1998 Congressional Hearings



                                    

DEPARTMENT OF THE AIR FORCE
PRESENTATION TO THE COMMITTEE ON APPROPRIATIONS
SUBCOMMITTEE ON NATIONAL SECURITY
UNITED STATES HOUSE OF REPRESENTATIVES


SUBJECT: FY 99 AIR FORCE BUDGET OVERVIEW


STATEMENT OF: THE HONORABLE F. WHITTEN PETERS
ACTING SECRETARY OF THE AIR FORCE

GENERAL MICHAEL E. RYAN
CHIEF OF STAFF
UNITED STATES AIR FORCE

05 MARCH 1998

THE AIR FORCE ROLE IN NATIONAL SECURITY

Mr. Chairman, members of the committee, 1997 was a defining year
for US defense policy. Together, the Quadrennial Defense Review

(QDR) and the independent analysis by the National Defense Panel
(NDP) significantly raised the level of defense debate. Each of
these undertakings will undoubtedly have far-reaching defense
policy implications. We are proud of our Service's contributions
to these efforts.


THE QUADRENNIAL DEFENSE REVIEW

One of the most significant outcomes of the QDR was the emergence
of a new national military strategy. That strategy includes a new
special emphasis on the critical importance of an early, decisive
halt to armed aggression to provide wider options for the use of
military force and to create a window for diplomatic resolution
of a crisis. This new strategy is also reflected in the
President's National Security Strategy, the Secretary of
Defense's Defense Planning Guidance, and the latest edition of
the Chairman of the Joint Chiefs of Staff's National Military
Strategy. It is heavily dependent on the speed, range, agility,
and overwhelming firepower of aerospace forces.

One of the greatest strengths of aerospace forces lies in their
ability to project lethality with less vulnerability. With the
advance of technology, a more agile aerospace force can
substitute for large, slow-arriving forces and deliver more
firepower in the process. This capability minimizes the number of
friendly casualties, helps to solidify political support for
military action, both at home and abroad, and buys critical time
for diplomatic initiatives and potential follow-on military
actions. This rapid halt capability also minimizes the amount of
territory that would have to be retaken should a counteroffensive
be necessary. We firmly believe this strategy to be appropriate,
cost-effective, and consistent with American values.

Another important aspect of the QDR was the reaffirmation of the
importance of the total force. We embrace the total force
concept--we depend on it. Air National Guard and Air Force
Reserve forces provide the necessary wherewithal for our Service
to effectively accomplish its entire range of military missions.
We are implementing a balanced, time-phased modernization program
to build the force necessary to meet the requirements of the QDR
strategy and enable the successful conduct of joint warfare in
the 21st century. To help fund this modernization, we are taking
steps to achieve personnel, business, and force structure
efficiencies. The QDR reminded each of the Services that in
fitting our force structure to future needs, we must make hard,
but necessary recommendations on infrastructure. We will need the
support of the Congress to implement these recommendations.
Dollars saved through these actions will be invested in Air Force
modernization, providing the nation with a force fully prepared
for the increasingly complex and diverse security challenges of
the future.


THE REPORT OF THE NATIONAL DEFENSE PANEL

The National Defense Panel articulated several desired military

capabilities to meet their postulated future national security
challenges. Many of these capabilities are present in today's Air
Force, or will be in the aerospace force planned for the future.
For example, the panel recognized the imperative to achieve air
superiority against an enemy's air-to-air, surface-to-air,
ballistic and cruise missile threats. We are fielding the F-22
and the Airborne Laser to address this need.

The Panel also observed that projecting military power on short
notice into the backyard of a major regional power demands forces
that can deploy rapidly, seize the initiative, and achieve
national objectives with minimal risk of heavy casualties.
Aerospace forces possess these capabilities. We believe they will
be increasingly called upon in the future.

The NDP recommended an increased emphasis on information systems
(including situational awareness) and information operations; a
migration to unmanned and space-based systems; a lighter, more
mobile force; and greater emphasis on precision, speed, stealth,
and long range strike. The Air Force program stands up well when
measured against this template because our corporate vision
statement-- Global Engagement: A Vision for the 21st Century Air
Force--articulates the importance of many of these same
priorities.


GLOBAL ENGAGEMENT

Global Engagement addresses the range of Air Force activities-
operations, infrastructure, and personnel--to provide a
comprehensive map to shape the Air Force during the first quarter
of the 21st century. It defines the Air Force core competencies
which stem from the speed, global range, precision, flexibility,
unparalleled access, and awareness afforded by aerospace forces--
competencies that contribute to the Chairman of the Joint Chiefs
of Staffs Joint Vision 201 0 goal of Full Spectrum Dominance.
Global Engagement establishes the vector our Service will follow
into the 21st century. The guidance provided by Global
Engagement, in conjunction with our long range planning efforts,
form the prism through which we view our near-, mid-, and far-
term priorities.

The priorities outlined herein represent our three-fold
commitment: first, to maintain a ready and capable force to
conduct our contemporary military mission; second, to size,
shape, and streamline our Service to implement QDR guidance; and
third, to continue the evolution of our aerospace force to
provide the capabilities necessary to protect America's security
interests into the next millennium.

CONTEMPORARY AIR FORCE OPERATIONS

READINESS

The Air Force is expected to maintain a high state of responsive
readiness across the force due to the critical need to get
aerospace power rapidly to any crisis. During peacetime, high

readiness gives us the flexibility to deploy a tailored force
anywhere in the world in response to emerging crises-to gather
essential intelligence, deter potential enemies, protect friendly
forces and US citizens, apply force, or provide humanitarian aid.
Airlift, tanker, fighter, bomber, space, communications,
reconnaissance, intelligence, and many other Air Force units are
also the first forces called upon in wartime. Aerospace power is
vital to rapidly halt advancing enemy forces, and critical to the
success of a Commander in Chief's (CINC) extended campaign plan.

We judge readiness through objective and subjective assessment of
several interdependent elements which include personnel,
equipment, training, logistics, and financial resources. A
shortfall in any of these areas will negatively impact our
overall readiness level. Maintaining high readiness in today's
environment poses the challenge of balancing present requirements
with the need to acquire new technologies and modernize current
systems for the future.

Since 1986, the Air Force has downsized by nearly 40 percent,
while military operations other than war have greatly increased.
In 1989, our Service averaged 3,400 personnel deployed daily for
contingencies and exercises. Since the conclusion of the Gulf
War, that average has grown over fourfold to 14,600 in FY97. For
the foreseeable future, aerospace forces are likely to remain in
high demand.

We have taken several steps as a Service to mitigate the effects
of our high TEMPO, such as reducing deployment lengths, reducing
the number of headquarters inspections of units, and instituting
standdowns after lengthy deployments. Additionally, we have
introduced the use of a TEMPO tracking system and associated
metrics to better manage the TEMPO of our airmen. This tool gives
us an accurate way to identify and address TEMPO problems before
they occur.

While 91 percent of our active and Air Reserve Component units
are maintaining good readiness levels, caution indicators have
surfaced in some areas-most notably, pilot and navigator
retention have decreased markedly, some critical second-term
reenlistment rates are declining, and we are dealing with some
serious engine and spare shortages. We are taking steps to
address each of these readiness challenges.

Today, our Air Force remains the best in the world and ready to
answer the nation's call. The pace of current operations has
required our people to work harder, smarter, and longer hours to
maintain our readiness and they have risen to the challenge.
However, the combination of several eroding trends have peaked
our concern regarding current and future readiness ... working
harder, smarter, and longer is not enough. We will continue to
pursue a family of initiatives to protect Air Force readiness ...
our contract with the CINCs.


OPERATIONAL RISK MANAGEMENT

Maintaining our combat edge depends on our ability to train
realistically and safely. This involves accepting, but managing
risk. FY97 was the second safest year in our history in the
categories of ground fatalities, Class A flight mishaps, and
flight fatalities. We are working to keep these numbers low by
continuing to make mishap prevention an integral part of the
mission by emphasizing Operational Risk Management (ORM).

ORM is key to maintaining readiness in peacetime, dominance in
combat, and a crucial component for force protection. It is a
decision-making tool to systematically identify risks and
benefits and help determine the best courses of action for any
given situation. ORM is designed to enhance mission effectiveness
by minimizing risks in order to reduce mishaps, preserve assets,
and safeguard the health and welfare of our people. Although
historically our Service has been very successful in executing
its mission with minimum losses, there is still room for
improvement both in terms of mission accomplishment and mishap
prevention as our low mishap rates have "plateaued." This fact
reinforced our decision to implement the ORM process Air Force-
wide.

Proper application of the ORM process and tools will minimize all
dimensions of risk and reduce mishap rates without compromising
mission objectives. We are emphasizing ORM in multiple
educational programs and have initiated formal education and
computer-based training to instruct our people in the use of ORM.
All Air Force personnel should receive this training by 1 October
1998.


THE TOTAL FORCE

Today, More than ever, the Air Force relies on its total force--
Active Duty, Air National Guard, and Air Force Reserve working
together to meet today's peacekeeping and wartime commitments.
The total force was used extensively during 1997 as Air National
Guard and Air Force Reserve forces participated in every major
deployment and contingency tasking. This trend will continue as
Guard and Reserve forces play an increasing role in a Variety of
worldwide operations.

Air National Guard and Air Force Reserve aircrew members serve an
average of 110 days a year in uniform. During 1997, an average of
6,000 Guard members and Reservists were deployed each month to
support exercises, contingencies, and military operations a-round
the world. On a volunteer basis, members of the Air Reserve
Component deploy on a rotational schedule, helping to reduce
active duty TEMPO without jeopardizing their civilian employment

In some cases, the Guard and Reserve are paired together to
provide extended support to the active force. An example of a
joint Guard and Reserve mission is the 24 July to 25 October 1997
deployment to perform sustainment airlift from Ramstein Air Base,
Germany, to the forces in the Balkans. Other major deployments in
1997 included the deployment of security forces to Saudi Arabia;
the deployment of civil engineers, firefighters, and Air National

Guard air traffic controllers to Taszar, Hungary, as part of
Operation JOINT GUARD; the use of KC- 135s to refuel fighter
aircraft enforcing the no-fly zone over Bosnia; and the use of F-
15s and F- 16s to enforce the no-fly zone over Northern Iraq, as
well as the use of rescue crews to provide combat rescue support
for those forces. The Air National Guard and Air Force Reserve
also participated in over 60 exercises worldwide.

In addition to officially becoming a major command on 17 February
1997, the Air Force Reserve expanded its missions in several
areas. For example, in January 1997, an associate undergraduate
pilot training program was initiated at Columbus AFB,
Mississippi, and Vance AFB, Oklahoma. This program employs full-
time and part-time Reserve airmen as instructor pilots to offset
a shortfall in active duty instructors. The Reserve is also
conducting a three year study to determine the feasibility of
integrating Reserve pilots and maintenance personnel into active
duty fighter squadrons.

In May 1997, associate AWACS crews from the Air Force Reserve
Command's 513th Air Control Group (ACG) at Tinker AFB, Oklahoma '
participated in their first operational deployment--testing the
Western European integrated air defense system in exercise
CENTRAL ENTERPRISE 97. Since beginning operations in March 1996,
513 ACG personnel have performed over 2,000 man-days of service,
alleviating some of the TEMPO of our active duty crews. These
Reservists also prove invaluable at home station by performing
various duties such as preparing aircraft for upcoming missions
and performing supervisor of flying duties. The associate AWACS
Reserve unit also provides a way for the Air Force to retain its
investment in highly trained personnel who would otherwise be
lost separating from active duty.

In September 1997, the Air Force Reserve Command's 8th Space
Operations Squadron (SOPS) and the 310th Space Group were
activated at Falcon AFB, Colorado. The 8 SOPS provides near-real
time backup support to the primary Defense Meteorological
Satellite Program operations conducted by the National
Oceanographic and Atmospheric Agency.

In October 1997, the 439th Security Forces Squadron (SFS) at
Westover Air Reserve Base, Massachusetts, achieved full
operational capability. The Reservists of the 439 SFS augment the
820th Security Forces Group at Lackland AFB, Texas, with a
deployable force protection unit.

