[House Hearing, 113 Congress] [From the U.S. Government Publishing Office] [H.A.S.C. No. 113-32] HEARING ON NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2014 AND OVERSIGHT OF PREVIOUSLY AUTHORIZED PROGRAMS BEFORE THE COMMITTEE ON ARMED SERVICES HOUSE OF REPRESENTATIVES ONE HUNDRED THIRTEENTH CONGRESS FIRST SESSION __________ SUBCOMMITTEE ON TACTICAL AIR AND LAND FORCES HEARING ON FISCAL YEAR 2014 NAVY, MARINE CORPS AND AIR FORCE COMBAT AVIATION PROGRAMS __________ HEARING HELD APRIL 17, 2013 [GRAPHIC] [TIFF OMITTED] TONGRESS.#13 U.S. GOVERNMENT PRINTING OFFICE 80-761 WASHINGTON : 2013 ----------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Printing Office, http://bookstore.gpo.gov. For more information, contact the GPO Customer Contact Center, U.S. Government Printing Office. Phone 202�09512�091800, or 866�09512�091800 (toll-free). E-mail, [email protected]. SUBCOMMITTEE ON TACTICAL AIR AND LAND FORCES MICHAEL R. TURNER, Ohio, Chairman FRANK A. LoBIONDO, New Jersey LORETTA SANCHEZ, California JOHN FLEMING, Louisiana MIKE McINTYRE, North Carolina CHRISTOPHER P. GIBSON, New York JIM COOPER, Tennessee JON RUNYAN, New Jersey JOHN GARAMENDI, California MARTHA ROBY, Alabama RON BARBER, Arizona PAUL COOK, California DANIEL B. MAFFEI, New York JIM BRIDENSTINE, Oklahoma JOAQUIN CASTRO, Texas BRAD R. WENSTRUP, Ohio TAMMY DUCKWORTH, Illinois JACKIE WALORSKI, Indiana WILLIAM L. ENYART, Illinois MAC THORNBERRY, Texas PETE P. GALLEGO, Texas WALTER B. JONES, North Carolina MARC A. VEASEY, Texas ROB BISHOP, Utah John Sullivan, Professional Staff Member Doug Bush, Professional Staff Member Julie Herbert, Clerk C O N T E N T S ---------- CHRONOLOGICAL LIST OF HEARINGS 2013 Page Hearing: Wednesday, April 17, 2013, Fiscal Year 2014 Navy, Marine Corps and Air Force Combat Aviation Programs......................... 1 Appendix: Wednesday, April 17, 2013........................................ 33 ---------- WEDNESDAY, APRIL 17, 2013 FISCAL YEAR 2014 NAVY, MARINE CORPS AND AIR FORCE COMBAT AVIATION PROGRAMS STATEMENTS PRESENTED BY MEMBERS OF CONGRESS Sanchez, Hon. Loretta, a Representative from California, Ranking Member, Subcommittee on Tactical Air and Land Forces........... 3 Turner, Hon. Michael R., a Representative from Ohio, Chairman, Subcommittee on Tactical Air and Land Forces................... 1 WITNESSES Davis, Lt Gen Charles R., USAF, Military Deputy, Office of the Assistant Secretary of the Air Force for Acquisition; and Lt Gen Burt Field, USAF, Deputy Chief of Staff, Operations, Plans and Requirements............................................... 7 Skinner, VADM W. Mark, USN, Principal Military Deputy to the Assistant Secretary of the Navy (Research, Development, and Acquisition); LtGen Robert E. Schmidle, USMC, Deputy Commandant of the Marine Corps for Aviation; and RADM Bill Moran, USN, Director of the Air Warfare Division........................... 5 Sullivan, Michael J., Director of Acquisition and Sourcing, U.S. Government Accountability Office............................... 3 APPENDIX Prepared Statements: Davis, Lt Gen Charles R., joint with Lt Gen Burt Field....... 102 Sanchez, Hon. Loretta........................................ 37 Skinner, VADM W. Mark, joint with LtGen Robert E. Schmidle and RADM Bill Moran........................................ 57 Sullivan, Michael J.......................................... 39 Documents Submitted for the Record: [There were no Documents submitted.] Witness Responses to Questions Asked During the Hearing: Mr. Garamendi................................................ 129 Mr. McIntyre................................................. 129 Mr. Veasey................................................... 131 Questions Submitted by Members Post Hearing: Mr. Barber................................................... 146 Mr. LoBiondo................................................. 137 Mr. Thornberry............................................... 135 Mr. Turner................................................... 140 Mr. Veasey................................................... 147 FISCAL YEAR 2014 NAVY, MARINE CORPS AND AIR FORCE COMBAT AVIATION PROGRAMS ---------- House of Representatives, Committee on Armed Services, Subcommittee on Tactical Air and Land Forces, Washington, DC, Wednesday, April 17, 2013. The subcommittee met, pursuant to call, at 2:24 p.m., in room 2212, Rayburn House Office Building, Hon. Michael R. Turner (chairman of the subcommittee) presiding. OPENING STATEMENT OF HON. MICHAEL R. TURNER, A REPRESENTATIVE FROM OHIO, CHAIRMAN, SUBCOMMITTEE ON TACTICAL AIR AND LAND FORCES Mr. Turner. The hearing will come to order. The subcommittee meets today to receive testimony on the Navy, Marine Corps and Air Force budget requests for the combat aircraft programs for fiscal year 2014. We welcome our distinguished panel of witnesses. We have Mr. Michael Sullivan, Director of Acquisitions and Sourcing in Government Accountability Office. We have Vice Admiral W.M. Skinner, Principal Military Deputy of the Assistant Secretary of the Navy, Research, Development and Acquisition. We have Lieutenant General Robert Ron Schmidle, Deputy Commandant of the Marine Corps for Aviation. And we have Rear Admiral Bill Moran, Director of the Air War Division of the U.S. Navy. We have Lieutenant General Burton Field, Air Force Deputy Chief of Staff, Operations, Plans and Requirements. And Lieutenant General Charles Davis, Military Deputy, Office of the Assistant Secretary of the Air Force for Acquisition. All of our witnesses today have very short titles. I thank you for your service and look forward to your testimony today. We have a number of issues to cover today, but my opening remarks will focus on the F-35 [Lightning II Joint Strike Fighter] and Strike Fighter inventories. The F-35, a fifth- generation fighter, is required to achieve the effects necessary to win an integrated anti-access and area-denial environment. So I was encouraged to note that the F-35 program was fully funded in both the research and development and the procurement accounts for fiscal year 2014, as well as the future years defense program. The F-35 did well in testing last year, but with about one-third of flight testing completed, much testing remains to demonstrate and verify its performance. Going forward, F-35 software development is of particular concern. While software management practices have improved, significant challenges lie ahead as software integration and testing continue to lag behind plans. This is an area that the subcommittee continues to watch to ensure that the final software block of the development phase is completely on schedule. While the capability of the F-35 is needed for the future, the Air Force, Navy, and Marine Corps cannot ignore the modernization and life-extension upgrades for their legacy fleets of AV-8Bs [Harrier II vertical/short takeoff and landing (V/STOL) ground-attack aircraft], F/A-18s [Hornet fighter jet], A-10s [Thunderbolt II close air support aircraft], F-15s [Eagle fighter jet], and F-16s [Fighting Falcon fighter jet]. These critical upgrades are required to maintain the capability and capacity necessary to execute the national military strategy. I was encouraged to note that the Navy's Strike Fighter shortfall was reduced from 56 last year to 18 this year as a result of increased F/A-18E/F [Super Hornet fighter jet] procurement and expected lower utilization rates of legacy fighters. Based on the vague defense strategic planning guidance announced last year, the Air Force, for a second year in a row, is not reporting a projected Strike Fighter shortfall through 2030. These projections are based on our legacy fleets receiving the modifications made during depot availabilities. Just last week, the Air Force announced that it planned to ground 17 combat squadrons for the rest of the fiscal year because the funds required to operate and maintain these squadrons are no longer available due to sequestration. We don't yet know what the long-term effects sequestration will have on Navy, Marine Corps, and Air Force Strike Fighter modernization to include inventories. If these arbitrary cuts also affect Air Force and Navy's ability to make the necessary capability and life extension modifications, decreased Strike Fighter inventories could result in risks that I am not willing to accept. Before we begin, I would like to welcome all of our panel members. And I would like to say that as we do have our discussions today, I would appreciate your information and insight as to the effects of sequestration. Now, as I am fond in saying in these hearings, I voted against this mess, and I voted against this mess because I believed it would happen, but one of the ways that we have been, I think, shackled in this is that the Department of Defense had been previously restrained of telling the American public and even this committee and the subcommittees what the effects of sequestration would be. And so since we had this long term of sequestration without detailed substance to its effects, we have been inhibited in our ability, as the DOD [Department of Defense] has, to advocate for sequestration to be set aside. Just yesterday we had a hearing where the commandant of the Marine Corps indicated that from our traditional military policy objectives of being able to win in two major combat areas, that even the new strategy that the President's articulated of merely one major contingency operation, that the Marine Corps would find it difficult to prevail, and even won. We need to have that information so we can effectively make the argument that it should be offset. And I think today's hearing, regardless of the question that you are asked, if you could give us some information, insight as to what you foresee sequestration affecting, I would appreciate it. When we talked to the Navy's and Marine Corps' budget yesterday, they acknowledged that the budget they delivered did not take into consideration sequestration. So the follow-on questions had to address that. I would appreciate today if you would just, on your own, digress into the effects of sequestration as it would affect your answer if it is continued, because we need that information to offset it. We are going to then begin with our panel members unless my ranking member would like to make a comment, and we could always return back to her statement if she would like. With that, we will begin, then, with--would you like to make a comment or would you like to return to a comment later? STATEMENT OF HON. LORETTA SANCHEZ, A REPRESENTATIVE FROM CALIFORNIA, RANKING MEMBER, SUBCOMMITTEE ON TACTICAL AIR AND LAND FORCES Ms. Sanchez. I would like to just keep this short and say that we are very interested in the budget process. And I will submit my opening statement for the record so that we can hear our panel. [The prepared statement of Ms. Sanchez can be found in the Appendix on page 37.] Mr. Turner. Excellent. I appreciate the dedication of my ranking member and her bipartisan spirit also. All right. Turning to Michael Sullivan, if you would begin. STATEMENT OF MICHAEL J. SULLIVAN, DIRECTOR OF ACQUISITION AND SOURCING, U.S. GOVERNMENT ACCOUNTABILITY OFFICE Mr. Sullivan. Thank you, Mr. Chairman, Ms. Sanchez, members of the committee. I am pleased to be here today to discuss the status of the F-35 Lightning II Fighter this afternoon. My remarks and the statement that I have put forward is limited to the F-35 and doesn't go into more of the other general tactical air issues. I have submitted a written statement for the record, and I would like to take a few minutes now to hit the high points of our work on this program regarding where it has been, where it is now, and what may lie ahead. The F-35 acquisition program began in 2001 with an estimated cost of about $231 billion. And today, 12 years later, the program is estimated to cost about $390 billion. The average cost to buy a single F-35 aircraft since the beginning in 2001 has about doubled from an estimated $69 million in 2001 to $137 million today. Needless to say, the program had significant risk when it started, and that risk has translated into this cost growth. There are many reasons for that risk, but chief among them are poorly understood requirements at the beginning, and overlapping schedules for testing and buying F-35s. In the past 2 years, the program appears to have stabilized to some degree. Since 2010, when the program had a Nunn-McCurdy breach, the Department of Defense and all the Services came in to the program and restructured it and did some very good things, in our opinion, about adding reasonable costs and limiting requirements and adding schedule and some manpower to the program. So since then, since that restructuring took place, the program has now delivered all 14 developmental aircraft. They have all been delivered to the test program. More test flights are taking place on a daily basis on the program. Procurement aircraft deliveries, while still not meeting original delivery schedules from the original program, have picked up and have closed the schedule gap significantly, so there is a lot more aircraft being delivered today. And there is additional progress being made in one of the very high risk areas, which is software management. At this point in time, the Government has invested about $28 billion to buy 121 aircraft, and development flight testing is now about a third complete. This overlap between testing and production represents additional cost, in that design changes to the aircraft that come from flight testing must be reworked into the aircraft already produced. So there are retrofit costs. To date, the cost of that rework on the first 58 aircraft that have come off the production line is about $900 million. That adds about $15.5 million to the cost of each of these 58 aircraft. About $830 million more of future rework is planned as a result of concurrent testing and production. The program still has tremendous challenges ahead, even though it seems to have stabilized in the last couple of years. For example, there are still significant risks with the helmet- mounted display system, the software development to deliver Block 3 capability, which is the full-up integrated warfighting capability for the aircraft, still has a long way to go, and there is continuing overlap between flight test and production. Most importantly, probably, the future annual funding needs of the program represent the most significant risks moving forward. This program will require about $12 billion on average over the next 15 to 20 years, and that is quite a bit of money for the Congress to have to appropriate. The imperative now is to demonstrate that the F-35 program can effectively perform against costs and schedule targets in the new baseline and deliver on the promises made. Until then, it will continue to be difficult for the United States and all of our international partners, there are eight international partners, to plan, prioritize and budget for the future, retire aging aircraft, as we will hear more about today, and establish basing plans with a support infrastructure. Achieving affordability and annual funding requirements and in addition to that, to life-cycle operating and support costs will, in large part, determine how many aircrafts a warfighter can ultimately acquire, sustain, and have available for combat. That is the end of my statement. Thank you very much. I will take questions when the time comes. [The prepared statement of Mr. Sullivan can be found in the Appendix on page 39.] Mr. Turner. Thank you, Mr. Sullivan. Turning to Admiral Skinner. STATEMENTS OF VADM W. MARK SKINNER, USN, PRINCIPAL MILITARY DEPUTY TO THE ASSISTANT SECRETARY OF THE NAVY (RESEARCH, DEVELOPMENT, AND ACQUISITION); LTGEN ROBERT E. SCHMIDLE, USMC, DEPUTY COMMANDANT OF THE MARINE CORPS FOR AVIATION; AND RADM BILL MORAN, USN, DIRECTOR OF THE AIR WARFARE DIVISION Admiral Skinner. Chairman Turner, Ranking Member Sanchez, distinguished members of the subcommittee, thanks for the opportunity to appear before you today to discuss the Department of the Navy's aviation programs. Joining me today are Lieutenant General Robert Schmidle, Deputy Commandant for Marine Aviation, and Rear Admiral Bill Moran, Director of Air Warfare for the United States Navy. On behalf of us all, I thank you and all members for your steadfast support to our soldiers, sailors, airmen, marines, and coastguardsmen who are meeting the Nation's commitments around the world. With the permission of the subcommittee, I propose to provide a brief statement and submit a separate formal statement for the record. The Navy Marine Corps team is forward-deployed and forward- engaged, performing missions around the globe. Today naval aviation components are in the skies of Afghanistan protecting troops and Afghan civilians on the ground, providing intelligence, surveillance, and reconnaissance off the coast of Korea, over the Sea of Japan, the Persian Gulf, and the Horn of Africa, and they are providing maritime security along the world's vital sea lanes from which the United States and our trading partner economies can prosper, conducting antipiracy and drug interdiction patrols, and supporting global partnerships to strengthen ties to our allies and friends, all the while standing as a force of deterrence to those who would do harm to our Nation or our Nation's interests. And while our sailors and marines are doing all of this and more, they are also training for their next deployment or the next operation. In support of the defense strategic guidance, we are developing and recapitalizing to support the President and the Secretary of Defense's strategic priorities to rebalance to the Pacific to ensure we provide the capability and the capacity to maintain an important presence in this region today and for the foreseeable future. We continue to assess and reshape our naval aviation plan to reflect the priorities of this defense strategy with the reality of fact-of-life, topline reductions consistent with the Budget Control Act of 2011. As such, this year's aviation and strike weapons plan strikes a balance between capacity, capability, affordability, and the maintainability of the industrial base. To fulfill our Nation's commitments and strategic priorities, the Department of the Navy's 2014 aviation budget request includes funding for research and development and procurement of 165 aircraft, and 3,505 strike weapons. Selected specific items include continued investment in fifth-generation F-35 Joint Strike Fighter aircraft to provide multimission capability across the full spectrum of conflict; new carrier-based unmanned air system capabilities; the CH-53K [Super Stallion cargo helicopter] heavy-lift aircraft; and all- weather moving target capability strike weapons, including procurement of EA-18G [Growler] electronic attack aircraft, P8 [Poseidon] multimission maritime aircraft, the MV-22 [Osprey] assault aircraft, tactical Tomahawk cruise missiles, and capability improvements to the F/A-18 Super Hornets, and air-to-air missiles, and modernization of our attack and utility rotary wing aircraft. We have important work to do to close out your capability gaps and risks. In doing so, however, we are working to deliver the full capability and capacity that our warfighter needs in an affordable manner. The Secretary of the Navy remains strongly committed to investing in the required aviation and strike weapons programs to support our national priorities, and we have placed that commitment to work over the last year with the delivery of more than 200 tactical rotary wing and unmanned aircraft, but we recognize that it is not possible to simply buy our way to recapitalizing our force. To achieve our recapitalization goals, we are continually focusing on improving affordability in all naval aviation programs. For example, we are increasing implementation of new cost-reduction initiatives, like competition and early standup of depot maintenance. We are striving to use multiyear procurement strategies, strengthening an acquisition workforce culture to ensure that we provide the best return on investment and be the best possible stewards of the taxpayers' money. Mr. Chairman, the strength of our naval aviation force is also closely coupled with our naval aviation industrial base. Over and over again, naval aviation has shown to be a critical element of the Nation's global reach, global presence, and when called upon, the tip of the Nation's interdiction force. We recognize that we have been successful in executing our duties, not only because of our sailors and marines, but because of our civilian workforce and the aviation industrial base. However, one of the key challenges to our future aviation programs, and therefore to elements of that same industrial base, is the increasing cost of development and procurement. To this end, the Department of the Navy is investing in design for affordability, requiring the use of open architecture systems where applicable, employing fixed price contracts to control cost at production, and limiting disruptive changes to contracts. Ultimately we recognize that as we balance requirements, manage the increasing pressure to our topline, and factor in industrial base considerations, it is ever more important that our naval aviation programs closely align with not only with the priorities outlined in the new defense strategy, but the Government and industry continues to work together to increase efficiencies and improve affordability to support current force and help us build the future force of naval aviation. Mr. Chairman, thank you once again for the opportunity to appear before your subcommittee today, and me and my colleagues look forward to answering your questions. [The joint prepared statement of Admiral Skinner, General Schmidle, and Admiral Moran can be found in the Appendix on page 57.] Mr. Turner. Great. Thank you. We will turn next to General Davis for his statement. And for those of you who are not speaking about the written statements, you, of course, will be responding to questions. I will close the hearing, also asking if there are any closing remarks, so if as the hearing is proceeding, if there are things that you think of that you would like to add, at the end, you will have an opportunity to provide those for the record. General Davis. STATEMENT OF LT GEN CHARLES R. DAVIS, USAF, MILITARY DEPUTY, OFFICE OF THE ASSISTANT SECRETARY OF THE AIR FORCE FOR ACQUISITION; AND LT GEN BURT FIELD, USAF, DEPUTY CHIEF OF STAFF, OPERATIONS, PLANS AND REQUIREMENTS General Davis. Chairman Turner, Ranking Member Sanchez, and members for the subcommittee, thank you for very much for this opportunity. And I stand before you today reminding everybody that our Air Force proudly provides you the ability--your Air Force provides you the ability to surveil and if required, strike any spot on this planet if required at any time, while