OFFICE OF THE UNDER SECRETARY OF DEFENSE(COMPTROLLER)/CHIEF FINANCIAL OFFICERFEBRUARY 2020

Defense Budget Overview
Irreversible Implementation of the National Defense Strategy
REVISED MAY 13, 2020

UNITED STATES DEPARTMENT OF DEFENSEFISCAL YEAR 2021 BUDGET REQUESTPreface
The Overview Book has been published as part of the President’s Annual Defense Budget for the
past few years. From FY 1969 to FY 2005, OSD published the “Annual Defense Report” (ADR)
to meet 10 USC section 113 requirements. Subsequently, the Overview began to fill this role.
The Overview is one part of an extensive set of materials that constitute the presentation andjustification of the President’s Budget for FY 2021. This document and all other publications forthis and previous DoD budgets are available from the public web site of the Under Secretary of
Defense (Comptroller): http://comptroller.defense.gov.
The Press Release and Budget Briefing, often referred to as the “Budget Rollout,” and the Program
Acquisition Costs by Weapons System book, which includes summary details on major DoD
acquisition programs (i.e., aircraft, ground forces programs, shipbuilding, space systems, etc.) areespecially relevant.
The website for Performance Improvement tables and charts is
http://dcmo.defense.gov/Publications/AnnualPerformancePlanandPerformanceReport.aspx.
Other background information can be accessed at www.defense.gov.

The estimated cost of this report or study for the
Department of Defense is approximately $29,000 for
the 2020 Fiscal Year. This includes $13,000 in expenses
and $16,000 in DoD labor. Generated on 2020Jan28
RefID: 6-78B6743

iChanges/Revisions as of May 13, 2020
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EXPLANATION OF CHANGE/REVISION
Update FY 2021 Defense-Wide Review reform opportunities total
Updated Figure 2.3 Civilians FTE
Added footnote to OCO for Base Requirements in Figure 6.1
Added footnote to OCO for Base Requirements in Figure 6.4
Updated the Office of Security Cooperation - Iraq (OSC-I) funding level
Updated Fourth Estate reform opportunities
Updated FY 2021 Reform totals
Updated FY 2021 Defense-Wide Review reform opportunities total
Reorganized the bullet on the Air Force is implementing the Pilot Training
Next
Updated Army lower priority programs
Updated the FY 2021 total program eliminations
Updated Table A-4 Combat Force Structure Overview

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PURPOSE
Revision
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Overview – FY 2021 Defense Budget
Table of Contents
1.

FY 2021 Budget Summary – A Strategy Driven Budget

1-1

Introduction ........................................................................................................................... 1-1
2018 National Defense Strategy........................................................................................... 1-2
FY 2021 Budget Request Overview ..................................................................................... 1-3
Continues to Strengthen Military Readiness and Invest in the Modernization of a More
Lethal Force…………………………………………………………………………………………1-5
Strengthens Alliances, Deepens Interoperability, and Attracts New Partners ...................... 1-9
Reforms the Department for Greater Performance and Accountability .............................. 1-10
Support Our People/Families ............................................................................................. 1-11
Conclusion .......................................................................................................................... 1-13

2.

Sustaining Our Forces

2-1

Military Compensation .......................................................................................................... 2-1
Military Housing Privatization Initiative ................................................................................. 2-2
Managing Military Health System ......................................................................................... 2-3
Strengthening Military Families ............................................................................................ 2-6
DoD Civilians ....................................................................................................................... 2-7

3.

Achieving a Sustainable Level of Readiness

3-1

Army Readiness ................................................................................................................... 3-2
Navy Readiness ................................................................................................................... 3-4
Marine Corps Readiness ...................................................................................................... 3-6
Air Force Readiness ............................................................................................................. 3-8
Space Force Readiness ..................................................................................................... 3-10
United States Special Operations Command Readiness ................................................... 3-11
Joint Capabilities ................................................................................................................ 3-12
Readiness Reform .............................................................................................................. 3-14

4.

Enhancing Lethality

4-1

The Growing Threat.............................................................................................................. 4-1
Power Projection .................................................................................................................. 4-3
Munitions .............................................................................................................................. 4-6
Nuclear Modernization/Nuclear Deterrence ........................................................................ 4-7
Missile Defeat and Defense.................................................................................................. 4-9
Science and Technology .................................................................................................... 4-12
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Overview – FY 2021 Defense Budget
Space and Spaced-Based Systems ................................................................................... 4-12
Cyberspace Activities ......................................................................................................... 4-13

5.

Establishing the Space Force

5-1

United States Space Force................................................................................................... 5-1
Fiscal Year 2021 Budget ...................................................................................................... 5-2
Transitional Budget and Resource Plan ............................................................................... 5-3

6.

Overseas Contingency Operations and Emergency

6-1

OCO Categories ................................................................................................................... 6-2
Current Operations ............................................................................................................... 6-2
OCO Functional/Mission Category ....................................................................................... 6-4

7.

Audit

7-1

The Department of Defense Consolidated Audit Strategy.................................................... 7-2
Audit Remediation ................................................................................................................ 7-3
Budget .................................................................................................................................. 7-4
Data Analytics....................................................................................................................... 7-5

8.

Reforming Defense

8-1

9.

Military Departments

9-1

Army .................................................................................................................................... 9-1
Navy/Marine Corps ............................................................................................................... 9-9
Air Force ............................................................................................................................. 9-19

10. Performance Plan and Annual Performance Report

10-1

Appendix A. Resource Exhibits

A-1

Table A-1 DoD Total (Base + OCO/Emergency) Budget by Appropriation Title .................. A-1
Table A-2 DoD Total (Base + OCO/Emergency) Budget by Military Department ................ A-1
Table A-3 DoD Total (Base + OCO/Emergency) Budget by Military Department andAppropriation Title ................................................................................................................ A-1
Table A-4 Combat Force Structure Overview ...................................................................... A-3
Table A-5 Active Component End Strength (in Thousands)................................................. A-4
Table A-6 Reserve Component End Strength (in Thousands) ............................................. A-4
Table A-7 DoD Base Budget by Appropriation Title ............................................................. A-4
Table A-8 DoD Base Budget by Military Department ........................................................... A-5
Table A-9 DoD OCO Budget by Appropriation Title ............................................................. A-5
Table A-10 DoD OCO Base Budget by Military Department ................................................ A-5
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Overview – FY 2021 Defense Budget
Table A-11 DoD Emergency Budget by Appropriation Title ................................................. A-6
Table A-12 DoD Emergency Budget by Military Department ............................................... A-6
Table A-13 DoD Base Budget by Military Department and Appropriation Title .................... A-6
Table A-14 DoD OCO Budget by Military Department and Appropriation Title .................... A-8
Table A-15 DoD Emergency Budget by Military Department and Appropriation Title .......... A-9

Appendix B. Acronym List

B-1



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TABLE OF CONTENTS
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Overview – FY 2021 Defense Budget

1. FY 2021 BUDGET SUMMARY – A STRATEGY DRIVEN BUDGET“In this new era of great power competition, our warfighting advantages overstrategic competitors are being challenged. The international, rules-based order
is increasingly under attack. China and Russia, today's revisionist powers, aremodernizing their militaries while seeking veto power over the economic andsecurity decisions of other nations.”- Secretary of Defense Mark T. Esper – December 2019

INTRODUCTION
The Department of Defense’s (DoD) enduring mission is toprovide a combat-credible military force to deter war, or
should deterrence fail, prevail in war. The 2018 National
Defense Strategy (NDS) correctly identified a fundamental
problem for the Department—the erosion of competitive
military advantage with China and Russia in key regions.
It is the Department’s responsibility, and the highest
imperative of the Strategy, to reverse this erosion, while
sustaining efforts to deter and counter threats from Iran andNorth Korea, and defeating violent extremist threats to theUnited States. It is critical for DoD to reverse this erosion.
Doing so will ensure DoD can continue deterring
aggression and coercion from those that would seek tosupplant the United States and challenge the free andopen international order that forms the foundation of ourcontinued freedom and prosperity.

Sections•

Introduction•2018 National Defense
Strategy•

FY 2021 Budget Request
Overview•

Build a More Lethal Force•Strengthen Alliances andAttract New Partners•

Reform for Greater
Performance and Affordability•

Support Our People/Families•

Conclusion

Great power competition is the pre-eminent challenge facing the nation’s security. China
possesses one of the largest militaries in the world and is becoming increasingly comfortable
portraying itself as a counter to the United States. China’s spending specifically targets key U.S.
military advantages with new capabilities in space, cyber, electronic warfare, undersea warfare,fighter aircraft, bombers equipped with long-range cruise missiles, and other anti-access, area
denial (A2/AD) capabilities. Russia too has invested heavily in A2/AD capabilities to prevent anadversary from operating in Eastern Europe, including advances in strategic air operations,
integrated air defense systems, surface to-air-missiles, and coastal defense cruise missiles.
Russia has also upgraded conventional forces while investing heavily in cyber, space, electronic
warfare, and hybrid warfare capabilities. Additionally, Russia is comprehensively improving its
strategic nuclear weapons and delivery systems with a projected investment of $28 billion by
2020. This investment will allow Russia to upgrade its capacity in intercontinental ballistic
missiles, ballistic missile submarines, and strategic bombers.
The DoD must balance ongoing activities directed at long term strategic competition while
simultaneously addressing regional aggressors and other acute operational demands. Since
2016, DoD has made significant progress on a range of fronts to compete with China and Russia
by prioritizing modernization, innovation, and high-end readiness, while also recognizing theimmediacy of the challenge posed by regional aggressors. However, competitive defense
investments alone will not deter China and Russia. Great power competition also means that DoD
must develop new concepts and organizational approaches for force employment and design,
posture, and warfighting. The DoD is building increased flexibility and responsiveness into its
global force posture, allowing the Department to dynamically flow capabilities to global hotspots
on short notice.
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FY 2021 BUDGET SUMMARY – A STRATEGY DRIVEN BUDGET
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Overview – FY 2021 Defense Budget

2018 NATIONAL DEFENSE STRATEGY
In August 2019, Secretary of Defense Esper reaffirmed the validity of the
National Defense Strategy as the Department’s guidepost.
The 2018 NDS remains the guidepost for DoD and focuses activities on three major lines of effort:
enhancing our military’s readiness and lethality, strengthening our alliances and attracting newpartners, and reforming DoD to ensure resources are directed toward our highest priorities. In
addition, DoD is also placing renewed emphasis on taking care of our service members and theirfamilies. The 2018 NDS represented a major shift; one that is not fully achieved in just one year.
There is important work ahead to field a more lethal, resilient and ready force that is better
prepared to solve tough operational problems.
Since the NDS was released, DoD has invested in new equipment, improved operational
readiness, and modernized our nuclear deterrent forces. For example, DoD is developing next
generation smart munitions across the services, procuring advanced fighter jets, modernizing all
three legs of the nuclear triad, and investing in missile defense to protect the homeland.
The DoD also continues to invest in advanced technologies that will help maintain tacticaladvantage, such as artificial intelligence, directed energy, and hypersonic weapons. DoD’s
FY 2021 research and development budget is the largest ever requested and is laser focused on
the development of these crucial emerging technologies to expand our warfighting advantages
over strategic competitors.
The DoD must preserve battlefield overmatch, and is doing so through activities such as theestablishment of the United States Space Force and modernization of space capabilities. The
DoD has also increased investments in offensive and defensive cyber operations to boost
resiliency against adversaries, as evidenced by standing up the Joint Artificial Intelligence Centerto adapt to the pending growth of machine learning, and to capitalize on big data to gain
efficiencies across DoD.
Great power competitors will not remain static. They too are developing cutting edge technologies
with the aim of surpassing the United States. Competing relies on more than smart investments,
it also requires new concepts, and robust international relationships. Competing also requires
internal reform; DoD will revisit management structures and processes to achieve new levels of
integration between the various functions of the Department. This will result in greater speed toaddress the threats great power competitors pose to the United States. The Department is fully
engaged in these areas, and will continue to seek full and rapid implementation of the 2018 NDS.

The NDS drives our decision-making - focusing our resolve and efforts onenhancing our military's readiness and lethality; strengthening our alliances
and attracting new partners; and reforming the Department to make sure ourfinite resources are directed toward our highest priorities.

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Overview – FY 2021 Defense Budget

FY 2021 BUDGET REQUEST OVERVIEW“The President and Congress have placed an emphasis on funding themilitary. Our budgets over the past three years have allowed us to reverse thedecline in readiness, while beginning to modernize our air, land, sea, space,and cyber capabilities. However, there is no guarantee that this level offunding will continue into the future. To meet the objectives outlined in the
NDS, we must continue to make the most of every resource.”- Secretary of Defense Mark T. Esper – January 2020

The DoD FY 2021 budget supports the irreversible implementation of the NDS, which drives the
Department’s decision-making in reprioritizing resources and shifting investments to prepare fora potential future, high-end fight. This budget resources the following four focus areas to build amore lethal, agile, and innovative joint force:
1. Continues to strengthen military readiness and invest in the modernization of amore lethal force
2. Strengthens alliances, deepens interoperability and attracts new partners
3. Reforms the Department for greater performance and accountability
4. Supports service members and their families, recognizing that our people are ourmost valuable resource
Figure 1. Department of Defense Budget
FY 2018
Actuals

FY 2019
Actuals

FY 2020
EnactedFY 2021
Request

Base

599.6

616.4

633.3

636.4

Overseas Contingency Operations

65.2

68.6

66.4

53.0

OCO for Base

--

--

4.9

16.0

Emergency

5.8

2.8

8.0

--

670.6

687.8

712.6

705.4

$ in billions

Total

Irreversible Implementation of the National Defense Strategy•••

FY 2017 – FY 2018 – Readiness and Recovery: Additional appropriations for nearterm readiness, “must-pay” bills, and force structure gaps
FY 2019 – FY 2020 – Modernization and Lethality: Key down payments on
lethality, turning to great power competition, and continuing full spectrum readiness;priority on innovation and modernization to strengthen competitive advantage acrossall warfighting domains
FY 2021 – All Domain Operations: Continues to strengthen military readiness andinvest in the modernization of a more lethal force; focuses on joint enablers anddominance across all domains: Air, Land, Sea, Space, and Cyber; prioritizes
nuclear deterrence recapitalization and strengthens homeland missile defense; andadvances development of critical technologies

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FY 2021 BUDGET SUMMARY – A STRATEGY DRIVEN BUDGET
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Overview – FY 2021 Defense Budget

Sustainable, predictable, adequate, and timely budgets are required to prevail
in long-term great power competition.
Based on the spending limits established in the Bipartisan Budget Act of 2019 (BBA 2019), thePresident’s FY 2021 budget request for DoD is $705 billion. This budget represents a $0.8 billion
increase over the FY 2020 enacted appropriation excluding natural disaster relief emergency
funding. To live within the BBA 2019 agreement levels, the Department made tough choices andrealigned resources to sustain and advance the recent gains in readiness and lethality.
Beyond additional investments in readiness, modernization, and innovation, increasing thelethality of our military requires deep commitment to and from our allies and partners; continual
business and organization reforms to ensure our resources are directed towards the highest
priorities; and finally, fully supporting our people by ensuring they have the resources they needto thrive. The remainder of this chapter summarizes the key investments and initiatives withineach of these four focus areas for the FY 2021 budget request.
Figure 2. DoD Topline Funding FY 2015 – 2021

Discretionary Budget Authority
Then Year Dollars in Billions

The FY 2021 budget flattens funding levels with a $0.8 billion increase over the
FY 2020 enacted appropriation for Base and OCO.

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Overview – FY 2021 Defense Budget

CONTINUES TO STRENGTHEN MILITARY READINESS AND INVEST IN THE
MODERNIZATION OF A MORE LETHAL FORCEThe FY 2021 budget request continues building a more lethal force by maximizing force
readiness, modernizing capabilities in all warfighting domains, and innovating to expand
our competitive advantage.
Maximizing Force Readiness••

Robustly funds readiness across each of the Services (FY 2021,$125.1 billion)oArmy: Adds $3.4 billion to fund critical training and readiness;increasing scale of Defender Series exercises and resourcing
Dynamic Force EmploymentoNavy and Marine Corps: Increasing funding by $2.7 billion tomaintain and expand readiness recovery of the fleeto

Air Force: Grows funding by $1.7 billion in core readinessprograms such as depot maintenance, contractor logistics
support, and flying hours

o

U.S. Special Operations Command (USSOCOM): Funds highlevels of readiness to balance demands of day-to-day
operations, major contingency operations, and crisis response
missions; FY 2021 includes a net increase in key readiness
investments of flying hours, formal training, and exercises

Increases total military end strength by approximately 5,600 overcurrently projected FY 2020 levels

Modernizing Across All Warfighting Domains 1
Space ($18.0 billion)•

Expeditiously building U.S. Space Force (USSF)•

Reduces risk to satellite communications jamming (FY 2021,$858 million)•

Increases Global Positioning System Follow-on satellites andOperational Control System (FY 2021, $1.8 billion)•

Improves space-based missile warning capabilities (FY 2021,$2.5 billion)•

Continues investment in space launch capacity (FY 2021, $1.6 billion; 3 launches)

Cyber ($9.8 billion)•

Resources cybersecurity capabilities to reduce risk to DoD networks, systems, andinformation (FY 2021, $5.4 billion)•

Invests in both offensive and defensive cyberspace operations (FY 2021, $3.8 billion)

1
Referenced dollar amounts are for procurement and RTD&E in most cases; additional funding categories are included in Space,
Cyber, and Missile Defeat and Defense amounts. See following chapters for a detailed breakdown by type of funding for each item.

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Overview – FY 2021 Defense Budget•

Supports Cyber Mission Force Teams that execute the USCYBERCOM operational
mission (FY 2021, $2.2 billion)•

Funds advanced Cyber research and development activities (FY 2021, $0.6 billion)“When we put boots on the ground, ships on the sea, or planes in the sky, we mustensure our units are performing the most high-payoff activities in line with ourstrategic priorities.”- Secretary of Defense Mark T. Esper, January 2020

Air ($56.9 billion)•

Increases capability and capacity with procurement of new 4th and 5th Generation aircraft(FY 2021, $15.1 billion; 115 quantity)•

KC-46 tanker (FY 2021, $3 billion; 15 quantity)•

AH-64E Apache Attack Helicopter (FY 2021,$1.2 billion; 52 quantity)•

Continues development test and evaluation of
the Advanced Trainer program (FY 2021,$0.2 billion)•

Initiates Special Operation Forces Armed
Overwatch capability (FY 2021, $0.1 billion;
5 quantity)•

Advanced Medium-Range Air-to-Air Missile (AMRAAM) (FY 2021, $876 million;
739 quantity)•

Joint Air-Surface Standoff Missile – Extended Range (JASSM-ER) (FY 2021,$577 million; 400 quantity)

Maritime ($32.3 billion)••

Continues progress towards growing the Battle Force fleet from 292 in FY 2019 to 306 in
FY 2025, with a focus on more capable ships to enable distributed maritime capability(FY 2021, $18.9 billion)o

1 Virginia Class Submarine (FY 2021, $4.7 billion)o

2 DDG-51 destroyers (FY 2021, $3.5 billion)o

1 FFG(X) Frigate (FY 2021, $1.1 billion)o

1 SSBN Columbia Class Submarine (FY 2021, $4.4 billion)

Increases and diversifies strike options, including offensive-armed unmanned surface andunderwater vessels, and advanced long-range missilesoLarge Unmanned Surface Vessels (USVs) (FY 2021, $464 million, 2 quantity)oLong Range Anti-Ship Missiles (LRASM) (FY 2021, $224 million, 53 quantity)o

Tactical Tomahawk (TACTOM), including some with Maritime Strike Capability(FY 2021, $603 million, 203 quantity)

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Overview – FY 2021 Defense Budget
Land ($13.0 billion)•

Ground forces provide combat power to assure
allies, deter aggression, and win the Nation’s wars.

•

The FY 2021 budget funds 5,444 combat andtactical motorized vehicles. (FY 2021, $6.9 billion)•oIncludes 4,247 Joint Light Tactical Vehicles, afamily of vehicles designed to perform multiple
mission roles; provide protected, sustained,
networked mobility for personnel and payloads
across the full Range of Military Operations;and achieve battlefield superiority against
opposing forces (FY 2021, $1.4 billion)oIncludes 72 Amphibious Combat Vehicles, an armored personnel carrier that provides
improved lethality against dismounted enemy troops; more effective land and watertactical mobility, including a swim capability; and increased force protection andsurvivability from blasts, fragmentation, and kinetic energy threats for employment
across the range of Marine Corps operations (FY 2021, $521 million)

Close Combat investments in multiple systems continue to provide combat overmatch in
the last 200 meters of contact. Modernization investments to increase Soldier lethality
include Next Gen Squad Weapons, Integrated Visual Augmentation System, andEnhanced Night Vision Goggle-BinocularMulti-Domain••

Missile Defeat and Defense ($20.3 billion)o

The Department is committed to supporting the 2019 Missile Defense Review, whichcalled for a layered defense, comprehensive missile defense capabilities, flexibility andadaptability, tighter offense-defense integration and interoperability, and theimportance of space.

o

The FY 2021 budget request focuses on a diversified set of missile defeat and defense(MDD) capabilities to counter the advancing threat and includes $9.2 billion for theMissile Defense Agency (MDA), $7.9 billion in regional and strategic missile defense
capabilities outside of MDA, and $3.2 billion in missile defeat or left-of-launch activities.
-

Expands capability/capacity for Terminal High Altitude Area Defense (THAAD)(FY 2021, $916 million; 41 interceptors) and Aegis Ballistic Missile Defense(SM-3) (FY 2021, $619 million 40 missiles) for regional missile defense-

Pursues layered homeland defense approach to include development of a Next
Generation Interceptor (NGI) for Ground-Based Interceptors (GBI) and
improvement to regional defense systems to enable limited homeland defense
capability-

Supports completion of additional missile field in Alaska to enable an operational
fleet of 44 GBIs and 20 NGIs in the future

Nuclear Enterprise ($17.7 billion)o

The 2018 Nuclear Posture Review affirmed the need for the nuclear triad, validating
DoD’s long-overdue recapitalization of the nation’s nuclear armed missiles,

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Overview – FY 2021 Defense Budget
submarines, bombers, dual-capable aircraft, and related infrastructure to keep U.S.
nuclear deterrent credible and modernized for decades.
o•

The FY 2021 budget request:-

Recapitalizes capability with Ground
Based Strategic Deterrent (FY 2021,$1.5 billion), B-21 Bomber (FY 2021,$2.8 billion), and Long-Range Stand
Off Weapon (FY 2021, $474 million)-

Enhances strategic deterrence with
Columbia class submarine (FY 2021,$4.4 billion)-

Enhances Missile Warning
capabilities-

Enhances Nuclear Command, Control and Communications (NC3) capabilities
across the spectrum of military operations. (FY 2021, $4.2 billion)

Special Operations Forces (SOF) ($3.0 billion)o

The FY 2021 budget for SOF investments procures, modernizes, and/or modifies
SOF-peculiar aviation, mobility, and maritime platforms, weapons, ordnance, andcommunications equipment. These programs and their funding directly support the
NDS to build a more lethal, resilient, and rapidly innovating Joint Force.

o

The FY 2021 budget sustains SOF growth and readiness, and increases lethality
through modernization and recapitalization, and investing in new technologies. This
includes investments in:-

Warrior Systems (FY 2021, $293 million)-

Precision Strike Package (FY 2021, $243 million)-

Rotary Wing Upgrades and Sustainment (FY 2021, $211 million)-

AC/MC-130J aircraft/gunships (FY 2021, $164 million)-

Armed Overwatch/Targeting (FY 2021, $106 million)

Innovating to Expand Our Competitive Advantage
The FY 2021 budget continues significant investment in Advanced Capability Enablers (ACEs),
technologies focused on a high-end fight. The Department’s focus on science and technology
and efforts to bring advanced capabilities to the field are rapidly reasserting our competitive
advantage.
Selected efforts include:•

Hypersonics – Accelerates development of Army Long Range Hypersonic Weapon(LRHW); increase funding for Navy Conventional Prompt Strike (CPS), and Air Force
Advanced Rapid Response Weapon (ARRW) (FY 2021, $3.2 billion)•

Microelectronics/5G – Funds critical Artificial Intelligence-pacing technology; continues
addressing trusted and assured supply of microelectronics. Hastens adoption of“ubiquitous connectivity”, sharing more data at greater network bandwidth (FY 2021,$1.5 billion)

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Overview – FY 2021 Defense Budget•

Autonomy – Enhances speed of maneuver and lethality in contested environments;
develops human/machine teaming (FY 2021, $1.7 billion)•

Artificial Intelligence (AI) – Continues the AI pathfinders, Joint Artificial Intelligence Center(JAIC) and Project Maven (FY 2021, $0.8 billion)

While any investment in innovation runs the risk of an uncertain outcome, these select efforts arenecessary to increase our competitive advantage against near-peer adversaries.

DoD’s FY 2021 research and development budget is the largest ever requested
and laser focused on the development of crucial emerging technologies toexpand our warfighting advantages over strategic competitors.
STRENGTHENS ALLIANCES, DEEPENS INTEROPERABILITY, AND ATTRACTSNEW PARTNERS
DoD is strengthening and leveraging America’s network of allies and partners to compete with
China and Russia. This is a foundational pillar of the2018 NDS and a great strategic advantage overcompetitors. As competitors seek to advance theirown revisionist view of the world, consistent with theirauthoritarian models, the DoD understands that theirstrategies involve isolating and trying to gain leverageover countries through predatory approaches andintimidation. The United States believes that a free
and open international environment is paramount, andas such continues to pursue capabilities that sustain
this reality for all.
To remain competitive in this environment, DoD is
pursuing several measures to bolster defense relationships. In some cases, this necessitates
hard conversations to ensure appropriate burden-sharing and targeted capability development toaddress shared challenges.
•

Indo-Pacific: In the Indo-Pacific, DoD is strengthening and evolving U.S. partnerships into asecurity architecture that helps uphold a “free and open” order. With Japan, DoD is integrating
NDS implementation with Japan’s National Defense Program Guidelines and participating inongoing defense dialogues to re-evaluate roles, missions and capabilities while increasing
operational readiness and training. With India, DoD is expanding military-to-military
cooperation and improving interoperability, including by establishing a new tri-service
amphibious exercise, TIGER TRIUMPH. Singapore hosted the transit and rotational
deployment of more than 1,500 U.S. military aircraft and vessels (2015-2018). For Taiwan,
DoD approved over $10 billion in defense sales such as M1A2 tanks and F-16s to recapitalize
its force. More broadly, DoD is investing in programs like the Maritime Security Initiative tobuild the capacity of our allies and partners in the region, including developing partners’ ability
to conduct maritime security and maritime domain awareness operations, and advancing
interoperability with U.S. forces.

•

Europe: The North Atlantic Treaty Organization (NATO) announced that 2019 defense
spending across European Allies and Canada increased in real terms by 4.6 percent, the fifth
consecutive year of growth. By the end of 2020, these Allies will have increased investment
in FY 2020 by $130 billion cumulatively from FY 2016, and this accumulated increase in
defense spending is projected by the NATO Secretary General to rise to $400 billion by 2024.

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Overview – FY 2021 Defense Budget
In addition, NATO announced it has improved readiness through the NATO ReadinessInitiative or “4 30’s” in which NATO nations have committed 30 fighter aircraft squadrons, 30
mechanized infantry battalions, 30 naval surface combatants that must be ready to deploy in
30 days.
•

Middle East: The DoD acknowledges that a stable world requires a stable Middle East, andso the Department is focused on durable progress and investments in this area. Between
2015 and 2019, the United States trained 3,200 military officers throughout the region. Overthe last 5 years, U.S. foreign military sales have totaled approximately $132 billion within the
Middle East. The DoD also encourages partners in the region to take responsibility for theirown security. There are key examples of allies in the region taking leading roles in providing
for their own regional defenses – for example, the Saudi-led Regional Integrated Air andBy the end of 2020, NATO Allies will have increased cumulative defense
spending from FY 2016 by $130 billion under the Trump administration and is
projected to rise to $400 billion by 2024.
REFORMS THE DEPARTMENT FOR GREATER PERFORMANCE AND
ACCOUNTABILITY
Reform is an improvement to purchasing, processes, systems, policies, or acquisitions that
increases effectiveness, efficiency, or reliability to best align the Department’s resources insupport of the NDS. We have pursued reform efforts throughout the Office of the Secretary of
Defense, the Military Departments, Defense Agencies and Field Activities, and CombatantCommands.
In FY 2019, DoD programmed and executed reform efforts in the management of contracts,
information technology (IT), healthcare, personnel, acquisitions, financial operations, divestmentof equipment and other areas to save $6.0 billion. In FY 2020, DoD is committed to achieving the$7.7 billion savings we re-allocated to higher priority needs in the FY 2020 President’s Budget.
The FY 2021 budget is indicative of the Department’s formalized process to account for savingsin support of the Department’s third line of effort in the NDS. In August of 2019, the Department
launched the Defense-Wide Review (DWR), a comprehensive review and rationalization of all
DoD organizations, programs, functions, and activities outside of the Military Departments to
identify savings in FY 2021 and in future years. The DWR was a major DoD initiative by the
Department to improve the alignment of time, money, and manpower to NDS priorities.
Specifically, the Secretary of Defense and the Deputy Secretary of Defense led 21 review
sessions examining $99 billion of appropriated resources across roughly 50 Defense-Wide (DW)
organizations and activities.
Over the course of 4 months, the DWR leveraged a risk-based approach to decrease overhead,divest of legacy activities, and reduce the cost of lower priority programs, enabling the Department
to increase investment in innovation and enhance lethality to our competitive military advantage
in high-end warfare. The DW programs reduced were not wasteful or mismanaged but weregenerally considered non-core or lower priority activities not tightly aligned to the NDS. Ultimately,
the DWR identified aggressive reform opportunities resulting in over $5.7 billion in FY 2021
savings for reinvestment in lethality and readiness, and an additional $2.1 billion in activities andfunctions to realign to the Military Departments.
In addition to the DWR efforts, the FY 2021 budget includes $3.4 billion in new savings acrossthe Military Departments and the Missile Defense Agency, which allows us to further resource amore lethal Joint Force. The Department is shifting levers of business operations to achieve
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Overview – FY 2021 Defense Budget
reform at the enterprise level. These levers, their definitions, and the total FY 2021 savings orinvestment associated with each lever include:
•

•

•

•

•

•

Business Process Improvement – Refining actions, personnel, and timelines to increase
effectiveness, efficiency, and reliability of the Department’s delivery of goods and services.
(FY 2021, $608.9 million)
Business System Improvement – Modernizing and eliminating legacy business systems
and processes to increase the effectiveness and reduce duplication of the Department’s
IT business systems and deliver information at the speed of relevance.
(FY 2021, $9.3 million)
Policy Reform – Changing the Department’s procedures to best empower the warfighterwith the knowledge, equipment, and support systems to fight and win.
(FY 2021, $129.6 million)
Weapon System Acquisition Process – Procuring and sustaining weapon systems
differently to prioritize speed of delivery, continuous adaptation, and frequent modular
upgrades. (FY 2021, $166.8 million)
Divestments – Selling equipment or weapon systems, or strategically discontinuing legacy
acquisition programs to fund purchases in support of the Department’s highest priorities.
(FY 2021, $1.0 billion)
Better Alignment of Resources – Reprioritizing or moving finances and personnel torealign from legacy capability in support of the NDS. (FY 2021, $1.4 billion)

The DoD is actively institutionalizing reform and is committed to reinvesting the savings in supportof readiness and lethality priorities.

We have a responsibility to gain full value from every taxpayer dollar spent on
defense. Through this budget submission we aim to maintain the trust ofCongress and the American people.
SUPPORT OUR PEOPLE/FAMILIESDoD recognizes that our people – military and civilian –are both our most valuable resource and the key toaccomplishing the objectives provided in the NDS. It is
critical that the Department remain committed toensuring that the service members, families andcivilians, which provide the Department’s competitiveedge are well compensated.
A competitivecompensation package must be sustained even as the
Department prioritizes funds toward the NDS, as
everything we do depends on the dedication and skill of
the men and women who sacrifice their own comfort
and safety to safeguard the freedom we enjoy everyday.
The FY 2021 Budget request strengthens the backbone of America’s national security – Service
members, military families and DoD civilians by ensuring they have the resources to thrive throughinvestments in compensation, quality-of-life/family support initiatives (investing over $8 billion)
and commitments to improve their safety.
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Overview – FY 2021 Defense Budget
Notable investments include:• Supports a 3 percent military pay raise• Supports expansion of paid parental leave for DoD civilians• Includes funding for child development programs, which serve over 160,000 children, andyouth and teen programs, which serve over 1 million children• Funds mission sustaining programs such as fitness centers, libraries, and single service
member programs; voluntary education; and recreation programs such as outdoor
recreation and auto skills centers• Includes funding for family support centers, and non-medical counseling support services
for Active Duty, National Guard, and Reserve members and their families• Supports the Defense Commissary Agency to operate 236 commissary stores on military
installations worldwide, employing a workforce of over 12,000 civilian full-time equivalents• Funds repeal of Survivor Benefit Plan/Dependency and Indemnity Compensation offset• Commits to providing safe and quality residences to service members and their families
by increasing oversight of military housing operations

The FY 2021 budget funds a 3.0 percent military pay raise.

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CONCLUSION
Sustainable, predictable, adequate, and timely budgets are a must if the Nation is to prevail overthe long-term in the great power competition. Building on the success of the congressional
appropriations of the past 3 years, which have repaired damaged readiness and significantly
increased investments in modernization and innovation, the FY 2021 budget request
institutionalizes the execution of the NDS concept and strategy for irreversible development of amore lethal and efficient force that can project power globally against a full spectrum of threats.
Congressional approval of the FY 2021 budget will solidify and expand our competitive advantage
over the coming decades, while holding DoD spending near historical lows as a share of the U.S.
economy.
Figure 3. DoD Outlays as a Percent of Gross Domestic Product (GDP) FY 1953 – FY 2025

Source: DoD spending as a percent of GDP compares DoD outlays, both discretionary and mandatory, from the National Defense
Budget Estimates for FY 2020 (Table 7-7) and projected GDP from OMB’s Economic Assumptions for the FY 2021 Budget.

The FY 2021 budget is near a record post-World War II low
as a percent of our economy.

