[House Hearing, 113 Congress] [From the U.S. Government Publishing Office] [H.A.S.C. No. 113-35] 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 SEAPOWER AND PROJECTION FORCES HEARING ON OVERSIGHT OF U.S. NAVAL AND U.S. AIR FORCE ACQUISITION PROGRAMS IN THE FISCAL YEAR 2014 NATIONAL DEFENSE AUTHORIZATION BUDGET REQUEST __________ HEARING HELD APRIL 24, 2013 [GRAPHIC] [TIFF OMITTED] U.S. GOVERNMENT PRINTING OFFICE 80-764 WASHINGTON : 2013 ----------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC area (202) 512-1800 Fax: (202) 512-2104 Mail: Stop IDCC, Washington, DC 20402-0001 SUBCOMMITTEE ON SEAPOWER AND PROJECTION FORCES J. RANDY FORBES, Virginia, Chairman K. MICHAEL CONAWAY, Texas MIKE McINTYRE, North Carolina DUNCAN HUNTER, California JOE COURTNEY, Connecticut E. SCOTT RIGELL, Virginia JAMES R. LANGEVIN, Rhode Island STEVEN M. PALAZZO, Mississippi RICK LARSEN, Washington ROBERT J. WITTMAN, Virginia HENRY C. ``HANK'' JOHNSON, Jr., MIKE COFFMAN, Colorado Georgia JON RUNYAN, New Jersey COLLEEN W. HANABUSA, Hawaii KRISTI L. NOEM, South Dakota DEREK KILMER, Washington PAUL COOK, California SCOTT H. PETERS, California David Sienicki, Professional Staff Member Phil MacNaughton, Professional Staff Member Nicholas Rodman, Clerk C O N T E N T S ---------- CHRONOLOGICAL LIST OF HEARINGS 2013 Page Hearing: Wednesday, April 24, 2013, Oversight of U.S. Naval and U.S. Air Force Acquisition Programs in the Fiscal Year 2014 National Defense Authorization Budget Request........................... 1 Appendix: Wednesday, April 24, 2013........................................ 45 ---------- WEDNESDAY, APRIL 24, 2013 OVERSIGHT OF U.S. NAVAL AND U.S. AIR FORCE ACQUISITION PROGRAMS IN THE FISCAL YEAR 2014 NATIONAL DEFENSE AUTHORIZATION BUDGET REQUEST STATEMENTS PRESENTED BY MEMBERS OF CONGRESS Forbes, Hon. J. Randy, a Representative from Virginia, Chairman, Subcommittee on Seapower and Projection Forces................. 1 McIntyre, Hon. Mike, a Representative from North Carolina, Ranking Member, Subcommittee on Seapower and Projection Forces. 3 WITNESSES Allardice, Lt Gen Robert R., USAF, Air Mobility Command Vice Commander (AMC/CV), U.S. Air Force; and Lt Gen Charles R. Davis, USAF, Military Deputy, Office of the Assistant Secretary of the Air Force for Acquisition, U.S. Air Force............... 7 Stackley, Hon. Sean, Assistant Secretary of the Navy for Research, Development and Acquisition; VADM Allen G. Myers, USN, Deputy Chief Naval Operations for Integration of Capabilities and Resources (N8), U.S. Navy; and LtGen Richard P. Mills, USMC, Deputy Commander for Combat Development and Integration, Marine Corps Combat Development Command, U.S. Marine Corps................................................... 4 APPENDIX Prepared Statements: Allardice, Lt Gen Robert R................................... 79 Davis, Lt Gen Charles R...................................... 94 Forbes, Hon. J. Randy........................................ 49 Stackley, Hon. Sean, joint with VADM Allen G. Myers and LtGen Richard P. Mills........................................... 52 Documents Submitted for the Record: Data Tables from Report to Congress on the Annual Long-Range Plan for the Construction of Naval Vessels for Fiscal Year 2014, Submitted by Hon. Sean Stackley...................... 109 Estimates of Annual Shipbuilding Costs Under the Navy's 2013 Plan, by the Congressional Budget Office................... 115 Witness Responses to Questions Asked During the Hearing: Mr. Forbes................................................... 119 Mr. Johnson.................................................. 122 Mr. Langevin................................................. 120 Questions Submitted by Members Post Hearing: Mr. Forbes................................................... 125 Mr. Langevin................................................. 125 OVERSIGHT OF U.S. NAVAL AND U.S. AIR FORCE ACQUISITION PROGRAMS IN THE FISCAL YEAR 2014 NATIONAL DEFENSE AUTHORIZATION BUDGET REQUEST ---------- House of Representatives, Committee on Armed Services, Subcommittee on Seapower and Projection Forces, Washington, DC, Wednesday, April 24, 2013. The subcommittee met, pursuant to call, at 10:00 a.m., in room 2118, Rayburn House Office Building, Hon. J. Randy Forbes (chairman of the subcommittee) presiding. OPENING STATEMENT OF HON. J. RANDY FORBES, A REPRESENTATIVE FROM VIRGINIA, CHAIRMAN, SUBCOMMITTEE ON SEAPOWER AND PROJECTION FORCES Mr. Forbes. First of all, I want to welcome all of our members and our distinguished panel of experts to today's hearing that will focus on the Administration's fiscal year 2014 budget request. In the decade ahead, I believe we will increasingly lean on our seapower and projection forces to underpin our national security strategy. Our naval forces are deployed around the world, protecting the world's sea lanes and operating forward to deter conflict. Our projection forces are uniquely ready to support a wide range of mobility, strike, and strategic deterrence missions around the globe. While I am pleased at the capabilities provided by our forces today, the long-term outlook of our defense posture is being challenged. Naval forces embarked on carrier strike groups and amphibious readiness groups routinely deploy 7 to 8 months. Because of the Navy's sustained surge, our nuclear aircraft carriers are depleting their nuclear reactor propulsion units at accelerating rates. Our bomber fleet averages 37 years old, and our venerable tanker fleet averages an even older 48 years. While we are meeting the minimal requirements of our ever- retreating national strategy, it is painfully obvious that our future readiness is being leveraged to pay for our current requirements. The most recent example of the Administration's direction is the 30-year shipbuilding plan that was partially submitted on Monday. The Administration, once again, proposes the early retirement of seven cruisers and two amphibious ships in fiscal year 2015, well before the end of their service lives. With 31 ships being retired over just the next 2 years, we are headed towards a fleet size of 270 battle force ships by fiscal year 2015. Decline is a choice, and I believe this new plan willingly chooses to continue the slow, painful decline of robust American seapower. The plan also includes a significant increase to the overall ship construction budget to accommodate the Ohio class ballistic missile submarine replacement. At over $5 billion, these strategic investments in our nuclear triad are essential. Our main concern, that during the procurement and construction of the Ohio class replacement, the shipbuilding budget will demand an average of $19 billion per year. To fund both this new boat and the battle force it will take, either a substantial increase in the shipbuilding account or an effort to fund the Ohio class replacement from outside this account. I look forward to continuing to work with the Department of the Navy to address this funding shortfall. During the Navy Posture Hearing earlier this month, military leaders indicated that they were pleased at the investment in the ship construction accounts and highlighted the dearth of ships in construction when they took office. To arrest this decline, this Administration embraced the plan that includes an aggressive strategy to build a moderately capable surface combatant called the Littoral Combat Ship, that adds over 50 ships over the term of the plan. But unfortunately, the mission modules that are integral to support this 20-year seaframe are still in research and development, complicating the Navy's ability to respond to basic mine countermeasures missions and antisubmarine missions. Just as the fleet is shrinking from the retirement and procurement of less major surface combatants and amphibious ships, we are filling these shortfalls with smaller surface combatants and support vessels. We need to take steps to arrest the decline of our battle force fleet. As to the Air Force projection forces, I am pleased that we may be initiating the semblance of a credible recapitalization plan. With the support of an investment in the KC-46 Tanker Program and strategic emphasis on the Long Range Strike Bomber, I believe that the Air Force is on the right path with the right platforms for our Nation's future. I look forward to supporting these continued investments in our mobility and projection forces capabilities. As to the Marine Corps, I understand the amphibious combat vehicle is the Marine Corps' top priority for ground force modernization, and the Marines have completed the required analysis of alternatives. We need to get this program right for the future of the Marine Corps, and I look forward to receiving an update on this critical program. I would be remiss if I also did not recognize the Navy in providing a credible long-term acquisition strategy that uses block buy on multiyear procurements to secure steep reductions in overall Naval pricing. Not only is this a good strategy for our Nation's taxpayers, it provides the long-term surety to our industrial base, that will allow them to make critical investments for their long-term health. My friends, we are at a strategic inflexion point in terms of our defense policy. Concurrent with the new strategy being contemplated by this Administration, my fear is that the overall capabilities of our military will continue to atrophy, and our inability to be able to operate forward and project power, will embolden regional instability. In the end, future defense reductions will be paid for in the lives of our service members. I refuse to accept this premise and will do everything in my power to arrest further decline from modernizing and growing our capabilities. Joining us today to discuss the fiscal year 2014 budget request, are five distinguished and patriot gentlemen. The Honorable Sean Stackley, United States Navy Assistant Secretary of the Navy for Research, Development and Acquisition. Vice Admiral Allen G. Myers, U.S. Navy. He is the Deputy Chief of Naval Operations for Integration Capabilities and Resources. We have Lieutenant General Richard P. Mills, U.S. Marine Corps Deputy Commander for Combat Development and Integration. We also have Lieutenant General Charles Davis. He is the Military Assistant of the Air Force for Acquisition. And, Lieutenant General Robert R. Allardice, Vice Commander of the Air Mobility Command. General, we thank you all for being here, and one thing I would like to emphasis at the beginning is, I understand two of you are going to make actual opening comments and then respond to questions. This is probably, if not the most bipartisan committee, it is probably one of the most bipartisan committees in Congress. We share a common goal in making sure that we are reaching the desired strength that we have for our military. We appreciate all of your Services here. There is no attempt to embarrass any of you with any questions. We understand you are speaking for the Department in your respective Services, but it is also our goal to try to make sure we are asking the tough questions, so we are putting all the facts on the table and moving forward with the kind of oversight we need. Our members will try to do that today, but in the end, I want to make sure I am going to give each of you an opportunity. If you have left anything out or felt you need to change anything or you need additional time, I am going to give it to you, so that you can make sure you get that on the record. And with that, I want to recognize now my good friend and ranking member, Mike McIntyre, from North Carolina, with any remarks he might have. Mike? [The prepared statement of Mr. Forbes can be found in the Appendix on page 49.] STATEMENT OF HON. MIKE MCINTYRE, A REPRESENTATIVE FROM NORTH CAROLINA, RANKING MEMBER, SUBCOMMITTEE ON SEAPOWER AND PROJECTION FORCES Mr. McIntyre. Thank you, Mr. Chairman. And thanks to all of you for your service to our country, and thanks to your families for their sacrifice in the great work that you do. We know this is a critical time for both the Department of the Navy and the Department of the Air Force, and with the combination of prior cuts and implementation of sequestration, the Navy and Air Force are being forced to make tough decisions. For the Navy, the budget request, $14.1 billion for shipbuilding for eight new construction battle force ships. I was pleased to see the Navy was able to include a second Virginia class submarine in the budget request because we know maintaining a 2-ship buy per year Virginia class submarines is an important part of the Navy's effort to mitigate the submarine shortfall that is predicted in the coming years. It is our understanding that the Navy is still trying to decide whether the next multiyear procurement for destroyers will be a 9-ship or 10-ship buy due to the impacts of sequestration. We need to hear from the witnesses as to how this subcommittee could be of assistance in obtaining that additional ship. For the Marine Corps, I know that the development and fielding of a new amphibious combat vehicle is one of its top priorities, and this budget includes $137 million towards that effort. Our subcommittee will be interested in hearing how the Marine Corps plans to field this important capability while also avoiding the cost growth that led to the cancellation of the Expeditionary Fighting Vehicle. This budget continues the development of two high-priority initiatives for the Air Force, the new Long Range Strike Bomber and the new aerial refueling tank or aircraft. The current age, the average age of the bomber fleet being 37, and the average age of the current tanker fleet being 48, we know it is critical that these platforms deliver on-time, and also, in an affordable manner. We are concerned very much about sequestration. We certainly hope that the witnesses can explain how these cuts are affecting your respective Services so that our subcommittee can understand the short-term and the long-term impacts, and how we can be of the absolute help we want to be to the Navy, to the Marine Corps and to the Air Force. God bless all of you all for your commitment and sacrifice, and thank you for being with us today. Mr. Forbes. Mike, thank you for those comments, and Mr. Secretary, I think you are going to lead off for us, and again, we thank you and your office for your responsiveness to this committee and you have done great work in trying to get us the questions we have asked. We appreciate that cooperation, and we look forward to your remarks this morning. STATEMENT OF HON. SEAN STACKLEY, ASSISTANT SECRETARY OF THE NAVY FOR RESEARCH, DEVELOPMENT AND ACQUISITION; VADM ALLEN G. MYERS, USN, DEPUTY CHIEF NAVAL OPERATIONS FOR INTEGRATION OF CAPABILITIES AND RESOURCES (N8), U.S. NAVY; AND LTGEN RICHARD P. MILLS, USMC, DEPUTY COMMANDER FOR COMBAT DEVELOPMENT AND INTEGRATION, MARINE CORPS COMBAT DEVELOPMENT COMMAND, U.S. MARINE CORPS Secretary Stackley. Thank you, sir. Chairman Forbes, Ranking Member McIntyre, and distinguished members of the subcommittee. Mr. Forbes. Mr. Secretary, could you use that mike closer to your mouth. They can be a little sensitive sometimes. Secretary Stackley. Yes, sir. Thank you for the opportunity to appear before you today, to address the Department of the Navy acquisition programs and, with the permission of the subcommittee, I propose to provide a brief statement and submit a separate formal statement for the record. Your Navy and Marine Corps team is this Nation's expeditionary force in readiness, a balanced naval, air, and ground force forward-deployed, forward-engaged, on the ground in Afghanistan; performing maritime security along the world's vital sea lanes; missile defense in Mediterranean and Sea of Japan; intelligence, surveillance, and reconnaissance where needed, as needed; persistence of presence at sea with an embarked Marine force ready to move ashore. They're conducting antipiracy patrols, global partnership stations, humanitarian assistance in a quietly, reliably on patrol providing