defending our borders and protecting our allies, and we are very much committed to that mission. Although as we look in this environment of fiscal uncertainty, our focus remains on our five core missions: air and space superiority; intelligence, surveillance and reconnaissance; rapid global mobility; global strike; command and control. And that is the means by which we deliver global reach, global power, and global vigilance. In 2012, your Air Force flew global precision tac-aircraft that accomplished over 28,000 sorties and 41,000 hours in support of overseas contingency operations. In support of these operations, our intelligence, surveillance, and reconnaissance airmen provided intelligence that shaped combat plans for 33 named operations, enabling the removal of 700 enemy combatants from the fight, and built awareness for our coalition forces and over 250 troops in contact engagements. Our special operations personnel executed over 1,600 strike missions and 7,700 specialized mobility missions. On the home front, Air Force fighters, air refuelers and early warning aircraft have flown almost 64,000 total sorties supporting Operation Noble Eagle since September 11, 2001. As a testament to the capability of our total force, the National Guard and Air Reserve have flown more than 65 percent of these Operation Noble Eagle sorties, with the Air National Guard currently operating 17 of our 18 airspace control alert sites across the United States. Our fiscal year 2014 budget attempts to--our request attempts to retain the critical force structure and maintains the Air Force ability to rapidly respond to global demands. It is involved quite intricately from a concerted effort to balance risk, modernization, and force structure reductions with a commitment to readiness and taking care of our people. There is still a considerable uncertainty in the fiscal year 2014 Air Force topline funding level. The fiscal year 2014 budget will not reverse the damage done by the fiscal year 2013 sequestration that Chairman Turner alluded to. Recovering and warfighting capability, improving readiness requires at least a reduction in OPSTEMPO [Operations Tempo] or additional resources or a combination of the both. Now, recently in their posture hearing, our Chief and Secretary did a good job basically going over the very specific impacts of sequestration. I will cover them at the top level, but it is a reminder that reduced flying hours have and will cause harm to units that have had to cease flying operations and may result in severe rapid and long-term unit combat readiness degradations. Cuts to Air Force modernization programs will, over time, cost more taxpayer dollars to rectify the contract restructures and program inefficiencies, the increase in unit cost and the delay in delivery of capabilities to the warfighter. In spite of these ongoing budget concerns, however, many of our fighters and weapons do see some enhancements as a result of the fiscal year 2014 budget. These include the A-10, F-15, F-16, F-22 [Raptor fighter jet], and AMRAAM [Advanced Medium- Range Air-to-Air Missile]. For example, we will modernize a portion of our F-16 and F-15 floats with advanced radars, countermeasures and situational awareness. But I have to caution you on how we use the term ``modernization'' and ``investment accounts'' in this context. The systems that we are putting on these weapons and weapons systems are, in many ways, just bringing in the capabilities and technologies that have been developed as much as 10 years ago, and in some cases, they have been fielded that long. So we are really just bringing a lot of these airplanes as they currently exist up to the current state of the art of capability to match current threats with very little growth in the ability to handle future demands. More troubling to me is that roughly half of our modernization budget today has to go to maintain just the current performance levels of our fighter fleet and really adds no new combat capability. Going forward, I have to worry about what the budgets and the outyear budget numbers will do to our ability to continue to ramp up our production on F-35 and replace some of these aging airplanes. But as we navigate the uncertain way ahead to mitigate risk in critical areas like readiness, force structure modernization, we will continue to work with Congress to develop executable options. Personally, I worry that unresolved budget issues will threaten our ability to recapitalize our aging fighter and bomber fleets. I think we all need to be mindful of one fact, and that is that one nation that plays very prominently in our defense strategy recently flew two new stealth aircraft within a 22-month period. In robust defense budget times, this took us over 9 years. Nonetheless, our objectives are to remain as steady as possible today and set a course toward full-spectrum readiness, preserve a highly responsive and scalable force, and overcome force structure modernization challenges in order that we continue to have your Air Force provide the Nation the world's most capable air power now and in the future. And I do look forward to your questions. [The joint prepared statement of General Davis and General Field can be found in the Appendix on page 102.] Mr. Turner. Thank you, General. I appreciate that very, very frank statement of--as we look to this issue in this hearing, we are not merely doing oversight of the status of the expenditure programs. We really are looking what had always been identified as a critical path to both maintain current capabilities and obtain future capabilities to respond to emerging threats and capabilities of adversaries, and the funding, both in sequestration and in reduced budgets, is disruptive of that. And I think your clarity that you are providing us is very important. And I am going to turn, General Schmidle, to you first. In your written testimony, page 8, there is a discussion of--the words are, the Marine Corps may experience elevated operational risk in 2020 as the predicted shortfalls come to fruition. And you identify that the Marine Corps may experience elevated operational risk in the 2020s if the predicted Strike Fighter shortfall comes to fruition. Please describe why you believe the Marine Corps faces this elevated operational risk and what the Department of the Navy is doing to mitigate those risks? And also, you know, as I was just saying, this doesn't just fall on the Navy. You are here in front of us as to what we need to be doing and what the Administration needs to be doing. In part, this hearing is to establish that record to show that we are at an operational risk and what needs to be done to ensure that we don't have a shortfall as you described. General. General Schmidle. So chairman, if I could, the shortfall in the outyears, in the Strike Fighter shortfall is an inventory shortfall. What is happening to us today, though, that is much closer is the shortfall that we have in terms of the numbers of airplanes that we actually have available for training on the flightline today. So as an example, in the F/A-18 community, we have 257 airplanes in the Marine Corps. One hundred and two of those airplanes are what is called out-of-reporting status, in other words, they don't exist on the flightline. And with the advent of sequestration now, we are not going to be able to induct the numbers of airplanes in the third and fourth quarter through the depot so that we can do the high flight hour inspections so that we can keep the airplanes flying. And what that is going to translate to is beginning in January of 2014, our nondeployed squadrons will now have as few as six airplanes available for training on the flightline. And what that means, of course, is obvious: The squadrons that are forward and that are going forward are going to have a full complement of airplanes, but the squadrons that are home and training will have fewer jets. And so you are either going to train pilots to a lower standard or you are going to overfly those airplanes, put more hours on them to train people, and then that is going to drive them into the high flight hour inspections again. Now, this year we have sufficient money to do the high flight hour inspections at 8,000 hours in order to get our F/A- 18s, our legacy fleet out to 10,000 hours, but any disruption in that, for instance, if the full effects of sequestration, what that will do is it slows down the throughput through the depot to do those inspections, and that will cause us to have less airplanes on the ramp when we get ready to--as we go forward in terms of trying to train. So the inventory shortfall that we mentioned in the statement in the outyears is clearly a challenge, but in the near term, we actually have a more near-term challenge, because we are trying to get our legacy F/A-18s through to the JSF, to the Joint Strike Fighter, transition as we go forward. We have similar problems with the AV-8 Harrier. It is not quite as significant. We are now going to fly that airplane to 2030. We originally had planned on the end of its service life being in 2012. So we are having to--that airframe itself is in pretty good shape, but we are going to have to do modifications to the airplane, avionics modifications in order for the airplane to remain survivable and relevant as we go forward. Mr. Turner. Thank you, General. General Davis, you mentioned in your written testimony that depot delays will require the grounding of some of the affected aircraft and that sequestration cuts to Air Force modernization will impact every one of the Air Force's investment programs, creating inefficiencies, raising unit costs, and delaying delivery of value capabilities to warfighters in the field. You also note that the fiscal year 2014 budget request does not enable full recovery of warfighting capability, capacity and readiness, and that additional resources will be required. What effects will sequestration have in the current fiscal year in the Air Force inventory, and what additional resources will be needed in fiscal year 2014 to make the fighter fleet whole again? General Davis. Mr. Chairman, I will tell you that we are just beginning to try to figure out the effects of what is going to be imposed on our depots. We already know that we are about 60 aircraft and 30 engine inductions behind in that process. It is a mix across all the airframes, not just the fighters. Trying to buy that back is going to take more than a year. So those airframes that will be affected will not come back in 2014. I mean, the workforce, the throughput, the capability just doesn't exist, so it will have to come back over time. When we get through this, I would like to just let my partner, General Field, here talk a little bit about how they will attempt to do something with the readiness in the fighter squadrons, but specifically, as we talk about in the sequestration impacts, while we were able to put significant funds against buying radars for F-15 Cs and Es, we had to decrease the quantities that we bought those particular radars at. That is increasing the unit cost. So that means those programs stretch out over at least a couple of years of increase to finish the programs on those two airplanes. As we look at what happens, we will probably delay the start of the F-16 Combat Avionics Performance Enhancement System, the CAPES program, as we look and see how much money we have to start that and how quickly we can ramp up the replacement of the radars on the F-16s. One thing that is very troubling is that we know that some portion of our fiscal year 2013 buy of F-35s will be cut. It is 3 to 5 airplanes. We don't know. It will depend on negotiation status, it will depend on a lot of things as it plays out. So that right there starts, you know, at about a third of a squadron's worth of modernization that will be pushed off at least another year, and we don't know exactly what 2014 will go from there. So there is a spreading cut across all of our programs in terms of the modernization. And I will let General Field talk about what it takes just to buy back a little bit of that combat capability on the operational squadrons. General Field. Thank you. Based on the fiscal constraints that we are facing in fiscal year 2013, we have just decided to stop flying up to 13 combat Air Force squadrons. These are squadrons that are coded to go out and fight for the Nation's wars or be a presence across the globe as required. The reason that we ended up in that position is that we prioritized our commitments. We started with the commitments to Afghanistan; we looked at commander requirements, again starting with CENTCOM [U.S. Central Command] and PACOM [U.S. Pacific Command]. We tried to keep fully funded the forces in Korea, and as much as possible in Japan. And then we looked at all the commitments on a short notice to both of those theaters. We also maintained our commitment to support the French as they help the government of Mali in Africa. And then we are looking to maintain our training pipeline for our new and senior air crews. All of those are a big balancing act, and we are trying to prevent an unrecoverable situation in the outyears. The upshot of that is that we ended up essentially running out of money, and so that is why we had to stop flying those 13 air squadrons. Some of those squadrons are currently deployed, either in Afghanistan or somewhere else around the globe. And they will come back. Four of them come back and they will stop flying as soon as they return home. The requirement to regain that readiness after a 6-months grounding is a little bit unknown, because we are definitely in uncharted waters. We have never before, in the middle of a fiscal year, stopped flying a third of our combat air forces because of some kind of money issue. So we will have a lot of work to do and catching up to do. It will take essentially a very dedicated and focused effort to come up with the right training plan to recover that readiness, it will take time and it will take resources. I promise you that we will put the focused effort into the recapitalization of that readiness, but we are going to need some assistance both within the Department of Defense and without on the time and the resources. Mr. Turner. Gentlemen, before I go into my last very quick question and hand it over to my ranking member, I just wanted to tell you that all of us on Capitol Hill are very aware of the personal effects that sequestration has. As we are listening to the effects on what are real and necessary capabilities that they are diminished, and we heard that in all the hearings. I have heard from General Wolfenbarger of Materiel Command at Wright-Patterson Air Force Base that frequently that the men and women who are in uniform and the civilian employees are not aware enough of the fact that their Members of Congress understand that they have kids in college, they have house payments to make, they have vacations that are being cancelled as a result of the effects of sequestration. So even as we talk about the programs today, I want you to know. And please tell those under your command and who you work with, that Congress is very aware of the personal effects. And I have one real quick question and I will hand it over to my ranking member, and that is, you know, you just told us the real and necessary capabilities of each of the areas of your operations will be affected by sequestration. There, I think, is a misnomer in Congress, and that is there is a belief that sequestration will actually result in savings, but the message I was hearing from each of you today and as evident in your written statements is that especially in the area of acquisitions, as we have decreased funding, we are actually probably going to, on the other side, have increased costs to achieve what are real and necessary modernizations or sustainment of capability. From your review of sequestration, I am going to ask, you know, all five of our Generals and Admirals today, could you please report, do you believe in what you are currently seeing in the implementation of sequestration if you assess that these reduced funding effects from sequestration will result in higher costs in the future. General. General Davis. Sir, they absolutely will. I mean, you just go back to the depot and the expense of trying to buy back those airplanes that we have to put back on the ramp, the price of that will go up, we will have to lay on additional workforce, additional something to get there. Every one of these items that I mentioned that we are not going to buy for the airplanes this year, whether it is an F-35 or radar for the F-15, when we decrease just one or two out of a lot buy, every unit in that lot goes up; a very inefficient price tag. So I am sure we could take for the record and get you an answer back if we cut three or four or five or whatever the units are for F-35s coming out, what that will increase the unit lots, each airplane in that unit as we go from there. And I look at our programs, and we ask our programs to go through multiple restructuring drills as we tried to guess what the 2013 number was going to be and start preparing what the outyear numbers will be, the inefficiencies of the program is not being effectively managed and executed while they are out doing drills. I worry about that, and that is an unaccounted cost we haven't seen yet. Mr. Turner. General Field. General Field. Sir, I agree with General Davis. I think it will be increased cost. In addition, in terms of readiness, it will be either increased cost or increased time if we don't increase the cost to get back to the readiness levels that we would like. You have heard from both sides of me, from General Davis, General Schmidle, that the depot is a--in their working depots are going to be a big factor of that. We think that it is going to take more sorties to regain that readiness because of the 6 months of standing down from flying, and that is all dependent upon aircraft availability. And aircraft availability is dependent on how well the depots produce spare parts and the inspections required for our aircraft. And if that is reduced, then that backlog will just continue to grow. Mr. Turner. Thank you. Admiral Moran. And as you are moving to answer, please take General Davis's offer of providing additional record information for the record when you actually get that data as a standing question from our subcommittee that I would like each of you to undertake. Admiral. Admiral Moran. Yes, sir. Right. I completely agree with my colleagues from the Air Force. And I would only add that since sequestration spreads itself across multiple lines, in a test and--in the test programs, we are likely to see the effect of that to stretch out tests, which means delivery of capability later, which means you have got to carry your legacy platforms longer. So there is a multiple effect that occurs over time. That is all I have, sir. Mr. Turner. Thank you. General Schmidle. General Schmidle. For the record, just two quick things to pile on real quick. So with regard to the depot, one of the other concerns there, too, is the civilian workforce. Of course, most of the work that is being done, for instance on our airplanes is being done on the second and third shift, and those are the kinds of folks that there is discussion about-- you know, about the effect of sequestration on them. And the other point on the readiness piece, so you don't fall off the cliff in readiness overnight. It is sort of insidious. As the money starts to dry up and you become less and less ready and as we start to climb back out of that again, as General Field said, it is going to take us a while. And we are not quite sure how long, because, again, we have never been in a position where we have effectively gone down to those lower levels of readiness and then had to ramp back up again. Mr. Turner. Thank you. Admiral Skinner. Admiral Skinner. Mr. Chairman, I think it will certainly add inefficiency into the way we procure our aircraft. You know, the CNO [Chief of Naval Operations] testified yesterday that it is going to cost us $6.1 billion in Navy investment accounts, and certainly that is going to cost us some tails that we will probably have to move towards the end of the production line. My folks got their controls last week. They are going through it now and looking at how they are going to manage their programs, but certainly, this is the third time we have replanned 2013. Just the inefficiency of doing that is going to impact the cost, but I would agree with my colleagues, and that it will certainly increase our costs across the board. Mr. Turner. Well, Mr. Sullivan, my fellow Ohioan here, you might be prepared that you are probably going to get a request from our subcommittee to look at JAO [Joint Air Operations] capturing these increased costs from sequestration. To my ranking member, Ms. Sanchez. Ms. Sanchez. Thank you, Mr. Chairman. Thank you, gentlemen, for your service to our country and for being before us today. I have a lot of questions on the F-35, because Mr. Turner and I have been taking a look pretty heavily at the F-35, but I think I want to start with Global Hawk [RQ-4 high-altitude unmanned surveillance aircraft]. I was pleased to see that the Air Force, General Davis, followed the fiscal year 2014 NDAA [National Defense Authorization Act] that requires continued funding for Global Hawk Block 30 operations, but it is unclear to me how the Air Force intends to follow the requirements of the fiscal year 2014 defense appropriations bill which directs the Air Force to use some old fiscal year 2012 funding, that is about $300 million or so, to procure three more Global Hawk Block 30 aircraft. How is the Air Force planning to address this issue? If buying three new aircraft doesn't make sense, is there a way to use it for upgrades or some other piece of Global Hawk operation aircraft? For example, we are told that the Global Hawk doesn't work well in poor weather. Is there some fix or upgrade or something that somebody's working on with respect to that? General Davis. Yes, ma'am. I think our Secretary said in his hearing that this has been a difficult discussion with Congress and he realizes that a lot of the Congress does not agree with the Air Force position that we have no firm requirements for the Global Hawk Block 30 airplanes past the end of the calendar year 2014, and that he fully intends to pursue avenues available to him to try to request to allow the United States Air Force to use that money for much higher priorities than Global Hawk Block 30. And we still have to work through that process and that will probably be a difficult conversation we have yet to go. So the premise that some of those dollars could be used to improve the capability of the airplane may be true, but I think our Air Force would come back and tell you that we have a few other higher