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2. SUSTAINING OUR FORCES“I understand well the sacrifices our Service Members, Civilians, and their
Families make to protect this great country. This is why I am committed totaking care of Families and ensuring they have the resources they need to
thrive.”- Secretary of Defense Mark T. Esper – June 2019

The Department of Defense (DoD) Workforce: Military —Sections
Active, Reserve, and National Guard — and Civilian
personnel are the foundation of the Department and • Military Compensation
constitute its most valued asset. As such, DoD personnel • Military Housing Privatizationmust have the full support of the Nation to ensure the DoD
Initiative
successfully accomplishes the foundational mission of
defending the United States. As the Department focuses • Managing the Military Health
Systemon long-term structural reform to divest legacy activities
and lower priority programs to provide the warfighters more • Strengthening Militaryof what they need to deter, fight, and win in today’s
Families
complex security environment, it must efficiently manage
its Total Force of active and reserve military personnel, • DoD Civilians
government civilian personnel, and contracted services.
That means the DoD must have the right manpower and human capital resources in the rightplaces, at the right time, at the right levels, and with the right skills to provide for the Nation’s
defense, while simultaneously being good stewards of taxpayers’ dollars.
The Secretary of Defense added “line of effort four” to the National Defense Strategy (NDS),
taking care of service members and their families. The Department is committed to providing acompetitive compensation package for those individuals willing to voluntarily serve their country.
This commitment is built into the Fiscal Year (FY) 2021 budget request and is demonstrated by
the number of initiatives and programs to support their professional development and take careof them and their families.

3 percent military pay raise – sustains the force and builds on readiness gains.
The FY 2021 budget request continues to advance the objectives of the NDS by sustaining thegains in recent budgets and continuing to build a bigger more lethal and ready force. Military pay
and benefits funding grows by more than $8.7 billion over the FY 2020 enacted level. This
increase includes funding for a 3.0 percent military pay raise and will continue to grow the Total
Force end strength by approximately 5,600 over the currently projected FY 2020 levels, which isdesigned to increase overall capacity and improve readiness through reduced operational andpersonnel tempo. In addition, these end strength increases will allow the Services to bettersupport advanced capabilities like cyber, electronic warfare, and special operations needed tocontend with our most capable, potential adversaries and fulfill the National Security Strategy
charter to preserve peace through strength.

MILITARY COMPENSATION
Comprising roughly one-third of the DoD budget, military pay and benefits, to include healthcare,housing, DoD schools, commissaries, and a myriad of military family support programs are, andwill likely continue to be, the single largest expense category for the Department. People are theDepartment’s most valuable asset, but DoD must continually balance these requirements withCHAPTER 2

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other investments that are critical to achieving the Department’s strategic goals. Providing arobust pay and benefits package is essential and must be sustained to ensure the best warfighters
are available to execute the Nation’s defense strategy.
In support of the Department’s effort to continue to build a bigger more lethal and ready force, theFY 2021 President’s Budget proposes a 3 percent increase in military basic pay. This builds onlast year’s 3.1 percent increase and is key to sustaining the force and building on our readinessgains.
In addition to the annual basic pay raise proposal, the FY 2021 budget requests funding for a fullrange of compensation programs, from monthly special and incentive pays to recently modernizedretirement benefits.

MILITARY HOUSING PRIVATIZATION INITIATIVEThe Department has an obligation to provide military families with safe and quality housing, andtakes this obligation seriously.
Under the Military Housing Privatization Initiative (MHPI) legislation enacted in 1996, theDepartment has made dramatic improvement to the quality of on-base housing, rapidly
addressing a $20 billion maintenance backlog and building and renovating $32 billion in housing
by leveraging just $4 billion in government funding. The Military Departments have privatized
99 percent (more than 200,000 units) of installation family housing in the U.S., with about
80 MHPI projects currently in place across approximately 150 installations.
Under the MHPI, the Military Departments conveyed their existing government housing units tocompetitively selected privatization entities (i.e., the MHPI projects). The MHPI projects operate
under long-term (typically 50-year) ground leases and associated legal agreements with a Military
Department, with a 25-year option period. In return, the MHPI projects assumed responsibility for
operation, maintenance, construction, renovation and replacement of the housing during the leaseterm, in accordance with the MHPI authorities as defined in law.
At present, 99 percent of the construction and renovation planned for the initial development
phase of the MHPI projects has been completed, to include construction of nearly 80,000 new
family housing units, major renovations of more than 50,000 units, and repairs and cosmetic
improvements to the remainder.
Despite these improvements, we recognize the Department has had a lapse in oversight, giving
rise to concerns about the health, safety, and welfare of residents living in privatized housing.
These concerns deserve immediate action to ensure our Service members and their families
receive quality housing, fair treatment, and greater accountability from both the Department andour housing privatization partners.

The Department has recommitted to our oversight role to ensure our privatized
housing projects provide safe, quality, well-maintained housing, and to address
resident concerns in a timely, transparent, and accountable manner.
The National Defense Authorization Act for FY 2020 (FY 2020 NDAA, Public Law 116-92)
includes extensive direction for the Military Housing Privatization Initiative (MHPI), to include
requirements for a Tenant Bill of Rights, a universal lease, a dispute resolution process, and otherelements - all impacting DoD’s oversight of the MHPI program and projects.
Prior to release of the FY 2020 NDAA, the Department was already working on a number ofactions to correct MHPI housing and program deficiencies while addressing resident concerns.
In addition, Senior Leaders in the Office of the Secretary of Defense and Military Departments
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now meet regularly with key executives from each of the MHPI partners to ensure our initiatives
continue to progress. The Department will release a Tenant Bill of Rights in early 2020 to meetthe requirements of the FY 2020 NDAA. Other key actions to date include the development of auniversal lease framework, a dispute adjudication process, increased training for installationcommanders and housing personnel, and the hiring of additional housing staff across the Military
Departments, to include resident advocates.
The FY 2021 budget request includes a $54.6 million (82 percent) increase for Military Housing
Privatization Support compared to the President’s FY 2020 budget request. This funding increase
enables the Department’s enhanced oversight of MHPI housing consistent with the FY 2020
NDAA requirements, to include staff augmentation, improved quality control measures, databasedevelopment and management, and additional training and contract costs.
The Department honors the sacrifice our Service members and their families make to serve ournation. We recognize the environment where Service members (and their families) live impacts
their quality of life, their ability to do their jobs, and the Department's ability to recruit and retain
the force. The Department recommits to our oversight role to ensure the long-term success of
the MHPI Program, to include ensuring privatized housing projects and partners provide safe,
quality, well-maintained housing and address resident concerns in a timely, transparent, andaccountable manner.

MANAGING THE MILITARY HEALTH SYSTEM“Our medical reform efforts must ensure the continued readiness of the force,and quality health care for our Service Members and their families.”- Secretary of Defense Mark T. Esper

The Military Health System (MHS) provides the DoD with a clinically ready medical force that isable to deliver medical capabilities in support of the National Security Strategy and the defenseof our nation. The Army, Navy, and Air Force medical professionals help ensure those in uniform
are medically ready to deploy anywhere around the globe on a moment's notice. Complementing
the MHS’s operational role is the organization’s global benefit mission that improves the health of
all those entrusted to our care.

The MHS is one of America’s largest and most complex health careinstitutions, and the world’s preeminent military health care delivery operation.
With a $50.8 billion budget, the MHS saves lives on the battlefield, combats
infectious disease around the world, and cares for 9.6 million beneficiaries in
one of the nation’s largest health benefit plans.
The MHS supports the Secretary’s three goals by increasing the operational readiness of the Joint
Force by ensuring they are medically deployable; strengthening partnerships with industry, allies,
and interagency partners to provide opportunities for medical professionals to improve theirreadiness skills; and reforming business processes to streamline management of enterprise-wide
health activities, to include the administration of Military Medical Treatment Facilities (MTFs) –with the goal of providing Great Outcomes, a Ready Medical Force, and Satisfied Patientsin an integrated and affordable health care system.
This complex operation integrates health care delivery, public health and medical education,
private sector partnerships along with cutting edge medical research and development. Its
readiness mission spans a broad portfolio of operational requirements, such as combat casualty
care, disaster relief, global health engagement, and humanitarian assistance. Key enablers of
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The Department’s internal efficiencies are a direct result of comprehensive
assessments and expansive reviews of all facets of the MHS health care model-- emphasizing the need to balance the missions of ensuring a ready medical
force and a medically ready force while providing the highest quality care to all
eligible beneficiaries.
the system include the DoD medical school, the Figure 2.1. Military Health Care Funding
Uniformed Services University of the Health ($ in billions, Base and OCO)
Sciences (USUHS), plus a full spectrum of
FY 2020 FY 2021
graduate medical education programs, training Program
Enacted Request
platforms for all members of the health care team,and robust research capabilities.
Defense Health (DHP)
34.4
33.1
The Cost of Military Health Care
The MHS delivers a comprehensive health care
entitlement to a 9.6 million eligible beneficiary
population comprised of active military members
and their families, military retirees and theirfamilies, dependent survivors, and certain eligible
Reserve Component members and their families.
The funding and personnel to support the Military
Health System’s mission is referred to as theUnified Medical Budget (UMB) and represents agenerous portion of the Department’s top-line
budget authority. This investment reflects the
Department’s commitment to ensure the deliveryof timely, safe and effective medical care to ourbeneficiaries.
FY 2021 Budget Request

Military Personnel /1

8.9

8.9

Military Construction /1

0.3

0.5

Health Care Accrual /2

7.8

8.4

Unified Medical
Budget51.4

50.8

Treasury Receipts for
Current
Medicare-Eligible
Retirees /3

11.2

11.8

Numbers may not add due to rounding
1/
Funded in Military Personnel & Construction accounts.
2/

Includes health care accrual contributions into the MedicareEligible Retiree Health Care Fund to provide for the future
health care costs of personnel currently serving on active duty
– and their family members – when they retire.
3/

Transfer receipts in the year of execution to support
The FY 2021 UMB request is $50.8 billion, down
2.5 million Medicare-eligible retirees and family members.
1.2 percent from the enacted FY 2020 level. The
difference between FY 2020 and FY 2021 is driven predominantly by the $1.6 billion in
unrequested congressionally directed additions for research and development in FY 2020, andthe transfer of medical readiness activities and functions that did not properly belong in
Defense-Wide and could be transferred more appropriately to the Military Departments.

The Department will continue to pursue efforts focused on internal business process
improvements and structural changes to find greater efficiencies, such as further integrating themilitary health system; continuing the deployment of MHS GENESIS – DoD’s electronic healthrecord; implementing the health benefit reforms authorized by Congress; modernizing clinical andbusiness processes; and, streamlining internal operations. As a continuation of these efforts, theDepartment is realigning $1.9 billion from the Defense Health Program appropriation to the
Military Departments (MilDeps) in FY 2021 to support medical readiness activities outside of the
MTFs.
The Department’s efforts to develop and employ cost containment strategies are ongoing. For
FY 2021, our efforts will focus on additional business reforms, process re-engineering andrestricting of infrastructure as we continue to examine the impacts of recently implemented
reforms. Over the past several years, program efficiencies have been extremely successful in
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constraining health care costs. Initiatives have included the implementation of the Outpatient
Prospective Payment System (a transition to more favorable Medicare rates for private hospitals),Patient-Centered Medical Homes, Modifications to Long-term Care Reimbursements, Managed
Care Support Contract Administrative Fee reductions and the Defense Health Agency’s Shared
Services (reducing redundancy and improving coordination among the Services).
Continued Transformation of the MHS
The NDAA for FY 2017, FY 2019 and FY 2020 contained language to drive a wide range ofstructural and management reforms within the MHS. These adjustments act as a catalyst for
MHS transformation into a more integrated system of readiness and health.
In early 2017, the Defense Health Agency (DHA) began preparing to assume responsibility forthe administration and management of MTFs and Dental Treatment Facilities (DTFs) worldwide.
The assumption of these responsibilities commenced on October 1, 2018, with the transition of
31 facilities scattered throughout the south eastern portion of the United States. All other
MTFs/DTFs in the United States transitioned in October 2019, to DHA oversight and managementwith support from the Military Departments as the DHA continues to build its management
system’s capacity. The Military Department support is scheduled to end in October 2020 and willbe transitioned on a conditions-based approach to ensure that healthcare delivery and readinessis not impacted. The second phase, executing in FY 2021, will transition additional MTFs locatedoverseas to the management control of the DHA with a target of DHA having full control of all
MTFs and Dental treatment facilities by October 2022.

The centralized administration of the Military Treatment Facilities (MTFs) under
the authority of the Defense Health Agency (DHA) provides a unique
opportunity to more closely integrate the Department’s focus on Readinessand elimination of redundancies while creating a common high-quality
experience for patients.
The FY 2021 President’s Budget reflects the Department’s continued efforts to re-scope themilitary medical end strength portfolio. The manner in which we ensure both a medically readyforce and a ready medical force has evolved significantly over the past decade. As such, theDepartment is driving a corresponding reform effort to evolve its approach to how it allocates andclinically diversifies the medical military end strength. In 2018, the Military Departments, the Joint
Staff, and the Office of the Secretary of Defense (OSD) started to develop methodologies to more
adequately determine the wartime requirements for the medical force. The resulting adjustmentsin active duty military medical providers will ultimately provide a medical force appropriately sized
and scoped to meet NDS requirements as well as allow the MHS to optimize operational training
and beneficiary care delivery.
The FY 2020 Budget presented the Department’s estimate of the military medical manpower
required for the NDS and the FY 2021 President’s Budget request incorporates a phased
conversion of military end strength based on mitigation strategies and market analysis. In somecases, the care will remain in the MTFs and be provided by civilian or contract staff, and where
feasible, some care will be transitioned to a local network provider. As efforts are ongoing, theDepartment will continue to evaluate the impacts of the force structure changes and adjust its
plans accordingly though out the transition period. This agile and phased approach helps the
Department to ensure all beneficiaries continue to receive safe, high quality care.
The FY 2021 budget continues the deployment of MHS GENESIS, the Department’s Electronic
Health Record. The FY 2021 expansion to Naval Hospital Camp Pendleton, Elmendorf Air Force
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Base, Fort Wainwright, Naval Medical Center San Diego, Fort Bliss, Fort Carson, Fort
Leavenworth, Fort Leonard Wood, and Fort Riley Hospitals is based on the DoD Healthcare
Management System Modernization Program (DHMSM) Program Executive Office's (PEO)
updated deployment schedule and incorporates lessons learned from initial deployments in the
Pacific Northwest and Wave TRAVIS. In addition, the following waves will begin pre-deployment
activities in FY 2021, Wave SAAMC (San Antonio), Wave LACKLAND, Wave WRIGHTPATTERSON, and Wave DRUM. Additional enhancements to MHS GENESIS will provide
expanded analytics and data modeling; decision-support, integrated patient level accounting andbilling functionality, and advanced prognostic competencies.
As directed by Congress, DoD and the Department of Veterans Affairs continue to progress inthe establishment of the unified Electronic Health Record. In FY 2021, DoD continues funding
the clinical application, HealtheIntent, which provides a platform for population health and analytic
tools, and offers a seamless longitudinal record between the DoD and VA that will grant providers
and beneficiaries’ access to the detailed medical history.

STRENGTHENING MILITARY FAMILIESThe Department will keep faith with military members and their families by continuing to provide
military family assistance through programs that include child care, youth development, support
for family members with special needs, relocation assistance, non-medical counseling, Morale,
Welfare, and Recreation (MWR), and other military family support programs.
The major initiatives to improve the quality-of-life of military members and their families aredesigned to mitigate the demands of military life — especially the challenges of deployments andfrequent relocations. The Spouse Education and Career Opportunities program supports spouseeducational and career development, recognizing that spouses’ lives are disrupted when they
relocate every few years with their service member. Military OneSource, a 24/7 information andassistance service, links military members and their families to resources and support, andprovides non-medical counseling to preemptively address stressful situations. The MWR programprovides much needed recreational and fitness resources for all members of the family to promoteoverall well-being. These are just a few examples of the network of support designed to ensurethat military members can confidently attend to the larger Defense mission, as the Department
recognizes that family readiness is a key enabler to mission readiness.

The Military Departments plan to continue vital assistance to military members
and their families on more than 300 installations worldwide.
The FY 2021 budget request includes nearly $8.2 billion (Figure 2.2) for military family support
programs. The $0.2 billion net increase from the FY 2020 enacted funding level for military family
support programs is primarily driven by the Commissary’s use of prior-year unobligated funds in
FY 2020 resulting in a reduction to their appropriated funding.
Figure 2.2 displays a summary of the Department’s FY 2019 — FY 2021 budget request for these
programs. Key programs are:•Child Care and Youth Programs: Includes funding for child development programs, which
serve over 160,000 children, and youth and teen programs, which serve over1 million children.

•

Morale, Welfare, and Recreation programs: Includes funding for mission--sustaining
programs such as fitness centers, libraries, and single service member programs;
voluntary education; and recreation programs such as outdoor recreation and auto skills
centers.

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Overview – FY 2021 Defense Budget•

Warfighter and Family Services: Includes funding for family support centers, andnon-medical counseling support services for Active Duty, National Guard, and Reserve
members and their families.

•

Commissary: Includes funding for the Defense Commissary Agency to operate
236 commissary stores on military installations worldwide, employing a workforce of over
12,000 civilian full-time equivalents.

•

Department of Defense Education Activity (DoDEA) Schools: Includes funding to support
the education of students.

Figure 2.2. Military Family Support Programs($ in billions, Base and OCO)

FY 2019 Actual

FY 2020 Enacted

FY 2021 PB
RequestChild Care and Youth Programs

$1.4

$1.7

$1.7

Morale, Welfare and Recreation

$1.6

$1.5

$1.5

Warfighter and Family Services

$1.6

$1.7

$1.7

Commissary

$1.3

$1.0

$1.1

DoDEA Schools

$2.2

$2.1

$2.1

Total

$8.0

$8.0

$8.2

ProgramNumbers may not add due to rounding

As the Department continues to reshape its forces for current and future missions, it is committed
to sustaining a balanced portfolio of family assistance programs that are fiscally sustainable andcontinue to promote service member and family readiness. The overall funding for family
assistance programs was determined strategically, based on the number of military members andfamilies served, but without degradation in the quality of the programs provided.

DOD CIVILIANS
The FY 2021 budget request supports a properly sized and highly capable civilian workforce thatis aligned to mission and workload, and is shaped to reflect changes commensurate with the
Department’s military force structure. As critical enablers of our warfighters, DoD civilians servein a wide variety of roles and areas around the country and the world. Civilians perform functionsin intelligence, equipment maintenance, medical care, family support, base operating services,and other activities that directly support the military forces and readiness. The DoD civilian
workforce possesses capabilities, expertise, and skills that directly impact DoD’s operational
warfighting capabilities, and employs those skills at depots and shipyards; child care centers andschools; at airfields, ranges, and armories, and in theater in direct support of military operations.
The FY 2021 direct civilian pay and benefits budget increases by more than $3.1 billion over the
FY 2020 enacted level. This increase is driven by a FY 2021 1 percent pay raise request that
responsibly builds on the FY 2020 3.1 percent pay raise. FY 2021 growth is also driven by a
1.3 percent additional agency contribution to the Federal Employees Retirement System (FERS)
for regular employees, and a 1 percent increase in civilian performance awards spending,excluding Senior Executive Service, Senior Level, and Scientific or Professional positions. Thesebenefits allow the Department to remain competitive with private industry in sustaining the talent
workforce and rewarding top performing personnel.
Every element of the Total Force brings unique strengths to the Department as a whole. Amongother things, civilian personnel provide organic skills and expertise, as well as institutional
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continuity. Effective and appropriate use of civilians allows the Department to focus its Soldiers,
Sailors, Airmen, and Marines on the tasks and functions that are truly military essential—thereby
enhancing the readiness and lethality of our warfighters. However, there is no “one-size-fits-all”
solution to the Total Force. Right-sizing the Department’s Total Force—and its civilian
workforce—sometimes means targeted growth in critical support areas, especially as military end
strength grows. Successfully executing the Department’s mission means having the right people
in the right place at the right time, and the answers to those questions may be different for each
Defense Component.
The size and composition of the civilian workforce in the FY 2021 budget reflects evolving criticaldemand areas which require the Department to manage its civilian workforce on the basis of
workload and available funds, and without constraint on end strength while at the same time
striving to meet statutory guidelines. By implementing Total Force policies to achieve “the mostappropriate and cost efficient mix of military, civilian, and contractor personnel,” the Department
is able to focus its uniformed manpower on operational demands, while simultaneously resourcing
the functions provided by civilians that enable and enhance the readiness and lethality of theforce.
The Department estimates the number of civilian Full-Time Equivalents (FTEs) (excluding
Cemeteries and Foreign National Indirect Hire) will decrease 0.2 percent, from 774,943 in
FY 2020 to 773,593 in FY 2021. The Department continues to improve business practices by
eliminating unintended redundancies within the workforce and by consolidating and improving our
Human Resources Information Technology (IT) systems. Overall, the number of Department
civilians is decreasing; however, there are projected increases tied to skillsets directly related tothe operational requirements, such as depot maintenance supporting shipyards and logistics
depots, operational requirements in the cyberspace and intelligence domains, science,technology, engineering, and mathematics (STEM) occupations that support lethality, readiness
regeneration and force structure sustainment functions, and ensuring that our military members
and their families receive unparalleled support.
Figure 2.3. Civilian FTEs (Base and OCO)1/FY 2020 2/ Enacted

FY 2021 2/ Request

Percent Change

Army

180.8

186.1

2.9%

Navy

207.0

209

1.0%

Air Force

169.8

168.1

-1.0%

Defense Wide

217.3

210.4

-3.2%

Total DoD

774.9

773.6

-0.2%

U.S. Direct Hires

760.3

759.2

-0.1%

Foreign Direct Hires

14.6

14.4

-1.3%

ProgramNumbers may not add due to rounding
1/
2/

Excludes Cemetery Expense and Foreign National Indirect Hire (FNIH) FTEs
Excludes,32,093 of Foreign National Indirect Hire (FNIH) FTEs in FY 2020 and 32,079 in FY 2021

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3. ACHIEVING A SUSTAINABLE LEVEL OF READINESS
Readiness is the measure of the ability of the
Major Themes
U.S. military forces to fight and meet thedemands of the National Defense Strategy. • Aligning FY 2021 Military readiness to
The FY 2021 budget continues to build military
the National Defense Strategy
readiness to address the threats defined in the
National Defense Strategy (NDS). To guide • Continuing to utilize metrics to target
readiness investments
and inform readiness investments, theDepartment continues to utilize the Readiness • Sustaining readiness gains since
Recovery Framework (R2F), a transparent,
FY 2017
measurable, and repeatable process that
identifies readiness shortfalls, establishes milestones, and measures incremental progress. The
R2F also includes projected timelines for readiness recovery and identifies specific actions andrelevant metrics to achieve recovery goals.
Using the analytical methodology defined in the R2F, the Department is able to provide aquantitative assessment of the readiness of the Military Services and U.S. Special Operations
Command to address the threats in the NDS. The Department uses R2F methodology to assesschanges in readiness for major force elements and communicates these changes to Department
leadership to inform resourcing decisions and updates are included in the Quarterly Readiness
Review to Congress. The R2F was update in Q1 FY2020 and continues to improve in both quality
and quantity. Since inception, the Department has expanded the list of Force Elements analyzed
through this methodology, as well as improved the fidelity of the underlying metrics that areassociated with readiness generation. From FY 2018 to FY 2019, the Services have all seen
improvement or sustained levels in some of the underlying R2F metrics for the major force
elements tracked. Specifically, the Army has seen improvement in 8 of 10 force elements, theNavy has seen improvement in all 6, the Marine Corps has improved in 6 of 7 force elements,
and the Air Force has improved in all 17 force elements. Further, the R2F improves the
Department’s ability to link resources to readiness outcomes by ensuring those items tracked andidentified as critical to readiness generation receive the necessary resourcing to achieve thenecessary readiness levels to support NDS priorities. For example, since FY 2017, theDepartment has received additional funds that have contributed to an increase in the number ofready ships, aircraft, and ground equipment; the details of which are described in the following
service sections.
The deployment of military units around the globe is both a readiness generator and consumer.
One of the key changes to Service readiness is the concept of dynamic force employment (DFE)as outlined in the NDS. The DFE is designed to prioritize maintaining capacity and capabilities
for combat operations. Scalable in nature, DFE allows the Military Departments the ability toprovide proportionate response to emerging global challenges, while preserving force readinessfor future peer/near-peer competition. Military actions taken with the DFE construct may be
unpredictable in nature, as demonstrated by the January 2020 deployment of the 1st Brigade
Combat Team of the 82nd Airborne Division to Kuwait, and they are useful in proactively shaping
the strategic environment while maintaining readiness for contingency response. By contrast, thedeployment of forces to meet Combatant Command requests above planned force allocations
removes units from home station training activities that are generating readiness for great powercompetition in order to respond to global contingencies that may be lower NDS priorities.
Another critical contributing factor for sustaining readiness is reliable, predictable, and on-timefunding. FY 2019 was the first time in over a decade that the Department began the fiscal yearwith a full-year appropriations bill, and this funding allowed the Military Services to properly plan
training events and exercises, order long lead depot supplies and parts, and make other key
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readiness investments without worrying about a continuing resolution or the threat of agovernment shutdown. Predictable, on-time, and full funding of readiness activities sets theconditions needed for the military departments to achieve their readiness goals.
The Department is prepared to fight today if called upon; however, more work needs to be done
to enhance readiness and set the conditions to recover core competencies within ground, ship,
and aviation forces.
Specifically, the FY 2021 budget request funds improvements in the following areas:•

Army is investing $30.9 billion in all readiness accounts, which is an increase of $4.8 billion
from FY 2020 enacted levels. This includes $13.0 billion for home station training for groundmaneuver forces and $2.8 billion for aviation readiness. $4.3 billion of this growth is related
to transfers to readiness activities for OCO operations. Base readiness growth is $3.4 billion
above FY 2020 enacted levels.

•

The Navy is investing $37.7 billion, an increase of $1.9 billion above FY 2020 enacted levels,in aviation, ship, and combat support readiness activities. The Navy continues to implement
the Optimized Fleet Response Plan and reduce its long term maintenance backlog byinvesting $9.9 billion in ship depot maintenance and an additional $1.3 billion in procurement
appropriations to continue the Pacific fleet maintenance pilot program. Further, Navy isinvesting $7.8 billion, an increase of $0.4 billion above FY 2020 enacted levels, in aviation
readiness to sustain proficiencies, with the goal of improving mission capable rates across the
fleet.

•The Marine Corps is investing $3.9 billion in ground combat readiness, the same as FY 2020
enacted levels, and $4.2 billion in aviation readiness accounts, an increase of $0.4 billion
above FY 2020 enacted levels, to sustain critical maintenance and training programs.

•

The Air Force and Space Force are investing $37.1 billion in core readiness and readinessenabler activities, of which $2.3 billion is for Space Force operations and space system
sustainment. $10.7 billion, an increase of $0.7 billion above FY 2020 enacted levels, is being
invested in flying hours and operations to sustain combat readiness. For weapon system
sustainment, $16.7 billion, an increase of $0.8 billion above FY 2020 enacted levels, is being
invested to maintain the inventory of aircraft, space systems, and other weapon systems.

The following provides a more detailed breakdown of FY 2021 readiness investments, by Service.

ARMY READINESSThe Army remains on track to achieve its readiness goal in FY 2022 ensuring its blunt and surge
forces are ready. While the Army continues to modernize in order to outpace near-peer
adversaries, it continues a holistic approach to readiness by balancing investments in training,equipping, and installations. The Army is advancing NDS lines of efforts with new initiatives tosupport U.S. Indo-Pacific Command as well as U.S. European Command. For example, the Armyis operationalizing Multi-Domain Operations by expanding annual division-level exercises in
Europe and the Pacific; each theater will host smaller or larger versions of Defender in alternate
years.
The Army’s collective and individual training readiness programs are comprised of operational
training to provide units with decisive action capability, Training Support Systems (TSS) thatenable training, institutional training for Soldier skills and leader development, and mission and

FY 2021 budget builds on readiness gains to prepare for future threats.

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other support to Combatant Commanders (CCDRs). To support collective and individual training,
the Army fully resourced active Army Brigade Combat Teams (BCTs) and Combat Aviation
Brigades (CABs). Army Reserve and Army National Guard BCTs and CABs are resourced atincreased levels as well, with forces remaining available to meet all operational requirements.
As shown in Figure 3-1, the Army invested additional funding over the past 3 years to improveground and air readiness.
Figure 3-1. FY 2021 Key Army Readiness Investments
ARMY

FY19

FY20

FY21

1,010,633

1,010,500

1,012,200

Ground Readiness2$11.4B$11.5B$13.0B

3

$2.5B

$2.6B

$2.8B

4

Depot Maintenance

$1.9B

$2.0B

$1.8B

Infrastructure5

$6.4B

$7.6B

$6.2B

End Strength1

Aviation Readiness1

Total Active, Reserve, and National Guard end strength; FY 2020 currently projected end strength2
Ground Readiness Sub Activity Groups (SAGs) 111, 112, 113, 114, 115
3
Aviation Readiness SAGs: 116
4
Depot Maintenance SAGs: 123
5
Infrastructure SAGs: 132, Military Construction (MILCON) appropriations (includes disaster relief funding)Regular Army’s end strength ramp for FY 2021 is slightly higher than previous requests withmodest growth across the National Guard and Reserve components. Army set a goal to increase
overall end strength by 1,700 from FY 2020 to FY 2021 to generate the following force structure:
485,900 active component (AC); 336,500 Army National Guard (ARNG); and 189,800 Army
Reserve component (RC). FY 2021 end strength growth targets Cyber Operations and Electronic
Warfare (EW) capabilities in FY 2021. Beyond FY 2021, the Army plans to increase structure for
critical capabilities which include: Corps HQs, Chinook Companies, SHORAD Battalions, Multiple
Launch Rocket System Battalions and Bridge Companies.
Ground readiness continues to improve through a holistic approach to readiness across training,
Soldier availability, and equipment readiness. The Army has fully resourced their ground training
strategy, with increased resources for unit-level maintenance to enhance readiness. The FY 2021
budget aligns additional resources to support Dynamic Force Employment, Emergency
Deployment Readiness Exercises (EDRE) and increased decisive action Combat Training Center(CTC) rotations plus Security Force Assistance Brigade (SFAB) rotations. It resources the Army’s
ground and aviation training strategies at 100 percent for the Active and 80 percent for theReserve Components, with increased resources for unit-level maintenance. The FY 2021 budget
also increases support for flight school in order to meet the Army’s pilot requirements. Armyaviation is resourced to achieve its readiness outcomes, in part by increasing flight crew member
readiness.
The Army’s installation readiness program consists of essential services, base support, family
programs, and facility sustainment and maintenance. FY 2021 addresses resources for
Restoration and Modernization to restore barracks, power projection infrastructure, and criticalfacilities. Additionally, Facilities Sustainment is funded at 81 percent of the Department of
Defense Facilities Sustainment Model requirement. Additionally, to ensure safe and quality
housing to Soldiers and families on Army installations, the Army increased the number of
personnel supporting the privatized housing inspections by 144, funds additional payments tolessors responsible for underfunded projects, and other initiatives.
Figure 3-2 shows planned rotations for the critical joint training exercises funded in the FY 2021
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Overview – FY 2021 Defense Budget
budget. The Army resourced 19 decisive action CTC rotations to assess Brigade-level readinessas well as two Culminating Training Exercises for SFAB rotations. While the Army has madesignificant progress recovering core mission readiness, global operational demands challenge
their ability to sustain gains and achieve readiness levels needed to meet contingency planningrequirements.
Figure 3-2. Required, Planned, and Executed Army (Regular, Reserve, Guard) rotations
through Maneuver CTCs DA/ULO, and Warfighter Exercises (WFX)
CTC Training

FY 2019
Actual

FY 2020
PlannedFY 2021
PlannedFY 2021-2025
PlannedCombat Training Center (CTC)
Capacity – Brigade Combat
Teams (BCTs)

20

20

19

19

2

2

2

2

Warfighter Exercises (WFX)*

15

16

15

16

Emergency Deployment
Readiness (EDRE) (CONUS)

4

4

4

4

Culminating Training Exercise(CTE) – Security Force
Assistance Brigade (SFAB)*Note: Warfighter exercises alternate between 15 and 16 annually, odd and even numbered years respectively

NAVY READINESSThe Navy is continuing to sustain readiness gains after several years of increased funding. In the
FY 2021 budget, core readiness accounts grow by 3.1 percent from the FY 2020 enacted budget
to FY 2021.
Ship Depot Maintenance increases by $0.2 billion from FY 2020 to FY 2021, a 1.8 percent
increase, and funds 98 percent of the requirement. The program includes an executable
maintenance schedule at validated shipyard capacity. Increased investments have resulted in
improved shipyard performance trends, such as reductions in days of maintenance delays in the
public naval shipyards and improved on-time deliveries. The Navy is continuing its pilot program
to fund Pacific Fleet private sector ship maintenance availabilities in the Other Procurement, Navy
(OPN) appropriation, requesting $1.3 billion, an increase of $0.3 billion above the FY 2020
enacted OPN amount.
Ship Operations increases by $0.4 billion, a 6.5 percent growth from FY 2020 enacted funding.
This is a program modeled on force structure and Global Force Management Allocation Plan
(GFMAP) steaming requirements, and increases the ship count to 306 ships in FY 2021. This
also includes the Navy’s Military Sealift Command Ship Support.
Aircraft Operations increase by $0.2 billion from FY 2020 to FY 2021, a 4.4 percent increase fromFY 2020 enacted levels. This funds 94 percent of the requirement and reflects what is executable
for FY 2021 based on current aircraft availability and manning. The FY 2021 budget focuses onsustaining tactical aviation recovery, increased aviation cost-per-hour, and increased contract
maintenance for training aircraft. Naval aviation needs sustained funding levels to continue tobuild on previous readiness recovery efforts such as:•

The Navy achieved 80 percent mission capable rates for F/A-18 E/F and EA-18G Navy
aircraft on October 1, 2019. Navy leveraged readiness investments in FY 2017 - FY 2019,
particularly in spares. Navy also improved accountability and implemented processchanges to enhance organic, intermediate, and depot aviation maintenance capacity and

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Overview – FY 2021 Defense Budget
performance to achieve the 80 percent goal. The improved processes are being applied
across Naval Aviation to increase and sustain readiness across all Type/Model/Series
aircraft.
•

An expanded inventory of operable aircraft will enable pilots to execute a larger portion of
their training matrix by completing more “sets and reps,” improving pilot proficiency for thefight. The long-term health and viability of the force will improve by spreading flight hours
over more aircraft, and improving inventory management as aircraft age.

