DEPARTMENT OF THE NAVY FY 2015 PRESIDENTS BUDGET

Rear Admiral William K. Lescher, USN Deputy Assistant Secretary of the Navy for Budget

March 2014

Strategic Foundation

National
Guidance

DoD
Guidance
Defense Planning and Programming Guidance

SECNAV
Guidance

CNO CMC

Guidance

CNO CMC

Guidance

Tenets Warfighting First Operate Forward Be Ready

10 Primary Missions Rebalance to Asia-Pacific Region Protect Homeland

Department of the Navy Priorities

People Platforms Power Partnerships
Five Pillars
High Quality People Unit Readiness Infrastructure Sustainment Capability to meet strategic Equipment 2 guidance Modernization

Engage Joint Force of Globally 2020 Project power and win decisively

Where it Matters, When it Matters Global Engagement Navy Marine Corps 323,561 active strength 195,801 193, 790 active active strength strength on a Daily Basis 3,881 mobilized reservists
Battle Force Ships: 289
42,514 Sailors deployed afloat
Deployed: FY2014/ 19/ 23 Avg Total: 289/ 309/ 316 Deployed: 113/ 127/ 124

2,221 2,245 active reserves 1,412 2,216 activated reservists

37,400 Total deployed: 39,400 6,200 Total Afghanistan: 6,300

4,650 Marines deployed afloat

48 Ships

NORTHCOM: 100 1,000 EUCOM: 3,100 3,650 Other CENTCOM: 3,700 SOUTHCOM: 150 100

1CSG 1 ARG/MEU 2 BMD

31 Ships
1 Amphib 1 SSGN

187 Ships

AFRICOM: 1,000 PACOM: 25,300 1 Amphib 1 SSGN

20 Ships

1 CSG 1 ARG/MEU 2 BMD

1 CVN 1 ARG/MEU 1 BMD 2 SSGN

1 Ships

2 Ships

Operations Amphib Operations Exercise/TSC

Total: 291 Total: 289 Deployed: 106 Ships Deployed: 104 Ships
3

Department of the Navy Topline FY 2002-2019 (CY 2014)

200 180 160 140 120 100 80 60 40 20 0
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 Military Personnel Military Construction Operation and Maintenance SMOSF Procurement Estimated OCO Research and Development USN Programmatic Priorities:
Sea-based strategic deterrent Forward ready forces Capability and capacity to win decisively Critical afloat and ashore readiness Asymmetric capabilities Relevant industrial base
BCA 2023 -25%

-21%

USMC Programmatic Priorities:

Ready Force, forward postured for Crisis Response Critical Fifth Generation Aviation (F-35) Littoral/Land Maneuver Capability (ACV)

PB15: Hard Choices; Innovative Approaches; Balancing Risk

Department of the Navy Topline FY 2002-2019 (TY)

Total Funding (TY) Baseline Funding (TY)

FY02 $101.7 $101.7

FY03 FY04 FY05 $126.3 $123.5 $133.6 $116.8 $118.4 $120.9

FY06 FY07 $144.3 $151.6 $127.9 $127.2

FY08 $164.9 $139.2

FY09 $166.8 $148.1

FY10 $177.1 $156.1

FY11 $176.8 $156.1

FY12 FY13 FY14 FY15 $174.6 $163.1 $163.7

FY16

FY17

FY18

FY19

$158.3 $151.6 $149.8 $148.0 $159.5 $161.2 $163.7 $165.9

FY15-19 -$38.1B (to PB14)

180 160 26 10 1 17

21

21

16

0 12

2 14

-4.0 -15.1

-5.1

-6.2

-7.7

BCA

140
Billions of Dollars

120

5 47

13 48

17

25

100
80 39

44

54

52

59

64

70

65

65

60

59

56

64

65

66

66

60
40 20

33
30

38

43

35

36

37

40

42

42

46

47

48

43

47

50

51

51

52

35

36

37

37

38

40

42

44

45

46

44

45

45

45

46

47

48

0
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19

MilPers
Numbers may not add due to rounding

O&M

Investment

OCO

(FY 2009 $1B TY)

