7/30/2019 A 533401

1/105

JANUARY1990

9&b233

DONOTDESTROY 30DAYLOAN RETURNTO AFSAA/SAMI1777NORTHKENTSTREET,7FLOORIROSSLYNVA22209 (703)588-6940

/p .Mm LegacyNumber:9000233

DickCheney SecretaryofDefense

7/30/2019 A 533401

2/105

Thennualefenseeportulfillsheequire-mentsfection1.1(c)nde)f itle0fhe Unitedtates odendection05fheepart-mentfDefense eorganization ctof98 6(PublicLa w99-433) .

Th e epartmentofDefensespent47,500nax- payers'esourcesoproducethiseport,scompared to169,300as tear.hi sos teductionf72er -centcanbeattributed totai loringthereportdirectlyto the statutoryrequirements,usinglessexpensivegraph-icsndroductionechniques,ndliminatingnnec-essaryo-chargedistribution.

7/30/2019 A 533401

3/105

DEFENSETECHNICALINFORMATIONCENTERDTIChasdeterminedon \\ 9 3o|0thatthisTechnicalDocumenthasthe Distr ibutionStatementcheckedbelow.hecurrentdistributionfo rthisdocumentcanbefoundintheDTICTechnica lReportDatabase.0ISTRIBUTIONSTATEMENTA.pprovedfo rpublicrelease;distributionisunlimited. COPYRIGHTED;U.S.GovernmentorFedera lRightsLicense.Allotherrightsandusesexceptthosepermit tedbycopyr ightlaw arereservedbyth ecopyr ightowner.

ISTRIBUTIONSTATEMENTB.istributionauthor izedtoU.S.Governmentagenciesonly(fillinreason)(dateofdetermination).Otherrequestsfo rthisdocumentshallbereferredto( insertcontrollingDoDoffice)ISTRIBUTIONSTATEMENTC.istributionauthor izedtoU.S.GovernmentAgenciesandtheircontractors(fillinreason)(dateofdeterminat ion).Otherrequestsfo rthisdocumentshallbereferredto(insertcontrollingDoDoffice)ISTRIBUTIONSTATEMENTD.istributionauthor izedto theDepar tmentofDefenseandU.S.DoDcontractorsonly(fillinreason)(dateofdeterminat ion).Otherrequestsshallbereferredto( insertcontrollingDoDoffice).ISTRIBUTIONSTATEMENTE.istributionauthor izedtoDoDComponentsonly (fillinreason)(dateofdeterminat ion).Otherrequestsshallbereferredto ( insertcontrollingDoDoffice).ISTRIBUTIONSTATEMENTF.urtherdisseminat iononlyasdirectedby(inserting controllingDoDoff ice)(dateofdetermination)orhigherDoDauthority.DistributionStatementFisalsousedwhenadocumentdoesnot containadistributionstatementand no distributionstatementca nbedetermined.ISTRIBUTIONSTATEMENTX.istributionauthor izedtoU.S.GovernmentAgenciesandprivateindividualsorenterpriseseligible toobtainexport-controlled technicaldatainaccordancewithDoDD5230.25;(dateofdeterminat ion).DoD ControllingOfficeis( insertcontrollingDoDoffice).

7/30/2019 A 533401

4/105

SAM 9000233ReportoftheSecretary ofDefensetothePresidentand theCongress

January1990

Forsalebyth eSuperintendentofDocuments U.S.GovernmentPrintingOfficeWashington,D.C.20402

7/30/2019 A 533401

5/105

TOTHEPRESIDENTANDTHECONGRESSOFTHEUNITEDSTATES Thisannualeportsbeingpublishednhemidstofhistoricandpromising

transformationsnheglobalsecurityenvironment.hemplicationsarebeingel teverywhere,butnowheremorehannheSovietUnionandEasternEurope.

Forfourdecades,heprimaryconcernoftheNorthAtlanticTreatyOrganization(NATO)hasbeenodeteraSoviet-ledattackonWesternEurope. Now,insteadofannvasionoftroopsmovingromEastoWest,hedeasandinstitutionsoffreedomaremovingromheWestoheEast.

Theeventsof1989havereducedhethreatofasuddenSovietattacknEurope;heyclearlycallforaeviewofU.S.defensepolicyprioritiesnhe 990s.However,aswe respondtothesepositivedevelopments,wehavearesponsibilitynottogetaheadofevents.Muchremainsunsettled,theSovietUnionremainsanuclearsuperpower,andU.S.interestsoverthecomingdecadeswillfaceagrowingnumberofpotentiallyseriousthreatsfromothersources.nshort,heopportunitiesaregreat,butoareth euncertaintiesandisks.Wecanespondtoheopportunities,dealwithheuncertainties,andcontrolherisksif wefirstememberhowwegotothispointinhistory.SinceWorldWarII,heUnited

Stateshasbeenhemajorleaderinheworldurgingth epeacefulevolutionoffreedom,democracy,andeconomicwell-being.WehavebeenableoplayhatolebecausebipartisanU.S.consensushassupportedanalliancestrategyofforwarddefense,basedonforwarddeployment,lexibleesponse,andadequatestrategicnuclearandconventionaldeterrents.Wehavebegunnowtoplanhowtoattainthesamebasicstrategicobjectiveswithasomewhatsmallerdefensebudget.However,anyreductionsmustbemanagedwithgreatcare.Evenif theSovietthreatrecedespermanently andithascertainlynotye tdoneso-Americanpowerwillstillbe requiredtomeetothercontingenciesandobligationsworldwide.Wehaveecentlyee n graphicexample.heuseofthemilitarynPanamanDecember989was demonstrationofhow ffective well-trained,professionallyled,adequatelyequipped,andappropriatelyappliedmilitaryforcecanbe .took

amajornvestmentodevelophecapabilitieshatmadeOperationJustCausesuccess.uchcapabilitieswillbecomeve nmorecriticalnhefuture.Incomingdecades,wemustbepreparedforhepossibleemergenceofnew

powers,orpotentialThirdWorldonflicts,andforheexpansionofthreatsfromnsurgencies,errorism,andnarcoticsrafficking.Wealsoac encreasingthreatsromchemical,biological,andnuclearweaponsandmissileproliferation.A llofthesechangesarepossible,someareveryikely,andanyofthemwouldincreasehecomplexityofdefense.Wemustprepareorhesefutureisks,withoutlosing ightofeitherheopportunitiesorhreatsofthepresent.

Therefore, 990shouldbeayearinwhichweplancarefullyforaullangeofrealisticcontingencies.Weshouldespondpositively,whereappropriate,butweshouldnotmovesoashlyhatweshutoffoptionshatoughtobepreserved.Thisannualeportsastatementofwherewenowstandandabroadoverviewoftheneedsweforesee.Thefiscalyear(FY)991budgetwilloutlineth eDepartment'sneedsinwhatmaybeth efirstyearin th enext tageofU.S.militaryhistory.Meanwhile,wearebeginningtoworkonhenew defenseprogramforFY 992-97,whichwillcarryuswellintothatnew eraofopportunity.Itsmportant,however,notonitiatepremature992-97budgetcutsn1991.heresanextraordinarydegreeoffluxnhenternationalenvironment.RemarkablechangeshaveransformedEasternEurope,butmuchemainsobe

7/30/2019 A 533401

6/105

donebeforedemocraticnstitutionscanakeirmhold.Furthermore,wemaytillse eheeemergenceofsomeoftheegion'shistoricsourcesofturbulence.Moreover,althoughweareoptimisticabouthenegotiationsoverConventionalArmedForcesnEuropeCFE)andheStrategicArmsReductionTalksSTART),

wemustememberhathosenegotiationsaretillunderway.ve nunderhetimetablePresidentBushgaveGeneralSecretaryGorbachevnDecember,hereatieswillnotbeeadyforatificationuntilhenextiscalyearhasbegun.heFY991budgethereforemustavoidunilateralcutshatwouldundercutalliedbargainingleverageorcreateunduepressuresforotherprematureeductions.

Duringthesix-yearprogramforFY 992-97wewillcontinueourdefenseadjustmentsandmakeealbudgeteductionsfseveralkeyassumptionsholdrue:irst,hathe positivedevelopmentswearenowseeingcontinue;second,hatweconcludesatisfactoryCFEandSTARTagreements;and,hird,hatnothinghappenstorequireanunforeseen,significantcommitmentofU.S.orce.ftheseassumptionsholdup,weplanocutdefensecostsandoestructurethemilitaryinwayshatwillcontinue,nanuncertainworld,omaintaindeterrenceandkeeprisksataow level.Iftheassumptionsdonotholdup,wewillhaveoeassessourdefenseplanningguidelinesagain.However,followinghroughonuch eassessmentwouldbepossiblef,andonlyf,Congressdoesnotslashhedefensebudgetprematurelyorunwiselyn991 .

Thebasicstructureofthisannualeportisintendedasapreparationfortheprogram-by-programmaterialstofollowinotherdocuments.Theeportbeginswith statementaboutnationalsecurityconcerns,objectives,andpolicypriorities.tthenmovesthroughdiscussionofdefenseresourcestoanexaminationofspecificdefensecomponents.Ratherthansummarizeheentireeport, hallnsteadakehisopportunityoeviewaew ofthebroadhemesthatwillguideheDepartment'splanningincomingmonths:

(1 )DeclarationsofnewSovietpolicyntentionsareonlybeginningobeimplementedhroughchangesnSovietforcestructure.Theeductionswehaveee nofar,hepromiseofadditionalchanges,andhepoliticaldevelopmentsnEasternEuropegiveushopehatfutureeductionsnourconventionalorceswillbepossible.However,anyplansforuchreductionsmustbemadenullconsultationwithourallies,heymustbe basedonealandhard-to-reversechangesnSovietorces,andheymustbeufficientlyeversibleoallowforhenherentvolatilityofthepoliticalsituationnowunfoldinginEasternEuropeandheSovietUnion.(2 )WemustexpectthattheSovietswillcontinuetomodernizetheirforcesandmaintainaggressiveresearchanddevelopmentprograms.Therefore,aswethinkaboutreductions,wemustpayattentiontothoseelementsofourdefenseprogramthatwouldbehardesttorestoreifSovietintentionsshouldchangethequalityofourofficersandenlistedpersonnel,ourresearchandweaponsdevelopment

programs,ourindustrialbase,andthefundamentalstructureofouralliances.(3 )DeterrenceofnuclearattackemainshecornerstoneofU.S.national

security.RegardlessofimprovedU.S.-Sovietelationsandpotentialarmscontrolagreements,heSovietabilitytonitiatestrategicwarfareagainstheUnitedStateswillpersist,andacrisisorpoliticalchangeintheSovietUnioncouldoccurfasterthanwecouldebuildourstrategicorces.nfact,heSovietUnionha sbeenpursuingamajorstrategicmodernizationprogram.WethereforemustcontinuewithhemodernizationofU.S.strategicorces.

7/30/2019 A 533401

7/105

(4 )WemustvigorouslypursueheStrategicDefenseInitiative(SDI),bothbecauseofSovietstrategiccapabilitiesandbecauseofthespreadofballisticmissileechnologyoothercountries.fanything,thenewenvironmentmakesSDIve nmoremportant.(5 )ecauseheUnitedStateshaspermanentnterestsnEurope,wemustcontinueowork loselywithNATO,ve n sweee ka

moreequitablesharingofthedefenseburden.(6 )WemustalsoecognizehechallengesbeyondEuropehatmay

placesignificantdemandsonourdefensecapabilities.hechangingrequirementsandnewolesandmissionsassumedbyU.S .orceswillrequirestrategieshatelymoreheavilyonmobile,highlyeady,well-equippedorcesandolidpower-projectioncapabilities.(7 )pecialoperationscapabilitiesalsowillbecomencreasingly

important,andow-intensityconflictwillemain, sthasince945,themostikelyormofviolencehreateningU.S .nterests.(8 )ncomingyears,ourabilitytodevelop,exploit,andprotectadvanced

technologiessikelyobeevenmorecrucialhanthasbeennhepast.(9 )WeemaincommittedomprovingheDepartment'selations

withhedefensendustry.ontinuinghesometimesadversarialrelationshipsofthepresentcanonlyharmheechnologybaseandourmilitaryeadinessnheuture.(10)FullymplementingheecommendationsoftheJuly 989Defense

ManagementReportwillbeessentialorheDepartmentoperformatpeak fficiency.omeoftheproposedeformscanbemplementedinternally;therswillequirecongressionalaction.(11)Finally,ourhighestcommitmentmustbetocontinuetoattract,rain,

andetainalentedanddedicatedpeopleoervenhearmedorces. Undergirdingthesepecificconclusionssamoregeneralprinciple:heimportanceofmaintainingWesternprudenceandstabilitynheac eofchangeelsewhere.Formorethan40years,heUnitedStatesandtsallieshavepursuedaconsistentstrategyhathasserveduswell.Ourglobalpresenceandsupportforfreedomhaveencouragedhegrowthofdemocracyandtheflourishingofmarketeconomiesinal lpartsoftheworld,notjustin

Europe.FromhePhilippinesandSouthKoreaoPanama,Chile,Brazil,ElSalvador,andelsewhere,bravepeoplehavebeenstrugglingtonurtureheinstitutionsofdemocracy.ThestrengthoftheWesternalliancehasmaintainedhepeacewhilehelawsoftheSovietystemhavebecomevisibleoall.saesult,henternationalenvironmentseemsobemovingoward saferfuture.Therefore,weshouldandwilllook

carefullyatourplanningpriorities.Fortoday,however,uncertaintyabounds.Nowis notheim eoabandonhefundamentalapproachhathasakenushi sar .

l^U.

