The Navy's efficiency and effectiveness is dependent on the material readiness of its ships. It is essential that the programming mechanism for surface ship maintenance account for all required repair work and the relative risk associated with resource allocation, especially during this era of reduced defense spending. The Maintenance Requirement System (MRS) is a tool that appears to accomplish this by defining maintenance requirements, projecting those requirements into the future, and assessing the risk of not fully funding maintenance requirements in terms of degraded mission capability. This thesis examines MRS, current and future issues that impact MRS, and the similarities between MRS and performance budgeting.... Maintenance Requirement System (MRS), Performance budgeting, Availabilities, Severity, Probability, Risk, Maintenance requirements, Defining requirements.