priorities that we need to fix if we have the opportunity of putting that money against such things as bringing combat squadrons back up to combat readiness status or buying back some of the F-35 capability we lost. And we understand that that is going to be at the congressional discretion, but that is kind of our position right now. Ms. Sanchez. Okay. Thank you for that. With respect to the F-35, when we were over with the contractor recently--well, let me begin by just relooking at some of these numbers. Mr. Sullivan, you said that in the beginning, we thought that the program would cost us $231 billion, but 12 years later it has cost us, or the estimate is $390 billion? Mr. Sullivan. Yes, ma'am. Ms. Sanchez. Okay. So we went from thinking that one airplane more or less would cost us about $69 million and now it is at $137 million on average, because---- Mr. Sullivan. That is the average across---- Ms. Sanchez. Depending on the lot and how it comes out, et cetera. Okay. So I gather that that is about a $129 billion difference just in 12 years. Am I correct on my math there? Mr. Sullivan. Yes. Ms. Sanchez. Okay. Thank you. So we were over and talking to the contractor and it seems to me--I mean, I understand about fixed costs and variable costs. And their comment to us was that as we cut back on the number of planes that we are asking them to produce in a year or this year or next fiscal year, whatever was projected, that obviously the cost becomes higher per unit on that. So we are really not saving as much as we thought we would or as some in the Congress thought the sequestration thing would do. And they also felt that as we pulled back because of sequestration and other issues and lowered the amount of aircraft that we created or have produced, that our allies, who are also on the order block to grab some of that, are also pulling back. Is that correct from your understanding and how you see the things going on with the F-35? Who is procuring? Who wants to answer that? General Davis. Well, to answer the first of part of your question, ma'am, we obviously know that there will be a cost increase and it will affect the rest of our budget. We know our European partners, at least the ones that are buying the CTOL [conventional take-off and landing] airplanes, the United States Air Force are very closely watching the moves we make and will be very interested to see what the impacts to their unit cost will be when we negotiate the reduced buys as a result of 2013. And then, if we can recover those buys in 2014 back up to at least to the 19 that the President requests, then we will see how that plays out, but there will be an ongoing effect from 2013 to 2014. So I do know that that is playing very heavily in their decisions, and they are very much and in a lot of the same situations we are in terms of having challenges with their budgets. So from that aspect, that is my input. Admiral Skinner. Congresswoman, I would also say that there is a cost to concurrency. As we dialed back our production requests, it is because there was a certain amount of concurrency that we would have to take the jets that we were buying, and in some future time, we would have to go back and modify those jets and bring them up. So when we start talking about as we dial back our production numbers and the cost per unit goes up, if we buy them later in the buy, then our concurrency costs go down. So we have to look at the entire business case there with regards to balancing the cost of concurrency against the cost of dialing down our production lots and having an increased unit cost. To the---- Ms. Sanchez. So are you trying to say that may--I understand the fact that we were going to buy some and we would go back and put in the fixes that we needed, or if we weren't all the way up to developing, but as we went on, we developed actually what we needed, we would come back and fix. So are you saying let's just wait and wait this out till we have the right fixes to everything and then purchase? Admiral Skinner. I think what we have seen in the production numbers that are currently in the budget, that is exactly what we are doing. We have dialed back some of our production numbers so that we can take a look and fix some of these issues. We have also, I believe, after--in future contracts with the contractor, we will share the cost of concurrency, so there is an incentive to the contractor to reduce these issues in the jets as soon as possible, but, yes, exactly. Ms. Sanchez. And my understanding is also that these foreign partners that we have, well, they are sort of seeing that same cost line, and they are saying, why don't we wait until the end, because the unit is going to be so much less expensive for us than for now. So it is like, who is going to go first? Is that what you are seeing also from our--we don't have--do we have someone that is working with the international groups? Mr. Sullivan. Mr. Sullivan. Yeah. I just wanted to say that there is--the program, when the original baseline of the program would have had 1,500 F-35s under contract by now. Ms. Sanchez. And how many do we have? Mr. Sullivan. And what we have now is somewhere around a little bit more than 350; 365, I believe. And the reason that that happened was because of the problems that they had in designing the aircraft. They had weight issues early, they had a lot of problems---- Ms. Sanchez. Right. Mr. Sullivan. Very slow production. Ms. Sanchez [continuing]. And other things, yes. Mr. Sullivan. So I think my point is that they have--you know, the program has been very slow to deliver on its own. I mean, it was a very tough climb for this program to meet the requirements. Concurrency was part of that as well. So now you have the test program, which is about a third complete, so they still have 66 percent of the test program to go, and those changes will continue to flow into aircraft that we buy. As I said in my statement, there are 58 aircraft that are built now, that have been produced, production aircraft that are being retrofit as we speak. They have projected that there will be another--I think the total cost from retrofit from the test program is going to be somewhere around $1.7 billion, and that is going to play out over the next 3 or 4 years. So right now the program itself is just now beginning to hit---- Ms. Sanchez. Its stride. Mr. Sullivan [continuing]. Its stride, and it still actually is below its original schedule for deliveries. I don't think that is, you know, a huge issue for the program now. They are beginning to hit their stride. On the other side of this, I think, is--and something that the generals and admirals really need to be concerned about is all of the--as the F-35 has been delayed and as the aircraft are slow in getting out, that is more and more cost for extending the life of their legacy aircraft. I think to date, because of delays to the F-35 program, they have had to invest as much as $8 billion in just keeping the existing legacy aircraft---- Ms. Sanchez. Right. They have got to have planes to fly. Mr. Sullivan. Yes. Ms. Sanchez. Let me ask you, Mr. Sullivan, since we are on this issue, these cost overruns or these--I don't know how we call them. There is just so much more cost---- Mr. Sullivan. Yes. Ms. Sanchez [continuing]. To it. Who--is it because we were just--we just want too much and we were pie in the sky when we made this contract, or were there physics limits to this and we should have known better? I mean, where do we--at whose feet do we lay $129 billion? And I am asking that only because I have a set of generals over here telling, oh, my God, the--you know, basically the sky is falling, because, you know, you are hollowing out what is going to be for the future, and where do we get that that money, we need to get that money, and yet we are $129 billion more than an original $231 billion. Mr. Sullivan. Yes. Well, I think on this program, and others can speak on this as well, but I think the requirements for the F-35, three variants, one that is going to take off from an aircraft carrier, one that has a short takeoff and vertical landing capability, an incredible set of requirements for one program to achieve. So I would lay most of the cost growth that you see--you know, the development costs under a cost plus contract and development have doubled, and the procurement costs as they learn more about how to really build to these requirements---- Ms. Sanchez. Come down. Mr. Sullivan [continuing]. The unit cost for the aircraft is not what they thought it was going to be. The commonality that they were hoping for in these variants was--one of the things that this program was supposed to be able to bring was, you know, maybe 50 percent or more of these three aircrafts would be common, and as they got more and more into the requirements and the technologies that would be needed to achieve these three variants, they found out that that wasn't happening, either. So it was misunderstood requirements would be the genesis of the problems that this program has encountered, I think. Ms. Sanchez. Thank you, Mr. Sullivan. I don't mean to keep going on, on this subject. If the gentlemen there have any last comments to make on this issue of the F-35 and the fact that we have eaten so much money in trying to get there, I would love to have your comments. Otherwise, you know, we are going to continue this. It is not going to be a topic that goes away. General Davis. Ma'am, just to add to---- Ms. Sanchez. Yes, General Davis. General Davis. Yes, ma'am, if I could. As was mentioned here, to extend our F-16 fleet with new radars and similar amounts of capability that was not an original program we had in our books, the Combat Avionics Performance Enhancement System for 300-plus F-16s, which is about $480 million just in development. Ms. Sanchez. And that is because you don't have the production planes off the F-35 that you thought you were going to have then? General Davis. It is because we--yes, ma'am. We had to extend the F-16 fleet to fill in that gap based on these issues that were brought up. So there is a complex set of fall-out costs that go well beyond the unit costs to the airplane as we deal with this. Ms. Sanchez. Right. Thank you. I think--thank you very much. And I think we will probably have some follow-up questions on that very issue of how much is this really costing us? Mr. Turner. And also they can put those answers in their closing statements. Mr. Cook. Mr. Cook. Thank you, Mr. Chair. A couple of questions. And I am trying to understand the CH-53K ``Kilos'' [K model] are not in the budget. Is that correct? Or the buy for it? Foreseeable future, is it? Admiral Skinner. No, sir. I think the CH-53s are in the budget. Mr. Cook. They are? Admiral Skinner. Yes, sir. Mr. Cook. Okay. Because they know the ``Echo'' [E] model is probably very--is 30 years old. Is that correct? Admiral Skinner. Yes, sir. We are in a current development program for the CH-53K that will replace the CH-53 Echo. I will let my colleague---- General Schmidle. So the 53 Kilo is currently being built right now. The first model is down in Palm Beach, Florida, but it is going to replace the 53 Kilo. And it is funded and Sikorsky has been developing the test demonstrator for us, and it is going to be able to carry 27,000 pounds 110 miles, and it is going to do for us everything--it is going to carry three times as much as the current 53 Echo that we have in the inventory. Mr. Cook. Okay. I want to back up a little bit to a comment that you briefed us yesterday on the issue of the Growlers versus the EA-6s [electronic warfare aircraft], the old Prowlers. And I was concerned about, you know, whether there might be a gap there between that. And, of course, I was led to believe that the F-35 would fill the void on that. We wouldn't need at least in the Marine Corps, the EA-6s or the Growlers, the EA-18. And maybe I am getting it wrong. And so I was a little bit concerned about that, because the EA-6, that is a very, very old platform, it is almost as old as me, but not by much. And it just seems like I want to make sure there is that crossover. Electronic warfare is something that is extremely important to me. And if you can just address that again a little bit. General Schmidle. So I could. So the plan is still to sundown, or to take out of service, the legacy EA-6Bs by 2019. What the plan is inside the Marine Corps is to leverage the capabilities that we have in F-35 in addition to other capabilities from ground and airborne platforms in a system-of- systems approach to electronic warfare. And I would offer to you that I would be happy to come and brief you or the committee in a classified setting, and I think I could do a much better job of explaining how we would intend do that. Mr. Cook. No. I am not worried about that. I am just worried about any delays in the F-35 and whether that gap there, if here we go again, the same thing we were addressing in the avionics and the F-16s because of production in the F-35 might be delayed and delayed and delayed and it is going to affect other programs. Am I wrong in interpreting it as such? General Schmidle. No. You are absolutely right. And I think that is why you have heard from everybody here at the table that we are concerned about keeping the program on schedule and about, you know, the Harriers. We were going to retire those last year, and now we are going to take them out another 17 years. So it is clearly an issue. Mr. Cook. Thank you. I yield back. Mr. Turner. Mr. McIntyre. Mr. McIntyre. Thank you very much. Thank you, gentlemen, for your service. In the short time I have, I wanted to ask Admiral Moran or Admiral Skinner, it is our understanding the Navy has a requirement for 40 squadrons to fill 10 carrier air wings with 4 squadrons each. Of the squadrons, the Navy has 35 and the Marine Corps provides 3 squadrons with an agreement to supply 5. The question is: Does the Department of the Navy have enough Strike Fighter squadrons to fill 10 carrier air wings and still meet the marine commitments, including the overseas rotations and the marine expeditionary unit deployments, or are you several squadrons short of this requirement? Admiral Moran. Sir, thank you for the question. I think the agreement that we have with the Marine Corps called TACAIR [Tactical Aviation] Integration, which you correctly termed as five additional squadrons, on any given day, the Marine Corps has a number of squadrons that they can rotate through to support our carrier air wings to fill that void. We currently have our full allotment of Navy Strike Fighter squadrons to fill out the 10 carrier wings you referred to, and with the help of the Marine Corps to fill out the gaps that we had between 35 and 40, we are able to do that and support our deployed operations. And we are programmed to, inside both the F/A-18E/F program and the F-35C program over time, to complete that 40 squadrons of Strike Fighters per 10 air wings. Mr. McIntyre. All right. The fiscal year 2014 budget request also shows the Navy eliminated 13 Super Hornets that it was supposed to buy this year, however, the tactical aviation shortfall was reduced. Can you clarify for us how you account for the reduction in aircraft and a corresponding reduction in the shortfall? What is the tactical aviation shortfall this year for 2014? Admiral Moran. Yes, sir. General Schmidle referred to it earlier. Our Strike Fighter inventory management is largely based on our ability to control how we utilize the aircraft, so it is a primary factor that determines---- Mr. McIntyre. Right. Admiral Moran [continuing]. Over time. The second part of that is our ability to inspect the airplanes out to a certain life. For legacy platforms, currently we can inspect them out to 9,000 hours. Last time when we reported the number, we were allowed to inspect only out to 8,600 hours. So that additional 400 hours per aircraft across the fleet is a significant bonus for us in terms of driving the number down or managing the number down. And, finally, Congress was kind enough to add 13 E/Fs in the budget in 2013, which drove the number further down. So while we did lose 13 in DON [Department of Navy] in 2013, Congress was kind enough to add 11 back in, so the net effect was very small. So when you add all those three things together and you put it through the machine, the Strike Fighter shortfall projected out in 2023 long-term is approaching around 18 airplanes. Mr. McIntyre. All right. Thank you for additional clarification on that. At the Navy League last week, there were presentations on both the funded flight plan of the Super Hornet and additional advancements being considered. Please tell us about the importance of the modernization program for the Super Hornets in order to take that aircraft out for another 25 years or more. You can talk some about combat avionics. Admiral Moran. Yes, sir. Much like what the Air Force described in getting their fleet up to being able to deal with threats today, our flight plan that you referred to does invest significant amount of money in bringing all of our Hornets, Block 2 Hornets, up to AESA [Active Electronically Scanned Array]-capable Hornets. And then there are several other programs that I would be happy to come back, and in a classified setting to talk to you, to walk you through those investments. They are all in the classified world, but they are very significant, they are fully funded in 2014, and there will keep our Super Hornet fleet very relevant well into the late 2020s and early 2030s. Mr. McIntyre. All right. Thank you. And, General, you mentioned about the Harrier and being extended to 2030, originally to be retired by 2013. What was the year it was first put into full service, the Harriers? General Schmidle. I am not sure of the first variant. The variant that we are flying right now, the B model, I would have to take that to get the exact year for you. [The information referred to can be found in the Appendix on page 129.] General Schmidle. I would be guessing. I would say it is in the late 1980s. Mr. McIntyre. Yeah. I was thinking it was back in the 1980s. Okay. General Schmidle. Yeah. Mr. McIntyre. Thank you. Thank you, gentlemen. Thank you, Mr. Chairman. Mr. Turner. Thank you. Due to our gavel rules, Mr. Garamendi would be next. Mr. Garamendi. Sorry, Mr. Chairman. My questions go to the ISR [Intelligence, Surveillance, and Reconnaissance] systems for both the Navy and the Air Force. It is not at all clear what the overall vision and strategy is for ISR as it relates to everything from satellites to various manned and unmanned systems, and we really need to understand that. So whatever you gentlemen might want to do for the record, or in classified to develop that information would be, I think, very helpful as we try to sort out what to do with some difference of opinion between Congress and at least the Air Force with regard to the Global Hawk and other platforms. [The information referred to can be found in the Appendix on pages 129-130.] Mr. Garamendi. My question specifically goes to Admiral Skinner and the MC4 [MQ-4C Triton surveillance unmanned aerial vehicle], the Triton system and what you called Point Mugu and I call Camp Malibu. What is the cost of building the program at Camp Malibu? Admiral Skinner. Well, sir, we went out--I think in the recent budget we went with an allocation, if I recall, of about $59 million from Military Construction to put in the appropriate modifications to the existing infrastructure at Point Mugu, sir, to host the MQ-4 Tritons at that particular air base. Mr. Garamendi. That was for a hangar? Admiral Skinner. Yes, sir. Mr. Garamendi. What about the other infrastructure, communications, housing, et cetera? Admiral Skinner. Well, housing is already there, sir. I know that I can probably take the question for the record and get you the exact cost breakdown, but if we intend to base our Tritons at that particular base, then certainly we would enhance all of that infrastructure in order to accept those airframes. [The information referred to can be found in the Appendix on page 130.] Mr. Garamendi. There is no communication infrastructure, is there, for this particular point? Admiral Skinner. Well, there is a robust communications infrastructure at Point Mugu. They have a large sea range. They have a lot of communications. Whether or not they could be modified quickly to accept the Triton, I would have to take that for the record. Mr. Garamendi. Has the Navy developed a full cost for basing this system at that location? Admiral Skinner. To my knowledge, we have, sir, but like I said, I can take it for the record and get it back to you. [The information referred to can be found in the Appendix on page 130.] Mr. Garamendi. When will it be back? Admiral Skinner. Probably within 30 days. Mr. Garamendi. We are going to be doing a national defense authorization within 30 days. That process is already under way. Admiral Skinner. We can get it as soon as possible. Mr. Garamendi. It would seem to me you would not proceed without a full cost for the program, would you? Without knowing the full cost, in which case you ought to be able to deliver it tomorrow morning. Admiral Skinner. We will go back and get it to you as soon as possible, sir. Mr. Garamendi. I will be waiting. A year ago, you were going to base this at Beale. Why did you decide to change? Admiral Moran. I can help with that. Beale was an effort to join with the Air Force in where we train crews and maintainers to operate Global Hawks across the Services. When we got the indication that the Air Force might not be going down that path, the Global Hawk path, we decided to base our BAMS [Broad Area Maritime Surveillance] out of one west coast site and one east coast site. The east coast site is still to be determined. It is either Jacksonville or Mayport, and the west coast site would be Point Mugu, as you say. Mr. Garamendi. And you did that decision with full understanding of the cost of developing Point Mugu as opposed to basing at--and I am unaware that the Air Force is abandoning Beale for the Global Hawk. Admiral Moran. I didn't mean to imply they were going to abandoned Beale. It is just the BAMS program along with the Air Force future Global Hawk was where we were going to join together, and it wasn't clear to us when we had to make decisions on where to base and put the infrastructure in that it was in time for delivery of the BAMS platform. To your earlier question on communications, the concept behind controlling BAMS is that we are going to put the controlling capability to talk to the airframe when it is forward in orbit at a collocated site at Whidbey Island as part of the P-8 BAMS integration. Where you have the manpower expertise that operate P-8s and P-3s [Orion maritime surveillance aircraft] today, that same expertise will operate the BAMS vehicles when they are forward. The