Addressing the challenges that confront the Department will require systematic innovation, the solving of difficult interoperability and integration problems, and the steady pursuit of promising scientific and technological initiatives. We are committed to allocating the human and fiscal resources to ensure that innovation, interoperability and integration, and scientific and technological goals are met in the most cost-effective manner possible. We are also intent on finding efficiencies in the way we operate and manage naval forces and their supporting organizations, which may permit us to free up additional resources for modernization and recapitalization.

Navy-Marine Corps Integration

The potential benefit from increased Navy and Marine Corps integration, from warfighting doctrine to procurement strategies, is compelling. As the two Naval Services integrate their complementary warfighting concepts more closely in support of a comprehensive forward-deployed naval expeditionary capability, a concomitant integration of force planning methodologies, resourcing, and innovation will be necessary.

Through greater integration, the Naval Services seek increased flexibility of their striking power, for example, by restructuring Navy-Marine Corps carrier air wings. These new wings and their supporting units will be tailored to provide a range of crisis-response options. Carrier air wing composition will continue to evolve as the Navy and Marine Corps phase in new multi-mission aircraft. Likewise, the Department is exploring a common aviation plan to streamline acquisition and procurement strategies, training, and other areas.

In the Information Technology world, the Department will replace its numerous independent local networks with a Navy/Marine Corps Intranet (NMCI) capable of more efficiently and less expensively supporting more than 400,000 Navy and Marine Corps users. The NMCI architecture will provide a state-of-the-art voice, video, and data network with end-to-end computing services for forces ashore. NMCI will be fully interoperable with both afloat and shore commands through the IT21 and the Tactical Data Network (TDN) initiatives. It will provide better "speed of action" and significantly improve security through implementation and enforcement of standardized information assurance practices. Although some immediate restructuring of our operating costs will be necessary to support this consolidated service plan, the benefits are impressive. The end result will be a Navy Department enterprise-wide global information infrastructure with a high capacity for effective management and sustainment of deployed forces around the world.


The Navy and the Marine Corps have ongoing initiatives to translate such capstone concepts as Network-Centric Warfare (NCW) and Operational Maneuver from the Sea into reality. The Naval War College's Navy Warfare Development Command (NWDC) and the Marine Corps Combat Development Command (MCCDC) are tasked to refine these concepts and also develop future warfare ideas. NWDC's Maritime Battle Center (MBC) and the Marine Corps Warfighting Laboratory (MCWL) also explore candidate concepts, tactics, techniques, and procedures for the application of advanced technologies. Navy Fleet Battle Experiments (FBEs) and Marine Corps Advanced Warfighting Experiments (AWEs) test these new doctrines and ideas in the field, assess the utility of new technologies, explore new operational capabilities and organizational arrangements, and feed the empirical results back to the Development Commands.

Both the Navy and the Marine Corps strongly support joint experimentation initiatives. Indeed, given their long history of innovation, they actively support the Joint Experimentation Program at all levels, from concept development to experimentation analysis. In addition, the Navy and Marine Corps seek to be the "testbeds" by which joint experimentation can leverage Service-developed integrated warfighting concepts. For instance, in April 1999, the Extending the Littoral Battlespace (ELB) Advanced Concept Technology Demonstration (ACTD) conducted the first of two demonstrations of a wireless network connecting ships at sea, aircraft, and ground forces (both small units and individual Marines). This test illustrated the exceptional potential that wireless network technology holds for increased information exchange among all forces in a Joint Task Force organization.


The Services are making significant investments in fielding only interoperable systems and migrating in-service, legacy systems into the "netted" world. For example, the IT21 initiative will provide a reliable and ubiquitous network to all afloat commanders for rapid data flow among sensors, weapons, and command and control nodes and is key to the reprioritization of Command, Control, Communications, Computers, Intelligence, Surveillance and Reconnaissance (C4ISR) programs to execute the NCW concept. The Navy is developing a Common Command and Decision (CC&D) capability that implements tactical command and decision functions within a common open architecture. The ongoing Cooperative Engagement Capability program is also the key to the Navy's Single Integrated Air Picture (SIAP) concept that will maintain common, continuous and unambiguous track information on all airborne objects within a specified surveillance zone. Other key interoperability programs include the Global Command and Control System-Maritime (GCCS-M), and the MAGTF Software Baseline (MSBL).

