McAleese & Associates / Credit Suisse PB16 Budget Issues

VADM Joseph Mulloy

Deputy CNO for Integration of Capabilities and Resources

OPNAV N8

17 March 2015

Protect the Homeland • Maintain a safe, secure, and effective nuclear deterrent

• Fight terrorism through counter-terrorism/irregular warfare operations

• Defend the homeland and provide support to civil authorities

• Counter weapons of mass destruction

Build Security Globally

• Provide a stabilizing presence across the globe

• Conduct stability and counterinsurgency operations

• Conduct humanitarian, disaster relief, and other operations

Project Power and Win Decisively • Defer and defeat aggression

• Project power despite anti-access/area denial challenges

• Operate effectively in space and cyberspace

Strategic Foundation CNO CMC

Guidance DoD Guidance DSG, QDR

SECNAV Guidance

4 P’s

National Guidance

NSS, NDS, NMS

CNO Guidance

CS21R

2

1 ARG/ MEU 2 BMD

10 Ships

2 Ships

180 Ships

1 CSG 1 ARG/ MEU

2 BMD 1 SSGN

34 Ships

1 CSG 1 ARG/MEU

1 BMD 1 SSGN

51 Ships

Ukraine

Russia

China

North Korea

ISIL

Ebola Boko Haram

Libya

Piracy

Al-Shabab

Cyber Attacks

Malaysia Air

Taliban Syria Iran

Average Ship count Today / FY16 / FY20 Total: 279 / 282 / 304 Deployed: 99 / 103 / 115

As of 22 JAN 2015

AQAP

Air Asia

Executing the Strategy – Navy and Marine Corps Today Where it Matters, When it Matters

Legend Bases Places Crossroads

2 Ships

OEF-P

OIR SPMAGTF-CR-CC

SPMAGTF-CR-AF

SPMAGTF-CR-SC

Cyber Attacks

Cyber Attacks

Illicit Trafficking

Yemen 4,000th Strategic Deterrent Patrol

Arctic Arctic

3

SSNs Sourcing 25% More Presence

PB-16 Lens

Forward Presence

Maintain Sea-Based

Strategic Deterrent

Relevant Industrial

Base

Asymmetric Capabilities

Means to Defeat

and Deny

Readiness and

Personnel

4

QDR Pillars - Protect the Homeland - Build Security Globally - Project Power and Win Decisively

Credible, modern, and survivable “Where it matters, when it matters”

Significant investment to ensure superiority in Critical Kill chains

Focus on critical afloat and ashore readiness

Improves overall readiness of non-deployed forces, but not to our complete satisfaction Focused effort to pace or remain

ahead of threats across the warfighting spectrum Procures the world’s most

capable and innovative ships, aircraft, and weapons

PB-16

• Counter Terrorism Irregular Warfare • Deter and Defeat Aggression • Project Power despite A2AD Challenges • Counter Weapons of Mass Destruction • Operate Effectively in Cyber / Space • Maintain a Safe, Secure, and Effective

Nuclear Deterrent • Defend the Homeland and Provide Support

to Civil Authorities • Provide a Stabilizing Presence • Conduct Stability and COIN Operations • Humanitarian Assistance Disaster Relief

DSG Missions

PB-15

$120

$125

$130

$135

$140

$145

$150

FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20

TY$B

PB-13

PB-14

PB-15

PB-16

BBA/BCA

Inflation Adjusted PB-15

$25 Billion LOST

BBA

BCA

Fiscal Landscape

5

$8.7B (FY16-FY19)

PB16 Net Position: Up $8.7B FYDP Nuclear Deterrent Enterprise Review CVN-73 (Full Funding) LPD-28 Cyberspace V-22 (Navy Variant) VPM (FY19/20) Electronic Warfare Inflation Adjustment: $3B

$2.2B

PB-13

PB-14

PB-16

Enacted FY15

Sequestration

6

Maintain Sea-Based Strategic Deterrent

• First, a credible, modern , and survivable sea-based deterrent • PB-16 request sustains

– 14-ship SSBN force – Trident D5 ballistic missile and support systems – Nuclear Command, Control, and Communications (NC3) suite

• PB-16 request supports – Construction of first Ohio Replacement SSBN in 2021 for delivery in 2028 and first

deterrent patrol in 2031 – Nuclear Deterrent Enterprise Review to restore adequate margin

Maintain Sea-Based Strategic Deterrent

The Navy’s top priority in any fiscal scenario

Navy continues to pressurize and investigate every account to maximize combat power

