DEVELOPED IN RESPONSE TO THE PRESIDENT'S STRATEGIC FORCES (U) ARE THE DESIGNS TOO ELABORATE? EACH WEAPON TYPE MUST BE CONSIDERED IN VIEW OF THE MILITARY OPERATIONAL ROLES IT IS DESIGNED TO FULFILL. SPECIAL FEATURES ARE INCLUDED ONLY WHEN THEY PROVIDE A NEEDED CAPABILITY OR ALLOW EFFICIENCIES THROUGH SMALLER QUANTITIES AND OPERATIONAL FLEXIBILITY IN MULTIPLE ROLES. THE LABORATORIES DO SOMETIMES HELP TO IDENTIFY AND "STIMULATE" SUCH REQUIREMENTS. (U) BUT, DO NUCLEAR WEAPONS SIMPLY COST TOO MUCH? COMPARED TO OTHER HIGH TECHNOLOGY DEFENSE PROGRAMS, WARHEAD UNIT COSTS APPEAR TO BE RISING AT ABOUT THE SAME RATE. OF COURSE MORE DISCIPLINE IS POSSIBLE, AND RECENT INITIATIVES ARE HELPING WITH THAT. HOWEVER, BECAUSE WE KNOW SO LITTLE ABOUT SOVIET NUCLEAR PROGRAMS, OUR PUSH IN TECHNOLOGY ADDS TO DETERRENCE AND IS WORTH THE INVESTMENT. THE TASK GROUP STRONGLY ENDORSED THE WORK OF THE LABORATORIES IN THIS REGARD. (U) THE TASK GROUP CONCLUDED THAT FUNDING RESPONSIBILITY FOR DOE'S NUCLEAR WEAPON ACTIVITIES SHOULD NOT BE TRANSFERRED TO DOD--BECAUSE THE DISADVANTAGES OF SUCH A TRANSFER WOULD MORE THAN OFFSET THE ADVANTAGES. ON THIS, WE CONCUR FULLY WITH THE TASK GROUP. BUT HAVING REACHED THIS CONCLUSION, THE TASK GROUP RECOMMENDED A BROAD SET OF "FINE-TUNING" CHANGES IN MANAGEMENT 1248 ARRANGEMENTS AND PROCEDURES AIMED TOWARD INTRODUCING MORE (U) BOTH DO AND DOE HAVE COMPLETED INDEPENDENT AND JOINT (U) NEW CLOSER WORKING ARRANGEMENTS WILL FACILITATE CONSIDERATION OF PROGRAM PRIORITIES AND ENCOURAGE GREATER FISCAL DISCIPLINE ACROSS THE DEPARTMENTAL BOUNDARIES. FOR EXAMPLE, THE DOE BUDGET REQUEST NOW BEFORE YOU FOR CONSIDERATION REFLECTS OUR FIRST STEPS TOWARD MODIFYING THE BUDGET PREPARATION PROCESS TO INCLUDE FISCALLY CONSTRAINED TRADEOFFS AMONG DOE REQUIREMENTS AND OTHER DEFENSE (DOD) NEEDS. BOTH DOD AND DOE WORKED CLOSELY WITH OMB TO STRUCTURE A RATIONALE PROGRAM BALANCE ACROSS DEPARTMENTAL LINES. ADJUSTMENTS BETWEEN DOD AND DOE WERE MADE LATE IN THE FY87 BUDGET REQUEST PREPARATION CYCLE, AND WE ARE WORKING TO DEFINE NEW ARRANGEMENTS AND PROCEDURES FOR USE MUCH EARLIER IN THE FY88 CYCLE. FOR EXAMPLE, WE HAVE AGREED TO CONSIDER THE INCREMENTAL COSTS OF DOE NUCLEAR WEAPONS PRODUCTION IN COMPETITION WITH OTHER DEFENSE (DOD) NEEDS IN A JOINT DOD/DOE REVIEW PROCESS. (U) ARRANGEMENTS AND DETAILS ARE NOW BEING DEFINED TO ALLOW IMPLEMENTATION OF THIS JOINT PROCESS TO COINCIDE WITH OSD REVIEW OF SERVICE PROGRAM OBJECTIVE MEMORANDA THIS SUMMER. REQUIREMENTS IN A FISCALLY CONSTRAINED PROCESS. THIS WILL MORE (U) JCS AND THE SERVICES, ALONG WITH OSD AND DOE, WILL BE MAJOR PARTICIPANTS IN THIS TRADEOFF AND RESOURCE ALLOCATION PROCESS, ASSURING THAT ALL DEFENSE NEEDS COMPETE EQUITABLY. THIS ALSO ADDRESSES ANOTHER TASK GROUP CONCERN, THAT MILITARY PRIORITIES BE FULLY CONSIDERED. (U) A NEW GROUP, PROPOSED BY THE TASK GROUP, IS BEING CONSIDERED WHICH COULD FOCUS THE CONDUCT OF INTEGRATED REVIEWS OF NUCLEAR WEAPONS ISSUES AND BUDGETS AND COULD ASSURE APPROPRIATE CONSIDERATION OF TRADEOFFS WITHIN AND BETWEEN DEPARTMENTS. WE DO, HOWEVER, BELIEVE THAT THE MLC CONTINUES TO SERVE USEFUL FUNCTIONS BOTH WITHIN DOD AND BETWEEN DEPARTMENTS IN ITS LIAISON ROLE. THIS FORUM SHOULD BE PRESERVED AND