Carriers and large-deck amphibious ships are also being fitted with identical or very similar command, control and communications (C3) subsystems. Improving configuration management and software standardization will result in better sharing of data among CVBGs and ARGs, improving speed of information flow, and providing a common view of the battlespace. To make sure these advanced C3 systems will work when and where it counts, interoperability testing begins long before a deployment with a well-defined configuration management and a systems-integration testing program for all deploying CVBGs and ARGs.

C4ISR systems for joint, allied, and coalition forces must be analyzed and agreed upon to make interoperability a reality. Use of COTS technology, international standards, and "plug and play" architectures offer ways to avert technology gaps with allies and provide the most economical course for achieving required capability. In many cases, policy and procedures can be improved to take advantage of emerging technologies that offer interoperable solutions. Security Assistance and Foreign Military Sales (FMS), Information Exchange, and Disclosure and Access processes, carefully administered, are also ways to enhance allied interoperability.

Doctrinal interoperability issues may be even more complex than technological ones. One of the challenges facing the Naval Services in the next few years is thinking through the operational and organizational implications of employing netted Centric Warfare." Certainly, naval forces have been operationally netted via tactical data links for decades. However, the extraordinary advances in information technology, particularly the networking of multiple systems, leveraged through efforts like IT21 and the NMCI, promise to increase the combat effectiveness of naval and joint forces far beyond what earlier data links enabled.

Reserve Integration

Some 89,000 Navy Reservists and 39,000 Marine Corps Reservists serve the Nation today, indistinguishable from their Active counter-parts. The effective integration of Reserve elements with Active components will be indispensable as demand for military forces increases and the Active force stabilizes at a reduced level. For example, the Marine Corps Reserve contributes approximately one-fourth of the force structure and one-fifth of the trained manpower of the total Marine Corps force.

Recognizing the great potential in our Reserve communities, we are identifying scenarios and roles that could require short- or long-term activation of the Reserves. Many Reservists possess skills gained in the civilian workforce that can be called upon when required by our Active forces. Thus, we are introducing a mechanism to identify the skill areas for which there is no active Departmental occupation counterpart.

In addition to the value of their military specialty training and training for mobilization, Reservists provide an essential link to American society. In many regions of the country, Navy and Marine Corps Reservists are the only symbols of Department of the Navy. They are recognized within their communities for the sacrifices of military life and their service to America, and as such they provide welcome feedback from their communities to Navy and marine Corps leaders. Our ability to leverage all of these strengths is important for future mission capability, but we must be sensitive to the legitimate needs of Reservists to pursue their civilian vocations.

Promising New Technologies

Advances in science and technology underpin transformation of our forces. Such advances may significantly affect disparate areas, from warfighting tactics and techniques to propulsion plants to overall platform cost and design. Some of these include:

Revolution in Business Affairs

Even as we seek the transformation of the warfighting capability of the Navy and Marine Corps, we also must fundamentally improve the supporting business processes of the Department. Frequently referred to as the Revolution in Business Affairs (RBA), our goal is to deliver state-of-the-art capability from equally modern and creative acquisition and support organizations, particularly in the commercial sectors of the U.S.

Advanced Technologies

By using advanced technologies in our next-generation aircraft carrier program, we anticipate total life cycle cost savings of about 30 percent for the second carrier of that class compared with today's Nimitz-class carrier, which includes a 20 percent reduction in manpower (approximately 600 billets). Following an evolutionary approach that inserts advanced technologies into key areas of the carrier, including integrated combat suites, propulsion and electrical distribution systems, an electromagnetic aircraft launch system, and a completely redesigned interior arrangement, we will enhance combat capability while improving "livability" and reducing total ownership cost.

