STATEMENT BY
VICE ADMIRAL JOHN NATHMAN, U.S. NAVY
DEPUTY CHIEF OF NAVAL OPERATIONS
(WARFARE REQUIREMENTS AND PROGRAMS)

AND

VICE ADMIRAL MICHAEL MULLEN, U.S. NAVY
DEPUTY CHIEF OF NAVAL OPERATIONS
(RESOURCES, REQUIREMENTS, AND ASSESSMENTS)

BEFORE THE
SUBCOMMITTEE ON PROJECTION FORCES
HOUSE ARMED SERVICE COMMITTEE
UNITED STATES HOUSE OF REPRESENTATIVES

CONCERNING
U.S. NAVY SHIPBUILDING, WEAPONS AND OTHER PROCUREMENT PROGRAMS

MARCH 27, 2003
 

     

Mr. Chairman and members of the Committee, we appreciate the opportunity to appear today.  The investment you've made in America's Navy has been vital to the nation's security and your Navy's ability to project more power, more protection and more freedom to the far corners of the earth.  Thank you for your exceptional and continuous support.

I. Your Navy Today

This is a time of tremendous challenge and accomplishment for our Navy.  Our men and women operating in the air, on and under the sea, and on the ground are at the leading edge of the Global War on Terrorism. 

Today, there are 168 ships deployed, more than half of the Navy, providing persistent combat power forward; this includes seven of twelve aircraft carriers, and nine of our twelve big deck amphibious ships (LHA/LHDs). They are deployed in support of the nation's interests in the Persian Gulf, the Mediterranean, the Indian Ocean and the Western Pacific.  Still others are preparing for deployment or continuing operations like strategic deterrent and counter-drug patrols in support of other national imperatives.

II. Your Future Navy

The 21st century sets the stage for tremendous increases in precision, reach, and connectivity, ushering in a new era of joint operational effectiveness.  We clearly will be able to integrate sea, land, air, and space through enhanced network technology to a greater extent than ever before.  And in this new, unified battlespace, the sea will provide the vast maneuver area from which to project direct and decisive power.

To navigate the challenges ahead and realize the opportunities, we developed this past year a clear, concise vision - Sea Power 21 - for projecting decisive joint capabilities from the sea.  The Chief of Naval Operations has already described this vision to you, so we will not repeat that description here.  But we want to emphasize to you that the Sea Power 21 vision will be put into practice through a new Global Concept of Operations (CONOPs) to distribute our combat striking power to a dispersed, networked fleet.  This will optimize our flexible force structure and create additional, scaleable, independent operating groups capable of responding simultaneously around the world. This distribution of assets will take us from 19 independent strike capable groups to 37 independent strike capable groups with the full implementation of the Global CONOPs. Sea Power 21, put into practice through the Global CONOPs, will provide increased power-projection.

Integral to Sea Power 21 and to ensuring access to critical corners of the globe through operational independence is the Sea Base. The Navy and Marine Corps Team is working closely to determine the best mix of expeditionary ships that will make up the future Sea Base.  In addition to Naval requirements, we will also consider other Joint missions that may arise such as the need for a Joint command ship, hospital ships, and an Afloat Forward Staging Base.  We will know more about these requirements over the next year as we complete on-going efforts such as the Joint Forcible Entry Study and the Defense Science Board Seabasing Study.  As we begin procurement of MPF(F), LHA(R), DD(X), LCS, MV-22 and JSF, we have a unique opportunity to design an entire package of capability to support Sea Basing and Expeditionary Maneuver Warfare.  We are facing a rare inflection point in history with several new ship classes coming on line within the next few years.  What we decide to build today will impact the Navy for the next 30-40 years. 

III. Context for Our FY04 Budget Request 

In recent years the Navy improved its readiness by properly funding our current readiness accounts, deepening the growth and development of our people, and developing innovative operational concepts and capabilities.

We also sharpened our focus on future force structure - to buy the ships, aircraft and the capabilities needed for tomorrow's Navy.  At the same time, we did not overlook the important gains our focus on current readiness made these last few years; it produced the more responsive force on deployment today.  As a result, we looked hard at ways we could balance these priorities and our discretionary investments to both satisfy the near term operational risks and prepare for the long-term risks of an uncertain future.  This year we made hard choices across the Fleet to do more to mitigate our future risk while sustaining our current readiness gains.

Our FY 2004 budget request includes an initiative to accelerate the retirement of our oldest, least capable, and most maintenance-intensive ships, and to apply the savings this decision produces toward higher recapitalization priorities.  Our preferred inactivation timeline would produce $1.2 billion across the FYDP for this purpose. 

