15 January 2014

1. Optimizing The Fleet Response Plan ADM Bill Gortney 15 January 2014

2. Readiness Kill ChainPast, Present, Way Ahead Governance / C2 – Drives integration & synchronization vertically across weapons systems & horizontally across the readiness lifecycle Ways Ends • Means • Personnel • Equipment • Supplies • Training • Ordnance • Networks • Installations • Community • Industry • Elected Leaders Assess FRTP RESOURCE / POLICY ACCESS / PROCURE PRE- INTRO MAINT BASIC INTEGRATED DEPLOY & SUSTAIN Surface Aviation Common Actions Synchronized Training Full Weapon System Ops Submarines Weapon System C4ISR/CYBER NECC OP/TAC HQs Everyone is part of the Readiness Kill Chain Everyone needs to know their place and role in the Readiness Kill Chain Means and Ways must support the Ends – our Deployability / Sustainment model, the FRP As of 08MAY13 2

3. What is RKC? • The Readiness Kill Chain (RKC) is a way to break down institutional barriers, increase understanding of readiness production, ensure a common understanding of Navy readiness on the same page, and ensure that policies, resources, and products deliver the right capability and readiness for mission requirements. • Specifically, RKC is a repeatable methodology to identify readiness production barriers and root causes, followed by development of effective strategies and solutions to remove these barriers. These processes result in complete assessment and presentation for decisions used to improve forward deployed readiness and resolve barriers in an informed and cost effective manner. • O-FRPis one example of implementation of the RKC. O-FRP uses the RKC approach to analyze various stages of the processes for training, inspections, parts, maintenance and manning to achieve desired end states.

4. CNO Guidance Warfighting First “We will deliver credible capability for deterrence, sea control, and power projection to deter or contain conflict and fight and win wars.” Operate Forward “Operate forward at strategic maritime crossroads; Sustain our fleet capability through effective maintenance, timely modernization, and sustained production of proven ships and aircraft.” . Be Ready “We must ensure today’s force is ready for its assigned missions. Maintaining ships and aircraft to their expected service lives is an essential contribution to fleet capacity” We will operationalize the Sailing Directions through the Optimized Fleet Response Plan using the Readiness Kill Chain (RKC) “We developed the Optimized Fleet Response Plan to establish a more manning-balanced and sustainable cycle…”- CNO Position Report: 2013, p 3

5. CNO’s Tenets • The CNO’s tenets as outlined in his Sailing directions and reinforced in the Navigation Plan are clear. • The Readiness Kill Chain approach provides us a holistic construct, or methodology, to ensure the Fleet is focused on warfighting … forward … and ready to conduct missions assigned and O-FRP is the answer to how we balance those priorities.

6. What is O-FRP? • The Optimized Fleet Response Plan (O-FRP) has been developed to enhance the stability and predictability for our Sailors and families by aligning carrier strike group assets to a new 36 month training and deployment cycle. • Beginning in fiscal year ’15, all required maintenance, training, evaluations and a single eight-month deployment will be efficiently scheduled throughout the cycle in such a manner to drive down costs and increase overall fleet readiness. • Under this plan, we will streamline the inspection and evaluation process and ensure that we are able to maintain a level of surge capacity. • O-FRPreduces time at sea and increases home port tempo from 49% to 68% for our Sailors over the 36 month period. Initially focused on Carrier Strike Groups, O-FRP will ultimately be designed for all U.S Navy assets from the ARG/MEU to submarines and expeditionary forces.

7. Fleet Response PlanProblem Statement • We have lost predictability • For Sailors, families, industrial base • Readiness producers, and readiness consumers • Length does not accommodate maintenance and training … or maximize operational availability • Misaligned CSG / DESRON Chains of Command • Manning levels not aligned to the phases of FRP • Maintenance and modernization • Not executing on time / budget • Requires better synchronization • Underfunded spares accounts • Unconstrained inspection process • Lack of standardized Operational /Tactical HQ academic, synthetic, and live training

8. Potential Drivers to Readiness Production C2 HST CSG JUL10 – SEP13 C3 C4 Traditional Fleet FRP “Cost Driver” – Schedule Driven FRP Inefficiency C5 Actual profile Model Readiness C2 C2 NIM CSG FEB11 – SEP13 IKE CSG FEB11 – SEP13 C3 C3 C4 C4 C5 C5 “Cost Driver” – Maintenance and Schedule Driven FRP Inefficiency “Cost Driver” – Maintenance Driven FRP Inefficiency Anticipated profile

