Order Code RL32238
CRS Report for Congress
Received through the CRS Web
Defense Transformation: Background and
Oversight Issues for Congress
Updated December 20, 2004
Ronald O’Rourke
Specialist in National Defense
Foreign Affairs, Defense, and Trade Division
Congressional Research Service ˜ The Library of Congress

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Defense Transformation: Background and Oversight
Issues for Congress
Summary
The Bush Administration identified transformation as a major goal for the
Department of Defense (DOD) soon after taking office and has since worked to
refine and implement its plans for defense transformation. The issue for Congress
is how to take the concept of defense transformation into account in assessing and
acting on Administration proposals for DOD.
The Administration’s vision for defense transformation calls for shifting the
U.S. military toward a greater reliance on joint operations, network-centric warfare,
effects-based operations, speed and agility, and precision application of firepower.
To help implement this vision, DOD has created an Office of Force Transformation
(OFT), designated U.S. Joint Forces Command (USJFCOM) as its premier
“transformation laboratory,” and revised weapon acquisition regulations.
Transformation could affect the defense industrial base by transferring funding from
“legacy” systems to transformational systems, and from traditional DOD contractors
to firms that previously have not done much defense work.
Supporters of transformation argue that new technologies make possible the
creation of transformational military capabilities, that transformation is required to
meet emerging asymmetric security challenges and preserve U.S. superiority in
conventional warfare, that the current lack of a global or regional military peer
competitor creates an opportunity to invest in transformation at acceptable risk, and
that transformation will be less expensive in the long run than continuing to
modernize current capabilities. Skeptics could take issue with each of these points.
Debate has arisen over several aspects of the Administration’s transformation
plan, including overall leadership and management of transformation, the
Administration’s emphasis on network-centric warfare; the planned total size of the
military; the balance between air and ground forces; the creation of medium-weight
Army units; the balance of tactical aircraft relative to unmanned air vehicles and
bombers; its emphases on missile defense and special operations forces; and its plans
regarding reserve forces and forces for stability operations. Potential areas of debate
regarding the Administration’s proposed strategy for implementing transformation
include the balance of funding for transformation vs. near-term priorities; the roles
of OFT and USJFCOM; tests, exercises, and metrics for transformation; independent
analysis of the Administration’s plans; centralization versus decentralization in
transformation planning; and actions for creating a culture of innovation.
Some observers are concerned that the Administration’s regular (some might
even say habitual) use of the term transformation in discussing its proposals for DOD
has turned the concept of transformation into an empty slogan or buzz-phrase. Other
observers are concerned that the Administration is invoking the term transformation
as an all-purpose rhetorical tool for justifying its various proposals for DOD, whether
they relate to transformation or not, and for encouraging minimal debate on those
proposals by tying the concept of transformation to the urgent need to fight the war
on terrorism. This report will be updated as events warrant.

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Contents
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Issue For Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Related CRS Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Organization of the Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Background . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
What Is Defense Transformation? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
What Are The Administration’s Plans For Transformation? . . . . . . . . . . . . . 5
DOD Publications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Overall Vision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Service and Agency Transformation Plans . . . . . . . . . . . . . . . . . . . . . . 7
Office of Force Transformation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7
U.S. Joint Forces Command . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8
New Weapon Acquisition Regulations . . . . . . . . . . . . . . . . . . . . . . . . . 8
How Much Would Transformation Cost? . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
What Weapons And Systems Are Transformational? . . . . . . . . . . . . . . . . . 10
How Might It Affect the Defense Industrial Base? . . . . . . . . . . . . . . . . . . . 11
How Might It Affect Operations With Allied Forces? . . . . . . . . . . . . . . . . 12
What Transformational Changes Has Congress Initiated? . . . . . . . . . . . . . 13
Oversight Issues for Congress . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Is Defense Transformation Necessary or Desirable? . . . . . . . . . . . . . . . . . . 14
New Technologies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Asymmetric Challenges . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Preserving Conventional Superiority . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Opportunity And Risk . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16
Comparative Costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
If So, Is The Administration’s Plan Appropriate? . . . . . . . . . . . . . . . . . . . . 17
Proposed Direction Of Change . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17
Proposed Strategy For Implementing Transformation . . . . . . . . . . . . . 24
Potential Implications for Congressional Oversight of DOD . . . . . . . . . . . 35
Committee Organization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35
Adequacy of Information and Metrics for Assessment . . . . . . . . . . . . 36
Oversight Of Weapons Acquisition . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Transformation As All-Purpose Justification Tool . . . . . . . . . . . . . . . 38
Congressional Transformation Initiatives . . . . . . . . . . . . . . . . . . . . . . 39
Legislative Activity For FY2005 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
FY2005 Defense Authorization Bill (H.R. 4200/P.L. 108-375) . . . . . . . . . 39
House . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
Senate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Conference Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43
FY2005 Defense Appropriations Bill (H.R. 4613/P.L. 108-287) . . . . . . . . 48
House . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 48
Senate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 50
Conference Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51

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Appendix A: Additional Reading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
White House Publications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
DOD Publications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
CRS Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52
GAO Reports . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53
Other Publications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 54

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Defense Transformation: Background and
Oversight Issues for Congress
Introduction
Issue For Congress
The Bush Administration identified transformation as a major goal for the
Department of Defense (DOD) soon after taking office and has since worked to
refine and implement its plans for defense transformation. The Administration
argues that defense transformation is needed to effectively meet 21st-century security
challenges, and has justified many of its proposals for DOD on the grounds that they
are needed for defense transformation. The Administration’s emphasis on
transformation has altered the framework of debate for numerous issues relating to
U.S. defense policy and programs.
The issue for Congress is how to take the concept of defense transformation into
account in assessing and acting on Administration proposals for DOD. Key oversight
questions for Congress relating to this issue include the following:
! Is defense transformation necessary or desirable?
! If so, is the Administration’s plan for defense transformation
appropriate in terms of content and implementation strategy?
! What implications might the Administration’s plan for defense
transformation have for congressional oversight of DOD activities?
Congress’ decisions on these issues could have significant implications for
future U.S. military capabilities, DOD funding requirements, the defense industrial
base, and future congressional oversight of DOD activities.

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CRS-2
Related CRS Reports
This report addresses defense transformation from a DOD-wide perspective.
For discussions of transformation as it relates to specific parts of DOD, see:
! CRS Report RS20787 on Army transformation in general,1
! CRS Report RL32476 on the Army’s plan to reorganize itself into
modular, brigade-sized, Units of Action (UAs) — a major
component of its overall transformation effort;2
! CRS Report RS20859 on Air Force transformation,3
! CRS Report RS20851 on naval transformation,4
! CRS Report RL32411 on network-centric warfare,5
! CRS Report RL31425 on transformation of DOD intelligence,
surveillance, and reconnaissance programs,6
! CRS Report RL32151 on transformation of the military personnel
system,7 and
! CRS Report RS21975 on U.S. overseas military basing
arrangements.8
Another related product is CRS Report RL31916, which reviews a large
package of legislative proposals, entitled “Defense Transformation for the 21st
Century Act of 2003,” that the Administration submitted to Congress in April 2003.9
Organization of the Report
The next section of this report provides basic background information on
defense transformation. The following section addresses key oversight questions for
Congress. An appendix provides a list of additional readings.
1 CRS Report RS20787, Army Transformation and Modernization: Overview and Issues for
Congress, by Edward F. Bruner.
2 CRS Report RL32476, U.S. Army’s Modular Redesign: Issues for Congress, by Andrew
Feickert.
3 CRS Report RS20859, Air Force Transformation, by Christopher Bolkcom.
4 CRS Report RS20851, Naval Transformation: Background and Issues for Congress, by
Ronald O’Rourke.
5 CRS Report RL32411, Network Centric Warfare: Background and Oversight Issues for
Congress, by Clay Wilson.
6 CRS Report RL31425, Military Transformation: Intelligence, Surveillance, and
Reconnaissance, by Judy G. Chizek.
7 CRS Report RL32151, DOD Transformation Initiatives and the Military Personnel
System: Proceedings of a CRS Seminar, by Lawrence Kapp.
8 CRS Report RS21975, U.S. Military Overseas Basing: Background and Oversight Issues
for Congress, by Jon D. Klaus.
9 CRS Report RL31916 Defense Department Original Transformation Proposal: Compared
to Existing Law, by Robert L. Goldich, et al.

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CRS-3
Background
This section provides basic background information on the concept of defense
transformation and the Administration’s plans for defense transformation. Questions
addressed in this section include the following:
! What is defense transformation?
! What are the Administration’s plans for defense transformation?
! How much would defense transformation cost?
! What military weapons and systems are considered
transformational?
! How might the Administration’s transformation plans, if
implemented, affect the U.S. defense industrial base?
! What implications might defense transformation have for the ability
of U.S. military forces to participate in combined operations with the
military forces of allied and friendly countries?
What Is Defense Transformation?
The term defense transformation came into common use in the late 1990s. It
has been defined by military officials, military analysts, and other observers in
various ways. In general, though, defense transformation can be thought of as large-
scale, discontinuous, and possibly disruptive changes in military weapons,
organization, and concepts of operations (i.e., approaches to warfighting) that are
prompted by significant changes in technology or the emergence of new and different
international security challenges.10
Advocates of defense transformation stress that, in contrast to incremental or
evolutionary military change brought about by normal modernization efforts, defense
transformation is more likely to feature discontinuous or disruptive forms of change.
They also stress that while much of the discussion over transformation centers on
changes in military weapons and systems, changes in organization and concepts of
operations can be as important, or even more important, than changes in weapons and
systems in bringing about transformation. Changes in organization and concepts of
operation, some have argued, can lead to transformation even without changes in
weapons and systems, while even dramatic changes in weapons and systems might
not lead to transformation if not accompanied by changes in organization and
concepts of operation.
10 Some transformation advocates argue that transformation can and should be pursued
during periods of military dominance and political stability. They argue that countries that
are defeated in military conflicts learn much faster from their experience in war than do
countries that are victorious. Victorious countries, they argue, can become complacent,
making only incremental improvements to military forces and concepts of operations that
appear dominant, and are then unpleasantly surprised in subsequent conflicts by adversaries
that, in the meantime, have developed new and unforeseen military capabilities.

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CRS-4
DOD has defined transformation in one document as a
process that shapes the changing nature of military competition and cooperation
through new combinations of concepts, capabilities, people and organizations
that exploit our nation’s advantages and protect against our asymmetric
vulnerabilities to sustain our strategic position, which helps underpin peace and
stability in the world.
First and foremost, transformation is a continuing process. It does not have
an end point. Transformation anticipates and creates the future and deals with
the co-evolution of concepts, processes, organizations, and technology. Profound
change in any one of these areas necessitates change in all. Transformation
creates new competitive areas and competencies and identifies, leverages, or
creates new underlying principles for the way things are done. Transformation
also identifies and leverages new sources of power. The overall objective of
these changes is to sustain U.S. competitive advantage in warfare.11
The Administration’s view of transformation has evolved somewhat since early
2001 to include more emphasis on transformation as a continuing process rather than
one with an endpoint, and on making changes not just in combat forces and
warfighting doctrine, but in supporting DOD activities such as training, personnel
management, logistics, and worldwide basing arrangements. The Administration’s
definition of transformation also encompasses making changes in DOD business
policies, practices, and procedures, particularly with an eye toward streamlining
operations and achieving efficiencies so as to reduce costs and move new weapon
technologies from the laboratory to the field more quickly. The Administration has
also used the term transformation to refer to proposed changes in matters such as the
budget process and environmental matters affecting military training.
Some observers have equated transformation principally with the idea of making
U.S. forces more mobile, agile, and lethal through greater reliance on things such as
unmanned vehicles (UVs), advanced technologies for precision-strike operations, and
special operations forces (SOF). Other observers have equated transformation
principally with the concept of network-centric warfare (NCW)12 and the C4ISR13
technologies needed to implement NCW. Still others have equated transformation
primarily with making U.S. military forces more expeditionary,14 with making order-
of-magnitude improvements in specific military capabilities, with making many
11 U.S. Department of Defense, Office of the Secretary of Defense, Director, Force
Transformation, Military Transformation[:] A Strategic Approach, Fall 2003, p. 8.
12 NCW refers to using networking technology — computers, data links, and networking
software — to link U.S. military personnel, ground vehicles, aircraft, and ships into a series
of highly integrated local- and wide-area networks capable of sharing critical tactical
information on a rapid and continuous basis.
13 C4ISR stands for command, control, communications, computers, intelligence,
surveillance, and reconnaissance.
14 In general, this means making U.S. forces more capable of rapidly moving to distant
operating areas and conducting operations in those areas with less reliance on pre-existing
in-theater bases, infrastructure, or supplies.

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CRS-5
smaller improvements that add up to larger improvements, or with the notion of
weapon modernization in general.
Some of these alternative formulations are not so much definitions of
transformation as prescriptions for how U.S. military forces should be transformed.
Others can be viewed as reducing the threshold of what qualifies as transformation
by including changes that, while perhaps dramatic, represent an elaboration of current
practices and arrangements rather than something discontinuous with or disruptive
of those practices and arrangements.
Related to the concept of defense transformation is the somewhat earlier term
Revolution in Military Affairs (RMA), which came into use in the early 1990s.15
RMAs are periodic major changes — discontinuities — in the character of warfare.
Depending on the source consulted, a few or several RMAs are deemed to have
occurred in recent decades or centuries. Although the terms transformation and
RMA have sometimes been used interchangeably, RMA can be used to refer to a
major change in the character of warfare, while transformation can be used to refer
to the process of changing military weapons, concepts of operation, and organization
in reaction to (or anticipation of) an RMA.
What Are The Administration’s Plans For Transformation?
DOD Publications. DOD has published a number of documents describing
the Administration’s plans for defense transformation. Among these are Elements
of Defense Transformation, published in October 2004, Military Transformation:
A Strategic Approach, published in the fall of 2003, Transformation Planning
Guidance, published in April 2003, and separate transformation plans (called road
maps) for each of the military services. These and other DOD publications on
transformation are listed in the appendix to this CRS report, and can also be found
at the website for DOD’s Office of Force Transformation [http://www.oft.osd.mil].
Overall Vision. In general, the Administration’s vision for defense
transformation calls for shifting the U.S. military away from a reliance on massed
forces, sheer quantity of firepower, military services operating in isolation from one
another, and attrition-style warfare,16 and toward a greater reliance on joint (i.e.,
integrated multi-service) operations, NCW, effects-based operations (EBO),17 speed
15 The term RMA was a reformulation of the even earlier term, Military Technical
Revolution (MTR), which was coined by Soviet military analysts during the Cold War to
refer to fundamental changes in warfare that are brought about by major new technologies,
such as nuclear weapons. Western military analysts, concerned that the term MTR placed
too exclusive an emphasis on changes in technology, created the term RMA so as to take
into account changes in military organization and concepts of operations as well.
16 Attrition-style warfare refers to a traditional warfighting strategy that focuses on seeking
out the enemy’s military forces, wherever they might be, and then using firepower to destroy
them piece by piece, through a process of gradual attrition, until the enemy is no longer
capable of fighting effectively.
17 Effects-based operations , also called effects-based warfare, refers to a warfighting
strategy that has been proposed as an alternative to traditional attrition-style warfare. Rather
(continued...)

