to fight, will continue. While this assures economic and militarily sound fielding of equipment, the reduced procurement momentum may signal the potential erosion of the Army's recent qualitative gains. The Army is midstream in its modernization of close battle forces and is only beginning to procure effective deep battle systems. The continued procurement of modern conventional systems is imperative for increased conventional capability and its concomitant deterrent ability. Chemical retaliatory capability through binary munitions, and air defense cover for front line forces are pressing needs. Consistent with the Reserve Components' increased mission requirements, initiatives to accelerate modernization of these vital forces continue. The importance of a strong technology base is manifest in the commitment to real growth in the Research, Development, Test and Evaluation account.

Force Structure. The Army is structurally sound and flexible. Designed to capitalize on the modern equipment being fielded and to employ the warfighting doctrine of AirLand Battle, the Army is structuring a 28 division force and expanded Special Operations Forces capability to meet the global requirements of today's strategic environment. With the continuation of the deliberate constraint on Active Army end strength, the reliance and emphasis on the Reserve Components is maintained. Moreover, force structure adjustments are being made to enhance the corps commander's capability to influence the operational level of war in accord with our doctrine and to improve our combat service support sustaining capabilities. Recent developments in the light force structure, exemplified by activations and conversions to the light infantry division design, have improved capabilities to respond rapidly to anticipated threats. They provide the National Command Authorities an essential degree of flexibility to respond rapidly and decisively in the critical first days of a crisis. These light force initiatives continue in FY 87 as the Army moves toward creation of five light infantry divisions. The heavier forces, primarily mechanized and armored divisions, continue to streamline their designs as they fill with modern, more capable equipment. The Army plans to complete conversion of these divisions

over the next five years. Productivity enhancements allow the implementation of more effective service support structures for combat forces. The efficiencies from these changes translate into improvements in the "tooth to tail"ratio-the ratio of combat forces to support forces. This use of technology, coupled with improved administrative efficiency and reductions in staffs, has enabled the Army to increase combat power and improve combat service support capability without adding to active end strength.

Sustainment. Improved sustainment is the result of a combination of approaches to organization, equipment, and stockage. Efforts to provide more efficient and effective support systems and more durable equipment have received increased emphasis in recent years. Improvements from these efforts are beginning to be realized. Ammunition and petroleum transportation and distribution equipment are examples of improvements that increase capability and reduce manpower requirements. Allocation rules and workload factors for combat service support units have been reviewed and updated to ensure requirements reflect modern support capabilities. Examples include efficiencies obtained through implementation of the new Army Maintenance System and Logistics Unit Productivity Systems. The new units have increased capabilities and, therefore, have a greater ability to satisfy sustainment requirements. Furthermore, planned activations in the Reserve Components will nearly eliminate manpower shortfalls in combat service support units by the end of the decade. Even though modernization and force structure initiatives cause constant adjustment in war stockage levels, the progress of recent years in improving our war reserve stocks continues. However, the rate of build up will be slowed due to reduced procurement of munitions and spares. The Army continues progress toward achieving 80 percent of our munitions war reserve objective and 70 percent of our secondary items objective during the next five years.

Jointness. Cross-service cooperation or jointness, critical to warfighting, is essential to achieving maximum combat capability from the operative arms of military powerlandpower, seapower, and airpower. By

capitalizing on each service's inherent strengths, complementary rather than duplicative programs can enhance the overall capability of the services by efficiently filling voids in individual service capabilities while allowing each service to focus on what it does best. This results in near term cost avoidance and longer term improvements in warfighting effectiveness. The Joint Force Development Process provides the institutional framework for Army-Air Force initiatives. To date successes in these efforts have ranged from clarifying joint warfighting doctrine to avoiding over $1 billion in potential program costs. Similar agreements with the Navy in such areas as logistics-over-the-shore are also improving service capabilities. The Army has been at the forefront of cross-service initiatives and continues to lead efforts to expand and institutionalize jointness.

Stewardship. The most precious resources entrusted to the care and leadership of the Army are the soldiers who volunteer to protect the freedoms of the nation. Accompanying that trust is the responsibility to employ effectively and efficiently the other resources allocated to achieve the Army's strength and combat readiness. Stewardship of these resources encompasses actions that improve the quality of life for soldiers and their families, enhance productivity of soldiers and units, increase the efficiency of weapons acquisition, and provide effective operational systems to employ the talents of high quality soldiers.

Initiatives to standardize installation organization and, through decentralization, to encourage innovation in installation operations are improving productivity. Furthermore, continuing review of force integration plans identify potential problems early enough to initiate changes before they impinge on fielding and sustainability. Establishment of a Competition Advocate has assisted in increasing the percentage of competitively awarded procurement dollars to nearly 47 percent. Parallel to this initiative has been an increase in monitoring existing contracts for fraud, waste, and abuse. This effort has resulted in a substantial increase in debarments and suspensions as well as the recovery of over $3 million from contractors who defrauded the government. The Army is

actively addressing and meeting the imperative to integrate quality soldiers, modern equipment, and sound operational concepts into effective deterrent and warfighting capability.