strategic deterrence, and all the while, training for the next deployment, the next operation, the next crisis, the next contingency. The Department of the Navy's 2014 budget request provides the resources needed to meet this full range of missions, and it provides the investment required to execute tomorrow's mission against the future threat. But before discussing the 2014 budget request, it is important to mark where we are in 2013. The 2013 budget request reshaped our shipbuilding, aviation, and tactical vehicle plans to reflect the priorities of the new defense strategy. And Congress strongly supported that request. In fact, funding was increased for additional ships and aircraft, as well as for operations and modernization of the in-service fleet. Too, the Authorization Act provided multiyear authority for submarines, destroyers, and MV-22 [Osprey tiltrotor] aircraft and, with that, stability for the industrial base and near $5 billion in savings for the taxpayer. However, sequestration more than offset these gains, and we are about $11 billion out of balance across operations, maintenance and investment. And given the method of applying sequestration and our limited ability to reprogram funds to resolve fiscal year 2013 issues, we need to identify workarounds to each line of the budget in order to execute the planned program as best as possible. In the end, there will be impacts. Reductions to operations and maintenance funding is directly impacting our near-term forward presence and our depot maintenance and training, which will affect future operational rotations, and the readiness of our nondeployed forces will be reduced. In our investment accounts which provide for future readiness, we are weighing alternatives to mitigate quantity reductions, scheduled delays and the cost impacts due to each of our ship, aircraft, and weapons systems programs. We will work with your staff as these details unfold, particularly as they affect the 2014 budget deliberations. The 2014 budget request balances capability and readiness in support of the defense strategy while maintaining focus on affordability and the industrial base. Our shipbuilding program is stable as we continue to build towards a 300-ship force as defined by the Navy's force structure assessment. Submarine, destroyer, Littoral Combat Ship, and mobile landing platform construction performance is strong, and these program savings have been reinvested to uphold our shipbuilding rates despite downward pressure on the budget. In fact, we increased construction in the near term, with the addition of a second Virginia class submarine in 2014 towards that program's 10-built multiyear, and we will work closely with your subcommittee to determine how to best overcome the impact of sequestration to likewise award the additional tenth DDG 51 [Arleigh Burke class guided missile destroyer] as part of that program's multiyear. Two years ago, we reported cost growth on the lead ship of the Ford class aircraft carrier program, stemming from development of new systems and delays in design and material, all impacting production. Our efforts to improve on this performance has stemmed cost growth on the lead ship but not reversed it. Accordingly, we are requesting cost cap relief and funding to complete CVN 78 [USS Gerald R. Ford supercarrier] in accordance with our previously reported estimate. We are attacking these issues on the next carrier, CVN 79 [Ford class supercarrier USS John F. Kennedy] and are working with the shipbuilder to replan materiel ordering, work flow on fellow ships, and needed facility improvements in order to reduce costs of our future carriers. Performance in amphibious ship construction is much improved. LHA 6 [Landing Helicopter Assault] lessons are rolling into LHA 7 construction, and the recently delivered LPD 23 [amphibious transport dock ship] and LPD 24 are entering the fleet at high levels of quality and completion, and we look for this trend to continue as we complete the remaining ships in that class. Looking ahead, we are conducting design studies and analysis of alternatives for future amphibious and auxiliary ships. LHA 8, the future LX(R) to replace the LSD [Landing Ship, Dock] 41/49 class and the future oiler T-AO(X), as we consider the workload at our shipyards and the vendor base, it is critical that we press forward with these ships' design in order to find opportunities to pool work forward affordably as necessary to sustain this critical sector of our industrial base. I would like to briefly address the Ohio replacement program. Requirements are stable and development and early design are on schedule to support procurement in 2021. Affordability of the Navy's shipbuilding program during the period of the SSBN construction remains a priority however. And while design for affordability is a central tenet of our Ohio replacement strategy, meeting our cost objectives will not alone bring our shipbuilding, topline, within reach during that program. Like our shipbuilding program, the stability in aviation programs is provided by mature programs being procured under multiyear contracts, the Super Hornet, the MH-60 helicopter, and the MV-22 Osprey. To this list, we are requesting authority for multiyear procurement of the E-2D [Advanced Hawkeye early warning and control] aircraft commencing in 2014. When the leading edge of modernization of our maritime patrol fleet, our ability to leverage commercial production of the 737 aircraft for the P-8A [Poseidon multimission maritime aircraft] has reduced costs and risks for this aircraft which is preparing for its first deployment later this year. Likewise, the Navy's MQ-4 Triton aircraft, which is making progress towards its first flight later this spring, leverages Global Hawk development to provide high-altitude, long- endurance unmanned capability to complement the P-8A. The third leg of our balanced new war ground force, Marine Corps tactical vehicles, is at the front-end of much needed recapitalization. We brief this committee on our strategy to replace the HMMWV [High-Mobility Multipurpose Wheeled Vehicle] with a more capable, survivable, joint, light, tactical vehicle being procured jointly with the Army. And with the termination of the expeditionary fighting vehicle, to replace the aging amphibious assault vehicle, with a more capable, more survivable, amphibious combat vehicle that meets thresholds set for affordability. The JLTV [Joint Light Tactical Vehicle] program remains on track with the 2014 budget request, continuing development and support of procurement commencing in 2015. We are continuing to review, with the Army, the impacts of sequestration on that schedule and we will advise the results upon completion of this review. The amphibious combat vehicle is as the commandant stated in testimony, top Marine Corps priority. In order to ensure we get this right, we are conducting a combined requirements definition feasibility study spanning the best of Government and industry requirements, design and cost experts. Our intent is to bring the best talent and best information together to build on the tremendous body of knowledge we possess across all of our vehicle programs and determine how to deliver the capability needed by the Marine Corps with high confidence and the affordability of the defined requirements. We have engaged your staff on the front end of this process and will remain engaged as we press to future milestone decisions. Mr. Chairman, thank you for the opportunity to appear before you today. I look forward to answering your questions. [The joint prepared statement of Secretary Stackley, Admiral Myers, and General Mills can be found in the Appendix on page 52.] Mr. Forbes. Mr. Secretary, thank you. And General, I understand that you are going to make our other presentation, and we appreciate your service to our country, and thank you for taking time to help us this morning, and I turn the floor over to you. STATEMENT OF LT GEN ROBERT R. ALLARDICE, USAF, AIR MOBILITY COMMAND VICE COMMANDER (AMC/CV), U.S. AIR FORCE; AND LT GEN CHARLES R. DAVIS, USAF, MILITARY DEPUTY, OFFICE OF THE ASSISTANT SECRETARY OF THE AIR FORCE FOR ACQUISITION, U.S. AIR FORCE General Allardice. Thank you. Chairman Forbes, Ranking Member McIntyre, and distinguished members of the subcommittee, with your permission, sir, I will make some brief opening comments and ask that our full written statements be placed in the record. Sir, thank you for your steadfast support of our airmen as they go about the Nation's work around the world. General Davis and I are honored to be joined today by the distinguished members of this panel. We recognize that we are at our finest when we operate as a true joint team and our willingness to work together towards solutions to future challenges is absolutely critical. It is humbling to be here representing the 134,000 airmen from the Active Duty, Air Force Reserve and the Air National Guard today. Included in that number is nearly 10,000 dedicated civilians without whom we could not accomplish our mission. When combined with the commercial industry and industry partners, these teams round out our national air transportation capability. We are grateful for the support that this committee provides our entire team as we execute our global mission every day. The remarkable thing about our air mobility forces, our fellow citizens don't often hear about what they do. We go about quietly accomplishing our mission behind the scenes without the Nation understanding how dependent they are on rapid power projection. Rapid global ability gives us strategic options that no other nation in the world enjoys today. We have seen this play out time and again across the full spectrum of operations from humanitarian to combat. Our fellow U.S. citizens in the Northeast saw this in play last fall when a total force team transported utility trucks from California to an Air Reserve base outside of Boston, where they were desperately needed in the aftermath of the Superstorm Sandy. Halfway around the world, the continuous bomber presence in the Pacific, which has proven invaluable in expressing this Nation's will is impossible to happen without the support of the air refueling capability that your mobility airmen provide. We work very closely with our combatant command, the United States Transportation Command to ensure that we are ready to provide forces that meet geographic combatant commander requirements. Although we inform how those requirements are derived, we ultimately don't establish them. The fiscal year 2013 NDAA [National Defense Authorization Act] directed a mobility capabilities and requirement study, and we fully support that endeavor. We support the President's fiscal year 2014 budget request. This budget fully funds the Air Force's number 1 acquisition program, the KC-46A. We are excited about the future of this program as it remains on time and on budget. This summer when the assembly of the first aircraft is scheduled to begin, we will be another step along the path replacing the KC-135 [Stratotanker aerial refueling aircraft] fleet which you have indicated, Mr. Chairman, as 54 years old at this time. The fiscal year 2014 request includes funding for the final 11 kits to convert our C-5A [Galaxy strategic airlifter] into modern C-5Ms [Super Galaxy], resulting in a final fleet of 52 C-5Ms. The 10 C-5Ms we currently have supporting our global engagement are performing absolutely magnificently, and they are a true force multiplier. We also to continue to recapitalize the C-130 [Hercules tactical airlifter] fleet, funding six additional C-130Js, and perhaps, most importantly, the fiscal year 2014 request provides a path forward to the readiness challenges we are facing as we absorb sequestration into our fiscal year 2013 flying hours and weapons systems sustainment. Our airmen have responded to sequestration, as they always do, with dedication and innovation. We are doing some of the easy commonsense things like giving back Blackberries and turning in staff cars. We are also having to cut our own staffs, and now we are getting down to the absolute bone of readiness and sustainability. Last year at this time, we were before you with a request to significantly adjust our force structure. We wanted to thank the committee for your willingness to work with the Air Force, and believe, that the total force proposal included in the fiscal year 2013 NDAA showed our willingness to listen to every stakeholder in the air mobility family. We know these changes aren't just something we talk about here. They affect communities that support our airmen, and they affect our airmen themselves. Although today's focus will be on the tools we use, it is our airmen that power all these tools. They say goodbye to their families and always find a way to get others to the next day. Whether it is a combat air drop in Afghanistan, humanitarian food and water deliveries in Haiti, or holding the hand of one of our injured soldiers from the battlefield during an air medical evacuation flight, your air mobility airmen always answer the Nation's call. Again, Mr. Chairman, we thank you for the opportunity to appear before you today, and we look forward to your questions. [The prepared statement of General Allardice can be found in the Appendix on page 79.] [The prepared statement of General Davis can be found in the Appendix on page 94.] Mr. Forbes. General, thank you. And to all of you, we appreciate you being here. The questions that we are going to ask you, we need very much to do the oversight that we have to do and to prepare the NDAA markup that is coming our way. I am going to ask just an initial question or so to lay a foundation of where we are going, then I am going to defer most of my questions until the end of questions, and we just need to be able to do the kind of hearing that we need to do to make sure we got the record necessary for that markup. You have got tremendous expertise on this panel, and I am looking forward to their questions as we go forward. This is not an examination for any of you so feel free if you need to talk to your staffs or coordinate with one another if I am asking the wrong person the question, please someone else chime in. And also, if the question is unfair. Just tell me that, and I will try to rephrase it. And what I want to start with is, kind of a take-off where the general just left us. We talked about all the cuts that are taking place now with Blackberries and staff and everything that is there, but I want to put sequestration on the shelf for just a moment. And I want to look at the fact that, according to our numbers and everything our staff can show before sequestration, we had about $800 billion of cuts the Administration has made over the last 4 years to our projected 10-year spending. Admiral, are our figures right, is that the right figure that took place before sequestration? Was it a cut of about $800 billion over the last 4 years in projected figure and, if not, what is the correct figure? Admiral Myers. Chairman, I think you are referring to the PB 12 [President's Budget 2012] efficiencies that was under Secretary Gates, and that was the $487 billion---- Mr. Forbes. But according to our staff, the actual cuts that we have had over projected spending for the next 10 years, that the Department of Defense has had, has been $800 billion in that 4-year period of time. What is the total amount of cuts that were taken prior to sequestration, over a projected reduction in spending, that would take place over the next 10-year period of time. Do you know that figure or can you get that figure for us? Admiral Myers. That was part of the PB 12 initiative and submission and for the Navy that represented $48 billion. Mr. Forbes. But for the whole Department of Defense, because I am going to ask everybody that question, do you any of you know what that figure--and this is an open book then, $800 billion is what our staff has come up with. That is what HASC [House Armed