1. Naval Aviation Enterprise Overview
My name is Col Carmine Borrelli. I am the Director of Aviation Logistics HQMC and the USMC NAE Executive Coordinator.
Not everyone has the same level of familiarity with the NAE. This brief serves a couple purposes:
Baseline this Boots audience/team about NAE basics
Fulfill a part of VADM Myers, LtGen Robling, and VADM Architzel’s strategic objective 1.0 of the NAE Strategic Plan – to create an Enterprise culture and effectively communicate it.
A quick word about the Boots events. They are not inspections. They are an opportunity to engage leaderships of the NAE to highlight what should be shared with the Fleet and to ask for help…face-to-face.
I’d like to take the next 15 minutes to provide you with a broad brush look at the NAE. I can go into further detail through your questions. Please stop me at any time during the brief.
[next slide]
Presented by: Col Carmine Borrelli
Aviation Logistics Support Branch Head (ASL-1)
and USMC NAE Executive Coordinator 1 1

2. NAE…Bottom Line Upfront
Naval Aviation Focuses on the delivery of combat effects
Naval Aviation Enterprise
Supports the delivery of combat effects…Better, Smarter, Faster
You
The driving force behind the Naval Aviation Enterprise
As a first step in talking about the NAE, clarifying the relationship of the NAE to Naval Aviation and to you is important…
Naval Aviation is about delivering combat effects. Warfighting.
A Cooperative Strategy for the 21st Century Seapower calls for six expanded Core Capabilities:
Forward presence, Deterrence, Sea Control, Power Projection, Maritime Security and Humanitarian Assistance and Disaster Response
Naval Aviation is integral to each of these
The NAE is one important initiative that helps Naval Aviation do what it is intended to do. The NAE supports Naval Aviation readiness requirements. Absent the NAE, information flow would suffer, opportunities for efficiencies would be lost and we would fail to pressurize all aspects of Naval Aviation to become a world-class organization. The Enterprise is not an organization- no single street address, but an unlimited number of street addresses and a way of doing things ISO of Naval Aviation.
[Link] This takes you to an expansion on “Better, Smarter, Faster”
You are what drives the NAE. There is no UIC, no funding line tied to the NAE. It is a construct of people with other jobs that join to work collaboratively, cross-functionally and transparently to ensure that Naval Aviation continues to deliver combat effects efficiently and effectively. You are where the rubber meets the road.
Naval Aviation is critical to national security. Supporting it through improved processes and risk-balanced decisions is essential. The strategic environment will put an even greater demand on the Navy and Marine Corps and Naval Aviation. The fiscal realities will drive us to find ways to improve on how it is done.
[next slide]
Our strategic environment and fiscal realities require us to continuously pursue process improvement…everywhere

3. Naval Aviation Enterprise Mission
Advance and sustain Naval Aviation warfighting capabilities at an affordable cost… today and in the future.
1. . Our actions today matter to ensure that our force is relevant in the future. Controlling costs and gaining efficiencies; improving how we buy things and train; the people we recruit…these are today’s actions that will define our future
- “How” we do that best is through enterprise behavior. Very much an innovative step for the Navy.
To that end, the NAE mission is to advance and sustain Naval Aviation warfighting capabilities at an affordable cost... today and in the future. The people that execute that mission are people in this room-- There are key leaders like [list who is present] and those who make it happen on the deckplate and the flight line
But it is not a Title 10 body…no UIC, no TOA, no ADCON/OPCON
The NAE does not make decisions for Title 10 stakeholders
The NAE informs Title 10 players to help them make informed decisions
How? With processes, procedures and information
It also functions to drive and effect continuous process improvement.
Enterprise behavior is our path to affording today’s readiness and tomorrow’s force.
2. Naval Aviation leadership is committed to enterprise behavior. It calls upon you within the NAE to practice enterprise principles.
3. It is working, producing tangible results
[next slide]
Naval Aviation Leadership is committed to enterprise behavior and the work of the individuals in the Enterprise 3

