NAVAL RESERVE STATEMENT OF ADM. C. A. E. JOHNSON, DEPUTY DIRECTOR, NAVAL RESERVE PREPARED STATEMENT Senator INOUYE. The next witness is Rear Adm. C. A. E. Johnson, Deputy Director of Naval Reserve. Without objection your prepared statement will be inserted in the record. [The statement follows:] (371) PREPARED STATEMENT OF REAR ADM. C.A.E. JOHNSON, JR., USNR DEPUTY DIRECTOR OF NAVAL RESERVE MR CHAIRMAN AND MEMBERS OF THE COMMITTEE: IT IS MY PLEASURE TO MAKE MY FIRST APPEARANCE BEFORE YOU TO PRESENT THE MILITARY CONSTRUCTION REQUIREMENTS OF THE NAVAL AND MARINE CORPS RESERVE FOR FISCAL YEAR 1981. THE OBJECTIVE OF OUR MILITARY CONSTRUCTION PROGRAM, IN CONCERT WITH OUR FACILITIES MAINTENANCE AND REPAIR PROGRAM, IS TO PROVIDE ADEQUATE OPERATIONAL, MAINTENANCE, TRAINING, ADMINISTRATIVE AND PERSONNEL SUPPORT FACILITIES TO PROPERLY TRAIN OUR RESERVE PERSONNEL FOR MOBILIZATION. IN AN EFFORT TO PROVIDE THIS SUPPORT, WE ARE MAKING MAXIMUM USE OF OUR EXISTING FACILITIES TO ACCOMMODATE OUR TRAINING NEEDS, OFTEN BY EXTENSIVE MAINTENANCE, REPAIR AND ALTERATIONS. MOST OF OUR FACILITIES WERE BUILT DURING THE 40'S AND EARLY 50'S. ALMOST HALF OF THESE FACILITIES ARE SUBSTANDARD OR HAVE DETERIORATED BEYOND THE POINT OF ECONOMICAL REHABILITATION, MAINTENANCE AND REPAIR. MANY OF THE STRUCTURES HAVE A DEGRADED APPEARANCE AND ARE INEFFICIENT TRAINING PLATFORMS. WITH THE NAVAL AND MARINE CORPS RESERVES CONTINUING TO RECEIVE NEW AND IMPROVED EQUIPMENT AND NEW CHALLENGES, OUR FACILITY REQUIREMENTS HAVE INCREASED. FULLY MANNED TO AUTHORIZED STRENGTH, THE FACILITIES WE DO HAVE SEE MAXIMUM USE. IT IS IN THIS ENVIRONMENT OF FULL MANNING, A TIME OF EXPANDING ROLES, AND A TIRED AND WORN OUT PHYSICAL PLANT THAT WE SUBMIT OUR FISCAL YEAR 1981 MILITARY CONSTRUCTION, NAVAL RESERVE PROGRAM. OUR REQUEST TOTALS $24.7 MILLION OF WHICH $22.25 MILLION IS FOR SPECIFIC PROJECTS INCLUDING $0.5 MILLION FOR AN ENERGY CONSERVATION PROJECT. THIS ENERGY CONSERVATION INVESTMENT PROGRAM PROJECT IS TO PROVIDE AN ALTERNATE HEAT SOURCE AND REDUCE ENERGY LOSSES AT THE CENTRAL HEATING PLANT AT THE NAVAL AIR STATION WILLOW GROVE, PENNSYLVANIA. $1.05 MILLION IS REQUESTED TO FUND MINOR CONSTRUCTION PROJECTS COSTING LESS THAN $175,000 EACH AND $1.4 MILLION IS REQUESTED FOR PROJECT PLANNING AND DESIGN. SUBSEQUENT TO THE SUBMISSION OF OUR PROGRAM, WE RAN INTO A DELAY WITH ONE OF OUR PROJECTS SUCH THAT WE DID NOT ATTAIN 35% DESIGN COMPLETION BY 1 JANUARY AS REQUIRED FOR THE FISCAL YEAR 1981 PROGRAM. THIS WAS THE SAN DIEGO, CALIFORNIA RESERVE TRAINING CENTER. THE SITE FOR THIS PROJECT IS ON GOVERNMENT OWNED LAND LOCATED AT THE NAVAL AIR STATION, MIRAMAR. THE SITE WAS THE BACKLOG OF CONSTRUCTION DEFICIENCIES FOR NAVAL AND MARINE CORPS RESERVE FACILITIES TOTALS $251 MILLION. THIS BACKLOG REPRESENTS NECESSARY CONSTRUCTION TO SUPPORT NEW MISSIONS; TO MEET REQUIREMENTS GENERATED BY IMPROVED EQUIPMENT AND TRAINING METHODOLOGY WHICH REQUIRE MORE SOPHISTICATED FACILITIES SUPPORT; AND TO REPLACE DETERIORATED AND INADEQUATE FACILITIES. OUR CONSTRUCTION BACKLOG IS DOWN FROM $419 MILLION IN 1976 AND UP FROM $199 MILLION LAST YEAR. THE MAJOR REDUCTION IN THE BACKLOG IN RECENT YEARS CAN BE ATTRIBUTED TO THE CLOSURE OF MANY OF OUR MARGINALLY ADEQUATE RESERVE CENTERS AND FACILITIES AND THE ELIMINATION OF PROJECTS THROUGH THE REVIEW AND CONSTANT RE-EVALUATION OF THE BACKLOG. SINCE 1972 WE HAVE REDUCED