LEGACY FORCE MODERNIZATION AND RECAPITALIZATION Recapitalization and Modernization efforts are necessary to ensure current and near-term warfighting readiness. Currently, 75 percent of major combat systems exceed engineered design half-life and will exceed design life by 2010; system operation and sustainment costs are up over 35 percent, and aircraft safety of flight messages are up 200 percent since 1995. We must judiciously modernize key armored and aviation systems in the Legacy Force to enhance force capabilities. We will further digitize the Abrams tank to increase situational awareness and remanufacture early model Bradley infantry fighting vehicles to improve lethality, situational awareness, and sustainability. We will procure new systems like Crusader to increase force effectiveness, reduce friendly casualties, ease logistics support requirements, and improve deployability. Crusader will maximize the total capabilities of the Legacy Force. Fielding the Patriot Advanced Capability-3 missile defense upgrade and the Theater High Altitude Area Defense system will significantly increase our in-theater force protection. Current legacy forces will benefit from upgrades and enhancements to proven systems. Interim forces will demonstrate the power of developmental and off-the-shelf communications and intelligence capabilities. The Army has made the hard decisions for selective modernization to sustain combat overmatch. What is needed is continued support for our prudent investment strategy to keep our force strong and credible. Concurrently, the Army will selectively recapitalize Legacy Force equipment to reduce the rapid aging of our weapons systems. The fiscal year 2002 budget takes a step in this direction by providing additional funding to depot maintenance in preparation for recapitalization. The Army has determined that we preserve readiness best and most cost effectively when we retire or replace warfighting systems on a 20-year Department of Defense modernization cycle. Today, 12 of 16 critical weapons systems exceed this targeted fleet average age. As systems age, they become more costly and difficult to maintain in peak warfighting condition. They lose combat overmatch with respect to an adversary's modernized systems. The Army has established a selective recapitalization program that will restore aging systems to like-new condition and allow upgraded warfighting capabilities for a fraction of the replacement cost. We must maintain the readiness of the Legacy Force until the Objective Force is operational. As the Legacy Force maintains our strategic hedge and the Interim Force bridges the capability gap, the Army will build the Objective Force and complete the Vision for a trained and ready 21st Century Army. THE INTERIM FORCE The fielding of the Interim Force fills the strategic gap between our heavy and light forces and is an essential step toward the Objective Force. The key component of the Interim Force is the Interim Brigade Combat Team (IBCT), the first of which is being organized at Fort Lewis, Washington. Its primary combat platform, the Interim Armored Vehicle (IAV), will fulfill an immediate requirement for a vehicle that is deployable any place in the world arriving ready for combat. The IAV will consist of two variants, a mobile gun system and an infantry carrier with nine configurations. The IAV will achieve interoperability and internetted capability with other IBCT systems by integrating command, control, communications, computer and intelligence, surveillance, and reconnaissance systems. Congress supported the IBCT concept with an additional $600 million in the fiscal year 2001 Defense Appropriations Act for IAV procurement and organizing the second IBCT. The Army has programmed resources to field six to eight IBCTs. The Army will train and test soldiers and leaders in the doctrine and organization of these new units to ensure that they can respond to operational requirements. An IAV-equipped battalion-sized element will undergo training and initial operational testing and evaluation to guarantee system suitability and effectiveness. Innovative applications and technology insertion in supporting forces will complete the IBCT package and enable full operational capabilities for the first IBCT in 2005. THE OBJECTIVE FORCE The Army's ultimate goal for Transformation is the Objective Force. Operating as part of a joint, combined, and/or interagency team, it will be capable of conducting rapid and decisive offensive, defensive, stability and support operations, and be able to transition among any of these missions without a loss of momentum. It will be lethal and survivable for warfighting and force protection; responsive and deployable for rapid mission tailoring and the projection required for crisis response; versatile and agile for success across the full spectrum of operations; and sustainable for extended regional engagement and sustained land combat. It will leverage joint and interagency reach-back capabilities for intelligence, logistical support, and information operations while protecting itself against information attacks. It will leverage space assets for communications; position, navigation, and timing; weather, terrain, and environmental monitoring; missile warning; and intelligence, surveillance, and reconnaissance. The Objective Force will provide for