only thing that we are going to be required out of Point Mugu is the launch and recovery element for the aircraft itself. So it is not as robust as I think you might believe. And we can get a much clearer answer to you on the total cost for both sites to enable the BAMS program to get under way on the west coast. [The information referred to can be found in the Appendix on page 130.] Mr. Garamendi. Please do so. Mr. Chairman, I am out of time. I have some more questions, but I will take it in the next round. Mr. Turner. Thank you. Mrs. Roby. Mrs. Roby. Thank you, Mr. Chairman, and thank you to each of our witnesses that are here today. We certainly appreciate your service to our country, but that of your families as well. So I just want to thank you for that. General Davis, you mentioned in your written testimony that all three mission areas in the air-to-surface munitions inventory are short of inventory objectives and those missions are standoff, direct attack, and penetrator munitions. Could you provide this subcommittee with a list of those munitions and amounts that could be increased to the budget request, and if authorized and appropriated, could be executed in the fiscal year 2014? General Davis. Yes, ma'am, we certainly can. Let me just kind of give you the broad brush on those. As we face these very challenging times of budget reductions it seems munitions quite often are the flexible accounts we have to go to, to balance the budget accounts. Our current, just to give you some ideas, we can buy more of our Joint Air to Surface Standoff Missiles. The production lines allow it, at least at a baseline variance. And it would probably be better if we gave you the exact objective quantities in a classified format, just so you know, but we are probably somewhere around 50 percent of that requirement right now. We are using a lot of Hellfire missiles, as you can imagine, in conjunction with the Army. We could certainly increase the quantities on those. JDAM weapons, the Joint Direct Attack Munitions, were significantly increased in '14 to fill in shortfalls of the numbers we used. But they do have a very large production line to handle all the world's demands, if you will, because a lot of customers buy that. The one thing that we can increase that is probably of critical nature right now is our AMRAAM missiles. Our subcontractors to Raytheon are in the process of trying to recover the ability to build solid rocket motors for rockets, and we are partnering with a company in Norway as well as bringing up to speed another company in the United States to be able to build those rocket motors at the rates we need to match the guidance sections at Raytheon. So we are probably at the max on our AIM-120 AMRAAM missiles. So we can give you a little bit more detail on that. But there is some capacity in some of the weapons, but not all of them. Mrs. Roby. Thank you very much. Mr. Chairman, I yield back. Mr. Turner. Thank you. I am going to go out of order for a minute and jump down to Mr. Garamendi to finish his questioning. Mr. Garamendi. Thank you, Mr. Chairman. This series of questions goes to the Air Force, similar to the questions that I placed to the Navy. What is your vision and strategy for ISR? General Davis. Sir, let me just mention back to one I know of interest to everybody, obviously it is Global Hawk. I will say this and we can bring the operational context into it. We did not do that without carefully looking at how we cover that mission with the U-2 [``Dragon Lady'' reconnaissance aircraft] and other classified platforms, and that would be one we probably need to go into some detail with in another forum, because there are systems out there that can do this in a variety of different ways. Mr. Garamendi. Overall, this whole ISR thing is confused. There have been changes. We have made changes, you have made changes, the Navy has made changes, and it is confused, and it frankly doesn't make much sense. So we need to understand what your vision--Navy, Air Force, and others--what the vision is for the Department of Defense so that we can help make rational decisions about what needs to be done and what money needs to be spent. And until that happens, I remain very, very concerned. General Davis. I do, sir. Let me put a little more context in that. We have pretty much heavily funded ISR for a very permissive environment for a couple of decades, so we are in the process now of trying to look at all the assets with our operational requirements, with our intel [intelligence] requirements, to try to rationalize a program that has operated almost totally uncontested and prepare it for a scenario where it is not going to have that freedom. So you have got to understand that we have a program that has got to do some very significant transitions over next few years in a challenging budget. We owe you those details---- Mr. Garamendi. Yes, you do. General Davis. But it is not without the context of how we got into a situation that probably in many ways does not make sense. Mr. Garamendi. I appreciate all of that, and we really do need to have that and it probably has to be in a classified briefing where we can spend time on it. You did say something, General Davis, that I found curious, and that is you have higher priorities, and then you mentioned the F-35 and one other piece of equipment. When we have that lengthy discussion, I would like to know what the higher priorities are. And we ought to also have a discussion about where these systems are likely to be used--in an environment without contention, or one with contention. For example, Africa. Not much contention there right now. So anyway, we need to have a much deeper discussion. [The information referred to can be found in the Appendix on page 130.] Mr. Garamendi. With regard to the Navy on this thing, I don't understand why you are developing a new base when, in fact, you have adequate facilities at an existing base where you were going to go. Frankly, your discussion that well, the Air Force decided to change doesn't make any sense when, in fact, if the Air Force decides to change, there would be excess capacity at Beale. So we need to get into this in great detail, and I would suggest that you not go forward until we have such great detail available to you. For example, if the Air Force is not going to use the Block 30s at Beale, then there is an excess capacity there in a hangar that is already in place with all of the infrastructure, including all of the communications in place ready to go. I will take a comment. Admiral Skinner. Well, we owe you the details, sir. I reviewed my written statement. We put $79 million in MILCON [Military Construction] in the budget for Point Mugu and Andersen Air Force Base out in Guam for putting the Triton out in the Pacific. But we owe you the detail. We have an ISR roadmap that our N26 requirements organization has put together, and we will bring that detail to you very rapidly and have that discussion. Mr. Garamendi. I would appreciate it. Mr. Chairman, thank you for your assistance on this matter. I know it is of concern to you as well as to me. Thank you, and I yield back. Mr. Turner. Thank you, Mr. Garamendi. We will turn to Mr. Veasey. Mr. Veasey. Thank you, Mr. Chairman. I wanted to ask a couple questions about the F-35 in particular, basically the capabilities. I know that with various planes and what have you that you can upgrade them by putting different radars on there, but I wanted to know particularly with everything going on in North Korea right now, and we saw the show of force in South Korea by some of the current fighters that we have, and we know everything that has happened in other parts of the world, can you discuss the importance of advanced stealth capability that the F-35 will give us in the future to meet the increase in threats around the world? And I was curious, is there anything, because I know that some people have said, no, you can upgrade certain jets that we already have in our fleet and make it just as good as the F-35. I just want to hear from you directly, is that the case? Anybody. Any of the officers. General Schmidle. If I could, to begin with we really do need to take this discussion offline in a classified setting. What I can tell you is that what the F-35 is going to bring is much more than just the one capability you mentioned. It is going to bring a capability to fuse information that is beyond anything that we have today. So that, I think, that would be best served though if we could sit down with you in another forum and walk you through all of those capabilities. Mr. Veasey. Okay. I wanted to also talk about the ramping up of the F-35. It appears that the Department has finally stabilized the production rate for the F-35 program and is committed to increasing the ramp rate beginning in 2015. I understand that the unit costs have been coming down year over year. Can you tell the committee what you expect the costs of the F-35A CTOL variant to be when the program reaches full production rate in 2018? General Davis. General Davis. We always have an interesting discussion every time you talk about the unit cost of an airplane, there are so many factors that go it, between fly-away and everything. If you look at what the last production lot was negotiated for, it was roughly at a flying cost of around $100- 105 million for the airframe, and roughly around $15-16 million for a conventional engine. I will tell you once we get to the rate in 2015, that curve continues down, but it depends on the numbers we are able to buy with our budgets that we have between now and then. So while we hope it will decrease and continue to, I couldn't begin to tell you exactly what the 18 number would be. I am sure we can get that for the record and give you the projections that the program office has for you. [The information referred to can be found in the Appendix on page 131.] Mr. Veasey. One last question I wanted to ask Admiral Moran about the additional capabilities that the F-35 could bring to the fleet and its program and the importance to the Navy's tactical aviation recapitalization effort. Admiral Moran. Yes. As our Chief testified to yesterday, the F-35 is a key component of the future air wing mix that we are planning on. And much like what you just heard from the other gentlemen here, to really fully appreciate what that capability is and how it blends in with our other assets in the carrier wing, we would have to come back and talk to you in a classified setting. We would be happy to do that. [The information referred to can be found in the Appendix on page 131.] Mr. Veasey. And one more question, if the chairman wouldn't mind. I know that one of the things that the military is looking to do is to be able to respond more quickly to situations like what happened in Benghazi. What sort of role would this particular plane be able to play in that sort of a situation and being able to respond to things like that in the future? General Schmidle. Sir, I think one of the things that we talk about when we talk about crisis response just with my colleagues to the left of right of me here with the Navy and Marine Corps team is having that capability afloat, if you will, and the variants of the F-35 that we are buying, including the B variant that the Marine Corps is buying, will be on amphibious shipping and it will be in floating in addition to the AF-35s that will be on carriers. So I think what it is going to bring to the Nation is a lot more flexibility in terms of our ability as a Nation to respond to those kinds of crises. Admiral Skinner. Sir, if you recall, we had an F-15 pilot shot down in Libya and we had assets, because of this very team we are talking about, we had assets on top of him very, very quickly and had him extracted from country very, very quickly, because we had those types of assets in amphibious shipping close into the country. And that would be the same thing with additional capability that the B could bring to the fight. Mr. Veasey. Thank you. Mr. Turner. Thank you. General Field, I know General Schmidle has done a great job of balancing that line between what we can talk about and what we can't talk about, but yet, we are in this situation where we have to paint the picture of how dire things are and that the military that we have now and that we have been able to conduct operations with will not be the military that we have at the end of sequestration and the significant budget cuts if we allow them to all go into place. So capturing and articulating that unacceptable level of risk is difficult, because the word ``risk,'' you know, we are Americans. We rise above risk. So when you say something is at risk, we say well, we always succeed. What is risk? But the reality is, is that there are significant threats out there. There are people who are developing significant capabilities that will make the whole dynamics of what General Davis was saying about we can go anywhere, deliver a force anywhere and have a full capability, that this is not just at risk, but may be a new paradigm where we are not capable of having the force that we had before. So in your statement, you described a decreased fighter force structure of 1,900 total fighter aircraft as an increased risk to carry out the national military strategy. That is a reduction from a 2,000 fighter aircraft inventory of just 2 years ago. Could you please give us an understanding of what does that risk mean? I know with General Schmidle saying there are capabilities we have to talk about offline, but this risk has to be articulated in a manner where it can be dealt with by Congress and the Air Force. What does that mean, increased risk, and what does Congress need to do about it? General. General Field. Yes, sir. This is another bit of a classified situation, so we can come back and talk to you about that, but here is how I would lay it out in this forum. Our current inventory of just fighter aircraft, if that is what we are going to talk about, is barely able to meet the requirements in a couple of the scenarios that we were planning against where requirement and demand equal one another. And when you have a situation where today, our readiness forces are, as we measure them today, about 50 percent, what we would call totally ready, that presents in a situation, in my opinion, of great risk. When you talk about sequestration and now you take nine of those fighter squadrons and you sit them on the ground, like General Schmidle said, this is not something that happens overnight. That readiness level and the proficiency of those air crew will decay over time. But within about a month and a half to 2 months, they will be out of currency in several specific events, and within about 3 to 4 to 5 months, we are going to have to do something very significant in terms of getting them back up to speed, especially in terms of this high-end threat that you alluded to. And that threat is not just confined to some of the bigger nation-states on the globe. Those guys produce very effective systems, and they sell them to other countries. So in the Middle East, for example, there are several countries that provide a significant threat to airborne assets. We can address that threat in several ways. You can address it through systems and technology and you can address it through tactics, techniques, and procedures. And you, we, all of us at this table, will address it across that whole spectrum. And whatever we have in our kit bag is what we will fight that scenario with, and we will try to do it where we minimize the cost to our forces and maximize the destruction to the enemies, and that is what we have trained to do for, on this table, our entire professional career. Now, at the end of the day, readiness is about a couple things. It is about ready to do what, and, again, like you said, at what risk? So if we were at a risk level that was pretty high before, and now we ground or stop flying nine fighter squadrons and four bomber squadrons, that is obviously going to increase the risk depending on when those forces were called upon to do something. So readiness is a balancing act that we all have to pay attention to and it is readiness now to do something and then we have to pay attention to what kind of readiness to do what will we need to be at in 2020. We have talked a little bit about how many F-35s should have been on the ramp right now, and how many new tankers should have been on the ramp right now, and I know that we owe Congresswoman Sanchez a little look at that ancillary cost of keeping legacy aircraft afloat that we hadn't planned on. And if we continue down that road and focus on readiness only for today, then we will be, 10 years from now, we will be with the same equipment, 10 years older, in a lesser readiness level than we are now. So we are going to have to take some risk, between now and 10 years from now, in terms of how much ready for today's fight versus how much ready for tomorrow's fight. Mr. Turner. Thank you. I know that this is a difficult thing to discuss in an open format, but when you have the Commandant of the Marine Corps yesterday saying that with the President's direction to take our military strategy from two major contingency operations down to one, and that with sequestration he gave us what was going to be required to undertake one and be successful and that sequestration took us below that level, I think people don't necessarily understand that when you go from two major contingency operations to one, that means if we are occupied, others, not just the United States being at risk, but others could have mischief threatening our other allies. And certainly as we look to your diminished capacity, we look to the issue of who else besides us are at risk, and what does that mean for the world that those who might do harm to others are not as deterred knowing that our force structure is not what it has been. And that we have to articulate clearly, and I looked for each of you to help us find a way to say this that is not classified so we can convince those who don't hear what you tell us in classified formats the message so that we can set this aside and get our budgets reformed. Ranking Member Loretta Sanchez. Ms. Sanchez. Thank you, Mr. Chairman. And these are difficult decisions that we are trying to make here and we appreciate getting the information from you so we can make better decisions, because that is really the role of Congress, is to try to figure out what we can. My fear is that we invest our moneys in these F-35s--look, we need the F-35. We all know that. It is not going away. Mr. Veasey, don't worry about that. He represents Dallas and Fort Worth over there, you can probably tell. And we went to your place to take a look at them. And it is not because of that reason that we are asking the questions. We are asking the questions because we are trying to figure out how do we get this all done? My fear is we buy a bunch of planes and what we have seen in some countries and we always, amongst ourselves, always are talking about these countries who buy planes but they don't have the pilots trained or they don't have the maintenance capabilities or operational capabilities to even know how to fly them. So we don't want to end up with a bunch of planes and also have our people untrained to be able, as you said, to not be able to fly these things. So how do we do this? It is a very difficult thing to take a look at. I also want to talk about the F-22 right now, because I am looking at the budget and what I see is, F-22, okay, we have, what, about 180 or so of these that we made, not we, but great people on the line, obviously, and it costs about $370 million apiece. The Air Force is requesting $919.5 million for upgrades to the 187 F-22 aircraft we already have in service. That is about $5 million an aircraft. And the funding in this range more or less continues in the budget through fiscal year 2018. So can you tell me, $5 million, on average, $5 million worth of upgrades on a plane that we spent $320 million on and continuing forward for the next 4 or 5 years, what are we doing? What are we buying? Given the pressures that we have, what is that doing? And is it really $900 million every year for the next 4 or 5 years in order to--what are you doing with that, $5 million a plane for the next 4 or 5 years. General Field. Ma'am, I can talk to some of the capabilities of the F-22. In 2007, I went to Marietta, Georgia, and I picked one up from the factory, signed my name on the piece of paper, and the flyaway cost of that airplane was $91 million. So, again, this whole how things cost out and how much it costs per flying hour is, in my opinion, a very arcane and constrained science. Ms. Sanchez. If you were in a business, General, if we were in a business and I had my fixed costs, and that includes R&D [research and development], and my variable costs, and at the end of the whole thing I got to one large number and I divided it by the number of widgets I made, you know, yours might have cost me $70 million or what have you, but if my first one costs me $300 million or $800 million, if I am a business person, we are always talking about how we are Americans and business is the business of America, if I am a business person, I am not in business if I sell each of those planes at $90 million apiece. Do you see what I am saying? So it might have cost you, that particular one, less. But now we are going to go back and we are putting $5 million, on average, maybe it is just a few, maybe it is the whole thing, maybe every year there is something new to put on it, what is in this $900 million number every year? General Field. So what it does is it enables us to operate in those contested environments within those threat systems that are being built around the world and proliferated around the world, whether those are new mobile surface-to-air missile systems, whether those are new radars that link together to make an entire system more capable. What the F-22 does, because in terms of its speed and stealth and its fusion capability, it allows us to change the nature of that battle space and pick out areas that are vulnerable that would not be vulnerable to aircraft that don't have that kind of capability on there. So what the upgrades over the next 5 years do is it improves the radar ground mapping of the aircraft so that it can find targets better on the ground; it improves the data link capability on it; and it puts some of our advanced weapons like the AIM-120D [advanced medium-range air-to-air missile] and the AIM-9X [Sidewinder short-range air-to-air missile] into the aircraft. All of those are necessary to operate in that very tough, very high-threat environment. And right now those F-22s, combined with our legacy aircraft, whether they are Air Force, Navy, or Marine, help provide a synergistic effect to how effective all of those