ROVIDING THE
IGHT
ORCE FOR THE
ATION
ODAY…
HILE
REPARING FOR THE
NCERTAINTIES OF
OMORROW
6 February 2006
Rear Admiral Stan Bozin
1 o/fmb3lib/07/PB/rollout/PB 07 Press brief_06 Feb

Our budget resources are aligned to support both present responsibilities and future capabilities.
-
-
-
-
-
-
2
2

We are postured worldwide, providing the right force for the Nation.
93 ships deployed (33% of total)
• ROOSEVELT CSG – Arabian Gulf
• REAGAN CSG – Philippine Sea
• NASSAU ESG – Indian Ocean
• TARAWA ESG – Pacific Ocean
135 ships underway (48% of total)
357,692 active strength
37,454 on deployment
• In CENTCOM 21,226
4,959 activated reservists
Navy-Marine Corps Team
Forward deployed and ready
Second Marine Expeditionary Force (II MEF) finalizing redeployment from Iraq AOR, I MEF in the process of relieving II MEF - 27,465
III MEF assisting in the Pakistan earthquake relief efforts (235), also have forces in Afghanistan (1,084)
• In CENTCOM 29,411
179,366 active strength
7,121 activated reservists
3
(data as of 3 February 06)
3

The FY 2007 DON budget shows a continued increase in investment projected over the
Future Years Defense Plan. Supplementals continue to relieve pressure on the baseline budget.
160
140
120
Billions of Dollars
100
80
60
40
20
0
*$111.5
*$117.6
12 6
*$119.4
14
*$122.9
10
$127.3
$135.2
45
34
33
48
35
35
48
35
37
51
35
37
52
37
38
59
37
39
$143.7
$148.1
$151.6
65
38
40
67
39
42
69
40
43
FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11
MilPers O&M Investment Supplemental/Transfers
*Totals do not include supplemental costs.
4
4

The FY 2007 budget is up in every title except Research & Development with respect to the FY 2006 baseline. Procurement is up, especially in ships and aircraft as we recapitalize the fleet.
MilPers +$1.4B
Basic Pays
Housing Allowance
Health Accrual
Special Pays
+$1,161M
+$898M
+$217M
+$67M
Reduced Strength -$972M
Navy Strength 352,700 to 340,700
Marine Corps 175,000 Baseline
$
FY06: 122.9
FY07: 127.3
+4.4B* O&M +$2.1B
Price Growth
Fuel Prices
Weapons Support
Marine Corps Support
+$900M
+$780M
+$140M
+$90M
Rotational deployed presence
MILCON +$0.5B
BRAC 2005
Family Housing
MILCON
+$443M
+$127M
+$18M
Achieving Efficiencies via BRAC
Procurement +$2.2B
Aircraft (+31)
Ships (+1)
EFV (+15)
+$1.2B
+$1.7B
+$0.2B
Transforming Investment
R&D -$1.8B
DD(X)
LCS
VXX
JSF
JTRS
Adv. Hawkeye
-$323M
-$255M
-$239M
-$232M
-$167M
-$117M
MMA
UCAV
+$182M
+$239M
Acquisition Maturation
5
5
*FY06 Total Obligational Authority (w/o Supp) to FY07 President’s Budget

The FY 2007 budget supports a renewed increase in the overall force count, even as new platforms feature a significant capability increase over legacy ships. In addition, the Fleet Response Plan produces greater availability from ship force structure.
Aircraft Carriers
Fleet Ballistic Missile Submarines
Guided Missile (SSGN) Submarines
Surface Combatants
Nuclear Attack Submarines
Amphibious Warfare Ships
Combat Logistics Ships
Mine Warfare Ships
Support Ships
Total
FY05
12
54
34
30
17
17
14
4
99
281
FY06
12
14
4
102
55
33
30
16
17
283
FY07
11
14
4
106
52
34
32
14
18
285
∆
FY06 to
FY07
-1
-3
+1
+2
-2
+1
-
-
+4
+2
Transitioning to a More Capable Force
- Battle force count up from the low point in FY05
- New platforms feature tremendous capability increase over legacy ships
- Deployment/surge practices produce greater availability from ship force structure
Inacts/Activations in FY07:
- 1 CV
+ 4 LPD-17
- 4 SSN 688
+ 3 T-AKE
+ 3 DDG-51
- 3 LPD-4
+ 1 LHD
- 2 MHC
+ 1 SSN 774
- 1 LHA
+ 1 LCS
- 1 T-AO + 1 T-AGOS
6
6

