emblematic of the scalability of our Marine Air-Ground Task Forces. In size and capability, these brigades are midway between our "light" Marine Expeditionary Units and our "heavy" Marine Expeditionary Forces. Furthermore, our Marine Expeditionary Brigades can either deploy on amphibious shipping or be airlifted into a theater of operations to link up with equipment and supplies aboard Maritime Prepositioning Ships.

While the global war on terrorism has demonstrated the current capabilities of the Navy-Marine Corps Team, our continuous transformation and modernization promise even greater future capabilities for the Marine Corps. Transformation is an ongoing process, however, not an end-state. It spans decades of innovation and experimentation. It is also not limited to technology, but includes change in our organizational structure, operational concepts, and business practices.

The Marine Corps has always been at the forefront of transformation and innovation. Throughout our history, the Marine Corps has changed and evolved from ship security, to naval constabulary, to light infantry, to an amphibious assault force, to an air-ground expeditionary team. In the past, our development of close air support, amphibious warfare, vertical envelopment, short take-off and vertical landing technology, and maritime prepositioning have benefited our joint warfighting capability. Today, the Marine Corps remains true to its warrior culture and continues in a tradition of change. Drawing on our history of transformation, the Marine Corps is moving forward with new concepts, innovation, and exciting experimentation. Our focus is on the creation of new capabilities, which will yield the operational advantages we seek to have in dealing with future conflicts.

III. THE MARINE CORPS' TRANSFORMATION: CONCEPTS, TECHNOLOGIES, AND

ORGANIZATIONS

Although many think of transformation primarily in terms of weapons systems, true transformation results from a synthesis of new technologies with strategic vision, revolutionary operational concepts, and agile, adaptive organizations. Clearly, we must harness the potential military benefits of rapid advances in technology. The V-22 Osprey is but one example of the potential of proven transformational technology. The path to transformation involves a robust program of experimentation with new concepts, capabilities, and operational prototypes while actively pursuing forward-looking science and technology efforts. As we experiment and introduce new capabilities, we will rapidly mainstream the changes into our ready forces. [See Figure 2]

A. TRANSFORMATION OF OPERATIONAL CONCEPTS AND BETTER BUSINESS PRACTICES

Technological innovation plays a paradoxical role in military transformation. With each problem it solves, technological innovation tends to introduce new challenges and opportunities. Operational concepts can offset these tensions by finding the means to capitalize on technological strengths and also guard against creating new weaknesses. In light of heightened fiscal awareness and the need to be effective with our resources, we must reform our business practices to maximize available resources and develop more expedient means of fielding programs and equipment. With this in mind, the Marine Corps is committed to transforming its operational concepts and business practices.

The ongoing process of conceptual change is embodied in the recent publication of our overarching concept, Expeditionary Maneuver Warfare. It is the foundation for the way the Marine Corps will conduct operations in the 21st century. Expeditionary Maneuver Warfare is the union of our core competencies, maneuver warfare philosophy, expeditionary heritage, and the concepts by which we organize, deploy, and employ forces. It emphasizes the unique and proven capabilities the Marine Corps provides Joint Force Commanders and the synergy created when leveraged with the complementary capabilities of other services and agencies. These capabilities translate into power projection designed to promote global security and reassure our allies and friends, while deterring and defeating adversaries and potential foes. Central to our conceptual transformation is the potential power represented in a future integrated sea-base. At-sea arrival and assembly, selective off-load, and atsea reconstitution capabilities stand to revolutionize the way Naval forces project power and influence around the globe. Our evolving logistics concepts promise indefinite sustainment of Marine forces, both afloat and ashore. As well, Marine forces afloat typically rely upon the command, control, communications, and computer (C4) capabilities aboard amphibious shipping to provide critical reach-back connectivity to deployed elements of the Marine Air-Ground Task Force, and communications with joint and multinational forces. These afloat C4 capabilities are crucial to the success of sea-basing and to achieving the full potential of Naval power projection. The Marine Corps' sea-basing strategy is yet another illustration of continued transformation in operational concepts. Recognizing the increasing limitations on future basing potential of American forces overseas and the simultaneous need for the United States to maintain a forward presence, the Navy and the Marine Corps are developing a forward presence strategy as an extension and augmentation of our concept of sea-basing. Sea-basing is the formation of joint assets at sea to project and sustain combat power ashore, while reducing or eliminating our landward logistics footprint during combat operations. The sea-based presence strategy boosts forward engagement during peacetime by increasing the number of countries that we may visit without being permanently stationed at large fixed-bases in host nations. Marines can deploy from country to country and advance diplomatic and informational efforts through military-to-military relations, small unit training, liaison exchanges, and exercises. III Marine Expeditionary Force's annual Cooperation Afloat Readiness and Training in the Asia-Pacific region is an illustration of this concept. In addition to codifying overarching conceptual innovations, the Marine Corps is adjusting its tactics, techniques, and procedures to better support conceptual change. Marine Aviation Weapons and Tactics Squadron 1 is adapting tactics, techniques, and procedures for the employment of aviation operations in urban terrain a vital, yet challenging environment today and in the future. Advancements have been made in target selection and tracking, weapon selection and employment, friendly unit position identification, command and control, and staff planning. Likewise, the Marine Corps is actively engaged in the development of the underlying concepts of Network Centric Warfare for Naval expeditionary forces. We are exploiting state-of-the-art information and networking technology to improve situational awareness and to integrate widely dispersed sensors, forces, and weapons. Network Centric Warfare will allow commanders to achieve mission objectives rapidly and decisively by concentrating the combined fire and maneuver of Naval forces afloat and ashore at decisive locations and times. Similarly, the Marine Corps led Joint Non-Lethal Weapons Directorate is forging the way for the development of non-lethal technologies, as well as the tactics, techniques, and procedures for effectively employing their effects. Congressional funding of the Non-Lethal Technology Innovation Center at the University of New Hampshire will continue to provide further stimulus for the experimentation and formulation of doctrine that guides the tactical use of these new weapons.