Similarly, DD-21 will be the first major U.S. surface combatant designed as a single, integrated system. This holistic approach, encompassing the ship, all shipboard systems, crew, associated shore infrastructure, and all joint and allied interfaces, has the potential to reduce manning as well as operating and support costs by up to 70 percent.

Commercial Logistics Support

Another important element of the RBA addresses the feasibility of commercial logistics support to military systems, which will replace a "business-as-usual" approach in which the Services themselves are the logistics support agencies. In this regard, the V-22 Osprey program awarded a highly innovative, fixed-price contract for commercial procurement and logistic support of its engine. The contract provides two base years and five option years of contractor logistics support for the engine through Allison Engine Company's revolutionary "Power by the Hour" program. The cost avoidance from this commercial support approach is estimated to be approximately $533 million over the V-22 program lifetime and is related directly to improvements presently experienced on commercial engine variants.

Shifting Design Responsibilities

The Navy is shifting more design responsibilities to the shipbuilder and relying more on commercial tools, such as computer-aided designs. The design/build program being used in the Virginia-class SSN program resulted in a stable design at the start of lead ship construction and should preclude costly design changes during construction. This program includes the disciplined application of commercial specifications and components, which we believe will also help to reduce design and acquisition costs while at the same time enable the Navy to stay on the leading edge in technologies and systems.

Cycle Time Reduction

Integrated Product and Process Development is a management tool that integrates all activities from product concept through production and field support. It uses multifunctional teams to optimize simultaneously the product and its manufacturing and sustainment processes to meet cost, performance, and schedule objectives. We will look to industry to team with combat system integrators to provide designs that will meet our requirements, provide the latest technology, and reduce cycle time as well as total ownership cost. This approach is being used in the LPD-17 and DD-21 programs.


The first four Virginia-class SSNs are being built under an innovative teaming arrangement between General Dynamics Electric Boat Corporation (EB) and Newport News Shipbuilding (NNS). EB is the prime contractor responsible for the entire design/build process with NNS as the major subcontractor. Construction of the first four ships is shared by ship section: NNS builds the bow, stern, sail, and some forward sections of each submarine, while EB builds the hull sections, the engine room modules, and the command and control operating spaces. The two firms will then each assemble and deliver two submarines.

The Navy's DD-21 program uses a team-based acquisition approach that leverages competition and innovation. By requiring competition between teams of shipbuilders and system integrators in the initial concept phase of the program, we are assured of a better weapon system at the lowest future production and support costs. Allowing the teams to enjoy maximum design flexibility helps us to mitigate risks and future costs while potentially optimizing system capabilities.

Business Vision and Goals

During the past decade, America's commercial sector has reorganized, restructured, and adopted revolutionary new business practices to maintain its competitiveness in the global marketplace. While the Department of the Navy is not a business, it maintains a large and diverse business infrastructure to support its warfighting forces. Published in 1999, the Department's Business Vision and Goals provides guidelines for modernizing its business operations to match more closely those of the private sector. This vision statement seeks to support future initiatives across the Department while encouraging local innovation.

We already are improving our business practices through initiatives like Enterprise Resource Planning pilot projects, making costs more visible to decision-makers, and Electronic Business/Electronic Commerce which integrates business improvement efforts with enabling technologies. The Department-wide intranet will further streamline information flow. Additionally, capital investments in tools and materials, as demonstrated in the Smart Work program, will reduce labor burdens on our Sailors and Marines. The vision statement is supported by four strategic goals that provide an overall framework for the organizational and cultural changes needed to make our business side as effective as our warfighting side. These goals are:

The Navy and the Marine Corps show remarkable strength and adaptability in executing missions in the national interest. Our business vision and goals seek to channel this same energy and flexibility into building a modern, efficient support structure that supports individual initiatives and corporate action simultaneously.

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