the program. The rotational forward deployment of the ship with
    our friends in Singapore was an unqualified success. In addition to
    contributing to relief efforts for Typhoon Haiyan, the ship also
    conducted a very successful crew-swap, teaching us a great deal about
    the LCS's new and innovative manning and deployment concepts.
        Our aviation and weapons programs are just as important to our
    ability to project power and provide presence as our shipbuilding. In
    May Admiral Greenert and I stood on the deck of USS George H.W. Bush
    and watched the landing of the X-47B unmanned carrier demonstrator. It
    was an historic moment in naval aviation, and a critical step forward
    in the development of our naval unmanned systems. We are pushing ahead
    with the Unmanned Carrier Launched Airborne Surveillance and Strike
    system (UCLASS) to develop an aircraft capable of multiple missions and
    functions, including precision strike in a contested environment.
    Support for this aircraft is vital for shaping the carrier air-wing for
    the challenges of the 21st century. To enhance our combat effectiveness
    and efficiency, these unmanned systems need to be integrated into
    everything we do across the full range of military operations.
        The at-sea testing of a directed energy weapon system was also an
    important development. These new systems can give the Navy an
    affordable, multimission weapon with a deep magazine and unmatched
    precision. Their modular nature will allow them to be installed on
    numerous different classes of ships in the future. We intend to deploy
    the system on the USS Ponce to continue testing and inform follow on
    Navy and DOD research into developing and integrating affordable
    directed energy weapons into the Joint Force.
        During difficult fiscal times it may be tempting to target research
    and development programs for savings. However, that kind of thinking is
    short sighted. These programs, and our entire research and development
    establishment from the Office of Naval Research to Navy labs to our
    industry partners, are vital to our future.
                        power--a national security issue
        Power and energy are central to our naval forces and our ability to
    be in the right place, around the world. It is what we need to get them
    there and keep them there. The Navy has a long, proud history of energy
    innovation. From sail to coal to oil to nuclear, and now to alternative
    fuels, the Navy has led the way.
        Energy is a national security issue and can be, and is, used as a
    geostrategic weapon. Even with domestic oil production up, imports
    declining, and new oil and gas reserves being discovered, energy is
    still a security concern and military vulnerability. One reason for
    this is that oil is the ultimate global commodity, often traded on
    speculation and rumor. In the aftermath of the chemical weapons attack
    in Syria, oil prices surged to over $107 per barrel and remained there
    for weeks, in what oil traders call a ``security premium.'' This same
    scenario plays out, such as during the crises in Egypt and Libya, and
    every time instability arises. Each $1 increase in the price of a
    barrel of oil results in a $30 million bill for the Navy and Marine
    Corps. This has huge implications across the Department of Defense and
    for our security. DOD is the largest single institutional consumer of
    fossil fuels on earth and budgets about $15 billion each year on fuel.
    But in fiscal years 2011 and 2012 price spikes added another $3 billion
    to the DOD fuel bill. The potential bills from that ``security
    premium'' can mean that we will have fewer resources for maintenance
    and training. But more importantly, the cost of meeting our high fuel
    demand can also be measured in the lives of Marines killed or wounded
    guarding fuel convoys. During the height of operations in Afghanistan,
    we were losing one Marine, killed or wounded, for every 50 convoys
    transporting fuel into theater. That is far too high a price to pay.
        In 2009, I announced five energy goals for the Department of the
    Navy in order to improve our energy security, increase our strategic
    independence, and improve our warfighting capabilities. The topline
    goal commits the Department of the Navy to generate one-half of its
    energy needs from non-fossil fueled sources by 2020. We are making real
    progress toward that goal through greater energy efficiency and
    alternative fuel initiatives. Burning cleaner fuel, or burning less
    fuel, is better for the environment but that is not our primary
    incentive. We're pursuing these alternatives because they can make us
    better warfighters.
        Under a Presidential Directive, the Department of the Navy is
    working with the Departments of Energy and Agriculture to help promote
    a national biofuel industry. This past year, under the authority in
    Title III of the Defense Production Act (DPA), we took an important
    step forward, with a DOD DPA award to four companies which committed to
    produce 160 million gallons of drop-in, military-compatible biofuels
    each year at an average price of well below $4 per gallon, a price that
    is competitive with what we are paying today for conventional fuels.
    DOD policy and my prior commitment has been that we will only buy
    operational quantities of biofuels when they are cost competitive. This
    initiative moves us far down that road. At full production, biofuels
    combined with conventional fuel at a 50/50 blend hold the promise of
    being able to cost-effectively provide our fleet with much of its
    annual fuel demand, providing real competition in the liquid fuels
    market.
        We also continue to develop our energy efficiency through research
    and development of more efficient propulsion systems, shore-based power
    management and smart-grid technology, and conservation measures. For
    example, in the past year the Naval Facilities Engineering Command's
    Engineering and Expeditionary Warfare Center provided technology
    demonstrators at Camp Lemonnier, Djibouti which reduced fuel
    consumption 9 percent base wide, even with a 3-percent increase in
    energy demand because of an increased population. At Joint Base Pearl
    Harbor Hickam a $2.2 million contract for the Daylight Project was
    awarded, which will use sunlight to light warehouse spaces and utilize
    photo sensors to automatically turn off lights when daylight levels are
    sufficient. In aggregate, fiscal year 2013 energy programs in Hawaii
    are projected to save the Government $4.7 million a year. The Marine
    Corps' development of expeditionary power solutions, through the
    Experimental Forward Operating Bases or ExFOB, has made them better
    warriors who are lighter and more agile in the face of today's global
    threats.
        The Navy has a long and successful history of partnering with
    industry to promote business sectors and products important to our
    Nation's military and economic security. From the development of the
    American steel industry to nuclear power, the Navy has helped the
    country develop economically while helping Sailors benefit from the
    cutting edge of technology to defend our Nation. These programs are
    about diversifying fuel supplies, stabilizing fuel costs and reducing
    overall energy needs. In achieving these energy goals, we will maximize
    our reach and maintain our global presence and make our Navy and Marine
    Corps more combat capable.
                    partnerships--the global maritime world
        For the last seven decades American naval forces have deployed
    around the world to be, as President Obama said this past year, the
    anchor of global security. We operate and exercise alongside our
    friends and partners around the world, to maintain the stability of the
    global maritime commons. We work to uphold the key principles of free
    trade in free markets based on freedom of navigation, which underwrites
    the unprecedented growth of the global economy.
        In times of economic uncertainty it is more critical than ever to
    protect the stability of the global system. As 90 percent of worldwide
    trade moves at sea, this system, and the sophisticated set of
    international rules and treaties on which it is based, has become
    central to our global marketplace. However the efficiency and intricate
    interdependencies of a ``just in time'' economy place the system at
    risk from the destabilizing influences of rogue nations, non-state
    actors, and regional conflicts.
        The Navy and Marine Corps, by nature of their forward presence and
    the boundless quality of the world's oceans, are naturally suited to
    develop relationships, particularly in the innovative, small footprint
    ways the updated Defense Strategic Guidance and QDR require. Helping
    international partners increase their abilities and become more
    interoperable with us helps us all. Allies and partners around the
    world recognize that our combined naval forces offer a unique and
    critical capability. As an Asian Ambassador to the United States
    recently remarked to me, the competing claims in the Pacific today have
    reminded some of our friends of the vital role U.S. naval forces play
    in global stability.
        Providing security for free trade and freedom of navigation across
    the maritime domain requires more capacity than any single nation can
    muster. The United States Navy plays a principal role in maintaining
    the freedom of the seas, but it cannot play an exclusive role.
    Partnerships between like-minded nations, collaborating to ensure
    security and safety at sea, distribute the burden based on alliances,
    shared values and mutual trust.
        A recent Naval History and Heritage Command study titled ``You
    Cannot Surge Trust'' has reinforced the fact that partnership and trust
    do not appear overnight. Naval operations, in peace and war, are
    fundamentally human endeavors. Operational success is based as much, or
    more, on professional norms, personal relationships and human
    decisionmaking as on technology or hardware. Partnerships are a
    critical naval endeavor.
        In the past year, we continued to develop the strength of our
    partnerships across the globe. Engagement between the leaders of the
    world's naval forces is a critical component of building those human
    connections. Because of this, our senior uniformed leaders and I have
    traveled extensively to meet and consult with our peers.
        Many nations have a longstanding territorial view inward, which
    caused them to focus overwhelmingly on land forces in the past. But in
    today's globalized world they recognize that they now have to face
    outward. They are looking to the U.S. Navy and Marine Corps for advice
    and assistance as they make that shift. Other nations are already
    maritime focused, and look to develop the ability to train, exercise,
    and operate together effectively to forward our shared goals. Through
    our meetings between senior leaders and exercises with our allies,
    partners, and friends we are building the international relationships,
    trust, and inter-operability which are vital to protecting our common
    interests in a globalized world.
        In 2013 we conducted the largest exercise of the year in the
    Arabian Gulf, the International Mine Countermeasures Exercise (IMCMEX).
    With representatives from 41 countries, including 6,600 sailors on 35
    ships, the world's navies cooperated to help promote regional stability
    and address the global challenge of mine warfare. Also this past year,
    Expeditionary Strike Group 3 and the 1st Marine Expeditionary Brigade
    conducted the multilateral amphibious exercise Dawn Blitz. Alongside
    amphibious units from Canada, New Zealand, and Japan, and observers
    from Australia, Chile, Colombia, Israel, Mexico, Peru and Singapore,
    the exercise helped increase our core amphibious capabilities, while
    also strengthening our partnership and interoperability. As I mentioned
    earlier our partners in Singapore hosted the first forward stationing
    of the Littoral Combat Ship USS Freedom. The ship conducted numerous
    exercises with our friends in Southeast Asia, expanding the number of
    ports we can visit and work from in the littorals.
        Some of our exercises are smaller and more focused, like Obangame
    Express 2013 which occurred this past spring in the Gulf of Guinea. It
    concentrated on developing the maritime security and patrol
    capabilities of local forces in West and Central Africa that have seen
    increasing armed robbery at sea, piracy, smuggling and other maritime
    crimes. In part of this exercise a team of U.S. Sailors who specialize
    in maritime security missions worked on board the Belgian Naval Ship
    Godetia with our European allies, to train African sailors in the
    tactics for boarding and inspecting ships.
        These are just a few examples of literally hundreds of operations,
    engagements, and exercises that the Navy and Marine Corps participated
    in during the past year. However, we also had a challenge in 2013 when
    it came to funding our operational, partnership and theater security
    cooperation missions. The Navy was forced to cancel or defer ship
    deployments supporting counter-narcotics missions in the Southern
    Command area of operations. Some exercises, including some in support
    of the Southern Partnership Station in Central and South America, had
    to be scaled back significantly because the sequester level funds did
    not provide us with the operating budget we needed to complete the
    missions. Future funding at sequester levels is likely to force us to
    continue to limit and prioritize our critical partnership building
    operations.
        But our partnerships mean a great deal more than our alliances and
    friendships around the world. The Navy and Marine Corps also have
    critical relationships with industry and with the American people. Our
    Nation's defense industrial workers are skilled, experienced, and
    innovative and can't be easily replaced. We must provide stability and
    predictability to the industrial base to maintain our ability to build
    the future fleet and keep our technological advantage. One of the
    strengths of our system is the teamwork of our uniformed warfighters,
    our Navy and Marine Corps civilians, the leadership team in Washington,
    and our industry partners.
        Recently, the Chief of a Navy in the Asia-Pacific region reminded
    me of a fundamental difference between land forces and naval forces.
    Land forces, he said, look down at a map. They look at borders and
    lines and limitations. Naval forces look out toward the vast horizon
    and they look to the future. Sailors and Marines are a unique breed.
    When they join the sea services they accept the challenge of the
    unknown with an adventurous spirit and an open mind. That is part of
    why the Navy and Marine Corps are naturally inclined toward
    partnership, and have been throughout our history, from operating with
    the Royal Navy to fight the slave trade in the 19th century to modern
    coalition operations in the Pacific and the Arabian Gulf. That same
    spirit which causes us to look for what comes next also causes us to
    look for new and innovative solutions, and new friends to help us
    across the globe.
                       fiscal year 2015 budget submission
        The Department of the Navy's fiscal year 2015 budget request is
    designed to meet the updated Defense Strategic Guidance, and is
    informed by the 2014 Quadrennial Defense Review. It meets the
    objectives the strategy laid out, but our fiscal limits force us to
    accept a certain amount of risk in some mission areas. The Navy and
    Marine Corps continue to focus on planning for the 21st century
    including preparing for the anti-access, area-denial challenge,
    sustaining our global capability by increasing forward stationing and
    implementing new deployment models, and sustaining the All-Volunteer
    Force. Based on our strategic outlook we have had to make tough
    choices, and look to fund the most critical afloat and ashore readiness
    requirements, continue to provide sovereign sea-based options for the
    Commander-in-Chief, and to sustain our vital industrial base.
        The President's budget for fiscal year 2015 (PB-15) continues to
    build the fleet of more than 300 ships we will have by the end of this
    decade. This fleet will include established and proven platforms which
    we are currently deploying, next generation platforms, and new advanced
    weapons, sensors, and payloads. Guided by operational concepts like Air
    Sea Battle, the experiences of more than 10 years of war, and the
    lessons from our war-gaming and studies, the Navy and Marine Corps of
    2020 will be able to continue to project power and to maintain
    stability in the global commons.
        Supporting our Sailors and Marines is a vital part of our budget
    request. We have increased spending on high priority Quality of Service
    programs, including increased career sea pay to help incentivize sea
    duty. We have also modestly increased spending on Quality of Life
    programs including on-base housing. But these initiatives must be
    balanced to ensure our Sailors and Marines have the resources and
    equipment they need to complete the mission. Across the Future Years
    Defense Plan (FYDP) we will add funds to improve Quality of Work issues
    like training support and improving the availability of spare parts so
    our Sailors and Marines remain the most knowledgeable in the world and
    have the tools they need to do their jobs. We protect programs that
    support our Sailors or Marines when they need help. This includes
    sexual assault incident response and training, suicide prevention, and
    family support programs. We remain committed to our military-to-
    civilian transition assistance and work to ensure that our veteran
    employment programs offer the best opportunities to capitalized on the
    knowledge and skills of transitioning Sailors and Marines.
        Maintaining undersea dominance is vital to the U.S. Navy. The
    development of the Virginia Payload Module (VPM) will be critical when
    our guided missile submarines (SSGNs) begin to retire in 2026. We must
    develop the VPM by funding R&D through fiscal year 2018, so that we can
    introduce the modules into the very successful Virginia-class
    submarines, thus assuring that we will not lose capability as the SSGNs
    retire. This budget also funds the development of improved sonar
    processors, improved sonobuoys, and improved torpedoes to help ensure
    that we maintain our core undersea advantage.
        Continued production of proven platforms for the fleet is a key
    element in this budget and across the FYDP. We will continue to build
    two Virginia-class submarines and two Arleigh Burke-class destroyers
    per year in order to help increase the size of the fleet and replace
    older ships as they retire. In fiscal year 2015 we will purchase 29 MH-
    60R and 8 MH-60S helicopters, completing the upgrade of our tactical
    helicopter force which has been underway for the past decade. We will
    also continue the procurement of the next generation E-2D airborne
    early warning aircraft and of the MV-22B for the Marine Corps. These
    established and world leading platforms provide the foundation of the
    future fleet.
        This budget also procures new and advanced platforms that will take
    our fleet into the future. We will build LCSs and AFSB, and continue to
    introduce Joint High Speed Vessels (JHSV) and MLPs to the fleet. This
    will provide modular and mission focused capabilities around the world,
    while helping to meet the presence requirements of the fleet. In
    aviation we will continue production of the new P-8 Poseidon maritime
    patrol aircraft across the FYDP, deploying new squadrons, as well as
    the F-35 Lightning II for both the Navy and Marine Corps. We will
    continue the introduction of the next generation SM-6 Standard Missile
    to our Aegis capable ships, and fund the R&D for the Long Range Anti-
    Ship Missile (LRASM) which is vital for our future surface combatants.
    However, it is important to point out that given the reality of the $38
    billion reduction from the President's budget fiscal year 2014 (PB-14)
    to PB-15, many of these purchases will be made at reduced rates. PB-15
    buys 111 fewer aircraft and over 5,000 fewer weapons across the FYDP
    than the PB-14 program. This is part of the increased risk that we have
    had to accept.
        Unmanned platforms and systems will be an important part of the
    future Navy and Marine Corps and our budget carries on with R&D and
    production of these critical platforms. The MQ-4 Triton will complete
    its testing phase during this budget, and we will begin production for
    the fleet across the rest of the FYDP. The R&D for UCLASS also
    continues in fiscal year 2015, and throughout the FYDP. Developing
    these aircraft is vital to the future of the carrier air-wing. Unmanned
    Undersea Vehicles (UUVs) will be central to our mine-warfare
    capabilities and maintaining undersea dominance. This budget includes
    R&D for multiple systems, as well as deployment of the Mk 18 Kingfisher
    UUV for counter-mine missions. Across the entire spectrum of military
    operations, an integrated force of manned and unmanned platforms is the
    future.
        We will continue to fund our energy programs with this budget by
    moving forward with the biofuels program under the DPA, as well as
    continuing our sea and shore based efficiency programs. This budget
    includes $776 million in tactical and ashore energy programs in fiscal
    year 2015, and $3.8 billion across the FYDP. Our ashore initiatives,
    including appropriated funds and third party investments, of $570
    million in fiscal year 2015 are projected to generate annual savings of
    over $100 million, starting in fiscal year 2017, due to efficiencies.
    Investments in tactical programs help increase our on station time for
    ships, reduce need for resupply, and increase the amount of time our
    Marine Corps units can stay in the field, making us more capable
    militarily. Continuing to work toward the Department's energy goals
    will allow us to lessen the impact of price volatility in the energy
    market and make us better warfighters.
        This budget includes funds to maintain our presence in the Middle
    East, and advance our capabilities there. Funding for the continued
    deployment of the Interim-AFSB USS Ponce, improved manning for our
    mine-countermeasures ships, and the introduction of new capabilities,
    are important parts of this effort. The new weapons and systems, like
    the Laser Weapon System (LaWS) aboard Ponce, the Advanced Precision
    Kill Weapon System (APKWS) guided rockets for our MH-60 helicopters,
    and the Sea Fox UUV mine neutralization system, will help our Sailors
    and Marines maintain their edge in the Arabian Gulf and beyond. We are
    also funding the forward stationing of ten Coastal Patrol ships (PCs)
    to Bahrain which will increase their availability to the combatant
    commander and increased presence in the shallow waters of the region.
        PB-15 also represents the platforms and payloads necessary for
    increasing operations in the Asia-Pacific region as we continue to
    support the rebalance toward Asia. This budget sustains the operations
    of our LCSs in Singapore, which includes early investment for the
    rotational deployment of up to four LCSs by 2017. Exercises in the
    Pacific, like our CARAT and Pacific Partnership missions, will be
    funded to ensure that we maintain our partnerships in the region. We
    also continue to support the growth in the number of Marines who are
    rotating through Darwin, Australia. This year we are expanding from a
    Company sized unit to a Battalion, and in the coming years we will
    continue to expand to a Marine Air Ground Task Force (MAGTF).
        In our fiscal year 2015 budget we include funding to support the
    movement of more of our ships and units forward as the most effective
    and cost-efficient means of maintaining our global presence. Forward
    based, stationed, or operating ships all provide presence at a
    significantly lower cost since one ship that operates continuously
    overseas provides the same presence as about four ships deploying
    rotationally from homeports in the United States. Besides the PCs to
    Bahrain and the LCSs to Singapore, we continue to fund the forward
    basing of four BMD capable DDGs to Rota, Spain. As the DDGs from Rota
    patrol European and African waters, we free other ships to deploy
    elsewhere. This year we will also begin moving JHSVs forward and
    prepare for the fleet introduction of the MLPs and AFSBs. We will
    continue the operations of, and expand the size of, the Marine Corps'
    new Special Purpose MAGTF-Crisis Response operating out of Moron,
    Spain.
        It is our duty to spend the tax-payers' dollars wisely, and it is a
    duty that we take very seriously in the Department of the Navy. We
    continue to look at contractual services spending for efficiencies,
    with conscious decisions made to challenge requirements through
    mechanisms such as ``contract courts,'' requiring annual justification
    of contracts. We are willing to accept higher levels of risk in some
    areas of services spending before sacrifices are made in force
    structure, modernization, or readiness. I have also ordered the Deputy
    Under Secretary of the Navy/Deputy Chief Management Officer to begin a
    comprehensive assessment of the business challenges facing the Navy and
    Marine Corps.
        The fiscal year 2015 budget request for the Navy and Marine Corps
    gives us what we need to accomplish the missions assigned in the new
    Quadrennial Defense Review and updated Defense Strategic Guidance.
    However, the funding levels allowed under the Bipartisan Budget Act
    mean that we have to accept higher levels of risk for some of those
    missions. If the Nation is confronted with a technologically advanced
    challenger, or more than one major contingency operation at a time,
    those risks would increase further. We face readiness challenges that
    are a result of sequester induced shortfalls, continuing fiscal
    constraints, and the high demand for naval forces globally.
                                   conclusion
        This year we commemorate the 150th anniversary of the Battle of
    Mobile Bay. A century and a half ago our Nation was engulfed in the
    Civil War. A Task Force under the command of Admiral David Farragut,
    one of our Navy's greatest heroes, attacked the ships and forts that
    defended the port at Mobile, Alabama. Facing down Confederate Ironclads
    and a treacherous minefield in the shallow, enclosed waters, he issued
    his famous order, ``Damn the Torpedoes, full speed ahead.'' Lashed high
    in the rigging of his flagship he led the attack from the front of the
    formation to capture the last major Confederate port on the Gulf Coast.
        From the halls of Montezuma to Point Luck and the waters around
    Midway, our Sailors and Marines have demonstrate that kind of
    dedication and daring time and again. They, and our Navy and Marine
    Corps civilians, continue in that spirit today whether facing combat in
    Afghanistan, dangerous operations at sea, or the challenges created by
    the past year of budget instability. The budget request that we are
    making for fiscal year 2015, the specific details of which are included
    in the President's fiscal year 2015 budget submission, will provide
    them with the equipment, training, and resources they need to continue
    their efforts in support of our Nation's security. As our founding
    fathers outlined over two centuries ago, it is our responsibility to
    ensure that we maintain our Navy and Marine Corps.
        Today we face a dangerous and challenging world. Rising powers and
    maritime territorial conflicts threaten freedom of navigation and the
    free trade of today's global economic system. Terrorist organizations
    continue to proliferate around the world. Political instability
    threatens to break into violence in numerous regions. The Navy and
    Marine Corps are our Nation's insurance policy. Our People, Platforms,
    Power and Partnerships must be efficiently developed and appropriately
    funded to ensure our ability to provide the President with the options
    required and the American people with the security they deserve.
        For 238 years our Sailors and Marines have been there when the
    Nation called and we must endeavor to ensure that we are there for the
    future. Difficult times pose difficult questions, and the Commandant,
    CNO and I look forward to answering yours. The continued support of
    this committee is essential in ensuring the Navy and Marine Corps team
    has the resources it needs to defend our Nation now and in the future.
    As President Woodrow Wilson once said, ``A powerful Navy, we have
    always regarded as our proper and natural means of defense.''

        Senator Durbin. Thank you, Mr. Secretary.
        Admiral Greenert.
    STATEMENT OF ADMIRAL JONATHAN GREENERT, CHIEF OF NAVAL
                OPERATIONS, UNITED STATES NAVY
        Admiral Greenert. Thank you, Chairman Durbin, Vice Chairman
    Cochran, Chairwoman Mikulski, and distinguished members of the
    committee.
        I am proud to represent 633,000 sailors, Navy civilians,
    and their families, especially the 50,000 sailors deployed and
    operating forward around the globe today. The dedication and
    resilience of our people continue to amaze me, Mr. Chairman.
    And the citizens of this Nation can take pride in the daily
    contributions of their sons and daughters in places that count.
        I, too, offer my condolences to the family, friends, and
    shipmates of the sailor killed in Monday's shooting. Sailors of
    the USS Mahan and the Norfolk Naval Station family are in our
    thoughts and prayers. Also, our thoughts and prayers go out to
    the families of the deceased and those that are missing in the
    Washington State mudslide. We have shipmates and families there
    affected as well. And it has been a tough year at the Naval
    Academy. This will be our second loss for midshipmen, and we go
    out to that family. They are our shipmates as well, sir.
        I am pleased to appear this morning beside Secretary Mabus
    and General Amos. Your Navy-Marine Corps team is united in
    fulfilling our longstanding mandate to be where it matters,
    when it matters, and to be ready to respond to crises to ensure
    the stability that underpins the global economy.
        General Amos has been a great shipmate. Our synergy of
    effort of our two services has never been better, and I am
    committed to continuing that momentum.
        Secretary Mabus has provided us the vision, the guidance,
    and the judiciousness to build the finest Navy and Marine Corps
    that this Nation is willing to afford.
        Forward-presence is our mandate. We operate forward to give
    the President options to deal promptly with contingencies. As
    we conclude over a decade of wars and bring our ground forces
    home from extended stability operations, your naval forces are
    going to remain on watch.
        The chartlet in front of you, the one that says, ``Navy
    Today,'' shows today's global distribution of the deployed
    forces, as well as our bases and places that support those
    forces forward.
        [The chart follows:]

        [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                  Figure 1: The Navy's Forward Presence Today.

        Our efforts are focused in the Asia-Pacific and the Arabian
    Gulf, but we provide presence, and we respond as needed, in
    other theaters as well.
        Now with this forward-presence, over the last year, we were
    able to influence and shape the decisions of leaders in the
    Arabian Gulf, Northeast Asia, and the Levant. We patrolled off
    the shores of Libya, Egypt, and Sudan to protect American
    interests and to induce regional leaders to make the right
    choices.
        We relieved suffering and provided assistance and recovery
    in the Philippines in the wake of a devastating typhoon.
        Our presence dissuades aggression and coercion against our
    allies and friends in the East and the South China Seas.
        We kept piracy at bay in the Horn of Africa, and we
    continue to support operations in Afghanistan while taking the
    fight to insurgents, terrorists, and their supporting networks
    across the Middle East and Africa with our expeditionary forces
    and supporting special operations forces as well.
        The fiscal year 2014 budget will enable an acceptable
    forward-presence. Through the remainder of fiscal year 2014, we
    will be able to restore fleet training, maintenance and
    operations, and recover a substantial part of the fiscal year
    2013 backlog. And I thank the committee for their support in
    that regard.
        The President's 2015 budget submission enables us to
    continue to execute these missions, but we will face high risk
    in specific missions articulated in the defense strategic
    guidance.
        Our fiscal guidance through the FYDP (Future Years Defense
    Plan), for the President's budget 2015, is about halfway
    between the BCA caps and our President's budget 2014 plan. So
    it is still a net decrease of $31 billion when you compare it
    with President's budget 2014.
        To prepare our program within these constraints, I set the
    following six priorities: Number one, provide the sea-based
    strategic deterrent; number two, forward-presence: three,
    capability and the capacity to win decisively; four, readiness;
    five, asymmetric capabilities and maintaining our technological
    edge where it matters; and number six, sustaining a relevant
    industrial base.
        Using these priorities, we build a balanced portfolio of
    capabilities within the fiscal guidance we were provided. We
    continue to maximize our presence in the Asia-Pacific and the
    Middle East using innovative combinations of rotational,
    forward-basing, and forward-stationing of forces.
        We still face shortfalls in support ashore with a backlog
    of facilities and maintenance that erode the ability of our
    bases to support the fleet.
        We have slowed modernization in areas that are central to
    remain ahead of, or keep pace with, technologically advanced
    adversaries. So consequently, we face higher risk if we are
    confronted with a high-tech adversary, or if we attempt to
    conduct more than one multiphased major contingency
    simultaneously.
        Mr. Chairman, I am troubled by the prospect of reverting
    back to the BCA revised caps in 2016. That would lead to a navy
    that is just too small and lacking in the advanced capabilities
    that we need to execute the missions that the Nation expects of
    our Navy.
        We would be unable to execute at least 4 of the 10 primary
    missions articulated in the Defense Strategic Guidance in the
    Quadrennial Defense Review.
        Looking back at the chartlet, that is the back of the
    chartlet that had ``Navy Today,'' we laid out for you and
    provided our ability to respond to contingencies.
        [The chart follows:]

        [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

      Figure 2: Navy'S Projected Forward Presence in Fiscal Year 2015 and
                                Fiscal Year 2020

        And you can see it would be dramatically reduced, limiting
    our options and decision space, and we would be compelled to
    inactivate an aircraft carrier and an air wing.
        Further, you can see our modernization and recapitalization
    will be dramatically reduced--you can see the Xs through the
    icons there--threatening readiness in our industrial base.
        Reverting to BCA caps year by year will leave our country
    less prepared to deal with crises. Our allies' trust will wane,
    and our enemies will be less inclined to be dissuaded or to be
    deterred.

                               PREPARED STATEMENT

        So, Mr. Chairman, I remain on board with the efforts to get
    the fiscal house in order. I look forward to working with this
    committee to find solutions that enable us to sustain readiness
    while building an affordable, but a relevant, future force. The
    force has to be able to address a range of threats,
    contingencies, and high-consequence events that could impact
    our core interests.
        I appreciate the opportunity to testify today, and I thank
    the committee for their previous support and their continued
    support for the Navy and families.
        I look forward to your questions.
        [The statement follows:]
                Prepared Statement of Admiral Jonathan Greenert
        Chairman Durbin, Senator Cochran, and distinguished members of the
    committee: I am honored to represent more than 600,000 active and
    reserve Sailors, Navy Civilians, and their Families, especially the
    48,000 Sailors who are underway on ships and submarines and deployed in
    expeditionary roles, around the globe today.
        As the chartlet below shows, 104 ships (36 percent of the Navy) are
    deployed around the globe protecting the Nation's interests. This is
    our mandate: To be where it matters, when it matters.

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                  Figure 1: The Navy's Forward Presence Today.

        I would like to begin this statement by describing for you the
    guidance that shaped our decisions within the President's budget for
    fiscal year 2015 (PB-15) submission. I will address the Navy's
    situation following the budget uncertainty in fiscal year 2013, the
    Bipartisan Budget Act of 2013 (BBA), and the National Defense
    Authorization Act (NDAA) for fiscal year 2014. Then, I will provide
    details of our PB-15 submission.
                               strategic guidance
        The governing document for PB-15 is the 2014 Quadrennial Defense
    Review (QDR). The QDR uses the 2012 Defense Strategic Guidance (DSG) as
    a foundation and builds on it to describe the Department of Defense's
    role in protecting and advancing U.S. interests and sustaining American
    leadership. The DSG and its 10 Primary Missions of the U.S. Armed
    Forces have guided Navy's planning for the past 2 years. Validated by
    the QDR, those missions remain the baseline against which I measure our
    posture in various fiscal scenarios. Also, 2020 is the benchmark year
    identified by the DSG, and that remains the timeframe on which my
    assessments are focused.
        The QDR's updated strategy is built on three pillars: Protect the
    Homeland, Build Security Globally, and Project Power and Win
    Decisively. In support of these, it requires the Navy to ``continue to
    build a future fleet that is able to deliver the required presence and
    capabilities and address the most important warfighting scenarios.''
        In order to improve its ability to meet the Nation's security needs
    in a time of increased fiscal constraint, the QDR also calls for the
    Joint Force to ``rebalance'' in four key areas: (1) rebalancing for a
    broad spectrum of conflict; (2) rebalancing and sustaining our presence
    and posture abroad; (3) rebalancing capability, capacity, and readiness
    within the Joint Force; and (4) rebalancing tooth and tail. To satisfy
    these mandates of the QDR strategy, the Navy has been compelled to make
    tough choices between capability and capacity, cost and risk, and to do
    so across a wide range of competing priorities. Our fundamental
    approach to these choices has not changed since I assumed this
    position. We continue to view each decision through the lens of the
    tenets I established when I took office: Warfighting First, Operate
    Forward, Be Ready.
                                    overview
        When I appeared before the Senate Armed Services Committee in
    November 2013, I testified that adherence to the Budget Control Act of
    2011 (BCA) revised discretionary caps, over the long term, would result
    in a smaller and less capable Navy. That Navy would leave us with
    insufficient capability and capacity to execute at least 4 of the 10
    primary missions required by the DSG.
        Passage of the BBA and the topline it sets for fiscal year 2015,
    together with the fiscal guidance provided for this submission provide
    a level of funding for the Navy that is $36 billion above the estimated
    BCA revised discretionary caps across the fiscal year 2015 to fiscal
    year 2019 Future Years Defense Plan (FYDP). That funding level is still
    $31 billion below the level planned for in our PB-14 submission.
    Accordingly, the Navy PB-15 program reduces risk in most DSG primary
    missions when compared to a BCA cap scenario, but we still face higher
    risk in at least two primary missions compared to PB-14. This high risk
    is most likely to manifest if we are faced with a technologically
    advanced adversary, or if we attempt to conduct more than one
    multiphased major contingency simultaneously.
        In the PB-15 submission, we assess that the Navy of 2020 will:
      --Include 308 ships in the Battle Force,\1\ of which about 123 will
            be deployed. This global deployed presence will include more
            than two carrier strike groups (CSG) and two amphibious ready
            groups (ARG) deployed, on average. It is similar to the
            presence provided by PB-14.
    ---------------------------------------------------------------------------
        \1\ It should be noted that the Department of the Navy revised
    guidelines for accounting for the size of the Navy's Battle Force.
    Therefore, numbers in this statement are not directly comparable to
    those used in prior testimony. Changes to guidelines include clarifying
    the accounting for smaller, forward deployed ships (e.g. patrol
    coastal, mine countermeasures ships, high speed transports) and ships
    routinely requested by Combatant Commanders (e.g., hospital ships). The
    following illustrates the differences between new and old Battle Force
    accounting guidelines: PB-15 New Guidelines--Today: 290; Fiscal year
    2015: 284; Fiscal year 2020: 308. PB-15 Old Guidelines--Today: 284;
    Fiscal year 2015: 274; Fiscal year 2020: 302.