Services Committee] says it is, do any of you know what that figure actually was before sequestration? And so, let me just go down the line then. Admiral, what do you think that figure was? Admiral Myers. The PB 12 submission, we were on record talking about $487 billion. Mr. Forbes. So you think that the total amount of cuts that the Administration has taken to national defense reduction and spending has been $487 billion? Admiral Myers. That was the Department of Defense number. Mr. Forbes. Okay. Mr. Secretary. Secretary Stackley. Yes, sir. The $487 that Admiral Myers cited there is also an initiative to identify efficiencies within our budget anticipating further pressure on the topline of about $100 billion, but with the intention of create those efficiencies and plow them back into investments. Mr. Forbes. But as you and I both know, because that is what the Secretary said when he had his press conference, but they didn't go back into reinvestment, did they? Didn't they come out---- Secretary Stackley. Over time, they got eclipsed by the $487, and then subsequently, sequestration. Mr. Forbes. So the total figure before sequestration that you believe it was would have been---- Secretary Stackley. Four eighty-seven, and I really want to come back to you on the record to---- [The information referred to can be found in the Appendix on page 119.] Mr. Forbes. Okay. Secretary Stackley [continuing]. Verify that number. Mr. Forbes. General, what does the Marine Corps think it was? General Mills. I am going to take that question for the record. [The information referred to can be found in the Appendix on page 119.] Mr. Forbes. Okay. Either general for the Air Force? General Davis. Sir let me--the $487 figure is the one we have been working with. I do know also that, as Secretary Stackley mentioned, the Air Force went through its own drill as well with a $30 billion efficiency wedge across the FYDP [Future Years Defense Program] that we had to go find, so we need to get it for the record, but I have no doubt that there was other things that may have added up to get to that. [The information referred to can be found in the Appendix on page 120.] General Allardice. Sir---- Mr. Forbes. Pardon me? General Allardice. I will have to take it for the record. [The information referred to can be found in the Appendix on page 119.] Mr. Forbes. What I would love for you to do is have your staffs work with our staffs so we finally get that figure, and one of the things that concerns me is, right now, we don't even know what the figure is. And that ought to be frightening to us, and the second thing, I am going down the line on you, too. Admiral, do you have any knowledge that of that $487 or $587, or if it is $800 billion as we think it was, during any of that time, did the Navy ever say, ``Too many cuts, we shouldn't be taking this,'' to your knowledge? Before sequestration? Admiral Myers. I think the Navy was on record when we submitted the PB 12, reflecting exactly where those cuts were coming from and where they were taken and the pressure it was putting on the Department of the Navy. And part of that pressure was reflected in the shipbuilding plan where we intended to retire the seven cruisers and the two LSDs. So I think the that Navy was very forthright in showing where the pain was. Mr. Forbes. Did you submit any statements that you know of or is there any statement--and I don't expect you to have that information now, but I would like for you to get that back to us because I have sat through a lot of hearings, and I never heard the Navy make those comments. And I could have missed them, but if you would get that back for me, I would just love to have that in my hand of where they objected. [The information referred to can be found in the Appendix on page 119.] Mr. Forbes. Mr. Secretary, do you recall the Navy having objected on that $487 or the $800 billion, the total figure, whatever it comes down, anything other than sequestration that the Navy ever said, ``This is too much. We shouldn't have these cuts.'' Publicly. Secretary Stackley. Publicly. Honestly, sir, what we do is we take our requirements, we take the budget and we balance, and when our requirements and the budget are out of balance, what we do is inform the system of what the impacts are and what the risk is. Mr. Forbes. Did you ever know that the Navy ever informed the system of what those impacts would be, outside of sequestration, because again, as I have sat through hearing after hearing, we have asked that same question. And what we were always told was this, ``These are acceptable risks. We are okay with these cuts.'' Do you recall that time when the Navy ever said, ``Too much. We shouldn't have these cuts.'' Secretary Stackley. I can't cite a point where the Navy said, ``This breaks us.'' Mr. Forbes. Would you do as I asked the admiral and try to find that and come back and let us know if there are any such statements that you can put your hand on? Secretary Stackley. Yes, sir. Mr. Forbes. Good. General, Marine Corps, same thing. General Mills. Sir, I would say that, in various statements before the various congressional committees, the Marine Corps, over the past couple of years, has been clear that the reduction in budget was going to affect our manpower numbers, for instance. That is---- Mr. Forbes. But did they not say, ``These are acceptable risks, we can take them.'' General Mills. As far as I know, yes, sir. Mr. Forbes. And if you--if I have missed any, General, if you would get back to me on any statements outside of the sequestration, of the cuts the Administration has. When you come back with that final number, let me know where the Marine Corps said, ``This is too much.'' General Mills. Yes, sir. Mr. Forbes. And, General Davis and Allardice, either one. General Davis. Sir, I do think there was statements made in the previous posture hearings that our Chief and Secretary said that that presents risks. Mr. Forbes. Before the sequestration? General Davis. Yes, sir, on the previous budget, and I will caveat that with, as we are looking at it now, if we get the ability to take the force structure in the areas where we felt we could take the risks, much of that did not materialize and was reversed, and so that created a new and unique situation for the Air Force. The one thing I will say, having work acquisition programs, we have some flexibility to try to cover capabilities when we know what a cut is. And I will just add for the record, as we look in the outyears, the uncertainty of what 2015 and 2016 and beyond looks like, probably creates a much greater risk than having a known number. Mr. Forbes. And granted the unknown is always there, but at some point in time, the sheer numbers, and we will talk about in just a second, create a problem because that means we turn in Blackberries and we turn in staff, and we do all those kinds---- General, anything that you remember the Air Force, outside of sequestration, of those cuts, when we ultimately determine what the number is? General Allardice. No sir. To the best of my knowledge, we articulate it in terms of risk and how much risks we are incurring but---- Mr. Forbes. And let me just tell y'all, every hearing I sat through, here is what I was told, ``It is acceptable risk.'' No one ever told us, ``No, no. This is hitting in the wrong----'' Now here is why I want to ask this, and I am going to finish with this question and then go to somebody else and come back with you. As I look at the shipbuilding plan that we are talking about now, one, we have reduced the number of ships that we have, overall, and a lot of those ships were 2038 before we actually see the ships go into our fleet. Mr. Secretary or Admiral, you both know, we live by our accountants, you live by your accountants, and the Congressional Budget Office is who we have to rely on a lot of times to do our analysis. Regardless of whether we take the Congressional Budget Office or we take your figures, over the life expectancy of this shipbuilding plan, if we take your figures, we are looking at about $16.8 billion average shipbuilding costs, and that doesn't count the refueling. If you add that in, which normally comes out of the shipbuilding account, I think, that is about $18 billion to $19 billion. Is that a fair statement? Secretary Stackley. That is correct, sir. Mr. Forbes. CBO [Congressional Budget Office], of course, would differ with your numbers. They would say about $22 billion, but regardless, let's take your figure. The average amount that we have had for shipbuilding in our budget, for the last 30 years, and there is no big spikes in this. As you know, it has been less $15 billion. My question for both of you in making these assumptions, can you present to me any evidence at all, a scintilla of evidence, that would suggest that we will have those increases in budgets, as we move down the road. In other words, if you have been getting less than $15 billion for 30 years, if our curve lines on cuts that y'all just talked about are heading down like this, and if our shipbuilding plan is going to depend on us having a huge spike- up in dollars that come in the shipbuilding plan. And that is what we are basing it on. Give me the evidence that would suggest to you that we will have any additional dollars at all from a fiscal point of view, from Congress, to make the shipbuilding plan work. Secretary Stackley. Sir, let me break this down in a couple of parts. First, the way we outline the long range shipbuilding plan, we break it up into phases or periods. We talk about the near term, mid term and long term. And clearly, when you get out to the mid term and long term, those projections are--they get more ambiguous because we haven't defined, exactly, what those platforms will be and the capabilities. So we don't place a lot of fidelity on the long term. The near term, we believe we have a lot of fidelity in the FYDP plus right beyond the FYDP, and so, in terms of our budget projections in the FYDP what we see today, we think that is solid, sequestration aside. The most significant issue in that plan, which I touched on in my opening statement regards the impact of recapitalizing our strategic deterrence capability. And clearly--clearly that program which in then-year dollars when you consider the R&D [Research and Development] investment and the procurement dollars, we are talking about $100 million, roughly, over about a 12- to 15-year period. That dominates the affordability discussion during that period, and it doesn't place a lot of weight, overall, on the 30-year period. So that is the most significant--most daunting--challenge that we are staring at in terms of our shipbuilding program. It is our--as I have stated, while we are focused on affordability, we have stabilized the requirements. We are making the progress we need to make today. All of our efforts to improve affordability of that boat and that programs will not be sufficient to bring our shipbuilding requirement during that period down to within our historical budget. So I cannot point towards evidence. I would have to point back to the build-up of the 600 ship Navy, during the 80s, when we last saw those levels of shipbuilding investment. Mr. Forbes. So then, Mr. Secretary--and I appreciate your candor in this and before I go to Mr. Courtney, I just want to make clear that, while we do not have a lot of confidence in the long range projections of our fiscal forecasting, of doing that. That fiscal forecasting is what will determine whether we get the number of ships we need in the Navy. So if we don't have a lot of credibility in that, we also don't have a lot of credibility that we are going to get that number of ships. Fair? Secretary Stackley. Yes, sir. Mr. Forbes. Can't get the ships unless you get the dollars. Secretary Stackley. Yes, sir. We have the near term, the mid term, which is where the high replacement takes place---- Mr. Forbes. There is a chart, and again, I know you have probably seen it, this is a CBO chart, but when we are talking about those spike-ups in spending, the spike-ups come after the Administration leaves office essentially for most of these. Secretary Stackley. Yes, sir. Mr. Forbes. So what we are saying is to make these projections, we are talking about a reality, we are going to have a significant turnaround in the dollars that will have to go into ship construction and shipbuilding. Fair? Secretary Stackley. We need a steady increase, and we have to separately or distinctly, address the cost impact associated with recapitalizing---- Mr. Forbes. But yet, what we have seen is a constant reduction that has taken place in our overall spending for-- that is of the last 4 years. Secretary Stackley. Not in shipbuilding. You can't relate that---- Mr. Forbes. We haven't seen an increase, have we? Secretary Stackley. In the last 4 to 5 years, there has been an overall increase to our shipbuilding investments. Mr. Forbes. Okay. I will come back to that. Mr. Courtney, I would like to recognize you for 5. Mr. Courtney. Thank you, Mr. Chairman. And thank you to all of the witnesses for being here. Before I begin, I would actually like to step back for a moment and just recognize one of our staff who is leaving us after today's hearing. Lieutenant Commander Phil MacNaughton who is sitting behind me and has been with this staff for, I think around 5 years or so, has provided amazing advice and expertise to all of us because his lead has been on the Seapower Committee. He is leaving to serve his country. He is heading to the Middle East and, you know, which just shows what kind of person he is in terms of his commitment to public service. As a staff member, he is probably one of the few guys who has actually piloted some of us in terms of our trips to various places, which is about as good as it gets, and again, I would just ask my colleagues to recognize Phil's great work that he has done for the committee and wish him safe travels and safe work as he, again, steps up his commitment and sacrifice for our country. [Applause.] Thank you. Mr. Secretary, again, I just wanted to maybe sort of bring some of the discussion down to some of the, you know, nitty-gritty of the last year or so, again, congratulations to both of you and Admiral Myers, and all of the witnesses for sort of trying to get through this incredibly tumultuous budget environment where, I mean, literally, from day-to-day it has been hard to predict what this place was going to do. And again, this committee, I think, subcommittee, certainly tried to work with you last year, particularly, with the DDG and the Virginia class language that came out in the Defense Authorization Bill, which again, tried to provide some flexibility for the block contracts that, again, are very close. Can you give us an update in terms of where you see the Virginia class block contract negotiations and, you know, maybe what we can expect in terms of, you know, some type of announcement or agreement? Secretary Stackley. Well first, sir, I make it a point to not discuss negotiations, particularly at a public hearing. But, you know, the program is building on success, so the nature of the negotiations is twofold. One is, how do we continue to achieve the savings that Virginia has accomplished, literally, through the series of block buys going into this multiyear, in order to hit the full savings that we reported to Congress, and I have no doubt that we are going to get there. And we are going to get there in a timely manner. One of the challenges that we have, it is sequestration related, was, we did lose some advance procurement funding, which is in a separate line, that we are working with the shipbuilder to figure out how do we compensate for that loss of AEP because it is critical to our schedules, and our schedule execution in the multiyear is critical to hitting our savings. So that is a detail that we are working. I have no doubt that we will pull through that, but there will be some dollars that need to be backfilled