STRENGTHENED, AND WE ARE WORKING TO IMPROVE THE ABILITY OF THE MLC TO DO ITS JOB. (U) ARRANGEMENTS EXIST NOW FOR EFFECTIVE COORDINATION WITH DOE, BOTH FUNCTIONALLY AND THROUGH THE MLC, ON SUCH INDIVIDUAL SYSTEM MATTERS AS THE MILITARY CHARACTERISTICS (MCS) AND THE STOCKPILE-TO-TARGET-SEQUENCE (STS). DISCIPLINE IS ENHANCED BY FORMAL STATEMENTS OF REQUIREMENTS (MC/STS) BY DOD AND FORMAL STATEMENT OF CUSTS TO MEET THOSE BY DOE (1.E., PHASE 2A STUDIES AND ESTABLISHMENT OF BASELINE COST) AND, LATER, FORMAL ACCEPTANCE OF CERTIFICATION BEFORE PRODUCTION DECISION. THE MLC IS THE RIGHT DOD FORUM, WITH THE APPROPRIATE SERVICE MEMBERSHIP, TO EXERCISE INDIVIDUAL SYSTEM COST DISCIPLINE, FOR EXAMPLE, ON ISSUES REGARDING THE MILITARY NEED/BENEFIT OF SPECIAL FEATURES THAT CAN DRIVE UP THE UNIT COST OF NEW NUCLEAR WEAPONS. (U) ADDITIONALLY, WE ARE EMPHASIZING PROCEDURES TO ASSURE THAT COST/PERFORMANCE TRADE-OFFS ARE ACCOMPLISHED DURING THE NUCLEAR WEAPON ACQUISITION PROCESS. THIS EMPHASIS BEGINS WITHIN EACH DEPARTMENT AND IS FOCUSED DURING THE JOINT MILITARY LIAISON COMMITTEE (MLC) REVIEW PROCESS. IN LINE WITH PARALLEL CHANGES THAT HAVE ALREADY BEEN IMPLEMENTED TO STRENGTHEN DOD'S BROADER ACQUISITION MANAGEMENT RESPONSIBILITIES, WE ARE STAFFING PROCESS CHANGES WHICH WILL ELEVATE MANAGEMENT ATTENTION ON NUCLEAR WEAPON ACQUISITION. FOR EXAMPLE, WE ARE STAFFING NEW DOD DIRECTIVES TO ELEVATE A MAJOR DOD/DOE PROGRAM MILESTONE DECISION POINT FROM THE CURRENT USDRE LEVEL. THE DEPUTY SECRETARY OF DEFENSE, AS THE DOD ACQUISITION EXECUTIVE, WILL ACT ON DECISIONS TO INITIATE ENGINEERING DEVELOPMENT (PHASE 111 REQUESTS) OF NUCLEAR WEAPONS. THIS RESPONDS TO THE TASK GROUP'S RECOMMENDATIONS. SIMILARLY, WE ARE WORKING WITH DOE TO EMPHASIZE COST DISCIPLINE, AGREE ON BASELINE COSTS, AND ENFORCE COST MONITORING AS THE TASK GROUP RECOMMENDED. (U) FINALLY, AS WE TAKE EACH STEP IN RESPONSE TO RECOMMENDATIONS IN THE TASK GROUP'S REPORT, WE ARE ALSO TAKING GREAT CARE TO ASSURE PRESERVATION OF THE STRENGTHS AND CAPABILITIES OF THE PRESENT SYSTEM. WE MUST NOT AND WILL NOT COMPROMISE ON CRITICAL AREAS SUCH AS NUCLEAR SAFETY, AND WE (U) IN SUMMARY, WE ARE DILIGENTLY PURSUING A CONSTRUCTIVE RESPONSE TO THE TASK GROUP'S RECOMMENDATIONS. IN MANY AREAS WE ARE PREPARING TO IMPLEMENT CHANGES WHICH FULLY ADAPT THE RECOMMENDATION. IN A FEW AREAS WE ARE STRIVING TO IMPROVE FURTHER ON THE RECOMMENDATIONS BY RESPONDING TO THE TASK GROUP'S CONCERN AND INTENT WHILE AVOIDING NEEDLESSLY COMPLEX PROCESSES. WE BELIEVE THAT, JUST AS THE TASK GROUP'S RECOMMENDATIONS WERE STRUCTURED AS A COHERENT SET, OUR IMPLEMENTATION ACTIVITIES TAKEN AS A WHOLE ARE A VERY RESPONSIVE, CONSTRUCTIVE, AND COHERENT APPROACH. IMPROVEMENTS NOW, AND REFINEMENTS WILL CONTINUE AS THE NEW PROCESSES, PROCEDURES, AND MANAGEMENT ARRANGEMENTS MATURE OVER THE NEXT YEAR. WE ARE MAKING 1 (U) WE BELIEVE THE TASK GROUP'S EFFORT HAS BEEN CONSTRUCTIVE IN ASSISTING US TO FOCUS MANAGEMENT ATTENTION. WE WILL STRIVE TO RETAIN AND ENHANCE THAT FOCUS ON MUTUAL DOD/DOE FISCAL DISCIPLINE ACROSS THE NUCLEAR WEAPONS PROGRAM AND OTHER DEFENSE NEEDS. (U) IN A LESS FORMAL WAY THAN WHAT WILL SOON BE ESTABLISHED, THIS CLOSER COORDINATION IS ALREADY BEING 57-567 0-86-22 |