    ----------------------------------------------------------------------------------------------------------------
                                                                                 Fiscal year  Fiscal year
                                                                       Today         2015         2020
    -----------------------------------------------------------------------------------------------------
    PB-15: New Guidelines.........................................          290          284          308
    PB-15: Old Guidelines.........................................          284          274          302
    ----------------------------------------------------------------------------------------------------------------

     deg.  --Provide ``surge'' capacity of about three CSG and three ARG,
            not deployed, but ready to respond to a contingency.
      --Deliver ready forces to conduct the DSG primary mission Deter and
            Defeat Aggression, but with less margin for error or ability to
            respond to unforeseen or emergent circumstances, compared to
            PB-14.
      --Conduct, but with greater risk, the DSG primary mission Project
            Power Despite Anti-Access/Area Denial (A2/AD) Challenges
            against a technologically advanced adversary compared to PB-14.
            This is principally due to slower delivery of new critical
            capabilities, particularly in air and missile defense, and
            overall ordnance capacity.
      --Provide increased ship presence in the Asia-Pacific region of about
            67 ships, up from about 50 on average today; presence in the
            Middle East will likewise increase from about 30 ships on
            average today to about 41 in 2020. These are both similar to
            the levels provided by PB-14.
        In order to ensure the Navy remains a balanced and ready force
    while complying with the reduction in funding below our PB-14 plan, we
    were compelled to make difficult choices in PB-15, including slowing
    cost growth in compensation and benefits, maintaining the option to
    refuel or inactivate one nuclear aircraft carrier (CVN) and a carrier
    air wing (CVW), inducting 11 guided missile cruisers (CG) and three
    dock landing ships (LSD) into a phased modernization period, canceling
    procurement of 79 aircraft, canceling 3,500 planned weapons
    procurements, and reducing funding for base facilities sustainment,
    restoration, and modernization.
        Additional challenges are on the horizon. In the long term beyond
    2019 (the end of the PB-15 FYDP), I am increasingly concerned about our
    ability to fund the Ohio Replacement ballistic missile submarine (SSBN)
    program--our highest priority program--within our current and projected
    resources. The Navy cannot procure the Ohio Replacement in the 2020s
    within historical shipbuilding funding levels without severely
    impacting other Navy programs.
                               where we are today
        Before describing our fiscal year 2015 submission in detail, I will
    discuss the Navy's current posture, which established the baseline for
    our PB-15 submission.
        The impact of the continuing resolution and sequestration
    reductions in fiscal year 2013 compelled us to reduce afloat and shore
    operations, which created an afloat and shore maintenance and training
    backlog. We were able to mitigate some of the effects of this backlog
    through reprogramming funds in fiscal year 2013 and Congressional
    action in fiscal year 2014 to restore some funding. Impact to Navy
    programs, caused by the combination of sequestration and a continuing
    resolution in fiscal year 2013 included:
      --Cancellation of five ship deployments and delay of a carrier strike
            group (CSG) deployment.
      --Inactivation, instead of repair, of USS Miami beginning in
            September 2013.
      --Reduction of facilities sustainment by about 30 percent (to about
            57 percent of the requirement).
      --Reduction of base operations, including port and airfield
            operations, by about 8 percent (to about 90 percent of the
            requirement).
      --Furlough of civilian employees for 6 days.
        Shortfalls caused by fiscal year 2013 sequestration still remain in
    a number of areas. Shipbuilding programs experienced $1 billion in
    shortfalls in fiscal year 2013, which were partially mitigated with
    support from Congress to reprogram funds and by fiscal year 2014
    appropriations. PB-15 requests funding to remedy the remaining $515
    million in shipbuilding shortfalls. Funding to mitigate (but not enough
    to completely reconcile) other carryover shortfalls that remain in
    areas such as facilities maintenance, fleet spares, aviation depots,
    and weapons maintenance is requested in the Opportunity, Growth and
    Security (OGS) Initiative submitted to Congress with PB-15.
        In fiscal year 2014, Congress's passage of the BBA and subsequent
    appropriations averted about $9 billion of the estimated $14 billion
    reduction we would have faced under sequestration. As a result:
      --We are able to fully fund our fiscal year 2014 shipbuilding plan of
            eight ships.
      --We are able to protect research, development, testing, and
            evaluation (RDT&E) funding to keep the Ohio Replacement
            Program--our top priority program--on track.
      --We are able to fund all Navy aircraft planned for procurement in
            fiscal year 2014.
        In our readiness programs, $39 billion of the $40 billion
    requirement was funded, enabling us to:
      --Fund all ship maintenance.
      --Fund all required aviation depot maintenance.
      --Fully fund ship and aircraft operations.
        The remaining $5 billion shortfall below our PB-14 request includes
    about $1 billion in operations and maintenance accounts and about $4
    billion in investment accounts. To deal with this shortfall, in the
    area of operations and maintenance we are aggressively pursuing
    contracting efficiencies in: Facilities sustainment projects, aviation
    logistics, and ship maintenance. To address the remaining investment
    shortages, we are compelled to reduce procurement of weapons and spare
    parts, to extend timelines for research and development projects, and
    to defer procurement of support equipment for the fleet.
                         our strategic approach: pb-15
        In developing our PB-15 submission, we evaluated the warfighting
    requirements to execute the primary missions of the DSG. These were
    informed by current and projected threats, global presence requirements
    defined by the Global Force Management Allocation Plan (GFMAP), and
    warfighting scenarios described in the Combatant Commanders'
    operational plans and Secretary of Defense-approved Defense Planning
    Scenarios (DPS). To arrive at a balanced program within fiscal
    guidance, we focused first on building appropriate capability, then
    delivering it at a capacity we could afford. Six programmatic
    priorities guided us:
        First, maintain a credible, modern, and survivable sea-based
    strategic deterrent. Under the New START Treaty (New Strategic Arms
    Reduction Treaty), the Navy SSBN force will carry about 70 percent of
    the U.S. accountable deployed strategic nuclear warheads by 2020. Our
    PB-15 request sustains today's 14-ship SSBN force, the Trident D5
    ballistic missile and support systems, and the Nuclear Command,
    Control, and Communications (NC3) system. The Ohio-class SSBN will
    retire, one per year, beginning in 2027. To continue to meet U.S.
    Strategic Command presence and surge requirements, PB-15 starts
    construction of the first Ohio Replacement SSBN in 2021 for delivery in
    2028 and first deterrent patrol in 2031.
        Second, sustain forward presence of ready forces distributed
    globally to be where it matters, when it matters. We will utilize cost-
    effective approaches such as forward basing, forward operating, and
    forward stationing ships in the Asia-Pacific, Europe, and the Middle
    East. Rotational deployments will be stabilized and more predictable
    through implementation of an improved deployment framework we call the
    Optimized Fleet Response Plan (O-FRP). We will distribute our ships to
    align mission and capabilities to global region, ensuring high-end
    combatants are allocated where their unique capabilities are needed
    most. We will meet the adjudicated fiscal year 2015 Global Force
    Management Allocation Plan (GFMAP); however, this represents only 44
    percent of the global Geographic Combatant Commander (GCC) requests.
    Sourcing all GCC requests would require about 450 combatant ships with
    requisite supporting structure and readiness.
        Third, preserve the means (capability and capacity) to both win
    decisively in one multiphase contingency operation and deny the
    objectives of--or impose unacceptable costs on--another aggressor in
    another region. In the context of relevant warfighting scenarios, we
    assessed our ability to provide more than 50 end-to-end capabilities,
    also known as ``kill chains'' or ``effects chains.'' Each chain
    identifies all elements needed to provide a whole capability, including
    sensors, communications and networks, operators, platforms, and
    weapons. PB-15 prioritizes investments to close gaps in critical kill
    chains, and accepts risk in capacity or in the rate at which some
    capabilities are integrated into the Fleet.
        Fourth, focus on critical afloat and ashore readiness to ensure
    ``the force'' is adequately funded and ready. PB-15 (compared to a BCA
    revised caps level) improves our ability to respond to contingencies
    (``surge'' capacity) by increasing the readiness of non-deployed
    forces. However, it increases risk to ashore readiness in fiscal year
    2015, compared to PB-14, by reducing facilities sustainment,
    restoration, and modernization (FSRM) and military construction
    (MILCON) investments. This reduction adds to backlogs created by the
    deferrals in fiscal year 2013 and fiscal year 2014, exacerbating an
    existing readiness problem.
        Fifth, sustain or enhance the Navy's asymmetric capabilities in the
    physical domains as well in cyberspace and the electromagnetic
    spectrum. Our fiscal year 2015 program prioritizes capabilities to
    remain ahead of or keep pace with adversary threats, including
    electromagnetic spectrum and cyber capabilities and those capabilities
    that provide joint assured access developed in concert with other
    Services under Air-Sea Battle. Our program terminates certain
    capability programs that do not provide high-leverage advantage, and
    slows funding for those that assume too much technical risk or could be
    developed and ``put on the shelf'' until needed in the future.
        Sixth, sustain a relevant industrial base, particularly in
    shipbuilding. We will continue to evaluate the impact of our investment
    plans on our industrial base, including ship and aircraft builders,
    depot maintenance facilities, equipment and weapons manufacturers, and
    science and technology researchers. The government is the only customer
    for some of our suppliers, especially in specialized areas such as
    nuclear power. PB-15 addresses the health of the industrial base
    sustaining adequate capacity, including competition, where needed and
    viable. We will work closely with our industry partners to manage the
    risk of any further budget reductions.
        Stewardship Initiatives.--Another important element of our approach
    in PB-15 included business transformation initiatives and headquarters
    reductions to comply with Secretary of Defense (SECDEF) direction. In
    order to maximize warfighting capability and capacity, the Department
    of the Navy achieved approximately $20 billion in savings across the
    PB-15 FYDP through a collection of business transformation initiatives.
    These can be grouped into four major categories: (1) more effective use
    of operating resources (about $2.5 billion over the FYDP); (2)
    contractual services reductions (about $14.8 billion FYDP); (3) Better
    Buying Power (BBP) in procurement (about $2.7 billion FYDP); and (4)
    more efficient research and development (about $200 million FYDP).
    These initiatives build on Navy and Department of Defense (DOD)
    initiatives that date back to 2009 and represent our continuing
    commitment to be good stewards of taxpayer dollars.
        Our PB-15 request also achieves savings through significant
    headquarters reductions, placing us on track to meet the 20-percent
    reduction by fiscal year 2019 required by SECDEF fiscal guidance. We
    applied reductions to a broader definition of headquarters than
    directed, achieving a savings of $33 million in fiscal year 2015 and
    $873 million over the FYDP from reductions in military, civilian, and
    contractor personnel. In making these reductions, we protected fleet
    operational warfighting headquarters and took larger reductions in
    other staffs.
                                 what we can do
        As described earlier, PB-15 represents some improvement over a
    program at the BCA revised caps, but in PB-15 we will still face high
    risk in executing at least two of the ten primary missions of the DSG
    in 2020. The 2012 Force Structure Assessment \2\ (FSA) and other Navy
    analysis describe the baseline of ships needed to support meeting each
    of the 10 missions required by the DSG. Against that baseline and our
    ``kill chain'' analysis described earlier, we assess that under PB-15
    the Navy of 2020 supports each of the ten DSG missions as follows:
    ---------------------------------------------------------------------------
        \2\ Consistent with other ``ship counts'' in this statement, the
    regional presence numbers described in this section are not directly
    comparable to those used in previous years due to the Battle Force
    counting guidelines revision.
    ---------------------------------------------------------------------------
        1. Provide a Stabilizing Presence.--Our PB-15 submission will meet
    the adjudicated presence requirements of the DSG. By increasing the
    number of ships forward stationed and forward based, PB-15 in some
    regions improves global presence as compared to our PB-14 submission.
    The Navy of 2020:
      --Provides global presence of about 123 ships, similar to the
            aggregate number planned under PB-14.
      --Increases presence in the Asia-Pacific from about 50 ships today on
            average to about 67 in 2020 on average, a greater increase than
            planned under PB-14.
      --``Places a premium on U.S. military presence in--and in support
            of--partner nations'' in the Middle East, by increasing
            presence from about 30 ships \3\ today on average to about 41
            on average in 2020.
    ---------------------------------------------------------------------------
        \3\ Under revised Battle Force accounting guidelines, the Middle
    East presence today now includes eight patrol coastal (PC) ships
    forward based in Bahrain; the number will increase to 10 in fiscal year
    2014. PC were not counted previously before the revision.
    ---------------------------------------------------------------------------
      --Continues to ``evolve our posture'' in Europe by meeting ballistic
            missile defense (BMD) European Phased Adaptive Approach (EPAA)
            requirements with four BMD-capable guided missile destroyers
            (DDG) in Rota, Spain and two land-based sites in Poland and
            Romania. The first of these DDG, USS Donald Cook, arrived in
            February 2014 and all four will be in place by the end of
            fiscal year 2015. Additional presence in Europe will be
            provided by forward operating joint high speed vessels (JHSV)
            and some rotationally deployed ships.
      --Will provide ``innovative, low-cost and small-footprint
            approaches'' to security in Africa and South America by
            deploying one JHSV, on average, to each region. Beginning in
            fiscal year 2015, we will deploy one hospital ship (T-AH), on
            average, and, beginning in fiscal year 2016, add one patrol
            coastal (PC) ship, on average, to South America. Afloat forward
            staging bases (AFSB) forward operating in the Middle East will
            also provide additional presence in Africa as required.
        2. Counter Terrorism and Irregular Warfare (CT/IW).--We will have
    the capacity to conduct widely distributed CT/IW missions. This mission
    requires Special Operations Forces, expeditionary capabilities such as
    Intelligence Exploitation Teams (IET), and specialized platforms such
    as two AFSB and four littoral combat ships (LCS) with embarked MH-60
    Seahawk helicopters and MQ-8 Fire Scout unmanned air vehicles. PB-15
    adds capacity for this mission by procuring a third mobile landing
    platform (MLP) AFSB variant in fiscal year 2017 for delivery in fiscal
    year 2020.
        3. Deter and Defeat Aggression.--FSA analysis described the ship
    force structure required to meet this mission's requirement: to be able
    to conduct one large-scale operation and ``simultaneously be capable of
    denying the objectives of--or imposing unacceptable costs on--an
    opportunistic aggressor in a second region.'' According to the FSA, the
    Navy has a requirement for a force of 11 CVN, 88 large surface
    combatants (DDG and CG), 48 attack submarines (SSN), 11 large
    amphibious assault ships (LHA/D), 11 amphibious transport docks (LPD),
    11 LSD, 52 small surface combatants (collectively: LCS, frigates, mine
    countermeasure ships) and 29 combat logistics force (CLF) ships. This
    globally distributed force will yield a steady state deployed presence
    of more than two CSG and two amphibious ready groups (ARG), with three
    CSG and three ARG ready to deploy in response to a contingency
    (``surge''). The Navy of 2020 delivered by PB-15, however, will be
    smaller than the calculated requirement in terms of large surface
    combatants, LHA/D, and small surface combatants. This force structure
    capacity provides less margin for error and reduced options in certain
    scenarios and increases risk in this primary mission. If we return to a
    BCA revised caps funding level in fiscal year 2016, the situation would
    be even worse. We would be compelled to inactivate a CVN and CVW and to
    reduce readiness and other force structure to ensure we maintain a
    balanced, ready force under the reduced fiscal topline. As in the BCA
    revised caps scenario I described previously, these reductions would
    leave us with a Navy that is capable of one multiphase contingency.
    Under these circumstances, we would not meet this key DSG mission.
        4. Conduct Stability and Counterinsurgency Operations.--The Navy of
    2020 will be able to meet the requirements of this DSG mission.
        5. Project Power Despite Anti-Access/Area-Denial (A2/AD)
    Challenges.--Compared to PB-14, our overall power projection capability
    development would slow, reducing options and increasing our risk in
    assuring access. The reduced procurement of weapons and slowing of air
    and missile defense capabilities, coupled with joint force deficiencies
    in wartime information transport and airborne intelligence,
    surveillance, and reconnaissance (ISR), will cause us to assume high
    risk in conducting this DSG mission if we are facing a technologically
    advanced adversary. PB-15 makes results in the following changes to air
    and missile defense capabilities (versus PB-14):
      --The Navy Integrated Fire Control-Counter Air (NIFC-CA) Increment I
            capability will still field (with the E-2D Advanced Hawkeye
            aircraft) in 2015, but only four air wings (versus six in PB-
            14) will have transitioned to the E-2D by 2020. Fewer air wings
            with E-2D translates to less assured joint access. NIFC-CA
            Increment I integrates aircraft sensor and ship weapon
            capabilities, improving lethality against advanced air and
            missile threats.
      --The F-35C Lightning II, the carrier-based variant of the Joint
            Strike Fighter, is scheduled to achieve Initial Operational
            Capability (IOC) between August 2018 and February 2019.
            However, our F-35C procurement will be reduced by 33 airframes
            in the PB-15 FYDP when compared to PB-14. The F-35C, with its
            advanced sensors, data sharing capability, and ability to
            operate closer to threats, is designed to enhance the CVW's
            ability to find targets and coordinate attacks. The impact of
            this reduced capacity would manifest itself particularly
            outside the FYDP, and after F-35C IOC.
      --All components of an improved air-to-air kill chain that employs
            infrared (IR) sensors to circumvent adversary radar jamming
            will be delayed 1 year. The Infrared Search and Track (IRST)
            Block I sensor system will field in 2017 (versus 2016) and the
            improved longer-range IRST Block II will not deliver until 2019
            (versus 2018).
      --Improvements to the air-to-air radio frequency (RF) kill chain that
            defeats enemy jamming and operates at longer ranges will be
            slowed, and jamming protection upgrades to the F/A-18E/F Super
            Hornet will be delayed to 2019 (versus 2018).
        However, PB-15 sustains our advantage in the undersea domain by
    delivering the following capabilities:
      --PB-15 procures 56 P-8A Poseidon maritime patrol aircraft over the
            FYDP, replacing the legacy P-3C Orion's capability.
      --Continues to procure two Virginia-class SSN per year through the
            FYDP, resulting in an inventory of 21 Virginia-class (of 48
            total SSN) by 2020.
      --Continues installation of anti-submarine warfare (ASW) combat
            system upgrades for DDG and improved Multi-Function Towed
            Arrays (MFTA) for DDG and CG. Both installations will be
            complete on all DDG forward based in the Western Pacific by
            2018.
      --All of our P-8A and ASW helicopters in the Western Pacific will
            still be equipped with upgraded sonobuoys and advanced
            torpedoes by 2018.
      --The LCS mine countermeasures (MCM) mission package, which employs
            unmanned vehicles and offboard sensors to localize and
            neutralize mines, will complete testing of its first increment
            in 2015 and deploy to the Arabian Gulf with full operational
            capability by 2019.
      --The LCS ASW mission package, which improves surface ASW capability
            by employing a MFTA in concert with a variable depth sonar
            (VDS), will still field in 2016.
      --Additional Mk 48 Advanced Capability (ADCAP) heavyweight torpedoes,
            restarting the production line and procuring 105 Mod 7
            torpedoes across the FYDP. The restart will also provide a
            basis for future capability upgrades.
        6. Counter Weapons of Mass Destruction.--This mission has two
    parts: (1) interdicting weapons of mass destruction as they proliferate
    from suppliers; and (2) defeating the means of delivery during an
    attack. PB-15 will meet requirements for this mission by providing
    sufficient deployed CSG, ARG, and surface combatants, as well as SEAL
    and EOD platoons, to address the first part. For the second part, BMD-
    capable DDG exist in sufficient numbers to meet adjudicated GCC
    presence requirements under the GFMAP, and can be postured to counter
    weapons delivered by ballistic missiles in regions where threats are
    more likely to emanate. That said, missile defense capacity in some
    scenarios remains a challenge and any reduction in the number of BMD-
    capable DDG raises risk in this area.
        7. Operate Effectively in Space and Cyberspace.--Our PB-15
    submission continues to place priority on cyber defense and efforts to
    build the Navy's portion of the Department of Defense's Cyber Mission
    Forces. Continuing PB-14 initiatives, PB-15 will recruit, hire, and
    train 976 additional cyber operators and form 40 cyber mission teams by
    2016. Additionally, we will align Navy networks with a more defensible
    DOD Joint Information Environment (JIE) through the implementation of
    the Next Generation Enterprise Network (NGEN) ashore and Consolidated
    Afloat Networks and Enterprise Services (CANES) at sea.
        8. Maintain a Safe, Secure, and Effective Nuclear Deterrent.--This
    mission is the Navy's top priority in any fiscal scenario, and our PB-
    15 submission will meet its requirements. It satisfies STRATCOM demand
    for SSBN availability through the end of the current Ohio class'
    service life. Additionally, our PB-15 submission funds Nuclear Command,
    Control, and Communications (NC3) modernization and the Trident D5
    ballistic missile Life Extension Program (LEP) while sustaining the
    fleet of E-6B Mercury Take Charge and Move Out (TACAMO) aircraft.
        9. Defend the Homeland and Provide Support to Civil Authorities.--
    PB-15 will maintain an appropriate capacity of aircraft carriers,
    surface combatants, amphibious ships, and aircraft that are not
    deployed and are ready for all homeland defense missions.
        10. Conduct Humanitarian, Disaster Relief, and Other Operations.--
    Our analysis determined that a global presence of two ARG and nine JHSV
    is sufficient to conduct these operations. Our PB-15 submission will
    support this level of presence.
         manpower, modernization, warfighting capability, and readiness
        The following paragraphs describe more specific PB-15 programs
    actions that result from our strategic approach and influence our
    ability to conduct the missions required by the DSG:
        End Strength.--PB-15 supports a fiscal year 2015 Navy active end
    strength of 323,600, and reserve end strength of 57,300. It
    appropriately balances risk, preserves capabilities to meet current
    Navy and Joint requirements, fosters growth in required mission areas,
    and provides support to Sailors, Navy Civilians and Families. We
    adjusted both Active and Reserve end strength to balance available
    resources utilizing a Total Force approach. PB-15 end strength remains
    fairly stable across the FYDP, reaching approximately 323,200 Active
    and 58,800 Reserve in fiscal year 2019.
        Shipbuilding.--Our PB-15 shipbuilding plan combines the production
    of proven platforms with the introduction of innovative and cost
    effective platforms in order to preserve capacity while enhancing
    capability. Simultaneously, we will sustain efforts to develop new
    payloads that will further enhance the lethality and effectiveness of
    existing platforms and continue mid-life modernizations and upgrades to
    ensure their continued relevance. We will continue to field flexible,
    affordable platforms like AFSB and auxiliary ships that operate forward
    with a mix of rotational civilian and military crews and provide
    additional presence capacity for certain missions requiring
    flexibility, volume, and persistence. PB-15 proposes:
      --Funding for 14 LCS across the FYDP (three per year in fiscal year
            2015-2018 and two in fiscal year 2019). However, in accordance
            with SECDEF direction, we will cease contract negotiations
            after we reach a total of 32 ships (12 procured in the PB-15
            FYDP). Per direction, we will assess LCS's characteristics such
            as lethality and survivability, and we are studying options for
            a follow-on small surface combatant, and follow on flight of
            LCS.
      --Two Virginia-class SSN per year, maintaining the planned 10-ship
            Block IV multiyear procurement (fiscal year 2014-fiscal year
            2018).
      --Two Arleigh Burke-class DDG per year, maintaining the 10-ship
            multiyear procurement (fiscal year 2013-2017). PB-15 procures
            10 DDG (three Flight IIA and seven Flight III) in the FYDP. The
            first Flight III DDG, which will incorporate the advanced Air
            and Missile Defense Radar (AMDR), will be procured in fiscal
            year 2016 and delivered in fiscal year 2021.
      --An additional AFSB variant of the Montford Point-class MLP in
            fiscal year 2017. This AFSB will deliver in fiscal year 2020
            and will forward operate in the Asia-Pacific region.
      --Three T-AO(X) fleet oilers (in fiscal year 2016, 2018, and 2019,
            respectively).
      --Advanced procurement requested in fiscal year 2019 to procure one
            LX(R) amphibious ship replacement in fiscal year 2020.
        Additionally, to comply with fiscal constraints, our PB-15
    submission delays delivery of the second Ford-class CVN, USS John F.
    Kennedy (CVN 79) from fiscal year 2022 to fiscal year 2023.
        Aviation.--PB-15 continues our transition to the Future Carrier Air
    Wing, which will employ manned and unmanned systems to achieve air,
    sea, and undersea superiority across capability ``kill chains.'' We
    will also continue to field more advanced land-based maritime patrol
    aircraft (manned and unmanned) to evolve and expand our ISR, ASW, and
    sea control capabilities and capacity. To further these objectives
    while complying with fiscal constraints, PB-15:
      --Continues plans to transition the F/A-18E/F Super Hornet fleet from
            production to sustainment with the final 37 aircraft procured
            in fiscal year 2013 and scheduled for delivery in fiscal year
            2015. Likewise, the final EA-18G Growler electronic warfare
            aircraft will be procured in fiscal year 2014 and delivered in
            fiscal year 2016. We are forced to assume the risk of moving to
            a single strike fighter prime contractor due to fiscal
            constraints.
      --Maintains IOC of the F-35C Lightning II between August 2018 and
            February 2019. However, due to fiscal constraints, we were
            compelled to reduce F-35C procurement by 33 airframes across
            the FYDP.
      --Maintains initial fielding of the E-2D Advanced Hawkeye and its
            NIFC-CA capability in fiscal year 2015. Due to fiscal
            constraints, we were compelled to reduce procurement by 10
            airframes over the FYDP with four CVW completing transition to
            the E-2D by 2020, versus the preferred six in PB-14.
      --Continues development of the Unmanned Carrier Launch Surveillance
            and Strike System (UCLASS), a major step forward in achieving
            integration of manned and unmanned systems within the CVW.
            UCLASS remains on a path to achieve Early Operational
            Capability (EOC) within 4 to 5 years of contract award, which
            is projected for fiscal year 2015.
      --Continues to transition to the P-8A Poseidon maritime patrol
            aircraft from the legacy P-3C Orion. However, we were compelled
            by fiscal constraints to lower the final P-8A inventory
            objective from 117 to 109 aircraft. The warfighting requirement
            remains 117, but we can only afford 109.
      --Continues development of the MQ-4C Triton land-based unmanned ISR
            aircraft. However, technical issues delayed the low-rate
            initial production decision from fiscal year 2015 to fiscal
            year 2016. Together with fiscal constraints, this reduces
            procurement of MQ-4C air vehicles in the FYDP from 23 to 16.
            Triton will make its first deployment to the Pacific in fiscal
            year 2017. The multi-INT version will start fielding in 2020.
      --Aligns the MQ-8 Fire Scout ship-based unmanned helicopter program
            to LCS deliveries. Fiscal constraints and global force
            management (GFM) demands on our surface combatants compelled us
            to remove options to conduct dedicated ISR support to Special
            Operations Forces (SOF) from DDG and JHSV, but Fire Scout-
            equipped LCS can be allocated to Combatant Commanders by the
            GFM process to support this mission. This decision reduces
            procurement of MQ-8 air vehicles across the FYDP by 19.
      --Continues our maritime Intelligence, Surveillance, Reconnaissance,
            and Targeting (ISR&T) transition plan to deliver increased ISR
            persistence by the end of fiscal year 2018 and exceed the
            aggregate capability and capacity of our legacy platforms by
            the end of fiscal year 2020. However, as we transition from
            legacy platforms like the EP-3E Aries II, fiscal constraints
            will compel us to take moderate risk in some collection
            capabilities over the next few years.
        Modernization.--In parallel with recapitalization, PB-15 continues
    modernization of in-service platforms. Flight I and II of the Arleigh
    Burke-class DDG began mid-life modernization in fiscal year 2010, and
    will continue at the rate of 2 hulls per year (on average) through
    fiscal year 2016. In fiscal year 2017, we will begin to modernize
    Flight IIA DDG in parallel with Flight I and II in order to do so
    closer to the midpoint in the Flight IIA's service lives and increase
    return on investment. This will also increase operational availability
    and BMD capacity sooner than a serial, ``oldest-first'' plan. Nine of
    twelve Whidbey Island-class LSD have undergone a mid-life update and
    preservation program, and seven Wasp-class large deck amphibious
    assault ships (LHD) will complete mid-life modernization by fiscal year
    2022. Modernization of the 8th LHD, USS Makin Island will be addressed
    in subsequent budget submissions.
        The Navy's budget must also include sufficient readiness,
    capability and manpower to complement the force structure capacity of
    ships and aircraft. This balance must be maintained to ensure each unit
    will be effective, no matter what the overall size and capacity of the
    Fleet. To preserve this balance and modernize cruisers while avoiding a
    permanent loss of force structure and requisite ``ship years,'' PB-15
    proposes to induct 11 Ticonderoga-class CG into a phased modernization
    period starting in fiscal year 2015. Only fiscal constraints compel us
    to take this course of action; CG global presence is an enduring need.
    The ships will be inducted into phased modernization and timed to align
    with the retirements of CG such that the modernized ships will replace
    one-for-one, when they finish modernization. This innovative plan
    permits us to reapply the CG manpower to other manning shortfalls while
    simultaneously avoiding the operating costs for these ships while they
    undergo maintenance and modernization. The plan to modernize and retain
    the CG adds 137 operational ``ship years'' to the Battle Force and it
    extends the presence of the Ticonderoga class in the Battle Force to 58
    years. It avoids approximately $2.2 billion in operating and
    maintenance costs across the FYDP for 11 CG. In addition, it precludes
    Navy having to increase our overall end strength by about 3,400 people
    (approximately $1.6 billion over the FYDP), which would otherwise be
    required to fill critical shortfalls in our training pipelines and
    fleet manning.
        PB-15 also proposes to induct three Whidbey Island-class LSD into
    phased modernization availabilities on a ``rolling basis'' beginning in
    fiscal year 2016, with two of the three always remaining in service.
    Similar to the CG plan, the LSD plan avoids approximately $128 million
    across the FYDP in operating and maintenance and an end strength
    increase of approximately 300 people (approximately $110 million over
    the FYDP) for the one LSD that will be in this category during the PB-
    15 FYDP. This plan adds 35 operational ``ship years'' and sustains the
    presence of the Whidbey Island class in the Battle Force through 2038.
        We appreciate the additional funding and expanded timeframe given
    by Congress for modernizing and operating the LSD and CG proposed for
    permanent inactivation in PB-13. Consistent with the spirit of
    Congressional action, we are committed to a phased modernization of
    these nine ships, plus an additional four CG and one LSD. However,
    funding constraints still make us unable to keep all of these ships
    operational in every year, in the near term. While we would prefer to
    retain all LSD and CG deployable through the FYDP, a balanced portfolio
    under current fiscal constraints precludes this.
        To mitigate a projected future shortfall in our strike fighter
    inventory while integrating the F-35C, PB-15 continues the Service Life
    Extension Program (SLEP) for the legacy F/A-18A-D Hornet. With SLEP
    modifications, some of these aircraft will achieve as much as 10,000
    lifetime flight hours, or 4,000 hours and 16 years beyond their
    originally designed life.
        Electromagnetic Maneuver Warfare. In addition to the actions
    described earlier in the statement to improve air and missile defense
    and sustain our advantage in the undersea and information domains, our
    program enhances our ability to maneuver freely in the electromagnetic
    spectrum, while denying adversaries' ability to do the same. It
    maintains our investment in the Ships' Signals Exploitation Equipment
    (SSEE) Increment F, which equips ships with a robust capability to
    interdict the communications and targeting elements of adversary kill
    chains by 2020. It delivers upgraded electromagnetic sensing
    capabilities for surface ships via the Surface Electronic Warfare
    Improvement Program (SEWIP) Block 2 that will deliver in 2016. PB-15
    then begins low rate initial production (LRIP) of SEWIP Block 3 in 2017
    to add jamming and deception capabilities to counter advanced anti-ship
    cruise missiles. To enhance CVW capabilities to jam enemy radars and
    conduct other forms of electromagnetic spectrum maneuver warfare, PB-15
    maintains our investments in the Next Generation Jammer (NGJ). NGJ will
    provide the EA-18G Growler with enhanced Airborne Electronic Attack
    (AEA) capabilities for conventional and irregular warfare. The current
    ALQ-99 jammer, which has been the workhorse of the fleet for more than
    40 years, will not be able to meet all requirements in challenging
    future environments.
        Mine Warfare. Mines are a low-cost, asymmetric weapon that can be
    effective in denying U.S. forces access to contested areas. To enhance
    our ability to counter mines in the Middle East and other theaters, our
    PB-15 program sustains investments in the LCS mine countermeasures
    (MCM) mission package, completing initial testing of its first
    increment in 2015 and achieving full operational capability in 2019.
    With these packages installed, LCS will locate mines at twice the rate
    our existing MCM ships can achieve, while keeping the LCS and its crew
    outside the mine danger area. LCS also has significantly greater on-
    station endurance and self-defense capability than existing MCM. PB-15
    sustains our interim AFSB, USS Ponce, in service until fiscal year
    2016. USS Ponce provides forward logistics support and command and
    control to MCM ships and helicopters, allowing them to remain on
    station longer and sustain a more rapid mine clearance rate. In the
    near-term, PB-15 continues funding for Mk 18 Kingfish unmanned
    underwater vehicles (UUV) and Sea Fox mine neutralization systems
    deployed to the Arabian Gulf today, as well as increased maintenance
    and manning for Avenger-class MCM ships forward based in Bahrain.
        Precision Strike.--Our precision strike capabilities and capacity
    will be critical to success in any foreseeable future conflict.
    Accordingly, PB-15 funds research and development for the Virginia
    Payload Module (VPM) through fiscal year 2018 to increase Virginia-
    class SSN Tomahawk missile capacity from 12 to 40 missiles, mitigating
    the loss of capacity as Ohio-class guided missile submarines (SSGN)
    begin to retire in 2026. These efforts will support the option to
    procure the VPM with Block V of the Virginia class, as early as fiscal
    year 2019, in a future budget. Also in support of strike capacity, PB-
    15 sustains the existing Tactical Tomahawk cruise missile inventory by
    extending service life through investments in critical capability
    enhancements and vital parts to achieve maximum longevity. To develop a
    follow-on weapon to replace Tactical Tomahawk when it leaves service,
    PB-15 commences an analysis of alternatives (AoA) in fiscal year 2015
    for planned introduction in the 2024-2028 timeframe. Also, our program
    enhances CVW precision strike capabilities by integrating the Small
    Diameter Bomb II (SDB II) on the F/A-18 by 2019.
        Anti-Surface Warfare.--To pace improvements in adversaries' long-
    range anti-ship cruise missiles and maritime air defenses, PB-15
    implements a plan to deliver next-generation anti-surface warfare
    (ASuW) capability. The program maintains current ASuW capability
    inherent in the Harpoon missile, Joint Standoff Weapon (JSOW) C-1, and
    Mk 48 ADCAP torpedoes. In the near term, we are pursuing options to
    develop an improved, longer range ASuW capability by leveraging
    existing weapons to minimize technical risk, costs, and development
    time. Additionally, PB-15 funds enhanced ASuW lethality for LCS by
    introducing a surface-to-surface missile module (SSMM) in fiscal year
    2017. PB-15 accelerates acquisition of the next-generation Long Range
    Anti-Ship Missile (LRASM), fielding an early air-launched capability on
    the Air Force B-1B Lancer bomber in fiscal year 2018 and integration
    with the F/A-18E/F in fiscal year 2019. Additionally, PB-15's restart
    of Mk 48 ADCAP production and acquisition of 105 Mod 7 torpedoes over
    the FYDP enhances submarine ASuW capacity and provides a basis for
    future capability upgrades.

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

      Figure 2: Navy'S Projected Forward Presence in Fiscal Year 2015 and
                                Fiscal Year 2020