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CRS-6
and agility, and precision application of firepower. Some transformation advocates
characterize these changes as shifting from an industrial-age approach to war to an
information-age approach. As mentioned earlier, the Administration’s
transformation vision also includes proposals for changing things like training
practices, personnel management practices, logistics operations, and worldwide
basing arrangements, and for changing DOD’s business practices, particularly with
an eye toward streamlining those practices so as to accelerate the fielding of new
weapons and generate savings that can be used to invest in them.
DOD states that its transformation effort is focused on achieving six “critical
operational goals” and consists of four essential “pillars:”
Six critical operational goals identified by Secretary of Defense Donald H.
Rumsfeld provide the focus for the Department’s transformation efforts: (1)
Protecting critical bases and defeating chemical, biological, radiological, and
nuclear weapons; (2) Projecting and sustaining forces in anti-access
environments; (3) Denying enemy sanctuary; (4) Leveraging information
technology; (5) Assuring information systems and conducting information
operations; and (6) Enhancing space capabilities. Over time, the continued focus
of the Department’s force transformation efforts on the development of the
capabilities necessary to achieve these six critical operational goals will help
shift the balance of U.S. forces and broaden our capabilities....
The four military transformation pillars identified by the Secretary —
strengthening joint operations, exploiting U.S. intelligence advantages, concept
development and experimentation, and developing transformational capabilities
— constitute the essential elements of the Department’s force transformation
strategy. The first pillar focuses on strengthening joint operations through the
development of joint concepts and architectures and the pursuit of other
important jointness initiatives and interoperability goals. The overarching Joint
Operations Concepts (JOpsC) document provides the operational context for
military transformation by linking strategic guidance with the integrated
application of Joint Force capabilities. The second pillar involves exploiting U.S.
intelligence advantages through multiple intelligence collection assets, global
surveillance and reconnaissance, and enhanced exploitation and dissemination.
Our ability to defend America in the new security environment requires
17 (...continued)
than focusing on seeking out and destroying enemy forces wherever they might be, effects-
based operations focuses on attacking selected key elements of the enemy’s ability to fight
in a coordinated manner. Under an effects-based strategy, U.S. forces might attack the
enemy’s military leadership, its military command-and-control systems, and the most
politically and militarily significant elements of the enemy’s fielded military forces while
bypassing less significant enemy military forces. The goal of effects-based warfare is to
create specific effects on the enemy that lead to a rapid collapse of the enemy’s willingness
and ability to fight, without having to go through a time-consuming and potentially costly
effort to destroy the bulk of the enemy’s military forces through a gradual process of
attrition.
Some observers argue that the concept of effects-based operations is not new and has been
employed in past conflicts. Observers also argue, however, that new technologies may
significantly increase the effectiveness of effects-based operations.

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CRS-7
unprecedented intelligence capabilities to anticipate where, when, and how
adversaries intend to harm us.
The third pillar, concept development and experimentation, involves
experimentation with new approaches to warfare, operational concepts and
capabilities, and organizational constructs through war gaming, simulations, and
field exercises focused on emerging challenges and opportunities. Experiments
designed to evaluate new concepts provide results that help refine those concepts
in an iterative fashion. [Regarding the fourth pillar, the] Department requires
strong mechanisms for implementing results from concept development and
experimentation and, more immediately, for developing transformational
capabilities needed to support the JOpsC and subordinate Joint Operating
Concepts.18
Service and Agency Transformation Plans. The military services and
DOD agencies have developed transformation plans or road maps in support of
DOD’s overall transformation vision.
The Army’s transformation plan centers on reorganizing the Army into modular,
brigade-sized forces called Units of Action (UAs) that can be deployed to distant
operating areas more easily and can be more easily tailored to meet the needs of each
contingency.
Key elements of the Air Force’s transformation plan include reorganizing the
service to make it more expeditionary, and exploiting new technologies and
operational concepts to dramatically improve its ability to rapidly deploy and sustain
forces, to dominate air and space, and to rapidly identify and precisely attack targets
on a global basis.
Key elements of naval transformation include a focus on operating in littoral
(i.e., near shore) waters, new-design ships requiring much-smaller crews, directly
launching and supporting expeditionary operations ashore from sea bases, more
flexible naval formations, and more flexible ship-deployment methods.
Elements common to the transformation plans of all the services include greater
jointness, implementing NCW, and greater use of unmanned vehicles (UVs). As
mentioned earlier, for more on the transformation plans of the Army in general, the
Army plan for UAs, the Air Force, and the Navy, see CRS Report RS20787, CRS
Report RL32476, CRS Report RS20859, and CRS Report RS20851, respectively.
Office of Force Transformation. To help implement transformation, DOD
created the Office of Force Transformation (OFT), which resides within the Office
of the Secretary of Defense (OSD). OFT is a small office with a staff of fewer than
30 people and an FY2004 budget of about $30 million. Among other things, OFT
issues guidance to the rest of DOD on transformation; reviews and approves
transformation plans submitted by the military services and DOD agencies; acts as
a generator, promoter, and clearinghouse of ideas for transformation; and generally
evangelizes in support of transformation. OFT is currently headed by retired Navy
18 Military Transformation[:] A Strategic Approach, op cit., p. 3.

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CRS-8
Vice Admiral Arthur K. Cebrowski. Cebrowski was previously the President of the
Naval War College, where he was a leading proponent of the then-emerging concept
of NCW and initiated studies on radically new kinds of Navy warships.
U.S. Joint Forces Command. As another measure to help implement
transformation, DOD designated U.S. Joint Forces Command (USJFCOM), a unified
military command with a staff of more than 800 headquartered in Norfolk, VA, as
the military’s premier “transformation laboratory.” USJFCOM states that its
commander, currently Admiral Edmund P. Giambastiani, Jr., is responsible for,
among other things, overseeing USJFCOM’s
roles in transformation, experimentation, joint training, interoperability and force
provision as outlined in the Department of Defense’s Unified Command Plan.
The Department of Defense appointed U.S. Joint Forces Command as the
“transformation laboratory” of the United States military that serves to enhance
the unified commanders’ capabilities to implement that strategy. We develop
concepts, test these concepts through rigorous experimentation, educate joint
leaders, train joint forces, and make recommendations on how the Army, Navy,
Air Force and Marines can better integrate their warfighting capabilities.
USJFCOM develops future concepts for joint warfighting.... The
overarching transformation concept, effects-based operations (EBO)[,] is the
benchmark in which all testing, concept development and training adheres.
The joint force concept development and experimentation focus is an
inherent component of this mission, and will transport the EBO concept to
reality. Joint force integrator evaluates and prioritizes the solutions that support
EBO. The joint force trainer role allows USJFCOM to rapidly introduce new
doctrine and receive immediate feedback from the warfighters. And the role as
joint force provider will monitor and deploy these effects-based forces to
combatant commanders for the variety of missions they are tasked to perform.19
New Weapon Acquisition Regulations. As a fourth step to help
implement transformation, the Administration has revised the regulations governing
the acquisition of new weapons and systems with the aim of reducing costs and
“acquisition cycle time” — the time needed to turn useful new technologies into
fielded weapon systems. A key element of DOD’s effort in this regard is
evolutionary acquisition with spiral development (EA/SD), which DOD has
identified is its new preferred acquisition strategy. EA/SD is an outgrowth of the
defense acquisition reform movement of the 1990s and is intended to make its
acquisition system more responsive to rapid changes in threats, technology, and
warfighter needs. For more on EA/SD, see CRS Report RS21195.20
19 [http://www.jfcom.mil/about/about1.htm].
20 CRS Report RS21195, Evolutionary Acquisition and Spiral Development in DOD
Programs: Policy Issues for Congress, by Gary J. Pagliano and Ronald O’Rourke.

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CRS-9
How Much Would Transformation Cost?
Much of the interest in Congress and elsewhere about defense transformation
centers on the question of how much it might cost. Calculating the potential cost of
defense transformation is not an easy matter, for the following reasons:
! Opinions differ, often significantly, on what kinds of planned
changes for DOD qualify as transformational, and which do not.
! Developing and acquiring new weapons and equipment that are
deemed transformational can be very expensive, but the cost of this
can be offset, perhaps substantially or even completely, by reducing
or cancelling the development and procurement of non-
transformational weapons and equipment that would no longer be
needed.
! Implementing transformational changes in organization can also cost
money, but these costs might similarly be offset by the reduced
recurring cost of maintaining the new forms of organization.
! While exercises intended to explore new warfighting concepts of
operation can be expensive, the cost of staging these exercises can
be offset by curtailing other exercises that are intended to further
develop older concepts of operations.
! If transformation is viewed as a continuing process rather than one
with an endpoint, any calculations of its cost become snapshots
rather than final figures.
Since the initial stages of the Administration’s transformation plan might
involve making changes to only a relatively small fraction of the force, the near-term
net cost impact of transformation may be somewhat limited.
Although some analysts who advocate defense transformation might personally
support increased spending on defense, most appear to advocate transformation as
a cost-neutral or cost-reducing proposition. Indeed, some advocates support their
proposals for transformation on the grounds that they represent a less expensive
strategy for meeting future security challenges than the alternative of investing in
programs for making more incremental or evolutionary changes to current military
capabilities. Some analysts have gone even further, arguing that an increasing
defense budget might actually impede transformation by permitting officials to
believe that projected security challenges can be solved by investing larger amounts
of funding in today’s military forces, while a constrained or declining defense budget,
conversely, might help encourage transformation by forcing officials to contemplate
more seriously the idea of shifting to new and less expensive approaches for meeting
these challenges.
The Administration has stressed that its interest in incorporating current best
private-sector business practices in DOD operations, and in running DOD more “like
a business,” is driven in large part by a desire to run DOD more efficiently and

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thereby generate maximum savings that can be used for, among other things,
investing in transformation.
In early 2003, the Administration stated that its proposed FY2004 defense
budget was the first to reflect in a significant way its plans for transformation. The
Administration stated that this budget included a total of about $24 billion for
investments that it considered transformational, and that the FY2004-FY2009 Future
Years Defense Plan (FYDP) accompanying the proposed FY2004 budget contained
a total of $82 billion in various savings initiatives intended to help finance
transformation.
In February 2004, the Administration stated that its proposed FY2005 defense
budget included a total of about $29 billion for investments that it considered
transformational.
What Weapons And Systems Are Transformational?
Although transformation involves significant changes in organization and
concepts of operations, much of the debate over transformation has centered on
which military weapons and systems should be deemed transformational, and which
not. Experts disagree on this question, even when working from a common
definition of transformation. As a result, lists of weapons and systems that qualify
as transformational differ from one source to the next.
Supporters of various weapon procurement programs, keenly aware of the
Administration’s interest in transformation, have been eager to argue that their own
favored weapon systems should be viewed transformational, or at least not as
“legacy” — a label that in some eyes has become synonymous with obsolescence and
suitability for reduction or termination.21 As a result, a wide variety of military
weapons and systems have been presented at one point or another as
transformational, while fewer have been spotlighted as non-transformational or
legacy.
Weapons and systems that have frequently been identified as closely associated
with the Administration’s transformation vision include but are not necessarily
limited to the following:
! C4ISR systems that link U.S. and coalition military units into highly
integrated networks for conducting NCW,
! forces for countering terrorists and weapons of mass destruction,
! space systems,
! missile defense,
21 The term “legacy” was originally a policy-neutral term used to refer to existing or current-
generation weapons that, while not transformational, could well be worth procuring or
maintaining in inventory, at least for some number of years. Over time, however, the term
“legacy” has come to be used in a more pejorative manner, to refer to systems that are not
only not transformational, but obsolescent and ripe for immediate termination or
elimination.

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CRS-11
! unmanned vehicles,
! special operations forces,
! precision-guided air-delivered weapons,
! lighter and more mobile Army ground forces, and
! smaller and faster Navy surface ships.
Weapons and systems that have been identified by various observers, not
necessarily by DOD, as non-transformational or legacy include the following:
! weapons and associated C4ISR systems that operate in an isolated,
stand-alone manner rather than as part of a network,
! unguided weapons,
! heavy armored forces for the Army,
! manned tactical aircraft, and
! large, slower-moving Navy surface ships.
How Might It Affect the Defense Industrial Base?
A related matter of interest to Congress is how the Administration’s
transformation plans, if implemented, might affect the composition of U.S. defense
spending and, as a consequence, revenues and employment levels of various firms
in the defense industrial base. In assessing this issue, potential points to consider
include the following:
! Transformational vs. non-transformational/legacy programs.
To some degree, implementing the Administration’s transformation
vision could lead to increased DOD spending on the items listed
above as transformational, and more restrained amounts of spending
on the items listed above as non-transformational or legacy.
! Large-scale systems integration work. Implementing the
Administration’s transformation plan could lead to increased DOD
spending for the large-scale systems integration work that is required
to tie individual military weapons and systems together into
smoothly functioning “systems of systems.” Some defense firms,
particularly some of the larger ones, have taken steps to strengthen
and publicize their capacity for performing this kind of work.
! Large, diversified contractors vs. specific units within them and
smaller firms. For larger defense firms that perform a wide range
of work for DOD,22 implementing the Administration’s
transformation plan might transfer revenues from one part of the
company to another without necessarily having a major effect on the
company’s bottom line. The potential effect on individual units
within those firms, however, may be greater, if those facilities
22 Examples of such firms would include Boeing, General Dynamics, Lockheed Martin,
Northrop Grumman, and Raytheon — the 5 leading U.S. defense contractors that emerged
from the consolidation of the defense sector that began in the early 1990s.

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CRS-12
specialize in producing only certain kinds of defense goods or
services. These units — as well as smaller defense firms that
perform a less-diverse array of work for DOD — may be more likely
to experience either an increase or decrease in revenues and
employment levels as a result of transformation.23
! Traditional vs. non-traditional DOD contractors. Some new
technologies that may contribute to transformation, particularly
certain information technologies, are found more in the civilian
economy than in the world of defense-related research. As a result,
implementing the Administration’s transformation plan could shift
some DOD spending away from traditional DOD contractors and
toward firms that previously have done little or no business with
DOD. Indeed, DOD is currently attempting to encourage firms that
have not previously done business with DOD — so-called “non-
traditional” contractors — to begin doing business with DOD, so
that DOD may make maximum use of applicable technologies from
the civilian sector.
How Might It Affect Operations With Allied Forces?
What implications might defense transformation have for the ability of U.S.
military forces to participate in combined operations with the military forces of allied
and friendly countries? DOD states that it is working toward a transformed force
capable of conducting effective combined operations:
As the U.S. military transforms, our interests are served by making arrangements
for international military cooperation to ensure that rapidly transforming U.S.
capabilities can be applied effectively with allied and coalition capabilities. U.S.
transformation objectives should be used to shape and complement foreign
military developments and priorities of likely partners, both in bilateral and
multilateral contexts.24
In spite of this stated intention, however, other observers, including some in
allied and friendly countries, have expressed concern that U.S. defense
transformation could widen the current gap between U.S. and foreign military
concepts and capabilities, which is already quite significant in some respects, and
thereby make U.S. forces less compatible with allied and friendly forces. Reduced
compatibility, they believe, could lead to reduced coalition warfighting effectiveness
when the United States engages in combined operations with allied and friendly
forces, increased risk of fratricide (i.e., friendly-fire) incidents involving U.S. and
coalition forces, and increased risk of political friction between the United States and
its coalition partners.
23 For more on the potential effects of transformation on the industrial base, see Peter J.
Dombrowski, Eugene Gholz, Andrew L. Ross, Military Transformation and the Defense
Industry after Next [:] The Defense Industrial Implications of Network-Centric Warfare,
Final Report, Newport Paper #18, (Newport: Naval War College, 2003).
24 Military Transformation[:] A Strategic Approach, op cit., p. 10.

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CRS-13
Whether transformation strengthens or weakens the ability of U.S. forces to
participate in combined operations with foreign military forces will depend in part
on decisions made by foreign governments. If these governments, for example,
invest in networking technologies for NCW that are compatible with those used by
U.S. forces, it could increase interoperability with U.S. military forces to a level that
was not possible in pre-NCW times. Conversely, if those governments do not
significantly invest in networking-related technologies for NCW, or invest in
technologies that are not compatible with those of U.S. forces, it could reduce
interoperability between U.S. forces and the forces of those countries below what it
is today. Under this latter scenario, operations involving U.S. and foreign military
forces might be combined operations in name only, with the foreign forces assigned
to marginal or other functions that can be performed acceptably without being fully
incorporated into the U.S. network or without creating complications.
Future interoperability with foreign military forces will also depend in part on
decisions made together by U.S. and foreign leaders. Decisions that align emerging
U.S. concepts of operations with those of foreign military forces, and to hold
combined exercises employing these new concepts of operations, could improve the
potential for conducting effective combined operations. Conversely, lack of
coordination in emerging concepts of operations, or of exercises to practice them
together, could impede interoperability and reduce the potential for effective
combined operations.
What Transformational Changes Has Congress Initiated?
Congress in past years has instituted changes that can be viewed as examples of,
or contributors to, defense transformation, including changes that were opposed (or
at least not proposed or actively supported) by DOD leaders. Examples of such
actions include the following:
! Congress played a leading role in promoting jointness within DOD
by creating the landmark 1986 Goldwater-Nichols Act (P.L. 99-
433), which, among other things, strengthened the institutional roles
played by the Joint Chiefs of Staff and the commanders in charge of
joint forces assigned to various regions around the world. Although
the term defense transformation was not in common use in 1986, the
Goldwater-Nichols Act today can be viewed, in retrospect, as a
significant early example of defense transformation.25
! Congress in 1986 also expressed concern for the status of SOF
within overall U.S. defense planning and passed legislation —
Section 1311 of the FY1987 defense authorization act (P.L. 99-661)
— to strengthen its position. Among other things, Section 1311
established the U.S. Special Operations Command (USSOCOM) as
a new unified command. To the extent that enhancement of special
25 For background information on the Goldwater-Nichols Act, see CRS Report RL30609,
Department of Defense Reorganization Act of 1986: Proposals for Reforming the Joint
Officer Personnel Management Program, by Katherine Lemay Brown, pp. 2-5.

