The diminishment of Arctic sea ice has led to increased human activities in the Arctic, and has heightened interest in, and concerns about, the region's future. The United States, by virtue of Alaska, is an Arctic country and has substantial interests in the region. On January 12, 2009, the George W. Bush Administration released a presidential directive, called National Security Presidential Directive 66/Homeland Security Presidential Directive 25 (NSPD 66/HSPD 25), establishing a new U.S. policy for the Arctic region.

The Littoral Combat Ship (LCS) is a relatively inexpensive Navy surface combatant equipped with modular plug-and-fight mission packages. The basic version of the LCS, without any mission packages, is referred to as the LCS sea frame. The Navy wants to field a force of 55 LCSs. The first two (LCS-1 and LCS-2) were procured in FY2005 and FY2006 and were commissioned into service on November 8, 2008, and January 16, 2010. Another two (LCS-3 and LCS-4) were procured in FY2009 and are under construction. Two more (LCS-5 and LCS-6) were procured in FY2010. The Navy's FY2011-FY2015 shipbuilding plan calls for procuring 17 more LCSs in annual quantities of 2, 3, 4, 4, and 4. The Navy's proposed FY2011 budget requests $1,231.0 million in procurement funding for the two LCSs that the Navy wants to procure in FY2011, and $278.4 million in FY2011 advance procurement funding for the 11 LCSs that the Navy wants to procure in FY2012-FY2014. The Navy's proposed FY2011 budget also requests procurement funding to procure LCS mission packages, LCS module weapons, and research and development funding for the LCS program. There are currently two very different LCS designs--one developed and produced by an industry team led by ...

This report presents policy and oversight issues for Congress arising from (1) maritime territorial disputes involving China in the South China Sea (SCS) and East China Sea (ECS) and (2) an additional dispute over whether China has a right under international law to regulate U.S. and other foreign military activities in its 200-nautical-mile maritime Exclusive Economic Zone (EEZ). China is a party to multiple maritime territorial disputes in the SCS and ECS, including, in particular, disputes over the Paracel Islands, Spratly Islands, and Scarborough Shoal in the SCS, and the Senkaku Islands in the ECS. Maritime territorial disputes involving China in the SCS and ECS date back many years, and have periodically led to incidents and periods of increased tension. The disputes have again intensified in the past few years, leading to numerous confrontations and incidents, and heightened tensions between China and other countries in the region, particularly Japan, the Philippines, and Vietnam. In addition to maritime territorial disputes in the SCS and ECS, China is involved in a dispute, particularly with the United States, over whether China has a right under international law to regulate the activities of foreign military forces operating within China's EEZ. The dispute appears to ...

The planned size of the Navy, the rate of Navy ship procurement, and the prospective affordability of the Navy's shipbuilding plans have been matters of concern for the congressional defense committees for the past several years. In February 2006, the Navy presented to Congress a goal of achieving and maintaining a fleet of 313 ships, consisting of certain types and quantities of ships. On March 28, 2012, the Department of Defense (DOD) submitted to Congress an FY2013 30-year (FY2013-FY2042) shipbuilding plan that includes a new goal for a fleet of about 310-316 ships. The Navy is conducting a force structure assessment, to be completed later this year, that could lead to a refinement of this 310- 316 ship plan.The planned size of the Navy, the rate of Navy ship procurement, and the prospective affordability of the Navy's shipbuilding plans have been matters of concern for the congressional defense committees for the past several years. In February 2006, the Navy presented to Congress a goal of achieving and maintaining a fleet of 313 ships, consisting of certain types and quantities of ships. On March 28, 2012, the Department of Defense (DOD) submitted to Congress an FY2013 30-year (FY2013-FY2042) shipbuilding plan that includes a new goal for a fleet of about 310-316 ships. The Navy is conducting a force structure assessment, to be completed later this year, that could lead to a refinement of this 310- 316 ship plan.

The Navy's FY2013 budget submission calls for procuring nine Arleigh Burke (DDG-51) class destroyers in FY2013-FY2017, in annual quantities of 2-1-2-2-2. The five DDG-51s scheduled for procurement in FY2013-FY2015, and one of the two scheduled for procurement in FY2016, are to be of the current Flight IIA design. The Navy wants to begin procuring a new version of the DDG-51 design, called the Flight III design, starting with the second of the two ships scheduled for procurement in FY2016. The two DDG-51s scheduled for procurement in FY2017 are also to be of the Flight III design. The Flight III design is to feature a new and more capable radar called the Air and Missile Defense Radar (AMDR). The Navy this year is requesting congressional approval to use a multiyear procurement (MYP) arrangement for the nine DDG-51s scheduled for procurement in FY2013-FY2017.