        Forward Presence.--PB-15 continues our DSG-directed rebalance to
    the Asia-Pacific both in terms of force structure and in other
    important ways. It increases our presence in the region from about 50
    ships today on average to about 67 by 2020. In doing so, we continue to
    leverage our own ``bases'' in the region, such as Guam and Hawaii, as
    well as ``places'' where our allies and partners allow us to use their
    facilities to rest, resupply, and refuel. PB-15 continues to
    preferentially field advanced payloads and platforms with power
    projection capabilities, such as the F-35C Lightning II, the Zumwalt-
    class DDG, the AIM-120D Advanced Medium Range Air-to-Air Missile
    (AMRAAM), and the P-8A Poseidon to the Asia-Pacific first in response
    to the rapidly increasing A2/AD capabilities of potential adversaries
    in the region.
        In our PB-15 submission, we seek to maximize our presence in the
    Asia-Pacific and other regions using both rotational and non-rotational
    forces. Rotational forces deploy to overseas theaters from homeports in
    the United States for finite periods, while non-rotational forces are
    sustained in theater continuously. Non-rotational forces can be forward
    based, as in Spain and Japan, where ships are permanently based
    overseas and their crews and their families reside in the host country.
    Forward stationed ships operate continuously from overseas ports but
    are manned by crews that deploy rotationally from the United States, as
    is the case with the LCS deployed to Singapore, with four ships in
    place by 2017. Forward operating ships, by contrast, operate
    continuously in forward theaters from multiple ports and are manned by
    civilian mariners and small detachments of military personnel who
    rotate on and off the ships. Examples of forward operating ships
    include MLP, JHSV, AFSB, and the oilers and combat support ships of the
    Combat Logistics Force (CLF). Forward based, stationed, or operating
    ships all provide presence at a significantly lower cost since one ship
    that operates continuously overseas provides the same presence as about
    four ships deploying rotationally from homeports in the United States.
        To capitalize on this advantage, our PB-15 program continues the
    move of four BMD-capable destroyers to Rota, Spain. The first of these,
    USS Donald Cook, is already in place, and three ships will join her by
    the end of fiscal year 2015. We will likewise forward base an
    additional (fourth) SSN in Guam in fiscal year 2015. PB-15 sustains our
    forward based MCM and PC in Bahrain, and forward stationed LCS will
    begin to assume their missions at the end of the decade. As JHSV are
    delivered and enter service, they will begin forward operating in
    multiple regions, including the Middle East in fiscal year 2014, the
    Asia-Pacific in fiscal year 2015, Africa in fiscal year 2016, and
    Europe in fiscal year 2017. USNS Montford Point, the first MLP, will
    deploy and begin forward operating from Diego Garcia in fiscal year
    2015. USNS Lewis B. Puller, the first AFSB variant of the Montford
    Point class, will relieve our interim AFSB, USS Ponce, and begin
    forward operating in the Middle East in fiscal year 2016.
        The Optimized Fleet Response Plan (O-FRP).--In addition to
    maximizing forward presence by basing ships overseas, our PB-15
    submission also takes action to maximize the operational availability
    and presence delivered by units that deploy rotationally from the
    United States. In fiscal year 2015 we will begin implementation of the
    O-FRP, a comprehensive update to our existing Fleet Response Plan, the
    operational framework under which we have trained, maintained, and
    deployed our forces since 2003.
        The legacy FRP employed units on repeating cycles about 30 months
    in length that were divided into four phases: Maintenance, basic
    training, integrated (advanced) training, and sustainment. Scheduled
    deployments of notionally 6 to 7 months were intended to take place in
    the sustainment phase, and the units' combat readiness was maintained
    for the remainder of the sustainment phase to provide ``surge''
    capacity for contingency response.
        Over the past few years, continuing global demand for naval forces
    coupled with reduced resources has strained the force. Continued demand
    in the Asia-Pacific, combined with increased commitments in the Persian
    Gulf , as well as responses to crisis events in Syria and Libya,
    coupled with an emerging global afloat BMD mission, have driven recent
    deployment lengths for certain units (CSG, ARG, and BMD-capable DDG in
    particular) as high as 8 to 9 months. Sequestration and a continuing
    resolution in fiscal year 2013 added to these pressures by hampering
    maintenance and training, which slowed preparation of ships and delayed
    deployments. In many instances, we have been compelled to shorten
    training and maintenance or to deploy units twice in the same
    sustainment cycle. While the FRP provides flexibility and delivers
    additional forces where required for crisis response, the increased
    operational tempo for our forces in recent years is not sustainable in
    the long term without a revision of the FRP. Reductions in training and
    maintenance reduce the combat capability and readiness of our forces
    and the ability of our ships and aircraft to fulfill their expected
    service lives. These effects combine with unpredictable schedules to
    impact our Sailors' ``quality of service,'' making it more difficult to
    recruit and retain the best personnel in the long term.
        The O-FRP responds to these schedule pressures and simultaneously
    makes several other process and alignment improvements to more
    effectively and efficiently prepare and deploy forces. Our analysis
    concluded that a 36-month deployment cycle (versus about 30 months)
    with scheduled deployments of up to 8 months (versus 6 to 7 months) is
    the optimal solution to maximize operational availability while
    maintaining stability and predictability for maintenance and training.
    Beyond scheduling, the O-FRP increases cohesiveness and stability in
    the composition of the teams we prepare for deployment by keeping the
    same group of ships and aircraft squadrons together in a CSG through
    successive cycles of training and deployment. The O-FRP also takes
    actions to make maintenance planning more predictable and maintenance
    execution more timely and cost-effective. It takes parallel steps in
    training by closely aligning the many inspections and exercises that
    units must complete in a predictable, rationalized sequence.
        Our PB-15 submission implements the O-FRP beginning in fiscal year
    2015 with the Harry S. Truman CSG, and will implement it in all other
    CSG and surface combatants as they prepare for and execute their next
    deployments. The O-FRP will subsequently be expanded to amphibious
    ships (ARG) and we are studying the desirability of expanding it to
    submarines and other unit types in the future.
        Fleet Readiness.--A central challenge in delivering the best Navy
    possible for the funds appropriated is properly balancing the cost of
    procuring force structure and capability with the cost of maintaining
    them at an appropriate level of readiness. When faced with a future of
    declining budgets, if we are returned to BCA revised caps funding
    levels in fiscal year 2016 and beyond, we are forced to make difficult
    decisions. Unstable budget levels (due to continuing resolutions and
    sequestration) force reductions in maintenance and training. Over time,
    this begins to take an untenable toll on our enduring ability to deploy
    forces that are sufficiently ready to complete their missions with
    acceptable risk and the ability of our ships and aircraft to reach
    their expected service lives. We are mandated to fund readiness. In a
    declining budget, we must look at reducing recapitalization and
    modernization. This can also have the consequences, of falling behind
    competitors in terms of capability and relevance, or we risk having too
    few ships and aircraft to execute certain missions in the future. As a
    result, we balance force structure capacity and capability with
    readiness in any financial situation.
        Despite the reduction in funding below levels planned in PB-14, PB-
    15 strikes this balance and the result is a program that delivers
    sufficient readiness to meet our GFMAP presence commitments and provide
    sufficient ``surge'' capacity for contingency response.
        As part of our efforts to sustain fleet readiness, Navy continues
    to improve its maintenance practices for surface ships by increasing
    governance, transparency, and accountability. Over the last several
    years, these practices have enabled us to decrease the amount of
    backlogged ship maintenance caused by high operational tempo.
        Going forward, PB-15 funds Navy's fiscal year 2015 afloat readiness
    to the DOD guidelines and goals. As in previous years, a supplemental
    funding request will be submitted to address some deployed ship
    operations, flying, and maintenance requirements.
        Readiness and Investment Ashore.--To comply with fiscal
    constraints, we are compelled to continue accepting risk in shore
    infrastructure investment and operations. PB-15 prioritizes nuclear
    weapons support, base security, child development programs, and air and
    port operations. PB-15 funds facilities' sustainment to 70 percent of
    the DOD Facilities Sustainment Model, and prioritizes repair of
    critical operational facilities like piers and runways, renovation of
    inadequate barracks, and improving the energy efficiency of facilities.
    Less critical repairs to non-operational facilities will be deferred;
    however, this risk will compound over years and must eventually be
    addressed.
        Depot Maintenance Infrastructure.--Due to fiscal constraints, the
    Department of the Navy will not meet the mandated capital investment of
    6 percent across all shipyards and depots described in 10 U.S.C. 2476
    in fiscal year 2015. The Navy projects an investment of 3.5 percent in
    fiscal year 2015. PB-15 does, however, fund the most critical
    deficiencies related to productivity and safety at our Naval Shipyards.
    We will continue to aggressively pursue opportunities such as
    reprogramming or realignment of funds to find the appropriate funds to
    address this important requirement and mandate.
        Base Realignment and Closure (BRAC).--PB-15 continues to fund
    environmental restoration, caretaking, and property disposal at BRAC
    2005 and prior-round BRAC installations. We meet the legal mandates at
    all levels from previous BRAC rounds.
                              health of the force
        Compensation Reform and Quality of Service.--PB-15 addresses
    readiness by applying an important concept: Quality of service. Quality
    of service has two components: (1) quality of work, and (2) quality of
    life. Both are intrinsically tied to readiness. At work, the Navy is
    committed to providing our Sailors a challenging, rewarding
    professional experience, underpinned by the tools and resources to do
    their jobs right. Our obligations don't stop at the bottom of the brow.
    We support our Navy Families with the proper quality of life in terms
    of compensation, professional and personal development, and stability
    (i.e., deployment predictability). Our Sailors are our most important
    asset and we must invest appropriately to keep a high caliber all-
    volunteer force.
        Over the last several years, Congress has been generous in
    increasing our benefits and compensation by approving pay raises,
    expanding tax-free housing, increasing healthcare benefits for
    retirees, and enhancing the GI Bill. This level of compensation and
    benefits, while appropriate, is costly and will exceed what we can
    afford.
        Personnel costs for military and civilian personnel make up about
    half of DOD's base budget--a share that continues to grow and force
    tradeoffs with other priorities. It is a strategic imperative to rein
    in this cost growth; therefore, we propose to slow rates of military
    pay raises, temporarily slow Basic Allowance for Housing growth, and
    reduce indirect subsidies provided to commissaries. Coupled with
    reductions in travel expenses, these reforms will generate $123 million
    in Navy savings in fiscal year 2015 and $3.1 billion across the FYDP.
    None of these measures will reduce our Sailors' pay.
        When my Senior Enlisted Advisor (the Master Chief Petty Officer of
    the Navy) and I visit Navy commands around the world, the message I get
    from our Sailors is that they want to serve in a force that is properly
    manned and one that provides them with the tools, training, and
    deployment predictability they need to do their jobs. Sailors tell us
    that these factors are as important as compensation and benefits. Any
    Navy savings from compensation reform, therefore, will be re-invested
    to quality of service enhancements that include:
      --Increases in travel funding for training.
      --Expansion of the Navy e-Learning online training system.
      --Improvement in training range and simulation capabilities,
            simulated small arms training, and other shore-based simulators
            and trainers for surface ship and submarine personnel.
      --Additional aviation spare parts.
      --Enhancements to aviation logistics and maintenance.
      --Enhancements to surface ship depot maintenance.
      --Increasing financial incentives for Sailors serving in operational
            capacities at sea.
      --Increasing retention bonuses.
      --Enhancing Base Operating Support (BOS) funding to improve base
            services for Sailors and their families.
      --Restoring of $70 million per year of funding for renovation of
            single Sailors' barracks that we were previously compelled to
            reduce due to fiscal constraints.
      --Military construction projects for five barracks and a reserve Navy
            Operational Support Center (NOSC).
      --Improving berthing barges in Yokosuka, Japan that house Sailors
            while forward based ships undergo depot maintenance.
      --Increasing support to active commands by Selected Reserve (SELRES)
            personnel, thereby reducing workloads on active duty personnel.
      --Implementing an information technology (IT) solution that enables
            Reserve personnel to remotely access Navy IT resources in
            support of mission objectives.
      --Increasing funding for recapitalization projects at our flagship
            educational institutions.
        For the same reasons we support reform of pay and other benefits,
    the Navy also supports DOD-wide proposals in PB-15 to reduce military
    healthcare costs by modernizing insurance options for dependents and
    retirees, and through modest fee and co-pay increases that encourage
    use of the most affordable means of care.
        Enduring Programs.--Along with the plans and programs described
    above, I remain focused on enduring challenges that relate to the
    safety, health, and well-being of our people. In June 2013, we
    established the Navy 21st Century Sailor Office (OPNAV N17), led by a
    flag officer, to integrate and synchronize our efforts to improve the
    readiness and resilience of Sailors and their Families. The most
    pressing and challenging problem that we are tackling in this area is
    sexual assault.
        Sexual Assault.--The Navy continues to pursue a deliberate strategy
    in combatting sexual assault. We continue to focus on preventing sexual
    assaults, supporting and advocating for victims, improving
    investigation programs and processes, and ensuring appropriate
    accountability. To assess effectiveness and better target our efforts,
    Navy's Sexual Assault Prevention and Response (SAPR) program is driven
    by a metrics-based strategic plan that focuses on care and support to
    victims, as well as individual, command and institutional efforts to
    prevent this destructive crime. We receive feedback directly from our
    Sailors through surveys, polls, and Fleet engagements, which steers our
    program and efforts. In fiscal year 2013, more Sailors than ever came
    forward to report incidents, many of which occurred months or even
    years prior.
        Sustaining a world-class response and victim advocacy system
    remains a top priority; preventing sexual assaults from occurring is an
    imperative. Our strategy focuses on creating a climate where behaviors
    and actions that may lead to sexual assault, as well as sexual assault
    itself, are not tolerated, condoned or ignored. This multi-faceted
    approach focuses on command climate; deterrence; and bystander
    intervention. To prevent more severe crimes in the continuum of harm,
    we are concentrating our leadership efforts on ending the sexist and
    destructive behaviors that lead up to them. Our metrics indicate that
    Sailors are reporting unacceptable behavior and that commands are
    taking it seriously.
        We will continue to measure, through surveys and reports,
    prevalence data, command climate and perceptions of leadership support,
    investigation length, and victim experience with our response and
    investigative system. We also measure key statistics about the
    investigative and adjudication process itself, such as length of time
    from report to outcome, as we continue to ensure a balanced military
    justice system for all involved. These metrics will be utilized to
    further improve and refine our prevention strategy, as well as inform a
    DOD-wide report to the President due in December 2014.
        Every Sailor and Navy Civilian deserves to work in an environment
    of dignity, respect, and trust. We hold our leaders accountable for
    creating a command climate that promotes these basic principles and
    thereby reduces the likelihood of an environment where sexual
    harassment might occur. We are strengthening our sexual harassment
    prevention policy by separating it from Equal Opportunity and aligning
    it with previous SAPR policy amendments, which have resulted in
    increased trust in our system to report incidents.
        When sexual assaults do occur, we ensure the victims' rights and
    preferences are respected throughout the investigative and disposition
    processes. In October 2013, we established the Victims' Legal Counsel
    (VLC) Program. The program is currently staffed by 25 Navy judge
    advocates acting as VLC, providing legal advice and representation to
    victims. The program will eventually expand to 29 VLC located on 23
    different installations, and VLC services are already available to all
    eligible victims worldwide. Our VLC work to protect and preserve the
    rights and interests of sexual assault victims, and in the case of
    investigation and prosecution, to ensure victims understand the
    process, can exercise their rights, and are able to have a voice in the
    process.
        However, work remains to be done. Despite 80 percent of Sailors
    reporting confidence in the Navy's response system to sexual assault
    and 86 percent agreeing that the Navy and their individual commands are
    taking actions to prevent sexual assault, nearly 50 percent cite ``fear
    of public exposure'' or ``shame'' as barriers to reporting. We continue
    to seek ways to overcome these perceived barriers.
        We greatly appreciate Congress's interest and support in our
    efforts to combat sexual assault, particularly the measures contained
    in the NDAA for fiscal year 2014. We are fully engaged in implementing
    the new requirements and we believe that given time to measure progress
    following full implementation, we will be able to better assess whether
    any additional legislative or policy measures are required. We remain
    committed to eradicating sexual assault within our ranks and ensuring
    that sexual assault cases are processed through a fair, effective, and
    efficient military justice system. We must ensure that all changes to
    the system do not adversely impact the interests of justice, the rights
    of crime victims, or the due process rights of the accused.
        Suicide.--Another critical problem we are focused on is suicides.
    Suicides in the Navy declined last year by 28 percent, from 65 in 2012
    to 47 in 2013. This is cautiously optimistic, but one suicide is still
    one too many. Preventing suicide is a command-led effort that leverages
    a comprehensive array of outreach and education. We cannot tell
    precisely what combination of factors compel an individual to
    contemplate suicide, so we address it by elevating our awareness and
    responsiveness to individuals we believe may in trouble. For example,
    all Sailors learn about bystander intervention tool known as ``A.C.T.''
    (Ask-Care-Treat) to identify and encourage at-risk shipmates to seek
    support. We also know that investing in the resilience of our people
    helps them deal with any challenge they may face.
        Resilience.--Our research shows that a Sailor's ability to steadily
    build resilience is a key factor in navigating stressful situations.
    Education and prevention initiatives train Sailors to recognize
    operational stress early and to use tools to manage and reduce its
    effects. Our Operational Stress Control (OSC) program is the foundation
    of our efforts to teach Sailors to recognize stressors in their lives
    and mitigate them before they become crises. In the past year, we
    expanded our training capacity by 50 percent and increased OSC mobile
    training teams (MTT) from four to six. These MTT visit each command
    within 6 months of deployment and teach Sailors resiliency practices to
    better manage stress and avoid paths that lead to destructive
    behaviors.
        In addition, we are strengthening support to Sailors who are
    deployed in unfamiliar surroundings. We have started a program to
    assign trained and certified professionals as Deployed Resiliency
    Counselors (DRC) to our largest ships, the CVN and LHA/D. DRC are
    credentialed clinical counselors that can assist or provide support to
    Sailors who are coping with or suffering from common life events,
    common life stressors, and discrete traumatic events that may include
    sexual assault. This initiative extends the reach of Navy's resiliency
    programs to deployed commands and allows a ``warm hand-off'' to shore
    services when the Sailor returns to homeport.
        Character Development.--At all levels in the Navy, leadership,
    character, and integrity form the foundation of who we are and what we
    do. These bedrock principles are supported by our culture of
    accountability, command authority, and personal responsibility.
    Leadership failures and integrity shortfalls undermine our organization
    and erode public trust. We will continue to reinforce standards and
    hold those who violate the rules appropriately accountable.
        One avenue by which we instill character and ethics in our leaders
    is by teaching ethics education and character development in the
    College of Operational and Strategic Leadership at the Naval War
    College. Building on this effort and other guidance to the force, in
    January 2013, I approved the Navy Leader Development Strategy to
    promote leader character development, emphasize ethics, and reinforce
    Navy Core Values. This strategy provides a common framework to develop
    Navy leaders at every stage of a Sailor's career. We are implementing
    an integrated framework through a career-long continuum that develops
    our leaders with the same attentiveness with which we develop our
    weapons systems. The focus on character development in our professional
    training continuum has increased, and we employ techniques such as
    ``360 degree'' assessments and peer mentoring to help young officers
    better prepare to be commanding officers. The Navy Leader Development
    Strategy reemphasizes and enhances the leadership, ethics, and
    professional qualities we desire in our force.
        Family Readiness Programs.--Family readiness is fully integrated
    into our Navy's call to be ready. The critical programs which support
    our families are also overseen by the policy and resourcing lens of our
    21st Century Sailor Office. These programs and services assist Sailors
    and their families with adapting to and coping with the challenges of
    balancing military commitment with family life. Fleet and family
    support programs deliver services in four key areas: Deployment
    readiness, crisis response, career support and retention, and sexual
    assault prevention and response.
        This past year, our Family Advocacy program (FAP) has implemented
    the DOD Incident Determination Committee (IDC) & Clinical Case Staff
    Meeting (CCSM) model Navy-wide. This model ensures standardization and
    consistency in child abuse and domestic abuse decisionmaking. It also
    guarantees that only those with clinical expertise in child abuse and
    domestic abuse are involved in determining treatment plans.
        Other career and retention support services include the family
    employment readiness program, personal financial management, and the
    legislatively mandated Transition Goals, Plan, Success program to
    assist separating Sailors. Increased stress and longer family
    separations have amplified program demand and underlined the importance
    of these support programs and services to ensure the psychological,
    emotional and financial well-being of returning warriors and their
    families. Financial issues are still the number one cause of security
    clearance revocation and our financial counselors have noted an
    increase in the number of Sailors entering the Service with debt,
    including student loan debt. We continually monitor the environment for
    predatory lending practices targeting Service Members and families.
        Auditability.--To be good stewards of the funding appropriated by
    Congress, effective internal controls over our business operations and
    auditability of our outlays is essential. It remains our goal to
    achieve full financial auditability by the end of fiscal year 2017. Our
    near-term objective is to achieve audit readiness on the Department of
    the Navy's Schedule of Business Activity (SBA) in fiscal year 2014, and
    thus far, 8 of the 10 components of Navy's SBA have been asserted as
    audit ready. In the area of property management, the Department has
    asserted audit readiness for 7 of 13 property subclasses, and 4 of
    those have been validated as audit ready. Continuing resolutions and
    sequestration in fiscal year 2013 and fiscal year 2014 have had no
    measurable impact on our ability to meet the fiscal year 2014 SBA
    auditability mandate, but they have increased risk to our ability to
    meet the fiscal year 2017 full financial auditability requirement.
                                   conclusion
        We believe it is vital to have a predictable and stable budget to
    develop and execute an achievable program to conduct the 10 primary
    missions outlined in the DSG, and support the pillars and ``rebalance''
    called for in the QDR.
        PB-15 proposes the best balance of Navy capabilities for the
    authorized amount of funding. It sustains sufficient afloat readiness
    in today's Navy but accepts more risk while building a future fleet
    that is able to conduct full-spectrum operations. I remain deeply
    concerned that returning to BCA revised caps spending levels in fiscal
    year 2016 will lead to a Navy that would be too small and lacking in
    the advanced and asymmetric capabilities needed to conduct the primary
    missions required by our current guidance: The DSG and the QDR.

        Senator Durbin. Thanks, Admiral.
        General Amos, let me join in the chorus of gratitude for
    your service to our Nation, but let me also add, Bonnie, your
    wife, who was kind enough to host us when some of the committee
    members joined me for dinner at your residence at the Marine
    Corps Barracks. She was a terrific hostess that evening, and I
    am sure has been a great partner as you have served our Nation
    so well.
        So thank you very much for that, and we appreciate your
    testimony.
    STATEMENT OF GENERAL JAMES AMOS, COMMANDANT, UNITED
                STATES MARINE CORPS
        General Amos. Mr. Chairman, thank you very much for those
    kind words.
        And I will pass that to Bonnie as well. She's been a great
    teammate for 44 years, and so it will be an emotional end to
    the year and an end to my commandancy and my time there.
        So, Chairman Durbin, Chairwoman Mikulski, thank you for
    being here and making the effort to come this morning, ma'am.
        Vice Chairman Cochran, Senator Shelby, thank you again for
    coming this morning.
        And, members of the committee, I am pleased to appear
    before you to speak about your United States Marine Corps this
    morning.
        Since our founding in 1775, Marines have answered the
    Nation's call, faithfully protecting the American people and
    maintaining a world-class standard of military excellence.
        Nothing has changed. Nothing will change in the future.
        And yet, we find ourselves today at a strategic inflection
    point. After 12 years of war, we are drawing down our forces in
    Afghanistan, resetting our institution and what we have called
    reawakening the soul of the Corps.
        Today we are challenged by fiscal uncertainty that
    threatens both our capacity and our capabilities, forcing us to
    sacrifice our long-term health for near-term readiness.
        I have testified before this committee many times that
    despite these challenges, I remain committed to fielding the
    most capable and most ready Marine Corps the Nation can afford.
        Our greatest asset is the individual marine, the young man
    or woman who wears my cloth.
        Our unique role, as America's signature crisis-response
    force, is grounded in the legendary character and warfighting
    ethos of our people.
        As we reset and prepare for future battles, all marines are
    rededicating themselves to those attributes that carried
    marines across the wheat fields and into the German machine
    guns at Belleau Wood in March 1918; those same attributes that
    enabled the raw combat-inexperienced young Marines to
    courageously succeed against a determined enemy at America's
    first offensive operation in the Pacific, the attack at
    Guadalcanal on August 7, 1942; and lastly, those timeless
    strengths of character and gut courage that enabled marines to
    carry the day in an Iraqi town named Fallujah, and against a
    determined enemy in the Taliban strongholds of Marjah and
    Sangin.
        Your corps is rededicating itself to those simple, timeless
    attributes of persistent discipline; faithful obedience to
    orders and instructions; concerned and engaged leadership 24
    hours a day, 7 days a week; and strict adherence to standards.
        These ironclad imperatives have defined our corps for 238
    years. They will serve us well in the decades to come.
        As we gather here today, some 30,000 marines are forward-
    deployed around the world, promoting peace, protecting our
    Nation's interests, and securing our defense.
        But we do not do this alone. Our partnership with the Navy
    provides America an unmatched naval expeditionary capability.
    Our relationship with the Navy is a symbiotic one.
        My relationship with Admiral Jon Greenert, quite frankly,
    is unprecedented. This is why I share CNO's concerns about the
    impacts associated with a marked paucity of ships and
    shipbuilding funds.
        America's engagement throughout the future security
    environment of the next two decades will be naval in character,
    make no mistake about that. To be forward-engaged, and to be
    present when it matters most, we need capital ships. And those
    ships need to be loaded with United States Marines.
        Expeditionary naval forces are America's insurance policy.
    We are a hedge against the uncertain and unpredictable world.
    The Navy-Marine Corps team provides power projection from the
    sea, responding immediately to crises when success is measured
    in hours, not in days.
        From the super-typhoon that tragically struck the
    Philippines late last year, to the rescue of American citizens
    over Christmas in South Sudan, your forward-deployed naval
    forces were there. We carried the day for America.
        As the joint force draws down, and we conclude combat
    operations in Afghanistan, some argue that we are done with
    conflict. My view is different.
        As evidenced in the events currently unfolding in Central
    Europe, the world will remain a dangerous and unpredictable
    place.
        There will be no peace dividend for America, ladies and
    gentlemen, nor will there be a shortage of work for its United
    States Marines.

                               PREPARED STATEMENT

        Ladies and gentlemen, we will not do less with less. Quite
    frankly, we will do the same with less.
        In closing, you have my promise that we will only ask for
    what we need. We will continue to prioritize and make the hard
    decisions before ever coming before this committee.
        Once again, I thank the committee, your faithfulness to our
    Nation, your Navy forces, and your marines. And I am prepared
    to answer your questions.
        [The statement follows:]
                  Prepared Statement of General James F. Amos
                        america's crisis response force
        The United States Marine Corps is the Nation's crisis response
    force. Since our founding in 1775, Marines have answered the Nation's
    call, faithfully protecting the American people and maintaining a
    world-class standard of military excellence. Today we are at a
    strategic inflection point. Fiscal uncertainty has threatened both our
    capacity and capabilities, forcing us to sacrifice our long-term health
    for near-term readiness. Despite these fiscal challenges, we remain
    committed to fielding the most ready Marine Corps the Nation can
    afford. Around the globe Marines stand ready to engage America's
    adversaries or respond to any emerging crisis. Thanks to the support of
    Congress, the American people will always be able to count on the
    Marine Corps to fight and win our Nation's battles.
        America is a maritime nation: Its security, resilience, and
    economic prosperity are fundamentally linked to the world's oceans. Our
    naval forces serve to deter and defeat adversaries, strengthen
    alliances, deny enemies sanctuary, and project global influence. The
    amphibious and expeditionary components of our naval force allow us to
    operate with assurance in the world's littoral areas. The Marine Corps
    and the Navy are prepared to arrive swiftly from the sea and project
    influence and power when needed. Operating from the sea, we impose
    significantly less political burden on our partners and allies, while
    providing options to our Nation's leaders. We remain committed to the
    mission of assuring access for our Nation's forces and its partners.
        Forward deployed naval forces enable our Nation to rapidly respond
    to crises throughout the world. The ability to engage with partnered
    nations, through highly trained and self-sustaining forces, maximizes
    America's effectiveness as a military power. For approximately 8
    percent of the Department of Defense's (DOD) budget, the Marines Corps
    provides an affordable insurance policy for the American people and a
    highly efficient and effective hedge against global and regional
    tensions that cause instability. We provide our Nation's leaders with
    time and decision space by responding to today's crisis, with today's
    forces . . . TODAY.
    Naval Character
        We share a rich heritage and maintain a strong partnership with the
    United States Navy. Together we provide a fundamental pillar of our
    Nation's power and security--the ability to operate freely across the
    seas. Security is the foundation of our Nation's ability to maintain
    access to foreign markets and grow our economy through trade around the
    world. The Navy-Marine Corps relationship has never been better; we
    will continue to advance our shared vision as our Nation transitions
    from protracted wars ashore and returns its focus to the maritime
    domain.
        Throughout more than a decade of sustained operations ashore in
    Iraq, Afghanistan, and elsewhere, we continued to deploy thousands of
    Marines aboard amphibious warships around the globe. The Navy and
    Marine Corps remains postured to provide persistent presence and
    engagement, maintaining a constant watch for conflict and regional
    unrest. Well-trained Marine units embarked aboard U.S. Navy warships
    increase the Nation's ability to deter and defend against emerging
    threats. Our adaptability and flexibility provide unmatched
    capabilities to combatant commanders.
    Unique Roles and Missions
        The Marine Corps provides unique, sea-based capabilities to the
    joint force. Our forward deployed amphibious based Marines have long
    played a critical role across the full range of military operations. We
    assure littoral access and enable the introduction of capabilities
    provided by other military services, Government agencies,
    nongovernmental organizations, allies, and international partners. The
    stability and vitality of the global economic system is dependent on
    this capability, especially where our Nation's vital interests are
    challenged.
        The Marine Corps provides operating forces that are a balanced air-
    ground-logistics team. They are responsive, scalable and self-
    sustaining. As our Nation's middle-weight force, we must maintain a
    high state of readiness, able to respond wherever and whenever the
    Nation requires. Crisis response requires the ability to expand the
    expeditionary force after its introduction in theater. The Marine Air-
    Ground Task Force (MAGTF) modular structure lends itself to rapidly
    right sizing the force as the situation demands, to include a joint or
    combined force.
                     our commitment to the nation's defense
    Global Crisis Response
        At our core, the Marine Corps is the Nation's crisis response force
    and fulfilling this role is our top priority. We have earned a
    reputation as the Nation's most forward deployed, ready, and flexible
    force. Our performance over the past decade underscores the fact that
    responsiveness and versatility are always in demand. Marines formed the
    leading edge of the U.S. humanitarian response to earthquakes in
    Pakistan and Haiti, and disasters in the Philippines and Japan, all
    while fully committed to combat operations in Iraq or Afghanistan.
        During 2013, four Marine Expeditionary Units (MEUs) and their
    partnered Amphibious Ready Groups (ARGs) participated in overseas
    operations and exercises. These forward deployed amphibious forces--
    normally built around a three-ship amphibious squadron with 2,200
    embarked Marines--provided a uniquely trained and integrated task
    force, postured to immediately respond to emerging crises. The Marine
    Corps has placed increased emphasis over the past several years
    partnering with coalition nations. Through security cooperation
    activities we advance mutual strategic goals by building capacity,
    deterring threats, and enhancing our crisis response capabilities.
    Throughout the year, ARG-MEUs strengthened our relationships through
    major exercises and operations with partnered nations which include
    Saudi Arabia, Kuwait, United Arab Emirates, Jordan, Egypt, Qatar, Oman,
    India, Thailand, Australia, Japan and the Philippines.
        Super Typhoon Haiyan.--Typhoon Haiyan struck the Philippines on
    November 7, 2013 with winds gusting up to 195 mph, the fourth highest
    ever recorded. Even before the storm reached landfall, Marines and
    Sailors forward-based in Okinawa were preparing to respond. After
    returning to home port, elements of the 31st MEU embarked aboard USS
    Germantown and USS Ashland to support Typhoon Haiyan Humanitarian
    Assistance/Disaster Relief operations in the Philippines. Within eight
    hours, Marine Forces forward based in the Pacific Theater provided the
    initial humanitarian response. This effort was followed by a Marine
    Corps led Joint Task Force, to include Marine MV-22 and KC-130J
    aircraft that flew 1,205 sorties (totaling more than 2,500 flight
    hours), delivered more than 2,005 tons of relief supplies and evacuated
    18,767 Filipinos, 540 American citizens and 301 third country
    nationals. These efforts were closely coordinated on scene with the
    U.S. Agency for International Development's office of Foreign Disaster
    Assistance. With the long-standing partnership and trust built between
    our two nations, Marines were able to rapidly respond with critically
    needed capabilities and supplies in times of crisis. This operation
    underscores the point, that trust is established and nurtured through
    forward presence . . . trust cannot be surged.
        Special Purpose Marine Air-Ground Task Force Crisis Response (SP-
    MAGTF CR).--Forward positioned in Spain, SP-MAGTF CR Marines are
    trained and equipped to support a wide range of operations. This unit
    is unique amongst other crisis response forces because it possesses an
    organic aviation capability that allows for SP-MAGTF CR to self-deploy.
    This force is primarily designed to support U.S. and partner security
    interests throughout the CENTCOM and AFRICOM theaters of operation, to
    include Embassy reinforcement, noncombatant evacuation operations, and
    tactical recovery of aircraft and personnel. The MV-22's unprecedented
    agility and operational reach enable the SP-MAGTF CR to influence these
    theaters of operation in a matter of hours. In 2013, SP-MAGTF CR
    collaborated with local authorities to establish a presence that could
    rapidly respond to the full spectrum of contingencies within AFRICOM's
    AOR. SP-MAGTF CR is also involved in bilateral and multilateral
    training exercises with regional partners in Europe and Africa.
        Late last year, we witnessed the security situation deteriorate
    within South Sudan. Weeks of internal violence threatened to erupt into
    a civil war as populations were being driven from their homes. On short
    notice, 150 Marines from the SP-MAGTF CR flew aboard MV-22 Ospreys over
    3,400 miles non-stop to stage for future operations at Camp Lemonier,
    Djibouti on the Horn of Africa. The next day, Marines flew to Uganda to
    prepare for a potential noncombatant evacuation operation and to
    bolster our East Africa Response Force. In January, Marines aboard two
    KC-130J Hercules aircraft evacuated U.S. Embassy personnel from harm's
    way.
    Afghanistan
        Marines have been continuously at war in Afghanistan since 2001. In
    the past year, we have transitioned from counter-insurgency operations
    to training, advising, and assisting the Afghan National Security
    Forces (ANSF). With expanding capabilities and increased confidence,
    the ANSF is firmly in the lead for security in support of the
    Government of the Islamic Republic of Afghanistan throughout all of
    Helmand and Nimroz Provinces.
        Today, more than 4,000 active and reserve Marines are forward
    deployed in Regional Command South West (RC (SW)) and in full support
    of the Afghan National Police (ANP), and Afghan National Army (ANA). In
    2013, we reduced our coalition force advisory teams from 43 to 15, and
    we shifted our emphasis from tactical operations to Brigade-level
    planning, supply chain management, infrastructure management, and
    healthcare development. In January 2013, there were over 60 ISAF
    (principally U.S., UK, and Georgian) bases in RC (SW). Today only seven
    remain. In addition, we removed permanent coalition presence in 7 of 12
    districts with Marine forces located only in one remaining district
    center.
        Afghan district community councils currently operate in seven
    Helmand districts which represent 80 percent of the population. As a
    result, health and education services have markedly improved. With the
    presidential election approaching in April 2014, we are expecting a
    higher turnout than the previous presidential elections due to the
    population's increased understanding of the electoral process.
    Currently, there are 214 planned polling stations in Helmand Province.
    The upcoming election will be conducted with limited International
    Security Assistance Force (ISAF) military assistance.
    Asia-Pacific Rebalance
        As our Nation continues to shift its strategic focus to the Asia-
    Pacific, it is important to note that that the Marine Corps--
    specifically, III Marine Expeditionary Force (III MEF)--has been
    forward based there since the 1940s. Marines have a long history in the
    Pacific, replete with many hard-won victories. We are ideally suited to
    operate within this maritime region and we are adjusting our force lay-
    down to support the President's Strategic Guidance for the Department
    of Defense issued in January 2012. We remain on course to have 22,500
    Marines west of the International Date Line--forward based and
    operating within the Asia-Pacific theater.
        We have the experience, capabilities, and most importantly, the
    strategic relationships already in place within the region to
    facilitate the national security strategy. Marines forward deployed and
    based in the Asia-Pacific Theater conduct more than 70 exercises a
    year, all designed to increase interoperability with our regional
    partners, build theater security cooperation, and enhance prosperity
    and stability in this region. By strategically locating our forces
    across the region, we enable more active participation in cooperative
    security and prosperity. No forces are more suited to the Pacific than
    naval amphibious forces. We envision an Asia-Pacific region where our
    Marines' presence will continue to build upon the excellent cooperation
    with our regional partners and allies to advance our common interests
    and common values.
    Security Cooperation
        The Marine Corps supports all six Geographic Combatant Commands
    (GCC) with task-organized forces of Marines who conduct hundreds of
    Theater Security Cooperation (TSC) activities with the armed forces of
    more than 50 partner nations each year. Per the Defense Strategic
    Guidance, our forward-engaged Marines conducted TSC with a focus on
    building partner capacity, amphibious capability, interoperability for
    coalition operations, and assured access for U.S. forces. Overall, the
    Marine Corps participated in over 200 security cooperation engagements
    in 2013, including TSC exercises, bilateral exercises, and military-to-
    military engagements.
        In September 2013, the Commandant of the Marine Corps, Chief of
    Naval Operations, and Commandant of the Coast Guard signed the Maritime
    Security Cooperation Policy (MSCP). This tri-service policy prescribes
    a planning framework for Marine Corps, Navy, and Coast Guard
    headquarters, regional components, and force providers with the goal of
    achieving an integrated maritime approach to security cooperation in
    support of national security objectives.
        Black Sea Rotational Force (BSRF).--Forward postured in Romania,
    the BSRF engages partner nations and operates in multiple countries
    throughout the Black Sea-Eurasia region. Engagements included
    peacekeeping operations training events, technical skills
    familiarization events, and various professional symposia throughout
    the Caucasus region.
        SP-MAGTF Africa 13 (SP-MAGTF AF).--As a sub-component of SP-MAGTF
    CR, SP-MAGTF Africa 13 is forward based in Italy, consisting of a
    company-sized Marine element that engages with partnered countries in
    Africa. SP-MAGTF AF 13 focused on training African troops primarily in
    Burundi and Uganda, bolstered militaries attempting to counter groups
    affiliated with al-Qaeda operating across the Maghreb region, and
    provided security force assistance in support of directed Africa Union
    Mission in Somalia (AMISOM).
        Marine Rotational Force--Darwin (MRF-D).--In 2013, a company sized
    element of MRF-D Marines deployed to support PACOM requirements and
    emphasize the U.S. commitment to the Asia-Pacific region. During their
    stay in Darwin, Marines conducted bilateral training with the
    Australian Defense Forces. In conjunction with the 31st Marine
    Expeditionary Unit--from August through September 2013--MRF-D supported
    the bilateral Exercise KOOLENDONG at the Bradshaw Field Training Area
    in Australia to serve as a proof of concept in preparation for the
    expected arrival of 1,150 Marines in 2014. This next deployment--the
    first step of Phase II, expands the rotational force from company to
    battalion sized rotational units. The intent in the coming years is to
    establish a rotational presence of a Marine Air-Ground Task Force of up
    to 2,500 Marines. The presence of Marines in Australia reflects the
    enduring alliance and common security interests in the region and
    improves interoperability between the United States and Australia
                       fiscal year 2015 budget priorities
        For fiscal year 2015, the President's budget provides $22.8 billion
    in our baseline budget, down from our fiscal year 2014 budget of $24.2
    billion. This budget has been prioritized to support a highly ready and
    capable Marine Corps focused on crisis response. The capabilities we
    prioritized in this year's budget submission protect near-term
    readiness while addressing some shortfalls in facility sustainment,
    military construction, equipment recapitalization and modernization.
    The Marine Corps budget priorities for 2015 include:
        Amphibious Combat Vehicle.--The development and procurement of the
    Amphibious Combat Vehicle (ACV) is my top acquisition priority. The
    modern battlefield requires both highly mobile and armor-protected
    infantry forces. The ACV will be designed to provide the capabilities
    required to meet current and future amphibious operations. This program
    is critical to our ability to conduct surface littoral maneuver and
    project Marine units from sea to land in any environment; permissive,
    uncertain, or hostile. The Marine Corps requires a modern, self-
    deployable, survivable, and affordable amphibious vehicle as a once-in-
    a-generation replacement for the existing Amphibious Assault Vehicles,
    which have been in service for more than 40 years.
        Marine Aviation.--The Marine Corps continues to progress towards a
    successful transition from 13 types of aircraft to 6. This
    transformation of our aviation combat element will provide the Marine
    Corps and the future naval force with highly advanced fixed-wing, tilt-
    rotor, and rotary-wing platforms capable of operating across the full
    spectrum of combat operations. As the Marine Corps moves towards a
    future battlefield that is digitally advanced and connected, the F-35B/
    C Joint Strike Fighter's (JSF) fifth-generation capabilities will
    enable the collection, fusion, and dissemination of information to all
    elements of the MAGTF. Additionally, MV-22 Osprey vertical flight
    capabilities coupled with the speed, range, and endurance of fixed-wing
    transports, are enabling effective execution of current missions that
    were previously unachievable on legacy platforms.
        Modernization and sustainment initiatives are required to enhance
    the capabilities of Marine Aviation's legacy platforms to maintain
    warfighting relevance. Specifically, modernization and relevancy of F/
    A-18A-D Hornet and AV-8B Harrier aircraft are vital as the Marine Corps
    completes the transition to the F-35B Short Take-Off and Vertical
    Landing (STOVL) JSF in 2030. The F-35B is critical to our ability to
    conduct future combined arms operations in expeditionary environments.
        Resetting our Ground Equipment.--We have made significant strides
    in resetting our equipment after 12 years of wartime wear and tear. We
    are executing a reset strategy that emphasizes both our commitment to
    the American taxpayer and the critical linkage of balancing reset and
    readiness levels. Over 75 percent of the Marine Corps equipment and
    supplies in RC (SW) have been retrograded. The Marine Corps requires
    continued funding to complete the reset of equipment still being
    utilized overseas, to reconstitute home station equipment, and to
    modernize the force.
        The current rate of equipment returning from theater will allow the
    Corps to reset our ground equipment by 2017, but this will require the
    continued availability of Overseas Contingency Operations funding for
    fiscal year 2015 through fiscal year 2017 to support our planned
    schedule of depot level maintenance. We are not asking for everything
    we want; only what we need. We have consciously chosen to delay
    elements of modernization to preserve current readiness. These short-
    term solutions cannot be sustained indefinitely without cost to our
    future capabilities.
        Joint Light Tactical Vehicle (JLTV).--We remain firmly partnered
    with the U.S. Army in fielding a Joint Light Tactical Vehicle that
    lives up to its name, while also being affordable. The JLTV is needed
    to provide the Marine Corps with modern, expeditionary, light-combat
    and tactical mobility while increasing the protection of our light
    vehicle fleet. By replacing only a portion of our High Mobility
    Multipurpose-Wheeled Vehicle (HMMWV) fleet, the JLTV will help to
    preserve our expeditionary capability with a modern level of protected
    mobility.
        Military Construction (MILCON).--For fiscal year 2015, the Marine
    Corps is requesting $331 million for MILCON programs to support
    warfighting and critical infrastructure improvements. This fiscal year
    2015 budget represents a 61-percent funding level decrease from our
    fiscal year 2014 request of $842 million and a significant decrease
    from the Marine Corps' previous 6-year average. Our primary focus is
    toward the construction of Joint Strike Fighter (F-35B) and Osprey (MV-
    22) facilities that support unit relocations to Hawaii and Japan. We
    have prioritized environmental and safety corrections such as water
    plant improvements and emergency communication capabilities. Funding is
    also included for the continued consolidation of the Marine Corps
    Security Force Regiment and its Fleet Antiterrorism Security Teams from
    the Norfolk area to Yorktown, Virginia. Finally, we are providing
    funding to continue the renovation, repairs and modernization of junior
    enlisted family housing units located in Iwakuni, Japan.
    Readiness and Risk in the Fiscal Year 2015 Budget
        The Marine Corps remains committed to building the most ready force
    our Nation can afford, but this comes at a risk. As our Nation
    continues to face fiscal uncertainty, the Marine Corps is responsibly
    building a relevant and lean force for the 21st century. The emerging
    security threats to our Nation demand that America has a globally
    responsive, truly expeditionary, consistently ready, maritime crisis
    response force.
        While today's fiscal constraints may make us a leaner force, we are
    committed to maintaining our readiness--the real measure of our ability
    to meet unforeseen threats. Our innovative spirit, strong leadership,
    and enduring stewardship of the Nation's resources will guide our
    modernization efforts. We will invest in our Marines as they are the
    foundation of the Marine Corps. We will continue to reset our
    warfighting equipment and reconstitute our force after more than a
    decade of combat operations. We will maintain our investments in the
    research and development of new equipment and technologies that ensure
    our Nation's crisis response force remains relevant and ready well into
    the 21st century.
        In a fiscally constrained environment, it is critical that we
    maximize every taxpayer dollar entrusted to the Marine Corps. Our
    ability to efficiently manage our budget is directly related to our
    ability to properly account for every dollar. To that end, for the
    first time, the Marine Corps achieved an ``unqualified'' audit opinion
    from the DOD Inspector General. We became the first military service to
    receive a clean audit, which provides us with the ability to have a
    repeatable and defendable process to track, evaluate and certify each
    dollar we receive. We are particularly pleased that this audit will
    give the American people confidence in how the Marine Corps spends
    taxpayer money.
        As fiscal realities shrink the Department of Defense's budget, the
    Marine Corps has forgone some important investments to maintain near-
    term readiness. To protect near-term readiness, we are taking risks in
    our infrastructure sustainment and reducing our modernization efforts.
    These trades cannot be sustained long term and portend future increased
    costs. As America's crisis response force, however, your Corps does not
    have a choice. We are required to maintain a posture that facilitates
    our ability to deploy today. As we continue to face the possibility of
    further budget reductions under sequestration, we will be forced into
    adopting some variation of a less ready, tiered status, within the next
    few years.
        As we enter into fiscal year 2015 and beyond, we are making
    necessary trade-offs to protect near-term readiness, but this comes at
    a risk. Today, more than 60 percent of our non-deployed units are
    experiencing degraded readiness in their ability to execute core
    missions. Approximately 65 percent of non-deployed units have equipment
    shortfalls and 35 percent are experiencing personnel shortfalls
    necessitated by the effort to ensure that forward deployed units are
    100 percent manned and equipped. The primary concern with out-of-
    balance readiness of our non-deployed operating forces is an increased
    risk in the timely response to unexpected crises or large-scale
    contingencies. The small size of the Marine Corps dictates that even
    non-deployed units must remain ready to respond at all times as they
    are often the Nation's go-to forces when unforeseen crises occur.
        The risk to the Nation is too great to allow the readiness of the
    Marine Corps to be degraded. Through Congressional support we will
    continue to monitor our Five Pillars of Readiness: High Quality People,
    Unit Readiness, Capability and Capacity to Meet the Combatant Command
    Requirements, Infrastructure Sustainment, and Equipment Modernization.
    Our current funding levels protect current readiness; however, it does
    so at the expense of the infrastructure sustainment and equipment
    modernization efforts, which are keys to protecting future readiness.
    This is a rational choice given the current fiscal situation, but it is
    not sustainable over time. Ignoring any of these areas for long periods
    will hollow the force and create unacceptable risk for our national
    defense.
                            shared naval investments
        Naval forces control the seas and use that control to project power
    ashore. The fiscal and security challenges we face demand a seamless
    and fully integrated Navy-Marine Corps team. Achieving our shared
    vision of the future naval force requires strong cooperation. Now more
    than ever, the Navy-Marine team must integrate our capabilities to
    effectively protect our Nation's interests.
        Amphibious Warships.--The force structure to support the deployment
    and employment of two Marine Expeditionary Brigades (MEBs)
    simultaneously is 38 amphibious warfare ships. However, considering
    fiscal constraints, the Navy and Marine Corps have agreed to sustain a
    minimum of 33 amphibious warfare ships. The 33-ship force accepts risk
    in the arrival of combat support and combat service support elements of
    a Marine Expeditionary Brigade (MEB), as well as meeting the needs of
    the naval force within today's fiscal limitations.
        The LX(R) program is the next major amphibious ship investment
    necessary to replace our aging fleet of LSDs. As we move forward with
    this program we should take advantage of the knowledge developed in
    building the LPD 17 class of ship. It is imperative that this is a
    warship capable of delivering Marines to an objective in a non-
    permissive environment. Replacing the LSD with a more capable platform
    with increased capacity for command and control, aviation operations
    and maintenance, vehicle storage, and potential for independent
    operations gives the Geographic Combatant Commander a powerful and
    versatile tool, and permit independent steaming operations.
        Maritime Prepositioning Force (MPF).--The second method of
    deployment for the Marine Expeditionary Brigade is the MPF, which
    combines the speed of strategic airlift with the high embarkation
    capacity of strategic sealift. The two remaining Maritime
    Prepositioning Ship Squadrons (MPSRONs), each designed to facilitate
    the deployment of one MEB, carry essential combat equipment and
    supplies to initiate and sustain MEB operations for up to 30 days. With
    the introduction of the seabasing enabling module, which includes Large
    Medium Speed Roll-On/Roll-Off (LMSR) vessels, Dry Cargo and Ammunition
    ships (T-AKE) and Mobile Landing Platforms (MLP), MPSRON-supported
    forces will have enhanced capability to operate from a seabase.
        Ship-to-Shore Connectors.--Ship-to-shore connectors move personnel,
    equipment and supplies, maneuvering from a seabase to the shoreline.
    These are critical enablers for any seabased force. Modern aerial
    connectors, such as the MV-22 Osprey extend the operational reach of
    the seabased force and have revolutionized our ability to operate from
    the sea. The Navy is in the process of modernizing the surface
    connector fleet by replacing the aging Landing Craft Air Cushion (LCAC)
    and the 50-year-old fleet of Landing Craft Utility (LCU). Continued
    funding of the maintenance and extended service life programs of our
    existing fleet of connectors as well as investment in recapitalization
    of the surface connector capability through procurement of the Ship-to-
    Shore Connector (SSC) and Surface Connector will be critical for future
    security environments. We need to continue to push science and
    technology envelopes to develop the next generation of connectors.
                    our vision: redesigning the marine corps
        As we drawdown the Marine Corps' active component end strength from
    war time levels of 202,000 Marines, we have taken deliberate steps to
    construct a force that we can afford to operate and sustain in the
    emerging fiscal environment. Over the past 3 years, we have undertaken
    a series of steps to build our current force plan. In 2010, our Force
    Structure Review Group utilized the Defense Strategic Guidance and
    operational plans to determine that the optimum size of the active
    component Marine Corps should be a force of 186,800. Under the
    constraints of the 2011 Budget Control Act and the 2012 Defense
    Strategic Guidance, we estimated that a force of 182,100 active
    component Marines could still be afforded with reduced modernization
    and infrastructure support. More recently, as we entered into the
    Quadrennial Defense Review (QDR), we came to the difficult conclusion
    that, under the threat of continued sequestration or some variant, an
    active duty force of 175,000 Marines (175K) is what our Nation can
    afford, along with very steep cuts to USMC modernization accounts and
    infrastructure. This significantly reduced force is a ``redesigned''
    Marine Corps capable of meeting steady state requirements. We will
    still be able to deter or defeat aggression in one region, however with
    significant strain on the force and increased risk to mission
    accomplishment.
        The redesigned force is built to operate using the familiar Marine
    Air-Ground Task Force-construct, but it places greater emphasis on the
    ``middleweight'' Marine Expeditionary Brigades by establishing standing
    MEB Headquarters. These MEB Headquarters will be prepared to serve as a
    ready crisis response general officer-level command element for the
    joint force. The redesigned force will deploy Special Purpose Marine
    Air Ground Task Forces (SP-MAGTF) and Marine Expeditionary Units (MEU)
    to provide combatant commanders ready forces for a broad range of
    missions from forward presence to crisis response.
        Maintaining a high state of readiness within the current and near-
    term fiscal climate will be challenging for Marines and their
    equipment. For example, the desired 186.8K force supported a 1:3
    deployment-to-dwell ratio to meet emerging steady state demands. A
    redesigned force of 175K reduces that to a 1:2 dwell ratio for our
    operational units during a peacetime environment. This 1:2 ratio is the
    same operational tempo we have operated with during much of the past
    decade while engaged in combat and stability operations in Iraq and
    Afghanistan.
        The redesigned force size implements the Strategic Choices
    Management Review (SCMR) directed 20 percent headquarters reduction,
    and it includes the elimination of one 3-star Marine Expeditionary
    Force Headquarters. Our ground forces will be reduced by one Regimental
    Headquarters and eight battalions (six infantry, two artillery), as
    well as a reduction of an additional 27 companies or batteries. Our
    aviation forces will be reduced by three Group Headquarters and 13
    squadrons. Our logistics forces will be reduced by 3,294 Marines (14
    percent) and one battalion while conducting an extensive reorganization
    to gain efficiencies from reduced combat service support resources. In
    ground force terms, our aggregate cuts across the force comprise a
    reduction in nearly a Marine Division's worth of combat power.
        The redesigned force will retain the ability to generate seven
    rotational MEUs, with the capacity to deploy one from the East Coast,
    one from the West Coast, and one from Okinawa every 6 months. New
    Special Purpose MAGTF (SP-MAGTF) force structure responds to greater
    demand for multi-role crisis response forces in several Geographic
    Combatant Commands under the so-called ``New Normal'' security
    environment.
        In support of the rebalance to the Pacific, we prioritized our
    Pacific theater forces and activities in the new force structure.
    Despite end strength reductions, III Marine Expeditionary Force--our
    primary force in the Pacific--remains virtually untouched. We also
    restored Pacific efforts that were gapped during Operation Enduring
    Freedom, including multiple exercises and large parts of the Unit
    Deployment Program. A rotational presence in Darwin, Australia also
    expands engagement opportunities and deterrence effects.
        In support of CYBERCOM and in recognition of the importance of
    cyberspace as a warfighting domain, we are growing our cyberspace
    operations forces organized into a total of 13 teams by the end of
    2016. The teams will provide capabilities to help defend the Nation
    from cyber-attack, provide support to Combatant Commanders, and will
    bolster the defenses of DOD information networks and the Marine Corps
    Enterprise network.
        Lastly, the Marine Corps remains fully committed to improving
    Embassy security by adding approximately 1,000 Marine Corps Embassy
    Security Guards (MCESG) as requested by Congress. The redesigned force
    structure consists of the Marines necessary to maintain our steady-
    state deployments and crisis-response capabilities in the operating
    forces as well as the additional Marines for MCESG. We have absorbed
    new mission requirements while reducing our overall force size.
    Expeditionary Force 21
        Expeditionary Force 21 (EF 21) is the Marine Corps' capstone
    concept that establishes our vision and goals for the next 10 years and
    provides a plan for guiding the design and development of the future
    force. One third of the Marine Corps operating forces will be forward
    postured. These forces will be task-organized into a greater variety of
    formations, capable of operating from a more diverse array of ships
    dispersed over wider areas, in order to meet the Combatant Commanders'
    security cooperation and partner engagement requirements. In the event
    of crises, we will be able to composite these distributed formations
    into larger, cohesive naval formations.
        Expeditionary Force 21 will inform future decisions regarding how
    we will adjust our organizational structure to exploit the value of
    regionally focused forces. A fixed geographic orientation will
    facilitate Marine Commanders and their staffs with more frequent
    interactions with theater- and component-level organizations,
    establishing professional bonds and a shared sense of the area's
    challenges and opportunities.
        Expeditionary Force 21 provides the basis for future Navy and
    Marine Corps capability development to meet the challenges of the 21st
    Century. The vision for Expeditionary Force 21 is to provide guidance
    for how the Marine Corps will be postured, organized, trained, and
    equipped to fulfill the responsibilities and missions required around
    the world. Through Expeditionary Force 21 we intend to operate from the
    sea and provide the right sized force in the right place, at the right
    time.
                                the reawakening
        As we drawdown our force and focus the Marine Corps toward the
    future, we see an opportunity to re-set our warfighting institution and
    foster a Reawakening within our Corps. For the past 12 years of war,
    Marines have performed heroically on the battlefield. In Iraq and
    Afghanistan, Marines have carried on the Corps' legacy of warfighting
    prowess, and every Marine should be proud of that accomplishment. But
    as the preponderance of our Marine forces return from Afghanistan and
    we are focusing our efforts on the foundations of discipline,
    faithfulness, self-excellence and concerned leadership that have made
    us our Nation's premier, professional fighting force. This is the time
    to reset and prepare for future battles.
    Focus on Values
        There is no higher honor, nor more sacred responsibility, than
    becoming a United States Marine. Our record of accomplishment over a
    decade of conflict will be in vain if we do not adhere to our core
    values. Our time honored tradition and culture bears witness to the
    legions of Marines who have gone before and who have kept our honor
    clean. Marine Corps leadership has long recognized that when resetting
    the force following sustained combat, Marines must embrace change. We
    are mindful of the many challenges that lie ahead; there is much work
    left to be done.
        Our purposeful and broad-range efforts to reset the Corps have to
    be successful. We must retain our focused observance to the basic
    principles and values of our Corps. We refer to them as the soul of our
    Corps. As such, all Marines are rededicating themselves to persistent
    discipline; faithful obedience to orders and instructions; concerned
    and engaged leadership; and strict adherence to standards. These iron-
    clad imperatives have defined our Corps for 238 years. As we reset and
    Reawaken the Corps, our focus on the individual soul of the Corps is
    crucial.
        The Marine Corps is fully committed to improve diversity and
    opportunity for the men and women who wear our uniform and we are
    actively seeking innovative solutions to improve our Corps. Over the
    last year, I have personally sought out successful women leaders in the
    corporate sector to help us better understand how they are achieving
    success in the areas of diversity, inclusion and integration of women
    in the workplace. This has paid immeasurable dividends, as we have
    gained a better appreciation for the dynamics on how to address and
    positively affect culture change within our ranks.
    Marine Corps Force Integration
        The Marine Corps continues its deliberate, measured, and
    responsible approach to researching, setting conditions, and
    integrating female Marines in ground combat arms Military Occupational
    Specialties (MOS) and units. We welcome the chance to broaden career
    opportunities for all Marines that the Secretary of Defense's
    overturning of the Direct Ground Combat Assignment Rule offers us.
    Beginning in 2012, we assigned qualified female Marine officers and
    Staff Non-Commissioned Officers (SNCO) to 21 previously closed combat
    arms battalions in the assault amphibian, tank, artillery, low-altitude
    air defense and combat engineer fields. Since the elimination of the
    assignment policy restriction last year, we began conducting infantry-
    specific research by providing an opportunity for female officer
    volunteers to attend the Infantry Officer Course (IOC) following
    completion of initial officer training at The Basic School.
        In 2013, we continued this infantry-specific research by providing
    an opportunity for enlisted female Marine volunteers to attend the
    Infantry Training Battalion (ITB) following graduation from recruit
    training. As a result of these assignment and early training
    assessments, the Marine Corps currently offers opportunities to female
    Marines in 39 of 42 occupational fields representing over 90 percent of
    our primary individual MOSs and in more than 141,000 positions world-
    wide. Know that your Marine Corps will continue to maintain high levels
    of combat readiness, while integrating female Marines into previously
    closed occupational fields and units to the maximum extent possible. We
    will continue to conduct the research and assessment of these
    integration efforts to ensure all Marines are provided an equitable
    opportunity for success in their chosen career path.
    Sexual Assault Prevention and Response
        Sexual assault is criminal behavior that has no place in our Corps;
    we are aggressively taking steps to eradicate it. Over the past 2
    years, we have tackled the sexual assault problem head on and have seen
    measurable improvements in three specific areas--prevention, reporting,
    and offender accountability.
        The Marine Corps continues to implement its Sexual Assault
    Prevention and Response Campaign Plan. Launched in June 2012, the SAPR
    Campaign Plan called for large-scale institutional reforms, to include
    the implementation of SAPR training programs on an unprecedented scale
    and frequency. This includes the continued refinement of prevention
    training Corps-wide, while strengthening capabilities for victim care,
    offender accountability, and program assessment. Our reforms have
    yielded many positive results that affect Marines on an individual
    level, while steadily transforming the Corps into a leading institution
    in both preventing and responding to this crime. The most promising
    result of the Campaign Plan thus far has been the continued rise in
    reporting.
        In fiscal year 2013, reports of sexual assault in the Marine Corps
    increased by 86 percent continuing a trend started in fiscal year 2012,
    which saw a 31 percent reporting increase. In addition, 20 percent of
    all fiscal year 2013 reports were made for incidents that occurred
    prior to the victim joining the Corps; 17 percent were made for
    incidents that took place over 1 year ago. With sexual assault being a
    historically under-reported crime, we believe that these trends speak
    directly to the trust and confidence that Marines have in their
    immediate commanders and the overall Marine Corps' program. These
    encouraging developments suggest that our efforts are working to
    increase awareness of SAPR resources and to establish a healthy
    environment of respect and dignity where victims feel confident in
    coming forward.
        With this increased sexual assault reporting, I anticipated an
    increased demand within the military justice system. Consistent with
    this prediction, between fiscal year 2012 and fiscal year 2013, the
    number of child and adult sex offense prosecutions increased from 59 to
    119. The number of those cases that were contested increased by over
    160 percent. These numbers reinforce the need to continue building and
    manning a first-rate legal practice in the Marine Corps, comprised of
    quality judge advocates and legal service specialists, that anticipates
    and adapts to evolving legal challenges.
        In 2012, I restructured the model for the delivery of legal
    services in the Marine Corps in order to elevate the practice of law
    and better handle complex cases, such as sexual assaults. This new
    model does two key things: (1) it centralizes supervision of the
    military law practice; and (2) it puts more competent and experienced
    attorneys in charge of the military justice system. Without question,
    the restructuring of our legal community dramatically improved our
    performance in prosecuting, defending, and judging sexual assault and
    other complex trials. I am committed to reinforcing the success gained
    by this reorganization.
        We are continuing to evaluate and assess the new demands placed on
    our military justice system and our legal community. These include the
    creation and expansion of the Victims' Legal Counsel Organization
    (VLCO) and the extension of the requirement to provide military justice
    experts to the Office of Military Commissions (OMC). To meet these
    increasing demands and new legislative initiatives affecting our
    justice system, I have directed an internal review of our retention and
    assignment policies to ensure we can continue to operate a first class
    military justice system. This review will have two goals. In the short
    term, we must ensure we have a sufficient number of qualified judge
    advocates to confront the immediate requirements. In the long term, we
    must ensure that judge advocates serve in assignments that will
    maximize their military justice expertise, while maintaining their
    credibility and skills as unrestricted Marine Officers, to include
    operational law and traditional Marine Corps leadership assignments.
    Recruiting and Retaining High Quality People
        We make Marines, win battles, and return quality citizens back to
    their homes across America, citizens who, once transformed, will be
    Marines for life. Your Corps must be comprised of the best and
    brightest of America's youth. To operate and succeed in volatile and
    complex environments, Marines must be physically fit, morally strong,
    and possess the intelligence required to make good decisions and
    operate advanced weapon systems. It is a complex and ever-evolving
    profession.
        The Marine Corps utilizes a variety of officer and enlisted
    recruiting processes that stress high mental, moral, and physical
    standards. Additionally, all processes are continuously evaluated and
    improved to ensure that recruits meet or exceed the highest standards
    possible. Retaining the best and most qualified Marines is accomplished
    through a competitive career designation process for officers, and a
    thorough evaluation process for enlisted Marines, both of which are
    designed to measure, analyze, and compare our Marines' performance,
    leadership and accomplishments.
    Civilian Marines
        Our civilian Marines serve alongside our Marines all around the
    world. Our civilian Marine workforce remains the leanest of all
    services with a ratio of one civilian to every 10 active duty Marines
    (1:10). Additionally, our civilian labor represents less than 5 percent
    of the Marine Corps' total Operations and Maintenance (O&M) budget.
    More than 95 percent of our civilians are located outside the Pentagon
    at our bases, stations, depots and installations. Civilian Marines
    provide stability in our training and programs when our Marines rotate
    between units, demonstrating that our ``best value'' for the defense
    dollar applies to the total force.
        The Marine Corps supports measures that enhance consistency,
    efficiency and cost effectiveness of our workforce. Since 2009, we have
    restrained growth by prioritizing civilian workforce requirements.
    Additionally, we have realigned resources to retain an affordable and
    efficient workforce. In reaction to Defense Departmental reductions, we
    stood up an Executive Steering Group to determine how to minimize
    stress to our workforce. As we move forward we will continue to keep
    faith with our All-Volunteer Force of Federal civilians.
                                    summary
        Marines are key components to the range of military missions our
    national security demands. We are proud of our reputation for frugality
    and remain one of the best values for the defense dollar. In these
    times of budget austerity, the Nation continues to hold high
    expectations of its Marine Corps, and our stewardship of taxpayer
    dollars. The Marine Corps will continue to meet the needs of the
    Combatant Commanders as a strategically mobile force optimized for
    forward-presence, and crisis response.
        As we continue to work with Congress, the Department of the Navy,
    and the Department of Defense, your Marine Corps remains focused on
    today's fight and the Marines in harm's way. The United States Marine
    Corps will remain the Nation's premier crisis response force. We will
    remain most ready, when the Nation is least ready . . . always faithful
    to our Marines, Sailors and families.