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CRS-14
operations forces is now considered a key element of defense
transformation, this action also can be viewed, in retrospect, as an
early example of transformation.
! In 2000, Congress passed legislation — Section 220 of the FY2001
defense authorization act (P.L. 106-398) — that established a
transformation-related goal for unmanned vehicles. The provision
stated that “It shall be a goal of the Armed Forces to achieve the
fielding of unmanned, remotely controlled technology such that —
(1) by 2010, one-third of the aircraft in the operational deep strike
force aircraft fleet are unmanned; and (2) by 2015, one-third of the
operational ground combat vehicles are unmanned.”
Oversight Issues for Congress
This section addresses the following potential oversight issues for Congress:
! Is defense transformation necessary or desirable?
! If so, is the Administration’s plan for defense transformation
appropriate in terms of content and implementation strategy?
! What implications might the Administration’s plan for defense
transformation have for congressional oversight of DOD activities?
Is Defense Transformation Necessary or Desirable?
Particularly now that the Administration is proposing to begin increasing
spending on programs that it connects with transformation, one potential oversight
issue for Congress is whether transformation is necessary or desirable. Supporters
of the notion that transformation is necessary or desirable make five general
arguments:
! New technologies make possible the creation of new,
transformational military capabilities.
! Transformation is required to meet emerging asymmetric security
challenges.
! Transformation is also required to preserve U.S. superiority in
conventional warfare over the long run.
! The current lack of a global or regional military peer competitor
creates an opportunity — a window in time — to invest in
transformation at acceptable risk.
! Transformation will be less expensive in the long run than
attempting to meet emerging asymmetric threats or preserve U.S.
conventional superiority through more routine modernization of
current capabilities.26
26 For lengthier versions of the arguments for transformation as articulated by DOD, see
pages 12-16 of Military Transformation[:] A Strategic Approach, op cit, or pages 4-6 of
(continued...)

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CRS-15
New Technologies. Supporters of transformation argue that advanced
information technologies, as well as new technologies for distributed sensors,
unmanned vehicles, and precision-guided munitions, make possible the creation of
new, transformational military capabilities in the form of agile, distributed forces
armed with precision-guided weapons that can operate in a network-centric
environment so as to conduct effects-based operations. Incorporating these new
technologies into today’s forces without undergoing transformational changes in
organization and concepts of operation, they argue, would waste much of the
potential warfighting benefit afforded by these technologies.
Skeptics could argue that although new technologies make transformation
possible, that doesn’t necessarily mean that transformation is necessary or desirable
right now. These technologies, they could argue, can be incorporated into U.S. forces
through routine modernization of existing capabilities, without making
transformational changes in organization and concept of operation. The notion that
transformational change is needed to adequately capture the benefits of these new
technologies, they could argue, is theoretical and unproven. Changes in organization
and concepts of operation, they could argue, can always be made later, if practical
experience shows that incorporating these technologies through routine
modernization does not adequately exploit their warfighting potential.
Asymmetric Challenges. Supporters of transformation argue that
transformation is needed to counter emerging asymmetric military challenges, in
which adversaries avoid competing head-on against conventional U.S. military
strengths. Emerging asymmetric challenges that transformation supporters cite
include (but are not necessarily limited to) terrorism; nuclear, chemical, and
biological weapons; long-range ballistic and cruise missiles; cyberwarfare; attacks
on U.S. military satellites; and anti-access/area-denial (AA/AD) systems aimed at
preventing U.S. forces from gaining access to ports, airfields, bases, staging areas,
and littoral (near-shore) waters that U.S. forces now depend on to mount military
operations in distant theaters.27 Routine modernization of current U.S. military
forces, they argue, will not provide forces well suited to countering these emerging
asymmetric challenges.
Skeptics could argue that asymmetric military challenges may require certain
enhancements to current U.S. military capabilities, but that these enhancements can
be made by adding or expanding selected military capabilities, or through routine
modernization of current capabilities. For example, they could argue, intelligence
capabilities and special operations forces can be strengthened to counter terrorism,
and ballistic missile defenses can be fielded, without requiring significant changes
to other parts of the military. Asymmetric challenges, they could argue, are nothing
new — the United States has long had to contend with thinking adversaries that could
adapt and change — and DOD has successfully dealt with such challenges in the past
without undertaking transformational changes.
26 (...continued)
Transformation Planning Guidance, op cit.
27 Examples of AA/AD systems include shorter-ranged ballistic and cruise missiles, mines,
and non-nuclear-powered submarines.

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CRS-16
Preserving Conventional Superiority. Supporters of transformation argue
that transformation is also needed ensure that the current U.S. superiority in
conventional warfare does not erode over time. Many of the key technologies that
are involved in U.S. defense transformation, including information technologies, they
argue, are widely available and will be similarly exploited by the military forces of
potential U.S. adversaries. Consequently, they argue, routine modernization of
current U.S. military forces that does not take full advantage of these new
technologies will not be sufficient to preserve current U.S. superiority in
conventional warfare.
Skeptics could argue that transformation is not necessarily required to preserve
U.S. conventional superiority over the long run. They could argue that, as
demonstrated by recent major combat operations in Kosovo, Afghanistan, and Iraq,
the current degree of U.S. superiority in conventional warfare is so large, and the
potential cost for other countries to challenge that superiority (even with use of new
technologies and concepts of operations) is so high, that challenges to U.S.
conventional superiority are unlikely, and that any challenges that do occur would
require many years to implement. Consequently, they could argue, routine
modernization efforts will be sufficient to preserve U.S. conventional superiority for
many years.
Opportunity And Risk. Transformation supporters argue that the current
lack of a worldwide or major regional military peer competitor to the United States
creates an opportunity — a window in time — that permits the United States, at
acceptable risk, to shift some funds away from nearer-term routine modernization
programs and toward longer-term efforts aimed at creating new, transformational
military capabilities. Putting off transformation until the emergence of a military
peer competitor, they argue, would not only make it more difficult for the United
States to respond to that competitor, but could also make the emergence of such
competitors more likely by encouraging potential competitors to believe that the
United States was neglecting to maintain its superiority in conventional warfare.
Other transformation supporters argue that current U.S. operations in Iraq,
Afghanistan, the Balkans, and other locations is accelerating transformation by
prompting rapid, battle-induced changes in U.S. technology, organization, and
concepts of operations. They also argue that U.S. operations in these locations
promote transformation because the return of individual U.S. units from these
locations at the ends of their periods of deployment provides a natural opportunity
to “reset” those units to a new, transformed organization.28
Skeptics could argue that current operational demands on U.S. forces in Iraq,
Afghanistan, the Balkans, and other locations, far from creating a window of
opportunity for transformation, increase the risks of attempting transformation right
now. Shifting funds away from near-term readiness and modernization and toward
longer-term efforts aimed at transformation, and making changes in organization and
28 See, for example, Jefferson Morris, “Iraq Operations Accelerating Transformation,
Cebrowski Says,” Aerospace Daily & Defense Report, August 4, 2004; and Sandra Jontz,
“Schoomaker: War Aids Transformation,” European Stars and Stripes, July 28, 2004.

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CRS-17
concepts of operations, they could argue, could reduce readiness and disrupt
institutional relationships in the military at a time when U.S. forces are maintaining
a high tempo of operations and face lethal threats from insurgent forces. Attempting
transformation now, they could argue, would be like trying to change horses in the
middle of a river crossing. The risks of attempting transformation under current
circumstances, they could argue, would be compounded by the uncertain
effectiveness of the new and somewhat experimental capabilities being contemplated
under transformation.
Comparative Costs. Transformation supporters argue that even if routine
modernization of current capabilities can meet emerging asymmetric security
challenges and preserve U.S. conventional superiority, transformation can achieve
these goals at less expense over the long run, because it will more fully exploit the
warfighting benefits of new technologies than routine modernization can, as well as
facilitate the review and elimination of expensive but unneeded legacy forces.
Skeptics could argue that the costs of transformation, both in the near term and
long term, are uncertain, and that transformation therefore might not necessarily be
less expensive than routine modernization. They could also argue that transformation
could turn out to be very expensive if the nature of the transformation undertaken
turns out to be incorrect and another set of changes is needed to correct the mistake.
If So, Is The Administration’s Plan Appropriate?
If transformation is judged to be necessary or desirable, a potential follow-on
oversight question for Congress is whether the Administration’s plan for defense
transformation is appropriate in terms of the proposed direction of change and the
proposed strategy for implementing changes. Each of these issues is discussed
below.
Proposed Direction Of Change. Current U.S. military forces could be
transformed in a number of ways. Is the Administration’s plan for transformation
appropriate in terms of how it would change the force? Discussion on this question
has developed on a number of elements in the Administration’s plan, including those
presented below.
Network-Centric Warfare. Some observers argue that the Administration’s
transformation plan places too much emphasis on the concept of network-centric
warfare. The Administration’s plan, they argue, overestimates the potential benefits
of NCW and underestimates its potential risks. The ability of NCW to overcome
uncertainty and confusion on the battlefield — the fog of war — may not be as great
as advocates of the Administration’s plan make it out to be, they argue, particularly
when operating in certain environments, such as urban areas. The Administration’s
planned emphasis on NCW, they also argue, could make U.S. forces excessively
vulnerable to electronic jamming and cyberwar attacks aimed at disrupting the
computers and data links that form the network. Such attacks, if successful, could

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CRS-18
degrade or even bring down the network, they argue, isolating individual U.S.
military units and leaving them potentially vulnerable to destruction.29
Supporters of the Administration’s plan argue that DOD is aware that the
benefits of NCW can vary depending on the type of operation in question and the
environment in which it is being conducted. They also argue that the threat of
jamming and cyberwar attacks is fully recognized and is being taken into account in
designing and acquiring the C4ISR equipment associated with NCW.30
Total Size Of Force. Some observers believe that the Administration’s
transformation plan calls for a force that is too small to meet the various demands
being placed on it, and that the size of the force, and particularly the Army, needs to
be increased to reduce the strain being placed on individual soldiers. Several
Members of Congress and other observers have expressed support for increasing the
size of the Army by 30,000 or more soldiers, and for increasing the size of the Air
Force and Marine Corps as well.
Until late-January 2004, DOD and supporters of the Administration’s
transformation plan argued that the current high level of demands being placed on
U.S. forces is transitory, that transformation (including changes in technology and
organization) will permit some missions to be performed with fewer troops that are
required today, and that transformation-related efficiency measures — such as
transferring to civilian workers tens of thousands of non-combat jobs now being
performed by uniformed personnel — will enable U.S. forces to meet those demands
without need for additional troops. In January 2004, however, DOD officials
indicated that they were open to the idea of increasing the size of the Army by 30,000
29 See, for example, David Hughes, “New Orthodoxy’ Under Fire,” Aviation Week & Space
Technology, Sept. 29, 2003, p. 57; Nick Jonson, “Exec: DOD Should Re-Examine Net-
Centric Assumptions,” Aerospace Daily, Nov. 21, 2003; David A. Fulghum and Douglas
Barrie, “Cracks In The Net,” Aviation Week & Space Technology, June 30, 2003, p. 52;
David A. Fulghum, “Embracing The Foe,” Aviation Week & Space Technology, June 30,
2003, p. 54; Loren B. Thompson, “The Hidden Dangers Of Networked Warfare,” Lexington
Institute, Issue Brief, June 17, 2003; Michael Schrage, Perfect Information and Perverse
Incentives: Costs and Consequences of Transformation and Transparency, MIT Center for
International Studies, Security Studies Program, SSP Working Paper, May 2003; Milan
Vego, “Net-Centric Is Not Decisive, U.S. Naval Institute Proceedings, Jan. 2003, pp. 52-57;
Loren B. Thompson, “The Limits Of Transformation,” Defense Week, Apr. 22, 2002, p. 1;
Thomas P. M. Barnett, “The Seven Deadly Sins of Network-Centric Warfare,” U.S. Naval
Institute Proceedings, Jan. 1999, pp. 36-39.
30 For more on the debate on NCW, see CRS Report RL32411, Network Centric Warfare:
Background and Oversight Issues for Congress, by Clay Wilson.

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for a period of as much as four or five years.31 For further discussion of this issue,
see CRS Report RS21754.32
Air Power vs. Ground Forces. In a related debate, some observers argue
that the Administration’s transformation plan places too much emphasis on air power
and not enough emphasis on ground forces. They believe the Administration, at least
initially, was interested in reducing the size of the active-duty Army by about two
divisions (i.e., to 8 divisions from 10) as part of its transformation plans. These
observers objected to this idea, arguing that it reflected an overestimation of the
ability of air power to accomplish certain missions in the absence of supporting
ground forces, a correspondingly inadequate appreciation for the value of large
numbers of ground troops for accomplishing certain missions (such as occupying
territory and conducting post-war stability operations), and an inadequate
appreciation of the high operational tempo being maintained by the Army. They
argue that not all future wars will be amenable to campaigns built primarily around
air power, and that the Administration’s planned emphasis on air power could make
U.S. operations vulnerable to failure should adversaries find a way to counter the
targeting systems on which air-delivered weapons rely.33 They also argue that skilled
infantrymen are important for countering certain asymmetric challenges, such as
insurgencies, and that reductions in infantry forces consequently should not be used
to finance the procurement of aircraft and air-delivered weapons.
Supporters of the Administration’s transformation plans argue that the
Administration’s transformation plan fully recognizes the value of ground forces for
certain operations, that the Army’s plan to reorganize itself into a force built around
brigade-sized units will increase the number of deployable units for meeting
worldwide demands, and that transformation aims at exploiting NCW and precision
weapons to achieve efficiencies where possible in the numbers of deployed ground
troops needed to conduct certain operations. Supporters of the Administration’s plan
argue that it aims at producing military forces with a wide array of capabilities, of
which attacking targets with air-delivered precision-guided weapons is only one,
precisely so that the United States will be able to fight various kinds of conflicts in
the future. Supporters also argue that operations in Afghanistan and Iraq show the
ability of ground forces to rely on air power when the two are effectively integrated.
31 See, for example, Donald H. Rumsfeld, “New Model Army,” Wall Street Journal, Feb.
3, 2004; Joseph C. Anselmo, “Pentagon Plans for Bigger, Better Army With ‘Spike,’”
Congressional Quarterly Weekly, Jan. 31, 2004, p. 270; Vernon Loeb, “Army Expansion
Could Last 5 Years,” Washington Post, Jan. 30, 2004, p. 19; Bradley Graham, “30,000
More Soldiers Approved By Rumsfeld,” Washington Post, Jan. 29, 2004, p. 1.
32 CRS Report RS21754, Military Forces: What is the Appropriate Size for the United
States? by Edward F. Bruner.
33 See, for example, Tom Donnelly and Vance Serchuk, “Preparing To Fight The Next War,”
Weekly Standard, Dec. 1, 2003; Frederick W. Kagan, “The Art of War,” New Criterion,
Nov. 2003 and Mackubin Thomas Owens, “Transforming Transformation,”
NationalReviewOnline, April 23, 2003, [http://www.nationalreview.com
/owens/owens042303.asp]; Thomas Owens Mackubin, “Reshaping Tilted Against The
Army?,” Washington Times, Nov. 24, 2002, p. B3.