Accelerating the retirement of the SPRUANCE Class destroyers, the baseline 1 Aegis cruisers, and selected OLIVER HAZARD PERRY Class frigates was one of the most difficult decisions we made in building this year's budget.  Although difficult, we firmly believe it is the right decision, one we made only after carefully considering the risks, both in the near-term and in the long-term.  Current Navy warfighting analysis of likely combat scenarios over the next ten years indicates that the warfare missions for surface combatants are not well met by SPRUANCE Class destroyers, baseline 1 Aegis cruisers and older PERRY Class frigates.  In the long term, we need the next generation destroyer, DD(X), the next generation cruiser, CG(X) and the Littoral Combat Ship to address these missions. 

Fundamentally, we believe aggregate warfighting capability based on the type and mix of key weapon systems in the fleet is a better metric than the total number of ships when analyzing the risk attendant to various force structure options.  While it is true that one ship can only be one place at a time, and that below a certain threshold the total number of ships does matter, our judgment is that the near-term retirements we propose do not cross the threshold of unacceptable risk.  Instead, accelerating the retirement of these selected ships adds little risk in the near-term, but helps significantly in facilitating our transition to the numbers, type and mix of ships we will require to execute the range of missions we anticipate in the 21st Century.

In assessing the risk of reducing our legacy surface combatant inventory, we examined three criteria by which our aggregate warfighting capability should be measured:  capacity for strike missions, performance against submarine and surface ship threats, and contribution to air defense. 

Strike warfare capabilities affected by the decommissioning of SPRUANCE destroyers are met by the simultaneous commissioning of ARLEIGH BURKE Class destroyers; the number of Vertical Launch System (VLS) cells available in the Fleet for Tomahawk by FY 2004 is greater than in FY 2001 despite the decommissionings, and it rises steadily thereafter.  PERRY Class frigates and baseline 1 Aegis cruisers, the oldest in the inventory, have no VLS or Tomahawk capability.

The most effective surface combatant weapon system for anti-submarine and anti-surface warfare (ASW/ASUW) is the combination of a LAMPS Mk III helicopter and an Aegis warship.  The net result of the planned ship decommissionings and BURKE Class destroyer commissionings is to temporarily reduce the total fleet capacity for helicopter embarkation, but the number of deck spots for helicopters available still exceeds the number of helicopters in the inventory to fill them. 

The ability to maintain a shipboard protective anti-air warfare shield over a broad area is best delivered by the Aegis Weapon System and the SM-2 Block IIIB VLS missile.  Neither the SPRUANCE nor PERRY Class ships are Aegis equipped, and the baseline 1 Aegis cruisers have Mark 26 rail launchers which can only shoot older, less capable missiles.  We are focusing our Cruiser Conversion efforts on upgrading the 22 cruisers with VLS for future mission requirements, including ballistic missile defense (BMD).  The cost of doing this for the baseline 1 cruisers is prohibitive. 

In every case, continuing to operate these ships for the few years remaining in their useful lives adds little to our aggregate warfighting capability while hampering our ability to move forward with critical recapitalization efforts.  

We will continue to pursue efficiencies that improve our warfighting capability.  We are committed to producing the level investment stream that will help implement our bold new Navy vision and produce the number of future ships, aircraft and systems we need to counter the 21st Century threat.  Harvesting savings for reinvestment is an important part of that effort, and we will continue to examine the potential efficiencies while weighing the operational risks, both now and in the future.   

This year, we intend to: 

  • Sustain our current readiness gains to support the global war on terror;

  • Deepen the growth and development of our people into the 21st Century, high-technology personnel force that is our future; and

  • Invest in our bold new Navy vision -- Sea Power 21 -- to recapitalize and transform our force and improve its ability to operate as an agile, lethal and effective member of our joint, networked warfighting team. 

IV. Investing in Sea Power 21

Our 21st Century Navy will be a joint, netted, dispersed power projection force and Sea Power 21 is the framework around which our Navy will organize, integrate, and transform.  It prescribes a strategy-to-concepts-to-capabilities continuum by which current and future Naval Forces will exploit the opportunity that information dominance and rapid, highly accurate and lethal power projection and defensive protection capabilities bring to us. 

We have started to "turn the corner" in our ship and aircraft recapitalization program.  The FY 2004 budget request provides funding for seven new construction ships, the final two of four planned SSBN-to-SSGN conversions, and the first ship in our Cruiser Conversion program.  In all, our shipbuilding program includes $12.2 billion, a significant increase above last year.  The seven new ships include three ARLEIGH BURKE Class (DDG 51) destroyers, one VIRGINIA Class (SSN 774) fast attack submarine, one SAN ANTONIO Class (LPD 17) amphibious transport dock, and two LEWIS AND CLARK Class (T-AKE) dry cargo and ammunition ships. 