        Senator Durbin. Thanks, General Amos.
        Vice Admiral Braun.
    STATEMENT OF VICE ADMIRAL ROBIN BRAUN, CHIEF, UNITED
                STATES NAVY RESERVE
        Admiral Braun. Thank you. Chairman Durbin, Madam Chairwoman
    Mikulski, Vice Chairman Cochran, and distinguished members of
    the committee: Thank you for the opportunity to appear before
    you today on behalf of the 61,000 Navy Reserve sailors from
    communities across America who serve our Navy.
        Today's Navy Reserve is a fully aligned and integrated
    element of the Navy Total Force. Our sailors bring skill sets
    that have been honed by both military and civilian training. It
    is this depth and breadth of experience unique to the citizen
    sailor that enhances operational readiness and strengthens our
    force.
        Since 9/11, our operational support has included over
    70,000 mobilizations of Navy Reserve sailors. At this moment,
    almost 3,500 Reserve sailors are mobilized across the globe.
        These sailors provide unit-level surge capacity in support
    of combatant commander requirements, such as our Reserve Seabee
    battalions that are on the ground now in Afghanistan.
        Reserve sailors also shoulder the majority of the Navy's
    Individual Augmentation commitment, and fill critical at-sea
    billets where needed, such as onboard the USS Ponce, an Afloat
    Forward Staging Base.
        At home, Reserve sailors serve as instructors onboard Naval
    Station Great Lakes, molding the Navy's newest recruits into
    sailors, and in the Naval Air Training Command, honing the
    technical skills of our best and brightest.
        They bring experience and expertise to evolving programs,
    like unmanned systems and cyber-operations, and to new missions
    such as the Reserve Female Support Technicians, who deploy with
    our SEAL teams.
        The Navy Reserve is the sole provider of the Navy's organic
    airlift. Flexibility, efficiency, and responsiveness are what
    make our air logistics fleet a primary enabler for the Navy's
    forward-presence in every corner of the globe.
        Our C-40 cargo aircraft deliver where and when it matters,
    removing combat-essential aircraft parts to CENTCOM (Central
    Command), to transporting entire LCS (littoral combat ship)
    crews to PACOM (Pacific Command).
        On any given day, approximately 25 percent of the Navy
    Reserve is providing operational support. Our citizen sailors
    are Mayo Clinic neurosurgeons that have used their expertise to
    allow wounded warriors to walk again. They are corporate I.T.
    professionals who use their cutting-edge skills to train the
    fleet in cyber-protection. They are police officers, engineers,
    airline pilots, and business leaders from across America.
        The value they bring in terms of civilian and military
    experience, operational capability and capacity, and overall
    maturity, is substantial.

