Army Reserve Modernization: Meeting Challenges and Improving Readiness

1. 2004 Tactical Wheeled Vehicles Conference 1- 3 February 2004 MG Skip Philips U.S. Army Reserve

2. WHERE THE ARMY RESERVE IS HEADING • A Complementary Force vs. a Supplementary Force – no longer a force in reserve • Inactive Duty to Active Duty to Inactive Duty • Mission Capable not mobilization capable • Reduced structure with same end strength—fullymanned units with modernized equipment • TTHS Account to account for non-ready soldiers • Practiced, Institutionalized, Leader Development and Growth through PME and Developmental Assignments • PME outside the unit while in a training status

3. MOBILIZATION HAS CHANGED Then Now Oct 2002 to Present Operation Iraqi Freedom + 79,123 troops MOB BOOTS ON GROUND Continuous Mobilization (Institutional) ALERT DEMOB SUSTAIN RESET/ RETRAIN Finite Period Of Mobilization

4. CS/CSS TRANSFORMATION OBJECTIVES • Reduce strategic lift requirements • Reduce logistics footprint in area of operations with the commonality in equipment platforms • Reduce inventories through management of like type equipment requirements • Reduce costs through reduced inventories and force structure • Reduce O&S costs and training time • Reduction in requisitioning, shipping and receiving errors Modern Equipment How?

5. ARMY RESERVE CSS TRANSFORMATION • Optimize force structure through the Army RESET • process (personnel & equipment) • Maintain readiness posture • Single Theater CS/CSS (Theater Support Command) • Forward presence

6. ENABLERS AND INITIATIVES Concept Logistic Enablers are the Key to Success • Change logistics • doctrine • Optimize Logistics • Change Business • Processes • Reduce Requirements • Improve/upgrade/right- • size Infrastructure • Field Improved Logistics • Equipment (enablers) • Exploit Science and • Technology • Intermediate Staging (Support) Base • Split-Based & Reach Operations • Leverage Contractor/Host Nation Support • Common Unit Design • Reach Operations • Intermediate Staging (Support) • Base • Distribution Based Logistics • Standardized Strategic/Mission • Combat Configured Loads • National Maintenance Program • Velocity Management • Dollar Cost Banding • Single Stock Fund • Recapitalization • Enhance Strategic Response • Meet Deployment Timeline • Cultural Change • Update Planning Factor • and Allocation Rules • Identify and Validate ASOS • Depots • Containment Projection Platforms • Palletized Load System • Family of Medium Tactical • Vehicles • Tactical Fire Fighting Truck • M915A3 Line Haul Tractors • All Terrain Lifter Army System • HMMWVs • M878 Yard Tractor • Rough Terrain Cargo Handler • Diagnostic and Prognostics • Precision Munitions • Fuel Efficient Systems • Common Chassis

7. ARMY RESERVE EQUIPPING SOURCES • New Procurement • Projected in Procurement-1R submission (require a minimum of $400M per year) • Funded through Other Procurement, Army appropriation • The Redistribution or Cascading of Equipment from the Active Component • The Army Reserve has 42% of the Army’s combat service support structure • As such, little combat service support equipment is cascaded from the Active Component to the Army Reserve • Likewise, little or no funding accompanies the equipment that is cascaded to restore it to the appropriate standards • Recapitalization of Old (Legacy) Equipment • The rebuild and selected upgrade of currently fielded systems to a zero mile/zero time system • Limited benefit from Army Recap program for the Army Reserve • Congressional Adds • Funding earmarked for specific equipment • National Guard and Reserve Equipment Appropriation (NGREA) • Started in 1981, NGREA is congressional directed program providing funds to the Reserve Components to improve readiness. • Enables economical stewardship of resources by providing the flexibility to acquire new equipment and rebuild/overhaul/refurbish existing systems.

8. D O W N A R D T R E N D ARMY RESERVE MODERNIZATION CHALLENGE ARMY RESERVE PROCUREMENT $641 $550 $567 $Millions $424 $278 $279.5 *$300 $282 $281 $243 $186 $205 $177 $158 $167 $149 $142 $191 $125 $126 $114 $115 $147 $84 $133 $64 $90 $103 $91 $75 $30 $20 $45 $5 $8 $14 $10 $10 $12 $3.5 Army Reserve POM Target $400 Million Annually * ESTIMATED P-1R PROJECTION

9. ARMY RESERVE UNFUNDED MODERNIZATION REQUIREMENTS *ALL SOURCES = P1-R, NGREA, CONG ADDS

10. ARMY RESERVE P-1R PROJECTIONS HISTORICALLY, FUNDING TENDS TO SLIP TO THE RIGHT FMTV EXAMPLE

11. Green = Fleet Average Age equals ½ EUL or Less. • Yellow = Fleet Average Age > than ½ EUL and < EUL • Orange = Fleet Average exceeds EUL + 10 years • Red = Fleet Average Age exceeds EUL + 10- 20yrs ARMY RESERVE EQUIPMENT (AVERAGE AGE) BOTTOMLINE: Equipment exceeds *Economical Usage Life (EUL) DATA SOURCE: LOGSA, MAY 03

12. DEPOT MAINTENANCE PROGRAM (FY 2003) HMMWV Yard Tractor • High Mobility Multi-Purpose Wheeled Vehicles (99) • 10K/4K Forklifts (122) • 5000 Gal Fuel Tankers (65) • M787 Yard Tractors (12) • M915 Line Haul Tractors (111) • HEMTT Cargo Truck & Fuel Tankers (13/6) • 5-Ton Dump Trucks (17) • 5-Ton Cargo Trucks (102) • 22.5 Ton Semi-Trailers (140) M915 Tractor HEMTT Cargo

13. UNIT/DEPOT LEVEL MAINTENANCE ISSUES • Unit Readiness Reporting only reports approximately 9% of total equipment. • Operational Readiness rates for non-reportable equipment is a challenge for the Army Reserve because of the age of the non-reportable TWV fleet......limited visibility. • Additional maintenance and rebuild funds are needed to support aging Army Reserve tactical wheeled vehicles and the increase in OPTEMPO due to OIF requirements.

14. SUMMARY • Lack of adequate funding stream to purchase or upgrade TWV fleet • Reduced or decremented system quantities and delayed fieldings impacts the ability to meet Transformation goals • Aging equipment is expensive and labor-intensive to maintain and sustainment funding must be increased • Substitute or in-lieu-of items perpetuate incompatibility and interoperability issues. These incompatibility issues create impediments to supporting the digitized force and OIF requirements • Limited benefit from Army Recap program for the Army Reserve • BOTTOMLINE: • Shortage of new equipment procurement (P-1R) makes funding provided through NGREA, Congressional Add and support of Depot Maintenance Programs vital to the readiness of the Army Reserve TWV fleet

15. “First is the Soldier. Our Soldiers are paramount. They will remain the centerpiece of our thinking, our systems, and our combat formations. We must always remember, ‘Humans are more important than hardware’. • We must always remember that Soldiers ARE the Army.” • Peter J. Schoomaker, CSA • AUSA 2003 • Washington, DC Person of the Year represents 2.6 million men and women of the Armed Forces