aircraft are, and we have proven that time and again in exercises both within the United States and outside the United States. So that is the value that we have. And it is expensive, but I think that we are going to, if something bad were to happen around the world, that is the kind of capability we are going to need to initially operate in that environment, to change that battle space so that the rest of our legacy aircraft have a better chance of survival and being effective in that combat arena. Ms. Sanchez. Thank you for that. Again, I would go back to this whole hollowing out of, are we really going to have the skill set? And when I look at that, Mr. Chairman, I not only see it from, will our airmen be able to fly these souped-up things we soup up every year, but will we even be graduating people who can enter the Air Force Academy, for example, if we are not investing in our schools. Because there is always a tradeoff, domestic spending versus having the weapons in storage for when we need them. It is a very difficult thing for us to do. Thank you, Mr. Chairman. I appreciate you having called this hearing. Mr. Turner. Thank you, Ms. Sanchez. I appreciate your partnership in working on all those important issues. Gentleman, as I am promised you, we will conclude with you providing any closing thoughts that you have. You don't need to feel compelled. But I always want to have the opportunity in case there is something that has preceded your testimony that you thought you would like to add to the record. Mr. Sullivan, I will begin with you. Mr. Sullivan. I have nothing to add, Chairman. Mr. Turner. Admiral Skinner. Admiral Skinner. Nothing to add, sir. Mr. Turner. General Schmidle. General Schmidle. I do have something to add. Mr. Turner. Very good. General Schmidle. Just a couple of things. The first thing, Mr. Chairman, your discussion before about how we can talk about this in an unclassified environment, back to what the Commandant said yesterday at the hearing, I think the issue he was getting at, and you articulated, is ``capacity.'' That is a simple word, but that really just defines what we are talking about. We have capabilities, but it is the capacity that we have that is affected by some of the things we have been talking about. And if I could, the last thing, we the Marine Corps actually have two F-35 squadrons stood up right now. One of them is in Florida. It has 11 airplanes and 17 pilots. It actually has 13 airplanes. We borrowed two from the Brits which we are flying. We have two British pilots in this squadron. And we have an operational squadron, that is our training squadron, we have an operational squadron in Yuma, Arizona, that has 4 airplanes and 7 pilots and 166 maintainers. And we actually have marines out there turning wrenches on this airplane right now today without any contract maintenance and they are flying airplanes out there. By the end of this year, they will have 16 airplanes in Arizona by September of this year. We are going to declare the initial operating capability of that squadron in 2015, and then we are going to deploy it to Japan in 2017. So that is kind of our plan right now. Mr. Turner. Thank you. That was a very excellent point. Admiral Moran. Admiral Moran. Nothing to add. Mr. Turner. General Field. General Field. Yes, sir. Chairman Turner, Ranking Member Sanchez, distinguished members of the subcommittee, thank you for allowing us to appear before you and discuss these very important topics today. General Davis and I know that we owe some of you some homework and we will get that back to you as soon as possible, either in terms of a document or probably in a couple of cases a briefing, that we need to come back and have a more enriched discussion in a classified environment. I would like to emphasize the troubling effects of sequester that we have on our current and future readiness. For the first time in my memory, Air Force combat forces are not flying due to the lack of funding in the middle of a fiscal year. While we are protecting the current fight, those scheduled next to deploy and baseline training, at a large number of bases, combat training operations have come to a complete halt. If you have the opportunity to visit airmen at these bases, you are going to find the silence a bit unnerving. As we speak, their combat capability and effectiveness are eroding. For example, by canceling our weapons instructor courses, we have created a gap in the production of graduate-level instructors that will have long-term impacts on a generation of warfighters. Those instructors are the heart, the soul, and the brains of our warfighting capabilities. Over the years, phenomenal training programs have been developed and they sustain a United States Air Force that is second to none. But we have just terminated a large portion of those full-spectrum training operations. The effects of sequestration on weapons systems sustainment and the Flying Hour Program will not disappear on the first of October with the new fiscal year. We are developing a Return to Fly Program for those affected units, but it will take time, additional resources, and a reduced OPSTEMPO to fully recover. The sooner we begin to fly a full training program, the sooner we will recover, but make no mistake, it will be an uphill battle. The greatest challenge will be to find the balance between minimizing the impact on readiness and preserving investment dollars for modernization, recapitalization of our fighter and bomber fleets, and the preferred munitions inventories, all the while meeting the requirements our defense strategies demand overseas. As we discussed, this is a delicate and very tough balance. So we appreciate the support of the subcommittee and the HASC [House Armed Services Committee], and I ask for your continued support to mitigate the effects of sequestration into fiscal year 2014 and beyond. The sooner we can stabilize training, modernization, and munitions funding, the sooner we can ensure that we are on the track to fulfill our Nation's requirements now and in the future. Thank you very much. Mr. Turner. Thank you. Well said. General Davis. General Davis. Nothing, sir. Mr. Turner. With that, I thank each of you for participating and thank you for your dedication. [Whereupon, at 4:00 p.m., the subcommittee was adjourned.] ? ======================================================================= A P P E N D I X April 17, 2013 ======================================================================= ? ======================================================================= PREPARED STATEMENTS SUBMITTED FOR THE RECORD April 17, 2013 ======================================================================= Statement of Hon. Loretta Sanchez Ranking Member, House Subcommittee on Tactical Air and Land Forces Hearing on Fiscal Year 2014 Navy, Marine Corps and Air Force Combat Aviation Programs April 17, 2013 Today's hearing will focus on the Fiscal Year 2014 Navy, Marine Corps, and Air Force requests for aircraft development, modifications, and procurement. This area of investment represents the largest single portion of the DOD's entire procurement funding request. While the combat capability the Navy, Marines, and Air Force bring to our Armed Forces is the best in the world, it comes at a very high cost. The total Navy request for aircraft procurement and modifications, including the Marine Corps, is $18 billion. To put that figure in context, the Navy request for shipbuilding in FY14 is only $14 billion. For the Marine Corps, which is primarily a force designed for ground combat, the FY14 request for aircraft procurement and modifications is about $3.5 billion. To put that figure in context, the Marine Corps entire budget for buying new ground equipment is only $1.3 billion. And finally, the Air Force request for aircraft procurement and modifications is about $11.4 billion. While less than the Navy and Marine Corps, $11 billion is still more than the entire defense budgets of the Netherlands, Colombia, Poland, Singapore, Greece, and many other countries. So, in FY14 it is clear that DOD continues to invest significant resources in maintaining the United States' status as the world's premier combat aircraft force. The question before the subcommittee today is whether or not these investments are sustainable given the many other pressures on military service budgets and the DOD budget as a whole. It is important to remember that while the Navy, Marines, and Air Force are proposing to spend more than $30 billion on new aircraft and modifications to current aircraft, we have:L17 squadrons of Air Force fighter aircraft that have no money to fly; Lan entire Aircraft Carrier battle group that did not deploy as planned; and Lmost of the U.S. Army has been forced to stop conducting training above the squad level. At some point, it may be time to question whether or not the U.S. military can afford to have what amounts to three separate ``Air Forces''--one for the Navy, one for the Marines, and one for the Air Force itself. For example, could the Nation perhaps get by with only two Air Forces instead of three? With sequester cuts now an unfortunate reality, it may well be time to relook assumptions that haven't been challenged for a decade or more. I thank the witnesses for their service and look forward to their testimony. 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MCINTYRE General Schmidle. In April 1971, the Marine Corps' first operational AV-8A squadron was established in Beaufort, South Carolina. In January 1985, the Marine Corps' first operational AV-8B squadron was commissioned at Marine Corps Air Station Cherry Point, North Carolina. AV-8B Initial Operational Capability, or IOC, was achieved in August 1985. [See page 20.] ______ RESPONSES TO QUESTIONS SUBMITTED BY MR. GARAMENDI Mr. Sullivan. As of now, the Department has an Intelligence, Surveillance, and Reconnaissance (ISR) roadmap, but no coherent ISR investment strategy. Congress and GAO have pushed for the development of an ISR roadmap and investment strategy for nearly a decade. The National Defense Authorization Act for Fiscal Year 2004 specifically required DOD to develop a roadmap to guide the development and integration of DOD ISR capabilities over a 15-year period and report to Congress on the contents of the roadmap. In addition to other matters, the 2004 legislation required DOD's roadmap to include: (1) fundamental goals, (2) an overview of ISR integration activities, and (3) an investment strategy. In response, DOD issued an ISR Integration Roadmap in May 2005, which it updated in 2007 and again in 2010. GAO's recent review of the 2007 and 2010 roadmaps found that while DOD has made progress, neither roadmap included all the elements specified by Congress or addressed the important issue of how to invest future resources among competing priorities. \1\ GAO noted that without a detailed investment strategy, DOD and the military services may not have a common understanding of how activities should be prioritized. Until DOD addresses challenges related to managing funding, integrating ISR capabilities, and minimizing inefficiencies in its ISR enterprise, the department risks investing in lower-priority and even duplicative capabilities while leaving critical capability gaps unfilled. As a result, GAO suggested that the Congress consider establishing additional accountability in legislation, such as conditioning a portion of ISR funding on completion of all congressionally directed management elements, including the development of an integrated ISR investment strategy, to ensure that future versions of the ISR Integration Roadmap meet all of the elements of an integrated ISR roadmap identified in the National Defense Authorization Act for Fiscal Year 2004 as well as the 2008 House of Representatives Committee on Armed Services report. [See page 20.] --------------------------------------------------------------------------- \1\ GAO, Intelligence, Surveillance, and Reconnaissance: Actions Are Needed to Increase Integration and Efficiencies of DOD's ISR Enterprise, GAO-11-465 (Washington, D.C.: Jun 3, 2011). Admiral Skinner and Admiral Moran. The Navy's ISR Strategy involves advanced sensor development across all domains: Navy's increased capability and capacity should be aimed at having complete visibility into regions of interest and overcoming an adversary's efforts to deny --------------------------------------------------------------------------- access to critical areas. Advanced technologies are needed to: Increase autonomy of sensors, platforms, and data processing to reduce data latency and manpower costs. Optimize the mix of autonomous manned and unmanned platforms and sensors to increase capability and capacity to commanders and weapons. Develop sensors that: Enhance multi-INT, multi-domain collection capabilities, and improve visibility into contested battlespace; Increase the number of multi-purpose, low-cost, networked, deployable, and expendable assets; Process data locally and disseminate required data smartly. Replace larger single-capability satellites by hosting sensor payloads on other types of platforms and identify options for spacebased collections: Investigate micro-, mini-, and nano-satellites to provide fine-scale temporal and spatial resolution data via common C2 paths as well as to provide persistence, increase collection fidelity and mitigate capacity issues; Improve low-power sensors and battery and fuel cell technology to enhance persistence and endurance; Develop and collect strategic signals of interest by improving NTM and tactical collection capabilities in support of emerging threats; Pursue satellites technologies with greater on- board processing and direct downlink capabilities to deployed forces and weapon systems to reduce the SATCOM requirement; Determine the capability and availability of other agencies' and countries' ISR assets in near real- time to support Navy/maritime collection requirements, and make greater use of international partnerships; achieve net-enabled cognitive interactions between disparate forces to enhance collaborative operations, including allies. Develop sensors and networks that use ``Spectrum Agility'' to work seamlessly across broad areas of the spectrum, increasing survivability and effectiveness; detect and precisely measure and map the EM environment in real-time. Meet the growing data demand coming from new SIGINT and oceanbased sensors, as well as higher resolution persistent sensors coming from space-based systems and multi-spectral sensors. [See page 20.] General Schmidle. The DOD ISR Roadmap defines the DOD vision/ strategy for ISR and was last published on 18 Mar 2010. It is a classified document that outlines how the DOD will satisfy the key strategic ISR goals and objectives embedded within the National Intelligence Strategy (NIS), Defense Intelligence Strategy (DIS), and Guidance for the Development of the Force (GDF). The DOD ISR Roadmap describes all important programs that must be integrated across the DOD in order to achieve efficient investment in new ISR capabilities, enhance the DOD's role in fulfilling Homeland Security responsibilities, and support optimal resource planning and budgeting across the enterprise. The next version of the DOD ISR roadmap is expected within the next 90 days. [See page 20.] General Davis and General Field. The Air Force answered this IFR through classified briefings to Congressman Garamendi's office on 8 and 22 May. [See page 20.] Admiral Skinner and Admiral Moran. Point Mugu, CA (Naval Base Ventura County or NBVC) was the original MQ-4C Triton West Coast basing location. It was changed to Beale Air Force Base in President's Budget 2012 to support a Memorandum of Agreement signed between the Chief of Staff of the Air Force and the Chief of Naval Operations who agreed, in principle, to several actions anticipated to bring greater synergy and efficiencies to Q-4 Unmanned Aircraft System operations. Following the United States Air Force decision to divest of RQ-4B Global Hawk Block 30s in President's Budget 2013, and in consideration of Federal Aviation Administration limitations on Unmanned Aircraft System flight operations at Beale Air Force Base, the Navy elected to realize the projected savings and operational advantages of basing the MQ-4C Triton at NBVC. The cost to build four new facilities for MQ-4C Triton maintenance, training, and operations at Beale AFB would be $121M. The cost to refurbish two facilities and build one new facility at NBVC would be $61.8M. The required housing, communication, and other Navy Unmanned Aircraft System support already exists at NBVC. By basing the MQ-4C Triton UAS at NBVC vice Beale AFB the Navy estimates a cost savings of $100.7M across the FYDP. [See pages 20-22.] General Davis and General Field. A reduced high-altitude ISR requirement (in which the U-2 was sufficient) and a reduced budget (the Department could no longer afford further investment in RQ-4 Global Hawk Block 30) drove the retirement decision. In August of 2011, DOD's Joint Requirements Oversight Council reviewed recent adjustments in military strategy and determined the Department could reduce high-altitude ISR force structure requirement. The Air Force further determined the U-2, which remains viable until at least 2040, was sufficient to meet these reduced requirements. Continued investment in the RQ-4 Block 30 was required to field a comparable capability to the U-2, but was not warranted given a significant reduction in the Department's budget and an alternative system, the U-2, that was still operationally viable at a considerably lower cost over the Future Years Defense Plan. To meet the Budget Control Act (BCA) requirement for budget savings, the funds obtained from the RQ-4 Block 30 divestiture were not moved into other accounts. These funds were used to meet part of the required BCA budget reduction. [See page 23.] ______ RESPONSES TO QUESTIONS SUBMITTED BY MR. VEASEY General Davis and General Field. The Air Force is scheduled to answer this IFR in a SAP classified briefing on 23 Jul. Congressman Veasey is planning to attend this briefing along with all members of the HASC Tactical Air and Land Forces Subcommittee which was scheduled by PSM John Sullivan. [See pages 24-25.] Admiral Moran. [The information referred to is classified and retained in the committee files.] [See page 25.] ? ======================================================================= QUESTIONS SUBMITTED BY MEMBERS POST HEARING April 17, 2013 ======================================================================= QUESTIONS SUBMITTED BY MR. THORNBERRY Mr. Thornberry. It is clear that the world is getting more dangerous, not less. The situation with North Korea makes that very clear. Iran is moving toward a potential nuclear weapon. We know that Russia and China are developing advanced stealth fighters and proliferating advanced surface-to-air missile systems. Can you discuss the importance of the advanced stealth capability that the F-35 will give us and our allies in the future to meet the increasing threats around the world? Admiral Skinner and Admiral Moran. The F-35C provides a 5th generation fighter aircraft to the Navy carrier air wing and brings with it the ability to effectively engage and survive a wide range of threats, both air and surface, in contested airspace. It provides a ``day-one'' strike capability enabling tactical agility and strategic flexibility required to counter a broad spectrum of threats and win in operational scenarios that cannot be addressed by current legacy aircraft, including operations in an anti-access/area denied environment. F-35C's 5th generation survivability and lethality is enhanced by very low observable stealth characteristics, fusion of onboard and off- board passive and active sensors, and real-time integration with other F-35Cs and Navy assets, which provide a ``first detect/first shot'' capability throughout the battlespace. The F-35C will provide a significant additive value when brought to bear with the networked fighting concepts of the U.S. Navy Carrier Strike Group and in a joint/ combined warfighting arena. Mr. Thornberry. Can you provide the Subcommittee with an update on the F-35B STOVL variant's progress in the test program and discuss why you and the Commandant believe this aircraft is so critical to the Marine Corps' future? General Schmidle. In 2011 and 2012, the F-35B test program made significant progress and has demonstrated key capabilities that confirm the aircraft will meet our requirements. As of 17 May 2013, the F-35B has conducted 1,129 test flights for a total of 1,588.1 test flight hours, and has successfully completed initial ship trials, air start testing, and released both precision and air-to-air weapons. The testing of STOVL performance capabilities continues to expand the envelope resulting in our first operational vertical landing in March 2013 at MCAS Yuma, Arizona. The Marine Corps' transition to the F-35B STOVL is well under way with the establishment of VMFAT-501, the Fleet Replacement Squadron, and VMFA-121, the first tactical squadron. VMFAT-501 currently executes a full training schedule for F-35B transition pilots and maintainers. VMFA-121, which stood up in November 2012, now has 4 F-35Bs and will be fully outfitted with 16 F-35Bs by this fall. The F-35B supports the rapidly changing nature of expeditionary operations by providing flexible basing options that allow tactical aircraft to improve responsivenes and increase sortie generation rates. The value of STOVL has been demonstrated repeatedly, most recently in combat operations ashore, through the use of forward operating bases (FOBs) in Iraq and Afganistan, as well as during embarked operations throughout Central Command's Area of Responsibility. Based on the testing completed to date we are confident the Marine Corps' requirement for one tactical aircraft type, capable of multiple missions, providing the MAGTF with flexible expeditionary basing and the superior technology needed to dominate the fight is the F-35B. There are no alternatives to the F-35B that support the full range of crisis response obligations of the United States Marine Corps. Mr. Thornberry. It is clear that the world is getting more dangerous, not less. The situation with North Korea makes that very clear. Iran is moving toward a potential nuclear weapon. We know that Russia and China are developing advanced stealth fighters and proliferating advanced surface-to-air missile systems. Can you discuss the importance of the advanced stealth capability that the F-35 will give us and our allies in the future to meet the increasing threats around the world? General Schmidle. The F-35's low observable survivability, powerful integrated sensor suite, fused information displays, interoperable joint connectivity, precision weapons suite, and self-protect