ARRA

(FY 2013 $0.4B TY) (FY 2104 $2.2B TY)

SMOSF

Summary by Appropriation Group

FY 2015 Base Budget O&M: $46.8B
Ship Ops & Maint $11.2 Aviation Ops & Maint $8.3 Base Ops & Support $6.8 Marine Corps O&M $5.9 Combat/Weapons Support $4.8 Service Wide Support $4.7 Training and Education $1.7 Reserve O&M $1.3 Environmental Restoration $0.3 Mobilization $1.7

FY15: $148.0B
32% 25%

Procurement: $38.4B
Ships Aircraft Weapons Marine Corps Ammunition Other Navy Procurement $14.4 $13.1 $3.2 $1.0 $0.8 $6.0

R&D: $16.3B MilPers: $45.0B

Basic Pays Housing Allowance Retired Pay Accrual Health Accrual Reserve Personnel Subsistence Allowances Special Pays Other $18.8 $7.4 $5.9 $2.0 $2.5 $2.2 $1.1 $1.6 $3.5

31%

11%
1%

Infrastructure: $1.5B
MILCON BRAC Family Housing $1.1 $0.1 $0.4

Basic Research Applied Research Advance Tech Dev Adv Component Dev System Dev & Demo Management Support Ops Systems Dev

$0.6 $0.8 $0.6 $4.6 $5.4 $1.0 $3.3

6
Numbers may not add due to rounding

Military Personnel
Navy Personnel Strength
Aligning the Force
FY15 Active end strength 323,600 o o Reduce manning gaps at sea, improve sea/shore flow Investing in Career Sea Pay, Career Sea Pay Premium -

Marine Corps Personnel Strength

Focusing on forward presence and crisis response
FY15 Active end strength 182,700 o o Includes Marine Corps Embassy Security Guard plus-up Remaining agile and ready for a full range of contingencies

FY15 Reserve end strength 57,300

FY15 Reserve end strength 39,200

330,000 325,000 320,000 315,000 310,000 305,000 300,000 295,000 290,000 FY13 FY14
Actual

200,000 190,000 180,000 170,000 160,000

FY15

FY16
PB 14

FY17
PB 15

FY18

FY19

FY13

FY14
Actual

FY15
PB 14

FY16
PB 15

FY17

FY18
Base + OCO

FY19

Civilian Personnel
FTE
250,000 200,000 150,000 100,000 50,000 FY13 FY14 FY15 Navy Marine Corps 191,959

*FY13 207,869

FY14 212,798
22,216

FY15 215,014
23,055

Total Department of the Navy By Type Of Hire Direct Indirect Hire, Foreign National By Appropriation/Fund Operation and Maintenance Other (FHOPS/RDTEN) Working Capital Funds

FY13 FY14 FY15 207,869 212,798 215,014

22,942

196,710 201,339 203,462 11,159 11,459 11,552

184,927

190,582

127,656 130,436 133,643 1,748 2,010 1,936 78,465 80,352 79,435 207,869 212,798 215,014

*NOTE: FTE total for FY 2013 does not include approximately 3,200 FTEs due to 6 days of furlough.

FYDP FTE Profile:

FY15 FY16 FY17 FY18 FY19 215,014 214,121 212,326 210,252 208,668

Management Headquarters: 20% reduction over the FYDP begins with the elimination of 328 HQ FTEs in FY15. Ship Maintenance: Continued focus on ship maintenance (including nuclear manning). Shipyard Firefighting Capability: Increase to strengthen fire emergency response capability.
8

FY15 Baseline Readiness Metrics

Ship Operations
45 days/qtr deployed
($B) 6.0 5.0 4.0 3.0 2.0 1.0 0.0 FY13 FY14 FY15 4.7 3.3 3.9 4.0 2.0 7.0 6.3 7.2 0.6 1.6 6.0

Flying Hour Operation

($B) 10.0 8.0

Marine Corps Ground Equip

83% of projected maintenance funded in FY15
($B)