                               PREPARED STATEMENT

        The President's budget leverages the unique advantages
    found in the Reserve component. In fact, of the Navy's total
    military personnel cost, our portion is just over 6 percent,
    yet we comprise 15 percent of the Navy's total end-strength.
        On behalf of our Reserve sailors, I would like to again
    offer my sincere thanks for the committee's ongoing support and
    dedication. I look forward to your questions. Thank you.
        [The statement follows:]
               Prepared Statement of Vice Admiral Robin R. Braun
        Chairman Durbin, Ranking Member Cochran, and distinguished members
    of the subcommittee: Thank you for this opportunity to present an
    update on the United States Navy Reserve. I have had the honor of
    leading over 61,000 dedicated Reserve Sailors over the past year and a
    half, and I look forward to sharing my thoughts with you on their
    strategic and operational importance as a part of the Navy's Total
    Force. Navy Reserve Sailors live and serve in every State and territory
    and are also deployed forward at sea and ashore to every theater. I am
    honored to appear here today to represent them and on their behalf
    would like to extend my heartfelt thanks for the support you continue
    to provide.
        Next spring, we will recognize a significant milestone as we
    celebrate the 100th anniversary of the Navy Reserve. Our beginnings
    actually predate 1915, as citizen Sailors augmented the Continental
    Navy during the first days of our Republic. Our role expanded during
    WWII, a conflict in which five future U.S. presidents served in the
    Navy Reserve. Today's Navy is structured and operating as a fully
    aligned and integrated Total Force where the Reserve Component (RC)
    provides critical capability and surge support at tremendous value. The
    Reserve Component accounts for approximately 15 percent of the Navy's
    military end strength at just over 6 percent of the Navy's total
    military personnel cost.
        Every year in the planning, programming and budgeting process, Navy
    leadership analyzes force structure and capabilities. Where periodic
    and predictable missions align with operational prudence, the Navy
    tasks the Reserve Component, in whole or in part, with execution of
    these missions. Reserve Sailors are used in augmenting, mirroring, or
    complementary roles depending on the type of mission, required response
    timeline, and associated costs.
        In January 2014, we published our annual Navy Reserve Strategic
    Plan, embodying concepts that are in alignment with the Chief of Naval
    Operations' Sailing Directions. This plan also outlines the Navy
    Reserve's mission, vision, and strategic focus areas:
          Mission.--The mission of the Navy Reserve is to deliver strategic
            depth and operational capability to the Navy, Marine Corps, and
            Joint Forces.
          Vision.--The Navy Reserve provides essential naval warfighting
            capabilities and expertise, strategically aligned with mission
            requirements--valued for our readiness, innovation, and
            agility.
          Strategic Focus Areas.--Deliver a Ready and Accessible Force;
            Provide Valued Capabilities; and Enable the Service of Our
            Sailors and Civilians.
        The Navy Reserve Strategic Focus areas are purposefully derived
    from the CNO's Tenets: Warfighting First, Operate Forward, and Be
    Ready. As an integral part of the Navy, we continue to be fully
    committed to these guiding principles and focus our resources to align
    with the CNO's strategic vision. The Navy Reserve routinely and
    deliberately focuses on Total Force alignment and integration with the
    Active Component (AC). The result is a Navy manned by Active and
    Reserve Shipmates serving steadfastly alongside each other--Sailors who
    have distinct skills and strengths, but whose commitment and patriotism
    are indistinguishable.
            warfighting first: deliver a ready and accessible force
        Reserve Sailors are deployed in every theater supporting the
    ability to deter, influence and win during this era of uncertainty.
    Since 11 September 2001, the Navy Reserve has completed 70,060
    mobilizations in support of contingency operations around the world.
    These requirements were filled by 54,476 Selected Reserve Sailors, with
    22 percent (12,218) supporting multiple mobilizations. In fiscal year
    2013, 4,360 Sailors were mobilized in support of Global Force
    Management Allocation Plan (GFMAP) Combatant Commander (CCDR)
    requirements--a level of operational support that constitutes 78
    percent of the Navy's Individual Augmentation (IA) effort. As U.S.
    force levels adjust in Afghanistan, the Navy Reserve will mobilize to
    fill most of the remaining IA requirements, allowing AC Sailors to fill
    critical sea duty billets. In fiscal year 2014, we estimate 2,650
    Reserve Sailors will be mobilized to support 81 percent of the Total
    Force IA commitment.
        On any given day, approximately 25 percent of Sailors serving in
    the Navy Reserve are providing operational support to AC commands. Our
    Reserve Force remains flexible, responsive, and innovative--attributes
    that will continue to provide a solid foundation for the Navy's focus
    on putting Warfighting First. The President's budget for fiscal year
    2015 (PB-15) will allow the Reserve Component to continue to provide
    the following operational capabilities:
          Expeditionary.--Mirroring AC force structure in the RC provides
            surge capability that increases Total Force capacity. Sailors
            assigned to Navy Expeditionary Combat Command (NECC) represent
            the single largest community of Sailors mobilized in 2013. They
            have served brilliantly in the U.S. Central Command (CENTCOM)
            area of responsibility (AOR) conducting a variety of missions.
            RC Seabees serve across Afghanistan providing critical combat
            construction support and conducting training missions building
            partner nation capacity. Seasoned RC Sailors in our Seabee
            Battalions bring the added benefits of valuable civilian skill
            sets, experience, and maturity. Navy Expeditionary Logistics
            Support Group supports the multi-modal retrograde of rolling
            stock, containers, and equipment from Afghanistan to ports in
            Kuwait, United Arab Emirates, Jordan, and Oman. Coastal
            Riverine Squadrons provide command and control and waterside/
            landward protection to U.S. Navy installations and other
            designated high-value assets in selected CENTCOM and U.S.
            Africa Command (AFRICOM) ports.
          Naval Special Warfare (NSW).--SEAL Teams 17 and 18 provide
            Special Operations capabilities to CCDRs by deploying SEAL,
            Special Warfare Combatant Craft (SWCC) and combat service
            support personnel to support Theater Special Operations
            Commands. Of specific note, the role of women in the NSW
            community is expanding. Reserve Female Support Technicians are
            a vital augment to Navy SEAL Teams and are currently deployed
            to Afghanistan. The maturity, continuity, and expertise of our
            Reserve Sailors provide a unique capability for the NSW
            community as these Sailors operate throughout every CCDR AOR.
          Rotary Wing Aviation.--The Reserve Component provides rotary wing
            squadrons that deliver key capabilities to the fleet and
            Combatant Commanders. HSC-84 and 85 currently provide standing
            crisis response detachments in support of Naval Special Warfare
            and joint special operations forces in the CENTCOM and PACOM
            AORs. HSL-60 is the Navy Reserve's only Light Airborne Multi-
            Purpose System (LAMPS) Mark-III squadron and deploys SH-60B
            helicopters aboard surface combatants in support of fleet
            requirements. Helicopter Mine Countermeasure Squadrons, HM-14
            and HM-15, are AC squadrons that employ a composite AC/RC force
            structure. Flying the MH-53E Super Stallion, their rapidly
            deployable airborne mine countermeasures capability is
            necessary for crisis response to any location in the world
            where a mine threat may exist.
          Maritime Patrol and Reconnaissance Aviation.--Reserve Maritime
            Patrol squadrons (VP-62 and VP-69) flying P-3 Orion aircraft
            have been mobilized and deployed to meet PACOM GFMAP
            requirements. Fulfilling operational commitments normally met
            by AC units, this forward presence is helping to enable the
            Maritime Patrol and Reconnaissance Force (MPRF) transition to
            the P-8 Poseidon. The squadrons operate in support of missions
            including Humanitarian Assistance/Disaster Relief (HA/DR),
            Anti-Submarine Warfare, and Intelligence, Surveillance, and
            Reconnaissance (ISR) sorties throughout the Western Pacific
            region.
          Navy Air Logistics.--The Navy Unique Fleet Essential Airlift
            (NUFEA) community provides the air logistics capability that
            resides exclusively in the Reserve Component. This mission is
            conducted using C-40A, C-130T, C-9B, and C-20G cargo and
            passenger aircraft. NUFEA is a force multiplier providing
            flexible, responsive, and efficient logistics capability to
            support the Navy's forward presence around the globe. In fiscal
            year 2013 NUFEA transported 23 million pounds of cargo and
            118,000 personnel resulting in an estimated cost avoidance of
            $900 million compared to alternative DOD/commercial
            transportation options.
          The C-40A Clipper cargo and passenger aircraft showcased its
            capabilities by executing the first Littoral Combat Ship ``Crew
            Swap'' mission, traveling over 8,000 miles in 25 hours to
            transport 76 USS Freedom (LCS-1) Core and Surface Warfare
            Mission Module crew members to Singapore. Additionally, Navy C-
            40A crews delivered a load of time-sensitive, safe-for-flight
            replacement components for grounded Navy and Marine Corps F/A-
            18 Hornets in CENTCOM within 72 hours of the grounding,
            minimizing the operational impact.
          Reserve Information Technology (IT) Skill-Diversity.--RC Sailors
            bring the unmatched benefit of their skills and experience from
            civilian careers. Over the past year, RC Sailors used their
            civilian IT security certifications to train and qualify Active
            Component personnel as Computing Technology Industry
            Association (CompTIA) Security professionals. Leveraging
            Reserve Component expertise in this manner helps enable Navy's
            compliance with DOD IT directives.
                  operate forward: provide valued capabilities
        Reserve Sailors provide surge capacity and valued capabilities
    throughout the Navy, Marine Corps, and Joint Force. Our Sailors
    continue to actively seek opportunities to gain knowledge and
    experience while supporting operational needs. The RC delivers
    additional value by fulfilling periodic and predictable requirements
    which releases Active Component manpower to focus on other emergent
    operational demands.
        Information Dominance.--Reserve Sailors serving in the Information
    Dominance Corps Reserve Command (IDCRC) bring relevant civilian
    expertise to the Navy. This unique RC benefit greatly enhances Navy's
    ability to achieve superiority in the information domain. The IDCRC
    brings together Sailors across multiple communities--Intelligence,
    Information Warfare, Cyber Warfare, Information Professionals, Space
    Cadre, and Oceanography--to provide operational advantages by
    integrating functions, capabilities, and resources. This collaborative
    environment produces a synergy that fosters forward-thinking
    innovation, helps optimize decisionmaking and maximizes operational
    effects. These Sailors can provide direct front line operational
    support from Joint Reserve Intelligence Centers (JRICs) across the
    Nation. Whether providing reach back capability or forward deployed
    support, IDCRC Sailors provide critical analysis and awareness to Joint
    and Navy commands and combat support agencies.
        Aviation Training.--The process-oriented, programmatic approach to
    Naval Aviation training capitalizes on seasoned prior-service aviators.
    In addition to on-demand surge capacity, fleet experienced Reserve
    aviators bring stability, continuity, and corporate knowledge to the
    training environment. Embedding RC instructors in Fleet Replacement
    Squadrons provides a scalable, responsive, and cost-effective
    production capacity.
        Within the Naval Air Training Command, Reserve instructor pilots
    and flight officers are fully integrated into Active Component training
    squadrons and have proven essential in the production of Naval Aviators
    for the Navy, Marine Corps, and Coast Guard. In fiscal year 2013, Navy
    Reserve aviators comprised approximately 13 percent of the Instructor
    Pilot population and provided 20 percent of the instructional flight
    hours. This translates to over 52,900 hours directly supporting
    multiple Carrier Qualification, Weapons, Familiarization, and Formation
    detachments.
        Four Reserve squadrons provide over 80 percent of the Navy's
    dedicated Red Air support. They also provide current operations
    intelligence briefs to Fleet personnel, keeping our deploying forces
    abreast of the most recent developments in threat aircraft, equipment,
    and pilot tactics. Using their significant tactical aviation expertise
    and experience, these RC aviators fly legacy F/A-18 and F-5 aircraft
    simulating modern airborne threats in order to prepare fleet aviators
    for the rigors of air-to-air combat. Support sorties span the full
    spectrum of combat aviation preparation from Unit Level Training, Fleet
    Replacement Pilot instruction, Carrier Air Wing pre-deployment
    exercises, and TOP GUN Red Air instruction.
        Religious Ministry Support.--Navy Reserve Chaplains and Religious
    Program Specialists fill both a complementary role as the sole source
    of religious program support to the Marine Forces Reserve and an
    augment role by supporting the Navy's Chaplain Corps. Religious
    Ministry Teams are embedded into every level of command throughout the
    Marine Corps and are assigned to lead prevention efforts in critical
    areas such as Sexual Assault, Suicide, and Domestic Violence. These
    teams also provide surge capacity to the Chaplain Corps for the full
    range of religious ministry requirements.
        Strategic Sealift Officers (SSO).--Reserve Sailors in the Strategic
    Sealift community are prime examples of an operationalized strategic
    asset. These professionals leverage their civilian skills, experience,
    and best practices to enable strategically important wartime logistics
    missions while minimizing manpower costs. Strategic Sealift Officers
    (SSOs) are a Navy Reserve community of professional mariners with vital
    specialized skills and experience essential in supporting national
    defense sealift requirements and capabilities. These alumni of maritime
    academies throughout the country serve in the maritime industry while
    meeting their military obligation in the Navy Reserve after graduation.
    The knowledge and experience these Reserve Sailors bring to the table
    does not exist elsewhere in the Navy--they are unique force multipliers
    and innovation enablers.
        Crisis Response and Defense Support to Civil Authorities (DSCA).--
    Reserve augmentation units throughout the fleet provide staffs with
    pre-planned and on-demand surge capacity in times of high workload,
    such as major exercises and crisis response. The Reserve Component
    often brings area expertise, continuity, and operational planning
    skills. When international concern mounted over the potential use of
    chemical weapons by the Syrian government, Reserve Component Officers
    surged forward to support U.S. European Command (EUCOM) planning
    efforts within 72 hours of notification. Reserve Sailors supported
    Expeditionary Strike Group SEVEN when they were called upon to conduct
    Operation DAMAYAN, providing HA/DR following the devastating typhoon in
    the Philippines. This planning and staff augmentation capability is
    also regularly employed in response to domestic tasking. Reserve
    Officers serve as Navy Emergency Preparedness Liaison Officers (NEPLO)
    to provide support, information, and situational awareness to State and
    Regional Commanders during emergency events. Supporting Navy's role in
    conducting HA/DR and Defense Support to Civil Authorities, Reserve
    NEPLOs surge in response to national tasking and provide a low-cost
    alternative to full-time manning.
        Waterfront Ship Maintenance.--Reserve Sailors provide routine
    support maintaining damage control and electrical internal
    communications systems and performing corrosion control. By augmenting
    AC crews during planned preventative maintenance efforts, RC Sailors
    increase command maintenance capacity. This is especially beneficial in
    a constrained fiscal environment where these efforts enable AC crew
    members to spend more time conducting operational training and
    maintaining appropriate levels of readiness.
        Sustaining Forward Presence.--PB-15 will allow the RC to continue
    providing forward presence in support of sustaining new and innovative
    platforms like the Afloat Forward Staging Base (AFSB). USS Ponce, the
    first AFSB in CENTCOM, is employing a balanced manpower solution where
    the Reserve Component is filling a large portion of the required
    billets. RC Sailors are serving in many aspects of the ship's mission,
    from running air operations to providing intelligence analysis.
        Navy Reserve Medicine.--Reserve Component medical professionals are
    a critical component of the Navy's healthcare delivery system.
    Leveraging cutting edge civilian expertise and skills, members of the
    Navy Reserve medical team bring valuable experience and exceptional
    abilities that increase readiness. Navy Reserve Medicine provides long-
    term support to overseas contingency operations, operational support to
    HA/DR missions, and is structured to optimize surge response and
    maximize support to the Active Component.
        Military Funeral Honors.--Navy Reserve Sailors are deeply embedded
    foundational members of communities across the country. In this role
    they are the Navy's ambassadors to the citizens whose lives they have
    sworn to protect. Operating out of our 122 Navy Operational Support
    Centers, Navy Reserve Sailors provide a majority of Navy funeral honors
    and chaplaincy support in all 50 States, Guam and Puerto Rico. In
    fiscal year 2013 RC Sailors played a pivotal role in paying tribute to
    our deceased veterans by providing Military Funeral Honors on behalf of
    a grateful nation at over 35,000 funerals.
      be ready: enable the service of our sailors, civilians, and families
        ``Ready Now. Anytime. Anywhere.'' Our motto is a pledge to our
    Sailors, our Navy and our Nation that we will provide trained and ready
    Sailors when and where needed. Though the majority of our Sailors serve
    in uniform on a part-time basis, they live the Navy core values of
    Honor, Courage, and Commitment every day. We are committed to providing
    these Sailors the Quality of Service tools, including resources and
    training, that enable them to succeed. Also critical to that success is
    the support of their families and employers. Our Sailors are able to
    succeed in their assigned missions because of the strong support and
    resources they receive. The current fiscal environment necessitates
    that we continue to assess and focus our efforts on how we train and
    how we best support the Total Force.
        Enabling Operational Training.--PB-15 provides discretionary RPN
    (Reserve Personnel, Navy) funding, in the form of Active Duty for
    Training (ADT) funds, that is the primary catalyst of a trained and
    ready Navy Reserve force. The Navy Reserve primarily employs ADT funds
    to improve the knowledge, skills, and abilities of our Sailors. This
    training can have the added benefit of providing operational support to
    the Active Component, thereby enhancing the Total Force concept. ADT
    funds can be quickly re-allocated so Reserve Sailors can meet emergent
    needs and fill critical fleet gaps. Maintaining funding levels for
    Discretionary RPN has a direct correlation to maintaining operational
    support to the Total Force.
        Reserve Facilities Programs.--The Navy Reserve is a tenant at over
    45 installations, maximizing taxpayer value by sharing facilitates
    wherever possible. Our Military Construction (MILCON) and Facilities
    Sustainment, Restoration, and Modernization (FSRM) programs consist of
    important projects throughout the Navy Reserve Force. Investments
    include direct support to operational missions such as a new C-40A
    aircraft hangar, two new Joint Reserve Intelligence Centers, base
    security upgrades, and airfield pavement repairs. It also includes
    other facility investments including replacing two antiquated and
    inefficient facilities with new Navy Operational Support Centers
    (NOSCs) and comprehensive repairs to several older NOSCs. These
    programs are vital to readiness and morale and provide significant
    improvements in force protection compliance, facility condition and
    configuration, and energy efficiency.
        Information Technology (IT) Initiatives.--The Navy Reserve
    continues to be a leader in IT innovation, having recently fielded
    initiatives that improved connectivity, communication, and
    collaboration capabilities like the deployment of commercial Wi-Fi
    capability to our Navy Operational Support Centers and other Navy
    Reserve facilities. Continuing our efforts to better support our
    Sailors, we have implemented a second phase to increase bandwidth and
    create additional access points at high demand locations. This year we
    are piloting a commercial cloud capability which has the potential to
    significantly improve secure access to Navy computing resources from
    personal devices. These transformative IT delivery avenues will provide
    increased efficiency, effectiveness, and security, thereby improving
    Quality of Service for our Sailors.
        Continuum of Service.--The Navy's missions are accomplished through
    the combined efforts of Active and Reserve Sailors, and the Continuum
    of Service provides opportunities to adjust a Navy career to suit
    changing life circumstances and personal goals. Sailors can transition
    between full-time active duty (365 days per year) and part-time reserve
    duty (minimum one weekend per month and 2 weeks per year) through a
    range of programs. Continuum of Service tools are designed to smooth
    the transition between the Active and Reserve Components and within
    units of the Navy Reserve. The Career Navigator Program and support
    programs such as Transition, Goals, Plans, Success (Transition-GPS)
    enable the Continuum of Service, ultimately allowing the Navy to retain
    our most valuable assets--experienced Sailors.
        Career Navigator Program.--The Career Navigator Program debuted in
    2013, giving our enlisted Sailors the tools to plan and execute career
    decisions faster and more efficiently than ever before. Career
    Navigator supports key Sailor career decisions by employing a group of
    IT systems including Career Waypoints (formerly Fleet RIDE), Career
    Management System-Interactive Detailing (CMS-ID), Career Information
    Management System (CIMS), and Navy Standard Integrated Personnel System
    (NSIPS). Career Waypoints provides Sailors a single point of access to:
    communicate intentions to reenlist; view opportunities for rating
    conversion or reclassification; view opportunities and apply for
    transition between the Active Component and Reserve Component; and
    receive approval to apply for billet assignment. Eventually, Career
    Waypoints will encompass a Sailor Portal, providing an online window
    for Sailors to be able to review their career information, take career
    interest inventory, explore their career options, view their enlistment
    applications, and access career development tools. In addition to
    making it easier for Sailors to manage their careers, our ability to
    balance the force is expedited as we are now able to electronically
    process applications for Reserve Component Sailors to fill critically
    undermanned Active Component billets and for shifting manning to cover
    high priority Reserve jobs.
        Transition, Goals, Plans, Success (Transition-GPS).--We also
    fulfill our commitment to Sailors returning from mobilization by
    equipping them with a roadmap to a smooth transition back to civilian
    life through the Transition-GPS program. Transition-GPS is a critical
    part of the plan to reduce veteran unemployment through the Vow to Hire
    Heroes Act and is a DOD Total Force program that includes: Pre-
    separation counseling; a military-to-civilian skills review; a
    Department of Veterans Affairs benefits briefing; financial planning
    support; a Department of Labor workshop on job search skills and resume
    preparation; and a tailored individual transition plan. Full program
    implementation began in 2013 with the Navy Reserve coordinating with
    the staffs of Navy Mobilization Processing Sites (NMPS) and Fleet and
    Family Support Centers to optimize scheduling and participation in the
    5-day classroom curriculum. We are committed to continually improving
    our execution of the program as we integrate this concept into the
    Reserve military life cycle.
        Employer Support of the Guard and Reserve (ESGR).--Employers are a
    key pillar of support for our Reserve Sailors. By partnering with ESGR
    we are able to develop synergy in connecting with, educating, and
    thanking employers in order to strengthen support for Reserve service.
    Every year we recognize employers who provide extraordinary support to
    their Navy Reserve employees. The Navy Reserve Employer Recognition
    Event showcases the Navy's capabilities and highlights the essential
    nature of the contributions provided by their employees during periods
    of military service. Employers have the opportunity to interact with
    Reserve Sailors and view equipment to learn about the capabilities in
    the expeditionary, special operations, surface, and aviation
    communities. The day's activities also give us the opportunity to
    recognize them for their commitment to the service of their citizen-
    Sailor employees.
        Yellow Ribbon.--The Yellow Ribbon Reintegration Program (YRRP)
    provides our Sailors and their families with deployment and
    reintegration information to assist them in meeting the challenges
    associated with mobilization. In collaboration with our partners which
    include ESGR, the Department of Veterans Affairs, and community-based
    networks of care, the YRRP provides information, referrals and outreach
    to military members, their families, employers and immediate support
    network. Our flagship program under the YRRP is the Navy Reserve's
    Returning Warrior Workshop (RWW). The RWW is a post-deployment event
    that facilitates the reintegration process for Reserve Sailors and
    their spouse or designated individual of their choice. The RWW honors
    the sacrifices of servicemembers and their families and can identify
    psychological health issues to connect Sailors with needed follow-on
    care. This Navy program has been described as a ``best practice''
    within the DOD YRRP and has served over 14,000 attendees since 2008.
    Always looking for innovative ways to make it easier for Sailors and
    families to serve, the Navy Reserve recently produced the ``Deployment
    and Transition Guide,'' a tool that provides significant breadth and
    depth of information to prepare Sailors and their families for all
    phases of a military deployment. If history is a reliable indicator of
    the future, the need for reintegration programs will outlast the
    conflicts that precipitate the requirement.
        Suicide Prevention.--The Navy Reserve is committed to suicide
    prevention and education. We have implemented a comprehensive series of
    programs to foster resiliency and encourage bystander intervention, and
    reduce the stigma associated with seeking help. We are encouraged that
    suicides declined 50 percent among Reserve Sailors from 2012 to 2013
    and that at-risk Sailors are more frequently seeking help. The
    Psychological Health Outreach Program (PHOP) ensures that Reserve
    Sailors and their family members understand the psychological
    healthcare services available. PHOP Outreach Teams educate and equip
    Reserve Sailors and family members as they interact during site visits.
    They also support Returning Warrior Workshops and maintain regular
    contact with recently demobilized Sailors.
        Sexual Assault Prevention.--The Navy Reserve engages in a wide
    variety of initiatives to improve readiness and prevent subversive and
    destructive behavior. Our sexual assault prevention program remains one
    of our most important initiatives. Our message is unwavering and
    persistent--sexual assault has no place in the Navy's culture of honor,
    courage, and commitment. We have appointed a full-time program manager
    to provide oversight and coordination for our Sexual Assault Prevention
    and Response (SAPR) initiatives. Our Sailors have led and participated
    in prevention and response training at all levels: SAPR-Fleet, SAPR-
    Leadership, General Military training, and a SAPR stand-down. This
    training is embedded in our leadership courses and prioritized at all
    levels of the chain-of-command. Commanding Officers are directed to
    have a Command Climate Survey within 90 days of assuming command and
    they are required to review the results with their reporting senior and
    brief unit members. There is still work to be done, but we are making
    progress in breaking down barriers to reporting within the Navy
    Reserve. Sexual assault is unacceptable within our ranks, and we remain
    committed to eradicating it from our Force. We are ensuring any sexual
    assault cases are handled by the military justice system in a timely,
    fair, and effective manner and we are committed to meeting the needs of
    victims while respecting their rights and preferences.
                               manning our force
        Our most important asset is our people. Recruitment and retention
    of quality Sailors continues to be a high priority for the Navy
    Reserve. The demands of the Fleet require an aggressive strategy to
    provide the proper inventory of trained and ready personnel. Despite a
    31-percent reduction in end strength over the past 10 years, the Navy
    Reserve continues to fill critical roles in Navy's Total Force mission
    across almost every designator and rating. Successful recruiting and
    retention strategies are vital in attracting and retaining the right
    skill sets and talent to support the Navy's needs. These efforts focus
    on matching individual qualifications to billet requirements and are
    supported by a targeted and tiered bonus structure.
        Recruiting.--In fiscal year 2013, Navy Recruiting achieved success
    in Selected Reserve enlisted recruiting programs, but did not meet RC
    officer goals in the Unrestricted Line (URL) and Medical Corps
    communities. Navy Recruiting attained 77 percent of the overall general
    officer recruiting and 75 percent of the RC Medical Department officer
    goals. Strong AC retention equates to smaller numbers of officers
    leaving active duty which significantly reduces the prior service pool,
    the RC's primary source for URL officers. In some Restricted Line and
    Staff Corps communities, Direct Commission Officer (DCO) programs have
    been extremely successful in recruiting officers with no prior service
    to supplement the pool of officers leaving active duty.
        Accessing Health Care Professionals remains our greatest recruiting
    challenge. Thanks to past Congressional action, the Navy Reserve has
    authority to expend resources to attract and retain these officers for
    critically undermanned wartime specialties. However, lack of awareness
    about Reserve service, impact of mobilizations on medical practices,
    and significant income loss during military service continue to hinder
    medical officer recruiting.
        Retention.--We are encouraged to see high retention rates across
    the Navy Reserve Force. We gauge retention by quantitatively monitoring
    attrition, and current attrition rates are more than 2 percent below
    the previous 5 year average. In fiscal year 2013, officer attrition was
    10.18 percent and enlisted attrition was 17.15 percent. The first
    quarter of fiscal year 2014 indicates similar performance can be
    anticipated, as we are observing very similar attrition rates. The Navy
    Reserve is able to manage planned Officer and Enlisted reductions
    through voluntary means by reducing total accessions below natural
    attrition and focusing special/incentive pays to shape manning in
    critically undermanned ratings and designators.
        Special Bonus and Incentive Pay.--A Selective Reenlistment Bonus is
    used to improve retention of Enlisted Sailors in targeted specialties,
    while affiliation and enlistment bonuses are used to recruit Sailors in
    targeted ratings and specialties from both prior service veterans and
    direct accessions of non-prior service recruits. Officer accession and
    affiliation bonuses and Special Pays (to include Special Pay for the
    retention of Healthcare Professionals) are used to maintain or increase
    inventory by targeting undermanned pay grades in critical and
    undermanned skill sets. Additionally, Navy has received ``critical''
    designation for Naval Special Warfare (SEAL) officers, authorizing a
    limited Critical Skills Retention Bonus in an effort to further reduce
    attrition. This authority is especially important today because the
    accession pool for Reserve URL officers, such as those in the SEAL
    communities, is predominantly limited to previously designated officers
    leaving active duty and is directly impacted by high Active Component
    retention.
                              equipping our force
        The Reserve Force depends on modernized and well-maintained
    equipment to accomplish our assigned missions. To that end, I would
    like to personally thank the committee for the support you provide to
    the Navy Reserve. In fiscal year 2015, we will accept delivery of two
    C-40As, bringing our total inventory to 14 aircraft, and a 15th C-40A
    will be delivered in fiscal year 2017. The procurement of two
    additional aircraft is needed to fulfill the risk-adjusted requirement
    of 17 C-40As, which will allow the Navy to complete the divestiture of
    aging, inefficient, and costly C-9B and C-20G legacy aircraft. The Navy
    Reserve C-40A cargo and passenger aircraft program places the Fleet
    closer to realizing a more capable and cost-effective lift capability.
                             looking to the future
        Today's Navy Reserve serves as a hedge against uncertainty by
    providing agility, capability and capacity to the Total Force--
    delivering ready and capable Sailors where it matters, when it matters.
    The Navy relies on its Reserve Component as a dependable source of
    strength to mitigate risk and offset cost whether augmenting
    warfighting requirements overseas, supporting major contingencies at
    home, or providing enduring core capabilities. We will continue to
    evaluate integration of effort, and the balance of roles and
    responsibilities between Active and Reserve components as the Navy
    rebalances toward the Asia-Pacific.
        Littoral Combat Ship (LCS).--With the addition of LCS to the Fleet,
    Reserve Sailors are providing waterfront seaframe maintenance,
    security, watchstanding, Mission Module support, and LCS Squadron
    logistics and administrative support to the Navy's newest ships. They
    are also engaged in Train-to-Qualify (T2Q) pipeline training onboard
    LCS seaframes. As the LCS fleet grows, Navy Reserve will add additional
    support capacity.
        Cyber.--Cyber operations are a core component of each of the three
    pillars identified in the Navy's Information Dominance Strategy.
    Reserve Cyber operational support teams are at the forefront of their
    field, participating in exercises that shape the defense of critical
    national infrastructure and key resources. Additionally, Reserve
    Sailors continue to actively develop and test pre-planned responses to
    cyber threats, preparing fleet Sailors to properly and reliably respond
    to various scenarios. The Navy Reserve will continue to leverage the
    skills of all our Information Dominance professionals and will look for
    opportunities to further strengthen AC/RC integration within the
    Information Dominance Corps.
        Unmanned Systems.--As the Navy continues to introduce unmanned
    systems to the fleet, the Reserve Component offers cost effective
    solutions for this mission. Reserve Sailors have been mobilized in
    support of Tigershark/Copperhead UAS conducting counter Improvised
    Explosive Device (IED) missions in Operation ENDURING FREEDOM. We have
    also been providing support to the Persistent Ground Surveillance
    System (PGSS) which provides Forward Operating Base ISR coverage at
    sites throughout Afghanistan.
        The Navy has already integrated Reserve Component manpower in the
    Fire Scout program and is currently developing plans for the MQ-4C
    Triton. The periodic and predictable nature of Triton's operating
    construct is particularly well suited for the Navy Reserve. Utilizing
    RC manpower can provide flexibility, on-demand surge capacity, and
    potentially reduce personnel and operating costs through pragmatic and
    innovative solutions. We stand ready to fill roles in all areas of
    unmanned systems.
        Aviation Force Structure.--Within the arena of manned systems, in
    addition to the requirement to complete the recapitalization of the Air
    Logistics fleet, other areas of specific focus are Airborne Electronic
    Attack and Maritime Patrol and Reconnaissance. Reserve Component
    aviators developed and led training in support of the MPRF Active
    Component's P-8 transition utilizing their extensive commercial Boeing
    737 experience. We will continue to seek further opportunities to
    utilize these highly skilled aviators in a more operational role.
        VAQ-209, formerly an EA-6B Prowler Squadron, completed a homeport
    shift to NAS Whidbey Island in order to align more closely to the
    Navy's base for AEA force structure. They are currently completing
    their transition to the EA-18G Growler and will deploy in support of
    CCDR requirements on the fiscal year 2015 GFMAP.
        High Value Unit Escort.--The High Value Unit (HVU) escort mission
    involves providing protection for vessels as they transit in and out of
    port. The Navy is assuming this mission from the U.S. Coast Guard,
    leveraging the capabilities of RC Sailors assigned to NECC's Coastal
    Riverine Force. This Reserve Component solution is enabling the Navy's
    previously scheduled AC units to maintain their established operational
    deployment schedule. Beginning in fiscal year 2015, the Navy Reserve is
    expected to expand our HVU escort mission to additional stateside
    ports.
        Joint High Speed Vessel.--Reserve Sailors are serving as the
    Military Detachment Headquarters providing command and control (C2)
    capability in support of USNS Spearhead's 3-month maiden deployment. As
    the C2 element for 80+ Active Component Sailors and Marines, these
    Reserve Sailors will work in concert with Spearhead's crew of civilian
    mariners conducting a variety of missions within the EUCOM and AFRICOM
    AORs. This ad hoc solution showcases the versatility and adaptability
    of the RC in supporting evolving missions.
                                   conclusion
        For almost a century the Navy Reserve has answered the Nation's
    call. Today's Navy Reserve Sailors continue to serve as a force
    multiplier and have been relied upon to support a wide spectrum of
    mission areas across the globe. The Navy Reserve remains postured to be
    the go-to force for integrating and augmenting the Navy, Marine Corps,
    and Joint Forces. The President's fiscal year 2015 budget request
    provides resources to support a Navy Reserve force structure of 57,300
    Sailors. We will continue to seek opportunities to further align Active
    and Reserve force structure, manpower, and missions, leverage the
    unique advantages found in the Reserve Component, and enhance Quality
    of Service for every Sailor. In so doing we will deliver surge capacity
    and operational capability to the Navy, Marine Corps and Joint Forces,
    posturing the United States Navy for success today and in the future
    security environment. On behalf of your Navy Reserve Sailors, I would
    like to again offer sincere thanks for your continued support.

        Senator Durbin. Thank you very much.
        Lieutenant General Mills.
    STATEMENT OF LIEUTENANT GENERAL RICHARD MILLS, CHIEF,
                UNITED STATES MARINE CORPS RESERVE
        General Mills. Chairman Durbin, Vice Chairman Cochran, Vice
    Chairwoman Mikulski, distinguished members of the subcommittee:
    It is my honor to appear before you today to speak about your
    Marine Corps Reserve.
        Mr. Chairman, we welcome your leadership, and I am very
    grateful for your support, and the subcommittee's continued
    support of the Marine Corps Reserve and its associated
    programs, programs that help us sustain ourselves as a ready,
    relevant, and responsive component of the Marine Corps Total
    Force.
        With me today is force Sergeant Major Anthony A. Spadaro.
    Sergeant Major Spadaro's engaged leadership with our Reserve
    enlisted Marine members--for the members who collectively are
    the strength of the Marine Corps Reserve, his leadership is
    truly inspiring.
        Since taking command last August, I have been deeply
    impressed by the professionalism, the competence, and the
    dedication of our magnificent reservists. Like their Active-
    Duty brothers and sisters, they sacrifice so much of their
    time, and so much of themselves, to protect and serve our great
    Nation.
        The way they balance their family responsibilities, their
    civilian lives, their schools, their jobs, and their careers,
    and still stay 100 percent Marine, truly inspires me.
        Our reservists share the same culture of deployment and
    expeditionary mindset that has dominated the Marine Corps
    culture, ethos, and thinking since our service's beginning more
    than two centuries ago.
        I am proud to say that since 9/11, almost 63,000 marines
    from the Ready Reserve have executed a total of more than
    82,000 sets of mobilization orders.
        A critical enabler for our operational tempo has been the
    Navy's Bureau of Medicine's continued support of behavioral
    health through various independently contracted programs,
    programs such as the post-deployment health reassessment, the
    mental-health assessments, and the psychological health
    outreach program that help our marines immeasurably.
        These programs have proven effective in the overall
    management and identifying those marines and sailors who need
    behavioral health assistance, and then it provided an avenue to
    those servicemembers so they can seek behavioral health
    assistance.
        We continue to enjoy strong demand for affiliation with our
    units, as seen by our increased accessions from the Active
    component, as Active component marines leave the active
    service.
        We also enjoy high rates of retention. Our retraining, our
    inactive-duty travel reimbursement, our bonus program, and our
    incentive programs for Reserves have proven to be essential
    tools in achieving nearly 100 percent of our authorized end-
    strength in fiscal year 2013.
        The continued uses of these programs are critical enablers
    for us, as we seek to optimally align our inventory to our
    requirements.
        In regard to ground-equipment readiness, the Reserve
    component continues to carry a historical maintenance
    requirement that uses a combination of field-maintenance
    capabilities and contracted logistical-support maintenance
    teams. This is an enduring requirement to support field-
    maintenance operations, and the combination of those two
    programs I spoke about help us sustain over 97 percent ground-
    equipment readiness of our force.

