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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
How Is It to Be Achieved?
The objective can be achieved only by changing the Navy's
business structure and modes of providing operational
supportspecifically, 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
• 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
• 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