The Virginian-Pilot
                             THE VIRGINIAN-PILOT 
              Copyright (c) 1995, Landmark Communications, Inc.

DATE: Friday, June 30, 1995                  TAG: 9506300468
SECTION: LOCAL                    PAGE: B3   EDITION: FINAL 
SOURCE: BY JACK DORSEY, STAFF WRITER 
                                             LENGTH: Medium:   85 lines

THE MILITARY MUST GET MONEY-SMART, ADMIRAL SAYS INVESTING AND SHARING CITED AS MAJOR ISSUES.

While the military has enough money to perform its missions today, it doesn't have enough to replace its aging ships, planes and tanks unless it gets smarter with its investments, says the nation's second highest ranking military officer.

The solution to finding future modernization funds will be in streamlining existing functions in unique ways, Adm. William A. Owens, vice chairman of the Joint Chiefs of Staff, said after a visit Wednesday to the U.S. Atlantic Command's Joint Training Analysis and Simulation Center in Suffolk.

At least three key areas are being studied to find such funds, he said:

Contracting out certain military base functions to private industry, resulting in a savings of 25 percent to 30 percent of current costs.

Investing in new technologies in the next three to five years that will lead to the ability to use people and weapons in ways never thought possible.

Finding more areas where the service branches can operate jointly, eliminating redundancies.

Owens, considered a futurist among the military's leaders, said today's issues, while complex, represent a challenge that can be mastered.

``The premise I use is that we had better understand the stuff we are buying for the future,'' he said, citing new satellite systems, missiles and aircraft now on the drawing boards.

``In each of those is a lot of investment and tremendous capability. Unless we understand that capability, we won't be able to make a judgment of how much is enough.''

Owens is chairman of the Joint Requirements Oversight Council, made up of the vice chiefs of the military services.

For the first time, he said, those four-star admirals and generals spend a day per week discussing how they can make joint service war-fighting better.

``We are talking about all of the details we can pull together about joint war-fighting capabilities - air superiority, joint strike warfare . . . nine different assessment areas - to understand across the four services what is necessary . . . what we expect to have to do in the future,'' he said.

There is enough money today for the defense industry to accomplish its required mission of containing two major regional conflicts simultaneously, plus carrying out normal operations, maintaining readiness and paying its personnel, he said.

``Where you find the shortfall is in modernization dollars,'' said Owens.

That is where the defense industry will have to become smarter in protecting its investments and finding new areas in which to save, he added.

``I am convinced that new technologies will give us tremendous efficiencies,'' said Owens as he toured the Atlantic Command's new $30 million training, analysis and simulation center.

The center is designed to be used by all military branches to plan, analyze and rehearse joint task force operations, whether it be a peacemaking operation in Haiti or a withdrawal of United Nations personnel from Bosnia.

Task force commanders, using high-speed computers linked with other commands throughout the nation and the world, can simulate war-fighting conditions without having to place all of their participants on an actual playing field. There are tremendous savings from such computer-driven exercises, compared to major field war games that can costs tens of million of dollars, Owens said.

Likewise, defense leaders studying tactical air requirements last year looked at what each service required, he added. The Navy needed its F/A-18 Hornets, the Air Force its F-15 Strike Eagles and standoff Tomahawk cruise missiles.

But the Air Force did not need its fleet of older F-111 Ravens if the assets of the other services could be used together, he said.

``You could see the efficiencies and that we might be able to do away with all F-111s,'' he said. ``That is an example of jointness, when we do it together, save money and do it better.''

The services are a long way from solving all of their problems, Owens said.

``But I believe . . . we will find the efficiencies to allow us to keep those top lines and at same time provide the funding to recapitalize and modernize the forces.

``But it is complex. This is going to be a journey where we are committed to doing business differently . . . to make sure our country realizes those efficiencies.'' ILLUSTRATION: Photo

Adm. William A. Owens, vice chairman of the Joint Chiefs of Staff,

says the problems are complex but can be solved.

by CNB