                               PREPARED STATEMENT

        The Marine Corps is our Nation's crisis-response force, and
    will continue to be most ready when our Nation is least ready.
    As part of the Marine Corps Total Force, Marine Corps Forces
    Reserve is appropriately organized, manned, equipped, and
    trained to provide forces to augment, reinforce, sustain, and
    act as a shock absorber to the Active components' requirements.
        Again, thank you for your demonstrated support for our
    reservists, for their families, and for their employers.
    Chairman Durbin and fellow members, I look forward to your
    questions.
        [The statement follows:]
           Prepared Statement of Lieutenant General Richard P. Mills
        Chairman Durbin, Ranking Member Cochran, and distinguished members
    of the subcommittee: It is my honor to report to you on the state of
    the Nation's Marine Corps Reserve and our Reservists, who
    enthusiastically and professionally contribute to the balanced air-
    ground-logistics team that underscores our Nation's crisis response
    force--the U.S. Marine Corps. Although the present times are difficult
    due to fiscal impacts on the Marine Corps, I am extremely grateful for
    your continued support of our Corps. Your continued support helps
    sustain us as a ready, relevant, and responsive Reserve Force that is
    an essential shock absorber for the Marine Corps Total Force.
                                  introduction
        I share the sentiment Commandant of the Marine Corps General James
    F. Amos stated in testimony before Congress last year--the Marine Corps
    provides an insurance policy to the American people. As an integral
    part of the Total Force, Marine Forces Reserve plays a key role in
    providing that insurance policy. We have been fully engaged on the
    global stage for more than 12 years now, serving as the essential shock
    absorber for the Active Component, and 2013 was no different.
    Reservists from each of our major subordinate commands--4th Marine
    Division, 4th Marine Aircraft Wing, 4th Marine Logistics Group, and
    Force Headquarters Group--made a tremendous impact across a diverse
    spectrum of operations in support of every geographic combatant
    commander's operational and theater security cooperation requirements,
    as well as Service commitments.
        The Marine Corps' commitment to the American people is as strong
    today as ever in its 238-year history. That commitment is backed
    equally by bold Active and Reserve Component Marines and Sailors who
    are experienced in taking the fight directly to the enemy across the
    globe since 2001. Our Marines have been doing what they have done best
    since 1775: Standing shoulder-to-shoulder to fight and win the Nation's
    battles. We don't differentiate; all Marines--whether Reserve or Active
    Component--are disciplined, focused, and lethal. We are a Total Force,
    and as such, the Marine Corps Reserve continues to be integrated in all
    areas of the Marine Corps.
        I am deeply impressed by the professionalism, competence, and
    dedication of our magnificent Reservists. Like their Active-Duty
    brothers and sisters, they sacrifice so much of their time--and so much
    of themselves--to protect and serve our great Nation. The way they
    balance their family responsibilities, civilian lives, school, jobs,
    and careers--and still stay Marine--inspires me. They do it with
    humility, without fanfare, and with a sense of pride and dedication
    that is consistent with the great sacrifices of Marines of every
    generation.
        I believe Active-Component Marines and senior leadership at all
    levels appreciate a highly experienced and competent Reserve Force. As
    an integral element of the Total Force Marine Corps, our Marines and
    Sailors share the culture of deployment and expeditionary mindset that
    has dominated Marine Corps culture, ethos and thinking since our
    Service's beginning more than two centuries ago. Accordingly, the U.S.
    Marine Corps Reserve is organized, manned, equipped, and trained to
    provide a professionally ready, responsive, and relevant Force as a
    Marine Corps solution to enable joint and combined operations. We are,
    and will remain, a key component in the Corps' role as the Nation's
    Expeditionary Force in Readiness.
                                 a total force
        During the previous 13 years, the Marine Corps Reserve has been
    engaged in combat operations in Iraq and Afghanistan, as well as in
    regional security cooperation and crisis prevention activities in
    support of the various geographic combatant commanders. This
    operational tempo has built a momentum among our war fighters and a
    depth of experience throughout the ranks that is unprecedented in
    generations of Marine Corps Reservists.
        As of January 1, 2014, 62,688 Marines from the Ready Reserve
    executed a total of 82,424 sets of mobilization orders. This
    operational tempo has enabled Marine Forces Reserve to remain an
    operationally relevant Force over the last 13 years. Marine Forces
    Reserve has sourced preplanned, rotational, and routine combatant
    commander and Service requirements across a variety of military
    operations. We routinely supported operations in Afghanistan while
    simultaneously sourcing other combatant commander requirements
    worldwide, such as Special Purpose Marine Air-Ground Task Force in
    support of U.S. Africa Command; Georgia Deployment Program in support
    of U.S. European Command; Unit Deployment Program in support of U.S.
    Pacific Command; Security Cooperation/Security Force Assistance Teams
    in support of U.S. Northern Command and U.S. Central Command; and
    Counter-Drug/Counter-Narcotics teams in support of U.S. Southern
    Command. Additionally, Marine Forces Reserve has continued to support
    geographic combatant commander exercise and theater security
    cooperation global requirements, which increases our operational
    readiness while enabling Total Force integration and the rapid
    transition to operational roles and support to major contingency
    operations.
        During calendar year 2013, Marine Forces Reserve operations
    continued on a high operational tempo as our four major subordinate
    commands were called upon to provide 1,414 Marines and Sailors to
    support combatant commander operational requirements, and we plan to
    deploy 443 Marines and Sailors during calendar year 2014. In addition,
    Marine Forces Reserve will deploy thousands of Marines to a multitude
    of theater-specific exercises and cooperative security events that are
    designed to increase interoperability with our allies, as well as for
    developing theater security cooperation activities in Morocco,
    Cameroon, Niger, South Africa, Uganda, Burundi, Senegal, Mauritania,
    Turkey, Romania, Slovenia, Georgia, Mexico, Bahamas, Honduras,
    Guatemala, Belize, Dominican Republic, Jordan, and with our partners in
    the Pacific Rim, the Republic of Korea and the Kingdom of Thailand.
        Marine Forces Reserve's operational focus will continue to directly
    support the geographic combatant commanders in various roles that
    include multiple multilateral and bilateral exercises, such as African
    Lion in Morocco, Ssang Yong in South Korea, and Maple Flag in Canada.
    The way ahead for Marine Forces Reserve includes deploying forces to
    meet high priority combatant commander requirements while providing
    continued support to Operation Enduring Freedom (OEF). Principal among
    these combatant commander requirements is the continued deployment of
    highly qualified Marines to Europe in order to train Georgian forces
    prior to their deployment to Afghanistan, the continued deployment of
    Marines to Mexico to train Mexican Marines, and the deployment of a
    Communications Detachment to support the Commander, Combined Joint Task
    Force Horn of Africa.
        In addition to operational requirements, Marine Forces Reserve
    personnel and units conducted significant regional and more than 389
    local community relations events nationwide during calendar year 2013.
    Due to the command's unique geographic dispersion, Marine Forces
    Reserve personnel and units are advantageously positioned to interact
    with the American public, telling the Marine Corps story to our fellow
    citizens who typically have little or no contact with the Marine Corps.
    Therefore, for the preponderance of the American public, their
    perception of the Marine Corps is informed by dialogue with our
    Reservists during the many community outreach events that occur
    throughout the year across the country.
        Marine Forces Reserve continues to monitor the mobilization
    viability of the Individual Ready Reserve, which consists of more than
    67,000 contractually obligated Marines who have fulfilled their Active
    service commitment, but have returned to civilian life. The
    mobilization potential of the Individual Ready Reserve is monitored
    through the use of muster events, which are conducted at multiple
    locations across the country and includes no less than one-sixth of the
    Individual Ready Reserve population. The Muster event is the Marine
    Corps' opportunity to physically inspect contractually obligated
    Marines to ensure they are capable of mobilization. During this event,
    a Marine is given the opportunity to address any administrative issues
    and get assistance. If needed, they complete a mental health and post-
    deployment screening, review the Reserve obligations and opportunities
    information, meet with military-friendly employers, meet prior service
    recruiters, and get an opportunity to reconnect with fellow Marines.
    During fiscal year 2013, Marine Forces Reserve mustered 9,684 Marines
    during 44 muster events.
        In addition to participating in operational requirements across the
    globe and in community relations events here at home, our Active-Duty
    Marines who are assigned to our Inspector--Instructor and Reserve Site
    Support staffs dutifully execute the significant responsibility of
    casualty assistance. Continued operational efforts in OEF have required
    that these Marines and Sailors remain ready at all times to support the
    families of our fallen Marines in combat abroad, or in unforeseen
    circumstances at home. By virtue of our geographic dispersion, Marine
    Forces Reserve personnel are well-positioned to accomplish the vast
    majority of all Marine Corps casualty assistance calls and are trained
    to provide assistance to the families. Historically, our personnel have
    been involved in the majority of all Marine Corps casualty
    notifications and follow-on assistance calls to the next of kin. During
    calendar year 2013, our Inspector--Instructor and Reserve Site Support
    staffs performed 85 percent--169 of 198--of the total casualty calls
    performed by the Marine Corps. There is no duty to our families that we
    treat with more importance, and the responsibilities of our Casualty
    Assistance Calls Officers (CACOs) continue well beyond notification. We
    ensure that our CACOs are well trained, equipped, and supported by all
    levels of command through the combination of in-class and online
    training. Once a CACO is designated, that Marine assists the family
    members from planning the return of remains and the final rest of their
    Marine to assist with filing for benefits and entitlements. In many
    cases, our CACOs provide a long-lasting bridge between the Marine Corps
    and the family while providing assistance during the grieving process.
    The CACO is the family's central point of contact and support, and
    serves as a representative or liaison to the funeral home, government
    agencies, or any other agency that may become involved.
        Additionally, Marine Forces Reserve units and personnel provide
    significant support for military funeral honors for our veterans. The
    Inspector--Instructor and Reserve Site Support staffs, with
    augmentation from their Reserve Marines, performed 91 percent--17,075
    of 18,756--of the total funeral honors rendered by the Marine Corps
    during calendar year 2013. We anticipate providing funeral honors to
    more than 18,000 Marine veterans during 2014. As with casualty
    assistance, we place enormous emphasis on providing timely and
    professionally executed military funeral honors.
                                 predictability
        The Marine Corps Reserve remains an integral part of the Total
    Force Marine Corps and continues to serve as an operationally focused
    Force whether it is integrated with Marine Forces in Afghanistan,
    serving as a Special Purpose Marine Air-Ground Task Force, or filling
    training and advising roles with security force assistance teams in
    direct support of combatant commanders' requirements. Consequently, the
    Reserve Force continues to maintain a high level of operational
    experience as it continues to serve side-by-side with our Active-
    Component counterparts. However, we clearly recognize the potential
    effect of the fiscal environment on our operational readiness,
    especially as we consider how to maintain the operational experience of
    the Reserve Force.
        Revisions to our Force Generation Model rotate Marine Reserve units
    through a 5-year Training and Readiness Plan to ensure units and
    personnel are ready to meet any challenge. The Training and Readiness
    Plan establishes a program that enables the Reserves to have two
    infantry battalions, an artillery battalion, a combat logistics
    battalion, and aviation capabilities, as well as an assortment of other
    forces combat-ready at any given time. This results in more than 3,000
    Marines who are trained and ready to augment and reinforce a Marine
    Air-Ground Task Force, whether in support of a contingency response or
    part of a pre-planned, budgeted for, theater security cooperation
    mission.
        Our Training and Readiness Plan continues to provide a level of
    predictability for both planners and Reservists while maintaining the
    ``train as we fight'' philosophy. The Plan provides our Reservists,
    their families, and their employers, the ability to plan for upcoming
    duty requirements in their lives 5 or more years out. This empowers
    servicemembers to achieve the critical balance between family, civilian
    career, and service to our Nation while enabling employers to plan for
    and manage the temporary loss of valued employees. The key element in
    the Training and Readiness Plan is the integration of Reserve units,
    detachments, and individuals into Service- and Joint-level exercises,
    creating an environment of interoperability in years 2, 3, and 4 of the
    5-year plan's cycle. The units are scheduled to be assessed in a
    culminating Integrated Training Exercise during the fourth year of the
    training cycle. The Training and Readiness Plan assures integration
    with the Active Component in training exercises conducted in the United
    States and overseas, and continues to facilitate the Total Force
    approach in the manner in which the Marine Corps achieved success over
    the last 13 years of integrated operations in the combat zones of Al
    Anbar province, Iraq, and Helmand province, Afghanistan.
                                   personnel
        Marine Forces Reserve comprises a large percentage of the Selected
    Reserve's authorized end strength of 39,600, which will decrease to
    38,500 Marines by fiscal year 2017. Additionally, Marine Forces Reserve
    administers approximately 67,000 Marines who serve in the Individual
    Ready Reserve, which is projected to continue to increase due to the
    Active Component end strength draw down. The Selected Reserve is
    comprised of Marines in Reserve units and the Active Reserve program,
    as well as Individual Mobilization Augmentees (IMAs) and servicemembers
    in initial training. The planned reductions in the Selected Reserve's
    end strength will come primarily from the junior enlisted ranks and
    IMAs. The Reserve Component is currently over manned in its junior
    enlisted ranks and the decreased demand for mobilized Reservists
    augmented to Active Component units will enable the Marine Corps
    Reserve to reduce its IMA manning levels and encourage noncommissioned
    officers and staff noncommissioned officers to affiliate with Marine
    Corps Reserve units.
        We continue to enjoy strong demand for affiliation as seen by
    increased accessions from the Active Component, as well as high rates
    of retention. Our retraining, inactive duty travel reimbursement,
    bonus, and incentive programs for Reserves were essential tools in
    achieving nearly 100 percent of our authorized end strength in fiscal
    year 2013. We fully expect to meet our Selected Marine Corps Reserve
    unit recruiting goals again this fiscal year. The continued use of
    these programs are critical enablers for us as we seek to optimally
    align our inventory to our requirements, maintain individual and unit-
    level readiness, address shortfalls in staff noncommissioned officer
    leadership, and maximize deployability for our incumbent personnel.
        I am pleased to report that the Marine Corps/Navy Reserve team is
    as strong as ever. Marine Forces Reserve remains fully integrated with
    Navy manpower assets from the Active, Reserve, and Full-Time Support
    (FTS) communities. A total compliment of 279 officer and enlisted
    personnel from the Active Component and FTS component provides
    continuous medical and religious ministries support to the Marines and
    Sailors throughout Marine Forces Reserve. In addition, more than 1,400
    Reserve-Component Sailors augment Marine Forces Reserve in deployments,
    administrative functions, and major exercises with 300 of these
    positions being officers in the various medical professions. These
    invaluable Navy assets can be found at any of our 160 Reserve Training
    Centers throughout the United States.
        Our company grade officer manning continues to dramatically
    improve. Company grade officer manning stands at 74 percent, up from a
    low of 21 percent in 2006. Historically, the Active Component Marine
    Corps has been the exclusive source of senior lieutenants, captains,
    and pilots for the Marine Corps Reserve, and it remains a source of
    strength in meeting these requirements.
        Reserve officer commissioning initiatives focus exclusively on the
    most crucial challenge of staffing the Marine Corps Reserve with
    quality company grade officers. Two of these Reserve commissioning
    initiatives are the Reserve Enlisted Commissioning Program (RECP),
    which is available to qualified Active-Duty enlisted Marines in
    addition to qualified Reserve-enlisted Marines; and Officer Candidate
    Course--Reserve (OCC-R). Since 2004, these programs helped produce a
    total of 710 lieutenants for the Marine Corps Reserve. The OCC-R
    program has been the most productive of the Reserve commissioning
    initiatives, producing 610 officers. The OCC-R program historically
    focused on ground billets with an emphasis on ground combat and combat
    service support within specific Reserve units that were scheduled for
    mobilization. These programs, combined with our prior service
    recruiting efforts, are projected to provide at least 90 percent
    staffing of critical combat arms and engineer company grade officer
    billets by September 30, 2015, with overall officer staffing reaching
    this level 1 year later.
        Civilian Marines are critical enablers to Marine Forces Reserve's
    ability to meet Service requirements. Our civilian work force across
    Marine Forces Reserve--more than 350 members--continues its unwaverable
    service and dedication to the Marine Corps Reserve even during these
    past few years of uncertainty concerning pay and entitlements. They are
    integral for continuity of operations and for ensuring family readiness
    across the Reserve Force. Unfortunately, the recent budgetary upheaval
    and civilian furlough has created significant stress and decline in
    morale for many of our employees.
        As the Marine Corps continues to draw down Active Component end
    strength, the option to continue to serve in the Reserve Component has
    become increasingly appealing to young Marines leaving Active Duty.
    Marines who are approaching the end of their current contracts--Active
    or Reserve Component--receive more focused counseling on the tangible
    and intangible aspects of remaining associated with, or joining, a
    Selected Marine Corps Reserve unit. We continue to ensure that each
    transitioning Active Component Marine is educated on continued service
    opportunities in the Marine Corps Reserve through the Marine Corps'
    transition assistance and educational outreach programs.
        In 2013, the Direct Affiliation Program was introduced as a pathway
    for transitioning Active Component officers and enlisted servicemembers
    to affiliate with a Selected Marine Corps Reserve unit just prior to
    separation, facilitating a seamless transition and transitional TRICARE
    benefits that underscores the Continuum of Service. Additionally, all
    commanders and senior enlisted leaders across Marine Forces Reserve are
    tasked to retain quality Marines through example, mentoring, and
    information and retention programs. This takes place across the Marine
    experience, not just in the final days of a Marine's contract--Active
    or Reserve. Your continued support regarding enlistment, affiliation,
    and re-enlistment bonuses along with other initiatives that promote
    service to this great Nation underscores our ability to gain and retain
    the very best servicemembers.
                                   equipment
        A decade of war and generous funding has enabled the Marine Corps
    Reserve to achieve a warfighting competence that surpasses anything in
    our past, but it also comes at an unparalleled cost in maintenance as
    it applies to equipment readiness. Additionally, the introduction of
    nonstandard equipment, the fielding of new systems, and the overall
    increase in the scale and complexity of what today's units are
    maintaining has compounded the challenge of increased maintenance
    costs. Effective equipment maintenance requires our leaders to have a
    mindset of accountability and responsibility for all equipment,
    especially since Selected Marine Corps Reserve units present unique
    challenges due to geographic dispersion.
        Although we have been engaged in combat operations for more than 12
    years, our ground equipment readiness rates for maintenance have
    remained steady at about 97 percent. This last decade has demonstrated
    the need to maintain a significant Reserve Force readiness posture that
    enabled Marine Forces Reserve to be an essential shock absorber for the
    Active Component.
        Several resources and programs combine to form the Reserve
    Component approach to maintenance. Routine preventive and corrective
    maintenance is performed locally by operator and organic maintenance
    personnel. This traditional approach to field maintenance was expanded
    during calendar year 2008 to include highly effective contracted
    logistics support and depot-level capabilities. We continue to
    experience significant success with contracted logistics support and
    contractors have helped us with performing the work and providing
    valuable training to our Marines and Sailors at our 160 Reserve
    Training Centers. This field maintenance augmentation effort has
    directly improved our equipment readiness by providing valuable hands-
    on occupational skills training to our Marines while returning time to
    our Marines to accomplish very important individual training.
        The Reserve Component continues to carry a historical maintenance
    requirement that uses a combination of field maintenance capabilities
    and contracted logistics support maintenance teams. There is an
    enduring requirement to support field maintenance operations,
    contracted logistics support, or some combination of the two in order
    to sustain the ground equipment readiness of the Force.
        Two additional programs have proven highly effective in improving
    readiness of the Force. The Marine Corps' Enterprise Lifecycle
    Maintenance Program provides for the rebuilding and modifying of an
    array of principal end items, such as the Light Armored Vehicle, the
    Amphibious Assault Vehicle, and our entire motor transport fleet. The
    Marine Corps Corrosion Prevention and Control Program continues to
    provide significant benefits. Collectively, these initiatives and the
    hard work and dedication of our Marines and civilian Marines across
    Marine Forces Reserve are responsible for our high readiness rates.
        Unlike our Active Component counterparts, Reserve units can
    establish a Training Allowance, which allows unit commanders to have
    enough equipment on-hand to train to mission essential tasks, but
    recognizes the reality that Selected Marine Corps Reserve units have
    limited manpower, facility space, and fiscal resources, as well as
    competing operational and individual training requirements, that can
    prevent them from effectively maintaining, managing, and accounting for
    a full Table of Equipment. Reducing Training Allowance equipment-sets
    to minimal levels necessary to train is one way to offset the equipment
    maintenance burden; however, it cannot mitigate the loss of
    supplemental funding. Active Duty Operational Support and contracted
    logistics support funding remain essential to sustain acceptable
    Reserve Component equipment readiness.
        National Guard and Reserve Equipment Appropriation (NGREA) funding
    has been a large resource for procurement of Reserve Component
    equipment. Fiscal year 2012 NGREA funding was used to procure five
    containerized Flight Training Devices (FTDs)--one for the CH-53E, two
    for the MV-22B, and two for the UH-1Y. These devices are currently in
    the contracting phase of procurement and are projected to be delivered
    during fiscal year 2015. Additionally, $120 million of fiscal year 2013
    NGREA funding is being used to maintain the ageing KC-130T fleet until
    the fielding of the new KC-130J, which begins in fiscal year 2014, is
    complete. The NGREA funding used to replace the KC-130T Weather Radar
    System and to upgrade the Electronic Propeller Control System will
    enable the Reserve Component to continue to meet training requirements
    while transitioning to the new KC-130J airframe. Fiscal year 2013 NGREA
    funding will also enable the Reserve Component to complete hardware
    upgrades for the Indoor Simulated Marksmanship Trainer. The Indoor
    Simulated Marksmanship Trainer is an interactive videodisc-based
    weapons training system. The Indoor Simulated Marksmanship Trainer
    includes rifle and pistol ranges, combat scenarios, and shoot/no shoot
    scenarios that enable Reserve Component Marines to train and range
    qualify as a basic rifleman when access to physical ranges is not
    tenable or is cost-prohibitive.
        As funding cuts throughout the DOD strain already dwindling
    training budgets, it is beneficial that Marine Forces Reserve has the
    ability to procure simulation devices we can use to adequately train
    our Marines. These simulators aid greatly in maintaining the
    operational readiness required to ensure Marine Forces Reserve can
    mobilize and deploy units or individuals to augment, reinforce, or
    sustain the Active Component. To be sure, NGREA funding continues to be
    used for its contribution to the modernization, training, and sustained
    readiness of the Reserve Component.
                                    training
        During June 2014, Marine Forces Reserve will conduct its second
    Service-level Integrated Training Exercise, which is an assessed
    regimental-level live-fire and maneuver exercise featuring Reserve-
    Component forces as the Marine Air-Ground Task Force elements--command,
    ground, air, and logistics. The Integrated Training Exercise ensures
    maximum training benefit for the ground, aviation, and logistics combat
    elements under the command and control of a regimental headquarters.
    The Integrated Training Exercise is an indispensable component of our
    Training and Readiness Plan and serves as an annual capstone exercise,
    which is the principal mechanism for examining our training and
    readiness levels, as well as assessing our operational capabilities.
    The Integrated Training Exercise also measures our ability to provide a
    cohesive Marine Air-Ground Task Force-trained and ready capability to
    the Service or combatant commander on a predictable, reliable, and
    cyclical basis. Conducted aboard Marine Corps Air-Ground Combat Center
    Twenty-nine Palms, California, the Integrated Training Exercise is a
    Marine Air-Ground Task Force deployment vice a compilation of numerous
    annual training events. Units are participating based on their future
    activation potential according to the Marine Forces Reserve fiscal
    years 2014-2018 Training and Readiness Plan. The Integrated Training
    Exercise provides all Marine Air-Ground Task Force elements an
    opportunity to undergo a Service assessment of their core competencies
    that are essential to expeditious forward-deployed operations.
    Additionally, individuals serving on the regimental command element
    staff receive valuable training that enables them to competently
    perform as individual augments to Marine Air-Ground Task Forces and/or
    Joint staffs. In summary, the Integrated Training Exercise enables
    improved readiness, more efficient Total Force integration, and faster
    activation response times.
        At our Reserve Training Centers, we continue to maximize training
    efficiencies by utilizing simulators wherever possible to preserve
    fiscal and materiel resources. For Reserve Component Indoor Simulated
    Marksmanship Trainers (ISMTs), Marine Forces Reserve obligated $12.3
    million of NGREA to fund a future software upgrade and its service
    contract. The ISMTs directly benefit remote site locations that are
    distant from DOD training ranges by preserving valuable training time
    and vehicle wear and tear during drill weekends. Access to ISMTs and
    other simulation systems ensures Reserve Marines are trained to the
    same tasks, conditions, and standards applicable to Active-Component
    Marines, assuring capabilities remain consistent across the Total
    Force.
        Language and culture training continues to be a significant
    investment opportunity that is yielding a large return on investment
    for all Marine Reservists. Through the Marine Corps-wide initiative
    called the Regional, Culture, and Language Familiarization program, our
    Marines will have a career-long course of study designed to ensure
    Reserve Marines are regionally focused and globally prepared to
    effectively navigate the culturally complex 21st century operating
    environment. Marine Forces Reserve's culture and language programs are
    delivered via a variety of techniques from live instruction to portable
    media to Web-based tutorials and applications. Our language and culture
    section remains fully operationally capable. This enhanced capability
    enables us to support all units within Marine Forces Reserve with
    virtual training and required testing. Additionally, we also support
    other DOD partners in their testing and training. With our Marines
    deploying around the globe, we access and leverage a variety of other
    sources of language and cultural training, such as the Marine Corps'
    Center for Advanced Operational Culture and Language, the Defense
    Language Institute, and Regional Language Centers. These enhanced
    language and culture learning opportunities enable our critical core
    competencies and postures Marine Forces Reserve for success in the
    complex operating environment of the 21st century.
        The Marine Corps is built on trust and teamwork shared between
    individual Marines and their leaders, and considers Equal Opportunity
    training as part of basic leadership development. The policy of the
    Marine Corps is to provide equality of treatment and opportunity for
    all Marines to achieve their full potential based solely upon
    individual merit, fitness, and ability regardless of age, color,
    gender, race, religion, or national origin.
        During 2013, the Marine Forces Reserve Equal Opportunity Advisor
    held three Equal Opportunity Representative Courses and three Senior
    Leadership Workshops. In total, the Marine Forces Reserve Equal
    Opportunity Advisor trained 75 Active and Reserve Component
    servicemembers from across our four major subordinate commands. The
    attendees of the courses received training that consisted of Marine
    Corps and command policies, the forms of discrimination to include
    sexual harassment, identification of behaviors, personnel
    responsibilities, and characteristics of a hostile work environment.
    Additionally, training explained the procedures for seeking resolution
    of Equal Opportunity issues, to include a breakdown of the Informal
    Resolution System, selecting the best method for filing complaints, how
    and when to file formal complaints, how to address reprisal,
    explanation of the complaint timelines, and other external methods to
    seek redress.
        Finally, Marine Forces Reserve continues to integrate safety
    programs with a wide variety of training to reinforce Force
    preservation. The benchmark of an effective safety culture is the
    reduction of mishaps. By continuing the Culture of Responsible Choices
    initiative begun in 2012, all members of the Force, both military and
    civilian, have demonstrated a positive mindset toward making it their
    personal mission to conduct themselves with a focus toward their own
    safety and the welfare of others. Leadership, at every level, continues
    to stress the basic tenets of personal responsibility and
    accountability for decisionmaking and behavior--not only during work,
    but at home, in leisure activities, and in our personal lives as well.
    This engaged leadership technique empowers our personnel to get
    involved when something is just not right.
        No program can capture and mitigate all hazards. Accordingly, we
    continue to focus on the leading cause of death of our personnel, which
    is motor vehicle accidents. Our training center at Naval Air Station,
    Joint Reserve Base, New Orleans, is a tangible example of how we
    incorporate training to fully support our Culture of Responsible
    Choices initiative. At the Center, personnel receive training in the
    safe operation of their motor vehicles, which includes both cars and
    motorcycles. I'm pleased to report that from fiscal year 2012 to 2013,
    fatal motorcycle mishaps and automobile/truck fatalities were reduced
    by 13 percent and 11 percent, respectively.
                                   facilities
        Marine Forces Reserve occupies facilities in 47 States, the
    District of Columbia, and the Commonwealth of Puerto Rico. These
    facilities include 27-owned and 133-tenant Reserve Training Centers,
    three family housing sites, a Bachelor Enlisted Quarters, and General
    Officer Quarters A in New Orleans, Louisiana. Although some Reserve
    Training Centers are located on major DOD bases and National Guard
    compounds, most of our centers are openly located within civilian
    communities. Therefore, the condition and appearance of our facilities
    informs the American people's perception of the Marine Corps and the
    Armed Forces throughout the Nation. The largest part of the facilities
    budget is used to sustain the existing physical plant, focusing on
    infrastructure maintenance that enables Marine Forces Reserve to meet
    Service and combatant command operational requirements.
        The cost of maintaining the physical plant steadily increases with
    the age of the buildings. Authoritative Navy property records list 70
    of our 160 Reserve Training Centers as more than 30 years old and 35
    Reserve Training Centers as more than 50 years old. While supporting
    formal Force structure adjustments and as part of our commitment to
    consolidate to gain efficiencies during the previous 2 years, Marine
    Forces Reserve made a deliberate reduction of more than 10 percent in
    the number of Reserve Training Centers. We improved the overall
    readiness of our facilities inventory and corrected some chronic
    facility condition deficiencies through Marine Forces Reserve
    Facilities Sustainment, Restoration, and Modernization (FSRM) support.
        The Marine Corps' Military Construction, Naval Reserve (MCNR)
    program focuses on new footprint and recapitalization of our aging
    facilities. The construction provided by the annual authorization of
    MCNR funding has been an important factor in moving Marine Forces
    Reserve forward in its facilities support mission. The combined effects
    from our targeted consolidation, FSRM, and MCNR programs have steadily
    reduced the number of inadequate or substandard Reserve Training
    Centers to below 60 percent. Continued annual funding for our
    facilities program will enable Marine Forces Reserve to improve the
    physical infrastructure that supports and reinforces mission readiness
    of our units.
        Beyond the obvious requirements to build, maintain, repair and
    recapitalize our physical inventory are the operational costs
    associated with occupancy. The ``must pays'' of utilities bills are
    relatively constant and immutable. The discretionary costs of
    associated services, such as landscaping, snow removal, and janitorial
    service, are investments in preventive maintenance that keep the
    physical plant accessible, safe, and clean. While these service levels
    are discretionary, inadequate support over time can serve to hasten the
    deterioration of associated infrastructure, especially at sites where
    tree roots intrude on water/sewer lines and snow accumulations and
    thaws combine to damage pavement. Accelerated degradation may result
    from underfunded services, which can amplify future program costs.
        In an attempt to lessen some of the burden on the energy budget,
    and in accordance with national mandates, Marine Forces Reserve
    completed energy assessments at our owned sites and continues to
    implement the recommendations from those assessments as funds are
    available. Priority is given to the sites that are the biggest energy
    users nationally and those projects which offer the best return on
    investment. Since 2010, 30 solar/photovoltaic, energy, HVAC efficiency,
    direct digital control, and efficient lighting projects have been
    completed at Reserve Training Centers and 18 more solar/photovoltaic
    projects are earmarked for funding during fiscal year 2014.
    Applicability of renewable energy credits will continue to be pursued.
    Three small--100 kilowatt hour--wind turbines installed last year
    continue to yield savings for the Department of the Navy in Illinois,
    Michigan, and Texas. Our investment in these renewable energy
    technologies improves energy security, efficiency, and protection
    against future rate hikes for our geographically dispersed sites. There
    are still significant opportunities to improve the energy and water use
    efficiency of Reserve Training Centers and to expand use of renewable
    sources contingent on available funds to do so.
        To implement sustainable design principles, Marine Forces Reserve
    uses the U.S. Green Building Council's (USGBC) Leadership in Energy and
    Environmental Design (LEED) Rating System for New Construction and
    Major Renovation. LEED is a performance-oriented system based on
    accepted energy and environmental principles where credits are earned
    for satisfying criteria designed to address specific environmental
    impacts inherent in design, construction, operations, and maintenance
    of buildings. During fiscal year 2013, the Marine Forces Reserve
    headquarters building was recognized as meeting LEED Silver criteria.
    In addition, every new FSRM or MCNR project is designed for energy
    efficiency and sustainability in accordance with LEED principles.
        Our environmental program continues to excel. I consider
    environmental compliance a priority for the command, and reinforce
    environmental compliance by directing continual training for our
    Marines and Sailors at each unit and site. As agents of the Federal
    Government, we are entrusted by the public to make environmental
    considerations an integral part of installation and range management
    programs, training activities, equipment fielding, and construction
    planning processes. The Marine Forces Reserve Environmental Management
    System provides the Force with a systematic approach to integrate these
    environmental considerations and establishes a framework for continual
    environmental improvement over the long term. Furthermore, our
    environmental program supports the FSRM and MCNR programs by ensuring
    compliance with the National Environmental Protection Act for each
    project and action. Due to the geographic disparity of our sites,
    appropriate long-term funding is necessary to assure consistent
    environmental monitoring and associated training programs across the
    Force, as well as to avoid an increased risk of noncompliance.
        Marine Forces Reserve manages its national training infrastructure
    portfolio strategically. Marine Forces Reserve collaborates with all of
    our different hosts to meet installation support delivery and
    infrastructure efficiency objectives while simultaneously maintaining
    unit combat readiness. Implementation of the U.S. Marine Corps' Force
    Structure Review decisions provided an opportunity to better align
    mission changes with reduced facilities infrastructure. As the process
    moves forward, the total impacts will be analyzed to gain efficiencies
    and reduce the backlog of unfunded MCNR projects, which enables
    targeted investment in those sites that provide the best operational
    return on investment. Marine Forces Reserve will exploit opportunities
    to consolidate multiple smaller sites within the same geographic area
    into robust sites to reduce overall facility footprint, and associated
    operational and sustainment costs.
                     health services and behavioral health
        Our focus on Marines, Sailors, and their families remains our
    highest priority. Therefore, we are keenly attentive to maintaining
    their health and total fitness. During dwell, our health services
    priority is to attain and maintain the DOD goal of 75 percent Fully
    Medically Ready. In fiscal year 2013, Marine Forces Reserve individual
    medical and dental readiness rates were 73 percent and 87 percent
    respectively. We aggressively worked towards improving medical
    readiness by effective utilization of Medical Readiness Reporting
    System capabilities to enable accurate monitoring and identify unit-
    level actions necessary to attain readiness goals. Supporting efforts
    will focus on advocating funds and tailoring support for various
    Reserve Component Medical/Dental Health Readiness Programs including
    utilizing to the fullest extent possible a combination of programs to
    significantly aid in sustaining our total readiness, such as our
    Reserve Health Readiness Program contract services, Post-Deployment
    Health Reassessment, Reserve TRICARE Medical and Dental Programs, and
    the Psychological Health Outreach Program. Additionally, our personnel
    participate in Force Readiness Assistance & Assessment Program unit
    inspections. These inspections provide oversight for the current health
    status of the Force, specifically at unit levels that provides an
    ability to monitor compliance requirements, policy adherence, and
    meeting unit goal initiatives.
        The Reserve Health Readiness Program (RHRP) is the cornerstone for
    individual medical and dental readiness and Marine Forces Reserve has
    benefited from increases in overall readiness as a result of this
    program. This program funds contracted medical and dental specialists
    to provide medical and dental-specific services to units that do not
    have direct medical or dental support personnel assigned and are not
    supported by a military treatment facility. This RHRP contract was
    further renewed for fiscal year 2014. During fiscal year 2013, the RHRP
    performed 20,036 Periodic Health Assessments, 15,057 in combined Post-
    Deployment Health Reassessments/Mental Health Assessments, and 13,945
    Dental Procedures. In addition, the TRICARE Reserve Select for medical
    coverage and TRICARE Dental Program are two premium-based, cost-
    effective healthcare programs offered for voluntary purchase to our
    Reserve Marines, Sailors, and their families.
        The Marine Corps has a robust behavioral health program to address
    a myriad of issues including Substance Abuse, Suicide, Operational
    Stress, Domestic Violence, and Child Abuse. They work in conjunction
    with Navy Medicine programs addressing behavioral health. In regard to
    specific fitness efforts, Marine Forces Reserve has instituted
    Operational Stress Control and Readiness (OSCAR) training at all
    levels. This training provides knowledge, skills, and tools required to
    assist commanders to prevent, identify, and manage combat and
    operational stress concerns as early as possible. This training is
    provided to servicemembers of units that are deploying for more than 90
    days during pre-deployment training.
        Navy Bureau of Medicine continues to support behavioral health
    through various independent contracted programs, such as the Post-
    Deployment Health Reassessment/Mental Health Assessments and the
    Psychological Health Outreach Program. The Post-Deployment Health
    Reassessment identifies health issues with specific emphasis on mental
    health concerns, which may have emerged since returning from
    deployment. The Psychological Health Outreach Program addresses
    postdeployment behavioral health concerns and crisis-related
    interventions through social worker contractors. These social workers
    provide an array of referral services in the community to include
    follow-up with servicemembers. These programs have proven effective in
    the overall management of identifying those Marines and Sailors who
    need behavioral health assistance and have provided an avenue to those
    servicemembers who seek behavioral health assistance.
        Given that signs of operational and combat stress and suicide can
    manifest long after a service member returns home from deployment,
    there are unique challenges presented to Reservists who can be isolated
    from the daily support network inherent in one's unit and vital medical
    care. Encouraging Marines to acknowledge and vocalize mental health
    issues is also a ubiquitous challenge facing our commanders. We are
    actively combating the stigma associated with mental healthcare through
    key programs, such as the Yellow Ribbon Reintegration Program, within
    demobilization and reintegration processes of our Reserve Marines
    following deployment. Further, we market all our behavioral health
    initiatives and programs through our Marine Forces Reserve portal Web
    site and during key Marine Corps forums throughout the year. Your
    continued support of these programs is greatly appreciated.
        There are five suicide prevention initiatives that we leverage for
    our Reserve Marines and Sailors: (1) In-theater Assessment. Reservists
    who exhibit or are struggling with clinically significant issues should
    be seen by competent medical authorities and evaluated for post-
    deployment treatment with follow-up decisions made prior to their
    return home; (2) Post Deployment Health Reassessment. It is important
    that if any issues emerge during the Reservist's Post Deployment Health
    Reassessment that they are immediately evaluated and referred for
    treatment by the clinician interviewer. This includes referral
    recommendations based on available local resources, such as the VA or
    private mental health providers; (3) Psychological Health Outreach
    Program. I enthusiastically recommend continued delivery of the
    Psychological Health Outreach Program, which is an essential program
    for treatment referral and follow up to ensure our service members are
    receiving the appropriate behavioral health services; (4) Care
    Management Teams. This suicide prevention initiative includes the VA's
    OIF/OEF care management teams that are a readily available resource for
    our Reservists. The VA assigns a primary care manager, who is
    responsible for referral and follow-up, to any Reservist who has a
    healthcare issue; (5) Never Leave a Marine Behind Suicide Prevention
    Course. We continue to implement the Marine Corps' Junior Marine, Non-
    Commissioned Officer, Staff Non-Commissioned officer, and Officer
    modules of the Never Leave a Marine Behind Suicide Prevention Course.
    The Never Leave a Marine Behind series provides the best skills and
    tools available to Marines, Sailors, and their leaders so that they can
    better cope with the challenges of combat and the rigors of life both
    deployed and in garrison. Marine Forces Reserve has trained hundreds of
    Marines who can deliver the Course at our 160 Reserve Training Centers
    throughout the country.
        Additionally, any Reservist and their family can access Marine
    Corps installations' behavioral health programs through Marine Corps
    Community Services programming while they are on any type of Active-
    Duty orders. When they are not on Active-Duty orders, Military
    OneSource provides counseling, resources, and support to Reserve
    service members and their families anywhere in the world. The Marine
    Corps' DSTRESS Line is also now available to all Reserve Marines,
    Sailors, and family members regardless of their activation status.
        Another significant resource is our Chaplain Religious Enrichment
    Development Operations (CREDO) Program, which is run by our Active and
    Reserve Chaplains and Religious Program Specialists. The CREDO program
    at Marine Forces Reserve conducts two distinct retreat programs:
    Marriage Enrichment Retreats, which supports our efforts to strengthen
    our families, and Personal Resiliency Retreats, which are designed to
    foster individual service member's health and wellness. The direct
    effort to improve a culture of responsible choices and build resiliency
    across the Force is accomplished at numerous strategically remote
    training sites usually away from the resources of large military bases.
    During fiscal year 2013, a total of 278 married couples and 35
    individuals participated in 10 Marriage Enrichment Retreats and 4
    Personal Resiliency Retreats respectively. For fiscal year 2014, seven
    Marriage Enrichment Retreats and nine Personal Resiliency Retreats are
    projected. Anecdotal evidence based on testimonials and survey feedback
    by participants strongly suggests that these retreats are effective in
    strengthening military marriages and individuals' core values, which in
    turn, enhance the readiness of our Force.
                     sexual assault prevention and response
        Eradicating sexual assault throughout Marine Forces Reserve is a
    top priority. Efforts towards this goal have continued with increased
    momentum. In order to improve victim response capabilities, we have
    added five professional full-time civilian positions to our Sexual
    Assault Prevention and Response staff at our headquarters office.
    Together, along with the Sexual Assault Prevention and Response Program
    Manager, they manage the Sexual Assault Prevention and Response Program
    at all of the Marine Forces Reserve sites throughout the United States
    and provide case management to victims once a report is made. In
    addition to the civilian staff, more than 300 Marines and Sailors were
    screened and trained, and achieved certification through the DOD Sexual
    Assault Advocate Certification Program. Once certified, they were
    appointed by their commanders to be Uniformed Victim Advocates at their
    respective Reserve Training Centers. Our prevention strategy is
    holistic, and emphasizes setting the example of discipline from all
    levels of command. I, along with the four commanding generals of our
    major subordinate commands, again provided in-person Sexual Assault
    Prevention and Response training to all of our colonel-level
    commanders. The focus of this 2-day training highlights how sexual
    assault is inconsistent with our Marine Corps ethos and core values.
    Multiple all-hands training events are held throughout the year and all
    non-commissioned officers continue to receive additional ``Take a
    Stand'' bystander intervention training.
                                quality of life
        We remain passionate in ensuring an appropriate balance and
    effective performance of our quality of life programs and services to
    guarantee our programs and services meet the needs and expectations of
    our Active-Duty personnel and Reservists, including our Reserve
    servicemembers in the Individual Ready Reserve. In doing so, we
    continue to operate Family Readiness Programs, revitalize services, and
    proactively reach out to and keep faith with our Marines, Sailors, and
    their families.
        To meet the challenge of deployments, and to maintain a constant
    state of readiness, the Marine Corps continues to promote family
    support through our Family Readiness Officer (FRO) Program. This
    program is staffed by either civilians or Active-Duty Marines at the
    battalion/squadron level and above. Additionally, we continue to
    leverage modern communication technologies and social media, such as
    the e-Marine Web site, to better inform and empower family members--
    spouses, children and parents--who have little routine contact with the
    Marine Corps and often live considerable distances from large military
    support facilities.
        Our Marine Corps Family Team Building (MCFTB) programs offer
    preventative education and family readiness training to our Marines,
    Sailors, and family members. MCFTB training events were delivered in
    person and through interactive webinars at Marine Corps units across
    the United States. During fiscal year 2013, MCFTB conducted 224
    training events in which 8,861 Marines, Sailors, and family members
    received critical and vital information and support.
        In regard to personal and professional development, Reservists take
    advantage of our partnership with tutor.com, which offers access to our
    Marines, Sailors, and their families to 24/7 no-cost, live online
    tutoring services for K-12 students, college students, and adult
    learners. Active and Reserve Marines and their families are also
    provided remote access to language courses through Marine Corps
    Community Services Transparent Language Online program. This program
    supports more than 90 languages and delivers English as a Second
    Language. Additionally, the Marine Corps' partnership with the
    Peterson's Online Academic Skills Course helps build math and verbal
    skills to excel on the job, pass an exam, advance in a career, or
    continue education. This program diagnoses the current level of reading
    comprehension, vocabulary, and math skills and teaches the concepts and
    skills needed to increase proficiency in each of these academic areas.
    This course is free for servicemembers and their families.
        Our Semper Fit program remains fully engaged to deliver quality,
    results-based education and conditioning protocols for our Marines and
    Sailors. The High Intensity Tactical Training (HITT) program includes
    hands-on strength and conditioning courses, online physical fitness
    tools, a mobile application for servicemembers to access anywhere at
    any time, and recorded webinars, as well as instruction on injury
    prevention, nutrition, and weight management. Our Marines' and Sailors'
    quality of life is also increased through various stress management and
    esprit de corps activities, such as unit outings and participation in
    competitive events. These programs are key to unit cohesion,
    camaraderie, and motivation.
        The Marine Corps' partnership with Child Care Aware of America
    (formerly known as the National Association of Child Care Resource and
    Referral Agencies) continues to provide great resources for Marines and
    their families in selecting child care before, during, and after a
    deployment. Our off-base child-care subsidy program helps families of
    our Reservists locate affordable child care that is comparable to high-
    quality, on-base, military-operated programs. This program provides
    child-care subsidies at quality child care providers for our Reservists
    who are deployed in support of overseas contingency operations and for
    those Active-Duty Marines who are stationed in regions that are
    geographically separated from military bases and stations.
    Additionally, our Marine families--Active and Reserve--who are enrolled
    in the Exceptional Family Member Program are provided a case manager
    and offered up to 20 hours of free respite care per month for each
    qualified exceptional family member. This gives our families confidence
    that their family member will be taken care of when they are in need of
    assistance.
        The Yellow Ribbon Reintegration Program has been integrated into
    the Marine Corps Unit, Personal, and Family Readiness Program at every
    command level with full-time Reserve and Deputy Reserve Family
    Readiness Officers (FRO). The responsibility of executing Yellow Ribbon
    in accordance with the legislation, and further defined by Marine
    Forces Reserve policy, resides with the individual unit commander. This
    ensures commanders remain engaged with the challenges and issues facing
    their Marines, Sailors, and families, and is in line with Force
    Preservation efforts.
        In fiscal year 2013, Marine Forces Reserve hosted 103 events and
    participated in 10 Joint Service events with a total of 4,651
    attendees, which includes Marine Forces Reserve Marines, Sailors, and
    their qualifying guests. The highest frequency of events were
    predeployment trainings.
        In fiscal year 2014, the Marine Corps anticipates continuation of
    the Yellow Ribbon Reintegration Program, but recommends a reduction in
    the number of events due to an anticipated decrease in combat
    operations. In light of future budgetary concerns, Marine Forces
    Reserve has worked internally during fiscal year 2013 with its Marine
    Corps Family Team Building staff and Family Readiness Officers to
    develop alternative methods of delivery of the Yellow Ribbon training
    in order to ensure that the Yellow Ribbon mission can be accomplished
    regardless of funding levels. This includes developing webinars, mail-
    outs, and working with the Family Readiness Officers to leverage local
    resources at no cost.
        We continue to be supportive of Military OneSource, which provides
    our Marines, Sailors, and their families with an around-the-clock
    information and referral service via toll-free telephone and Internet
    access for counseling and on subjects such as parenting, child care,
    education, finances, legal issues, deployment, crisis support, and
    relocation.
        Our Marines, Sailors, and their families, who sacrifice so much for
    our Nation's defense, should not be asked to sacrifice quality of life.
    We remain a staunch advocate for these programs and services and
    continue to reintegrate and align our programs and services to meet
    current and future challenges. The combined effect of these programs is
    critical to the readiness and retention of our Marines, Sailors, and
    their families, and your continued support of these programs is greatly
    appreciated.
       supporting our wounded, ill, or injured marines and their families
        We continue to work closely with the Wounded Warrior Regiment (WWR)
    to ensure there is one standard of care for all Wounded, Ill, or
    Injured (WII) servicemembers--whether they are Active or Reserve. The
    WWR holds high levels of subject matter expertise concerning the unique
    challenges faced by Marine Reservists and has established care assets
    accordingly. For example, the WWR has dedicated staff--the Reserve
    Medical Entitlements Determinations Section--to specifically maintain
    oversight of all cases of Reservists who require medical care beyond
    their contract period for service-connected ailments. We requested
    increased partnerships with the WWR and in April 2013, the Regiment
    assigned a liaison to my headquarters command to provide care and
    support to our WII Marines and unit command elements. Additionally, the
    WWR dedicated five Reserve-specific Recovery Care Coordinators to
    provide one-on-one transition support and resource identification
    required to support WII Reservists and families who are often living in
    remote and isolated locations. The WWR also has District Injured
    Support Coordinators--geographically dispersed mobilized Marine
    Reservists--who assist Reserve Marines throughout the country, which
    includes face-to-face contact.
        Regardless of the global security environment, recovery care
    support must be enduring. We will continue to work with the WWR to
    establish resources and programs that address the unique needs of our
    Reserve population.
                                   conclusion
        The Marine Corps is our Nation's crisis response force and will
    continue to be most ready when our Nation is least ready. As part of
    the Marine Corps Total Force, Marine Forces Reserve's commitment to
    organize, man, train, equip, and provide forces to augment, reinforce,
    and sustain the Active Component in support of combatant commander
    requirements remains so very vital now and for the future. We live in a
    world of increasingly complex security challenges across the globe and
    fiscal uncertainty at home, but we stand ready, relevant, and
    responsive to meet any current operational requirements and
    energetically respond to future emergent contingencies. Your continued
    unwavering support of the Marine Corps Reserve and its associated
    programs is greatly appreciated. Semper Fidelis!

        Senator Durbin. Thank you very much.
        We have a roll call vote at 11 o'clock. I am going to try
    to make sure that we have one full round here before that
    occurs. So it will be about 4 or 5 minutes for each of us, and
    let me start.
        Mr. Secretary, sexual assault is a very serious problem,
    and we just debated it at length in the Senate. Two competing
    views on what should be done, Senator McCaskill representing
    one, Senator Gillibrand, the other.
        In the 2012-2013 school year, there were 15 reported cases
    of sexual assault at the Naval Academy. The latest Department
    of Defense report found that one in seven midshipmen said they
    experienced unwanted sexual contact within the last year.
        The Navy recently disqualified 151 sailors from positions
    of trust, ranging from sexual assault counselors to recruiters,
    after a review directed by the Secretary of Defense.
        This subcommittee included $25 million to expand the
    Special Victims' Counsel pilot program to all the services. It
    will ensure every victim has the legal assistance and support
    that he or she needs throughout the criminal justice process.
        I realize we just passed this a few months ago, but I would
    like to have your comments on what we have suggested, and can
    you tell us what is being planned or what you are doing to
    ensure that sailors are ethically qualified and properly
    trained to serve in positions of trust?

                       SEXUAL ASSAULT PREVENTION EFFORTS

        Mr. Mabus. Thank you, Senator.
        We are doing a wide range of things, and I want to thank
    this committee and thank Congress for changing a lot of the
    ways we can attack sexual assault in the military.
        At the very beginning of my tenure, I established a sexual
    assault response officer who reported directly to me, and I see
    her on a very routine basis.
        And one of the things that we have seen, particularly in
    the last 2 years, is we have seen the number of reports go up
    dramatically in both the Navy and the Marine Corps. And we
    believe this is because people are beginning to be more
    comfortable and more confident in the process that they face
    when they report sexual assault.
        There is far more work to be done, but we do think we are
    getting traction. For example, we looked at where the major
    problems in sexual assault were, and they were not at boot camp
    in Great Lakes, but they were immediately following that, in
    the A schools that most of our sailors go to, and so we put a
    special emphasis on that.
        We are doing interactive role playing with sailors, and we
    visited every base and fleet concentration area around the
    world.
        The senior leadership in both the Navy and Marine Corps has
    been exceptionally involved in this. We are doing things like
    running shore patrols at night in fleet concentration areas.
    And we are moving to treat the Naval Academy exactly the same
    way we treat the fleet, because we are finding ways in the
    fleet to attack this terrible, insidious issue.
        And in the remainder of my time, I would like to talk just
    for a second about that 151 number. The Navy removed five
    people from positions of trust for serious issues. The other
    146, when we took a wider look, were mainly for administrative
    things. They hadn't gotten one piece of paper signed. There
    were four people at the Naval Academy who didn't have Ph.D's
    and needed it to teach. It had nothing to do with sexual
    assault.
        The five that we removed, we found that we removed them
    because we didn't find them in our first screening process
    because we only went back 36 months, so we have changed that.
    We are going back through an entire career now.
        And we have this very, very rigorous prescreening process.
    Before you can become a recruiter, before you can become a
    drill sergeant, before you can deal with sailors or marines, we
    take you through this screening process. I think that is one of
    the reasons the numbers are so low, five for the Navy, and zero
    for the marines.
        Senator Durbin. Mr. Secretary, I can't speak for any other
    Senators, but for myself, this is an issue which we will
    continue to monitor, which we must, at our level and at your
    level as well.
        Senator Cochran.

                             ASIA-PACIFIC REBALANCE

        Senator Cochran. Thank you, Mr. Chairman.
        Mr. Secretary, thank you for your cooperation and
    attendance here, and the entire panel.
        I first want to congratulate you for your leadership and
    the serious way in which you are handling your
    responsibilities.
        In looking toward some of the issues that have been before
    the committee as we try to allocate resources across an ever-
    growing challenge, there is not enough money to do all the
    things we would like to be able to do in defense of our
    country, but we have to pick and choose.
        We heard a lot about rebalancing the Navy toward the
    Pacific. Several months ago, that seemed to be the issue that
    was being carefully weighed and was the subject of hearings. I
    wonder now, with the developments in Eastern Europe and
    elsewhere, are we ahead of ourselves? Are we reassessing the
    rebalancing toward the Pacific in exchange for more attention
    to where the action seems to be now, the Crimean Peninsula,
    particularly?
        Mr. Mabus. Thank you, Senator.
        The rebalance to the Pacific continues, and it continues to
    be a focus for the Navy, and I can give you example after
    example, moving from 55 percent of our fleet to 60 percent of
    our fleet in the Pacific, another amphibious ready group to
    move in a couple of years there, moving marines rotationally
    into Australia, rotationally and permanently to Guam, the
    forward-stationing of four littoral combat ships in Singapore,
    and the placing of our most modern, most up-to-date platforms
    in the Pacific.
        None of that is to take away from the other
    responsibilities that the Navy has. And one of the reasons the
    CNO, the Commandant, and I have stressed so much shipbuilding
    and presence is so that we can respond to wherever the Nation
    needs us to respond.
        We are a global Navy, and the defense strategic guidance
    that was put out by the President in 2012 said that we should
    focus on three areas. One was the western Pacific, but one was
    the Arabian Gulf, and that part of the world, the Central Asia
    part of the world, and one was on building partnerships.
        The Navy, the Marine Corps, have been focused on that so
    that when a crisis arises whether in the Black Sea or anywhere
    else in the world, that we are there with the appropriate tools
    to take on whatever task the Nation and the Commander in Chief
    gives us.
        Admiral Greenert. Senator Cochran, 30 seconds. I have a
    little folder in front of you. It has the Asia-Pacific
    rebalance. I just thought somebody might ask about it.
        But anyway, it shows we are on this track.
        I call your attention--we have 21 ships in the EUCOM arena
    right now, or area of responsibility, and we are putting four
    destroyers in Rota, so we are, as the Secretary said, forward-
    stationing in the European region as well as in the Pacific
    region.
        I think we have it covered reasonably well, sir.
        Senator Cochran. Thank you.
        General, would you like to comment on the role of the
    Marine Corps in this?
        General Amos. Senator, I would be happy to.
        First of all, we have been aggressively rebalancing to the
    Pacific, although we never left. Today, as we meet, we will
    have about 20,000 marines--we do today--about 20,000 marines
    west of the International Date Line.
        If you remember, Secretary Panetta said, ``I want 22,500
    marines,'' so we are headed out that direction.
        I think back to the strategy though, we need to first--we
    do, as the Service Chiefs--look at the joint force. Yes, we may
    be rebalancing to the Pacific, but there are other elements of
    the joint force that are available for Europe.
        And my sense is that when the DSG was rolled out 2 years
    ago, it was maybe marketed just a little bit misleadingly.
    There was never the intent for any of the Chiefs to vacate
    Europe or vacate Africa or SOUTHCOM (Southern Command). It was
    simply to take the major spotlight and turn it on the Pacific.
        I think today, what is happening in Central Europe verifies
    and validates the fact that we still need to have a very close,
    watchful eye on that part of the world, because it is a
    dangerous part of the world in dangerous times.
        Senator Cochran. Thank you, Mr. Chairman.
        Senator Durbin. Thank you.
        Senator Mikulski.
        Senator Mikulski. Mr. Chairman, Senator Cochran, first of
    all, I am very proud of this committee and the way we have
    supported the United States military. And we have worked on
    both sides of the aisle, and we have worked on both sides of
    the dome.
        And the fact that this Appropriations Committee and this
    subcommittee, we were able to take the Murray-Ryan budget and
    actually turn it into a real appropriations committee.
        So I am sure that for you, it was important--all of you--
    that it gave you two things. It gave you certainty, and it
    canceled sequester, which has been a source of heartburn to the
    leadership and your ability to turn.
        We hope to be able to, again, do this for fiscal 2015. We
    are moving in a very brisk way to meet our obligations. We are
    going to want to talk with you as we move through our process,
    supporting the President's goals, the outline of your excellent
    testimony today is, if we continue this momentum of 2014 and
    2015, how could it get derailed or diluted in fiscal 2016 if we
    go back to sequester?
        So we want you to continue to have these building blocks
    that you need. So that is just an overall statement.
        But again, we are going to continue the effort that is the
    hallmark of this subcommittee and so on, bipartisan, bicameral,
    to support our United States military.

