TESTIMONY OF

RADM STEPHEN T. KEITH, USNR (RET)

DEPUTY DIRECTOR
OF THE
NAVAL RESERVE ASSOCIATION

BEFORE THE

HOUSE APPROPRIATIONS COMMITTEE
SUBCOMMITTEE ON DEFENSE

ON

MARCH 28, 2001

 

The Naval Reserve Association

“An association is not necessary to protect the Naval Reserve from the Naval Establishment, but is vitally needed to cooperate with the Navy in the solution of the many and complex problems that arise in the administration of a Navy composed of both regular and reserve career personnel.”

With association roots that can be traced back to 1919, the Naval Reserve Association (NRA) is devoted solely to service to the Nation, Navy, the Naval Reserve and Naval Reserve officers. It is the premier national education and professional organization for Naval Reserve officers, and the Association Voice of the Naval Reserve!

Full membership is offered to officers who have held Naval Reserve Officer commissions, WO-1 through O-10; however NRA members come from all ranks and components. 

NRA has over 22,500 members from all fifty states.  Forty-five percent of the Naval Reserve Association membership is drilling and active reservists and the remaining fifty-five percent are made up of reserve retirees, and involved civilians.   The National Headquarters is located at 1619 King Street Alexandria, VA.  703-548-5800.    Our point of contact is Marshall Hanson, Director of Legislation.

DISCLOSURE OF FEDERAL GRANTS OR CONTRACTS

The Naval Reserve Association does not currently receive, has not received during the current fiscal year, or either of two previous years, any federal money for grants. Starting this fiscal year the Association accepted federal money solely for Naval Reserve Recruiting advertisement in our monthly magazine.  All other activities and services of the Association’s are accomplished free of any direct federal funding. 

OPENING STATEMENT

Chairman Lewis, and distinguished members of the subcommittee, thank you very much for the opportunity to speak with you today.  On behalf of more than 86,000 active Naval Reservists, I would like to express our deepest appreciation to each of you for your efforts over the last couple of fiscal years.  During times when the pathway for the military seemed dubious because of DOD end-strength cuts and recommended budget reduction, Congress and this committee provided direction through plus-ups to the recommended defense appropriation.  In defense of the Armed Forces, you seized the initiative and wrought needed improvements.

Unfortunately, the military, the Navy and the Naval Reserve can’t rest with just the successes of the past.

It appears that the new administration has embarked on reshaping the armed forces without first establishing a new national security strategy, and then opening it to debate. The Naval Reserve Association is concerned that while we wait for a supplemental appropriation submission, the Armed Services in general, and the Navy in particular, are challenged at sustaining current readiness and operations with rising operations and support costs associated with aging equipment, aircraft and ships.  There is no doubt in my mind that procurement accounts are very tempting targets for reprogramming action within Navy and DOD as they have been in the past.  The inward, downward spiral set into motion by a decade of DOD cuts continues unabated and that should cause all of us concern for the future.

We are also concerned over the future structure of the Naval Reserve Force because its equipment, ships and aircraft are, on average, older than the active force.  With a FYDP that doesn't come close to meeting the procurement needs for equipment, ships and aircraft, the Naval Reserve requirements for the most part fall off the table.   We cannot count on the once robust National Guard and Reserve Equipment (NGRE) Allowance to level the playing field, and last year's $5 million appropriation barely scratched the surface of need.  If it were not for the action of Congress, the Naval Reserve would not have received its sixth C-40A aircraft.  These new aircraft will replace the aging C-9 fleet that today is operating aircraft that are older than the Air Alaska flight that fell from the skies off of California last year.

We also have concerns for the future structure of the Naval Reserve Force because of the possibility that portions of it may become the 'bill payer' to balance the budget for submission.  There is no doubt in my mind that today there are “smart” people in the Navy who have their sights on the hardware units such as the Reserve P-3 Patrol Wing, the Reserve Carrier Air Wing, a Reserve Seabee Battalion and a Reserve Cargo Handling Battalion as a way to balance the Navy budget going forward.  Personnel accounts could also prove too tempting.  It would not be the first time that the baby was thrown out with the bath water.  As we watch this all unfold, we ask you to be sensitive and inquiring when you take future testimony. 

We look upon the Naval Reserve as an insurance policy.  The Navy invests about three per cent of it's total obligation authority into the resources and people of its Reserve, and for this investment it has a Force that can be surged with trained personnel and ready equipment.  In the process it gets a dividend on its investment by using this very Force in day-to-day operations as a temporary labor pool.  When funding gets tight the Navy is no different than you or I - it will seriously consider canceling that insurance policy.  We need to be sensitive and inquiring about this as well.

Our country embarked on its democratic course as a direct result of militia forces.  The Guard and Reserve have made significant contributions in both World Wars and more recent conflicts.  The Guard and Reserve is engaged today in day-to-day operations like no other time in history.  The Guard and Reserve needs equipment, aircraft and ships to not only continue to attract young Americans to serve, but also to ensure that we have what is required in time of national need.

Details of specific requirements have been included in the written statement that was submitted to the committee which I respectfully request be made part of the record..

