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Soldier and platform will be capable of sensing and engaging the enemy while maintaining situational awareness of friendly forces. Advanced information technologies and C41SR decision tools and assets will enhance the Common Relevant Operating Picture (CROP). The Objective Force will identify, locate, and engage critical targets with lethal or non-lethal affects and assess battle damage on those targets. The joint C4ISR linkages will enable the attack of targets with whatever joint or Army assets are available for immediate employment. Similarly, enhanced situational awareness will facilitate multi-layered active and passive defense measures.

The FCS is a transformational approach to meeting this Nation's requirements for the Objective Force. We will design and field a balanced FCS family to avoid optimizing a component at the expense of sub-optimizing overarching capabilities of Objective and joint forces. Acquisition and requirements development processes are being updated to accommodate DoD's direction to field a networked system of systems rapidly through spiral development and an open architecture that allows maturing technological insertions as they occur.

The Army embraces the ongoing DoD and Joint Staff Capabilities and Acquisition processes reform efforts to achieve revolutionary capabilities in the fielding of a new generation of equipment. This collaborative effort holistically enables us to design new information-age capable organizations, use evolutionary acquisition strategies to equip those organizations, and see the Objective Force fielded this decade.

Enabling the Objective Force Soldier

Eighteen manned and unmanned systems; the Objective Force Soldier; and C4ISR comprise the Future Combat System. Manned and unmanned reconnaissance capabilities are part of the FCS Family of Systems' interdependent networked air- and ground-based maneuver, maneuver support, and sustainment systems.

There are 10 Unmanned Systems: Unmanned Aerial Vehicles (UAV) Classes 1-4; Unmanned Ground Vehicles (UGV) - the Multifunction Utility/Logistics and Equipment (MULE); the Armed Robotic Vehicle (ARV); and the Manpackable Unmanned Ground Vehicle (MUGV); Unattended Ground Sensors (UGS); and Unattended Munitions - the Non-Line-of-Sight (NLOS) Launch System (LS) and Intelligent Munitions Systems (IMS).

There are 8 manned systems: the Infantry Carrier Vehicle (1CV); Command and Control Vehicle (C2V); Reconnaissance and Surveillance Vehicle (RSV); Line-of-Sight, BeyondLine-of-Sight Mounted Combat System (LOS/BLOS MCS); NLOS- Mortar; Medical Vehicle (MV); the FCS Recovery and Maintenance Vehicle (FRMV); and the Non-Lineof-Sight (NLOS) Cannon.

Decisive warfighting is about fires and maneuver. Joint and organic close, supporting, indirect fires destroy the enemy, suppress the enemy's capabilities, protect our forces and enable ground units to maneuver. The ICV, the Unattended Munitions NLOS-LS, IMS, C2V, MCS, NLOS-Mortar, and NLOS Cannon are important elements of the FCS that will enable the Objective Force to conduct distributed and simultaneous joint combat operations. With joint fires, the NLOS Cannon is critical to support and protect our land forces in hostile environments. NLOS-LS NetFires is a platform-independent launcher with a family of missiles with precision attack and loitering capabilities. Both Precision Guided Mortar Munitions and Excalibur precision cannon munitions will enhance organic maneuver fires. A new, joint fire support, battle command and fire support architecture will allow rapid target engagement by any asset.

The Land Warrior program responds to this legacy and enhances our Soldiers combat power generation capability. The Land Warrior program will develop a lightweight, low observable, enhanced-armor protection, fighting ensemble for the individual Objective Force Soldier. Through networked connectivity to the FCS-equipped, maneuver Unit of Action, Land Warrior Soldiers will enable revolutionary lethality, mobility, survivability, and sustainability for the individual warfighter while reducing logistics demands.

Science and Technology (S&T) investments in military logistics are an important enabler for the Objective Force. We are placing our emphasis on sustainment's big drivers - fuel, ammunition, maintenance, and water - to dramatically reduce our logistics footprint and lift requirements in these areas.

Bridging the Capabilities Gap - Stryker Brigade Combat Teams

The Army responded to a capabilities gap between its lethal, survivable, but slow-todeploy heavy forces and its rapidly employable light forces that lack adequate protection, lethality, and tactical mobility. In 2002, The Army began fielding the first Stryker Brigade Combat Team to bridge that gap. In 2003 - less than four years after its announcement - we are on track to achieve IOC with the first SBCT at Fort Lewis, Washington.