9. Understanding Potential Drivers toReadiness Production Slide • The previous slide graphically depicts inefficiencies. • The solid blue line represents our readiness model and the dashed line is reality for these three Strike Groups. • Each of these three profiles is unique and our generic profile is not reliably predictive of the investment of our “means and ways” in this process. • IKE CSG faced maintenance challenges which delayed her work-ups and deployment and then she conducted a second deployment after a short homeport visit. • HST CSG trained up and then delayed due to a change in presence requirements – we “banked” her readiness during this delay. • NIM CSG was a combination of both maintenance and schedule delays. • Comparing a generic planning FRP profile to these CSGs profiles highlights the need to find a model that is more predictable and reliable in the planning process and ensures that we conserve scarce resources and money. • O-FRP establishes a framework to develop a predictive model that will drive each CSG to look and execute a more similar FRP profile.

10. O-FRP Predecessor:Enhanced Carrier Presence • DepSecDef-driven concept to generate 3.0-4.0 CSGAo • 7-7-7 plan (Deploy/Dwell/Deploy) • 49 percent Homeport Time • Deployments are 39 percent of the FRP length • ECPFrame work: • Provides a predictable FRP cycle • Extends/synchs CVN/CVW/SC FRP cycles to 36 months • Fixes CSG composition: Ships/aircraft/staffs remain aligned thru entire FRP cycle • Generates fully ready forces, trained to a single MCO certification standard • Establishes a stable and predictable maintenance plan • Maintenance interval remains constant • ECP concept ended Jan 13 due to sequester/POM fiscal limits

11. “Managed Wholeness” • The following series of slides describe progress achieved in our effort to manage Fleet wholeness across the Readiness Kill Chain (RKC) through the Optimized-Fleet Response Plan (O-FRP). • “Managed Wholeness,” is a term USFF coined to describe how we are leading our forces through the tough fiscal turbulence expected over the coming years.

12. Current Fiscal Environment • We’ve started FY 14 under a Continuing Resolution Amendment at reduced funding levels. Additionally, we are constrained by our current manpower levels and force structure. As a result, we have to carefully manage the wholeness of the Fleet with innovative cost saving measures that optimize readiness at the reduced funding levels.

13. Optimized Fleet Response Plan (O-FRP) • Retains ECP framework / capacity with reduced global Ao (~2.0) • 36 month FRP • Single 8-month deployment • Starts with HSTCSG in Nov 2014 • Enables delivery of: • Fixed CSG Composition • Aligned and stabilized CSG manning throughout the FRP • Stable maintenance plan • Improved quality of work and enhanced quality of life • Embedded Electromagnetic Spectrum Maneuver Warfare and Naval Integrated Fire Control – Counter Air • Forces trained to a single certification standard

14. Optimized FRPLines of Effort Operational & Tactical HQ’s (USFF / CPF N7) Advanced Training (USFF / CPF N7) Unit Training (TYCOMs) Inspections (USFF/CPFN43) Lines of Effort Parts (USFF / CPF N41 OPNAV N8/N9) Maintenance/Modernization (NAVSEA / NAVAIR USFF / CPF ) Manning/Individual Training (OPNAV N1 /USFF) CSGAlignment (USFF / CPF N3) FRPLength (USFF / CPF OPNAV N3)

15. FRP Length • Maximum CSG Operational Availability (Ao) • 36 month FRP • Supply-based; surge capacity dependent upon funding • Maximum forward presence with available capacity and funding • Predictable, yet adaptable • Able to meet FY14-16 with 2.0 CVN and 27 SC (includes 9+4 FDNF) ADAPTABLE PREDICTABLE For the sunk cost of maintenance & training, maximize Ao, with a clean chain of command, and an acceptable PERSTEMPO

16. What is AO? • AO is “Operational Availability.” Basically, this is the time a platform is employable. • This does not take into consideration OPTEMPO and PERSTEMPO. • The formula is the cycle length minus maintenance and training. • For example, in the 36-month O-FRP cycle, there are approximately 6 months maintenance and 6 training. Therefore, AO is approximately 24 months. AO = [ Cycle length – (maintenance time and training time)] AO = 36-(6+6) = 24 • This does not mean that a Carrier Strike Group will be deployed for the entire Operational Availability. Under O-FRP, deployment lengths are metered by Service Quality of Life factors. AO is simply a measure of when a platform is employable, and is used for planning both for rotational deployment and to determine surge capacity should a National emergency arise.

