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REPORT OF THE SECRETARY OF THE ARMY

The United States Army was indispensable to the execution of the National Military Strategy (NMS) in FY 1999. Throughout the year, the Army met the nation’s increasing requirements for making use of our land force component in response to rapidly changing world security needs. The nature of these requirements, from maintaining readiness for combat operations anywhere in the world, to conducting military exercises with and training the forces of friends and allies, to the critical and dangerous work of implementing the peace in Bosnia and Kosovo, underscores the vital role the Army will continue to play as the 21st century unfolds. The more than 100,000 soldiers forward stationed around the world, and the 25 to 30 thousand deployed to over 70 countries every day of the year, are a testament to the Army’s boots on the ground support for U.S. leadership in the world. To meet the threats and challenges of the 21st century, the Army has accelerated its transformation to the future by developing a new Vision that stresses lighter, more lethal, more agile forces that require less lift and have a smaller logistical footprint. While striving to increase its effectiveness and efficiency, the Army remains ready to play its part in the execution of the NMS.

A DECISIVE AND VERSATILE FORCE

The Army supports the NMS by maintaining a force capable of a full spectrum of military operations. It is designed to provide the joint team with decisive land combat power. Meeting this fundamental requirement for the world’s only superpower entails a force of high–quality people, with modern equipment, trained in the broad range of skills required for modern military operations. The nature of this force, in turn, enables the Army to provide pivotal support for the three pillars of the NMS—shaping the international environment, responding to crises, and preparing for an uncertain future. Transformation of the Army requires maintaining the current warfighting capabilities that our regional commanders in chief are counting on, while investing in developing the new capabilities the Army’s Vision calls for.

As of the end of FY 1999, the Army was the largest service component of DoD, with 479,426 active component soldiers, 564,305 reserve component soldiers, and 224,902 Army civilians. It is trained and equipped for the overwhelming and synchronized application of decisive combat power on land, and it performs this function better than any other land force on earth. Land power is uniquely decisive. Committing soldiers on the ground is the ultimate statement of U.S. resolve to defeat an adversary or compel him to change his course of action.

Since the effective use of modern combined arms requires diverse capabilities, the Army trains soldiers in over 500 specialties. Skills that support the application of combat power also play a central role in operations aimed at shaping the international environment. Civil affairs, water purification, power generation, and engineering are just a few of the skills necessary for land combat which are also essential for stability and support operations. Furthermore, armies are the dominant component in the military forces of most nations. These forces, designed for common functions, share organizational features with the Army that facilitate cooperative endeavors such as combined training and exercises. Therefore, the United States Army is not only critical to America’s ability to win wars, it is also the principal instrument to conduct military–to–military engagement to influence the capabilities, policies, and actions of other nations.

Thus, the Army is vital to meeting the requirements of the NMS. The Army’s warfighting effectiveness stems from its mastery of the unique competency of land power—the ability to exercise, by threat, force, or occupation, comprehensive and continuous control over people, land, and resources. Due to the diverse range of specialized skills and the peerless abilities of well–trained American soldiers, the Army is well–suited to perform missions across the full spectrum of military operations. These are the characteristics that make the Army ready today—ready to defend freedom from the Demilitarized Zone of Korea to the deserts of Southwest Asia, ready to bring peace to the troubled streets of the Balkans, and ready to create hope for people the world over. Throughout FY 1999, the Army demonstrated its unique effectiveness for shaping the international environment in ways favorable to U.S. interests, responding to crises, and preparing for an uncertain future.

SHAPING THE INTERNATIONAL ENVIRONMENT

America’s Army conducted a wide range of shaping operations around the world in FY 1999. Operations in the Balkans and sustained presence in Korea and in the Middle East enhanced regional stability and reassured allies. Deployed soldiers practiced critical skills repairing or emplacing infrastructure in the wake of natural disasters and in support of nation building. The International Military Education and Training (IMET) program and numerous army–to–army activities abroad enhanced interoperability and fostered military values that enhance military professionalism, strengthen democracy, and stress protection of human rights. Through the presence of our forces, robust programs of nation–building, military–to–military engagement, and other activities, Army shaping operations contributed greatly to enhancing U.S. interests abroad in FY 1999.

