NATIONAL GUARD AND RESERVE EQUIPMENT REPORT (NGRER) REPORT EQUIPMENT AND RESERVE GUARD NATIONAL Department of Defense National Guard and Reserve Office of the Under Secretary of Defense FY 2019 Readiness (Personnel and Readiness) Equipment Report for 4000 Defense Pentagon Washington, DC 20301-4000 Fiscal Year 2019 March 2018 NATIONAL GUARD AND RESERVE EQUIPMENT REPORT FOR FISCAL YEAR 2019 (NGRER FY 2019) (In Accordance with Section 10541, Title 10, United States Code) March 2018 Prepared by Department of Defense Office of the Assistant Secretary of Defense for Readiness Deputy Assistant Secretary of Defense (Readiness Programming and Resources) COL Samuel R. Cook, Editor Washington, DC 20301-1500 The estimated cost of this report or study for the Department of Defense is approximately $598,000 in Fiscal Years 2017 - 2018. This includes $212,000 in expenses and $386,000 in DoD labor. Generated on 2018Feb07 RefID: 6-DBCAE71 An electronic version of this report can be found at: http://prhome.defense.gov/Readiness/Publications/ Table of Contents Chapter 1 Overview I. Introduction 1-1 II. Operational Reserve Component Equipping Process and Associated Challenges 1-2 III. Scope of the Report 1-7 IV. Equipment Shortages 1-8 V. Equipment Procurement 1-9 VI. Reserve Component Equipping Challenges 1-12 A. Army National Guard (ARNG) 1-12 B. Army Reserve (AR) 1-13 C. United States Marine Corps Reserve (USMCR) 1-14 D. United States Navy Reserve (USNR) 1-15 E. Air National Guard (ANG) 1-15 F. Air Force Reserve (AFR) 1-16 G. United States Coast Guard Reserve (USCGR) 1-17 Chapter 2 United States Army Reserve Components I. Army Overview 2-1 A. Army Planning Guidance 2-1 B. Army Equipping Guidance 2-2 C. Plan to Fill Mobilization Shortages in the RC 2-2 D. Initiatives Affecting RC Equipment 2-3 E. Plan to Achieve Full Compatibility Between Active Component (AC) and RC 2-4 F. Army Component Equipment Modernization 2-4 II. Army National Guard Overview 2-5 A. Current Status of the Army National Guard 2-5 B. Changes Since the Last NGRER 2-10 C. Future Years Program (FY 2018–FY 2020) 2-11 D. Summary 2-19 Table 1: ARNG Consolidated Major Item Inventory and Requirements Table 2: ARNG Average Age of Equipment Table 3: ARNG Service Procurement Program - Reserve (P-1R) Table 4: ARNG National Guard and Reserve Equipment Appropriations (NGREA) Procurements Table 5: ARNG Projected Equipment Transfer/Withdrawal Quantities Table 6: ARNG FY 2014 Planned vs Actual Procurements and Transfers Table 7: ARNG Major Item of Equipment Substitution List Table 8: ARNG Significant Major Item Shortages i III. United States Army Reserve Overview 2-20 A. Current Status of the Army Reserve 2-20 B. Future Years Program (FY 2018–FY 2020) 2-26 C. Summary 2-36 Table 1: USAR Consolidated Major Item Inventory and Requirements Table 2: USAR Average Age of Equipment Table 3: USAR Service Procurement Program - Reserve (P-1R) Table 4: USAR NGREA Procurements Table 5: USAR Projected Equipment Transfer/Withdrawal Quantities Table 6: USAR FY 2014 Planned vs Actual Procurements and Transfers Table 7: USAR Major Item of Equipment Substitution List Table 8: USAR Significant Major Item Shortages Chapter 3 United States Marine Corps Reserve (USMCR) I. Marine Corps Overview 3-1 A. Marine Corps Planning Guidance 3-1 B. Marine Corps Equipping Policy 3-2 C. Plan to Fill Equipment Shortages in the RC 3-2 D. Initiatives Affecting RC Equipment 3-2 E. Plan to Achieve Full Compatibility Between AC and RC 3-2 II. Marine Corps Reserve Overview 3-4 A. Current Status of the Marine Corps Reserve 3-4 B. Changes Since the Last NGRER 3-6 C. Future Years Program (FY 2018–FY 2020) 3-7 D. Summary 3-9 Table 1: USMCR Consolidated Major Item Inventory and Requirements Table 2: USMCR Average Age of Equipment Table 3: USMCR Service Procurement Program - Reserve (P-1R) Table 4: USMCR NGREA Procurements Table 5: USMCR Projected Equipment Transfer/Withdrawal Quantities Table 6: USMCR FY 2014 Planned vs Actual Procurements and Transfers Table 7: USMCR Major Item of Equipment Substitution List Table 8: USMCR Significant Major Item Shortages ii Chapter 4 United States Navy Reserve (USNR) I. Navy Overview 4-1 A. Navy Planning Guidance 4-1 B. Navy Equipping Policy 4-1 C. Plan to Fill RC Equipment Mobilization Requirements 4-2 D. Initiatives Affecting RC Equipment 4-2 E. Plan to Achieve Full Compatibility Between AC and RC 4-4 II. Navy Reserve Overview 4-5 A. Current Status of the Navy Reserve 4-5 B. Changes Since the Last NGRER 4-15 C. Future Years Program (FY 2018–FY 2020) 4-15 D. Summary 4-16 Table 1: USNR Consolidated Major Item Inventory and Requirements Table 2: USNR Average Age of Equipment Table 3: USNR Service Procurement Program Reserve (P-1R) Table 4: USNR NGREA Procurements Table 5: USNR Projected Equipment Transfer/Withdrawal Quantities Table 6: USNR FY 2014 