Stryker Brigade Combat Teams respond to Combatant Commander requirements across the spectrum of military operations. Optimized for combat in complex and urban terrain, Stryker Brigades will be decisive in other major combat operations. The SBCT Reconnaissance, Surveillance, and Target Acquisition (RSTA) Squadron provides organic human intelligence capabilities and UAVs embedded at the brigade level. Its military intelligence and signal companies leverage theater and national assets to create an information-enabled force.

Leveraging platform commonality, enhancing logistics practices and enablers, and reorganizing logistics formations, the SBCT is vastly more deployable and sustainable than our heavy forces, while significantly increasing combat power generating capabilities. Augmented for sustained operations, the SBCT requires 37% fewer CSS personnel than a digitized heavy brigade. While capitalizing on these advantages, developing and available technologies allow us to mass effects and create a robust, reliable capability to conduct operational maneuver over strategic distances.

Finally, SBCTs provide as invaluable means of spearheading Transformation. The SBCT trains junior officers and noncommissioned officers in the tactics, techniques, and procedures that will inform employment of the Objective Force.

The Army has resourced six Stryker Brigade Combat Teams to contribute to fulfilling the 1-4-2-1-defense construct and national security requirements; however, at this time, the Secretary of Defense has only authorized the procurement of the first four brigades. The Army will provide the Secretary of Defense with a plan for Stryker Brigades 5 and 6.

Fielding of the SBCTs affects the entire Army, and current fielding timelines will enhance the Nation's ability to fight and win the GWOT and conduct major combat operations. The transformation of four Active Component brigades to SBCTs provides a rotational base with three of the SBCTs focused on the Pacific theater. One of the two SBCTs fielded at Fort Lewis will be forward-based in Europe not later than 2007. The Stryker Cavalry Regiment will support the XVITJ Airborne Corps' critical need for robust, armed reconnaissance. The conversion of a Reserve Component brigade to an SBCT will enhance our strategic reserve and support the GWOT, Smaller Scale Contingencies, and Homeland Defense missions. Additionally, SBCT stationing provides rapid, strategic responsiveness through power projection platforms capable of supporting four critical regions described in the 1-4-2-1-defense construct. The first SBCT has formed, trained, tested and is now capable and will be deploying to OIF.

Preserving the Army's Legacy

Today's force guarantees The Army's near-term warfighting readiness to fight and win our Nation's wars, decisively. Because we bypassed a procurement generation, our Combat Support and Combat Service Support systems now exceed their 20-year expected life cycle, and 75% of our critical combat systems exceed their expected half-life cycle. To maintain operational readiness while preserving resources for Transformation, The Army is recapitalizing and selectively modernizing a portion of the current force. The modernization program addresses the critical issue of AC and RC interoperability and serves as a bridge to mesh these two components seamlessly. In general, The Army increased funding for programs that are clearly transformational and support the Defense transformation goals, sustained funding for high priority systems that will transition to the Objective Force, and reduced funding for systems not essential to Army Transformation. We remain committed to a 17-system recapitalization program and have reduced prioritized recapitalization from three-and-one-third to two divisions.

Army Special Operations Forces (SOF) are indispensable and will continue to provide unique capabilities to the Joint Force and Land Component Commanders. Increasing joint campaign requirements for SOF contributed to the validation and resourced growth in SOF structure.

The Army will remain the largest user of space-based capabilities among the Services. Army space assets are providing tangible support to the war on terrorism and Operation ENDURING FREEDOM - they ensure Army and Joint Force Commanders optimize communications, satellite intelligence. Global Positioning System, imagery, weather, missile warning, and other space-based capabilities in every aspect of planning and operations. We are working diligently with the joint and interagency space community to ensure that Army and joint space systems continue to provide their essential capabilities now and for the Objective Force.

