DEPARTMENT OF THE NAVYFY 2017 PRESIDENT’S BUDGET

February 9, 2016

1

Fiscal Context

Operational Context

Balancing• Focused Investments• Hard Choices• Innovation and Reform

Mission Guidance

3 2

The Foundation – Guidance

National Security; Defense;

and Military Strategies

DoDStrategic Guidance

Quad. Defense Rvw

SECNAVPeople; Platforms

Power; Partnerships

National Security; Defense;

and Military Strategies

2

CNODesign for

MaintainingMaritime Superiority

CMCAdvance

To Contact

4 3

14 Ships

1 Ship

183 Ships

24 Ships50 Ships

Ukraine

Russia

China

North Korea

ISIL

Refugees

Boko Haram

Libya

Piracy

Al-Shabab

Cyber Attacks

TalibanSyriaIran

AQAP

Spratly IslandsSubi Reef

SPMAGTF-CR-CC

SPMAGTF-CR-AF

1 CVN1 ARG/MEU

1 CVN

1 CVN1 ARG/MEU

Executing the Guidance – the Navy and Marine Corps TodayOptions to the Nation

LegendCrossroadsNaval Presence

Personnel Sailors deployed afloat 35,564Sailors forward deployed 32,624Marines deployed afloat 4,570Marines forward deployed 30,732

as of 1 Feb 2016 3

Average Ship countToday / FY17/ FY21

Total: 272 / 287 / 308Deployed: 94 / 108 / 118

0

50

100

150

200

250

0

50

100

150

200

250

300

350

400

450

500

Dep

loym

eny

Leng

th (D

ays)

Ship

s

Fleet Size vs Deployed Ships / Avg. Deployment Length

Ships Deployed Total Battle Force Avg Deployment Length

Fleet Size

Globally Deployed Ships

Executing the Guidance – Operational Trends

454 Ships

167 Days

108 Ships, FY9424% of Battle Force

94 Ships, FY1535% of Battle Force

272 Ships

217 Days

4

6 5

Executing the Guidance – Operational Trends

CY 14 – Operational Employment CY 15 – Operational Employment

*Planned deployments historically address 45% of COCOM demand Planned Deployments

CY 13 – Operational Employment

5

7 6

RUSSIA

CHINA

DPRK

IRANISIL

Executing the Guidance – An Evolving World

Accelerating change•Maritime System•Global Information System•Rate of Technological Creation and Adoption

SubmarineFiberOptic

Cable

6Blume, Andrew, “Undersea Cables.” Fortune Magazine, 2012

8 7

Executing the Guidance – An Evolving World

7Nuclear Vacuum, Frank Bennett, Aivazorsky, Darwinek, Yo/ Wikimedia Commons/ CC-BY-SA-3.0

9 88

DON Annual Budget in CY$ - Budget Trends

8

166.6

158.5

165.3163.5

166.8

156.8

152.8

150.0

158.2

158.9

156.4

152.2

159.9

152.9

159.5

155.7

157.4

147

151

155

159

163

167

171

FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21

PB14

PB15

PB16

PB17FY 2016 Constant year Dollars

Billi

ons

of D

olla

rs

PB14

PB16

PB17

PB15

10 9

Balancing Overview

9

11 10

Military Personnel - Navy

10

Reserve Personnel StrengthActive Personnel StrengthAligns with force structure

o FY17 Active end strength 322.9K

• Fit / Fill funded at 92% / 95%

o Sailor 2025 Ready, Relevant Learning funded

• Active enlisted end strength reduced 6.6K across the FYDP

o Reflects deactivation of 10th air wing

o Funds HM wholeness; security forces

o FY17 Reserve end strength 58.0K

o Retain HSC-85 and establish two Tactical Support Units

329.2 326.5328.2 329.8 330.0

327.9 327.3322.9 322.2 324.4 323.6 323.1

310.0

320.0

330.0

340.0

FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21

ES (K

)

MPN

PB16 PB17

57.4

58.0

58.9 58.9 58.9

57.457.4

58.0

58.9 58.9 58.9 58.9

56.5

57.0

57.5

58.0

58.5

59.0

FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21ES

(K)