Aircraft depot maintenance and logistics increases by $0.3 billion from FY 2020 to FY 2021 tofund 93 percent of the depot requirement. This funds aircraft depot maintenance to executablecapacity with growth attributed to revised workload standards incorporating process
improvements, the Fleet Readiness Center infrastructure optimization plan, and pricing changes.
Aviation logistics increases to support additional F-35, KC-130J, and C/MV-22 aircraft as they join
the fleet inventory.
The Navy continues data driven process improvement efforts to ensure the highest return on
investment for scarce readiness resources. Performance to Plan (P2P) senior leader forums
focus on output metrics to drive improved readiness performance. The P2P approach includes
clearly accountable supported commanders; a leading measures performance framework using
data and analytics to characterize performance gaps/high leverage performance drivers; and acadence of accountability provided by a barrier removal forum co-chaired by the Vice Chief ofNaval Operations and Assistant Secretary of the Navy for Research, Development andAcquisition (RDA). Current P2P efforts include F/A-18E/F readiness, DDG-51 maintenance, SSN
availability, and Naval Shipyard performance.
To this end, the Navy is increasing public shipyard capacity and more effectively balancing theworkload between the shipyards in line with the metrics established in the R2F and P2P. One
metric Navy is trying to improve upon that is tracked in the R2F is the number of days that shipyard
maintenance availabilities are exceeding the planned duration of that maintenance. Since FY
2018, days of maintenance delay in the public shipyards has decreased by over 50% from 1,734
in FY 2018 to 894 in FY 2019). Late maintenance availabilities in FY 2018 completed an averageof 124 days late, whereas late maintenance availabilities in FY 2019 completed an average of 69
days late.
Figure 3-3. FY 2021 Key Navy Readiness Investments
NAVY

FY19

FY20

FY21

End Strength1

396,643

402,630

406,600

Ship Readiness2$15.2B$16.5B$17.0B

Aviation Readiness3

$7.5B

$7.4B

$7.8B

$4.3B

$7.6B

$4.9B

4

Infrastructure

1. Total Active and Reserve end strength; FY 2020 currently projected end strength
2. Ship Readiness SAGs: 1B1B, 1B4B (FY 2020 and FY 2021 includes $1B+ ship depot maintenance transfer to OPN)
3. Aviation Readiness SAGs: 1A1A, 1A2A, 1A5A, 1A9A
4. Infrastructure SAGs: BSM1, BSMR, Military Construction (MILCON) appropriations (includes disaster relief funding)

By the end of FY 2021 the Navy will have grown military end strength by almost 10,000 personnel
since FY 2019. This growth will eliminate shortfalls in critical warfighting specialties, alignmanpower to force structure as the Navy grows the Fleet, and reduce manpower gaps at sea.
The Navy has developed an infrastructure investment plan to address substantial deficiencies inshipyard facilities. The Navy is taking important steps to fund and complete shipyard facilities
projects in accordance with the Navy Shipyard Infrastructure Optimization Plan, which was
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released in 2019. For example, the Navy requests $0.2 billion in FY 2021 for the Capital
Improvement Program, which procures modern repair equipment and tools for shipyards. Navy
also requests $0.2 billion in FY 2021 for Portsmouth Naval Shipyard in Maine that constructs a
multi-mission drydock.
As detailed in Figure 3-4, the FY 2021 budget includes 93 integrated training exercises for Carrier
Strike Groups (CSGs), Amphibious Readiness Groups (ARGs) and attack submarines. These
training exercises are critical to address 4th and 5th generation adversary threats and ensure the
Carrier Strike Groups operate seamlessly in a combat environment.
Figure 3-4. Programmed Navy Training Throughput
FY 2019 Executed

FY 2020 Planned

FY 2021 Planned

BASIC
4

INT*
3

BASIC
2

INT*
3

BASIC
6

INT*
4

Carrier Air Wings

4

3

5

3

4

4

CG/DDG/LCS

37

21

43

21

53

37

LHA/LHD/LPD/LSD

15

9

17

10

17

15

Attack Submarines

15

34

9

33

15

33

Carriers*Integrated refers to aggregated training of all units in a CSG /ARG**The figures entered for FY21 represent a count of hulls expected to be in the given phase at some point during the year.

MARINE CORPS READINESSAs an inherently naval force, the FY 2021 budget enhances the Marine Corps’
warfighting capability through naval integration and prioritizing investmentsthat continue to evolve the Marine Corps toward a Force that has
revolutionizing capability for new warfighting concepts.
The Marine Corps has entered a period of transformation to build a Force that is organized,
trained, equipped, and postured to meet the demands of the rapidly evolving future operating
environment. The Commandant of the Marine Corps’ intent is to effect the significant change
required to ensure the Marine Corps is aligned with the (NDS), National Military Strategy, andprepared to meet the demands of the Naval Fleet in executing current and emerging operational
naval concepts as part of the Integrated American Naval Power. As an inherently naval force,
the FY 2021 budget enhances the Marine Corps’ warfighting capability through naval integrationand prioritizing investments that continue to evolve the Marine Corps toward a Force that has
revolutionizing capability for new warfighting concepts, such as Littoral Operations in a Contested
Environment (LOCE), Expeditionary Advanced Base Operations (EABO), and Distributed
Maritime Operations (DMO), while ensuring the proper balance of resources in modernization,
readiness, and manpower accounts.
The FY 2021 ground combat readiness budget of $3.6 billion enables the Marine Corps to meetthe readiness requirements for Depot Maintenance, Maritime Prepositioning, Field Logistics, andthe Fleet Marine Forces. The Marine Corps uses a Total Force (Active and Reserve Components)
approach for the planning and execution of ground equipment and readiness as it continues tomake strategic choices in the divestiture of known legacy and low demand programs that do notmeet future operating requirements and to reinvest these funds in capabilities that enable naval
expeditionary force-in-readiness to operate inside actively contested maritime spaces and
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facilitate sea control in support of fleet operations.
For aviation readiness, the Marine Corps requests $4.2 billion for Mission and Other Flight
Operations, Fleet Air Training, Aircraft Depot Maintenance, and Aviation Logistics. Marine
Aviation continues to lean forward and advance through its ongoing, comprehensive readinessrecovery effort, designed to increase the number and quality of mission capable aircraft alongwith highly trained and combat ready aircrew. Initiatives include: increase supply materielreadiness; decrease the time that aircraft are down awaiting supply; improve training quality andproficiency, while completing in-stride modernization of legacy aircraft and transitions for newer
aircraft across all platforms; and fund contractor support for legacy aircraft at the Fleet
Replacement Squadrons, which will further enable active duty Marines to fulfill their duties in
deployable units. In addition, a large investment has been made in support of the Flying Hour
Program to facilitate aircrew training requirements and projected flight hours required to meettraining goals as established by the Fleet Marine Forces.
The Marine Corps proposes $1.9 billion in support of Infrastructure funding, which includes over
$830 million in FY 2021 Military Construction (MILCON) for operational facilities, Guamrelocation, training facilities, barracks and Design and Unspecified Minor Construction for urgent
projects. Additionally, nearly $1 billion is requested for Facilities Sustainment, Restoration, andModernization (FSRM), which funds 81 percent of the Department’s sustainment requirement, tosupport the maintenance, demolition, restoration, and modernization of installation infrastructure
to support warfighting, life/health/safety, training, and quality of life. This includes $0.8 billion forsustainment, $0.1 billion for restoration and modernization, and $0.1 billion for the demolition of
2.1 million square feet of unneeded or underutilized infrastructure.
The Marine Corps recognizes the importance of facilities programs to support warfighting
capability. The Marine Corps' Infrastructure Reset Strategy ensures every dollar is targeted andspent on the highest priorities at the lowest total lifecycle cost, instituting best practices, optimizing
investment over the long-term to support Marine Corps’ mission requirements and aligninginvestment with strategic priorities. The Marine Corps continues to focus on a robust demolition
program to eliminate facilities no longer required thereby reducing total cost of ownership. While
the NDS does not create new requirements for infrastructure investment accounts, it does require
the Marine Corps to review its priorities to ensure compliance with guidance. The Marine Corps
will continue to focus limited funding on critical projects that support installation resiliency,
relocation and consolidation of forces, operational and training needs, modernizing inadequate
and obsolete facilities, and life, health, and safety improvements.
Figure 3-5. FY 2021 Key Marine Corps Readiness Investments
Marine Corps

FY19

FY20

FY21

1

End Strength

224,398

223,147

222,600

Ground Readiness2

$3.5B

$3.7B

$3.6B

Aviation Readiness3

$3.3B

$3.8B

$4.2B

$3.0B

$4.3B

$1.8B

4

Infrastructure

1. Total Active and Reserve end strength; FY 2020 currently projected end strength
2. Ground Readiness SAGs - 1A1A, 1A2A, 1A3A, 1B1B
3. Aviation Readiness SAGs - 1A1A, 1A2A, 1A5A, 1A9A (Marine Corps portions of O&M, Navy appropriation)
4. Infrastructure SAGs – BSM1, BSMR, Military Construction (MILCON) appropriations (includes disaster relief funding)Annual training exercises provide critical opportunities to conduct missions in different
environments, simulating realistic combat situations. The Marine Corps invests $0.8 billion in
FY 2021 in support of its Service-Level Training Installations to ensure Marines are properly
trained to address all warfighting domains across the range of military operations. The two
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premier Service-Level Training Exercises are the Integrated Training Exercise (ITX) and Mountain
Exercise (MTX). ITX, conducted at the Marine Corps Air Ground Combat Center at Twentynine
Palms, California, prepares all elements of the Marine Corps Air Ground Task Force (MAGTF) for
combat, with particular emphasis on live fire and maneuver. MTX, conducted at the Marine Corps
Mountain Warfare Training Center in Bridgeport, California, prepares units for combat in highaltitude, cold weather, and/or mountainous operations.
Figure 3-6. FY 2021 Marine Corps Planned Large Training Exercises
FY19

FY20

FY21

ITX

MTX

ITX

MTX

ITX

MTX

MAGTF CE

4

0

4

0

4

0

Infantry Bn

8

4

8

4

8

6

Artillery Bn (-)

4

0

4

0

4

0

Logistics Bn

4

0

4

0

4

0

Squadrons

9+2 det9+2 det9+2 det9+2 det9+2 det9+2 detAIR FORCE READINESSThe FY 2021 budget request demonstrates the Air Force’s commitment to building and sustaining
readiness to meet the challenges described in the NDS. Specifically, the Air Force FY 2021
request makes necessary changes to force structure, focuses manpower and resources on“pacing units,” and invests in critical readiness initiatives, such as multi-domain command andcontrol (MDCS). Moreover, the FY 2021 request increases funding in core readiness accounts
and enabling activities that will allow the Service to preserve and build upon readiness gains madeover the last several years.
Changes to force structure are necessary to enable the Service to pivot away from outdated andunaffordable programs and begin investing in the systems and future capabilities that are required
to win the high-end fight outlined in the NDS. The FY 2021 request makes targeted reductions tolegacy programs, such as the B-1 and MQ-9, while also retiring certain aircraft inventories, suchas the F-15 C/D. Collectively, these actions will lower aircraft sustainment costs and enable the
Air Force to invest in advanced technology and modernization efforts that serve as the foundation
to combat future threats.
The Air Force is continually building towards a more lethal and ready force, prepared to defeat
our adversaries in high-end combat. The FY 2021 budget focuses manpower and resources on“pacing units,” which are squadrons critical to the early response for combat operations. Morethan 75 percent of the Service’s pacing squadrons are ready to “fight tonight” with their lead force
packages due to an exceptional aircraft mission capable rate of 80 percent. Further, funding forreadiness in FY 2017 – FY 2019 contributed to increasing readiness for various platforms. These
improvements are due to focused investments in pilot training and production, flying hours, depot
maintenance and aviation spare parts. The Air Force continues to leverage the R2F and its
internal readiness review team report, which generates a comprehensive list of readiness
improvements and goals, to build readiness across the service.
The Air Force is also making essential investments in programs that will prepare the Service toachieve victory on the future battlefield. One main priority is multi-domain command and control(MDC2). This is the communications backbone that will allow current and future platforms and
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sensors to instantly share important data with the user increasing effectiveness, survivability andlethality.
Figure 3-7. FY 2021 Key Air Force Readiness Investments
Air Force

FY19

FY20

FY21

508,687

511,622505,666$14.8B$15.9B$15.3B

Flying Hours & Operations$10.3B$10.0B$10.7B

4$7.5B$10.0B$4.9B

1

End Strength2

Maintenance3

Infrastructure

1. Total Active, Reserve, and National Guard end strength; FY 2020 currently projected end strength ( FY 2021 excludes Space
Force)
2. Maintenance SAGs: 011M, 011W, 011V (Funding for U.S. Space Force transferred in FY 2021 – see Figure 3-9)
3. Flying Hours & Operations SAGs: 011A, 011F, 011Y
4. Infrastructure SAGs: 011R, Military Construction (MILCON) appropriations (includes disaster relief funding)

As showing in Figure 3-7, total Air Force end strength declines in FY 2021, which is due to thetransfer of personnel to the Space Force. Beyond the transfer, remaining Air Force personnel are
funded to grow slightly in FY 2021 to meet global requirements. This increase will focus on
producing critical skills and generating personnel to fill shortages in key readiness areas, such as
aircraft maintenance, intelligence, surveillance, and reconnaissance (ISR), remotely piloted
aircraft, and cyber operations. In addition, the Air Force repurposes manpower from legacy
platform divestitures to mitigate critical shortfalls in fighter and tanker squadrons and to support
the beddown of new aircraft.

Stable and predictable funding has allowed the Service to preserve readinessgains, achieve predictable workloads, and execute life cycle sustainment
requirements.
The FY 2021 request increases funding, after accounting for the transfer of funding to U.S. Space
Force, in core readiness accounts, including maintenance, flying hours and operations, andinfrastructure. Maintenance readiness accounts (i.e., Weapon System Sustainment (WSS)) fundDepot Maintenance, Contract Logistics Support, Sustaining Engineering, and Technical Orders
to ensure Air Force weapon systems are safe, reliable, and mission ready to defend thehomeland, strategically deter, and generate combat air power to prosecute the NDS. Stable andpredictable funding has allowed the Service to preserve readiness gains, achieve predictableworkloads, and execute life cycle sustainment requirements. In FY 2021, the Air Force funded
87 percent of all WSS requirements with a strategic focus on pacing platforms' readiness, nuclear
deterrence operations, education and training in support aircrew taskforce objectives, spare parts
availability, and enterprise sustaining engineering efforts. Additionally, the Air Force continues toleverage data analytics (e.g., Condition Based Maintenance), innovation, industry best practices,and cutting edge technologies to reduce sustainment costs, increase efficiency, and improve
weapon system reliability.
The Air Force is also concentrating on sustaining gains in air mobility. Continued investments inflying hours and operations contributed to increased availability of KC-135 and the C-5 since
FY 2017. The Air Force is reducing training shortfalls by optimizing deployments for these criticalplatforms. Also, the Air Force and U.S. Transportation Command (USTRANSCOM) are focusedon increasing KC-135 unit training opportunities to improve aircrew quality of life and proficiency
to meet the challenges in the NDS. As a result of these and other investments in aviation
readiness, the availability of the KC-135 for combat operations doubled since FY 2017.

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The Service will address operational training infrastructure (OTI) shortfalls through targeted nearterm investment and a long-term funding strategy to upgrade both its live and synthetic training
infrastructure. The Air Force has developed a consolidated, long-term, OTI investment plan thatguides prioritized live and synthetic OTI investments.
In the FY 2021 budget, the Air Force will develop the infrastructure necessary to train for thechallenges of future combat operations. This funding will upgrade critical items to replicate
realistic threat environments and improve training integration of 4th and 5th generation aircraft.
The following are critical training exercises the Air Force hosts each year:•

RED FLAG – NELLIS is a sponsored exercise and is the Air Force’s premiere air-to-air
combat training exercise, and participants include both United States and allied nations’combat air forces. The exercise provides aircrews the experience of multiple, intensive
air combat sorties in the safety of a training environment.

•

RED FLAG – RESCUE is a sponsored, two week Combat Search and Rescue exercise.
Detachment One, 414th Combat Training Squadron hosts this Personnel Recovery (PR)exercise through the United States Air Force Warfare Center. The missions will be
conducted throughout Arizona and western New Mexico. The primary objective is toprovide participants the opportunity to plan and employ together, executing multiple PR
scenarios at the tactical level, with integration up to the operational level.

•

GREEN FLAG (GF) – is a 2 week exercise held in conjunction with all Brigade Combat
Team (BCT) rotations at the National Training Center and Joint Readiness Training Centerto train Aircrews, Battlefield Airmen, and BCTs in the planning, integration and executionof airpower Close Air Support in support of Decisive Action campaigns. GF exercises are
the only tactical exercises that jointly train Combat Air Force (CAF) units with brigadesized Army units in a realistic scenario for the detailed integration required to effectively
and safely conduct the joint counter-land and counter-sea missions.

Figure 3-8. Historical and Planned Full-Spectrum Air Force Training Exercises
Exercise

FY19 Executed

FY20 Planned

FY21 Planned

Red Flag Nellis

3

3

3

Red Flag Rescue

2

2

3

Green Flag West

10

9

9

Green Flag East

10

10

10

SPACE FORCE READINESS
Figure 3-9. FY 2021 Key Space Force Readiness Investments
Air Force
FY19
1
End Strength
Space Operations23Space System Sustainment
-

FY20
38
-

FY21
6,434
$0.9B
$1.4B

1. Total Active, Reserve, and National Guard end strength; (Allocation org = SF). FY 2020 included in Services end strength.
2. Space Operations SAGs: 012A, 013A, 013C
3. Space System Sustainment SAGs: 013M, 013W

With passage of the FY 2020 National Defense Authorization Act, the sixth branch of the military,
the United States Space Force (USSF), was created within the Department of the Air Force. The
Space Force will protect and defend our military capabilities and economic interests in the spacedomain as our near peer competitors continue to expand their presence in space. The FY 2021
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Overview – FY 2021 Defense Budget
budget supports the establishment of USSF, and the transition is expected to be complete in
FY 2024 as all space related elements are consolidated to the USSF. In FY 2021, USSF requests$2.3 billion for readiness related activities, which include space operations and space system
sustainment. As USSF stands up and its mission is further defined, it will develop space-related
metrics and objectives to measure the readiness of the Space Force and its major force elements.

UNITED STATES SPECIAL OPERATIONS COMMAND (USSOCOM) READINESSThe FY 2021 budget request invests in USSOCOM readiness and supports the NDS by ensuring
U.S. Special Operations Forces (SOF) are prepared to execute operations with the Joint Force,
conduct counterterrorism and counter-violent extremist organization operations, serve as the
Coordinating Authority for Countering Weapons of Mass Destruction (CWMD), compete withstrategic adversaries below the level of armed conflict, and conduct global crisis response
missions. Further, the FY 2021 budget request supports USSOCOM’s ability to meet Secretaryof Defense FY 2021 Directed Readiness Tables.
Overall, SOF remain at a high level of readiness with few readiness concerns. In the FY 2021
budget, the SOF Enterprise continues to focus on three core challenges: (1) balancing demands
on SOF readiness for day-to-day operations, major contingency operations, and crisis response
missions; (2) closing gaps and sustaining Service support to SOF; and (3) mitigating risks in nearand long-term readiness concerns. The FY 2021 budget request provides USSOCOM with
sufficient funding to address these challenges. However, USSOCOM relies heavily on theServices for materiel, logistics, and infrastructure support across the spectrum of operations.
Therefore, USSOCOM remains sensitive to budget fluctuations in the Services and will continue
to work with the Department and Congress to maintain a stable and sustainable long-term funding
stream.
The FY 2021 budget provides USSOCOM with the resources to pursue gains in areas withexisting or emerging readiness concerns. Specific investments include funding that continues theaccelerated SOF fixed-wing aircraft conversion to an entirely A/MC-130J fleet to improvereadiness and availability; closes manning gaps for combat service/combat service support(CS/CSS) personnel to alleviate operational tempo stress on certain enablers; modernizes SOF
training ranges and simulators; enables full-spectrum SOF-specific training events and exercises;
expands training integration with the conventional forces; sustains flying-hours for SOF fixed-wing
and rotary-wing aircraft; invests in artificial intelligence to increase the speed of processing
exploitation, and dissemination (PED) for Intelligence, Surveillance, and Reconnaissance (ISR);
begins pursuing the materiel solution for light attack; and increases support for the Preservationof the Force and Family (POTFF) program to maximize personnel readiness.
Figure 3-10. FY 2021 Key USSOCOM Readiness Investments1
USSOCOM

FY19

FY20

FY21

2

Personnel

69,486

73,20373,926Flying Hours$0.69B$0.74B$0.75B

Formal Training$0.33B$0.34B$0.39B

Exercises$0.06B$0.08B$0.07B

1. Funding reflects only a portion of what the Department considers core readiness spending in USSOCOM’s annual budget
2. Total Personnel includes Active, Reserve, and National Guard end strength and Civilian Full-Time Equivalents

The FY 2021 budget provides funding for SOF participation in support of CJCS-directed training
and priority exercises (including Ellipse exercises) within every Geographic CombatantCommander’s Area of Responsibility (AOR). These funds are also provided for the execution of
USSOCOM component exercises to provide training, validation, and certification of O-6 and
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Overview – FY 2021 Defense Budget
above joint SOF headquarters preparing to deploy for named operations. These exercises are
crucial to sustaining SOF readiness to meet NDS objectives and align with the strategic priorities
and directly supports the NDS Line of Effort to “rebuild military readiness as we build a more lethal
force”. The budget also continues to sustain the USSOCOM Joint Combined Exchange Training(JCET) program that is crucial to the mission essential task list (METL) training and continued
readiness of small SOF units to train in OCONUS environments with friendly foreign forces.
The FY 2021 budget continues to invest in recapitalization efforts crucial to rebuilding SOF
platform readiness and enhancing the capacity of certain low-density, high-demand (LD/HD)
forces to improve readiness. These relatively small but crucial capacity enhancements include
expanded CS/CSS capabilities to reduce stress on SOF enablers as well as support ISR, force
protection, direct action, cyber, and classified units.
The FY 2021 budget request supports maintaining production for SOF-specific munitions to
reduce operational shortfalls and begin building a more substantial wartime reserve. The FY 2021
budget will fund $0.3 billion for the Special Operations Precision Guided Munitions (SOPGM)
critical to readiness to conduct ongoing and anticipated operations and ensures preparedness for
future operations.
An example of USSOCOM’s balancing modernization and readiness are SOF fixed-wing aircraft
for precision strike (AC-130s) and specialized air mobility (MC-130s). Current challenges are a
combination of the relatively small inventory of these aircraft, high day to-day demand for current
operations, and the ongoing recapitalization to transition legacy AC-130 and MC-130 aircraft toan all J-model baseline fleet on a one-for-one basis. The recapitalization effort is vital to improving
aircraft capabilities and availability. The FY 2021 budget request enables USSOCOM to continue
an accelerated pace of model conversions that is critical to improving the readiness of theseaircraft and mitigating second order impacts on aircrew readiness.

JOINT CAPABILITIESCombatant Command Exercise and Engagement and Training Transformation
The Combatant Command Exercise and Engagement (CE2) and Training Transformation (T2)
program, collectively referred to as “CE2T2,” is the only DoD Joint training program that ensures
the Combatant Command (CCMDs) and Services are able to train fully capable Joint/coalition
forces to restore readiness, improve lethality, strengthen alliances and attract new partners. In
addition to training and readiness benefits, these exercises provide a realistic environment tosupport the rigorous validation of innovative concepts and capabilities to accelerate the fieldingof capabilities to enhance our competitive advantage.
The FY 2021 budget requests $0.54 billion to support the exercise and engagement requirementsof the eleven CCMDs. These events improve the readiness of the force to conduct joint
operations, highlight U.S. capabilities, deter potential adversaries, and build partner capacity. For
the CCMDs, exercise and engagement events are a cost-effective way to provide United Statespresence, reassure allies, and hedge against destabilization in high-risk areas. This funding
enables over 120 major exercises annually that prepare U.S. forces to execute operational plans,
train the combatant command staffs in demanding and realistic environments, provide presence
and regional expertise for U.S. allies and partners, and build relationships and trust. A
combination of performance measures and qualitative evidence are used to support decisions
about CE2T2 and to reduce uncertainty around those decisions. Stakeholders report quarterly
results and align their efforts to a risk framework published by the Office of the Secretary of
Defense in the CE2T2 Program Goals and Objectives.
The exercise portion of the program budgets for the planning and execution of exercises,transportation of personnel and equipment, and incremental costs incurred by the Services to
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Overview – FY 2021 Defense Budget
participate in CCMD exercises. Selected major CCMD exercises for FY 2021 include:•

U.S. Africa Command (USAFRICOM): AFRICAN LION 21 — An annually scheduled,multinational exercise conducted in Africa designed to improve interoperability and mutual
understanding of partner-nation tactics, techniques and procedures. AFRICAN LION
enhances the interoperability of the U.S., partner nations and regional organizations inorder to contain regional instability, conduct peace operations, counter violent extremist
organizations, maintain cross-border security and counter transnational threats. The
scope of AFRICAN LION provides an opportunity for all participating units and nations toenhance readiness by performing their mission essential functions.

•

U.S. Central Command (USCENTCOM): INTERNAL LOOK 21 — A USCENTCOM andComponent Battle Staff exercise that trains the CENTCOM Battle Staff in crisis action
planning and execution processes, rehearses and refines headquarters command andcontrol and battle rhythm, exercises the USCENTCOM Joint Battle Command System,and ensures maximum headquarters Battle Staff readiness to deploy forward andcommand from the USCENTCOM Area of Responsibility.

•

U.S. Cyber Command (USCYBERCOM): CYBER FLAG 21 — DoD’s largest tacticallyfocused joint cyber exercise fusing offensive and defensive cyberspace operations with
DoD full-spectrum combined arms operations against capable and advanced adversaries
in a realistic virtual environment.

•

U.S. European Command (USEUCOM): AUSTERE CHALLENGE 21 — A globally
integrated exercise enhancing interoperability and increasing the readiness of USEUCOM
to exercise combatant command coordination, command and control, and integration ofcapabilities and functions of the USEUCOM headquarters, its component commands, andagencies across the U.S. Government in the crisis action planning and execution of earlyphases of a priority operational plan.

•

U.S. Northern Command (USNORTHCOM)/North American Aerospace Defense
Command (NORAD): VIGILANT SHIELD 21 — an annual homeland defense exercise
focused on the single, unyielding priority of defending North America from attack. The
exercise incorporates the Canadian Joint Operations Command, other American
combatant commands, services, appropriate U.S. government agencies, and allies,
demonstrating readiness and ability to defend Canada and the United States by
responding to a wide variety of security contingencies•

U.S. Indo-Pacific Command (USINDOPACOM): NORTHERN EDGE 21 — a biennial fieldtraining exercise that prepares joint forces to respond to crises in the Indo-Pacific. The
exercise is designed to sharpen participants’ tactical combat skills, to improve command,
control and communication relationships, and to develop interoperable plans andprograms across the joint force.

•

U.S. Southern Command (USSOUTHCOM): PANAMAX 21 — a U.S.-sponsored,
multinational annual exercise that provides important training opportunities for nations towork together and build upon the capability to plan and conduct complex multinational
operations. The exercise scenario involves security and stability operations to ensure freeflow of commerce through the Panama Canal in the context of the constantly evolving
nature of new threats in today’s security environment.

•

U.S. Strategic Command (USSTRATCOM): GLOBAL THUNDER 21 — an annual
command and control exercise providing training opportunities to assess USSTRATCOM
mission areas and operational readiness, with a specific focus on nuclear readiness. This

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Overview – FY 2021 Defense Budget
exercise employs global operations in coordination with other combatant commands,
services, appropriate U.S. government agencies, and allies to deter, detect and, if
necessary, defeat strategic attacks against the United States and its allies..
•

U.S. Transportation Command (USTRANSCOM): TURBO DISTRIBUTION 21-1 through21-4 — field training exercises specifically designed to train and assess Joint Task ForcePort Opening capabilities to ensure a trained, ready joint team can rapidly assess, deploy,
open, operate and manage aerial and sea ports. The exercises build familiarity andimprove interoperability among the participating Joint Force units for the purpose of
opening seaports, airfields and forwarding the mobility-centric goals of the Army and AirForce

CE2T2 also funds joint training enablers that build on Military Department-specific training andreadiness capabilities and help close Service training deficiencies that exist in the seams between
the tactical and joint operational levels of war. The program supports the Services by providing
additional joint context to their force generation training programs. This enables the Services toprovide joint capable units to the CCMDs aligned within their readiness recovery models. The
major enablers that the program funds are:•

The Joint Training Enterprise Network (JTEN) is a system that links the geographicallyseparated live, virtual, and constructive training capabilities of the CCMDs and theDepartments, and integrates them into a realistic joint training environment. The JTEN
bridges the gap between tactical and operational level training and mission rehearsal
activities by providing real-time connectivity and simulations of higher headquarter
authorities.

•

The Joint Training Coordination Program (JTCP) enables the participation of one Military
Department’s assets in the tactical-level exercises of another Military Department.
Specific exercises receiving JTCP funding in FY 2021 include: the Air Force’s RED FLAG
exercises held at Nellis Air Force Base, NV; the Navy’s Fleet Readiness exercises held at
Air Wing Fallon, NV; the Marine Corps’ Tactical Operations Group exercises held at
Twentynine Palms, CA; the Army’s National Training Center Program events in Fort Irwin,
CA, and USSOCOM/Navy Special Warfare Command’s TRIDENT series of exercises.
These joint training venues prepare the Military Departments for the tactics used inongoing operations in theaters across the globe.

•

Other critical efforts include joint individual training that prepares service members tooperate in a joint environment and service-unique training simulations allowing personnel
to operate in a realistic joint environment and with U.S. international partners. The
program also provides replication of robust opposing forces (OPFOR) that optimize
training on Departmental tactical ranges for both the host Military Department and other
Military Department participants and development of a virtual training environment thatfacilitates 24/7 online joint training from the individual to the joint task force level.

READINESS REFORM
In response to the FY 2019 NDAA, members of the Office of the Secretary of Defense (OSD),
Joint Staff, Military Services, Combatant Commands (CCMDs), and Combat Support Agencies(CSAs) have examined the strengths and weaknesses of past and current Defense Readiness
Reporting Systems to determine the shortfalls of the current readiness reporting framework andto identify the areas in which the Department could improve the system. They assessed andreviewed new analytical technologies that may help the Department more effectively andefficiently gather, analyze, and visualize readiness data.

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Overview – FY 2021 Defense Budget
In order to successfully measure the readiness of warfighting force elements, the Department
must:•

Improve the data quality, accessibility, and flexibility of our readiness reporting system byaccessing, linking and leveraging many authoritative data sources (ADS) across the DoD•

Increase diagnostic capabilities by providing more specific and adaptable data pertaining
to factors that contribute to readiness at its current or predicted levels•

Develop consistent, intuitive methods to identify root causes of readiness degradation•

Visualize common readiness trends across the Total Force, and develop predictivemodels to forecast the impacts on future readiness that result from current decisions,based on leading indicators

Most importantly, the DoD must balance and synchronize three complementary readiness
imperatives: provide long-term sustained readiness (led by OSD); sustain the demands of current
and emergent global engagements (led by the Joint Staff); and execute the myriad tasks needed
to build, sustain, and regenerate readiness at all times, led by each of the Military Services. Thisbalance and synchronization will be critical to produce data-informed qualitative assessments of
DoD readiness to the Committees, the Commander-in-Chief, and other key stakeholders in
National Defense.

The Department is committed to executing a 10-year plan to modernize the
Defense-Wide operational training infrastructure which is critical to readinessand to preserving the U.S. Military’s advantage in a rapidly evolving strategic
environment.
The Department is also working to reform safety management practices. The Defense Safety
Oversight Council (DSOC) continues to bring senior leaders together to focus on Operational
Safety and Occupational Safety and Health concerns within the Department. The DSOC provides
analysis and tracks trends within the Department, so that resources may be targeted to prevent
mishaps and injuries and save lives throughout the operational enterprise. For example, the Armyis investing in safety management systems to include the Army Safety and Occupational HealthEnterprise Information System and the Joint Risk Assessment Tool. The Marine Corps is focusedon improvements to the aviation safety awareness program, risk management information
system, ground/aviation survey support and command climate, and automatic collision avoidancesystems (AGCAS) on the F-35. The Navy is resourcing safety training, mentorship programs andother efforts to improve the safety culture such as an afloat cultural workshop, as well as their risk
management information system. The Air Force is continuing to resource AGCAS, military flight
operation quality assurance recorders on aircraft, and expanding their Air Force Safety AutomatedSystem for mishap data collection and analysis.
The purpose of the plan is to synchronize efforts and provide authorities for the Department tofocus work on important and well-known training infrastructure issues. The plan establishes along-term oversight and management construct to modernize operational training infrastructure
over the next 10 years through specific, measurable efforts aligned with the 2018 NDS and othergoverning documents.
The foundation of the plan is a set of overarching goals to modernize operational training
infrastructure. The goals represent enduring priorities that set into motion an iterative process tocollaboratively and deliberately upgrade and field training capability, as well as guide theDepartment’s strategic approach to mitigate known training gaps. The foundational, overarchinggoals are:
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Overview – FY 2021 Defense Budget
1. Improve the use of live, virtual, and constructive (LVC) training
2. Improve air combat training systems to enable all-domain air dominance in combat against
peer and near-peer adversaries
3. Enable electronic warfare in all training environments and incorporate electromagnetic
spectrum as a warfighting maneuver space
4. Integrate robust cyber training capabilities and effects across the full range of militarytraining
5. Modernize training communications to align with national spectrum policies; leverage theopportunities of rapid technological innovation and 5G networks/communications; andmitigate attendant vulnerabilities and threats
6. Improve and expand joint combat operations training
7. Develop Joint Force capability to train in a contested space environment.
Each overarching goal in the plan has associated objectives and actions to be implemented overthe plan’s 10 year timeframe. The first 2 years of implementation are comprised of actions that
initiate efforts aligned with each overarching goal and objective. Key actions for FY 2021 include
developing an implementation plan to rapidly acquire adversary air and Integrated Air Defense
Systems capability no later than the fourth quarter (Q4) of FY 2021, as well as developing a plan
to field prototype 5G training use case and experimentation opportunities by Q2 FY 2021 forfielding by Q3 FY 2023. Several actions in the plan include reorganizing how Defense-wide
operational training infrastructure is managed within the Department.
Another key action for FY 2021 is to develop an organizational construct to support joint training
enablers by Q4 FY 2021. Finally, there are several known, training infrastructure-related
challenges that require further understanding to fully address. The Department will study anddefine the capabilities and tools needed to incorporate cyber effects into major exercises no later
than Q4 FY 2021. To foster more effective, data-driven joint training, the Department will survey
available training systems data—such as scoring, feedback, and other performance data—andestablish a framework for future cross-Service data collection, sharing, analysis, and design nolater than Q4 FY 2021.

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4. ENHANCING LETHALITY“The re-emergence of long-term strategic competition, rapid dispersion oftechnologies, and new concepts of warfare and competition that span the entire
spectrum of conflict require a Joint Force structured to match this reality.”- National Defense Strategy

The Fiscal Year (FY) 2021 budget request for the
Department of Defense (DoD) focuses on the
Secretary of Defense’s vision to build a lethal,resilient, agile and ready force. The budget requests
from President Trump’s Administration since
FY 2017 initiated the rebuilding process by making
additional investments in near-term readiness, filling
programmatic holes caused by years of budget cuts,and setting the stage for future capability andcapacity increases.
The FY 2021 request
institutionalizes the execution of the National
Defense Strategy (NDS) concept and strategy forirreversible development of a more lethal, andefficient force that can project power globally against
a full spectrum-of threats.