Additionally, we invest more than $1.5 billion for Research and Development (R&D) in transformational shipbuilding programs such as CVN 21, DD(X), LCS and SSGN, discussed later in this statement.  Each of these platforms will bring to the force unique capabilities focused on distinctly different mission sets.  They will complement each other, and each will enhance the others' ability to accomplish its primary mission.  Pressing ahead with all of these programs is essential to recapitalizing the Fleet with the right mix of future capabilities.

Demonstrating Navy's commitment to stabilizing the shipbuilding program and industrial base, the FY04 budget presents a plan for Multi-Year Procurement for VIRGINIA Class SSN.  In addition to the MYP strategies in place for DDG 51 and requested for VIRGINIA Class, we plan on funding the Lead DDX and LCS in RDTEN funds beginning in FY05 and split funding CVN 21 over two years beginning in FY 2007.  We are committed to the continued pursuit of alternative funding strategies to both stabilize the shipbuilding accounts and increase the ship-building rate while maintaining fiscal responsibility and doing things that make sense.

The following describes the core capabilities, and our investments in our highest priority programs supporting our vision of a 21st Century Navy. 

Surface Combatants

The 2001 Quadrennial Defense Review Report stated the importance of projecting and sustaining U.S. forces in "distant anti-access" environments.  Accomplishing this critical operational goal requires a broad range of capabilities, and the naval capabilities required are best provided by a "family of ships."  Although warships are multi-mission by necessity, each member of the family of ships is optimized to perform a key function: DD(X) for delivery of precision strike and volume fires to support assured access and maneuver warfare; CG(X) to create and maintain air superiority over the joint force at sea and on land; and  Littoral Combat Ship (LCS) to operate closer to shore to deny the enemy the use of anti-access weapons such as mines and submarines against our forces. 

The FY 2004 budget request includes funding for DD(X) and LCS.  CG(X) development will begin in the future, and, as a descendant of the DD(X) program, it will share with DD(X) a common, more stealthy hull form and propulsion architecture.  That architecture includes an integrated all-electric power system that is more efficient and survivable than today's ships', and provides more power capacity for future weapons.  DD(X) and CG(X) will also use many of the same transformational technologies to reduce crew size and operating and support costs.

  • DD(X). The DD(X) advanced multi-mission destroyer is the centerpiece of our future surface combatant "family of ships."  It will bring revolutionary improvements to precision strike and joint fires.  The FY04 budget request includes Research and Development funding of more than $1 billion for design, development and testing leading to procurement of the lead ship in FY 2005.  This investment is vital and it is the most critical component for the shipbuilding technology base of the future.  Transformational and leap ahead technologies include an integrated power system and electric drive; the Advanced Gun System with high rate of fire and magazine capability; the new Multi-Function Radar/Volume Search Radar suite; optimal manning through advanced system automation, stealth through reduced acoustic, magnetic, IR, and radar cross-section signature; and enhanced survivability through automated damage control and fire protection systems.  Unless we systematically reduce the crew size of our future ships, we can't get to the future.  DD(X) leads the way.  Armed with an array of land attack weapons it will provide persistent, distributed offensive fires in support of joint forces ashore, including our number one joint partner, the United States Marine Corps.  The capacity in both hull form and integrated electric power system will allow us to spiral its development to CG(X), a critical future component of sea based missile defense.

  • Littoral Combat Ship (LCS).  The Chief of Naval Operation's number one budget priority, the Littoral Combat Ship is the next member of our surface combatant "family of ships."  The FY04 budget includes $158M to accelerate development and construction of 9 LCS in the FYDP, key to ramping surface force structure to Global CONOPs levels outside the FYDP.  It will be the first Navy ship to separate capability from hull form and provide a robust, affordable, focused-mission warship to enhance our ability to establish sea superiority. A networked, lethal, small, fast, stealthy, and highly maneuverable ship, LCS will be designed from the keel up as a focused mission ship capable of employing manned and unmanned mission modules to counter some of the most challenging anti-access threats our naval forces may encounter close to shore - mines, quiet diesel submarines and small, fast, armed boats. 

Mission module development will focus on identifying and integrating systems with technical maturity that will provide proven war fighting capability for the first Flight LCS. These potentially include off board systems that will increase LCS sensor and weapons reach such as Vertical Takeoff UAV, Remote Minehunting System, Spartan Scout ACTD, Long-term Mine Reconnaissance System and Advanced Deployable System. Integration of these systems, in addition to the installed core systems, will provide LCS combat capability in the focused mission areas of Mine Warfare, Anti-Submarine Warfare and Anti-Surface Warfare.  Through the spiral development process, we will combine improved legacy systems and next generation systems to provide ever-increasing capability for follow on LCS Flights.