While continuing its central role in Operation Joint Forge in Bosnia, the Army also assumed the principal role for the peace implementation mission in Kosovo, Operation Joint Guardian, in 1999. The NATO force in Bosnia was commanded by the Commanding General of United States Army Europe (USAREUR) from 1996 through 1999. One of the three multinational divisions comprising this NATO force includes 5,500 U.S. soldiers and is under the command and control of a U.S. Army division headquarters. This force monitors the most important crossing points on the Bosnia–Herzogovina and Federal Republic of Yugoslav border, supports civil implementation of the Dayton Peace Accords, and provides security for displaced person and refugee visits and returns. In addition to this continuing effort, the cessation of hostilities in Yugoslavia paved the way for the deployment of over 6,000 American soldiers in support of the Kosovo peace implementation force (KFOR). Throughout the region, America’s Army continues to do what only a ground force can—promote a self–sustaining, safe, and secure environment in which democracy can take root. The U.S. Army creates the context in which U.S. and other governmental, nongovernmental, and international organizations can build anew the essential institutions of civil society consistent with U.S. values and interests.

Although events in the Balkans captured most of the world’s attention, thousands of American soldiers performed other important overseas shaping functions as well. In Europe, USAREUR led U.S. participation in the Partnership for Peace (PfP), a NATO program designed to foster interoperability and cooperation between the 19 NATO members and 26 participating Partner nations. A total of nine PfP exercises were conducted in 1999; these exercises included participation by most NATO and Partner nations. Forces from 28 nations participated in Exercise Combined Endeavor, one of the largest PfP exercises conducted in FY 1999.

In the Middle East, the continuous presence of an Army headquarters, a mechanized task force comprising both ground assets and attack helicopters, Patriot missile units, and other supporting forces helped deter aggression, reassure regional allies, and support implementation of UN resolutions. Forces deployed for Operation Desert Falcon and Operation Desert Focus maintained an in–theater Patriot capability. The forward positioning of these assets enhanced rapid response capability to the Middle East and demonstrated commitment to our allies. Army forces deployed to this area also provided important support for Operation Southern Watch, the joint and combined operation enforcing UN sanctions against Iraq. In the Sinai, FY 1999 marked the eighteenth year in which approximately 900 U.S. soldiers have helped monitor the treaty of peace between Egypt and Israel as part of the Multinational Force and Observers.

The 25,000 soldiers stationed on the Korean peninsula, as part of the nearly 100,000 U.S. service members either stationed or deployed in East Asia, remained a major bulwark for regional stability in Asia. Their presence underscored U.S. resolve, strengthened our nation’s position in U.S./Republic of Korean talks with the North Koreans, and deterred North Korean adventurism even as North Korea continued development of its long–range missile program. Army forces stationed in Japan also contribute to stability in Asia; these units participated in Exercise Yama Sakura, the ground portion of a joint and combined exercise (Keen Edge) conducted with the Japanese in 1999. Around the world, the Army maintained forward–deployed forces and supported deployments that shaped the geopolitical environment in critical ways.

Because the preponderance of other nations’ militaries consist of army and army–equivalent land forces, Army training of foreign military personnel constituted a significant portion of U.S. military engagement activities. Army Special Operations Forces (SOF) deployed to 22 nations to conduct training in mine awareness, mine clearing techniques, emergency medical care, and procedures for establishing national mine action centers. Army SOF also trained several African armies for peacekeeping operations and potential humanitarian crisis response under the African Crisis Response Initiative. Army National Guard (ARNG), U.S. Army Reserve (USAR) civil affairs units, the U.S. Army Corps of Engineers, and the Surgeon General also engaged in various efforts in Africa designed to support the transition to democracy and to improve infrastructure and health. The IMET program provided an outstanding vehicle for fostering cooperation and democratic values by training 6,929 students from 154 foreign countries. Most of this training took place in the United States, where the students not only received formal instruction but were also able to form friendships with American sponsors and experience our democratic and egalitarian society first–hand. The training of foreign military personnel under these programs expands the capabilities of other nations to support both their own people and the international community.