4. Enterprise Framework
The Naval Aviation Enterprise (NAE) includes over:
193,000 Sailors, Marines, Civilian personnel
3,700 aircraft
11 aircraft carriers
Executes a budget in excess of $40 billion
Providers
and more . . .
Provide Products / Services to Fleet
Generate Sorties to
Mission-Rating
Requirements Met Based on Funding Availability
Fund
Rqmts
Execute
The Fleet
Direct and
Monitor
Fleet Requirements
CNAF / DC(A)
OPNAV / HQMC
Resource Sponsors
The enterprise has evolved considerably since 2004…
- It goes beyond the classic organizations to engage and involve the full spectrum of operational forces, Navy and Marine Corps, provider organizations and resource sponsors.
- The upper LH box quantifies the Enterprise (ROM)
- The NAE is also coordinating with the SWE in supporting the readiness of the L-class, aviation-capable ships in their aviation and embarked Marine missions.
Additionally....This slide illustrates in more detail the functioning of the NAE
- This is an “exploded view” of the NAE
This provides examples of who and what organizations reside at each point of the triangle and their relationship with each other
At the top of the triangle is CNAF and DC, AVN. This is a Navy and Marine Corps enterprise. They direct and monitor requirements … generate sorties to meet the mission.
At the other corners are the Resource Sponsors (HQMC and OPNAV) and providers (NAVAIR, NAVSUP, NAVSEA) who fund requirements and execute requirements, respectively.
Note also that at the center of the triangle is the Fleet. It is the Fleet that the Enterprise serves.
[next slide]
L-class/Aviation-capable ships 4

5. Enterprise Approach Warfighter Consumption-based Stovepipe focus
Traditional
Warfighter
Consumption-based
Stovepipe focus
Less efficient
Less effective
Enterprise
Process/System View
Transparency
Metrics
Accountability
Integration
For us to be successful (and we are), it mandates a common baseline for understanding where we have been, where we are and where we are going.
Traditionally, we are great at winning wars. We’ve thrived on “more is better”. We must continue to be great at winning our nation’s battles, but...
The consumption mindset doesn’t work well in a resource constrained environment. Just as importantly, we cannot think myopically. “What’s mine is mine and what’s yours will become mine” won’t work. Stovepipe thinking is inefficient.
Enterprise behavior is central to the successes we’ve achieved. Core components:
Process view: Understand how the job gets completed– time, resources, and cost are aligned to common goals.
Transparency: Every part of the enterprise has visibility into the entire process beginning to end and the linkages between organizations.
Metrics: Measurements are relevant and linked to full potential.
Accountability: People within the enterprise must hold themselves liable for actions taken and not taken
Integration: Efforts across stakeholders align and permit coordination and collaboration.
[next slide]
Advance and sustain Naval Aviation warfighting capabilities at an affordable cost...today and in the future. 5 5

