DEPARTMENT OF THE NAVY

FY 2016 PRESIDENTS BUDGET

Rear Admiral William K. Lescher, USN
Deputy Assistant Secretary of the Navy for Budget

February 2, 2015

The Foundation Strategic Guidance

National
Security; Defense;
and Military Strategies

DoD
Strategic Guidance
Quad. Defense Rvw

CNO
CMC

SECNAV
People; Platforms
Power; Partnerships

CNO
CMC
Guidance

CS21R, EF21

Executing the Strategy the Navy and Marine Corps Today

Where it Matters, When it Matters
Russia
Ukraine

12 Ships

North Korea

Cyber Attacks

SPMAGTFCR-CC

Libya
SPMAGTFCR-AF

Syria
ISIL

Iran Taliban

AQAP
Ebola
Boko Haram
Al-Shabab

China

180 Ships
1 CVN
1 ARG/MEU

1 CVN
1 ARG/MEU

34 Ships

51 Ships

Piracy
1 CVN
1 ARG/MEU

1 CVN
1 ARG/MEU

Air
Asia

2 Ships
1 ARG/MEU
Executed the 4,000th
Strategic Deterrent
Submarine Patrol since 1960

Malaysia
Air

Personnel
Average Ship count
Legend
Crossroads
Naval Presence

Total:
Deployed:

Today / FY16 / FY20

279 / 282 / 304
99 / 103 / 115

Sailors deployed afloat

Sailors forward deployed
Marines deployed afloat

34,731
29,696
6,400

Marines forward deployed 26,962

as of 22 Jan 2015

Executing the Strategy Operational Trends

CY 13 Operational Employment

CY 14 Operational Employment

4
Planned Deployed Ships

Planned Deployed Ships

Executing the Strategy Resources

Department of the Navy Topline FY 2002-2020 (CY 2015)
200
180

-20%

160
BCA 2023
-25%
from
FY10
Peak

140
120
100
80

USN Programmatic Priorities:

USMC Programmatic Priorities:

Sea-based strategic deterrent

Global forward presence
Capability and capacity
Critical afloat and ashore readiness and personnel
Asymmetric capabilities
Relevant industrial base

Ready Force, forward postured for Crisis Response

Begin procurement/testing of next generation land
maneuver capability (JLTV/ACV)
Fifth Generation Aircraft (F-35)

60
40
20
0
FY02

FY03

FY04

Military Personnel

FY05

FY06

FY07

FY08

Operation and Maintenance

FY09

FY10

Procurement

FY11

FY12

FY13

FY14

Research and Development

FY15

FY16

Infrastructure

FY17

FY18

SMOSF

FY19

FY20

OCO Request

PB16: Challenging Fiscal Context; Dynamic Security Context

Executing the Strategy Resources

Department of the Navy Topline FY 2002-2020 (TY)
Total
Funding (TY)

FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12
FY13
$101.7 $126.3 $123.5 $133.6 $144.3 $151.6 $164.9 $166.8 $177.1 $176.8 $174.6 $163.1

FY14
$164.4

FY15
$159.3

FY16
168.0

FY17

FY18

FY19

FY20

Baseline
Funding (TY)

$101.7 $116.8 $118.4 $120.9 $127.9 $127.2 $139.2 $148.1 $156.1 $156.1 $158.3 $151.6

$150.2

$149.7

$161.0

$163.7

$165.0

64

67

67

66

65

50

51

53

53

46

47

49

50

$167.4 $167.7

180

160

26
180

120

100
80

39

$ in Billions (TY)

Billions of Dollars

140

10
170
160

44

17

54

40
20

140

33

59

52

64

70

65

65

60
167.7

14

7
10

59

59

164.3

161.0

38

43

FY 14

148.1

35FY 1536

37

35

36

37

37

40

FY 16

PB14

30

12

150
149.8

60

16
177.0

13

48

21

25
163.5

47
155.8

17

1 21

FY 17

PB16

38

40

42

42

FY 18

46
FY 19

47

48

47

46

50

44

45

45

46

FY 20

BBA / BCA

42

44

45

46

0
FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20
MilPers
Numbers may not add due to rounding

O&M

Investment

OCO

OCO Req.