in 2014, that we will discuss with your staff in that regard, and I think they can anticipate that coming. So the bottom line is, you know, we are going to plow through the details, to get to the 10-boat multiyear. There is some repair work to do as a result of sequestration, and we are going to work closely with the shipbuilder to minimize the impact of that speed bump on the execution. Mr. Courtney. Well, again, and I know you well, I mean, just certainly keep us informed about where the problem is. I mean, Majority Leader Reid and Senator Schumer place were both on the floor talking about trying to come up with a package to mitigate sequestration. So, it seems like there some stirring go around, and frankly, the more we can get examples of the harm that it is causing to, again, a very promising development in terms of getting an affordable contract, that just adds fuel to the argument about why, you know, we need to come together in this place and fix this. The other question I just wanted to ask, and again, I know a lot of other members are bursting here, is LCS [Littoral Combat Ship], you know, obviously, if you look at the shipbuilding plan, that is a big piece of where the numbers are. And I just wondered if you could give us a sort of update, in terms of, and obviously there are press reports swirling around this, and any information you can share with us this morning, I would appreciate. Secretary Stackley. Yes, sir. And I will probably split part of this with Admiral Myers. Let me talk first about the shipbuilding side and have Admiral Myers discuss the operational side. The shipbuilding, as I discussed in my opening statement, the construction is going well. We signed up for the block buy. We are midway through the block buy. We are seeing performance at both shipyards within our budget projections. We are using delivery schedules on that program to balance with costs. In other words, we are not going to put a lot of pressure on delivery schedule if it creates any cost challenges on the program, but overall, between both the LCS 1 version and the LCS 2 version, we are seeing a steady rate of improvement in terms of cost performance, operating within our budget, and again, that budget was sized to achieve the $2.9 billion savings across the 20 ships of the block buy. So that part of the program is stable. Again, there is a sequestration impact that we have got to work through. Every line item was hit by sequestration. So in the case of LCS execution, sequestration has added risks on the budget side, because we had to pull money out of everywhere we could without impacting the overall program, but when you do that, you add risks, and some of that we might be needing to come back to you all to address backfilling. The mission module side is in development, and we have three mission modules in development. The first one that is going forward, its initial operational capability is the mine countermeasure mission module, and that is scheduled for its IOC [Initial Operational Capability] in 2014. The elements of the mine countermeasure mission module are each doing well. The remote minehunting vehicle, which is central to the mission module, went through the reliability growth program. It is far exceeding what the targets were for reliability. The sensors that are associated with that mission package are performing in accordance with their requirements with one exception where we are at 90 percent of the threshold trying to get the rest of way there. And then we have a neutralizing system that is meeting its requirement in testing, and we are trying to expand that to address other parts of the water column. The bottom line to all that is, the mine countermeasure mission package is moving smartly through its development schedule; however, IOC in 2014 is now at risk because of sequestration in 2013, so the reduction in the Research and Development funds to complete that development and testing, might bump that IOC. We are trying to hold onto it, but I can't give you confidence when you take that much of the funding away in the year of execution prior to ROC [Required Operational Capability] that we can gracefully recover. So that is at risk measured in months, but we see that getting across the finish line in the course of 2014 or early 2015. The ships and mission packages are timed well in terms of the mix delivering to the fleet, and I think I will turn it over at this point, and have Admiral Myers address the operational side. Admiral Myers. Thank you for the question. The--we are pleased with our LCS, and just to give you a kind of a rundown on where we are with the ships. The Freedom, the Independence, LCS 2, and the Forth Worth, they are are all conducting either testing, maintenance or routine crew proficiency training throughout 2012. Freedom operated off the coast of Southern California throughout that year, and basically, got herself ready for her deployment to Singapore, and I will talk about that in just a second, what we hope to gain from that. The Independence, we have tested the sea frame and the MCM [Mine Countermeasure Module] mission package requirements, and she sailed around from the East Coast and is now homeported in San Diego. The Forth Worth, that is the LCS 3, she has been placed in commission after successful completion of the builders and acceptance trials and is currently homeported in San Diego as well, and she will be the combat systems ship qualification trials best ship. The PCU [Pre-Commissioning Unit] Coronado, LCS 4, continues training in preparation for her mid-2013 planned delivery to the Navy. Now, in terms of Freedom, her arrival at Singapore represents the beginning of a proof-of-concept deployment. This is going to demonstrate LCS capabilities that are going to allow us to assess crew rotation and our maintenance plans. The Freedom will conduct maritime security operations, she'll participate in international exhibitions and exercises to highlight the U.S. strategic intent in the Southeast Asia region. This will also help to reassure our partners, our bilateral and multilateral partners, of our commitment in our pivot to the Asia-Pacific region. The Navy is going to get valuable insight into the unique capabilities of LCS and what this ship is going to bring to the fleet, into their joint military operations and, based on this deployment and insights from the proof of concepts that we are going to gain from this 8-month deployment, we are going to take that and roll that into our lessons learned, and also, continue with the testing and the certification of the Freedom and the rest of the LCS class in the Navy. Like all first of class ships, we continue to assess the ships' performance. We implement lessons learned, and we make corrections where necessary, so we are very pleased and happy to talk about the mission packages separately if you want me to do that. Mr. Forbes. Mr. Courtney, thank you for your questions and your expertise in this area. And thank you for recognizing Phil and his good service to our committee and to our country. I would now like to recognize the Chairman of the Readiness Subcommittee, an expert on these matters, Congressman Wittman. Mr. Wittman. Thank you, Mr. Chairman and Secretary Stackley, and Vice Admiral Myers, Lieutenant General Mills, Lieutenant General Davis and Lieutenant General Allardice, thank you all so much for joining us today. We appreciate your service to our Nation and what you do for our sailors, for our marines, and for our airmen. We deeply appreciate that. I will begin with you, General Mills. You heard both the Chairman and Secretary Stackley mention the amphibious combat vehicle. I wanted to get your focus on where are we with the ACV [Amphibious Combat Vehicle]. I wanted to get your perspective, too, on why does the Nation need to invest in the ACV, especially based on the austere times that we face. Also, how is the Marine Corps going to be able to purchase both the joint light tactical vehicle and the amphibious combat vehicle, again, facing these budget challenges. And can you tell me, too, specifically about the target date for the IOC, for the ACV? I am very concerned in that looking at the past experience with the EFV [Expeditionary Fighting Vehicle] and the timeframe that was well, expired through that process, and with it taking nearly 15 years with an old amphibious assault vehicle with the AAV [Assault Amphibious Vehicle] there, timing this with this, I think is critical. So if you can give us your perspective on those elements of the ACV, that would be great. General Mills. Sir, thank you for that question. Thank you for the support that you provide the Marines, and the Marines at Quantico, in particular, sir, I appreciate it very much. I will divide the question up into a couple of parts and I would ask Secretary Stackley if he would like to get in on the actual procurement procedure. I think both the JLTV and the ACV are success stories. I will start with JLTV and that we have partnered with the Army in developing a vehicle which meets both of our needs, and both of us have compromised to a bit, but at the end, that produced a vehicle that we can afford and that will be successful on the battlefield and give more protection and more mobility to our forces as they move around that battlefield based on the current dangers. We also feel that we have developed a strategy, a procurement strategy which would allow us to buy the JLTV, when it is ready to go to the fleet and sufficient numbers to meet our immediate needs. And then take a break in order to purchase the ACV and then come back and finish up our body of JLTVs later on in the program after the Army is done there. So we feel there is a good strategy there, and we are pushing ahead with that very good success story. I have driven in all of the--all of the demo models that have been provided to us by industry, and each one of them is--really is quite a vehicle and gives you quite capability on the battlefield. Regards to the ACV has been testified to numerous places on numerous times. The ACV is, in fact, the Marines' number 1 ground priority, and we are pushing forward to that. And that is also a success story. Drawing on lessons learned, I think, from the EFV experience, we have been able to incorporate that both into our capabilities documents as we have produced those, and again, into our acquisition strategy as we develop that. The ACV, of course, is going to cover down on the developing gap in our capability--our core capability of projecting power ashore from our amphibious ships, and that is the initial wave of troops going ashore, that they have a self- deployer that provides them once they hit the, you know, the water line, the ability to maintain the momentum moving ashore to the objective, conduct operations on the objective in a protected armored environment and then withdraw to the ships, again, in a timely manner. We feel that plays to our core capability, the unique capability of being able to project combat power ashore from our forward-deployed amphibious forces at a time and place of our own choosing. The ACV has been developed over the past 18 months when the capability, of course, was determined, we went through and done an AoA [Analysis of Alternatives] and that was completed last summer. Subsequent to that AoA and the JROC [Joint Requirements Oversight Council] approval to move forward with the program, we look at the ability to also add to the capabilities by adding high water speeds. We have gone back to take a look at the feasibility of a self-deployer that could achieve higher water speed in the A2/ AD [Anti-Access/Area-Denial] environment. We have reopened parts of the AoA, if you will, just to ensure that the high water speed capability is used in that. And we are moving along by establishing a work force down at Quantico focused on the ACV, a unique work force that I will let Mr. Stackley talk to here in a moment. We think that we have a real blend of industry, the Department of the Navy personnel and the Marines at Quantico, in putting together a team that will give us what we need, what we can afford, when we need it. The last point that I will make is your discussion point about the IOC of the ACV. We are also concerned about that, of course, we don't want a gap to develop for our capability to lesson, so we have an AAV sustainability program that is well- funded, in the budget, that we will maintain and improve about 400 of our AAVs, which will--while they won't extend the life of those vehicles, they will give us more survivability for the Marines inside the vehicles on the battlefield. We will improve the seating in the back. We are going to improve the power train, and we are going to put protection on the floor which will protect those Marines from the threat of the IEDs [improvised explosive device] which have developed on today's battlefield. With that, I will ask Mr. Stackley if he has any comments regarding the unique acquisition strategy. Secretary Stackley. Let me simply add to what General Mills described that, typically, or historically what we have done is we would do an AOA. We would develop requirements. They get tossed over the fence. We might get a parametric type of estimate accomplished. Eventually, we roll that forward and, at some point in time, downstream industry gets closely involved, and we are out there dealing with proposals and get the proposals back and, quite often, we end up with a mismatch between what the requirement was, what the real cost is, and what the schedule is. And what we are trying to do different here, is do the front end of requirements' definition since we know so much about the AAV, the EFV, other combat vehicles, bring industry into the process and tighten up the loop between the requirement, the design, and the cost. So in near real time, you can look at trades between capability, affordability and what that might mean in terms of schedule for the overall program. We are placing great emphasis on cost realism which means getting a mature model. It also means using mature technology so we don't have this lengthy, drawn-out development phase for the program. So we think we have this exactly right, from MARCORSYSCOM [Marine Corps Systems Command], Quantico, PEO [Program Executive Office] land systems all involved, but also, Navy warfare centers and Army personnel are joining the mix. And we brought industry in--we brought in the big defense contractors, but we are also opening up third-party participation in this requirements' definition, feasibility, and cost estimating phase of the program. Our intent is to get this put into shape for the 2015 budget as it comes over so it has the definition that you all need, and in the interim, to open up the door so you all have insight into the how--the progress that we are making and how we are going about this acquisition. Mr. Courtney. Thank you, Mr. Chairman. I yield back. Mr. Forbes. Now Mr. Kilmer and other valuable members of the subcommittee. The gentleman from Washington, I yield 5 minutes. Mr. Kilmer. Thank you, Mr. Chairman. And thank you all for being here. I guess my first question is, and I am not sure if I should address it to Admiral Myers or to Secretary Stackley, my question is around the impacts of sequestration and how it affects life-cycle costing of our vessels. I was out at our Naval shipyard--our Puget Sound Naval shipyard in my neck of the woods and heard questions around deferred maintenance and how furloughs and the laying off of temporary employees might affect, also, the amount of time that maintenance happens. Someone said, and I don't know if this is accurate, but the amount of time for maintenance--the length of time for maintenance Stennis [USS John C. Stennis] might increase by 4 to 6 months. I am just wondering how, if at all, does that impact acquisition strategy and how you look at ongoing costs within the vessel program? Admiral Myers. Okay. I will take the first stab at this, and if I can address the impact