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Heavy vs. Medium-Weight Army Forces.
Somewhat independent of the
debate over the balance of air power and ground forces, some observers have
objected to the Administration’s plan to reorganize the Army into modular, brigade-
sized Units of Action (UA) because the plan would de-emphasize heavily-armored
UAs built around M1 tanks and M2 Bradley Fighting Vehicles in favor of newly
created, more mobile “medium-weight” UAs built around the Stryker wheeled
combat vehicle. They have argued that medium-weight units will be less lethal and
less survivable than heavy formations, and that the greater mobility of these forces
will simply permit them to be more easily deployed into situations where they will
be defeated by enemy forces.
Supporters of the Administration’s transformation plans argue that heavily
armored units, though survivable and lethal, are not very mobile, and therefore are
of little or no value in situations requiring the rapid deployment of meaningful
ground combat capability. The planned medium-weight units, they argue, will
exploit superior battlespace awareness to help achieve sufficient survivability, and
will employ new weapon technologies to achieve sufficient lethality.34
Tactical Aircraft vs. UAVs/UCAVs And Long-Range Bombers. Some
observers argue that the Administration’s transformation plan places too much
emphasis on shorter-ranged tactical aircraft — the Air Force F/A-22 Raptor, the Navy
F/A-18E/F Super Hornet, and the multiservice F-35 Joint Strike Fighter (JSF) — and
not enough emphasis on unmanned air vehicles (UAVs), unmanned combat air
vehicles (or UCAVs, which are UAVs armed with weapons), and long-range
bombers. The Administration’s plan — which proposes acquiring thousands of new
tactical aircraft while envisaging relatively small numbers of UAVs and UCAVs and
maintaining a relatively small bomber force — is inappropriate given uncertain future
access to in-theater land bases needed for tactical aircraft (as demonstrated in
Afghanistan), the capabilities of UAVs and UCAVs (as demonstrated in Afghanistan
and Iraq), the age of the bomber force, the ability of bombers to operate without
access to in-theater bases, and the ability of bombers to deliver large numbers of
precision-guided weapons in a single sortie.
The Administration has generally argued that its proposed numbers of new
tactical aircraft are needed to preserve conventional U.S. military superiority (even
when supplemented by UAVs and UCAVs), that UAVs and UCAVs will eventually
be procured in significant numbers, and that the current bomber force, though aging,
is quite capable (as demonstrated in Afghanistan and Iraq) and will continue to be
sufficient, with routine maintenance and modernization, for many years, in part
precisely because each plane can carry so many precision-guided weapons.35
34 The deployment to Iraq of units equipped with the Stryker vehicle may provide a test case
for arguments concerning the merits of medium-weight forces. Strykers deployed to Iraq
were fitted with add-on armor to defeat rocket-propelled grenades being used by insurgent
forces.
35 For general discussion on the tradeoff between tactical aircraft, UAVs/UCAVs, and long-
range bombers, see CRS Report RL31872, Unmanned Aerial Vehicles: Background and
Issues for Congress, and CRS Report RL31544, Long-Range Bombers: Background and
(continued...)

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Special Operations Forces. Some observers, while acknowledging the
effectiveness of special operations forces in Afghanistan and Iraq, and in counter-
terrorism operations elsewhere, are concerned that the Administration’s plan places
too much emphasis on special operations forces as a perceived potential solution to
a wide array of security problems. This, they argue, could lead to the use of special
operations forces for addressing security problems that might be better addressed
through other measures; to the overuse of special operations forces, which could
fatigue them and prevent them from conducting adequate training; or to under-
investment in alternative approaches for addressing certain security problems. The
current high operational tempo of special operations forces, they argue, can be
viewed as evidence that they are now being overused.
Supporters of the Administration’s plan, while acknowledging that special
operations forces are currently heavily committed around the world, argue that the
Administration’s planned expansion of special operations forces will eventually
permit a reduction in operational tempo for individual units. They also argue that,
prior to Afghanistan and Iraq, the capabilities of special operations forces, and their
cost-effectiveness in terms of achieving disproportionately large effects on the
conventional battlefield and in counterterrorism operations, was underappreciated.
Current concerns about an excessive reliance on special operations forces, they argue,
are simply reflections of this older and now outdated view.36
Forces for Stability Operations. Some observers, particularly since the
onset of the U.S.-led stability operation in Iraq, have argued that the Administration’s
transformation plan pays too little attention to the demands that stability operations
place on the military. Some of these observers have argued in favor of altering the
Administration’s plan to include the creation of units that are organized and trained
specifically for conducting such operations. Other observers, while not advocating
the creation of dedicated forces for stability operations, have argued in favor of
giving U.S. combat forces more training in such operations, so that they can more
easily shift into such operations when required. Administration officials have
responded by indicating that they are examining various options for improving the
ability of U.S. forces to conduct stability operations.37
Reserve Forces. DOD officials, as part of their more recent thinking on
transformation, have mentioned the idea of transferring to active-duty forces parts of
certain functions that are now carried out by reserve forces. Supporters of this idea
argue that this will permit DOD to deploy forces overseas for contingency operations
with less disruption to the daily life of communities around the country where
reservists live and work.
35 (...continued)
Issues for Congress, both by Christopher Bolkcom.
36 For more on special operations forces, see CRS Report RS21048, U.S. Special Operations
Forces (SOF): Background and Issues for Congress, by Andrew Feickert.
37 For more discussion on forces for stability operations, see CRS Issue Brief IB94040,
Peacekeeping and Related Stability Operations: Issues of U.S. Military Involvement, by
Nina M. Serafino and CRS Report RL32321, Policing in Peacekeeping and Related
Stability Operations: Problems and Proposed Solutions, by Nina M. Serafino.

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Opponents argue that the current division of functions between the active and
reserve forces, which dates to the years immediately following the Vietnam war, was
designed precisely so that large-scale commitments of U.S. forces overseas would
require the activation of significant numbers of reserve personnel. Shifting to the
active forces functions now carried out by reserve units, these opponents argue,
would undermine this arrangement, which is intended to encourage people in affected
communities to contact their representatives in Congress and thereby help ensure that
elected officials in Washington consider such commitments carefully before
approving them.38
Missile Defense. Some observers criticize the Administration’s
transformation plan for placing too much emphasis on missile defense programs at
the expense of other defense-spending priorities. They argue that the Administration
has overstated the urgency of the ballistic missile threat at the expense of other
potential threats, such as cruise missiles, that the Administration is rushing to deploy
missile defenses without first adequately testing them, and that the Administration
is wasting limited resources by unnecessarily rushing to deploy systems with limited
capabilities that will soon be replaced by more capable versions.
Supporters of the Administration’s plan argue that the Administration has
correctly assessed the urgency of the ballistic missile threat, that adequate attention
is being paid to other potential threats such as cruise missiles, that testing of missile
defense systems will continue while early versions are fielded, and that the early
versions fielded will have some capability to stop enemy ballistic missiles and will
consequently help deter other countries from launching ballistic missile attacks by
complicating their calculations regarding the potential for such attacks to succeed.39
Effects-based Operations. Some observers, while acknowledging the
potential value of effects-based operations, argue that the concept is currently not that
well defined, and that until it is better defined and its potential value consequently
better understood, it should not be featured as a key element in the Administration’s
transformation plan. Other observers argue that the Administration’s emphasis on
effects-based operations overlooks the potential advantages of attrition-style warfare.
Attrition warfare, they argue, leads to the assured destruction of enemy military
forces in the field, while effects-based operations, by bypassing certain enemy forces,
can permit those forces to blend back into the population at large and prepare for a
post-war insurgency campaign that U.S. forces might find more difficult and costly
to counter. They further argue that effects-based operations may bring about the
collapse of an enemy regime so quickly, and with so little effect on the country’s
population at large, that the population may not feel that it has been subdued or
defeated, possibly making them defiant and more willing to support such an
insurgency.40
38 See, for example, Janine Davidson, “A Citizen Check On War,” Washington Post, Nov.
16, 2003, p. B7.
39 For more on missile defense, see CRS Report RL31111, Missile Defense: The Current
Debate, coordinated by Steven A. Hildreth.
40 See, for example, “Collateral Damage,” Aviation Week & Space Technology, Jan. 26,
(continued...)

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Supporters of the Administration’s plan argue that the concept of effects-based
operations is well on its way to being defined, that it is undergoing further intensive
development at U.S. Joint Forces Command and elsewhere, and that the value of
effects-based operations has already been demonstrated in Kosovo, Afghanistan, and
Iraq. They also argue that the potential consequences of attrition warfare (including
those caused by large numbers of civilian deaths and large amounts of damage to
non-military buildings and infrastructure) have become politically untenable, and that
no attrition-style campaign could be so complete as to prevent the subsequent
emergence of an insurgency conducted by a relatively small number of opponents
who survived the period of major combat. Supporters of the Administration’s plan
can argue that even if effects-based operations might make post-conflict stability
operations more challenging, this is not an argument against using effects-based
operations to fight conflicts, but rather an argument for having better capabilities for
conducting post-conflict stability operations.
Asymmetric Threats. Some observers are concerned that the
Administration’s transformation plan, by increasing current U.S. capabilities for
conventional warfare, could paradoxically produce undesired results by encouraging
potential adversaries to abandon conventional military competition — an area where
the United States can compete effectively — and put more of their energies into
developing asymmetric responses that will be more difficult for the United States to
counter, such as terrorism, nuclear weapons, and cyberwar attacks against civilian
computer systems important to the functioning of the U.S. and world economy.41
Rather than working to discourage potential adversaries from competing against the
United States in conventional capability, they argue, the United States should seek
to maintain conventional forces that are superior to those of potential adversaries, but
40 (...continued)
2004, p. 21; “The Message,” Defense Daily, Jan. 26, 2004; and James Kitfield, “ About-
Face,” National Journal, Jan. 31, 2004, which states that “... relatively little analysis has
been conducted of the difficult aftermath in Iraq and whether the war-fighting model
actually contributed to many of the post-conflict difficulties.” The article states at a later
point that
a recent study by the National Defense University strongly suggests that the
Pentagon’s new war-fighting model fails to adequately take into account the
manpower-intensive work of cleaning up in the aftermath of regime-changing
wars. “Successes in Afghanistan and Iraq demonstrate that the new war-fighting
model is very successful in the first, high-intensity phase of conflict, but there are
unintended consequences,” said Hans Binnendijk, director of the university’s
Center for Technology and National Security Policy, which helped to produce
the report. “In both instances, we deployed relatively small forces very rapidly,
and they won quickly and in very dominant fashion with minimal collateral
damage. The result is, you end up in theater with far fewer troops than in
traditional wars, [and with] an enemy that is defeated but not exhausted. And
suddenly you are in a postwar period without adequate forces or planning for the
next phase of nation building.”
41 For more on cyberwar attacks, see CRS Report RL32114, Computer Attack and Cyber
Terrorism: Vulnerabilities and Policy Issues for Congress, by Clay Wilson.

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not so superior that they drive potential adversaries away from spending resources
on conventional competition.
Other observers, conversely, are concerned that the Administration’s
transformation plan places too much emphasis on countering asymmetric threats such
as terrorism, and not enough emphasis on preparing for future conventional military
challenges 10 or 20 years from now from a potential major regional peer competitor,
such as China.
Supporters of the Administration’s plan could argue that potential adversaries
are already pursuing asymmetric responses to U.S. military capabilities. Increasing
the current U.S. superiority in conventional warfare, they could argue, will not
change this, but it will permit U.S. forces to conduct successful conventional
operations more quickly, with fewer lives lost, and at lower cost. Supporters also
argue that the Administration’s transformation plan pays adequate planning attention
to the possibility of a conventional military challenge 10 or 20 years from now from
a major regional peer competitor such as China.
Afghanistan And Iraq War As Test Cases. Since the merits of the
Administration’s proposed direction of change under its transformation plan are the
subject of debate, many observers have focused on recent U.S. military operations
in Afghanistan and Iraq as potential test cases for validating or disproving various
aspects of that plan. Operations in Afghanistan were viewed by many observers as
highlighting the potential capabilities of special operations forces, particularly when
operating in conjunction with aircraft armed with precision-guided weapons, and of
UAVs and UCAVs. Operations in Iraq have been debated in terms of whether they
validate the Administration’s overall transformation vision, and in terms of specific
issue areas such as NCW, Army forces, and special operations forces. For extended
discussions on these topics, see CRS Report RL31946, Iraq War: Defense Program
Implications for Congress.42
Proposed Strategy For Implementing Transformation. Is the
Administration’s plan for transformation appropriate in terms of its proposed
implementation strategy? Potential areas of discussion on this issue include those
presented below.
Overall Leadership and Management of Transformation. A December
2004 report from the Government Accountability Office on DOD’s transformation
efforts states:
DOD has taken positive steps to design and implement a complex strategy
to transform U.S. military capabilities, but it has not established clear leadership
and accountability or fully adopted results-oriented management tools to help
guide and successfully implement this approach. The responsibility for
transforming military capabilities is currently spread among various DOD
organizations, with no one person or entity having the overarching and ongoing
leadership responsibilities or the accountability for achieving transformation
42 CRS Report RL31946, Iraq War: Defense Program Implications for Congress,
coordinated by Ronald O’Rourke.

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CRS-25
results. In addition, although DOD established an informal crosscutting group
that meets occasionally to discuss transformation issues, this group has no
charter, formal responsibilities, or authority to direct changes. GAO has
previously reported that key practices for successful transformation include
leadership that sets the direction of transformation and assigns accountability for
results, and the use of crosscutting implementation teams, which can provide the
day-to-day management needed for success. In recent testimony on DOD’s
business transformation, we underscored the importance of these elements and
stated that DOD has not routinely assigned accountability for performance to
specific organizations or individuals who have sufficient authority to accomplish
goals. DOD officials believe that a single organization accountable for
transformation results and a formal implementation team are not necessary
because existing informal mechanisms involve key organizations that can
individually implement needed changes, and an annual assessment of
transformation roadmaps is prepared for the Secretary of Defense, who can direct
the transformation efforts of each organization. However, in the absence of clear
leadership, accountability, and a formal implementation mechanism, DOD may
have difficulty resolving differences among competing priorities, directing
resources to the highest priorities, and ensuring progress should changes in
senior personnel occur. In addition, informal mechanisms are not sufficient to
provide transparency to the process or assurance to Congress that DOD is
allocating resources to address needed improvements rather than desired
improvements.
While DOD’s strategy to transform military capabilities is a good first step,
DOD has not fully developed results-oriented management tools that can help
managers effectively implement and manage major efforts, and focus on
achieving results. Specifically, DOD has not revised its initial transformation
goals, set in 2001, to reflect new joint concepts — thus, DOD lacks a foundation
for developing other tools such as performance goals and measures and linking
specific resources needed to achieve each goal. DOD faces challenges in
developing these tools because the joint concepts are being developed
concurrently with its plans to acquire new capabilities. But without these
results-oriented tools, it will be difficult for DOD to determine the extent to
which its transformation efforts are achieving desired results, to measure its
overall progress, or to provide transparency for how billions of dollars in planned
investments are being applied.43
Funding For Transformation vs. Near-Term Priorities. Some observers
argue that the Administration’s plan for implementing transformation provides too
much funding for longer-term transformation goals and not enough funding for near-
term needs. They have argued, for example, that the Administration’s plan provides
significant funding for development of next-generation Army combat vehicles, but
inadequate funding for modernization of current Army M1 tanks and M2 Bradley
fighting vehicles. They also argue that the Administration has not adequately funded
certain near-term Army readiness needs, such as ceramic body armor, Humvees with
improved armor, and helicopter survivability equipment.
43 U.S. Government Accountability Office. Military Transformation[:] Clear Leadership,
Accountability, and Management Tools Are Needed to Enhance DOD’s Efforts to Transform
Military Capabilities, GAO-05-70, December 2004.

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Other observers argue, conversely, that the Administration’s plan, though
nominally supportive of transformation, provides too much funding for legacy
systems and not enough funding for transformation-related programs. They argue,
for example, that even if one agrees with the relative emphasis in the
Administration’s transformation plan on tactical aircraft vs. UAVs/UCAVs and long-
range bombers, the Administration’s plan includes excessive amounts of funding for
procurement of tactical aircraft while underfunding development of UAVs and
UCAVs.
Supporters of the Administration’s plan argue that it strikes the right balance
between funding for legacy systems vs. transformation-related programs. They can
argue that tactical aircraft like the F/A-22 and the STOVL (short takeoff, vertical
landing) version of the JSF can be considered transformational, and that the
Administration’s plan includes actions aimed at ensuring that all tactical aircraft are
procured in an economical fashion. Spending on UAVs and UCAVs, they argue, will
increase substantially when UAVs and UCAVs now in development emerge from the
development process and start to be procured in larger numbers. Legacy systems,
supporters argue, should be modernized only if not doing so would create
unacceptable operational risks, and that if instances are discovered where inadequate
funding for modernization of legacy equipment creates unacceptable operational
risks, additional funding can be moved into those areas to address the shortfall.
Office of Force Transformation. Potential questions for Congress
regarding the role of OFT in implementing transformation include the following:
! Does OFT have too much, not enough, or about the right amount of
authority, staffing, and funding to carry out its responsibilities in
promoting transformation and overseeing the transformation efforts
of the various services and DOD agencies?44
! What are the potential advantages and disadvantages of giving OFT
authority to allocate larger amounts of funding for use in
transformation-related research, development, and exercises?
! Is OFT exercising too much, not enough, or about the right amount
of control over the content of the transformation road maps
submitted by the individual services and agencies? Are OFT’s
efforts to ensure compatibility and commonality among the service’s
transformation road maps reducing the potential benefits that can
come from allowing service-unique perspectives to be articulated?
! How good a job is OFT doing in explaining and garnering support
for the general concept of transformation, and for specific
transformation ideas?45
44 For an earlier discussion of this issue, see Amy Svitak, “Clear Role Eludes U.S.
Transformation Office,” Defense News, Sept. 23-29, 2002, pp. 22.
45 For discussions of this issue, see Thomas E. Rocks and Josh White, Scope Of Change In
(continued...)