anti-air weapons, is a total package of capabilities that will revolutionize our Naval Air combat power in all threat and operational environments. The advanced fifth-generation stealth capability allows our aviation elements to operate in threat environments not compatible with fourth- generation aircraft without extensive and intensive electronic warfare augmentation. By using the F-35 in these high threat environments we reduce exposure, increase survivability, and improve overall mission effectiveness with tailored and precision application. Mr. Thornberry. Can you speak to the additional capability the F-35 will bring to the Fleet and the program's importance to the Navy's Tactical Aviation recapitalization efforts? Admiral Moran. The F-35C provides a 5th generation fighter aircraft to the Navy carrier air wing and brings with it the ability to effectively engage and survive a wide range of threats, both air and surface, in contested airspace. It provides a ``day-one'' strike capability enabling tactical agility and strategic flexibility required to counter a broad spectrum of threats and win in operational scenarios that cannot be addressed by current legacy aircraft, including operations in an anti-access/area denied environment. Key additive capabilities that F-35C will bring include very low observable stealth characteristics and fused active and passive sensors that will enhance the inherent stealth design. These fully integrated capabilities will allow F-35C to retain a `first detect/first shot' capability throughout the battlespace. F-35C's survivability and lethality will fully integrate with the other Navy Carrier Strike Group assets and provide increased real-time situational awareness to all other networked assets. As such, F-35C offers complementary, additive capability to F/ A-18E/F in numerous mission areas. A force equipped with F-35C aircraft enables combatant commanders to attack targets day or night, in all weather, in highly defended areas of joint operations. Target set includes: fixed and mobile land targets; enemy surface units; and air threats (including advanced cruise missiles). F-35C will supplant some of the aging Navy TACAIR inventory by replacing legacy F/A-18C aircraft and early blocks of the F/A-18E/F. F-35C procurement remains a vital element of the Navy's strike-fighter force mix. Mr. Thornberry. Affordable F-35 recapitalization is dependent on capturing economies of scale as quickly as possible by increasing production as quickly as possible. It finally appears that the Department has stabilized the production rate for the F-35 program and is committed to increasing the ramp rate beginning in FY-15. Contrary to the public perception, unit costs have been coming down year-to- year. What do you expect the cost of the F-35A CTOL variant to be when the program reaches full-rate production in FY 18? General Davis. Based on the current production profile, the estimated unit recurring flyaway cost (URF) for the F-35A will be approximately $87 million (TY$) in FY18. The URF cost includes the airframe, electronics, engine and engineering change orders. The estimated flyaway cost is approximately $96 million (TY$) in FY18. The flyaway cost adds in non-recurring and ancillary equipment costs. The F-35A unit cost is subject to change if the U.S. Services or partner nations adjust their procurement profiles. Mr. Thornberry. It is clear that the world is getting more dangerous, not less. The situation with North Korea makes that very clear. Iran is moving toward a potential nuclear weapon. We know that Russia and China are developing advanced stealth fighters and proliferating advanced surface-to-air missile systems. Can you discuss the importance of the advanced stealth capability that the F-35 will give us and our allies in the future to meet the increasing threats around the world? General Davis and General Field. Since World War II, the U.S. has relied on its ability to control the skies over the battlefield, protecting our forces and holding any adversary's targets at risk. Our potential adversaries are keenly aware of the importance of air superiority to our nation's way of war. This is why the development and proliferation of weapon systems that contest our asymmetric advantage in the air are increasingly prevalent. For the past 30 years, our fighter fleet remained ahead of this evolving threat, superbly performing all its missions and supporting the joint warfighter in operations such as EL DORADO CANYON, DESERT STORM, ALLIED FORCE, ENDURING FREEDOM and IRAQI FREEDOM. However, even during these conflicts we sometimes faced threat systems that posed a significant threat to our legacy fighter fleet. For example, during the first days of DESERT STORM only our fleet of F-117 stealth fighters was able to safely operate and survive in the highly contested skies over Baghdad. We believe that air superiority remains an imperative when fighting any adversary and maintaining the ability of our aircraft to penetrate and persist in contested environments is vital to the joint warfighter. As you mention, the threats we may face continue to evolve in technology and complexity. Potential adversaries are acquiring advanced fighters on par with or better than our legacy fleet, developing sophisticated and networked early warning radar surveillance systems, and fielding surface to air missile systems with increasing range and lethality. These capabilities all work together to create advanced, and extremely dangerous, integrated air defense systems (IADS). These anti- access/area denial environments seriously challenge our ability to gain air superiority and hold targets at risk. We already face this challenge in some parts of the world and as you said, and these threat environments will continue to expand as these systems proliferate. Our legacy fleet is approaching the limits of capability modernization that permits them to survive and operate in these environments--they simply do not have the advanced stealth capability required to defeat the emerging threats. Only our fifth generation fighter fleet's combination of advanced stealth, precision weapons, unmatched electronic warfare systems, fused multi-spectral battlespace awareness, combat identification systems, maneuverability, and speed has the ability to operate and survive in these advanced threat environments. All these capabilities inherent in the F-35, particularly its advanced stealth properties, ensure the U.S. and our allies have an air superiority advantage, and will enable our combatant commanders to bring the full spectrum of capabilities of the joint force to the fight. ______ QUESTIONS SUBMITTED BY MR. LOBIONDO Mr. LoBiondo. This committee has been concerned with the strength of the Department of the Navy's tactical aviation fleet. Specifically, we have questioned the inventory size and how the Navy planned to manage a strike fighter force structure in the near and long term. The Navy has a requirement for 40 VFA squadrons to fill 10 Carrier Air Wings (CVWs) with 4 squadrons each. Of these squadrons, the Navy has 35 VFA squadrons, and the Marine Corps provides 3 squadrons with an agreement to supply five squadrons. Does the DON have enough Strike Fighter squadrons to fill 10 Carrier Air Wings and still meet all the USMC commitments, including overseas rotations and MEU deployments? Or, are you several squadrons short of the requirement? Does the strike fighter inventory model take into account these missing squadrons? The Fiscal Year 2014 budget request also shows that the Navy eliminated 13 Super Hornets it was supposed to buy this year. However, somehow the tactical aviation shortfall was reduced. How can you account for this reduction in aircraft and a corresponding reduction in the shortfall? What is the tactical aviation shortfall this year? Admiral Skinner and Admiral Moran. The Navy and Marine Corps have sufficient strike fighter capacity. We continue to carefully monitor strike fighter inventory requirements and projected availability and will continue to take management actions to meet all carrier-based and expeditionary TACAIR requirements. DON utilizes the Inventory Forecasting Tool (IFT) to project the combined effects of transition plans, attrition, and pipeline requirements on total strike fighter aircraft inventory. The IFT is updated in conjunction with annual budget submissions to provide a forecast of strike fighter inventory compared to requirements. This model does take into account the current force structure gap in TACAIR integration. The shortfall number decreased significantly from last year's estimate due to 3 primary factors: (1) lower utilization rates on Super Hornets, specifically F/A-18Fs, (2) aircraft that successfully completed High Flight Hour (HFH) inspections that were allowed to fly an additional 1000 flight hours instead of the originally planned additional 600 flight hours. These 400 additional flight hours per aircraft extended service life by up to two years, (3) PB-13 includes a Congressional add of 11 F/A-18E/F in FY-13, which settles the POR at 563. The Strike Fighter Shortfall is projected to peak at 18 in 2023. Mr. LoBiondo. This committee has questioned the inventory size and how the Navy planned to effectively manage a strike fighter inventory in the near and long term. Last year, the Marine Corp emphasized a service life extension program (SLEP) for 150 F/A-18A-D aircraft, which would help bridge to the F-35B when squadrons become combat operational. This year, briefings indicate a new high flight hour inspection regime for aging legacy aircraft in order to maintain adequate force structure. However, the committee is getting reports that the Government depot-level inspections for tactical aviation are taking far longer than anticipated, and at a greater cost. For instance, there are reports from the Navy that 42% of legacy Hornet--F/ A-18A-D models--are ``out of reporting.'' Moreover, inspections that were scheduled to take only 180 days are estimated to be taking at least twice as long. And, the Navy released a Request for Information (RFI) to the industry on capabilities available to support these depot inspections, in part because there is a rapidly building backlog of aircraft awaiting inspection. The costs and schedule analysis have not been provided to the committee on this new policy, so it remains uncertain that it will sufficiently address our concerns about inventory shortfalls. General, can you discuss the new high flight hour inspection and SLEP plan for legacy aircraft? And has there been an analysis on the costs and schedule of this new process? Can you tell the committee what percentage of your fleet is trending ``out of reporting''? Can you tell the committee what the actual throughput is for F/A-18A-D aircraft? Under the current plans, will the Marine Corps have enough squadrons to transition to the F-35B? What impact will this have on the aviators and maintainers to make this possible? What is the cost of this new inspection and SLEP plan across the FYDP? General Schmidle. Q. General, can you discuss the new high flight hour inspection and SLEP plan for legacy aircraft? A. In order to meet our operational commitments through 2030, the DON plans to extend the life on 150 F/A-18A-D aircraft to 10,000 flight hours by way of the Service Life Extension Program (SLEP). All other F/ A-18A-D aircraft will complete a high flight hour (HFH) inspection at the depot prior to reaching the current service life limit of 8000 hours. Once complete, the aircraft will be granted an extension authorization to 9,000 hours with recurring operational level inspections at 200 hour intervals. If done with no other added work such as other regularly scheduled Planned Maintenance Interval (PMI) 1 or 2, Center Barrel Replacement (CBR), or other avionics modifications, it is called a ``Stand Alone.'' To date, the DON has completed 101 HFH inspections and the issues identified were consistent with anticipations. In addition to the HFH inspection, each of these aircraft required engineering analysis and follow-on repairs or parts replacements in order to return them to an operational status. Q. Has there been an analysis on the costs and schedule of this new process? A. There has been analysis on the costs and schedule of HFH Inspections. The data is provided below. Ninety-eight HFH inspections have been completed at the Fleet Readiness Centers since 2008 and every year the NAVAIR 4.2 Cost Team evaluates the cost and schedule based on updated information. The results are then compared to the existing FYDP and adjusted requirements are forwarded up through the budgeting process. The ``HFH Stand Alone'' turn-around time is averaging approximately one year. The average cost of this inspection is currently $447,186. These are not simple inspections. Aircraft inducted into the depot have required extensive repair and there has not been a case where an aircraft only required the inspection making it difficult in attaining the 180 day turn-around goal. The main contributors are material and engineering dispositions, both of which are being closely monitored and standardized to improve throughput. As more SLEP modifications become available, they will be incorporated into aircraft inducted, alleviating long lead material and reducing turn-around times. Q. Can you tell the committee what percentage of your fleet is trending ``out of reporting''? A. As of the latest NAVAIR Flight Hour and Inventory Report (May 2013), 115 of 258 USMC F/A-18A-D aircraft are ``out of reporting'' for various depot level maintenance events. This constitutes 45% (44.57%) of the USMC F/A-18 fleet. There is an increasing trend in ``out of reporting'' over the past year: May 2012 (88 of 245, 36%), Sep 2012 (102 of 249, 41%). Q. Can you tell the committee what the actual throughput is for F/ A-18A-D aircraft? A. The throughput for F/A-18A-D HFH aircraft is shown below. ---------------------------------------------------------------------------------------------------------------- 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 ---------------------------------------------------------------------------------------------------------------- Total ....... ....... ....... ....... ....... ...... ...... ...... ...... ...... ...... ``Projected'' High ...... ...... ...... ...... ...... ...... Flight Hour (HFH) 54 60 50 55 35 25 Inductions ---------------------------------------------------------------------------------------------------------------- Actual 17 22 21 43 62 25 ...... ...... ...... ...... ...... Induction Total ---------------------------------------------------------------------------------------------------------------- Actual 3 13 17 22 32 11 ...... ...... ...... ...... ...... Completion Total ---------------------------------------------------------------------------------------------------------------- Average throughput over 6 years (2008-2013) = 51% of A/C inducted (98 completed of 190 aircraft inducted). Q. Under the current plans, will the Marine Corps have enough squadrons to transition to the F-35B? A. Assuming the current JSF delivery plan is not reduced or delayed, the USMC will have enough squadrons to complete the TACAIR transition to the F-35. Successful implementation of the USMC TACAIR transition plan will be extremely difficult if the growing out of reporting problem in the USMC F/A-18A-D community is not addressed. More importantly, if the depot maintenance throughput is not significantly improved, the backlog of aircraft at the depot will increase to a point at which it will affect our ability to properly equip forward deploying units during the transition. Q. What impact will this have on the aviators and maintainers to make this possible? A. The F/A-18 out of reporting problem is driving USMC squadrons to train and operate at less than the planned mission aircraft authorization (PMAA) of 12 aircraft. Currently the USMC F/A-18 fleet averages 9 aircraft per squadron, not including the FRS. This aircraft deficit poses a unique dilemma to aviators: 1. Fly a smaller number of aircraft at a much higher utilization rate to maintain combat readiness, or 2. Sacrifice combat readiness to maintain planned utilization rates on the available aircraft. The first option will drive aircraft to reach the 8000 hour limit at a greater rate further aggravating the depot backlog and throughput problems. The second sacrifices the combat readiness at a time when USMC TACAIR is experiencing high operational demand. Bottom line for aviators--projected lack of aircraft on the flightline will cause a downward trend in Marine Corps tactical aviation readiness. More importantly, if depot maintenance throughput is not significantly improved, the backlog of aircraft at the depot will increase to a point at which it will affect forward deployed units. For the maintainers at the squadron level--the fleet is currently annotating and analyzing the impact of the increase in man-hours incurred by the HFH recurring interval inspections. Q. What is the cost of this new inspection and SLEP plan across the FYDP? A. FY13 HFH inspections and SLEP plan are fully funded. The FYDP costs are shown below. HFH OMN Budget (in $M) ------------------------------------------------------------------------ Current Budget FY (PB-14) 13 14 15 16 17 18 ------------------------------------------------------------------------ HFH Inspection Budget $26.5 $19.8 $17.0 $9.5 $14.8 $9.9 (OMN) ------------------------------------------------------------------------ SLEP APN-5 Budget ($636.56M FYDP)* ------------------------------------------------------------------------ Current Budget FY (PB- 14) $M 13 14 15 16 17 18 ------------------------------------------------------------------------ SLEP Budget $54.63 $59.52 $111.64 $206.88 $106.7 $151.8 (APN5 within OSIP 11- 2 0 99) ------------------------------------------------------------------------ *In PB-14, OSIP 11-99 (funding for SLEP/SLMP) was reduced by $697.28M across the FYDP (Issue #20025 -$99.26M & Issue #62294 - $598.00M). This equates to a 52% reduction in funding for combined HFH and SLEP in PB-14. The average cost of the HFH Stand Alone inspection is currently $447,186 with turnaround times averaging 328 to 403 days depending on the depot site. Mr. LoBiondo. As you know, the F/A-18E/F Block II Super Hornet will be part of the Navy's aviation backbone for the next 25 years and beyond. Both the Super Hornet and the F-35C will be providing force projection for our carriers. Because of its importance to the long-term health of tactical aviation, the Committee understands that there are efforts under way to support advancements to the current Block II platform. At Navy League last week there were presentations on both the funded ``Flight Plan'' of the Super Hornet and additional advancements being considered. Can you talk about the importance of a modernization program for the Super Hornets in order to take that aircraft out the next 25 years or more? Admiral Moran. F/A-18E/Fs will remain critical multimission assets in the air wing of the future and will complement the first-day/first- strike capability of the F-35C. As the bulk of the strike/fighter force, the Super Hornet will continue to execute many of the same mission sets as the F-35C and will be expected to serve as a primary delivery platform for long-range air-to-air and air-to-surface weapons. Continued upgrades to the F/A-18E/F platform are critical. Efforts to modernize the 2025 Carrier Air Wing (CVW) include integration of weapons and capabilities through coordinated management and synchronized requirements development with the flexibility and agility to meet any threat. The CVW leverages networked weapon system integration and interoperability to find, fix, track, target, engage and assess any threat by utilizing off board cueing, operating across the RF spectrum and with stealth technology to achieve full spectrum dominance to interrupt red effects chains. Future F/A-18E/F improvements such as Multifunctional Information Distribution System (MIDS) upgrades, Multi-System Integration (MSI) refinement, configuration modifications and improved Counter Electronic Attack (CEA) for the Advanced Electronic Scanned Array (AESA) radar, introduction of the long-wave Infra-Red Search and Track (IRST) pod, Advanced Targeting Forward Looking Infra-Red (ATFLIR) pod enhancements and improved weapons integration will allow the Super Hornet to meet the capability requirement of the 2025 CVW. ______ QUESTIONS SUBMITTED BY MR. TURNER Mr. Turner. Mr. Sullivan, your most recent report identifies a number of technical risks the program faces that could substantially degrade the F-35's capabilities and mission effectiveness. Can you please identify the major technical risks the program faces going forward. What is the status of these risks? Specifically, with regard to the Helmet Mounted Display, what risks remain and what actions are being taken in order to reduce these risks? Mr. Sullivan. The key areas of risk we highlighted in our March 2013 report were the Autonomic Logistics Information System (ALIS), the arresting hook system for the carrier variant aircraft, structural durability, the Helmet Mounted Display (HMD), and software integration and testing. \2\ While the program still faces a number of challenges going forward, it has taken positive steps to address risk in these areas. For example, limited capability ALIS systems are now being used at training and test locations and the program has made progress in developing the smaller, transportable version needed to support unit level deployments with the expectation that a fully capable system will be fielded in 2015. The program has completed the redesign of its carrier variant arresting hook system, conducted risk reduction testing on the new hook point, and expects to begin flight testing the entire redesigned system in late 2013. The program is also testing redesigned structures and planning for other modifications that are needed to address problems identified during the aircraft's structural and durability testing. --------------------------------------------------------------------------- \2\ GAO, F-35 Joint Strike Fighter: Current Outlook Is Improved, but Long-Term Affordability Is a Major Concern, GAO- 13-300 (Washington, D.C.: Mar 11, 2013). --------------------------------------------------------------------------- With regard to the HMD, the original design encountered significant technical deficiencies and did not meet warfighter requirements. Those deficiencies included degraded night vision capability, display jitter, and latency (or delay) in transmitting sensor data. Program officials stated that software updates are being made to improve night vision capability, filters are being added to displays to decrease jitter, and data latency is not as severe as originally assumed. Early developmental testing of these updates