Some officials of the Islamic Republic of Iran have recently renewed threats to close or exercise control over the Strait of Hormuz. Iran's threats appear to have been prompted by the likely imposition of new multilateral sanctions targeting Iran's economic lifeline-the export of oil and other energy products. In the past, Iranian leaders have made similar threats and comments when the country's oil exports have been threatened. However, as in the past, the prospect of a major disruption of maritime traffic in the Strait risks damaging Iranian interests. U.S. and allied military capabilities in the region remain formidable. This makes a prolonged outright closure of the Strait appear unlikely. Nevertheless, such threats can and do raise tensions in global energy markets and leave the United States and other global oil consumers to consider the risks of another potential conflict in the Middle East. This report explains Iranian threats to the Strait of Hormuz, and analyzes the implications of some scenarios for potential U.S. or international conflict with Iran. These scenarios include: (1) Outright Closure. An outright closure of the Strait of Hormuz, a major artery of the global oil market, would be an unprecedented disruption of global oil supply and contribute to higher global oil prices. However, at present, this appears to be a low probability event. Were this to occur, it is not likely to be prolonged. It would likely trigger a military response from the United States and others, which could reach beyond simply reestablishing Strait transit. Iran would also alienate countries that currently oppose broader oil sanctions. Iran could become more likely to actually pursue this if few or no countries were willing to import its oil. (2) Harassment and/or Infrastructure Damage. Iran could harass tanker traffic through the Strait through a range of measures without necessarily shutting down all traffic. This took place during the Iran-Iraq war in the 1980s. Also, critical energy production and export infrastructure could be damaged as a result of military action by Iran, the United States, or other actors. Harassment or infrastructure damage could contribute to lower exports of oil from the Persian Gulf, greater uncertainty around oil supply, higher shipping costs, and consequently higher oil prices. However, harassment also runs the risk of triggering a military response and alienating Iran's remaining oil customers. (3) Continued Threats. Iranian officials could continue to make threatening statements without taking action. This could still raise energy market tensions and contribute to higher oil prices, though only to the degree that oil market participants take such threats seriously. If an oil disruption does occur, the United States has the option of temporarily offsetting its effects through the release of oil from the Strategic Petroleum Reserve. Such action could be coordinated with other countries that hold strategic reserves, as was done with other members of the International Energy Agency after the disruption of Libyan crude supplies in 2011. Iran's threats suggest to many experts that international and multilateral sanctions-and the prospect of additional sanctions-have begun to affect its political and strategic calculations. The threats have been coupled with a publicly announced agreement by Iran to resume talks with six countries on measures that would assure the international community that Iran's nuclear program is used for purely peaceful purposes. Some experts believe that the pressure on Iran's economy, and its agreement to renewed talks, provide the best opportunity in at least two years to reach agreement with Iran on curbing its nuclear program.

The term Deepwater referred to more than a dozen separate Coast Guard acquisition programs for replacing and modernizing the service's aging fleet of deepwater-capable ships and aircraft. Until April 2007, the Coast Guard pursued these programs as a single, integrated acquisition program that was known as the Integrated Deepwater System (IDS) program or Deepwater program for short. Since April 2007, the Coast Guard has pursued them as separate acquisition programs. These acquisition programs include plans for, among other things, 91 new cutters, 124 new small boats, and 247 new or modernized airplanes, helicopters, and unmanned aerial vehicles (UAVs).

The Navy is currently procuring one Virginia (SSN-774) class attack nuclearpowered submarine (SSN) per year. Each submarine currently costs about $2.4 billion. The FY2007-FY2011 Future Years Defense Plan (FYDP) to be submitted in February 2006 reportedly will propose maintaining the one-per-year procurement rate through FY2011, and then increasing the rate to two per year in FY2012. As of the end of FY2005, the Navy totaled 282 ships, including 54 SSNs. In December 2005, it was reported that the Navy is planning to maintain future fleet of 313 ships, including 48 SSNs. Submarine supporters are concerned that the Navy and DOD are not placing adequate emphasis on attack submarines in Navy forcestructure planning and ship-procurement plans. Issues for Congress include the following: What should the attack submarine force-level goal be? At what rate should Virginia-class submarines be procured in coming years? Congress's decisions on these issues could significantly affect future Navy capabilities, Navy funding requirements, and the submarine industrial base. In considering what the attack submarine force-level goal should be, key factors to consider include day-to-day demands for attack submarines, potential wartime demands for attack submarines, submarine-launched unmanned vehicles (UVs), attack submarine homeporting and crewing arrangements, the Trident cruise missile submarine ...

The F-35 Joint Strike Fighter (JSF), also called the Lighting II, is a new strike fighter being procured in different versions by the Air Force, Marine Corps, and Navy. The F-35 program is the Department of Defenses (DODs) largest weapon procurement program in terms of total estimated acquisition cost. Current DOD plans call for acquiring a total of 2,456 JSFs for the Air Force, Marine Corps, and Navy at an estimated total acquisition cost (as of December 31, 2007) of about $246 billion in constant (i.e., inflation-adjusted) FY2009 dollars. Procurement of F-35s began in FY2007. Hundreds of additional F-35s are to be purchased by several U.S. allies. The administrations proposed FY2010 defense budget requests a total of about $10.4 billion in Air Force and Navy research and development funding and procurement funding for the F-35 program, including about $3.6 billion in Air Force and Navy research and development funding and about $6.8 billion in Air Force and Navy procurement funding. The proposed FY2010 budget would fund the procurement of 10 F-35As for the Air Force, 16 F-35Bs for the Marine Corps, and four F-35Cs for the Navy. The administrations proposed FY2010 defense budget also proposes to terminate the F-35 alternate ...