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CRS-27
! To what degree is OFT’s current concept of transformation a product
of the thinking of its current director, retired Navy vice admiral
Arthur Cebrowski, and how might OFT’s approach toward
transformation change when Cebrowski is succeeded by another
person?
! In light of the responsibilities and potential influence of OFT, should
the position of Director of OFT be made a Senate-confirmable
position?
U.S. Joint Forces Command. Potential questions for Congress regarding
the role of USJFCOM in implementing transformation are similar to those above
regarding OFT:
! Does USJFCOM have too much, not enough, or about the right
amount of authority, staffing, and funding to carry out its
responsibilities in developing joint doctrine for transformation and
in managing joint exercises for testing transformation ideas?
! How good a job is USJFCOM doing in developing joint doctrine to
be used by the services in developing compatible transformation
road maps?
! What are the potential advantages and disadvantages of giving
USJFCOM authority to allocate larger amounts of funding not
simply for transformation-related research, development, and
exercises, but for procurement of transformation-related equipment
to be used by operational forces?46
! Is DOD requesting adequate funding for operating and expanding
the Joint National Training Capability (JNTC) that is to be used by
USJFCOM for conducting joint exercises?47
45 (...continued)
Military Is Ambiguous,” Washington Post, August 1, 2004: 6; and Keith J. Costa,
“Cebrowski Cites Progress In Work To Transform The Pentagon,” Inside the Pentagon,
August 5, 2004.
46 The FY2004 defense authorization bill provides authority for USJFCOM to spend up to
$50 million dollars on procurement of equipment for battle management command, control,
communications, and intelligence, or for equipment that facilitates the use of joint forces in
military operations or enhances the interoperability of equipment used by elements of the
joint force. For an article discussing this, see Anne Plummer, “Congress Gives JFCOM
Limited Budget To Develop Joint C2 Systems,” Defense Information & Electronics Report,
Nov. 21, 2003; See also David Hughes, “The Future Of Joint Warfighting,” Aviation Week
& Space Technology, May 26, 2003, p. 76; and Keith J. Costa, “Joint National Training
Capability: The Next Wave In Transformation,” Inside the Pentagon, Feb. 20, 2003, p. 1.
47 Using funds authorized in FY2004, DOD plans to open the JNTC in October 2004. For
FY2005, DOD is requesting $191 million to continue and expand the JNTC in FY2005. For
(continued...)

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CRS-28
! Do USJFCOM’s dual roles as a provider of joint forces and as
DOD’s premier transformation laboratory conflict with one another,
and if so, what are the options for resolving the conflict?
! Are the transformation-related activities of OFT and USJFCOM
sufficiently coordinated?
Transformation “Pots of Money.” As a means of promoting innovation
and the implementation of transformational ideas, some DOD officials and other
observers have occasionally proposed establishing one or more special funds within
the Pentagon budget — special “pots of money” — that would be allocated on a
competitive basis to groups with proposals for furthering transformation.48 Potential
questions for Congress concerning this idea include the following:
! How many such pots of money have been established within the
DOD budget? Where in the DOD budget are they located? How
much funding do they contain, and is this amount too much, not
enough, or about right?
! Who decides how to award the funding, and what criteria are used
to make award decisions? Are projects funded through these pots of
money adequately justified? Is funding being used to promote any
ideas that, if realized, might challenge aspects of current
transformation plans?
! What are the results to date of projects that have been partly or
wholly financed through these pots of money? What alterations
have they prompted in transformation plans?
Experiments And Exercises. Some observers have expressed concern
about whether experiments and exercises carried out nominally in support of
transformation are sufficiently focused on exploring transformational warfighting
ideas as opposed to demonstrating existing non-transformational capabilities.
Observers have also expressed concerned about whether experiments and exercises
are sufficiently challenging and realistic, and whether they are “scripted” to ensure
47 (...continued)
more on the JNTC, see “Joint National Training Capability: The Next Wave In
Transformation,” op cit; Kim Burger, “US Forces To Get More Realistic Joint Exercises,”
Jane’s Defense Weekly, Dec. 11, 2002; Marc Strass, “Giambastiani: Joint National Training
Center Needed For Service Training,” Defense Daily, July 29, 2002, p. 6.
48 See, for example, Elaine M. Grossman, “Rumsfeld Team Wants To Create Own Funding
Pot For ‘Transformation,’” Inside the Pentagon, Mar. 28, 2002, p. 1.

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the success of favored transformation ideas.49 Potential questions for Congress
regarding transformation-related tests and exercises include the following:
! Does the Administration’s plan include too many, not enough, or
about the right amount of transformation-related experiments and
exercises?
! Are these experiments and exercises adequately funded to fulfill
their stated objectives?
! Are they oriented toward examining transformational ideas, or are
they oriented toward demonstrating existing or incrementally
improved capabilities?
! Are they sufficiently challenging and realistic? Do they allow for
failures from which lessons can be learned, or are they scripted to
ensure the success of transformation ideas that are already believed
to be true?
! How, if at all, have lessons from these experiments and exercises to
date affected DOD’s transformation plan?
Metrics for Transformation. Advocates of transformation argue that new
metrics (i.e., methods of measurement or measures of effectiveness) will be needed
to accurately measure the capabilities of transformed military forces and the
effectiveness of transformational military systems, organizational changes, and
concepts of operation. Traditional methods for measuring military power, such as
49 Some observers, for example, expressed concern that USJFCOM’s large Millennium
Challenge 2002 exercise may have been scripted to ensure the success of favored DOD
transformation ideas. See Richard Hart Sinnreich, “Cooking The Books Won’t Help The
Military Transform,” Lawton (OK) Constitution, Aug. 18, 2002, p. 4; Dale Eisman,
“Pentagon Leaders Defend War Game,” Norfolk Virginian-Pilot, Aug. 21, 2002; Michael
Gilbert, “General: Stryker Unit’s Performance Not At Issue,” Tacoma New Tribune, Aug.
22, 2002; Dennis O’Brien, “Controversial War Game Improved Warriors,” Norfolk
Virginian-Pilot, Aug. 23, 2002; Sean D. Naylor, “Fixed War Game?,” Army Times, Aug. 26,
2002, p. 8; Jason Ma, “In Simulation, Navy Suffers Heavy Losses, Including Aircraft
Carrier,” Inside the Navy, Aug. 26, 2002: 1; Mackubin Thomas Owens, “Let’s Not Rig Our
War Games,” Wall Street Journal, Aug. 29, 2002; William F. Kernan, “Joint War Games,”
Army Times, Sept. 16, 2002, p. 52 (letter to the editor); Bradley Graham, “Criticism Of War
Game Rejected,” Washington Post, Sept. 18, 2002, p. 27; Elaine M. Grossman, “Generals
Take Stock Of U.S. Vulnerability To Common Technologies, “Inside the Pentagon, Sept.
19, 2002; Michael Schrage, “Military Overkill Defeats Virtual War,” Washington Post,
Sept. 22, 2002, p. B5; Lionel Van Deerlin, “Taking Their Warships And Going Home,” San
Diego Union-Tribune, Nov. 6, 2002; and Jeff Huber, “Invasion of the Transformers,” U.S.
Naval Institute Proceedings, Oct. 2003, pp. 74-76, particularly the section entitled “New
Dogs, Old Tricks.”
See also Loren B. Thompson, “Revolution Gone Awry[:] How Transformation May
Undermine Military Preparedness,” Remarks Before the Council on Foreign Relations
Security Roundtable, Nov. 18, 2002 and Keith J. Costa, “Konetzni: Transformation In Need
Of ‘Solid Intellectual Analysis,’” Inside the Pentagon, May 22, 2003.

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the total number of divisions, air wings, and ships, they argue, will need to be
replaced by more sophisticated measures that take into account not only the raw
numbers of platforms or units in a military force, but also the effect of NCW, EBO,
and other new technologies and ideas in increasing the overall effectiveness of a
force that includes a certain number of such platforms. Similarly, they argue that in
assessing the effectiveness of proposed transformational weapon systems, traditional
performance measures, such as platform speed and range, will need to be
supplemented or replaced by new measures that take into account factors such as the
system’s ability to operate in a network environment so as to contribute to, and take
advantage of, targeting and other information distributed over the network. Potential
questions for Congress include the following:
! To what degree has DOD developed new metrics for measuring the
capabilities of transformed military forces and the effectiveness of
transformational military systems? To what degree is DOD using
these new metrics in making decisions about programs and
resources? When will the process of developing and applying new
metrics be complete?
! Who is involved in developing the new metrics, and what process is
being used to develop them?
! Are DOD’s emerging new metrics unduly biased against legacy
forces? Are they unduly biased in favor of its own transformation
proposals vs. transformation proposals offered by others?
Independent Analysis. Some observers have expressed concern that there
has been relatively little formal analysis or review by specialists independent of DOD
of the merits of the Administration’s proposals for transformation. One article, for
example, states:
There’s at least one potential drawback to all of this “transformation”: It has been
subjected to remarkably little outside scrutiny or independent analysis....
Indeed, without rigorous congressional oversight or a thorough analysis of the
risks-versus-rewards trade-offs of transformation, experts worry that the rapid
and profound changes now under way could lead to unpleasant and unintended
surprises. As Pentagon officials have rewritten U.S. strategic war plans, they
have touted the success of the three-week Iraqi Freedom campaign. But relatively
little analysis has been conducted of the difficult aftermath in Iraq and whether
the war-fighting model actually contributed to many of the post-conflict
difficulties. Many military experts also caution that the Iraqi army was too weak
an opponent on which to base such fundamental reforms....
Even some transformation advocates question whether Rumsfeld’s plans have
enough checks and balances in place. The transformation umbrella is casting an
ever-greater shadow over a growing host of initiatives, for instance, that have not
seen the light of independent scrutiny. “Without independent analysis, we may
never know the true lessons of the Iraq war,” Krepinevich said. Clear troubles
that arose with that campaign, such as problems with logistics and supply, have

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not been studied adequately, he says. “Basically, the Pentagon and U.S. military
are grading their own homework.”50
50 James Kitfield, “About-Face,” National Journal, Jan. 31, 2004. Another analyst has
stated that
the Bush Administration is in too much of a hurry to wait for the results of
empirical inquiry, and is making bets largely on the basis of bias. Once we
depart from rigorous standards of analysis, we begin to subvert the process that
made transformation possible in the first place.
( Loren B. Thompson, “Revolution Gone Awry[:] How “Transformation May
Undermine Military Preparedness,” Remarks Before the Council on Foreign
Relations Security Roundtable, Nov. 18, 2002.)
An article discussing the Millennium Challenge 2002 exercise states:
The future effectiveness of such simulations will also depend on more
independent review of the experiments being run. The same Joint Forces
Command that designed Millennium Challenge 2002 gets to analyze its
effectiveness. That’s an intolerable conflict. Qualified civilians and retired
officers of all ranks should instead be brought in as “independent directors” to
help define the distinction between experiments designed to validate concepts
and games designed to generate victors on virtual battlefields. The surest way to
make the next Millennium Challenge more valuable would be to have more Van
Ripers assess these games as well as play them.
(Michael Schrage, “Military Overkill Defeats Virtual War,” Washington Post,
Sept. 22, 2002, p. B5.)
Another article reported:
Technology innovation should not be pursued for its own sake in the name of
defense transformation, according to Vice Adm. Albert Konetzni, the deputy
commander and chief of staff for the Atlantic Fleet. Rather, decisions on how to
harness the nation’s capacity for innovation should be based on “solid
intellectual underpinnings,” to include mathematical analysis, and
experimentation, he said May 13 at a conference here.
“I feel very strongly that we have lost our bearings when it comes to
transformation because most of the talk is not backed up by solid intellectual
analysis,” states the admiral’s prepared speech for event, sponsored by the
Association for Communications, Electronics, Intelligence and Information
Systems Professionals. Konetzni also blasted technology development and
experimentation across the Navy, singling out four programs for criticism: the
Joint Fires Network, Navy-Marine Corps Intranet, mine warfare efforts and the
Battle Force Tactical Training (BFFT) system.
“We have a great country, capable of awesome innovation, but military
innovation pursued without solid intellectual underpinnings, without a clear
vision of how it fits into the overall construct, and without discipline, can lead
you down the wrong road,” Konetzni said. “At best, it will be wasteful of [the]
nation’s resources. At worst, it can be disastrous for our men and [women] in
combat.”
(continued...)

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Centralization And Decentralization. A key issue in innovation-related
topics like transformation are the potential advantages and disadvantages of
organizational centralization and decentralization in generating and implementing
innovative ideas, particularly those that involve potentially disruptive change.
Advocates of centralization in DOD’s transformation effort could argue that if
transformation planning and implementation is too decentralized, it can become
confused and unfocused, or too expensive to implement due to an excess of ideas to
pursue, or that competing interest groups within DOD could take advantage of the
situation to stifle the implementation of promising ideas they find threatening to their
own situations.
Advocates of decentralization could argue that if transformation planning and
implementation is centralized in the hands of too small a number of key individuals,
it could reflect only the personal transformation preferences of those individuals,
regardless of their potential value, that promising transformation ideas from others
could be dismissed without proper evaluation (particularly if they compete with
transformation ideas supported by those key individuals), and that major
transformation goals could shift abruptly as those key individuals are succeeded by
others.51
50 (...continued)
To illustrate this point, the admiral discussed the rapid development of the
Monitor, a Union ironclad ship employed during the Civil War. The Monitor,
which fought the Virginia, a Southern ironclad, to a draw, was “clearly the most
innovative ship of her day,” Konetzni said. Still, the Monitor had its flaws — in
particular, inadequate pumps to keep out seawater — because its design and
construction were rushed.
The country’s experience with the Monitor should teach those pushing new
technology today that they need to take a disciplined approach, according to the
admiral.
Unfortunately, service officials in recent times “have largely abandoned
operations analysis,” Konetzni said. “Without looking clearly at the mission and
rigorously analyzing the potential of new tactics and technologies to improve
warfighting, we just get PowerPoint solutions,” he said, adding, “I just can’t take
seeing another slide with red, yellow, and green blocks for effectiveness with
nothing mathematical behind them.”
A better path would be one in which proposals for innovation are studied
analytically and developed with a “complete plan” — including concept of
operations, training and maintenance — “before we throw these things on our
ships,” he said.
(Keith J. Costa, “Konetzni: Transformation In Need Of ‘Solid Intellectual
Analysis,’” Inside the Pentagon, May 22, 2003.)
51 See, for example, Loren Thompson, “Transformation, Or Ideology?” Defense News, Sept.
23-29, 2002, p. 15, in which the author writes that
it is unsettling to see policy-makers with limited technical credentials making
(continued...)