Just as it is transforming its doctrine, the Marine Corps is also transforming its business practices. Our readiness is a reflection of balancing the demands of current requirements around the globe with the imperative to invest and be prepared for

the future. This balance can over the long haul be achieved only if resources are reallocated from overhead and support activities to our fighting forces. To accomplish this reallocation of resources, we are adopting better business practices to achieve greater cost-effectiveness. There are several different avenues that the Marine Corps is taking to make this happen. We are streamlining organizations to eliminate redundancy and maximize integration. We are also reducing excess support structures to free resources and focus on core competencies.

To transform our business practices, the Marine Corps must increasingly rely on business intelligence and associated technologies promoting access to information. We consider information to be a strategic asset, and by assuring access to information, we will improve the operational agility of the Marine Corps. Our efforts to promote enterprise management of information technology confirm our need for a common infrastructure that includes a shared data environment, realignment and consolidation of many of our information systems, and the search for cost-effective strategies.

Commercialization, privatization, and out-sourcing are among the methods the Marine Corps has used to reduce costs, but ultimately it is competition between public and private sources that has led to increased savings. The Marine Corps has initiated competition between government sources and private sector commercial sources for a broad number of activities, best seen in the Marine Corps' application of such competition vis-à-vis its bases and stations. To operate our 15 major installations essentially providing the range of support services typical of a municipality a labor force of approximately 20,000 marines and 14,000 civilians are employed. One of the processes we have used in these competitions to save money is ActivityBased Costing and Management. This process provided our installation commanders information that enabled them to save over $30 million last year by analytically measuring the costs of particular work and evaluating the performance of that work.

Another example of turning to the private sector and using competition to bring down costs is the success of our new camouflage utility uniform. The uniform was created, tested, produced, and fielded by the Marine Corps with the use of a new digital camouflage design technique through a single source vendor, yielding a product that is superior in quality, comfort, and cost to that in existence today. We are extremely pleased with this innovative uniform that not only costs less in the long run, but is a product improvement benefiting our marines. All of this was achieved within a 1-year period.

Just as the Marine Corps' new utility uniform is an example of both tactical and business innovation, so too are the transformation of operational concepts and business practices seen together in our Integrated Logistics Capability. The Integrated Logistics Capability is redefining and realigning our supply and maintenance process by providing our logisticians with greater awareness of equipment status, increasing their capacity to more rapidly and effectively respond to logistical requirements on the battlefield. The simple objective of our Integrated Logistics Capability is to avoid weighing down the warfighters with the requirement to haul, protect, and administer massive amounts of supply material. The foundation of this concept and business practice is a revolutionary change in military methodology: shifting from massive inventories to small inventories. With the use of new technologies and practices proven in the private sector, the Corps will, in essence, create a “new order" for its logistics enterprise and undertake the revolutionary changes necessary to ensure that it continues to be the premier fighting force in the world. Second Force Service Support Group at Camp Lejeune, North Carolina, is currently testing many of these new processes in a year long "proof of concept" to validate the direction in which we are heading. These efforts will allow Marine logisticians to support the battlefield of the 21st century with a smaller logistical footprint in a more costeffective manner.