17. FRP Length • 36 month FRP cycle becomes the foundation upon which we generate CSGs ready for deployment and provides maximum Ao for CSG presence/funding level. • Under a sustainable O-FRP, a single 8 month deployment generates a deployed to FRP ratio (D/FRP) of 0.22 (or in other terms 5 CVNs can generate 1.0 global presence) with the ability to go to 0.38 (or 3 CVNs to generate a 1.0 presence) should resources ever become available. • These CSGs will be composed of 7-8, vice current 3-4, surface combatants who will be aligned under a single DESRON and will aggregate for training and certification. • Surface combatants’ deployment dates may vary slightly due to maintaining Global Force Management Allocation Plan (GFMAP) adjudicated presence requirements: Ballistic Missile Defense (BMD), SCAN EAGLE, and FIRE SCOUT.

18. CSG Alignment • Solution: Fixed CSG Composition • C2 Aligned with FRP cycle • OPCON aligned with deployment cycle • SC schedules more predictable • BMDintegrated within CSG • Surface combatant CMP aligned with CVN • Cost effective, Major Combat Operations Independent deployers • Problem: CSG and Destroyer Squadron Misalignment • Operational Control (OPCON) and Administrative Control (ADCON) Chain of Command and FITREPS • DESRON Commanders do not deploy with their assigned SC • CSGs deploy with SC from multiple squadrons • Multiple Independent deployerCERTEX events required • Advanced training produces lesser qualification (MSO vs. MCO) • DESRON SC FRP cycles not in alignment • Capability mismatch with CSG Iterative changes will be required in out years to complete

19. CSG Alignment • When examining DESRON alignments in conjunction with O-FRP, we saw an opportunity to fix numerous discrepancies, such as wholesale surface combatant swap outs between CSG multiple deployments as well as integrating BMD capability into CSGs. • O-FRP aligns surface combatant and CVN/CVW cycles to optimize resources required to achieve deployment certification. • Simple administrative alignment near term achieves 90% DESRON alignment. 21 of 29 moves have been mapped out for TYCOM execution to support 4 CSG’s. • USFF is changing DESRON assignments so that all CRUDES will be aligned to their CSGs starting with the GHWB CSG for their FEB 2014 deployment. • Ownership alignment also allows ISICs to begin transmitting Commanders’ intent to assigned units early – operational and professional expectations.

20. Manning Wholeness • Personnel readiness standard • 92/95/1 minimum deployment manning levels • Take risk in non-deployed units and post deployment surge • Actions to achieve wholeness • Recruit/Access to meet demand • Manage ‘Street to Fleet’ supply chain • Fund the Individuals Accounts • Define and prioritize critical operational shore duty billets • Manage and sustain wholeness • Report and manage individual PERSTEMPO • Incentivize and retain quality sailors • Manage FIT/FILL risk ashore • Established PERS-454 to streamline LIMDU process

21. FIT/FILL/CRITICAL NEC • In the previous slide, we used “92/95/1” as our endstate. This is also known as “FIT / FILL / Critical NEC” • The first number is “FIT” • This indicates that a commanding officer will have 92 percent of sailors authorized with the right skill sets • The second number is “FILL” • This number indicates that at least 95 percent of the required manning is on board • The third and final number indicates that there is at least 1 sailor on board that has the qualifications for every critical Navy Enlisted Classification (NEC)

22. Manning • The Fleet continues to face a fit/fill below the standard of 90/90/1 with an upward in trend of cross decks and diverts needed to maintain that standard. • After a TYCOM RKC review and a USFF N1 led Navy-wide working group, a CNO approved POAM was developed to increase the personnel readiness target, set actions to achieve wholeness and manage and sustain the gains. • OPNAV N1 was given the lead to execute the POAM.