U.S. Army School of the Americas

The United States Army School of the Americas (USARSA) is one program for training foreign personnel that is worthy of special note. Located at Fort Benning, Georgia, USARSA has provided high–quality professional military education in Spanish for more than 60,000 select personnel from Latin American armies over the past 54 years. Subjects taught include humanitarian demining, counterdrug operations, peacekeeping, and natural disaster response. USARSA is a key element in a U.S. regional engagement strategy that focuses on the military’s role in strengthening democracy and protecting the institutions of civil society against external threats. USARSA graduates from nations throughout the region played key roles in the Military Observer Mission Ecuador and Peru that led to the successful resolution of the long–standing border dispute between those two nations in 1999. A graduate is credited with helping stop a 1992 coup attempt in Venezuela. Four other graduates have been instrumental in ending 36 years of civil war in Guatemala. The presence of USARSA graduates in key positions in the military, government, and economic institutions of the region over the past several decades have made the transition toward democracy easier in Latin America, a region in which Cuba is now the sole remaining authoritarian regime. USARSA’s curriculum includes Army doctrine, a comprehensive human rights program, and instruction on the role of a professional military in a democratic society. Several investigations by external agencies have confirmed that the school’s instruction is consistent with U.S. human rights policy. The Army is committed to taking the steps necessary to ensure USARSA’s operations are fully understood and remain consistent with the expectations of Congress and the values of the American people.

Counterdrug Efforts

In 1999, the Army supported the war on drugs through training and support of foreign counterdrug forces in many nations of Latin America, the Caribbean, and the heroin trafficking regions of Southeast and Southwest Asia. Activities in these regions included SOF training of host nation personnel, as well as aviation, transportation, intelligence, planning, and reconnaissance support. In Colombia, for example, Army support to U.S. counterdrug efforts included training and equipping a special Colombian Army counterdrug battalion. Among other things, the Army also provided nearly $20 million in materiel support under the provisions of the Foreign Assistance Act. This support ranged from spare parts for UH–1 and UH–60 helicopters to binoculars and trucks.

Army support for the war on drugs extended into the domestic arena as well. More than 2,000 active and reserve component soldiers performed tasks ranging from construction of fences along the border with Mexico to providing intelligence analyst support to Drug Law Enforcement Agencies. The Army National Guard provided additional unique support to the 54 states and territories under the provisions of Title 32, United States Code. This support involved over 3,000 people and included cargo inspections and drug demand reduction activities. Both at home and abroad, American soldiers played a significant role in stemming this transnational threat.

Nation Building Activities

In addition to their other activities, Army soldiers and civilians combined training with nation–building projects and other civic assistance efforts in FY 1999. For example, Army engineers repaired the roof on a charity hospital in Mongolia and repaired clinics, roads, and schools in the Marshall Islands. Through Medical Readiness and Training Exercises, Army reserve component personnel provided medical treatment around the world. In just one of these exercises, 44 soldiers from the 4224 U.S. Army Hospital treated more than 2,000 patients in Mariquita, Colombia. The Army also continued its work in Haiti under authority of Operation Uphold Democracy. Approximately 200 soldiers performed security missions as well as medical and civil assistance projects in support of this operation. In the Ukraine, USAREUR’s 30th Medical Brigade provided surplus Army medical equipment to civilian hospitals in Operation Provide Hope. From August through October 1999, Army personnel delivered equipment and instructed Ukrainian personnel on its use. Through the professional work of its soldiers, the Army fostered good will while training and enhancing America’s credibility abroad.

RESPONDING

While training and engagement activities prevent and deter wars, the Army’s core function is to remain ready to respond anywhere in the world to fight and win the nation’s wars. The deployment of combat forces to Kuwait, Albania, and Kosovo in FY 1999 validated the Army’s readiness to respond. Other emergency deployments arising from the Balkan crisis, Hurricane Mitch, and the unrest in East Timor underscored the Army’s responsiveness and utility.

Training to Respond

Effective response is the product of a rigorous training program. To that end, the Army conducted training at home station, deployments to combat training centers (CTCs), and major joint and combined training exercises in 1999. Home station training ranged from individual and small unit training to major exercises at brigade and division level. Having honed their skills at home station, some 82,000 soldiers were able to participate in 47 CTC rotations in FY 1999. These rotations afforded our soldiers the opportunity to conduct sustained operations against a highly skilled opposing force under realistic conditions. In 1999, CTC rotations were also used to prepare units for contingency operations in the Balkans. In addition to home station and CTC training, major joint and combined training deployments, such as Exercise Cobra Gold in Thailand, Ulchi Focus Lens in Korea, and Bright Star in Egypt, offered valuable opportunities for leaders to execute deployment plans and conduct operations upon arrival. The experience and proficiency gained by planning, resourcing, and conducting this training is essential to preserving near–term readiness.

Operational Deployments

In November 1998, the United States and its allies conducted Operation Desert Fox, four days of bombing operations in response to Iraq’s failure to comply with UN resolutions. The crisis erupted while the Army had two mechanized battalion task forces and an aviation task force training with Kuwaiti forces. The Army quickly deployed additional forces. Under control of Combined/Joint Task Force–Kuwait, these ground forces deterred Iraq from using the strikes as an excuse to move against Kuwait. The rapid buildup of this potent force highlighted the value of the Army’s training and equipment prepositioning programs.