6. The NAE…One Team, One Mission Is It Making a Difference? YES!
Major difference makers:
Cost Avoidance in the Flying Hour Program
In FY11, there has been a cost avoidance of $201.2M and the recovery of roughly 33,500 flight hours.
Slowed or checked average CPH growth rate
: average growth rate was $241 per hour per year
: average growth rate was - $48 per hour per year
: average growth rate was $148 per hour per year
Reduced USN / USMC aircraft RFT gap
USN: % in Sept09 to 11.7% in Dec10 to 10.2% in Jun11
USMC: 24.3% in Sept09 to 24.5% in Dec10 to 22.4% Jun11
More training time airborne
More money for parts, equipment, labor and fuel
You understand the NAE mission and that the NAE is maturing to a more strategic footing. I’d understand it if your real question was “Is it making a difference…and can you show me?”
While the total numbers for FY11 are still being gathered and analyzed, year to date there has been a cost avoidance of $201.2m and the recovery of roughly 33,500 flight hours. (F/A-18 E/F/G accounted for ~$101M of the $201.2M value). Smart training, efficient scheduling, SORTIE discipline, reduced MTBF, TRR, cost of parts, maintenance, and labor created efficiencies, more hours for the money… Same amount of money with more hours flown. [Example: Told to drive to LA on a tank of gas... BLUF: You do more training in an airborne plane!
From 1999 to 2004, inflation adjusted ACPH cost growth was ~$241 per year. From 2005 to 2008, inflation adjusted ACPH cost growth was a NEGATIVE $48 per year. The challenge continues and isn’t always as successful as we’d like. From , ACPH cost growth was ~$148 per year. It was not growth, but it was not ideal. Fixed costs spread over reduced flight hours as a hedge against OCO withholding, wartime environment flying, excessive FLE, and component costs drove part of this growth. BLUF: Controlling costs means more parts, equipment, fuel and people/contracts!
RFT gap...
USN aircraft average RFT gap from 13.8 % in Sept09 to 11.7% in Dec10 to 10.2% in Jun11. It’s steadily decreasing. These figures do account for the additional gap created by the P-3 red stripe. This gap outside of the P-3s is due to an increase in system degraders, and funding shortfalls in maintenance accounts.
RFT gap progression: In 2006, the RFT gap was 118 RFT sets. It is 72.7 right now and that includes 45.3 P-3C aircraft due to red stripe issues. The benefit to the Fleet is that there were 31 more RFT sets available.
USMC Aircraft RFT gap from 24.3% in Sept09 to 24.5% in Dec10 to 22.4% Jun11.
These numbers are hight, but USMC measures RFT against full PAA vs. Entitlements…so this is a stronger performance than the percentages may indicate on first review.
BLUF: Enterprise actions are putting more shadows on the ramp to fly!
[next slide]
More shadows on the ramp 6 6 6

7. The NAE…One Team, One Mission Is It Making a Difference? YES!
Better manned. Right person in the right job
Squadrons/detachments manned at entitled levels for rating, payband and NEC Fit
Average CVN Rating Fit is 90.4% and average squadron Rating Fit is 89%
Average CVN NEC Fit is 69% and average squadron
NEC Fit is 75%
Implemented MCC in all squadrons
93% of aggregate maintenance qualifications achieved
Of the 81 USMC units, 40 units dual shift
The efforts of CNAF N1 on the manning side, and the TF CFT on the process side, have helped squadrons improve levels of Rating and NEC Fit (entitlement is 90% for rating fit and 75% for NEC fit). TF is now incorporating CVN FIT (entitlement is 90% for rating fit and 70% for NEC fit) for aviation ratings into their process efforts. BLUF: Your unit is better manned. You’ve got the right person doing the right job!
The Maintenance Core Competency (MCC) is a Marine Corps measure of a unit’s ability to conduct dual shift maintenance in all tracked qualifications. Of the full force 44% are capable of conducting dual shift maintenance! Having this dual shift capability allows us to support around-the-clock operations. BLUF: Your unit has people who are better trained to do their job in order to accomplish your mission!
[LINK] These are specific examples germane to this Boots event...
Better trained. More qualified workforce to meet any mission. 7