23. HSTCSG Manning to O-FRP

24. Maintenance & Modernization • CNO Availability schedules are set: • Aligned with CRUDES assignment to CSGs • Stable, predictable and integrated maintenance and modernization plan • Proper availability planning • Allowance for timely port loading adjustments • Integrated with assessments • Aligns Surface Ship Class Maintenance Plan to 36 months to match CVNs • Modernization improvements: • Interoperable and aligned CSG/ARG C5I capabilities • Integrated SOVT test to include all associated supporting systems • Improved aircraft inventory management to fully support training plan • Adjust SFRM to 36 month FRP Stable, Predictable, Integrated Maintenance & Modernization that aligns and synchronizes CSG capabilities

25. Maintenance & Modernization • Turning to maintenance and using the kill chain “As is” / “To be” construct, we found that maintenance was impacted by changes in schedules and funding, and is constrained by port loading. • Thumb-rule used by maintenance providers is that costs go up by 3x for work packages changes through mid-availability and as much as 8X for changes in work packages from mid-to-late availability. So, this is a significant cost driver. • We also found that modernization is not aligned to the group and that there is significant variance in combat systems. For instance, in the 62 ship Arleigh Burke Class, there are 42 different configurations of only 8 major C4I systems. Clearly, an interoperability challenge. • Configuration variance reduction is one element that will improve maintenance and modernization execution. • Providing a stable and predictable FRP length with clear ownership alignment to a particular CSG would alleviate many of these challenges.

26. Maintenance & Modernization RKC Analysis • Commander’s Intent • Use a Readiness Kill Chain approach • Analyze the various stages of the end to end process • Ship/Submarine Maintenance and Modernization: • NAVSEA lead • Drive Work Package development and Planning effort to be done earlier • Integrate Class Maintenance Plan requirements with Modernization • Aircraft Depot Maintenance • NAVAIR lead

27. Surface Spares Wholeness • Spares availability critical to readiness • Stagnant/downward trends in key indicators drove action to get right parts on the shelves • Outfitting Spares • Additional $51M added to outfitting spares accounts May’13; minimal spares backlog • Outfitting spares funding “green” across Future Year Defense Plan • Fleet Shipboard Spares • Significant investments in AEGIS/BMD spares FY10-13 • COSAL updates every 2 months since July 2012 • Additional $21M investment in surface spares end of Fiscal Year 2013 • Ship Construction Spares • $14.6M added back to LPD-25 & LHA-6 programs end of Fiscal Year 2013 Coordinated Shipboard Allowance List (COSAL) effectiveness improving and expected to continue

28. Inspections = Independent Inspections INSURV MI / MCMA “As-Is” MCMA MI • CNO designated USFF as Executive Agent for Fleet Assessment: • Oversee changes to Inspections, Certifications, Assessment and Visits events • Approval authority for new or expanded requirements • Standardize Assessment Criteria • Maximize training value • Develop enduring process for continual review • Lead senior advisory group to CNO on ICAV matters PRESENT: 466 inspections Maintenance Basic Integrated Deployment INSPECTION PERIOD III “To-Be” FUTURE: INSPECTION PERIOD II INSPECTION PERIOD I 28

29. Inspections • This diagram approaches inspection and assessment processes in the “As is: at top and “To be” on the bottom of the chart. The curves represent a generic readiness curve and are sub divided horizontally by phase. • Our Fleet Action Working Group found that there are 466 different inspections, certifications, assists and visits scattered across the FRP. Some of these are time based, some are conditions based and others are policy or law. Many are, frankly, outdated. • Developing an assessment and inspection continuum across the FRP will: • Optimize external assessment and inspection events to eliminate redundancy • Optimize assessment timing within the FRP • Standardize assessment and inspection requirements • Standardize expectations to minimize impacts to ship’s force personnel • Develop institutionalized process for continuous adjudication of future inspections within the FRP.