of our shipyard workers and furloughs, the second part of your question and then roll that into the impacts of lifecycle and acquisition and turn that over to Mr. Stackley. Well first, furloughing of our civilians does impact our ability to generate our carriers and submarines in fiscal year 2014, because this is the workforce that is actually doing the maintenance, both in our ship and aircraft depot maintenance facilities. So the lost work that you refer to, Congressman, it creates a domino effect to our maintenance schedules that it is going to take us a couple of years to dig out of. The Department of Navy is exploring options to minimize these impacts, but when you look across 2013, 2014 and 2015, just the impacts of this year, when you focus on our carrier readiness, it is going to delay getting carriers out of the yards. When you talk about submarine readiness, it is also going to impact delays. It is going to extend the duration of-- upwards of three SSBNs, 3 to 4 months. We have the data that shows, by ship, what kind of delays that furloughing these workers would create. And there are also impacts to our aviation readiness, upwards of 60 aircraft and 150 engines would SLEP [undergo Service Life Extension Program] from 2013 into fiscal year 2014. So these are going to create readiness challenges for the Department of the Navy that we are going to have to reconcile in 2014, 2015, and 2016. And we are going to need the President's Budget, 2014 submission, which doesn't account for these kinds of readiness impacts, but we are going to need that budget in order to have an approach to have the funding levels, and the resources required, to try to reconcile this. Secretary Stackley. I don't know if I can improve much upon Admiral Myers' statement other than to describe that, while we are doing what we can within the dollars we have and the authority we have to reprogram, we are doing what we can to restore the funding that we had programmed for maintenance. We are going to be limited, and so there will be a deferral of maintenance that rolls into the outyears, that will have an impact. That is on the maintenance side. On the investment side, we are faced with shortages in every investment line, and so we are having to go line by line to determine how do we absorb that shortage, and we are trying to balance between the near-term costs, the outyear impacts, the likelihood of being able to restore the funding in the outyears to arrive at what is the right answer for total costs and total capability. And it is not the same in each case. In certain cases, we are holding onto the procurement tightly because if we let that slip, the impacts to jobs, the impact to costs in those programs, will be so high that fixing that later will be out of balance. And in those cases, we might look at deferring some support costs, some spare costs, because that is a dollar-for-dollar restoration. In other cases, where we might be on the edge in terms of readiness, we are being very careful to not defer anything associated--that might impact on readiness when it comes to support costs and spares. And there, we might be taking a hit in terms of the quantity that we procure. There definitely will be an impact. It is very difficult to quantify today. In our process, we are trying to balance near- term and far-term to arrive at the, you know, the right least- cost impact and least impact to the total capability and force. Mr. Kilmer. Thank you, Mr. Chairman. Mr. Forbes. Mr. Kilmer, thank you for that line of question. Now I recognize the distinguished gentleman from Georgia, Mr. Johnson for 5 minutes. Mr. Johnson. Thank you, Mr. Chairman. Gentlemen, the Middle East eruption a couple of years ago, the Arab Spring, touched many nations in the area of your--or in the Gulf Region. And one of the nations that has been impacted by that has been the island nation of Bahrain, and Bahrain has served as the headquarters for the Fifth Fleet. With the disturbance there, civil demonstrations and more people being involved, just a great percentage of the population involved in the demonstrations, and the kingdom--the king--cracking down on that kind of activity, and the residents becoming more and more agitated and violence is, perhaps, on the horizon, lots of human rights violations going on, some say. What do you see as the future for our activities in Bahrain, stationing of the Fifth Fleet there, and have there been any contingency plans put into place or at least developed in the event that the situation gets out of hand in Bahrain. Admiral Myers. Congressman, thank you for the question. The Navy's role is to meet our responsibilities to operate forward where it matters and be ready when it matters. Having a headquarters in Bahrain for our Fifth Fleet, a Naval Central Command Component Commander, is important for the Navy. To get to the specifics of your question, in terms of, contingencies with relationships that we have with the nation of Bahrain, I would need to take that for the record and get back to you. [The information referred to can be found in the Appendix on page 122.] Mr. Johnson. So what you are saying is that, you cannot answer the question as to whether or not there are--there is any contingency planning that is taking place at this time? Admiral Myers. Congressman, I would prefer to take--I can answer the question, but not in this forum. Mr. Johnson. All right. Admiral Myers. And I would prefer to take it into a more appropriate forum. Mr. Johnson. All right. I understand. News reports indicate that the Littoral Combat Ship, which relies heavily on electronic systems, is vulnerable to hacking. Can you elaborate on the issue and tell the committee what you are doing to ensure that all of our systems, including LCS, are secure? Admiral Myers. Yes, sir. I also heard--got the same report, and this is part of a vulnerability assessment that we look at our platforms to make sure that we are confident that they aren't vulnerable, and if we find any issues or vulnerabilities, then they are reported, assessed, and then ultimately, rectified. This vulnerability assessment has been reviewed by the Government industry team, so we are assessing it right now, and where there is differences exist from the previously--anything that was self-identified--or things that were from the Navy's or industry's expertise or input. What we intend to do is get the Government and the Navy team together and put together an implementation team to understand what we need to do to mitigate it. Our information assurance threats continue to evolve, and so we need to evolve, to counter them. The specifics of what is in that report is classified, and again, that would be something that we would take to a different forum to talk about in more detail. Mr. Johnson. Thank you. I yield back. Mr. Forbes. Thank you, Mr. Johnson. I believe Mr. Wittman had one short followup question, and I will yield to him at this time and come back. Mr. Wittman. Thank you, Mr. Chairman. I wanted to ask Secretary Stackley, if you can briefly describe the plan that the Navy has for the replacement of the T-AO [Tanker] class and LSD class ships. I think that is a concern going forward, making sure that we are looking at that. Can you give us a little focus on what that plan might be? And secondly, is there any plan to use some common hull forms to look at the hulls that are currently in the inventory using that, as well as, systems that are currently on ships to make sure that we can maybe gain some time and some efficiencies with using those particular elements in design in replacement of the T-AO and the LSD class of ships. Secretary Stackley. Yes, sir. Thanks for the question. I will break it up into two parts, T-AO(X) and then discuss LX(R), but there is a lot of common theme here. First, a T-AO(X), the Navy is going in this budget, FYDP the Navy is proceeding with procuring the T-AO(X) what we would call, ``ahead of need.'' In other words, there is certainly more service life on the in-service fleet oilers; however, we have two issues that we are addressing when we go after the T- AO(X). First, we are outside of MARPOL regs [Marine Pollution regulations]. We do have an exemption in support of--for national security, but we just view as the responsible thing to do to proceed with a more modern fleet oiler and get within MARPOL regs, which frankly will improve the T-AO(X)'s access to foreign ports. So we have moved that program into a 2016 start and, at this point in time, we are doing design studies leading up to the ultimate competition for procurement in 2016. We are, in fact, doing everything we can to just leverage mature technologies. There is no invention or breakthrough required for T-AO(X). We want to leverage commercial design to the extent practical, and we are working through those details right now, inside the building, inside the process and with industry. So I believe that is well on track. I mentioned two points. One was to address the MARPOL regs concern, but the other is--I described in my opening statement--industrial-based concerns across our amphibious and auxiliary shipbuilding sector, and T- AO(X) fits in nicely to address that concern. So we see that as a win-win. The other program you described was the LX(R) which is the replacement for the LSD 41/49 class. That class retires in numbers in the mid 2020s. Right now, she is scheduled for procurement in 2000--the LX(R) is scheduled for procurement in 2019, which would notionally give her the lead ships' delivery date about the 2020 to 2025 timeframe. We have advanced procurement that lays in 2018 timeframe, and today we are conducting the analysis of alternatives to determine exactly what will the LX(R)--what will the--between the requirements and capabilities--what will the LX(R) be? In that analysis of alternatives, we are looking at everything ranging from clean sheet new design to a modified repeat on the existing LSD 41/49 class to foreign design concepts that could fit the bill, and also, specifically back to your question, leveraging current shipbuilding programs, specifically the LPD 17 class design, but modifying it for the lift fingerprint required by the LSD 41/49 replacement. So the AoA is going through that work today. The ship procurement is out at the end of the FYDP, and in between, we do have a concern regarding that sector of our industrial base. So the Navy's press is to keep those design activities on schedule and look for opportunities to try to bridge that gap in the industrial base and hit the affordability numbers that we need for both of those programs. Mr. Wittman. Very good. Thank you, Mr. Chairman. I yield back. Mr. Forbes. Thank you, Congressman Wittman. If I could pick up now and thank you so much for your patience in being here. I have a series of questions we need to get on our record before we conclude the hearing, and I want to pick back up with where I left, and Keith, if you could pass out this chart, please. I just want to show you where we get our numbers, so when you are back and doing your research, this is from the HASC committee staff which do a very good job. We depend on them to help us write our legislation. And based on their numbers, what we have, Mr. Secretary and Admiral, particularly, you can look over here, the $291 billion figure is essentially what the cost extrapolated out to be when that money wasn't reinvested back, but according to the HASC figures, we have $291 billion plus $487 billion. So that comes up to about $778 billion of cuts from spending that the Administration took long before sequestration. Now, if that figure is inaccurate, we will hold the record open until you get back to us. But until we get something from you guys or from your staffs, we have to work on the assumption that our staff is correct. So, we had $778 billion of cuts that took place long before sequestration. To the knowledge of this subcommittee and our staffs, we heard nothing about these cuts being too much from the Navy, the Marine Corps or the Air Force. If I am wrong on that, we will hold the record open until you can get us documentation that shows where that was. The way that would normally come back over is if it wasn't expressed in an open hearing like this, you would give us an unfunded requirement list. So Admiral, the first question I have for you is, based on this $778 billion figure, or whatever the figure ultimately comes back to, we have received no unfunded requirement list from the Navy. To your knowledge, did the Navy submit one to us or Secretary Stackley, that we just missed somehow and did not get it? Admiral Myers. To my knowledge, there has been no submission, and before I get into that, I want to make sure that I reaffirm that the approach that we are taking with the sequestration that is, you know, has already been on record, was focusing on the must-pay bills, reconciling---- Mr. Forbes. And all this was the figures before sequestration. Admiral Myers [continuing]. Right. So to my knowledge, there has not yet been a submission for an unfunded---- Mr. Forbes. And there hasn't been one in the last several years that you know of, is that correct? Admiral Myers. I would have to get back to you---- [The information referred to can be found in the Appendix on page 119.] Mr. Forbes. If you would, if you don't mind doing that, and I don't want to take up more time than necessary, but I would just ask, General, if both--all three generals, if you would do the same thing. If I have missed one, if you would get it for us. And then, Mr. Secretary, based on the numbers that we have, whether we took your numbers or CBO's numbers, it will require us to have a significant uptick in our shipbuilding accounts if we are going to meet these numbers by at least 20 percent or more over the next several years, if we are going to reach the goals that we have in our shipbuilding plan. Would that be a fair assessment? Secretary Stackley. Yes, sir. Our report that we submitted last year, and you will get the update this year, it shows the funding required for a shipbuilding plan, and it is very clear that our funding goes up markedly, beyond the FYDP. Mr. Forbes. And I thank you for your work in doing that. Can I ask you to address, now, the Ohio replacement program and, particularly, you were kind enough to submit--or Admiral Myers actually, that Secretary Stackley submitted an interim update to the 30-year shipbuilding plan 2 days ago that indicated a significant increase to the ship construction account to support the Ohio class replacement. And Mr. Secretary, we thank you for your efforts in trying to get that to us so that we could have it in a timely manner, but if you look, even in the fiscal year 2014 budget request, the public requires over a billion dollars and is expected to ramp up until we purchase our first boat in fiscal year 2021, at the cost of over $5.5 billion. And I support, most people on this subcommittee, support what you are doing and they support the Ohio class replacement, but considering that requirement and to associate it with the Nuclear Posture Review, to your knowledge, has the Secretary or your staff provided any support for the program as a strategic investment over and above the Navy's topline. In other words, what are we going to do when we have that huge amount of money. Is it going to all come out of the shipbuilding account, or is there some argument that it might come outside that shipbuilding account? Admiral Myers. Mr. Chairman, there is no question that, when you look at the mid-term of our 30-year shipbuilding plan that, just looking at the numbers and the number of ships, half of our resources are SCN [Shipbuilding and Conversion, Navy], if you will, in a typical year goes to one ship. So it is an understatement to say that that is going to challenge us. It challenges our shipbuilding account and it challenges us on--when you look at that timeframe. Now, my leadership has been on the record acknowledging this resource challenge that is outside the