In 1997, the Air National Guard flew over 3,200 readiness support
airlift missions, 700 airborne transport missions, 500 fighter
deployment air refueling missions, and performed a variety of
other challenging missions. For example, in October 1997, three
153rd Airlift Wing C- 130 aircraft, crews, and support personnel
from the Wyoming Air National Guard deployed to Jakarta,
Indonesia, to fight widespread forest fires. The crews flew
hundreds of hours during their 60 day deployment using their
specially equipped C- 130s to suppress fires over a 3.5 million
acre area. During their deployment, the 153rd extinguished more
than 70 fires in open forest areas in the face of incredible

challenges posed by heavy smoke and extremely dry conditions.
This support allowed the Government of Indonesia sufficient time
to develop an effective firefighting plan of its own and organize
follow-on indigenous and commercial support to battle the
remaining fires.

In 1997, we transferred several new missions from the active
component to the Air National Guard including the operation of a
mobile ground station by the 137th Space Warning Squadron of the
Colorado Air National Guard and an increased share of the
international military flying training program.

Air National Guard and Air Force Reserve personnel remain an
integral part of our total force as they work side by side with
active duty airmen to accomplish the Air Force mission.


FORCE PROTECTION

We are committed to taking the necessary steps to protect our
people. We have addressed and corrected the deficiencies
identified by the Downing Commission and strengthened our force
protection posture throughout Southwest Asia. This included the
rapid deployment of additional security forces to Saudi Arabia to
relocate our people after the Khobar Towers tragedy. These forces
assisted with moving airmen from Dhahran to Prince Sultan Air
Base in Al Khaij and military and non-combatant personnel from
vulnerable facilities in Riyadh to a more secure location outside
the city. We have also enhanced our force protection equipment
and integrated intelligence assets and are adjusting our
doctrine, strategy, policies, and training accordingly.
Additionally, we are expanding the scope of our force protection
program to address our growing Aerospace Expeditionary Force
(AEF) requirements.

In 1997 we established the Air Force Security Forces Center at
Lackland AFB, Texas, comprised of the 820th Security Forces Group
(SFG) and the Air Force Force Protection Battlelab. The 820 SFG
is a rapidly deployable, self-contained unit integrating
essential force protection functions provided by security forces,
intelligence, Office of Special Investigation, medical,
communications, and engineering personnel. This organization
provides AEF commanders with the flexibility to tailor a force
protection package to meet the needs of their deployed location.
Today, squadron-sized security forces units deploy with each AEF
to provide a comprehensive stand-alone security and antiterrorism
force protection capability. Equipment like the Tactical
Automated Security System, which uses motion and thermal
detection capabilities for perimeter defense, is used to enhance
installation commanders' force protection situational awareness.
In 1997, the 820 SFG deployed three times: twice to Bahrain to
support the 366th Air Expeditionary Wing (AEW) and the 347 AEW,
and once to Egypt to support the BRIGHT STAR exercise.

The other component of our force protection program is the Force
Protection Battlelab. This battlelab is a compact, multi-
disciplinary 'think tank' chartered to objectively examine force

protection concepts to identify and define unmet needs. Once
needs are identified, the battlelab searches for creative, near-
term solutions through modeling and simulation, changes in
training or policy, available or easily modified technology, or
possible new uses for existing technology. The Force Protection
Battlelab has three ongoing initiatives. The first aims to
improve security at the South American ground-based radar sites
that support counter-drug operations. The battlelab is exploring
new ways to use existing thermal imagers to expand current
perimeter monitoring capabilities. The second initiative involves
exploring the use of unmanned aerial vehicles to provide defense
force commanders with real-time ground situational awareness. The
third initiative deals with increasing our ability to detect
vehicle explosive devices by using different configurations of
existing commercial off-the-shelf detection capabilities.
We will continue to emphasize investments in force protection
technology and its applications to provide a safer environment
for our airmen as they conduct operations worldwide.


SUSTAINED THEATER OPERATIONS

Since the NATO-led Operation JOINT ENDEAVOR / JOINT GUARD began
on 20 December 1995 to maintain the peace between the formerly
warring factions in Bosnia-Herzegovina, we have maintained over
2,900 personnel in direct support of this operation and flown
over 4,200 missions--25 percent of the coalition total. Our
missions include close air support, combat air patrol,
suppression of enemy air defense, air refueling, combat search
and rescue, and intelligence collection sorties. We have also
deployed space support teams to furnish critical space-based
communications, weather, navigation, and missile warning support
to the coalition forces.

In Southwest Asia we have deployed over 7,000 personnel since
August 1992 and have flown over 110,400 sorties--70 percent of
the coalition total--in support of Operation SOUTHERN WATCH to
ensure continued Iraqi compliance with the April 1991 United
Nations Security Council Resolution (UNSCR) 688.

Similarly, we have deployed over 1,200 personnel and flown over
3,325 sorties--72 percent of the coalition total--in support of
Operations PROVIDE COMFORT and NORTHERN WATCH to enforce the no-
fly zone over Northern Iraq. Additionally, our space support
teams are integrated into the combined air operations center to
provide deployed forces with support from our space-based assets.

Southwest Asia continues to be a very volatile region. Our AEFs
have proven to be an effective tool to strengthen relations with
coalition partners and respond to crises.


AEROSPACE EXPEDITIONARY FORCES

Our Service is exploring and refining concepts of operations and
logistics associated with the deployment and employment of AEFs.
We tailor AEF employment packages that provide CINCs with the

necessary command, control, mission, and support elements to
create a desired operational effect within 72 hours of initial
notification to employ forces. Our first AEF deployed in October
1995 to supplement Operation SOUTHERN WATCH. In 1997, we deployed
five AEFs for exercises and contingencies. In each case, we
created a tailored AEF by combining an appropriate mix of
squadron-level units. By varying the mix, an AEF can support a
broad range of missions, from humanitarian relief to contingency
operations.

In the combat configuration used in Southwest Asia, our AEF can
produce 70-80 combat sorties a day and may include bombers
employed from a home station or forward operating location. This
AEFs portfolio includes air-to-ground, air-to-air, suppression of
enemy air defenses, air refueling, and intelligence, surveillance
and reconnaissance assets. AEFs provide CINCs with a wide range
of airpower options to meet their specific theater needs.
Additionally, the AEFs ability to rapidly and decisively project
aerospace power into a theater of operations will allow greater
flexibility in determining the forward deployed forces necessary
to meet a CINCs requirements.

We are institutionalizing this expeditionary mindset within our
Service's culture by emphasizing the fundamentals of
expeditionary warfare in our exercises and training. This
includes rapid crisis response, an ability to operate out of
austere bed-down locations with minimum initial support, robust
and secure C2 linkages, robust force protection, and rapid,
effective employment. In this way, our forces focus their
logistics techniques to determine the absolute minimum support
required to deploy rapidly and employ immediately upon arrival.

To supplement our field tests, the Air Force AEF Battlelab is
exploring several ideas to improve our expeditionary
capabilities. One initiative is to demonstrate the use of
commercially available equipment to calibrate targeting and
sensor systems on multiple aircraft platforms. The current
calibration systems are unique to each aircraft, require
extensive logistics support, and can only be used in controlled
environmental conditions. This battlelab initiative would use a
calibration system common to all aircraft that requires less
logistics support, less set up time, and operates under any
environmental condition. We conducted a successful field
demonstration of this system last year during an AEF deployment
and continued to refine our expeditionary capabilities during
deployments to Southwest Asia.

In October 1997, the 366 AEW from Mountain Home AFB, Idaho,
deployed F- 15s, F- 16s, B- 1 bombers, and KC- 135s to Shaikh
Isa, Bahrain. During its deployment, the wing flew 444 sorties in
support of Operation SOUTHERN WATCH. Later that month, the 347
AEW deployed to the Middle East in response to Saddam Hussein's
refusal to comply with United Nations mandated weapons
inspections. This AEF deployed on short notice and included F-
15s, F- 16s, B- 1s, KC- 135s, and an Army Patriot battery. These
forces joined F- 117s and B-52s already in theater to provide the
CINC with highly flexible airpower options.


Maintaining an internationally recognized ability to deploy
rapidly, execute upon arrival, and sustain complex operations
will significantly enhance our ability to deter potential
adversaries. We currently have the capability to conduct both
lethal and non-lethal AEF operations worldwide. For the long-
term, we expect AEFs to continue to mature as effective tools for
crisis response and cooperative engagement with potential
coalition partners.


COOPERATIVE ENGAGEMENT

An expectation that the US military will need to be able to
incorporate the military capabilities of friends and Allies makes
it essential for us to broaden our relationships with the
militaries of other countries. These ties facilitate cooperation
with the US when crises arise, whether this be the need for quick
overseas basing access, or the need to build a coalition of
willing and capable allies. We are committed to cooperative
engagement programs and initiatives that increase mutual
understanding and enhance interoperability.

During the 1990s, Air Force Special Operations Command (AFSOC)
forces conducted over 150 operations in 22 countries, including
over 30 exercises in the Pacific and numerous military-to-
military training events in Latin America, Africa, and Europe.
AFSOC special tactics teams often help train foreign militaries
in subjects such as air operations, combat medicine, air traffic
control, and airbase defense.

Recently, the focus of our cooperative engagement and stability
enhancement efforts have been in our Partnership for Peace (PfP)
participation, our Military Contact Program, the Armaments
Cooperation Program, and our Security Assistance efforts, which
include Foreign Military Sales (FMS) and International Military
Education and Training (IMET).

In 1997, our Service participated in over 20 exercises with
approximately 25 PfP countries and conducted over 200 focused
Military Contact Program events in Europe alone. We maintain 220
agreements under the Armaments Cooperation Program in an effort
to encourage the exchange of information with our coalition
partners. These involve cooperative research and development,
scientist and engineer exchanges, equipment loans, and scientific
and technical information exchanges.

Additionally, our FMS program is currently managing over 4,600
active contracts for aircraft, spare parts, munitions, and
training totaling over $107 billion, while the IMET program
continues to provide all types of training--from flying training
to professional military education. In 1997 over 5,000 foreign
military members representing approximately 100 countries
received some form of training under the IMET program.

In April 1997, our Service hosted a gathering of the leaders of
the world's air forces. Eighty-four air chiefs participated in

this 'Global Air Chiefs Conference, a truly landmark event.
General Peter Deynekin, then Commander of the Russian Air Force,
characterized it as one of the most significant events of the
20th century. The significance of the conference lies in the fact
that despite widely differing languages and customs, each of the
air chiefs shares an appreciation for the unique capabilities of
airpower and for the revolutionary capability that can be
achieved when space-based assets can be effectively integrated
into aerospace operations.


SPACE OPERATIONS

An ability to conduct missions better from space will certainly
benefit all US forces. Space operations figure prominently in our
plans for the future. Our joint-use space-based systems are
increasingly responsible for the information stream and global
awareness that we cannot take for granted. In particular, 1997
saw the Air Force and the National Reconnaissance Office achieve
unparalleled levels of cooperation in enhanced space support to
theater warfighters and National Intelligence users. Today, it is
difficult to contemplate how a significant US military operation
could function without integrated space-based support.

That range of support is gradually becoming transparent to the
users. Our aircrews rely heavily on intelligence and weather data
derived from space systems. The command and control of air, land,
and sea forces is melded together with space-based communication.
Navstar Global Positioning System (GPS) satellites guide aircraft
and weapons precisely to targets and help avoid collateral
damage. In the future, near-real time targeting sent from sensors
directly into the cockpit will allow us to improve our
aircrews'lethality.

1997 was the busiest year thus far for Air Force space
operations. Our two major ranges, Vandenberg AFB, California, and
Patrick AFB, Florida, conducted 45 successful space and missile
launches, including range support and support services for every
government and commercial launch of the Space Shuttle, Pegasus,
Atlas, Delta, Titan IV, and Athena II boosters. In addition,
our Satellite Control Network maintained a 99.5 percent mission
effectiveness rate with over 159,000 satellite contacts.

On 23 February 1997, the first Titan IVB was launched to insert a
Defense Support Program (DSP) missile warning satellite into
orbit. The Titan IVB's upgraded solid rocket motors give it a 25
percent increase in payload capacity as well as greater
reliability. On 7 November 1997 our Service set a new mark with
the third successful launch of America's heavy lift Titan IV
within a 23 day period, eclipsing the previous record of 65 days
set in 1996. The Titan IV has a 95.7 percent success rate since
launching the first of 23 mission payloads into space in June
1989.