Hard Choices High-end aviation Select Modernization Accounts Weapons procurement Facilities sustainment / MILCON

Innovation and Reform Energy security and resiliency Innovation Initiative Optimized Fleet Response Plan Pay and Compensation Headquarters Reductions

Focused Investments Nuclear Enterprise Review Cyber V22 Navy Carrier Onboard

Delivery (COD) LCS/Frigate Mods Virginia Payload Module Next Gen Jammer SEWIP (Blk II & III) Ships Signals Exploitation Eqpt Electro-Magnetic Rail Gun Audit Readiness

Balancing Elements for the Navy

7

Sustaining Undersea Dominance

USS North Dakota

• ND brought the Large Aperture Bow Array • ND brought the Virginia Payload Tube • South Dakota Insertion Program ($168M)

Improved sensors: Large Vertical Array Improved acoustic stealth: Advanced

hull coating and quieting • Virginia Payload Module (VPM) ($1.3B)

Some Block V, mitigates lost strike capacity, future payloads

USS South Dakota keel will be laid in 2016

8

9

F-35C Lightning II

P-8A Poseidon

Evolving Naval Aviation Manned and Unmanned Platforms

MQ-4C Triton (UAS)

MQ-8C Fire Scout (VTUAV)

V-22 (Navy Variant) COD Replacement

9

Innovative Payloads and Platforms

LPD-17 Derivative / LX (R)

LPD-28

Transition Ship

$2.0B vs $1.8B vs $1.6B

Mobile Landing Plat form USNS Montford Point (T-MLP-1)

10

Two Ops Spots - MH-53E Four Ops Spots - V-22 Hangar for two A/C

SOF Modifications

Berthing for 250

Expandable to 442

Mission Deck Cargo Capacity: Four MK 105 MCM sleds equiv

& four 7-M RHIBs, 12 TEUs

Afloat Forward Staging Base USNS Lewis B. Puller (T-MLP-3/AFSB-1)

Evolving Surface Combatants

• Reduced Manning (148 including AvDet) • Tumblehome wave piercing hull • Sensors

Dual Band Radar (SPY-3/Volume Search Radar) EO/IR Systems Acoustic Sensors Suite/Electronic surveillance/IFF

• Weapons 80 VLS Cells for Tomahawk, ESSM, Standard Missile Two 155mm Advanced Gun System (AGS) mounts Two 30mm Close In Guns (CIGS)

• Integrated Power System/All Electric Drive • Reduced Radar and IR signatures • 610’ Length, 15,612 LT displacement

• AN/SPY-6 (AMDR-S (SPY +15 dB))

>30x more sensitive Replaces SPY-1D(v) within same footprint Increased raid handling Earlier detect/track vs. ASCM & BMD raids Simultaneous BMD and AAW engagements

• Increased Innerbottom Stiffeners Increased Ship Stability & Survivability

• Electrical Plant 3 x 4 MW, 4160 VAC SSTGs replace 450 VAC SSTGs

4160 VAC power needed for AN/SPY-6

• AC Plant 50% increase in capacity using high efficiency units

• 505’ Length, 8,900 LT displacement

DDG-1000 Zumwalt DDG-51 Flt III

11

Navy Reserve Centennial March 3, 2015

Final Thoughts

• The Navy lost $25 billion due to FY13 Sequestration and the FY14/15 BBA • The world is more complex, uncertain, and turbulent; this trend will continue

Our adversaries’ capabilities are modernizing, expanding and proliferating

• The U.S. Navy needs to be “Where it Matters, When it Matters” With the capabilities that matter to guarantee All-Domain Access

• As discussed in the Navy’s recent update to the “Cooperative Strategy for 21st

Century Seapower,” All-Domain access supports: Deterrence Sea Control Power Projection Maritime Security

• The global marketplace needs a strong U.S. Navy to ensure non-disruptable Sea

Lines of Communication (SLOC) that is “Forward, Engaged, and Ready”

13 PB-16 is the absolute minimum funding needed to execute our DSG.

QUESTIONS?

11

• Continue to evaluate impact of investment plans on – Ship and aircraft builders – Depot maintenance facilities – Equipment and weapons manufacturers – Science and technology

• Navy continues to maintain production of – CVN-78 – DDG-51 – LHA-6 – LCS – SSN-774 – F-35C – P-8A

Sustain a Relevant Industrial Base Relevant Industrial

Base

Navy is the only customer for some suppliers (e.g., nuclear power) Health of second tier suppliers remains critical to steady production