The Army also employed forces in support of the NATO bombing campaign against Yugoslavia from March to June 1999. In addition to providing nearly 200 augmentees to Joint Task Force–Noble Anvil, the Army deployed a 5,000–soldier strong task force—Task Force Hawk—to Albania in April to provide Army–specific capabilities for campaign planners. These soldiers demonstrated the Army’s ability to deploy forces anywhere in the world, overcoming the most difficult terrain and weather conditions. The deployment of this warfighting force not only sent a clear signal of the coalition’s resolve, but also put a capable force into position to participate in the peace implementation operation.

Two other deployments of Army personnel provided critical support to the successful implementation of U.S. policy in the Balkans by emplacing the infrastructure to support follow–on operations in Kosovo and supporting refugees. In Europe, U.S. soldiers designated as Task Force Sabre expanded the base camp that would later prove critical as a staging base for the U.S. contingent to KFOR. This vital effort included the emplacement of key force protection and sustainment assets and was instrumental to the rapid introduction of U.S. forces into Kosovo after the bombing stopped. Closer to home, the Army’s 507th Corps Support Group from Fort Bragg, North Carolina, formed the nucleus of a joint task force (JTF) helping to host displaced Kosovars at Fort Dix, New Jersey. JTF Provide Refuge, which also included active and reserve component augmentees, was the DoD element supporting this Department of Health and Human Services endeavor from May through July 1999. In all, the task force cared for over 4,000 displaced Kosovars, underscoring the U.S. humanitarian commitment and helping preserve the NATO coalition’s solidarity.

When U.S. forces crossed into Kosovo to begin the difficult task of bringing stability to the province, the Army led the way. Elements of USAREUR’s 1st Infantry Division have provided the bulk of the U.S. contingent, dubbed Task Force Falcon, since the peace implementation operation began in June. On a daily basis, American soldiers are face to face with the people of Kosovo, doing the dangerous and difficult work of disarming former combatants, resettling refugees, protecting minority populations from retribution, and setting the context for the rebuilding of the democratic institutions of civil society. In addition to the contribution of its U.S. elements, Task Force Falcon is providing command and control for more than 3,100 Greek, Polish, Russian, Ukrainian, United Arab Emirates, Jordanian, and Lithuanian soldiers. Together, this combined force conducts patrols, operates roadblocks and checkpoints, and guards key facilities in the designated U.S. sector. As it has in Bosnia, the Army is leveraging its diverse skills to provide a force tailored to this challenging mission.

In addition to providing forces for missions such as those in the Balkans and the Middle East, the Army led U.S. efforts to assist the nations of Central America in the wake of Hurricanes Georges and Mitch in 1999. The XVIII Airborne Corps, with reserve component augmentation in critical specialties, deployed more than 4,000 soldiers to help alleviate the immediate suffering caused by Hurricane Mitch. Dubbed Operation Strong Support, this effort lasted from November 1998 until January 1999. It provided aviation, logistics, emergency evacuation, engineer assessment, road repair, and medical care for affected areas in Honduras, Nicaragua, El Salvador, and Guatemala. Operation Strong Support was followed immediately by the annual Exercise Nuevo Horizontes (New Horizons), which was enhanced to provide continuing, comprehensive assistance to Central American and Caribbean nations devastated by Hurricanes Georges and Mitch. More than 20,000 USAR and ARNG soldiers worked on civil projects designed by the Department of State and operated medical support sites for the local populace from January through August 1999. In all, American soldiers provided medical treatment for more than 100,000 local civilians and either built or repaired 33 schools, 12 clinics, 27 high–capacity wells, 26 bridges, and 175 kilometers of road.

Beginning in September 1999, the Army was also engaged in operations in Indonesia. American soldiers performed critical medical, intelligence, communications, and civil affairs tasks as part of the U.S. contingent supporting Operation Stabilize in East Timor. The rapid deployment of soldiers in these key specialties was a noteworthy contribution to this important operation.