Despite the failure of a Delta II launch vehicle in January 1997,
there was a total of 10 successful Delta launches in 1997. These
included the launch of a next-generation GPS satellite in July

1997 to replenish the GPS operational constellation of 24
satellites and ensure that a continuous GPS signal will remain
available for precise navigation operations worldwide.

In the area of military satellite communications, MILSTAR
satellites are now providing secure, jam-resistant, nuclear-
survivable command and control communications to the East
Atlantic and European theaters. In Bosnia, the Joint Broadcast
System used direct satellite broadcasts to transmit live unmanned
aerial vehicle images and other large digital products to theater
commanders and supporting forces--dramatically increasing their
global situational awareness. Meanwhile, the Global Broadcast
Service is progressing toward its first launch in 1998 and will
give our forces similar broadcast services worldwide.

Today, without question, space-based capabilities are a vital
component that we depend on for the success of joint military
operations. Recently, the Air Force, the National Reconnaissance
Office, and the Defense Advanced Research Projects Agency, have
all agreed to have a joint space-based Moving Target Indicator
demonstration using technology, expertise, and resources from
all three. Enhancing space support to the warfighter remains a
top priority for our space operators.


MAINTAINING A QUALITY FORCE

People remain our most vital resource. The intense demands placed
on our airmen of all ranks as they perform Air Force missions
around the world require special individuals who are highly
motivated, well trained, and responsibly led.


RECRUITING QUALITY PEOPLE

We are committed to recruiting and retaining the high caliber
people necessary to lead our Service into the 21st century. In
FY97 we achieved our recruiting goal of 30,200 recruits--99
percent of whom were high school graduates. We were also
successful in reenlisting 1 10 individuals to fill critical
specialties who had previously left the Air Force. To date, new
enlistment contracts for FY98 are running slightly ahead of our
target--but recruiting remains a challenge. Ample opportunity to
attend college, a robust economy with low unemployment, military
drawdowns, and highly visible US commitments abroad have
decreased the pool of interested, qualified potential recruits.
Annual youth attitude surveys show the interest of young men in
serving in the Air Force has dropped from 17 percent in 1989 and
has stabilized at 12 percent. The interest of young women in
serving has remained relatively constant (around 7 percent) over
the same period; however, we did see a 1 percent drop in FY97.

Despite the fact that we have been able to recruit adequate
numbers of personnel, there has been a decrease in the number of
enlistees scoring in the top half on the Armed Forces
Qualification Test, down from 88 percent in 1989 to 79 percent
today. To address this trend, we have directed our recruiters to

concentrate their efforts on the college and college-bound
candidates. Additionally, it is becoming increasingly difficult
to fill the mechanical, pararescue, and combat control career
fields. To improve our success in manning these specialties, we
have directed a larger portion of our advertising budget toward
the technical market and have raised enlistment bonuses in the
most difficult-to-fill skills. Overcoming these recruiting
challenges is essential to maintain the caliber of airmen
necessary to effectively serve in our technologically
sophisticated aerospace force.


DEVELOPING THE AIRMEN OF THE FUTURE

After we recruit and induct young airmen, we invest in their
education and training to prepare them for today's demanding
operational environments and for future challenges. The high
standards of behavior expected of our personnel demand a strong
moral and ethical foundation. On 1 January 1997, we published an
Air Force Core Values pamphlet. Air Force core values-integrity
first, service before self, and excellence in all we do--apply to
all airmen of the Air Force, whether officer, enlisted, civil
servant, or contractor.

Our people are living these values every day. Like the members of
the 31st Civil Engineer Squadron and 31st RED HORSE flight from
Aviano Air Base and Camp Darby, Italy, who assisted with local
disaster relief after earthquakes devastated central Italy. Or
the members of the 9th Reconnaissance Wing at Beale AFB,
California, who volunteered countless hours to help 9,000 area
residents displaced by massive flooding--volunteers who provided
victims with food, shelter, and medicine and went the extra step
to comfort frightened children with toys, cookies, and a friendly
smile. This scene was repeated by the men and women of Grand
Forks AFB, North Dakota, who assisted over 25,000 flood victims
in that area.

Strong core values bind our people together and demonstrate to
the American people that our military forces are worthy of their
trust and support. Air Force men and women exhibit integrity,
selflessness, and excellence every day, in every comer of the
world, working side by side to accomplish their mission. This
effective working relationship begins on the first day of basic
training and is reinforced by integrating core values into every
aspect of our education and training programs.


GENDER-INTEGRATED TRAINING

Every year our Service trains more than 30,000 basic trainees--24
percent of our graduates are women. The Air Force has
successfully employed gender-integrated basic training since
1976.

In late 1997, Senator Kassebaum-Baker's advisory committee on
gender-integrated training released its report, calling for
changes in the structure of basic and operational training. We

are currently reviewing our training practices in light of the
Kassebaum report, and will forward our recommendations to the
Secretary of Defense in March 1998. As part of this effort, we
are reevaluating our basic training physical conditioning program
to ensure it meets the needs of our airmen and the needs of the
Air Force.


LEADERSHIP TRAINING

As an expeditionary force, we must assure the development of
"warrior-leaders" who can successfully lead air forces and others
with a wide variety of capabilities into a hostile, austere
environment. To win in combat, the development of warrior-leaders
is every bit as important as fielding the increasingly
sophisticated weapon systems necessary to fight a war. The
superior technology the United States can bring to bear will only
be successful if we have trained, capable leaders to employ it.

As a result, leadership preparation continues to be a cornerstone
of our education and training programs. To supplement leadership
preparation provided in the various levels of professional
military education, additional training is provided by major
commands for individuals selected as squadron commanders and by
Air University for individuals selected as group or wing
commanders. This training covers the everyday aspects of command
such as military and civilian personnel management, resource
management, legal issues, and complaint processing. our highest
level of leadership training occurs in the Senior Leader
orientation Course where new brigadier generals and civilian
equivalents receive training on key issues and on how to be
effective representatives of the Air Force.


AIRCREW TRAINING

The Air Force is the lead Service for the Joint Primary Aircraft
Training System (JPATS) Program. This joint Air Force and Navy
program is acquiring 372 JPATS aircraft for the Air Force, with
deliveries beginning in 1999. The T-6A Texan II will replace the
aging T-37s and vastly improve our undergraduate flying primary
training capability. The T-6A incorporates several features that
are not on current Air Force and Navy trainers. Improvements
include: missionized ejection seats, improved birdstrike
protection, electronic flight instrumentation and digital cock-
pit display, pressurized cockpit, and flexibility to accommodate
a wide range of male and female pilot candidates. We are also
modernizing our T-38 fleet, allowing pilot candidates to train on
modem avionics representative of the front line systems they will
eventually fly in combat.

To address the growing pilot shortage, we plan to increase our
yearly pilot production from 900 pilots per year to 1,100 pilots
per year by FY00. We are also examining various alternatives to
maximize the utilization of our T-38 fleet. Our increase in pilot
production has resulted in a corresponding shortfall in active
duty instructor pilots. Unable to pull more instructors out of

mission area cockpits, we have established an associate
undergraduate pilot training employ Air Force Reserve pilots as
instructors.  We initiated this program to program at Columbus
AFB, Mississippi, and Vance AFB, Oklahoma, in January 1997. In
the 12 months since the first instructor pilot started training,
we have hired a total of 43 of the 50 pilots scheduled to
participate in the program. Over 30 of these individuals are now
fully mission qualified and have flown well over 250 student
sorties in support of the specialized undergraduate pilot
training mission. Each Reserve instructor pilot will contribute
one-third of the number of sorties produced by an active duty
instructor pilot. Once the remaining Reserve instructor pilots
complete their training, we estimate that they will contribute
over 1,600 student sorties per year.

We are rapidly expanding this program to all student pilot
training bases and to other training aircraft to include the T-
37, T- 1, and AT-38 missions. When completed in the summer of
2000, this program will employ over 539 Air Force Reserve pilots
(114 full-time and 425 part-time) and produce a sortie rate
equivalent to 225 active duty instructor pilots.

We are also pursuing the development of revolutionary new ways to
train our operational aircrews. Distributed mission training will
use state-of-the-art distributed simulation technology and
advanced flight simulators to permit aircrews to remain at their
home units while 'flying" and training in synthetic battlespace,
hooked electronically to other aircrews located at distant
airbases. This will improve the quality and availability of
training while reducing aircraft operation and maintenance costs,
as well as limiting the amount of time our personnel will have to
spend away from home.


PROFESSIONAL MILITARY EDUCATION

Educating our airmen to be effective leaders, supervisors, and
managers is vital to our continued success. Enlisted Professional
Military Education (PME) broadens enlisted members'perspectives
and increases their knowledge of military studies, communication
skills, leadership, and supervision to prepare them to assume
more responsibility. In 1997, we conducted a review of all three
levels of our enlisted PME curriculum. We implemented a revised
curriculum for the Airman Leadership School in 1997 to eliminate
those items better taught at field level and place more emphasis
on the profession of arms. We are validating revised curriculums
for the Non Commissioned Officer Academy and the Senior Non
Commissioned Officer Academy that include subject areas like
stress management, suicide prevention, project management, and
diversity awareness.

For newly commissioned officers and selected civilians we are
developing an Air and Space Basic Course to provide a common
frame of reference for understanding and employing aerospace
forces. This course will focus on the history, doctrine,
strategy, and operational aspects of aerospace power. We will
conduct the first class in July 1998.


Follow-on professional military education for our officer corps
consists of Squadron Officer School, Intermediate Service School,
and Senior Service School. These schools teach the skills
necessary for good officership, command, and staff. They also
educate senior officers in the strategic employment of aerospace
forces to support national security objectives. Our officer
professional military education is currently undergoing a
complete curriculum review to ensure each level is appropriately
tailored to its audience. Additionally, we are pursuing
legislation to authorize granting Masters degrees to graduates of
Air Command and Staff College and Air War College.


RETAINING QUALITY PEOPLE

Training and educating our people is of little value if we cannot
retain them to benefit from their skill and experience.
Unfortunately, there are troubling trends in this area. Our
first- and second-term reenlistment rates have declined in each
of the past two years. Two initiatives we are implementing to
reverse these trends include expanding the Selective Reenlistment
Bonus (SRB) program to include additional Air Force specialties
and increasing SRB bonus rates in specialties where manning and
retention rates are low. Additionally, to ensure our first- and
second-term airmen have the information they need to make an
educated reenlistment decision, supervisors are now required to
address the benefits of an Air Force career during semiannual
feedback sessions.

For the officer corps, we are concerned that pilot and navigator
retention rates have declined each of the past three years. Since
FY95, pilot retention has fallen from 87 percent to 71 percent
and navigator retention has slipped from 86 percent to 73
percent. Leading indicators are also showing increasingly
downward trends. For example, the number of pilots accepting
aviator continuation pay is down from 59 percent in FY96 to 33
percent as of mid-January 1998. This is a 48 percent drop from
the record high FY94 level of 81 percent. Similarly, pilot
separations increased 27 percent between FY96 and FY97 and
continue to rise.

One of the major factors that weighs heavily on an individual's
decision to stay in or leave the Service is the issue of
compensation. The Air Force appreciates Congressional support in
1997 for legislation to restore the original value of the aircrew
compensation package. We are closely monitoring aviator retention
and are cautiously optimistic about the impact of the new
incentive at this point. Compensation is but one of several
quality of life initiatives that we are pursuing to make military
service more attractive to our personnel. These initiatives
should create positive incentives for all Air Force members and
positively impact retention in a variety of career fields.


ENHANCING QUALITY OF LIFE

Quality of Life (QoL) investments have the greatest rate of
return in terms of recruiting and retaining quality airmen for
our highly technical aerospace missions. Based on feedback from
the field, our corporate strategy is to pursue initiatives
supporting seven quality of life priorities that satisfy a broad
range of needs and expectations: 1) fair and equitable
compensation; 2) balanced TEMPO; 3) quality health care; 4) safe,
affordable, and adequate housing; 5) a stabilized retirement
system; 6) community programs; and 7) expanded educational
opportunities.


