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In a world that is globally-connected, national security and international stability are vital foundations of America's prosperity. Ensuring security and stability requires global vigilance, reach, and power-global vigilance to anticipate and deter threats, strategic reach to curb crises, and overwhelming power to prevail in conflicts and win America's wars. We are postured to provide balanced aerospace capabilities across the full spectrum of military operations, but in order to maintain America's aerospace advantage we must recapitalize our force.

Chairman LEVIN. Secretary Roche, thank you.

General Ryan.

STATEMENT OF GEN. MICHAEL E. RYAN, USAF, CHIEF OF STAFF, UNITED STATES AIR FORCE

General RYAN. Chairman Levin, Senator Warner, distinguished members of the committee: Before we get started, I would like to thank my fellow chiefs for all their service and support, flying in close formation through the years, and these service secretaries for their commitment to serve. I also want to thank members of the committee for all you have done for the men and women in uniform over the 4 years I have had the privilege of serving as the Chief of Staff of the Air Force.

During that time we have seen a drop in readiness that has concerned us all. With your help, we have been able to arrest the decline, but much more needs to be done to regain our edge across the board. Consequently, this budget submission for the Air Force has a great emphasis on people and readiness.

We still need your help in attracting the highest quality individuals to serve in our military. I am happy to say this year we are making our recruiting goals, both in terms of quality and numbers. Our major challenge is retaining our best and brightest to stay with us for a career. Your help over the past years on pay, retirement, health care, etcetera, has been much appreciated.

Quality of life issues are terribly important to attracting and retaining great people, but also so is quality of service. Quality of service addresses the need to assure we give our airmen the proper tools to do the tough jobs we ask of them in Kuwait, Saudi Arabia, Turkey, in No Fly Zone enforcement where combat occurs daily. The same is true in the Balkans and in Korea. Quality of service is not just about the equipment with which we operate, but the ranges, hangars, buildings and shops in which we ask these dedicated individuals to do their work.

We all know quality begets quality and we have underfunded our modernization of our capital equipment and our infrastructure for too long. The average age of an Air Force aircraft is 22 years and continues to climb. We must turn this aging problem around.

In summary, I look forward to working with Secretary Roche and all of you as we complete the quadrennial defense review and address the budget issues before us. I know together we can make a great difference as we continue to rebuild our military to meet the challenges of the 21st century, and I look forward to your questions.

Chairman LEVIN. Thank you, General Ryan.

We are going to have a 6-minute first round.

Senator INHOFE. Could I have a question, Mr. Chairman?

Chairman LEVIN. Yes.

Senator INHOFE. Do we intend to have more rounds?

Chairman LEVIN. Yes. For our first round we will use the 6minute rule and then, depending on how many people are still here and how much time we have left, we will decide on how long the question period will be for the second and any successive rounds. Senator INHOFE. Thank you.

Chairman LEVIN. I want to ask each of you for the record to give us your list of unfunded requirements for 2002. I am not going to ask you here, but I am going to ask each of you to submit that for the record.

[The information referred to follows:]

ARMY

UNFUNDED REQUIREMENTS

I appreciate the opportunity to comment on the Army's fiscal year 2002 resource posture. Clearly, the fiscal year 2002 Amended Budget represents a balanced program that will allow the Army to remain trained and ready. I am pleased to note significant increases in a number of key areas-soldier pay and housing, base operations, real property, and science and technology. These will improve quality of life for our soldiers and their families, slow deterioration of our aging infrastructure, and advance Army Transformation.

However, there is still much to be done. To stem the critical decline in our facilities, the Army has assumed some risk in our operating accounts. We will mitigate this risk in the year of execution. Additional resources will allow us to accelerate recapitalization of our counterattack corps, restore necessary OPTEMPO funding and begin stabilization of our infrastructure.

The following list outlines these and other fiscal year 2002 Army shortfalls.

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The Navy's list of unfunded requirements for fiscal year 2002 is provided in the following tables.

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Manpower

CURRENT SHORTFALL (IN $ MILLION)
Fix Underfunded Programs - Part II

Program

Comments

Other Initiatives

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Grants SECNAV discretionary authority for revised pay table which hasn't been updated since 1988. 1.7M is RPM Outyear tail of a similar amount

Funds rate restructure and expands SDAP to additional skill areas. Oulyear tail of $12M year

FY01 National Defense Authorization Act requires payment of a $100/day allowance to service members 'deployed more that 400 days out of the preceding 730. Language proposed to OSD to delay implementation of payment until FY04. Cost estimate based on initial models. Schedule changes that NPCAN1 currently determining entitlement requirement. Cost estimate updated to reflect latest deployment schedules.

Increases new payments to $187M to help attain reenlistments for required grade/skili mix at '376K endstrength ($7M over adjusted FY 01 new payment program of $180M).

