DEPARTMENT OF THE NAVY

CHIEF OF NAVAL OPERATIONS 2000 NAVY PENTAGON WASHINGTON DC 20350 1 000

March 3 I, 20 14 The llonorable Howard P. "Buck" McKeon Chairman, Committee on Armed Services House of Representatives Washington, JJC 20515 Dear Mr. Chairman: Thank you for your letter of February 14, 20 14 requesting an unfunded priority list for the Navy. I am also providing this letter to the congressional defense committees pursuant to the requirements in section 1003 of the National Defense Authorization Act for Fiscal Year 2013 (P. L. 112-239). The enclosure provides Navy' s FY 2015 unfunded priority items to fullill a validated requirement or combatant commander priority should funds above those already requested in the FY 201 5 President's Budget (PB-15) become available. Thi s list also includes readiness items that were degraded due t~ rv 2013 sequestration and reduced FY 201 4 funding, t<>r which additional FY 2015 funding will accelerate improvements that are proposed more gradually in PH-15. My li st includes items in the foll owing areas: Maintenance- Increases activity at depot maintenance facilities to accelerate recovery fhm1 sequestration, improve operational availability of fl eet aircraft, and enable Navy to meet the mandated capital in cstment of 6% across all shipyards and depots. Afloat Readiness - Provides impro ed operational flexibility and support to OPLAN and presence req uirements. Critical Spares - Improves availability of critical aviation spares to ensure aircra11 arc deli vered' ith the proper level of logistics support. Shore Readiness - Particularly degraded hy sequestration, arrests and improves deteriorating faciliti es and adds resources lor sustainment, restoration and modernization of installations. Modernization - Accelerates critical capabilities of key weapons systems to the Fleet in order to ensure the United Stales maintains technological superiority over potential ad ersaries; includes aviation assets (e.g., P-8A, E-2D, EA-180 ). Manpower/Training - Increases training support to meet prescribed readiness levels, improves manpower management systems, and addresses shortfalls for recruitment.

While the im cstment presented here arc important, they are not of a higher priority than items in our PR- I 5 budget submission. Consequently, I request funding of items on this list not come at the expense of the FY 2015 budget request. I ha e not included spcci ric funding in FY 2015 for the USS GEORGE WASHINGTON (CVN 73rs refueling overhaul. This unfunded transcends FY 2015 - it L a Future Year Defense Program (FYDP) requirement. Retaining this aircrafl carrier would require $7 billion across our FYDP. Thus the decision to refuel or. inactivate CVN 73 is dependent upon the fiscal outlook in 1 -Y 2016 and beyond, and whether we will be forced to return to sequestration levels. A similar letter has been sent to Ranking Member Smith, as well as Chairwoman Mikulski; Chairmen I.evin, Rogers, Durbin and lrelinghuysen ; and Ranking Members lnhofe, Lowey, Shelby, Cochran and Visclosky. Irt can be of further assistance, please let me know. Sincerely.

~~:= a
Admiral, U.S. Navy Enclosure: Navy 's Fiscal Year 2015 Unfunded Priority List

Navy's FY 2015 Unfunded Priority List

Maintenance The maintenance items listed below increase activity at depot maintenance facilities to accelerate recovery from sequestration, improve operational availability of fleet aircratl, and enable Navy to meet the mandated capital investment of 6% across all shipyards and depots. The funding wi II allow for optimization of the aviation repair workload within the capacity of the repair depots. Achie ing this balance will result in a reduction to the FY 15 engine and airframe backlog, ultimately supporting higher aircraft Mission Capable and Full Mission Capable rates. Funding also supports organizational level maintenance, enhancing tactical repair of aircraft.
Maintenance Fund FHP 0 -Level Maintenance(1A1A/1A2A) Fund Add.itional Aviation Depot Maintenance Fund Shipyard Recap to NDAA levels Additional SCN Outfitting Funding FY15 ($M)

$ $ $ $

68 136

104 14

Afloat Readiness The anoat readiness items listed below provide improved operational flexibility and support to OPLAN and presence requirements. Restoration of Combat Logistics Force platfonns and operational steaming days will ensure longer endurance of deployed forces better material support for underway repair, and enhanced self-sustainability. JHSV manpower and steaming days are also included to provide an additional platfonn to meet COCOM and emergent operational requirements.
Afloat Readiness Fund T-AKE's to Full Operational Status Joint High Speed Vessel Operations Fund CLF steaming days Aviation Logistics (1A9A) FY15($M)