Leadership and Values. In recognition of the benefits positive leadership provides to the Army, the Army theme for 1985 was "Leadership." The theme of "Leadership" served to ensure that leaders and those they lead maintain a warrior spirit prepared to fight if called upon. Capturing the thrusts of previous themes-spirit, fitness, excellence, family, and leadership-the theme for 1986 is "Values." This theme serves to reaffirm our commitment to the values we are sworn to defend as well as the professional and personal values which support the Army way of life. This focus on leadership and values also highlights that the Army's most important asset is its people and good leaders and soldiers, steeped in the values that make this nation great, are the difference in war and in peace.

Building a ready and capable Army remains the Army's first priority. The success of this effort is visibly evident in Army units, both Active and Reserve Component, that have better soldiers, more and better equipment, better training, and better support. Efforts are being taken to improve the management of equipment readiness. For example, using improved resource allocation programs, more than 144 units have been raised to a combat ready status. Furthermore, the influx of new high quality equipment and redistribution of older, but still capable equipment, is redressing some long standing equipment shortfalls. Despite these recent substantial improvements, challenges abound. Especially in an era of constrained resources, responsible efforts must continue to enhance Army readiness and capability.

Numerous initiatives are underway to create an Army which is more flexible in meeting its missions. The resulting force will be more effective, more easily deployable, and will have a more favorable tooth-to-tail ratio. The recent introduction of the light infantry divisions will enable the Army to respond quickly to a wide variety of threats throughout the world. To help develop this important initiative, the Army is finding innovative ways to reduce the support burden on the deployed force and to accomplish remaining tasks more efficiently. The Abrams tank and the Multiple Launch Rocket System are two examples of new systems which have resulted in a significant enhancement of our total force

capability. They highlight the synergy of technology and sound doctrine that provides the qualitative edge to overcome quantitative disadvantages.

The Army relies more than ever before upon its Reserve Components (RC) to meet today's challenges and to counter tomorrow's threats. Our experience in many parts of the world clearly reinforces the importance of the reserves if the Army is to achieve its goal of deterring war. Focusing the Army National Guard (ARNG) and U.S. Army Reserve (USAR) on appropriate missions and providing them necessary support have made these forcesbetter prepared to meet their wartime commitments today than at any previous time in peacetime history. Through their improved readiness they serve today as fully contributing partners in the Army's mission of deterring

war.

The Capstone Program, which links RC units to a specific wartime mission and gaining command, is being used to improve RC planning, training, and resource priorities. The equipment status of some RC units has been accelerated using the "first to fight are first equipped" approach. Furthermore, later deploying units, primarily in the Guard and Reserve, need equipment to train on now. The Minimum Essential Equipment for Training (MEET) program, initiated in 1983, has been very successful in improving the ability of RC unit commanders to provide realistic training for their soldiers. The initial phase of this

program identified approximately 500 units and 500 different types of equipment that were required. The training of over 300 of these units has been improved. This equipment was made available from planned procurement, existing stocks and redistribution.

The focus on recruiting and retaining high quality soldiers has been and will continue to be our best investment. Increasing the fill of Prepositioned Materiel Configured to Unit Sets (POMCUS) will further reduce deployment times and strategic lift requirements to reinforce Europe. Investments in simulations underscore our commitment to improve the quality of training, make maximum use of limited training time and real estate, and reduce the cost of training. The National Training Center serves as a prime example of how simulations can be used to improve training. Efforts to develop and capitalize on new technology, and to coordinate better with the other services to improve efficiencies and plan for "jointness" will further support the Army's efforts to make readiness first priority in a resource constrained environment.

All other efforts are wasted if we cannot sustain our forces once they are committed. Increases in war reserve stocks, medical support, water resupply assets, and the Individual Ready Reserve are some of the ways sustainability is being improved.

The foundation of our efforts to enhance readiness is the action being taken to foster good leadership throughout the Army. This effort involves more emphasis on professional schooling, more awareness of the operational art, and more attention to standards of performance. Good leaders will be effective stewards of the Army's readiness dollars.

Accurate, comprehensive assessments are necessary to determine our ability to execute operations plans; to provide insights into weakness in our ability to mobilize, deploy, fight, and sustain the force; and to show

changes in capability over time. Efforts are underway to enhance capability assessment.

A new warfighting model which will better portray the deep battle, the battle in the rear areas, and the effects of logistics shortfalls is being incorporated into the Army's Operational Readiness Analysis (OMNIBUS), a key analytical tool for assessing total force readiness. A baseline methodology is being developed that will provide a measurement of capability independent of changes in the threat as well as capability including changes in the threat.

The Total Logistics Readiness/ Sustainability Study is an annual comprehensive analysis that assesses the Army's current capability to sustain logistically forces deployed in support of its principal operational plans. This study, and the OMNIBUS development and warfighting analysis provide vital information about total force capability and possible enhancements.

Another key tool for assessing capability is the Measuring Improved Capabilities of Army Forces (MICAF) study. MICAF quantifies capability improvements in Army divisions, separate brigades and armored cavalry regiments. Since 1980, the capability of the Army's major combat units has increased 40 percent. Future MICAF enhancements will provide information on improvements needed to optimize capability and will assess the effects of budget decrements.

Through these initiatives, the Army is making great strides in its ability to assess its current capabilities and to undertake actions that provide the most effective ready force possible. Even though much work remains to offset long standing shortfalls, the improvements in Army capability have produced a force that stands as a visible symbol of this nation's deterrent posture and its resolve to protect its vital interests.