THE NUMBER OF CENTERS AND FACILITIES FROM 369 TO THE PRESENT NUMBER OF 237. SIMILARLY, WE ARE DOWN FROM 30 TO 22 AIR ACTIVITIES. RAPID AND UNEXPECTEDLY SEVERE INFLATION HAS HAD AN ADVERSE IMPACT ON OUR BACKLOG AND THE EXECUTION OF MILITARY CONSTRUCTION PROGRAMS. IT HAS BEEN A MAJOR FACTOR IN THE INCREASE OF OUR CONSTRUCTION BACKLOG. FACILITY REQUIREMENTS FOR NEW EQUIPMENT AND NEWLY IDENTIFIED PROJECTS RELATED TO FACILITY OBSOLESCENCE AND DETERIORATION HAVE ALSO ADDED TO OUR BACKLOG INCREASES OVER LAST YEAR. WE WERE NOT GREATLY AFFECTED BY INFLATION UNTIL 1978. SINCE THAT TIME WE HAVE HAD TO FINISH EXECUTING ONE FISCAL YEAR PROGRAM WITH FUNDS FROM THE NEXT. WE ARE CONTINUING TO EXECUTE OUR PROGRAM WITH PRIORITY GIVEN TO PRIOR YEAR PROJECTS. WE ARE ALSO SENSITIVE TO THE NEED TO IMMEDIATELY ADVERTISE AND AWARD PROJECTS AS THEY BECOME AVAILABLE IN ORDER TO GET THE GREATEST VALUE FOR OUR INFLATED DOLLAR. ALL OF THE THE STATUS OF OUR PRIOR YEAR PROGRAMS IS EXCELLENT. FISCAL YEAR 1978 AND 1979 PROJECTS HAVE BEEN AWARDED. TWO OF OUR FISCAL YEAR 1980 PROJECTS WILL BE AWARDED BY THE END OF THIS YEAR. THE JUSTIFICATION DATA BOOKS WHICH HAVE BEEN FURNISHED CONTAIN DETAILED PROJECT DESCRIPTIONS AND SUPPORTING INFORMATION. ALL PROPOSED PROJECTS WILL IMPROVE TRAINING, OPERATIONAL, MAINTENANCE OR PERSONNEL SUPPORT FACILITIES ACTIVELY UTILIZED BY THE NAVAL AND MARINE CORPS RESERVES. THESE PROJECTS WILL CONTRIBUTE SUBSTANTIALLY TO THE IMPROVED READINESS AND RESPONSIVENESS OF THE NAVAL RESERVE AND THE MARINE CORPS RESERVE. WE APPRECIATE THE PAST SUPPORT OF THIS COMMITTEE AND EARNESTLY SEEK YOUR APPROVAL OF THE REQUIRED PROJECTS THAT COMPRISE THIS PROGRAM. I WILL BE HAPPY TO THIS CONCLUDES MY STATEMENT, MR. CHAIRMAN. ANSWER ANY QUESTIONS AND TO PROVIDE ANY ADDITIONAL INFORMATION THAT MAY BE DESIRED. BIOGRAPHICAL SKETCH Rear Admiral Johnson, a native of Minneapolis, Minnesota, enlisted in the Naval Air Reserve in 1948 and was appointed to the U. S. Naval Academy the following year. In June 1953, Rear Admiral Johnson was graduated from the Naval Academy and remained there for a brief tour in the Marine Engineering Department. Following completion of flight training, he was designated a Naval Aviator in 1954. His first assignment was with Air Antisubmarine Warfare Squadron (VS) 30, operating aboard the aircraft carriers USS VALLEY FORGE, USS ANTIETAM, and USS TARAWA. During 1957-59, Rear Admiral Johnson served as an instructor at Fleet Airborne Electronics Training Unit, Atlantic. In June 1959, he was assigned to the Engineering Department Faculty at the U. S. Naval Academy. In 1962, Rear Admiral Johnson affiliated with the Naval Air Reserve and served in three VS squadrons. He returned to active duty as a Training and Administration of Reserve (TAR) officer in 1968, and after completing a special project for the Deputy Chief of Naval Operations (Air), assumed the duties of VS Program Manager at the Naval Air Reserve Unit, Washington, D. C. During the ensuing seven years, Rear Admiral Johnson's assignments included three important tours in Washington. He served for two years on the staff of Deputy Chief of Naval Operations (Air Warfare) as the Antisubmarine Warfare Readiness Evaluator and Facilities Coordinator for Naval Reserve units. During 1974-76, he served as Director of Naval Air Reserve, Policy and Programs in the Office of the Chief of