8. The NAE…One Team, One Mission Basic Levels of Enterprise Engagement
A Marine / Sailor
Deckplate leadership
AIRSpeed practitioner (as function of rate/MOS and job)
Barrier/best practices identification
Dept Head and Junior Officer:
Lead Marines and Sailors
Tactician / Manager
“Fly the Profile”
O-5 Command:
Lead command
Warfighters / warfighter support
Share key messages and themes at squadron-level
Responsible stewards of allocated resources
Barrier identification / removal
Major Command:
Lead command(s)
Warfighting / Fleet focus
Materially participate in NAE activity drumbeat
Resource allocation / CPI
Process discipline (metrics)
Barrier identification / removal
Advocate for the NAE
Flag / General:
Lead Naval Aviation / NAE
Develop NAE strategy
Represent NAE equities in organizational meetings
Participate in NAE strategic communications efforts
Elevate barriers / issues
Everyone has a role in the NAE and the work of the NAE. You are part of Naval Aviation's present and future. Understanding the stakeholders and processes throughout the enterprise as you progress through your careers will help you become better leaders within Naval Aviation. To do what best serves Naval Aviation long term.
This slide describes In VERY basic terms:
The type of Enterprise engagement at five distinct leadership levels
The red boxes identify activities and responsibilities directly tied to the mission and efforts of the NAE
Outside of those red boxes, it captures where the major focus should be for each echelon (in very broad terms and far from all inclusive)
It highlights that the more senior an officer is, the more his/her position overlaps and is related to the efforts of the NAE…the bigger the red box
The individual Sailor and Marine is leading from the workcenter or the frontline. They put to use what the NAE delivers.
They will discover barriers and best practices which will become greenbelt projects for others. The foundation of Enterprise work
At the O-4/JO level, the expectation is that they are not thinking about staying inside budgetary lines or poring over cockpit charts. They are tacticians in a cockpit or production managers, etc. They are operators…But they will understand SORTIE limits, people constraints, seek efficiencies on deck and airborne. [LINK]
At the O-5 command position, a “user” mentality to it; share key themes /messages about the NAE at the squadron-level, take ownership of resources, work the barriers
0-6 Level- Ownership role- Participate in Boots events, Air Boards, Offsites; Manage SPI/CPI/EI. Drive process discipline and actively work barriers.
At the FO/GO and O-6 level, there is a significant engagement with the NAE
The bottom line is as the banner states:
Everyone is engaged in the NAE. It just varies how much. The goal is to have an Enterprise culture in which everyone behaves consistent with enterprise principles. It is not to have young warriors sacrificing warfighting readiness/skills to don a green eyeshade and start counting pennies.
The enterprise culture will benefit all of us in the near term and long term. The NAE doesn't replace what you are doing today. In fact, it will create work through metrics collection, analysis, collaboration, sharing, transparency, and making tough choices. It will drive us to do our job better (not easier). We will become smarter, more efficiently and simply better. It exists to help you manage what we have in Naval Aviation and plan effectively for the future to meet our operational commitments
[next slide]
Everyone engages the NAE…in varying degrees...but everyone benefits. 8 8 8

9. Naval Aviation Enterprise NAE Leadership Intent
“The operational demands on Naval Aviation combined with the fiscal pressures facing our nation are unprecedented in recent history. 
Demand for these forces will not decrease...
We must leverage the collective power of the NAE membership to ensure Naval Aviation is best positioned to meet its requirements as efficiently and effectively as possible.”
This is the final slide
This is a truncated quote taken directly from the NAE Strategic Plan. It is the leadership intent and should leave no doubt that the NAE is about warfighting and producing the readiness to be the most effective warfighters possible.
Demand on Naval Aviation isn’t going away
We have to fund a Better, Smarter way to do business ($350B/10 yrs)
Leveraging the collective power of the NAE is one important tool to get us there
Are there any questions?
VADM Myers- Commander, Naval Air Forces
LtGen Robling- Deputy Commandant for Aviation, USMC
VADM Architzel - Commander, Naval Air Systems Command
Website: 9

10. NAE Boots Site Visit Enterprise Excellence Award
The NAE Boots Site Visit Enterprise Excellence Award, colloquially known as the “Boots Award”, is awarded during Boots events by the senior member of the visiting Boots contingent and recognizes individuals who best epitomize NAE principles and practices.
This award seeks to recognize significant individual contributions of military and government personnel that have demonstrated a keen commitment to enterprise behavior through either very special achievement, or over a long body of work, excellence that merits special recognition and emulation. 10