7/30/2019 A 533401

8/105

TableofContents

vn

PART: PrefacePageix

PARTI: Defenseolicy NationalSecurityConcernsandDefensePolicyPrioritiesCollectiveSecurityPARTI I: Defense ResourcesBudgetStrengtheningDefenseManagement 4Personnel 8IndustrialBase 5 Environment 7

PARTV: DefenseomponentsDefenseComponentsIntroduction 9 NuclearForcesandStrategicDefense 0 LandForces 6NavalForces 9 TacticalAirForces 1SpaceForces 5 StrategicMobility 9 SpecialOperationsForces 1CounternarcoticsProgram 4ResearchandDevelopment 7

PART V: Statutory ReportsReportoftheSecretaryofth eArmy 9ReportoftheSecretaryoftheNavy 2 ReportoftheSecretaryoftheAirForce 4 ReportoftheChairmanoftheReserveForcesPolicyBoard6 Appendices A . BudgetTables 9 B.ersonnelTables 3 C.orceTables 5D .oldwater-NicholsActImplementationReport9

7/30/2019 A 533401

9/105

PartPreface

7/30/2019 A 533401

10/105

I X

PREFACE ThisannualeportdescribesheapproachheDepartmentofDefenseDoD)saking

tomeethemanychallengeso .S .ecuritynterests.lthoughhechangesbegunnth eSovietUnionandEasternEuropearewelcome,SovietarmedorcesemainhemostseriousmilitaryhreatoheUnitedStatesandts llies.Developments lsewherenhe worldalsoposecontinuingchallengesooursecurity.Instabilityresultingfromeconomicpressureshroughoutheworld,violencewithinheThirdWorld,weaponsproliferation,insurgencies,terrorism,anddrugtraffickingal lthreatenU.S.nterests.

Thiseraoftremendousuncertaintydemandsacarefullydesigned,lexiblestrategy.TheUnitedStatesmustbedynamicandimaginativeinrespondingtoopportunities,butitmustalsobecautious.tmustmaintaindefensesthatarecapableofdeterringand,fnecessary,respondingtoanincreasingrangeofpotentialthreatstoit ssecurity.

TheAdministration'sdefensebudgetprioritiesemainclear.operformtsnationalsecuritymissionandexecuteeffectivelythenationalstrategy,includingthepoliciesofflexible responseandforwarddefense,heDepartmentofDefenseneeds:-High-qualitypeople;-Readyandsustainableorces;-Modernstrategicforces;and-fficientacquisitionofweaponsandequipment.Obtainingheseessentialelementssacomplexanddifficultaskn iscallyconstrainedenvironment.

TheframersoftheConstitutiongaveCongressthepowertoappropriatefundstoaisearmiesandprovideanavy,andgavethePresidentthepowertocommandthoseforces.Thisconstitutionalframework allsor losecooperationbetweenheexecutiveandegislativebranchesofgovernmenttoensureastrongnationaldefense.heDepartmentofDefensewillespondothatcall.

7/30/2019 A 533401

11/105

PartI Defenseolicy

7/30/2019 A 533401

12/105

PartIefenseolicy NATIONALECURITYCONCERNSANDDEFENSEOLICYPRIORITIES

NATIONALSECURITYCONCERNSANDDEFENSEPOLICYPRIORITIESTheUnitedStatesisenteringthedecadeofthe1990sacingbothgreatopportunitiesan dgreatuncertaintiesinheinternationalsecurityenviron-

ment..S.-SovietndEast-Westelationshaveimprovedmarkedlyincehearly980s.e- centhangesnasternEuropemayeducehe divisionfEuropendoldheong-termo- tentialorbringingreedomand decentqualityoflifeomillions.onditions regoodorne -gotiatingignificanteductionsnSovietmilitaryforcesndeveloping urablerameworkor peacendooperation.evertheless,heSovietUnion'smilitarypoweremainsormidable.e- spitenitialSovietorceeductions,nggregate militarycapabilitybuiltupduring20yearsofre-lentlessgrowthinSovietdefensespendingcontin-uesopose potentialhreatohenterestsoftheUnitedStatesanditsallies.Sovietpolicydec-larationseflecthangesnSovietntentions,bu ttheyareonlyjustbeginningtobeimplementedan daretillelativelyasyoeverse.n llvents,theSovietswillcontinuetohaveastrongmilitarycapability.Theseeryignificantealitiesffernprece-dentedpportunitiesutlsootentialangers.Ourdefensepolicymustespondoboth.mer-icantrengthaseen ajoractorne- terringggression.eustirst,herefore,continueomaintain ompellingonventionalan ducleardeterrentposture,madepossiblenlargepartbyatrongallianceystemandglobalmilitaryresence.eustelysuchspossiblenurworeatesttrengths:ell-motivated,igh-qualitypeoplendechnologicalinnovation.naddition,preciselybecausedeclar-ativehangesnolicyreasyoeverse,emustursueefenseolicieshatncouragee- formnheovietnionndasternurope,makingeversaloreostlyndhereforeess

likely.ontrolofconventionalarmsan dheni -tiationofadialogueonmilitarydoctrinearevitalelementsnourapproach.inally,wemustavetaxpayers'esourceshere ecreasinghreatmakesdoingsopossible.WhilecooperativeaspectsoftheU.S.elation- shipwiththeSovietUnionaregrowinginthispe-riodofchangean duncertainty,heUnitedStates mustbepreparedoemainnong-termompe-titionwithheSovietUnion. TheUnitedStates

mustensurethatitsenduringstrengthsarealignedagainstnduringSovietweaknesses.occom-plishhisoal,henitedtatesmustdentifykeytechnologies,weaponsystems,andoperationalconceptsthataremostlikelyomaximizehede-terrenteffectofincreasinglyconstrainedesourcestheUnitedStatesdevotestothenationaldefense.Thisapproach,knownsCompetitiveStrategies,maximizeshe ffectivenessofU.S.defensesan dprovides edgegainstnyotentialuturefailureofheooperativespectsofU.S.-Soviet relations. Theationmusterudentndautiousnadjustingheizeandcompositionofitsmilitary

forces.brupt,poorlyplannedutswouldpose greatdangerstoourlong-termsecurity.Aninad-equatedefensestructurecannotberebuiltquicklyshould evitalizedhreatrequireit.Adecadeor moresneededoresearch,design,andproduc- tionoftoday'ssophisticatedweaponsystems,andadecademaynotbeufficientoecouphes- sentialleadershipandwarfightingknowledgethatonlyexperiencedevelops.Duetohegreatuncer-taintiesofthepresent,henatureoftomorrow'sthreatcannotbepredictedwith highdegreeofconfidence.TheUnitedStateswillbepreparedomeetnewhallengesonlyfitmaintains ffectiveandflexibledefensecapabilitiestoday. Eventsnheollowingmportantareaseflectsweepingchangesnheworldhatportendvengreatersecuritychallengesinthecomingyears:

Eventsnasternurope.heunprecedented andevolutionaryeventsinEasternEuropeareaclearvictoryfo rWesternpostwarpolicies.Noonecanpredictheultimateresolutionoftheseevents,however,makingtheprospectiveformu-lationofaneffectivepolicydifficult.-EventsnWesternurope.sheconomiesofWesternEuropemovetowardintegrationby1992,conomicelationsetweenhenitedStatesan dheEuropeanCommunitywillgrowmoreomplex.hepotentialmpactfco-nomicintegrationondefenseproduction,coop-erativegreements,ndvariousburdensharing issueswillrequirecloseexamination.-volvingituationnhina.heChinesegov-ernment'siolentrackdownnroteststBeijing's Tiananmen Square an d elsewhere

7/30/2019 A 533401

13/105

PartIIDefense olicy NATIONALECURITYCONCERNS NDDEFENSEOLICYRIORIT IES

throughoutChinacalledintodoubtthechancesforreformnChina.-ncreasingconomicnterdependenceithhe NationsofEastAsiaan dthePacific.ThegrowthinradebetweenheUnitedStatesandhena-tionsofEastAsiaandthePacifichasfocusedin -creasedattentionondefenseprioritiesandU.S.interestsnheegion.ncreasingconomiccompetitionandconcernoverU.S.accesstomil-itaryfacilitieswillrequirespecialeffortstomain-taininternationalcooperation.-TurbulencenheMiddleastndouthwestAsia.Long-standingeconomicandpoliticalten-sionsintheMiddleEastandSouthAsiaweakenlocalregimes,fuelregionalarmsraces,andpose thehreatfarge-scalermedonflict.he MiddleEast'schronicinstability couldalsojeop-ardizeassuredaccesstotheregion'soil,whichis criticaltotheeconomicstabilityoftheindustrialworld.roliferationfWeaponsnhehirdWorld .High-technologyweaponsofal ltypesareavail-ablenncreasinglyalarmingquantitiesnheinternationalarketplace.roliferationfchemical,iological,nduclearweapons,s well smodernong-rangedeliveryystems,ntheThirdWorldconstitutes gravehreatoU.S.nterests.-Terrorism.Americansarevulnerableoerror-is tactivitiesaroundheglobe,andhenumberofincidentsnvolvingAmericansmayncrease.ThiswillenhanceheikelihoodofU.S.coun-terterroristactionsrequiringDoDsupport.NarcoticsTrafficking.helowofillegaldrugsintoheUnitedtatesndheontinuede- mandforsuchdrugsinoursocietyhavecreatedanunprecedentedandperplexingnationalsecu-ritythreatofmajorproportions.U.S.nationalsecurityobjectivesprovidethees -

sential,enduringelementsuponwhichourdefensestrategyandpolicyarestructured.Oneof therea-sonsforheuccessofAmerica'spostwardefensestrategyhasbeenit sconsistency.Basedonourfun-damentalnationalsecuritygoalofpreservingheUnitedStatesasareenation,ourbasicnationalsecurityobjectivesincludethefollowing:-ToetermilitaryttackgainstheUnited

States,U.S.allies,andotherU.S.interests;andtodefeatsuchattackshoulddeterrencefail.Toeduce.S .eliancenuclearetalia-tionhroughctiveesearchndevelopmentofstrategicefenseechnologies, throughhe

negotiationofequitableandverifiablearmsre -ductiongreements,ndhroughhemainte-nanceofstrongconventionalforces.-Toencouragetheestablishmentandstrengthen-in goffreedomanddemocracyaroundtheglobe.

-ToencourageandassistU.S.alliesandfriendsindefendingthemselvesagainstinvasion,armedinsurgencies,errorism,orcoercion.

-To encouragethepoliticalandeconomic reformstaking placeintheSovietUnionandEasternEu-rope,andofosterelatedadjustmentsinheirmilitarypostures.ToprotectfreecommerceandensureU.S.access toworldmarkets,naturalresources,theoceans,andspace.

-Topreventorslowtheproliferationofnuclear,chemical,andbiologicalweapons,andhemis-silesandmissiletechnologycapableofdeliveringtheseweapons.-ohaltthetransferofmilitarilysignificanttech-nologyandesourcesoheSovietUnionandtoothercountriesorentitiesthatmayusetheminwaysinimicaloU.S.nterests.-TostemtheflowofillegaldrugsintotheUnitedStates.Severalriticalefenseolicyrioritieslow

fromtheseobjectives:

CredibleDeterrentForces.henitedtatesdeterswarbymakingitclearinadvancetopoten-tialaggressorshathecostsofaggressionwouldfaroutweighanypossiblegainstheymighthopetoachieve.Accordingly:ToeterSovietuclearattacknheUnitedStatesandtsallies,andohelpdeterconven-

tionalattack,heUnitedStatesmaintainsadi -versemix ofsurvivableandcapablestrategicandnonstrategicnuclearoffensiveforcesthatholdatriskhoseassetsmostvaluedbySovieteadersandprovide angeofoptionsnesponseoattack.Atheam eime,heUnitedtatesctivelypursuesesearchndevelopmentf ffective strategicdefenses,withheobjectiveofdevel-opingoptionsforstrengtheningdeterrenceandstabilityhroughhedeploymentofastrategicdefensesystem.Pendingan ffectivebanonchemicalweapons,thenitedtatesmaintainsrediblehemi-ca ldefensiveandetaliatorycapabilities san

7/30/2019 A 533401

14/105

PartIefenseolicyNATIONALSECURITYCONCERNSANDDEFENSEOLICYPRIORITIES

effectivedeterrentagainstanattackwithchemi-ca lweapons.TheUnitedStatesmaintainsconventionalforcesthataresized,equipped,andpositionedtofighteffectively,ncombinationwithheorcesofit sallies,theointfanttack.heUnitedStates'aimistobe clearlyabletodefeatsuchanattackquicklyanddecisively,preferablywithoutresorttonuclearweaponsandwithoutextendingth econflicttoothertheaters.AllianceStructure.hroughharedaluesndcommoninterests,heUnitedStatesandit sEuro-

peanallieshaveforgedasecuritypartnershipthathaspreservedpeaceanddemocracyinWesternEu-ropeformorehan40yearsandenhancedglobalstability.hepartnershiphasworkedbecausethasprovidedadeterrenttoaggression,contributedtoheforwarddefenseofourcommonnterests,andsupportedtheefficientallocationofmanpowerandmateriel.imilarly,U.S.allianceswithAsianandLatinAmericancountrieshaveprotectedre enationsthroughmutualdefense.