Fair and Equitable Compensation

Adequate compensation has the most impact on our people's
standard of living and remains a key element of our total force
QoL agenda. Continued Congressional support for competitive
annual pay increases, cost of living allowance increases, and
improvements to permanent-change-of-station cost reimbursements
are critical to maintaining the value of this important QoL
component.

We continue to support the commissary benefit as an important
non-pay entitlement upon which our active duty personnel, reserve
personnel, and retirees depend. Our people count on savings from
commissary purchases to extend already stretched incomes--
offsetting lagging pay raises, inflation, and out-of-pocket
housing and moving costs. To young enlisted families, elimination
of the commissary subsidy would have the same impact as a 9
percent pay cut.

To reduce the out-of-pocket expenses members incur during changes
of station, we have approved $101 million in nonappropriated
funding to construct 420 new Temporary Lodging Facility (TLF)
units and repair another 305. Surveys show 88 percent of members
needed an average of 14 days in temporary quarters upon arrival
at their new duty location. The average off-base lodging cost at
the locations where we are building new TLFs is $70 per day
compared to $24 on base. Building these units will save money for
both the members and the Air Force.


Balanced TEMPO

Air Force TEMPO was very high in 1997--supporting numerous major
contingency operations and over 180 coalition, allied, and joint
exercises around the world. Since 1989, deployment requirements
have quadrupled, while permanent forward basing has decreased by
66 percent. Endstrength has decreased by 39 percent since 1986,
the beginning of the drawdown.

TEMPO is inextricably linked to both readiness and QoL. Our
objective is to maintain a reasonable TEMPO that balances the
needs of our contemporary military mission with our people's QoL.
We have established 120 days per year as the 'desired maximum'
number of days individuals should be away from their home station
for any reason. Air Force management initiatives that were

implemented between FY94 and FY96 (Global Military Force Policy,
Global Sourcing, and increased Air Reserve Component
participation), resulted in a reduction in the number of weapons
systems/skill areas that exceeded our 120-day rate from 13 to 4.

However, despite continued aggressive management of resources,
the number of systems/skills above the 120-day mark increased to
ten in FY97. We are addressing this increase by taking steps to
mitigate each of the factors contributing to high TEMPO--
operational deployments, inspections, and exercises.

We have reduced typical aircrew deployments from 90 to 45 days
and instituted post-deployment standdowns to give people a break
after deployments of 45 or more days, allowing time to reacquaint
with family and return to normalcy. Additionally, in 1998, the
length of unit inspections will be reduced by 10 percent with an
additional 20 percent reduction in FY99. There is also an effort
underway to use real-world deployments to inspect operational
readiness as an alternative to using simulated scenarios for the
purpose of inspection. This initiative was used to inspect the
366 AEW from Mountain Home AFB, Idaho, in 1997 during its
deployment to Bahrain in support of Operation SOUTHERN WATCH. In
the short- to mid-term, there are also efforts on the Joint Staff
and the Air Staff to reduce exercises. The joint goal is to
reduce exercise man-days by 15 percent before FY01, and we
anticipate a 10 percent reduction in Air Force exercises by FY02.

On 1 October 1997, we implemented a new system to track TEMPO.
The objective is to provide senior leaders with the information
they need to identify highly-tasked weapon systems and career
fields and, if necessary, take action to reduce their stress. We
distributed this new management system to all major commands and
military personnel flights with an easy-to-use database that
identifies the number of days a person has been on temporary duty
in a 12-month period. This database tool allows Air Force
commanders, using laptop or desktop computers, to view TEMPO
information from the Air Force, major command, base, and unit
level by Air Force specialty code, weapon system, or social
security number. This system gives commanders a tool they need to
help manage the TEMPO of their units.

Our efforts to balance the impact of TEMPO are designed to offset
the effects of increased TEMPO levels. We are closely monitoring
the situation to deter-mine our ability to sustain this level of
activity.


Quality Health Care

We have an obligation to provide high-quality, affordable health
care for all of our beneficiaries. The Air Force operates 46 of
the Department's 115 hospitals and 33 of its 471 clinics. Each of
these facilities is accredited by the Joint Commission on
Accreditation of Healthcare Organizations, and meets the same
standards as civilian hospitals.

For the past five years, average accreditation scores for
military hospitals have exceeded the average civilian scores.
Furthermore, 17 percent of Air Force facilities received
accreditation with commendation--the highest rating available--
compared to 12 percent in the civilian sector.

The TRICARE health plan which combines military and civilian
medical capabilities to provide care for active duty and CHAMPUS-
eligible individuals is a vital tool to complement Air Force
hospitals and clinics. While the TRICARE program has experienced
some problems in the early going, it has proven to be a success
on the whole. A survey last year of TRICARE Prime enrollees found
that 80 percent of TRICARE participants rated their care good to
excellent and 9 out of 10 would reenroll. Problems that patients
have experienced, such as multiple co-payments for a single
episode of care and the portability of Prime enrollment, will be
resolved in 1998. Although TRICARE will be fully implemented by
Spring 1998, the law prohibits Medicare-eligible retirees from
participating in TRICARE. A tri-Service task force is looking
into alternatives for their care, as space-available care becomes
more limited.

One step in meeting the commitment to care for this group is
Medicare Subvention legislation that allows Medicare
reimbursement for medical care provided in Department of Defense
(DoD) facilities to Medicare-eligible beneficiaries. We strongly
support this approach. This is clearly the first step in meeting
the health care needs of our seniors. Our Service will be
participating in the Congressionally-mandated Medicare
Demonstration project for military retirees over age 65. We are
also evaluating other medical alternatives for these older
retirees, such as the Federal Employees Health Benefits Program
and expansion of the National Mail Order Pharmacy Program.

Safe, Affordable, and Adequate Housing

Access to safe, affordable, and adequate housing should be
available for every member of our military forces. Last year we
completed a dormitory master plan to clearly identify housing
requirements for our unaccompanied enlisted force and instituted
a phased plan to accomplish it. The first step in this plan is to
eliminate the remaining permanent party, central-latrine
dormitories.

The second step, which will begin in FY00, is to provide new
dormitories to meet our projected 17,000 room deficit. We remain
firmly committed to the DoD "1 + 1" dormitory construction
standard for all new permanent party dormitories. This provides
for two-person occupancy of an apartment-like unit with a shared
bathroom and kitchen and separate, private sleeping quarters. The
first unit of this type has been built at McChord AFB,
Washington, and is a big hit with our airmen.

The third step calls for the future replacement or conversion of
our existing adequate dorms as they wear out. We will not convert
or replace these adequate "2+2" dormitories until their facility
condition warrants a capital investment. Until these existing

units are replaced or reconfigured, we are phasing in a private-
room assignment policy that will authorize private rooms for all
our unaccompanied airmen by FY02.

The combined strategy of eliminating central-latrine dorms,
building new "1 + l" dorms to meet our deficit, and implementing
a private-room assignment policy goes a long way toward improving
the quality of life and retention of our unaccompanied airmen.
This commitment to our airmen extends to our men and women
stationed overseas, especially in areas such as South Korea where
the lack of unaccompanied on-base housing has force protection
and readiness implications.

For Air Force families, we must revitalize over 6 1,000 housing
units that have an average age of approximately 35 years.
Although the Air Force owns or leases more than 110,000 homes,
41,000 families remain on base housing waiting lists. It appears
that privatization may offer an opportunity in this area.
At Lackland AFB, Texas, a privatization project appears feasible
to replace 272 housing units and construct an additional 148
units on base. At Robins AFB, Georgia, we are developing a
privatization project for 670 units on land currently owned by
the Air Force that will be conveyed to a developer to create a
new neighborhood immediately off base. Under the privatization
approach, housing units are leased by the privatization owner to
Air Force members who pay rent and utilities equal to what they
receive as basic allowance for their housing.

Privatization provides an opportunity to bring substandard
housing units up to standards in significantly less time than it
would take under the current system. We will implement this
innovative approach where it is economically and financially
feasible to do so.


Stabilized Retirement System

Because of the critical link between retirement, retention, and
readiness, we continue to support preservation of the current
retirement system. The 1980s reforms to military retirement
devalued it as a retention tool. Members affected by these
reforms are telling us two things about retirement. First, having
lost 25 percent of its lifetime value during these reforms,
military retirement is no longer our number one retention tool.
Second, our members are uncertain that the retirement plan they
signed up under will be there when they do reach retirement
eligibility. We continue to closely monitor our officer and
enlisted retention rates to ascertain what impact military
retirement (and other personnel programs) play in our
members'decision to stay in or leave the Service. We believe it
is imperative to preserve the current retirement system. The mere
suggestion of a change to the military retirement system causes
serious concern throughout the force. We need Congressional
support to stabilize and preserve the military retirement system.
Our readiness depends on it.

Community Programs

Air Force community programs are designed to help active duty
members with their dual responsibilities as military members and
parents. They provide child care, before- and after-school
programs for children 6-12 years of age, youth centers for teens,
and family support centers to help individuals cope with family
separations.

At the end of FY97, our Service was able to provide 57 percent of
the 86,000 needed child care spaces. Facility projects and
funding are in place to increase this to 65 percent by 2002.
Enhancing and expanding the before- and after-school programs for
children 6-12 years of age is a major part of our efforts in this
area. These programs offer direct supervision for children who
may currently stay at home alone before and after school and
during holidays.

Teen issues continue to be on the front burner in all Air Force
communities. An Air Force-wide Teen Forum was held to identify
issues and begin planning initiatives to improve services. To
improve program quality, youth programs are being affiliated with
the Boys &. Girls Clubs of America, and new or expanded youth
centers are under construction at many installations.


Expanded Education Opportunities

A fully-funded tuition assistance program and exploitation of
distance learning technologies are two key components of our
quality of life-related educational programs. Both of these
programs provide exceptional educational opportunity which is
consistently cited by our new recruits as the number one
reason they enlist in the Air Force. Our Community College of the
Air Force also continues to provide our enlisted force the means
to earn job-related Associate degrees. This incentive not only
motivates our airmen to achieve educational goals, but also
serves to provide technically-proficient personnel for the Air
Force's mission requirements. The opportunity provided by the
1996 Veterans Benefits Improvement Act to allow Veterans
Educational Assistance Program contributors to convert to the
much more advantageous Montgomery GI Bill was well received--61
percent of those eligible in the Air Force made the conversion.


PROMOTING EQUAL OPPORTUNITY

The Air Force gains its strength through diversity. Racial
minority representation in our Service has risen from 14 percent
in 1975 to 23 percent today. Women now comprise 17 percent of the
force-- 16 percent of the officer corps and 18 percent of the
enlisted force. Our people feel that they are being treated
fairly and know programs exist to bring complaints of
discrimination and harassment to the attention of their
supervisors.

We have two such programs that military and civilian personnel
may use--the military equal opportunity program and the civilian
equal employment opportunity program. We are conducting a top-to-
bottom review of both programs to see if they can be managed more
efficiently and effectively and to determine if staffing,
training, and funding are adequate to carry out their respective
responsibilities. The review is expected to be complete in early
1998.

The Air Force equal opportunity program will continue to stress
command commitment and accountability, clarity of policy,
effective training, and fair complaint handling. Our goal is to
promote individual opportunity and professional growth in an
environment free from discrimination and harassment.


PREPARING FOR THE 21ST CENTURY-
STRENGTHENING CORE COMPETENCIES

Our people deserve to be equipped with the right tools to
accomplish our missions. The Air Force modernization program is
designed to enhance the unique capabilities embodied in our
specialized core competencies--Air and Space Superiority,
Precision Engagement, Global Attack, Rapid Global Mobility,
Information Superiority, and Agile Combat Support. These
competencies provide the rapid, precise, and global response that
gives our combatant commanders and the National Command
Authorities the necessary options to respond to regional crises.


AIR AND SPACE SUPERIORITY

Air and space superiority is a fundamental requirement for all
operational concepts in Joint Vision 2010 and is a prerequisite
to achieving full spectrum dominance. It is essential that US and
allied forces, both in-place and those deploying to theater, be
protected from enemy air attacks early in the conflict. As
potential adversaries acquire more capable fighter aircraft and,
importantly, longer-range air-to-air missiles, it will become
more difficult for a small expeditionary force to defend friendly
airspace effectively and to secure air superiority quickly.