Responding at Home

Throughout the year, the Secretary of the Army’s role as DoD Executive Agent for Military Support to Civil Authorities kept the Army in the forefront here at home. In fact, the Army coordinated military support to civil authorities on 38 separate occasions during FY 1999. Army National Guard soldiers provided additional critical assistance to local authorities throughout the year while acting under state control, and the Army trained first responders throughout the nation on consequence management procedures for weapons of mass destruction. Whether responding to tornadoes in Oklahoma, wild fires in California, or hurricanes along the eastern seaboard, the Army’s timely and comprehensive efforts were vital to the Federal Emergency Management Agency’s response capability.

The recent accomplishments and activities of the Army clearly demonstrate its effectiveness and versatility. Thus, the Army remains ready, when called upon, to provide ground combat capabilities, such as those fielded in Kuwait during Operation Desert Fox. Even in Operation Allied Force, where Army forces were not committed to combat, our soldiers and civilians provided critical enabling capabilities for U.S. military operations. Throughout the year, Army capabilities were an important contributor to achieving national objectives.

PREPARING FOR THE FUTURE

The Army worked hard in FY 1999 to balance global shaping and responding operations with the imperative of preparing for an uncertain future, including transforming the Army. Contingency operations abroad generated additional training and operational requirements, added to wear and tear on equipment, and increased personnel tempo. Supplemental appropriations eased the funding impact of contingency operations on near–term readiness, but did not address many funding requirements for modernization and recapitalization. The Army’s new Vision will drive the transformation of the 21st century Army so that it projects combat power more rapidly, dominates at any point on the spectrum of operations more readily, and sustains its readiness more affordably than today’s force.

The Army Vision

The spectrum of 21st century operations demands land forces in joint, combined, and multinational formations for a variety of missions extending from humanitarian assistance and disaster relief to peacekeeping, peacemaking, and winning major theater wars—our non–negotiable contract with the American people. The Army will be responsive and dominant at every point on that spectrum. It will provide to the nation an array of deployable, agile, versatile, lethal, survivable, and sustainable formations, which are capable of reversing the conditions of human suffering rapidly and resolving conflicts decisively.

The Vision calls for improving strategic responsiveness. To achieve this, the Army will continue to emphasize forward–deployed forces and forward–positioned capabilities, engagement, and enhancing the deployability of all Army forces. Ultimately, Army units will erase the line between light and heavy by developing organizations with the deployability of today’s light forces but with the lethality and mobility of today’s heavy forces. Restructuring of two initial brigades will begin in FY 2000 at Fort Lewis, Washington. These brigades will initially feature off–the–shelf equipment to stimulate development of doctrine, organizational design, and leader training. The Army will restructure its modernization program to support development of tailor–made platforms for the Objective Force. The Army’s goal is to improve its responsiveness and deployability so that it can put a brigade combat team anywhere in the world in 96 hours after liftoff, a warfighting division in 120 hours, and five divisions in 30 days.

The units that the Army deploys within these timelines will be capable of dominating at any point on the spectrum of operations because they will be designed, manned, and equipped to transition rapidly from stability and support operations to major theater warfare. Army Service Component Commands and corps will have the resources to function as Joint Force Land Component Command and Army Force headquarters. The warfighting units will be manned to their full authorizations with soldiers and leaders ready for whatever mission they are given. Their equipment will continue to provide our soldiers with overmatching capabilities. It will incorporate information technology as well as material technology.

While continuing to ensure overwhelming combat power in the theater of operations, the Army will aggressively reduce its logistics footprint by controlling the number of systems deployed, employing the full reach–back capability technology allows, and evolving systems that are easier to sustain. Deploying only essential capabilities while using modern technology to streamline in–theater support functions is one step towards achieving the goal of a smaller logistics footprint. For instance, communications technology may provide commanders the intelligence, medical, and other support capabilities needed for some contingencies without deploying the equipment and specialists necessary in the past. Logistics modernization initiatives are already reducing the need for large stockpiles by providing near real–time visibility of supplies and requirements. As technology allows, the Army will move to an all–wheeled fleet of vehicles. Seeking common platform, common chassis, and standard caliber designs for these follow–on systems will further reduce sustainment requirements.

The Army’s Vision also stresses investing in our most important asset—our people, including their military and civilian education, and their housing and health care. Additionally, the Army will continue to pursue two critical initiatives that contribute to reaching our Vision—digitization and active component/reserve component integration.

Digitization and Active/Reserve Component Integration

Digitization is the process of applying digital information technologies to allow warfighters to share a constantly updated common view of the entire battlefield. It will enhance combat power by integrating existing command and control capabilities with communications, sensors, and combat platforms. Digitization will increase effectiveness and efficiency by combining digital hardware with trained soldiers in organizations designed to optimize the information sharing that technology allows.