conventional overmatch and a greater degree of strategic responsiveness, mission versatility, and operational and tactical agility. With the Objective Force, the Army intends to deploy a combat-capable brigade anywhere in the world in 96 hours, a division in 120 hours, and five divisions in 30 days. Our ability to quickly put a brigade-size force on the ground, with the balance of a division following a day later, fills a current gap for credible, rapid deterrence. The Objective Force will offer real strategic options in a crisis and changes the strategic calculations of our potential adversaries. The Army with Objective Force capability will provide the National Command Authorities with a full range of strategic options for regional engagement, crisis response, and land force operations in support of the Nation. SCIENCE AND TECHNOLOGY Advances in science and technology will lead to significantly improved capabilities for the Objective Force. The Army is programming over $8 billion for science and technology efforts to begin fielding the Objective Force by the end of the current decade. This effort seeks to resolve a number of challenges: how to balance sustained lethality and survivability against ease of deployability; how to reduce strategic lift requirements and logistical footprint required in-theater; how to mitigate risk to our support forces and to forces in-theater; and how to ensure digitized, secure communications to provide battlefield awareness at all levels of command. The Army will find the best possible answers while maintaining the ready, disciplined, and robust forces our Nation demands, our allies expect, and our adversaries fear. Future Combat Systems (FCS), a system of systems, is one of the essential components for the Army's Objective Force. To accelerate development of key technologies, the Army partnered with the Defense Advanced Research Projects Agency in a collaborative effort for the design, development, and testing of FCS while simultaneously redesigning the force. The fiscal year 2002 budget funds FCS demonstrations of system-of-systems functions and cost sharing technologies. Forces equipped with FCS will network fires and maneuver in direct combat, deliver direct and indirect fires, perform intelligence, surveillance, and reconnaissance functions, and transport soldiers and materiel. Over the next 6 years, the Army will demonstrate and validate FCS functions and exploit high-payoff core technologies, including composite armor, active protection systems, multi-role (direct and indirect fire) cannons, compact kinetic energy missiles, hybrid electric propulsion, human engineering, and advanced electro-optic and infrared sensors. Equally essential to the Objective Force, and consistent with Secretary Rumsfeld's strategic review, is the fielding of the Comanche helicopter beginning in 2006. The fiscal year 2002 budget continues our efforts toward achieving this important capability. Comanche is the central program of the Army aviation modernization plan and a prime example of existing modernization programs with significant value for Objective Force capability. Although Comanche will be fielded as part of the Objective Force, its digitization will be compatible with Legacy and Interim Force systems. Comanche will provide a lethal combination of reconnaissance and firepower. INSTITUTIONAL TRANSFORMATION The fiscal year 2002 budget funds schoolhouse training at 100 percent. This is a first. It funds U.S. Army Training and Doctrine Command (TRADOC) transformation initiatives to include expansion of one station unit training, establishment of a land warfare university, basic officer leadership course enhancements, establishment of an accession command, and quality assurance initiatives. As the combat formations are being transformed, the Army's institutional baseschools, services, facilities, and installations—must also change to support both the Objective Force and current mission requirements. TRADOC produces tactically and technically proficient soldiers and leaders and the doctrine and concepts for operational success. The Army must train soldiers-in simulations, on ranges, and in exercises-and grow them into leaders who are capable of executing rapid and seamless transitions between missions throughout the spectrum of operations. Training must continuously improve and respond to emerging technologies. We must recapitalize and modernize ranges, distance learning centers, Army schools, and combat training centers to keep pace with changes in force structure, technology, and the global environment. We must address the increasing challenge to readiness posed by encroachment to our ranges and training areas while maintaining our environmental stewardship of these same lands. Army doctrine and concepts must also transform to keep pace with our changing operational force and growing technological advantages. As foundations for the Transformation, the two conceptual baselines for Army doctrine, Field Manuals, FM-1, The Army, and FM-3, Óperations, were published June 14, 2001. TRADOC is revising and developing doctrine for organization and operation of the Interim Force and validating concepts for the Objective Force. We are also developing the concepts to integrate the capabilities of space and information operations to provide support across the entire spectrum of military