Vice Admiral David L. Brewer III, USN Commander, Military Sealift Command

iscal year 2005 was a challenging yet rewarding year for Military Sealift Command. We continued our critical work in the global war on terrorism and contributed significantly to humanitarian relief efforts for tsunamis, earthquakes and hurricanes. We also continued to execute our command’s global transformation plans as one of our military’s leading examples on transforming into a great 21st-century organization.

Military Operations

This year, MSC delivered more than 22 million square feet of combat equipment to U.S. armed forces involved in Operation Iraqi Freedom and the global war on terrorism. That’s equal to almost 235,000 mid-size sport utility vehicles that, if placed on the highways bumper-to-bumper, would stretch from Washington, D.C., to Chicago.

MSC also delivered more than 2.2 billion gallons of fuel, which would fill the Empire State Building in New York City more than eight times.

Humanitarian Relief Efforts

When a tsunami and subsequent earthquake struck Indonesian waters in Southeast Asia in December, MSC sent 20 ships to assist with disaster relief. At the end of the fiscal year, MSC was an integral part of the relief efforts when Hurricanes Katrina and Rita devastated much of the U.S. Gulf Coast. Information about these operations appears in the Area Command section of this report.

DRY CARGO DELIVERED IN FY 2005

FUEL DELIVERED IN FY 2005

Transformation Efforts

MSC’s transformation efforts cleared the phase one hurdle. Steps were taken to put the right people in the right places in our new organization. Leading change in our Navy, MSC established Military Sealift Fleet Support Command, or MSFSC, in Norfolk in November under the leadership of Rear Adm. Carol Pottenger. MSFSC consolidates all type commander execution functions for MSC’s government-owned and -operated ships. This command will be a model 21st century organization that will render MSC much more effective in delivering combat logistics readiness to the Fleet.

Sealift Logistics Command Pacific in San Diego became the second MSC area command to align with their respective numbered fleet commander and integrate operational and tactical control of Navy logistics ships. This eliminated redundant or non-core functions, streamlined operations and made MSC better able to respond to the needs of the Fleets.

The Headquarters Evaluation And Review Team, or HEART, established this year, began to identify innovative organizational constructs and alignment opportunities. The team also started identifying redundant and non-core functions for possible elimination. They will continue their work in FY 2006.

Proactive Maintenance and Training

In addition to transforming our operational and business procedures, we’ve been looking at ways to improve our maintenance practices and the readiness and effectiveness of our ships through proactive maintenance and training, or PMAT. Our goals have been to improve equipment reliability and reduce unplanned maintenance spending. Rear Adm. Hugo Blackwood, USNR, MSC’s deputy commander, is leading the PMAT efforts, which began in November 2004.

Lean 6 Sigma

Organizational excellence comes from having the right people with the right tools to do the job. Lean 6 Sigma has been an excellent tool set. Pioneered by Motorola in the mid-1980s, Lean 6 Sigma has been a problem-solving process and mindset that significantly improves organizational processes and customer satisfaction by reducing inconsistency and waste. Lean 6 Sigma will serve MSC well by reducing or eliminating tasks that don’t add value to our mission, identifying and fixing breakdowns in our processes, improving employee productivity and quality of service to our customers while reducing our costs.

Civilian Mariners

It has been a good year for recruiting civil service mariners. More than 750 highly qualified mariners joined MSC in FY 2005. The Afloat Personnel Management Center, based in Virginia Beach, Va., made great improvements in the hiring process and the support that we give to our mariners afloat. In fact, our attrition rate for mariners fell to nine percent this year, the first time in five years that it’s been less than double digits. Improved manning helped us crew hospital ships USNS Mercy and USNS Comfort in record time to support humanitarian relief operations in Indonesia and on the U.S. Gulf Coast.

Another contributor to our low attrition rate among civil service mariners was the continued success of MSC’s able seaman and qualified member of the engine department upgrade programs. Sixty-one ordinary seamen successfully upgraded to able seamen in FY 2005, while 30 civil service mariners upgraded to become qualified members of the engine department. These programs save valuable training time and dollars, and ensure our ships are crewed by experienced, knowledgeable mariners.

In addition, 158 cadets from cooperative school programs and maritime academies across the country sailed with MSC during FY 2005. Of those, 46 were hired to permanent positions.

New Business

MSC’s need for more civilian mariners has been driven by an increased demand for MSC services from the U.S. military. The MSC headquarters Strategic Planning directorate and Special Mission Program worked to facilitate the transfer of a second Navy command ship, USS Mount Whitney, to MSC operation in FY 2005 and prepared the way for the eventual transfer of an additional command ship and two Navy submarine tenders. The transfer of all these ships, including the salvage ships USS Grapple and USS Grasp and the new Lewis and Clark-class dry cargo/ammunition ships, will save the Navy more than $100 million by returning war-fighting billets to the fleet, while reducing Navy training and operational costs.

Sea Basing

MSC has been on the leading edge of sea basing, a concept that will add mobile, flexible, at-sea platforms to boost our nation’s combat readiness. MSC’s Prepositioning Program will play a vital role in shaping the joint sea base. Navy leadership came to us first to develop and demonstrate key sea-basing concepts via operational test platforms. We’re helping develop and define this joint operations concept, which allows the U.S. armed forces to operate forward, from the sea. Using the right mix of surface ships and platforms, high-speed connectors, modern logistics technology and digital communications, we will put the right force wherever it’s needed, whenever it’s needed, quickly and effectively.

The sea base will give war fighters access without a permission slip. Mobile landing platforms, special operations platforms, logistics capabilities in higher sea states and transparent and seamless delivery of combat goods from factory to foxhole will form the basis of our 21st century power projection from the sea.

Looking Ahead

The future is bright for MSC. Expanding missions and new ships will increase the need for civilian mariners. New organizational tools, such as Lean 6 Sigma and PMAT, will help us improve our service to customers and eliminate unnecessary costs.

Our people are the best. Our innovation is legendary. That is why MSC delivers!

VICE ADMIRAL DAVID L. BREWER III, USN

Commander, Military Sealift Command