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A Perspective on New Maritime Strategy in the Current Environment

John O’Neill

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Strategic Context

Influence and shape in diversifying areas

Increasingly diverse partners Domestic Agencies International Private

Increasing mission diversity GWOT/Homeland Defense Humanitarian assistance Nation-building Maritime interdiction

Rapid response timelines Decisive actions

Capability Based

Tenets of New Maritime Strategy Implications

Increasingly flexible, adaptable, reconfigurable forces

Increased multi-mission capability, agility/readiness

Rapid capability development/deployment

Sufficient numbers to support strategic tenets

Quantity also matters Cost must come down to support

budgetary reality

Budget Reality vs. Diversification: A Conundrum?Budget Reality vs. Diversification: A Conundrum?

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50

70

90

110

130

150

94 95 96 97 98 99 00 01 02 03 04 05

End Strength

290,000

300,000

310,000

320,000

330,000

340,000

350,000

360,000

370,000

380,000

390,000

$0

$5,000,000

$10,000,000

$15,000,000

$20,000,000

$25,000,000

$30,000,000End Strength MPN Funding

0

1000

2000

3000

4000

5000

6000

7000

Submarines Destroyers Amphibs Carriers

1967

2005

EnvironmentNavy Plan

Likely Outcome

Average Age

Declining/Aging Ship Force Structure Escalating Ship Acquisition Costs

Diminished Acquisition ForceManpower Costs Rising Disproportionately

Current approaches Current approaches do notdo not support strategy support strategy

#Ships

Age in Years

2005 $

$

Naval Personnel

100

300

5

10

15

20

2005 2025

1B

7B

290K

390K 30B

5B

50K

150K

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Necessary changes?

Reduce cost of new platform design/construction Improve electronics modernization

Extend the effective service life of existing platforms Increase ability to rapidly, affordably insert capability

Reduce Manpower/Total ownership costs Operational and Infrastructure

Doing more with same processes and costs?Doing more with same processes and costs?

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Reduce cost of new platform design/construction

Separate electronics life cycle from the platform Recognize that ship life spans 10 electronic generations Common electronics forward fit and back fit Optimize capability at fleet level, not platform level

Spiral development – Focus on eliminating change activity Requirements defined and frozen early in each spiral All but critical changes to next flight

Mature design prior to construction Drawing completeness prior to release – minimize reservations 100% drawing release prior to construction Construction process/technologies proven prior to start

Once design is proven, use EOQ for planned spiral qty’s Improve all stakeholder accountability for all business case/outcome

Program Management & System Engineering RigorProgram Management & System Engineering Rigor

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Improve Electronics Modernization New electronics business model supported by a systems

architecture that features: Common, scaleable systems Modular, federated components with well defined I/F’s Maximum use of commercial technology/practices Capability focused, ongoing Technology Transition

process widely open to academia/gov. lab/industry Lifecycle support/Technology Insertion/Development from

same process Measured, closed loop User process

Benefits: Highly adaptable to changing mission requirements Reduced time/costs of capability development and

upgrades Reduced total ownership costs Increased competitive acquisition

Affordability in Current Budget Environment Demands a New Affordability in Current Budget Environment Demands a New Electronics Business ModelElectronics Business Model

Time

Time

Cost

Capability

Rapid Capability Insertion Results

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Reduced Manpower/Total Ownership Costs

Operational Manpower reduction from increased reliance on: Remotely operated/automated systems Unmanned Systems (UAVs, USVs, UUVs) Netted, offboard systems including distance support and

reachback Increased redundancy with aim to eliminate onboard maintenance

Infrastructure Reduced Total Ownership Costs TOC from Increased commonality in warfighting capability areas Merging development and support infrastructures Increased redundancy with aim to eliminate onboard maintenance

training

Cost WalksCost Walks

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Summary

New Maritime Strategy and necessary force structure requires a modified acquisition approach

Lower costs for new platform design/construction Common systems across warfighting domains Business model that allows rapid capability evolution and

continuous competition Reduced Operational and Infrastructure manpower/costs