11. Back-up
BACK-UP
[next slide] 11 11

12. Air Board + HONA/AMSR-1996-2001
HONA: Health of Naval Aviation
AMSR: Aviation Maintenance and Supply Readiness
NAVRIIP: Naval Aviation Readiness Integrated Improvement Program
NAPPI: Naval Aviator Production Process Improvement
Evolution of the NAE
Webster’s definition:
En - ter - prise, n.
An entire organization, including all of its subsidiaries
Inclusive of all systems, processes and users…
NAE-2004 to present
The first step was defining an enterprise. At its most fundamental level, Webster’s captures it well. [Highlighted text for emphasis]
“Entire” = All partners; “All systems, processes” = Transparency; “Control” = Influence; “Risk” = Trust
Enterprise behavior is a cultural shift. It was not an overnight transformation. It was born of problems and ultimately directed by the CNO. We have been on this journey for many years…
Air Board represented first gathering of aviation “enterprise” effort. The next step was...
HONA / AMSR: Spurred by declining readiness (e.g., 70% increase in cannibalizations, aircraft in preservation, 47% MC rate in ACE). HONA (1996) was the preamble to AMSR. AMSR was a three year project ( ) spearheaded by leaders in maintenance, supply and operations. Discovered 19 “areas of concern.”
NAVRIIP: Chartered to address findings from AMSR review. Focused on the “IDTC” bath tub. Involved 17 cross-functional commands.
- Two principles: Process improvement across TMS and single readiness metric (RFT)
- Three CFTs: CFT1 = Readiness; CFT2 = Supply; CFT3 = Planning and Programming
4. Overlapping AMSR and NAVRIIP efforts was the NAPPI initiative. NAPPI was a holistic look – horizontal and vertical. Tailor-made for Theory of Constraints (TOC) and Lean Six Sigma (LSS). It was a disciplined, focused management of the key processes in training SNAs.
5. We established the NAE and the BoD (now called the Air Board) in The set of CFTs under this new architecture included CR, TF, Cost Mgmt, and Acquisition and Life Cycle Support.
- Our current CFT structure includes CR, TF, FC and IRMT
- Membership for the NAE Air Board is drawn from Fleet aviation and key provider organizations.
- All CFTs are responsive to the Air Board. This horizontal representation across the spectrum of Naval Aviation facilitates enterprise behavior.
- NAE expanded its mission to address more than NAVRIIP (e.g., cost, carriers, etc.)
[next slide]
Air Board + NAVRIIP-2001
NAPPI -1998
CEB
Air Board + HONA/AMSR
En - ter - prise, n.
Under the same ownership and control
Involves some level of scope, complication and risk
Air Board 1993 12 12

13. Partnering for a better, smarter, faster combat-ready Force
…now and in the future.
Partnering: Navy-Marine Corps Warfighters, Providers, and Resource Sponsors
Better: Transparency and holistic solutions promote efficient delivery of readiness
Smarter: The best and brightest Sailors and Marines applying best practices
Faster: Continuous process improvements to readiness pillars
Combat-Ready Force: Our purpose and tradition. Warriors fit to fight.
If asked, “What is this NAE thing all about?” the answer is in the blue box at the top of the slide
Taking it just one layer deeper, each term is explained below it
[next slide]