B. TRANSFORMATION AND MODERNIZATION THROUGH HARNESSING TECHNOLOGIES

With the foundation of requirements drawn from its new concepts, the Marine Corps is transforming its weapons systems and assets throughout the five elements of our Marine Air-Ground Task Forces our ground, aviation, logistics, and command elements, as well as our supporting establishment. The following examples are but a few of our transformational and modernization efforts. Many of our investments involve modernization of existing capabilities vital to effectively and efficiently fulfill our core competencies. A more comprehensive description of the Marine Corps' entire acquisition program can be found in the Marine Corps' Concepts & Issues: Forging the Future Marine Corps.

Amphibious Shipping for Sea-basing

We are a maritime nation and we must capitalize on this part of our national character to ensure that we are ready for the challenges that are over the horizon. The requirement for our amphibious shipping remains the linchpin of the Corps' ability to influence the international security landscape, project power, and protect the Nation's interests during peacetime and crises. While it has long been recognized that we require an amphibious ship force structure capable of simultaneously lifting the assault echelons of three Marine Expeditionary Brigades, today's amphibious lift can support only two-thirds of this requirement in certain aspects of the lift footprint. I strongly recommend that we commit to redress this shortfall as a matter of urgent priority.

We are grateful for your support in replacing four classes of older ships with the new LPD-17 San Antonio amphibious ship class. Delivery of these 12 ships to the fleet is currently planned to be complete in 2015. However, we remain concerned about further schedule slippage in the LPD-17 program. Such delays compromise our ability to fulfill our global forward presence responsibilities and must be avoided. Similarly, we are concerned with replacing the LHA-1 Tarawa class ships. Considering the extended time-frame for ship design, construction, and delivery, we need to ensure now that we are ready to replace the Tarawa class when they reach the end of their 35-year service life starting in 2011. [See Figure 3]

Expeditionary Lift (MEB Assault Echelons)

The leases of our current fleet of Maritime Prepositioning Ships (MPS) will expire in fiscal years 2009, 2010, and 2011. The development of advanced Maritime Prepositioning capabilities, High Speed Vessel platforms, and new lighterage vessels will significantly increase the strength and flexibility of our sea-based expeditionary operations. The marriage of a modern amphibious fleet with modern Maritime Prepositioning Shipping capable of hosting at-sea arrival and assembly of forces will minimize the requirement for access to secure ports and airfields, and give our Nation an unmatched asymmetrical advantage in projecting power.

Tilt-Rotor Aircraft

The V-22 Osprey remains the Corps' number one aviation acquisition priority. Recent actions in Central Asia have only reinforced the immediate need for this truly transformational capability. [See Figure 4]

Tilt-rotor technology holds the promise to revolutionize aviation we should not be afraid to embrace this promise. Both the Department of Defense's Panel to Review the V-22 Program and the National Aeronautics and Space Administration's Tiltrotor Aeromechanics Phenomena Assessment Panel concluded that tilt-rotor technology is sound and that mishaps have been the result of engineering deficiencies that can be solved. The V-22 will radically increase the Marine Corps and Special Operations Command's operational reach and tactical flexibility. The Osprey's superior range, speed, and payload will give Marines and Special Operations Forces the ability to accomplish combat missions and other operations from distances previously unattainable, with response times far faster than possible with other airframes. The battlespace of the future will demand capabilities that provide rapid and effective maneuver. Through the use of the V-22's increased speed and range, we not only improve our ability to influence the tempo of operations, but we provide our forces with greater survivability. These capabilities are the foundation for how we have planned to transform our operational concepts and intend to reorganize our force structure.

We are aware of the challenges associated with the Osprey but are pleased that the Under Secretary of Defense for Acquisition, Technology, and Logistics has announced that a new comprehensive flight test program for the V-22 will start this spring. This flight test effort will be "event-driven," as opposed to being "time-driven." Both the Secretary of the Navy and the Under Secretary of Defense for Acquisition, Technology, and Logistics will periodically review flight test results to assess

progress.

Short Take-Off and Vertical Landing Aircraft

In late October 2001, the contract was awarded for the Joint Strike Fighter, signaling a new era in naval aviation. The advantages of a stealthy strike fighter capable of taking off from an expeditionary base on land or at sea, fly in supersonic cruise, accomplish its mission with advanced sensors and weapons, then return to its expeditionary site are dramatic. This aircraft will transform the very foundations of tactical air power. It will provide the reliability, survivability, and lethality that our forces will need in the years ahead. Moreover, the Short Take-Off and Vertical Landing Joint Strike Fighter variant provides operational access to more than three to five times the number of airfields available around the world that are currently capable of supporting our so-called "legacy" aircraft. The Short Take-Off and Vertical Landing Joint Strike Fighter can also operate from both conventional carriers and amphibious assault ship decks, effectively doubling the number of shipborne