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INSERT TITLE HEREBalancing Modernization and Operational Needs

NDIA Tactical Wheeled Vehicle Conference

LTG Stephen Speakes 5 February 2007

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Agenda

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• Evolving Strategic Environment

• An Army at War

• Army Modernization

• New Methods

• Way Ahead

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Evolving Strategic Environment

• Relentless cycle of changing tactics• Increasing lethality of enemy weapons (hyper kinetic)• Increasing importance of human dimension• Increasing importance of information operations

• 360° battlefield• Extended distances and borders• Complex terrain (urban, mountain, jungle, & littoral)• Dispersed targets

• Paramilitary and terrorist forces• Other types on the horizon• Adversaries have “gone to school” on US operations

3

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Our Army at War

• Surging in FY07

• Accelerating in FY08

• Growing in FY09-13

• Modernizing now – future

• Changing the Mobilization Policy

4

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Operational Demand > >QDR

Strategy Resources

Supplemental Program

Managing Shortages

5

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Army Resourcing Strategy

6

Initial April 2006 Fiscal Guidance

$100B

$110B

$120B

$130B

$140B

$150B

FY08 FY09 FY10 FY11 FY12 FY13

FY07 President’s Budget

Revised October President’s Budget Fiscal Guidance

Current Fiscal Guidance (Includes Growth)

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$0B

$20B

$40B

$60B

$80B

$100B

$120B

$140B

$160B

$180B

$200B

$220B

FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11

$38B $58B $68B**

Actual Execution Appropriations

$96B* $101B* $100B*

*Includes Chem Demil**Includes JIEDDO

$110B Request Pending

TBD TBD TBD

Supplemental Funding

Base Funding

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Base and Supplemental Funding

Final Request Pending

($49B in Title IX)

Request Pending GWOT Request

President’s Budget FY08(Planning)

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Army Investment Accounts

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10%

15%

20%

25%

30%

35%

1984 1987 1990 1993 1996 1999 2002 2005$10B

$15B

$20B

$25B

$30B

$35B

Investment Spending as a Percent of Total Army SpendingInvestment Spending (Constant 2000 Dollars)

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Army Modernization

9

Current

Future

Uncertainty

Industrial Age:Overwhelm with Force

Information Age:Empower the Soldier

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The Army’s Modernization Program

10

Threat+

MissionsImplies

C2ISR

Force Protection

ManeuverStrike

Capability

Changed environment implies changes in procurement.

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Future Combat System Strategy

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Modular Heavy BCT

Spin Out FCS Capabilities to Bridge Current to Future

Recapitalization

Modular FCS BCT

FutureCurrent

NetworkedMore SensorsMore Combat VehiclesMore Infantry SquadsMore DeployableFewer SoldiersMore Capable

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TWV Modernization

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Current:UAH

Future:JLTV

MRAP & Captains of

Industry

We need help from industry in accelerating this process!

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New Methods

• Working with Congress to create programming flexibility

• Working jointly with sister services to identify joint solutions

• Working cooperatively with industry to find solutions faster

• Working within the government to balance current force & future force

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Way Ahead

• Continue to fill the holes• Make Army modular force a reality

• Reset the force• Keep an Army at war ready

• Grow the force• Build strategic depth

• Modernize the force• Empower and protect the Soldier• Network the Soldier

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Questions ??Questions ??