Last year, we continued experimenting with a range of innovative hull forms, and the Congress supported us so we could get the program moving this year, avoiding a critical one-year delay.  The FY 2004 effort will be aimed at defining requirements, improving our knowledge base for selecting an LCS design, and beginning mission module development.  We will capitalize on DOD initiatives, spiral development, and new acquisition methods to streamline the acquisition process, and begin construction of the first LCS by 2005.

  • CG Conversion.  The FY 2004 budget includes $194 million for the first Cruiser Conversion.  The Cruiser Conversion Program is a mid-life upgrade for our existing AEGIS cruisers that will ensure modern, relevant combat capability well into this century and against evolving threats.  These warships will provide enhanced land attack and area air defense to the joint force commander.  Core to these conversions is installation of the Cooperative Engagement Capability, which enhances and leverages the air defense capability of these ships, and the 5"/62 Gun System with Extended Range Guided Munitions to be used in support of the Marine Corps Ship-to-Objective-Maneuver doctrine.  These converted cruisers will also be available for integration into ballistic missile defense missions as that capability matures.

  • DDG-51. Three ARLEIGH BURKE Class (DDG 51) destroyers are being procured in FY 2004 with the $3.2 billion requested as part of the multi-year procurement (MYP) of 10 DDG-51 ships over the period FY 2002 through FY2005.  The Navy and its two principal DDG builders successfully negotiated a workload swap arrangement in June 2002 in which General Dynamics' Bath Iron Works will transfer LPD-17 ship construction work to Northrup Grumman Ship Systems in exchange for additional DDG-51 work.  This arrangement will optimize production efficiencies and stabilize workload at all shipyards building DDG-51 and LPD-17 Class ships.

Amphibious Ships

  • LPD-17. The FY 2004 budget provides full funding of $1.2 billion to procure the sixth ship of this planned twelve-ship class.  LPD 17 functionally replaces LPD 4, LSD 36, LKA 113, and LST 1179 classes of amphibious ships for embarking, transporting and landing elements of a Marine landing force in an assault by helicopters, MV-22s, landing craft, and amphibious vehicles. This program is on track and represents a critical contribution to the Marine Corps' amphibious lift requirements.

  • LHD-8. The FY 2004 budget requests $355 million additional incremental funding for LHD-8, a modified repeat of previous LHDs.  LHD-8, with introduction of gas turbine propulsion, all-electric auxiliaries, and a new electrical distribution and computer based Machinery Control System will replace one of the aging TARAWA (LHA) Class ships in 2007.

  • LHA Replacement (LHA(R)). LHA(R) is a spiral development ship construction program designed to field a far more capable replacement (in conjunction with LHD 8) for the five TARAWA Class ships that begin reaching end of service life in 2011.  LHA(R) will provide a longer and wider platform capable of increased vehicle lift, and will have better survivability and weight margin.  The FY 2004 budget request of $65 million provides funds for Research and Development supporting FY07 Procurement of the lead ship.

While we are building LPD-17 and replacements for the TARAWA Class ships, it is important that we have a robust sustainment program for the amphibious ships currently in the Fleet.  The LPD-4 Class Extended Sustainment program, started in FY03, will be completed on six of the 11 aging ships by FY06 and addresses maintenance and operational readiness concerns.  It is not designed to provide additional capabilities or combat systems enhancements.  Average cost is $73M per hull based on existing configurations.  These ships will ultimately be relieved by the last six LPD-17's by 2015 at an average age of 41.5 years.  The LHA-1 Midlife program completes in FY08 and will ensure that maintenance and readiness concerns are addressed.  The LHAs do not have future growth for JSF or significant weight additions as the limiting draft at full load has been reached.  The first LHA is scheduled to be replaced by LHD-8 in FY07 and the last hull will be relieved in FY22 by the LHA(R)'s with an average class age of about 40 years.  

Aircraft Carriers

  • CVN 21.  We are fulfilling the President's stated goal to "skip a generation" of technology and have accelerated transformational technologies from the CVNX development plan into CVN 21.  The FY04 budget request provides $1.5B in RDT&E and advanced procurement for the first CVN 21 and programs for split-funded construction beginning in FY07.  The transformational technologies include a new electrical generation and distribution system providing a 300 percent increase in available electrical power, improved flight deck design with Electro-Magnetic Aircraft Launching System and Advanced Arresting Gear, improved sortie generation, enhanced survivability, reduced manning, and incorporation of a flexible infrastructure that will allow the insertion of new capabilities as they evolve.  CVN 21 will be the centerpiece of our future Carrier strike capability when it enters active service in 2014.