          MILITARY CULTURE, GENDER EQUALITY, SEXUAL ASSAULT PREVENTION

        So this, though, gets to my question. We support your goals
    and the President's goals of the military having the best
    tools, the best ships, the best planes, and the technology, but
    it is as only as good as the people, which takes me to the
    culture.
        Senator Durbin has raised the question of sexual assault.
    My concerns about this are well-known.
        But I wonder, what is being done by the leadership to get
    the entire Navy and Marine Corps ready for the new demography?
    You are going to have more women serving in combat roles. They
    were outlined in great detail in General Amos's testimony. We
    have more women serving in more combat positions.
        You are going to have more openly gay members serving in
    the military. And we continue to have this issue of assault not
    only on women, but on men as well.
        So where does the culture come in terms of the training so
    that they then continue to be one of the most esteemed
    institutions in this country? The military is the most esteemed
    institution.
        I am going to turn to you, Secretary Mabus, and then to our
    Admirals and our Generals.
        Because the Durbin question, which is an excellent
    question, and the women have worked on what happens with victim
    assistance, prosecutorial reforms, great things. But those are
    after the fact.
        What do we do in terms of a culture that prevents these
    things from happening, where men and women in the military
    continue to respect other men and women in the military,
    regardless of who they are, what they look like, or their
    personal affections?
        Mr. Mabus. That is the most important thing that we are
    trying to do, Senator.
        The changes that we have made in terms of how you treat
    shipmates with respect, how an attack such as sexual assault is
    an attack. It is a crime. It is not worthy of this military.
    And it has the ability to fray and undo a lot of the good
    things that the military has done.
        Very briefly, in terms of integrating women into the Navy,
    we have now opened up every single MOS (Military Occupation
    Specialty) and position in the Navy, except for Special Forces,
    and that is not a decision that Navy gets to make.
        I was at Kings Bay, our submarine base. I asked there how
    the integration of women on submarines has gone, and the big
    news was there was absolutely no news. It was just a matter of
    course. And nobody saw anything even remotely remarkable or
    unusual about that.
        I think the same thing with the end of Don't Ask, Don't
    Tell, and having gays and lesbians serving openly in the
    military. There just has not been the feared or maybe even
    anticipated reaction to that, and I think that shows a change
    in the culture of our military.
        Admiral Greenert. Madam Chairwoman, we found that we do a
    pretty good job, and this is based on statistics of how people
    behave, what their conduct is, and our feedback when they enter
    the service. In other words, a recruit training center and in
    our A schools, the kids, based on how they perform, how they
    behave, they get it.
        But then they go out to sea and we say, how do you refresh
    them? Because it is a relentless, continuing challenge to make
    sure that they understand what is expected of them and how we
    work together in character development and leadership
    development.
        So we have stood up, as you are well-aware, at the Naval
    Academy, we have an Ethical and Leadership Center, which has
    fed a part of our development of officers, both at the Academy
    and otherwise. And we need to continue that through their
    career.
        So what we have is we have a leadership and character
    development center----
        Senator Mikulski. Excuse me, Admiral. I can see my
    colleagues are getting edgy. If we could keep the question or
    answer short, or maybe you need to submit this for the record.
    I am very sensitive to the fact that there are three other
    Senators that have to ask questions.
        Admiral Greenert. I will summarize. It is a continuum,
    ma'am, from E-1 to E-10, E-9, O-1 to O-10.
        I will submit it for the record.
        [The information follows:]

        Understanding the realities of sexual assault and the conditions
    under which they occur is a primary, continuous activity. Prevention
    initiatives continue using a multi-faceted approach focusing on command
    climate; deterrence; and bystander intervention. Navy commanders are
    charged with fostering an environment where behaviors and actions that
    lead to sexual assault, as well as sexual assault itself, are not
    tolerated, condoned or ignored.
        To prevent assaults, the Navy needs to eliminate behaviors on the
    left side of the continuum of harm. These behaviors include sexist
    behaviors (comments, jokes, and behaviors meant to demean people based
    on their sex or sexual orientation), and sexual harassment (unwanted
    behaviors of a sexual nature that create a hostile work environment).
    In addition to focusing on the elimination of sexual harassment, the
    Navy continues to provide multi-faceted messaging about the Sexual
    Assault Prevention and Awareness program, Cultural awareness, and the
    effects of alcohol on interpersonal relationships and individual
    decisionmaking. The first step in helping to eliminate these behaviors
    is through training.
        The Navy has an established training continuum for Enlisted
    Personnel:
          Recruits.--Receive 3 hours of Command Managed Equal Opportunity/
            Sexual Harassment training during week three of recruit
            training. (SAPR-Fleet)
          Pre-Technical Training.--Per NETCINST 1500.11, Navy Military
            Training Program comprises 2 hours of training delivered to all
            enlisted sailors attending formal schoolhouse courses during
            their first year of service following recruit training. Other
            relevant topics in this 2-day course include: Decisionmaking;
            Hazing; Sexual Harassment; Fraternization; Blue-on-Blue
            Violence; and Sexual Activity. Each Sailor also receives 4.5
            hours of focused Bystander Intervention skills training during
            the same introductory course period. Further, ``No Zebras'' and
            other ``edutainment'' training funded by DON SAPRO has been
            expanded to concentrate on ``A'' school locations
          Chief Petty Officer/Petty Officer Indoctrination.--All selectees
            (Chief Petty Officer, First Class Petty Officer, Second Class
            Petty Officer, and Third Class Petty Officer) attend leadership
            courses to receive 1 hour of training on Equal Opportunity/SH
            policy, in addition to a one hour Sexual Assault Awareness and
            Prevention Module.
          Senior Enlisted Academy (SEA).--Senior Enlisted personnel (E7-E9)
            receive 5 hours of Command Climate training during the SEA
            Residence Course in Newport, Rhode Island.
          Command Master Chief/Chief of the Boat (CMC-COB)/Command
            Leadership School.--SAPR-CLS is delivered during 2 hours of
            focused time on the topic of sexual assault prevention and
            response. Additional focus on the responsibilities of command
            leaders to foster climates free of destructive behaviors is
            delivered in both case study and seminar format throughout the
            course of instruction. The audience includes CMC-COB students,
            together with PCO, PXO, and MC students in small groups.
          Command Indoctrination.--Per OPNAVINST 1740.3C, a Command
            Indoctrination Program must include Navy Pride and
            Professionalism (NP&P) training and be provided to all newly
            reporting personnel within 30 days upon arrival. NP&P includes
            such topics as: Diversity; Pride in Self and Core Values;
            Violent Behavior Awareness; and Sexual Harassment. Additional
            command indoctrination topics include Sexual Assault awareness
            training.
          General Military Training (GMT).--Per NAVADMIN 386/11, Sexual
            Assault Prevention and SH Training is delivered face-to-face
            annually.
        The Navy has an established training continuum for Officers:
          Naval Reserve Officer Training Core (NROTC).--Students receive
            two hours of training during fall and spring indoctrination and
            prior to summer cruise. It is also mandated that all Naval ROTC
            units 4/C-2/C Midshipmen receive SAPR-F training, while all 1/C
            Midshipmen receive SAPR-L.
          Officer Candidate School (OCS).--Students receive one hour of
            training during week one of the school.
          Officer Development School (ODS).--Staff Corps Officer Students
            receive one hour of training during week one of the school.
          United States Naval Academy (USNA).--Students receive Sexual
            Harassment and Prevention Education on a progressive schedule,
            to include both SAPR-F and SAPRL through-out all 4 years at the
            Academy.
          Command Indoctrination.--Per OPNAVINST 1740.3C, a Command
            Indoctrination Program must include Navy Pride and
            Professionalism (NP&P) training and be provided to all newly
            reporting personnel within 30 days upon arrival. NP&P includes
            SH training.
          General Military Training (GMT).--Per NAVADMIN 386/11, Sexual
            Assault Prevention and SH Training is delivered face-to-face
            annually.
          Commanding Officer (MC, CO, XO)/Command Leadership School
            (CLS).--SAPR-CLS is delivered during two hours of focused time
            on the topic of sexual assault prevention and response.
            Additional focus on the responsibilities of command leaders to
            foster climates free of destructive behaviors is delivered in
            both case study and seminar format throughout the course of
            instruction. The audience includes PCO, PXO, and MC students,
            together with CMC-COB students in small groups.
        Every Sailor, E-1 to O-10, received targeted SAPR training through
    either SAPR-Leadership (SAPR-L), SAPR-Fleet (SAPR-F), SAPR-General
    Military Training for Khakis (SAPR-GMTK), the DOD directed SAPR-Stand
    down, or any combination of the training efforts.
        To ensure the right dosage of training in the Fleet, decentralized
    training is ongoing in fiscal year 2014. General Military Training
    (GMT) remains an annual requirement that is directed by legislation.
    The SAPR GMT syllabus has been updated to align with DOD core
    competencies and Learning Objectives. To meet NDAA 2012 requirements,
    the Navy's Professional Military Education (PME)/leadership course
    curriculum has been updated where SAPR training gaps existed.
        Bystander Intervention (BI) is another key element of our
    prevention efforts. Bystander Intervention has three major goals: Raise
    the awareness of Sailors about the continuum of behaviors that can lead
    to battering, sexual harassment, sexual assault and other forms of
    abuse; challenge Sailors to play an active role in reducing sexual
    violence, harassment, and abuse and discourage them from being passive
    bystanders; and, empower Navy leaders to mentor and educate their peers
    and Sailors on these issues. Specifically:
      --All Training Support Center/``A'' schools deliver BI training to
            post-recruit training Sailors (see above).
      --SAPR-Fleet training is completed during recruit training.
      --The Coalition of Sailors Against Destructive Decisions chapters
            provides peer-to-peer mentoring and SAPR strategic messaging.
      --Fleet Workshops and Personnel Readiness Summits are delivered to
            the Fleet concentration areas; programs incorporate Bystander
            Intervention training and innovative sexual assault training
            edutainment (e.g., Sex Signals, No Zebras, InterAct).
        In Q1 of fiscal year 2015 we are taking BI even further with
    ``Bystander Intervention to the Fleet'' whereby we will create a cadre
    of Sailors to deliver Fleet-specific skills based training. This cadre
    of Trainers will travel to Fleet concentration areas, both CONUS and
    OCONUS, ashore and afloat, to deliver training. Fleet wide training
    would reach beyond the SAPR realm and address other destructive
    behaviors on the continuum of harm.
        In 2015, we will also introduce a new generation of training
    tentatively titled ``Living our Core Values: Charting the Course.''
    This training would address the grey area between sexual harassment and
    sexual assault--those left side of the continuum of harm behaviors that
    when left unchecked lead to a detrimental command climate where
    undesirable outcomes are inevitable. The training would include
    comprehensive, personal leadership development (Resilience) which could
    include physical fitness, leadership, ethics, and justice training
    (including self-assessment), bystander effectiveness training (for
    drugs, alcohol, SAPR, harassment, hazing, bullying and other issues
    which are related to destructive behaviors), operational stress control
    and suicide prevention, and alcohol abuse training. These are positive,
    developmental initiatives which allow individuals to transcend human
    behavioral issues, and are underscored by personal accountability.

        Senator Durbin. Thank you very much, Admiral.
        Senator Shelby.
        Senator Shelby. Thank you.
        Senator Mikulski. All of it for the record.

                        LITTORAL COMBAT SHIP WAY FORWARD

        Senator Shelby. Mr. Secretary, the Department of Defense,
    as you well know, has decided to reduce the overall purchase of
    LCS ships from 52 to 32, in favor of what we have heard is a
    more capable service combatant, whatever that means.
        I understand the decision about the future of the program
    will go one of three ways, possibly. It could stay on track. It
    could be modified. Or the Navy could draw up an entirely new
    design.
        Last week, you commented that you saw the modification
    option perhaps as a viable option in the future. Could you
    discuss that for the committee today?
        Mr. Mabus. Senator, I will be happy to, and I think it is
    very important to look at exactly what the Secretary of Defense
    said about LCS.
        First, he said that we should not engage in contract
    negotiations past 32 ships. And getting to 32 ships will take
    us almost completely through this 5-year defense plan.
        Second, you are absolutely correct that there were three
    options and Navy has set up a team, the CNO has set up a team,
    to look at our options, and the three options that you gave--
    continue the LCS, continue a modified LCS, or a brand new
    design.
        The last two things, though, that the Secretary pointed out
    was that we had to take cost into account, and we had to take
    delivery time to the fleet into account, because overall, we
    need the 52 small surface combatants that we have said that we
    need.
        We will have this review done in order to inform the 2016
    fiscal year.
        And, Senator, one other point I would like to make, this is
    not unusual in Navy ships. We are about to start building
    flight 4, flight 3, but there was a 2 and a 2A, on our DDG-51s
    that are built in Maine and Mississippi. We are about to begin
    flight 4 on our Virginia-class submarines.
        So we take a look at these programs and change as
    requirements change, as technology changes. And the great thing
    that a ship like LCS brings is that, as technology changes, as
    missions change, because it is modular, you don't have to
    change the whole ship, you just change the weapons system.
        And the final thing I will say is that the price of LCS,
    one of the things I am most happy about, the first ships of
    those classes, both varieties, built in Alabama and Wisconsin,
    cost more than $750 million. The ships coming out, the 10th
    ship on the block buy from each one will cost around $350
    million.
        Senator Shelby. So the more you buy, the price comes down.
    Isn't that just basic economics?
        Mr. Mabus. It is basic economics, and it is true for every
    ship. I want to point that out.
        Senator Shelby. How important, Mr. Secretary, for the
    record, is LCS to the Navy?
        Mr. Mabus. Well, a small surface combatant is critical to
    the Navy. And if you listen to our combat commanders, if you
    listen to the needs that they require, we have to have the
    counter-mine capability, the counter-surface capability, and
    the counter-submarine capability that these ships are designed
    to bring.
        And in terms of the counter-mine and counter-submarine, the
    weapon systems that LCS has today are better than what we have
    in the fleet.

                            JOINT HIGH SPEED VESSEL

        Senator Shelby. Admiral Greenert, the joint high speed
    vessel, the Navy made the decision last year to stop production
    of the joint high speed vessel at 10 ships. Could you describe
    the benefits that the joint high speed vessel brings to the
    Navy's mission and bottom line? And limiting it to 10 ships,
    what would that do to partnership training and engagement
    capabilities?
        Admiral Greenert. Senator, we limit it to 10 because we are
    going to forward-station them. And we are still sorting through
    that.
        Senator Shelby. I know you are.
        Admiral Greenert. That need may grow. But it was built for
    predominantly high-speed logistics. It can do so much more. It
    can do counter-piracy, counterterrorism, theater security
    cooperation, and things we don't even know yet.
        During the Sochi Olympic Games, the Spearhead, the No. 1,
    was standing by to evacuate folks, if needed. That is called
    noncombatant evacuation. It could take 1,200 people. We just
    needed life preservers.
        My point is: It is still evolving. I think we have a host
    of capabilities in that ship that we don't know about yet. But
    I have a team on it.
        Senator Shelby. Thank you. The Navy will revisit that 10-
    ship number?
        Admiral Greenert. Sir, we revisit the 10-ship--in fact, we
    are going to do a force structure assessment this summer, due
    to the QDR. But we revisit all of our ship types.
        Senator Shelby. Mr. Chairman, I have one quick question. I
    know everybody wants to ask them.
        The amphibious class ship, General Amos, how important is
    that?
        General Amos. Sir, that is the Swiss army knife of the
    United States Navy-Marine Corps team. It does everything.
        Senator Shelby. It is essential, isn't it?
        General Amos. It is absolutely critical. It is the bread
    and butter of what we do.
        Senator Shelby. Do you have enough of them?
        General Amos. No, sir, we don't.
        Senator Shelby. Okay.
        Thank you, Mr. Chairman.
        Senator Durbin. If you buy more, they are cheaper.
        Senator Collins.
        General Amos. Sir, I would like to add 54 of them. It is
    just a function of money.

                   SEQUESTRATION IMPACTS--DDG-51 AND DDG-1000

        Senator Collins. Thank you, Mr. Chairman. Actually, you
    have given me the exact right lead-in to my questions of
    Secretary Mabus.
        Mr. Secretary, I am very concerned that sequestration--
    those indiscriminate, automatic cuts--are going to kick back in
    in 2016 if we don't act. We have a 2-year reprieve, but in the
    fact, the Budget Control Act calls for those draconian cuts to
    resume in 2016.
        There are two issues that I want to raise with you about
    the impact of those automatic cuts known as sequestration. And
    the first follows up with the point about the efficiencies that
    you achieve if you have multiyear contracts.
        Right now, we are looking at a 10-ship buy for the DDG-51
    class of destroyers. It is a 10-ship buy. And that 10-ship buy
    actually saves the Navy some $1.5 billion. Is that correct?
        Mr. Mabus. That is absolutely correct.
        Senator Collins. And so, that is essentially allowing us to
    get an extra destroyer for free, if you look at it, compared to
    buying them individually and not having the certainty of the
    10-ship buy. Is that correct?
        Mr. Mabus. You have identified one of the pernicious
    effects of sequestration, that it has the potential, if it
    kicks back in in 2016 to give us fewer ships but at higher
    cost.
        Senator Collins. And that, Mr. Chairman, truly is the worst
    of all worlds. If we don't have the certainty of the 10-ship
    buy, we end up paying more per ship and getting fewer ships.
        So I hope we will keep that in mind and make sure that we
    do not allow sequestration to kick back in and undermine the
    savings that otherwise would occur for ships that we really
    need.
        The second related issue has to do with the number of
    destroyers that could be procured. Right now, we are scheduled
    to build two DDG-51s per year, fiscal year 2015 through fiscal
    year 2017. Yet according to the chart that Admiral Greenert
    gave us today, it sure looks to me that we would be in jeopardy
    of losing three of those destroyers if we have to budget at the
    BCA levels.
        Admiral, am I reading your chart correctly?
        Admiral Greenert. Yes, Senator, you are reading it
    correctly.
        Senator Collins. And could you describe the benefits that
    destroyers provide, the DDG-51, in terms of their missile
    defense? They are the real workhorse of the fleet, are they
    not?
        Admiral Greenert. Yes, Senator. They are the premier
    warship, surface warship, of our fleet, premier.
        Senator Collins. And if you look at the number of ships
    that the combatant commanders have requested, how many is that?
        Admiral Greenert. Well, if we add them all up, 450 is what
    they say they need to do the global engagement of the force.
        Senator Collins. Now, I realize that is without considering
    cost, but I just want my colleagues to realize that the
    combatant commanders say that if you really fulfilled their
    needs and met their requirements, we would actually need 450
    ships.
        And I think that is really important for us to keep in mind
    as we go through these budget deliberations.
        Thank you, Mr. Chairman.
        Senator Durbin. Thank you, very much.
        Senator Coats.
        Senator Coats. I will be brief, because I know we have a
    vote.
        I want to just step back and look at the larger picture. I
    think talking about the number of ships we need right now, the
    more you buy, the more you build, the cheaper they are, and so
    forth and so on.
        But the reality is that every year we sort of have a
    shrinking percentage of the overall budget, because of our
    runaway mandatory spending.
        And that is a reality. That is a reality we all have to
    deal with. And so while we can sit here and each year or each
    budget cycle, say, well, we have to cut a little more, cut a
    little more, even though we think we need to have more,
    particularly given the status of the threats around the world
    today--and I strongly support that stronger military--we have
    to face that reality.

           MANDATORY SPENDING PROGRAMS AND IMPACT ON FORCE STRUCTURE

        But within that reality is also the reality of the fact
    that, within your own budgets, personnel costs and mandatory
    spending there is also a factor. And so I guess my question is:
    How do we best address that within your budget?
        I know some recommendations will be coming forward. I am
    not asking here for specifics, but I think working with the
    committee is important in terms of how the military itself
    addresses its own concerns relative to the personnel and
    mandatory spending within your budgets, how it affects the
    number of ships we are able to buy, the number of people we can
    put in uniform, the number of training hours we can give our
    soldiers, sailors, Air Force, and marines.
        So, Secretary Mabus, I don't know if you want to make a
    quick comment on that, but how can we--well, I will just make
    two points here. One, I think we need to work with you relative
    to that issue within, and then I think we need to have all of
    you standing up to Members of Congress and saying, ``If you
    want to have a robust military to deal with the threats in the
    world today, we need to address this larger problem, because we
    are part of a pool of discretionary spending that is shrinking
    every year based on the runaway spending outside of the
    discretionary.''
        Mr. Mabus. Senator, if we don't get a handle on personnel
    costs and benefits, it will have an impact on the entire rest
    of our budget. We are at that point now, and we have made
    recommendations that are supported by the CNO and the
    Commandant and all the Joint Chiefs to curb the growth, not to
    cut, but to curb the growth of spending in this area.
        It is important to keep faith with an All-Volunteer Force,
    but it is also important that they have the tools that they
    need, that they have the platforms, that they have the weapons,
    that they have the training, that they have the operations to
    do the things that they need to do and that the Nation needs
    for them to do.
        And one of the greatest dangers to that are personnel costs
    that are eating up a larger and larger percentage of our
    budget.
        And I think the CNO and the Commandant should comment on
    that as well.
        Admiral Greenert. Senator, I think it is a balance. Any
    money that we would garner, as the Secretary said, by curbing
    the growth is reinvested in what we call the quality of their
    work. And it is about increased predictability, parts,
    training, personnel training, professional training, unit
    training, to improve their environment around where they work.
    That is where they have explained to us--they said to us, ``We
    are pretty compensated, but I am not happy with my environment
    right now.''
        Well, I would submit we are out of balance a little bit,
    and there is where we can invest these savings from curbing
    growth.
        General Amos. Senator, we have got the best military our
    Nation has ever seen in its history. They are well-paid.
    They've been well cared for. And they should have been well-
    paid, and they should have been well cared for. They have borne
    the burden of the last 12 years, and you know that.
        But this is a balance. And the Chiefs and the senior
    enlisted advisers of all the services and the Joint Chiefs have
    put forth what we consider to be acceptable, reasonable
    solutions--partial solutions to the enduring cost--the rising
    cost--of compensation.
        We would just ask Congress to look at those, understanding
    that we have represented our 240,000 Reserve and Active Duty
    Marines and their family members with this thing. It is
    reasonable. It is a balance.
        And we are the cheapest per person of any service. Per man,
    per woman, the Marine Corps is the cheapest.
        But the fact is that if we don't get some of this stuff
    under control within reason, we will become an entitlements-
    based Marine Corps, and that is not why America built a Marine
    Corps 238 1/2 years ago. We are here to do the Nation's
    bidding, to fight the Nation's battles.
        So I think it is a balance to reach that, and it is not
    either/or, but it is a combination, and we just need your
    support with it.
        Senator Durbin. Senator Graham.

                       PERSONNEL AND COMPENSATION REFORM

        Senator Graham. Thank you.
        I just happened to have left a subcommittee hearing on the
    Authorization Committee, where I am the ranking member of
    personnel. There is about $2 billion of personnel structural
    changes that are necessary, given the budget caps, and we are
    trying to find out what the commission does in February. They
    say, ``We can't wait.'' They have done a good job of trying to
    scrub TRICARE, commissaries, the whole nine yards.
        Count me in for structural changes as part of any
    sustainable military. You just can't have the personnel arena
    not addressed, and structurally you have to do it. I just think
    it would be smart to wait for the commission.
        So that is going to be my position. If we could find $2
    billion in new money, it would take a lot of the pressure off
    readiness and other accounts, because $2 billion coming out of
    personnel, under this construct, I am not so sure I can
    support.
        Do you agree with me, General Amos, pound for pound, the
    Marine Corps is the best investment in the world?
        General Amos. Sir, I have testified before you many times.
    I know this is a box canyon, but yes.
        Senator Graham. Okay, good. Just seeing if you are awake. I
    know you always would be. No, I believe that.

                              EA-18G REQUIREMENTS

        The EA-18G Growler, the F-18, Admiral, you have made an
    unfunded priority for an additional 22 of these airplanes?
    Could you tell the committee why? What the airplane does and
    why you need 22?
        Admiral Greenert. The airplane is called ``Electronic
    Attack.'' What it does is it enables us to get access. It jams
    and spoofs radars. It suppresses enemy air defenses so that we
    can get through those defenses.
        It also is a cyber-tool, if you will--weapon, and it can
    defend itself. So it can also suppress, but also it carries
    weapons. Very, very capable and an emerging and continuing part
    of our air wing of the future. I am absolutely convinced of
    that.
        Senator Graham. And given the threats the Nation faces,
    this becomes a platform more relevant, not less. Do you agree
    with that?
        Admiral Greenert. Absolutely. Yes, sir.
        Senator Graham. Okay, one final question.
        From the Marine Corps' perspective, if sequestration is
    fully implemented, what effect will it have on the Marine
    Corps? Mild, severe, moderate?
        General Amos. Sir, we will be a 175,000 force from 202,000,
    and if sequestration remains, after 2016 and beyond, we will be
    a high-risk force.
        Senator Graham. Navy?
        Admiral Greenert. Sir, we will be too small for presence
    that the COCOMs (combatant command)--I am not talking 450, I am
    just talking about the basic presence we get done today.
        And then, secondarily, we will not be keeping up with our
    high-tech potential adversaries. That bothers me a lot.

                       SEQUESTRATION IMPACT ON FORCE SIZE

        Senator Graham. Secretary Mabus, what do you think the
    effect will be on the Navy and Marine Corps if we continue
    sequestration as planned?
        Mr. Mabus. Senator, I would just say, amen to what the
    Commandant and the CNO have said.
        The effects of sequestration, should it continue past 2016,
    would be serious in the extreme to both the Navy and the Marine
    Corps.
        Senator Graham. You are looking at 308 combatant ships by
    2020. By 2024, how many will the Navy be able to have?
        Mr. Mabus. I will have to get that number for you, but it
    is over 300 it continues--315.
        [The information follows:]

        The naval battle force inventory at the end of fiscal year 2024
    will be 315 ships.

        Senator Graham. Okay.
        Well, thank you all for your service.
        And to my colleagues, we have to balance the budget. $17
    trillion in debt means everything has to be looked at.
        But sequestration was just a bad idea. And I find it almost
    amusing that all of us would be complaining about the effects
    of it, but we did it to ourselves. Not one person on this panel
    recommended sequestration. Not one member of the military came
    up here and said this was a good idea. We made this up
    ourselves.
        I am glad I voted against it, and if we don't fix it, we
    have nobody to blame but ourselves. Thank you.

                      FOR-PROFIT COLLEGES AND UNIVERSITIES

        Senator Durbin. Mr. Secretary, we are on a vote and just
    have a few minutes left. I would like to do a follow-up
    question.
        If I suggested as a member of the Senate and a member of
    this panel that I wanted the Navy or the Marine Corps to buy
    substandard equipment, because of a political connection, you
    would find that as ghastly as any suggestion that we would
    provide our men and women in uniform with something less than
    the best. And I know that you are all dedicated to make sure
    that whatever it is, by way of equipment, training and such,
    they get the best.
        There is one area where we do not provide the best. Over
    and over again, we give for-profit colleges and universities
    access to more than half of the men and women in the military
    when we know they overcharge and they underproduce when it
    comes to graduation rates and the capacity of students once
    they finish.
        I had a nephew of mine who was in the Army and he called me
    and said, ``Well, Uncle Dick, the good news is I have signed up
    at the American Military University.'' Well, guess what? It is
    just another for-profit school.
        I told him, take a look there. You are from Maryland. The
    University of Maryland has been offering courses for decades,
    and you could transfer them when you get out of the service.
        I am afraid that too many men and women in the military are
    being misled into these for-profit schools, wasting the
    opportunity we give them under the G.I. Bill and service-
    related education.
        What are we going to do about this to clean up this mess?
        Mr. Mabus. We share your concern, absolutely, Senator.
        And one of the things that we are doing is before a sailor
    or marine can take advantage of tuition assistance or studying
    while they are in the military, they have to go to a counselor
    to make sure that what they are going to get is not just a
    degree, but it is an accredited degree that will allow them
    to--or the courses that they take are accredited--so that they
    can be transferred. So that they are not paying large amounts
    of money to get a degree that, in the end, just isn't worth
    very much.
        And so we are attacking that by people inside the military,
    when they go for tuition assistance, when they go to study
    while they are still on Active Duty, we can do that.
        I think that the issue when you get out of the military is
    an issue that Congress will have to address because then we no
    longer have any control over where these veterans go.

        CONTRACTING WITH COMPANIES THAT DO NOT ADHERE TO HUMANE WORKING
                                   CONDITIONS

        Senator Durbin. General Amos, in November 2012, when a fire
    broke out at a garment factory in Bangladesh, it was a tragedy,
    an unspeakable tragedy with innocent people dying under the
    most inhumane working conditions. And in the rubble, they found
    indications of some products being made for the Marine Corps.
        I believe that you made a decision, as a result of that.
    Could you tell us what that is? And could I ask the Navy if
    they are going to follow suit?
        General Amos. Chairman, that came as a complete surprise.
    What we have is a contracting arrangement, in fact, it is an
    agreement. It is a licensing agreement. If you are going to use
    our logo or use our name, you have to--because it is patented.
        And so now they have to sign up--the company has to sign up
    and agree to certain terms. One of the set of terms is we are
    not going to ship this stuff overseas, and we are not going to
    put it in substandard sweatshops where people are abused.
        So when the fire happened, and the ensuing investigation
    showed products that would find their way to our Navy and
    Marine Corps exchanges, we pulled the plug on that. We pulled
    the license away. We pulled the authority from that company to
    be able to produce those shirts, shorts. And we have held them
    accountable for that, Chairman.
        We are very serious about that.
        Senator Durbin. Is the Navy going to follow suit?
        Admiral Greenert. We will, Senator. I was made aware of it
    whenever we had the office call, and Jim and I will talk about
    it, and we will look to see this company, what they do for us,
    and take appropriate action.
        Senator Durbin. Beyond this company, though, establish
    basic standards for production, so that we don't subsidize
    these awful enterprises?
        Admiral Greenert. Yes, sir. Absolutely. I got it.
        Senator Durbin. Thank you.
        Senator Cochran.
        Senator Cochran. I have nothing.

                         ADDITIONAL COMMITTEE QUESTIONS

        Senator Durbin. Senator Shelby.
        Gentlemen, thank you. I am sorry that we had to abbreviate
    this hearing. We have many other questions, which we will
    submit in writing. We hope you get a chance to respond to on a
    timely basis.
        [The following questions were not asked at the hearing, but
    were submitted to the Department for response subsequent to the
    hearing:]
                     Questions Submitted to Hon. Ray Mabus
                Questions Submitted by Senator Richard J. Durbin
        Question. Secretary Mabus, the Village of Glenview, Illinois, is in
    the process of selling a parcel of land that the Village purchased from
    Midwest Family Housing--a Navy Public Private Venture--that was part of
    Naval Air Station Glenview. It is documented that asbestos was released
    when the Navy demolished housing at this site. Recent testing indicates
    asbestos is still present at the site. There are ongoing conversations
    between the Village and NAVFAC Midwest concerning remediation of the
    land. What is your understanding of the Navy's responsibility for
    remediation of its former properties in this type of situation?
        Answer. Pursuant to a covenant in the 2007 deed for this parcel
    from the Department of the Navy (DON) to Midwest Family Housing (MFH),
    under the Comprehensive Environmental Response, Compensation and
    Liability Act (CERCLA), Section 120(h), the DON warranted that all
    remedial action necessary to protect human health and the environment
    with respect to any hazardous substance identified on the property had
    been taken prior to disposition. The covenant also requires that any
    additional remedial action found to be necessary under CERCLA after the
    property is sold to be addressed by the DON.
        Representatives of Naval Facilities Engineering Command
    Headquarters and of the Commander, Navy Installations Command, are
    engaged in discussions with the Village of Glenview to determine
    whether an obligation under CERCLA exists that would require the DON to
    return and remediate under the deed covenant.
        Question. A 2008 Department of Defense (DOD) study found that the
    prevalence of smoking is higher in the military (30.6 percent) than the
    general adult population (20.6 percent), and that the availability of
    cigarettes on military installations made it easier to smoke. A
    separate study found that one in three military smokers began doing so
    after enlisting. This behavior has severe consequences for readiness
    and healthcare spending, as tobacco use shortens service members' lives
    by 10 to 14 years and costs the Department more than $1.9 billion
    annually in tobacco-related medical care.
        According to the Institute of Medicine's 2009 report: Combatting
    Tobacco Use in Military and Veteran Populations, the Department has set
    a goal to become tobacco-free, but has yet to achieve that goal despite
    promoting tobacco-free lifestyles through public-education campaigns,
    commander training, banning all tobacco use during basic training, and
    the prohibition of tobacco use by instructors in the presence of
    students.
        What efforts is the Navy taking to reduce tobacco use, including
    smokeless tobacco, among Navy personnel? How does tobacco use impact
    military readiness and the long term health of service members? What
    obstacles does the Navy face to effectively implement a tobacco free
    lifestyle among personnel and to establish a date for eliminating
    tobacco at Navy installations?
        Answer. The Department of the Navy (DoN) is committed to maximizing
    the readiness of our Sailors and Marines and as part of that commitment
    has implemented a number of initiatives to aggressively reduce tobacco
    use by all personnel. Department of Defense (DOD) policy allows the
    price of tobacco products sold in military resale outlets to be
    discounted no more than 5 percent below the most competitive commercial
    price in the local community. In September 2012, the DoN eliminated the
    5 percent discount, and requested a change that would allow Navy and
    Marine Corps retail outlets to raise prices on tobacco products to
    match the average commercial price in the local community. DoN is
    confident that this price increase will enhance readiness by reducing
    the prevalence of tobacco use among military personnel and has seen a
    drop in the sale of tobacco products at Navy and Marine Corps exchanges
    of approximately 11.3 percent since eliminating the 5 percent discount.
    Additionally, Food and Drug Administration approved Nicotine
    Replacement Therapy products were made available to assigned service
    members aboard all ships, in all base clinics and pharmacies, and
    Battalion Aid Stations at no cost to the member in September 2012 and
    to dependents via TRICARE in April 2013. Efforts are currently under
    consideration to ban the sale of tobacco products and e-cigarettes in
    retail outlets on Navy and Marine Corps installations and vessels. This
    provides a strong, clear, positive and healthy message to Sailors,
    Marines, retirees and beneficiaries, that tobacco is dangerous, harmful
    and costly to the individual, the command, the Military Health System
    and the DOD. Banning the sale of tobacco products will likely encourage
    some tobacco users to quit, while discouraging others from initiating
    tobacco use.
        Tobacco use undercuts military readiness and harms individual
    performance. In the military, tobacco use impacts the health and
    readiness of service members as evidenced by decreased night vision and
    lower visual acuity, reduced physical fitness, reduced lung function,
    increased injuries, hearing loss and delayed wound healing. Wounded
    warriors who smoke suffer from increased risk of surgical complications
    and delayed wound healing.
        The 2014 U.S. Surgeon General's Report, The Health Consequences of
    Smoking-50 Years of Progress, indicates that smoking and the use of
    other combusted tobacco products cause many illnesses and diseases
    including a myriad of malignancies such as lung, liver, bladder, kidney
    and colorectal cancer; respiratory diseases; cardiovascular diseases;
    eye diseases and autoimmune disorders such as rheumatoid arthritis.
    Smoking also impairs immune function, complicates reproduction,
    increases risk for diabetes, diminishes the general health of the user,
    and affects cancer treatment and death risk. An additional threat to
    smokers is a higher risk of stroke. Smokeless tobacco presents
    similarly high risks of oral, esophageal, stomach and pancreatic
    cancer, and causes periodontal disease and tooth loss. There is no safe
    level of use for cigarettes or smokeless tobacco; health effects are
    seen across the spectrum of use from occasional light smokers to heavy
    smokers.
        Smoking is also harmful to others. Secondhand smoke (SHS) causes
    numerous health problems to include cardiovascular disease, lung
    cancer, sudden infant death syndrome, breathing and lung issues, and
    even death. SHS is harmful to pregnant women and children, and just
    like smoking, there is no safe level of SHS exposure, as demonstrated
    by numerous studies and reports.
        Navy and Marine Corps Tobacco Policy, SECNAV Instruction 5100.13E,
    prohibits the use of tobacco products in all DoN facilities and
    controlled spaces The instruction offers guidance for effectively
    implementing a tobacco-free lifestyle among personnel. Presently, DoN
    has numerous evidence-based tobacco cessation programs in place and
    Navy Medicine assets are readily available to help those interested in
    quitting tobacco use whether they are ashore or afloat. Pharmacotherapy
    and counseling are accessible at Military Treatment Facilities and
    other locations.
        DoN's goal is to create a culture of health and wellness, while
    discouraging unhealthy habits such as overindulgence of alcohol and
    tobacco use. The uncertainty of possible impacts on Sailor and Marine
    morale, recruiting and retention in an all-volunteer force, potential
    divergent views on Capitol Hill, and negotiating this change with the
    364 civilian DoN work force unions present potential challenges for a
    smooth implementation of a tobacco-free lifestyle.
                                     ______

