DEPARTMENT OF THE NAVY

FY 2017 PRESIDENT’S BUDGET

February 9, 2016

1

Fiscal Context

Operational Context

Balancing

• Focused Investments • Hard Choices • Innovation and Reform

Mission Guidance

2

The Foundation – Guidance

National Security; Defense;

and Military Strategies

DoD Strategic Guidance

Quad. Defense Rvw

SECNAV People; Platforms Power; Partnerships

National Security; Defense;

and Military Strategies

2

CNO Design for Maintaining Maritime Superiority

CMC Advance To Contact

3

14 Ships

1 Ship

183 Ships

24 Ships 50 Ships

Ukraine

Russia

China

North Korea

ISIL

Refugees

Boko Haram

Libya

Piracy

Al-Shabab

Cyber Attacks

Taliban Syria

Iran

AQAP

Spratly Islands Subi Reef

SPMAGTF-CR-CC

SPMAGTF-CR-AF

1 CVN 1 ARG/MEU

1 CVN

1 CVN 1 ARG/MEU

Executing the Guidance – the Navy and Marine Corps Today Options to the Nation

Legend

Crossroads

Naval Presence

Personnel Sailors deployed afloat 35,564

Sailors forward deployed 32,624

Marines deployed afloat 4,570

Marines forward deployed 30,732

as of 1 Feb 2016

3

Average Ship count Today / FY17/ FY21

Total: 272 / 287 / 308

Deployed: 94 / 108 / 118

0

50

100

150

200

250

0

50

100

150

200

250

300

350

400

450

500

Dep

loy

men

y L

eng

th (

Day

s)

Sh

ips

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, FY94

24% of Battle Force

94 Ships, FY15

35% of Battle Force

272 Ships

217 Days

4

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

6

RUSSIA

CHINA

DPRK

IRAN ISIL

Executing the Guidance – An Evolving World

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

Submarine Fiber Optic

Cable

6

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

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Executing the Guidance – An Evolving World

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

8 8

DON Annual Budget in CY$ - Budget Trends

8

166.6

158.5

165.3

163.5

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

Bil

lio

ns

of

Do

llar

s

PB14

PB16

PB17

PB15

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Balancing Overview

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10

Military Personnel - Navy

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Reserve Personnel Strength Active Personnel Strength Aligns 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

329.2 326.5

328.2 329.8 330.0

327.9 327.3

322.9 322.2 324.4 323.6 323.1

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

57.4 57.4

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 21E

S (

K)

RPN

PB16 PB17

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Military Personnel – Marine Corps

Reserve Personnel Strength Active Personnel Strength

Focused on forward presence and crisis response

11

o Achieves 182K one-year prior than PB16 end strength plan

o 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 ratio

o Major combat operations will drive risk in Deter/Deny

184.0

182.0 182.0 182.0 182.0

183.5

182.0

182.0 182.0 182.0 182.0 182.0

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

38.0

38.2

38.4

38.6

38.8

39.0

39.2

39.4

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

S (

K)

RPMC

PB16 PB17

o FY17 Reserve end strength 38.5K

o Ready, relevant, responsive force

o Seamlessly operates as a part of the total force

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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 FY17

Marine Corps Navy

FY15 FY16 FY17 FTE by Appropriation/Fund

O&M 116,076 118,230 120,409

Other (FHOPS/RDTEN) 1,532 1,787 1,783

WCF 81,034 81,479 81,125

Total DON FTE

FTE FY15 FY17 FY16

FY17 FY18 FY19 FY20 FY21 FYDP 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

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

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

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

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

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

13

Operations & Readiness

13 NAVY BASE OCO

Ship Operations 58 days/qtr deployed

24 days/qtr non-deployed ($B)

3.8 3.8 3.5

1.2 1.4 1.1

0.0

1.5

3.0

4.5

6.0

FY15 FY16 FY17

Ship Depot Maintenance 100% 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 Operations Deployed T-Rating

Navy 2.0 / Marine Corps 2.0 ($B)

6.5 5.8

6.5

1.0 1.4

0.9

0.0

2.0

4.0

6.0

8.0

FY15 FY16 FY17

1.4 1.5

1.7

0.3 0.1

0.2

0.0

0.5

1.0

1.5

2.0

FY15 FY16 FY17

Aircraft Depot Maint/Logistics 85% of projected maintenance

funded ($B)

Marine Corps Readiness

Operating 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 Equip 79% 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