ArmsControl .henitedtatesngagesnarmsontrolsartf oordinatedffortoenhancetssecurity--not sanenduntotself.Throughrmseductiongreements,heUnitedStatesseekstoreducemilitarythreatstoU.S.andalliednterests,njectreaterredictabilityntomilitaryelationships,andchannelorceposturesinmoretabilizingirections.uchgreementsmustplaceapremiumonthedetectionofmilitarilysignificantnoncomplianceandpreservethelatitudetoconductaneffectivepolitical,economic,ormil-itaryesponse.egotiationscurrentlyunderwayincludeth eConventionalArmedForcesinEurope(CFE)alks,heStrategicArmsReductionTalks(START),DefenseandSpaceTalks(DST),nucleartestingalksNTT),hemicalweaponsegotia-tions,andnegotiationsonconfidenceandsecurity-buildingmeasures(CSBMs).

Verificationsanessentialelementofthearmscontrolrocess.n988heOn-SitenspectionAgencywas establishedasaseparateDoDagencytocarryut.S .nspectionctivitiesnderhetermsoftheU.S.-Sovietntermediate-RangeNu-clearForcesINF)Treaty.heagencyalsocoor-dinatesheequivalentSovietactivitiesatU.S.a- cilitiesinth eUnitedStatesandinWesternEurope.

FightAgainstI l legalDrugs.heetectionndcounteringoftheproduction,rafficking,anduseofillegaldrugsarehigh-prioritynationalsecuritymissionsoftheDefenseDepartment.hesupplyofillicitdrugsoheUnitedStatesromabroad,theassociatedviolenceandnternationalnstabil-ity,andtheuseofillegaldrugswithinthiscountrypose directhreatooursecurity.yaw ,heDepartmentofDefenseervesasheeadagencywithinheederalovernmentordetectingndmonitoringtheairborneandmaritimetransitofil -legaldrugstotheUnitedStates.BydirectionoftheSecretaryofDefense,heDepartmentssubstan-tiallyengagednhenationalightagainstllegaldrugs.TechnologySecurity.oviet-Easturopeant-

temptstogainaccesstoWestern-controlledmilitar-ilycriticaltechnologiescontinueunabated.NATOreaffirmedatit sMay 989summitthattechnologysecurityemainscentraloWesternsecurityaswenegotiatearmseductionswithheSovietUnionandEasternEuropeancountries.

Technologyecurityssues,owever,reotlimitedsolelytotheSovietUnionandEasternEu-rope.hirdWorldnationsnpursuitofnuclear,chemical,orbiologicalweaponstechnologyormis-sileechnologyalsopresentaseriouschallengeotheUnitedtatesndmustemain ocusfattention.Low-IntensityConflict.ow-intensityonflictcontinuesobehemostikelyormofviolence

involvingU.S.nterests.nadditiontoviolencere -sultingfromnsurgencies,egionalhostilities,andterrorism, .S .orcesacepotentialhreatsromdrugraffickingndheroliferationfchemi-cal/biologicalweapons.emustprepareanc- tiveandimelydefenseagainstsuchviolence,onethatpresents credibledeterrentandemainsca-pableofusingpowerwhennecessary.TheDepart-mentmustalsoaddresshenderlyingcausesofinstabilitybyassistingnhenation-buildingpro-cessthrougheconomic,security,andhumanitarianassistance,andcivicactionin supportofU.S.for-eignpolicyobjectives.ImprovedntelligenceSupport.nncertain,

rapidlyhangingimes,ffectiventelligencea-pabilitiesecomeve nmorecriticalossessingsignificantevents.Dynamicpolicyhat ffectively

7/30/2019 A 533401

15/105

PartIIDefensePolicy NATIONALECURITYCONCERNSANDDEFENSEOLICYRIORIT IES

respondstotheseeventsisdependentuponacom-prehensive,current,andophisticatedntelligencedataase.ccuratendnsightfulnalysesfcapabilitiesan dntentionsofanver-broadeningrangeofpotentialdversaries ressentialoneffectiveorce-structuringprocess.s esult,highpriorityhasbeenplacedon strengtheningU.S.intelligencecollectionandproductioncapabilities. ResearchandDevelopment(R&D). Continuedinvestmentnesearchan ddevelopmentemains

an importantpolicypriority.R&Dprogramshavecontributedtodeterrenceoverthepastdecade,an dcontinuednvestmentodaysvitalfwe reoachieveasecurefuture.Thesepolicypriorities,hichepresentbutsamplingofmattersofconcerntotheDepartment,respondo hangingworldnvironment.Whilemovingtocapitalizeonthesechanges,heUnitedStatesmustmaintaintsmilitarycapabilitytoe- sponduccessfullyonyhreatotsationalsecurity.

7/30/2019 A 533401

16/105

Part!efenseolicyCOLLECTIVEECURITY

COLLECTIVESECURITY Oneofthefirstprinciplesofoursecuritystrategyisomaintainvigorousallianceelationshipshat

promoteforwarddefenseoftheUnitedStatesandcollectivelymaintainpeacewithreedomhroughstrength.

TheUnitedStatescurrentlyispartytosevenfor- malalliances:Theorthtlanticreatyrganization

(NATO)alliance;Theustralia-Newealand-Unitedtates

(ANZUS)alliance(althoughU.S.obligationstoNewZealandaresuspendedas esultofNewZealand'sdecisiontobanU.S.nuclear-poweredandnuclear-capableshipsfromit sports);-TheTreatyofMutualCooperationandSecuritybetweentheUnitedStatesandJapan;

-TheMutualDefenseTreatybetweentheUnitedStatesandtheRepublicof Korea;

-heMutualDefenseTreatybetweentheUnitedStatesandtheRepublicofthePhilippines;

-TheoutheastsiaCollectiveDefenseTreaty(whichemainsnffectwithAustralia,ew Zealand,he Philippines,Thailand,France,andth eUnitedKingdom);andTheInter-AmericanTreatyofReciprocalAssis-tance(theRioTreaty).Indditionoheselliances,heUnitedtatesmaintainsdefenseagreementsandes sformalar-rangementswithanumberofothernations.

Thealliancestructureha ssucceededbecausetheUnitedStatesandtsalliessharecommonpoliti-cal,economic,andsecuritynterests.heUnitedStatesmustcontinueoeaffirmhealliancepoli-ciesthathavekepttandtsalliesreeandecurefor40years.Asweac enewchallenges,wemustmaintainourleadershiprole,sinceweareth eonlyfreepowercurrentlycapableofrespondingoag -gressionnglobalterms.Butinulfillingthatole,wewilldependmorethaninthepastonouralliestosharehecrucialesponsibilitiesofourmutualdefense.A sheUnitedtateseeksomaintainhe

vitalityftslliances,herereeveralmajorissueshatmusteddressedquarely.heseincludesharinghemutualesponsibilityorhe

commondefense,internationalarmamentscooper-ation,overseasbasing,andsecurityassistance.SharingheMutualDefenseurden Evensventsnfoldnapidlyhang-in gurope,theeartfAmericanoncernsaboutsharingheesponsibilityforhedefenseoffreeuropesheontinuingee domaintainNATO'sdeterrentanddefensecapabilities.ur-rently,ourEuropeanalliesexcludingFranceandSpain,whoseorcesreotntegratedntoheNATOcommandstructure)providehemajorityofth eorcesandequipmentdeployednWesternEurope.anyfour lliesmakeanmportantcontributionohecommondefensebyprovidingusbaseaccessfreeofcharge.

TheUnitedStateseeksoconcentrateonpro-vidingcapabilitiesorhich .S .orcesavecomparativeadvantageandoavoiduplicationofeffortwithandamongourallies.

Accordingly,weareurgingouralliesto :-Mee torcegoals,especiallythosehighlightednth eConventionalDefenseInitiative(CDI);-mproveustainabilitythats,henumberof

daysofsupplyofwarreservestocks,munitions,petroleumproducts,andotherbasicsupplies);-mproveheeadinessndfficiencyforcesallocatedoNATO;and-upportlong-termdefenseplanningbasedonra -tionalizationanddivisionof labor,reserves,andmobilizationcapabilitiesandcommonandjointfundingopportunities.OurAsianalliesalsocontributesubstantiallytothecommondefense.apanprovidesheUnited

StateswithbasesatnocosttotheU.S.atthemostcriticalgeostrategicocationnNortheastAsia.nrecentyears,thasncreasedtsshareofthemu-tualdefenseresponsibility,andnowprovidesabout40ercentfhecostfstationing.S .orcesontserritory.ecently,heapaneseovern-mentgreedoundpproximately0ercentofheotalcostfJapaneseaboremployednAmericanbasesnJapan.naddition,Japannowspendssome$30billion yearondefense,whichisoughlyquivalentohendividualrench,British,ndWestGermandefenseudgets.utJapanhouldove nmorenhereafcost

7/30/2019 A 533401

17/105

PartIDefenseolicyCOLLECTIVEECURITY

sharingandnmprovinghequalityandsustain-abilityofit scurrentorces.

The .S .lliancewithheRepublicofKoreaandhepresenceofU.S.orcesnhatcountryhavesustaineddeterrenceontheKoreanPeninsulaforalmostfourdecadesandcontinuetocontributesignificantlyoegionalpeaceandstability.o-rea'scontributionsohealliancearesubstantial;it sannualdefenseexpendituresareslightlyunder5 percentofGNP.naddition,Koreafundsaircraftdepotmaintenanceandthecostofmaintainingwarreservestocks,contributesoheatercommunica-tions,andsupportsmilitaryconstructionprojects.Duringthe21s tSecurityConsultativeMeetingbe -tweenheU.S.andSouthKoreangovernmentsin July989,othationseiteratedheircommit-mentoetainingU.S.roopsinKoreaasongas th eU.S.andKoreangovernmentsandpeoplewantthemthere.TheRepublicofKoreacurrentlycon-tributesapproximately$300millionperyearoutofit scashbudgettooffsetthecostofmaintainingU.S.orcesintheRepublic.International rmamentsCooperation

TheUnitedStatesismakingsubstantialprogressinncreasingooperativeeaponevelopmentprogramswithit sallies.By promotingstandardiza-tionandnteroperabilityofweaponry,hesepro-gramsarecriticaloalliedeffectiveness.Theyalsoreduceedundantexpenditures.heDepartmentofDefenseconsiderscooperativeopportunitiesobeanintegralpartof manyU.S.acquisitiondeci-sions,andNATOandJapanaremovingowardintegratingcooperativeprogramsntoheirarma-mentsplanningsystems. Since985,heCongressasrovidedundsspecificallyforcooperativeesearch,development,andestingffortsithNATOndon-NATOallies.nefhesenitiativesheCoopera-

tiveR&Drogramsimedtringingo- ordinationoheNATOations'therwiseep -arateprogramsfordevelopingandbuildingarms,therebymprovingNATO'sconventionalmilitarystrength.U.S.ndustryreceivesanimportantben- efitfromtherequirementtospendU.S.fundsallo-catedtotheseprojectsentirelyintheUnitedStatesonAmerican-producedgoodsandservices.Thead-vantagestotheUnitedStatesandit sallies,in addi-tiontoimprovedmilitaryeffectiveness,canbecon-siderable,includingreducedR&Dcosts,improvedaccessoechnology,ndeventualeconomiesof

massproduction.heprogramasproveduc- cessful,andourallieshave ignedmemorandumsofunderstandingcommittingthemtopayapprox-imately60percentofthecostsharesoftheasso-ciatedresearchanddevelopmentprojects.Tableprovidesdetailsontheseprojects.Overseasasing

Executingeffectivelythestrategyof forwardde -fensesanmportantpriority.oreignbases n-hancedeterrence,contributeoegionalstability,allow .S .orcesoeduceheiresponseimeinmeetinghreats,ndenableheUnitedStatestomplementtsdefensestrategyn morecost-effectivemanner.

AlthoughmanycountriesnwhichU.S.orcesarestationedhavesoughtncreasedoreignai dnexchangeforbasingrights,heUnitedStatesdoesnotviewforeignassistanceas"rent"orcompensa-tionforbaseaccess,butatherasoneelementofU.S.articipationnmutualdefenseeffortswithit sallies.Thereare,ofcourse,clearfiscallimitstowhatheUnitedStatescanprovide.fmutuallysatisfactoryarrangementscannotbeachievedwithvariouscountrieshostingU.S.forcescurrently,theUnitedStatesmustbe preparedtomakealternativearrangements.SecurityssistanceSecurityassistanceofriendlyforeigncountriesisanmportantpartofournationalsecuritypol-icy.telpsriendsndllieseterggressionordefendhemselvesagainstexternalhreatsandenhancescoalitiondefensebyprovidingheaddi-tionalesourcesneededoshoulderhecommondefenseburden.urrentU.S.ecurityassistanceprioritiesfocusonencouragingpeaceintheMiddleEast,assistingourfriendsandalliesinself-defense, contributingomutualefenserrangementsnwhichostovernmentsnurnontribute,ndaidingforeigndrug-interdictionefforts.