RPN

PB16 PB17

12 11

Military Personnel – Marine Corps

Reserve Personnel StrengthActive Personnel StrengthFocused on forward presence and crisis response

11

o Achieves 182K one-year prior than PB16 end strength plano Funds to 182K Active End Strength across FYDP o Strength meets steady state forward presence and crisis

response requirements around the globe o 1:2 deployment-to-dwell ratioo Major combat operations will drive risk in Deter/Deny

184.0

182.0 182.0 182.0 182.0

183.5

182.0

182.0182.0 182.0 182.0 182.0

170.0

175.0

180.0

185.0

190.0

195.0

200.0

FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21

ES (K

)

MPMC

PB16 PB17

38.9

38.5 38.5 38.5 38.5

38.9 38.9

38.5 38.5 38.5 38.5 38.5

38.038.238.438.638.839.039.239.4

FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21ES

(K)

RPMC

PB16 PB17

o FY17 Reserve end strength 38.5Ko Ready, relevant, responsive forceo Seamlessly operates as a part of the total force

13 12

Civilian Personnel

175,237 179,759 181,562

23,405 21,737 21,755

0

50,000

100,000

150,000

200,000

250,000

FY15 FY16 FY17Marine Corps Navy

FY15 FY16 FY17 FTE by Appropriation/Fund

O&M 116,076 118,230 120,409Other (FHOPS/RDTEN) 1,532 1,787 1,783WCF 81,034 81,479 81,125

Total DON FTE

FTE FY15 FY17FY16

FY17 FY18 FY19 FY20 FY21FYDP FTE* Profile: 203,317 201,818 201,503 200,982 200,567

*FTE=Full Time Equivalent

Scientists

Shipyard Workers

Highlights

198,642 201,496 203,317

12

Ø Ship Maintenance: Growth at Regional Maintenance Centers, SURFMEPP, in Japan, and at public shipyards to address maintenance backlogs.

Ø NWCF: FTE added to address increased flight hours and corrosion issues on existing aircraft.

Ø Installation Security: Guards added to counter increased risk at installations.

Ø Headquarters: Previous reduction increased to 25 percent of funding; will be fully realized by FY20.

Ø Overall FYDP: Decline of 2,750 FTE from FY17 to FY21.

14 13

Operations & Readiness

13NAVY BASE OCO

Ship Operations58 days/qtr deployed

24 days/qtr non-deployed($B)

3.8 3.8 3.5

1.2 1.41.1

0.0

1.5

3.0

4.5

6.0

FY15 FY16 FY17

Ship Depot Maintenance100% of projected maintenance

funded($B)

4.9 4.9 5.2

2.9 2.9 2.9

0.0

1.5

3.0

4.5

6.0

7.5

9.0

FY15 FY16 FY17

Flying Hour OperationsDeployed T-Rating

Navy 2.0 / Marine Corps 2.0($B)

6.5 5.8 6.5

1.01.4

0.9

0.0

2.0

4.0

6.0

8.0

FY15 FY16 FY17

1.4 1.5 1.7

0.30.1

0.2

0.0

0.5

1.0

1.5

2.0

FY15 FY16 FY17

Aircraft Depot Maint/Logistics85% of projected maintenance

funded($B)

Marine Corps ReadinessOperating Forces

($B)

0.7 0.7 0.7

0.7 0.6 0.7

-

0.4

0.8

1.2

1.6

FY15 FY16 FY17

Marine Corps Ground Equip79% of maintenance

funded in FY17

0.2 0.2 0.2

0.4

0.2 0.2

-

0.1

0.2

0.3

0.4

0.5

0.6

0.7

FY15 FY16 FY17

($B)