The National Defense Panel pointed out that legacy systems
procured today will be at risk in the 2010-2020 time frame. That
is precisely why our Service is investing in the leap-ahead
capability embodied in the F-22 Raptor. Three distinguishing
factors: supercruise; stealth; and integrated avionics make the
F-22 truly revolutionary. The F-22's ability to engage enemy
aircraft before being detected by them will allow our forces to
shoot down large numbers of enemy aircraft while minimizing the
number of our fighters lost in air-to-air engagements. This high
exchange ratio, coupled with the F-22's ability to operate
effectively in the vicinity of surface-to-air missiles, will
enable our forces to achieve a dominant air defense posture and
air superiority within the early days of a major theater war. The
F-22 will enable the United States to dominate the air arena and
deny our adversaries sanctuary--giving every member of the joint

team the ability to operate free from attack and free to attack.
Additionally, in the future, the integrated air-to-ground
capability of the F-22 could make it our high-end attack
aircraft.

The Raptor successfully completed its first flight in September
1997, begins flight testing at Edwards AFB, California, in early
1998, and will enter operational service in 2005. Funding
stability for this critical modernization effort is essential for
program stability.

In addition to the threat posed by advanced enemy aircraft, the
National Defense Panel also recognized the importance of
defending key regional coalition partners against enemy missile
attack. We are developing the Airborne Laser (ABL) to counter
this threat. This truly revolutionary weapon will change the
military's concept of defense and open the door to a new era of
warfare. Its "speed-of-light" capability to shoot down Theater
Ballistic Missiles (TBMs) in their vulnerable, boost-phase
portion of flight can deter the use of these weapons by our
adversaries by forcing them to face the possibility of their
weapons falling back on their territory. This year, the A13L
showcased its shooter, sensor, battle management, and
communications capabilities as part of a joint multi-layered
theater missile defense architecture in the ROVING SANDS 97
wargame. In this simulated scenario, the ABL shot down 16 of 17
targets it engaged and provided missile launch warning, launch
and impact point predictions, and trajectory data to the joint
force.

The ABL program is on track, meeting all its milestones, and will
demonstrate its lethality with an actual TBM shootdown
demonstration in 2002. The ABL will reach initial operational
capability with three aircraft in FY06 and full operational
capability with seven aircraft in FY08.

Space-based assets will enhance the success of the ABL. For
example, the Space-Based Infrared System (SBIRS) will provide
cueing for the ABL as well as all other missile defense systems.
SBIRS will consist of constellations of satellites in high and
low orbits and will provide improved detection and warning of
strategic and theater missile launches. The SBIRS High component
satellites are necessary to replace the current Defense Support
Program (DSP) constellation that provides warning of missile
attack. The last DSP satellite will be launched in 2003 and a
follow-on system is needed to maintain global coverage.

SBIRS High will provide complete coverage of the northern
hemisphere and most of the southern hemisphere, providing warning
of hostile missile launches, missile tracks through burnout,
launch point and initial impact point prediction, and target
handover to ground-based radars and the SBIRS Low component.
SBIRS High sensors will also gather technical intelligence and
perform battlespace characterization and pass this information on
to the warfighter in real time.

The SBIRS Low component will acquire and track missiles during
the midcourse of their flight. It will track small, cold bodies,
such as reentry vehicles, against the deep space background,
discriminate warheads from decoys, and pass this information to
missile defense systems. The precision tracking of the threat
reentry vehicles by SBIRS Low will significantly increase the
probability of a successful intercept. SBIRS will complement the
F-22 and ABL to enable our forces to dominate air and space as
part of achieving full spectrum dominance.

Space-based support is rapidly becoming a prerequisite for
successful military operations on the land, sea, and in the air.
Integrating space-based systems into all aspects of its
operations is a top Air Force Priority. This objective has
implications for each of the Air Force core competencies and is
the foundation for our Service's continued evolution as an
aerospace force. But space-based capabilities can only be made
available with reliable, cost-effective spacelift. Toward that
end, we are developing the Evolved Expendable Launch Vehicle
(EELV).

The EELV will replace the current fleet of launch vehicles with a
family of vehicles to provide assured access to space. The EELV
will enter operational service with government flights of medium
and heavy lift variants scheduled as early as 2002 and 2003
respectively. EELV will significantly improve DoD, civil, and
commercial launch operations by reducing costs, shortening
timelines, and enabling more launches per year. We have recently
settled on a strategy to carry two contractors forward into the
engineering and manufacturing development and production phases.
This decision was based on a potential private sector market
significantly larger than originally envisioned for EELV. The
benefits from this new strategy include a more robust industrial
base and two sources to provide continued competition into
production and is an example of our revolution in business
practices.


PRECISION ENGAGEMENT

Today, and for the foreseeable future, successful military
operations will depend on the ability to reliably achieve desired
effects while limiting casualties and minimizing collateral
damage. We are using the power of space-based systems to support
a new generation of very accurate munitions that exploit the
power of satellite navigation to find their way to within feet of
any target. We are also investing in greater numbers of advanced
precision weapons capable of killing multiple targets on a single
pass, and improving our day, night, and adverse weather precision
employment capabilities to enable pinpoint target accuracy.

We are working hard to field advanced munitions that will further
enhance the range of our precision engagement capabilities like
the inexpensive Joint Direct Attack Munition (JDAM) Global
Positioning System guidance kit that converts 1,000 and 2,000
pound general purpose and penetrator warheads into highly
accurate, adverse weather weapons with in-flight retargeting

capability. Initial JDAM drop test results were impressive, with
impacts well within the 13 meter requirement. JDAM low rate
initial production began in FY97 and deliveries will start in
FY98.

The long range, low observable, conventional, precision guided
Joint Air-to-Surface Standoff Missile (JASSM) will enable
precision engagement of high value, heavily defended, fixed and
relocatable targets. This is another truly revolutionary weapon
system at a very affordable price. The decision to proceed to
engineering and manufacturing development is scheduled for FY99-
The low rate initial production decision is scheduled for FY00.

The Joint Standoff Weapon (JSOW) will permit highly accurate,
adverse weather employment against land and sea targets at
standoff ranges of 15-40 miles. We will use two variants with
submunitions designed to neutralize both soft and heavily armored
targets. We will begin buying JSOW soft target variants in FY98
and hard target variants by FY99.

The Sensor Fuzed Weapon (SFW) dispenses cluster munitions which
will provide multiple kills per aircraft pass against land combat
and support vehicles. Full rate production of baseline SFW began
in FY96 and initial operational capability was declared in early
FY97. The Air Force initiated Pre-Planned Product Improvement
(P31) development in FY96. SFW P3I expands the weapon's footprint
by 50 percent, incorporates a dual mode Laser/Infrared sensor and
a multi-purpose combination warhead, and increases kills per pass
to 233 percent of the requirement for the current baseline SFW.
Production will begin in FY99. About 3,000 of the 5,000 Planned
weapons will include P3I improvements.

The Wind Corrected Munition Dispenser (WCMD) guidance tail kit
will provide the capability to correct for launch transients and
wind effects and give the Air Force a first time capability to
deliver area munitions such as Combined Effects Munitions, GATOR,
and SFW accurately from medium to high altitude. Full rate
production is planned for FY00.

To counter proliferation of chemical and biological weapons, we
plan to enhance the counterforce capability of our Conventional
Air Launched Cruise Missiles against fixed chemical/biological
production and storage facilities. Funds for this effort were
made available by OSD as a result of a joint OSD-Interservice
review of current capabilities to attack such targets. Elsewhere,
we are working on the Agent Defeat Weapon, a capability to
neutralize (with low collateral damage) chemical and biological
weapons before they are employed. This capability is currently in
concept exploration and definition.

The Joint Strike Fighter (JSF) is a precision engagement asset
that will replace the aging fleets of Air Force F- 16 and A- 10
aircraft. The JSF will provide a less expensive multi-role
partner for the F-22. The F-22 and JSF are intended to be
complementary, not interchangeable. Together they represent a
synergistic high-low capability mix. The F-22's ability to gain
air dominance by penetrating and suppressing the most lethal

ground-based and airborne systems of the next century makes it
possible for us to design a multi-role aircraft which is less
capable and therefore less costly. This is the same high-low mix
principle we utilized with the F-15/F-16 partnership. Without the
F22, the JSF would be hard pressed to perform its mission against
current and impending threats with the same effectiveness. The
JSF's affordable balance of survivability, lethality, and
supportability will bring precision engagement to the future
battlespace while simultaneously decreasing life cycle costs.

The JSF program is on track to supply over 2,900 next-generation
multirole strike fighters to the Air Force, Navy, Marines, and
the United Kingdom Royal Navy. There are several other interested
Allies that may expand and extend the JSF overall quantity.
Delivery of the first operational JSF is scheduled for FY08.

Successful precision engagement is as dependent on timely and
accurate information as it is on precision weaponry and capable
delivery platforms. Rapidly getting this information to our
aircrews for mission planning and target study is critical for
mission success. Toward that end the Air Force is evaluating
systems like the National Eagle system.

Housed in a twenty-foot deployable shelter, National Eagle
receives and processes near-real time imagery from satellites and
the Predator UAV and fully integrates it with the Air Force
Mission Support System and the PowerScene mission visualization
system. National Eagle provides the route planning and 'fly-
through' mission visualization capability that enables our pilots
to practice their missions in virtual reality at a computer
console before strapping into their aircraft for an actual
mission. National Eagle is a refinement of the technique that was
effectively used in Bosnia during Operation DELIBERATE FORCE to
increase mission success and avoid unnecessary collateral damage.
We will continue to search for similar innovative initiatives to
integrate air and space assets to further enhance the
effectiveness of aerospace power.


GLOBAL ATTACH

To quickly halt enemy forces in the early phase of a conflict,
the US must maintain its unique ability to project power rapidly,
precisely, and globally--to quickly find and attack or influence
targets worldwide from air and space. Air Force global attack
assets are designed to fill this need, responding anywhere in the
world in a matter of hours.

Global Power missions illustrate this capability and are
quarterly requirements for each Air Combat Command bomb wing. The
purpose of these missions is to demonstrate to any potential
adversary the capability of US aerospace forces to project power
from bases in the continental United States to anywhere in the
world within 24 hours. In FY97, 32 global power missions were
flown by B-1s, B-2s, and B-52s throughout the world. Missions
with durations over 30 hours, taking off and landing at home
station, are not uncommon. This greatly increases the options

available to the CINCs during crises, while lowering aircrew
TEMPO by allowing them to operate from their home stations.

Bomber operations from forward locations provide commanders with
the added mass, flexibility, and higher utilization rates
critical to the halt phase. 1997 witnessed the first in-theater
deployment of bombers with an Aerospace Expeditionary Force when
B-1s deployed to Southwest Asia to support extensions to 
Operation SOUTHERN WATCH.

The B- 1 Lancer is the Air Force's primary long range
conventional delivery system. In October 1997, the Air Force
suspended the B-1's active nuclear support role. It remains on
schedule for conversion to a conventional role under the multi-
phased Conventional Mission Upgrade Program (CMUP).

The B-1 carries three families of cluster bomb weapons, including
the anti-armor SFW, making it the first bomber with this critical
halt phase capability. in April 1997, the Defensive Systems
Upgrade Program, a component of the CMUP, entered into the
engineering and manufacturing development acquisition phase. It
includes the ALR-56M radar warning receiver for improved
situational awareness and a fiber optic towed decoy for radio
frequency jamming. Additionally, in July 1997, the B- 1 received
approval for full rate production of the GPS and communications
upgrade portions of the CMUP.

By the second quarter of FY99, we will equip eight B-1s with the
JDAM and the interim ALE-50 Towed Decoy System for survivability
against radar threats. By FY02, the B- 1 will achieve its initial
operational capability with the WCMD, JSOW, JASSM, and the full
defensive system upgrade to include the Joint Air Force-Navy
Integrated Defensive Electronic Countermeasures System.

The B-2 Spirit is our multi-role, heavy bomber capable of
delivering both conventional and nuclear munitions. Achieving
initial operational capability in April 1997, the B-2 brings
massive firepower to bear, in a short time, anywhere on the
globe. Its low-observable, or 'stealth," characteristics give it
the unique ability to penetrate an enemy's most sophisticated
defenses and threaten its most valued and heavily defended
targets. The B-2 has the capability to deliver a wide variety of
precision and non-precision weapons including the JDAM, GPS Aided
Munition, SFW, Cluster Bomb Units, mines, and general purpose
munitions ranging from 500 to 2,000 pounds.