The FY 2007 budget supports the continued development of more capable and efficient technologies while managing our costs, striking the balance between delivering today’s Force and preparing for tomorrow’s uncertainties.
Total Aircraft Inventory
Active Navy and Marine Forces
Reserve Navy and Marine Forces
Total
FY05
3,318
408
3,726
FY06
3,403
390
3,793
FY07
3,415
373
3,788
∆
FY06 to
FY07
12
-17
-5
Transitioning to a More Capable Force
- F/A-18 E/F: 40% increase in combat radius,
50% increase in endurance, 25% greater weapons payload, and 5 times more survivable than F/A-18C
- Helos: Converging to 2 highly common
Navy platforms
- V-22: 2 times the speed, 3 times the payload, and 6 times the range compared to the CH-46E
- MMA: 25% higher availability rate, 30% faster, and 33% higher altitude capability than the P-3
Changes by Type Model Series in FY07:
- 30 F/A-18A/C/D
- 28 S-3B
- 1 SH-60B
- 8 UH-3H
- 1 MH-53E
- 3 HH-1N
- 2 UH-1N
- 3 AH-1W
- 21 CH-46E
- 2 VP-3A
- 10 F-5E
- 2 KC-130F
- 6 Trainers
- 2 AV-8B
- 2 CH-53E
- 6 EA-6B
+29 F/A-18E/F
+39 MH-60 R/S
+8 AH-1Z/UH-1Y
+14 MV-22B
+1 C-37B
+10 F-5N
+5 KC-130J/R
+16 T-45C
Future Platforms
7
7

3.5
3.0
2.5
2.0
1.5
1.0
0.5
0.0
To deliver the right force today, the budget supports operation and maintenance accounts, ensuring that we are able to meet readiness, training, and infrastructure requirements. The impact of rising fiscal pressures within the operation and maintenance accounts will increase risk.
Ship Operations Flying Hour Operations
2.9
FY06
3.2
FY07
5.0
4.0
3.0
2.0
1.0
0.0
4.2
FY06
4.5
FY07
1.4
1.2
1.0
0.8
0.6
0.4
0.2
0.0
Marine Corps Operations
1.1
1.2
FY06 FY07
Base Support Ship Depot Maintenance
1.0
0.5
0.0
4.5
4.0
3.5
3.0
2.5
2.0
1.5
3.8
3.7
FY06 FY07
1.0
0.8
0.6
0.4
0.2
0.0
Aircraft Depot Maintenance
0.9
0.9
FY06 FY07
3.0
2.0
1.0
0.0
6.0
5.0
4.0
9.0
8.0
7.0
2.1
4.7
FY06
2.1
5.6
FY07
8
8

The following new capabilities, funded in the operation and maintenance accounts of the FY 2007 budget, are representative of new joint capabilities and forces outlined in the 2006 Quadrennial Defense Review.
Marine Corps Special Operations Command
Enhances interoperability and provides greater flexibility and increased capability to fight the war on terror.
Riverine Capability
Fills a critical capability gap and provides additional opportunities to enhance partner-nation capabilities and capacity.
Expeditionary Security Force
Provides the ability for the Navy to jointly source current Army and Marine Corps security missions, as well as increases the effectiveness of maritime interdiction operations.
National Maritime Intelligence Integration Center
Increases maritime domain awareness through improved integration with interagency and international partners.
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9

Our people are our strength. We continue to increase performance efficiency through targeted manpower reductions, but total manpower costs continue to rise.
370,000
365,000
360,000
355,000
350,000
345,000
340,000
335,000
365,900
Active Navy Strength
PB05
362,941
360,600
PB06
360,700
352,700
FY05
PB07
FY06
Properly Priced and Sized for the Future
- Increase the warfighting force
• Military to civilian conversions
- Strong retention and effective recruiting
- Additional strength, as authorized in 2006, will be funded through supplemental requests as necessary
- 2.2% basic pay raise, plus targeted pay
Transforming the Force
- Improved training & development processes
- Decommission older manpower intensive platforms
- Increased technology
- More efficient infrastructure manning
- Active/Reserve integration 345,300
340,700
FY07
18 2 , 0 0 0
18 0 , 0 0 0
17 8 , 0 0 0
Active Marine Corps Strength
18 1,0 0 0
18 0 ,0 2 9
Authorized
Actual
179 ,0 0 0 179 ,0 0 0
178 ,0 0 0
17 6 , 0 0 0
Budgeted
17 4 , 0 0 0
FY0 5 FY0 6
175,0 0 0
FY0 7
10
10

The DON is driving towards stability in new ship construction. Across the FYDP the ship count is slightly higher than in last year’s budget (51 versus 48).
SHIPS
CVN 21
SSN 774
DD(X)
CG(X)
LCS
LPD 17
LHA(R)
T-AKE
T-AOE(X)
MPF(F)
MPF Aviation
MPF LMSR
MPF MLP
Intratheater Connectors
New Construction
FY06
-
1
-
-
1 3
1
-
-
-
-
6
-
1
-
-
-
-
-
7
-
1
-
-
FY07 FY08 FY09
1 -
1
1 2
-
2
1 0
1
1
1
3
-
0 1
-
0
1
1
-
5 6
-
-
-
-
-
7
-
1
-
-
1
11
0 1
1 0
1 0
-
-
0 1
FY10
-
1
1
-
5 6
-
1
1
12
0 1
1 0
1 0
-
0 1
-
FY11
-
1
1
1
5 6
-
-
1
14
0 1
2 0
2 0
0 1
0 1
0 1
FY07-11
1
23
1
2
5
5
1
1
2
2
5
0
0
3
51
Sea-Shore Connectors
SSBN ERO
SSN ERO
RCOH
1
-
1
-
1
1 0
-
1
1
-
-
1
-
-
1
1
-
1
4
1
-
-
5
5
1
1 11
11