Submarines

  • VIRGINIA-class submarine (SSN 774).  The first ship of this class will deliver in June 2004.  This class will supplement LOS ANGELES-class (SSN 688) attack submarines and improve submarine force capability for multi-mission littoral operations including ISR, special operations, mine warfare, conventional strike anti-submarine and anti-surface missions.  The Virginia Class is designed to accommodate new technologies, including an array of unmanned vehicles and will be an integral part of our joint, networked, dispersed fleet of the 21st Century.  The FY04 budget request of $2.5 billion includes funding for Economic Order Quantity supporting plans for a Multiyear Procurement (MYP) contract. 

  • SSGN Conversions.  We have requested two additional conversions in FY04; these ships will be configured to carry more than 150 Tomahawk missiles, enabling covert, large-volume strike. The SSGN will also have the capability to support Special Operations Forces for an extended period, providing clandestine insertion and retrieval by lockout chamber, dry deck shelters or the Advanced Seal Delivery System, and they will be arrayed with a variety of unmanned systems to enhance the joint force commander's knowledge of the battlespace.  We will leverage the existing TRIDENT submarine infrastructure to optimize their on-station time.  The first two ships, the USS OHIO and USS FLORIDA, begin refueling overhaul this year, OHIO in Puget Sound Naval Shipyard and FLORIDA in Norfolk Naval Shipyard.  USS MICHIGAN and USS GEORGIA will begin their conversion in FY04, and we expect this capability to be operational for the first SSGN in FY07.  But we are already experimenting with the capabilities this new ship will offer.

The recent Sea Trial experiment, "Giant Shadow", explored how a network of forces, including special warfare forces, and various unmanned aerial, underwater and ground vehicles and sensors could be used to provide surveillance, collect real-time intelligence, and develop and launch a time critical strike in support of the joint force commander.  This included the first vertical launch of a UUV, testing of nuclear-biological-chemical sensors, and the insertion of SEALs from one of the submarines we will convert to an SSGN.

In conjunction with Giant Shadow, the USS FLORIDA successfully launched two Tomahawk missiles, confirming the ability to launch a Tomahawk from a configuration similar to the tightly packed cluster of Tomahawk All-Up-Rounds (AUR) we will use in the SSGN.

Maritime Prepositioning Forces

  • Maritime Prepositioning Force Future (MPF(F)).  The FY04 budget request includes $4 million in preliminary R&D funding for MPF(F) leading to procurement of the first ship in FY 2008.  MPF(F) ships will serve a broader operational function than current prepositioned ships, creating greatly expanded operational flexibility and effectiveness.  We envision a force of ships that will enhance the responsiveness of the joint team by the phased at-sea assembly of the sea-based echelon of a Marine Expeditionary Brigade.  These ships will off-load forces, weapons and supplies selectively while remaining far over the horizon, and they will reconstitute ground maneuver forces aboard ship after completing assaults deep inland.  They will sustain in-theater logistics, command and control, and medical capabilities for the joint force for extended periods as well. 

Combat Logistics Force Ships

  • LEWIS AND CLARK Class Auxiliary Dry Cargo Ammunition Ship (T-AKE). The widely dispersed nature of future operations and the growing emphasis on sea-basing of joint capabilities will be supported by newer, more capable additional combat logistics force ships such as the T-AKE Cargo and Ammunition Combat Support supply ships.  The FY 2004 funding of $722 million procures the fifth and sixth ships of the class to continue recapitalization of our support fleet.  Delivery of the lead ship is expected in 2005.  These ships will be crewed by Military Sealift Command (MSC) civilian mariners and constructed to meet ABS class/USCG certification. Enhanced capabilities in these ships will include greater capacities and upgraded material handling and transfer systems over the aging T-AFS and T-AE class ships being phased out.  The T-AKE class will be built with multi-purpose convertible cargo holds for dry stores and/or ammunition that will provide greater flexibility to tailor loads to meet changing operational requirements.  A 12,000-pound Heavy UNREP system will double both delivery load weight and throughput rates of transfer, as well as increase the safe operating separation of the ships conducting replenishment.  An innovative electric drive propulsion system will provide increased electric power for auxiliary power needs. 