The GBU-37, a GPS guided, 4,700 pound, deep penetrating munition
was added to the B-2 arsenal in late 1997. This weapon is
currently the only all-weather, near-precision 'bunker busting '
capability available to warfighting CINCs. B-2 conventional
weapons integration will continue to be enhanced with the
addition of JSOW in FY99 and JASSM in FY02.

For more than 35 years, the B-52 Stratofortress has been the
primary strategic heavy bomber force for the United States. The
B-52 has the combat proven capability of dropping or launching a
significant array of weapons in the US inventory. It is the only

Air Force aircraft capable of delivering all of the following
precision, standoff weapons: the AGM-129 Advanced Cruise Missile,
the AGM-86B Air Launched Cruised Missile, the AGM-84 HARPOON
anti-shipping missile, the AGM-86C Conventional Air Launched
Cruise Missile, and the AGM-142 missile. Additionally, the B-52
has the capability to integrate future standoff and precision
conventional munitions.

Rounding out the Air Force global attack assets are the Minuteman
and Peacekeeper ICBM fleets. Both the Minuteman and Peacekeeper
systems provide rapid, precision strike capability. The Minuteman
fleet is undergoing modernization programs, including propulsion
and guidance replacements, to continue to ensure the fleet
remains a reliable and credible deterrent to nuclear attack. The
Peacekeeper fleet will continue to be a nuclear deterrent until
deactivated under the provisions of START II.


RAPID GLOBAL MOBILITY

Rapid global mobility ensures our nation can rapidly respond to
the full spectrum of contingencies--from combat operations, to
humanitarian relief, to peacekeeping, with the right force, at
the right time, and the right place. Air mobility missions
include the airlift and/or airdrop of troops, passengers,
supplies, and equipment to locations around the globe, as well as
air refueling for Air Force, sister Service, and allied aircraft.

Air mobility forces also provide worldwide aeromedical evacuation
of patients, participate in special operations, and support other
national security requirements. Rapid global mobility is the
joint team's most reliable combat multiplier.

Airlift and air refueling forces provide tremendous speed and
flexibility in deploying, employing, and sustaining America's
military forces. Air mobility forces operate as part of a larger
joint warfighting team, working closely with air, land, and naval
forces to meet operational requirements for the unified
commanders.

The C- 17 is rapidly becoming the new core airlifter of the Air
Force's mobility fleet. Its ability to carry outsize cargo into
austere airfields is essential in deploying our forces virtually
anywhere on the globe--a capability no other nation in the world
has. This capability was recently showcased during CENTRAZBAT 97,
a combined force exercise consisting of forces from the US,
Kazakhstan, Uzbekistan, Kyrgyzstan, Russia, and Turkey. In this
exercise eight C-17s flew 7,800 miles non-stop from Fort Bragg,
North Carolina, to air drop troops and equipment in Central
Asia--the longest air drop mission in history.

In 1997, the C-17 supported our forces in Bosnia, Haiti, and the
Middle East, while accomplishing numerous global movements on
short-notice. From transporting Army rocket launchers from
Oklahoma to Korea, to supporting the evacuation of non-combatants
from Liberia, to humanitarian relief flights to Central Africa,
the C- 17 continues to carry the load for the joint force and
will provide unparalleled reach well into the new millennium.


Another important aspect of our mobility capability was
demonstrated in 1997 by members of the 352nd Special Operations
Group and 100th Air Refueling Wing. These forces deployed to
Libreville, Gabon, in West Africa, as part of an enabling force
to support the Joint Task Force Operation GUARDIAN RETRIEVAL.
This operation was initiated to evacuate the estimated 550
American citizens in Zaire to protect them from the violence
associated with the civil war there. The airmen joined about 400
soldiers, sailors, and Marines comprising the joint task force
ashore in West Africa.

The deployment came just weeks shy of the first anniversary of
Operation ASSURED RESPONSE when Air Force Special Operations
Forces (SOF) units deployed to Africa to help evacuate more than
2,400 people from Liberia. Our SOF forces maintain the highest
tasking rate in the Air Force and it is critical that they are
properly equipped to deal with the increasing number of military
operations other than war. These operations require long range
vertical lift capability presently supplied by MH-53J and MH-60G
aircraft.

Our plan to acquire CV-22s for our SOF forces will provide long
range, adverse weather, clandestine penetration of medium to high
threat environments in politically or militarily denied areas to
execute personnel recovery operations, infiltrate, exfiltrate,
and resupply SOF forces. The CV-22's speed, extended range, and
survivability will significantly increase the warfighting CINC's
ability to conduct operations in denied territory. Air Force
Special Operations Command will receive 50 of the tilt-rotor
aircraft. The CV22 is expected to make its maiden flight in 2000.
Hurlburt Field, Florida, Will receive operational aircraft
beginning in 2004.

We are also modernizing our executive fleet by replacing the VC-
137 fleet at the 89th Airlift Wing at Andrews AFB, Maryland. The
VC- 137s will be replaced with four C-32A (Boeing 757) and two C-
37A (Gulfstream V) aircraft. All aircraft will be delivered in
1998.

Global Access, Navigation, and Safety (GANS) is an Air Force
management initiative established to harmonize requirements and
acquisition of several navigation and safety-related programs.
The purpose of GANS is threefold: to organize related navigation
and safety programs and integrate Air Force efforts through
combined Air Staff and Major Command integrated product teams; to
serve as a requirements and acquisition management tool; and to
establish an avionics acquisition modernization strategy designed
to minimize platform downtime and integration costs. The GANS
process provides implementation planning for one of the largest
of these programs, Global Air Traffic Management (GATM). We will
sustain our rapid global mobility core competency by acquiring
state-of-the-art GANS systems for our air mobility forces to
preserve access to prime global airspace routes in the
future.

Additionally, latest technology, commercial ground and air
traffic warning systems using digital terrain database displays
and GPS have been established as standard equipment for all Air
Force passenger capable aircraft. This equipment is to be
installed as soon as possible, but not later than 2005, to
enhance our ability to safely operate in higher traffic densities
of the 21st century.

Modernization of the Active and Reserve Component C- 130 airlift
fleet is on track. This program consists of modification of our
existing C-130s and limited procurement of the C-130J. Programmed
modifications are designed to increase reliability,
maintainability, combat capability, and safety. Our current plan
is to modernize over 350 existing aircraft between FY00 and FY09.

Our Pacer CRAG (Compass, Radar And GPS) avionics upgrade to the
KC-135 fleet is also on track. This commercial off-the-shelf
modification program will eliminate the need for a navigator on
most missions. Recent additions to the Pacer CRAG program include
a Traffic Alerting and Collision Avoidance System (TCAS), an
Enhanced Ground Proximity Warning System (E-GPWS), a Standby Air
Data Indicator, and a Reduced Vertical Separation Minima (RVSM)
Compliant Air Data Computer. These systems will serve as the
foundation for future GATM modifications and ensure our KC- 135
fleet maintains the capabilities necessary to meet wartime
requirements.


INFORMATION SUPERIORITY

In today's environment, information superiority is critical to
the execution of Air Force core competencies and overall mission
success. The essence of information superiority is the ability to
collect, control, exploit, and defend information and information
systems. These 'information operations' are important to the
entire range of military operations, from peace to all-out
conflict. The Air Force provides information superiority to the
nation by executing information operations in air, space, and
increasingly, in cyberspace. One of the fundamental benefits of
information superiority is effective command and control of our
military forces.

We are committed to integrating command and control (C2) into
aerospace operations, eliminating duplication of effort, and
increasing commonality between C2 systems. To implement and
oversee these initiatives, we stood up the Air and Space Command
and Control Agency in 1997. This agency, together with the Air
Force Communications and Information Center (the Air Force's
center of excellence for communications and information, also
established in 1997), will be pivotal in expanding our nation's
information edge and enhancing our warfighters'capabilities.

We are aggressively pursuing innovative C2 capabilities to
improve Air Force expeditionary operations. For example, in
September 1998, we will conduct Expeditionary Forces Experiment
98 (EFX 98) to demonstrate C2 capability and help focus our C2
operations and investment. EFX 98 will consist of a simulated

combat scenario with emphasis on the rapid deployment and
employment of an AEF to conduct offensive air operations. It will
combine elements of live-fly exercises, modeling and simulation,
and advanced technology to demonstrate new operational concepts
such as near-real time sensor-to-decision maker-to-shooter
capabilities ' Joint Force Air Component Commander enroute
employment planning, Distributed Air Operations Center concepts,
and Agile Combat Support using In-Transit Visibility and Total
Asset Visibility. EFX 98 will establish the baseline for a series
of advanced warfighting experiments we plan to conduct annually.

One system that is key to meeting the warfighters'command,
control, communication, computer, and information (C4I) needs is
the Global Command and Control System (GCCS). GCCS is a part of
the overall Defense Information Infrastructure Common Operating
Environment (DII COE) which affords all the Services
interoperability and eases joint operations; it is a DoD
integrated C41 system that provides a joint, worldwide classified
network to facilitate the dissemination of critical information.
We have fielded GCCS at all Major Commands, Numbered Air Forces,
and most Wings. GCCS provides a full complement of C2
capabilities such as readiness assessment, crisis action and
deliberate planning, intelligence mission support, secure
communications, and a common operational picture. We are
migrating Air Force C2 systems to this common operating
environment to enhance interoperability.

Effective C2 depends in large part on our ability to accurately
identify all of the hostile, friendly, and neutral entities in
the battlespace--referred to as Combat Identification (CID) -
Accurate CID hinges on our ability to effectively process data to
build a three-dimensional picture of the battlespace. This in
turn permits real-time application of tactical options so weapons
can be employed at optimal ranges against the most critical enemy
targets. The acquisition of CID systems and development of
associated tactics, techniques, and procedures will maximize
operational effectiveness, reduce casualties due
to fratricide or enemy actions, and move us closer to the goal of
full spectrum dominance.

The Airborne Warning and Control System (AWACS) is the linchpin
of airborne C2 systems as the airborne surveillance and battle
management platform for the Joint Force Commander. We have
modernization efforts underway to ensure AWACS remains an
effective and survivable airborne C2 platform through 2025.

In 1997, the AWACS Radar System Improvement Program successfully
completed its initial operational test and evaluation. This
program will greatly increase the detection range of low radar
cross section targets, provide improved electronic counter-
counter measures, and reduce radar failure time ten-fold.
Additionally, the collection of initiatives comprising the Extend
Sentry program will reduce maintenance downtime, reduce the
number of mission aborts, and increase aircraft availability. The
Extend Sentry program is critical to ensure the AWACS will remain
available to meet real-world taskings.

Timely, accurate information provides the National Command
Authorities and our military commanders with the ability to
quickly assess developing crises and respond appropriately. The
operations of U-2, Predator, and the RC- 135 RIVET JOINT aircraft
around and over Bosnia and Iraq graphically illustrate how the
integration of air and space assets has improved the timeliness
and accuracy of our information. The U-2 has the ability to
deliver digital near-real time information to ground stations in
the continental United States, which in turn process it and relay
it by satellite to theater commanders around the globe.

These ground stations, known as Contingency Airborne
Reconnaissance System (CARS) Deployable Ground Station (DGS) 1
and 2, are located at Langley AFB, Virginia, and Beale AFB,
California. They serve as collection and assessment points for
the U-2s raw intelligence data. Each DGS consists of two
squadrons, an Air Combat Command unit that provides imagery
analysis expertise, and an Air Intelligence Agency unit that
provides signals intelligence, logistics, and communications
expertise. These units determine the capabilities and posture of
potential adversaries and provide near-real time intelligence
products to deployed forces in Bosnia and Southwest Asia using
Mobile Stretch (MOBSTR) communications relay technology.

Deploying a DGS into a theater of operations would require six C-
5 Galaxy transports to move approximately 200 tons of equipment
and more than 200 people. However, with our "reachback"
capability, we achieve the same effect by deploying 30 people
with smaller ground stations to collect and relay the U-2s data
from the theater of operations to the United States for
processing and dissemination.