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Potential questions for Congress regarding centralization and decentralization
in transformation planning include the following:
! What are the potential advantages and disadvantages of
centralization and decentralization in transformation planning?
! Is the Administration’s process of transformation planning too
centralized among a few key personnel in OSD, not centralized
enough, or about right in terms of the number of people who have
key roles?
Culture Of Innovation. DOD officials and other observers note that instilling
a culture of innovation among DOD personnel will be critical to implementing
transformation. Instilling such a culture could involve things such as actions to
create an institutional and workplace receptiveness to new ideas, procedures for
protecting people who generate new ideas, and avoidance of the so-called “zero-
defect” approach for assessing performance and selecting people for advancement.52
Potential challenges to creating a culture of innovation include a widespread
familiarity and comfort with the status quo, the so-called “not-invented-here”
51 (...continued)
such bold claims for the transformative power of emerging technology. At its
inception during Clinton’s first term, transformation was a relatively modest
initiative pushed by policy-makers with impressive scientific credentials. Now
it is an all-embracing concept pushed by people with a much weaker grasp of
relevant technologies.
In other words, transformation has become an ideology.
Third, the internal Pentagon processes shaping transformation exclude many of
the players with a stake in the outcome, including those with the greatest
operational and technological expertise. Complaints from senior military officers
about the practical consequences of decisions frequently are dismissed, and even
participants in the secretive inner circle risk being ostracized if they don’t show
proper fealty to the new paradigm.
Fourth, because key choices are being made in isolation from the organizations
that will implement them, there is little likelihood they will survive beyond the
tenure of Defense Secretary Donald Rumsfeld. This top-down approach
compounds the mismatch between political rhythms and development cycles,
resulting in promising programs being killed just as they approach fruition.
Former Navy Secretary John Lehman had adopted such an approach. The rapid
purging of proteges and ideas once he left the Pentagon should be a lesson for
those who think they can dictate outcomes without eliciting the buy-in of
stakeholders.
52 Under the “zero-defect” approach, only applicants who have made zero mistakes are
selected for promotion, while applicants who have one or more mistakes on their record are
ruled out for promotion. Critics of this approach argue that people who have made no
mistakes in their careers are also likely to have never tried to accomplish anything that, if
successful, would have qualified as a useful innovation.

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syndrome,53 a cadre of senior officers who were taught, and have spent their entire
careers abiding by, traditional ideas and practices, and the difficulty of quantifying
or explaining the potential advantages of proposed innovations.
A recent survey of more than 2,500 U.S. military officers provided mixed
evidence on whether those officers believe such a culture is being created.54
53 This refers to an inclination to not be interested in ideas that come from outside one’s own
organization.
54 Thomas G. Mahnken and James R. FitzSimonds, The Limits of Transformation: Officer
Attitudes Toward the Revolution in Military Affairs, Newport Paper #17, (Newport: Naval
War College, 2003).
A press report about the survey stated:
Changing the military is key to winning tomorrow’s wars, but a majority of
officers aren’t sure the Pentagon is on the right track to transforming itself,
according to a new survey.
And while most Marine and Air Force officers believe their services reward
innovation, a minority of Navy and Army officers feel the same way, according
to the poll, conducted in 2002 and released this month by two independent
researchers.
Likewise, 75 percent of Marine officers polled believe their service culture is
open to self-criticism, while fewer than 50 percent of Army, Navy and Air Force
officers agree that their services encourage critical discourse.
“It seems to me that most officers have not encountered innovation in their
careers, but there are significant service differences,” said Thomas G. Mahnken,
acting director of the Strategic Studies Program at Johns Hopkins University in
Washington. “The Marines clearly see their service as more accepting of
innovation than other services.”
Mahnken and James R. Fitz-Simonds, a professor at the Naval War College in
Newport, R.I., polled a total of more than 2,500 officers from the four services
on their views of military transformation and innovation. The officers polled
included junior, midgrade and flag officers attending 16 professional military
education institutions such as Naval Postgraduate School, the Marine Corps
Command and Staff College, or the Army or Air War colleges....
While 75 percent of Marine officers felt the Corps is open to self-criticism, only
39 percent of Navy officers felt the same way about their service. About 48
percent of both Army and Air Force officers agreed. Also, about 58 percent of
the Marine officers surveyed said their service rewarded innovation, whereas
only 28 percent of Navy officers said the same of their service. About 58 percent
of Air Force officers believe their service rewards innovation, but only 34
percent of Army officers say the same.
(Gordon Lubold, “Survey Shows Many Officers Skeptical Of Transformation,”
Marine Corps Times, Nov. 24, 2003, p. 22.) See also Thomas E. Ricks, “A Test
Case For Bush’s Military Reform Pledge?” Washington Post, Feb. 20, 2002,
p. 13.

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Potential questions for Congress include the following:
! What steps have been taken, or are planned, to promote a culture of
innovation among DOD personnel to support transformation?
! What incentives are in place, or will be in place, to reward the
generation of innovative ideas? What additional incentives are
required?
! What actions have been taken, or will be taken, to ensure that
personnel who propose innovative ideas will not be penalized when
those ideas are rejected or are disproved in experiments and
exercises?
! What provisions does the Administration’s approach to
transformation have for maintaining and protecting in-house
contrarian thinkers — what might be called “members of the loyal
opposition” — whose transformation ideas, though rejected or
disproved in experiments and exercises, might one day, under
different circumstances, prove useful?
! What changes, if any, to officer education and officer career paths
are needed to promote a culture of innovation? How many of these
changes have been made? Of those that haven’t, how many would
require legislation to implement?
! What evidence is there that a culture of innovation is taking root?
In what ways has the Administration’s transformation plan been
altered by innovative ideas generated by officers who are not in
offices, such as OFT, that are directly responsible for guiding or
administering transformation efforts?55
Potential Implications for Congressional Oversight of DOD
A third potential issue for Congress concerns the implications of defense
transformation for congressional oversight of DOD activities. Potential areas of
focus include organizational issues, sufficiency of information and metrics for
assessment, oversight of weapons acquisition, the Administration’s use of the
concept of transformation in justifying its proposals to Congress, and potential
Congressional initiatives on transformation.
Committee Organization. The concept of transformation can lead to new
ways of examining defense issues. It can, for example, lead to a greater focus on
examining issues from a joint rather than service-specific perspective, a greater focus
on asymmetric as opposed to conventional military threats, or a greater focus on
55 For additional discussion, see Johnson, Edgar M. Workshop Introducing Innovation and
Risk: Implications of Transforming the Culture of DoD. Washington, 2004, 35 pp.
(Institute for Defense Analyses, March 2004)

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networks, sensors, and C4ISR equipment rather than individual military platforms
such as aircraft, ships, and ground vehicles.
The defense oversight committees in recent years have responded to this
situation by making certain changes in organization and activities. The Senate
Armed Services Committee, for example, created a new subcommittee on emerging
threats and capabilities, while the House Armed Services Committee created a new
subcommittee on terrorism, unconventional threats and capabilities. The committees
have shifted staff assignments and hired new staff to increase their ability to conduct
oversight of transformation-related topics such as C4ISR programs. And the
committees have held a number of hearings on transformation and transformation-
related topics. A potential question for Congress at this point is whether any further
organizational changes are needed to improve the ability of the defense-oversight
committees to incorporate the concept of transformation into congressional oversight
of DOD activities.
Adequacy of Information and Metrics for Assessment.
Transformation is a broad topic with many elements subject to frequent change and
development. In addition, measuring progress in attaining transformation can be a
complex undertaking. Transformation thus raises a potential issue as to whether
Congress has adequate information and tools for assessing DOD’s progress in
implementing transformation. Potential questions for Congress on this issue include
the following:
! Are the defense budget and related budget-justification documents
that are submitted to Congress adequately organized and presented
to support the incorporation of the concept of transformation into
Congress’ review of the budget? If not, in what ways should the
organization and content of the budget and the budget-justification
documents be changed?
! Does DOD provide Congress with sufficiently detailed and periodic
information about the status of DOD transformation efforts to
support congressional oversight of these efforts? Should Congress,
for example, require DOD to submit periodic reports on the status of
transformation in general, or of specific aspects of transformation?
! Does Congress have adequate metrics for measuring military
capability in light of transformation-related changes, such as NCW,
or for assessing DOD’s success in implementing transformation?
Oversight Of Weapons Acquisition. As mentioned earlier, the
administration, as part of its efforts in support of transformation, has revised the
regulations governing the acquisition of new weapons and systems with the aim of
saving money and reducing acquisition cycle time. Key among the changes
implemented by DOD is evolutionary acquisition with spiral development (EA/SD),
which DOD has identified as its new preferred acquisition strategy.
Although the overall goal of EA/SD — to make the acquisition system more
responsive to rapid changes in threats, technology, and warfighter needs — is widely

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supported, as discussed in more detail in CRS Report RS21195, EA/SD poses
potentially significant issues for congressional oversight, particularly for newly
initiated weapon acquisition programs, in three areas:
! Ambiguous initial program description. Programs initiated under
EA/SD may not be well defined at the outset in terms of system
design, quantities to be procured, development and procurement
costs, and program schedule. These are key program characteristics
that Congress in the past has wanted to understand in some detail
before deciding whether to approve the start of a new weapon
acquisition program. EA/SD can thus put Congress in the position
of deciding whether to approve the start of a new a program with
less information than it has had in the past.
! Lack of well-defined benchmarks. A corollary to the above is that
Congress may not, years later, have well-defined initial program
benchmarks against which to measure the performance of the
military service managing the program or the contractor.
! Funding projections potentially more volatile. Although
projections of future funding requirements for weapons acquisition
programs are subject to change for various reasons, funding
projections for EA/SD programs may be subject to even greater
volatility due to each program’s inherent potential for repeated
refinements in performance requirements or technical approaches.
As a result, any long-range projections of future funding
requirements for EA/SD programs may be even less reliable than
projections for systems pursued under the traditional DOD
acquisition approach.
Supporters of EA/SD argue that it can improve congressional oversight of DOD
weapon acquisition programs because the information that DOD provides for a given
program will focus on the specific part of the program that is proposed for
development over the next few years. This information, they argue, will be more
reliable — and thus better for Congress to use in conducting its oversight role — than
the kind of long-range information that used to be provided under the traditional
DOD acquisition approach. Skeptics of EA/SD, however, could argue that it has the
potential for drawing Congress into programs to a point where extrication becomes
difficult if not impossible, and without a clear idea of a program’s ultimate
objectives. Skeptics could also argue that a lack of long-term cost and performance
projections makes it more difficult to assess potential long-term affordability and cost
effectiveness.
Potential questions for Congress and DOD regarding congressional oversight
of EA/SD programs include the following:
! What might be the impact on both congressional approval of new
weapon acquisition programs and subsequent congressional
oversight of those programs, of having limited initial detail in terms

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of system design, quantities to be procured, procurement schedules,
and total costs?
! How might congressional oversight of weapon development
programs be affected if program information with longer time
horizons but potentially less reliability is exchanged for program
information with potentially greater short-term reliability — but
without previously available, if imperfect, estimates of full program
costs?
! To what extent might DOD’s new preference for EA/SD be
influenced, as some critics contend, by the knowledge that it might
relieve DOD of the responsibility for providing specific answers to
congressional questions regarding system architecture, effectiveness,
time lines, long-term strategic implications and cost?
Transformation As All-Purpose Justification Tool. Some observers are
concerned that the Administration’s regular (some might even say habitual) use of
the term transformation in discussing its proposals for DOD has turned the concept
of transformation into an empty slogan or buzz-phrase. Other observers are
concerned that the Administration is invoking the term transformation as an all-
purpose rhetorical tool for justifying its various proposals for DOD, whether they
relate to transformation or not, and for encouraging minimal debate on those
proposals by tying the concept of transformation to the urgent need to fight the war
on terrorism.
Concerns along these lines were heightened by the “Defense Transformation for
the 21st Century Act of 2003,” a 205-page legislative proposal that the Administration
submitted to Congress on April 10, 2003, that would, among other things, permit
DOD to establish its own policies for hiring, firing, and compensating its civil service
employees; change the terms in office for certain senior generals and admirals; give
DOD increased authority to transfer funds between DOD budget accounts; alter laws
relating to the protection of marine mammals; and eliminate many DOD reporting
requirements that were instituted to assist Congress in conducting oversight of DOD
activities.56
Potential oversight questions for Congress relating to the Administration’s use
of transformation in justifying its proposals for DOD include the following:
! Is the Administration debasing the concept of transformation
through overuse?
56 See, for example, John M. Donnelly, “Hill Rebuffing Rumsfeld Plan To Kill Reports To
Congress,” Defense Week Daily Update, May 15, 2003; John Liang, “House Democrats
Object To DoD Transformation Legislation,” InsideDefense.com, May 14, 2003; William
Matthews and Gopal Ratnam, “Transformation Act Draws U.S. Lawmakers’ Fire,”
DefenseNews, May 5, 2003, p. 1; and Lawrence Korb, “Pentagon Independence,”
DefenseNews, June 2, 2003, p. 29.

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! Is the Administration, in justifying its proposals for DOD, drawing
adequate distinctions between proposals that are transformational
and proposals that are not transformational but might nevertheless
be worthwhile for other reasons?
! Is the Administration using the term transformation in part to cloud
potential issues pertaining to its proposals for DOD or to minimize
congressional debate on those proposals?
! Is the Administration using the large, complex, and somewhat
abstract topic of transformation in part to occupy Congress’ attention
and thereby distract Congress from conducting detailed oversight on
DOD’s proposed budgets, or to keep Congress off balance as it
attempts to conduct oversight of DOD activities?
Congressional Transformation Initiatives. In addition to responding to
DOD proposals for transformation, Congress may consider the option of instituting
its transformation initiatives not proposed by DOD. As mentioned in the background
section, Congress in the past has initiated changes that can be viewed as
transformational that were not originally proposed by DOD. Potential questions for
Congress in connection with potential new congressional transformation initiatives
include the following:
! Are there any potentially worthy areas of transformation, or ideas or
proposals for transformation, that DOD has overlooked or paid too
little attention to in its transformation planning?
! Are there any DOD goals for transformation that Congress should
consider expanding or accelerating?
Legislative Activity For FY2005
FY2005 Defense Authorization Bill (H.R. 4200/P.L. 108-375)
House. Section 214 of H.R. 4200 as reported by the House Armed Services
Committee (H.Rept. 108-491 of May 14, 2004) would require funding for research
and development work by USJFCOM to be derived solely from the DOD-wide
research and development account rather than the research and development accounts
of the individual services. Funding for USJFCOM research and development work
is currently programmed in the Navy’s research and development account. In
discussing Section 214, the committee’s report states:
The committee believes that, as the Department’s executive agent for joint
warfighting concept development and experimentation, [USJFCOM’s] budget
for joint warfare experimentation and related programs should be independent
of, and separate from the budgets of the military departments. The committee
also notes that the precedent that has been established by the Department in
maintaining the budgets for the Joint Staff and defense agencies separate from
the budgets of the military departments. The committee also observes that

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maintaining the budget for the joint warfare experimentation and transformation
programs as a part of budget request for the Navy’s science and technology
program tends to create a false impression of funding levels for the latter.
The committee directs the transfer of funding for the Joint Forces
Command joint experimentation, joint warfare experiments and joint warfare
transformation programs from Research, Development, Test, and Evaluation,
Navy to Research, Development, Test, and Evaluation, Defense-wide, as follows:
(1) $167.7 million for Joint Experimentation from Navy PE 32727N to
Defense-wide PE 63xx1;
(2) $26,000 for Joint Warfare Experiments from Navy PE 63757N to
Defense-wide PE 63xx2; and
(3) $22.5 million for Joint Warfare Transformation Programs from Navy
PE 64787N to Defense-wide PE 63xx3. (Pages 254-255.)
Section 597 of H.R. 4200 as reported by the House Armed Services Committee
would require DOD to submit reports on progress for achieving certain
transformation milestones. The committee’s report states:
This section would require the Secretary of Defense to provide a number
of reports to the Senate Committee on Armed Services and the House Committee
on Armed Services on different aspects of transformational efforts underway in
the Department. One report would provide information on the efforts to convert
military to civilian positions, and a series of annual reports in fiscal years 2005
through 2007 would provide information on the conversion of military positions
to other higher priority military positions. The section would also require the
Secretary of Defense to examine the feasibility of implementing: (1) a system to
embed within the military on a temporary basis persons with civilian skills that
are of high value to the military, and (2) a personnel system that expands the
capability of the armed forces to rapidly access, from other than the reserve
components, civilian volunteers with skills needed by the armed forces. Finally,
the section would also require the Secretary of the Army to report annually on
the status of efforts to transform the Army from a division-oriented system to a
brigade oriented one. (Page 329.)
Section 821 of H.R. 4200 as reported by the House Armed Services Committee
would require DOD to plan and budget for sustaining and modernizing existing
weapon systems while DOD waits for those systems to be replaced by
transformational weapon systems. In discussing this section, the committee’s report
states:
This section would require the Department of Defense to plan and budget for the
sustainment and modernization of current military systems until such time that
the replacement system under development is fielded and assumes responsibility
for the mission. The committee is aware of the fiscal realities that make it
difficult to fund simultaneously the development of transformational future
military systems and the maintenance and sustainment of current military
systems. In general, the military services map out program strategies for
sustainment and modernization. However, significant gaps exist. In 2003, the
General Accounting Office reported that 15 of the 25 systems reviewed had
insufficient funding requested by the Department of Defense or projected in the
Future Years Defense Program to execute the military services’ program
strategies to sustain or replace their equipment. It is the responsibility of the