Again, thank you for this opportunity.  I standby for any questions.

ANTICIPATED FY-02

UNFUNDED REQUIREMENTS

READINESS SHORTFALLS

RPN:

· Funding for Boot Camp and “A” Schools for Non Prior Service (NPS) personnel who are directly recruited into the USNR.

· Non-Prior Service (NPS) Bonus ($2.4M): This required funding would allow the Naval Reserve to implement the enlisted NPS bonus program, which is authorized by 37 USC 308c. As the Naval Reserve increasingly relies on the accession of NPS personnel, it is taking steps to increase recruiting goals that may not be achievable without these additional incentives.  This is essential in order for Naval Reserve to be competitive among the services.

· Individual Protective Equipment procurement is needed to train and outfit reservists who will be going to a theater location where a threat of biological or chemical agents could be possible.  Currently, while active duty members have equipment reservists are sent w/o protection. (e.g. Korea)

· Annual Training (AT): Continued funding to permit the (14) days A.T. as outlined by law, and (17) days for OUTCONUS, plus (2) days travel.

· Inactive Duty Training Travel (IDTT): This is the primary vehicle which Naval Reservists travel to their gaining commands to perform high priority work meeting peacetime contributory support requirements and perform training required by Navy training plans. IDTT is used to provide airlift support missions, operational missions, aviation proficiency skills training, refresher skills training, exercises, and training at mobilization sites.  Funding should support a minimum of two visits per year.

· Active Duty for Training (ADT-FLEET SUPPORT): CINC requirements are greater than available funding. This will allow for greater direct and indirect support for CINC requirements. It will allow Commander Naval Reserve to increase the amount of peacetime contributory support that can be provided to gaining commands for exercises, mission support, conferences, exercise preparations, and unit conversion training.

  RECRUITING SHORTFALLS

· Reserve Recruiter Support & Advertising:   Aggressive national recruiting advertising campaigns needs to be maintained.  Advertising campaign includes media and market research, and placement of advertising in television, print, radio, direct mail, and public service announcements.  Funding should also provide for additional recruiting support, which would allow the NR to build its recruiters force to a total of 90.

Readiness Shortfalls (contd.)

OMNR:

·Reserve Ship Depot Maintenance: Includes deferred maintenance to meet guidance levels.

·Reserve Base Support, Real Property Maintenance: Funds are need to arrest growth of critical backlog and hold such backlog at FY-01 level.  Most of the buildings were built back in the 1940s/50s.  Additional funds are need for collateral equipment furnishings and vehicles to complete MILCON projects.

· RPM funding is need for demolition in RESFOR projects.

CONTINUING

NAVAL RESERVE

MODERNIZATION REQUIREMENTS

·  The C-40 aircraft procurement is needed to replace the aging C-9 fleet.   The Naval Reserve is the logistic airlift for the Navy.  The Department of the Navy has a fleet of (28) C-9’s needing replacement.  The first twelve aircraft were purchased used from commercial airlines, and are older than the Air Alaska airframe that crashed off of California.  Others are from the same manufacturing lot as the ill fated Air Alaska aircraft.  While inspected, air safety is still an ongoing concern. 

     With six C-40’s already authorized the Navy tried to sell its first C-9 aircraft, and was only offered $200,000.  Obviously, the commercial airline industry views these airframes as fully depreciated. Besides age, these aircraft are handicapped by noise and exhaust pollution.  The sooner we replace C-9’s, the less we will have to spend on C-9 upgrades.

     The other argument for accelerated C-40 procurement is business-oriented.  The aircraft is a cargo combo Boeing 737-700 with 800 style wings, providing an aircraft with more effective lift, and longer range.  To buy single planes every other year maximizes the price.  Further, the production line, with this model, will be run for only for eight to ten years, before Boeing changes model design.  Extending the purchases of 737 cargo-combo model over a longer time horizon will mean mixing models.  This will complicate ground support and aircrew training, and will also increase costs.  With an extended procurement timeline the Navy may be forced to seek 737-700s from the used market, with a high cost of conversion to cargo-combo, and with a reduced airlift and range.  The conversion cost might exceed the original purchase price.

     An optimum solution would be purchasing three aircraft each year, over the next seven years.   In the long run it will save money.  With a larger order, Boeing will discount the price, and we would also have model consistency.

· Money is also being requested for the CNRF Information Technology Infrastructure (IT-21).  Different from the Navy/Marine Internet, this money would be earmarked to get the Naval Reserve out of the mire of DOS based systems, upgrading its legacy software. The Naval Standard Integrated Personnel System (NSIPS) was intended to eliminate the USNR legacy pay system.  Problems arose because this conversion was attempted within the existing budget, with costs kept on the margin.  The overall cost has ballooned  with selected reservists missing pay.   The Naval Reserve learned a hard lesson that upgrades in hardware, memory, software, data flow, and staffing are needed.  This was an exercise that Corporate America has already learned, you can’t upgrade computers on the cheap.