ARRA

SMOSF

(FY 2009 $1B TY) (FY 2013 $0.4B TY)

(FY 2104 $2.2B TY)

Summary by Appropriation Group

FY 2016 DoN Base Budget
O&M: $50.4B
Ship Ops & Maint
Aviation Ops & Maint
Base Ops & Support
Marine Corps O&M
Combat/Weapons Support
Service Wide Support
Training and Education
Reserve O&M
Environmental Restoration
Mobilization
Navy: 32%

$12.6
$8.8
$7.6
$6.2
$5.6
$4.9
$1.8
$1.3
$0.3
$1.3

Navy: 23%

31%
28%

Procurement: $44.4B
Ships

$16.6

Aircraft

$16.1

Weapons

$3.2

Marine Corps

$1.1

Ammunition

$0.8

Other Navy Procurement

$6.6

Navy: 31%

Marine Corps: 6%

Marine Corps: 27%

MilPers: $46.0B
Basic Pays
Housing Allowance
Retired Pay Accrual
Health Accrual
Reserve Personnel
Subsistence
Allowances
Special Pays
Other

FY16: $161.0B

$19.2
$7.7
$6.0
$2.0
$2.6
$2.3
$1.2
$1.6
$3.4
Marine Corps: 61%

29%

11%
1%

Infrastructure: $2.2B
MILCON
BRAC
Family Housing
Navy: 1%

$1.7
$0.2
$0.3
Marine Corps: 3%

R&D: $17.9B
Basic Research
Applied Research
Advance Tech Dev
Adv Component Dev
System Dev & Demo
Management Support
Ops Systems Dev
Navy: 13%

$0.6
$0.9
$0.7
$5.0
$6.3
$1.0
$3.4

Marine Corps: 3%
7

= The percentage of each Services total budget applied to each appropriation group

Numbers may not add due to rounding

Military Personnel
Navy Personnel Strength

Marine Corps Personnel Strength

Focused on forward presence and crisis response:

Aligns with force structure decisions:

o FY16 Active end strength 329.2K
Fit / Fill funded at 92% / 95%

FY16 Active end strength 184K

Supports 1:2 deployment-to-dwell

o Restores 1 CVN, 1 CVW; stands up of CVN MH-60R squadron

o

o Supports CG/LSD Mod Plan; funds FY16 E/S for 9 CGs

Agile and ready today

FY16 Reserve end strength 38.9K

o FY16 Reserve end strength 57.4K

340,000
335,000
330,000

200,000

MPN
329,200

327,686
325,584

328,200

329,800

330,000

326,500

190,000

180,000

320,000

175,000
321,100

315,000
310,000

188,058
184,100

185,000

325,000
323,600

MPMC

195,000

322,500 322,800

323,200

184,000

182,000 182,000 182,000 182,000

182,700
179,400

170,000

175,000

175,000

175,000

FY17

FY18

FY19

165,000
FY14

FY15

FY16
PB 15

FY17

FY18

FY19
PB 16

FY20

FY14

FY15
PB 15

FY16

PB 15 Base / OCO

FY20

PB 16

Civilian Personnel
FTE
250,000

FY14
193,460

200,000
22,710

FY15
198,412

FY16
200,959

22,067

22,239

Highlights
Ship and Aviation Maintenance: Focused growth in
shipyard and aviation depot manning to address
maintenance backlogs.

150,000

Nuclear Enterprise Review: Additional FTE for

strategic weapons facilities and oversight.

100,000

Headquarters: Continue to streamline over the FYDP.

170,750

176,173

178,892

FY14

FY15

FY16

Overall FYDP: Decline of 2,517 FTE

50,000
0
Marine Corps

Navy

FY16
FY17
FY18
FY19
FY20
FYDP FTE* Profile: 200,959 201,989 200,241 198,827 198,442
*FTE=Full Time Equivalent

Total Department of the Navy

By Appropriation/Fund
Operation and Maintenance
Other (FHOPS/RDTEN)
Working Capital Funds

