i think it's a reasonable rdt and e budget.it wasn't built on shares, but i think the shares suggest it's a reasonable plan. >>> up next we talk >>> welcome back for more of our conversation with bob hale, the pentagon's comptroller. sir, the administration's budget contains a proposed increase for retirement healthcare as well as reducing the rate of military pay increases that are going into the future. critics are blasting both of them as a betrayal of force that's been at war for the past decade. why are these fee increases necessary and if you don't increase them, what are some of the other alternatives you're going to have to look at? >> i think we had to put everything on the table when we were taking these kinds of cuts out of defense and we want today do it in a way that's consistent with our strategy. had we chosen not to look at military pay and benefits which is about 1/3 of our budget, we would have been forced into overly large cuts in modernization and infrastructure. i think it was agreed by our senior civilian

under vehicle development, $954 million requested for rdt & e, by far the largest point, $640 million for a key modernization priorities, that's the ground combat vehicle. we have a three-prong ed r & d approach, including analysis alternatives, non-essential vehicles and i think you know we have two technology development contracts that are out there now. we have another $72 million requested for the joint light tactical vehicle which is the centerpiece of both the army and the marine corps, tactical wheeled vehicle modernization strategy. there's only a very small a lot of oco included again. that is to continue the very successful efforts of the rapid equipping force to use off the shelf technologies to get force protection and other capabilities into the hands of our deployed forces very, very quickly. okay. turning now to facilities. secretary haile alluded to this during his presentation. our request of $3.5 billion in fy 13 is down significantly from fy 12, about a billion and a half less. of that 3.5 billion, representing $1.9 billion. about one-third less than last year, and

under vehicle development we have 954 million invested, or requested for rdt and e by far the largest point of that is 640 million for one of our key modernization priorities, and that's the ground combat vehicle. we have a three-pronged r&d approach outlined for the gcv that includes the analysis of alternatives, assessment of nondevelopmental vehicles, and then i think you know we have two technology development contracts that are out there now. we have another 72 million requested for the joint light tactical vehicle which is the centerpiece of both the army and the marine corps tactical-wheeled vehicle modernization strategy. .. >> that is about a third less than last year. the reason for that as you can imagine until the army has determined the outcome of our force structure reductions are revised, combat team structure, and they, enabling force structure and associated stationing impacts, we are conferring those projects, projects that otherwise, the strategic rail to reinvest those dollars into 14 and 15 president's budget when the outcome of our force structure determinations