operations. At every level, the Army is integrating emerging joint and multinational doctrine to develop the concepts that will field a force, grounded in doctrine, that is capable of providing the National Command Authorities a range of options for regional engagement, crisis response, and sustained land force operations. ARMY TRAINING AND LEADER DEVELOPMENT Key to transformation is the training and leader development necessary for producing adaptive soldiers and leaders who can lead and succeed in both joint and combined environments while capitalizing on the latest battlefield technologies. The Army Training and Leader Development Panel (ATLDP) has concluded its in-depth study of issues affecting the Army's culture and its training and leader development doctrine. The ATLDP surveyed and interviewed over 13,500 officers and spouses. Follow-on studies of the noncommissioned officer and warrant officer corps will be conducted over the next 6 months. The primary objectives of the panel were to identify skill sets required of Objective Force leaders and to assess the ability of current training and leader development systems to cultivate those skills. Study participants addressed issues that included well-being, job satisfaction, training standards, and the officer education system. This study represents a candid self-assessment by the Army; it seeks to restore faith with soldiers and set a course for improving all aspects of the Army's culture by bringing institutional beliefs and practices in line. To that end, some steps have already been taken, including adapting the officer education system to meet the needs of the transforming Army; eliminating non-mission compliance tasks that interfere with war fighting training; allocating full resources to our Combat Training Centers; and protecting weekends for the well-being of soldiers and their families. It is a testament to the strength of any organization when it is willing to take such a candid look at itself, and this kind of healthy introspection characterizes a true profession. The fiscal year 2002 budget funds development of training, training products, and materials that support resident and unit training programs. It provides for the analysis, design, development, management, standardization of processes and practices integration and operations of Army training information systems and automation of the training development process. In the area of leader development it allows schoolhouse trainers to adapt training programs for future leaders and increases training support funding for aviation and specialized skill training. Further, the budget funds active component unit training OPTEMPO and supports critical training enablers. Our Combat Training Center program remains the proving ground for warfighting proficiency, and we currently have scheduled ten brigade rotations through the National Training Center, ten brigade rotations through the Joint Readiness Training Center, and five brigade rotations through the Combat Maneuver Training Center. LOGISTICAL TRANSFORMATION We will transform logistical services and facilities to enhance readiness and strategic responsiveness. Today, logistics comprises approximately 80 percent of the Army's strategic lift requirement, creating a daunting challenge to deployability. Prepositioning stocks and forward presence solves only part of the problem. Currently, the Army has seven brigade sets of equipment forward deployed on land and at sea with an eighth brigade set being deployed in fiscal year 2002. As we fundamentally reshape the way the Army is deployed and sustained, we will ensure logistics transformation is synchronized with the needs of the operational forces and supports Department of Defense and Joint logistics transformation goals. The Army is examining how to reduce the logistical footprint in the theater of operations and to reduce logistical costs without hindering warfighting capability and readiness. Approaches already being explored are recapitalization, common vehicle chassis design, a national maintenance program, and an intermediate basing strategy for force protection. We are synchronizing the critical systems of the institutional Army with our operating forces to ensure the Transformation of the Army is holistic and complete. CONCLUSION The Army has embarked on a historic enterprise. Recognizing that the forces we can provide to the combatant commands are becoming obsolescent in a changing strategic environment, the Army is transforming. With the support of the administration and Congress, the Army has charted a course that will better align its capabilities with the international security environment, enhancing responsiveness and deterrence while sustaining dominance at every point on the spectrum of operations. The Army Transformation is the most comprehensive program of change in a century and is already underway. It comes at a propitious moment. We live in a time of relative peace. Our Nation's economic strength has given us a period of prosperity. A decade of post-Cold War experience has provided us strategic perspective and American technological power gives us tremendous potential. We have seized this opportunity to guarantee our strategic capability and our non-negotiable contract with the American people well into this century. Mr. Chairman and distinguished members of the