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Department of Defense to develop military systems that provide the armed forces
with superiority over potential adversaries. However, funding for
transformational future systems that are decades from field operational capability
must not preclude the funding required to sustain and modernize the current
force. The committee is concerned that escalating cost growth in development
programs and accelerating transformation is funded by underinvestment in the
current force which may undermine the readiness and capabilities of the forces
that we must rely upon for the foreseeable future. (Page 348.)
On the topic of defense satellites, the committee’s report states:
With the advent of operationally responsive [satellite] launches, the
committee believes research and development should begin on the use of
satellites that would fit this new family of launch vehicles and address near-term
warfighter requirements. These new satellites should provide critical capabilities
from space in an affordable, reliable, and timely manner. This new perspective
on satellite acquisition represents a truly transformational strategy and, as such,
should be managed by the Secretary of Defense’s new Office of Force
Transformation. (Page 246.)
On the topic of defense transformation in general, the committee’s report states:
The committee supports the efforts of the Department of Defense to
transform the armed forces into capabilities based, networked joint forces that
are rapidly deployable and more lethal than today’s highly capable military.
Despite the Department’s success in recent combat operations, the committee
recognizes that the Department’s transformation goals are long term, evolving
objectives that will be very difficult to achieve without a joint strategy to guide
it. The committee is encouraged that the Army has embarked on an aggressive
transformation program that encompasses all aspects of the Army, including
personnel policies, unit structure, doctrine, and equipment. While the committee
has concerns about the development strategy for the Future Combat System,
addressed elsewhere in this report, the committee believes the Army’s plan to
create more combat power by fielding at least 45 active maneuver brigades is the
correct approach.
Similarly, the Navy, the Marine Corps, and the Air Force have embraced
transformation as an objective, and have proposed several specific concepts as
transformational. The committee is concerned that each military service has
embarked on its own transformational campaign, without an enforceable,
integrated joint forces roadmap to ensure the services’ plans are mutually
supportive and overlap only when necessary. For that reason, the committee
questions the services’ plans to sustain excessive headquarters structure despite
the services’ increasing requests for information technology funding purportedly
designed to flatten combat organizations.
Accordingly, the committee believes that the Joint Forces Command should
continue to evolve as the principal coordinator of service transformation efforts.
(Pages 354-355.)
Title XV of H.R. 4200 as reported by the House Armed Services Committee
authorizes supplemental funding for operations in Iraq and Afghanistan. In
discussing this title, the report states:

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The committee fully supports the Army’s efforts to transform the structure
of its divisions into smaller organizations to create additional combat relevant
units. This reorganization known as ‘’modularity’‘ will contribute to the
reduction of stress on our troops due to the high operational tempo of operations
in southwest Asia. This title authorizes an aggressive down payment for the
equipment costs of both modularity and the rapid fielding initiative as displayed
in the Army unfunded requirements list so that every infantry soldier has the
equipment necessary to perform their mission. (Page 380.)
The committee’s report also mentions the concept of transformation in
connection with a variety of other matters, including numerous equipment acquisition
programs, science and technology programs, intelligence, the defense industrial base,
increased Army end strength, logistics, military health care, DOD business practices,
and base closure and realignment.
Senate. Section 1033 of the FY2005 defense authorization bill (S. 2400) as
reported by the Senate Armed Services Committee (S.Rept. 108-260 of May 11,
2004) would establish a separate program element for operationally responsive
satellite payloads to be managed by the Office of Force Transformation, and
authorize $25 million for the new program. In discussing Section 1033, the
committee’s report states:
The committee notes that, in testimony before the Strategic Forces
Subcommittee, Committee on Armed Services of the Senate, the Under Secretary
of the Air Force, the Commander, U.S. Strategic Command, the Commander of
Air Force Space Command, and the Director of the Office of Force
Transformation all indicated their belief that the development of small,
operationally responsive satellites would make a valuable contribution to the
operational effectiveness of the warfighter. The Air Force budget request
includes $35.4 million to develop an operationally responsive launch vehicle,
intended to place small payloads into low earth orbit within hours or days of the
requirement to proceed, and to do so inexpensively. The Office of Force
Transformation has sponsored the development of experimental tactical satellites
(TACSATs), intended to demonstrate the rapid design and fabrication of
operationally useful satellite payloads. The committee notes that TACSAT —
1 and TACSAT — 2 are fully funded, but that no funding has been programmed
for TACSAT — 3, a payload that would be developed in fiscal year 2005, or
other future TACSAT missions. The committee believes that the continued
development of operationally responsive satellite payloads must proceed
vigorously in parallel with operationally responsive launch capabilities.
The committee believes that acquisition and operational models based on
inexpensive launch and smaller satellites provide the promise of enhancing the
effectiveness of U.S. military and intelligence space operations and mitigating
some of the endemic development problems that have afflicted U.S. space
programs over the past decade. The committee believes that such an approach
could reduce the vulnerability of on-orbit capabilities, improve responsiveness
of space assets to warfighter needs, expand the space industrial base, refresh
on-orbit technology on a more regular basis, and lower technical risk and reduce
management challenges.
The committee recognizes that developing standards and protocols to
enable rapid integration of payloads, satellite buses, and launch vehicles will be

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critical to the success of an approach based on more numerous launches of small
payloads, and encourages the Department of Defense to develop such standards
and protocols promptly. (Page 375.)
On the topic of defense transformation in general, the committee’s report states:
In order to meet the comprehensive defense needs of the 21st Century, the
U.S. Armed Forces must be technologically advanced, fully integrated forces that
can rapidly and decisively reach the far corners of the world to deter, disrupt, or
defeat those who threaten the United States, its interests overseas, and its friends
and allies. Winning the global war on terrorism and defending the homeland
must be the highest priorities, but the U.S. Armed Forces must simultaneously
prepare for the future. The modernization and transformation of America’s
Armed Forces is achievable and necessary, if the U.S. military is to be prepared
for current and future responsibilities. The President’s budget request for
defense for fiscal year 2005 continues the real increases in defense spending of
recent years to sustain readiness, enhance the quality of life of military personnel
and their families, and modernize and transform the U.S. Armed Forces to meet
current and future threats. (Page 2.)
The committee’s report also mentions the concept of transformation in connection with
a variety of other matters, including numerous equipment acquisition programs, science and
technology programs, manufacturing technologies and processes, logistics, DOD-funded
scholarships for science and engineering degrees, and military health care, including health-
care business practices.
Conference Report. Section 403 of the conference report (H.Rept. 108-767
of October 8, 2004) on H.R. 4200/P.L. 108-375 of October 28, 2004 states in part:
SEC. 403. ADDITIONAL AUTHORITY FOR INCREASES OF ARMY
ACTIVE DUTY PERSONNEL END STRENGTHS FOR FISCAL YEARS 2005
THROUGH 2009.
(a) AUTHORITY. — During fiscal years 2005 through 2009, the Secretary of
Defense is authorized to increase by up to 30,000 the end strength authorized for
the Army, and by up to 9,000 the end strength authorized for the Marine Corps,
above the levels authorized for those services in the National Defense
Authorization Act for Fiscal Year 2004, as necessary —
(1) to support the operational mission of the Army and Marine Corps in
Iraq and Afghanistan; and
(2) with respect to end strengths for the Army, to achieve transformational
reorganization objectives of the Army, including objectives for increased
numbers of combat brigades, unit manning, force stabilization and shaping, and
rebalancing of the active and reserve component forces of the Army....
Section 595 of the conference report states:
SEC. 595. REPORTS ON CERTAIN MILESTONES RELATING TO
DEPARTMENT OF DEFENSE TRANSFORMATION.
(a) MILITARY-TO-CIVILIAN CONVERSIONS. — Not later than January 31,
2005, the Secretary of Defense shall submit to the Committee on Armed Services
of the Senate and the Committee on Armed Services of the House of
Representatives a report providing information as to the number of positions in
the Department of Defense that were converted during fiscal year 2004 from
performance by military personnel to performance by civilian personnel of the

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Department of Defense or contractor personnel. The report shall include the
following:
(1) A description of the skill sets of the military positions converted.
(2) Specification of the total cost of the conversions and how that cost is
being met.
(3) The number of positions in the Department of Defense projected for
such conversion during the period from March 1, 2005, through January 31,
2006.
(b) MILITARY-TO-MILITARY CONVERSIONS. — Not later than March 31
of each of 2005, 2006, and 2007, the Secretary of Defense shall submit to the
Committee on Armed Services of the Senate and the Committee on Armed
Services of the House of Representatives a report on —
(1) the number of units, by type, converted from one primary military
capability to another during the previous fiscal year and, for each such unit, what
the new unit designation and new military capabilities are;
(2) the number of military personnel, by military skill, who have converted
during the previous fiscal year from one primary military skill to another, with
a listing of the military skills to which the individuals converted;
(3) a description of the military unit and military personnel conversions
planned for the upcoming fiscal year; and
(4) a statement of whether the overall unit and military personnel
conversions planned for the previous fiscal year were met, and for each such
planned conversion, the reasons why the planned conversion was or was not met.
(c) ARMY TRANSFORMATION TO BRIGADE STRUCTURE. — The
Secretary of the Army shall submit to the Committee on Armed Services of the
Senate and the Committee on Armed Services of the House of Representatives
an annual report on the status of the internal transformation of the Army from a
division-orientated force to a brigade-orientated force. Such report shall be
submitted not later than March 31 of each year, except that the requirement to
submit such annual report shall terminate when the Secretary of the Army
submits to those committees the Secretary’s certification that the transformation
of the Army to a brigade-orientated force has been completed. Upon the
submission of such certification, the Secretary shall publish in the Federal
Register notice of that certification and that the statutory requirement to submit
an annual report under this subsection has terminated.
In connection with this section, the conference report states:
The House bill contained a provision (sec. 597) that would require the
Secretary of Defense to submit reports to the Committees on Armed Services of
the Senate and the House of Representatives on implementation of
transformational milestones identified by the Department of Defense.
The Senate amendment contained no similar provision.
The Senate recedes with an amendment to remove the requirement for a
feasibility study on a civilian skill corps.
The conferees expect that a study on the feasibility of a civilian skill corps
will be conducted under authority provided elsewhere in this Act concerning
accession of persons with specialized skills.
With respect to military-to-civilian conversions in Navy medical and dental
fields that are proposed for fiscal year 2005, the conferees are concerned that the

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specialties targeted for conversion are those most needed by military families,
including pediatrics, family practice, and pharmacy. The conferees urge not only
the Secretary of the Navy but also the secretaries of the other military
departments to ensure that plans for military-to-civilian conversions do not
adversely affect the quality and access of military health care required by
military families. The conferees direct the Secretary of Defense to provide a
report to the Committees on Armed Services of the Senate and the House of
Representatives not later than 90 days following enactment of this Act that
describes the plans of each military department for military-to-civilian
conversions of medical and dental personnel in fiscal year 2006. (Pages 689-
690)
Section 901 of the conference report states in part:
SEC. 901. STUDY OF ROLES AND AUTHORITIES OF THE DIRECTOR OF
DEFENSE RESEARCH AND ENGINEERING.
(a) STUDY REQUIRED. — The Secretary of Defense shall carry out a study of
the roles and authorities of the Director of Defense Research and Engineering.
(b) CONTENT OF STUDY. — The study under subsection (a) shall include the
following:
(1) An examination of the past and current roles and authorities of the
Director of Defense Research and Engineering.
(2) An analysis to determine appropriate future roles and authorities for the
Director, including an analysis of the following matters:
(A) The relationship of the Director to other senior science and
technology and acquisition officials of the military departments and the Defense
Agencies.
(B) The relationship of the Director to the performance of the
following functions:...
(ix) The development of new technologies in support of the
transformation of the Armed Forces....
Section 913 of the conference report states in part:
SEC. 913. OPERATIONALLY RESPONSIVE NATIONAL SECURITY
SATELLITES.
(a) PLANNING, PROGRAMMING, AND MANAGEMENT. — (1) Chapter 135
of title 10, United States Code, is amended by inserting after section 2273 the
following new section:
Ҥ 2273a. Operationally responsive national security payloads and
buses: separate program element required
“(a) REQUIREMENT FOR PROGRAM ELEMENT. — The Secretary of
Defense shall ensure that, within budget program elements for space programs
of the Department of Defense, there is a separate, dedicated program element for
operationally responsive national security payloads and buses of the Department
of Defense for space satellites and that programs and activities for such payloads
and buses are planned, programmed, and budgeted for through that program
element.
“(b) MANAGEMENT AUTHORITY. — The Secretary of Defense shall
assign management authority for the program element required under subsection
(a) to the Director of the Office of Force Transformation of the Department of
Defense.
“(c) DEFINITION OF OPERATIONALLY RESPONSIVE. — In this
section, the term ‘operationally responsive’, with respect to a national security

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CRS-46
payload and bus for a space satellite, means an experimental or operational
payload and bus with a weight not in excess of 5,000 pounds that —
“(1) can be developed and acquired within 18 months after authority
to proceed with development is granted; and
“(2) is responsive to requirements for capabilities at the
operational and tactical levels of warfare.”....
In connection with this section, the conference report states:
The budget request included $19.6 million in PE 65799D8Z for the force
transformation directorate, but no funds for operationally responsive satellite
payloads and busses.
The House bill would authorize an increase of $25.0 million in PE
65799D8Z for operationally responsive satellite payloads.
The Senate amendment would authorize $25.0 million in a new program
element for operationally responsive satellite payloads.
The conferees believe that smaller, less expensive satellites may provide a
means of achieving more rapid and effective deployment of space-based military
capabilities than is now possible.
The conferees are encouraged by Air Force
efforts to develop small, lowcost space launch vehicles as an essential step for
enabling the launch of such satellites, but are concerned that the effort to develop
viable payloads for these rockets is not adequately funded. The conferees note
that the Office of Transformation is working with the Air Force Research
Laboratory to develop lightweight, experimental tactical satellites (TACSATs),
but that this effort lacks dedicated funding. The conferees also believe that the
development of standards, protocols, and interfaces for common satellite bus
components will be key to producing affordable small satellites. The conferees
agree to authorize $39.6 million in PE 65799D8Z, an increase of $20.0 million,
for further development of TACSATs and common small satellite bus
components.
The conferees expect, consistent with section 913 of this Act,
that future funding requests for operationally responsive payloads will be
forwarded in a separate and dedicated program element. (Page 580; see also
page 746.)
Section 1042 of the conference report states in part:
SEC. 1042. REPORT ON POST-MAJOR COMBAT OPERATIONS PHASE OF
OPERATION IRAQI FREEDOM.
(a) REPORT REQUIRED. — (1) Not later than June 1, 2005, the Secretary of
Defense shall submit to the congressional defense committees a report on the
conduct of military operations during the post-major combat operations phase of
Operation Iraqi Freedom.
(2) The report shall be prepared in consultation with the Chairman of the Joint
Chiefs of Staff, the commander of the United States Central Command, and such
other officials as the Secretary considers appropriate.
(b) CONTENT. — (1) The report shall include a discussion of the matters
described in paragraph (2), with a particular emphasis on accomplishments and
shortcomings and on near-term and long-term corrective actions to address such
shortcomings.
(2) The matters to be discussed in the report are as follows:...

