TESTIMONY OF

CAPT MARSHALL HANSON, USNR (Ret)
DIRECTOR OF LEGISLATION

OF THE
NAVAL RESERVE ASSOCIATION 

BEFORE THE SENATE APPROPRIATIONS COMMITTEE
DEFENSE SUBCOMMITTEE

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.

Marshall Hanson is a Captain (0-6) in the Naval Reserve with a military career spanning almost 30 years of active and inactive (drilling) status. He served afloat in Vietnam, and has had additional duty assignments to India, S. Korea, Okinawa, and Japan. He has had command of seven Naval Reserve units. Marshall is a graduate of the Naval War College. He holds an MBA in marketing, from the University of Washington. Following 20 years in manufacturing production planning and material scheduling, Marshall Hanson left Seattle, Washington to accept his position as Director of Legislation for the Naval Reserve Association, where he started in May of 1999.

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. The Association has 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.

ORAL STATEMENT:

Mr. Chairman, on behalf of nearly 88,000 active Naval Reservists, we would like to express our deepest appreciation to each of you for your efforts over the last couple of fiscal years.

In the next couple of months a number of outcomes and events will be converging. Your allocation of appropriations and sage leadership will help set the backdrop.

Due this month to the Secretary of Defense is a review by the office of the Assistant Secretary of Defense for Reserve Affairs (ASD/RA) to define Reserve Roles and Missions. A further study has been contracted by ASD/RA on defining Reserve Component Duty Statuses. The emphasis of each of these studies is transformation with a goal to suggest new designs.

Additionally, the Services are in the midst of budget planning for FY 2004. Despite the projected increases in the Defense Budget being considered by Congress, force planners are tailoring the future more with pruning shears, than by using additional bolts of cloth.

The cause for this may be the military's approach to "do more with less." The reality is that wear and tear is beginning to catch-up with our armed forces' equipment, and the expense of needed procurements is still being pushed into the future to avoid visible costs.

The War is continuing to be waged and is expanding globally. Collateral effects have affected the peoples of Israel, Palestine, Pakistan and India. Where our military will be in the coming months will be tolled by events yet to come.

The Naval Reserve Association has concerns for the future structure of the Naval Reserve Force because of the possibility that portions of the Naval Reserve may become the 'bill payer'. We suspect that there are a number of people in planning who have their sights on Naval Reserve hardware units. Decommissioning of a Reserve P-3 Squadron, Reserve Seabee Battalions, Fleet Hospital units, or Naval Coastal Defense/Littoral Surveillance units would be a way to balance the Navy budget.

Personnel accounts could be too tempting also. Comments have already been heard, as to why so large a Reserve is needed when only a small portion of it was mobilized.

We request that your committee include language in the appropriations bill to direct DoD to cease further reductions in both Active and Reserve component end strengths until the threats to our Nation are properly determined and a National Defense Strategy is clearly defined.

The force planners for the active component have again failed to satisfy Congressional wishes and include complete Reserve component needs in their POM (Programs Objectives Memorandum) Budget. Reserve equipment is being programmed into the out years, if included at all. With a FYDP that doesn't come close to meeting the procurement needs of 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. Although last year's increase in unfunded appropriations helped, it just scratched the surface.

The Naval Reserve, like other Reserve Services, is dependent upon Congress to provide for the Reservist's equipment needs. An equipment list is included with this report. Yet, if the Naval Reserve could spend added dollars on just one piece of equipment not funded in the Administrations budget, that next money would go to the C-40A logistics airlift. The Congress has provided the Naval Reserve with five of its six C-40A aircraft. The need is for twenty-one more aircraft.

Over the last fifty years, there is a historical cycle for the support of the Guard and Reserve. When money is tight, sentiments run against the Reserve Components. DoD studies become plentiful reviewing roles and missions, manpower utilization, and total force policy. The initial result seems always to suggest cutting back the Guard and Reserve. Yet, historically, as the next crisis arises soon after these cuts are planned, it is the Guard and Reserve that are called upon to help combat the threat.

The Naval invests about three percent of it's total obligation authority into the resources and people of its Reserve, and for this investment it has a ready Force of men and women with skills, talents and motivation that are unique, with people that can be surged as needed. With 60% of the Navy's budget in manpower accounts, the Naval Reserve, which represents 20% of the Navy, is a needed insurance policy, at a small price.