Thererewomajorcomponentsfourmil-itaryssistancerogram:oreignMilitaryales FinancingFMSF),hichprovidesdirectcreditsorgrantsforhepurchaseofU.S.militarygoodsandervices;ndnternationalMilitaryduca-tionndrainingIMET),hichs ow-cost,grantaidprogramthatprovidesmilitaryeducationandtrainingintheUnitedStatestoapproximately6,000oreignmilitaryersonnelachear.heIMETprogramsoneofhemostost-effective

7/30/2019 A 533401

18/105

PartIefenseolicyCOLLECTIVEECURITY

Cooperat iveProjectswithSigned Agreementsand Associated BurdensharingRatios Table1 UnitedStatesShare

(percentage)Ad aProjectSupportnvironments 43.7MultifunctionalnformationDistributionSystem 28.0NATOdentificationystem 46.5AirborneadarDemonstrationSystem 38.0AdvancedShort-Takeoff/Vertical-LandingTechnology 50.0EnhancedFighterManeuverabilityAircraft 65.5SurfacehipTorpedoefense 50.0Pos t000Tactical re aCommunications 16.7HawkMobilitynhancement 50.0BattlefieldnformationCollectionndExploitationSystem 50.0LINK-11 Improvements 12.5RPVMultimissionOptronicStabilizedPayload 50.0

TotalCostSharesforMOUsSignedto a te US: 40.0Allied: 60.0

foreignpolicyoolsoftheU.S.government.n- vestingnhemilitaryducationandrainingofmilitarypersonnelromriendlyountriesgreatlyenhancesthe capability ofthosecountriestodefendthemselves,atalowcosttotheAmericantaxpayer.Unfortunately,esourceonstraintsndon -gressional armarkingoffundshavemadetdif-ficultoashion ecurityassistanceprogramofsufficientsizean dwithproperfocustoprotectan d

advanceou rsecurityinterests.FundingforFMSF ha sdecreasedbyover26percentinceFY984,whilehepercentageofunds armarkedyhe Congressfo rafewfavoredprogramshasincreasedfrom49 percentto92percent.Consequently,FMS fundingavailableonon-earmarkedcountrieshasdeclinedbyover90percentinceFY984,hu sseverelyimitingourlexibilityoddresshee- curityeedsfnumerousriendlyovernments.Chart llustratesthesetrends.

7/30/2019 A 533401

19/105

PartIDefenseolicy8OLLECTIVEECURITYMilitaryAssistanceFundingandCongressionalEarmarksFY1982-FY1990 Chart

i/>

< /*

Mil tBilli lilfflliFY82Y83Y 84Y85Y 86Y 87Y 88Y89Y 90

( E s t )NotEarmarked OtherEarmarked EarmarkedorIsrae l&Egypt

Note:PercentagesindicatetotalofMilitaryAssistanceFundingearmarked.

7/30/2019 A 533401

20/105

7/30/2019 A 533401

21/105

PartIIefense esources BUDGET

BUDGET Preparingandexecuting defensebudgethat

supportsournationalsecuritystrategywhilepro-vidingnecessaryinvestmentsforthefutureremainscomplicatedbyheneedforiscalestraint.heUnitedStatesmustcontinueoprovidean ffec-tivedeterrent,engagetsarmedorces ffectively ineacetimenhehirdWorld,ursueech-nologicaldvanceshatmprovedefensecapabil-ities,ndmaintainheualityndeadinessfit sorces.heexecutiveandegislativebranchesofovernment,tilizingreativendoopera-tiveapproaches,canmeethechallengeofdirect-in gcarceesources ffectivelyoaddressdefenserequirements.

FourprioritiesguideddevelopmentoftheA d- ministration'sY99 1udgetequest.heseprioritiesressentialo omprehensivendcohesivedefenseprogramhatmeetsU.S.securityrequirements.-eople.heecruitmentandetentionofhigh-

qualitymilitaryndivilianersonnel,heirwell-being,ndheireadinesscontinueoeamongurighestriorities.heell-being ofouruniformedpersonnelhas direct ffectonhe qualityofourforcesandheirreadiness.TheFY991budgetprovidesanimportantpayraise.hebudgetalsoprovidesforeasonablelivingndworkingonditionsorurervicemembershroughmorale,welfare,ecreation,andfamilysupportprograms,andthroughedu-cationassistance.

-eadinessndustainabil ity.hemaintenanceofhighevelsofeadiness,upportedyade-quaterainingandoperatingempos,scriticaltoheuccessfulexecutionofournationalde -fensetrategy.urorcesmustlsoero-visionedosustainheirwarfightingcapabilityfo rhe durationofaconflict.Thecriticalcom-ponentsofreadinessarehigh-qualitypersonnel,realisticraining,modernweaponsandequip-ment,andogisticalsupport.Thebudgetmain-tainsoperatingtemposatlevelssufficienttopro-videchallengingtrainingforoperationalunitsofal lourervices.peratingempo,swell sopportunitiesforunitstodevelopcombatkillsatigh-technologyrainingacilities,mustemaintainedatevelsnecessaryosustaineadi-ness. Oursustainabilityrogramsensurehat

U.S .orceswillhavehestayingpoweroighteffectivelyinaprolongedconflict.fficient cquisition.hepower,mobility,and

qualitativedg efouruclear,onventional,andnconventionalorcesdependn fficientacquisitionofweaponsystemsunderstreamlinedmanagement.Thebudgetcontinuesogiveem-phasisoelectedmultiyearrocurementndproductionprogramsateconomicalrates.tter-minatesow-priorityeffortshatrenoongerneededoraffordable.

-trategicNuclearModernizat ion .hecapabil-ity,survivability,andenduranceofourstrate-gi cnuclearforcesandtheirassociatedcommandandcontrolstructuremustbeassured.TheFY1991equestprovidesforcontinuedmoderniza-tionofourstrategicnuclearorceswithinis -ca lconstraints.Itcontinuesinvestmentinmod-ernizedmobileintercontinentalballisticmissiles,th eTridentD -5missile,theB-2Stealthbomber,andtheMilstarsatellitecommunicationssystem.Additionally,heAdministrationscommittedtoactiveesearchanddevelopmentofstrategicdefensesasanntegralpartofmodernization.Thesefourprioritiesarereflectedthroughoutthe

FY99 1udgetproposal.heyprovidehevitalguidelinesformakingoughdecisionsboutde -fenseprograms.Componentsofth eY991Defenseudget

TheAdministration'sefenseudgetorY1991roposesbudgetauthorityof$295.1illion(seeTable2) .AppendixAsummarizesthebudgetrequestbyappropriationitleandcomponent.

ThedistributionofFY991udgetauthoritybymajorappropriationitlesshownnChart .Militarypersonnelincludingpaymentsoervicemembers,heaccruedetirementcostofthecur-rentmilitaryforce,andthecostofsupportingpro-grams)andperationsandmaintenanceinclud-in gallocationsforcivilianpersonnel,maintenanceandrepairofequipment,utilities,medicalservices,training,uel,andspareparts)constituteabout57 percentfDoDudgetuthority.heemain-derofthebudgetprovidesfundsforesearchanddevelopment,rocurementfweaponystemsandequipment,militaryconstruction,andamilyhousing.

7/30/2019 A 533401

22/105

PartII IDefense esources10UDGET

DepartmentofDefenseBudget(DollarsinBillions) Table2

FY 1988 FY 1989 FY 1990 FY 1991Currentol lars TotalObligationalAuthority3 288.6 292.2 292.3 297.3Budgetuthority13 283.8 290.8 291.4 295.1Outlaysc 281.9 294.9 286.8 292.1FY 1991ol lars TotalObligationalAuthority3 321.0 312.8 303.9 297.3Budgetuthority13 315.5 311.3 302.9 295.1Outlaysc 314.4 316.2 298.7 292.1

3ota lbl igat ionaluthori tyTOA)epresentshealuefirectefenserogramsorachiscalear,regardlessoffinancing.budgetuthori tyBA)ermitshebligationfundsormmediatendutureisbursementndsassociatedwiththeyeartheauthoritytakeseffect.Generally,hedifferenceetweenOAndAtemsfromtheapplicationofreceiptsthatoffsettotaludgetauthority.cOutlaysrepresentsactualxpenditures.About63percentofFY991utlayswillesultfromFY991udgetauthority;theemainderwillcomefromudgetauthorityprovidednarlieryears.

OutlaysnFY991alsoeeChart2)willgoprimarilyforpay(46.2percent),prior-yearrequire-ments38.5percent),andcurrent-yearoperations(4.9percent).urrent-yearoperationscoverbase structureandsupportosts.utlaysromprior-yearprogramsepresentamountsalreadyoncon-tractandarelargelyafunctionofprocurementandresearchanddevelopmentinvestmentsmadein ear-lieryears.Nearly 0.4percentofFY99 1outlayswillbespentonnewinvestmentprograms.

Thebudgetequesteflects decliningshareoftheU.S.grossnationalproduct,asshowninChart3.Planneddefenseoutlaysalsoepresentadeclin- in gshareoftotalfederaloutlays(seeChart4).Pro-posedfundingfortheFY 991-95periodisshowninTable3.

Budgetredictabil ityndtability Stableefenseundingsssentialofficient

programlanningndxecutionverheongterm.ard-wonainsnefensecapabilitycanbeustained,ndndequateefenseostureassured,henundingsredictablendtable.Drasticwingsnfundingmake ffectiveprogrammanagementimpossible,andtheyunnecessarilyin -creaseth ecosttoth etaxpayerofnationaldefense.

Onemajorbenefitthataccruesfrompredictabil-ityndtabilityslearlannedroductionrateshatprovideforowerunitcosts.MultiyearprocurementMYP)enablesweaponsoepur-chasedmoreeconomicallyandcontributestobetterplanning.Thesebenefitscanbeexpandedandhe

FY1991DepartmentofDefenseBudgetLong-RangeForecasts(CurrentDollarsinBillions) Table3

BudgetuthorityPercentealGrowthOutlays

F Y 1991 F Y 1992 F Y 1993 F Y994 F Y995295.1-2.6292.1

300.0-2.0

296.9304.4-2.0

299.0308.0-2.0302.3

311.8-2.0

304.8

7/30/2019 A 533401

23/105

PartIIefenseesourcesBUDGET

DepartmentofDefenseBudgetAuthorityandOutlays(DollarsinBil l ions) Chart2

RDT&E$38.0

Procurement $77.9

Other$10.2 Military Personnel$79.1

Current -YearOperations Current -Year $14.2Investment$30.4

Pa yandPay-Related$135.1Operations& Maintenance $90.1

FY1991BudgetAuthority$295.1 FY1991Outlays$292.1

Prior-Year Programs $112.5

'Numbersmay no tadd tototalsdu etoounding3Includesetirementay accrualcosts.

DefenseOutlaysasaShareoftheGrossNationalProduct Chart 3

0 -z0 )u0 )Q.

1 41 21 08 //

. . . . . .1950 1955 960 1965 1970 97 5 980 1985 1991

F i s c a l Year

7/30/2019 A 533401

24/105

12 PartIIDefense esourcesBUDGET

TotalFedera lOutlays Chart4

1,200

co009)= S 600 CLi- ra-'oQ

1965 1970 FiscalYea r

1980 1991

Defense W &Social22 Security Interest Other

savingsmultipliedonlywithdefensebudgetsha tareconsistentandcoherentoverthelongterm.Bi- partisanbudgetagreementsbetweentheleadersoftheexecutiveandlegislativebrancheshaveprovedimportantnstablishingredictablendtabledefense"topline"evels.ullmplementationoftwo-yearbudgetingfo rbothauthorizationsandap-propriationswouldgoevenfurthertowardprovid-ingheesourcetabilitynecessaryorconomicprogramexecution.Congressionaludget eform Theizendomplexityfheongressionalstructureasesultednnncreasinglyime-consumingbudgetprocess,whichhascomplicatedtheongress'sffortsorovidedequatee- fenseesourcesithinonstrainedundingev- els.Defenselegislationhasbecomeladenwithe-strictionshathinderheachievementofnational

securityobjectives.Increasingcongressionalmicro- managementhashinderedtheDepartment'seffortstoallocateresourcesandexecuteprogramsinwaysthatmprovefficiencyndffectiveness.on -gressionaldemandsorxtensivewritteneportsonmyriadmanagementecisionsavemposedanver-increasingorkloadnoD ,n anycaseswithoutignificantbenefitoongressionalprocesses.Simplifyingandtreamliningheongressionalreviewprocessouldprovideheimelynde- sponsivectionnudgetequestshatss- sentialotablendpredictabledefenseunding.Fullmplementationf iennialudgetycle,supportedbyong-termunding-levelagreements,wouldmakeforamoreorderlycongressionalpro-cessnd trongernationaldefense.nhancedrescissionuthorityouldnablehexecutivebrancho liminatewastefulpending. Effective

7/30/2019 A 533401

25/105

PartIIefenseesourcesBUDGET3

congressionalbudgetreform,combinedwithDoD managementndcquisitioneform,ouldro- duce teady, ffordableong-termdefensepro-gramthatmeetsthenation'ssecurityrequirements.