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Funds GENDET Targeted Enlistment Program (GTEP) which guarantees an "A" School upon completion of an initial 9 to 15 month GENDET tour (1,000 moves/-$2M). Also funds first term split tours for 1st term sailors to provide a broader view of the Navy before reaching the reenlistment decision.

Would allow for payment of Enlistment Bonus during training vice current requirement that pays a lump sum at the end of training. Proposed pilot seeks to reduce attrition in longer schools by providing regular incentives vice a larger payment at a much later date. Initial program would be implemented in the Nuclear traming pipeline.

FY 02 omnibus legislative proposal - authorizes SECNAV to pay up to $750/month to ensure adequate volunteers for hard-to-fill jobs/locations. (Includes $2M O&M start-up coSIS).

18

PCS bowwave from FY 2001-3,118 moves.

355

124

Funds Ship Maintenence to 100% of PRO3 adjusted requirment- all platforms includes $8M reserves

18

Fund to 100% of goal (raserves)

61

Funds technical support of over 4,000 in-service aircraft, systems, and related ground support

294

17

Potential shortfall based on recent N4 baseline assessment. Fund at 100% of requirement
($274M) and cover FY 01 bowwave ($90M).

Funds refit and refurbishment of Aillson 501K Ship Service Generators and GE LM2500
Propulsion engines.

Close in Weapon System (CVS)- Overhauls

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Fund 12 (v 6 budgeted) overhauls. Current backlog is 84.

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Rephased R&D stream to meet the events associated with supporting the SCN contract sign in Jan 01.

Tactical support equipment, vehicles, communications gear to replace obsolete equipment and make interoperable with Marine Corps and other Services.

Acceleration of IT-21 Shipboard Networks to fund 100% of baseline requirement for satelite access for shipboard users to ashore classified and unclassified Wide Area Networks.

Recent CEB and Fleet Modernization Program discussions imperative of improved systems engineering and management at all levels. Additional FY 02 funds required for RDA CHENG for systems engineering and analysis for Air Dominance and Power Projection program. Requirement still being reviewed (Air Force has the lead Executive Agent role and is still reviewing requirement, latest estimate $150M to be divided among the Services.

Defense Messaging System to field DMS 3.0 capability on schedule with other DOD services and agencies and to achieve the closure of AUTODIN.

Implementation of NMC) by FY 03/04 is dependent upon adequate quantity of crypto being funded as GFE.

Naval Mission Planning System - reduce the risk in the implemeination of the Joint Mission Planning Combat Version 1 system.

Increased scope of work and associated shedule change to complete software and risk reduction testing.

Fund EAC growth to allow deployment of organic MCM systems with like battlegroup in FY 2005.

Funding required to deliver mission ready ship. Current response to CVN89 RCOH RFP from the shipbuilder indicates an increase in schedule duration of 3 months. Not funding will Iresult in redelivering a non-mission ready ship at completion of RCOH.

Procures 8 FLIRSAHellfire Kits for H-808/H aircraft. Procurement marries kits to Armed Helicopter capable airframes. All HH-80H "A" idt installations are complete. The remaining SH-608 "A" kit installations will be complete in FY01. All kits for "B" and "H" models will be used for the SH-80R. A total of 125 kits will be procured. POM 02 funding casses at 90 kits total which is short of the requirement for all B, H and ultimately R versions to be Armed Halo ¡capable

increases T-45C funding to procure 2 additional acft for a total of 8 aircraft in FY02, 8 AC/y required to meet the inventory objective of 234 aircraft and service life of FY 2035.

Funds live fire training ordnance in support of Kosovo lessons leamed and IOTC requirements. FY02 includes funding to convert 7,500 500# Inert bombs to 1000# inert bombs and $4.5M to cover PES and ILS program office expenses.

No aircraft currently funded in FY02. Request is for 3 C-40 aircraft to replace aging C-9. Total requirement is 29. 8 aircraft contracted to date. Request includes $7.2M for spares.

Funds deployable E-6 TACAMO Regeneration Assurance Teams (TRAT) (including communications & vehicle replacement). TRATs sustain the TACAMO mission after wartime dispersal. Shortfalls are unfunded in FY02.

Ensures complete inventory of band 9/10 digital transmitters to enable retirement of 266 Band 9 analog tanamittors. Procures fast 53 units prior to production line shutdown.

Funding allows for IDECM/RFCM installation in each production E/F in FY-02. Preventa need to cannibalize or cross-deck systems to meet training and deployed requirements

Lack of funding will require parking of three flight test aircraft. Current funding profile will delay deployment of MIDS, AIM-9X and GBU-24 on F/A-18E/F. Reduces F/A-18E/F engineering and technical support in support of avionics and other upgrades by 8%. Procures an additional four AIP kits in FY-02 (to achieve the total economic order quantity of eight. Procurement funding required to maintain constant inventory at current level of 258K. $90M/year required to replace C-2 level expenditures, while current funding is 57.7M for sonobuoy production (77Ksonobuoys).

Increase procurement of JDAM and LGBs to max production rate.

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