1. Unclassified Managing FY09 End Strength Vice Admiral Mark E. Ferguson, III Chief of Naval Personnel and Deputy Chief of Naval Operations (Manpower, Personnel, Training & Education) 24 November 2008

2. Unclassified 2 Executing Commanders Intent FY09 End Strength Targets (End of FY09) 329,042 Active Total Strength 277,943 Active Enlisted Strength 51,099 Active Officer Strength Collaboration with N10, N12, N13 Data collection and analysis Utilizing existing levers and policy Projecting natural losses Forcing additional losses Communicating Course Change to the Fleet Readiness challenges BUPERS-3 Establishing War Room to Control End Strength: Authoritative Source for Force Shaping Information

3. Unclassified 3 Where We are – Where We Are Going End Strength - Navy POM-10 Changes Commanders Intent 4 Dec - CNO/CNP/USFF 20 Jan – New Administration GWOT Temporary PB09 E/S POM-10 BES DHP Conversion 4,404 2,700 4,407 Adaptive Core GWOT Supplemental Request GWOT Core ~7,045 315K 320K 325K 330K 335K 340K Actual E/S $334M $24.8B $61.3M (PDM) $254.9M (PDM) FY09 Bridge (over –execution)

4. Unclassified 4 FY09 Challenges Officer Decreased Resignations / Release Requests Force Shaping Losses (timing) Control Grade Shortages/Shaping Limited results for voluntary separation (TIG/YCS Waivers) Enlisted Changing Fleet behavior (Economy) Fleet not executing to policy (Manning) Reductions in the right areas – getting to zones C and E Undermanned challenges FIT

5. Unclassified 5 USFF / FRE Engagement Considerations Readiness Impacts of Centralized Control at NPC BRT to ID all policies which impact End Strength Strict adherence, with accountability, to directed Policies Fleet Brilliant on the Basics Enforcement Taking care of our Sailors Targeted retention goals Change Retention Excellence Award criteria Retention quality vice retention quantity Taking Operational Risk in Austere Manpower Environment Command Accountability GSA/IAMM readiness Force Shaping Execution (Page 13, etc.) Assess impact of rescinding former policies

6. Unclassified 6 Taking Control Zone A – PTS PTS Algorithm Update – by 01 Jan 09 Critical NEC Eliminate GENDET Reapply Reapply for Sailors who have not executed quotas SELRES option by 01 Apr 09 Zone B – PTS by 01 Feb 09 Algorithm testing by Dec 08 SELRES option by 01 Apr 09 Zone C – Voluntary Separation Pay (1 st QTR FY10) Zone D – take them to Fleet Reserve Eligibility Zone E – Enforce HYTs Disciplined Distribution (now) Enforce Policy (now) E7-9 Selection Boards (FY09) – Analyze Bottom 30% E-SERB (FY10) Indefinite ID Cards E-7 and Above ERIF

7. Unclassified 7 Taking Control (cont.) Enforce control of all HYTs E4 – 8 E5 – 14 E6 – 20 Forced Conversions Not being properly executed Policy change to reflect current tone SRB – Jan 09 message Suggested policy changes 90 -120 day limit to move forward Controlled grace period for decreases Analyze potential NUC SRB increase Early Career Transition SELRES Palace Chase (existing Air Force Program) E7 – 24(22) E8 – 26(24) E9 – 30(26)

8. Unclassified 8 BRT-STE Nuclear Executed as 6YO Pregnancy GWOT/IA Operational Commitment 5YO/6YO Advanced training Enlistment bonuses OTT Obliserve to Train Other Deployment Match EAOS to PRD PCS Reach RE Zone PFA Failures 40920 Total STEs executed in FY08 Short Term Extensions Need Reason Codes to track STE reasons 80% of STE reasons are operational Est. BRT to understand what has been delegated to the Fleet

9. Unclassified 9 Taking Control (cont.) Officer Force Shaping Authority Training Attrites Non-Warfare Attainment Inter-Service Transfers AC to RC (FTS/SELRES) Conversions Aggressively Manage Retire/Retain Limit Retire/Resignation Withdrawals Limit Temp Reserve Recalls and ADSW for greater than 1095 days active service in a four year period (RPN to MPN end strength) Officer Selection Boards (FY09) – Analyze Bottom 30%

10. Unclassified 10 Critical Success Factors to Force Shaping Collaboration, Buy-in and Concurrence with USFF Operational Risk FIT Trade-offs Engagement at the Right level NPC-FRE-CO Balance Manage Execution – Establish Trip-Wires Strategic Communications with the Fleet CNO/CNP Commanders Intent

11. Unclassified 11 Discussion

12. Unclassified 12 Backup

13. Unclassified +2% NDAA (332,849) FY08 E/S 332,228 FY09 NDAA 326,323 FY09 Active Navy Strength Weekly Tracking Legend FY09 PRESBUD PLAN FY09 Weekly Actuals FY09 NDAA FY09 Draft OPLAN SepAugJulJunMayAprMarJanDecNovOctSepFeb FY09 Draft OPLAN 329,042

14. Unclassified 14 Early Career Transition Orders NOSC * Member DD214 sent to NOSC for delivery at Separation AC Sep RC Gain Bonus Start Obliserv Assign Billet Decision Sailor for LIFE *Sailor departs command w/ orders PERS 8 1306/7 Application CNRFC PERS 4 BUPERS 32 CNRFC Affiliation Check List Sponsor Assigned Program similar to Air Force Palace Chase Program. Process similar to PTS W/SELRES option and NAT/NCS Target Ratings – >105% AC Target Sailors – Single Junior Enlisted (Webb GI Bill takers – 3 yrs or > AC time) About 1200 Sailors identified If 25% take rate = 300 Sailors