Science and Technology

Our Science and Technology (S&T) investment of $1.6 billion in FY 2004 continues to focus on maintaining a broad S&T base.  The S&T program seeks to inspire and guide innovation that will provide technology-based options for future Navy and Marine Corps capabilities.  It addresses areas from oceanography, advanced materials, sensors, and robotics; from biomedical science and technology; from electronics, surveillance, and neurotechnology and information science; from advanced combat systems to other technologies for ships, submarines, aircraft, and ground vehicles; and from concept-based experimentation conducted to enhance warfighting excellence.  Our S&T drawing board includes projects related to next generation surface ships; unmanned aerial vehicles; underwater weapons; and, combat casualty treatment.  Approximately 10% of the DoN S&T investment is budgeted for US Joint Forces Command experimentation requirements.

The FY 2004 budget request devotes a significant amount of resources toward four critical areas; Anti-submarine Warfare, Mine Warfare, Ship Self Defense, and Air and Missile Defense; to assure access in the future.

Anti-Submarine Warfare (ASW)

The FY 2004 budget request supports improvements in ASW.  The Improved Extended Echo-Ranging is incorporated into the USQ-78B Acoustic Processor, which will improve large area acoustic search capability on our Maritime Patrol Aircraft.  Initial testing of the SURTASS Low Frequency Active (LFA) system in the Western Pacific has demonstrated detection capability that provides us added assurance that we can deal with the diesel-electric threat as it becomes even quieter, and we have accelerated development of an Advanced Deployable System (ADS) off-board sensor variant, to start in FY05, that will eliminate the requirement to cable the system to a shore site.  The FY 2004 budget also supports an FY06 IOC of Mk 48 Mod 7 Common Broadband Acoustic Sonar System (CBASS) Heavyweight Torpedo specifically designed for use against advanced diesel submarines employing countermeasures in the difficult littoral environment.  The MH-60R helicopter with its Advanced Low Frequency Sonar will provide an improved capability against submarines in the littorals.  Acquiring the airborne Automatic Periscope Detection and Discrimination system will provide further enhancements to our capability for large area search.  Additionally, the capability for our surface combatants to survive attacks from threat torpedoes will be enhanced through the Surface Ship Torpedo Defense system.  The success of the truly open architecture Acoustic Rapid COTS Insertion (A-RCI) program in providing significant improvement in ASW sensor processing for our submarine force has spawned similar efforts in submarine combat control, communications, and upgrades to the surface fleet's SQQ-89 combat suite.  These programs validate the Navy's decision to use commercially available technology to deliver superior performance at less cost.

Mine Warfare (MIW)

The FY 2004 budget continues the development and acquisition of the Long-Term Mine Reconnaissance System (LMRS), which is on track for an FY 2005 IOC on the LOS ANGELES Class and will be incorporated on the Virginia Class as it delivers.  LMRS will provide a clandestine reconnaissance capability for mines and mine-like objects.  The FY 2004 budget also includes funding for the development and acquisition of the Remote Mine-hunting System (RMS), a surface ship - launched and recovered semi-submersible vehicle.  RMS has an FY 2005 IOC with near-term fielding planned for DDGs 91-96.  RMS also is a strong candidate for future deployment on the Littoral Combat Ship.  To meet the Department's goal of an organic mine warfare capability by FY 2005, the FY 2004 budget continues the development and integration of five Organic Mine Subsystems into the MH-60S platform.

The MH-60S "Knighthawk", the Navy's newest Multi-Mission Combat Helicopter, has been identified as one of the two platforms that enable the Naval Helicopter Concept of Operations for the 21st Century.  Partnered with the MH-60R, the MH-60S will enable maximum combat efficiency across a spectrum of warfighting tasks centered on the Armed Helicopter and Airborne Mine Countermeasures configurations.  These missions place great reliance on the lethality of weapons systems brought to bear on a threat to our nations access to littoral waters.  Through enhanced lethality of helicopter borne weapons systems, an asymmetric disruption of Naval Operations can be thwarted without the use of fixed wing based aircraft or the air combat element of the Marine Expeditionary Unit.  In addition to operating from today's current inventory of combatant ships, the MH-60S will interface with the Maritime Prepositioning ship of the future (MPF), the Littoral Combat Ship (LCS), and the High Speed Vessel (HSV).  As we develop these platforms and concepts, the MH-60S will be tailored, through spiral acquisition, to meet the capabilities required of the Joint Theater Commander.  The FY 2004 budget includes $431 million for 13 helicopters and other equipment required to transition to the new airframe.