· Funding is needed for the Naval Coastal and Expeditionary Warfare Forces, Seabees and MIUW’s   to provide CESE, communications, and field support equipment.  Existing equipment is aged, and worn, often being to commercial specifications, rather than military.  Active units for deployment overseas have borrowed some of this equipment.  Naval Coastal Warfare is growing in importance with the Navy’s focus on littoral operations.  Home Defense multiplies the importance.  Newer equipment needs to be procured in an ongoing schedule to be able to upgrade unit readiness.

· Littoral Surveillance System, one is required per year for regional/port surveillance.  This equipment has the capability to assist in waterside security of  afloat units.

· Also needed are P-3 Upgrades.  The Naval Reserve P-3 aircraft and avionics are not as updated as those being flown by active duty are.  A commonality with active P-3C UDIII squadrons must be achieved to help maintain the Total Force.  Missions for the Lockheed P-3 Orion are being expanded to include counter drug counter drug capabilities, and ESM. 

· Upgrading the Naval Reserve F/A-18A with precision guided munitions capability is a requirement.  With greater emphasis being placed on combat support and precision combat air strikes, there is a requirement to upgrade USNR capabilities to match the active squadrons.

· The Naval Reserve needs to modernize the F-5.  The F-5 role is as the Navy’s adversarial aircraft.  The Naval Reserve operates the only dedicated adversarial squadron with the mission of preparing the Navy’s tactical pilots prior to deployment.  The F-5 is twenty-five years old.  Without upgrades in avionics, navigation, and radar detection, a keen edged adversarial performance can not be maintained and our deploying pilots would be less well trained. 

·The Naval Reserve has acquired C-130’s over numerous budget years.  Cockpit configurations differ between airframes.  Funding is needed to standardize cockpit configuration of all NR/MCR C-130 T aircraft.

·Upgrades for USNR helicopter forces will provide funding for infrared FLIR kits.

·Aircrew training is an ongoing requirement.  Reduced air hours prevent in-flight training.  Computer based training to support maintenance and aircrew training.

PROJECTED COSTS OF UNFUNDED EQUIPMENT AND TRAINING REQUIREMENTS

Airlift, C-40A Transport Aircraft (3), replacing aging C-9 aircraft	$181.00 M
ADT, Fleet support funding to meet CINC requirements	$ 13.10 M
Base Operation Support, collateral equipment furnishings and vehicles to complete MILCON projects	$ 6.40 M
Coastal/Expeditionary Warfare, upgrade equipment for CB/ELSF/NCW units	$ 35.10 M
CBT, Computer Based Training, to train maintenance/aircrew on NR logistics aircraft	$ 7.30 M
C-130T Avionics Modernization, to standardize cockpit configurations of all N&MCR aircraft	$ 2.35 M
Increase C-130T Depot Level Maintenance Funding, funding for (5) aircraft not currently funded	$ 1.50 M
C-9 Upgrades, to maintain and improve an aging C-9 Fleet	$ 1.40 M
FLIR Kits (AAS-51Q) for SH-60B, procure forward looking infrared	$ 7.00 M
Funding for Boot Camp and "A" Schools for NPS Personnel per year recruited directly into USNR	$170.00 K
F/A-18 Mod, ECP 560, upgrade Reserve F/A-18A precision munitions capability (6) aircraft	$ 36.60 M
F-5 Global Positioning System, procure for fleet by FY2005	$ 8.10 M
F-5 Avionics Modernization, upgrading the 25 year old F-5 package for 12 aircraft	$ 47.00 M
F-5 Radar Upgrade, replace existing radars	$ 3.73 M
Individual Protective Equipment, to procure IPE and train units in gear required for CINC tasking	$ 3.40 M
IT CNRF Infrastructure, upgrade network infrastructure not included in NMCI	$ 17.00 M
IT Legacy, Reserve sustainment, funding required to operate legacy IT systems at minimal levels	$ 6.00 M
IT Reserve Modernization, upgrading existing legacy systems to perform enhanced & new functions	$ 8.60 M
Littoral Surveillance System, procuring (1) system for year for regional/port surveillance	$ 30.00 M
NMCI, Naval Marine Corps Intranet, expanding system to SELRES and TAR personnel	$ 45.00 M
Non Prior Service Enlistment Bonus, implementing NPS bonus program to compete with other RC's	$ 2.48 M
Operational Flight Trainer upgrade/mod, to match current P-3C configuration	$ 5.00 M
P-3C/BMUP Kits, to achieve commonality with Active P-3C UD III squadrons	$ 49.90 M
P-3C CDU upgrades, to increase counter drug capabilities	$ 3.00 M
P-3C Synthetic Aperture Radar, (1) aircraft	$ 3.00 M
P-3C Update III Simulator, Deployable Embedded Tactical Trainer System Units	$ 1.00 M
P-3C ESM Trainer upgrade, to match upgraded equipment included on improved aircraft	$ 4.50 M
Reserve Ship Depot Maintenance, funds required to meet guidance levels	$ 13.90 M
Reserve Aircraft Modernization, upgrade various avionics on RN P-3C's	$ 2.50 M
RPM, Funds needed to arrest the accumulating growth in Backlog of Maintenance and Repair	$ 20.30 M
RPM Funding for Demolition in RESFOR projects	$ 3.98 M

Alphabetical listing, not in order of priority.