MC BASE OCO

15 14

Shipbuilding ProcurementFY16 FY17 FY18 FY19 FY20 FY21 FYDP

Ohio Replacement Program 0 AP AP AP AP 1 1CVN-21 0 0 1 0 0 0 1SSN-774 2 2 2 2 2 1 9DDG 51 2 2 2 2 2 2 10LCS/FF 3 2 1 1 1 2 7LHA(R) 0 1 0 0 0 0 1LPD 17 1 0 0 0 0 0 0LX(R) 0 0 0 0 1 0 1T-ATS 1 0 1 1 1 1 4Expeditionary Fast Transport (EPF) (formerly JHSV) 1 0 0 0 0 0 0Expeditionary Mobile Base (ESB) (formerly MLP AFSB) 1 0 0 0 0 0 0T-AO(X) 1 0 1 1 1 1 4 New Construction Total QTY 12 7 8 7 8 8 38LCAC SLEP 4 0 0 0 0 0 0Ship to Shore Connector 4 2 6 10 12 12 42LCU 1700 1 0 1 2 4 4 11Moored Training Ships 0 1 0 0 0 0 1CVN RCOH 1 0 0 0 1 0 1Other Construction Total QTY 10 3 7 12 17 16 55

Total Shipbuilding QTY 22 10 15 19 25 24 93FY16 enacted includes Congressional adds for T-ATS, JHSV (EPF), MLP AFSB (ESB), LCU 1700 and Congressional reduction of one Ship to Shore Connector.

LHA 6

14

Black Sea

SSN 785

DDG 107

ESB 3CVN 78

16 15

Aircraft ProcurementFY16 FY17 FY18 FY19 FY20 FY21 FYDP

Fixed WingF-35C (CV) 6 4 6 12 18 24 64F-35B (STOVL) 15 16 20 20 20 21 97EA-18G** 10 0 0 0 0 0 0FA-18E/F*** 5 2 14 0 0 0 16E-2D AHE 5 6 5 3 4 5 23P-8A (MMA)** 17 11 6 13 0 0 30CA-40A 1 0 0 0 0 0 0KC-130J 2 2 2 2 2 2 10Rotary WingCH-53K (HLR) 0 2 4 7 13 14 40MV-22B* 19 16 6 6 6 14 48MH-60R 29 0 0 0 0 0 0AH-1Z/UH-1Y 29 24 27 27 0 0 78VH-92A 0 0 0 6 6 5 17UAVMQ-4 Triton 4 2 3 3 5 6 19MQ-8C Firescout 5 1 2 2 2 2 9RQ-21A Blackjack*** 6 8 4 5 5 3 25

TOTAL 153 94 99 106 81 96 476*FY 2018-2021 includes 6 V-22 per year for the Navy.**FY 2016 reflects A-12 settlement for 3 EA-18G and plan to procure 1 additional P-8A (MMA). ***FY 2017 includes 2 F/A-18 and 4 RQ-21 requested in the OCO request.

P-8A Poseidon

MV-22B Osprey

E-2D Hawkeye

F-35C (CV JSF)

MQ-8C Firescout

AH-1Z

CH-53K King Stallion

15

17 16

Weapons ProcurementLRASM

16

ESSM

TACTOM

* OCO funding for FY 2017.