Naval Operations. He served as Assistant for Legislative Affairs and Special Projects on the staff of Deputy Assistant Secretary of Defense (Reserve Affairs), prior to assuming command of Naval Air Station, New Orleans in August 1977. Following a short period of temporary duty on the Chief of Naval Reserve staff, Rear Admiral Johnson reported to the Chief of Naval Operations as Deputy Director of Naval Reserve in September 1979. Rear Admiral Johnson's decorations include three Meritorious Service Medals and the Navy Commendation Medal. He is married to the former Elizabeth Fenstad of Grand Marais, Minnesota. They have three daughters: Carey Lea, Diane Elizabeth, and Leslie Anne. SUPPORT FOR PERSONNEL MOBILIZATION Admiral JOHNSON. Good afternoon, Mr. Chairman. It is a pleasure to make my first appearance before you to present the military construction requirements of the Naval and Marine Corps Reserve for fiscal year 1981. The objective of our military construction program together with our facilities maintenance and repair program is to provide adequate operational, maintenance, training, administrative, and personnel support facilities to properly train our Reserve personnel for mobilization. In an effort to provide this support we are making maximum use of our existing facilities to accommodate our training needs often by extensive maintenance, repair and alterations. Most of our facilities were built during the 1940's and early 1950's. Almost half of these facilities are substandard or have deteriorated beyond the point of economical rehabilitation, maintenance and repair. Fully manned to authorized strength the facilities we do have see maximum use. It is in this environment of full manning, a time of expanding roles and with tired, obsolete, inefficient, and worn out physical plants and facilities that we submit our fiscal year 1981 military construction Naval Reserve program. BUDGET REQUEST Our request totals $24.7 million of which $22.25 million is for specific projects including $500,000 for an energy conservation project and $1.05 million is requested to fund minor construction projects costing less than $175,000 each and $1.4 million is requested for project planning and design. EFFECT OF INFLATION ON BACKLOG The backlog of construction deficiencies for Naval and Marine Corps Reserve facilities totals $251 million. This backlog is down from $419 million in 1976 and up from $199 million last year. Rapid and unexpectedly high inflation has had an adverse impact on our backlog and the execution of military construction programs. It has been a major factor in the increase of our construction backlog. Facility requirements for new equipment and newly identified projects related to facility obsolescence and deterioration have also added to our backlog increases over last year. We were not greatly affected by inflation until 1978. Since that time we have had to finish executing one fiscal year program with funds from the next. We are continuing to execute our program with priority given to prior year projects. We are also sensitive to the need to immediately advertise and award projects as they become available in order to get the greatest value from our inflated costs. PRIOR YEAR PROGRAMS The status of our prior year programs is quite satisfactory. All of the fiscal year 1978 and 1979 projects have been awarded. All but |