has shown improvement, according to program officials, but risks remain as additional testing still needs to be done. In addition, the program is pursuing a dual path by developing a second, less capable helmet while working to fix the first helmet design. Both helmets are being evaluated, and while DOD may make a decision as to which helmet to procure later this year, the selected helmet is not expected to be integrated into the baseline aircraft until 2015. Software integration and testing continue to pose significant risks to the program, although the aircraft contractor and program office have recently taken steps that are likely to improve software management and output. The number of lines of code necessary to achieve full mission capability is now estimated to be to over 24 million. While most of the code has been developed, a substantial amount of integration and test work remain before the program can demonstrate full warfighting capability. The specific software needed to demonstrate that capability including electronic warfare, communication navigation identification, and radar is behind schedule, and the most challenging work still lies ahead. Mr. Turner. Mr. Sullivan, for years GAO has been a critic of the JSF program with regard to cost growth and schedule delays, yet your most recent report seems to indicate things are getting better. What changes has the program made in order to set it on a new path? Going forward, what critical challenges remain for the program from a cost and schedule standpoint? Mr. Sullivan. After 12 years and more than $20 billion dollars in development cost growth, the department has fundamentally restructured the F-35 program. In doing so, it has steadily lowered the production ramp-up rate over the past 3 years and cut near term procurement quantities. This means that fewer aircraft are being procured while testing is still ongoing, which lowers the risk and cost of having to retrofit and modify aircraft. The new development flight test schedule is also more realistic and better resourced, using more conservative assumptions about fly rates and test point achievements and providing for more flights and more test assets. In addition, the acting Under Secretary of Defense for Acquisition, Technology, and Logistics has established unit cost affordability targets for each variant of the aircraft that the program is expected to meet by the start of full-rate production in 2019. In the area of software management, the program began the process of establishing a second system integration laboratory, adding substantial testing and development capacity, and prioritizing its resources on incremental software development as opposed to the much riskier concurrent development approach. Going forward, affordability and concurrency between testing and production will continue to pose significant cost and schedule challenges for the F-35 program. The new acquisition program baseline projects the need for a total of $316 billion in development and procurement funding from 2013 through 2037--which represents an average of more than $12 billion annually. Maintaining this level of sustained funding will be difficult in a period of declining or flat defense budgets and competition with other ``big ticket items'' such as the KC- 46 tanker and a new bomber program. In addition, the program's highly concurrent test and production schedule poses significant risk going forward. With nearly two-thirds of the developmental test program remaining, additional time and money will likely be needed for retrofits and rework of procured aircraft. At the time of our report, the program office projected retrofit and rework costs of $1.7 billion on aircraft procured under the first 10 annual contracts. Mr. Turner. Mr. Sullivan, as you know, the JSF acquisition program is expected to require over $300 billion still to complete the acquisition and $1 trillion to operate and sustain the aircraft. How do you view affordability as a challenge for the program? Mr. Sullivan. Affordability poses a challenge because sustaining an annual acquisition funding level of over $12 billion on average from 2013 through 2037, as currently projected, will be difficult in a period of declining or flat defense budgets and given the competition for funding from other ``big ticket items'' such as the KC-46 tanker and a new bomber program. It should also be noted that the program's current funding projections assume financial benefits from international partners purchasing at least 697 aircraft. If fewer aircraft are procured in total or in smaller annual quantities--by the international partners or the United States--unit costs will likely rise according to analysis done by the Office of the Secretary of Defense, Cost Assessment and Program Evaluation office. In addition, current F-35 life-cycle cost estimates are considerably higher than the legacy aircraft it will replace; this has major implications for future demands on military operating support budgets and plans for recapitalizing fighter forces. The most recent estimate by the Director of Cost Assessment and Program Evaluation projects total U.S. operating and support costs of over $1 trillion for all three variants based on a 30-year service life and predicted usage and attrition rates. Defense leadership stated in 2011 that sustainment cost estimates of this magnitude were unaffordable and simply unacceptable in this fiscal environment. U.S. military services and international partners have all expressed concerns about long-term affordability. The program has undertaken efforts to address this life- cycle affordability concern, but until DOD can demonstrate that the program can perform against its cost projections, it will continue to be difficult for the U.S. and international partners to accurately set priorities, establish affordable procurement rates, retire aged aircraft, and establish supporting infrastructure. Mr. Turner. You mentioned in your written testimony that F-35 sustainment costs remain a concern. What actions are the F-35 Joint Program Office and the Department of the Navy taking to reduce F-35 life-cycle costs? Admiral Skinner. The Department of the Navy (DON) continues to support the F-35 program in its disciplined approach to analyzing and reducing sustainment costs. The F-35 program is conducting a sustainment business case analysis to identify cost reduction initiatives. The program recently held an industry day to foster competition for sustainment contracting, specifically targeting supply chain, support equipment, training operations support, and Autonomic Logistics Information System administration. A focused reliability and maintainability program is identifying cost drivers based on actual fleet data. These cost drivers can be targeted for improvements, either by redesign or qualification of a second source. The program also uses contracting standards for suppliers to reduce repair times. As the services fund depot standup, this will also increase the sources for repair, improving quality and repair times. Importantly, the services and JPO now have a common definition of cost per flight hour. This seemingly simple step will allow the services to investigate the underlying assumptions for cost drivers such as training, mission personnel, engineering support, and assumed annual flight hours. The DON, working with the F-35 program, will analyze options outside the Program Executive Office's span of control such as reviewing basing option and sequencing, unit level manpower and squadron size, discrete sustainment requirements, and appropriate use of simulation for training. Work is under way for a level of repair analysis to maximize cost effectiveness and fully exploit existing service maintenance infrastructure. Such efforts yielded savings for legacy platforms, such as MV-22 and EA-18G. Through these combined efforts, the Department of the Navy believes the PEO can converge on an affordable F-35 sustainment strategy that meets the required level of service performance and lowers the total life cycle cost of the program. Mr. Turner. The Navy's Broad Area Maritime Surveillance Program had assumed cost savings in production and operations and maintenance because of Global Hawk program shared overhead, training, basing costs, and other operations and sustainment costs. In addition, there is the possibility of a break in the production line, with Global Hawk Block 30 termination, given the current BAMS production schedule. Do you know what these costs will be? Admiral Skinner. The United States Air Force decision to terminate the Global Hawk Block 30 Lot 11 production contract in President's Budget 2013 has resulted in a gap on the production line that will cost the Navy MQ-4C Triton program an estimated $27M (Research, Development, Test & Evaluation, Navy). Final cost estimates will not be known until the Navy negotiates the Low Rate Initial Production contract with the Prime Contractor. Mr. Turner. Your written testimony notes that the Marine Corps may experience elevated operational risk in the 2020s if the predicted strike fighter shortfall comes to fruition. Please describe why you believe the Marine Corps faces this elevated operational risk and what the Department of the Navy is doing to mitigate those risks. General Schmidle. As legacy F/A-18 squadrons are reduced, the service shortfall number must be considered in proportion to the primary mission aircraft inventory requirement. Due to a lower number of F/A-18 squadrons in the 2023 to 2026 timeframe, the shortfall number associated with the Marine Corps will have a more significant impact on our remaining F/A-18 operational squadrons. For example, in 2023 the USMC F/A-18 fleet will have three active and one reserve squadron remaining. A shortfall of (11) F/A-18 aircraft would comprise approximately one quarter of the total squadrons or one third of the active component. The Department of the Navy (DON) continues to manage aircraft service life of each aircraft at the operational level in order to achieve the maximum allowable service life limits prior to its sundown. The continued engineering and Service Life Extension Program (SLEP) kit development over the FYDP will ensure there is sufficient inventory to meet DON requirements through the transition to the F-35. Mr. Turner. The total Department of the Navy strike fighter shortfall is 18 aircraft in approximately 2023. Of that amount, what is the Marine Corps strike fighter shortfall? General Schmidle. The Marine Corps' portion of the Department of the Navy strike fighter shortfall in 2023 is 11 aircraft according to the latest excursion of the Inventory Forecasting Tool (IFT v21 excursion C012). Mr. Turner. Your written testimony notes that Marine aviation is on a path toward a distributed Airborne Electronic Attack system of systems including both unmanned and manned assets. Please describe the number and types of unmanned and manned assets that will be part of this system. General Schmidle. The Marine Corps anticipates a future operating environment comprised of advanced Electromagnetic Spectrum (EMS) Warfare and digital threats. The Marine Corps will address these threats with the Marine Air Ground Task Force Electronic Warfare (MAGTF EW) concept. This approach will leverage all available transmitters and sensors across the MAGTF on both manned and unmanned platforms. A coordination cell comprised of EMS, Cyber, Operations, Intelligence, and Communications subject matter experts (SME) will collectively integrate collections and effects-delivery efforts in real-time. The Marine Corps will no longer depend on a large single-purpose platform, since the low-density, platform-centric approach has proven insufficient for meeting capacity requirements. MAGTF EW systems will be capable of networking with Marine and Joint assets spanning the air, ground, space, and cyber domains. Any current or future airframe employed in support of MAGTF operations will maintain the ability to host advanced EMS payloads in support of integrated Spectrum and Cyber Operations. The Intrepid Tiger II Electronic Warfare pod, currently deployed to Central Command (CENTCOM) and aboard Marine Expeditionary Units (MEUs), is one such payload example. The types and numbers of these platforms and systems will be based on Service capacity and future mission requirements. These platforms specifically include future Group 4/5 UASs, RQ-21, F- 35, KC-130J, AV-8B, F/A-18, AH-1, though any aircraft in the inventory will be capable of serving as a host platform in the distributed capability network. As the future linchpin of Marine Corps Tactical Aviation, the F-35 JSF will contribute by reducing counter-integrated air defense systems (C-IADS) requirements due to its inherent Spectrum survivability, and adding decisive networked attack and exploitation capabilities in EMS regions of significance. While the Marine Corps is currently achieving combat success with EMS payloads on manned platforms in theater and adding such capability to deployed Marine Expeditionary Units, the application of airborne Spectrum Warfare will increasingly gravitate towards UAS platforms. Marine Corps Aviation is actively exploring options to expand its UAS fleet with larger platforms to provide requisite size, weight, and power to perform a combination of standoff and penetrating Spectrum Attack operations. This approach will enable a deliberate Spectrum Warfare portfolio growth from communications-based targets by incorporating RADAR-based targets, directed-energy (DE) and LASER targets, as well as targets susceptible to low-yield electromagnetic pulse (EMP). Additionally, the Marine Corps is exploring the viability and readiness of advanced (medium-high Technology Readiness Level) Spectrum Attack technologies to augment baseline Intrepid Tiger 2 capability for future incorporation. Mr. Turner. Like the Air Force, Naval air forces require inventories of precision air-to-air and air-to-ground munitions. Please describe which inventories and short of requirements and provide the committee a list of those munitions and amounts above the budget request that could be executed in fiscal year 2014. General Schmidle. The following list of precision air-to-air and air-to-ground Naval munitions have been identified as falling short of their requirement, as defined by the POM-14 Naval Munitions Requirements Process (NMRP) output, and can execute the amounts shown above the budget request that could be executed in fiscal year 2014. AIM-9X: $135M for an additional 350 missiles. AARGM: $16.5M for an additional 22 missiles. JSOW C-1: $28M for an additional 92 weapons. GP Bombs: $237.8M for the additional components below: --JDAM tail kits ($72M, QTY 3,000) --Laser JDAM ($50.4M, QTY 3,500) --GBU-12 ($12M, QTY 3,000) --GBU-10 ($3.5M, QTY 700) --Computer Control Groups ($24M, QTY 2,000) --BLU-109 Bomb Body ($64M, QTY 2,000) --FMU-143 fuze ($11.9M, QTY 3,500) Rockets: $118M for the additional components below: --M151/MK152 HE Warhead ($18M, QTY 12,917) --MK 66 MOD 4 Rocket Motor ($24.3M, QTY 41,258) --WTU-1/B Inert Warhead ($1.1M, QTY 12,881) -- WGU-59/B APKWS II Guidance and Control Section ($74.3M, QTY 2,564) --LAU-61 G/A Digital Rocket Launcher ($0.28M, QTY 5) Mr. Turner. In your statement you note that initial operational capability (IOC) dates have not been determined by leadership but you describe capabilities for IOC such as 10 F-35B aircraft with software block 2B for the Marine Corps, and 10 F-35C aircraft with software block 3F for the Navy. You also mention that you will report those dates by June 1st of this year. Based on the current F-35 development and procurement schedule, can you estimate what year the F-35B and F- 35C will be declared IOC? General Schmidle. IOC dates are capability based, and the services will declare IOC dates in a report to Congress due by 1 June 2013. The current F-35B IOC plan is based on appropriate software, weapon clearances, performance envelope, training, deployability, and sustainment capabilities. The Marine Corps estimates it will declare IOC for the F-35B between July 2015 (objective) and December 2015 (threshold). Mr. Turner. Like the Air Force, Naval air forces require inventories of precision air-to-air and air-to-ground munitions. Please describe which inventories and short of requirements and provide the committee a list of those munitions and amounts above the budget request that could be executed in fiscal year 2014. Admiral Moran. The following precision air-to-air and air-to-ground Naval munitions have been identified as being short of their inventory requirement. The funding above the PB14 budget request that could be executed in fiscal year 2014 is also provided below. AIM-9X: $58.1 for an additional 150 missiles. AARGM: $16.5M for an additional 22 missiles. JSOW C-1: $28M for an additional 92 weapons. GP Bombs: $237.8M for the additional components below: --JDAM tail kits ($72M, QTY 3,000) --Laser JDAM ($50.4M, QTY 3,500) --GBU-12 ($12M, QTY 3,000) --GBU-10 ($3.5M, QTY 700) --Computer Control Groups ($24M, QTY 2,000) --BLU-109 Bomb Body ($64M, QTY 2,000) --FMU-143 fuze ($11.9M, QTY 3,500) Rockets: $118M for the additional components below: --M151/MK152 HE Warhead ($18M, QTY 12,917) --MK 66 MOD 4 Rocket Motor ($24.3M, QTY 41,258) --WTU-1/B Inert Warhead ($1.1M, QTY 12,881) -- WGU-59/B APKWS II Guidance and Control Section ($74.3M, QTY 2,564) --LAU-61 G/A Digital Rocket Launcher ($0.28M, QTY 5) Mr. Turner. In your statement you note that initial operational capability (IOC) dates have not been determined by leadership but you describe capabilities for IOC such as 10 F-35B aircraft with software block 2B for the Marine Corps, and 10 F-35C aircraft with software block 3F for the Navy. You also mention that you will report those dates by June 1st of this year. Based on the current F-35 development and procurement schedule, can you estimate what year the F-35B and F- 35C will be declared IOC? Admiral Moran. In accordance with the FY13 NDAA Conference Report (112-705) on H.R. 4310, the Secretary of the Navy will submit, along with the Secretary of the Air Force, a report to Congress declaring IOC dates for all three variants of the Joint Strike Fighter by June 1, 2013. Mr. Turner. You mentioned in your written testimony that depot delays will require the grounding of some of the affected aircraft, and that sequestration cuts to Air Force modernization will impact every one of the Air Force's investment programs, creating inefficiencies, raising unit costs, and delaying delivery of valued capabilities to warfighters in the field. You also note that the Fiscal Year 2014 budget request does not enable full recovery of warfighting capability, capacity and readiness and that additional resources will be required. a. What effects will sequestration have in the current fiscal year on the Air Force fighter inventory? b. What additional resources will be required in fiscal year 2014 to make the fighter fleets whole again? General Davis. a. The Air Force fighter force structure requirement is currently 1,900 TAI (Total Active Inventory), and 1,100 PMAI (Primary Mission Aircraft Inventory, or ``combat-coded'' fighter aircraft). Because these force structure numbers are minimums set to meet our National Military Strategy at increased aggregate risk, the Air Force is actively managing force structure to offset the effects of sequestration. Although sequestration itself will not affect the tactical fighter inventory in the current fiscal year in terms of PMAI, some fighter units are currently stood down and will likely remain so throughout FY13. Overall, sequestration has created significant readiness shortfalls and reduced our ability to meet future steady- state and surge requirements. Examples of sequestration impacts include postponement of field level maintenance and depot inductions, reductions in depot production and interruption of aircraft modification and modernization efforts. Based on the force structure minimum of 1,900 TAI/1,100 PMAI, the Air Force's ability to meet the National Military Strategy is already at increased risk, and sequestration exacerbates the Air Force's near term readiness impacts and its ability to meet future requirements. b. It will take 3-6 months and additional funding to bring stood down fighter squadrons back to their pre-sequestration readiness levels, which were sub-optimal. Achieving full mission readiness goals will be a multiyear effort beyond what is achievable in FY14. For FY14, we estimate an additional 10% flying hours above PB14 levels for the stood down units, or approximately $115M. In addition, to recover the deferred FY13 depot actions for the fighter fleet overall will cost approximately $34M. Mr. Turner. You mentioned in your written testimony that all three mission areas in the air-to-surface munitions inventory are short of inventory objectives. Those missions are stand-off, direct attack, and penetrator munitions. a. Please provide the subcommittee a list of those muntions and amounts that could be increased to the budget request and, if authorized and appropriated, could be executed in fiscal year 2014. General Davis. Joint Air-to-Surface Standoff Missile (JASSM) is a conventional, low observable, cruise missile, with standoff ranges of 200nm (JASSM Baseline) or 500nm (JASSM-ER). The current inventory for JASSM Baseline is approximately 1,060 units and objective inventory is approximately 2,000 units. The Air Force FY14 President's Budget (PB) request is $291.2 million for 103 JASSM Baseline units and 80 JASSM-ER units. The Air Force supports the FY14 PB. In order to reach the FY14 production capacity of 175 JASSM Baseline units, an additional $81.4 million is required. The currently inventory for JASSM-ER is 0 units and objective inventory is approximately 3,000 units. The FY14 PB request for 80 JASSM-ER units is the production capacity. Hellfire is a direct attack munition used to prosecute time- sensitive targets. It is the only weapon employed on the MQ-1 Predator and the only forward firing weapon on the MQ-9 Reaper. The current inventory is approximately 2,000 units and objective inventory is approximately 5,000 units. The Air Force FY14 PB request is $48.5 million for 413 units. The Air Force supports the FY14 PB. In order to reach the FY14 production capacity of 7,200 across the Army, Navy, Air Force, and FMS procurement, an additional $492.4 million is required. Small Diameter Bomb Increment II (SDB II) is a standoff miniature munition designed to kill mobile targets in adverse weather conditions. The current inventory is 0 units and objective inventory is approximately 12,000 units. The Air Force FY14 PB request is $42.3 million for 144 units. The Air Force supports the FY14 PB. In order to reach the FY14 production capacity of 173, an additional $4.4 million is required. Joint Direct Attack Munition (JDAM) is a field-installed guidance