committee, we thank you once again for this opportunity to report to you today on the state of your Army. The statements made in this testimony are contingent upon the results of Secretary Rumsfeld's strategic review. We ask you to consider them in that light. We look forward to discussing these issues with you. Chairman LEVIN. Thank you. STATEMENT OF GEN. ERIC K. SHINSEKI, USA, CHIEF OF STAFF, UNITED STATES ARMY General SHINSEKI. Mr. Chairman, Senator Warner, distinguished members of the committee: Today more than 24,000 soldiers are operationally deployed around the world in 67 countries. These are not new statistics to you. This committee in particular gets out to see those soldiers. But I give you those numbers because it gives you an indication of where the Army is deployed today. We remain a warfighting Army and our primary focus day to day attends to our warfighting prowess. But we also understand that we provide versatile and agile solutions for all the other challenges facing the United States. This explains in part our deployed profile, and in the absence of better alternatives we do not believe that we should leave the Nation without forces that can cover the full spectrum of demands that it confronts as a global leader day to day. To meet these obligations, the fiscal year 2002 presidential budget amendment reflects a carefully balanced program that allows the Army to meet its readiness requirements in fiscal year 2002 while sustaining the other key elements of our vision-our people and the transformation of the force. With tremendous bipartisan support from Congress, we have achieved sustainable momentum in transforming the Army. We are committed to making that momentum irreversible as we make the Army faster, more lethal and decisive, and more affordable. In the next 10 years, we must be prudent about accepting more operational risk than we are already carrying today without good analytical foundations for such additional burdening. To date, we have moved out on our two interim brigade combat teams at Fort Lewis, Washington, and we are investing in science and technologies in ways that will enable us to begin research and development on those Science and Technology (S&T) initiatives in the 2003-2004 timeframe. Momentum here is good. In order to protect that momentum, our priority under the new budget is to ex tend the life of our Legacy Force systems through recapitalization and selective upgrades to our current warfighting platforms. Today 75 percent of those combat systems exceed their expected half-life, increasing operations and maintenance costs by 30 percent over the past 4 years. Apache helicopter safety of flight messages alone have gone up by over 200 percent since 1995. To combat these spiraling costs, we have identified 19 systems that must be recapitalized in order to extend their useful readiness. We must also selectively modernize those capabilities with systems like Crusader and Comanche, which will cost-effectively maximize the capabilities of the Legacy Force and also answer Objective Force requirements. We are grateful for this committee's devotion to improving the well being of our soldiers and their families. It is making a difference. These initiatives will begin to slow the rate of decay of our infrastructure, but not totally reverse it. We must protect the dollars we have elected to shift to these accounts and remain vigilant in fixing this problem. Mr. Chairman, the Army Vision is about future American leadership at home and abroad. Decisive land power uniquely and critically counters international threats and defends U.S. interests, and when resistance is overcome, land power ultimately guarantees compliance with terms of peace. Thereafter, it enables the establishment of legitimate authorities and rebuilding in areas of conflict. In short, land power provides the National Command Authorities and the warfighting CINCs with the kind of flexibility to respond to and resolve crises. Thank you for your invitation to appear here today. I look forward to your questions. Chairman LEVIN. Thank you, General Shinseki. STATEMENT OF HON. GORDON R. ENGLAND, SECRETARY OF THE NAVY Secretary ENGLAND. Chairman Levin and Senator Warner, members of the committee: I am delighted to be here. I am especially delighted to be here with Admiral Clark and General Jones. Hopefully, you will see us together much in the future because we have formed indeed, Senator Warner, a very, very close leadership team as we lead our forces into the future. I do want to thank this committee for your support in the past and for your continuing support of our naval services. In fiscal year 2001 and particularly with the supplement provided, as a naval service we were able to meet our commitments, but with some unfulfilled needs. The submitted budget for fiscal year 2002 has the naval service getting better in all categories. Senator Warner, we do maintain the momentum in 2002 with the budget we have submitted. It is still short of our end objective and you will be hearing more of that, I know, from the chiefs. We are looking to the 2003 budget submittal to reflect the ongoing studies and the future force structure. Senator Levin, the CNO and the Commandant and I, in response to your comment earlier, do plan to include in the 2003 budget specific business practice improvements within the Department of the |