7/30/2019 A 533401

26/105

PartIIDefense esources14TRENGTHENINGDEFENSEMANAGEMENT

STRENGTHENINGDEFENSEMANAGEMENT TheDepartmentmustbepreparedoespond

tohallengingnternationalventsnheearsahead.otentialhreatsoheecurityfhe UnitedStatesandts lliesareikelyoncreaseinsomeareasanddiminishnothers.heymaywelltakenewandmoresubtleforms,necessitatingU.S.militaryorceshataremodern,eady,andsustainableinavarietyofcontingencies.

Atheam eime,as esultofcompetingna-tionalpriorities,therecanbenodoubtthattherealresourcesavailableordefensenheearly990swilleclinesignificantly.fheUnitedtatesstocontinuetoprotectit sglobalnterests,meetts responsibilities,andminimizeisksotssecurity,theDepartmentofDefensemustpreserve ssen- tialmilitarycapabilitiesthroughtheevermoreeffi-cientuseofth eesourcesatit sdisposal.Suchcir-cumstancescompeltheutmostattentiontoprudentmanagementofthedefenseprogramandobligetheexecutivebranch,Congress,andindustry,morethanever,ojoinnhusbandingavailabledefensedollars,cuttingcosts,andachievingnewevelsofproductivityandquality.TheDepartmentmust:-nsurehecontinuedstrengthandeadinessof

thearmedorces;-Acquireneededweaponystemsnes stime,atlowercost,andwithpromisedperformance;-ncourageindustryandgovernmenttomeetthe

higheststandardsofintegrityandperformance;andtrengthenubliconfidencenheepart-ment'sstewardshipofdefenseresources.

Thisisataskofimmenseproportions,requiringimprovementsindefensemanagementonthescalecontemplatedyheackardommission,heGoldwater-NicholsDefenseReorganizationActof1986,andheJuly 989DefenseManagementRe-portohePresident.Answerswillnotbefoundin"quickfixes"orsimplestatementsofmanagerialphilosophy.nstead, concertedong-termeffortisrequired.

TheJuly989ReportohePresidentone-fenseManagementestablishedabroadagendaoaccomplishul lmplementationoftheecommen-dationsofthePackardCommissionandoeal-izesubstantialmprovementsndefensemanage-mentoverall.Manyofth enitiativesproposedn

theReportarebeingundertakenonheauthor-ityoftheSecretaryofDefense .omewillequireconcertedactionwithinheAdministration,withotherexecutivedepartmentsandagencies.Stilloth-ersamonghemactionshatholdhegreatestpromiseforlong-termimprovement willrequiretheactivesupportoftheCongressandthedefenseindustry.

TheDefenseManagementReportetsforthplanoimplementhePackardCommission'srec-ommendations,omproveubstantiallyhee-fenseacquisitionystem,ndomanageheD e-partmentndefenseesourcesmore ffectively. Thereportidentifiesrequirementsto :Forgebetterinksamongnationalpolicy,mil-

itarytrategy,orcetructure,esources,ndprograms;-nhanceprogrammaticandtechnicalinputdur-in gresourceallocationdiscussions;-Reduceignificantlyheumberfprogramsthatoverruntheirbudgets,arelate,oraretech-nicallydeficient; -Reduceoverheadcostswhilemaintainingmili-tarystrength;-stablishandenforcehighethicalstandardsofconductinDoDandhedefenseindustry;-Reducemicromanagementandsimplifythelaws andregulationsgoverningDoD;-eversethedeclineintheindustrialbase;and-mproveelationsamongCongress,DoD,andth edefenseindustry.Forgingetterinksmongationalolicy,mil-itarytrategy,orcetructure,esources,ndro -grams:ofacilitatecommunicationregardingfun-

damentalissuesofdefensepolicyandmanagement,theDepartmenthasestablishedanExecutiveCom-mitteeoftheDepartmentofDefense .heom-mitteeischairedbyheSecretaryandincludesth eDeputyecretary,heecretariesfhemilitarydepartments,heChairmanoftheJointChiefsofStaff,andth eUnderSecretariesofDefenseforA c- quisitionandolicy.nddition, eorganizedDefenselanningandResourcesBoardDPRB)haspermittedmoreeffortobeconcentratedneffectiveplanning,herebymprovingheinkageamongnationalsecuritypolicy,militarystrategy,andresourceallocationsforspecificprogramsandforces. TheDepartment'snewDefenselanning

7/30/2019 A 533401

27/105

PartIIefenseesourcesSTRENGTHENINGDEFENSEMANAGEMENT5

Guidancewillprovidefortheresolutionofseveralsignificantplanningopics,defineheessenceofa nationaldefensestrategy,summarizehigh-prioritydefenseconcerns,andestablishguidelinesorde -velopinganintegratedlong-rangeplanforDoD.

Enhancingprogrammatican dtechnicalinputdur-in gesourcel locationiscussions:mprovedpro-gramndechnicalnputnllocatingesourceswillbeaccomplishedbyensuringthat:-Theoleofth eUnderSecretaryofDefenseforAcquisitionUSD(A))senhancedhroughhi sactiveparticipationinallphasesofth ePlanning,Programming,ndudgetingystemPPBS)

anddeliberationsonmajorbudgetissues. -ThenderecretaryfDefenseorolicy(USD(P))ervessheecretary'sndheDeputySecretary'sprimaryadvisorfortheplan-ningphaseofPPBSands keyparticipantnprogrammingandbudgetingdecisions.

Reducingignificantlyheumberfrogramsthatverrunheirudgets,reate,rreech-nicallyeficient:everalnitiativesaredirectedatensuringhatprogramsmeetchedule,ost,ndperformanceequirements.First,heUSD(A)willmanageamoredisciplinedeviewprocessforma-joracquisitionprograms.heeviews,conductedbyheefenseAcquisitionoardDAB),il lmakecertainthateveryprogramisreadyformoreadvancedtagesfdevelopmenteforeeceiving approvaltomovetoth enextmilestonephase.Thereviewsalsowillnsurehatlansoradvanceddevelopmentstagesareconsistentwithsoundc- quisitionmanagement.

Second,heointequirementsversightCouncil(JROC)willassumeabroaderroleinsup-portfDABecisionmaking.evisedROCcharterprovidesfor:eviewofallwarfightingdeficienciesthatcould

necessitatedevelopmentofmajorystemspriortotheirconsiderationbyth eDAB ;-eviewofth evalidityofidentifiedmissionneeds andssignmentfjointrioritiesormeetingthoseneeds;-ValidationofperformancegoalsandaselinespriortoDABeviewofmajorprograms;and

-electionfprogramsorecommendationotheUSD(A)as candidatesforjointdevelopmentandproduction.Third,the authority ofprogrammanagers(PMs)

willbestrengthenedby:-stablishingnambiguousndbbreviatedchainsfommandoheostenior

decisionmakers;stablishingclearlinesofresponsibilityandau-thoritydownwardromheerviceacquisitionexecutivesSAEs )hroughheprogramxecu-tiveofficers(PEOs)tohePMs;and-rovidingforPMstoreportexclusivelytotheirPEOs,husstreamlininghechainofcommandincquisitionmattersndeducingeportingrequirements.Fourth,programstabilitywillbeenhancedby:

-Takinggreateradvantageofmultiyearcontract-ing;andnsuringhatuccessfulPMsandEOsenjoysustainedtenure,ideallytodirecttheirprogramsthroughanentiremilestonephase.Fifth,thequalityofthedefenseacquisitionworkforcewillbeenhancedbyheestablishmentfadedicatedcorpsofofficerswithineachservicewho

willmakeull-timecareersasacquisitionpecial-ists.Theseplanswillensure:-electionfhighlyromisingfficersarlyn

theircareers;-imelypecializationncquisition,ncludingtheelectionofsuchcareerpathsbyofficerswithsomesignificantoperationalexperience;-Assignment,otherhannexceptionalases,oacquisitionpositionsandelatedrainingonceselected;Creationfttractivendquitableareerpaths,includingdesignationofcorps-eligiblepo -sitions;andAssurancefromotionotentialpohe highestflaggrades.TheDepartmentlsoil lworkwithhe f- ficefPersonnelManagementOPM)omakeDoDivilianareerpportunitiesmorecompet-itivewithhosenheprivateector.hisil l

includesupportingheAdministration'sproposedlegislationllowingDoDndthergenciesopayoregree-relatedoursework byivilian

7/30/2019 A 533401

28/105

Part IDefense esources16TRENGTHENINGDEFENSEMANAGEMENT

employeesin criticalhard-to-fillareas.Inaddition,theDepartmentisseekingpromptactionbyOPMonclassificationofDoDcontractingofficers saprofessionalpersonnelseries.Inthecaseof officerswiththeauthoritytoawardcontractsofmorethan$25,000,DoDwillee kheadoptionofclassifica-tionstandardsthatequireanappropriatecombi-nationofrelevantworkexperienceandeducation.Sixth,toincreasetheprototypingandtestingof

majorprocurementitems,theUSD(A)willdevelopandapplypoliciesthatsupportsounddecisionsonmajorprogramsthroughull-scaleengineeringde -velopment.heseolicies il lictatechedulesandmanagementplansformajorprogramshat:-upporthebuildingandestingofsystemand

criticalsubsystemprototypes,theuse ofsystemsengineering,andhevalidationofmanufactur-in gprocessesasearlyaspossible;and-rovideforearlytestingandevaluationofpro-totypeardwareoemonstrateheiresignconcepts,erformance,nduitabilityneal-isticoperatingenvironments.

Reducingverheadosts hilemaintainingmili-tarytrength:heDepartmentsnstitutingpro-gramshatocusoncontinuouslymprovinghequalityndffectivenessfefenserocesses,products,andervices.hiseffortncludes lim- inatingmanagementayersandesearch,develop-ment,ndprocurement-relatedunctionshatdonotddlearalue.tlsorovidesncentivestomanagersandmployeesoseheircreativ-ityomproveperformanceandconsistency,anditendselianceoneviewandinspectionas pri-marymeansofensuringquality.hegoalsanoverallimprovementintheefficiencyofDoD'sac- quisitionmanagement,ogistics,distribution,andrelatedmaintenanceactivities.

Greater fficiencyandcosteductionsalsowillbeaccomplishedhroughthermeasures.herewillbestrongmanagementoversightofthebaseclosureandealignmentprocess. lso,DoDcon-tractadministrationservices(CAS)willbeconsol-idatedto :treamlineCASorganizations;-romoteuniforminterpretationofregulations;-mprovehemplementationofDoDprocure-

mentpolicy;and

UpgradeheualityfheCASworkorcewhilereducingpayrollcosts.In addition,theDepartmentisdevelopingacor-

poratenformationmanagementprogramom-provethestandardization,quality,andconsistencyofdataromDoD'smultiplemanagementnfor-mationystems.hegoalsoeducenneces-saryredundancyandtorealizesavingsinboththe$9billionspentannuallyonnformationechnol-og yandnheDoDbusinessareasheseystemssupport.

Establishingan denforcinghighethicalstandardsofonductnDoDndheefensendustry:heDepartmentofDefensewillnotoleratellegalorunethicalehavior.oDncouragescontractorself-governanceandtheestablishmentof appropri-atecorporatecodesof conduct.

DoDhasestablishedanEthicsCouncilconsist-in goftheUSD(A)andhesecretariesofthemil-itaryepartments,dvisedyheDoDnspec-torGeneralandGeneralCounsel.hecouncilschargedwithdevelopingethicsprogramsorheacquisitionworkforceandimprovingexistingcom-pliancerograms.tlsoil leveloproaderprogramsoenhanceawarenessandnderstand-in gofethicalissueshowtheyarisedaytoday,howexistingstandardsmayormaynotapply,andwhatresponsibilitiesDoDmanagershaveas ethicalleaders.

ReducingmicromanagementndimplifyinghelawsndegulationsoverningDoD: askorceheadedbytheUnderSecretaryofDefenseforA c- quisitionisconductingazero-basedreviewofreg-ulatoryandotherguidancepertainingoacquisi-tion,procurement,ogistics,andelatedactivities,beginningwithDoD-leveldirectivesandproceed-in gownhroughhemilitaryepartmentsndtheircomponents.heaskorcesgovernedby thestrongpresumptionthatregulationsshouldnotbe retainedorduplicatedunlessthereisaclearandconvincingneedtodoso .Specialscrutinyisbeinggivenomeasureshatimitjudgment,creativity,ornitiativeorhatnhibithemplementationofsoundprocurementpolicies.

Anotheraskorceseviewingxistingro-gramsndnitiativesordvocacyfpecial,single-purposeequirements. Theaskorcewill

7/30/2019 A 533401

29/105

Part IefenseesourcesSTRENGTHENINGDEFENSEMANAGEMENT7

bechargedwithdeveloping planoeliminateas manysuchprogramsaspossible.