AIRCRAFT
JSF
F/A-18E/F
EA-18G
MV-22
AH-1Z/UH-1Y
MH-60S
MH-60R
E-2C
E-2D
CH-53X
MMA
ACS
C-40
C-37
T-45
JPATS
KC-130J
VH-71
BAMS UAV
VTUAV
MC VUAV
F-5N
TOTAL
Our aviation recapitalization program remains on track with a procurement quantity increase of 23 percent over the FY 2006 program. The strong ramp continues in the
FYDP both to transform capabilities and reduce platform age.
FY06
-
38
4
9
-
-
-
-
6
0 3
12 5
2
-
-
10
26
12
*5
-
*3 *5
*2 0
9
134
FY07
-
30
12
14
* Funded in RDTEN
5
165
-
-
3 4
1 0
2
-
-
18
26 18
25
-
*1 0
1 0
-
12
24 21
0 4
FY11
33
14
14 10
38 37
1
-
48
8
5 0
1
-
-
4
*2
23
15 26
31
4
4
11 10
-
-
256
FY10
36
22
20
35
3
-
11
-
-
269
-
-
48
6
4 0
1
-
22 23
17 26
30 32
-
4
*2
FY09
32
20
22
30 31
-
-
48
-
1 0
1 5
-
21 23
26
30 31
4
-
-
4
257
-
-
7 11
3 0
FY08
10 8
24
18
19
*3
203
-
-
5 7
2 0
-
-
48
*4
*1 0
2 0
0 4
21 19
26 20
25
-
*4
-
12
FY07-11
109
110
82
136
14
4
43
0
5
1,150
1
12
213
18
0
7
8
106
116
144
2
16
4
12

In FY 2007, research and development investment reflects the maturing of programs and their transition to production.
Critical Aviation Programs
18
15
12
9
$17.1B
2.3
1.0
$18.7B
2.3
0.8
$16.9B
1.6
0.8
Major Systems: ($M)
Joint Strike Fighter
MMA
VH-71
Advanced Hawkeye
EA-18G
CH-53X
UCAV
FY05
2,084
471
536
542
347
99
-
FY06
2,269
950
922
614
394
268
-
FY07
2,031
1,132
683
498
372
363
239
15.7
13.8
14.6
6
3
DD(X)
LCS
Virginia Class SSN
CVN 21
1,120
451
157
350
1,068
574
176
303
794
320
170
309
0
FY05 FY06 FY07
Development Management Science and Technology
C4I
EFV
773
239
1,075
250
1,005
188
Critical Shipbuilding Programs
13
13

Munitions and missiles are being procured to support DON requirements. These programs are stable and mature.
Quantity Procured
Precision Guided
TACTOM
JSOW
JDAM
LGBs
Other Munitions
Trident II
AMRAAM
AIM-9X
Standard Missile
RAM
ESSM
FY06
408
420
3,400
2,601
FY07
350
397
3,400
2,272
FY08
421
421
1,500
2,129
FY09
366
504
1,500
2177
FY10
377
521
1,500
-
FY11
363
546
1,500
-
-
85
159
75
90
116
150
-
174
75
90
108
12
140
107
75
90
108
24
150
120
90
90
108
24
150
114
100
90
21
24
150
122
105
90
-
14
14

The Marine Corps makes its initial procurement of the Expeditionary Fighting Vehicle in
FY 2007. Procurement of HMMWVs are based on peacetime usage; significant funding has been provided from supplemental appropriations for HMMWVs for GWOT.
Quantity Procured
EFV
HIMARS
Joint LW 155
HMMWV
FY06
18
-
75
2,763
FY07
15
6
34
851
FY08
17
-
47
596
FY09
26
-
-
1,211
FY10
42
-
1,143
-
FY11
100
1,095
-
-
15
15

The DoD strategy for family housing reflects a transition to a greater use of privatization. Within the FYDP, costs of implementing the 2005 BRAC exceed savings by $1B. In FY 2010, annual savings exceed annual costs, and the Department begins to see a positive return on investment.
Base Realignment and Closure
$ 1 , 2 0 0
$ 1 , 0 0 0
$ 8 0 0
$ 6 0 0
$ 4 0 0
$ 2 0 0
$ 0
FY0 6
FY0 7 FY0 8
FY0 9 FY1 0 FY1 1
Military Construction Family Housing
90,000
75,000
60,000
45,000
30,000
15,000
0
FY03 FY04
Navy Owned
Navy Inadequate
FY05 FY06
US MC Owned
US MC Inadequate
FY07
Privatized
$2,000
$1,500
$1,000
$500
$0
FY05
Navy USMC
FY06
BRAC Construction
FY07
16

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