Ship Self-Defense

We continue to invest in upgrading our Ship Self Defense programs.  FY 2004 funding covers the spectrum from electronic countermeasures to missiles to guns.  The Surface Electronic Warfare Improvement Program is a spiral development effort initiated to provide a robust, full spectrum electronic warfare system following cancellation of the Advanced Integrated Electronic Warfare System in FY 2002.  SEWIP will build on the legacy SLQ-32 system to field capabilities against next-generation threats.  The current budget expands procurement of the Close-in Weapons System, Block 1B.  The internationally procured Rolling Air Frame Missile and the NATO Evolved Sea Sparrow Missile will provide ship self-defense against anti-ship cruise missiles as part of a layered defense.  Additionally, we are pursuing installation of minor caliber guns on our deploying ships to improve our ability to counteract a small boat threat in the 0 to 8,000 yards range.  We soon will install stabilized minor caliber guns on two DDGs.  Additionally, arming MH-60R and MH-60S helicopters that deploy on surface combatants provides an addition layer of lethality against a small boat attack.

Air and Missile Defense

Our Navy is poised to contribute significantly in fielding initial sea based missile defense capabilities to meet the near-term ballistic missile threat to our homeland, our deployed forces, and our friends and allies and we are working closely with the Missile Defense Agency (MDA) to that end.  USS LAKE ERIE will be transferred to MDA to facilitate a more robust testing program for missile defense.  In turn, MDA is requesting funds to upgrade three AEGIS guided missile destroyers (DDG) for ICBM surveillance and tracking duties and procurement of up to 20 Standard Missile interceptors to help us provide a limited at sea capability to intercept short and medium range ballistic missiles in the boost and ascent phases of flight.  Our sea-based missile defense programs experienced tremendous success on the test range during 2002, and we look forward to building on these successes and developing a vital capability for our Nation.

The FY 2004 budget requests $35 million to develop the Extended Range Active Missile (ERAM).  ERAM will enable over-the-horizon engagements against the most advanced anti-ship and land attack cruise missiles, and represents an important step in projecting area defense landward from the sea.

The FY 2004 budget also includes $29.7 million to begin in earnest the conversion of the Aegis combat systems to an Open Architecture (OA) design.  In FY04, we will begin the development of standards and functional architecture, building the Engineering Design Model of the computing environment, and validation and testing of common applications with the eventual goal of migrating legacy and new systems to OA condition.  Based on mainstream commercial off-the-shelf (COTS) technologies and systems, converting to OA can avoid the high cost of maintaining and upgrading multiple legacy computing systems that quickly become obsolete and are not responsive to changes in warfighting requirements.  Legacy computing systems have reached the upper bounds of processing capability and will be unable to accomplish the processing required for near-term and future complex missions, including Ballistic Missile Defense.  With a COTS based architecture, there will be minimal system changes as either warfare requirements or underlying commercial computing technologies change over the life of a platform. 

Precision Guided Munitions

Precision guided munitions receive continued investment in our FY 2004 request with emphasis on increasing our inventory levels. Joint Direct Attack Munition (JDAM) production rate has been tripled with $277 million requested for procurement of 12,300 Navy JDAM kits in FY 2004 and $139 million was requested for 429 Joint Stand-Off Weapons.  Laser Guided Bomb (LGB) kit procurement will continue with 5,000 to 6,000 LGB kits planned each year from FY 2004 to 2006.  We are also commencing full rate production under a proposed multi-year procurement for the Tactical Tomahawk (TACTOM) missile with 267 missiles requested in FY04.  Our partnership with the Air Force in several of our munitions programs will continue to help us optimize both our inventories and our research and development investment.

Employment of PGMs from aircraft requires precision targeting information, and the budget request includes funding for two noteworthy systems in this regard.  First, the Multifunctional Information Distribution System (MIDS) provides secure, jam-resistant, high-throughput digital data link for voice and data to F/A-18 aircraft.  It supports positive identification, precise location, situational awareness, sensor-to-shooter coordination, and reduction of fratricide between U.S. and allied aircraft, maritime and ground forces.  This system is included in F/A-18E/Fs and a retrofit item for F/A-18C/D aircraft.  The MIDS system is currently deployed with two Super Hornet squadrons aboard USS NIMITZ.

Second, the Active Electronically Scanned Array Radar system to be installed on Naval tactical aircraft dramatically improves lethality in both air-to-air and air-to-ground scenarios.  It has three times greater air-to-air target detection capability and optimized air-to-ground modes for multi-target identification.  The FY04 budget request of $117 million supports a system IOC in FY06.

