Sea Air Space Symposium PB16 Budget Issues RADM Barry Bruner Director, Programming Division OPNAV N8O April 2015

PB-16 Lens Forward Presence Maintain Sea- Based Strategic Deterrent Relevant Industrial Base Asymmetric Capabilities Means to Defeat and Deny Readiness and Personnel QDR Pillars - Protect the Homeland - Build Security Globally - Project Power and Win Decisively  Credible, modern, and survivable  “Where it matters, when it matters”  Significant investment to ensure superiority in Critical Kill chains  Focus on critical afloat and ashore readiness  Improves overall readiness of non-deployed forces, but not to our complete satisfaction  Focused effort to pace or remain ahead of threats across the warfighting spectrum  Procures the world’s most capable and innovative ships, aircraft, and weapons PB-16 Counter Terrorism Irregular Warfare Deter and Defeat Aggression Project Power despite A2AD Challenges Counter Weapons of Mass Destruction Operate Effectively in Cyber / Space Maintain a Safe, Secure, and Effective Nuclear Deterrent Defend the Homeland and Provide Support to Civil Authorities Provide a Stabilizing Presence Conduct Stability and COIN Operations Humanitarian Assistance Disaster Relief DSG Missions PB-15 2

Move toward “garrison” and “hollow” force More ships due to fenced SBP, at a cost of reduced readiness / presence for today’s missions Less Major Combat Operations surge readiness What Gives? Freeze capability of current Navy (i.e. Navy of 2020 will be as capable as today’s Navy) Fails to pace potential adversaries in near and mid-term. Fails to complete critical kill chains in near and mid-term Recommend Balancing Increased Risk Across All Three Categories Avg Shortfall w/ ORP FY16-22: $4.7B/yr FY23-28: $6.8B/yr FY29-35: $11.5B/yr Skip a generation in warfighting advances Fails to pace potential adversaries in mid- and far-term Fails to complete critical kill chains in mid and far-term Less Ready Force Overall average savings: $3.0B/yr Delay Future Force Investment Overall average savings: $3.4B/yr Freeze Current Force Modernization Overall average savings: $3.1B/yr If Shipbuilding is protected, then the pressure will fall to either Modernization, Future Force Procurement, or Readiness. All have significant strategic impacts 3