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What Is to Be Achieved?

The objective is to provide essential fleet support at reduced cost to make resources available to recapitalize, modernize, and increase the performance of the fleet, and thereby strengthen the Navy's core capability (fielding and using fighting forces) for the next century. The current budget for the infrastructure is $26.7 billion, from which cost savings of $3.5 billion to $5.0 billion are required.

How Is It to Be Achieved?

The objective can be achieved only by changing the Navy's business structure and modes of providing operational support—specifically, by adopting modern enterprise process technology and practices; competitive sourcing of as many of the support functions as possible with acceptable risk; learning by doing, so that adjustments can be made to these unfamiliar activities along the way; and building in safeguards against loss of support for the core capabilities during the transformation.

The following elements are essential to a successful strategy for achieving the shifts in resources needed for recapitalization:

• Knowing the cost structure of all the infrastructure activities, so that the Navy can understand where the leverage is, and therefore where to expend its efforts;

• Setting goals (money and time), assigning consistent responsibilities and authorities, and making plans that can be followed;

• Setting up a management information system to track support-system performance and costs;

• Rationalizing command and organizational responsibilities, authorities, and accountability to accord with the overall objective of the strategy;

• Preparing revised internal rules and procedures, and proposing legislative changes;

• Involving those affected inside the Navy, in other Services, and in civilian communities; and

• Obtaining agreements and legislation as needed in the Department of the Navy, DOD, the Office of Management and Budget (OMB), and Congress.

With What Is It to Be Achieved?

The resource and leadership requirements to accomplish the strategy are discussed explicitly in this chapter. These requirements involve the following:

• Commitment on the part of the top levels of Navy command and administration to reach the objective, as discussed in Chapter 4; and



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