In anticipation of the enhancement to combat power afforded by digitized platforms, the Army began to transition some divisions to a new design in 1999. Key features of this new design include a reduction in the number of tanks and infantry fighting vehicles in mechanized battalions, an increase in the number of dismounted soldiers in infantry platoons, and the integration of reserve component units and personnel throughout the division. The new design will take several years to implement, but it will reduce the strategic lift requirement for affected divisions by 11 percent.

Another force structure initiative in 1999 was the establishment of two integrated divisions. These divisions combine active component division headquarters with three ARNG enhanced Separate Brigades (eSBs). The two divisions established were the 24th Infantry Division (Mechanized) (–) and the 7th Infantry Division (–). The 24th ID (M)(–) has its headquarters at Fort Riley, Kansas, and includes mechanized eSBs from North Carolina, South Carolina, and Georgia. The 7th ID (–) has its headquarters at Fort Carson, Colorado, and includes infantry eSBs from Arkansas, Oklahoma, and Oregon. While these units are not deployable as divisions, the full–time planning and training management support of the active component headquarters will facilitate the readiness of the assigned eSBs.

Missile Defense and Domestic Preparedness

The Army was also active in the areas of missile defense and domestic preparedness, experiencing significant successes in the national and theater missile defense programs under its purview. As the Executive Agent for the development of the dedicated National Missile Defense (NMD) ground–based elements, the Army supported the Joint Program Office for NMD in the initial hit–to–kill flight test of the Exoatmospheric Kill Vehicle (EKV) in October 1999. The EKV correctly discriminated between a reentry vehicle and another object, tracking and destroying the reentry vehicle. In the theater missile defense realm, the Patriot Advanced Capability–3 (PAC–3) and Theater High Altitude Area Defense (THAAD) programs both had successful intercepts as well. The success of the PAC–3 upgrade capitalizes on the nation’s investment in the Patriot system, the only fielded U.S. system capable of defeating theater ballistic missiles (TBM). While PAC–3 will provide enhanced lower–tier theater missile defense in the short term, THAAD’s two successful intercepts were encouraging milestones on the road to upper–tier protection as well. Together, PAC–3 and THAAD promise critical protection against the TBM threat to soldiers in the field.

The Army also continued its role as the Executive Agent for the DoD Weapons of Mass Destruction (WMD) Domestic Preparedness Program in FY 1999. Army personnel supported the Federal Training Team in providing train–the–trainer training to 33 cities. Almost 19,000 people in 65 cities had received this training as of the end of the fiscal year. The Army also fielded special teams designed to improve the nation’s ability to respond to terrorist or other attacks involving WMD. Ten WMD Civil Support Teams (formerly called Rapid Assessment and Initial Detection Teams) were activated and trained. These teams, each consisting of 22 full–time ARNG or Air Guard personnel, are aligned with the ten federal regions and stand ready to support civil authorities in the event of a disaster involving WMD. In addition to this effort by the National Guard, the USAR began training its chemical and logistical units to provide augmentation in the event of a WMD emergency. These critical missile defense and domestic preparedness capabilities contribute significantly to national security.

OTHER ACTIVITIES IN SUPPORT OF THE NATION

The Army performed important functions related to treaty implementation in 1999. For instance, the Army is the DoD Executive Agent for Chemical Demilitarization. Under provisions of the Chemical Weapons Convention and applicable laws, the destruction of the U.S. stockpile of chemical agents, munitions, and non–stockpile chemical warfare materiel is proceeding on schedule. To date, the Army has safely destroyed more than 17 percent of the chemical agents stored in the U.S. stockpile.

The Army also led U.S. efforts pertaining to the hand over of the Panama Canal and the withdrawal of U.S. forces from Panama. The Secretary of the Army is the Secretary of Defense’s designee to the Board of Directors of the Panama Canal Commission (PCC) and serves as Chairman of the Board. It is through this role that the Secretary of the Army exercises the authority of the President of the United States with respect to the Panama Canal Commission. The PCC Board of Directors has been very active preparing the transfer of the Canal and overseeing an ambitious capital improvement program. Regarding our military presence in Panama, as the DoD Executive Agent for implementation of the Panama Canal Treaty, the Army orchestrated the final drawdown and transfer of U.S. forces out of Panama. This effort entailed successfully transferring five major installations, several support facilities, and over 50,000 acres of former military ranges to Panama. Our support for endeavors such as Chemical Demilitarization and the implementation of the Panama Canal Treaty is a strong endorsement of the technical competence and versatility of Army leadership, soldiers, and civilians.