FYDP, largely due to investment and the requirements associated with the SSBN-X program. But when you look at the 30-year shipbuilding plan as a whole, and the area that we can--we are most confident about, which is the near term, and you look at the FYDP, the next 5 years with the delivery of 47 ships and retiring 42 ships, I think that the Navy and the shipbuilding plan puts us on a trajectory that takes us to 300 in fiscal year 2019, and keeps us around 300 in the 2020s. Mr. Forbes. And I am going to suspend my questions and recognize Congressman Runyan for any questions he might have for 5 minutes. Mr. Runyan. Thank you, Chairman. My question is for General Allardice, specifically, I know I have brought this up a few times, but dealing with the CRAF [Civil Reserve Air Fleet] program. We know--we spend about $244 million shipping cargo on foreign carriers, but as a result of what I think most people would say, overflying our grey tails, if you would, C-5s, C-17s [Globemaster III strategic airlifter]. The Air Force has had to reprogram 136 million last year to repair the engines in that fleet. First of all, I understand that there is a mission readiness that you have to have to, you know, maintain your readiness with that fleet, but there is also--our duty here is to make sure that--I think you would agree--that the CRAF program is a national security asset. But as we don't use them, we have seen them fall off their ability to do their mission because we are not using them and spending, also money, on other foreign CRAF services. So my question here is really, do we need a legislative fix and would AMC [Air Mobility Command] be in the conversation of having a legislative fix to make sure stuff like this--we are doing it right to the best and not having kind of an ambiguous kind of, maybe we will, maybe we won't kind of decision at AMC. General Allardice. Sure. Thank you and thank you for your support. First off, we obviously depend heavily on the CRAF. It is part of our total force projecting capability and, in order to execute any war plan, we need both the passenger capability and the cargo capability that civil reserve air fleet represents. So we recognize that our objective today, and we agree with the community, we had a meeting last week. We agree that our number 1 objective is to have a grey tail organic fleet and a civil fleet that is capable of meeting the national needs in the time of emergency. So we have that common objective. We understand and agree with the community that in order to achieve that objective, we have to have a healthy civil fleet. The CRAF fleet, in particular, it to parse out the civil augmentation. It is not part of the CRAF. So there are objectives that we need to understand collectively that exist in the civil side. Honestly, the last 10 years, the civil side has enjoyed a significant amount of revenue, and our numbers are a little bit higher than what you read. It is somewhere north of $2 billion over the last 10 years. It went to the civil augmentation fleet, not just the CRAF, but civil carriers in general. So a substantial number. Where the challenge comes is as you draw down out of Afghanistan, the business goes down, you come to our line-- readiness line, you know, how do we train and age the organic fleet, how then do we also ensure that we have a ready CRAF. As you know, sir, we have completed phase one of the CRAF study. We are into phase two of the CRAF study right now which, we believe, will inform the future CRAF from our perspective and, as that comes out, we would obviously share with Congress and discuss that. With respect to a legislation in the meeting last week, we agreed that--both--that we should working with industry to--it is premature today--to say that legislation is required because we don't know what the CRAF study will show as we look forward to CRAF, what the readiness line and the requirements are for the CRAF, and what that looks like. We did agree that we will work with the carriers to--in a collaborative environment--to ensure that we understand, if the policy can fix it, we will use policy. If it is a parallel path to have legislation, we will work with them to have the right from our perspective, the right legislation. And that is where we are today, is a common agreement that it is possible, but we think it is premature today to say that it is absolutely necessary. Mr. Runyan. Well I think the one thing, and I know Congressman Hunter also has been all over this, the one big thing is the number I brought up, you have obviously our CRAF fleet, but we have $244 million going to foreign carriers. I mean, that is what I think you are going to get a lot of pushback, you know, from this committee, can we legislatively fix that to make sure this doesn't happen, you do have to allow some wiggle room because, obviously, you know, time and all that and availability, sometimes come into play. But I think that is one thing that we are going to have to--we are going to have to have that discussion because it is our taxpayer dollars, you know, and this program is, obviously, as you said it, a national security asset, and we want to make sure that we are bringing as much of that money back home as possible. General Allardice. Sir, we understand that, and we share the patriotic tone of that. What is always of great concern is, in the crisis, when, you know, time is everything and we must get something to the fight to support the warfighter, and very often, the equipment that you are describing that carried on the non-U.S. flight carriers, is equipment that is outsized, that, you know, we can't--we are tapped so we can't get to it with organic at the time. Or we would push to our civil fleet, but they can't carry it for a variety of reasons, they can't carry the outsized cargo or because it is going into a field where they can't go into because our risks. So that is--we recognize what you are saying--we share with our partners in the industry, the interest to get there, to get there with policy, and we will come forward with our solution. Mr. Runyan. Thank you. Chairman, I yield back. Mr. Forbes. Thank you for those questions, and I would like to recognize my good friend from Rhode Island, but Jim, before I do that, if you don't mind, I would like to recognize another member of our staff that is going to be leaving, Tom MacKenzie. Tom has just given us great service. He retired from the Navy and Tom served on the Senate Armed Services Committee before he moved up to the House, and Tom, we just thank you for that service and all you have done for this committee and for our country. And with that, Jim, I recognize you for 5 minutes. Mr. Langevin. Thank you, Mr. Chairman. First, I want to thank all of our witnesses for appearing today and for your great work on behalf of our Nation. We certainly appreciate the benefit of your testimony and as we work to ensure that our forces have the platforms and capabilities that we need to handle the complex environments of the future. Let me say from the outset, along with several others on this subcommittee, I have been a staunch supporter of the Model Acquisition Program, a national asset that is the Virginia class submarine program, and we certainly appreciate the Navy's working with our offices to enable the inclusion of a second submarine in the fiscal year 2014. And I am certainly pleased that there has been strong support for the program and its budget, and I look forward to working with all of you to ensure the health of the program into the future. Let me first, if I could, start with you Secretary Stackley, and Vice Admiral Myers. I am particularly interested in how you are planning to now, to have the capability to integrate very high energy intensive weapons systems, such as, directed energy weapons, high-powered microwaves and electronic warfare systems and rail guns in your surface combatants. Can you speak to the Navy's plan to ensure that the ships that we are planning for and procuring now, as well as in the future, are capable of accepting the power, including loads of such systems in the future? Secretary Stackley. Yes, sir. Two parts here. First, there are a number of directed energy developments ongoing. You mentioned rail gun. There are various laser projects that we have in place, and step one is to mature the technology, and that is two part--actually, it is three parts. One is the basic technology has moved far along, so that is going well. The second part is to weaponize it. And that is probably the hard part right now, and that is to take--if you were to visit our lab at Dahlgren and take a look at the systems that are in development for these directed energy weapons. We are making progress on the laboratory floor, but we have got to make the leap now to weaponizing them. A simple example with the rail gun. The focus right now--we have demonstrated the technology, now what we have got to do is, you have to develop a round, you know, that has relative utility for the rail gun. So that development is ongoing now. We have to size the weapon that it would accommodate our platforms, so that is ongoing now. So we are many years away, in the case of the rail gun, from actually installing one on board ship, but we are trying to keep--we are trying to pace that vision to the ability to mature the technology. Lasers--we are a little bit further along. You have probably seen the videos of the demonstrations that we have done in terms of actually taking out small targets with a relatively small scale laser. So then the challenge becomes, how do we scale up that capability and, right now, we have got a demonstrator, effectively a demonstrator, on board the Ponce [USS Ponce amphibious transport dock ship] on deployment, so it is beyond technology demonstration. Now we are getting it in the hands of the fleet to figure out how do we best employ that. So that is kind of the state of where we are today. To get to the rest of your question, which is, how do we ultimately get it to be a weapons system out in the fleet, and how do we accommodate that on our platform. So that is the next challenge. This technology is a--places a high demand on power systems for our platforms, and we have--power is precious onboard all of our ships and, with the introduction of integrated power systems, first on the surface side with the DDG 1000 [Zumwalt class guided missile destroyer], we start to see a technology on the platform side that then accommodates the demand of the directed energy. So we do not have a clear point in time or program plan that we can say, ``On this platform, at this point in time, we will have rail gun or laser system that will be fleet ready.'' But, we are marching these all along and parallel to get there. So what I would invite is a question for the record where we come back and lay out something that represents a roadmap for these technologies, how we mature the technologies and then, what that means for our platform to host them. [The information referred to can be found in the Appendix on page ?.] Mr. Langevin. That would be helpful. Admiral, do you want to comment? Admiral Myers. To complement Secretary Stackley, in order to understand and inform what the future requirements need to be for our ships and for our warfighting, the Under Secretary of the Navy established Navy directed energy steering group. And this steering group is going to develop a roadmap, and they are going to have near-term over the next 5 years; mid term, over the next 5 to 10 years; and then a far-term plan so that that can inform our resource decisions, and the way that we approach weapons and weaponizing our ships. Also, although this directed energy working group is ongoing, as Mr. Stackley pointed out, we are not waiting for the results. We have done lots of testing when it comes to lasers, and that goes back to 2008, with the assistance of congressional adds [add-ons], I might add. And then in 2012, the USS Dewey was able to demonstrate the utility of a laser weapons systems in terms of what the impacts would be against a threat representative of an unmanned aerial vehicle. So we are continuing the development, but we also need to be guided by a steering group and a roadmap that will tell us what we think we need and what is in the realm of the possible over the next 5, 10 to 15 years. Mr. Langevin. Thank you. Well, my time has expired. You have other questions that I will submit to the record, and if you could respond to those as expeditiously as possible, I would appreciate that. Thank you, Mr. Chairman. Mr. Forbes. And if I could follow up on the gentleman from Rhode Island's question with you, Secretary Stackley. Obviously, to have the roadmap, you have got to have the platforms to put them on, and what is the risk of essentially stopping the bill to the DDG flight to be. You know, that has been the most successful powerful and capable warship afloat in favor of fielding the new AMDR [Air and Missile Defense Radar] radar in the Flight III destroyer. And we are looking at these power systems, you know, we know we can do it and put the radar on there, but it kind of limits us down the road if we want to do what the congressman was talking about. This ship will be procured to 2029, and we know it is going to be in service through the 2060s, have we considered putting this radar on the LPD 17 or the DDG 1000 hull, and give us the explanations there if you would. Secretary Stackley. Yes, sir. Back in 2009 timeframe, we accomplished what we referred to as, ``hull radar study,'' which went after the need to increase our integrated air and missile defense capability. At that time, some of the competing concepts were the DDG 1000 as the platform, the DDG 51 and other platforms, such as, LPD 17. What we were trying to get at is a total force solution that would look at platforms, but not platforms alone, also, netting links and integrating across platforms, radar resource capability plus the kinetic, you know, the weapon, the SM-3 [Standard Missile 3]. The results of that study were a couple. First, AMDR was the right technology to invest in for the radar upgrade, and that has proved itself, that development is going very well. Second, to determine how much radar capability do you need at the platform level in order to bring the total ballistic missile defense capability up against the threat that was sized in that study. And that threat was based on intel [intelligence] reports, and it is worth the staff getting an update on that study in those reports, to put this in the right context. But suffice to say that, the complexity of that threat, and the--I call it the ``ray density and the size,'' was such that we need to go more than an order of magnitude beyond what we have today in the SPY-1D(V) [S-band Aegis littoral warfare] radar. So we measure that radar capability in terms of dBs [decibels] above SPY. And the range of capability that we needed at the platform level, was SPY plus 15 dB to SPY plus 30 dB. And what that means in terms of size is a SPY plus 15 dB radar, is larger than what we have today on the DDG 51. But much of that increased capability comes through the AMDR technology. So it is slightly larger than what we have today. SPY plus 30, in fact, would challenge LPD 17. It is a significant-sized aperture. So what we settled on was, we know the DDG 51 is going to be central to the BMD [Ballistic Missile Defense] role. We know we need integrated air missile defense, so we need the AAW [Anti-Air Warfare] capability of the 51, and we need it in conjunction with the carrier battle groups that it is protecting. And we settled on a size that would give us something greater than SPY plus 15 capability on the 51 Flight IIIs, for the radar. To do that, we have to upgrade the power plant. So, we have got the studies going on today, looking at, we have got a power plant selected, and now we are looking at the design impacts associated with the machinery spaces. It is all--it is engineering work, it is not new discovery. So those--to studies