$ $ $ $

72

10 13

148

Critical Spares The critical spares listed below improve availability of outfitting spares to ensure aircraft are delivered with the proper level of logistics support and reduce risk in our aviation spares accounts. Ultimately, this will lead to higher Full Mission Capable rates, enhanced safety of personnel, and more flexibility during training, simulation, and deployed operations.
Critical Spares
Fund Additional Spares (APN-6) FY15($M)

178

Shore Readiness Navy took significant risk in shore readiness during sequestration in order to support deployed operations and afloat readiness. The items below arrest and improve deteriorating facilities, and restore ashore programs and requirements that were particularly degraded by sequestration. The military construction projects will enhance fleet support and conduct critical repair of selected

shore facilities. Family housing projects will ensure family suppo11, improving quality of life for Navy personnel. Long-delayed demolition and previously-approved but not executed BRAC actions are also requested.
Shore Readiness Berthing Barge Improvements Reserve Remote Computer Access Solution Base Operating Support Enhancements Fund Unaccompanied Barracks NCIS Polygraphic Support BRAC Funding (previous rounds) Fund Facilities Demolition from FV13/14 MILCON Additions Facilities Sustainment for Major Projects Family Housing Construction Accelerate Facilities Demolition Program Accelerate critical MILCON Projects into FV15 NAVFAC Environmental Support Environmental Restoration Actions Buyback FY13 sequestration cuts to Facilities Recapitalization Flagship Institution Recapitalization Reductions Fund Facilities Sustainment to 90% of Model Planning efforts for oil spill/natural resources Improve Facilities Conditions with OMN RM investment Fund Facilities Sustainment to 100% of Model FV15 ($M)

$ $ $ $ $ $ $ $
$

5 10 41 75 4 40 106 519 215

s s s

77
265 589 4 101 461

$ $ $ $ $ $

44
216 6 801 265

Modernization Modernization is critical in order to maintain superiority over existing and emerging threats. The difficult decisions necessary under PB-15 funding levels necessitated delaying validated modernization requirements. The items below will accelerate critical capabilities to the fleet, remediate cyber issues and reduce risk in Navy's ability to support the DSG. Modernization spans a multitude of procurement categories to include ships aircraft, and weapons. The 22 additional EA-18Gs would enJ1ance Navy' s ability to support the Joint Tactical Airborne Electronic Attack (AEA) capability. Ongoing analysis by DoD and the DoN indicate a larger squadron size is needed to maximize the AEA capabilities and reduce risk in a Joint major contingency operation. An additional 22 EA- 18Gs would allow the carrier air wing electronic attack squadron to increase from five to seven aircraft per squadron, reducing the wartighting risk in the Joint Force's ability to operate in future complex electromagnetic anti-access/areadenial environments. Additional details can be provided in a classified forum.

Modernization P-SA Rephase APN - 1 to 16/9/13/11/7 Aegis OMN/OPN OPN funds for DOG Modernization Program Naval Integrated Fire Control Counter Air Wholeness Fund Additional Torpedo Maintenance (OMN) Battle Force Tactical Network (BFTN) Multi-functional Info Distribution System {MIDS) Procure two C-40A aircraft Procure 1 Additional E-20 Fund E-2D Naval Integrated Fire Control -Counter Air Testing Procure 22 EA-18G aircraft T-45 Service Life Extension Program Procure 3 STUAS and Associated Spares Procure C-40 in FY151ost due to sequestration H- 1 Program (APN -1) (Procures 1 tail) C-12 (APN -4) (Procures 1 tail) KC-130J (APN -4) {Procures 1 tail) V- 22 Tanker Capability {ROTEN) H- 1 Electrical Power Improvement (ROTEN) LCAC SLEP Funding CH-53E Smart Multi-Function Color Display Blue Force Situational Awareness Tool AV-8B Link-16 Tactical Datal ink AV-8B LITENING Gen4 upgrade AV-8B DACA lnteroperability MAGTF EW Improvements USMC Aviation Commitment to GATOR Block 4 V-221mprovements KC- 130J Block Upgrade USMC F-181mprovements USMC H-11mprovements UHF Comm Relay for RQ-7B CH-53K Reliability Improvements Procure (1) H- lin FY15 UH-lY Structural Improvements (APN -5) KJ Block Upgrade A+B Kits (APN -5) ORT Cyber Remediation (CANES) Navy Cyber Warfare Development Group Info Sys Sec Prgm (ISSP)/Comp Network Def (CND) ORT Cyber Remediation (CND/Switches) OPN Funding for SQQ-89 for 15 CGs Commercial Broadband Satellite Program OPN