Sections•

The Growing Threat•

Power Projection•

Munitions•

Nuclear Modernization/Nuclear
Deterrence•

Missile Defeat & Defense•

Science and Technology•

Space and Spaced Based-Systems•

Cyberspace Activities

The United States military force, aligned under the
NDS construct and optimized to prevent aggression and combat violent extremist threats, requires
thoughtful decisions that exploit the competitors’ weaknesses and leverage U.S. strengths -- thefoundation of this budget submission.

THE GROWING THREAT
China and Russia – today's revisionist powers in an era of great power competition – aremodernizing their militaries while seeking veto power over the economic and security decisionsof other nations. Since 2002, China has tripled its annual military spending to an estimated$250 billion last year. Beijing continues to violate the sovereignty of Indo-Pacific nations andexpand its control abroad under the pretense of Belt and Road infrastructure investments.
Meanwhile, it is pursuing advantages in emerging technologies, such as artificial intelligence and
5G, while exploiting other nations’ intellectual property for its own gain. Russia intends to upend
international norms through aggressive foreign policy, broken treaty obligations, nuclear
intimidation, and cyber operations. It has violated the borders of its neighbors in the pursuit ofregional dominance and turned to coercion and hybrid tactics as a means to regain strategic
advantage. DoD also faces ongoing threats from North Korea's nuclear weapons program, Iran's
efforts to destabilize the Middle East, and terrorist organizations, such as ISIS, that continue topose a threat to the United States and our allies.
Figure 4.1 summarizes the top DoD weapons programs in the FY 2021 budget. Further details
can be found in the Department’s “Program Acquisition Costs by Weapon Systems” book.

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Overview – FY 2021 Defense Budget
Figure 4.1. Major Weapons Programs*
Weapon Systems($ in billions)
Qty

FY 2020
EnactedQty

FY 2021
PB Request

Aircraft
Joint Strike Fighter
F-15EX
Advanced Eagle
Air Force NGAD
Next Generation Air Dominance
KC-46A
Tanker
P–8A
PoseidonF/A-18E/F
Super Hornet
CH-53KKing Stallion Helicopter
E–2D AHE
Advanced Hawkeye
AH–64E
Apache Helicopter
UH–60
Black Hawk Helicopter
VH-92A
Executive Helicopter
V–22
OspreyMQ-4
Triton Unmanned Aerial Vehicle
MQ-25
Stingray Unmanned Aerial Vehicle
TBD
Light Attack Aircraft (Air Force)
TBD
Armed Overwatch (USSCOM)
Missile Defense/Nuclear Deterrent
MDD
Missile Defeat and Defense
B-21
RaiderSSBN
COLUMBIA Class Submarine
Trident II
Trident II Missile Mods
LRSOLong Range Standoff Weapon
GBSD
Ground Based Strategic Deterrent
B61 Tail Kit
B61 Mod 12 Life Extension Program
Ships
SSN 774
VIRGINIA Class Submarine
DDG 51
ARLEIGH BURKE Destroyer
CVN 80/81
FORD Aircraft Carrier
FFG(X)
Frigate (FFG(X))
SAN ANTONIO Amphibious
LPD 17
Transport
T-AO
Fleet Replenishment Oiler
EPF
Expeditionary Fast Transport
USV
Unmanned Surface Vessels (Large)
T-ATS
Towing, Salvage, and Rescue Ship
Space
NSSL
National Security Space LaunchGPS
Global Positioning System
Next Gen. Overhead Persistent
NG OPIR
Infrared
F–35

98
8
12
9
24
6
6
49
99
6
14
2
-

12.6
1.1
0.9
2.2
1.8
2.0
1.6
1.4
1.1
1.7
0.8
2.1
0.7
0.6
0.2
-

79
12
15
24
7
4
52
60
5
9
5

11.4
1.6
1.0
3.0
0.3
2.1
1.5
1.1
1.2
1.0
0.7
1.8
0.4
0.3
0.0
0.1

533

21.5
3.0
2.4
1.2
0.7
0.6
0.1

1
-

20.3
2.8
4.4
1.2
0.5
1.5
0.05

2
3
1
1

8.8
6.2
2.5
1.3

1
2
1

4.7
3.5
3.0
1.1

-

0.6

1

1.2

2
1
2
2

1.1
0.3
0.4
0.2

2
2

0.1
0.5
0.2

4
1

1.7
1.7

3
2

1.6
1.8

-

1.7

-

2.5

* Includes Procurement and RDT&E dollars and quantities

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Overview – FY 2021 Defense Budget

POWER PROJECTION
The FY 2021 President’s Budget prioritizes the Department’s power projection capabilities toinclude enhancements to offensive air and sea power through the development and procurementof long range strike weapons, combatant ships, and strike aircraft and the modernization ofexisting weapons, ships, aircraft, and electronic warfare capabilities.

“The security environment is also affected by rapid technologicaladvancements and the changing character of war.”- National Defense Strategy

Air Power
The FY 2021 budget request continues
procurement of the Joint Strike Fighter aircraft
and modernization programs for existing Navyand Air Force strike fighter aircraft andbombers. Development of the B-21 Raider
long range strike bomber is also funded withinitial capabilities projected to be fielded in the
mid-2020s. Technology Maturation and Risk
Reduction for the next generation of air
dominance systems is also included.
The major tactical air power investment is the
F-35 Lightning II Joint Strike Fighter (picturedhere), which will form the backbone of the U.S.
inventory. The F-35 program is developing, producing, and fielding three variants of a
5th Generation strike fighter: 1) Air Force F-35A Conventional Take-Off and Landing variant;
2) Marine Corps F-35B Short –Take Off- and Vertical Landing (STOVL) variant; and 3) Navy
F-35C Carrier variant. The F-35's interoperability allows seamless information exchanges making
all of our warfighters in the battlespace smarter, more lethal, and more survivable. As the F-35
program continues to field increasing numbers of the three variants of the aircraft across theglobe, the Defense Department remains committed to cost effectively delivering improved
capabilities to achieve more affordable outcomes benefiting all stakeholders.
The FY 2021 budget also includes procurement of 4th generation fighter aircraft by procuring
24 additional F/A-18E/F Super Hornets and capitalizing on existing Foreign Military Sales (FMS)
production lines to procure 12 F-15 EX aircraft to increase readiness of the Navy and Air Forcefighter fleet and relieve pressure on the aging legacy platforms. The budget continues to fund the
Navy’s MQ-25 unmanned aircraft system, which will provide the Department with an unmanned
tanker capability that will extend the striking power of the carrier air wing while providing maritime
surveillance for the carrier strike group. In order to meet the long-term missions of the NDS, theDepartment continues to develop advanced combat aircraft for both the Navy and Air Force within
the Next Generation Air Dominance program. The FY 2021 budget also continues procurementof the KC-46A aerial refueling tanker, which will replace aging legacy tankers. The KC-46A
provides increased refueling capability for Navy and Air Force aircraft. Finally, to further enable
the Counter Violent Extremist Organization (CVEO) mission, the FY 2021 budget allocatesfunding to Special Operations Command (SOCOM) for an Armed Overwatch Aircraft program tosupport operations and partner nations in the fight against terrorism.
The FY 2021 budget funds the continued Air Force and Navy procurement of both the AIM-120D
Advanced Medium Range Air-to-Air Missile (AMRAAM) and the AIM-9X Block II Sidewinder
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Overview – FY 2021 Defense Budget
short-range air-to-air missile. Both programs are in Full-Rate Production and are integral to thepreservation of air superiority for U.S. Armed Forces in future combat operations.
The Navy, Marine Corps, and Air Force are investing in modernization programs that improve thecapability and extend the utility of existing aircraft. Adding advanced Infra-Red Search and Track(IRST) sensors will significantly improve detection and targeting of threat aircraft despite complex
enemy Electronic Attack, while the development and fielding of an Active Electronically Scanned
Array radar will enable the F-16 aircraft to maintain relevance throughout their service life.
The FY 2021 budget funds the development of the B-21 Raider, the next generation long range
strike bomber, and modernization of the existing bomber fleet of B-52s, B-1s and the B-2s. The
budget funds B-52 avionics and weapons upgrades as well as replacement for the B-52's
inefficient and aging engines.
The FY 2021 budget funds multiple electronic warfare capabilities to improve platform survivability
and enable power projection. The Next Generation Jammer (NGJ) will provide significantly
improved Airborne Electronic Attack (AEA) capabilities against advanced integrated air defense
radars, communications, and data links for the EA-18G aircraft. The FY 2021 budget also funds
survivability improvements in the F-15 Eagle Passive Active Warning and Survivability System(EPAWSS) and the Integrated Defensive Electronic Countermeasures System for F/A-18 aircraft.
These will autonomously detect, identify, locate, and defeat radio frequency (RF) threat systems.
In addition, the FY 2021 budget funds the continued production of the Common Infrared
Countermeasures (CIRCM) system to defeat current and emerging missile threats to rotary wing,tilt rotor, and small fixed wing aircraft across the Department.
Sea Power
Nuclear aircraft carriers (CVNs) provide forward presence for air power projection. The FY 2021
budget continues incremental funding for the GERALD R. FORD Class nuclear aircraft carriers:
ENTERPRISE (CVN 80) and the DORIS MILLER (CVN 81). Amphibious warships, along with
their connector craft, are versatile, interoperable
warfighting platforms and are critical enablers toprojection of power by sea-based forces intheater. The FY 2021 budget request includes
funding for the first LPD 17 SAN ANTONIO Class
Flight II ship, Landing Craft Air Cushion (LCAC)
101 and recapitalization of the Landing Craft,
Utility (LCU) 1700 to support amphibious assault
capability. Surface Combatant Ships are multimission warships designed and built to execute
Sea Control and Power Projection missions. The
FY 2021 budget continues procurement of the DDG 51 Flight III variant (pictured here), which,with the addition of the AN/SPY-6(V) Air and Missile Defense Radar (AMDR), provides improved
sensitivity for long-range detection and engagement of advanced Air, Surface, and Ballistic
Missile threats. The FY 2021 budget request supports procurement of the new Frigate to address
the Navy’s Small Surface Combatant requirements for a more lethal and capable follow-on to the
Littoral Combat Ship. The FY 2021 budget request continues diversifying and expanding sea
power strike capacity by continuing procurement of offensively armed Unmanned Surface Vessels(USVs) and provides funding for two additional Towing, Salvage, and Rescue ship to continue
recapitalizing these important assets.
Submarines provide the Navy with unprecedented strike and special operation mission
capabilities from a stealthy, clandestine platform. Armed with tactical missiles, the Navy's four
OHIO class guided-missile submarines carry up to 154 Tomahawk land-attack cruise missiles
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Overview – FY 2021 Defense Budget(TLAMs) and have the capacity to host up to 66 Special Operation Forces (SOF) personnel;
however, they begin to decommission in the 2020's. The FY 2021 budget request continues thedevelopment of the VIRGINIA Payload Module (VPM) in Block V VIRGINIA Class submarines(VCS), which will replace much of this critical capability by adding 28 additional TLAMs and spacefor SOF operations over Block I-IV VCS.
The FY 2021 budget request also funds programs that implement survivability improvements to
the U.S. maritime defensive capabilities, which consist of the Surface Electronic Warfare
Improvement Program Block 3 electronic attack capability (pacing the advanced threats) and theAdvanced Off-board Electronic Warfare Program, consisting of long duration, off-board decoys toaddress identified electronic warfare gaps.
The FY 2021 budget continues funding for 125 Standard Missile-6 (SM-6) missiles, providing themost capable long range anti-air missiles for Fleet defense.
Land Power
Ground forces provide combat power to assure allies, deter aggression, and win the Nation’swars. The FY 2021 budget improves the lethality and survivability of the Army’s Brigade Combat
Teams by divesting legacy systems andinvesting in modernizing combat vehicles in
the Armored Brigade Combat Teams toinclude upgrading Abrams tanks (picturedhere), producing M109A7 Paladin Integrated
Management Self-Propelled Howitzers, andbuilding Armored Multi-Purpose Vehicles.
The budget also upgrades 154 Stryker
vehicles for the Stryker Brigade Combat
Teams. Beyond these efforts, the FY 2021
budget continues investments in research,development, test and evaluation for Future
Vehicle Lift Family of Systems Technology,
next generation of combat vehicles, longrange artillery, Infantry Support Weapons, and for Military Ground-Based CREW Technology.
Another key combat vehicle investment is the purchase of 72 Amphibious Combat Vehicles for
the Marine Corps. These systems replace aging Amphibious Assault Vehicles and provide anarmored personnel carrier with an appropriate balance in performance, protection, and payload
to support Marines across the range of expected military operations.
The FY 2021 budget continues to make great strides in Close Combat by investing in key
recommendations provided by the Close Combat Lethality Task Force (CCLTF) that improve andenhance the lethality, survivability, and performance of the infantry in both the Army and theUnited States Marine Corps (USMC). The FY 2021 budget accelerates the procurement of theIntegrated Visual Augmentation System (IVAS) to support the first unit equipped and initial
operating capability in FY 2021. Further enhancements and improvements included additional
funding for the Tailored Adaptive Assessment System (TAPAS), the Monitoring and Assessing
Soldier Tactical Readiness and Effectiveness (MASTR-E) program, and accelerating the deliveryof lighter weight helmets, torso plates, and rations. The FY 2021 budget also funds the Joint
Artificial Intelligence Center’s (JAIC) efforts for small unit maneuver, as well as investments inholistic performance-based programs that will enhance the physical fitness, cognitive ability,
resilience, and overall performance of close combat formations.

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Overview – FY 2021 Defense Budget
Special Operations
The FY 2021 budget for Special Operations Forces (SOF) reflects the NDS focus on great powercompetition by increasing funding for research and development, modernization, and expanded
capabilities for high-end warfighting while sustaining counterterrorism (CT) and CVEO operations,coordinating the Department's Countering Weapons of Mass Destruction (CWMD) mission, andcontinuing to focus on readiness. The FY 2021 budget sustains SOF manpower growth andreadiness and increases lethality through modernization and recapitalization, and investing in newtechnologies. This includes investments in precision-strike systems, future vertical lift (FVL),
Armed Overwatch/Targeting, and next-generation surface and sub-surface maritime craft.

MUNITIONSThe Department continues to conduct limited combat operations in small conflicts, all supported
by coalition partners. Timely procurement actions are vital to reduce risk to near-term munition
stockpiles and also to ensure that strategic inventories are sustained and ready in support ofworldwide Operational Plans. Forecasting munitions requirements remains a considerable
challenge, given the domain spectrum (ground, sea, and air) the Department covers, coupled withthe range of combat effects demanded by different operational theaters. The parallel obligation
to support coalition partner munitions needs and integrating them with Department actions issimilarly essential in ensuring cooperative combat operations can be successfully conducted.
Many munitions are precision-guided, launch and leave, with limited low-collateral damage andemployed by more than one Service and U.S. allies. Recent elevated requirements from all
Services, coupled with that of coalition partners, collectively drive demand at all levels of thiscritical industry. Since munitions are unique military items, sub-tier suppliers do not have thecommercial base to sustain their business during funding downturns. Recent Department
procurement increases across a range of critical munitions have strengthened industrial capacity
among primary supply contractors for these select lines, resulting in quality products, highproduction rates, on-time deliveries, and competitive pricing.
While the Department is still expending munitions for current operations primarily to check IslamicState of Iraq and Syria (ISIS) aggression, the demand signal continues to recede given thesustained success of combat operations against the adversary. The Department is currently
focused on a two-fold effort. First, ensure the U.S. worldwide munition inventories are sufficiently
stocked by adjusting future procurement ramps accordingly. Second, ensure sufficient
procurement of more advanced, high-end weapon systems, which provide increased standoff,enhanced lethality, and autonomous targeting for employment against near-pear threats in more
contested environments. This family of weapon systems, which includes cruise missiles such as
the Joint Air-to-Surface Standoff Missile (JASSM), is essential to our national security and theDepartment has accordingly ramped up procurements to ensure healthier inventory levels areachieved as soon as possible. The FY 2021 budget has invested in both of these paths, whichequally contribute to strengthening the Department's lethal posture.
The Department continues to invest in the munitions industrial base to ensure production capacity
is economically exercised. The FY 2021 request invests in both organic and commercial industrial
base capabilities; for example, explosives for warheads, propellants for solid rocket motors andammunition, inertial navigation units, and many other components. The table below reflects
quantities and funding for several critical munitions.

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Overview – FY 2021 Defense Budget
Figure 4.2. FY 2021 Funding for Munitions* (Base and OCO)
FY 2019
FY 2020
Weapon System
ActualActuals
Qty
Enacted
Qty
Guided Multiple Launch
7,951 $1,118.5
8,523$1,338.4
Rocket System
Joint Direct Attack Munition 39,614 $1,119.3
28,388$1,109.5
Joint Air-to-Surface
360$643.7390$561.9Standoff Missile
Long Range Anti-Ship48$315.6
17$187.9Missile (LRASM)
Tomahawk$332.590$659.2
Small Diameter Bomb I
5,743$209.3
7,078$273.3Hellfire
5,161$461.08,790$726.8
Standard Missile-6
125$743.6125$655.7($ in millions)
FY 2021
FY20–FY21
PB
Quantity
PB QtyRequestChange7,360 $1,204.0-1,163

20,338$532.7-8,050400$576.7+1053$224.4

+36

203
2,462
8,150
125

$603.0$95.9$516.6$816.4+113-4,616-640-* Includes Procurement and RDT&E dollars and quantities

NUCLEAR MODERNIZATION/NUCLEAR DETERRENCE“Nuclear deterrence is the highest defense priority of the U.S. Department of
Defense.”- National Defense Strategy

Modernizing the nation’s nuclear delivery and command, control, and communications systems
is the Department’s number one priority, and these programs are funded in the FY 2021 budget
request. The Department has steadily received strong, bipartisan congressional support for the
nuclear deterrence modernization mission. Most of the nation’s nuclear deterrence delivery
systems, built in the 1980s and prior, are reaching the end-of-service life in the 2025 to 2035
timeframe, with all currently-fielded systems having been extended well beyond their original
service lives. Replacement programs are underway to ensure that there are no gaps in capability
when the legacy systems age-out. There is little schedule margin between legacy system ageout and fielding of the replacement systems. Recapitalizing the nuclear platforms and delivery
systems and associated support systems will require an increase in spending over the next
20 years. The amount expended to recapitalize the nuclear enterprise continues to be costeffective and affordable and is not anticipated to exceed 7 percent of the Department’s budget
during that period. The table below reflects the funding for eight critical weapons systems.

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Figure 4.3. Nuclear Modernization FY 2021 Funding* (DoD Funding only)
FY 2019
FY 2020
FY 2021
Weapon System
ActualEnactedRequest($ in billions)
FY20 – FY21
$ Change

Ground Based Strategic Deterrent

$0.4

$0.6

$1.5

+$1.0

Long Range Stand Off cruise
missile

$0.6

$0.7

$0.5

-$0.2

COLUMBIA class submarines
Trident II Life Extension

$3.9
$1.1

$2.4
$1.2

$4.4
$1.2

+$2.1
--

B-21 Bomber
F-35 Dual Capable Aircraft
B61 Tail Kit
Nuclear Command, Control andCommunications (NC3)

$2.2
$0.08
$0.19
$2.7

$3.0
$0.07
$0.11
$3.5

$2.8
$0.11
$0.05
$4.2

-$0.1
+$0.04-$0.06+0.7* Includes Procurement and RDT&E dollars

Ground Based Strategic Deterrent (GBSD). The GBSD system will replace the Minuteman III
Intercontinental Ballistic Missile Weapon System (WS), including new flight, WS Command andControl, and ground systems; and conversion, modernization, and replacement of the MM III
infrastructure, beginning in the late 2020s. The program is planning for a Milestone B decisionand subsequent entry into the Engineering and Manufacturing Development (EMD) phase in the
fourth quarter of FY 2020.
Long-Range Stand Off (LRSO) cruise missile. The LRSO effort will develop a weapon system
to replace the AGM-86B Air Launched Cruise Missile, which entered service in 1982. The LRSO
weapon system will be capable of penetrating and surviving advanced Integrated Air Defense
Systems from significant stand-off ranges to hold strategic targets at risk in support of the Air
Force’s nuclear deterrence operations core mission. The LRSO is also critical as a hedge against
risks in the other, more complicated nuclear deterrence system development programs and inenhancing the credibility of the DoD deterrent to assure U.S. allies. The program is in theTechnology Maturation and Risk Reduction (TMRR) phase and is planning for a Milestone B
decision and entry into the EMD phase in FY 2022.
COLUMBIA class Ballistic Missile Submarine (SSBN). The COLUMBIA class SSBN is being
developed to replace the OHIO-class SSBNs starting in October 2030. The Navy will sustain the
OHIO class to ensure a smooth transition for the sea-based leg of the Triad with the COLUMBIA
class SSBN. The COLUMBIA class program successfully completed Milestone B in January
2017. FY 2021 is the start of construction of the lead ship.
Trident II (D5) Submarine-Launched Ballistic Missile (SLBM) Life Extension (D5LE). The
D5LE program extends the service life of the D5 SLBM and will be deployed on both OHIO-classand COLUMBIA-class SSBNs. The D5LE is in production and achieved Initial Fleet Introduction
in February 2017. The Navy will continue development efforts for a follow-on system to the D5LE
in FY 2021.
B-21 Raider Strategic Bomber. The B-21 Raider is being developed to acquire an affordable,
long range, penetrating aircraft that incorporates proven, mature technologies. This bomber
represents a key component to the joint portfolio of conventional and nuclear deep-strikecapabilities.
F-35A Dual-Capable Aircraft (DCA). The F-35A DCA will replace the Air Force’s F-15 DCA to
support extended deterrence. The F-35A DCA is scheduled to achieve nuclear certification in
FY 2024.
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B61 Mod 12 Life Extension Program (LEP) Tail Kit Assembly (TKA). The nuclear gravity
bomb B61 Mod 12 LEP will consolidate four legacy B61 variants into a single variant for carriage
on heavy bombers and DCA. The Air Force funded TKA will be coupled with the Department ofEnergy/National Nuclear Security Administration (DOE/NNSA) Bomb Assembly to extend thelifespan of the B61 gravity bomb while making it safer, more secure, and more reliable. The TKA
program achieved Milestone C in October 2018.
Nuclear Command, Control, and Communications (NC3). The NC3 system is critical to thenation’s nuclear enterprise. It provides assured and resilient connectivity between the President
and nuclear forces via terrestrial, airborne, maritime, and space-based components. The
Department is prioritizing resources to modernize legacy NC3 systems that are nearing or past
projected end of life and architecting the next generation NC3 capability in continued support ofstrategic deterrence.

MISSILE DEFEAT & DEFENSEThe Department is committed to supporting the 2019
Missile Defense Review calling for a layered defense,comprehensive missile defense capabilities, flexibility andadaptability, tighter offense-defense integration andinteroperability, and the importance of space. While the
FY 2020 budget request made key down payments on
lethality and shifted to great power competition throughinnovation, the FY 2021 budget request focuses on adiversified set of missile defeat and defense (MDD)
capabilities to counter the advancing threat.

“Investments will focus onlayered missile defenses
and disruptive capabilities
for both theater missile
threats and North Koreanballistic missile threats.”-National Defense Strategy

The FY 2021 budget funds enhancements to U.S. MDD capabilities to defend the homeland,
deployed forces, allies, and partners against an increasingly complex adversarial missile threat.
This budget request increases missile defense capacity and capability to keep pace withadvancing threats, while investing in new alternative approaches to a layered defense of thehomeland. The FY 2021 budget request includes $20.3 billion for MDD, which includes$9.2 billion for the Missile Defense Agency (MDA), $7.9 billion in regional and strategic missile
defense capabilities outside of MDA, and $3.2 billion in missile defeat or left-of-launch activities.
MDA is pursuing a layered homeland defense approach that will include the development of a
Next Generation Interceptor (NGI) for Ground-Based Interceptors (GBI) and improvements tocurrent regional defense systems to enable limited homeland defense underlay capability. The
NGI will improve system survivability and performance against projected threats. MDA willcontinue design and development activities for two competitive interceptor development contracts
scheduled to be awarded in 4th quarter of FY 2020.
Improvements to current regional defense systems will include an assessment of the Aegis BMD
weapon system and SM-3 Block IIA missile to augment homeland defenses to defeat
Intercontinental Ballistic Missiles (ICBM) threats. Also, MDA will initiate the development anddemonstration of a new THAAD interceptor prototype to support Contiguous United States
Defense as part of the layered homeland defense effort. This effort will develop prototype
software and hardware and perform a series of demonstrations to prove the technologies toThis budget request increases missile defense capacity and capability to keep
pace with advancing threats, while investing in new alternative approaches to alayered defense of the homeland.

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Overview – FY 2021 Defense Budget
enable expansion of engagement options and coverage areas for the THAAD weapon system ina flight test in FY 2023.
The budget supports completion of an additional missile field in Alaska to enable an operational
fleet of 44 GBIs and 20 NGIs in the future and the deployment of the an upgraded Command andControl, Battle Management and Communications (C2BMC) and Long Range Discrimination
Radar in Alaska to improve Missile Defense System (MDS) discrimination capability and allow for
more efficient use of the GBI inventory.
The budget reflects the Department’s commitment to building integrated regional missile defenses
that are interoperable with systems deployed by international partners to protect deployed forces,
allies, and international partners against Short Range Ballistic Missiles (SRBM), Medium Range
Ballistic Missiles (MRBM), and Intermediate Range Ballistic Missiles (IRBM).
For U.S. missile defense capabilities, the MDA FY 2021 budget request:•

Begins new Next Generation Interceptor (NGI) All-Up Round (AUR) competition todevelop homeland defense interceptor capability and capacity and will increase current
fleet size to 64 as early as the end of the decade.

•Leverages existing architectures and regional defense systems to demonstratecomplementary homeland defense underlay capabilities. If the demonstrations are
successful, homeland defense underlay systems could begin fielding as early as 2025.

•

Supports the U.S. Forces Korea (USFK) to improve missile defense capability on the
Korean peninsula.

•

Supports
HypersonicDefenseandcontinues
toassessarchitecture
alternatives and provide recommendations
for Regional Glide Phase Weapon System
missile defense configurations to keep pacewith evolving threats. DoD will pursue
hypersonic threat defense weapon systems
and leverage and upgrade existing systems
while developing and maturing component
technologies that augment hypersonic
defense architectures.

•

Matures advanced component technology
against ballistic targets and advanced
threats to improve weapon system
performance and operational utility.

•

Continues, in alignment with the UnitedStates Navy, to support and operate the
Aegis Ashore site in Romania anddeployment of a second site in Poland, as
an integral part of NATO’s Ballistic Missile
Defense (BMD) architecture.

•Continues increasing BMD capability and capacity of the Aegis Fleet and procures
34 Standard Missile-3 (SM-3) Block IB missiles to be deployed on Aegis BMD ships andat Aegis Ashore Sites as part of a Multiyear Procurement; continues the integration of theSM-3 Block IIA into the Aegis BMD Weapon Systems; procures six SM-3 Block IIA missiles
to contribute to defense against longer-range and more complex threats; ensures the

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Overview – FY 2021 Defense Budget
maturation of the manufacturing process; and continues development of the Sea Based
Terminal capability to protect the Fleet and forces ashore.
•

Provides funding for Terminal High Altitude Area Defense (THAAD) development efforts
and software upgrades such as implementation of flexible threat packages and defense
planning, improved capability to engage SRBM, MRBM, and limited IRBM threats andintegration of the THAAD Battery capability into the Army’s Integrated Air and Missile
Defense Battle Command System (IBCS) planning process. The THAAD budget request
also includes funding for the procurement of 41 THAAD Interceptors in FY 2021 as well
as for operating support to maintain and upkeep BMD System-unique items of fielded
THAAD Batteries and for training devices.

•

Provides funding to perform the systems engineering required to design, build, test,
assess, and field the integrated MDS.

•

Provides funding to execute a comprehensive, highly integrated, complex, cost-effective
series of flight tests, ground tests, cybersecurity tests, wargames, and exercises to ensurethat MDS capabilities are credibly demonstrated and validated prior to delivery to the
Warfighter.

•

Continues support for Israeli Cooperative BMD Programs, to include United States funding
for the Iron Dome system to defeat short-range missiles and rockets and co-development
and co-production of the David’s Sling Weapon System and Arrow-3 System.

Outside of MDA, the Department invested nearly $7.9 billion in regional and strategic missile
defense capabilities:•

Air Force and Space Force investments total $2.7 billion to upgrade and sustain strategic
and tactical warning and tracking systems. These investments include the Next
Generation Overhead Persistent Infrared to track ballistic and hypersonic threats,
Upgraded Early Warning Radars, and Wide Area Surveillance in the National Capital
Region.

•Army investments total $2.8 billion, bolstering regional missile defense capability. These
investments include procuring 168 PAC-3/MSE missiles in FY 2021 and fielding the Lower
Tier Air and Missile Defense System planned urgent materials release by FY 2022 andfour Maneuver Short Range Air Defense battalions by FY 2023.

•

Navy investments total $2.0 billion, focusing on ship-based defense for regional andstrategic threats. These investments include Aegis Ballistic Missile Defense Weapon
System, Standard Missile procurement for cruise, ballistic, and hypersonic missile
defense, and E-2D Hawkeye sensor capabilities.

•

Space Development Agency (SDA) missile defense investments total $99.6 million in
FY 2021 to develop and demonstrate a hypersonic tracking layer by FY 2023. In addition,
SDA is developing a data Transport Layer that will enhance several mission areas toinclude missile defense.

Finally, the Department invested $3.2 billion for left-of-launch capabilities involving cyber andhypersonic strike.

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Overview – FY 2021 Defense Budget

SCIENCE AND TECHNOLOGYThe Department relies upon the science and“We cannot expect successtechnology (S&T) enterprise to research, develop,
fighting tomorrow’s conflicts withand demonstrate high pay-off technology solutions
to the hard problems faced by our Warfighters inyesterday’s weapons orever-changing, complex environments against an
equipment…we must invest inincreasingly diverse set of threats. The FY 2021
modernization of key
budget request for S&T is $14.1 billion, which iscapabilities.”
equal to the Department’s FY 2020 request for-National Security Strategy
continued S&T focus on pursuing solutions that are
innovative, affordable, and versatile to ensure that
our military remains the most capable in the world. The FY 2020 enacted amount includes
congressional S&T adds, totaling $2.3 billion (offset by $259 million in S&T marks). See Figure
4.4.
Highlights of the FY 2021 budget request for S&T:•

Maintains a robust Basic Research program of $2.3 billion to yield disruptive, non-incremental
advances and high quality defense science, technology, engineering, and mathematics talent•

Funds the Defense Advanced Research Projects Agency budget of $3.5 billion to develop
technologies for revolutionary, high-payoff military capabilities•

Continues to push the envelope with innovative and cutting edge research coupled with new
approaches to solving problems such as leveraging non-traditional partners and mechanisms
to engage a broader community, in order to ensure U.S. technical dominance.

Figure 4.4. Science & Technology Program Base and OCO budget($ in billions)

Program

FY 2019
Actuals*

FY 2020
Enacted**FY 2021
Request***FY20–FY21
ChangeBasic Research (6.1)

2.5

2.6

2.3

-0.3

Applied Research (6.2)

5.9

6.1

5.4

-0.7

Adv Tech Dev (6.3)

6.9

7.4

6.4

-1.0

Total S&T

15.3

16.1

14.1

-2.0

*FY 2019 actuals include Base plus OCO**FY 2020 enacted includes $76 million OCO funds***FY 2021 reflects the President’s Budget request, includes $29 million OCO funds

Numbers may not add due to rounding

SPACE AND SPACE-BASED SYSTEMSThe FY 2021 budget request for space and“The Department will prioritize
space-based
systems
addresses
Satellite
investments in resilience,
Communications (SATCOM); Overhead Persistentreconstitution, and operations
Infrared(OPIR)
capabilities;
Positioning,
Navigation, and Timing (PNT); and Space Launch
to assure our spacesystems. The Department continues to sustain
capabilities.”
existing systems, while moving out on development-National Defense Strategy
of follow-on capabilities supporting operations in acontested space environment. The simultaneous actions of sustaining and modernizing these
critical space capabilities reflect the Department’s emphasis on increasing the capacity andlethality of the Joint Force.
The Space Force will continue the production of Space Based Infrared Systems (SBIRS) Space
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Vehicle 6 is to launch in 2020 and investment continues for the rapid prototyping of the payload
for the follow-on system, Evolved Strategic SATCOM (ESS), to meet military SATCOM(MILSATCOM) needs in the FY 2021 budget. Resiliency improvements are being incorporated
into the production line for SBIRS Space Vehicles 5 and 6 and AEHF Space Vehicle 6.
The FY 2021 budget request continues the Next-Generation Overhead Persistent Infrared(NG OPIR) strategic missile warning system as part of a transition to the future OPIR architecture.
The Next-Generation system incorporates mature resiliency features to increase strategic
survivability in a contested environment. Additionally, the Space Force will incorporate atechnology refresh of the sensor to assure missile warning capabilities equal to or greater than
today’s SBIRS, taking advantage of sensor technology improvements.
The FY 2021 budget request continues resiliency improvements in the PNT mission, incorporating
Regional Military Protection capability into the next generation Global Positioning System(GPS) III constellation. This enhancement assures PNT capabilities in contested environments
and for disadvantaged users. The request also funds improvements to the GPS ground segment
to enable implementation of advanced Militarycode (M-Code), which improves the anti-jammingand secure access of the military GPS signals incontested environments.
The National Security Space Launch (NSSL),
formerly the Evolved Expendable Launch Vehicle(EELV), program has been aligned with satellite
launch schedules in FY 2020 and FY 2021 andcontinues to pursue a public private partnershipapproach for future launch service acquisitions.
The Space Force strategy is to ensure theexistence of two commercially-viable, domestically sourced space launch service providers withthe requirement of also eliminating the use of foreign-made propulsion systems.

CYBERSPACE ACTIVITIESThe Department Cyber Strategy identifies five cyberspace objectives that must be met to
implement the NDS:
1. Ensuring the Joint Force can achieve
its missions in a contested cyberspacedomain.
2. Enhancing Joint Force militaryadvantages through the integration of
cyber capabilities into planning andoperations.
3. Deterring, preempting, or defeating
malicious cyber activity targeting U.S.
critical infrastructure that is likely tocause a significant cyber incident.
4. Securing DoD information and systems,
including on non-DoD-owned networks, against cyber espionage and malicious cyber
activity.
5. Expanding DoD cyber cooperation with allies, partners, and private sector entities.