FORCEnet is the enabler of the foregoing capabilities, and the operational construct and architectural framework for naval warfare in the joint, information age.  It will allow systems, functions and missions to be aligned to transform situational awareness, enable rapid mission planning, accelerate speed of decisions and allow naval forces to greatly distribute its combat power in the unified, joint battlespace.  It puts the theory of network centric warfare into practice.  Programs that will enable the future force to be more networked, highly adaptive, human-centric, integrated, and enhance speed of command include:

  • Cooperative Engagement Capability. The FY 2004 budget request includes $160 million for Cooperative Engagement Capability (CEC). CEC provides a significant step forward in transforming our situational awareness of the battle space.  This transformational program allows one ship to shoot a weapon at a generated target based on another ship's firing solution for the first time in Naval history.  The first squadron of CEC equipped E-2C Hawkeyes is currently deployed with the Nimitz Battle Group.  The new variant of CEC that will be competed this summer is a next generation design that will be smaller, more affordable, and more bandwidth efficient while providing significantly higher performance and potentially supporting joint service use. 

  • E-2C Advanced Hawkeye Radar Modernization Program. E-2 Advanced Hawkeye (AHE) program will modernize the E-2 weapons system by replacing the current radar and other aircraft system components to improve nearly every facet of tactical air operations. The modernized weapons system will be designed to maintain open ocean capability while adding transformational surveillance and Theater Air and Missile Defense capabilities against emerging air threats in the high clutter and jamming environment. The advanced Hawkeye will be a critical contributor to Naval Integrated Fire Control-Counter Air, and to Sea Strike and Shield.  The FY04 budgets over $350M for continued development with first production planned for FY08.

Combining the capabilities of CEC on Aegis ships and E-2C Advanced Hawkeye aircraft with the Extended Range Active missile described earlier creates a capability package called Navy Integrated Fire Control-Counter Air (NIFC-CA).  The over-the horizon air directed surface-to-air missile capability against challenging targets that NIFC-CA will provide will dramatically improve the joint air defense capability.

  • Unmanned Air Vehicles (UAV).  We increased our commitment to a focused array of unmanned air vehicles that will support and enhance all missions with persistent, distributed, netted sensors.  We are initiating the Broad Area Maritime Surveillance (BAMS) UAV this year to develop a persistent, multi-mission platform capable of surveillance and reconnaissance of maritime and land targets, communications relay and some intelligence collection.  Additionally, we have requested funding for development, testing and experimentation of Fire Scout, a Global Hawk Maritime demonstration, and an Unmanned Combat Aerial Vehicle - Navy (UCAV-N) demonstration vehicle. 

  • Joint Fires Network. A further step forward in Network-Centric Warfare and one of the Navy's transformational initiatives is the Joint Fires Network (JFN).  The Joint Fires Network integrates the best elements of three existing systems, Global Command and Control System-Maritime (GCCS-M); Joint Service Imagery Processing System-Navy (JSIPS-N); and Tactical Exploitation System-Navy (TES-N), into a converged joint architecture.   JFN automates, coordinates, and correlates the processing of multiple tactical data streams from various Intelligence, Surveillance, and Reconnaissance (ISR) sources to provide time critical fire control solutions for advanced weapon systems.  JFN provides the maritime and Joint tactical commander the ability to quickly target and re-target precision weapons, enhancing their overall effectiveness and lethality.  JFN supports Sea Strike and Sea Basing by reducing the sensor to shooter timeline from hours to minutes; providing precision targeting data for coastal and deep fire support; and the use of ISR data from responsive and persistent ISR assets to improve both the Common Operational Picture and Intelligence Preparation of the battlespace.  The FY 2004 budget includes $159 million for JFN.  JFN will serve as a critical building block for the FORCEnet concept.

V. Conclusion 

With your help, we are significantly improving our Navy.  We will continue our culture of readiness and our commitment to developing our people while we recapitalize and transform our force.  Your future Navy will be joint, dispersed and netted, and we will accomplish this improvement in warfighting capability while still pursuing those efficiencies that make us good stewards of the public's funds.  The Chief of Naval Operations has made it plain that mission accomplishment means both warfighting effectiveness and resourcefulness

The FY 2004 budget request reflects these priorities.  It focuses on the right thing - ensuring future naval combat readiness.  To recapitalize, we need to sustain the MYP of DDG-51 Class destroyers and initiate MYP for VIRGINIA Class submarines.  To transform to meet future threats, we need to keep DD(X) on track, move ahead on LCS and LCS mission modules, execute the CVN 21 acquisition strategy and complete the development of SSGN.  Also, we must define the right mix of Expeditionary Warfare ships. We thank the Committee for your continued strong support of our Navy, our Sailors, and our civilian shipmates.  Working together, we are confident we will make our great Navy even better.


House Armed Services Committee
2120 Rayburn House Office Building
Washington, D.C. 20515