The U-2's impressive capability is complemented by Unmanned
Aerial Vehicles (UAVs). The Predator Medium Altitude Endurance
(MAE) UAV has been deployed to Bosnia since March 1996. This
versatile system transmits live video feeds to front line
commanders via the Joint Broadcast System-furnishing our joint
forces with unparalleled situational awareness.

On 1 August 1997, the 15th Reconnaissance Squadron at Indian
Springs Air Force Auxiliary Field, Nevada, was activated as the
second Air Force Predator MAE UAV squadron. One week later,
Predator became the first Advanced Concept Technology
Demonstrator (ACTD) to transition to a formal acquisition program
under DoD's ACTD initiative. We have overcome several challenges
and learned some lessons in making Predator the success it is
today. We are using this valuable experience as we work with the
high altitude UAV program offices to ensure a smoother
operational transition once these programs prove themselves.

In the area of manned reconnaissance, RIVET JOINT continues to be
our most flexible and responsive platform. During 1997, RIVET
JOINT remained in high demand, providing accurate, timely
tactical information to a broad range of users in Bosnia,
Southwest Asia, and around the world. In 1997, the first three
aircraft of the 14 aircraft RIVET JOINT Fleet were modified with
current technology to establish a new baseline configuration. Two

additional RIVET JOINT aircraft will be added to the fleet
beginning in 1998, helping to alleviate this system's high TEMPO
rate. Additionally, we plan to complete most of the reengining
program for the RC- 135 fleet by the end of the Future Years
Defense Program.

Our more specialized RC- 135 assets, COMBAT SENT and COBRA BALL,
provided critical technical intelligence throughout 1997 to
support weapons development efforts, theater force protection,
and weapons proliferation assessments.

Surveillance is also crucial to information superiority. The
Joint Surveillance Target Attack Radar System Point STARS)
provides commanders with a set of 'eyes' to 'see" what the enemy
is doing on the ground in all weather, day or night. The Joint
STARS combination of moving-target indicators and synthetic
aperture radar produces images that enable operators to pick out
individual vehicles in a moving convoy. This capability played an
important role in enforcing the Dayton Peace Accords when both of
the Bosnian factions could see and understand that their every
movement was being monitored.

Over the course of 1997, Joint STARS participated in several
exercises where it provided critical situational awareness to
commanders and troops. For example, during the HUNTER WARRIOR
exercise, the Red Team commander expressed frustration that he
was unable to move his forces without detection by friendly
forces when Joint STARS was on station. Similarly, the Joint
STARS received excellent reviews for its work in the FOAL EAGLE
exercise conducted in the Republic of Korea--the largest air base
defense exercise in the free world. During the FOAL EAGLE
exercise, the Joint STARS significantly increased the situational
awareness of battle commanders in South Korea by providing the
real-time location of friendly and enemy forces.

Joint STARS also has tremendous potential to assist with real-
time targeting of enemy positions by attack aircraft. As an
experiment, a Joint STARS mission was flown over Bosnia in which
a Hand-held Terminal Unit (HTU) was used to send real-time target
designation and other data by burst transmission to F- 16
aircraft equipped with the Improved Data Modem. While the HTU is
not currently integrated into Joint STARS, this experiment
demonstrated the potential capability to pass real-time
information from Joint STARS directly into the cockpits of attack
aircraft.

Joint STARS, which declared initial operational capability in
December 1997, has now successfully deployed to the European,
Southwest Asia, and Pacific theaters in four deployments. It
continues to demonstrate its benefits as the DoD's only fielded
real-time, long range, wide area surveillance and battle
management asset. Together, the Joint STARS and the other Air
Force information superiority assets provide the battlespace
awareness necessary to conduct today's complex military
operations.

We must safeguard our information to prevent our forces from
becoming the target of an adversary's information warfare
campaign. We have an increasing need to defend information from
its point of production to its point of delivery to the
battlespace commanders. To aid in the defense of systems and the
information they contain, Air Force investigators and
counterintelligence personnel rely on the unique capability to
detect and counter unauthorized network access afforded by the
computer forensic laboratory. Within the laboratory, an
impressive media analysis branch is able to dig clues from
mountains of information stored in a variety of formats. This
capability is complemented by a network intrusion squad capable
of tracking intruders through the complex maze of cyberspace.

Our Service was recently designated as executive agent for the
new DoD Computer Forensics Laboratory. This laboratory will offer
us an opportunity to play an important leadership role in
developing techniques to protect key information systems across
the DoD. Our other current information operations capabilities
include the Automated Security Incident Measurement System,
Modeling and Simulation programs, the Information Warfare
Battlelab, and the Computer Security Assessment Program.

In the area of offensive information warfare we have a variety of
capabilities like those provided by the EC- 130H, Compass Call.
As DoD's only wide-area offensive information warfare platform,
Compass Call provides disruptive communications jamming and other
unique capabilities to support the Joint Force Commander across
the spectrum of conflict.

For localized targeting of specific avenues of communication, the
EC-130E Commando Solo is available to commanders. This weapon
system is the mainstay information operations aircraft for
peacekeeping and peacemaking operations and humanitarian efforts
which comprise a large percentage of today's military missions.
With the capability to control the electronic spectrum of radio,
television, and military communication bands in a focused area,
the Commando Solo aircraft can prepare the battlefield through
psychological operations and civil affairs broadcasts. In 1997,
the Commando Solo supported the UN's Operation JOINT GUARD
mission by shutting down anti-SFOR propaganda through radio and
TV broadcasts over Bosnia- Herzegovina in support of SFOR
operations.


AGILE COMBAT SUPPORT

The success of the joint force ultimately rests on our ability to
sustain deployed forces. Agile combat support will enable our
rapid, responsive, and flexible forces to become more
expeditionary in nature by eliminating the need for massive
deployed inventories. Improvements in information and logistics
technologies will make this possible.

When combatant commanders require an item, integrated information
systems will "reach back" to US locations and "pull" only the
resources required. Streamlined depot processes will release

materiel in a timely fashion so that time-definite transportation
can complete the support cycle by rapidly delivering needed
resources directly to the user in the field. Integrated
information systems currently being tested provide total asset
visibility throughout this process, tracking resources throughout
their delivery cycle. Mobility assets equipped with this
technology can be tracked in near-real time through the exchange
of GPS data, two-way message text, and aircraft cargo
information.

We are improving interoperability and commonality of combat
support information systems with the Global Combat Support
System-Air Force (GCSS-AF) program. GCSS-AF is another component
of the DII COE; it is a software modernization program to provide
interoperability and sharing of data between base-level
information systems.

Agile combat support will allow commanders to improve the
responsiveness, readiness, deployability, and sustainability of
their forces. The efficiency and flexibility of agile combat
support will enable aerospace forces to engage quickly and
decisively and sustain operations as necessary anywhere on the
globe.


ENABLING TECHNOLOGIES

Our Service continues to explore and invest in promising
technologies that enhance our core competencies and contribute to
our vision for the future. Examples include: our development,
demonstration, and maturation of the high-power laser technology
that was transitioned to the Airborne Laser system; our execution
of the Ballistic Missile Defense Organization's Space-Based Laser
Research Demonstrator; and our cooperation with NASA to explore
the potential of reusable launch vehicle technology for
militarily unique applications. Additionally, we continue to
investigate a range of new technologies from those intended to
enhance the expeditionary capability of our aerospace forces to
those designed to enable target identification from space. We
feel it is important to explore revolutionary technologies like
these as a hedge against the potential threats our nation may
face in the future.

Our defense laboratories and test centers are often the
birthplace of key technologies. To increase the effectiveness and
efficiency of these facilities, we streamlined the Air Force
Materiel Command laboratory structure in April 1997 by forming a
corporate Air Force Research Laboratory (AFRL). This new
organization realigns the former Armstrong Laboratory at Brooks
AFB, Texas; Phillips Laboratory at Kirtland AFB, New Mexico; Rome
Laboratory at Rome, New York; Wright Laboratory at Wright-
Patterson AFB, Ohio; and the Air Force Office of Scientific
Research at Bolling AFB, Washington, DC, under a single
AFRL commander headquartered at Wright-Patterson AFB. The AFRL
will likely play a major role in harnessing emerging
revolutionary technologies that will transform the way we employ
military forces in the future.



REVOLUTION IN MILITARY AFFAIRS

A revolution in military affairs (RMA) is said to occur when the
innovative application of new technologies, combined with
dramatic changes in operational and organizational concepts,
fundamentally alters the character and conduct of military
operations. The Air Force exists today because of an earlier RMA
that combined the new technology of manned flight with innovative
operational concepts to create a military force with a global
perspective.

Our Service has evolved over the years by leveraging leap-ahead
technology and developing the appropriate operational and
organizational structures to employ that technology. We are
committed to the research, testing, and evaluation of promising
new technologies that may lead to the next RMA. Stealth,
supercruise, the Airborne Laser, precision guided munitions,
Joint STARS, UAVs, integrated information systems, and space-
based assets are all examples of leading edge technologies that
are changing the way we conduct military operations.

We are exploring the implications of leap-ahead capabilities in
such areas as information operations, space operations, and
directed energy to ensure we are postured to exploit the next RMA
to build the aerospace capabilities necessary to protect
America's security interests well into the 21st century.


IMPROVING EFFICIENCY

Sustaining and strengthening our core competencies will depend on
getting the most out of limited resources. We are downsizing
personnel and taking other actions to streamline operations and
increase efficiency in all areas to help fund our modernization
program. We are looking to innovation and revolutionary business
practices to improve our operations and reduce costs.


INNOVATION

Innovation is critical to our Service's continued success. It is
essential that we aggressively look ahead and seek new ways to
employ aerospace power that will enable us to respond quickly to
new strategic requirements and take advantage of new
technological opportunities.


BATTLELABS

One of the major engines for operational innovation is the Air
Force battlelab concept. Battlelabs are small, focused, and rely
on field ingenuity to identify creative operational and logistics
concepts for advancing the Air Force's core competencies in joint
warfare. The Air Force established six Battlelabs in July 1997 to
identify innovative ideas: Aerospace Expeditionary Force, Command

and Control Battle Management, Unmanned Air Vehicle, Space, Force
Protection, and Information Warfare. Successfully demonstrated
battlelab concepts will be introduced to the CINCs and their
components through exercises and wargaming, and via the newly
established Service and joint experimental organizations. New
concepts adopted by the Air Force may prompt revisions to Air
Force organization, doctrine, training, requirements, or
acquisition to enhance the Air Force's ability to meet future
challenges.


MODELING AND SIMULATION

Modeling and Simulation (M&S) technologies are an array of
computer and software tools for creating and interacting with
artificial representations of reality. We have always used
modeling and simulation, but advances in computer technology have
enabled simulations that are highly detailed, increasingly
realistic, and more affordable. Our challenge is to develop
models and simulations that more accurately capture the
contributions of aerospace power on the modern battlefield.

We envision a "joint synthetic battlespace" that uses a mix of
live participants, human-in-the-loop virtual simulators, and
computer-generated constructive simulations to organize, train,
and equip our forces. To realize this vision, we are actively
supporting the development of joint, interoperable, and reusable
models and simulations. Specific examples include the Joint
Warfare Simulation (JWARS), the Joint Simulation System (JSIMS),
and the Air Force-directed Joint Modeling and Simulation System
(JMASS).

JWARS is intended for joint campaign analysis and is being
directed by the Deputy Secretary of Defense. JSIMS focuses on the
operational level of war and will develop and deliver an M&S
system capable of joint battlestaff training by 2000. JMASS
provides a common environment focused on detailed tactical
modeling for requirements development, acquisition, and testing.
When these efforts are complete, we will be able to replace an
aging suite of legacy models and simulations to more accurately
simulate modern aerospace power. 


WARGAMING

Wargames are invaluable tools with which to explore innovative
ways to employ military forces. Our Service is sponsoring a
series of Global Engagement wargames with the support of our
sister Services to better understand the contribution of air and
space forces to the Joint Force Commander.

We initiated this series in 1996 with Strategic Force 96 and
followed it up last year with Global Engagement 97 (GE 97). GE 97
was enhanced by the addition of a seminar-based policy pregame
where a select group of players, representing many principal
advisors to the National Command Authorities, explored the
implications of increased space and information capabilities on
national policies and international treaties.