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(S) The most critical lessons learned that could lead to long-term doctrinal,
organizational, and technological changes, and the probable effects that an
implementation of those changes would have on current visions, goals, and plans
for transformation of the Armed Forces or the Department of Defense....
Section 1043 of the conference report states in part:
SEC. 1043. REPORT ON TRAINING PROVIDED TO MEMBERS OF THE
ARMED FORCES TO PREPARE FOR POST-CONFLICT OPERATIONS.
(a) STUDY ON TRAINING. — The Secretary of Defense shall conduct a study
to determine the extent to which members of the Armed Forces assigned to duty
in support of contingency operations receive training in preparation for
post-conflict operations and to evaluate the quality of such training.
(b) MATTERS TO BE INCLUDED IN STUDY. — As part of the study under
subsection (a), the Secretary shall specifically evaluate the following:...
(4) The adequacy of training transformation to emphasize post-conflict
operations, including interagency coordination in support of commanders of
combatant commands....
The conference report states:
The budget request included $674.8 million in PE 63845F for
transformational military satellite communications (TSAT).
The House bill would authorize a decrease of $100.0 million in PE 63845F.
The Senate amendment would authorize a decrease of $100.0 million in PE
63845F.
The conferees agree to authorize $374.8 million in PE 63845F, a decrease
of $300.0 million.
The conferees strongly support the objectives of the TSAT program,
including much higher communications capacity, assured connectivity for a
much larger number of mobile and fixed forces, and the ability to protect these
capabilities against emerging threats. The conferees, however, have had
continuing concerns related to the risk of the current acquisition approach and
potential program delays, which the conferees believe could elevate operational
risks resulting from gaps in the military satellite communications
(MILSATCOM) architecture.
The conferees are aware of program options that could leverage both
current MILSATCOM program investments and TSAT development efforts.
The conferees believe that such an approach could accelerate the deployment of
advanced communications capabilities, provide the opportunity to incrementally
demonstrate advanced satellite communications technology, and provide a lower
risk path to meeting TSAT requirements. The conferees believe that such an
approach is potentially more consistent with spiral development and
capabilities-based acquisition.
The conferees direct the Secretary of Defense to evaluate modified TSAT
acquisition strategies that streamline the program structure and leverage current

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MILSATCOM investment, and to provide a report to the congressional defense
committees on that evaluation by March 1, 2005. (Page 558)
The conference report also states, in a section on coordination between DOD
and the National Aeronautics and Space Administration (NASA):
The conferees also endorse the Secretary of Defense’s emphasis on
transformational technologies. One of the more promising technologies under
development is hypersonic propulsion, which when further developed will
provide significantly improved operational capabilities for both manned and
unmanned flight, missile defense and a single-stage-to-flight capability that could
provide rapid access to space. Unfortunately, due to changing priorities within
both the Air Force and NASA, funding for such efforts has been reduced to
insignificant levels.
The conferees direct the Secretary of Defense to submit a report to the
congressional defense committees by March 15, 2005, which details the
Department’s plans to provide the required funding to pursue a development
program for transition of hypersonic technologies to an integrated demonstration
system that validates their affordability and effectiveness to support prompt
global strike and assured space access missions. The report should analyze the
results and technological advances enabled by the X — 43 series of programs
and other efforts to develop a detailed technology roadmap and investment
strategy consistent with meeting future military needs in hypersonics. The
conferees believe the capabilities to be realized through a successful hypersonic
development program justify the sustained and full support of the Department
and NASA. (Page 582)
The conference report also mentions transformation in connection with a
science, mathematics, and research for transformation (SMART) defense scholarship
pilot program (Section 1105; pages 264-266 and 774), Army logistics maintenance
information (page 642), and DOD educational facilities for military dependents
(Section 2896; see page 855).
FY2005 Defense Appropriations Bill (H.R. 4613/P.L. 108-287)
House. The House Appropriations Committee, in its report (H.Rept. 108-553
of June 18, 2004) on H.R. 4613, states:
As for the Department’s acquisition programs, in general the Committee
believes that many of the ‘’transformational’‘ programs under development are
worthy objectives, both playing to American advantages and future threat
environments. These programs stress the use of modern information technology
and manufacturing techniques to produce more agile, flexible, and lethal combat
platforms and systems. After thorough examination, however, the Committee has
concluded that a consistent theme runs through many of these programs, as
proposed in the fiscal year 2005 budget — namely, the development programs
are currently too aggressive and optimistic in terms of research, testing, and
production profiles. The Committee believes that a more measured “transition
to transformation” is in order, especially in the areas of Naval surface combatants
and Army combat vehicles. (Page 6)
The committee notes that its report, among other things,

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Makes recommendations on certain programs that will allow the Department to
“transition to transformation”. For the long-term, the Committee supports the
Department’s efforts to transform, but makes appropriate adjustments to
programs that have “come too far, too fast”.
The report states:
Largely due to timing, the Committee notes that the President’s budget does
not include funding to address two major emerging requirements, both centered
on the nation’s ground forces.
First, at roughly the same time the budget was submitted the Army
announced the most ambitious restructuring of its combat formations in decades.
This reorganization, known as “modularity”, will transform the structure of Army
divisions to create additional combat relevant units, centered on brigades. This
plan will not just lead to a more flexible, deployable Army, but by creating
additional combat formations, it should contribute to the reduction of stress on
our troops resulting from the high operational tempo of recent years. The Army
is moving rapidly to institute this new structure, but no funds for this initiative
were requested in the fiscal year 2005 budget. (Page 5.)57
The report also states:
The Committee has provided an additional $25,000,000 to the Force
Transformation Directorate only for the Operationally Responsive Satellite
program. The Committee notes that the program has been authorized in both the
House and Senate. The Committee fully supports the program objectives as
discussed in both the House and Senate authorization reports. The Committee
sees great promise that this approach could provide transformational spacebased
capabilities to warfighters in a timely and cost-effective manner. (Page 337.)
The report also states:
The Committee is aware that the Navy’s senior leadership has initiated a
series of discussions focused on how best to transition from today’s force to the
“transformational” force of the future. In general, these discussions have focused
on the most efficient and effective methods of addressing combat losses as well
as bridging potential gaps in operational capability until new systems are
available for use.
The Committee recognizes that current operations have caused the Navy to
re-evaluate the timeframe in which it can maintain its warfighting capability with
existing technology. The plan of just two short years ago was to maintain aircraft
and certain ship classes at existing levels, while anticipating the delivery of
transformational systems such as the Joint Strike Fighter and Littoral Combat
Ship. Ongoing operations as well as schedule slips for some major weapons
systems require the Navy to consider a period of transition. This period of
transition may include replacement of combat losses with the next generation of
57 The second unmet budget requirement listed by the committee was “the new set of
recapitalization challenges confronting all the services — but particularly the Army and
Marine Corps — as a result of Operations Iraqi Freedom and Enduring Freedom.”

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equipment, such as the V — 22, unplanned upgrades to the F/A — 18 series
aircraft, and adjusting production levels to achieve the most productive ratios.
The Committee does not believe the Navy nor the Department of Defense
as a whole can abandon the drive to transformation. However, it is apparent that
ongoing operational tempo requires an adjustment to original plans and that a
“transition to transformation” may be the best way to maintain and improve
capability. The Committee is encouraged that the Navy has initiated such
planning and believes that future budget requests should support this effort.
(Page 145)
Senate. The Senate report (S.Rept. 108-284 of June 24, 2004) on the FY2005
defense appropriations bill (S. 2559) states:
The budget request included $774,800,000 for the transformational military
satellite [TSAT] communications program. Current plans project a cost increase
of over 50 percent during fiscal year 2006, reaching an annual funding level of
over $1,000,000,000.
The Committee supports the efforts of the Air Force to develop significant
increases in bandwidth available to the military. TSAT development holds the
potential to improve communications capability through the use of lasers,
internet protocol packets, and integration with a new ground communications
network. Current Air Force estimates of the cost to complete the TSAT program
approximate $12,000,000,000. This estimate is nearly double the estimated cost
to complete in the fiscal year 2004 request.
As noted above, the Committee remains acutely concerned that projected
investments in Air Force space programs are not sustainable. The technical risks
associated with the deployment of a TSAT constellation are considerable. The
Committee recommends a decrease of $400,000,000. Despite the recommended
reduction in funds available to the program, sufficient resources remain to
support technology development and risk reduction activities. In fact, at the
recommended level, available funding increases by 10 percent above the fiscal
year 2004 levels. (Page 168)
The report also states:
The Committee is concerned about the number of “pilot” programs
requested within the Office of the Secretary Defense. These programs include
Reducing Total Ownership Costs, Rapid Acquisition Initiatives, Transformation
Initiatives, and Horizontal Fusion. The funding requests for these programs fail
to outline the activities and projects to be financed, but rather propose that the
Congress appropriate ‘’pots’‘ of money for broad programmatic objectives where
specific activities are identified after the funding is provided. For example, the
fiscal year 2005 budget request for the new start program Reducing Total
Ownership Costs broadly describes the program’s objective to, “optimize returns
on investments that reduce operating and support costs for systems.” The
Department plans to solicit proposals and make project selections after funding
has been granted; thus no defined list of projects is available.
The Committee finds this budgetary practice unacceptable and recommends
reducing funding for these programs. The Committee expects the Department to
adhere to traditional budget justification practices and provide detailed

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information on the projects and activities to be funded with the budget request.
(Page 180)
The report also states:
The Committee is extremely displeased by the Air Force’s continued use
of a flawed and irresponsible financial strategy for the C — 17 multiyear
procurement contract. In fiscal year 2003, the Air Force proposed a budget
request it referred to as “transformational”. The Committee, however, saw it for
what it was — an incremental financing scheme that abused the political support
for this program and flaunted acquisition regulations and standard practices.
(Page 192.)
The report also mentions transformation in connection with small mobile
weapons systems for force protection (page 146) and DoD’s language training
transformation initiatives (pages 191-192).
Conference Report. The conference report (H.Rept. 108-622 of July 20,
2004) on H.R. 4613 (P.L. 108-287 of August 5, 2004) mentions transformation in
connection with the Navy Shore Infrastructure Transformation (NSIT) program at
Navy Region Northwest (page 108).

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Appendix A: Additional Reading
White House Publications
The White House. The National Security of the United States of America.
September 2002.
[http://www.whitehouse.gov/nsc/nss.pdf]
DOD Publications
Elements of Defense Transformation. October 2004. 17 pp.
Military Transformation: A Strategic Approach. November 18, 2003. 35 pp.
Transformation Planning Guidance. April 10, 2003. 34 pp.
Network Centric Operations Conceptual Framework Version 1.0. April 12, 2004.
55 pp.
Serving a Nation At War. May 19, 2004. 24 pp.
2003 Army Transformation Roadmap. January 28, 2004. 162 pp.
2003 U.S. Air Force Transformation Flight Plan. February 12, 2004. 166 pp.
2003 Naval Transformation Roadmap. April 20, 2004. 94 pp.
Unmanned Aerial Vehicles Roadmap. December 31, 2002. 195 pp.
Training Transformation Implementation Plan. July 7, 2003. 21 pp.
U.S. Department of Defense, Office of the Secretary. Quadrennial Defense Review
Report. U.S. Dept. of Defense, Office of the Secretary, September 30, 2001,
71 p. [http://www.defenselink.mil/pubs/qdr2001.pdf].
Report of the Defense Science Board Task Force on DOD Warfighting
Transformation. September 1999. 36 p.
Mahnken, Thomas G. and James R. FitzSimonds. The Limits of Transformation:
Officer Attitudes Toward the Revolution in Military Affairs. Newport Paper #17,
(Newport: Naval War College, 2003).
(Most of these publications can be found at the website for DOD’s Office of Force
Transformation [http://www.oft.osd.mil].)
CRS Reports
CRS Report RS20787, Army Transformation and Modernization: Overview and
Issues for Congress, by Edward F. Bruner. (Updated periodically) 6 p.

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CRS Report RL32476, U.S. Army’s Modular Redesign: Issues for Congress, by
Andrew Feickert. (Updated periodically) 6 p.
CRS Report RS20859, Air Force Transformation, by Christopher Bolkcom.
(Updated periodically) 6 p.
CRS Report RS20851, Naval Transformation: Background and Issues for Congress,
by Ronald O’Rourke. (Updated periodically) 6 p.
CRS Report RL32411, Network Centric Warfare: Background and Oversight Issues
for Congress, by Clay Wilson. 35 p.
CRS Report RL31425, Military Transformation: Intelligence, Surveillance, and
Reconnaissance, by Judy G. Chizek. January 17, 2003. 30 p.
CRS Report RL32151, DOD Transformation Initiatives and the Military Personnel
System: Proceedings of a CRS Seminar, by Lawrence Kapp. November 12,
2003. 33 p.
CRS Report RS21975, U.S. Military Overseas Basing: Background and Oversight
Issues for Congress, by Jon D. Klaus. 6 p.
CRS Report RL31916, Defense Department Original Transformation Proposal:
Compared to Existing Law, by Robert L. Goldich, et al. Updated May 19, 2003. 57 p.
GAO Reports
Military Transformation: The Army and OSD Met Legislative Requirements for First
Stryker Brigade Design Evaluation, but Issues Remain for Future Brigades.
GAO-04-188 December 12, 2003. 51 pp.
Military Transformation: Realistic Deployment Timelines Needed for Army Stryker
Brigades. GAO-03-801 June 30, 2003. 26 pp.
Military Transformation: Army’s Evaluation of Stryker and M-113A3 Infantry
Carrier Vehicles Provided Sufficient Data for Statutorily Mandated
Comparison. GAO-03-671 May 30, 2003. 29 pp.
Defense Transformation: DOD’s Proposed Civilian Personnel System and
Governmentwide Human Capital Reform. GAO-03-741T May 1, 2003. 10 pp.
Defense Transformation: Preliminary Observations on DOD’s Proposed Civilian
Personnel Reforms. GAO-03-717T April 29, 2003. 22 pp.
Military Transformation: Progress and Challenges for DOD’s Advanced Distributed
Learning Programs. GAO-03-393 February 28, 2003. 63 pp.
Military Transformation: Actions Needed to Better Manage DOD’s Joint
Experimentation Program. GAO-02-856 August 29, 2002. 38 pp.

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Military Transformation: Army Actions Needed to Enhance Formation of Future
Interim Brigade Combat Teams. GAO-02-442 May 17, 2002. 48 pp.
Military Transformation: Army Has a Comprehensive Plan for Managing Its
Transformation but Faces Major Challenges. GAO-02-96 November 16, 2001.
47 pp.
Military Transformation: Navy Efforts Should Be More Integrated and Focused.
GAO-01-853 August 2, 2001. 32 pp.
Defense Acquisition: Army Transformation Faces Weapon Systems Challenges.
GAO-01-311 May 21, 2001. 23 pp.
Military Transformation[:] Clear Leadership, Accountability, and Management
Tools Are Needed to Enhance DOD’s Efforts to Transform Military
Capabilities. GAO-05-70 December 2004.
Other Publications
Finelli, Frank. Transforming Aerospace Power. Airpower Journal, Vol. XIII, No.
2 (Summer 1999): 4-14.
[http://www.airpower.maxwell.af.mil/airchronicles/apj/apj99/sum99/finelli.pdf]
Johnson, Edgar M. Workshop Introducing Innovation and Risk: Implications of
Transforming the Culture of DoD. Washington, 2004, 35 pp. (Institute for
Defense Analyses, March 2004)
Krepinevich, Andrew. The Bush Administration’s Call for Defense Transformation:
A Congressional Guide. Washington, Center for Strategic and Budgetary
Assessments, 2001. 3 p.
Krepinevich, Andrew, and Barry Watts and Robert Work. Meeting The Anti-Access
and Area-Denial Challenge. Washington, Center for Strategic and Budgetary
Assessments, 2003. 95 p.
Krepinevich, Andrew F. Lighting the Path Ahead: Field Exercises and
Transformation. Washington, Center for Strategic and Budgetary Assessments,
2002. 37 p.
Krepinevich, Andrew F., Jr. The Military-Technical Revolution: A Preliminary
Assessment. Washington, Center for Strategic and Budgetary Assessments,
2002. 54 pp. (This is a public reprint of an influential report on military
transformation issued by the DoD Office of Net Assessment in July 1992.)
National Defense Panel. Transforming Defense: National Security in the 21st
Century. Washington, Department of Defense, November 1997.
[http://www.dtic.mil/ndp/FullDoc2.pdf]
McGregor, Douglas A. Breaking the Phalanx: A New Design for Landpower in the
21st Century (Westport, CT: Praeger, 1997).

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O’Hanlon, Michael. Technological Change and the Future of Warfare.
Washington: Brookings Institution, 2000. Full text available on line:
[http://brookings.nap.edu/books/0815764391/html/index.html]
Owens, William A. The Emerging System of Systems. U.S. Naval Institute
Proceedings, May 1995, pp. 36-39.
Warden, Colonel John A. III. The Air Campaign: Planning for Combat
(Washington, DC: National Defense University Press, 1998).

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