Animportantsimplificationinitiativeis"acqui-sitionmanagementbyexception"thatis ,inter-ventionbysenior managementonlyatmajoracqui-sitionmilestones,ataprogrammanager'srequest,ornheevent programencounterssubstantialproblemsnmeetingtsbaseline.nhe987D e- fenseAuthorizationAct,heCongressgaveDoDauthorityodesignateaimitednumberofacqui-sitioninitiativesas"DefenseEnterprisePrograms"inorderoestheviabilityofthisapproach.TheDepartmentplanstoutilizeit .Reversingth edeclineinth eindustrialbase:DoDiscommittedooliciesndrogramshatill

enhanceAmerica'scompetitivestrengthandol - sterourindustrialbase.Forexample,heDepart-mentntends,whenappropriate,oestablishcon-tractualelationshativetsuppliersinancialincentivesoexploreechnologieshatcouldm-proveweaponsperformanceandeduceife-cyclecosts.nadditionopromotingheuseofmulti-yearcontracts,heUSD(A)willimitstrictlyheuseofcost-sharingcontractsforystemsdevelop-mentandtheuseoffixed-pricecontractsforhigh-riskdevelopmentefforts.

TheUSD(A)willalsohelppromoteheong-term, fficientproducibilityofsystems.ithhe ViceChairmanoftheJointChiefsofStaff,hewillseektoexpandtheuseofbroadperformancespeci-ficationsinweaponsdesign.Hewillalsoseektoen -surethatspecificationsarelockedinpriortohigh-rateproductionandthatupgradesormodificationsaremadeonablock,notapiecemeal,basis. Improvingelationsmong ongress,DoD,nd thedefenseindustry:heDepartmentwillcontinueit soluntaryisclosurerogram,nderhich

DoDcontractorsareencouragedodemonstratetheircommitmenttobusinessintegrityandhonestybydisclosingevidenceofpotential ivilorcrimi-nalfraudnheircontractswithDoD.Toeducetheossibilityfnconsistentreatmentfuch

disclosures,heDepartmentwillworkwithappro-priateagenciestodevelopstandardcriteriaforpro-gramparticipation.naddition,ocreateclearin -centivesforcorporatemanagement,voluntarydis-closureofpotentialviolationswillemainanm-portantonsideration,onsistentwithpplicablelaw,nhedeterminationfheanctionsDoDmightapply.

DoDalsowillcontinueoencouragendustryparticipationntsContractoris kAssessmentGuideCRAG)program.hisprogrampromisesmorefficientsefDoDuditapabilitiesyplacingreatereliancenontractorsoestab-lish ffectiveystemsofinternalcontrols.ncon-junctionwithheCRAGrogram,heefenseContractAuditAgencyDCAA)hasencouragedbroaderoD-industryommunicationsnn-nualgovernmentauditplansnorderohighlightopportunitiesormprovedontractornternalcontrols.

Overheongerm,DoDwilleekodevelopaprocurementsystemthatrewardscontractorsfordemonstratingheircommitmento ffectiveelf-governance.upplier'sroveneputationorintegrityisoneimportantstandardthatcanbeap-pliedinmakingcontractdecisions.A sinthecom-mercialmarketplace,heotalityof irm'sper-formanceshouldbeconsiderednorderoensurethathegovernmenteceiveshebestvalueromthesupplierswithwhomtdoesbusiness.

TheDepartmentwillcontinuetoworkwithhe Congressofashion more ffectiveand fficientbudgetandacquisitionprocess.herearemanyrecommendationsormprovementhathee- partmentwillbe abletoinstituteonitsow nauthor-ity,butseveralkeyinitiativesaimedatstreamliningtheseprocesseswillequirehe losecooperationoftheCongressandegislativereforms.IfDoDis toimplementqualityandcost-reductionprogramssuccessfully,theCongressmustprovideke ylegisla-tivenitiativesnheformofnewaw sandepealormodifyotherssoastostreamlinecongressionaloversightandimprovethebudgetaryprocess.

7/30/2019 A 533401

30/105

PartII IDefense esources18ERSONNEL

PERSONNELOurforemostbudgetprioritysopreservehe

highqualityofthepersonnelwhoconstitutehisnation'smostcriticaldefenseresource.Ifwe aretorecruitandretainhighlyeducated,motivated,anddedicatedmenandwomen,ervicendefenseofthenation'ssecuritymustbeegardedasthehon-orableandattractiveprofessionthatitis .Suchser-vicemustreflectthehighestidealsofthenation,it mustadequatelycompensatethoseservingforthesacrificesdemandedofthem,andtmustprovideadesirablestandardoflivingforthem.

Recruiting,raining,andoperationalexperiencedataindicatethatthequalityofourpersonnelhasneverbeenhigher.hemaintenanceofthisstan-dardofexcellencedemandsacommitmentoe- cruiting,retention,andquality-of-lifeprogramsforal lourpersonnel.emographic,conomic,ndtechnologicalrendschallengeourabilityomeetthatcommitment.heDepartment'successwill,therefore,equirensightfulmanagementolicies andsufficientlevelsoffunding.TotalorceManagement

Theworkorceequiredoupporthea-tion'sefenseseterminedy omplexys -temhatranslatesnationalsecurityequirementsintohevariousypesandnumbersofpersonnelthatonstituteheotalorce.heorcetruc-turereflectstheU.S.forward-defensestrategy,un-derwhichunitsareforwarddeployedandsupple-mentedbyforcesbasednhecontinentalUnitedStatesCONUS).Totalorceplanningmustcon-siderthecategoriesofpersonnel(activeandreservecomponent,DoDcivilian,privatecontractor,andhost-nationsupport)thatmightbeusedinvariouscontingencies.Theprocessbeginswithanevalua-tionofthenumberandtypeofthreatsconfrontingtheUnitedStates,andhestrategies,capabilities,andisksassociatedwithcounteringthem.Itcon-sidersheUnitedtates'bilityoeactocon-tingenciesunderbothmobilizedandnonmobilizedconditions,aswellas alliedcapabilities.Fiscalcon-straintsalsonfluenceheypesandquantitiesofunits,equipment,andpersonnelthatcanbe main-tainedintheforcestructure.Totalforcecomposi-tionisreflectedinChart .SignificantortionsfheDepartment'smili-

taryandcivilianworkforcesemainegulatedby congressionallymposedeilings. Thisrevents

maximumefficiencyandeffectivenessintotalorcemanagement.Forexample,currentcongressionalrestrictionsamperheDepartment'sbilityopursuehiringpoliciesthatwouldenableittotakeadvantageofgreatlyneededcapabilitiesofspousesofservicemembersassignedoutsidehecontinen-talUnitedStates.lso,imitsonheizeofde -fenseagenciesandheadquartersmpedeoptimumdistributionofresourceswithinandamongheseorganizations.

TheDepartmentofDefenseneedshelexibil- it yomakedjustmentsnheersonnelman-agementystemsgovernedbyexistingegislation.SomeamendmentswillbenecessaryiftheDepart-mentsocontinueomanagemilitarypersonneleffectively.Recruiting A sthesophisticationandcomplexityofmilitary

equipmenthasincreased,sohastheneedforhighlycompetentandmotivatedpersonneltoacquire,op-erate,andmaintaint.Duringhe980s,heD e-partmentsucceedednattractinghighlyeducatedmilitaryecruitsorbothhectivendeservecomponents.etweenFY 980andFY 985,heproportionofrecruitswhowerehighschoolgrad-uatesjumpedfrom68o93percent,andthesharehasemainedabovehe90percentevelinceFY1984.ncomparison,only75percentoftheyouthsinth ecivilianpopulationhavegraduatedfromhighschool.Enlistmenttestscoresamongrecruitsalsohaverisenince 980.Thisimprovementinrecruitqualityhascontinueddespite 5percenteduc-tioninthe18-to24-year-oldpopulationsince1979 .Oursuccess,inlargepart,isattributabletosoundincentiveprograms,includingthefundingoffutureeducation.TheserecruitmentnumbersarereflectedinTable4.Difficultchallengesareonthehorizon,however.

Thedecliningyouthpopulation,astrongeconomyinwhichhemilitarymustcompetewithhepri-vatesectorforpotentialrecruits,thecomplexityofnewweaponystems,andcompetitionforfederaldollarsaresomeoftheealitiesfacingmanpowerplanners.TheDepartmenthasworkedhardore -ducehempactoftheseconcerns.orexample,weaponandsupportsystemsarebeingdesignedtominimizebothhenumberandkillevelofpeo-pleneededooperateandsupporthem.Training

7/30/2019 A 533401

31/105

PartIIefenseesourcesPERSONNEL9

Composi t iono ftheTotalForce Chart5 ForeignNat ionalCivilian2.1% Host-Nat ionSuppor t4.1%a U.S.Civilian16.6%

StandbyReserve0.7%IndividualReady Reserve7.7%

RetiredMilitary13.6%

Active35.1%

SelectedReserve20.1%Host-nationupportincludesmilitaryan dcivilian. 4.6MillionMilitaryPersonne l1.1MillionCivilianPersonnel

programsndevicesincludingcomputer-basedsimulators)alsoarebeingdevelopedsystematicallyduringtheacquisitionprocess.Theaverageperiodofactiveservicehasbeenincreasedthroughlongerinitialenlistmentcontractsandretentionofskilledspecialistsbothtogainagreaterreturnontraininginvestmentsandoeducefuturerecruitingneeds.Researchisunderwaytoquantifychangingtrendsinethnic,gender,andskilllevels;todeterminehowtoin kjobperformanceequirementswithchang-in gecruitcharacteristics;andodentifywaysnwhichecruitingandrainingprogramsmightbe modifiedoeflecthesechanges.TheseprogramsaredesignedtoenabletheDepartmenttodomorewitheducedmanpoweresources.Whileheizeofmilitaryorceswillbeeduced,hemportanceofrecruitingandetaininghigh-qualitypersonnelforpositionshatemainwillbeve nmorecriti-cal,as eachindividualcomprisesagreatershareofunitcapability.Consequently,adequateecruitingandetentionesourceswillemainanmportantbudgetpriority.

Thegrowingscarcityfechnicalersonnelsapecificecruitingoncern.umeroustudieshaveprojectedadeclinenhenumberofpeopleseekingcollegedegreesinfieldsinhighdemandin theDepartment especiallyscienceandengineer-ing.hissofpecialconcernince,spointedoutbythePackardCommissionandtheJuly 989DefenseManagementReport,echnicalkillswillbencreasinglymportantnhedriveomprovethequalityndeducehecostfU.S.weaponsystems.Techniciansconstitute majorportionfhe Department'sacquisitionworkforce.Theyworkin

jobsrelatedtoresearchanddevelopment,procure-ment,ogistics,distribution,andequipmentmain-tenance.heircollectiveeffortsarecrucialoheU.S.efenserogram,ndmuchependsponhow fficientlyand ffectivelyheyperformheirduties.shePackardCommissionpointedout:".C]omparedotsndustrycounterparts,thisworkorcesndertrained,nderpaid,nd

7/30/2019 A 533401

32/105

20 PartII IDefense esourcesPERSONNEL

QualityandNumbersofEnlistedActive-DutyAccessions 3 (NumbersInThousands) Table4Quali tyndices Accessions

Percent PercentHigh AverageSchoo l orAbove FY 1990b FY 1991bGraduates Aptitude FY989 Planned PlannedArmy 90 93 119.9 97.4 95.5Navy 91 91 94.3 88.4 85.9MarineCorps 95 99+ 34.2 34.7 36.0Air Force Tota l DoD

99 99+94

43.8292.2

36.4 36.492 256.9 253.8

ancludespriorservicean dnonpriorserviceaccesssions.bstimatesasofJanuary1990.

inexperienced.hatevertherhangesmayemade,itisvitallyimportanttoenhancethequalityofth edefenseacquisitionworkforcebothbyat-tractingqualifiednewpersonnelandbyimprovingthetrainingandmotivationofcurrentpersonnel."AmajorocusofheDefenseManagemente-portprocesshasbeendentifyingandmplement-in gtepsoccomplishheommission'sroadobjectives.