are going on the platform to support a downstream decision for the 2016 Flight III ship, so we will see the--we will get through a milestone decision on the radar that says it is ready for production. A milestone decision on the ship side that says that the upgrades for power and cooling are ready for production, and then we will be coming back with the budget to the Defense committees so that you all see exactly what the approach is in terms of managing the risks, managing the costs, and meeting the requirements on that platform. Mr. Forbes. And thank you for your analysis as to how you are doing that, and our staffs will continue to work your staffs on making sure we understand the direction you want to go with that. Just a couple more questions that we need to finish up with. Cruisers, I know this is a very sensitive issue. We know, also, that the Navy is still assessing the feasibility of the Port Royal, but Congress was pretty clear in the fiscal year 2013 NDAA Defense Appropriations Bill, that it believes it is essential to maintain our Naval fleet through the expected service life of the cruisers. We included the appropriate funding for the modernization of those assets. A couple questions here, and I don't mean to be facetious on this: Do we need to do anything else, legislatively, to make clear our intent of what Congress wanted to do with the cruisers, or do you feel that the Navy at least understands the congressional intent of wanting to modernize and put those monies toward the modernization of the cruisers? Admiral Myers. Mr. Chairman, first of all, we appreciate Congress' support in the $2.4 billion that was added in the ships' modernization and operations and sustainment fund--SMOSF [Ship Modernization, Operations, and Sustainment Fund]--that enabled the Navy to retain the seven cruisers and the two LSDs for fiscal years 2013 and 2014. Those funds, they expire at the end of the fiscal year 2014. The Navy originally had those funds--or had those ships slated to retire because of not being able to afford them. Congress gave us the money for 2 years, and the Navy intends to operate those ships for 2 years and then, in the beginning of fiscal year 2015, our intent is to retire those ships. Mr. Forbes. So with the money that Congress appropriated to modernize them, does the Navy plan to spend that money on modernizing those ships as Congress directed it? Admiral Myers. The plan that the Navy brought to Congress was essentially a FYDP plan, a 5-year plan. And in that plan, the Navy broke up all the different elements that would be required to sustain and modernize those ships. The people, the HM&E [Hull, Mechanical, and Electrical], the modernization. So with 18 months since the appropriations act, until the time that those funds retire, there isn't enough time to do the planning or to procure the modernization that would be required, much less the time to install the upgrades, to use that portion of the SMOSF funds. Mr. Forbes. So, it would be fair to say that, right now, the Navy does not intend to use those monies as a appropriated by Congress for the modernization of the cruisers? Admiral Myers. The Navy is assessing, but it is challenging to---- Mr. Forbes. But you have no intention of doing that right now, is that correct? Admiral Myers. We do not. It does not appear that we have the time to do the planning to procure the parts and then to do the installation, but we are assessing that, and that is something that I would like to take for record and get back to you. Mr. Forbes. But you haven't forwarded any long-term lead materials or anything like that and don't plan to do that in the near future. Is that correct? Secretary Stackley. That is correct, sir. Let me kind of summarize. First, Congress' intent was very clear, all four defense committees came out strongly with regards to the Navy's plan to early retire the seven cruisers and the LSDs. And the Secretary, and as you know, we are also consistent in the testimony last year, and thus far, in the posture hearings that, we would like to hold onto these ships. This came down to a difficult budget choices and where to task risks, but the Department of the Navy would like to hold on to both the cruisers and the LSDs were it not for the total cost of operating plus modernizing. The add by Congress in 2013 as Admiral Myers described, it arrived halfway through the year. The dollars effectively expire at the end of 2014, and in this window of time, to put $2.4 billion to work without the long-term vision in terms of continuing to sustain and, actually, accomplish modernization, we can't get there quickly enough. Mr. Forbes. And I appreciate that analysis. It is fair analysis that may differ with the outcome, but it is a fair analysis. I just want you to understand our frustration, which I know you do, when you then say these are difficult budget choices, we wanted the cruisers, but we see the fact that we were cutting $778 billion, and nobody from the Navy said, ``Wait a minute. We really don't want to cut $778 billion. We might want to use some of this to keep our cruisers.'' That is what is frustrating, Admiral. Admiral Myers. Mr. Chairman, if I could just add, the Navy does intend to operate these ships, maintain and operate these ships, so it is not that we are not using any of the $2.4 billion. I want to make that clear. It is just the modernization portion that challenges us because the timeframe that we have to use that money. Mr. Forbes. And basically, we are foregoing 10 or 12 years of service life for the cruisers, fair? Admiral Myers. Yes, that is a fair statement. Mr. Forbes. Secretary, just a couple of--air force, wind force, and then we will be wrapped up. The Ford class carrier. You and I have talked about this, everybody is doing good jobs. We know it is hard work. But the estimated costs of CVN 78 has grown 22.3 percent, at least the numbers that we have since the submission of the fiscal year 2008 budget and 4.1 percent since the submission of fiscal year 2013 budget. It has been reported that the Administration is considering a legislative proposal to increase the cost cap of CVN 78 that was enacted in the fiscal year 2008 NDAA to $12.8 billion. It is essential that we provide better cost controls on the program. We have talked about that, I know both sides are trying to work on that. Can you just explain to us what steps have been taken to better control the costs on the Ford class carrier and what, if anything, we need to do to support you in helping to do that. Secretary Stackley. Yes, sir. To understand what is being done, the controller costs, it is probably best to first understand what has been driving the costs. CVN 78 is a near-100-percent redesign of the Nimitz class. Not just a design but actually the technology and the systems that are incorporated in that platform. So there were a large number of development efforts that were ongoing in parallel with the ships' design phase. And we have a matter of concurrency of development efforts that were delayed, design efforts that were delayed, all that rolling into material procurement that was delayed. All of that going into production of the carrier and accumulating into a significant cost growth during the production phase of the carrier. So the efforts to contain this are manyfold. One is the design contract itself was rewritten to do a couple of things. One to go after things that we could do at that stage of design to reduce costs, and also, change the type of contract to drive to a completion contract. Government-furnished equipment, there is cost growth associated with Government-furnished equipment. A significant part associated with the electronic magnetic--electromagnetic aircraft launching system, and the advanced arresting gear. To contain costs on that, we basically put that system into a firm fixed price contract by the vendor, and we put--in fact, we assigned penalties if the delivery of that system is late. And since that point in time, that program has been performing well. We are installing a dual-band radar on the carrier which that development, the intent of the CVN 78 was, it would leverage the development of the dual-band radar from the DDG 1000 program, but when the DDG 1000 program was truncated, and a part of the effort to reduce the costs on the DDG 1000, the dual-band radar was reduced on the 1000 to just single-band, multifunction radar and, therefore, the CVN 78 picked up those development and integration costs on that program. So about half of the cost growth on the carrier is associated with those development efforts earlier on. The-- another part of the previous adjustment to the cost on the carrier simply associated with inflation. That contract was awarded in 2008, delivers in 2015, the cost cap was set early on, and there was an allowance made for--to account for inflation and, in fact, we exercised that allowance in the cost cap for inflation, which then brings you to the last piece, which is production, which we are wrestling with today. It is too late to undo the impact associated with development, and we are suffering through the impacts that have trickled into the impacts on material procurement, so a lot of cost growth in production of the CVN 78 is disruption caused by late material. The shipbuilder has been turning the industrial base upside down to do a couple of things. One to get through all of the first nautical testing as required for these new systems as quickly as possible. But second is to find alternative sources where it makes sense to improve upon delivery to a shipyard. Those are bearing some fruit, but in the end, not enough to overcome the early cost trends. So that is why we have predicted, projected about 2 years ago, what our estimate of completion would be updated for these impacts. Two years later, we are continuing to work on changing that trend, but there is not enough progress to change the estimate, and so, we have to come forward with requests for cost cap to relieve the associated funding to go towards completion of the carrier. And we have to keep the press on in terms of the remaining production and test activities. Mr. Forbes. Well, we thank you for the good work you have done in doing that, and the contractor. We may have to be talking about what kind of milestones we can just get to make sure we are assuring that those costs are being contained so that we can justify that to our other members who have to vote on these dollars. But thank you for that effort. One last question for the Navy. The LCS, I know both of you are familiar with that, we have talked about it, I think overall, the development program is doing well. Admiral, I understand you have got to do the deployment to see exactly what utilization you are going to have for these vessels. But here is the one conceptual question that I have to ask both of you to get on the record. We are looking at the fact that this is a little bit different because of the modular mission packages, and normally when we have a ship that is ready to deploy, and it goes and does what it is supposed to do. Some of those module mission packages, we are not going to have the complete package for probably 5 years down the road. And, at that time, we are going to probably have about 25 of the 52 vessels already intact, and if they have got a 20-year hull life on them we are talking about using, a sizable portion of that hull life before we have to fully, the modular mission packages, fully ready to go. Can you just kind of deal with that issue, and if you have thought through that and what we need to explain that to our members. Secretary Stackley. Yes, sir. First, I would argue that the modular approach to the LCS mission package is the strength of the program. And you are correct that the full operational capability associated with the three mission packages across the two versions of the LCS, doesn't--that full operational capability doesn't come until late in the FYDP. But the incremental approach that we have outlined for that capability is ensuring that as the ships are delivered to the fleet, that we are able to marry up the increments of the mission packages as the ships are ready for fleet operations. So for example, I described at the mine countermeasure mission package, IOC, currently scheduled for late 2014, we will work through the funding issues, to try to hold on to that schedule. But what we are going to field then, will be increment one. And increment one will provide a level of capability, equal to or greater than, what we have in the fleet today. So it gives us confidence that, when we get increment one out there, we can start to deploy mine-countermeasure-capable LCSs in the 2015 timeframe. But the full capability associated with that mission package we will continue to follow in subsequent increments, and that full capability includes filling gaps that we cannot fill today. So, rather than hold the program, waiting for the full capability of the mission package, we are going to go ahead and field the first increment when we got a level of capability equal to or greater than what we have today, and as the follow- on technologies are ready, we will introduce those in such a fashion it doesn't disrupt the platform or the mission package, which is the way it was designed. So it is really a strength that we don't have to go in, rip anything out, but as the separate technologies complete their separate testing, they get to be integrated in with the mission package. That is the mine countermeasures and following suit on that is surface warfare. In fact, the Freedom is deployed today with the version of the surface warfare mission package, and we continue to improve upon that with subsequent increments, so she is able to deploy today, but then, by the 2017/2018 timeframe that you refer to, she will, in fact, be further capable in what we are deploying today. And then the third mission package is the ASW [Anti- Submarine Warfare] which probably, rightfully is--we try to array these in accordance with need, and that mission package is under development today, but we are using mature technologies in that case. And the issue then becomes integrating them onto the LCS platform. Mr. Forbes. Good. One question for the Air Force and either both of you take this. We are concerned, as you are, with sequestration and its impacts. As to sequestration impacts and the fiscal year 2013 and fiscal year 2014 budget assumptions by the Department, that sequestration will somehow be undone, the subcommittee is concerned about the impacts of funding shortfalls related to high priority programs, such as, the KC- 46 refueling tanker, and the new Long Range Strike Bomber. How will you prioritize these programs within your Service, and more importantly, what impact will our national security incur if these critical capabilities are delayed? General Davis. Sir, thank you. Those two programs make up three of the top priority programs in the United States Air Force, and they comprise about 27 percent of our budget, the bomber, the tanker, and the F-35 [Lightning II Joint Strike Fighter] program. And so, these are clearly priorities within our budget as we look to meet, you know, the new defense strategy which has us looking about how we fly in denied areas and into anti- access areas, notably in the Pacific. We were grateful for the fact that H.R. 933 [Consolidated and Further Continuing Appropriations Act, 2013] actually funded the required level we needed to protect the very valuable fixed-price contract on the KC-46, so we see, as General Allardice mentioned in his statement, that program going quite well. As we looked at the sequestration impacts to the very early phases of the Long Range Strike Bomber, the team was able to handle that 9 percent or so cut within it is development by kind of working around certain issues and being able to structure the program just a little differently in the very early phases. So they had some flexibility to preserve that. As it moves into some of its