                   Questions Submitted by Senator Tom Harkin
        Question. There has been some debate over whether the Armed
    Services should be purchasing and using alternative fuel sources to
    those derived from petroleum. On the one hand, doing so reduces our
    Nation's vulnerability to petroleum supply disruptions. On the other
    hand, alternatives such as biofuels are currently more expensive than
    petroleum-based fuels. My own view is that our military should be
    considering strategic issues as well as costs when planning for future
    operations and the materials and commodities those will require. By
    developing a domestic biofuels capability that can supply the fuels
    needed by our forces, we achieve critical strategic goals as well as
    realizing economic benefits.
        Do you agree that when it comes to fuel supplies our military needs
    to consider strategic issues as well as costs when developing plans and
    contingencies for future operations? Can you give specific examples in
    which our military has decided to forego the lowest cost alternative
    due to strategic considerations, and what benefits did our Nation
    realize as a consequence of such a decision?
        Answer. First, it must be mentioned that per fiscal year 2014 NDAA
    Sec. 315, DOD cannot purchase biofuels or drop-in fuels for operational
    use unless they are cost competitive with their conventional petroleum
    fuel counterparts. Therefore, the decision to purchase biofuels that
    are not cost competitive in price to their petroleum counterparts is
    unavailable to our operational commanders. Further, one of many
    initiatives the DOD is pursuing to ensure the availability of cost
    competitive biofuels is through the Defense Production Act (DPA).
    Beginning in 2016, the DPA companies will be producing biofuel at
    commercial scale. Based upon their commitments, the DPA companies stand
    to:
      --produce more than 100 million gallons per year of drop-in, military
            compatible fuels;
      --at a weighted average price of less than $3.36 per gallon; and
      --with at least 50 percent lower lifecycle greenhouse gas (GHG)
            emissions than that of conventional fuel.
        When it comes to operational purchases, fuel is actually the
    outlier when it comes to purchasing criteria based solely on cost. Many
    operational purchases are made with strategic rather than purely cost-
    based considerations. A nuclear aircraft carrier has a total life-cycle
    cost nearly double that of a conventional aircraft carrier. However,
    the ability to sail anywhere, at any speed, without consideration for
    refueling, is deemed much more important than lifecycle cost. This is
    also true for submarines. A nuclear-powered fast-attack submarine costs
    10 times more than a diesel electric submarine. The ability to stay
    submerged and circle the globe many times without refueling is far more
    important to the Navy than platform cost. And the USS Makin Island
    (LHD-8) saved $15 million on fuel costs during its first deployment in
    2012. With a hybrid-electric propulsion system, the ship can embark,
    deploy, and land elements of a Marine landing force. This force
    projection is invaluable to the Marine Corps and its mission. These
    decisions have served the country's interest well, and are a crucial
    piece of ensuring U.S. maritime dominance.
        Question. During your answers to some of my colleagues' questions,
    you addressed the issue of rising personnel costs. I have long believed
    that the reserve components of our military represent one of the best
    returns on investment of our taxpayer dollars. The mandatory healthcare
    and retirement spending for reserve personnel are lower, installation
    spending like base housing and exchanges are greatly reduced for
    reserve personnel, and defense-wide spending such as Department of
    Defense Education Activities are non-existent.
        Given the potential savings not only on personnel accounts, but on
    other associated costs, has the Department of the Navy examined the
    current force mix between the active and reserve components of the
    Marine Corps and Navy? Are there potential changes that could be made
    to the force mix that would result in cost savings without incurring
    additional strategic risk?
        Answer. Active Component/Reserve Component (AC/RC) mix is reviewed
    annually in each President's budget submission to Congress. The final
    force mix is based on many different factors to include changing
    missions, strategy, capabilities, requirements, and resources. The
    Department of the Navy has examined the current force mix using a
    deliberative requirements-based process to provide the appropriate AC/
    RC balance to maintain core capabilities across mission sets, to
    satisfy Combatant Commander operational and strategic requirements, and
    to mitigate risk.
        Cost is one of many factors used to determine the right AC/RC mix.
    The other factors that shape AC/RC force balance decisions include:
    sourcing for continuous operations (forward and homeland), surge, post-
    surge demands; predictability and frequency; responsiveness of the
    force based on complexity of the task, urgency of the task, unit
    integration, mission, or role; and retention considerations.
        The programmed AC/RC mix represents the Department's best estimate
    required to meet current and future military challenges in support of
    the National Military Strategy, within available resources.
                                     ______

                Questions Submitted by Senator Mary L. Landrieu
        Question. In the 2010 Force Structure Review Group, the Marine
    Corps emphasized a need for regional, mobile and cost effective support
    for the various marine components. We are proud to host the MARFORRES
    and MARFORNORTH Headquarters in New Orleans, LA. We also have a Naval
    Air Station/Joint Reserve Base (NAS/JRB) in Belle Chasse, Louisiana--
    not far from the new Marine HQ Building. Recently, the Navy stood down
    the VFW-77 squadron housed at NAS/JRB. This left a great hanger and
    adjacent squadron building that can host a number of entities.
        Based on the recommendation from the 2010 FSRG and as you look at
    future force structure and asset placement and manning, would you take
    a strong look at the Naval Air Station/Joint Reserve Base, New Orleans
    as a location for a V-22 Osprey Squadron and/or a drone squadron?
        Answer. Marine Forces Reserve has enjoyed a close relationship with
    the great State of Louisiana for many years. Together, this team has
    weathered many storms and the professional bonds have never been
    stronger. Although the 2010 FSRG did realign some assets, there were
    very limited moves within Marine Corps Aviation. Mentioning the
    availability of this hangar in Belle Chasse, Louisiana is appreciated.
    Currently, the Marine Corps Aviation Plan does not have a requirement
    to move an MV-22 squadron or an Unmanned Aerial System squadron to
    Belle Chasse, Louisiana. In this very dynamic environment, should
    additional adjustments be required, the Marine Corps will certainly
    consider all fiscally responsible options to include Belle Chasse.
        Question. I understand that VFA-204's jets are now essentially
    obsolete for almost all Navy strategic reserve missions; and even
    accounting for the ongoing high flight hour inspection, they will begin
    to run out of airframe life within a few years. In fact, there are so
    many jets constantly in maintenance that their current mission is
    getting harder and harder to achieve because pilots are grounded for so
    long and maintainers are overworked.
        What is the current plan of record to recapitalize VFA-204 with
    fleet representative Super Hornets or F-35's? Do you agree that their
    current mission is important enough to recapitalize?
        Answer. Due to fiscal constraints there is no near term plan to
    recapitalize VFA-204's legacy F/A-18 aircraft with F-35Cs or Fleet
    representative Hornets. VFA-204 continues to achieve mission success
    even while working through the maintenance challenges associated with
    operating aging USN Hornet aircraft. These challenges are similar to
    those faced by other active and reserve Navy squadrons that operate
    legacy F/A-18s, and Naval Aviation will address these challenges in
    both active and reserve squadrons with a holistic total force approach
    to ensure we succeed in all VFA squadron missions, to include the
    important missions executed by VFA-204.
        Question. Over the last few years the Navy has been working with
    Huntington Ingalls Industries to wind down the Navy shipbuilding taking
    place at its Avondale yard in Louisiana.
        Are there any closeout costs that have been agreed to and executed?
    And, if so, what are those costs?
        Answer. In July 2010, Huntington Ingalls Industries (HII)--then
    Northrop Grumman Shipbuilding--announced their plans to close the
    Avondale shipyard. USS SOMERSET (LPD 25) was the final ship constructed
    at the Avondale shipyard; and the ship departed the shipyard in
    February 2014. Approximately 45 percent of the units for LPD 27, which
    is being constructed at HII's Pascagoula shipyard, were/are being
    assembled at the Avondale shipyard; and the last of those units will be
    shipped to the Pascagoula shipyard by the end of fiscal year 2014.
        In March 2014, HII provided a revised restructuring proposal
    associated with the closure of the Avondale shipyard; and that proposal
    is currently under review by the Navy and being audited by Defense
    Contract Audit Agency. Once the audit is complete, the Navy will
    determine the allowability of proposed restructuring costs and
    negotiate those costs with HII. Ship construction contracts for LPD 26,
    LPD 27, LHA 7 and DDG 113 contain Not to Exceed (NTE) clauses which
    address restructuring costs associated with Avondale's closure. Once
    the restructuring costs have been negotiated, those contract clauses
    will be adjudicated.
        Question. I understand that the reduction of one ship (from 4 to 3)
    in the fiscal year 2015 budget was done for affordability issues. The
    LCS program is maturing and getting stability. The breaking of the
    block buy in fiscal year 2015 by moving the last ship in the buy will
    impact not only both shipbuilders but many suppliers as well as
    increase the cost of the last ship.
        Can you provide the rationale for breaking the last ship of the
    block buy and introducing a potential cost increase to all of the ships
    in the program?
        Answer. The fiscal year 2015 President's Budget includes funding
    for three LCSs. The reduction to the number of ships procured in fiscal
    year 2015 is the result of the tough choices required under reduced
    funding levels in fiscal year 2015 relative to the fiscal year 2014
    plan due to fiscal constraints under the Bipartisan Budget Act (BBA).
        Navy plans to procure the single LCS shifted to fiscal year 2016
    under the current block buy contract(s) by making an adjustment to one
    of the two contracts. It is expected that this slight adjustment to the
    procurement profile can be accomplished with minimal cost and schedule
    impact on the fiscal year 2016 ship. The decision of which shipbuilder
    will have one ship shift to fiscal year 2016 will be determined in
    consultation with industry, with consideration of cost, production
    schedule performance, shipyard resource loading, and vendor base
    considerations.
                                     ______

                  Questions Submitted by Senator Thad Cochran
        Question. Secretary Mabus, for the record, for each ship in the
    classic amphibious ready group, would you share with the subcommittee
    the notional manning and the total value of equipment (aircraft,
    vehicles, repair parts, support equipment etc.), on board each
    amphibious warship?
        Answer. The classic amphibious ready group (ARG) is comprised of
    three ships: one amphibious assault ship (LHA or LHD), one amphibious
    transport dock (LPD), and one dock landing ship (LSD). Although the
    ships of each class are similar, there are specific differences between
    the manning levels and equipment onboard based on the core mission for
    that ship class.
        The notional manning for a classic ARG includes both the Navy
    personnel (ship's crew) as well as embarked Marines. An ARG will
    classically deploy with an embarked Marine Expeditionary Unit (MEU),
    but the exact equipment and personnel arrangements within the ships can
    differ significantly.
        The notional Navy manning, based on current onboard averages, for
    the ARG is as follows:
          LHA/D: 962
          LPD: 350
          LSD: 320
        The additional manning onboard the ships as part of a MEU includes
    approximately 2200 Sailors and Marines. These personnel can be berthed
    on different ARG ships per the MEU commander's guidance. Troop berthing
    capacities for each type of ship are:
          LHA/D: 1871
          LPD: 800
          LSD: 504
        The total value of Navy installed equipment (beyond the $8 billion
    required for the ships themselves), based on initial load-out of spares
    and support equipment, is as follows:
          LHA/D: $11 million of spares, $12 million of support equipment
          LPD: $7 million of spares, $7 million of support equipment
          LSD: $6 million of spares, $6 million of support equipment
        In addition to the ship's organic equipment, the MEU brings a
    mission-tailorable mix of aircraft, landing craft, tanks, assault
    craft, vehicles, artillery, ammunition, and support equipment. The
    average combined value of all of these items is approximately $7
    billion.
                                     ______

                 Questions Submitted by Senator Lisa Murkowski
        Question. I'd like to understand how we are postured to resource
    our Nation's ever expanding role in the arctic region, particularly as
    we approach our Chairmanship of the Arctic Council. The
    Administration's Implementation Plan for the National Strategy for the
    Arctic Region names the Navy as lead agency for the forecasting and
    predicting of sea ice, as well as a supporting agency for a number of
    other areas. According to your recently released Navy Arctic Roadmap,
    you plan to concentrate on improving operational capabilities,
    expertise, and capacity, in the arctic region.
        How does your fiscal year 2015 budget request reflect your lead DOD
    role as well as your increased emphasis on the arctic?
        Answer. The Implementation Plan identifies DOD as the lead
    department for the forecasting and predicting of sea ice. Navy, through
    the Office of Naval Research (ONR), leads one of twelve collaboration
    groups in support of the Interagency Arctic Research Policy Committee
    (IARPC)'s Arctic Research Plan fiscal year 2013-2017. The fiscal year
    2015 budget includes funding for the ONR's Arctic environmental R&D
    program and for the Naval Research Laboratory's efforts in modeling and
    predicting Arctic sea ice movements for development of the Earth System
    Prediction Capability (ESPC)--intended to improve air-sea-wave-ice
    regional numerical forecasts. The budget also includes funding for
    operation of the Naval Ice Center, sustainment of T-AGS 60 Class survey
    ships which provide limited capability to support Arctic hydrographic/
    charting requirements, and for UHF voice communications capabilities
    (up to 85 deg north).
                                     ______

                 Questions Submitted by Senator Lindsey Graham
        Question. Mr. Secretary, could you provide for the Committee the
    basic outline of the current Navy aviation tire management contract,
    including the performance metrics of the program since the contract was
    first awarded in 2000. In the view of the Navy, has the existing
    aviation tire management contract provided the performance envisioned
    when the contract was first awarded and has it saved money for the
    taxpayer?
        Answer. The current Navy aviation tire Performance Based Logistics
    (PBL) contract has provided outstanding performance since the contract
    was awarded and has saved money for the taxpayer. The Navy's current
    PBL is a firm-fixed price (FFP) type of contract competitively awarded
    to a single contractor. Under the terms of the PBL, the contractor must
    estimate Navy tire requirements and meet actual demand within specific
    time requirements.
        Since contract performance began, tire availability to the Naval
    Aviation Fleet has increased leading to greater mission capability
    readiness. Logistics Response Time has been reduced from 60 days to 2-4
    days. Tire quality delivered has matched or exceeded Navy Quality
    Assurance standards and specifications.
        The Navy Tire PBL contract utilizes FFP pricing which has
    maintained stable prices (then-year prices adjusted for inflation) and
    Free On Board (FOB) Destination as the delivery term. The Navy contract
    prices are lower than the prices Navy would have paid under the DLA
    pricing structure as there is no Economic Price Adjustment added to
    FFP. FOB Destination means storage and transportation costs are borne
    by the contractor and not the Government resulting in significant
    savings. An additional cost saving is that there is no separate expense
    for a supply chain manager. Supply Chain Management is included in the
    contract Statement of Work and priced in the tires.
        Question. In the past, some in Congress suggested that the Navy
    aviation tire program should be folded into the Defense Logistics
    Agency (DLA) Tire Privatization Initiative (TPI) or the subsequent Tire
    Successor Initiative (TSI) program. When this was raised in 2009, the
    Navy indicated that doing so at that time would cost the Navy upwards
    of $40 million over a 5 year period. Does the Navy still believe that
    managing its aviation tire program is in the best interest of the
    warfighter and the American taxpayer?
        Answer. The Navy believes that managing its aviation tire program
    is in the best interest of the Navy and taxpayer. Cost, quality, and
    schedule performance on the current contract has been outstanding and
    would not have been better under the DLA TSI initiative. The Navy has
    been working collaboratively with DLA, which is preparing to compete
    their follow-on TSI contract at this time. The Navy has shared its
    contract structure, terms and conditions, and market research with DLA
    to better inform the acquisition strategy for the Navy and DOD. The
    Navy intends to issue its Request For Proposals (RFP), receive all
    proposals and data, and generate a Business Case Analysis to inform the
    decision as to whether pursuing a separate follow-on contract or adding
    Naval aviation tires to the DLA TSI portfolio offers greater
    affordability, availability, and reliability to the warfighter and
    taxpayer.
        Question. My understanding is that the Navy is preparing a Request
    for Proposal (RFP) for a new aviation tire program. Please provide for
    the Committee the status of that RFP and a rationale for why pursuing a
    Navy aviation tire specific RFP remains in the best interests of the
    Navy and the taxpayer?
        Answer. The Navy is conducting market research and drafting the
    acquisition strategy and RFP for review and approval. NAVSUP released a
    draft Statement of Work (SOW) and list of aviation tires that would
    constitute the scope of the contract on FedBizOpps on 13 November 2013.
    This release also announced an Industry Day that took place on 17
    December 2013 where a general overview of Performance Based Logistics
    (PBL) and specifically the Navy aviation tire PBL SOW were reviewed
    with industry. Time for general questions and comments was provided and
    one-on-one interchanges with attendees were also conducted. Results of
    the market research indicate a highly competitive environment.
        A Navy aviation tire specific RFP remains in the best interest of
    the Navy and taxpayer because performance has been outstanding on
    quality, tire availability, and delivery on the current contract due to
    the terms and conditions the Navy has incorporated. Cost savings as a
    result of the Navy unique contract pricing structure has been a great
    benefit to the Navy and taxpayer. The Navy anticipates continued
    savings in the new competition but will conduct a Business Case
    Analysis to inform the decision as to whether pursuing a separate
    follow-on contract or adding Naval aviation tires to the DLA TSI
    portfolio offers greater affordability, availability, and reliability
    to the warfighter and taxpayer.
                                     ______

                Questions Submitted to Admiral Jonathan Greenert
                   Questions Submitted by Senator Tom Harkin
        Question. During your answers to some of my colleagues' questions,
    you addressed the issue of rising personnel costs. I have long believed
    that the reserve components of our military represent one of the best
    returns on investment of our taxpayer dollars. The mandatory healthcare
    and retirement spending for reserve personnel are lower, installation
    spending like base housing and exchanges are greatly reduced for
    reserve personnel, and defense-wide spending such as Department of
    Defense Education Activities are non-existent.
        Given the potential savings not only on personnel accounts, but on
    other associated costs, has the Navy examined the current force mix
    between the active and reserve components? Are there potential changes
    that could be made to the force mix that would result in cost savings
    without incurring additional strategic risk?
        Answer. Active Component/Reserve Component (AC/RC) mix is reviewed
    annually in each President's budget submission to Congress. The final
    force mix is based on many different factors to include changing
    missions, strategy, capabilities, requirements, and resources. Navy has
    examined the current force mix using a deliberative requirements-based
    process to provide the appropriate AC/RC balance to maintain core
    capabilities across mission sets, to satisfy Combatant Commander
    operational and strategic requirements, and to mitigate risk.
        Cost is one of many factors used to determine the right AC/RC mix.
    The other factors that shape AC/RC force balance decisions include:
    sourcing for continuous operations (forward and homeland), surge, post-
    surge demands; predictability and frequency; responsiveness of the
    force based on complexity of the task, urgency of the task, unit
    integration, mission, or role; and retention considerations.
        The programmed AC/RC mix represents the Department's best estimate
    required to meet current and future military challenges in support of
    the National Military Strategy, within available resources.
                                     ______

                  Questions Submitted by Senator Patty Murray
        Question. Admiral Greenert, as you know, the P-8A Poseidon is the
    future of the Navy's anti-submarine warfare and long-range maritime
    patrol capability. Deployed for operational duties for the first time
    last year, it is already demonstrating the Navy's vision for increased
    range, speed, and power that contribute to greater maritime domain
    awareness. As the Department of Defense continues to focus on the
    Pacific region, the P-8A is particularly well-suited for meeting this
    national strategic effort.
        Moreover, the Navy has delivered the P-8A on-schedule and ahead-of-
    cost. There are very few Department of Defense programs that can claim
    such an accomplishment and you have stated that the P-8A program is a
    model acquisition program.
        Yet, the fiscal year 2015 budget request makes a significant cut to
    the P-8A procurement and even suggests reducing the requirement from
    117 aircraft to 109 aircraft in the entire inventory. Just last year
    you testified that the inventory was 117 aircraft to meet a warfighting
    requirement.
        I am concerned that one of the Navy's best performing acquisition
    programs faces a reduction in the Program of Record.
        Can you please respond to how the Navy's warfighting requirement
    for 117 P-8A aircraft has changed?
        Answer. The Navy was compelled by fiscal constraints to lower the
    final P-8A inventory objective from 117 to 109 aircraft. The
    warfighting requirement remains 117, but the Navy can only afford 109.
        Question. Will the change in the Program of Record alter the
    transition from P-3C aircraft?
        Answer. The change in the Program of Record does not alter the P-
    3C-to-P-8A transition.
        Question. And how will the Navy work to ensure that reductions in
    the P-8A procurement are not repeated in a difficult fiscal
    environment?
        Answer. Even in a difficult fiscal environment, the Navy will
    continue to procure P-8A. The Navy will evaluate P-8A procurement rates
    as part of the systematic budget process to ensure the service meets
    the administration's Defense Strategic Guidance.
                                     ______

                Questions Submitted by Senator Mary L. Landrieu
        Question. I understand that VFA-204's jets are now essentially
    obsolete for almost all Navy strategic reserve missions; and even
    accounting for the ongoing high flight hour inspection, they will begin
    to run out of airframe life within a few years. In fact, there are so
    many jets constantly in maintenance that their current mission is
    getting harder and harder to achieve because pilots are grounded for so
    long and maintainers are overworked.
        What is the current plan of record to recapitalize VFA-204 with
    fleet representative Super Hornets or F-35s? Do you agree that their
    current mission is important enough to recapitalize?
        Answer. Due to fiscal constraints there is no near term plan to
    recapitalize VFA-204's legacy F/A-18 aircraft with F-35Cs or Fleet
    representative Hornets. VFA-204 continues to achieve mission success
    even while working through the maintenance challenges associated with
    operating aging USN Hornet aircraft. These challenges are similar to
    those faced by other active and reserve Navy squadrons that operate
    legacy F/A-18s, and Naval Aviation will address these challenges in
    both active and reserve squadrons with a holistic total force approach
    to ensure we succeed in all VFA squadron missions, to include the
    important missions executed by VFA-204.
                                     ______

                  Questions Submitted by Senator Thad Cochran
        Question. Admiral Greenert, the Navy has made significant progress
    in development of the Electromagnetic Railgun. Could you describe the
    potential advantages of this technology and describe efforts to
    demonstrate the capability at-sea? Are there cost benefits to employing
    this technology?
        Answer. Railgun technology has a number of potential advantages
    both tactically and from a cost benefit perspective. Studies indicate
    high-energy Railguns will be lethal and effective against multiple
    threats, including enemy surface targets, aircraft, select missile
    threats and land-based targets. Railgun's Hyper Velocity Projectile
    (HVP) is launched by an electromagnetic pulse. The projectile hits with
    such speed and kinetic energy that high-explosive warheads are not
    required. By eliminating gun powder, rocket motors and high explosive
    warheads from our magazines, Railgun-capable ships will be inherently
    safer. The Railgun's HVP is compact permitting many rounds to be stored
    in the ship's magazine. Deep magazines increase power projection as
    well as defensive capabilities in the most challenging enemy raid
    scenarios. Railgun's long range and accuracy will make it ideal for
    precision strike when collateral damage must be kept to a minimum. The
    Railgun will not replace all legacy guns and missiles, but it will
    provide the fleet with a complementary weapon that extends our defense-
    in-depth capacity and adds offensive flexibility against surface and
    land targets.
        Studies indicate Railgun is also cost effective. Compared to
    missiles, HVPs will be extremely affordable due to low cost per shot,
    and low cost per engagement even if multiple shots are required.
    Railgun will shift the cost curve dramatically in favor of the U.S.
    against missile threats. Our cost to defend using Railgun will be a
    small fraction of the cost of the attacking missiles and allow vessels
    to conserve their defensive missiles. The Railgun's HVP can also be
    configured to fire from conventional powder guns currently in the
    fleet. This will provide extended range and the ability to engage
    cruise missiles with existing gunpowder guns while maintaining more
    expensive missiles for use against only the most demanding threats.
        As part of the test program, the Navy intends to install an early
    prototype of an electromagnetic Railgun aboard a Joint High Speed
    Vessel in fiscal year 2016. This demonstration is the latest in a
    series of technical maturation efforts designed to provide an
    operational Railgun to the fleet. The fiscal year 2016 at-sea test will
    utilize a manually loaded Railgun system capable of firing guided
    projectiles to a designated target. In 2018, the Navy plans at-sea
    tests of a more mature Railgun prototype capable of firing multiple
    rounds per minute to an operational range of 110 nautical miles.
                                     ______

                 Questions Submitted by Senator Lisa Murkowski
        Question. I would contend that the United States has lagged behind
    other nations in resourcing arctic requirements. I've heard over and
    over again that we lack sufficient domain awareness, arctic
    infrastructure, and ice capable vessels. It seems as if we've sat on
    the sidelines and watched other nations, like Russia, amass a much
    larger and more capable arctic fleet, tipping the scales of the desired
    status quo of mutual support and peaceful engagement in the region.
    Thankfully, it sounds like you have reenergized the Office of the Naval
    Oceanographer to focus on improving our posture in the arctic.
        What do you feel are the most critical near-term requirements in
    the arctic region and how do you intend to ensure that we aren't late-
    to-need in resourcing them?
        Answer. We have identified three critical requirements for the
    near-term (present to 2020):
      1)  Enhanced understanding of the Arctic environment and its impact
            on operations through focused R&D
      2)  Expanded training and exercises to develop operational experience
            and capabilities
      3)  Continued focus on building partnerships with other Arctic
            nations
        The Navy is capable of meeting current requirements in the Arctic,
    primarily through our submarine and air assets. As the Arctic becomes
    more accessible, it is likely that we will need the ability to provide
    a sustained surface presence. The 2014 Arctic Roadmap provides an
    implementation plan that will guide our investments and preparations
    through 2030. It emphasized cost effective, long lead-time activities
    to match capability and capacity to future demands.
                                     ______

                  Questions Submitted to General James F. Amos
                   Questions Submitted by Senator Tom Harkin
        Question. During your answers to some of my colleagues' questions,
    you addressed the issue of rising personnel costs. I have long believed
    that the reserve components of our military represent one of the best
    returns on investment of our taxpayer dollars. The mandatory healthcare
    and retirement spending for reserve personnel are lower, installation
    spending like base housing and exchanges are greatly reduced for
    reserve personnel, and defense-wide spending such as Department of
    Defense Education Activities are non-existent.
        Given the potential savings not only on personnel accounts, but on
    other associated costs, has the Marine Corps examined the current force
    mix between the active and reserve components? Are there potential
    changes that could be made to the force mix that would result in cost
    savings without incurring additional strategic risk?
        Answer. The United States Marine Corps has examined the current
    force mix between the active and reserve components. The units in the
    U.S. Marine Corps Forces Reserve are manned, trained, and equipped to
    mirror the Active Component Marine Expeditionary Forces (MEF's) and
    provide individuals or units to augment and reinforce the MEF's. This
    force design was purposefully created to maximize effectiveness and
    efficiency resulting in cost savings without incurring additional
    strategic risk.
        The Active Component 175K force was built to deploy active units at
    1:2 deployment-to-dwell, and use the Reserve Component to augment and
    reinforce the Active Component at 1:4 deployment-to-dwell if needed for
    steady state or emerging requirements. Reserve Component capacity is
    required to meet steady state demand. For example, one reserve infantry
    battalion is required to periodically mobilize and deploy, since 22
    infantry battalions are required for steady state operations and there
    are only 21 infantry battalions in the Active Component 175K force.
    However, in fulfilling its predominant role as America's Expeditionary
    Force in Readiness, the Marine Corps must rely principally on Active
    Component forces, to respond to crisis around the world.
        On balance, mandatory healthcare and retirement spending for
    reserve personnel are lower, installation spending like base housing
    and exchanges are greatly reduced for reserve personnel, and defense-
    wide spending such as Department of Defense Education Activities are
    non-existent for the Reserve Component. However, when mobilized,
    Reservists are more expensive than Active Component counterparts. The
    primary reason the Reserves are more expensive is the increase in cost
    and the fact that all Reserve Component personnel rate housing and
    partial per diem since no Reserve Marine, regardless of rank, lives in
    barracks while not mobilized. In addition, most Reserve Component units
    are stationed in high-population areas, which translate to higher BAH
    rates when deployed.
        In summary, the units in the U.S. Marine Corps Forces Reserve
    mirror the active component forces to augment and reinforce steady
    state and contingency requirements.
                                     ______

                  Questions Submitted by Senator Patty Murray
        Question. Background: General Amos, I appreciate the emphasis you
    have placed on combatting sexual assault within the Marine Corps. I am
    particularly encouraged by the Marine Corps' creation of the Victims
    Legal Counsel Organization (VCLO). This organization demonstrates the
    Marine Corps' commitment to fully implementing the NDAA provision I
    fought for requiring that victims of sexual assault be provided with
    dedicated, specially trained legal counsel to advise and assist them as
    they pursue justice and to protect them from potential retaliation.
        I believe that this program is essential to restoring trust between
    victims of sexual assault and the Marine Corps, and that for the
    program to be effective it must be resourced appropriately. I was
    encouraged to learn earlier this year that you had established a cadre
    of 15 Victims' Legal Counsels and that they had already assisted 114
    sexual assault victims.
        As you noted in your testimony, sexual assault reporting continues
    to increase as victims become more confident that the will be treated
    with dignity and respect and that the system is capable of delivering
    justice. While I agree that increased reporting could be a sign of
    progress, I am concerned that this will increase demand for Victims'
    Legal Counsels (VLC) beyond what your current program can sustain.
        Does this budget provide the resources you need to ensure that
    there are enough Victims' Legal Counsels to guarantee that every victim
    of sexual assault is afforded the advice, assistance, and protection
    they deserve?
        Answer. The VLCO was established in January 2014, and the fiscal
    year 2015 budget request supports anticipated Marine Corps
    requirements. The Marine Corps is fully committed to provide legal
    advice and detailed representation to victims of sexual assault and
    other crimes and to protect victims' rights at all stages of the
    military justice process. Additionally, we are committed to ensure all
    victims of sexual assault shall be informed and given the opportunity
    to consult with a VLC as soon as the victim receives assistance from a
    Sexual Assault Response Coordinator (SARC), Sexual Assault Prevention
    and Response (SAPR) Program, or Family Advocacy Program (FAP) Victim
    Advocate, military criminal investigator, victim-witness liaison or
    coordinator or trial counsel.
                                     ______

                  Questions Submitted by Senator Thad Cochran
        Question. General Amos, it appears that the Future Years Defense
    Program accompanying this budget proposal does not support the
    Combatant Commanders' requests for amphibious ships. Would you consider
    a 12th LPD amphibious ship an unfunded requirement to address Combatant
    Commanders' requests and lift shortfalls?
        Answer. The Navy will deliver the 11th LPD 17 during fiscal year
    2017, which fulfills the agreed to inventory. However, this inventory
    provides the minimum capacity for steady state Amphibious Ready Group/
    Marine Expeditionary Unit (ARG/MEU) deployments and single-ship
    deployments for theater security cooperation activities. This inventory
    does not provide the capacity to support additional independent
    amphibious warship demands, such as maritime security operations.
        A 12th LPD 17 class ship would provide much needed additional
    flexibility and would greatly enhance the Navy and Marine Corps ability
    to accomplish forward presence and crisis response missions. However,
    it is imperative that the acquisition of a 12th LPD 17not impede or
    delay the LX(R) program acquisition, which is essential to meeting the
    mid-term and long-term amphibious warship requirements of the
    Department.
        The Department of the Navy's investment in amphibious warships
    represents critical investments that enable Marine Corps forces to
    execute their assigned forward presence and crisis response missions.
    The Chief of Naval Operations (CNO) and Commandant of the Marine Corps
    (CMC) have determined that the force structure required to support a
    2.0 Marine Expeditionary Brigade (MEB) Assault Echelon (AE) is 38
    amphibious warfare ships, as communicated to the House and Senate
    Appropriations and Armed Services committees in a joint Secretary of
    the Navy/CNO/CMC letter dated 7 Jan 2009. Given fiscal constraints, the
    Department of the Navy (DoN) determined a minimum inventory of 33 total
    amphibious warfare ships (11 LHD/LHA(R), 11 LPD 17, and 11 LSD 41/49s)
    represent the limit of acceptable risk in meeting the 38-ship
    requirement for the AE in a two MEB forcible entry operation. As the
    Long Range Plan for Construction of Naval Vessels for 2015 does not
    meet the 11/11/11 amphibious warship inventory as mentioned above until
    fiscal year 2025, a 12th LPD 17 would assist in supporting the
    Geographic Combatant Commanders' requests until the LX(R) program is
    completed.
                                     ______

                 Questions Submitted by Senator Lisa Murkowski
        Question. As you know, I am very proud of the training Army Alaska
    conducts at the Northern Warfare Training Center, based at Fort
    Wainwright with training conducted at the Black Rapids Training Site
    approximately 30 miles south of Delta Junction. This is the premier
    extreme cold weather training site for the entire Department of
    Defense. I know we've talked about this before, but do you still see
    training value for the Marine Corps at the Northern Warfare Training
    Center? Now that that our involvement in Afghanistan is drawing down
    and the services are focused on rebuilding readiness, isn't this the
    perfect time for Marines to take advantage of this elite extreme cold
    training facility?
        Answer. The Marine Corps Mountain Warfare Training Center (MCMWTC)
    is dedicated to the integration of warfighting elements at medium to
    high altitudes (range from 6,800' to 11,200' in elevation) in complex,
    compartmentalized, and mountainous terrain in all weather conditions
    utilizing military mountaineering skills in order to enhance a unit's
    ability to shoot, move, communicate, sustain, and survive in
    mountainous regions of the world. The Marine Corps utilizes the MCMWTC
    because it can house up to 1,100 personnel, and can train an infantry
    battalion with Air and Logistics support for each month-long Mountain
    Training Exercise. The Northern Warfare Training Center (NWTC) can only
    house up to 140 troops and cannot train forces larger than the size of
    a platoon.
        In fiscal year 2013, the MCMWTC trained 1,126 U.S. Army soldiers
    and 6,068 U.S. Marines, and the NWTC in Alaska trains approximately
    1,300 soldiers annually. In addition, the NWTC curriculum does not
    include Programs of Instruction for the Marine Corps Cold Weather
    Infantry Kit, track plan, arctic sentry, defensive positions, long
    range movements, camouflage/concealment, causality evacuation,
    patrolling, offensive operations, defensive operations, or ambushes.
    MCMWTC is the only command in the DOD that teaches Animal Packing,
    Special Operations Horsemanship, and Military Skiing Programs of
    Instruction.
                                     ______

                Questions Submitted to Vice Admiral Robin Braun
                Questions Submitted by Senator Mary L. Landrieu
        Question. In the 2010 Force Structure Review Group, the Marine
    Corps emphasized a need for regional, mobile and cost effective support
    for the various marine components. We are proud to host the MARFORRES
    and MARFORNORTH Headquarters in New Orleans, LA. We also have a Naval
    Air Station/Joint Reserve Base (NAS/JRB) in Belle Chasse, Louisiana--
    not far from the new Marine HQ Building. Recently, the Navy stood down
    the VFW-77 squadron housed at NAS/JRB. This left a great hanger and
    adjacent squadron building that can host a number of entities.
        Based on the recommendation from the 2010 FSRG and as you look at
    future force structure and asset placement and manning, would you take
    a strong look at the Naval Air Station/Joint Reserve Base, New Orleans
    as a location for a V-22 Osprey Squadron and/or a drone squadron?
        Answer. Marine Forces Reserve has enjoyed a close relationship with
    the great State of Louisiana for many years. Together, this team has
    weathered many storms and the professional bonds have never been
    stronger. Although the 2010 FSRG did realign some assets, there were
    very limited moves within Marine Corps Aviation. Mentioning the
    availability of this hangar in Belle Chasse, Louisiana is appreciated.
    Currently, the Marine Corps Aviation Plan does not have a requirement
    to move an MV-22 squadron or an Unmanned Aerial System squadron to
    Belle Chasse, Louisiana. In this very dynamic environment, should
    additional adjustments be required, the Marine Corps will certainly
    consider all fiscally responsible options to include Belle Chasse.
                                     ______

                  Questions Submitted by Senator Thad Cochran
        Question. Vice Admiral Braun, I am informed that the Active Duty
    Navy relies on the Navy Reserve for all intra-theater cargo and
    passenger transport. I understand the Navy Reserve uses the C-40A
    aircraft to fulfill the requirement and that you are short aircraft
    inventory. How many aircraft are you short?
        Answer. The Navy requires two additional C-40A cargo and passenger
    aircraft beyond current orders to reach the 17 needed to meet Fleet
    transport requirements. We currently operate 12 C-40A cargo and
    passenger aircraft and another three C-40As are on contract, with
    deliveries scheduled for December 2014, May 2015, and November 2016.
    These three deliveries will bring our C-40A fleet inventory to 15
    aircraft.
        Question. Why doesn't the Navy budget for these aircraft or use the
    National Guard and Reserve Equipment Account, which Congress provides,
    to buy these necessary aircraft?
        Answer. Of the 15 Navy Reserve C-40A aircraft in inventory or on
    contract, six have been procured under Presidential budget authority
    and four have been procured by Congressional additions to
    appropriations. The remaining five have been procured by National Guard
    and Reserve Equipment Appropriations (NGREA) funding: aircraft #1 and
    #2 (fiscal year 1997), #3 (fiscal year 1998), #4 (fiscal year 1999),
    and #14 (fiscal year 2012).
        Fiscal constraints have forced the Department of the Navy to make
    difficult decisions including leaving the C-40A below the cut-line in
    recent budget submissions. The Secretary of Defense, Secretary of the
    Navy, and the Chief of Naval Operations recognize there is a
    requirement for 17 C-40A aircraft to meet Fleet operational tasking.
    Two additional C-40As were placed on the CNO's Unfunded Requirements
    List and within the ``Opportunity, Growth, and Security Initiative''
    (OGSI) facet of the President's Budget for fiscal year 2015.
    Procurement of C-40A aircraft has also been the #1 priority on Navy
    Reserve's National Guard and Reserve Equipment Report (NGRER) for the
    past 5 years.
        In years that the Navy's NGREA funding is less than the cost of a
    single C-40A (currently $72.5 million) it is not an option to procure
    these cargo and passenger transport aircraft. In years that the NGREA
    funding is sufficient, procuring a C-40A is carefully considered when
    prioritizing Navy Reserve's purchase plan. Guidance provided by both
    Appropriations Committees' staffs is always a primary consideration
    when developing our NGREA buy list.
                                     ______

           Questions Submitted to Lieutenant General Richard P. Mills
                Questions Submitted by Senator Mary L. Landrieu
        Question. In the 2010 Force Structure Review Group, the Marine
    Corps emphasized a need for regional, mobile and cost effective support
    for the various marine components. We are proud to host the MARFORRES
    and MARFORNORTH Headquarters in New Orleans, LA. We also have a Naval
    Air Station/Joint Reserve Base (NAS/JRB) in Belle Chasse, Louisiana--
    not far from the new Marine HQ Building. Recently, the Navy stood down
    the VFW-77 squadron housed at NAS/JRB. This left a great hanger and
    adjacent squadron building that can host a number of entities.
        Based on the recommendation from the 2010 FSRG and as you look at
    future force structure and asset placement and manning, would you take
    a strong look at the Naval Air Station/Joint Reserve Base, New Orleans
    as a location for a V-22 Osprey Squadron and/or a drone squadron?
        Answer. Marine Forces Reserve has enjoyed a close relationship with
    the great State of Louisiana for many years. Together, this team has
    weathered many storms and the professional bonds have never been
    stronger. Although the 2010 Force Structure Review Group (FSRG) did
    realign some assets, there were very limited moves within Marine Corps
    Aviation. Mentioning the availability of this hangar in Belle Chasse,
    Louisiana is appreciated. Currently, the Marine Corps Aviation Plan
    does not have a requirement to move an MV-22 squadron or an Unmanned
    Aerial System squadron to Belle Chasse, Louisiana. In this very dynamic
    environment, should additional adjustments be required, the Marine
    Corps will certainly consider all fiscally responsible options to
    include Belle Chasse.

                              SUBCOMMITTEE RECESS

        Senator Durbin. Thank you, again, for your service.
        [Whereupon, at 11:15 a.m., Wednesday, March 26, the
    subcommittee was recessed, to reconvene subject to the call of
    the Chair.]