Onthecivilian side,th eDepartmentsuffersfromtheutdatedndneffectiveivilerviceystem mandatedbystatute.Thefouraspectsofthecur-rentsystemthatmostseriouslyhurtDoDcompet-itivenessare:-xcessivelyregulatedandtime-consuminghiring

procedures;-Rigid and often inadequate compensationstandards;A cumbersomejobclassificationsystem;and performanceappraisalystemhatdoesnotadequatelytiepaytoperformance.Eightyearsago,heNavynstitutedheChina

LakePersonnelDemonstrationProjectoaddresstheseareasofconcern.Theprojectprovedthevia- bilityofalessrigidpersonnelmanagementsystem anddemonstratedtheclearadvantagessuchasys-temcouldofferoDoDemployeesandmanagersalike,ncludingnotablemprovementsnworking

environments,rofessionalewards,ecruitment,andetention.tsuccesshasbeendueoeveraldistinctfeatures: market-sensitiveiringystemhatllows

thegovernmentocompetemoreeffectivelyforhigh-qualitypersonnelnhard-to-filljobs;- erformance-orientedompensationystem thatinkspayoperformanceoanextentnotpossibleundertheexistingcivilservicesystem;- personnelystemhatgreatlyeducesthead-ministrativeeffortandcostsassociatedwithfed-eralpersonnelmanagement;and

Andministrativeystemhativesin emanagersreateresponsibilityorersonnelfunctions.DoDalsoseekstostrengthenfurthertheprofes-

sionalismofit s ivilianrocurementworkorce.Specifically,tsstrivingomaketsemployees'capabilitiesandcareeropportunitiesmorecompet-itivewiththoseoftheirprivate-sectorcounterparts.Onhemilitaryide,hesecretariesofth emili-

tarydepartments,workingwithheervicehiefs,havedevelopedplanstoestablishadedicatedcorpsofofficersineachservicewhowillpursuefull-timecareersscquisitionpecialists.helansn-cludespecializededucationalrequirementsandthe

7/30/2019 A 533401

33/105

PartI Iefense esources PERSONNEL1

SelectedReserveEnlistments (NumbersInThousands) Table5FY 1989 FY 1989 FY 1990 FY 1991Objectives Achieved Objectives Objectives

ArmyNationalGuard 77.8 71.1 77.1 77.2Army Reserve 78.1 75.4 76.4 75.0Nava l Reserve 36.8 30.2 33.6 33.6MarineCorps eserve 12.6 12.0 13.2 13.2AirNationaluard 11.2 11.6 12.4 11.1Airorceeserve Tota l

14.7 11.6 14.0 13.5223.631.2 211.9 226.7

provisionoftrainingopportunitiesforacquisitioncorpsofficersthroughouttheircareers.Reserveorces

The.6millionmenandwomenwhoerventh eeserveorcesofheUnitedtatesaremoreimportantoournationalsecuritynterestsodaythanreserveshavebeenatanytimeinthenation'speacetimehistory.sweenterhedecadeofthe1990s,budgetaryconstraintsandapidlychangingpoliticaldevelopmentsaroundheworldmaketimperativethatwecontinuethesuccessfulintegra-tionofreserveandactiveorcesocarryoutU.S.securityobjectives. Byanyeasonablestandard,hegeneralcapa-bilitiesofNationalGuardandeserveunitshave

improvedubstantiallynheastdecade.herehavebeeneveralcontributingfactors.irst,hequalityofhepersonnelwhoervenheeserve forcessatanall-timehigh.Lastyear,92percentofth eenlistedaccessionsintoheNationalGuardandeserveswerehighschoolgraduates,nd 5percentscored"average"orbetteronheArmedForcesQualificationTest.econd,herainingofeachNationalGuardndeservenitaseentiedohewartimemissionofhenit,ndheunitshavebeenheldtothesameperformancestan-dardsandeadinesscriteriasactiveorceunits.Developmentsnrainingechnology,meaningfuloverseasrainingopportunities,othertrainingini-tiativesthatmaximizeth elimitedtimeavailabletoreservistsorain,andhehighdegreeofprofes-sionalismamongreserveunitleadersallhavecon-tributedohemprovedeadinessonditionfmosteservenits.hird,ncreasedppropria-tionsnhe 1980sndolicynitiativesyhe

DepartmentofDefensehavepermittedhedistri-butionoeserveunitsofsubstantialamountsofmodernequipment.

AspotentialthreatstotheUnitedStateschange,NationalGuardndeservenitsreikelyobecomemoremportant.arly-deployingeserveunitsil lontinueofferarticularlyaluablecapabilities.Forexample,thelawpermitsthePres-idento al lpo00,000membersofhee- lectedReserveoctiveutywithout eclara-tionofnationalemergency.n periodoflimitedresources,hechallengewillbetoensurethatNa-tionalGuardandeserveunitsaregivenadequateresourcesoperformheirncreasingesponsibili-ties.Thistranslatesintoequirementsnotonlyforequipment,butalsoforfull-timesupportpersonnel(Table6),raining,andotherneeds.Quality-of-Liferograms

Althoughcompensationscriticaloetention,manyservicememberschoosetoremaininthemil-itarynpartdueohenonsalarybenefitstpro-vides.These"quality-of-life"factorshavebecomeakeyretentiontoolintheall-volunteerforce.

Theepartmentfefenseullyupportsmorale,welfare,andrecreation(MWR )programs,educationprogramsormilitarydependents,ndfamilyupportervices.W Rrogramsremajorcontributorocommunityifeonmilitaryinstallationshroughoutheworld,rovidingwideangefocial,ecreational,ndersonaldevelopmentctivitiesopproximatelyightmillionatrons.sheepartmentearchesfor ways to conduct MWR programs with

7/30/2019 A 533401

34/105

PartIIDefense esources22ERSONNELFull-TimeSupportPersonnel 3 (End StrengthInThousands) Table6

Actual PlannedFY 1980 FY 1989 FY 1990 FY 1991

ArmyNationalGuard 33.0 55.5 55.6 56.1Armyeserve 17.0 27.7 27.9 28.4Nava l Reserve 20.8 32.0 33.1 33.9MarineCorpseserve 4.8 7.7 7.6 7.7Airationaluard 25.8 34.2 34.8 34.7Airorceeserve Tota l

11.9 15.3 15.9 15.7113.3 172.4 174.9 176.5

Percentfelected 13.1 14.7 14.9 14.9Reserveancludesactiveguardandreserve,militarytechnicians,activecomponent,andcivilservicepersonnel.

constrainedesources,hehallengesomakerevenue-generatingactivitiesmoreeliantonheirownincomes.

Dependenteducationisanotherimportantareainwhichwemustmaximizehebenefitsobtainedfromonstrainedesources.tudentsnDoDschoolshavescoredabovehenationalnormonbasickillestsandatorabovehenationalv- erageonollegeentrance xams.Duringhepasteightyears,enrollmentnheDepartment'sover-seasschoolsfordependentshasgrownby nearly20 percent,challengingourabilityomaintainhesehighstandards.

AlongwithMWRndependentducation,familysupportervicesareessentialo balancedandmeaningfulquality-of-lifeprogram.xamplesincludefamilyadvocacyprograms,whichaddressfamilyviolence;elocationprograms,hichas eth estressandstrainofpermanentchangesofsta-tiononserviceamilies;andchildcare.

Oneofth eDepartment'sgreatestfamily-supportchallengessomeetheneedsofit smilitaryandcivilianpersonnelforhigh-qualitychildcareataf-fordableprices.oDasmadeprogressnhisprogram:some,600newamilyday-carehomes,providingcareforover 2,000morechildren,werecertifiedetweenFY987andFY988.ddi-tionally,snewconstructionrojectswerecom-pletedandervicesexpanded,5,000morechildren

wereaccommodatednchilddevelopmentcenters.Privateinancingsbeingpursued s meansofincreasingcapacityatheseacilities,andDoDsworkingtoraisechildcarestandards.TheDepart-ment'sprimaryneedsowareoeplacenade-quate,nsafeacilitiesandobuildnewonesohelpmeetsubstantialneeds.Readiness

Readinessforcombats primaryobjectiveofpeacetimetrainingoperations.Ourforcesmustbe manned,equipped,andrainedoightwhenevertheyarecalledonodoso .Unlessheyarereadyfor combat,theirsophisticatedweaponryisoflittle valueanddeterrencebecomesahollowconcept.

Thereadinessofaforcetocarryoutit sassignedmissionsismorethanthesumtotaloftheskillsofit sndividualmembers.eadinessepresentsheculminationoftherainingofcrewsandunitsontheirdesignatedequipmentandwiththeirassignedweaponsystems.Theconstanthoningofteamworkskills,fromcarrierbattlegroupoperationstotankplatoonmaneuvers,sth eke ytoeadiness.

Operatingtemposgroundvehiclemiles,shipsteamingays,ndircraftlyingoursreoneofheyardstickssedomeasureherain-in gopportunitiesavailableomilitarypersonnel.Althoughincreasedoperatingtemposdonottrans-lateautomaticallyintoincreasedreadiness,thereis nodoubtthatwithoutadequatelevelsofoperation,

7/30/2019 A 533401

35/105

PartIIefense esourcesPERSONNEL3

readinessdeteriorates.TheDepartmentofDefensewillmaintainoperatingtemposatthelevelsneededtoensurereadyforces.ThesenumbersarereflectedinTable7 .Tovercomeertainersonneleficienciesnreadinessormobilization,heepartmentas takenstepstoupdateitsdatabases,reorganizere- sponsibilitiesforthelanddefenseofthecontinen-talUnitedStates,mprovemobilizationxercisesan dincludeinthemcivilianmobilization,improvemanagementofthendividualReadyReserve,n- creaseamiliaritywithplansorvacuatingnon-combatantsfromcombatzones,enhanceplanningfortheus eofmilitaryretireesinwartime,an dim-proveinternationalmobilizationplanningcapabil- itieswithU.S.allies.

Goldwater-NicholsDoD eorganizationAct TitleVoftheGoldwater-NicholsDepartment

ofDefenseReorganizationActof986mandatedextensiveimprovementsintheareaofjointofficerpersonnelmanagement.Duringthepastyear,theDepartmenthasmade

significantrogressnmplementingTitleV .tcontinuesoevoteonsiderableffortohe identificationfappropriateoliciesndroce-duresor ffectinghehangesalledorbyhe act.Theseeffortsfocusoneightareas:

-Servicepolicyandproceduresforselecting jointspecialtyfficersndtherofficerservingnjointdutyassignments;-evisedefinitionsorual-hatndross-Departmentjointdutyassignments;-Criteriaoresignatingointlyannedactivities;

OperatingTempos Table7

FY 1989 FY990a FY991FlyingHours/Crew/Month ArmyCombatorces 14.6 15.0 14.5Armyeserve 8.0 8.0 8.0ArmyNationalGuard 9.0 9.0 9.0Navy/MarineTacAir/ASW 25.0 25.0 25.0USNR/MCRTacAir/ASW 11.0 11.0 11.0AirorceacAir 19.3 19.5 19.5AN GacAir 11.0 11.0 11.0AFR TacAir 11.0 11.0 11.0Airorceirlift 31.0 30.1 30.2AN Girlift 15.0 15.0 15.0AFR Airlift 15.0 15.0 15.0Airorcetrategic 18.2 17.7 17.6AN Gtrategic 16.0 16.0 16.0AFRtrategic 16.0 16.0 16.0

NavySteamingDays/QuarterDeployedleets 52.5 50.5 50.5Non-deployedleets 27.5 29.0 29.0USNRon-deployedleets 21.0 21.0 21.0

ArmyGroundMiles/Year 820 800 800Armyeserve 200 200 200ArmyNationaluard 288 288 288Requested

7/30/2019 A 533401

36/105

24 PartIIDefense esourcesPERSONNEL

-oliciesorwardingreditorointourcompletion;

-Proceduresforsecuringearlyreleasefromjointassignments;-oliciesaddressingtherequiredfillratesforjointdutybillets;romulgationoftourengthsofthreeyearsforfield-gradeofficersandtwoyearsforgeneralandflagofficers;and-oliciesandproceduresorupdatingheJointDutyAssignmentList .

A listcontaining8,623jointdutyassignmentshasbeenpublished;ome,024billetsonheis taredesignatedscriticalssignments,"oeilledbyofficerswhohavebeenawardedhejointpe -cialty.oassistnmanagingheist,ndoa- cilitateimplementationofth ecareeroversightandreportingequirementsentailednheGoldwater-NicholsAct,heDepartmentasevelopedJointDutyAssignmentManagementInformationSystem.Finally,ithasconductedextensivereviewsofjointeducationopportunities.AdetailedsummaryofDoD'sprogressnm-

plementingherovisionsfitleVfheGoldwater-NicholsActisprovidedinAppendixD .Medicalervicesnd eadinessTheMilitaryHealthervicesystemMHSS)

has dualmission:omaintainmedicalwartimereadinessandoprovide comprehensivepeace-timehealthbenefitoheUnitedStates'ninemil-lionctive-dutyerviceersonnel,heirepen-dents,etirees,andsurvivors.TheAdministrationplaceshighpriorityonimprovingtheDepartment'sperformanceofthisdualhealthmission.

Theeacetimeealthmissiononsistsfwoparts: "directcare"ide,whichprovideshealthcareobeneficiariesnmilitarymedicalacilities;andheivilianHealthndMedicalrogramoftheUniformedServicesCHAMPUS), cost-sharingsystemforcaredeliveredbycivilianhealthproviderstoeligiblebeneficiaries.

Thedirectcaresystemcomprisesmorethan800 medicalandentalreatmentacilities,ncluding168hospitals,atmilitarynstallationsaroundheworld.heseretaffedy orcefealthprofessionals,ncludingalmost45,000active-dutymilitarypersonnel.oD'smilitaryreatmenta- cilities(MTFs)handleonemillionadmissionsand50millionoutpatientvisitsayear,makingDoDtheworld'sargestealthareeliveryystem.CHAMPUScurrentlypaysforabout30percentofthecareprovidedtoDoDbeneficiaries,alsomak-in gDoDoneoftheargestbuyersofhealthcareinthecivilianmarket.

Thessuesofhealthcarequality,cost,andac -cessposegreatchallengesoheDepartmentofDefense.hecostfDoDealthperationssgrowingbyabout0percentannually,hileheoverallDoDbudgetisdeclininginealterms.Severalssuesrequirespecialattention:

-Morecareforthemilitarycommunityismovingfrommilitaryreatmentfacilitiesohehigher-costciviliansector(CHAMPUS),dueinparttopersonnelshortagesandmanagementpracticesill-suitedtomaximizingeffectiveuseoflocale- sourcesandthepotentialof individualfacilities.ngeneral,tcostsmoreforDoDopurchasecarenhe iviliansectorhanoprovidetnmilitaryacilities,andhecostshavebeenes scontrollableintheprivatesectorthaninthemil-itarymedicalstructure.heDepartmentneeds toevaluatethecombinationofservicesthatwillenabletomaximizehevalueobtainedromhealthcareexpenditures.-Medicaleadiness, riticallementfU.S.warfightingcapabilityandheprimarymissionofthemilitarymedicalservices,needssignificantimprovement.Whileprogresshasbeenachievedthroughpecialonusesoealthrofession-al swithkillsneedednwartimeandhroughthepurchaseofdeployablemedicalequipment,muchremainstobe done.Specialemphasismustbegiventotherecruitment,training,andreten-tionofkeymedicalpersonnelandoadequatehealthcareplanning.