When Reservists serve side by side with Active Duty, you can not differentiate them. Yet inequities still exist with assigned duties, allowances, benefits, and retirement. Obsolete and aged equipment cause additional divergence. Your efforts in past fiscal years have helped bring remedy, but our common goal should be to continue toward parity both on the battlefield and at home.

Thank you, for the opportunity to testify.

RPN:

· Non-Prior Service (NPS) Bonus ($2.5M): 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 for over 84,000 SELRES.

· 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): Combat Commander requirements are greater than available funding. This will allow for greater direct and indirect support for Combat Commanders' requirements. It will allow Commander Naval Reserve to increase the amount of contributory support that can be provided to gaining commands for command exercises, mission support, conferences, exercise preparations, and unit conversion training.

These funds also provides annual training for 4,500 members who "drill for points only" in voluntary training units (VTUs).

RECRUITING SHORTFALLS

· Reserve Recruiter Support & Advertising: Aggressive national recruiting advertising campaigns needs to be maintained. With higher retention rates in the active fleet, the Naval Reserve must rely on non-prior service recruits. Advertising campaign includes media and market research, and placement of advertising in television, print, radio, direct mail, and public service announcements.

Readiness Shortfalls (continued)

OMNR:

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

· Reserve Base Support, Real Property Maintenance: Funds are needed 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.

· RPMfunding 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.

PROJECTED COSTS - UNFUNDED EQUIPMENT AND TRAINING REQUIREMENTS

PROCUREMENT

Airlift, C-40A Transport Aircraft (3), replacing aging C-9 aircraft $189.0 M

Coastal/Expeditionary Warfare, upgrade equipment and small boats $ 76.0 M

Seabees: Naval Construction Forces $ 27.0 M

C-130T Avionics Modernization, standardize cockpit configs of all N&MCR aircraft $ 3.5 M

FLIR Kits (AAS-51Q) for SH-60B, procure forward looking infrared $ 7.0 M

F/A-18A Mod, ECP 560, upgrade USNR precision munitions capability (6) aircraft $ 36.6 M

F-5 Radar Upgrade, replace existing radars $ 16.0 M

Individual Protective Equipment, to train units in gear required for CINC tasking $ 7.0 M

IT CNRF Infrastructure, upgrade network infrastructure not included in NMCI $ 17.0 M

Littoral Surveillance System, procuring (1) system for year for regional/port surveillance $ 30.0 M

Operational Flight Trainer upgrade/mod, to match current P-3C configuration $ 12.0 M

P-3C/BMUP Kits, to achieve commonality with Active P-3C UD III squadrons $ 27.0 M

P-3C CDU upgrades, to increase counter drug capabilities $ 3.0 M

P-3C/AIP Kits, to improve ASW capability/target sensing, enhance weapons suite $ 27.0 M

PERSONNEL FUNDING

Active Duty for Training , Fleet support funding to meet Combat Commander rqmnts $ 10.0 M

Active Duty for Training, Schools $ 4.0 M

Funeral Honors Support $ 2.0 M

Incentive Pay for Reserve Personnel (Medical Programs and others) $ 4.0 M

Non-Prior Service Enlistment Bonus, NPS bonus program to compete with other RC's $ 2.5 M

OPERATIONS AND MAINTENANCE

Base Operation Support, equipment furnishings and vehicles to complete MILCON. $ 4.0 M

IT Legacy, Reserve sustainment, $$'s required to operate legacy IT systems a minimum $ 6.0 M

IT Reserve Modernization, upgrading existing legacy systems to perform new functions $ 8.75M

NMCI, Naval Marine Corps Intranet, expanding system to SELRES and TAR personnel $ 33.0 M

Facility Sustainment, Restoration, and Modernization (including demolition) $ 20.5 M

MILITARY CONSTRUCTION

BEQ Naval Air Station Atlanta $ 6.75M

Naval Reserve Center Montana w/land $ 6.0 M

Naval Air Station JRB New Orleans -

Engine Maintenance Shop Addition $ 1.5 M

Hazardous Material Storage $ 2.7 M

Alphabetical listing, not in order of priority