14. The NAE…One Team, One Vision Is It Making a Difference? YES!
The below examples are representative of FRC accomplishments…
MALS-11 enhanced readiness across the flight line by obtaining a depot-level artisan to provide onsite canopy polishing to all MAG-11 F/A-18s. This reduced turnaround time (TAT) from 4 days to 1.5 days and provided a total beyond capability of maintenance (BCM) cost savings of $5,019,784 for FY Following a successful period of over one year, this effort has been replicated at MALS-31.
MALS-11 Avionics reduced the time to reliably replenish from 17 days to 4 days on the Generator Convertor Units (GCUs) by incorporating a full tear down and mini rework process, regardless of discrepancy. Since this process was implemented, the BCM rate was reduced from 42% to 25%, and several GCUs have seen greater than 200 days of time on wing (TOW). The increased GCU availability and reliability directly contributed to increased readiness throughout MAG-11.
MALS-11, in conjunction with the NAVAIR End-to-End Team, worked together to create an integrated design plan for VMFAT-101 with the goal of meeting current and future Pilot Training Requirements (PTR). Through this design, multiple improvement projects were identified to focus on specific areas and are currently in the Define Stage of implementation. In addition, Rules of Engagement were developed to move from a “consumption-based model” to a “demand-based model,” resulting in increased Ready for Tasking (RFT) aircraft.
FRCSW Level 2 developed repair capability on MH-60R ALFS Reel Cable, $130k NAE investment resulted in reduced mean TAT from 225 days to 16 days and BCM cost avoidance of $97,272 per unit, with an average annual demand of 15 units (~$1.5M annually)
F/A-18A-D High Flight Hour (HFH) inspection development.  Purpose: Fleet monitoring to mitigate risk.  Successful HFH inspections allow 600 flight hour extensions.  27 HFH aircraft inspections completed 30 HFH inductions in-work.  TYCOMs inducting as close to 8,000 flight hours as possible to achieve 8,600 flight hour service life goal.
FRCSW Completed 1st Phase of H-60 Common Cockpit Avionics repair capability development, culminating in initial workload induction and a $14M Navy Peculiar STE development cost avoidance by Specifying OEM Equivalent Equipment and Existing Test/Sell-off Procedures.
[back to the slide presentation – arrow in the lower right hand corner] 14 14 14

15. The NAE…One Team, One Mission Where You Can Help
Leadership in Enterprise behavior
Inspire Enterprise practices (encourage and shelter junior personnel)
Be “NAE-smart” (understand the Naval Aviation Vision and NAE Strategic Plan)
Align command goals in support of NAE Strategic Plan
Inform decisions with NAE interests / strategic plan
Represent the NAE equities in organizational meetings and events
Practice transparency in effort
CVW to Type Wing / CVN … MAG to MAW … Leaders to All
Actively participate in the Air Board VTC
Advocate for the NAE
“Fly the Profile”
Right force with the right readiness at the right time (and no more)
Preserve aircraft service life / assets (aircraft life management / FLE)
Awareness of metrics and actionable areas
CPI / SPI … RFT-E … Fit/Fill … TAT / TRR … RFT / RBA ... MCC ... ACC
Give the NAE Leadership feedback
Are there gaps in the NAE Strategic Plan?
How effective is the NAE in supporting your mission?
Are you receiving the support you need?
To bring it closer to home and to the people in this room, this slide talks about how you specifically can help further the NAE efforts.
Your example and engagement will inspire the right behavior. Make junior personnel aware of Enterprise principles without losing their warfighting focus. We want warfighters and subject matter experts in their field…we do not want “accountants” in the cockpit, on the bridge, in the FRCs or the workcenters.
I encourage you to read the Naval Aviation Vision book and NAE Strategic Plan. Both are enlightening.
Aligning your efforts to a well understood Strategic Plan will lead to decisions that represent NAE interests. It will keep us focused on common goals.
Transparency in your work and planning will break down stovepipes within an organization. It will help all involved to understand the linkages between organizations. If the efforts are dovetailed, the team is stronger.
Be an active participant at the Air Boards. Your shared insights can benefit the briefers and others dialed in. Don’t be passive.
“Fly the Profile”
Right readiness in M-Rating, RFT, RFT-E, etc. is how we are able to fight. As appealing as “more” readiness may be, in a constrained environment, more for you is less for someone else
We have to preserve assets. FLE management is the best example. The strike-fighter shortfall is coming and it will grow larger if we are reckless in how we fly our aircraft. This is where the JOs can contribute to the NAE efforts.
Know your metrics and take action where you can.
Feedback
If you have something to contribute, don’t keep it to yourself.
You can help Naval Aviation. The NAE leadership welcomes your feedback.
[next slide] 15 15 15