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The FY 2021 Cyberspace Activities budget ($9.8 billion) continues to build on the goals laid out
in the Digital Modernization Strategy (DMS); Innovate for Competitive Advantage, Optimize for
Efficiencies and Improve Capability, Evolve Cybersecurity for Agile and Resilient Defense
Posture, and Cultivate Talent for a Ready Digital Force. The budget has been optimized to support
the implementation of the Cyber Strategy by funding programs and activities that advancecybersecurity, cyberspace operations, and advanced cyber research and development activities:
A. The $5.4 billion Cybersecurity budget for FY 2021 builds on the important initiatives
established in FY 2020 and provides for increased capabilities in Cross Domain Solutions,
Next-Generation Encryption Solutions, and Network Modernizations. The DoD is building
more agile, effective, and efficient capabilities that provide cyber resilient platforms fromwhich to execute missions by:•

Driving cryptology modernization and deployment for the next generation of
mission systems and platforms (FY 2021, $678.8 million)•

Securing points of information sharing across multiple security domains to ensure
confidentiality, integrity, and availability of cross domain systems and theinformation transiting those domains (FY 2021, $296.2 million)•

Operationalizing Identity and Credential Access Management (ICAM)
modernization efforts to align with and utilize emerging technology andarchitectures (FY 2021, $198.5 million)•

Operationalizing endpoint management through Comply to Connect (C2C) and
Automated Continuous Endpoint Monitoring (ACEM) (FY 2021, $67.2 million)•

Focusing on critical infrastructure vulnerabilities and bolstering efforts between the
defense activities and the Defense Industrial Base (DIB) for more effective
execution of risk remediation activities (FY 2021, $69.8 million)

B. The FY 2021 Cyber Operations budget ($3.8 billion) supports the implementation of the
Cyber Strategy by funding programs and activities that advance:•

Cooperation with allies and partners in the conduct of “hunt forward” defensive
cyberspace operations to counter malign cyber actors (FY 2021, $431.6 million)•

The development of capabilities to integrate joint, coalition and inter-agency
commandandcontroltoenhancemulti-domain
operations(FY 2021, $238.6 million)•

DoD mission assurance activities that allow the Department to better understandthe risks to its key missions and to increase resilience and implement mitigations
to reduce the vulnerability of key assets (FY 2021, $460.4 million)

The Cyber Operations budget includes $2.2 billion to continue support for Cyber Mission
Forces (CMF). The Department is simultaneously enhancing the ability of its cyber forces
to carry out missions in cyberspace and fielding 133 CMF teams composed of:•

13 National Mission Teams to defend the United States and its interests against
cyberattacks of significant consequence•

68 Cyber Protection Teams to defend priority DoD networks and systems against
priority threats

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Overview – FY 2021 Defense Budget•

27 Combat Mission Teams to provide support to Combatant Commands bygenerating integrated cyberspace effects in support of operational plans andcontingency operations•

25 Support Teams to provide analytic and planning support to National Mission
and Combat Mission teams

The Cyber Mission Force (CMF) is the operational arm of U.S. Cyber Command(USCYBERCOM), and its teams execute the Command’s mission to direct, synchronize
and coordinate cyberspace operations in defense of the nation’s interests.
USCYBERCOM and the Services share the responsibility for training and equipping the
Cyber Mission Force. USCYBERCOM procures Joint Access Platforms, Joint Tools, Joint
Analytics, and Joint Common Services, that will support CMF operations across theServices. The Services equip the CMF through materiel solution analyses, prototyping,
and the acquisition of cyber capabilities. The U.S. Army is the DoD Executive Agent for
the Cyber Training Ranges and the acquisition lead for Persistent Cyber Training
Environment (PCTE). The Air Force is the DoD Executive Agent for the Unified Platform
and Joint Cyber Command and Control.
Military operations in cyberspace provide U.S. cyber forces with operational experience
as well as insights into capability and training requirements. The Department also
continues to make significant investments in dual-use cyber ranges with the flexibility tosupport both CMF training and the evaluation of Information Technology, control systems,
and weapon systems.
C. The FY 2021 Cyberspace Activities budget includes resources for advanced cyber related
research and development activities ($0.6 billion). These resources support theimplementation of the Cyber Strategy by funding programs and activities that advance:•

Defensive Cyberspace Operations•

Defense of DoD Information Network (DoDIN) operations•

Offensive Cyberspace Operations•

Operation and sustainment of cyber ranges

Ensuring successful cyber mission support to the DoD and its mission
partners even in the face of sophisticated cyber adversaries.
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CHAPTER 4

ENHANCING LETHALITY
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5. BUILDING THE SPACE FORCE“The Space Force will organize, equip, and train the next generation of warriors
to deter aggression and defend the nation, our allies, and American interests
against hostile actions in…space.”- President Donald J. Trump

Space is fundamental to U.S. prosperity and national
security. The United States has harnessed the potentialof space-based capabilities, enabling the American way
of life and greatly expanding the capability and capacityof the U.S. military to anticipate threats, to respondrapidly to crises, and to project power globally.
Unfettered access to and freedom to operate in space
is a vital national interest.

Sections•

United States Space Force•Fiscal Year 2021 Budget•

Transitional Budget andResource Plan

With the support of Congress, the DoD is reforming the organization of our military spaceenterprise to protect American interests in space. We will move deliberately and with alacrity.
Our urgency is driven by our strategy – the National Defense Strategy has made competition with
China and Russia the principal priority of the Department, with space a key domain of strategiccompetition. Furthermore, the National Strategy for Space reinforces the need to strengthen ourresilience, deterrence, and warfighting options in space. Guided by these documents, the U.S.
Space Force will deter adversary attacks on the United States and its space capabilities; assure
the use of essential space capabilities by friendly forces across all phases of conflict while denying
their hostile use by our adversaries and demonstrate U.S. leadership and resolve in maintaining
stability in the space domain. The changes DoD is making to its space enterprise will
institutionalize American commitment to the space domain, guard the economic benefits spaceprovides, protect U.S. freedom of operation in space, and provide a foundation for the growth of
the space economy over the coming decades.

UNITED STATES SPACE FORCEThe Fiscal Year 2020 National Defense Authorization Act(FY 2020 NDAA), enacted on December 20, 2019, established the
U.S. Space Force as a separate branch of the Armed Forces within
the Department of the Air Force. According to statute, the Secretaryof the Air Force is responsible for organizing, training, and equipping
two separate and distinct Military Services: the U.S. Space Force andthe U.S. Air Force. A uniformed 4-star Chief of Space Operations(CSO) will be granted equal membership on the Joint Chiefs of Staff(JCS) one year from enactment of the FY 2020 NDAA and will serveas the JCS expert on and advocate for space power.
The U.S. Space Force will organize, train, and equip military space forces of the United States toprovide: freedom of operation in, from, and to the space domain; and prompt and sustained space
operations. The U.S. Space Force will include both combat and space-focused combat-support
functions to enable prompt and sustained offensive and defensive space operations and joint
operations in all domains. The U.S. Space Force will continue to rely on the U.S. Air Force forfoundational and infrastructure support, except in performing those functions unique to the spacedomain or central to its independence, in order to avoid duplication of effort and bureaucratic
growth of staff and organization.
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BUILDING THE SPACE FORCE
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Investing in the U.S. Space Force will allow the Department to build a new Military Service capableof deterring aggression, providing freedom of operations, and enabling the joint warfighter.
Legally establishing the U.S. Space Force does not guarantee the United States preeminence inthe space domain—the Nation must commit sufficient and appropriate resources to properly
accomplish its assigned responsibilities. These investments will provide for freedom of operationsin space, strengthen the mission assurance of capabilities to support U.S. and allied forces in all
domains, as well as protecting these forces against potential adversaries’ space-enabledcapabilities.
The ability to deliver space capabilities that ensure unimpeded freedom of operation for the Joint
Force is enabled by a dedicated, highly-capable, and properly trained and educated workforce.
Like every other domain of warfare, the U.S. Space Force is developing a dedicated cadre thatboth explores new concepts for warfare and adapts existing models from other warfighting
domains. The U.S. Space Force will invest in developing space power doctrine; space educationand training; space concepts of operations; space tactics, techniques, and procedures; space
intelligence; and space personnel management.

FISCAL YEAR 2021 BUDGETAs shown in Figure 5.1, the FY 2021 budget transfers over $15 billion from the U.S. Air Force tothe U.S. Space Force. The transfer includes: space-related Weapon Systems and Operations,Weapon System Sustainment/Central Asset Management, Major Command (MAJCOM) Support,
Education and Training, Space-Related Air Force Elements, and Space-Related Headquarters.
In addition, space-related classified funding will transfer from the Air Force Rapid Capabilities
Office, the Space Rapid Capabilities Office, and other Air Force organizations. The civilian
personnel costs associated with these programs will also transfer from the U.S. Air Force to the
U.S. Space Force, and military personnel costs will follow once an integrated pay and personnel
system is established. Of note, funding related to the National Reconnaisance Office will nottransfer into the U.S. Space Force.
The U.S. Space Force budget includes resources to build the headquarters and field centers for
doctrine development, warfare, intelligence, professional military education, test, and personnel(see Figure 5.2). The headquarters and field centers will be effective and efficient by resourcing
personnel through transfers and limited growth. Personnel levels within the headquarters andfield centers are expected to reach 553 in FY 2021 and increase to approximately 1,800 by
FY 2025.
Figure 5.1. FY 2021 Budget Overview (Base and OCO)
U.S. Space Force Funding ($ in millions)Operation & Maintenance
Procurement

FY 2020*

FY 202140.0--

Research, Development, Test & Evaluation--

TOTAL Funding

40.0

U.S. Space Force Personnel

FY 2020*

Civilian Full-Time Equivalents (FTE)
Military End Strength (E/S)
TOTAL Personnel

122
38
160

2,608.4
2,446.1
10,327.6
15,382.1
FY 2021
3,545
6,434
9,979

* FY 2020 Enacted. FY 2020 personnel numbers exclude an additional 40 detailees.

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BUILDING THE SPACE FORCE
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Overview – FY 2021 Defense Budget
Figure 5.2. FY 2021 Budget – U.S. Space Force Headquarters and Field Centers
USSF Headquarters and Field Centers Funding ($ in
FY 2020*
millions)
Operation & Maintenance
40.0
USSF Headquarters and Field Centers Personnel
Civilian Full-Time Equivalents (FTE)
Military End Strength (E/S)
TOTAL Personnel

FY 2020*
122
38
160

FY 2021111.1
FY 2021
209
334
553

* FY 2020 Enacted. FY 2020 personnel numbers exclude an additional 40 detailees.

TRANSITIONAL BUDGET AND RESOURCE PLAN
The U.S. Space Force stand-up, which began in FY 2020, will continue through FY 2025. Most
personnel who were previously assigned to Air Force Space Command, a former Major Commandwithin the U.S. Air Force, are now assigned to the U.S. Space Force to perform its missions.
“Assignment” to the U.S. Space Force is similar to U.S. Air Force members being “assigned” toCombatant Commands or U.S. Army members being “assigned” to the Joint Staff. The term“assignment” denotes a temporary association to a specific unit or organization.
Over the next year, the Department will finalize the process by which personnel will be formallyand permanently “transferred” into the U.S. Space Force. Transfer describes the process
whereby a military member is “sworn into” a different branch of Service. Enlisted members takea new Oath of Enlistment, and Officers are provided a new Commission. The DoD intends toformally transfer only space mission-focused forces, which will include space operations,
intelligence, engineering, acquisition, science, and cyber/communications.
To efficiently and holistically manage DoD space forces, the Department’s vision remains toconsolidate the preponderance of space missions, units, resources, and personnel from theexisting Military Services into the new U.S. Space Force. Transfers are critical to unifying today’s
disparate space-related research, development, acquisition, fielding, and operations into a single
organization led by a single leader. Failing to consolidate the preponderance of military space
activities and capabilities from across the DoD will fail to leverage the historic opportunity theestablishment of the U.S. Space Force as a separate Military Service provides.
If authorized by Congress, the Secretary of Defense, in consultation with each Military Department
Secretary and Military Service Chief, will determine the specific U.S. Army, U.S. Navy, and other
DoD space missions and units (with associated resources and personnel) that will transfer into
the U.S. Space Force in FY 2022. The Space Development Agency will also transfer into the
U.S. Space Force in order to consolidate space acquisition under a single military leader andService Acquisition Executive.
The Department’s goal is to transfer the necessary space-related missions, units, resources, andpersonnel into the U.S. Space Force no later than FY 2022, consistent with law. Transferring
units may be realigned, established, or re-designated to ensure existing and future forces are
effectively organized to execute space missions. Missions, units, resources, and personnel willbe transferred in a manner that minimizes disruption to current missions and acquisition programs
and avoids adverse impact to military and civilian personnel. Current U.S. Air Force installations
with a preponderance of space activities may also be renamed as U.S. Space Force installations.
In the immediate future, these name changes will not affect the base operating support andfinancial management relationships between the U.S. Space Force and the U.S. Air Force.

CHAPTER 5

BUILDING THE SPACE FORCE
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Overview – FY 2021 Defense Budget
Finally, the Department is committed to an approach that minimizes bureaucratic growth.
Separate from bureaucracy, the Department anticipates that there will be a realignment inpersonnel and resouces devoted to space operations and programs for new missions andcapabilities that are required for a warfighting domain. This realignment will be reflected in futurebudget submissions.
Conclusion
DoD space organization and management reforms are underway to address challenges to U.S.
advantages in space. The DoD is executing a comprehensive plan to continue transferring
applicable resources and personnel to the U.S. Space Force through 2025. The Department
stands ready to update the Congress on each major step of these activities.

CHAPTER 5

BUILDING THE SPACE FORCE
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Overview – FY 2021 Defense Budget

6. OVERSEAS CONTINGENCY OPERATIONS (OCO)
The Fiscal Year (FY) 2021 Budget requests
Sections$69.0 billion for Overseas Contingency Operations(OCO). This request focuses on continued military • OCO Categories
operations in the Middle East and South Asia,
efforts to deter Russian aggression, and global • Current Operations
counterterrorism operations. It includes OCO
funding for base requirements, in support of the • OCO Functional/Mission Category
National Defense Strategy, which are compliant
with current legislative caps. Figure 6.1 displays requested OCO funding by category: direct war,
enduring requirements, and OCO for base requirements.
The request supports the following activities:• Executing
DoD’scounterterrorism and train, advise, assist
missions in Afghanistan to support
the President’s South Asia strategy
as the Department of State works tonegotiate a settlement to the warthat safeguards national interests.

Figure 6.1. Overseas Contingency Operations (OCO)
and Emergency Funding by Operation/Activity($ in billions)•Sustaining personnel forward
deployed to the Middle East tocontinue operations to ensure an
enduring defeat of the Islamic Stateof Iraq and Syria (ISIS) and allow
flexibility to achieve U.S. national
security objectives.

Direct War
Requirements

24.6

20.5

-4.1

Enduring
Requirements

41.4

32.5

-8.9

OCO for Base
Requirements1/2

6.4

16.0

+9.6

Subtotal

72.4

69.0

-3.4

•

Prior-Year
Rescissions

-1.1

-

+1.1

Grand Total

71.3

69.0

-2.3

Continued development of the
Afghan National Army and National
Police to serve as an effective
security force that is able to counter
terrorism and insurgent threats aswell as a reliable partner to theUnited States.

•

Operation/Activity

FY 2020
EnactedFY 2021
RequestDelta
FY 2020–
FY 2021

Numbers may not add due to rounding
1/
The FY 2021 “OCO for Base Requirements” reflects the DoD basebudget requirements requested in the OCO budget in order to comply withthe base defense caps in current law.
2/
The $6.4 billion FY 2020 Enacted OCO for Base Requirements
reflect $4.9 billion in congressional appropriations for DoD-requested OCO
for Base Requirements plus congressional adds for National Guard andReserve Equipment ($1.3 billion) and the ISR Transfer Fund ($250 million).

Building the capacity of the Iraqi
Security Forces and vetted Syrian
opposition forces to counter ISIS in support of the United States’ comprehensive regional
strategy.

• Conducting U.S. Central Command in-country and in-theater support activities, including
intelligence support to military operations.
•

Enhancing U.S. deterrence activities in Eastern Europe to assure North Atlantic Treaty
Organization (NATO) allies and partners and deter aggressive actors.

•

Replenishing and replacing munitions used in combat and equipment destroyed,
damaged, or worn out due to use in contingency operations.

•Supporting National Defense Strategy priorities, with full transparency, by shifting funding
from the base budget to OCO.

CHAPTER 6

OVERSEAS CONTINGENCY OPERATIONS
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Overview – FY 2021 Defense Budget

OCO CATEGORIESThe FY 2021 OCO request is divided into three requirement categories – direct war, enduring,and OCO for base.
Direct War Requirements ($20.5 billion) – Reflects combat or combat support costs that are notexpected to continue once combat operations end at major contingency locations. Includes incountry war support for Operation FREEDOM’S SENTINEL (OFS) in Afghanistan and Operation
INHERENT RESOLVE (OIR) in Iraq and Syria. Includes partnership programs such as theAfghanistan Security Forces Fund (ASFF), the Counter-ISIS Train and Equip Fund (CTEF), andthe Coalition Support Fund (CSF).
OCO for Enduring Requirements ($32.5 billion) – Reflects enduring in-theater and CONUS costs
that will remain after combat operations end. These costs, historically funded in OCO, include
overseas basing, depot maintenance, ship operations, and weapons system sustainment. It also
includes the European Deterrence Initiative (EDI), the Ukraine Security Assistance Initiative(USAI), and Security Cooperation.
Combined, enduring requirements and direct war
requirements comprise “traditional” OCO.
OCO for Base Requirements ($16.0 billion) – Reflects funding for base budget requirements,
which support the NDS in accordance with the budgetary caps established in the Bipartisan
Budget Act of 2019 (BBA).

CURRENT OPERATIONSThe FY 2021 OCO budget request funds military presence in Afghanistan in support of Operation
FREEDOM’S SENTINEL (OFS) as well as in Iraq and Syria in support of Operation INHERENTRESOLVE (OIR). The OCO budget also funds CENTCOM in-theater presence supporting both
CENTCOM operations and additional support from the Continental United States (CONUS).
In Afghanistan, the Department continues to execute its dual missions of conducting
counterterrorism (CT) operations and training, advising, and assisting (TAA) the Afghan National
Defense and Security Forces (ANDSF) while diplomats work to negotiate a settlement thatsafeguards national interests. The budget assumes a drawdown of forces which will be
determined by capabilities required. The Department will work with Congress on any budget
adjustments as decisions are finalized.
In Iraq and Syria, the liberation of territory from ISIS shifts the Department’s focus to ensuring that
regional partner forces can prevent the reemergence of ISIS. Working by, with, and through Iraqi
and Syrian partners, the Department is helping to provide wide-area security in liberated areas,addressing the ongoing ISIS threat, preventing ISIS reemergence, and setting conditions for longterm stability.
The budget request provides flexibility for the Secretary of Defense and Geographic CombatantCommanders (GCC) to continue military operations while future plans are developed andimplemented.
Figure 6.2 displays the force levels assumed in the Department’s FY 2021 OCO budget,
expressed as annual average troop strength.

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OVERSEAS CONTINGENCY OPERATIONS
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Overview – FY 2021 Defense Budget
Figure 6.2. U.S. Force Level Assumptions in DoD OCO Budget(Average Annual Troop Strength)
FY 2019 Actual

FY 2020 PB Request

FY 2021 PB Request1

99,17887,822

91,233

Total Force Levels

1/ FY 2021 includes Temporary Enabling Force (TEF) support for Afghanistan/Iraq/Syria

The FY 2021 OCO budget request reflects a $2.3 billion decrease from the FY 2020 OCO
enacted level of $71.3 billion to account for projected OFS, OIR, and In-Theater Support
requirements. Figure 6.3 shows the trends in OCO funding.
Figure 6.3 OCO Funding Trends

Trends in OCO Funding200($ in Billions)
$163

$159

150

100

101

$115
114

$85
$63

105

50
62
0

$82

79

84

45
10

FY10

2

FY11

FY12

3
FY13

1
FY14

54
5
FY15

$59
8
2
44
5
FY16

$82

$83

18
4

17
6

46

47

$69
2
7

$71
5
6

45

36
17
7

14

13

14

FY17

FY18

FY19

$69
16
5

28
14
7

FY20
FY 21
Enacted Request

The total OCO funding has not declined at the same rate as the in-country troop strength due tothe fixed, and often inelastic, costs of infrastructure, support requirements, and in-theater
presence to support contingency operations. These support costs, further categorized in Figure
6.4 include:• In-theater support, which includes infrastructure costs like command, control,
communications, computers, and intelligence (C4I) and base operations for U.S. Central
Command (USCENTCOM) locations.
• Combat support such as intelligence, surveillance, and reconnaissance (ISR) assets
which remains high as these systems are used to enhance force protection.
• Equipment reset, which significantly lags troop level changes, procurement ofcontingency-focused assets like munitions, remotely piloted aircraft, and force protection
capabilities support operations that may not be linked directly to in-country boots on the
ground.
• International programs and deterrence activities, which are linked to U.S. engagement incontingency operations and support U.S. interests but are not directly proportional to U.S.
troop presence.

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OVERSEAS CONTINGENCY OPERATIONS
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Overview – FY 2021 Defense Budget

OCO FUNCTIONAL/MISSION CATEGORY
Funding in the FY 2021 OCO budget request is captured by operational support category in
Figure 6.4, followed by brief explanations of select activities.
Figure 6.4. OCO Functional/Mission Category($ in billions)Delta
FY 2021
FY 2020
Request
to FY
2021
13.4
-1.0

FY 2019
EnactedFY 2020
EnactedOperations/Force Protection

14.5

14.4

In-Theater Support

19.5

19.5

16.2

-3.3

Counter and Deter Threat Network / DTRA

0.5

0.5

0.3

-0.2

Equipment Reset and Readiness

8.6

8.7

7.6

-1.1

Classified Programs

9.9

10.3

5.1

-5.2

Afghanistan Security Forces Fund (ASFF)

4.9

4.2

4.0

-0.2

Support for Coalition Forces

1.0

0.4

0.4

-

Counter-ISIS Train and Equip Fund (CTEF)

1.4

1.2

0.9

-0.3

Security Cooperation

0.8

0.8

0.6

-0.2

European Deterrence Initiative (EDI)

6.5

6.0

4.5

-1.5

Subtotal

67.6

66.0

53.0

-13.0

OCO for Base Requirements

2.5

6.4

16.0

+9.6

Prior-Year Rescissions

-1.3

-1.1

-

+1.1

Total

68.8

71.3

69.0

-2.3

OCO Budget

1/

Numbers may not add due to rounding
1/ The $6.4 billion FY 2020 Enacted OCO for Base Requirements reflect $4.9 billion in congressional appropriations for
DoD-requested OCO for Base Requirements plus congressional adds for National Guard and Reserve Equipment ($1.3 billion) andthe ISR Transfer Fund ($250 million).

Operations/Force Protection ($13.4 billion): This category of incremental cost includes the full
spectrum of military operations requirements for U.S. personnel operating in Afghanistan, Iraq,
and Syria such as:•

Personnel special pays and subsistence for deployed forces;•

Personnel pay for mobilized forces;•

Operating tempo (ground vehicles/equipment, combat aviation, Special Operations
Forces);•Communications;•Pre-deployment training;•

Transportation cost to sustain and support the forces, including the retrograde of
U.S. equipment from Afghanistan;•

Various classes of supplies;•

Deployment and redeployment of combat and support forces;•

Life support and sustainment;•

Additional body armor and personal protective gear; and,CHAPTER 6

OVERSEAS CONTINGENCY OPERATIONS
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Overview – FY 2021 Defense Budget•

Commanders’ Emergency Response Program (CERP) ($2.5 million). The CERP is used
exclusively by commanders in Afghanistan to fund small-scale projects within theirrespective areas of responsibility to address urgent humanitarian relief or reconstruction
requirements that provide a direct and immediate benefit to the Afghan population.

In-Theater Support ($16.2 billion): Funds requested in this category provide for critical combat
and other support for personnel in Afghanistan, Iraq, and Syria that comes from units and forces
operating outside Afghanistan, Iraq and Syria. This category also includes funding to support
other operations conducted outside Afghanistan, Iraq, and Syria.
The types of cost incurred for in-theater operations are similar to those outlined in the“Operations/Force Protection” category. However, this category also includes incremental costs
for afloat and air expeditionary forces, engineers, fire support, and other capabilities locatedelsewhere that support operations in Afghanistan, Iraq, Syria, and other important missions. It
also includes support for some activities operating from the United States (such as remotely
piloted aircraft and reach back intelligence, surveillance, and reconnaissance (ISR) capabilities).
Additional in-theater programs include:•

Office of Security Cooperation — Iraq (OSC-I) ($44 million): This program is DoD’s
cornerstone for achieving the long-term U.S. goal of building partnership capacity in the
Iraqi Security Forces (ISF). The OSC-I conducts the full range of traditional security
cooperation activities such as joint exercise planning, combined arms training, conflict
resolution, multilateral peace operations, senior level visits, and other forms of bilateralengagement. This is a unique and separate mission from Counter-ISIS focused train andequip operations

Counter and Deter Threat Network ($0.3 billion): The requested funds enable the Defense
Threat Reduction Agency (DTRA) to counter Chinese, Russian, Iranian, North Korean and their
proxy threat networks while maintaining pressure on Violent Extremist Organizations (VEOs).
DTRA’s counter threat network capabilities provide analytic support to Combatant Commands,
deployed Warfighters, coalition partners and allies to enable enhanced understanding andcoordinated operations, actions, and investments targeted to strategic outcomes against nation
state, proxy, and VEO threats networks in conflict and in competition.
Equipment Reset and Readiness ($7.6 billion): The request funds the replenishment,
replacement, and repair of equipment and munitions expended, destroyed, damaged, or worn out
due to prolonged use in combat operations. The major items that will be repaired or replaced
include unmanned aerial vehicles, helicopters, tactical vehicles, and various combat support
equipment. The FY 2021 OCO budget funds the replenishment of rockets, missiles, andconventional ammunition including Hellfire, Guided Multiple Launch Rocket System, Small
Diameter Bomb (SDB), Joint Direct Attack Munition (JDAM), and Joint Air-to- Surface Standoff
Missile (JASSM). Upon returning from war zones, units restore their equipment to a condition
that enables them to conduct training exercises, achieve required readiness levels, and prepare
for future deployments. As personnel and equipment return from theater to their home stations,the need for equipment reset will continue.
Classified Programs ($5.1 billion): The request funds $5.1 billion for classified programs.
Afghanistan Security Forces Fund (ASFF) ($4.0 billion): This request funds the sustainment,
infrastructure, equipment, and training requirements for up to approximately 347,000 members of
the Afghan National Army and National Police. The request supports further development of the
ANDSF as an effective and sustainable force to combat a resilient insurgency and as a reliablecounterterrorism partner with the United States. This request continues the Afghanistan Aviation

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Overview – FY 2021 Defense Budget
Modernization program, to include addition of medium-lift helicopters to support the Special
Mission Wing.
Support for Coalition Forces ($0.4 billion): Amounts requested to finance coalition, friendly
forces, and a variety of support requirements for key foreign partners who wish to participate in
U.S. military operations but lack financial means. Such support reduces the burden on U.S. forces
and is critical to overall mission success. The FY 2021 budget request for support for coalition
forces includes $180 million for the Coalition Support Fund (CSF) and $250 million for the Lift andSustain program. The FY 2021 CSF request of $180 million reflects a $45 million (20 percent)decrease from the FY 2020 enacted level of $225 million due to the continuing suspension of U.S.
security assistance to Pakistan based on the President’s January 4, 2018, guidance. The
FY 2021 Lift and Sustain request of $250 million reflects a $100 million (67 percent) increase fromthe FY 2020 enacted level of $150 million due to anticipated increases in coalition troops
participating in U.S. military operations in Afghanistan, Iraq, and Syria.
Counter-ISIS Train and Equip Fund (CTEF) ($0.9 billion): The U.S. Government’s strategy tocounter ISIS directed DoD to conduct a campaign to degrade, dismantle, and ultimately defeat
ISIS. The focus of DoD’s efforts is to work “by, with, and through” the Government of Iraq’s
Security Forces and Vetted Syrian Opposition (VSO) forces to build key security force capabilities
and promote longer term regional stability. The FY 2021 CTEF budget request strengthens the
security capabilities of DoD partners countering ISIS to secure territory liberated from ISIS andcounter future ISIS threats by training and equipping partner security forces. The training,equipment, and operational support in this request will secure territory previously held by ISISand prevent its reemergence. The $845 million request includes $645 million to assist the Iraqi
Security Forces and $200 million to assist the VSO forces.
Security Cooperation ($0.6 billion): Security Cooperation (SC) funding and authorities enable
the United States’ ability to assist partner nations in counterterrorism (CT), crisis response andother transnational threats, as well as operations that promote U.S. interests. Security cooperation
funding enhances the United States’ ability to assist partner nations in counterterrorism (CT),crisis response, and addressing other transnational threats. The NDS Implementation (NDS-I)
account, previously the Security Cooperation account, serves as a vital tool in strategiccompetition, countering transnational threats, and preparing allies and partners to operate in lieu
of, or in coalition with, U.S. forces. Activities funded through the NDS-I account primarily assist
GCCs efforts pursuant to Section 333 of Chapter 16, 10 U.S. Code to buildpartner capacity withallied and partner nation security forces. Such activities enable training with foreign forces,
support for operations and capacity building, as well as educational, equipping, and training
activities between the DoD and national security forces. This funding resource assists the GCCs
to conduct CT and border security capacity activities in their individual areas of responsibility.
Beginning in FY 2021, OCO funding for the Ministry of Defense Advisors Program (Afghanistan)will be requested as part of the NDS-I account.
European Deterrence Initiative ($4.5 billion): The FY 2021 budget request continues toposition the right capabilities in key locations throughout Europe in order to deter adversarial
threats in a timely manner. The FY 2021 budget request of $4.5 billion for EDI supports rotational
force deployments and the phased implementation of the multi-year activities funded in previous
budgets. The FY 2021 EDI budget request includes $250 million for the Ukraine Security
Assistance Initiative (USAI) to provide assistance and support to the military and national security
forces of Ukraine, and for replacement of any weapons or defensive articles provided to theGovernment of Ukraine from the inventory of the United States. EDI funding is requested in theapplicable Component accounts.
The Department continues to execute the following lines of effort to accomplish EDI objectives:
CHAPTER 6

OVERSEAS CONTINGENCY OPERATIONS
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Overview – FY 2021 Defense Budget•

Increased U.S. military presence in Europe;•

Additional exercises and training with allies and partners;•

Enhanced prepositioning of U.S. equipment in Europe;•

Improved infrastructure for greater readiness; and,•

Building allied and partner capacity.

OCO for Base Requirements ($16.0 billion): The FY 2021 OCO budget request includes$16.0 billion to pay for base budget requirements, in support of the National Defense Strategy,
for defense readiness. These base budget requirements are funded in the OCO budget due tobudget caps enacted in the BBA of 2019. These activities include ground operations, depot
equipment purchase and maintenance, contractor logistics support, and ship operations.

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Overview – FY 2021 Defense Budget

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7. THE DEPARTMENT OF DEFENSE AUDITThe biggest benefits of audit come from the findings, which help us identify
vulnerabilities in cybersecurity, improve inventory management, and provide
better data for decision makers.
The Department of Defense Audit
The financial statement annual audit regimen isfoundational to reforming the Department's businesspractices and directly supports the National Defense
Strategy. Data from the audits is driving the Department’s
strategy, goals, and priorities and enabling leaders to focus
on areas that yield the most value to the warfighter. The
audits are already proving invaluable and have thepotential to support long-term, sustainable reform thatshould lead to improved efficiency, better buying power,
and increased public confidence in DoD’s stewardship offunds.

Sections•

The DoD Consolidated Audit
Strategy•

Audit Remediation•

Budget•Data Analytics

During an annual financial statement audit, an independent public accounting (IPA) firm or the
DoD Office of Inspector General (DoD OIG) examines the Department’s books and records.
Results of these audits give DoD management independent validation and feedback on theeffectiveness of each reporting entity’s ability to capture, record, and report financial activity. Audit
results also give Department leaders visibility into the counts, locations, and conditions of DoD
assets (i.e., property, inventory, munitions, etc.). This relates directly to readiness and ensuringthat programming, budgeting, and investment decisions are well informed.
For years, the Department has received a
disclaimer of opinion on the DoD-wide
financial statements from the DoD OIG.
These disclaimers were not based on
independent audit testing. The annualcomprehensive
DoD-wide
financialstatement audit regimen beginning in
FY 2018 has changed this. The DoD
consolidated financial audit will continue
year after year and provides independent,
actionable feedback.
The DoD owes
accountability and transparency to theAmerican people, as the taxpayers deservea level of confidence that DoD’s financial
statements present a true and accurate
picture of its financial condition and-Deputy Secretary of Defense
David L. Norquist, November 2019
operations. Transparency, accountability,
and insights that inform business process
reform are some of the benefits the Department will receive from the financial statement audit
even before the Department achieves an overall positive opinion.

“The Department of Defense is one of
the most complex enterprises in theworld. In partnership with Congress, wemust continually improve our businesspractices in order to reduce costs andmaintain our competitive edge. Each ofus owes it to the American taxpayers tobe as responsible in spending theirmoney as they were in earning it. As weundertake these financial audits insupport of the National Defense
Strategy, we will strive to make that anenduring legacy of this Administration.”

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Overview – FY 2021 Defense Budget

THE DEPARTMENT OF DEFENSE CONSOLIDATED AUDIT STRATEGYThe DoD consolidated audit assesses all four financial statements and includes activity for both
General Funds and Working Capital Funds. The FY 2019 audit covered the Department’s total
assets of more than $2.9 trillion and involved more than 1,400 auditors, who conducted over 600
site visits. Auditor findings and recommendations help DoD leaders prioritize improvements, drive
efficiencies, identify issues with systems, measure progress, and inform business reform efforts.
The outcomes of the audit remediation efforts will include greater financial data integrity, bettersupport for the warfighter, and increased transparency for Congress and the American people.
Independent Public Accountants (IPAs) conducted 24 standalone audits of DoD reporting entities.
The DoD OIG oversaw IPAs and issued the overarching consolidated audit opinion. In FY 2019,seven reporting entities are expected to receive unmodified (clean) opinions, including the DoD
OIG, which is still pending; and one received a qualified (modified) opinion.
All other DoD reporting entities received a disclaimer of opinion. A disclaimer of opinion means
the auditor was unable to obtain sufficient audit evidence on which to base an opinion on thefinancial statements. These results are not unexpected; consistent with the experience of otherlarge Federal agencies, a disclaimer of opinion is not unusual as auditors must become familiar
with complex processes and their findings drive corrective actions that may require additional
time.
Figure 7.1. DoD Consolidated Audit Structure
DoD-Wide Consolidated Audit Performed by DoD Office of Inspector General (DoD OIG)
Included in the Consolidated Audit
5% Budget, 3% Assets

Stand-Alone Audits
95% Budget, 97% Assets
DoD OIG (as the Consolidated Auditor) considers the opinions of each Component
auditor (performed by an independent public accounting firm) in forming its opinion.