kit with global positioning system aided inertial navigation system (GPS/INS) that integrates on 500, 1,000, and 2,000 pound general purpose bombs. JDAM provides an accurate, adverse weather capability, and is integrated with the B-52H, B-2A, B-1B, F-16C/D, F/A-18A+C/D/E/F, F-15E, AV-8B, A-10C, and F-22A aircraft. The current inventory is approximately 96,200 units and objective inventory is approximately 150,000 units. The Air Force FY14 PB request is $188.5 million for 6,965 units (however, note that the FY14 Tail kit quantities in the FY14 budget documents are incorrect and should reflect 4,451 units, not 6,965 units). The Air Force supports the FY14 PB. However, the Air Force also requested $85.5M for an additional 2,879 units in the FY14 Overseas Contingency Operations. If only the FY14 PB is met, an additional $141.5 million is required in order to procure an additional 5,428 units. However, if both the FY14 PB and the FY14 OCO requests are accepted, an additional $66.5 million is required to procure an additional 2,549 units. The FY14 production capacity is 15,000 units across the Navy, Air Force, and FMS procurement. Mr. Turner. We understand the inventory objective for the CV-22 fleet is 50 aircraft, but when the last CV-22 is delivered in 2016, the inventory will total 49 aircraft due to a class A mishap of one CV-22 in June of last year. Are there any plans to replace that aircraft to meet the CV-22 inventory objective of 50 aircraft? General Davis. The Air Force is currently exploring all funding options available to replace the CV-22 lost during training in June 2012, before the CV portion of the production line starts closing down in FY14. However, with budget reductions and sequestration, near-term funding will be difficult to find. Mr. Turner. We noted that the Combat Rescue Helicopter program is currently in source selection. When is the contract award announcement planned? General Davis. The Air Force continues to press forward with the Combat Rescue Helicopter contract award and we are currently in the 4QFY13/1QFY14 timeframe. Mr. Turner. You noted in your written testimony that the majority of the $1.32 billion across the Future Years Defense Program for F-16 modernization will focus on the service life extension program (SLEP) and the combat avionics programmed extension suites (CAPES) for 300 F- 16s. You also note that you will have to SLEP and modernize more. Does that mean you're planning to accomplish the SLEP and CAPES modifications on more than 300 Block 40 and 50 F-16s? If so, how many additional F-16s will require the SLEP and CAPES modifications? General Field. The current requirement as defined in the FY14 President's Budget is to SLEP and CAPES 300 F-16 aircraft. While there is no currently approved requirement to accomplish SLEP or CAPES modifications to more than 300, both the SLEP and CAPES programs are scalable up to 635 Block 40-52 F-16 aircraft. Potential certainly exists for the number of aircraft programmed for modification to shift from 300 (up or down) in order to address USAF requirements, but specifics pertaining to any potential shifts are not defined at this time. Mr. Turner. In your statement you describe a decreased fighter force structure of 1,900 total fighter aircraft as ``an increased risk'' to carry out the National Military Strategy, which is a reduction from a 2,000 fighter aircraft inventory 2 years ago. Please describe the increased risks in terms of meeting military objectives. What actions is the Air Force taking to reduce this risk? What actions can the Congress take to reduce this risk? General Field. The decision to reduce force structure was a very difficult one. From the mission risk perspective, a smaller force means that objectives may take longer to achieve; integrated air defense systems (enemy surface-to-air missiles and fighters, etc.) will take longer to defeat, thereby increasing the threat to our aircrews; there will be greater likelihood that the Air Force will not be able to gain and maintain air superiority, but may have to settle for temporary, local air superiority; and greater likelihood that joint/coalition ground (and possibly naval) forces will be at risk of enemy air attack for the first time since the Korean War. Insufficient capacity to support defense strategic guidance will result in more force substitutions at greater risk (particularly for air superiority missions), more difficulty conducting nearly simultaneous surge operations resulting in higher attrition and the potential for failure. Reduced capacity also drives a higher OPTEMPO leading to readiness degradation and reduced availability for enduring overseas operations. Within significant budgetary restrictions, the Air Force is mitigating these risks by modernizing and sustaining legacy fighters, by upgrading and procuring fifth generation aircraft, and by procuring preferred munitions. Congress can help reduce these risks by continuing to support the Air Force's fighter force structure with stable funding; supporting the minimum inventory requirement of 1900 fighter aircraft; allowing continued modernization and sustainment of legacy fighters, procurement of fifth generation aircraft, procurement of preferred munitions, and allowing the Air Force to close excess installations as part of a new Base Realignment and Closure process. Mr. Turner. What is the status of the Air Force's air-to-air weapons inventory? Are there shortages in the AIM-120 or AIM-9 inventories? If so, please provide additional amounts that could be executed in fiscal year 2014 to address those shortages. General Field. AIM-120 Advanced Medium-Range Air-to-Air Missile (AMRAAM) is a beyond-visual-range missile used to counter existing and emerging air vehicle threats, operating at high or low altitude and having electronic attack (EA) capabilities). The current inventory is approximately 2,500 units and the objective inventory is approximately 5,000 units. The Air Force FY14 President's Budget (PB) request is $340 million for 181 units, which is the FY14 production capacity. AIM-9M Sidewinder Air-to-Air Missile is a short to medium-range infrared-guided missile. The current inventory is approximately 3,100 units and the objective inventory is approximately 700 units. This missile is no longer in production, so there was no procurement FY14 PB request in the FY14 PB. AIM-9X Sidewinder Air-to-Air Missile is a short to medium-range infrared-guided missile, with enhanced detection and tracking capabilities, and increased maneuverability. The current inventory is approximately 1,100 units and the objective inventory is approximately 1,800 units. The Air Force FY14 PB request is $120 million for 225 units. The Air Force supports the FY14 PB. In order to reach the FY14 production capacity of 800 units across the Navy, Air Force, and FMS procurement, an additional $135 million is required for an additional 350 units. ______ QUESTIONS SUBMITTED BY MR. BARBER Mr. Barber. General Davis, thank you for your service to our Nation and your testimony before this committee today. In your testimony today, you mentioned improvements to the A-10 airframe to ensure its combat viability through 2035. I understand the A-10 is a critical close air support platform that the Services have come to rely upon for its effectiveness and precision. Truth be told, it is quite an iconic aircraft, and I'm proud to have A-10s in my district at Davis-Monthan Air Force Base. As the Air Force transitions a number of the A-10 fleet to the Reserve Component, how is the Air Force ensuring its Reserve fleet of A-10s are kept at the same level of readiness as their Active Duty counterparts? General Davis. Aircraft with existing wings that are considered beyond repair will get new wings, regardless of whether they are Active Component (AC) or Reserve Component (RC). The determination of which aircraft get new wings is based on an inspection of the wings when the aircraft is at the depot. RC aircraft will receive the standard block software upgrades (OFP). All AC and RC A-10s will receive the same OFP upgrades. Mr. Barber. General Field, thank you for your service to our Nation and your testimony before this committee today. I would like to begin first by saying I remain committed to solving the fiscal challenges and uncertainties facing our Nation today. I have said time and again that cuts applied in an across-the-board manner by sequestration are nonsensical and harmful to our national defense. While the CR provided the Department some flexibility, I am not satisfied. That being said, I understand the Department must adhere to the law and move forward with securing our national defense regardless. As the Department has begun to identify ways to be more efficient, top military leaders have stated that Building Partner Capacity will remain a critical tool for ensuring global stability. Air Force units in my State, Arizona, contribute significantly to this effort by training foreign pilots, and I am proud of their service and commitment to our global security. Over time, these airmen have developed an indispensable skill critical to the effort of Building Partner Capacity. I'm sure you can agree, as good stewards of U.S. resources, we cannot allow skills and expertise to erode as a result of sequestration. As such, it makes sense to ensure we recycle and maintain the expertise of our airmen as we integrate new technology. General, in this case, I'm talking specifically about the F-35 and Air Force basing decisions for the F-35. General Field, my question to you is this: When making F-35 basing decisions, how much weight will the Air Force place on bases' current missions and the expertise they possess from conducting those missions when determining where to base the F-35? What will drive the Air Force's basing decisions for future missions, specifically the F-35? General Field. The Air Force strategic basing process begins with criteria development, which outlines basing requirements. Mission is one of (normally) four categories of criteria. The mission category is comprised of elements specific to the weapon system being considered for basing. Each element is weighted based on their relative importance to the mission. The mission elements address requirements unique to that weapon system, not necessarily current missions at a particular location, or resident expertise. Regarding the F-35A, criteria for future training basing decisions will be reviewed and updated as necessary, but is not expected to change markedly. The strategic basing process is requirements-driven. In the case of the F-35A, future basing decisions will be based upon the aircraft delivery schedule and the potential for foreign military sales (FMS) of F-35A aircraft. The Air Force anticipates a future need to identify a long-term FMS location for F-35A training, but that is dependent upon future foreign sales. ______ QUESTIONS SUBMITTED BY MR. VEASEY Mr. Veasey. This question is for all of the flag officers. It is clear that the world is getting more dangerous, not less. The situation with North Korea makes that very clear. Iran is moving toward a potential nuclear weapon. We know that Russia and China are developing advanced stealth fighters and proliferating advanced surface-to-air missile systems. Can you discuss the importance of the advanced stealth capability that the F-35 will give us and our allies in the future to meet the increasing threats around the world. Mr. Sullivan. We have not conducted the work necessary to answer this question. Mr. Veasey. This question is for all of the flag officers. It is clear that the world is getting more dangerous, not less. The situation with North Korea makes that very clear. Iran is moving toward a potential nuclear weapon. We know that Russia and China are developing advanced stealth fighters and proliferating advanced surface-to-air missile systems. Can you discuss the importance of the advanced stealth capability that the F-35 will give us and our allies in the future to meet the increasing threats around the world. Admiral Skinner and Admiral Moran. F-35C offers the first 5th generation fighter aircraft to the Navy carrier air wing and brings with it the ability to effectively engage and survive a wide range and threats, both air and surface, in contested airspace. It provides a ``day-one'' strike capability enabling tactical agility and strategic flexibility required to counter a broad spectrum of threats and win in operational scenarios that cannot be addressed by current legacy aircraft, including operations in an anti-access/area denied environment. Key additive capabilities that F-35C will bring include very low observable stealth characteristics and fused active and passive sensors that will enhance the inherent stealth design. These fully integrated capabilities will allow F-35C to retain a `first detect/first shot' capability throughout the battlespace. F-35C's survivability and lethality will fully integrate with the other Navy Carrier Strike Group assets and provide increased real-time situational awareness to all other networked assets. As such, F-35C offers complementary, additive capability to F/A-18E/F in numerous mission areas. A force equipped with F-35C aircraft enables combatant commanders to attack targets day or night, in all weather, in highly defended areas of joint operations. Target set includes: fixed and mobile land targets; enemy surface units; and air threats (including advanced cruise missiles). F-35C will supplant some of the aging Navy TACAIR inventory by replacing early blocks of the F/A-18E/F and legacy F/A-18C aircraft. F-35C procurement remains a key element of the Navy's strike- fighter force mix. Mr. Veasey. Lieutenant General Schmidle, can you provide the Subcommittee an update on the F-35B STOVL variant's progress in the test program and discuss why you and the Commandant believe this aircraft is so critical to the Marine Corps' future? General Schmidle. In 2011 and 2012, The F-35B test program made significant progress and has demonstrated key capabilities that confirm the aircraft will meet our requirements. As of 17 May 2013, the F-35B has conducted 1,129 test flights for a total of 1,588.1 test flight hours, and has successfully completed initial ship trials, air start testing, and released both precision and air-to-air weapons. The testing of STOVL performance capabilities continues to expand the envelope resulting in our first operational vertical landing in March 2013 at MCAS Yuma, Arizona. The Marine Corps' transition to the F-35B STOVL is well under way with the establishment of VMFAT-501, the Fleet Replacement Squadron, and VMFA-121, the first tactical squadron. VMFAT-501 currently executes a full training schedule for F-35B transition pilots and maintainers. VMFA-121, which stood up in November 2012, now has 4 F-35Bs and will be fully outfitted with 16 F-35Bs by this fall. The F-35B supports the rapidly changing nature of expeditionary operations by providing flexible basing options that allow tactical aircraft to improve responsivenes and increase sortie generation rates. The value of STOVL has been demonstrated repeatedly, most recently in combat operations ashore, through the use of forward operating bases (FOBs) in Iraq and Afganistan, as well as during embarked operations throughout Central Command's Area of Responsibility. Based on the testing completed to date we are confident the Marine Corps' requirement for one tactical aircraft type, capable of multiple missions, providing the MAGTF with flexible expeditionary basing and the superior technology needed to dominate the fight is the F-35B. There are no alternatives to the F-35B that support the full range of crisis response obligations of the United States Marine Corps. Mr. Veasey. This question is for all of the flag officers. It is clear that the world is getting more dangerous, not less. The situation with North Korea makes that very clear. Iran is moving toward a potential nuclear weapon. We know that Russia and China are developing advanced stealth fighters and proliferating advanced surface to air missile systems. Can you discuss the importance of the advanced stealth capability that the F-35 will give us and our allies in the future to meet the increasing threats around the world. General Schmidle. The F-35's low observable survivability, powerful integrated sensor suite, fused information displays, interoperable joint connectivity, precision weapons suite, and self-protect anti-air weapons, is a total package of capabilities that will revolutionize our Naval Air combat power in all threat and operational environments. The advanced fifth-generation stealth capability allows our aviation elements to operate in threat environments not compatible with fourth- generation aircraft without extensive and intensive electronic warfare augmentation. By using the F-35 in these high threat environments we reduce exposure, increase survivability, and improve overall mission effectiveness with tailored and precision application. Mr. Veasey. Rear Admiral Moran, can you speak to the additional capability the F-35 will bring to the fleet and to the program's importance to the Navy's Tactical Aviation recapitalization efforts? Admiral Moran. The F-35C provides a 5th generation fighter aircraft to the Navy carrier air wing and brings with it the ability to effectively engage and survive a wide range of threats, both air and surface, in contested airspace. It provides a ``day-one'' strike capability enabling tactical agility and strategic flexibility required to counter a broad spectrum of threats and win in operational scenarios that cannot be addressed by current legacy aircraft, including operations in an anti-access/area denied environment. F-35C's 5th generation survivability and lethality is enhanced by very low observable stealth characteristics, fusion of onboard and off- board passive and active sensors, and real-time integration with other F-35Cs and Navy assets, which provide a ``first detect/first shot'' capability throughout the battlespace. The F-35C will provide a significant additive value when brought to bear with the networked fighting concepts of the U.S. Navy Carrier Strike Group and in a joint/ combined warfighting arena. Mr. Veasey. Lieutenant General Davis, affordable F-35 recapitalization is dependent on capturing economies scale as quickly as possible by increasing production as quickly as possible. It finally appears that the Department has stabilized the production rate for the F-35 program and is committed to increasing the ramp rate beginning in Fiscal Year 2015. Contrary to the public perception, I understand that unit costs have been coming down year-over-year. In fact, unit costs have come down more than 50% from LRIP 1 through LRIP 5. Furthermore, it has been brought to my attention that the projected unit cost per aircraft for the F-35A CTOL variant in Fiscal Year 2018 is projected to be approximately $75 million in Fiscal Year 2012 dollars ($85 million in then-year dollars) if the current production profile is maintained. Can you confirm this for the Subcommittee? General Davis. Based on the current production profile, the estimated unit recurring flyaway cost (URF) for the F-35A will be approximately $87 million (TY$) in FY18. The URF cost includes the airframe, electronics, engine and engineering change orders. The estimated flyaway cost is approximately $96 million (TY$) in FY18. The flyaway cost adds in non-recurring and ancillary equipment costs. The F-35A unit cost is subject to change if the U.S. Services or partner nations adjust their procurement profiles. Mr. Veasey. This question is for all of the flag officers. It is clear that the world is getting more dangerous, not less. The situation with North Korea makes that very clear. Iran is moving toward a potential nuclear weapon. We know that Russia and China are developing advanced stealth fighters and proliferating advanced surface to air missile systems. Can you discuss the importance of the advanced stealth capability that the F-35 will give us and our allies in the future to meet the increasing threats around the world. General Davis and General Field. Since World War II, the U.S. has relied on its ability to control the skies over the battlefield, protecting our forces and holding any adversary's targets at risk. Our potential adversaries are keenly aware of the importance of air superiority to our nation's way of war. This is why the development and proliferation of weapon systems that contest our asymmetric advantage in the air are increasingly prevalent. For the past 30 years, our fighter fleet remained ahead of this evolving threat, superbly performing all its missions and supporting the joint warfighter in operations such as EL DORADO CANYON, DESERT STORM, ALLIED FORCE, ENDURING FREEDOM and IRAQI FREEDOM. However, even during these conflicts we sometimes faced threat systems that posed a significant threat to our legacy fighter fleet. For example, during the first days of DESERT STORM only our fleet of F-117 stealth fighters was able to safely operate and survive in the highly contested skies over Baghdad. We believe that air superiority remains an imperative when fighting any adversary and maintaining the ability of our aircraft to penetrate and persist in contested environments is vital to the joint warfighter. As you mention, the threats we may face continue to evolve in technology and complexity. Potential adversaries are acquiring advanced fighters on par with or better than our legacy fleet, developing sophisticated and networked early warning radar surveillance systems, and fielding surface to air missile systems with increasing range and lethality. These capabilities all work together to create advanced, and extremely dangerous, integrated air defense systems (IADS). These anti- access/area denial environments seriously challenge our ability to gain air superiority and hold targets at risk. We already face this challenge in some parts of the world and as you said, and these threat environments will continue to expand as these systems proliferate. Our legacy fleet is approaching the limits of capability modernization that permits them to survive and operate in these environments--they simply do not have the advanced stealth capability required to defeat the emerging threats. Only our fifth generation fighter fleet's combination of advanced stealth, precision weapons, unmatched electronic warfare systems, fused multi-spectral battlespace awareness, combat identification systems, maneuverability, and speed has the ability to operate and survive in these advanced threat environments. All these capabilities inherent in the F-35, particularly its advanced stealth properties, ensure the U.S. and our allies have an air superiority advantage, and will enable our combatant commanders to bring the full spectrum of capabilities of the joint force to the fight.