Global Engagement 98 (GE 98) will also include a policy-level
pregame to be held near Washington, DC, in June 1998. The
operational game will be held the following November at Maxwell
AFB, Alabama. GE 98 will explore the transition of forces from a
small scale contingency to a major theater war in the 2008-2009
timeframe. Scenarios will challenge current CINCs'staffs to test
and evaluate emerging concepts of operations against viable
threats and plausible enemy actions. Key aspects will include the
employment of an AEF and the application of a rapid halt of
advancing enemy forces to limit the conflict and avoid attrition
warfare.


REVOLUTION IN BUSINESS AFFAIRS

In addition to operational innovation, we must adopt innovative,
modern commercial business practices to free up precious
resources for modernization. We must remove redundancy; use
competition to improve quality and reduce costs; and reduce
support structures both to free up resources and to focus on core
competencies.

We are capitalizing on the revolution in business affairs by
moving away from traditional means of doing business in acquiring
and supporting our forces. We have instituted an aggressive
series of reforms in this regard that extend across the range of
our activities.


STRATEGIC BUSINESS PLANNING

Sustaining the current force while simultaneously investing in
the systems necessary for operations in the 21st century is a
significant challenge in today's fiscally constrained
environment. Our key Air Force leaders responsible for
accomplishing and supporting acquisition and sustainment have
joined together to embark on a shared vision and commitment
toward a strategic business plan that moves the acquisition and
sustainment communities toward better business practices and
continuous process improvement. The goal is to reduce costs
without sacrificing mission capability.


PARTNERSHIP WITH INDUSTRY

In June 1997, our senior leaders in acquisition, requirements,
and planning and programming signed a memorandum encouraging Air
Force members to communicate more openly with industry to promote
a better understanding of our requirements in terms of mission
and affordability issues. The intent is to promote innovative and
more affordable business solutions. This new partnership is
already showing progress in the form of acquisition reform,
commercial off-the-shelf acquisitions, lean logistics, and
competition and privatization.

ACQUISITION REFORM

We are changing the culture of acquisition. The emphasis is to
acquire all products used by the Air Force "better, cheaper,
faster" and in a "smoother" more streamlined, well understood
process. Virtually every new acquisition program is taking
advantage of commercial practices by altering its strategy toward
commercial specifications and standards, privatization,
competition, commercial off-the-shelf technology, and contractor
system responsibility. Through our Lightning Bolt initiatives in
streamlining, teaming, and innovative acquisition strategies, we
have realized $7.1 billion in savings from Previously budgeted
funds and $11.8 billion in cost avoidance. Newer efforts focus on
continuous process improvement and establishing strategic steps
to ensure that acquisition reform becomes the norm. To accomplish
these objectives, we will continue to advance the professional
development of our acquisition workforce by providing quality
continuing education and training.


COMMERCIAL OFF-THE-SHELF (COTS) PRODUCTS

Using commercial and non-developmental items is a key factor in
achieving the needed economy of Air Force resources. Our focus is
on increasing the use of current commercial non-developmental
products, processes, and practices while improving the public-
private sector business environment to enable a greater use of
COTS. Some initiatives include: the conversion of 17 percent of
our military product specifications to commercial item
descriptions or non-government standards; the establishment of a
market research working group to define commercial market
research techniques that reveal the best commercially available
items to insert into military systems; and the preparation of a
draft COTS Handbook to aid in identifying and procuring
commercial items.


LEAN LOGISTICS

Lean logistics includes a number of complementary initiatives
designed to improve the capabilities of operational units by
integrating and applying state-of-the-art business practices
across all logistics functions and processes. For example, we
have implemented a new method to compute base and depot stock
levels which have reduced expected backorders by 17 percent,
saving $70 million in depot repair dollars and eliminating $60
million in unfunded repair requirements. We have also instituted
an automated method to prioritize depot repair and distribution
actions to optimize fleet aircraft daily availability.

The objective is to maximize operational capability by using
high-velocity, time-definite supply and delivery processes in
lieu of large inventories to manage mission and logistics
uncertainty. This results in shorter cycle times, reduced
inventories and costs, and a smaller mobility footprint, which
are critical to achieve Air Force agile combat support
objectives.



COMPETITION AND PRIVATIZATION

We are taking a long-term approach to competition and
privatization. This entails charting a strategic path for us-now
and in the long run-to make the most effective use of private
sector capabilities while maintaining or improving our readiness
and quality. Innovative solutions, improved performance, and
increased savings should result from the increased competition
inherent in the OMB A-76 cost comparison process and the
increased role of the private sector. With no growth planned for
total obligation authority, the savings accrued from competition
and privatization will be key for future modernization. Our
competition and privatization initiatives are designed to
preserve "tooth,' streamline "tail," and support modernization.

We are pursuing dual and joint-use initiatives for workloads with
the private sector to use more efficiently the existing
industrial capacity at the three remaining Air Logistics Centers
that remain after BRAC 95. For the workloads not required to
support core capabilities at McClellan Air Logistics Center,
California, and San Antonio Air Logistics Center, at Kelly AFB,
Texas, we are continuing with public-private competitions. The
results of the first of the public-private competitions, the C-5
Programmed Depot Maintenance at Kelly AFB, Texas, were announced
in 1997. Warner Robins Air Logistics Center in Georgia won this
competition with an expected savings of $190.2 million over the
next seven years. Currently, two additional public-private
competitions are planned--one for consolidated depot maintenance
workloads at McClellan AFB, California, and the second for
propulsion workloads at Kelly AFB, Texas. These competitions
should be completed in 1998.

In the area of privatization, we are pursuing initiatives in
housing and utilities. We are using privatization to upgrade,
improve, and replace substandard family housing and eliminate our
14,000 unit deficit. Of the 110,000 housing units in the Air
Force-wide inventory, 58,000 require upgrade, improvement, or
replacement. Seven projects are currently proceeding through the
privatization process with more anticipated.

We are also moving forward with the privatization of base
utilities in response to the Secretary of Defense's Defense
Reform Initiative Decision. The first privatization project in
this area will be awarded in July 1998 for the electrical
distribution at Youngstown Air Reserve Base, Ohio. Under the
current execution rules, we anticipate conversion of at least 175
water, wastewater, electrical, and natural gas systems.


FINANCIAL REFORM

We continue our efforts to improve financial management systems
and practices. We need better financial management in order to
provide our commanders with high-quality financial information,
eliminate financial irregularities that damage public confidence,
and comply with the law.


Improving financial management requires several key steps.
Compliance with the Government Performance and Results Act (GPRA)
is one of them. GPRA is important to financial management because
it mandates the creation of output measures that can be used in
financial reports and related to financial data. During the past
year, we have supported OSD efforts to develop output measures
and comply with other requirements of GPRA. We have also
incorporated some GPRA output measures into our financial
statements required by the Chief Financial Officers (CFO) Act. We
are experimenting with activity-based costing, training our
people on its use, and assisting in studies.

Several of our commands are experimenting with new approaches to
capturing the cost of ownership in order to identify areas to
reduce operating costs and to help decision makers determine ways
to reduce costs.

We are also improving our CFO financial statements. These
statements are publicly available and provide us an opportunity
to demonstrate that we are good stewards of public funds. We have
achieved relatively clean audit opinions on our military and
civilian pay accounts and improved the information related to
contingent liabilities. Now we are focused on making the
statements more useful to commanders and seeking early
implementation of some new statements required by the Federal
Accounting Standards Advisory Board.

Finally, we have undertaken an aggressive effort to improve our
financial systems in order to provide better information to our
commanders and comply with the CFO Act. In the near term, this
effort involves modifying existing systems to provide better cost
data and deploying already-developed systems (such as our
Automated Business Services System) that can reduce errors in
financial data. In the longer run, we must replace most of our
existing systems. In most cases, we will choose the best-of-breed
from among all service systems and modify the winner to comply
with the CFO Act and provide adequate cost data. During the last
year, we have made substantial progress on several systems
efforts including one to replace the existing financial systems
at Air Force depots with a modified version of a system in
operation at Navy aircraft depots.


ENVIRONMENTAL RESTORATION AND COMPLIANCE

Environmental compliance, restoration, and conservation are
essential to ensure the Air Force has continued access to ranges,
airspace, and installations. Stable funding allowed the
environmental restoration program to maintain its 1997 cleanup
schedule at all contaminated sites. The firm commitment to know
and obey environmental laws and regulations has resulted in a
dramatic reduction in the number of open enforcement actions
against the Air Force from 263 in 1992 to only 16 in 1997.

In May 1997, the Air Force received 4 out of 14 White House
Closing the Circle Awards which recognize people and groups for

leadership in pollution prevention. The winners were: the Space
and Missile Systems Center, Environmental Management Branch, Los
Angeles AFB, California, for improved launch rocket systems; the
375th Civil Engineering Squadron, Scott AFB, Illinois, for its
recycling program; the Environmental Management Directorate,
Ogden Air Logistics Center, Hill AFB, Utah, for waste prevention;
and Headquarters Air Combat Command, Langley AFB, Virginia, for
its global environmental outreach program. Additionally, the
Secretary of the Interior characterized Eglin AFB, Florida, as
the best protected, best managed property that he had seen
anywhere in the world. These examples represent our commitment to
protect America's natural resources as we execute our missions.

Partnerships with governmental and non-governmental organizations
are fostering biodiversity and integrated ecosystem management at
many installations. We are working closely with the Environmental
Protection Agency (EPA) and state partners to seek common sense
ways to achieve common goals. In November 1997, we signed an
agreement at Vandenberg AFB, California, with the EPA and the
Santa Barbara County Air Pollution Control District to reduce
environmental program costs and apply savings directly to
reducing pollution from the base. Vandenberg AFB was the first
DoD installation to sign such an agreement with the EPA. We plan
to direct environmental compliance funds into water conservation
and air and water pollution projects. We will use the savings to
purchase and operate cleaner operating boilers and equipment for
the base's power station. The result will be less money spent on
administration and more invested in improving air quality. The
Deputy Undersecretary of Defense for Environmental Security cited
Vandenberg as the model for this type of partnership.
Environmental investment agreements are an important cooperative
step toward sustaining both community and Air Force operations.


BASE TRANSFERS AND REALIGNMENTS

We continue to work with the communities impacted by base
closure/realignment to put the property and facilities into
economic reuse. For example, Pease AFB, New Hampshire, is now
Pease International Tradeport, employing 1,219 people at a
brewery, a consular center, an airfield, and a steel
manufacturer, among others--where only 400 civilians were
employed when the base was active.

In 1997, we completed Economic Development Conveyances (EDCs) for
property at six closure/realignment bases. Most notably, we
signed an EDC with the Greater Kelly Development Corporation for
Kelly AFB, Texas, just two years after the base was announced for
realignment. We have also reached final agreement on the terms of
an EDC with the County of Sacramento and are working very closely
to complete the documentation required to facilitate the transfer
of McClellan AFB, California, from the Air Force to the County.


OTHER COST CUTTING INITIATIVES

Additional ongoing cost cutting initiatives implemented or
investigated in 1997 include: 1) replacing government bills of
lading with commercial bills of lading for air express cargo
shipments; 2) using commercial express carriers for small arms
and ammunition shipments; 3) increasing functionality between Air
Force and commercial carrier transportation data and software; 4)
using express carriers to ship classified material; 5)
discontinuing volume printing of regulations and instructions;
and 6) reengineering distribution of publications via electronic
media such as the internet and CD-ROM.


CONCLUSION

America is an aerospace nation and its aerospace forces are an
essential element of our nation's military capability. They
possess the flexibility to fight across the spectrum of conflict
anywhere on the globe, with the speed and range necessary to halt
aggression in its tracks.

America's Air Force will remain a preeminent tool of US military
power with rapid global ranging forces empowered with stealth and
precision weapons. We will continue to sponsor research and
development to exploit the full spectrum of aerospace technology
and continue to assist all the Services' transition to effective
exploitation of our space assets. Finally, we will remain a key
enabler of US land and sea forces by ensuring air dominance, and
through robust airlift, air refueling, and space support.

The Air Force has come a long way in the past five decades and
has an exciting journey ahead. We are laying the groundwork for
that future today as we execute our contemporary military
mission, shape our Service for the future, and develop the airmen
that will lead us in the 21st century. This is a journey that
will take us into new, uncharted territory. And it is one that
will benefit every member of the joint warfighting team.