14

Shipbuilding Procurement FY16 FY17 FY18 FY19 FY20 FY21 FYDP

Ohio Replacement Program 0 AP AP AP AP 1 1

CVN-21 0 0 1 0 0 0 1

SSN-774 2 2 2 2 2 1 9

DDG 51 2 2 2 2 2 2 10

LCS/FF 3 2 1 1 1 2 7

LHA(R) 0 1 0 0 0 0 1

LPD 17 1 0 0 0 0 0 0

LX(R) 0 0 0 0 1 0 1

T-ATS 1 0 1 1 1 1 4

Expeditionary Fast Transport (EPF) (formerly JHSV) 1 0 0 0 0 0 0

Expeditionary Mobile Base (ESB) (formerly MLP AFSB) 1 0 0 0 0 0 0

T-AO(X) 1 0 1 1 1 1 4

New Construction Total QTY 12 7 8 7 8 8 38

LCAC SLEP 4 0 0 0 0 0 0

Ship to Shore Connector 4 2 6 10 12 12 42

LCU 1700 1 0 1 2 4 4 11

Moored Training Ships 0 1 0 0 0 0 1

CVN RCOH 1 0 0 0 1 0 1

Other Construction Total QTY 10 3 7 12 17 16 55

Total Shipbuilding QTY 22 10 15 19 25 24 93

FY16 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 3 CVN 78

15

Aircraft Procurement

FY16 FY17 FY18 FY19 FY20 FY21 FYDP

Fixed Wing

F-35C (CV) 6 4 6 12 18 24 64

F-35B (STOVL) 15 16 20 20 20 21 97

EA-18G** 10 0 0 0 0 0 0

FA-18E/F*** 5 2 14 0 0 0 16

E-2D AHE 5 6 5 3 4 5 23

P-8A (MMA)** 17 11 6 13 0 0 30

UC-12W (USMC) 1 0 0 0 0 0 0

KC-130J 2 2 2 2 2 2 10

Rotary Wing

CH-53K (HLR) 0 2 4 7 13 14 40

MV-22B* 19 16 6 6 6 14 48

MH-60R 29 0 0 0 0 0 0

AH-1Z/UH-1Y 29 24 27 27 0 0 78

VH-92A 0 0 0 6 6 5 17

UAV

MQ-4 Triton 4 2 3 3 5 6 19

MQ-8C Firescout 5 1 2 2 2 2 9

RQ-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

16

Weapons Procurement

LRASM

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

17

0.6 0.7 0.8

0.4 0.5

0.7

0.0

0.5

1.0

1.5

2.0

FY15 FY16 FY17

Weapons,

Vehicles &

Other

Communicati

ons and

Electronics

Equipment

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

2.2 2.4 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 Support

Equipment

Communications

and Electronics

Equipment

Aviation,

Ordnance &

Other Support

Equipment

Additional Investment

Numbers may not add due to rounding

G/ATOR

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Bil

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s $6.4B $6.5B $6.5B

Key OPN Capability Enhancements

• CYBER and the EM Spectrum

• Ship Capabilities

• Submarine & Underwater Capabilities

Bil

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of

Do

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$1.0B $1.2B

$1.5B

Bil

lio

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of

Do

llar

s $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

18

R&D Investment

Numbers may not add due to rounding

MQ-4C Triton

18

Bil

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of

Do

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2.1 2.3 2.1

1.3 0.9 0.9

12.7 14.9

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 FY17

S&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

19

19

Facilities Support Navy 70%

of facility sustainment model ($B)

4.4 4.5 4.3

1.7 2.3

1.7

0.1

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 1.9 2.2

0.7 0.8 0.7

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 Support USMC 74%

of facility sustainment model ($B)

$6.2B $6.9B

$6.2B

$2.9B $2.9B

Shore Readiness

20

749 986

640

390

754

426

60

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

FY 2015 FY 2016 FY 2017

Navy Marine Corps OCO

Military Construction & Family Housing

Joint Region Marianas, Guam Parris Island Reconditioning Center

20

344 353

301

16 17 94

0

50

100

150

200

250

300

350

400

450

FY 2015 FY 2016 FY 2017

FHOPS FHCON

$361M $370M $395M

Mil

lio

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of

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$1.1B $1.1B

Mil

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of

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s

FY17 MILCON Projects

Major Categories $ in Millions # of Projects

New Platform/Mission Support 357 9

COCOM Support 176 6*

Energy 85 4

Ground Forces 73 1

Guam 62 1

Naval Shipyards 58 3*

Quality of Life 48 2

Training 39 2

Reserves 35 4

Environmental 13 1

Planning and Design 92 N/A

Unspecified Minor Construction 30 N/A

OCO 60 3**

$1.7B

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

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Where it Matters, When it Matters

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For more Information

Fully searchable justification material available at: http://www.secnav.navy.mil/fmc/fmb/Pages/Fiscal-Year-2017.aspx

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