7/30/2019 A 533401

37/105

PartIIefenseesourcesINDUSTRIALASE5

INDUSTRIALBASE Aobustndustrialbasesessentialosustain-in gthemightof thenation'sdefenses.TheUnited

Statesisstrongmilitarilylargelybecauseithashadtheresources,sophisticatedmanufacturingcapabil-ity,andhighlyeducatedcitizenryhattcanal luponinimesofemergency.

Thereareseveralkeyndicators,however,hatprovideevidencehathendustrialbasemaybe inrouble.heUnitedStates'shareofth eworldmachine-toolmarket,forexample,isnowlessthanhalfthe 980level.Duringthepast7years,U.S.firmshaveostwo-thirdsofthedomesticmarketformachiningcenters.ookataggregateco -nomicindicatorsalsoshowsthattheUnitedStatesislosinggroundwhencomparedwithotherindus-trializedcountries.orexample,duringheirsthalfofthe 980s,heU.S.ateofgrowthnpro-ductivitywas .5percent,comparedoalmost6.5 percentorJapan.naddition,heU.S.shareofworldwideradenmanufacturedoodsase-clined,whileth esaleofforeigngoodsintheUnitedStateshasincreased.

Furthermore,aseriesofmajorstudiessincethePackardCommissioneporthavedocumentedanalarmingrosionnhe.S .efensendustrialbase.heollowingtemsweredentified sea- sonsforconcern:- eclinenheverallumberfefensesuppliers;-AcceleratingpenetrationofforeigngoodsntoU.S.marketsandagrowingdependencyonfor-eignsourcesforvitalcomponentsandsubassem-blies;and-Decreasingreturnsonfixedassets,decliningcap-italinvestments,andlaggingproductivityinke y

defensesectors.Iftheserendscontinueunabated,heywilljeop-ardizeU.S.security.

AtheheartoftheproblemsAmerica'scom-petitivestrength.hiss highlycomplexssue,involvingmanyactorseyondheeachre- sponsibilityofanyDefenseDepartmentpolicyorprogram.xchangeates,axpolicy,hecostofcapital,abor-managementelations,ndndus-try'sillingnessolanorong-termrofitablegrowthnsteadofshort-termprofits ll ffecthe

competitivenessfAmerican-maderoducts.naddition,heradepoliciesofothercountriescanunderminedomesticindustriesiftheyaimatgain-in gamarketshareinheUnitedStatesbydump-in ggoodstnreasonablyowrices.hee-partmentofDefensewillcooperatewithhegov-ernmentagencieshathaveesponsibilityoreco-nomicmattersnheeffortomproveAmerica'seconomicstrength.

Toelp.S .manufacturersegainheircom-petitiveedge,DoDhasoutlinedastrategywithsixmajorstrategicthrusts:-Forgingtherightrelationshipwithindustry;-mprovingtheacquisitionsystem;-nsuringhatndustrialasessuesmportant

toourdefensebenefitfromthefullspectrumofpotentialpolicyemedies,whenappropriate;-stablishingefensendustrialtrategiclansthatsupportmilitarystrategicplans;

Developingmanufacturingcapabilitiesconcur-rentlywithdevelopmentofweaponsystems;and-Layingthefoundationnowforthetechnicalskillbaserequiredfortomorrow'sdefenseneeds.Withregardodefenseproduction,heDepart-

mentofDefensehaswoprogramsformprovingproductivity.OnesheManufacturingTechnol-og yor"ManTech")program.tsprimaryoa lisomproveheproductivityandesponsivenessofthedefensendustrialbasebyfundingargelyprivate-sectorresearcheffortstodevelopadvancedmanufacturingtechnologies.

ThendustrialModernizationncentivesro-gramIMIP)isheothervehicleusedbyDoDohelpdefensecontractorsboostproductivity.UnlikeManTech,whichocusesonhedevelopmentofnewmanufacturingprocesses,MIPconcentratesonmodernizationeffortsthatimproveth eproduc-tivityofexistingfacilities.

TheDepartmenthasundertakenavarietyof ini-tiativeshatarefocusinggreaterattentiononm-provingqualityndroductivity.tsworkingwithit scontractorsobuild productivepartner-shipomaintainhestrengthofthearmedorces. CorrectingheerosionoftheU.S.ndustrialbasewillequirehesustainedattentionofbothDoDandrivatendustry.heenndwomennth eDepartmentdependonU.S.ndustryorhe

7/30/2019 A 533401

38/105

P a r tI I ID e f e n s e R e s o u r c e s 26NDUSTRIALASEequipmentheyneedoperformheirmissions.Governmentandndustryhareheesponsibility toprovideit. TheDepartmentofDefensemaintainsplanso

mobilizenncrementaltepsopermithePresi-dentan dheSecretaryofDefenseoespondo

earlywarningn deliberatean dimelymanneran dproceedwithmodulatedesponsesodeter,mitigate,orrecoverfromacrisis.Thispermitsmil-itaryforcesandthedefenseindustrialbasetoim-plementpreplanned,graduatedmobilizationtepsthatareresponsivetoawiderangeofnationalse-curitythreatsandwarningindicators.

7/30/2019 A 533401

39/105

PartIIefenseesourcesENVIRONMENT7

ENV IRONMENT Environmentalssuesarehesubjectofintense

concernamongleadersthroughoutoursocietyandth eworld.heAdministrationscommittedoprotectingheenvironment,ndheDepartmentofDefensenotonlypromotes,buteeksobeleadern,nvironmentalcomplianceandrotec-tion.Consistentwiththataim,DoDisworkingtoincorporateanenvironmentalethicintoalldefenseactivities.

Twoprimaryobjectivesunderliethiseffort:pro-tectinglong-termaccesstotheair,land,andwaterneededosustainmissioncapability,andenhanc-in gthequalityoflifeandtheenvironment.Towardthoseends,heDepartmentofDefensehasestab-lishedixpecificgoals:-erformingenvironmentalmpactanalysesand

conductingenvironmentalplanningearlynheacquisitionprocess;

dentifyingesourcesomeetenvironmentale- quirementsusingestablishedprogrammingandbudgetingprocedures;

-MaintainingnternalcommunicationprogramsthatnsureoDeadersndmanagersreawareofenvironmentalrequirementsandexter-nalrogramshatrovidecommunitiesnfor-mationonDoD'senvironmentalactivitiesandcomplianceefforts;

-MinimizingpollutantsromDoDnstallationsandoperationsworldwide;Maintainingfeedbackystemshatensureeach

organizationallevelhassufficientinformationtocomplywithDoDenvironmentalequirements;and

-mplementingmanagementprocedureshatn-suretheDepartmenthastherightpeopleatherightplacewiththerighttraining.Thesegoalswillnotbeeasytoachieve.Successwilldependprimarilyonamultifacetedefforto-

cusingonevencritical lements:culturalchange,compliance,people,budget,raining,communica-tions/public ffairs,ndmprovingelationswithregulatoryagencies.

Majoractionsalreadyunderwayincludeanex -tensiveauditofenvironmentalcompliance.om e900nstallationshavebeensurveyedodate,andmorehan,000otentiallyontaminatediteshavebeendentified.Another ,000itesonor -merlyse dDoDropertiesreeingeviewed.TheDepartmentseekstocorrectalloftheseprob-lems,butthosethatposethegreatestrisktopublichealthandheenvironmentmusteceivepriorityforcleanup.heDepartmentalsosworkingoreduceheuseofhazardousmaterialsandavoidth egenerationofhazardouswaste, spartofanongoingeffortoachievesignificanteductionsnhazardouswastegenerationy992.ontinuedemphasisinal lotherareas,suchas air,water,andtoxicsubstances,willenhance ourtotalpostureandreaffirmourresolvetoserveasamodelofcompli-ancewithinheegulatedcommunity.

Environmentalprotectionsanmportantpartofthedefensemission.sstewardofnearly25millionacresofpubliclandsandbillionsofdollarsworthoffacilities,heDepartmentofDefenseha s aresponsibilitytoconserveandrestorethenaturalresourcesentrustedoit .

7/30/2019 A 533401

40/105

PartV Defenseomponents

7/30/2019 A 533401

41/105

PartV efense omponentsDEFENSECOMPONENTSNTRODUCTION9

DEFENSECOMPONENTSINTRODUCTIONThehighestpriorityoftheDepartmentofDe- fenseisdeterrenceofwarandhemaintenanceofU.S.freedom.Shoulddeterrencefail,UnitedStates

militaryorcesmustbetructured,deployed,an dreadyoprovidehePresidentnimeofcrisisvarietyofflexibleesponseoptionswhichnablecontrolof scalationnderminationofconflictonfavorableterms.Theseforcesmustprovideca-pabilitiesacrossheentirepectrumofchallengestonationalecurityromglobalwaroow-intensityconflict.Readiness,modernization,an dbalancearethreevitaloncernshichheepartmentddressedinllhedefenseomponentrograms.eadi-nessemains highprioritybecauseeadyorcesare prerequisiteodeterrence.riticaloeadi-nessisthewell-beingofouruniformedpersonnel.UnitedStatesorcesmustbehighlyrained,ullyequipped,ndwell-ledfthey reoctquicklyan deffectivelyinperformingtheirmissions.RecenteventsinPanama,theU.S.VirginIslands,andtheAndeancountriesunderscorehecriticaloleha treadyforcesplay.Allofourforcesforwardde-ployedandCONUSbased,ctiveandeserve

mustbepreparedoexecuteheirmissionsnhe requiredtime.Modernizations continuousprocessha tn- volvesnotustquipmentbu tonstanteassess-mentsofandadjustmentsindoctrine,orcestruc- ture,ndraining.nupgradingourquipment,weeekomproveheombatffectivenessofou rorces,withinbudgetconstraints,byprovid-ingmodernequipmenttoheunitswhowouldbe firstoight.urprograms redesignedon- creasethelethalityan dsurvivabilityofourforces,whilelimitingthedisruptionsintrainingandreadi-nessthatoftenaccompanytheintroductionofnewequipment.Currently,heDepartmenthasimpor-

tantinitiativesinprogressthatareessentialtothemodernizationofourorcesfromweaponys-temsocommand,control,ommunications,nd intelligence(C 3I)programs.Finally,heepartmentasndeavoredoachieveabalancedmixofactivean dreserveforceswhichelpsoldownostshilemaintaining strength.

7/30/2019 A 533401

42/105

30 PartVDefenseComponents NUCLEARORCESNDTRATEGICEFENSE

NUCLEARFORCESANDSTRATEGICDEFENSE NucleareterrenceolicyNuclearweaponshaveplayed rucialolenU.S.nationalstrategyfo rmorethan40years,andtheywillontinueodoo.nadditionode-terringnuclearwar,heseystemsontributeodeterrenceofconventionalggressionagainsthe UnitedStatesanditsallies.

TheUnitedStatesmaintainsnuclearforcesthatarecapableofretaliatingeffectivelyagainsttheSo-vieteadership'smostvaluedssets.operformtheirmission,U.S.nuclearforcesmustnotonlybeableourviveannitialattack;heymusthavesufficientaccuracyandyieldtodeliveran effectiveretaliatoryesponse,andheymusthaveeffectivemodesofdeliveryandffectiveystemsorom-mandandcontrol.

StrategicOffensiveForceStructure( InventoryofWarheads) Chart6

100

0) u 60

S 40Ea0-

ICBM Aircrafta SLBM

81 83 85 87 89 91 93 95 97 81 83 85 87 89 91 93 95 97 81 83 85 87 89 91 93 95 97FiscalYear FiscalYear FiscalYear

ISmal lCBM|MinutemanII|Peacekeeper]MinutemanIMinutemanMIA ITitan2 SRAM-IIALCM SRAM-A GravityBombs [TridentD-5jPoseidonC-3 JTridentC-4PoseidonA-3 PoseidonC-4

Representsweaponswhichcouldel oadedonal loperationalombers. Doesotepresenttheloadingthatwouldbe usednderaSTARTagreement

7/30/2019 A 533401

43/105

PartVefense omponentsNUCLEARORCESANDTRATEGICDEFENSE1

Theoviettrategicuclearorceposturee- mainstrong.heSovietnionsxpectedocontinuepursuing vigorousmodernizationpro-gramvenafterheU.S.nd .S.S.R.oncludeatrategicarmseductionreaty.oday,heSo-vietUnionisfieldingsimultaneouslytwonewinter-continentalballisticmissiles( ICBMs)andamod-ernizedariantfheS-18,wotrategicub -marinesan dheirassociatedubmarine-launchedballisticmissiles(SLBMs),andwonewbombers.Theovietslsoaveursuedggressivelydecade-long program of nonstrate