Aviation Transformation and Restructuring

Aviation Transformation further demonstrates our hard choices in balancing risk to resource Transformation. Our current interim plan lowers operating and sustainment costs while posturing aviation for arrival of the Objective Force by 2010. Apache modernization is an integral part of the plan. The AH-64D Longbow will enhance domination of the maneuver batllespace and provide the ground commander with a versatile, long-range weapon system against a range of fixed and moving targets. The RAH-66 Comanche program is on track to field a helicopter with stealth qualities in FY 2009 to provide Armed Reconnaissance and Close Combat support to our Objective Force FCS formations. The UH-60 Blackhawk continues to be the assault workhorse of Army Aviation, executing over 40% of The Army's annual flying hours. We are extending the life of the UH-60 while providing it with capabilities required of the future battlespace. Similarly, we are fully committed to the CH-47F Chinook program. The CH47 was the primary lift platform in OEF and performed superbly. The Army is committed to improving on this capability and extending the life of this Army workhorse. As we restructure and standardize attack and lift formations across the force, we will also adjust the stationing and alignment of Reserve Component aviation units to mitigate the nearterm risk.

Army National Guard Aviation comprises almost 50% of our aviation force and is one of our most valuable assets. Essential for successful execution of the Nation's military strategy, the ARNG currently has aviation units deployed in Afghanistan, Kuwait, Bosnia, Europe, and Saudi Arabia, as well as Central and South America.

Army Guard Restructuring Initiative (AGRJ)

ARNGRJ seeks to transform a sizeable portion of ARNG combat structure into more deployable, flexible fighting forces to support Army requirements at home and abroad. ARNGRJ will introduce two new organizations into the force structure: Mobile Light Brigades (MLB) and Multi-Functional Divisions (MFD). These organizations will provide full spectrum capabilities in support of Combatant Commanders. MLB will operate as subordinate units to MFD, which will also contain two combat support / service support brigades capable of supporting either major combat or homeland security operations.

Army Reserve Transformation Initiatives

Army Reserve initiatives ensure the USAR is missioned, organized, and equipped to provide interoperability across the full spectrum of military operations. Transformational

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organizations include experimentation forces, information operations, joint augmentation, network security, and interagency units. The Readiness Command and Federal Reserve Restructuring Initiatives will help the USAR fulfill these new mission requirements. Regional Readiness Commands will focus on readiness, leader development, and training, which will demand a new personnel system that achieves holistic life-cycle management for Reserve Soldiers.

Institutional - Enhancing the Way We Do Business

We cannot accelerate Army Transformation without transforming the way The Army does business - from transformation of logistics and acquisition to personnel and installation transformation. Changing The Army is first about changing the way we think, and better business practices represent practical application of common sense initiatives that best serve.

Transformation of Installation Management (TIM)

Recognizing the requirement to enhance support to commanders, The Army restructured the management of Army installations under the Installation Management Agency (IMA) - a new field-operating agency of the Assistant Chief of Staff for Installation Management. Its mission is to provide equitable, efficient, and effective management of Army installations worldwide to support readiness; enable Well-Being; improve infrastructure; and preserve the environment. This new management approach eliminates the migration of base operations funds to other operational accounts below the HQDA level. It also enables the development of multi-functional installations to support evolving force structure and Army Transformation.

Barracks and the Family Housing programs significantly increase the well being of our Soldiers and their families. We established the Barracks Upgrade Program (BUP) in the , late 1990's to improve single Soldiers' housing conditions. Through 2002, we have upgraded or funded-for-upgrade 70% of our permanent party barracks to Soldier suites that consist of two single bedrooms with a shared bath and common area. We will continue the BUP until all permanent party barracks achieve this standard.

We established the Residential Communities Initiative for our families. This program capitalizes on commercial expertise and private capital to perform a non-core function for The Army - family housing management. The program provides greater value to us by eliminating the housing deficit at our first eleven sites, while leveraging a S209M Army investment into $4.IB of initial private development. Pending OSD and Congressional approval, 28 projects are planned through 2006 that will impact over 72,000 housing units or 80% of Army Family Housing in the United States. By the end of 2007, we will have the programs and projects in place to meet the OSD goal of eliminating inadequate family housing. We will accomplish this goal through RCI and increased Army investment in family housing construction at non-privatized installations. The Reserve Component (RC) enhances RCI through real property exchange authority that is only available to the RC. This legislative authority allows the exchange of RC owned property

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