MEETING THE RECRUITING AND RETENTION CHALLENGE

FY 1999 was one of the most challenging years for recruiting since the beginning of the all–volunteer force; however, record reenlistment rates helped the Army meet its required end strength. The ARNG exceeded its recruiting quota, accessing 132 soldiers above its target of 56,958, but the active component fell about 6,300 soldiers short of its goal of 74,500, and the number of USAR recruits was 10,300 below the goal of 52,084. A booming economy, low unemployment, and increased opportunities for college undoubtedly contributed to the difficult recruiting environment. However, new initiatives sparked a year–end upturn in the number of accessions and provided a good head start for the challenge of meeting FY 2000 recruiting targets.

To meet the challenge of recruiting in the post–drawdown era, the Army is aggressively restructuring its entire recruiting operation, including upgrading its research into youth attitudes; improving its in–house marketing expertise; fully reviewing its advertising strategy and execution; and improving training, positioning, and incentivizing of recruiters. The Army will also field two new recruiting initiatives. The College First program will try to attract candidates who are already in college or who are college bound by providing education benefits up front in return for a period of service. Another pilot program will attract high–quality, non–high school graduates who score well on motivation indicators and mental aptitude tests. This program will offer assistance in obtaining a General Equivalency Diploma (GED) to a select number of candidates. The Army will continue to emphasize creative solutions to the challenge of attracting sufficient numbers of young Americans to military service.

Notwithstanding its recruiting challenge, the Army met its end–of–year strength requirements because of its tremendous success in retention. The active component exceeded its retention goals by 6,147 soldiers in FY 1999. Enhanced bonus programs implemented by the Army, as well as the improvements in military compensation begun by the Administration and Congress, have bolstered retention efforts.

Sustaining this kind of retention success is important for readiness, but will become more difficult as today’s recruiting shortfalls lead to smaller cohorts of soldiers available for reenlistment. Recent studies indicate that the propensity to remain in the military has declined steadily among junior officers (13 percent) and non–commissioned officers (17 percent) over the past nine years. These statistics have correlated well with actual retention in the past and merit further observation. Both military and civilian leaders must continue to take steps to improve quality of life and compensation if the Army is to retain sufficient numbers of our high–quality soldiers, noncommissioned officers and officers.

Though not a recruiting program, the expansion of Army Junior Reserve Officer Training Corps (JROTC) programs may help motivate young Americans toward military service. These programs will educate America’s youth about the military while providing them with the discipline and values that will contribute to their future success. With the assistance of several distinguished members of Congress, the Army developed a plan to expand its JROTC program over the next five years to include 275 additional high schools. The expansion will bring the total number of high schools offering Army JROTC to the congressional ceiling of 1,645. Participation in JROTC increases self–confidence, attendance, and performance among high school students. The expansion of JROTC will inform young Americans about the opportunities available in the military while providing a positive influence during the critical high school years.

INCREASING EFFICIENCY: THE REVOLUTION IN BUSINESS AFFAIRS

Improving efficiency is another way the Army is striving to maintain readiness within fiscal constraints. Resource constraints and increasing commitments have made efficiency an imperative. The Army has responded to this challenge by implementing a series of Defense Reform Initiatives. Among the Army’s successes are a number of programs designed to reduce the cost of day–to–day operations, streamline its logistics systems, and reduce excess infrastructure. Under the competitive sourcing initiative, for instance, organizations and installations examine selected operations to determine whether they might be performed more efficiently by either a streamlined government workforce or a private organization. The Army plans to study operations affecting 73,000 positions by FY 2005 and has initiated studies affecting 40,000 positions over the past two years. This initiative will save approximately $2.8 billion by the time it is completed.

Logistics Modernization

The Army is also achieving significant efficiencies by using information technology to revolutionize its logistics systems. A series of ongoing initiatives dramatically reduces logistics costs by reducing the quantities of supplies maintained in stockpiles around the world. Information technology makes this possible by providing global visibility of materiel. Global visibility makes possible more efficient use of existing stocks. The Single Stock Fund (SSF) initiative, for example, capitalizes on this increased efficiency by merging wholesale and retail portions of certain Army supply activities, including repair parts and packaged petroleum products. The SSF will allow customers to use a single, nationally managed Army inventory, thereby eliminating retail stocks.