Planned vs Actual Procurements and Transfers Table 7: USNR Major Item of Equipment Substitution List Table 8: USNR Significant Major Item Shortages Chapter 5 United States Air Reserve Components I. United States Air Force Overview 5-1 A. Air Force Planning Guidance 5-1 B. Air Force Equipping Policy 5-2 C. Plan to Fill Modernization Shortages in the RC 5-2 D. Initiatives Affecting RC Equipment 5-3 E. Plan to Achieve Full Compatibility Between AC and RC 5-4 II. Air National Guard Overview 5-5 A. Current Status of the Air National Guard 5-5 B. Changes Since the Last NGRER 5-18 C. Future Years Program (FY 2018–FY 2020) 5-18 D. Summary 5-19 Table 1: ANG Consolidated Major Item Inventory and Requirements Table 2: ANG Average Age of Equipment Table 3: ANG Service Procurement Program - Reserve (P-1R) Table 4: ANG NGREA Procurements Table 5: ANG Projected Equipment Transfer/Withdrawal Quantities Table 6: ANG FY 2014 Planned vs Actual Procurements and Transfers iii Table 7: ANG Major Item of Equipment Substitution List Table 8: ANG Significant Major Item Shortages III. Air Force Reserve Overview 5-20 A. Current Status of the Air Force Reserve 5-20 B. Changes Since the Last NGRER 5-28 C. Future Years Program (FY 2018–FY 2020) 5-28 D. Summary 5-29 Table 1: AFR Consolidated Major Item Inventory and Requirements Table 2: AFR Average Age of Equipment Table 3: AFR Service Procurement Program - Reserve (P-1R) Table 4: AFR NGREA Procurements Table 5: AFR Projected Equipment Transfer/Withdrawal Quantities Table 6: AFR FY 2014 Planned vs Actual Procurements and Transfers Table 7: AFR Major Item of Equipment Substitution List Table 8: AFR Significant Major Item Shortages Chapter 6 United States Coast Guard Reserve (USCGR) I. Coast Guard Overview 6-1 A. Coast Guard Planning Guidance 6-2 B. Coast Guard Equipping Policy 6-3 C. Plan to Fill Equipment Shortages in the RC 6-3 D. Initiatives Affecting RC Equipment 6-4 II. Coast Guard Reserve Overview 6-5 A. Current Status of the Coast Guard Reserve 6-5 B. Changes Since the Last NGRER 6-8 C. Future Years Program (FY 2018–FY 2020) 6-8 D. Summary 6-9 Table 1: USCGR Consolidated Major Item Inventory and Requirements Table 2: USCGR Average Age of Equipment Table 3: USCGR Service Procurement Program - Reserve (P-1R) Table 4: USCGR NGREA Procurements Table 5: USCGR Projected Equipment Transfer/Withdrawal Quantities Table 6: USCGR FY 2014 Planned vs Actual Procurements and Transfers Table 7: USCGR Major Item of Equipment Substitution List Table 8: USCGR Significant Major Item Shortages iv Appendix A: Report Requirements, Terminology, and Definitions Appendix B: National Guard Equipment Reporting Requirements Appendix C: Principles of Modernization Appendix D: DoD Report to Congress on Equipment Transparency Report (ETR) Alternatives Appendix E: Points of Contact Appendix F: Acronym Glossary v Chapter 1 Overview I. Introduction The 2018 National Defense Strategy states that we cannot expect success fighting tomorrow’s conflicts with yesterday’s weapons or equipment.1 Until recently, the Budget Control Act (BCA) perpetuated an equipping model that was designed for a Cold War Era strategic reserve and stressed by unpredictable funding, continuous operations, and the rapid pace of technological change. The Congress has just passed a new budget deal that lifts BCA budget caps for Fiscal Year (FY) 2018 and FY 2019. Until that deal is fully implemented, the realities of current force hardware will be a factor in war planning. As illustrated in Figure 1-1,2 the value of the Reserve Components (RC) equipment requirements has almost doubled since 2001, reflecting, in part, the emerging requirements for advanced equipment needed to enhance compatibility with the Active Components (AC). During the same time period, funding received by the RC RC Growing Modernization Requirements ($B) through Defense $300 Appropriations and National Guard and $250 Reserve Appropriations $200 (NGREA) remained relatively constant. $150 Historically, the Services’ $100 budget for RC equipment $50 procurement funding is less than 5 percent of the $0 total DoD procurement 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 request. This growth in RC Requirements RC Procurement Funding requirements without a corresponding increase in Figure 1-1. RC Growing Modernization Requirements new procurement funding has increased the proportion of older equipment in the inventory. Sustained operations and a reduction in Operation and Maintenance funding caused additional strain on the readiness of reserve forces. The challenges detailed above are exacerbated by budget reductions stemming from the 2011 BCA. The lack of an adequate stable budget over such a long period of time has been incredibly damaging to the military force, serving to hinder modernization efforts and leading to deteriorating readiness.