FY15 ($M)

$ $ $

1,125 12

66
2 11 7 10 190 146 11 2,142 20 51 98

$ $
$

$
$

$ $ $ $ $
$ $

30
15 75 15 14 83 8 12

$ $
$ $

$
$

$
$ $

19
36

$ $
$

9
42 10 32 37 71

$ $ $ $ $ $ $ $ $ $ $
$ $

13
3 5 30 6 37 46

3
14 78 21 11

$
$

Mode rnlzatlon (continued) Ship's Sig Exploit Equip and GRAYWING Advanced Tactical Data link System (ATDLS) Autonomous Underwater Vehicle {LBS-UUV) Fund Additional Man Tech/Tech Insertion Additional ROTEN for SM-2 Fleet Firings Aegis RDT&E Funding restoral ROTE funds to Strike Force lnteroperability {SFI) Environmental R&D Programs AMNS Near Surface Capability ROTEN Funding Investment Persistent Littoral Undersea Surveillance Next Gen Jammer Inc II Development Fund Coop Eng Cap (CEC)/Ship's Self- Def Sys (SSDS) Ship's Sig Exploit Equip Mods - Adv. Capabilities Accelerate Development and Procurement ofTB-29X Accelerate Multi-star Enhanced Prelaunch for DSLE Classified Issue (S& T) Fund Additional Parrotfish Research and Development Fund Additional Navy Dive R&D Fund Littoral Surveillance Radar System (LRSR) Land Ship Dock (LPD) 17 Class Wholeness Ohio Replacement Program ROTEN Reduction LCAC Post SLEP Sustainment Procure and sustain additional Low Profile Photonics Mast Fund SSBN Command and Control System Modernization Procure Additional Low Cost Conformal Arrays (LCCA) Procure 83AIM-120D Funds AIM-9X Blk Ill R&D Fund Joint Standoff Weapon (JSOW) Operational Testing Ship's Self Defense System (SSDS) Classified Issue 3 Fund SSGN Attack Weapons System Shortfall AMNS Neutralizer Procurement Fund JDAM Assault Breaching System(JABS) Test & Eval Fund Additional Standard Missile OMN Fund Additional Rolling Airframe Missile (RAM) OPN Fund Additional AIM-9X OMN Fund Marine Mammai/Quickstrike Mine Level of Effort

FY15 ($M)

$ $ $ $ $ $ $ $
$ $

13
2 6 18 9 36 3 5 8 9 12 5 10 9 9

$
$

$ $ $ $ $ $ $
$ $

40
4 1 6 35 24 16 17 9 18 62

$ $
$ $ $ $

34
4 15 17 17 7

$
$

$ $ $ $ $ $ $ $

11
8 4 3 4

Manpower/Training The manpower and training items listed below improve specialized training for sailors and units required to meet prescribed readiness levels and funding for the travel associated with various type of training. Also included are requests for additional support for manpower management systems as well as funding to address shortfalls in adve11ising programs needed to recruit our country's best and brightest.
Manpower/Tral nl ng Range Capability Support and Fleet Synthetic Training Training Travel Funds Increase Common Core Training expansion (Navy e-Learning) Mobile Small Arms Familiarization Trainers (FATS) Fund Submarine Training Wholeness KC-130J Fuselage Trainer (APN-4) IT N1 Legacy Restoral Electronic Military Personnel Record System Business Process Re-Engineering PERS/PAY MOD (NSIPS) Increase Temporary Duty Under Instruction (TEMDUINS) Fund additional Bureau of Naval Personnel (BUPERS) on -line Fund Billet Based Distribution (CMS-ID) Advertising Curriculum Reengineering Training 2020 Electronic Classrooms Data Center Sustainment My Navy Portal (MNP) Authoring Instructional Materials (AIM) Tool Recruiting Systems Modernization(NRIS/ARM/Pride) Increased Support to Manpower and Training Establishment Maritime Operational Planner Course FY15($M)

$ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $ $

28 25

5
0.2

9
12 27 2

5 4
20 2 2 37 10 10 10 10 10 10 10 10 2