Army
General Fund

Navy
General Fund

Air Force
General Fund

Military
Retirement FundDoD Components not undergoing stand-alone audits areincluded in the consolidated audit.
DoD OIG performs internal controls and substantive testingover activities and balances.
WHS
DCMA

Army
Working Capital
Fund

U.S. Marine
Corps General
Fund

Air Force
Working Capital
Fund

Medicare-Eligible
Retiree HealthCare Fund

U.S. Army Corpsof Engineers –Civil Works

Navy
Working Capital
Fund

Defense Health
ProgramDefenseCommissary
AgencyDLA
General FundDoD Classified

DHA-CRM

DLA
Working Capital
Fund

USSOCOM

DLA
Strategic
Materials

USTRANSCOM

Unmodified

MDA
DTRA

DSCA

DoDEA

DARPA

CBDP

JCS
(incl. NDU)

DHRA

DAU

DSS

DTIC

OEA

DMA

DOTE

DPAA

DTSA

DFAS GF

MHPI

Other TI-97 Funds
Provided to Army
by OSD

Other TI-97 Funds
Provided to Navyby OSD

Other TI-97 Funds
Provided to Air Forceby OSD

DFAS
Working Capital
Fund

Burden Sharing
Account by Foreign
Allies, Defense

Support for U.S.
Relocation to Guam
Activities, Defense

Host Nation Support
for U.S. Relocation
Activities, Defense

DISA
General Fund

Defense Contract
Audit Agency

DoD Education
Benefits Fund

Emergency
Response
Fund,
DefenseHomeowners
Assistance Fund,
DefenseDefenseGift FundDISAWorking CapitalFund

DoD OIG

Voluntary
Separation
Incentive
Trust Fund

Mutually
Beneficial
Activities

DefenseCooperation
Account

National
Security
Education
Trust Fund

QualifiedDisclaimer

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Ongoing

THE DOD AUDIT
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Overview – FY 2021 Defense Budget

AUDIT REMEDIATIONThe number of auditor findings closed and material weaknesses downgraded from year to year
is an initial independent benchmark for measuring progress toward achieving an unmodified audit
opinion. During FY 2019, the Department effectively remediated over 25 percent of the Notices
of Findings and Recommendations (NFRs) issued during the FY 2018 audit, allowing auditors to
not re-issue those findings. In some cases, corrective actions were implemented in time for theauditors to validate their effectiveness in addressing the issues identified in the NFRs. The
Department anticipates NFRs closing at increased rates over time as the audit and related
remediation efforts mature. As the closings of these NFRs grow, the related material weaknesses(MWs) are expected to be downgraded or resolved as the effect of implemented corrective actions
continues to manifest.
Additionally, the Department measures audit progress by:•

Tracking the achievement of major milestones toward the remediation of complex NFRs;•

Assessing the quality of corrective action plan (CAP) preparation and implementation bycomparing them to those previously validated by the auditors as successfully addressing
NFRs;

•

Identifying areas where auditors are able to rely on internal controls and moving validated
CAPs into sustainment; and•Expanding the coverage of service provider process reviews in the form of Statement on
Standards for Attestation Engagements (SSAE) No. 18 examinations so that auditors canincreasingly rely upon System and Organizational Control (SOC) reports over service
providers.

Ultimately, the Department will track progress by the number of reporting entities moving fromdisclaimers of opinion to qualified opinions and from qualified opinions to unmodified opinions.
Progress of remediation will be closely tracked by management with the ultimate closure throughthe annual audit process when auditors confirm that an audit finding/condition is closed by not reissuing the finding. As part of the remediation process, the Department will focus on MWs thatare most impactful to the Department’s audit opinion. As MWs are resolved, audit opinions will
improve. Figure 7.2 provides a visual of how the annual audit feedback cycle works.

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Overview – FY 2021 Defense Budget
Figure 7.2. DoD’s Audit Feedback Cycle

Leadership has been actively engaged in overseeing the progress of CAPs. The Department
established functional councils that meet regularly to share best practices and collaborate on
solution development for NFRs that are DoD-wide issues. The Deputy Secretary of Defense
meets periodically with Military Department Under Secretaries and management to review audit
NFR and CAP metrics using the Advana NFR database. The NFR database uses near real-time
data, providing leadership with visibility into the current status of all NFRs and CAPs across the
Department.

BUDGET
For the initial years of audit, we anticipate spending nearly $1 billion annually with approximately
20 percent of these resources required to pay the independent auditors; 30 percent representing
the cost of supporting the audit to include responding to auditors’ request for information, and50 percent of total costs directed at remediating findings. While the cost of the audit is substantial,
it represents a small percentage of our total budgetary authority. The cost of supporting the audit
and those of remediation will decline as controls improve and as sustainable solutions (to include
systems changes) are put in place.
The benefits of this annual regimen cannot always be quantified, but it will result in long-termsavings in three areas:•

Increased enterprise visibility of property and financial information, which directly supports
improved readiness through better-informed resource allocation decisions.

•

Increased efficiency in terms of sustained pressure to reduce the number of systems andensure systems and processes comply with standards.

•

A regular annual regimen that helps ensure that things that are fixed—stay fixed.

An important but intangible benefit comes in the form of increased public confidence that will result
from positive audit opinions – first on individual component audits, and ultimately the consolidated
DoD statements.

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Overview – FY 2021 Defense Budget

DATA ANALYTICS
A valuable by-product of the audit is the ability to generate a consistent view of our enterprisefinancial transaction data. The increasing reliance upon Advana, the Comptroller’s advanced
data analytics platform, for audit sampling, supporting transaction details in response to auditor
requests, monitoring remediation activities, and inspiring data-driven conversation with
Components and other stakeholders will also allow for improved decision-making and better
informed budget execution.
Conclusion
The audit is about more than compliance and financial management. Qualitative changes are
happening every day that will, over time, result in real change in how the Department does
business. The tone-at-the-top is being echoed throughout the organization’s chain-of-command.
The workforce’s understanding of audit requirements continues to grow, and, as efficiencies are
gained, value is being realized. Systems are being made more reliable, and audits are providing
the tools needed to effect sustainable improvements. The audit is helping galvanize change that
advances cybersecurity, property management, inventory, and readiness—for the benefit of thewarfighter and the American people.

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8. REFORMING DEFENSEThe FY 2021 budget reforms the Department for greater performance andaccountability and ensures our resources are directed toward the highest
priorities.
The National Defense Strategy (NDS) directed the Department to reform business operations for
performance and affordability, gaining full value out of every taxpayer dollar spent on defense.
The Department has defined reform as an improvement of processes, systems, policies, andprocurement that increases effectiveness, efficiency, or reliability to best align the Department’s
resources with the NDS.
As noted by the NDS, the Department’s culture and processes must change if we are to prevailin strategic competition. Previous approaches, centered on exacting thoroughness andminimizing risk above all else, proved unresponsive and cost prohibitive.
The Secretary of Defense charged the Chief Management Officer (CMO) with leading enterprisebusiness reform and delivering optimized enterprise business operations to assure the successof the NDS. The business functions of the Department are inextricably linked to warfighting
capability, and the goal of reform is to establish a culture of continuous improvement focused on
results and accountability throughout the Department.
To achieve this mandate, the CMO established the Reform Management Group (RMG) in 2017
to manage and oversee business reform efforts. Through collective Defense Wide efforts, theDepartment saved over $6 billion in Fiscal Year 2019 and will achieve the $7.7 billion in savings
budgeted for in FY 2020.
In addition to the FY 2021 savings of $8.7 billion programmed in the FY 2020 cycle, the recent
Defense-Wide Reviews of the Fourth Estate identified reform opportunities of $5.7 billion in
FY 2021 savings for reinvestment in lethality and readiness. Finally, the CMO, Under Secretaryof Defense (Comptroller) and Services have included in the FY 2021 request additional newsavings of $3.4 billion for reinvestment in NDS priorities as identified below which will bring the
Department’s impact for FY 2021 Reform to $9.1 billion.
Defense-Wide Reviews of the Department of Defense Fourth Estate
In August of 2019, the Department launched the Defense-Wide Review (DWR), a comprehensive
review and rationalization of all Fourth Estate programs, functions, and activities designed to
identify savings in FY 2021 and in future years. The DWR was a major DoD initiative to improve
the alignment of time, money, and manpower to NDS priorities. Specifically, the Secretary of
Defense and the Deputy Secretary of Defense, along with the CMO, Comptroller, and Director,
Cost Assessment and Program Evaluation (CAPE), leveraged a risk-based approach to decrease
overhead, divest of legacy activities, and reduce the cost of lower priority programs, enabling the
Department to increase investment in innovation and enhance lethality to our competitive militaryadvantage in high-end warfare.
In total, the Secretary led 21 review sessions examining $99 billion of appropriated resources
across roughly 50 Defense-Wide (DW) organizations and activities. Over the course of fourmonths, the DWR conducted a comprehensive review of DoD organizations outside of the Military
Departments, identifying aggressive reform opportunities resulting in over $5.7 billion in savings
for reinvestment in lethality and readiness, and identifying an additional $2.1 billion in activities
and functions to realign to the Military Departments. The Department will continue these efforts
to review these agencies more fully in 2020. Reform within the DoD is a continuous process
CHAPTER 8

REFORMING DEFENSE
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Overview – FY 2021 Defense Budget
requiring review of priorities, enforcement of fiscal discipline, and business process improvement.
The OCMO Fourth Estate Management Office (FEMO) initiated a formal process to reduce
redundancies and optimize Defense Agencies and Department of Defense Field Activities (DAFA)
business processes and systems. The DWR and the FEMO reviews are expected to identify asignificant number of business process redesign and optimization opportunities that may require
an increase in facilitation and execution and resource capacity to achieve required end state asa result of reviews. OCMO created the FEMO to execute its responsibilities with a focus onshared business activities of the DAFAs. This will include annual review and certification of DAFA
budgets and periodic reviews of DAFAs’ efficiency and effectiveness.
Additional FY 2021 Service Reform Savings
In addition to the CMO’s enterprise-wide business reform efforts, the Army, the Department of theNavy, and the Air Force have driven program reforms to recognize significant savings and torealign spending towards NDS priorities.
The FY 2021 request includes $3.4 billion in reform savings that the Department will reinvest in
NDS priorities. Through the FY 2021 budget submission, the Department now has a moreformalized process to account for savings in support of the Department’s third line of effort. The
Department continues to refine the identification, validation, and reporting processes for financial
benefits in Working Capital Funds and reforms with less tangible savings.
The CMO and the Services are using the following levers (with examples) to achieve thesesavings:•

Business Process Improvement – Refining Figure 8.1. FY 2021 Defense Reforms
actions, personnel, and timelines to increase
effectiveness, efficiency, and reliability of the
Department’s delivery of goods and services.
FY 2021
Reform Levers

o

o

•

The Navy conducted execution reviews ofprograms delayed due to cost, schedule, or
performanceissues.
For
thoseunderperforming programs, funds werereduced to achieve the establishedexecution benchmarks.
This process
allows the Navy to efficiently and effectively
recoup resources in support of the NDS.
(FY 2021, $540 million)
The Army is reforming its logistics
enterprisetoenablestandardized,
auditable, and cost effective processes andsystem improvements. This reform will leadto streamlined business processes that
impactlogistics
readiness.
(FY 2021, $18 million)($ billions)

Business Process
Improvement

0.6

Business System Improvement

0.1

Policy Reform

0.1

Weapon System Acquisition

0.2

Divestments

1.0

Better Alignment of Resources

1.4

TOTAL

3.4

Numbers may not add due to rounding

Business System Improvement – Modernizing and eliminating legacy business systems
and processes to increase the effectiveness and reduce duplication of the Department’s IT
business systems and deliver information at the speed of relevance.
o

The Navy Maritime Maintenance Enterprise Solution technical refresh will transform asuite of legacy government systems that are highly federated to a more centralized

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Overview – FY 2021 Defense Budget
enterprise architecture utilizing common commercial off the shelf tools hosted in acommercial cloud environment, supporting common business processes. Recapitalizing
the aging IT infrastructure and toolset that supports fleet maintenance will greatly reduce
the risk of system failure and the risk of vulnerability to cyber-attack. (FY 2021, $9 million)•

Policy Reform – Changing the Department’s procedures to best empower the warfighter withthe knowledge, equipment, and support systems to fight and win.
o

•

•

•

Through a force design review, the U.S. Marine Corps aims to ensure the greatest levelof effectiveness and efficiency. This initiative reduces USMC Active Component end
strength by 2,300 Marines in areas that did not have a demand signal from CombatantCommanders, or a defined requirement in the NDS. (FY 2021, $107 million)

Weapon System Acquisition – Procuring and sustaining weapon systems differently toprioritize speed of delivery, continuous adaptation, and frequent modular upgrades.
o

The Navy negotiated savings on the E-2D all-weather twin engine carrier multi-year
procurement contract that enabled funding of a technology refresh and training.
(FY 2021, $52 million)o

The Missile Defense Agency (MDA) coupled two annual Terminal High Altitude Area
Defense (THAAD) interceptor lot buys into a single lot buy for economic order quantity
savings, which allowed for the lowest interceptor average unit cost. (FY 2021, $32 million)

Divestments – Selling equipment or weapon systems, or strategically discontinuing legacy
acquisition programs to fund purchases in support of the Department’s highest priorities.
o

The Air Force will divest 24 high-altitude RQ-4 Block 20 Battlefield Airborne
Communications Node (BACN) aircraft and Block 30 multi-intelligence aircraft in FY 2021.
The Air Force will continue to provide the data link and communications range extension(BACN) mission using the E-11 fleet. (FY 2021, $269 million)o

The is implementing the “Pilot Training Next” which are new training technologies that willoffer a more effective approach to pilot training. The retirement of the current training
platform will contribute to increased investment for its undergraduate pilot training fleet.
(FY 2021, $31 million)o

The Navy will accelerate the decommissioning of four Ballistic Missile Defense Cruisers(Aegis CG61, CG67, CG72 and CG73) with minimal impact to operational availability.
These ships are the Navy’s least capable Aegis baseline in the high end fight and will be
decommissioned with over 30 years of service. (FY 2021, $38 million)o

In FY 2021, the Army eliminates 41 lower priority programs to improve performance,
affordability, and resource higher priorities that support the NDS. Eliminations result in
reductions to legacy munitions, fires, protection, sustainment, mobility, mission commandand cyber programs that are not aligned with the NDS. (FY 2021, $299 million)

Better Alignment of Resources – Reprioritizing or moving finances and personnel to realignfrom legacy capability in support of the National Defense Strategy.
o

The Air Force B-2 Defense Management System – Modernization acquisition delay
resulted in a realignment of resources to address reliability and sustainment of the B-2
through end of life, while developing new capabilities aligned with the NDS.
(FY 2021, $337 million)o

The Army reduces requirements in the Network Portfolio for 28 programs, while
maximizing efficiencies. Some efficiencies are the Army’s Training Resource Model

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REFORMING DEFENSE
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Overview – FY 2021 Defense Budget
increase in accurate training predictions; Program Executive Office – Enterprise
Information Systems contract and overhead; and SATCOM Iridium Phone requirement tomission essential capabilities. (FY 2021, $226 million)
As the Department moves from early investments to enable reform to institutionalized savings,
we are committed to reinvesting and tracking savings gained to ensure it supports lethality andreadiness. The Department is relentlessly pursuing opportunities to reduce cost and time acrossprograms and contracts, leveraging the Department’s monopsony power to achieve greatersavings in both.

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REFORMING DEFENSE
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Overview – FY 2021 Defense Budget

9. MILITARY DEPARTMENTS“We will continue to build a more lethal force by increasing readiness andmodernizing for the future. The goal is to deter war, and this can only be donewith a strong, modern, and ready military that has overmatch in all domains.
Our adversaries must see diplomacy as their best option because war with theUnited States will force them to bear enormous costs.”-National Defense Strategy
The Military Departments generally use several means to report to the Congress on theiractivities. Consistent with Title 10 Section 113 (c)(1)(A), each of the Military Departments isproviding a summary of their Fiscal Year (FY) 2021 Budget submission for inclusion in the DoD
Budget Overview. Additional data are contained in Appendix A, Resource Exhibits.

DEPARTMENT OF THE ARMY OVERVIEW
Discretionary Budget Authority in Thousands
Department of the Army Base + OCO +Emergency
Military Personnel
Operation and Maintenance
Procurement
RDT&E
Military Construction
Family Housing Construction
Family Housing Operations
Revolving and Management Funds
Pass Thru (ASFF, CTEF, & CHEM-DEMIL)
Base Realignment & Closure
Subtotal Department of the Army
Arlington National CemeteryTotal Department of the Army

FY 2020
EnactedFY 2021
Request62,638,220
70,497,845
24,415,223
12,540,463
1,886,014
141,372
407,907247,6975,534,477
78,111
178,387,329
80,800178,468,129

65,514,816
68,126,162
24,058,405
12,770,167
1,075,983
119,400
367,142
76,8075,750,112
66,060177,925,054
70,800177,995,854

Δ
FY 2020 –FY 2021+2,876,596-2,371,683-356,818+229,704-810,031-21,972-40,765-170,890+215,635-12,051-462,275-10,000-472,275

Number may not add due to rounding
Afghanistan Security Forces Fund (ASFF)
Counter-Islamic State of Iraq & Syria Train and Equip Fund (CTEF)
Chemical Agents & Munitions Destruction (CHEM DEMIL)“We must maintain a sense of urgency, negate bureaucracy and dogma andremain steadfast in our priorities of readiness, modernization and reform....”-Honorable Ryan McCarthy, Secretary of the Army

CHAPTER 9

MILITARY DEPARTMENTS
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Overview – FY 2021 Defense Budget
Introduction

The Total Army remains strong and ready to provide prompt, sustained land
forces to win decisively against any adversary, anytime, and anywhere, in
defense of our the nation’s interests.
The Army remains globally engaged and ready; there are approximately 187,000 Soldierscurrently serving in 140 countries around the world supporting 60 percent of CombatantCommand requirements. After nearly two decades of Post-9/11 contingency operations, the Total
Army remains strong and ready to provide prompt, sustained land Forces to win decisively against
any adversary, anytime, and anywhere, in defense of our the Nation’s interests. Simultaneously,
the Army is in the midst of its most comprehensive modernization effort since the late 1970s andearly 1980s, when doctrine shifted from Active Defense to Air-Land Battle. It was at this time that
the Army developed and fielded the “Big 5” weapons systems (Abrams tank, Bradley fighting
vehicle, Patriot air defense system, AH-64 Apache and UH-60 Blackhawk helicopters) in supportof the Air-Land Battle doctrine, and the Nation abandoned conscription replacing it with the AllVolunteer Force.
Today, as the Army changes focus from contingency operations to supporting Joint All-Domain
and Large Scale Combat Operations (LSCO), the Army is purposefully modernizing, focused on
six modernization priorities supported by the eight Cross Functional Teams (CFTs) and the Rapid
Capabilities and Critical Technologies Office (RCCTO). Prioritizing modernization investments
now will enable American land power dominance to meet the demands of great power competition
and great power conflict presented by threats in the Indo-Pacific and European Theaters (China
and Russia). To prevail in this competition, and possible conflict, the Army must be prepared andequipped to support and win in Joint All-Domain and LSCO. Unlike Army modernization in the
1970s and 1980s, underwritten with tangible increases to research, development and acquisition
funding, the Army today has led the Department of Defense in the pursuit of reforms and hasleveraged two consecutive years of “deep-dive” reviews of its programs to optimize its
modernization portfolio to support the National Defense Strategy (NDS). Leveraging these reform
efforts, the Army today is making the necessary choices to achieve a balance between Readinessand Modernization, and doing so with a budget that can be characterized by a flat topline.
Regardless of budget topline, the Army’s most important weapon system, and its true strength, is
its people, both Soldiers and Civilians, across the Regular Army (RA), U.S. Army Reserve (USAR)
and Army National Guard (ARNG) and their Families, who support them, all of whom arecommitted to serving our Nation. They are the keystones as the Army balances efforts andresources to simultaneously sustain and improve Readiness and to modernize the Force.
Fiscal Environment
The Army is committed to maximizing every dollar spent through painstaking and deliberateprioritization as it executes the Army Strategy in support of the 2018 NDS. Beginning in 2017,with a large increase in the Defense Budget, the Army reversed the readiness decline associatedwith six years of flat or declining budgets from FY 2011 to FY 2016, while simultaneously
providing the majority of support for ongoing contingency operations.
In FY 2019, Congress enacted the Defense Appropriation before the beginning of the fiscal year.
The on-time enactment provided resource predictability for the fiscal year and enabledcommanders to effectively and efficiently execute their annual training and operations plans forthe entire fiscal year, and to build Army Readiness at all three echelons – Tactical, Operational,
and Strategic. This kind of resource certainty is invaluable to the Army’s ability to support the
NDS.
CHAPTER 9

MILITARY DEPARTMENTS
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Overview – FY 2021 Defense Budget
During the “Night Court” sessions, Army Senior Leaders (ASLs) took decisive and prudent actions
to internally resource and jumpstart Army modernization within the Army’s flat budget topline.
Army Senior Leaders conducted comprehensive “deep-dive” reviews to prioritize and make toughchoices that informed the FY 2020 and FY 2021 President Budget Submissions.
Readiness“If you look across the key priorities, we have a great deal of momentum at thispoint in time. . . The readiness posture “is very robust,” and there is muchenergy and focus being applied across the Army to meeting key performanceparameters.”-Honorable Ryan McCarthy, Secretary of the Army

For the past two decades, the Army reported
Readiness in terms of tactical units and their ability
to meet deployment timelines and conduct
operations designed or planned for the counterinsurgency fight and counter-terrorism. To delivercapabilities demanded by the NDS, the Army musttake a more holistic view of the components ofReadiness to build and sustain Tactical, Operational,
and Strategic Readiness.
Comprehensive
Readiness is achieved when the Army can generate
trained, disciplined, and fit tactical units, starting with
the Army’s most basic unit; the squad (Tactical
Readiness); provide ground combat capability and capacity to the Joint Force (Operational
Readiness); and rapidly deploy that capability and capacity in support of Combatant Commanders(Strategic Readiness).
The Army assesses its Strategic Readiness as not only the ability of its tactical units to fight andwin, but also its ability to get to the fight fast and fully prepared. As such, the Army includes its
capacities and capabilities in the areas of manning, training, equipping, sustaining, and providing
installation services and quality of life as key components of Strategic Readiness. To achieve theStrategic Readiness required to support the NDS, the Army requires modest end strength growth(RA, +900 (total of 485,900); ARNG, +500 (total of 336,500); USAR, +300 (total of 189,800)) tofully man its formations and to bring new capabilities on board.
The Army will conduct the Department’s longest and most challenging initial combat training for
Infantry and Armor and Cavalry Scout recruits (22 weeks) to expand Tactical Readiness. The
Army will also pilot extending Engineer One Station Unit Training from 14 to 22 weeks and extend
Senior Reserve Officer Training Corps Cadet Summer training from 31 to 37 days adding
additional rigor in essential combat skills. These increases in initial combat training will ensure
newly enlisted Soldiers can quickly integrate into their squads, and that new junior leaders areprepared to assume their duties quickly upon arrival at their first duty station.
To advance Operational Readiness, this budget request will resource the Active Component toachieve brigade level proficiency and resource the Army National Guard and U.S. Army Reserveto platoon level proficiency. This budget request will also resource air crews across the Total
Army to achieve Active Component aviation battalion level proficiency and the Army National
Guard and the U.S. Army Reserve at platoon plus and platoon levels, respectively. To ensure
Readiness for decisive Large-Scale Combat Operations, the Total Army will conduct 24 brigade

CHAPTER 9

MILITARY DEPARTMENTS
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Overview – FY 2021 Defense Budget
level Combat Training Center rotations in FY 2021 (17 for the Active Component, four for the
Army National Guard, and five for units on rotation in Europe).
The Army continues to build and sustain Operational and Strategic Readiness, increasing
mobilization capacity by resourcing Dynamic Force Employment (DFE) and Mobilization Force
Generation Installation (MFGI) investments. In FY 2021, the Army will demonstrate Readiness
to operate in the Indo-Pacific Theater through DEFENDER-Pacific exercises while also continuing
to buttress the European Theater through DEFENDER-Europe exercises. Strategically, the Armyis reconfiguring prepositioned stocks around the globe ensuring theaters are set with theequipment and supplies essential to meet Joint All-Domain operational demands in both LargeScale Combat Operations and contingency environments. Finally, to increase capacity andoperational mission command capability, beginning in FY 2020 and continuing into FY 2021, theArmy will stand up an additional corps headquarters. The new corps headquarters will focus
planning and other activities on European scenarios, but it will be capable of global deployment.
Modernization“Russia and especially China are on a trajectory to surpass U.S. capability . . .
both seek to modernize, to man and gain overmatch against the U.S. and ourallies. Either you have a sense of urgency today or a sense of regret
tomorrow.”- Honorable Ryan McCarthy, Secretary of the Army

The Army Modernization Strategy (AMS) focuses on
six modernization priorities (long range precision
fires; next generation combat vehicle; future verticallift; network; air and missile defense; Soldier
lethality). The Army established eight CrossFunctional Teams (CFTs) focusing on 31+3
signature modernization efforts (see Table 1). CFTs
are reducing the time to deliver new weaponssystems by integrating operator/users upfront in theacquisition process with representatives from theprogram requirements, science and technology,
testing, resourcing, costing, and sustainment
communities.

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Table 1 – 31 Modernization Efforts

Additionally, there are three other lines of effort (“+3”), which fall under the Rapid Capabilities andCritical Technologies Office (RCCTO), that are essential to the future of Large-Scale Combat
Operations and competition with great powers.
1. Hypersonics. This budget supports fielding the first prototype hypersonic battery with all
ground and support equipment, firing test shots in FY 2022 and fielding combat rounds
in FY 2023.
2. Directed Energy Mobile Short-Range Air Defense System (DE-MSHORAD). Resources
applied facilitate fielding the first combat relevant laser weapon (50KW) on Stryker
vehicles in FY 2022.
3. Indirect Fire Protection Capability. Funding supports a 300KW mobile, ground basedlaser integrated onto a Family of Medium Tactical Vehicles (FMTV).
Army modernization is essential to building a more lethal Force to deploy, fight, and win our
Nation’s wars. The Army integrated development, acquisition, and capabilities under one
command – Army Futures Command (AFC) – to enable more efficient, effective, bold, innovativeacquisition reform and rapid modernization. AFC has the single focus of changing the Army’s war
fighting doctrine and providing new warfighting capabilities faster and more cost effectively. Thisis achieved through rapid innovation, experimentation, demonstration and rapid prototyping todeliver the next generation of weapons, vehicles, and equipment required to conduct Joint
All-Domain Operations and Large-Scale Combat Operations.

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FY 2021 is a critical transition year for Army modernization as the capabilities under development
in recent years begin to mature from the testing to prototyping and early production phases.
Implementing the hard choices made to enable initial development of systems requires equallychallenging decisions to ensure systems are produced, procured, and fielded to the Warfighter tomeet NDS requirements. The need to maintain peace through strength in order to deter enemies
underpins the Army’s sense of urgency to modernize. The Army cannot modernize at the paceand scale necessary while constrained by a future of flat or declining budgets, and unpredictableand untimely funding.
To fund modernization efforts, the Army made difficult and deliberate choices. In the FY 2020
budget, the Army cancelled 93 procurement programs and delayed another 93 programs torealign funds to higher priority programs in support of the NDS. In the FY 2021 Budget Request,
the Army again made difficult, purposeful choices, cancelling 41 programs and delaying
39 programs. The Army aligned over $9.1 billion in funding across FY 2021-2025 Program
Objective Memorandum (POM) to ensure adequate funding for CFT and RCCTO modernization
efforts. Allocating resources with the goal of increasing lethality and improving “return on
investment”, which are required to support the NDS for both the current fight and the future fight,
Army Senior Leaders divested programs, producing marginable gains in favor of programs thatare essential for success in the current fight and directed investments to programs needed toprevail during great power competition and in support of Joint All-Domain Operations.
Reform

“We cannot be an Industrial Age Army in the Information Age. We must
transform all linear industrial age processes to be more effective, protect our
resources, and make better decisions. We must be the Army of tomorrow,
today.”-General James McConville, 40th Chief of Staff, Army

The purpose of Army Reform is to free up time, money, and manpower to reinvest in readinessand modernization. Army Senior Leaders, through their “Night Court” sessions, were able torealign $2.4 billion in FY 2021 and $13.5 billion across the Future Year’s Defense Program(FYDP) to support the Army Vision 2028 and the Army Modernization Strategy (AMS). Thesesavings enabled the Army to continue its ambitious and essential modernization agenda, support
the NDS, and simultaneously maintain readiness gains in a fiscally constrained environment. Of
the Army’s $2.4 billion in total FY 2021 savings, the Department of Defense recognized$1.4 billion as Reforms: $0.9 billion for “Better Alignment of Resources”, $0.2 billion for “Business
Process Improvement”, and $0.3 billion for “Divestments.”
Army reforms are not just focused on process adjustments and funding adjustment decisions.
The Army has several other ongoing initiatives under its reform umbrella, including: Army
Command Accountability & Execution Review (CAER), Contract Reviews, and Achieving
Auditability. The CAER initiative continues to assist leaders and Commanders to improve theirfiscal stewardship by maximizing their purchasing power and minimizing inefficiencies. CAER
has already greatly enhanced the Army’s fiscal stewardship, reducing inefficient spending by
40 percent in its first full year.
Key CAER outcomes in FY 2019 include: 99.9 percent obligation rate at year end close;
2nd quarter reallocation of $248 million for higher priorities; and a change of policy reducing theuse of Miscellaneous Obligation Document (MOD) actions from $1.2 billion in FY 2018 to only
$228 million in FY 2019.

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The Army entered its second year of full financial statement audits in FY 2019, building upon the
momentum generated from its FY 2018 audits, and moving forward without interruption during
FY 2019. Although the FY 2019 audit resulted in a disclaimer, the Army has made significant
headway into improving its business processes and accountability. In FY 2020, the Army willcontinue this progress and aggressively develop and maintain a culture that expects auditable
records at every level.
People“Winning matters, and People are my number one priority. People are our
Soldiers – Regular Army, National Guard, and Reserve – their Families,
Civilians, and Soldiers for Life – Retirees and Veterans. We win through ourpeople, and people will drive success in our Readiness, Modernization and
Reform priorities. We must take care of our people...”-General James McConville, 40th Chief of Staff, Army

Modernization is not just about equipment – theArmy does not man equipment, the Army equips
Soldiers. It is the grit, determination, and innovationof these Soldiers that has been the basis of the
Army’s success for generations, and it will ensure
success through this critical period of transition.
The Army’s vision is to build cohesive teams for the
Joint Force by maximizing the talents of its people,
the Army’s greatest strength and most important
weapon system. This requires building a 21stCentury talent management system by creating thepolicies, programs, and processes that recognize
and capitalize on the unique knowledge, skills, and behaviors possessed by every member of the
Army team and then employ each member for maximum effect. The Total Army will acquire,develop, employ, and retain the diversity of Soldier and Civilian talent needed to achieve Total
Army readiness.
Through a 3 percent pay raise for service members and 1 percent pay raise for Army civilians the
Army will continue to acquire and retain its talent while also recognizing their dedication andcommitment to our Nation. Army Senior Leaders also recognize our Soldiers, civilians and theirfamilies should have the best quality of life possible, so the Army is implementing policy changes
and process improvements for Soldier and family quality of life issues aligned to the Army Chiefof Staff’s five people priorities: housing, health care, child and youth services, spouse
employment opportunities, and Permanent Change of Station moves. These people priority efforts
are foundational to the Army’s overall readiness and our ability to support combatantcommanders’ requirements around the world. With the right people, in the right place, at the righttime, the Army will successfully deploy, fight, and win LSCO and in support of Joint All-Domain
Operations.

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Conclusion
The Army remains fully committed to achieving the Army’s Vision of 2028, which provides thestrategic framework for guiding the Army into the next decade. However, we remain focused ondelivering the Army’s 31 + 3 signature efforts as we modernize our Army. The Army’s FY 2021
Budget Request prioritizes resources to build Readiness, win in the current and future fight, anddeploy a more lethal and ready Total Army, focused on Joint All-Domain and LSCO. To counterthe threats we face today and into the future, the Army must take care of our people, continue toimprove our readiness, accelerate modernization, and implement smart reforms. All of these
efforts are critical in providing the Nation a professional, lethal, and decisive Force that will win
against any of our adversaries. None of this is possible without timely, adequate, predictable,
and sustained funding, which is necessary to ensure readiness for the current and future fight.

“When we send the Army somewhere, we don’t go to participate, we don’t go to
try hard, we go to win. Winning Matters! We win by doing the right things, theright way.”-General James McConville, 40th Chief of Staff, Army

WINNING MATTERS!

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DEPARTMENT OF THE NAVY
Discretionary Budget Authority in Thousands

FY 2020
EnactedFY 2021
Request51,857,936
68,001,583
61,559,061
20,219,012
6,704,035
425,131
233,500
209,000,258

55,175,348
70,602,087
57,177.470
21,486,610
2,241,786
389,390

Department of the Navy Base + OCO +Emergency
Military Personnel
Operation and Maintenance
Procurement
RDT&E
Military Construction
Family Housing
Revolving and Management Funds
Total Department of the Navy

207,072,691

Δ
FY 2020 –FY 2021+3,317,412+2,600,504-4,381,591+1,267,598-4,462,249-35,741-233,500-1,927,567

Introduction
Together our Navy and Marine Corps teams
provide the Integrated Maritime Power that is an
essential element of the NDS. The importance of
Seapower for our nation’s economic and politicalsecurity is vital to preserving the freedoms we all
enjoy as United States citizens. The Navy/Marine
Corps is America’s Away Team and now more thanever, we need to be able to fight anytime,
anywhere. There is no better signal of ourcommitment to a region than U.S. Naval operationsin the region. That is why we will continue to fly,sail, and operate wherever international law allows.
The FY 2021 budget request optimizes our budget dollars in order to maximize naval power.
Maritime power has never been more critical to the success of our nation. The NDS remains ourguidepost, and we are aligned to that strategy by providing for a more ready and more lethal force.
This is accomplished by building on prior investments, sustaining the industrial base, retaining acompetitive advantage, and continuing our investments in a more cost-imposing/affordable futureforce. We are looking internally first for streamlining and integration efforts in order to ensure thatevery tax dollar spent is value added while maintaining mastery of the seas for the American
people.
Our request prioritizes a strategy driven andbalanced approach to deliver the most capable
force within our allocated resources.
We
recapitalize the strategic ballistic missile
submarine and stay the course on our investment
in readiness recovery. Additionally, we resource
the increased lethality and modernization efforts
with the greatest potential to deliver non-linear
warfighting advantages. The velocity at which
our peer competitors are pacing requires
harnessing lessons learned, strengthening
analytics, delivering technology, and ramping up
our efforts to reach superior agility in response.
As we look to a future of greater global trade and greater unpredictability, the maritime power is
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crucial. We remain committed to a larger force, but this budget slows the rate of growth of ournaval forces in order to field a more ready, and lethal force today, and in the future. Key lethality
and modernization investments include high-end extended range munitions and kill chains,
unmanned systems, hypersonic and advanced strike missiles, directed energy, containerized
weapons, information warfare, and fully networked command, control and communications.
Strategic Guidance and Themes
By expanding on the momentum gained over the past 2 years, our FY 2021 President’s Budget
request is rooted in the strategic guidance spanning National Security, Defense, Military
strategies, and Departmental guidance. As outlined in the 2018 NDS, great power competition
has reemerged as the central challenge to security and prosperity. Our budget prioritizes fleetwide, offense focused, distributed and dynamic maneuver, including Marine Corps operational
maneuver, to optimize the integrated naval power and contribution to the Joint Force. The new
breed of threat requires an Integrated American Naval Power with continued commitment tofiscally responsible investing and funding.