Electrical Engineer

FY14
FY15
FY16
193,460 198,412 200,959
113,200 116,898 119,282
1,451
1,699 1,737
78,809 79,815 79,940

Shipyard Workers

Readiness
($B)
6.0

Ship Operations

Flying Hour Operations

58 days/qtr deployed

Navy T-Rating 2.5*

Marine Corps T-Rating 2.0*

24 days/qtr non-deployed

5.0
4.0

1.7

1.2

($B)
10.0

1.2

*with exception of FA-18 A-D

0.4

8.0
6.0

1.4

1.0

2.0

3.4

3.9

4.3

6.0

1.0

2.0

0.0

0.0
FY15

7.5

0.6

0.4

0.4

0.2
0.3

0.0
FY15

FY16

4.7

FY14

5.1

FY15

0.2
5.2

FY16

Ship Depot Maintenance

Aircraft Depot Maint/Logistics

Facilities Support

100% of projected maintenance

funded

83% of projected maintenance

funded

Navy 84%/USMC 81%

of facility sustainment model

9.0
8.0

1.6

7.0

1.4

1.9
3.4

1.0

4.0

0.8

3.0
4.3

4.9

5.9

0.6

0.3

10.0

1.3

1.4

1.6

FY15

FY16

6.0

2.0

0.0
FY14

0.1
0.3

6.8

6.1

6.8

4.0

0.2

0.0

0.8

8.0

0.4

1.0

($B)
12.0

0.1
0.2

1.2

2.3

5.0

2.0

0.8

0.2
FY14

FY16

($B)
1.8

6.0

6.6

91% of projected
maintenance funded in FY16

0.2
FY14

($B)

($B)
1.0

0.6

3.0

4.0

Marine Corps Ground Equip

2.7

2.6

2.9

FY14

FY15

FY16

0.0
FY14

FY15

FY16

10

NAVY BASE

USMC BASE

OCO

Shipbuilding Procurement
Ohio Replacement Program
CVN 78
SSN 774
DDG 51
LCS
LHA(R)
LX(R)
LPD 17
AFSB
JHSV
T-AO(X)
T-ATF(X)/T-ARS(X)/T-ATS(X)
New Construction Total QTY
LCAC SLEP
Ship-to-Shore Connector
SC(X) (R) (LCU Replacement)
Moored Training Ships
CVN RCOH
Other Construction Total QTY

FY15
0
0
2
2
3
0
0
0
0
1
0
0
8
2
3
0
1
0
6

FY16
0
0
2
2
3
0
0
1
0
0
1
0
9
4
5
0
0
1
10

FY17
AP
0
2
2
3
1
0
0
1
0
0
1
10
4
5
0
1
0
10

FY18
AP
1
2
2
3
0
0
0
0
0
1
1
10
0
9
1
0
0
10

FY19
AP
0
2
2
2
0
0
0
0
0
1
2
9
0
10
3
0
0
13

FY20
AP
0
2
2
3
0
1
0
0
0
1
1
10
0
9
3
0
1
13

FYDP
0
1
10
10
14
1
1
1
1
0
4
5
48
8
38
7
1
2
56

SSN 784

DDG 51

Black Sea
Total Shipbuilding QTY
14
19
20
20
22
23
104
FY15 enacted includes Congressional adds for LPD 17 and one JHSV, as well as transfer of one SSC from
RDT&E,N.

RIMPAC 2014

LCS (Independence Variant)

Air Asia Search

LPD 17
Orion Recovery

11

LCS (Freedom Variant)

10

Aircraft Procurement
F-35B (STOVL)

MV-22

Fixed Wing
EA-18G
F-35B (STOVL)
F-35C (CV)
E-2D AHE
P-8A (MMA)
KC-130J (USMC)
Rotary Wing
AH-1Z/UH-1Y
CH-53K (HLR)
VH-92A
MV-22B*
MH-60R
MH-60S
UAV
MQ-8C Firescout
RQ-21A
Blackjack**
MQ-4 Triton

TOTAL

AH-1Z

FY15

FY16

FY17

FY18

FY19

FY20

FYDP

15
6
4
5
9
1

0
9
4
5
16
2

0
14
4
6
12
2

0
20
8
5
12
2

0
20
10
4
7
2

0
20
12
4
0
2

0
83
38
24
47
10

28
0
0
19
29
8

28
0
0
19
29
0

27
2
0
18
0
0

27
4
0
8
0
0

27
7
6
8
0
0

0
13
6
8
0
0

109
26
12
61
29
0

10

6
0

7
3

4
3

4
4

5
4

5
4

25
18

135

124

94

96

102

76

492

*FY 2018- 2020 MV-22 are for the Navy.

**FY16 includes OCO request for 3 RQ-21A systems.

MH-60R

CH-53K Stallion

P-8A

MQ-8C Firescout

12

11

Weapons Procurement
TACTOM

FY15

FY16

FY17

FY18

FY19

FY20

FYDP

TACTOM

243

100

100

SM6

110

113

125

125

125

125

613

RAM

90

90

90

90

90

90

450

ESSM

104

30

96

125

94

94

439

MK 48 HWT

19

31

40

47

145

MK 48 HWT MODS

44

81

30

75

76

76

338

MK 54 LWT MODS

100

140

192

172

167

167

838

24

120

168

157

469

167

227

221

227

153

152

980

167

154

233

238

233

1,025

JSOW C

200

AARGM

116

138

296

356

436

346

1,572

LRASM

10

25

25

28

88

JAGM

96

104

110

110

420

SOPGM

54

27

24

24

24

24

123

Maverick*

134

30

30

90

750

750

1,590

AARGM

Ship Weapons

LCS SSMM

AMRAAM

Aircraft Weapons

SM 6

AIM-9X
AMRAAM

SDB II

AIM-9X

* Includes OCO funding for 30 Laser Maverick weapons in FY 2016.