FY16 FY17 FY18 FY19 FY20 FY21 FYDP

Aircraft Weapons

AIM-9X 227 152 150 153 153 150 758

AMRAAM 167 163 247 260 252 248 1,170

AARGM 155 253 336 322 183 197 1,291

LRASM 0 10 25 25 0 0 60

JAGM 0 96 104 110 110 221 641

HELLFIRE* 0 100 0 0 0 0 100

SDB II 0 0 90 750 750 750 2,340

Ship Weapons

TACTOM 149 100 0 0 0 0 100

SM6 113 125 125 125 125 125 625

RAM 90 90 90 90 90 90 450

ESSM 30 75 28 52 46 56 257

MK 48 HWT 8 11 15 24 33 40 123

MK 48 HWT MODS 81 73 64 50 43 52 282

MK 54 LWT MODS 140 144 167 174 170 130 785

SOPGM 27 24 24 24 24 24 120

LCS SSMM 0 24 110 110 110 110 464

SM-6

AIM-9X

MK-54

Tomahawk Maritime Strike

18 17

0.6 0.7 0.8

0.40.5

0.7

0.0

0.5

1.0

1.5

2.0

FY15 FY16 FY17

Weapons,Vehicles &Other

Communications andElectronicsEquipment

0.2 0.2 0.2

0.6 0.6 0.5

0.0

0.2

0.4

0.6

0.8

1.0

FY15 FY16 FY17

Navy

USMC

1.9 2.3 2.5

2.22.4 2.1

2.3 1.9 1.9

0.00

1.00

2.00

3.00

4.00

5.00

6.00

7.00

FY15 FY16 FY17

Ships SupportEquipment

Communicationsand ElectronicsEquipment

Aviation,Ordnance &Other SupportEquipment

Additional Investment Numbers may not add due to rounding

G/ATOR

17

Bill

ions

of D

olla

rs

$6.4B $6.5B $6.5B

Key OPN Capability Enhancements

• CYBER and the EM Spectrum

• Ship Capabilities

• Submarine & Underwater Capabilities

Bill

ions

of D

olla

rs

$1.0B$1.2B

$1.5B

Bill

ions

of D

olla

rs $0.8B $0.8B $0.7B

OPN

PMC

PANMC Funding reflects Baseline + OCO

Key PANMC Capability Enhancements

• General Purpose Bombs

• Air Expendable Countermeasures

• Active Jammers, IR Decoys

Key PMC Capability Enhancements

• Joint Light Tactical Vehicle (JLTV)

• Ground/Air Task Oriented Radar (G/ATOR)

• Common Aviation Command and Control System (CAC2S)

SEWIP

General Purpose Bombs

19 18

R&D Investment

Numbers may not add due to rounding

MQ-4C Triton

18

Bill

ions

of D

olla

rs

2.1 2.3 2.1

1.3 0.9 0.9

12.714.9 14.4

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

20.0

FY15 FY16 FY17S&T Management Development

$16.1B

$18.1B$17.4B

Major Systems ($M) FY15 FY16 FY17

Ohio Replacement Program 1,203 1,391 1,091

Virginia Class SSN 189 317 209

CVN 78 236 225 223

Surface Ship Torpedo Defense 57 71 87

Joint Strike Fighter (F-35) 995 1,085 1,198

CH-53K 538 592 405

Executive Helo Development 357 507 338

MQ-4C Triton 449 357 293

UCLASS 382 435 0

CBARS (RAQ-25) 0 0 89

MQ-8 43 53 27

XL/LD Unmanned Undersea Veh 11 12 146

Amphibious Combat Vehicle 101 212 159

G/ATOR 91 66 84

Rapid Prototyping 0 0 55

Energy 245 231 328

Cyber Resiliency 0 55 88

Aviation

Shipbuilding

Unmanned

USMC

Other

Virginia Payload Module

ACV

20 1919

Facilities SupportNavy 70%

of facility sustainment model($B)

4.4 4.5 4.3

1.72.3

1.70.1

0.1

0.2

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

FY15 FY16 FY17

OCO

FSRM

BOS

2.0 1.92.2

0.7 0.80.7

0.2 0.2

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

FY15 FY16 FY17

OCO

FSRM

BOS

$2.9B

Facilities SupportUSMC 74%

of facility sustainment model($B)

$6.2B$6.9B

$6.2B

$2.9B $2.9B

Shore Readiness

21 20

749986

640

390

754

426

60

0200400600800

1,0001,2001,4001,6001,8002,000

FY 2015 FY 2016 FY 2017

Navy Marine Corps OCO

Military Construction & Family Housing

Joint Region Marianas, Guam Parris Island Reconditioning Center

20

344 353301

16 1794

0

50

100

150

200

250

300

350

400

450

FY 2015 FY 2016 FY 2017

FHOPS FHCON

$361M $370M$395M

Mil

lion

s of D

olla

rs

$1.1B $1.1B

Mil

lion

s of D

olla

rs

FY17 MILCON ProjectsMajor Categories $ in Millions # of Projects

New Platform/Mission Support 357 9 COCOM Support 176 6*Energy 85 4 Ground Forces 73 1Guam 62 1Naval Shipyards 58 3*Quality of Life 48 2Training 39 2Reserves 35 4Environmental 13 1Planning and Design 92 N/AUnspecified Minor Construction 30 N/AOCO 60 3**

$1.7B

*Includes Energy project**Includes European Reassurance Initiative (ERI)

22 212121

Where it Matters, When it Matters

23 22

For more InformationFully searchable justification material available at:

http://www.secnav.navy.mil/fmc/fmb/Pages/Fiscal-Year-2017.aspx

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