With the issuance of Fragmentary Order Number 1 of 2019:“Design for Maintaining Maritime Superiority Version 2.0,” theChief of Naval Operations (CNO) reaffirms the Navy’s alignment
with the NDS, and also provides some course corrections
following several changes over the past year. Mission One forevery Sailor is the operational readiness of today’s Navy. A
ready Navy – ready to fight today – and our commitment to thetraining, maintenance, and modernization that will also ensurea Navy ready for tomorrow. The CNO’s guidance emphasizes
three lines of effort:
Warfighting: A Navy that is ready to win across the full range of military operations in competition,
crisis, and contingency by persistently operating forward with agility and flexibility in an all domain
battlespace. Our Navy must be the best when the nation needs it the most.
Warfighters: A world-class naval force though recruitment, education, training, and retention oftalented American men and women – a force that also empowers Navy families through theinitiatives under the Navy Family Framework 3.0.

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Future Navy: A Navy fully prepared to fight and win. Our Navy will be equipped with the rightcapabilities and numbers to execute our operating concepts. In order to maintain the maritime
competitive advantage envisioned in our fleet design, we will ensure the wholeness of combat
capable and lethal forces maximizing the benefits of Distributed Maritime Operations,
Expeditionary Advanced Base Operations, and Littoral Operations in a Contested Environment.
We will develop and field affordable, lethal, numerous, and connected capabilities. We will use
experimentation, exercises, and wargames to determine what is required to operate forward –firepower, capacity, command and control, and logistics; build the fleet to match; and train
together until we achieve seamlessly integrated combat power across the naval and Joint Force.
The Commandant of the Marine Corp’s (CMC’s) vision is expressed in
the Commandant’s Planning Guidance (CPG). The CPG states that the
Marine Corps will be trained and equipped as a naval expeditionary forcein-readiness and prepared to operate inside actively contested maritime
spaces in support of fleet operations. In crisis prevention and crisis
response, the Fleet Marine Force – acting as an extension of the Fleet –will be first on the scene, first to help, first to contain a brewing crisis, andfirst to fight if required to do so. The CMC’s guidance emphasizes fivelines of effort:
Force Design: This is the CMC’s number one priority stressing the needfor change and divestment of legacy capabilities that do not meet our
future requirements, regardless of their past operational efficacy. Together, the Navy-Marine
Corps Team will enable the joint force to partner, persist and operate forward despite adversary
employment of long-range precision fires.
Warfighting: As good as we are today, we will need to be even better tomorrow to maintain ourwarfighting overmatch. We will achieve this through the strength of our innovation, ingenuity, andwillingness to continually adapt to and initiate changes in the operating environment to affect the
behavior of real-world pacing threats. Expeditionary Advanced Based Operations complement
the Navy’s Distributed Maritime Operations Concept and will inform how we approach missions
against peer adversaries.
Core Values: The Marine Corps developed its warfighting spirit and character in the values ofhonor, courage, and commitment. The Marine Corps is an elite institution of warriors, and willremain so. It is a shared responsibility to ensure the continued health of our collective soul andidentity.
Command and Leadership: Leaders must ensure Marines are well-led and cared for physically,
emotionally, and spiritually, both in and out of combat.
American seapower is essential to defending the nation and its interest around the globe.
Together, the Navy will expand and strengthen Navy-Marine Corps integration by aligning
concepts, capabilities, planning, programming, budgeting, and operations to provide Integrated
American Naval Power to the Joint Force.
Security and Operational Environment
The world’s economy has grown remarkably over the last 30 years in large part due to the stability
afforded by a Naval Service. Today, the U.S. economy is inextricably linked to the global
economy. Global trades are critical to the U.S. gross domestic product, and we must ensure that
we have a Navy that can protect it. Increasing political and economic tension pervades
relationships among powerful nations. As such, we must protect our key economic trade routes
and we need a Navy sized to do that in an ever-growing and complex world.

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In this setting, the U.S. continues to rely on international military partners for global stability.
Increasingly, friends as well as potential foes, rely on technology in military operations. Peer
competitors with high-end military capabilities are acting agressively in multiple domains,challenging the interests of the U.S. and our allies. To compete in this threat environment, theDepartment relies on the integrated multi-service multi-domain capabilities and national security
campaign for lasting peace and prosperity.
This budget adapts the force to reflect key changes in the security environment. We continue to
see increased reliance on the maritime system, with maritime traffic increasing four-fold over thelast 2 decades; 90 percent of all global goods being shipped, and new trades routes opening to
the north. Almost the entire internet and trillions of dollars in trade are carried today on a largely
unsecure network of undersea cables.
Overall, the maritime system is more heavily used, more stressed and more contested than everbefore as indicated in Figure 9.1.
Figure 9.1 – Security and Operational Environment

Our global competitors continue to grow their naval forces, and they are expanding their areas ofoperations and collaboration with each other. China’s battle fleet, for example, has grown from
262 to 335 surface ships over the last decade while Russia continues to invest in advanced
submarines with stealth capabilities. Other nations such as Iran, North Korea, and non-state
actors are exploiting asymmetric capabilities to create instability and uncertainty on the global
maritime commons. We simply have a lot more to protect from increasingly capable maritime
adversaries who will present challenges to our economic security and indeed, our very way of life.
To meet the challenges discussed, the Navy and Marine Corps provide forward postured seabased forces (Figure 9.2), including 51,371 Sailors and 32,900 Marines currently deployed orunderway on 94 ships, two Carrier Strike Groups, and two Expeditionary Strike Groups. In
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addition, the Navy maintains 40 cyber mission teams across the globe conducting cyber
operations in support of Naval forces.
Figure 9.2 – Operational Context (as of 9 January 2020)

The Navy and Marine Corps are engaged in joint, integrated operations around the globe,
providing immediate response options, assuring allies and deterring our adversaries.
FY 2021 President’s Budget Overview
The total FY 2021 President’s Budget request for
the Department of Navy (DON) is $207.1 billion.
This represents a $1.9 billion decrease fromFY 2020. Our procurement account decreases by-6.6 percent to fund the increases in operation &maintenance (+4.1 percent), military personnel(+6.4 percent), and R&D (+5.1 percent) as we
protect readiness investments and invest in key
technologies. All resources shown are required tomaximize our Naval power through the balanced
delivery of readiness, lethality and capable
capacity.
Warfighting analytics played a key role as the DON built our current budget request. As part ofthis analysis, warfighting value is assessed in iterative wargames, mission and campaign
analyses, and experimentation. Since 2015, the Department has performed 850 Joint, DON, andcombined experiments, wargames, and exercises. This body of analysis identified key leverage
points with the greatest potential to produce enduring asymmetric warfighting advantages. The
FY 2021 budget investments align to these leverage points.
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ReformThe NDS requires relentless and ruthless prioritization in order to balance near term challenges
and prepare for great power competition, particularly given the fiscal realities confronting us. The
Department of the Navy is focused on informing our processes to free up time, money, andmanpower - this is a strategic imperative. Guided by the Department’s Business Operations Plan,
we are enhancing performance and affordability through a variety of methods. In addition to
tracking our prior year reform efforts, this year we followed Secretary Esper’s lead that ‘no reform
is too small’ and that ‘we must accomplish a mindset shift where leaders think critically about the
optimal application of every dollar in their respective budgets to advance the strategy.’ It started
with the introduction of a Zero-Based Budget review (ZBB) and continuation of wholeness balance
reviews where we scrutinized every line item in the DON’s budget. This included prioritizing theallocation of dollars based on alignment to strategy, return on investment, relative value, portfolio
optimization and specific outcome metrics. The use of data driven process reforms like
performance to plan have helped to illuminate the highest leverage points and areas where wecan accelerate learning.
The DON realigned nearly $80 billion
during this budget build and achieved
reform savings of $1.4 billion in FY 2021,
and $1.4 billion in FY 2021 and we continue
to track $166 billion of reform over thecurrent FYDP that was laid in during priorbudget cycles and continues to be tracked.
Our reform efforts include areas such asdivestiture of less capable legacy platforms,
better contracting, and improvements tosystems and processes as shown in thechart.

FY 2021 Total Reform Savings - $1,429M
Business System
Improvement,-$9M

Business Process
Improvement, -$820M

Divestitures,-$422M

Weapon System
Acquisition,-$48M

Policy Reform,-$130M

PeopleMission one is operational readiness, and readinessstarts with our Sailors and Marines. For the Navy thismeans keeping manning synchronized with our force
structure.
We need to properly man our ships,
submarines, and aviation squadrons. Our active Navy
military manpower (347,800) continues to increase andis aligned to our force structure changes as the fleet size
grows, sustains Sailor 2025 and personnel systemtransformational objectives, and supports new platforms,
new capabilities, addresses fleet needs and reduces
gaps in manning. Our reserve Navy military manpower (58,800) decreases slightly as we reduce
our need for non-prior service accessions due to the strong flow of prior service sailors who wish
to continue to serve in a reserve capacity after leaving active duty. Prior service accessions area key component to increased lethality and strategic depth for our reserve force.
Our active Marine Corps military manpower (184,100) delivers the end strength in FY 2021 toalign with Commandant’s Force Design to modernize the force as prescribed by the NDS and tosustain the readiness of the current force. Our reserve Marine Corps military manpower (38,500)
delivers a ready-relevant-responsive force capable of seamlessly augmenting, reinforcing, andoperating as part of the Total Force.

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The FY 2021 budget requests funding for 220,901 civilians, recognizing the key role the civilian
workforce has in the Department. This increase of less than 1 percent from FY 2020 represents
sustained and targeted growth necessary for mission success. Our additional civilians are crucial
to our ability to sustain our equipment, with ship maintenance workers and aviation mechanics,
and to design and develop communications and weapons platforms of the future, with scientists
and engineers. A greater focus is placed on efficiency, with added personnel for audit accuracy,and quality-of-life with more civilian oversight of privatized housing for the military. All of ourcivilian growth supports a larger, more capable and agile naval force.
Readiness
Our forces must be agile and ready. Shipmaintenance continues to be a focus area for
the Navy, and we are committed to better
predictability and maintenance of our ships.
This is an all hands-on deck effort to leveragedata analytics to identify and close theperformance gaps. In FY 2021 we grow
2 percent above FY 2020 which funds
98 percent of our full requirement limited byour current capacity.
We continue tocapitalize on the FY 2020 pilot program for
private contractor shipyard maintenance in
the Pacific, by extending it into FY 2021. Predictable stable funding here is crucial to incentivize
private yard growth. Similarly, ship operations funding increases 3.6 percent over last year. This
resources our full requirement, allows for 58 days underway while deployed and 24 days
underway while non-deployed per quarter.
Marine Corps readiness is focused on building a more lethal force. Therefore, Funding remains
relatively flat but is reprioritized to focus resources in accordance with the Commandant’s
Planning Guidance. The Marine Corps Expeditionary Equipment emphasis is to modernize key
capabilities. This is a continuance of the “Divest to Invest” initiative as legacy equipment sets that
do not meet future requirements are divested.
Aircraft Depot Maintenance andLogistics funding increases 14 percent
as we enhance our ability to win thehigh-end fight and improve ourthroughput. However, this only funds
92 percent of the requirement due tocapacity at the Fleet ReadinessCenters. By providing more funds for
key performance drivers, this sustains
our higher mission capable rates for
Strike Fighters. The flying hour
program increases by 2 percent, but
fund only 93 percent of the full
requirement. This fully funds TACAIR readiness to continue gains in FY 2019, provides sufficientfunding to fund increased aviation cost-per-hour for some of our newer aircraft, and it allows forthe increased contract maintenance for training aircraft. This will ensure proficiency to executethe high-end fight.

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Historically, we have taken risk in our shore infrastructure in order to increase afloat and unit
readiness, future force structure, and other priorities. Over time, this decision has resulted in the
degradation of our facilities. Our current budget request prioritizes shore investments to increase
fleet readiness. For FY 2021 we increase funding 4 percent over FY 2020 and fund facility
sustainment to 81 percent of the modeled sustainment requirement. Base operating support
funding in FY 2021 also increases for programs such as childcare, utilities, physical security
enhancements, as well as port and airfield operations. Marine Corps facility sustainment is also
funded to 81 percent; though this represents a decrease of 3 percent that is due to the higher
level in FY 2020 for increases in disaster relief. These funding levels implement theCommandant’s infrastructure reset strategy to optimize infrastructure footprint.
Research and Development
Shifting from readiness to lethality and research and development efforts, our budget request
provides continued investment toward innovation to deliver more capability within the FYDP and
beyond. Research and Development funding increases 5 percent to promote increased lethality
and better capability through innovation. Our ship, aircraft, and weapons development efforts are
sustained. We continue Columbia Class sub development, recapitalizing our Strategic Nuclear
Deterrent and other ship building efforts such as - the Ford Class carrier, Guided Missile Frigate,
and Future Large Surface Combatant. We begin design concept for two new intra-theater lift
vessels able to support Expeditionary Advanced Based Operations in a Contested Environment.
We continue to advance capabilities in the F-35 Joint Strike Fighter for both the Navy and Marine
Corps. In the area of weapons development, we are providing for longer range, and hypersonic
weapons and increasing investments in areas like Conventional Prompt Strike and our Standard
Missile family of missiles. The budget request continues investment in key Marine Corps
development programs such as the Ground Based Anti-Ship Missile, Ground Based Air Defense,
CH-53K helicopter, and Amphibious Combat Vehicle.
Procurement
Shipbuilding
procurement
fundingdecreases from $24 billion to $20 billion(-17 percent) between FY 2020 and
FY 2021. The Department appreciates
the strong support by Congress fornaval shipbuilding in FY 2020. We
currently have 73 ships under contract
with 44 ships in construction and 10
more ships are projected to award in
FY 2020. Our FY 2021 request includes
8 battle force ships for one COLUMBIA
and one VIRGINIA class submarine, two
ARLEIGH BURKE class destroyers, one
Guided Missile Frigate, one Landing
Platform Dock (LPD) Flight II, and two
Towing, Salvage, and Rescue Ships. We also restored funding for the CVN 75 (HARRY STRUMAN) and its associated airwing and will refuel the ship beginning in FY 2025. We procure
44 ships over the FYDP. In balancing resources and requirements, we carefully weighed theeffects of our program decisions on the industrial base to ensure our nation maintains the skills,
capabilities, and capacities critical to meeting the needs of our NDS. Unmanned continues to bea priority this year with procurement of our large unmanned surface vessel, which will ultimately
serve as a sensor and shooter. We procure ten of these over the FYDP, currently funded in
Research and Development but transitioning to SCN funding in FY 2023. We also procure six
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extra-large unmanned undersea vessels where we are focusing on payload integration andsolutions for specific Fleet needs. These are funded in Other Procurement, Navy account.
Aviation procurement funding decreases from $19.7 billion to $17.2 billion (-12.7 percent) as wecomplete the buy of several type model series - such as the P-8 and F- 5 Tiger IIs. We procure
121 aircraft in FY 2021 and 537 aircraft overthe FYDP. Key aviation investments include:
the final 24 F-18 Super Hornets in FY 2021,
production of F-35B and C Lightning II’s, final
5 E-2D Advanced Hawkeye multiyear
procurement in FY 2023, increase logistical
capacity and capability with a multi-year buy of
the KC- 130J Super Tanker, the ramp-up of
CH-53K King Stallion production, and a multiyear procurement of the CMV-22 Osprey,
Carrier Onboard Delivery (COD) variant. For
unmanned investments, the procurement of
5 MQ-4C Tritons is paused in FY 2021 andFY 2022 to allow the Integrated Functional Capability-4 (IFC 4.0) design to mature, which will
eliminate concurrency risk and minimize the retrofit cost.
Audit
The budget supports our audit efforts, which are critical todemonstrating accountability of government funds andreassuring the American people we are using their resources
appropriately. We are committed to improving processes
and correcting inefficiencies within the DON. This is anenterprise priority – not just a financial issue. As such, DON
leaders at all echelons are fully engaged. The audit has
spawned transformational improvements, including:-

Improved visibility, management, and accountability of
our material to get the right part to the right place at theright time, every time-

Consolidation of our general ledger and businesssystems to standardize and streamline our businessprocesses

Resource Summary
The combined base and contingency operations
DON FY 2021 President’s Budget request is$207.1 billion.

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Conclusion
To summarize, the Department of the Navy’s budget implements the NDS by delivering abalanced, high-end wartime force; investing in increased lethality and modernization; continuing
readiness recovery progress; and achieving significant reform savings with divestments andbetter resource alignment.
The Department continues to aggressively work to accelerate development and fielding of newconcepts, technologies, and capabilities that offer the potential to evolve the force mix to be morelethal, cost imposing, and affordable.
This budget request will deliver a larger more ready and more lethal force in FY 2021 as comparedto the force we have today.

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DEPARTMENT OF THE AIR FORCE
Discretionary Budget Authority in Thousands

Department of the Air Force Base + OCO+Emergency
Military Personnel
Operation and Maintenance
Procurement
RDT&E
Military Construction
Family Housing
Revolving and Management Funds
Total Department of the Air ForceFY 2020
EnactedFY 2021
Request40,252,539
63,802,021
49,996,731
45,432,153
5,400,705
429,847
92,499205,406,495

42,809,274
65,902,610
48,993,405
47,724,725
1,227,554
414,235
95,712
207,167,515

Δ
FY 2020 – FY
2021
+2,556,735+2,100,589-1,003,326+2,292,572-4,173,151-15,612+3,213+1,761,020

Numbers may not add due to rounding

Introduction
The security environment continues to change in dangerous ways, China and Russia continue toemploy aggressive tactics to coerce neighbors, suppress dissent, and undermine freedom. They
present existential challenges to United States interests and global norms. In addition, Iran andNorth Korea continue to threaten our friends and pursue weapons of mass destruction. Violent
extremists around the globe continue to threaten and perpetrate indiscriminate violence to support
their nefarious aims.
The Department of the Air Force must continue to change in order to counter this toxic mix. With
the NDS as our guide, the Department of the Air Force—now consisting of two co-equal services:
the United States Space Force and the United States Air Force—is changing rapidly. In FY 2021,
to achieve the goals of the NDS, the Department will pursue an integrated design and field
modernized forces that can connect with the Joint Force, dominate space, generate combat
power, and conduct logistics under attack. As we change to meet the future, the Department willcontinue to provide the Joint Force with ready forces and critical capabilities to conduct Nuclear
Deterrence, Homeland Defense, and Counter Violent Extremist Organization (CVEO).
Additionally, this budget continues to Develop and Care for our People and Their Families.
Connect with the Joint ForceModern warfare is inherently multi-domain, and sois the Department of the Air Force. Conflicts are
not limited to the air or space or land or sea; rather,
they involve engagement and effects across manyor all warfighting domains, simultaneously. To
prevail, the future Joint Force must be prepared to
employ through All-Domain Operations.
The most important capability the Department of the
Air Force can deliver to help the Joint Force achieve
multi-domain operations is to connect disparate
forces into a much more seamless whole. The key
to this effort is Joint All-Domain Command and Control (JADC2) which brings the Joint Force
together and allows a convergence of combat power. DoD is standing up a JADC2 Cross
Functional Team (CFT), co-chaired by Joint Staff J6 and DoD CIO, to deliver JADC2 capabilities.
Our Department budget includes $435 million to develop the network, connectivity, andinfrastructure for this critical capability. We are working with the CFT, other Departments and
CHAPTER 9

MILITARY DEPARTMENTS
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Overview – FY 2021 Defense Budget
Services to ensure our efforts fuse into a holistic framework and support our common and open
architecture efforts.
Success in modern warfare requires a solid digital infrastructure backbone that we do not have
today. Department-level investments in the Digital Air Force initiative set the foundation for the
future networked Air, Space, and Joint forces. We have begun the transition from in-housecommunications networks to an Enterprise Information Technology as a Service framework,
leveraging the best-practices of industry while allowing Air and Space professionals to focus moreon warfighting and less on maintenance of our networks.
The ability to exploit volumes of data is essential, so the Department is pursuing machine learningand artificial intelligence technology, which will increase understanding of, and ability to act upon,
the information we have. This technology is already engaged in maintenance and supply systems
to better predict and mitigate shortfalls and chokepoints. The Department will also harness thesecapabilities to reduce the time required to prosecute targets in the battlespace, allowing Joint
forces to execute thousands of kill chains in hundreds of hours. This will facilitate the transition
from humans in the loop for all decisions to having humans on the loop, overseeing but not slowing
processes, as we observe, orient, decide, and act faster than our adversaries – decision
advantage to win.
Dominating SpaceOn December 20, 2019, the President andCongress established the United States Space
Force as the newest branch of the Armed
Forces, a historic milestone for our nation andthose who defend it. The United States Space
Force will unify, focus, and accelerate thedevelopment of doctrine, capabilities, andexpertise to outpace future threats. The Space
Force is already establishing headquartersfunctions and structural organization for theSpace Force on an aggressive timeline. Most
importantly, it will pursue a Space Superiority
Strategy to ensure we can protect, defend, and,if necessary, fight in through, and from the space domain.
This budget submission includes investments necessary to build a Space Force capable ofexecuting the elements of this strategy. First, we will protect and defend the highly-capable
satellite systems that are not easily replaced while designing new ones capable of defending
themselves. Second, we will develop a broad range of options and capabilities to respond if ournational security space capabilities are threatened. Third, the Space Force will field robust andresilient space systems with a diverse architecture that will make it increasingly difficult foradversaries to benefit from an attack. Fourth, we will confuse and complicate our adversaries’
decision calculus through unpredictability. Preserving U.S. and allied decision advantage
enhances deterrence and ensures the survivability of national security space capabilities.

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Overview – FY 2021 Defense Budget
Generate Combat PowerTo prevail in future conflict, the Joint force must
be able to generate sufficient combat power toblunt an attack against the U.S. or its allies.
Capacity will matter in peer conflict, and theDepartment will contribute warfighting capacity
to the Joint force. We will continue to pursue
advanced technologies and incorporate these
into our weapons and platforms, including
hypersonics, directed energy, optionallymanned systems, mass weapon payload
systems, and advanced space capabilities.
These future capabilities will complement
existing systems to allow us to achieve effects
against enemy targets, kinetically or non-kinetically, in all domains, at unmatched speed andscale.
One example of a new way of generating combat power is the fighter force. This budget invests$1.0 billion in the Next-Generation Air Dominance program which seeks to leverage bestpractices from existing technologies while developing systems to integrate legacy and future
platforms into the networked, multi-domain Joint force with a mix of manned, unmanned, andoptionally-manned aircraft.
Secure Logistics Under Attack
Today, American forces are extremely efficient in moving people, materiel, and weapon systems
across the globe to fight from a small number of forward operating bases with well-developed
infrastructure. Future battlefields will be too dangerous, dynamic, and dispersed to allow us tofight this way. The ability to deliver logistics to the
Joint warfighter will be under attack, so we must
be prepared to move to win.
The Department of the Air Force will invest in
forward-based stocks to enable forces to move
rapidly and join their support at forward locations.
These locations will vary in size, setup, andsecurity, so we must be prepared to move toprotect our forces and make it difficult for enemies
to target them.
Logistics will need to be lean and agile, allowing
us to rapidly move material within a theater. As wereinvent logistics, the Department is investing in
future transportation platforms and autonomous logistics capabilities. We will also continue efforts
to develop and field future vertical lift to move smaller amounts of equipment quickly to many
more places than in the past. In addition to developing future capabilities, we will continue
investing in our existing and modernized mobility aircraft fleets. The Joint force will depend on
the KC-46 to provide force extension and power projection. This budget continues therecapitalization of the tanker fleet with the procurement of 15 KC-46 aircraft.

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Overview – FY 2021 Defense Budget
Nuclear Deterrence
Our nuclear forces allow the nation to take risks that we could not otherwise afford in this era ofGreat Power Competition. This need is even more critical today, due to on-going evolution andfielding of other countries’ strategic nuclear capabilities, including hypersonic weapons, which
continue to challenge U.S. and allied security. As the steward of two-thirds of the triad and75 percent of the Nuclear Command, Control, and Communications, the Department of the Air
Force is investing now across the entire spectrum of the Department’s nuclear capabilities in orderto maintain a credible and effective deterrent in the future.
Next Generation Overhead Persistent Infrared (OPIR) system constitutes a survivable
modernized missile warning constellation. The FY 2021 budget continues our investment in the
Next-Gen OPIR to remain on schedule. Our budget request includes research, development, andacquisition funds for the next generations of gravity and guided weapons to allow stand-off forces
to employ munitions when called upon. This budget invests $1.5 billion in developing the GroundBased Strategic Deterrent which is a modern, sustainable design to ensure the Nation will
maintain its most responsive leg of the nuclear triad well into the 21st century.
Our nuclear-capable bomber force represents the most responsive leg of the nuclear triad. The
Air Force’s future bomber, the B-21 Raider, is maturing on schedule and on cost, and we expect
the first flight of a production aircraft in FY 2021 or shortly thereafter. The Raider will be thebackbone of our future nuclear-capable bomber fleet, and we are committed to fully funding the
program in its current development phase to maintain our aggressive and critical timeline forbringing it online.
In addition to new delivery systems, we must also modernize the weapons they carry. Our budget
request includes research, development, and acquisition funds for the next generations of gravity
and guided weapons to allow stand-in and stand-off forces to employ munitions when called upon.
Homeland Defense
At its most fundamental level, the entire Department of Defense exists to defend the American
Homeland and our way of life. As such, the mission of the United States Air Force to defend thehomeland must be fully funded if the Department is to faithfully execute this charge. We must
invest in the forces which stand ready, 24/7, to fly, fight, and win against any foe who would
challenge the United States’ territorial sovereignty.
This mission necessitates the use of our mostadvanced capabilities. The Department willcontinue upgrading limited numbers of existing
aircraft fleets to include modernizing the radars
in many F-16 aircraft. These updated legacy
aircraft will be complemented by new-build F15EX aircraft which are significantly morecapable and cost-effective than the F-15Cs they
will replace.
Defense of the homeland also involves defeating
malicious online threats and we must counter
direct aggression as well as indirect sources ofinfluence. The Department’s cyber warriors are constantly at work, under the newly-reactivated
16th Air Force, to “Defend Forward” with actions to deter adverse action and defend friendly
networks and information.

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Overview – FY 2021 Defense Budget
Counter Violent Extremism
The CVEO is a critical and complex mission that requires interagency and international
cooperation. To better align with the NDS, the Department is moving away from aircraft andcapabilities which are only of use in uncontested environments toward robust, scalable, andsurvivable systems.
Our budget right-sizes our legacy Intelligence, Surveillance andReconnaissance (ISR) assets while maintaining capacity during the transition to better align with
the NDS. Learning from our Light Attack experiment, we will now focus on developing the tactics,
techniques, and procedures which will allow for the use of these aircraft to build partner capacity
and help foreign forces combat VEOs in their own homelands.
Develop and Care for Our People and Their Families
Our platforms and systems may be the best in
the world, but our most valuable assets are thepeople who develop, operate, and maintainthem. We have grown our force over the last
three budget years on our way to a necessary
end-strength of 333,700 active and 697,500 total
personnel: a Total Force of Active Duty, Guard,
Reserve, and Civilian Airmen and Space
Professionals.
Our FY 2021 budget adds
900 additional active duty Airmen in F-35A andrefueling operations, maintenance, and combat
support to improve readiness and increaselethality by reinforcing the Air Force's
foundational fighting formation, the squadron.
Additionally, the FY 2021 budget resources supports 10,000 civilian and military billets for theSpace Force.
Part of caring for our Airmen and their families is providing a safe, secure environment for themto live and work. There have been numerous challenges with military privatized housing, and wehave invested considerable resources into addressing these issues. This budget continues
investments into the personnel required to provide proper oversight of our project owners andadvocacy for our residents.
Suicide and sexual assault continue to be insidious threats to our force. We will continue to devoteresources and invest in programs, such as the True North initiative, which are designed toincrease resiliency and connectedness among our forces.
Conclusion
The Department of the Air Force FY 2021 budget is designed to meet both today’s and tomorrow’s
challenges by sustaining our readiness and investing in leading-edge innovation to operate andwin in both the contested and uncontested environments. This more lethal and ready force will
dominate Air, Space, and Cyberspace and enable the Joint force to detect, deter, and defeat any
threat, in any domain, faster than any adversary can act. With this budget the Department
supports irreversible implementation of the NDS.

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MILITARY DEPARTMENTS
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10. PERFORMANCE PLAN AND ANNUAL PERFORMANCE REPORT
Introduction and Executive Summary
The National Defense Strategy (NDS) articulates the Department’s strategy to compete, deter,
and win in an increasingly complex security environment. The FY 2018 – FY 2022 National
Defense Business Operation Plan (NDBOP) directly contributes to NDS implementation andfocuses on improving the Department’s business operations and support for the Secretary’s threemajor lines of effort:
1. Rebuilding military readiness as we build a more lethal Joint Force;
2. Strengthening alliances as we attract new partners; and,3. Reforming the Department’s business practices for greater performance and affordability
The strategic objectives in the NDBOP are drawn from the NDS, as well as input from all DoD
Components. Additionally, the objectives are also influenced by initiatives in the President’s
Management Agenda (PMA), and recommendations from the Government Accountability Office(GAO), and the DoD Inspector General (IG).
Each year the Department publishes an Annual Performance Plan (APP) that provides detailed
information on strategic goals and objectives, performance goals and measures with targets
and/or milestones that support performance goals for the upcoming fiscal year, and an Annual
Performance Report (APR), which documents component results and measures implementation
progress for the previous fiscal year. The unclassified APP and APR are available at:https://cmo.defense.gov/Publications/Annual-Performance-Plan-and-Performance-Report/. The
classified APP and APR maybe available upon request.
The Chief Management Officer (CMO) is responsible for delivery of optimized Defense-wide
Enterprise Business Operations and shared services to assure the success of the NDS. The
Office of the Chief Management Officer (OCMO) is an integral player and change agent in the
Department, especially in terms of improving the affordability and performance of the DoD, inaccordance with the NDS’s third line of effort. The CMO drives transformational and sustainable
reform of Enterprise Business Operations throughout the Department with a focus on simplifying
business processes and maximizing the use of shared services and enterprise Information
Technology, while eliminating duplication.
Enterprise Performance Management“We have a responsibility to gain full value from every taxpayer dollar spent on
defense; thereby earning the trust of Congress and the American people.”- National Defense Strategy

The Department is a performance-based organization committed to using performance data todrive decision-making and improve business operations. The Department is committed toestablishing consistent performance measures and definitions to benchmark performance andincrease accountability. Leaders at all levels throughout the Department are responsible formeeting the performance goals and measures set out in the APP that relate to their functional
areas. Additionally, the APP performance goals and measures are used to inform criticalelements of senior executive performance plans in order to empower leaders to focus onachieving measurable outcomes that align with the NDS and NDBOP (see Figure 10.1).

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Overview – FY 2021 Defense Budget
In addition to the APP performance goals and measures, the Department employs hundreds ofother performance measures to help assess progress in key areas such as reform, acquisition
performance, military readiness, audit remediation, and business process improvement.
Together, these datasets help DoD management monitor the entire breadth and scope of the
Department’s worldwide responsibilities and guide the effective and efficient use of resources.
This performance information supports multiple decision-making and accountability efforts suchas Deputy Secretary and Secretary of Defense Management decisions, budget justification
exhibits, and a wide range of reports to the Congress to facilitate proper legislative oversight.
Figure 10.1 is a high level depiction of how performance measure results drive the evaluation ofsenior executive performance.
Figure 10.1 – DoD Performance Measurement and Evaluation Process

Looking Back (APR Overview)
The Department made significant progress conducting the Defense Wide Review (DWR) acrossthe DAFAs and other organizations to reinvest in innovation and warfighting requirements.
Additionally, the Department was successful in meeting or exceeding many of the priority
measures for FY 2019, including those related to achieving efficiencies, effectiveness and costsavings, audit readiness, and improving the quality of the Department’s business operations.
Below is a brief overview of some of the Department’s reform accomplishments.

CHAPTER 10PERFORMANCE PLAN AND ANNUAL PERFORMANCE REPORT
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Overview – FY 2021 Defense Budget
DoD Financial Audit

Key Audit Take Aways:

The DoD audit aligns with the strategic goals of the
NDS, including reforming the Department for greater
performance and accountability. The DoD annual
financial statement audit comprises of 24 standalone
audits and one consolidated audit conducted by the
DoD OIG. Six organizations received unmodified(clean) opinions, the highest grade; one received aqualified (modified) opinion, which means that data isright with some exceptions, and one is pending an
opinion. Opinion for the DoD OIG is ongoing. All otherreporting entities received a disclaimer of opinion,
which means the auditors did not have enoughevidence to provide an opinion.

•

Defense Commissary Agency
progressed from a modified
opinion for FY 2018 to an
unmodified opinion for FY 2019.

•

Military Departments madesignificant progress in validating
the existence and completenessof real property.

•

Components were betterprepared and responsive to audit
requests and site visits..