Base Realignment and Closure

Reducing excess infrastructure continues to be one of the most effective ways to improve efficiency. The Army has reduced its infrastructure by only 21 percent over the past 10 years, while its force structure has decreased by about 33 percent in the same time period. The Base Realignment and Closure (BRAC) process is the most powerful tool for decreasing the expenditure of scarce Real Property Maintenance (RPM) dollars on excess infrastructure. The Army has completed closures and realignments authorized under three of the four BRAC processes completed to date, and annual recurring savings have exceeded the cost of implementing authorized actions since FY 1997. Closures and realignments authorized under the last BRAC process are on schedule to meet the July 2001 deadline for completion. Environmental cleanup and property disposal associated with all four BRAC processes will continue through FY 2005. The Army strongly supports the DoD request for additional BRAC authorizations as part of its ongoing efforts to support the Defense Reform Initiatives and optimize conversion of scarce resources into required capabilities. Achieving base closure savings is critical to funding Army transformation initiatives.

Residential Communities Initiative

One area of the Army’s infrastructure that received a great deal of attention in FY 1999 was Army Family Housing. Faced with an enormous facilities backlog to eliminate inadequate government housing, the Services were authorized by the 1996 Defense Authorization bill to attract private sector expertise and capital to improve housing facilities and services provided to military members and their families. Pursuant to this authorization, the Army developed its Residential Communities Initiative (RCI), a plan to privatize Army Family Housing by FY 2005. In response to congressional concerns about the pace of service privatization programs, the Army added $250 million in traditional Army Family Housing funding back into its Military Construction program for fiscal years 2001 through 2005. Also, privatization initiatives were scaled back to Fort Carson, Colorado, and three pilot RCI sites: Fort Lewis, Washington; Fort Hood, Texas; and Fort Meade, Maryland. The Army is excited about the potential of RCI to deliver the kind of quality housing that contributes to soldier retention.

FY 1999 ARMY FUNDING

The Army’s Total Obligation Authority for FY 1999 was $69.2 billion. Of this amount, the Army received $26.7 billion for the Military Personnel accounts, $25.3 billion for the Operation and Maintenance accounts, and $13.9 billion for the Investment accounts. The remainder was applied to other accounts, such as Military Construction, Army Family Housing, and Environmental Restoration. In order to fully fund operating tempo (OPTEMPO) for priority units, the Army funded Base Operations (BASOPS) and RPM below desired levels. In addition to the original FY 1999 budget appropriation, the Army received funding from several non–offsetting supplemental appropriations acts, including $2.9 billion for Contingency Operations. The Army reprogrammed $375.9 million in FY 1999, mostly to address readiness issues, closeout costs for the Conventional Ammunition Working Capital Fund, and other requirements. The source for this reprogramming was under execution savings in the Military Personnel accounts. The Army is committed to helping itself as much as possible to meet the funding requirements of Vision transformation without jeopardizing current capabilities or sidetracking critical recapitalization efforts.

CONCLUSION

From the tense streets of the Balkans to Korea’s Demilitarized Zone, the United States Army stands ready to defend and promote the nation’s interests. It is a quality force composed of America’s sons and daughters—citizens who have met stringent entry requirements and endured rigorous training to earn a place in the world’s best Army. Having earned this distinction, America’s soldiers are frequently called upon to serve long tours in dangerous places accomplishing difficult missions. Wherever they go, they are the living, breathing symbols of a society in which people of different religions and ethnic backgrounds live and work together productively and in harmony—a society with an economy, an infrastructure, and a vitality that are the envy of much of the rest of the world.

When we send our sons and daughters abroad to improve the international environment, the freedom of the society they represent is their most powerful tool. American soldiers are potent symbols of this freedom and of the power and promise of America. They are volunteers, serving in a values–based organization that exemplifies loyalty, duty, respect, selfless service, honor, integrity, and personal courage. In the midst of foreign lands struggling to achieve basic order and dignity, our soldiers are a beacon that illuminates what is possible.

From Fort Bragg, North Carolina, to the jungles of Colombia, the Balkans, and elsewhere around the world, 65 brave American soldiers gave their lives in 1999 training hard and performing dangerous duties in support of our nation. Their service and sacrifice is a reminder of the generations of soldiers who have served and sacrificed on behalf of our nation for over 224 years. As it has been throughout our history, only the determination and vigilance of this and succeeding generations can safeguard the freedoms that make our nation great. We must ensure that our Army has the resources to prepare for tomorrow as well as meet the requirements of today.

/signed/
Louis Caldera
Secretary of the Army

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