16. Today’s NAE
You understand the evolution of the NAE. This slide shows you where it is today.
There are three “layers” to the NAE – the EXCOMM, Air Board, and Extended AB
A sub-component of the Air Board is the Air Board Executive Committee (EXCOMM) which is comprised of 10 individuals (12 billets)
It represents a smaller, decision-based leadership quorum within the NAE Air Board with a rapid cycle time.
It includes the leaders of each CFT.
The Air Board is a forum comprised of Flag/General officers and Senior Executive Services leaders charged with solving interdependent issues affecting multiple commands across the enterprise. Note the organizations represented on the Air Board. There are 26 members.
The Air Board is complemented by Extended Members of the Air Board. These are an additional 16 members that participate in NAE discussions of a broader reach.
Critical to NAE’s success is a cross-functional, integrated leadership team focused on resolving issues to improve efficiency and effectiveness.
Who wouldn’t want their bosses in the room to solve a problem? Look who is here today! Look at the membership of the NAE… Can you imagine a problem in Naval Aviation that they couldn’t solve? Is anyone missing? I don’t think so.
Everyone here is a Title 10 stakeholder regardless of the NAE. The NAE creates the forum for these Title 10 authorities to gather, demonstrate enterprise behavior, and make risk-balanced decisions, and drive continuous process improvement!
[next slide] 16 16

17. Strategic Landscape Increasing costs Competing Demands
People
Ops / Training
Equipment
Competing Demands
Global recession
National Debt & Priorities
Baseline & Supplemental Funding Pressure
Persistent Threat
Irregular Warfare
Near Peer Competitors
The strategic landscape is hostile and unpredictable
Many demands for the Nation’s resources
Priorities change with administrations
Principal symposium intent is to engage you and solicit your feedback and perspectives 17

18. The Funding Roller Coaster
WW-2
GWOT
Peace Dividend ??
Cold War
Viet Nam
Korea
Nations propensity to significantly reduce defense spending following conflicts (Peace Dividend of the 90’s)
Cyclical funding is the norm – our professional challenge. We have been here before. Commitment to do it better this time if needed.
Downturns following wartime build-ups
Steady decrease in % GDP since Korean conflict
FYDP / CBO projection uncertainty
If GNP decreases (Global recession) – GNP % will have to increase to maintain current funding levels (dashed line)
Importance and cost of Maritime Security in a Global economy 18

19. Federal Budget Programs
$ in B
6000
5000
4000
Welfare & Other Services
Net Interest
Medicare
Entitlement
Programs
3000
Other Retirement & Disability
2000
Social Security
1000
Medicaid
Discretionary
Programs
Defense
Other Discretionary
1970
1980
1990
2000
2010
2020
2030
… DoD competes for $$ 19

20. Check, Balance, and Risk SHIPS AIRCRAFT Balance within top line (TOA)
Baseline Capability
Navy Program
Resources
Coarse-Adjust Levers
SHIPS
AIRCRAFT
Fine-Adjust Levers
MANPOWER
RECAPITALIZATION
# of Hulls or Airframes
Hull or Airframe Life
Major Pieces
Quantity x
313
Complexity
Low
High
2813 X
/yr
READINESS
Shore 7 5 %
Fleet 6 + 1
Presence
Surge
Sustainment
MILCON/
BOS
322K/68K
Recap Rate
Manpower
Readiness
Procurement
Number of Installations
Balance within top line (TOA)
Capability requirements define force structure
Balancing the “Major Pieces” is a risk management challenge
Recap / Readiness / Personnel trades all within TOA
Historically, recap bow waved into the out-years of the FYDP. Then reprogrammed into readiness/personnel in execution and next years. 20