30. Creating a Smarter INSURV • Reduced from 5 days to 3 days • Commences on Tuesday vice Monday to reduce burden on crew • Improved Operational Risk Management • Ships do not get underway before 0700 to enhance safety • Ship leadership afforded crew rest through improved scheduling of events and elimination of redundant and out dated requirements • Linked to Readiness Events • Accepts TYCOMTSRA PMS data as INSURV data. This makes INSURV even shorter (3 days or less) • Analyzes more data over broader period of time • Collects TYCOM mid-cycle assessment data as INSURV data. This increases the amount of data used to identify maintenance and readiness trends • (U)

31. EA For Fleet Assessments IPR 25 SEP 13 17 JAN 14 PHASE ONE FAWG 18 OCT 13 PHASE TWO TYCOM/SYSCOM REVIEWS ECD 14 FEB 14 DELIVERABLES “AS-IS” ICAV LIST – CMP PROPOSED ICAV CHANGES COMPLETE PROPOSED “TO-BE” STATE COMPLETE ICAV CHARTER DRAFTED RESOURCES PHASE THREE FLEET CDR REVIEW ECD 1 OCT 14 DELIVERABLES EA FOR ICAV DESIGNATED –COMPLETE REFINE/CONCUR WITH ICAV CONCEPT - COMPLETE COMMENT/CONCUR WITH ICAV CHANGES – STAKEHOLDERS REVIEWING CHARTER All AIRFOR AND SURFOR ICAVs TIED TO FOUR PHASES IN FRP – COMPLETE AIRFOR AND SURFOR IDENTIFIED ICAVS TO COMBINE - COMPLETE LINKAGE INSTRUCTION DRAFTED AND TESTED ON JET BLAST DEFLECTORS (JBDs) –COMPLETE SUBLANT JOINED FAWG PHASE FOUR CENTRAL ICAV AUTHORITY (CICAVA) DELIVERABLES SIGN CHARTER – TYCOMS HAVE REVIEWED WITH ONLY MINOR CHANGES DESIGNATE CICAVA –CONTAINED WITHIN CHARTER STANDUP CICAVA RESOURCE CICAVA INSURV MESSAGE INSURV HAS ACTION TO LEAD LINKAGE ESTABLISHMENT BETWEEN TYCOM AND INSURV INSPECTIONS PHASE FIVE STEADY STATE DELIVERABLES DRAFT AND SIGN ICAV INSTRUCTION ASSUME DUTIES FROM FAWG PRIORITIZE ICAV CHANGES DEVELOP ANALYSIS METHODOLOGY SURFACE SHIP INSURV INSPECTIONS REDUCED TO 3.5 DAYS – APR 2014 DELIVERABLES CICAVA ACTS AS THE GATEKEEPER TO SYNCHRONIZE ALL ICAV EVENTS CICAVA EXTENDS PROCESS TO OTHER FRP-DRIVEN ENTITIES CICAVA MAKES CHANGES DELETE, MOVE CONSOLIDATE, AND OPTIMIZE ICAV EVENTS (MOVE FROM AS-IS TO TO-BE) DELIVERABLES BLUE – COMPLETED RED – NOT COMPLETED

32. O-FRP Training READ-6 / CMAV CRUDES TIER 1 - Mobility TIER 2 - Unit Tactical CVN NonSkid WCC TSTA CVW A-A ARP A-G ARP CRUDES Academic CVN Synthetic Live CVW CVW FALLON • Carrier, air-wing, and all surface combatants training aligned • ALL units trained to one standard • People and equipment ready for training at the end of maintenance • Basic unit training • Retains training time entitlement • Integrates inspection, certification, and continuous maintenance requirements 24 Weeks TYCOM Tasking • Advanced unit and integrated group training • Standardized Group Sail • More efficient training schedule • Standardized training Fleet-wide 14 Weeks GroupSail TSTA / FEP

33. Operational Level to Tactical Level Headquarter Alignment Combatant Commander • Aligned and standardized Navy warfighting staffs from operational to tactical level • Functions based on Mission Essential Tasks aligned from Combatant to Tactical Commander • Personnel assigned with right skill sets to meet HQ “fit” • Interoperable systems between Operational and Tactical Level HQ • Standardized and codified staff training and exercise program NCC CTG CTF Alignment CSG, CVW, DESRON, PHIBRON Standardization Optimized – Fleet Response Plan will provide aligned and standardized Operational and Tactical Level Headquarters

