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continues to emphasize the goal of improving material readiness and minimizing depot maintenance backlogs. Plans are to reduce the depot maintenance backlog by approximately $.3 billion in real terms between FY 1980 and FY 1982, a decrease of over 40 percent. The remaining depot maintenance backlog reflects equipment which should have been inducted into a depot by the end of the funding period, but which had not been funded. While the goal is to reduce this backlog to the extent possible, there are considerations other than funds, which in many instances preclude the induction of equipment into the depots. For example, workload considerations at DoD depots or commercial activities affect the schedule for the total elimination of backlogs. In some instances, depot maintenance backlogs cannot be eliminated with additional funds alone. Real Property Maintenance

An area of continuing concern in the Congress is the real property maintenance program. Repair, maintenance and minor construction of real property will total about $3.3 billion in FY 1982. This level of financing will meet most of the anticipated normal recurring requirements and provide funds for drawing down the backlog of maintenance and repair (BMAR) which is considerably higher than estimated last year.

In 1978, the Congress established a policy of containment which would limit the BMAR to the end fiscal year 1978 level of $2.3 billion. The BMAR in FY 1981 which was estimated to be $2.7 billion last year is now estimated to be about $3.8 billion. Even with an increase in funding of nearly $.8 billion in FY 1982, the BMAR is expected to exceed $4.0 billion. As recognized by the Congress, increases in the BMAR are the result of many factors including higher than anticipated rates of inflation, accelerating deterioration as property gets older, and new work identified by annual facilities inspections.

PROCUREMENT

The following is a summary of the FY 1982 procurement program by military department.

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The emphasis in the Army aircraft program is concentrated in the UH-60A BLACKHAWK and AH-64 (AAH) Attack Helicopter procurement programs. The spares and repair parts area and flight simulators are also emphasized. Missile procurement is highlighted by increases in the PERSHING, HELLFIRE, STINGER, and Multiple Launch Rocket System programs. The DRAGON modification program also increases for FY 1982.

Significant increases in the Army procurement program for tracked vehicles are for the Fighting Vehicle Systems (FVS) and the XM-1 tank. These

systems are moving toward full production with the FVS production rate increasing to 464 and the XM-1 to 569. The DIVAD gun is funded with initial production at a rate of 12 for FY 1982.

The major increases in ammunition procurement are for 8-inch artillery projectiles, the VIPER rocket system, ammunition for the 25mm BUSHMASTER weapon system, and 155mm artillery-delivered mines. The increases in other procurement are primarily for support vehicles and equipment.

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The Navy aircraft program is highlighted by increases in the production of the F-18 to 58, initial procurement for the SEAHAWK LAMPS ASW helicopter program, and one additional TACAMO aircraft. Spares and repair parts are emphasized to support new aircraft and war reserve engines. The increases for weapons include TRIDENT I missiles, HARPOON, RIM-66C STANDARD MR, RIM-66B STANDARD MR, and RIM-67B STANDARD ER.

The FY 1982 shipbuilding and conversion program provides 14 new construction ships and 4 conversions, as compared to the FY 1981 program of 18 new construction ships and 2 conversions. The new ships in FY 1982 are the tenth TRIDENT nuclear strategic missile submarine, an additional SSN-688 class nuclear attack submarine, the fifth and sixth CG-47 Class AEGIS cruisers, one FFG-7 patrol frigate, the leadship of a new class of mine countermeasures ship, two additional ARS salvage and rescue ships, four T-AGOS SURTASS (antisubmarine warfare) ships, the leadship of a new class of T-AO oilers, and the leadship of the T-AKX Class Maritime Prepositioning Ship. Also included are acquisition of the Royal Fleet Auxiliary ship LYNESS for conversion to a Military Sealift Command-operated T-AFS Stores Ship and a commercial cargo ship for conversion to a T-AKX Roll-On/Roll-Off ship. Two existing SL-7 cargo ships, which are assumed to be acquired with FY 1981 funding, will be converted to T-AKRX configuration for surge capability.

The increases in other procurement are primarily for support equipment for the new weapon systems entering the inventory. There are major increases in Marine Corps procurement for ammunition, communications and electronic equipment, weapons/combat vehicles, and support equipment and vehicles.

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The decrease in aircraft programs is due primarily to the declining production quantities for the A-7K, A-10, F-15, F-16, KC-10, E-3A, and C-130H aircraft programs. The emphasis in the modification program is for B-52, F-4,

EF-111, C-5 wing and C-130 modifications. There is a large increase in replenishment spares to strengthen the war reserve stocks.

The increases in the Air Force missile program are for ACLM (440 missiles), GLCM (54 missiles), IR MAVERICK (AGM-65D), the first two production satellites of the NAVSTAR Global Positioning System, 2 DSCS satellites, and the Defense Support Program. The increases in other procurement are for electronic and communications equipment, munitions, vehicles, and various base maintenance and support equipment.

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The $2.5 billion real growth represents a 14% increase over FY 1981. The growth is primarily aimed at several areas of major emphasis. Modernization of our strategic forces is one of the most significant areas of emphasis in the DoD budget. The MX missile development program, funded at $2.4 billion, is a key component of this modernization program. Other strategic program increases provide for continuing the development of cruise missile systems, adaptation of the B-52's to carry the ACLM, and continuation of the TRIDENT systems development. Funds are also provided for research on the defenserelated aspects of the Space Shuttle, the Defense Support Program (DPS), and an over-the-horizon radar system.

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There are several areas of emphasis in the general purpose and tactical
forces. Support to the Rapid Deployment Forces, improvements in our antiarmor
capabilities, and enhancement of our air and naval superiority are all areas
of critical importance. The C-X airlifter program, Infantry Manportable
Anti-Armor Weapon Systems (IMAAWS), Advanced Multi-Purpose Armored System,
CHAPPARAL missile system, HAWK improvement program, air-to-air and air-to-
ground missile improvement programs, advanced torpedo development, and Sub-
marine Advanced Combat System (SUBACS) are all programs important in these
objectives.

Protecting our technological advantages is also an important effort in
the FY 1982 research program. Some of these Technology Base and Advanced
Technology Development programs include the High Energy Laser efforts,
Charged Particle Beam programs, Very High Speed Integrated Circuits (VHSIC),
and space defense efforts.

The family housing request appears to remain constant in FY 1982 in
real terms; however, there is growth. This is not readily apparent because
it is mostly offset by the favorable impact of the passage of the Variable
Housing Allowance (VHA) [obviating the need for the domestic leasing program]
and also the projected strengthening of the dollar with respect to major
foreign currencies. Funds are included to finance the construction of 2,007
units in the United States and overseas to alleviate housing shortages for
military families and to finance sizable investments for energy conservation
and improvement projects and advance planning and design. The program will
support approximately 400,000 leased or government-owned quarters worldwide
with emphasis on an adequate maintenance effort.

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