13

12

14

R&D Investment
$15.0B

$16.0B

$17.9B

Virginia Payload Module

Major Systems ($M)

FY14

FY15

FY16

1,056

1,223

1,391

Virginia Class SSN

115

206

283

AMDR

113

130

242

CVN 78

218

232

184

Shipbuilding

20.0

Ohio Replacement Program

18.0

Billions of Dollars

16.0

Surface Ship Torpedo Defense

14.0

83

51

77

161

87

110

Joint Strike Fighter (F-35)

835

1,022

1,149

CH-53K

448

560

632

93

368

507

MQ-4C Triton

375

451

227

UCLASS

115

403

135

42

43

53

Amphibious Combat Vehicle

35

106

219

G/ATOR

74

99

80

Railgun

126

113

111

Energy

246

252

231

55

LCS / Small Surface Combatant

12.0

Aviation

10.0

11.7

12.9

14.8

Executive Helo Development

8.0

F-35C

6.0
4.0
2.0
0.0

1.2
2.1

1.0
2.2

1.0
2.1

FY2014

FY2015

FY2016

Science & Technology

Management

Unmanned

MQ-8

USMC

Other

Development

ACV

Cyber (ORT/TFCA only)

15
Numbers may not add due to rounding

14

Military Construction & Family Housing

$1.7B

$1.1B

$1.7B

1,800
1,600

Millions of Dollars

1,400
1,200

719.0

751.0

1,000

Camp Pendleton
Solar Panels

P-8A Training Center,

Jacksonville

378.0

800

600
400

912.0

987.0

757.0

500.0

200

$430M

$371M

$370M

16.4

16.6

344.2

354.1

353.0

FY2014

FY2015

FY2016

450.0

FY2015
Navy

400.0

FY2016

Marine Corps

Major Categories

$ in Millions # of Projects

QOL

141.2

F-35

67.7

P-8A

83.2

Guam

125.7

Replace aging utilities - energy resilience

160.3

CENTCOM Support - Bahrain

89.8

Communications Center

75.3

Aegis Ashore Missile Defense - Poland

51.3

Numbers may not add due to rounding

Millions of Dollars

FY2014

85.7

350.0
300.0
250.0
200.0
150.0
100.0
50.0

0.0
FHOPS

FHCON

16

15

Overseas Contingency Operations (OCO)

Department of the Navy OCO ($B)

30
25
20
15
10
5
0
FY03

FY04

FY05

FY06

FY07

FY08

FY09

FY10

FY11

FY12

FY13

FY14

FY15

FY16
17

Numbers may not add due to rounding

16

Balancing
Focused Investment
Capacity; Capability; Readiness
Quality of Service
Nuclear Enterprise Review
Cyber Capabilities
Audit Readiness

Hard Choices
High-end aviation
Weapons procurement

Facilities sustainment

Innovation and Reform

Optimized Fleet Response Plan
Crisis Response - SPMAGTF
Energy security and resiliency
Innovation Task Force
Headquarters Reductions
Pay and Compensation
18

17

Where it Matters, When it Matters

Global Challenges
Violent Extremists - Rising Peer Competitors - WMD Proliferation
Cyber - Security of the Global Commons - Natural Disasters
Russia
Ukraine

12 Ships

North Korea

Cyber Attacks

SPMAGTFCR-CC

Libya

Syria
ISIL

Iran Taliban

AQAP
Ebola
Boko Haram
Al-Shabab
SPMAGTFCR-AF

China

34 Ships

1 CVN
1 ARG/MEU

180 Ships
1 CVN
1 ARG/MEU

51 Ships

Piracy
1 CVN
1 ARG/MEU

1 CVN
1 ARG/MEU

Air
Asia
Malaysia
Air

2 Ships
1 ARG/MEU
Executed the 4,000th
Strategic Deterrent
Submarine Patrol since 1960

Americas Naval Forces First Responders to Complex World Events

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18

For more Information

Fully searchable justification material available at:
http://www.finance.hq.navy.mil/fmb/PB/BOOKS.htm

2016

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6
6
6

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