20 days/qtr non-deployed

Navy T-Rating 2.5 Marine Corps T-Rating 2.0

0.8
0.8 1.9 0.6

0.6 0.4 0.2 0.2 FY13 FY14 FY15 0.0

4.7 5.1

0.4

0.0

0.2
5.2

0.2 FY15

FY13

FY14

Ship Depot Maintenance

($B) 8.0 7.0

Aircraft Depot Maint/Logistics

($B) 1.6 1.4

Base Support
($B) 10.0 9.0 8.0 7.0 6.0

80% of projected maintenance funded in baseline

80% of projected ADM requirement funded

0.2

Navy 70%/USMC 75% of facility sustainment model

0.2 0.7

6.0
5.0 4.0 3.0 2.0 1.0 0.0

1.3 2.7

1.2 1.0 0.8

0.2

6.2

5.7 4.1

5.3

0.6 0.4 0.2 0.0

1.2

1.3

1.3

5.0 4.0 3.0 2.0 1.0

6.4

6.0

3.2
FY13

2.5
FY14

2.7
FY15 9

FY13

FY14

FY15

FY13

FY14

FY15

0.0

NAVY BASE

USMC BASE

OCO

Shipbuilding Procurement Plan

FY14 CVN-21 SSN-774 DDG 51 LCS LHA(R) T-ATF MLP/AFSB T-AO(X) 0 2 1 4 0 0 1 0 FY15 0 2 2 3 0 0 0 0 FY16 0 2 2 3 0 0 0 1 FY17 0 2 2 3 1 2 1 0 FY18 1 2 2 3 0 1 0 1 FY19 0 2 2 2 0 1 0 1 FYDP 1 10 10 14 1 4 1 3

SSN 783

New Construction Total QTY

LCAC SLEP Ship-to-Shore Connector SC(X) (R) (LCU Replacement) Moored Training Ships CVN RCOH* Total Shipbuilding QTY

8
4 0 0 0 0

7
2 2 0 1 0

8
4 5 0 0 0

11
4 5 0 1 0

10
4 8 1 0 0

8
0 11 2 0 0

44
14 31 3 2 0

DDG 51

12 12 17 21 23 21 94 Total Shipbuilding includes all new construction, RCOH, SLEP or conversion in SCN, R&D and FY14 NDSF, as well as other related line items including Service Craft, Outfitting and Post Delivery. *Pending FY16 Decision

LCS (Independence)

LCS (Freedom)

CVN 78

10

Aircraft Procurement
F-35C (CV JSF)
FY14 Fixed Wing F-35B (STOVL JSF) 6 6 9 14 20 20 69 FY15 FY16 FY17 FY18 FY19 FYDP

KC-130J

F-35C (CV JSF)

F/A-18E/F EA-18G E-2D AHE P-8A (MMA) C-40A (USMC) KC-130J (USMC) UC-12W Rotary Wing AH-1Z/UH-1Y VXX CH-53K (HLR) MV-22B MH-60R MH-60S UAV MQ-8 (VTUAV) MQ-4 Triton UAS STUAS (NAVY) Training T-6A/B (JPATS)

4
0 21 5 16 0 1 1 21 0 0 19 19 18 2 0 0 29

2
0 0 4 8 0 1 0 26 0 0 19 29 8 0 0 0 0

2
0 0 5 15 1 1 0 28 0 0 19 0 0 0 4 0 0

6
0 0 6 13 0 2 0 26 0 2 18 0 0 0 4 1 0

10
0 0 5 13 0 1 0 26 0 4 4 0 0 0 4 2 0

16
0 0 5 7 0 1 0 27 6 7 4 0 0 0 4 5 0

36
0 0 25 56 1 6 0 133 6 13 64 29 8 0 16 8 0

MV-22

MH-60S

TOTAL

162

103

84

92

89

102

470

11

10

Weapons Procurement
AIM-9X
Ship Weapons TACTOM SM6 RAM ESSM MK 48 HWT MK 48 HWT MODS MK 54 LWT MODS LCS SSMM 196 81 66 53 0 108 215 0 225 44 212 108 616 59 500 0 0 0 100 110 90 104 0 44 150 0 167 0 200 116 0 14 0 0 0 0 0 125 90 89 8 40 216 0 215 138 200 138 0 3 0 0 0 0 0 125 90 89 19 44 216 0 212 154 0 296 0 3 0 0 30 90 0 125 116 73 31 52 216 200 201 233 0 356 0 3 0 0 40 750 0 125 116 94 47 51 216 200 200 274 0 358 0 3 0 189 40 750 100 610 502 449 105 231 1,014 400 FY14 FY15 FY16 FY17 FY18 FY19 FYDP