34. Headquarters Alignment • Both tactical and operational (TL / OL) staffs have 2 main focus areas: • Support commander’s decision cycle, and assure subordinate success • Key elements in the kill chain are Tactical and Operational Level staffs. • TL HQs need to be functionally aligned to OL HQs. • Achieving this requires standardized tactical staff academic training. • Revised Strike Group Tactical Training Continuum (SGTTC) codifies individual training for tactical staffs. • Standardizes training by billet • Includes CSG CDR, CVW, DESRON, ESG, PHIBRON, TACRON, Warfare CDRS, and staffs • Sets individual requirements for pipeline and Fleet training

35. Optimized FRPLines of Effort OL/TL HQ’s (USFF / CPF N7) HST – IOC MAY 14 GHWB VIN TR Advanced Training (USFF / CPF N7) HST GHWB – IOC AUG 13 TR – IOC SEP 13 Unit Training (TYCOMs) HST GHWB VIN Inspections (USFF/CPFN43) HST GHWB VIN Parts (USFF / CPF N41 OPNAV N8/N9) Lines of Effort Maintenance/Modernization (USFF / CPFN43/N6) HST GHWB VIN TR Manning/Individual Training (USFF / OPNAV N1) HST GHWB VIN CSGAlignment (USFF / CPF N3) HST / GHWB / TR by MSG – AUG 13 FRPLength (USFF/CPF OPNAV N43) Foundation to O-FRP ---------- CVN/CVW There Now ---------- SC w/HST

36. First O-FRPCSG: TRUMAN • Starts with maintenance cycle in Nov 14. CRUDES will be aligned by HST CSG FRP start (NOV 2014), pending rework of class maintenance plans by NAVSEA. • Inspections begin approximately 1 month prior to Basic training phase • Manning is aligned to Basic training phase to gain efficiency in training audience participating in all of work-ups • Integrated training occurs in Nov 15 • CSG alignment has already started by message in Aug 13 for HST / GHWB / and TR. The first CSG to be aligned for deployment will be GHWB in Feb 14. • HST CSG staff will receive pipeline and fleet training for OL/TL alignment in May 14.

37. Follow On Carrier Strike Groups • The other CSGs officially enter O-FRP at the maintenance phase: GHWB – May 14, VIN – Jul 15, TR – Dec 15 • Where able, we have instituted elements of O-FRP as early as possible. GHWB conducted elements of Integrated training by conducting a new GRP Sail event. • TRis conducting increased integrated training b/c of NIFC-CA. CSG alignment for HST / GHWB / TR is de facto complete after the first ADCON shift message in August 13 (CCSGs already briefing their “to be” units at update briefs)

38. Readiness Kill ChainNavy-Wide Approach to Managing Wholeness Governance / C2 – Drives integration & synchronization vertically across weapons systems & horizontally across the readiness lifecycle Ways Ends • Means • Personnel • Equipment • Supplies • Training • Ordnance • Networks • Installations • Community • Industry • Elected Leaders Assess FRP RESOURCE / POLICY ACCESS / PROCURE PRE- INTRO MAINT BASIC INTEGRATED DEPLOY & SUSTAIN 1. Cost to Own..…… • 2. O-FRP……………….. • OL/TL HQs…………………………………………………………………………………………. • Advanced Training........................................................................................................... • Unit Training………………………………………………………………………………………….... • Inspections…………………………………………………………………………………………..…. • Parts………………………………………………….. • Maintenance……………………………………………………………………………………….….. • Manning……………………. • CSG Alignment………………………………………………………………………………………… • FRP Length………………………. Managing Wholeness 3. Surge Capacity..... It takes everyone to manage Fleet wholeness across the Readiness Kill Chain

39. Optimized FRPTake Aways Operational & Tactical HQ’s Standardize & align NCC, CSG and Warfare CDR training tracks Advanced Training Combine JTFX / C2X; standardize Group Sail; NIFC-CA & EMMW Unit Training ISIC-led, CSG-wide aggregated training with a predictable schedule Consolidate to specific inspection periods aligned to the FRP Inspections Lines of Effort RKC methodology to ensure spares are available when needed Parts Maintenance/Modernization Stable, predicable, synchronized execution of Maint & Modernization Manning/Individual Training Sea Centric Manning; Incentivize and Retain Quality Sailors CSGAlignment C2 aligned with FRP cycle 36 Month Fleetwide introduction begins with TRUMAN CSG in Nov 2014 FRPLength

40. UNCLASSIFIED