IT & Business Systems
To date, the team programmed and budgeted combined savings of over $250 million in FY 2019
through commercial IT solutions in business travel, department-wide network management, andby working with Defense Information System Agency (DISA) and the MilDeps to close duplicative
data centers. In addition, the team submitted a funding realignment issue to reclaim $96.3 million
in underutilized software licenses Department-wide to fund an enterprise wide real-time endpoint
monitoring capability.
Other accomplishments include capturing and redirecting seven acquisition Request for
Proposals (RFPs) for services that the USALearning contract currently provides, savings of over
$25 million in unnecessary procurement actions. The team facilitated the DoD award of a pilot
program that saves more than 10 million labor hours annually on the process of booking travel bymore than two million Active Duty, Reserve, and Civilian personnel.
The DoD is centralizing Fourth Estate common use IT through network, cybersecurity, and service
desk consolidation. The initial consolidation efforts include 22 Fourth Estate organizations, withthe objective to reduce the number of networks, cybersecurity operations centers, and service
desks for greater efficiency and effectiveness.
Regulatory Reform
The DoD Regulatory Reform Task Force met on a bi-weekly basis to review the existing 716 DoD
regulations and make recommendations to the Secretary or Deputy Secretary of Defense
regarding their repeal, replacement, or modification, with a goal of reducing the Department’s
existing regulations by 25 percent. The Task force completed the review phase by December 31,
2018. DoD is now in the implementation phase. The Task Force continues to meet on a quarterlybases for implementation and regulatory program updates. It is estimated that the implementation
phase will take three to five years.
Contracting and Category Management
Category Management refers to the business practice of buying common goods and services as
an enterprise to eliminate redundancies, increase efficiency, and deliver more value and savings
from the Government’s acquisition programs. Category Management develops and uses
business intelligence for data-driven decisions to improve cost, capability and compliance of theacquisition of common goods and services. Category Management drives efficiencies andsavings through rate, process and demand improvements. Enterprise Data Management assures
CHAPTER 10PERFORMANCE PLAN AND ANNUAL PERFORMANCE REPORT
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Overview – FY 2021 Defense Budget
the availability of common, usable, defense-wide data sets that enables enterprise-wide business
management. The Department’s cost data, coupled with commercial reference data, support
Category Management to better leverage DoD’s buying power, inform make/buy and othermanagement decisions. The Department will evaluate $180 billion in spend over 33 months
through a series of “sprints.”
In FY 2019, the Department implemented the first sprint to evaluate spend in various categories
and identify cost savings opportunities. To date, Sprint 1 has $1.02 billion in savings. Sprint 2
has $193 million in savings, with savings in 4 of 19 projects still under review, and Sprint 3
concluded August 2019 with an implementation plan to follow.
Healthcare
DoD transitioned eight Military Treatment Facilities (MTFs) to the authority, direction and controlof the DHA in FY 2019. In October 2019, DHA assumed control over all MTFs in the United States,
along with those in Alaska, Hawaii, and Puerto Rico. Services will provide direct support to the
DHA as it develops itsheadquarters management capability to ensure that operations continue inan efficient and effective manner. Central to DHA headquarters capability growth will be
realignment of civilian personnel from the Services to the DHA. Efforts to continue enterpriseconsolidation of purchased services, specialty care, revenue cycle management, medical
logistics, laboratory, pharmacy, and facilities will continue in FY 2021. The Department continued
review of the total medical force structure requirements and has included the revised reductions
to medical force structure in the FY 2021 President’s Budget.
Human Resources
Overall, FY 2019 time to hire (TTH) days decreased 5 percent from FY 2018 (99 days to 94).
Specifically, however, TTH days steadily declined during FY 2019 and ended at 87 days in the
fourth quarter, only two days (2.35 percent) above the 85-day target. Increased Direct Hire
Authority usage and PPP streamlining initiatives supported the improvement.
Defense Logistics Agency
The Defense Logistics Agency (DLA) achieved $84 million in cost avoidance to the Department
in FY 2019 from efficiencies implemented through consolidation of Industrial Supply, Storage andDistribution functions. DLA realized $25 million in savings in FY 2019 through the Whole ofGovernment initiative, which expanded support to Veteran’s Affairs, General Services
Administration (GSA), and the US Coast Guard, increasing DLA’s buying power
Looking Forward (APP Overview)

The CMO focuses transformation and reform on three main priorities – people,
processes and technology.
Continuous Reform in Action
The DoD is actively identifying opportunities to make the Department a smartercustomer and more effective enterprise through:1.

Improved maintenance and sustainment of America's warfighting capability;

2.

Reduced overhead to enhance lethality;

3.

Greater enterprise-wide efficiencies; and4.

Increased performance at the speed of relevance.

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Overview – FY 2021 Defense Budget
Continuous reform is realizing operational and financial benefits through assessment andinnovation in the lines of business. Business reform activity continues to mature as efforts tocreate efficiencies show progress. The evaluation framework implemented by the Reform
Management Group to identify and evaluate areas for reform will become the basis for futurereform activities.
Enterprise Data
The OCMO established a Chief Data Officer (CDO), who is tasked with meeting the
responsibilities of the FY 2018 NDAA, by expanding the Department's data analytics capabilities
to drive the success of today's initiatives, and ensure that the Department is positioned for the
future. The Director of the Data Insights Directorate is the Chair of the Data Management andAnalytics Steering Committee, which is a governance forum for Data Management and Analytics
within the Department.
The OCMO will continue to extract and analyze data to support business reform and lead pilot
programs to extract Common Enterprise Data from relevant systems, and analyze that data to
generate operational insights that answer critical business questions from Defense executives
and leaders. These pilots will evolve into a Data Management and Analytics Shared Services forthe purposes of supporting enhanced oversight and management of the Defense Agencies and
DoD Field Activities, by September 30, 2020.
Transformation
The OCMO is charged with establishing policies for, and directing, all enterprise business
operations of the Department, including planning and processes, business transformation,
performance measurement and management, and business information technology management
and improvement. The Transformation directorate continues to lead reform efforts to improveenterprise business operations across the Department, establishing a culture of continuous
improvement focused on results and accountability. The Transformation directorate serves as
the Executive Secretariat for the Reform Management Group (RMG) and maintains the rigor andoversight of reform initiatives and decisions impacting the Department’s business operations.

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CHAPTER 10PERFORMANCE PLAN AND ANNUAL PERFORMANCE REPORT
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APPENDIX A: RESOURCE EXHIBITSTable A-1. DoD Total (Base + OCO + Emergency) Budget by Appropriation Title($ in millions)
Total Budget

FY 2020*

FY 2021

154,749
289,597
143,754
104,485
1,818
694,403
16,723
1,465
18,188712,591

Military Personnel
Operation and Maintenance
Procurement
RDT&E
Revolving and Management Funds
Defense Bill
Military Construction
Family Housing
Military Construction Bill
TOTAL
Source: Comptroller Information System*FY 2020 reflects enacted.

163,499
288,921
136,884
106,555
1,369
697,229
6,812
1,351
8,163
705,392

Δ
FY20-21+8,750-676-6,870+2,070-449+2,826-9,911-114-10,025-7,199Numbers may not add due to rounding.

Table A-2. DoD Total (Base + OCO + Emergency) Budget by Military Department($ in millions)
Total Budget

FY 2020*

FY 2021

178,387
209,000
205,406
119,797
712,591

Army
Navy
Air Force
Defense-Wide
TOTAL
Source: Comptroller Information System*FY 2020 reflects enacted.

177,925
207,073
207,168
113,227
705,392

Δ
FY20-21-462-1,927+1,762-6,570-7,199Numbers may not add due to rounding.

Table A-3. DoD Total (Base + OCO + Emergency) Budget by Military Department
and Appropriation Title ($ in millions)
Department of the Army
BudgetFY 2020*
62,63875,04725,401
12,540
1,964
549
248
178,387

Military Personnel
Operation & Maintenance
Procurement
RDT&E
Military Construction
Family Housing
Revolving and Management Funds
ARMY TOTALAPPENDIX A

FY 202165,51572,987
24,948
12,7701,142
487
77
177,925Δ
FY20-21+2,877-2,060
-453
+230
-822
-62
-171
-462

RESOURCE EXHIBITS
A-1

Overview – FY 2021 Defense Budget
Department of the Navy
BudgetFY 2020*

FY 202151,85868,002
61,55920,219
6,704
425
234
209,000

Military Personnel
Operation & Maintenance
Procurement
RDT&E
Military Construction
Family Housing
Revolving and Management Funds
NAVY TOTAL
Department of the Air Force
BudgetFY 2020*

FY 2021

40,25363,802
49,99745,4325,401
430
92
205,406

Military Personnel
Operation & Maintenance
Procurement
RDT&E
Military Construction
Family Housing
Revolving and Management Funds
AIR FORCE TOTAL
Defense-Wide
Budget55,17570,602
57,17721,4872,242
389-207,073

FY 2020*42,80965,903
48,99347,7251,228414
96207,168

FY 2021Δ
FY20-21+3,317+2,600-4,382+1,268-4,462-36-234-1,927Δ
FY20-21+2,556+2,101-1,004+2,293-4,173-16+4+1,762Δ
FY20-21

Military Personnel
Operation & Maintenance
Procurement
RDT&E
Military Construction
Family Housing
Revolving and Management Funds
DEFENSE-WIDE TOTAL-82,747
6,798
26,293
2,655
61
1,244
119,797-79,430
5,765
24,574
2,201
61
1,196
113,227--3,317-1,033-1,719-454--48-6,570

DEPARTMENT OF DEFENSE TOTAL

712,591

705,392-7,199Source: Comptroller Information System*FY 2020 reflects enacted.

Numbers may not add due to rounding.

APPENDIX ARESOURCE EXHIBITS
A-2Overview – FY 2021 Defense Budget

Table A-4. Combat Force Structure Overview
Service

FY 2020Delta

FY 2021

FY20- FY21

Army Active
Brigade Combat Teams (BCT)

31

31

-

Combat Aviation Brigades (CAB)

11

11

-

BCT

27

27

-

CAB

8

8

-

Theater Aviation Brigades (TAB)

2

2

2

2

-

Number of Ships

297

306

+9

Carrier Strike Groups

10

10

-

Marine Expeditionary Forces

3

3

-

Infantry Battalions

24

24

-

Marine Expeditionary Forces

-

-

-

Infantry Battalions

8

8

-

40

40

-

4,127

4,155

+28

3

3

-

328

322

-6

21

21

-

1,043

1,010

-33

Army National Guard

Army Reserve
CAB
Navy

Marine Corps Active

Marine Corps Reserve

Air Force Active
Combat Coded Squadrons
Aircraft Inventory (TAI)
Air Force Reserve
Combat Coded Squadrons
Aircraft Inventory (TAI)
Air National Guard
Combat Coded Squadrons
Aircraft Inventory (TAI)

APPENDIX ARESOURCE EXHIBITS
A-3

Overview – FY 2021 Defense Budget

Table A-5. Active Component End Strength (in Thousands)
FY 20201

Service

FY 2021

485.0
342.5
184.7
333.8
38
1,346.0

Army
Navy
Marine Corps
Air ForceSpace Force2
TOTAL
1FY 2020 reflects projected end strength levels.

485.9
347.8
184.1
327.3
6.4
1,351.5

Delta
FY20 – FY21
+0.9
+5.3
-0.6
-6.6
+6.4
+5.5

Numbers may not add due to rounding.

2FY 2020 Space Force end strength included in Service numbers (non-add)

Table A-6. Reserve Component End Strength (in Thousands)
FY 20201

Service

189.5
60.2
38.5
70.1
336.0
107.7
801.9

Army Reserve
Navy Reserve
Marine Corps Reserve
Air Force Reserve
Army National Guard
Air National Guard
TOTAL
1FY 2020 reflects projected end strength levels.

FY 2021
189.8
58.8
38.5
70.3
336.5
108.1
802.0

Delta
FY20 – FY21
+0.3
-1.4
+0.0
+0.2
+0.5
+0.4
+0.1

Numbers may not add due to rounding.

Table A-7. DoD Base Budget by Appropriation Title ($ in millions)Base Budget

FY 2020*150,263
234,885
131,734
103,520
1,564
621,966
9,850
1,465
11,315633,281

Military Personnel
Operation and Maintenance
Procurement
RDT&E
Revolving and Management Funds
Defense Bill
Military Construction
Family Housing
Military Construction Bill
TOTAL
Source: Comptroller Information System*FY 2020 reflects enacted.

FY 2021
158,897
230,352
131,756
106,225
1,349
628,578
6,462
1,351
7,814
636,392

Δ
FY20-21+8,634-4,533+22+2,705-215+6,612-3,388-114-3,501+3,111

Numbers may not add due to rounding.

APPENDIX ARESOURCE EXHIBITS
A-4Overview – FY 2021 Defense Budget

Table A-8. DoD Base Budget by Military Department ($ in millions)Base Budget

FY 2020*
146,824
192,770
184,639
109,048
633,281

Army
Navy
Air Force
Defense-Wide
TOTAL
Source: Comptroller Information System*FY 2020 reflects enacted.

FY 2021150,225
194,058
185,635
106,474
636,392

Δ
FY20-21+3,401+1,288+996-2,574+3,111

Numbers may not add due to rounding.

Table A-9. DoD OCO Budget by Appropriation Title ($ in millions)
OCO Budget

FY 20201

Military Personnel
Operation and Maintenance
Procurement
RDT&E
Revolving and Management Funds
Defense Bill
Military Construction
Family Housing
Military Construction Bill
TOTAL

4,486
53,735
11,590834
2070,665645-645
71,310FY 20212
4,603
58,5695,128
331
20
68,650350-350
69,000Δ
FY20-21+117+4,834-6,462-503--2,015-295--295-2,310Source: Comptroller Information System
Numbers may not add due to rounding.
1. P.L. 116-93 (Consolidated Appropriations Act, 2020) and P.L. 116-94 (Further Consolidated Appropriations Act,2020)
2. $20.5B for direct war requirements, $32.5B OCO for Enduring Requirements, and $16.0B OCO for Base
Requirements

Table A-10. DoD OCO Budget by Military Department ($ in millions)
OCO Budget

FY 20201
31,448
11,42017,77010,672
71,310Army
Navy
Air Force
Defense-WideTOTAL

FY 20212
27,70013,015
21,533
6,753
69,000Δ
FY20-21-3,748+1,595+3,763-3,919-2,310Source: Comptroller Information System
Numbers may not add due to rounding.
1. P.L. 116-93 (Consolidated Appropriations Act, 2020) and P.L. 116-94 (Further Consolidated Appropriations Act,2020)
2. $20.5B for direct war requirements, $32.5B OCO for Enduring Requirements, and $16.0B OCO for Base
Requirements

APPENDIX ARESOURCE EXHIBITS
A-5

Overview – FY 2021 Defense Budget

Table A-11. DoD Emergency Budget by Appropriation Title ($ in millions)
Emergency Budget

FY 2020*

Military Personnel
Operation and Maintenance
Procurement
RDT&E
Revolving and Management Funds
Defense Bill
Military Construction
Family Housing
Military Construction Bill
TOTAL

Δ
FY20-21

FY 2021

-977
431
130
234
1,771
6,229
-6,2298,000-----------

--977
-431
-130
-234
-1,771-6,229--6,229-8,000Source: Comptroller Information System
Numbers may not add due to rounding.
*Natural disaster relief for Hurricanes Michael and Florence per P.L. 116-93 (Consolidated Appropriations Act, 2020)and P.L. 116-94 (Further Consolidated Appropriations Act, 2020)

Table A-12. DoD Emergency Budget by Military Department ($ in millions)
Emergency Budget

FY 2020*
115
4,810
2,998
77
8,000

Army
Navy
Air Force
Defense-Wide
TOTAL

Δ
FY20-21

FY 2021-------115-4,810-2,998-77-8,000Source: Comptroller Information System
Numbers may not add due to rounding.
*Natural disaster relief for Hurricanes Michael and Florence per P.L. 116-93 (Consolidated Appropriations Act, 2020)and P.L. 116-94 (Further Consolidated Appropriations Act, 2020)

Table A-13. DoD Base Budget by Military Department and Appropriation Title($ in millions)
Department of the Army
BudgetFY 2020*
59,65850,23921,975
12,393
1,783
549
228
146,824

Military Personnel
Operation & Maintenance
Procurement
RDT&E
Military Construction
Family Housing
Revolving and Management Funds
ARMY TOTALAPPENDIX A

FY 202162,53850,87522,555
12,5871,126
487
57
150,225Δ
FY20-21+2,880
+636
+580
+194
-657
-62
-171
+3,401RESOURCE EXHIBITS
A-6Overview – FY 2021 Defense Budget
Department of the Navy
BudgetFY 2020*
51,38257,26760,63919,924
3,132
425-192,770

Military Personnel
Operation & Maintenance
Procurement
RDT&E
Military Construction
Family Housing
Revolving and Management Funds
NAVY TOTAL
Department of the Air Force
BudgetFY 2020*
39,22353,12644,06145,3042,404
430
92
184,639

Military Personnel
Operation & Maintenance
Procurement
RDT&E
Military Construction
Family Housing
Revolving and Management Funds
AIR FORCE TOTAL
Defense-Wide
BudgetFY 2020*

Military Personnel
Operation & Maintenance
Procurement
RDT&E
Military Construction
Family Housing
Revolving and Management Funds
DEFENSE-WIDE TOTAL-74,254
5,060
25,899
2,531
61
1,244
109,048

BASE TOTAL

633,281

Source: Comptroller Information System*FY 2020 reflects enacted.

FY 202154,64958,76956,651
21,4272,172
389-194,058

FY 202141,70947,69047,04347,719964
414
96185,635

FY 2021Δ
FY20-21+3,267+1,502-3,988+1,503-960-36-+1,288

Δ
FY20-21+2,486-5,436+2,982+2,415-1,440
-16
+4
+996

Δ
FY20-21-73,018
5,506
24,491
2,201
61
1,196
106,474--1,236+446-1,408-330--48-2,574

636,392+3,111

Numbers may not add due to rounding.

APPENDIX ARESOURCE EXHIBITS
A-7

Overview – FY 2021 Defense Budget

Table A-14. DoD OCO Budget by Military Department and Appropriation Title($ in millions)
Department of the Army
BudgetFY 20201
2,981
24,762
3,426
147
112
-20
31,448

Military Personnel
Operation & Maintenance
Procurement
RDT&E
Military Construction
Family Housing
Revolving and Management Funds
ARMY TOTAL
Department of the Navy
BudgetFY 20201
476
9,914
772
164
95
--11,420

Military Personnel
Operation & Maintenance
Procurement
RDT&E
Military Construction
Family Housing
Revolving and Management Funds
NAVY TOTAL
Department of the Air Force
BudgetFY 20201
1,030
10,566
5,654
128
392
--17,770

Military Personnel
Operation & Maintenance
Procurement
RDT&E
Military Construction
Family Housing
Revolving and Management Funds
AIR FORCE TOTALAPPENDIX A

FY 20212
2,977
22,112
2,393
183
16
-20
27,700FY 20212
526
11,833526
60
70--13,015

FY 20212
1,100
18,213
1,951
5
264--21,533

Δ
FY20-21-4-2,650-1,033+36-96---3,748
Δ
FY20-21+50+1,919
-246
-104
-25
--+1,595
Δ
FY20-21+70+7,647-3,703-123-128--+3,763

RESOURCE EXHIBITS
A-8

Overview – FY 2021 Defense Budget
Defense-Wide
BudgetFY 20201Δ
FY20-21

FY 20212

Military Personnel
Operation & Maintenance
Procurement
RDT&E
Military Construction
Family Housing
Revolving and Management Funds
DEFENSE-WIDE TOTAL-8,493
1,738
394
46--10,672-6,411258
83---6,753--2,082-1,480-311-46---3,919

OCO TOTAL

71,31069,000-2,310Source: Comptroller Information System
Numbers may not add due to rounding.
1. P.L. 116-93 (Consolidated Appropriations Act, 2020) and P.L. 116-94 (Further Consolidated Appropriations Act,2020)
2. $20.5B for direct war requirements, $32.5B OCO for Enduring Requirements, and $16.0B OCO for Base
Requirements

Table A-15. DoD Emergency Budget by Military Department and Appropriation
Title ($ in millions)
Department of the Army
BudgetFY 2020*
-46
--69
--115

Military Personnel
Operation & Maintenance
Procurement
RDT&E
Military Construction
Family Housing
Revolving and Management Funds
ARMY TOTAL
Department of the Navy
BudgetFY 2020*
-821
148
130
3,477
-234
4,810

Military Personnel
Operation & Maintenance
Procurement
RDT&E
Military Construction
Family Housing
Revolving and Management Funds
NAVY TOTALAPPENDIX A

Δ
FY20-21

FY 2021---------

--46
---69
---115Δ
FY20-21

FY 2021---------

--821
-148
-130
-3,477--234-4,810RESOURCE EXHIBITS
A-9Overview – FY 2021 Defense Budget
Department of the Air Force
BudgetFY 2020*-110
282-2,605--2,998

Military Personnel
Operation & Maintenance
Procurement
RDT&E
Military Construction
Family Housing
Revolving and Management Funds
AIR FORCE TOTAL
Defense-Wide
BudgetFY 2020*

Military Personnel
Operation & Maintenance
Procurement
RDT&E
Military Construction
Family Housing
Revolving and Management Funds
DEFENSE-WIDE TOTAL
EMERGENCY TOTAL

Δ
FY20-21

FY 2021---------

--110
-282
--2,605---2,998
Δ
FY20-21

FY 2021----77--77--------------77
---77

8,000

--

-8,000Source: Comptroller Information System
Numbers may not add due to rounding.
*Natural disaster relief for Hurricanes Michael and Florence per P.L. 116-93 (Consolidated Appropriations Act, 2020)and P.L. 116-94 (Further Consolidated Appropriations Act, 2020)

APPENDIX ARESOURCE EXHIBITS
A-10

Overview – FY 2020 Defense Budget

APPENDIX B: Acronym List
NOTE: This is not a comprehensive list of all acronyms used in the Overview.
Acronym
A2/AD
ABCTs
AC
ACE
ACEM
ADS
AEA
AEHF
AFC
AGCAS
AH
AHE
AI
AMDR
AMRAAM
AMS
ANDSF
AOR
APP
APR
ARGs
ARNG
ARRW
A&S
ASL
ASFF
AT&L
AUR
BACN
BBA
BCT
BMD
BRS
BSRF
C2BMC
C2C
C4I
CA
CABs
CAER

Definition
Anti-access, area denial
Armored Brigade Combat Teams
Active Component
Advanced Capability Enablers
Automated Continuous Endpoint Monitoring
authoritative data sources
Airborne Electronic Attack
Advanced Extremely-High Frequency
Army Future Command
automatic collision avoidance systems
Apache Helicopter
Advanced Hawkeye
Artificial Intelligence
Air and Missile Defense Radar
Advanced Medium Range Air-to-Air Missile
Army Modernization Strategy
Afghan National Defense and Security Forces
Area of Responsibility
Annual Performance Plan
Annual Performance Report
Amphibious Readiness Groups
Army Reserve/National Guard
Advanced Rapid Response Weapon
Acquisition and Sustainment
Army Senior Leaders
Afghanistan Security Forces Fund
Acquisition, Technology, and Logistics
All-Up RounSM-3
Battlefield Airborne Communications Node
Bipartisan Budget Act
Brigade Combat Team
Ballistic Missile Defense
Blended Retirement System
Black Sea Rotational Force
Command and Control, Battle Management and Communications
Comply to Connect
command, control, communications, computers, and intelligence
California
Combat Aviation Brigades
Command Accountability & Execution Review

APPENDIX BACRONYM LIST
B-1

Overview – FY 2020 Defense Budget
CAF
CAPs
CAPE
CCDR
CCLTF
CCMD
CCP
CDO
CE2
CE2T2
CENTCOM
CERP
CFTs
CG
CH
CIO
CIRCM
CJOC
CJTF
CJTF-HOA
CNS/ATM
CM
CMC
CMF
CMO
CNO
COD
CONUS
CPG
CPI
CPX
CR/SRR
CS/CSS
CSA
CSF
CSGs
CSO
CSSF
CT
CTC
CTEF
CV
CVEO
CVN

Combat Air Forcecorrective action plans
Cost Assessment and Program Evaluation
Combatant Commanders
Close Combat Lethality Task Force
Combatant Command
Cyber Campaign Plan
Chief Data Officer
Combatant Command Exercise and Engagement
Combatant Command Exercise and Engagement/ Training Transformation
Central Command
Commanders Emergency Response Program
Cross-Functional Teams
Guided Missile Cruiser
Chinook helicopter
Chief Information Officer
Common Infrared Countermeasures
Canadian Joint Operations Command
Combined Joint Task Force
Combined Joint Task Force-Horn of Africa
Communications Navigation and Surveillance/Air Traffic Management
Category Management
Commandant of the Marine Corps’
Cyber Mission Force
Chief Management Officer
Chief of Naval Operations
Carrier Onboard Delivery
Contiguous United States
Commandant’s Planning GuidanceContinuous Process Improvement
Command Post Exercise
Comprehensive Review / Strategic Readiness Review
combat service/combat service support
Combat Support Agencies
Coalition Support Fund
Carrier Strike Groups
Chief of Space Operations
Chief of Staff of the Space ForceCounterterrorism
Combat Training Center
Counter-ISIS Train and Equip Fund
Carrier Variant
combating violent extremists
aircraft carrier, fixed wing, nuclear powered

APPENDIX BACRONYM LIST
B-2

Overview – FY 2020 Defense Budget
CWMD
D5
D5LE
DAFA
DA/ULO
DATE
DCA
DCMO
DDG
DE
DEMSHORAD
DFE
DHA
DHMSM
DHP
DIB
DII
DISA
DIU
DLA
DMO
DoD
DOE/NNSADoDEADoD IGDoDIN Ops
DoN
DPO
D-RAPCON
DRRS
DSOC
DTF
DTRA
DW
DWR
EABO
ECI
EDI
EDRE
EELV
EMD
EPAWSSERPESSCountering Weapons of Mass Destruction
Trident II
Life Extension
Department of Defense Field Activities
Decisive Action in support of Unified Land Operations
Decisive Action Training Environment
Dual-Capable Aircraft
Defense Chief Management Officer
Destroyers
Directed Energy
Directed Energy Mobile Short-Range Air Defense System
Dynamic Force Employment
Defense Health Agency
Department of Defense (DoD) Healthcare Management System
Modernization Program
Defense Health Program
Defense Industrial Base
Defense Innovation Initiative
Defense Information Systems Agency
Defense Innovation Unit
Defense Logistics Agency
Distributed Maritime Operations
Department of Defense
Department of Energy/National Nuclear Security Administration
Department of Defense Education Activity
Department of Defense Office of the Inspector General
DoD Information Network Operations
Department of the NavyDistribution Process Owners
Deployable Radar Approach Control
Defense Readiness Reporting System
Defense Safety Oversight Council
Dental Treatment Facilities
Defense Threat Reduction Agency
Defense wide
Defense-Wide Review
Expeditionary Advanced Base Operations
Employment Cost Index
European Deterrence Initiative
Emergency Deployment Readiness
Evolved Expendable Launch Vehicle
Engineering and Manufacturing Development
Eagle Passive Active Warning Survivability System
Enterprise Resource Planning
Evolved Strategic SATCOM

APPENDIX BACRONYM LIST
B-3

Overview – FY 2020 Defense Budget
FEMO
FERS
FMS
FSRM
FTEs
FTX
FVL
FY
FYDP
FVL
GSA
GAO
GBI
GBSD
GCCs
GF
GFMAP
GPS
HD
HVAC
IBCS
IBCT
ICAM
ICBM
IG
IPA
IRBM
IRST
ISF
ISIS
ISR
IT
ITX
IVAS
IW
JADC2
JAIC
JASM-ERJASSM-ER
JCET
JCS
JDAM
JECC
JFSCC

Fourth Estate Management Office
Federal Employees Retirement System
Foreign Military Sales
Facilities Sustainment, Restoration, and Modernization
Full-Time Equivalents
field training exercise
future vertical lift
Fiscal Year
Future Years Defense Program
future vertical lift
General Services Administration
Government Accountability Office
Ground-Based Interceptors
Ground Based Strategic Deterrent
Geographic Combatant Commands
Green Flag
Global Force Management Allocation Plan
Global Positioning System
Homeland Defense
heating, ventilation, and air conditioning
Integrated Air and Missile Defense Battle Command System
Infantry Brigade Combat Team
Identity and Credential Access Management
Intercontinental Ballistic Missiles
Inspector General
Independent Public Accountant
Intermediate Range Ballistic Missiles
Infra-Red Search and Track
Iraqi Security Forces
Islamic State of Iraq and Syria
Intelligence, Surveillance, and Reconnaissance
Information Technology
Integrated Training Exercise
Integrated Visual Augmentation System
Irregular Warfare
Joint All-Domain Command and Control
Joint Artificial Intelligence Center
Joint Air-Surface Missile – Extended Range
Joint Air-to-Surface Standoff Missile-Extended Range
Joint Combined Exchange Training
Joint Chiefs of Staff
Joint Direct Attack Munition
Joint Enabling Capabilities Command
Joint Force Space Component Command

APPENDIX BACRONYM LIST
B-4

Overview – FY 2020 Defense Budget
JIDA
JITDF
JNWC
JTCP
JTEN
LCAC
LCS
LCU
LD/HD
LEP
LHD
LHA
LOCE
LPD
LPD
LRASM
LRPF
LRSO
LSCO
LVC
MAAWS
MAGTF
MAJCOM
MARFOREUR
MASTR-E
MC&FP
M-Code
MDA
MDD
MDC2
MDS
MDR
MDO
MEB
METL
MFGI
MHA
MHPI
MHS
MILCON
MILDeps
MILSATCOMMOD
MRBM

Joint Improvised-Threat Defeat Agency
Joint Improvised-Threat Defeat Fund
Joint Navigation Warfare Center
Joint Training Coordination Program
Joint Training Enterprise Network
Landing Craft Air Cushion
Littoral Combat Ship
Landing Craft, Utility
low-density, high-demandLife Extension Program
Landing Helicopter Dock
Landing Helicopter Assault
Littoral Operations in a Contested Environment
Landing Platform Dock
Landing Platform Dock
Long-Range Anti-Ship MissileLong-Range Precision FiresLong Range Stand-Off
Large Scale Combat Operations
Live, virtual, and constructive
Multi-Role Anti-Armor Anti-Personnel Weapon System
Marine Air Ground Task Forces
Major Command
Marine Forces Europe
Monitoring and Assessing Soldier Tactical Readiness and Effectiveness
Military Community and Family Policy
Military code
Missile Defense Agency
Missile Defeat and Defense
Multi-Domain Command and Control
Missile Defense System
Missile Defense Review
Multi-Domain Operations
Marine Expeditionary Brigade
Mission Essential Task List
Mobilization Force Generation Installation
Major DoD Headquarters Activities
Military Housing Privatization Initiative
Military Health System
Military Construction
Military Departments
Military SATCOM
Miscellaneous Obligation Document
Medium Range Ballistic Missiles

APPENDIX BACRONYM LIST
B-5

Overview – FY 2020 Defense Budget
MTF
MTX
MW
MWR
MyCAA
NATO
NC-3
NDAA
NDBOP
NDS
NFR
NGAD
NGCV
NG OPIR
NAGC
NGI
NGJ
NNSA
NMC
NMCM
NMCS
NORAD
NSDC
NSSL
NV
OCMO
OCO
OFS
OIF
OIG
OIR
OMB
O&M
OND
OPFOR
OPIR
O&S
OSC-I
OSD
OTI
P2P
PB
PCTE
PED

Military Treatment Facility
Mountain Exercise
material weaknesses
Morale, Welfare, and Recreation
My Career Advancement Accounts
North Atlantic Treaty Organization
Nuclear Command, Control and Communications
National Defense Authorization Act
National Defense Business Operations Plan
National Defense Strategy
Notices of Findings and Recommendations
Next Generation Air Dominance
Next Generation Combat Vehicle
Next-Generation Overhead Persistent Infrared
National Association of Government Communicators
Next Generation Interceptor
Next Generation Jammer
National Nuclear Security Administration
non-mission capablenon-mission capable status awaiting maintenancenon-mission capable supply
North American Aerospace Defense Command
National Space Defense Center
National Security Space Launch
NevadaOffice of Chief Management Officer
Overseas Contingency Operations
Operation Freedom’s Sentinel
Operation IRAQI FREEDOM
Office of the Inspector General
Operation Inherent Resolve
Office of Management and Budget
Operation & MaintenanceOperation NEW DAWN
Opposing Forces
Overhead Persistent Infrared
Operation and Sustainment
Office of Security Cooperation - Iraq
Office of the Secretary of Defense
Operational Training Infrastructure
Performance to Plan
President's Budget
Persistent Cyber Training Environment
processing, exploitation, and dissemination

APPENDIX BACRONYM LIST
B-6

Overview – FY 2020 Defense Budget
PEO
POD
POTFF
PMA
PNT
PR
Q2
Q3
Q4
R2F
RA
RC
RDA
RDT&E
R&E
RF
RFI
RFP
RKV
RMG
ROI
SATCOM
S&T
SBIRS
SC
SCO
SDA
SDB
SECO
SFAB
SLBM
SM-3
SM-6
SOC
SOF
SOPGM
SRBM
SRRB
SSAE
SSBN
SSN
STEM
STOVL
STS

Program Executive Office's
Print on DemandPreservation of the Force and Family
President’s Management Agenda
Positioning, Navigation, and Timing
Personnel Recovery
second quarter
third quarter
Fourth quarter
Readiness Recovery Framework
Regular Army
Reserve Components
Research, Development and Acquisition
Research, Development, Test, and Evaluation
Research and Engineering
radio frequency
Ready For Issue
Request for Proposals
Redesigned Kill Vehicle
Reform Management Group
return on investment
Satellite Communication
science and technology
Space Based Infrared System
Security Cooperation
Squad Common Optics
Space Development Agency
Small Diameter Bomb
Spouse Education and Career Opportunities Program
Security Force Assistance Brigade
Submarine-Launched Ballistic Missile
Standard Missile-3
Standard Missile-6
System and Organizational Control
Special Operations Forces
Special Operations Precision Guided Munitions
Short Range Ballistic Missiles
Service Requirements Review Board
Statement on Standards for Attestation Engagements
Submersible, Ballistic, Nuclear (submarine)
Submarine Nuclear
Science, Technology, Engineering and Mathematics
Short Take Off and Vertical Landing
Squad Thermal Sights

APPENDIX BACRONYM LIST
B-7

Overview – FY 2020 Defense Budget
T2
TAA
TACAIR
TACTOM
TAPAS
TEF
THAAD
TKA
TLAMs
TMRR
TSOCs
TSP
TSS
TTH
UAE
UAS
UH
UMB
U.S.
USAFE
USAFRICOMUSAIUSARUSCENTCOMUSCYBERCOM
USD
USD(C)USEUCOMUSFKUSINDOPACOM
USMCUSNORTHCOM
USSF
USSPACECOM
USSOCOMUSSOUTHCOMUSSTRATCOMUSTRANSCOM
USUHS
USVs
VA
VEO
VCS
VPM

Training Transformation
train, advise, and assist
Tactical Aviation
Tactical Tomahawk
Tailored Adaptive Assessment System
Temporary Enabling Force
Terminal High-Altitude Area Defense
Tail Kit Assembly
Tomahawk land-attack cruise missiles
Technology Maturation and Risk Reduction
Theater Special Operations Commands
Thrift Savings Plan
Training Support Systems
time-to-hire
United Arab Emirates
unmanned aircraft systems
Utility Helicopter
Unified Medical Budget
United States
United States Air Forces in Europe
United States Africa Command
Ukraine Security Assistance Initiative
United States Army Reserve
U.S. Central Command
U.S. Cyber Command
Under Secretary of Defense
Secretary of Defense for Comptroller
U.S. European Command
U.S. Forces Korea
U.S. Indo-Pacific Command
United States Marine Corps
U.S. Northern Command
United States Space Force
U.S. Space Command
United States Special Operations Command
United States Southern Command
United States Strategic Command
United States Transportation Command
Uniformed Services University of the Health Sciences
Unmanned Surface Vehicles
Department of Veterans Affairs
Violent Extremist Organization
VIRGINIA Class submarines
VIRGINIA Payload Module

APPENDIX BACRONYM LIST
B-8

Overview – FY 2020 Defense Budget
VSO
WCF
WFX
WRP
WS
WSS

Vetted Syrian Opposition
Working Capital Fund
Warfighter Exercises
Workforce Recruitment Program
Warning System
Weapons System Sustainment

APPENDIX BACRONYM LIST
B-9

Overview – FY 2020 Defense Budget

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APPENDIX BACRONYM LIST
B-10