AARGM

Aircraft Weapons
AIM-9X AMRAAM JSOW C AARGM HELLFIRE* SOPGM* Maverick* JAGM OASUW SDB II 995 799 400 1,264 0 26 0 189 110 1,590

SM 6

RAM

*FY14 OCO included: 270 Hellfire, 500 Laser Maverick and 9 SOPGM

12

11

Marine Corps Procurement

Major Combat Systems ($M) FY13 16 34 17 26 Guided Missiles & Equipment Ground Base Air Defense (GBAD) AAWS-Medium MOD Kits (Missiles) G/ATOR RQ-21 Combat Support System Common Computer Resources Command Post Systems Radio Systems Radar Systems Intelligence Support Equipment Support Vehicles Commerical Cargo Vehicles HMMWV Family of Tactical Trailers CAC2S JLTV Tactical Fuel Systems Power Equipment Assorted Material Handling Equipment EOD Systems 14 6 28 0 0 Engineers & Other Equipment 71 69 36 264 22 63 37 83 4 9 9 7 31 1 23 0 0 11 57 10 12 8 13 29 42 0 14 Communications & Electrical Equipment 23 212 33 126 135 51 3 109 84 64 102 71 2 34 38 65 20 44 16 66 42 0 67 31 0 5 89 71 FY14 32 38 20 6 FY15

G/ATOR
AAV PIP

Weapons and Combat Vehicles 17 22 7 78 Mod Kits (Armor/Weapons) Weapons and Combat Vehicles LAV PIP

HMMWV

RQ-21

JLTV

13

12

R&D Investment
$15.5B 18.0 16.0
Billions of Dollars

$15.0B

$16.3B
CH-53K Stallion

Major Systems ($M) Aviation

Joint Strike Fighter (F-35) CH-53K

FY13 FY14 FY15

1,281 536 46 856 1,029 462 94 573 388

14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0

S&T

Executive Helo Development

Shipbuilding
Ohio Replacement Program Virginia Class SSN 506 1,081 1,219 81 194 158 84 122 125 148 86 205 145 123 53

12.4

12.0

13.3

AMDR CVN 78 Surface Ship Torpedo Defense

Unmanned

Electromagnetic Railgun

MQ-4C Triton UCLASS

613 99 128

375 122 21

498 403 36

1.1 2.0 FY 2013

0.9 2.1 FY 2014

Management

1.0 2.0 FY 2015

Development

NUCAS - D

USMC
Amphibious Combat Vehicle G/ATOR 83 70 123 78 106 99

JSF: Maintains STOVL IOC in FY 2015 and CV IOC in FY 2019. Ohio Replacement: Supports start of construction in 2021. UCLASS: Supports operational capability in 2021. Executive Helo: Supports start of SDD with Milestone C scheduled for FY 19.

14
Numbers may not add due to rounding

13

Military Construction & Family Housing

15

14

FY 2015 Opportunity, Growth, and Security Initiative

Current force - Readiness
Aviation logistics; and Depot & Organizational-level maintenance Marine Corps logistics & training Shipyard recapitalization Improve T-AKE operating status

Future force Key Modernization

Procure P-8A, E-2D, C-40, H-1, KC-130, C-12, STUAS

Improve Facilities
Restoration & Modernization Sustainment Military Construction Demolition
16

15

Secretary of the Navy Priorities

People Power Platforms Partnerships

Presence

Our presence can deter our adversaries and reassure our allies, and it provides the critical backing needed to make diplomacy work. 17 Ray Mabus, Secretary of the Navy 16

For more Information

Fully searchable justification material available at: http://www.finance.hq.navy.mil/fmb/PB/BOOKS.htm

2015

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