more important phases in the next year, so that flexibility for another levy somewhere out there, would all but be gone, so I think you can understand, that since those are our top three programs, those are critical that we protect those in the outyears. Mr. Forbes. And I think the programs are going well. You are kind enough to give us some good briefings on those, but can you--what can you tell us for the record if those programs were delayed, how would it impact our national security? So we can make sure they are not delayed. General Davis. Sir, I am going to let--I will let General Allardice talk about specifically the tanker, which is in his portfolio. Let me talk about the bombers. Every one of you who had mentioned something about the age of our bomber fleet was approaching 37-plus years. Our B-2 [Spirit stealth bomber], which is our newest airplane, is already on the verges of 30 years old. I was there when I saw that first airplane fly, and that just seems like decades ago. We have money, a lot of money, scattered through the POM [Program Objective Memorandum] to be able to maintain both--or all of the B-1 [Lancer strategic bomber], the B-52 [Stratofortress strategic bomber], the B-2, throughout what we hope will be 2040 and beyond. But it is money that doesn't provide a new capability. It really, if you will, treads water just trying to match the new threat that appears on the horizon every day. We are reacting to every threat that those bombers are going to have to penetrate. We are not leading the fight in that, if you will. We are not bringing in the new capability that the threat has to react to. We are just surviving diminishing parts. We are surviving new threat radar modes. We are surviving new missile technologies, and so, I don't know how we do that for another three decades. So that is why the Long Range Strike Bomber is absolutely critical to that. Mr. Forbes. And how about the tanker? General Allardice. Sir, thank you, and as you indicate, our program is going well today. As a reminder, 54 years, average age, today. The tanker the KC-46 will show up in 2017 to start. And we will field that over a number of years, and when we end the fielding of the KC-46, the KC-135 will be 80 years old. As a pilot, flown the 135, loved it to death, the first one I flew is the same age as I am. I hope I am alive to fly it when it is 80 years old. It is hard for me to comprehend, particularly in light, as General Davis said, a requirement to go into anti-access/area-denial areas. So delaying the program today, which is a firm fixed price, we believe we have a very good deal with the contractor. Any delays puts that at risk, drives the cost up, per unit cost, up to a level that I doubt we would save anything, and we would just be putting our force at risk. Mr. Forbes. I think Mr. Langevin had a final question, sir? Mr. Langevin. Thank you, Mr. Chairman. Secretary Stackley and Admiral Myers, given the importance and increasing complexity of cyber-related issues, as our system is getting increasingly complex, interconnected, and interdependent, how are you procuring to ensure that systems are able to function in warfighting environments, where our data links may be degraded or denied or where the networks may be under significant strain from cyber attacks. That is one question. The other question I had is, given the potential capabilities of unmanned, under sea vehicles promised to provide, will you please give us a brief update on the Navy's plans for these systems? Secretary Stackley. Yes, sir. Let me start with your second question, unmanned vehicles. Clearly, one of the priorities for the Secretary of the Navy has been to expand our employment of unmanned vehicles, both the surface and underwater as well as air. We have got a number of developments that are ongoing, a number of prototypes that are in operation and, in fact, we have accelerated the deployment of certain capabilities. So for example, we employed an underwater surveillance system, its acronym was PLUS [Persistent Littoral Undersea Surveillance], persistent long range underwater surveillance, to demonstrate not just the ability of technology to capture data, at sea, over long periods of time, but actually to employ that in an operationally relevant environment. And that has led to continued emphasis for that capability. Separately, I described on the discussion on the LCS efforts that are going into the mine countermeasure mission package, a central element of the MCM mission package, is the remote mine hunting system which is a semisubmersible unmanned vehicle, and that is, perhaps, our most mature surface or subsurface unmanned vehicle. But then, coming around to the submarine program, we are looking at large displacement UUVs [Unmanned Underwater Vehicle] and the ability to deploy the LDUUV [Large Diameter Unmanned Underwater Vehicle] with the payloads that it would bring to extend the reach and the capability of the submarine. So these are three quick snapshots. Double that number in terms of what is going on the air side, to bring the maturity to the fight in as rapid a fashion as we can through a combination of development and, in certain cases, we are leveraging urgent needs to accelerate the fielding of those capabilities. Admiral Myers. Thank you. And just to complement what Secretary Stackley said, and I will start with the protecting the infrastructure first with cyber and then finish up with our unmanned programs. Developing a cyber workforce is very important for the Navy. And taking that workforce and that approach into our ships and protecting our ships, so one example that is in our President's Budget 2014 submit, is the consolidated afloat network and enterprise services gains that is going to be on our next--on our ships and with our next-generation network ashore. So if this is going to reduce the number of Navy networks and applications and it continues to expand the inspection of cyber hygiene with improved results. So we think that at least with the training of the people and the backbone that we are going to have on our shifts, and the way we are approaching our shore establishments that, we are on the right track. When it comes to unmanned systems, we have a number of activities and, as Mr. Stackley correctly highlighted, in a number of different areas. I mean, it goes all the way from the X-47B, the UCAS [Unmanned Combat Air System] demonstration which goes to the USS Bush. She has already completed the sea trials when she was on the USS Harry S. Truman, and this spring, we will take it to the next level. We have the UCLASS program which is by fiscal year 2020. We are going to have enhanced reach and persistence that will come off of our interior strike groups, and Mr. Stackley already highlighted undersea, the large diameter UUV, what we are doing there. So we continue across the spectrum to advance our unmanned systems. Mr. Langevin. Thank you for your time---- Mr. Forbes. Gentlemen, thank you so much for your time today. As we mentioned at the outset, this is the transcript that we have to use to do our portion of the defense authorization markup, so it is very crucial to us, and we thank you for your time. And as I said at the beginning, I want to take just a moment now and Admiral Myers and Secretary Stackley, I want to begin with you. Is there anything that you believe we have mischaracterized today or any question that you didn't to fully respond to, or is there something that you think is important to get on the record that we need to have on there before we do the markup. And Admiral, we will start with you. Admiral Myers. Well, thank you, Chairman. There were a couple of questions that were addressed to both Secretary Stackley and myself, and Secretary Stackley did a marvelous job of responding, but I also wanted to make sure that, as you went to the next question, that I had a chance to---- Mr. Forbes. Sure. Admiral Myers [continuing]. Since it was addressed to both of us. The first one has to do with the LCS and the mission packages, and I concur with everything Secretary Stackley said, but I just want to reinforce that, the Navy feels like we have LCS in the mission package procurement and development right. When you look at the three different mission packages, the surface, the antisubmarine and combined countermeasure mission packages, they each have an initial operations or operable date that we intend to field them in the fleet. And with the surface package, that is in fiscal year 2014, we intend to procure 24 of those. With the ASW package, that is going to IOC in 2016, with 16--and eventually we will have 16 packages and then with the mine countermeasure, it is again in fiscal year 2014, with 24 packages and is a program objective. Now just looking at the MCM packages, again, like Secretary Stackley said, this is an improvement over what we have today. So we already--we procured four MCM packages in the increment one. Two of them have been delivered, and we are expecting the other two later this year. This improvement will be succeeded as we develop increased capability that we can modularize and put in eventual increment two, increment three and increment four in the future, so we will have more and more capable MCM mission packages on our Littoral Combat Ships. When you look at the procurement rate of the ships and the way that we are developing these packages, we think we have it about right. Mr. Forbes. Thank you, Admiral. Mr. Secretary, thank you again, and anything---- Secretary Stackley. Sir, I just want to first thank you for your support, the committee's support throughout the past rather difficult budget year. I mean, not too long ago we were staring at the prospects of a yearlong continuing resolution, and thankfully, that is behind us. And as we work through the impact associated with sequestration, you have our commitment to work closely with your staff because, realistically, our adjustments associated with sequestration, will directly affect your deliberations on the 2014 budget, and we both need to keep those closely coupled so that we end up on the backside with the right results. Your questions regarding what has happened to the projection of the topline over the next decade, we will get back to you on that. But the specific question regarding whether or not the Services have raised their hand to say we can't get there from here. As you well know, we do balance requirements and budget, and one of the things that we have got do under all circumstances is articulate what impacts are and what the risks are. And that is what we attempt to do year in, year out, as the budget cycle turns, first inside the building and then as the budget comes over the Hill with the committees, so that you all can do your job, not just in terms of oversight, but just like your placard states, just like the Constitution states to provide and maintain a Navy, you need those insights with regards to what is the impact on national security at this budget level, with this program that you have brought forward and that is our commitment to you. Mr. Forbes. Mr. Secretary, we thank you. Nobody knows the long hours all of you pull outside of these hearings and we appreciate them and respect you all for it and want to work closely with you on that. Admiral--I am sorry? Admiral Myers. Is this an opportunity for closing or? Mr. Forbes. I tell you what let---- Admiral Myers. Or are you going---- Mr. Forbes. No, you go right ahead and do that as part of this as we go down the line, so Admiral---- Admiral Myers. Okay, I want to make sure I didn't miss an opportunity. Mr. Forbes. No, no, this is yours. Admiral Myers. Okay, well thanks. I want to thank Congress for the fiscal year 2013 National Defense Authorization Act and the 2013 Defense Appropriations Bill. Based on our strategies and policies, we are using these funds to pay our civilian personnel, must-pay bills, reconcile our fiscal year 2013 readiness and sustain the operations and maintain those ships and airplanes that are priority for forces that are going to deploy for fiscal year 2013 for the rest of the year and prepare for the fiscal year 2014 Global Forces Management Allocation Plan, the GFMAP. We are also using those funds to restore critical base operations and renovations. Now, we are still working through the impacts of fiscal year 2013 sequestration and we know that sequestration is going to impact our fleet and bases in a way that is going to make them less ready than we planned for. So the funding that has impacted us across the Navy has been about 8 percent. This will likely result, when you look at the procurement side, in fewer weapons and aircraft and it is going to increase our ship construction costs and manifest itself in time to complete or later initial operating dates. I ask for your support for the fiscal year 2014 budget request and thank you for the opportunity to testify on behalf of the 613,000 Navy sailors and civilians operating around the world. Thank you. Mr. Forbes. Thank you, Admiral. Mr. Secretary, anything else that you have? General, you have anchored both of these two groups today. We thank you for the great job the Marine Corps always does. You are always great leaders and you have done such an admirable job for us for so many years, thank you for being here. Same question to you, anything we need to get on the record for the Marine Corps that you think is important as we go into this markup? General Mills. Mr. Chairman, just let me add to the thanks on behalf of all your marines for the support that you give and the support the entire committee gives to what the Marines do today and what we are--have to be doing in the future. And just once again, to reemphasize the criticality of the ACV program to us and to our core competencies and to the effort that we are putting into it to ensure that we meet the affordability options but also to maintain that capability for this Nation in a time of crisis. Mr. Forbes. Thank you. Thank you. General Mills. Thank you for the opportunity. Mr. Forbes. It is important that we get that on the record so we can make sure we are letting our members know that. General Davis, once again, thank you and General Allardice for all; you have done. My question to you, the same thing, is there anything we mischaracterized today that you want to correct or any questions that we left out that you think is important to say and this is your time to get it on the record. General Davis. Sir, just a couple of things. I want to say first of all, you personally have reached out to many of us to ask our inputs on some situations that are going on and I want to thank you for that and the committee's support as been mentioned here today. That kind of dialogue is invaluable and as Secretary Stackley mentioned, we don't get through 2014, 2015 and 2016 and out unless we can continue that open dialogue with you and your committee and I appreciate that opportunity. We will get back to you as directed on these funding issues. The only thing I will add is that in the Air Force, we have seen that as we have the ability to use the expert airmen we have to try to build a structure to meet whatever number we are given, we believe we have the capability to manage a lot. It is when that capability to shape our force structure with the consent and advice of Congress gets taken out of our hands, we have an issue and so, I--we need to come back to you with how we have dealt with and how our leadership has answered that. I also want to thank you through the questions and through the answers the very intricate and detailed and exquisite master class I had on shipbuilding here today and it gives me great confidence that as we expand our CONOPS [concept of operations] with the Navy and the Marine Corps and the other Services on air-sea battle that we are going to have some great and capable partners as we go through this. I do want to mention though that United States Air Force has the daunting requirement to be able to move anything around the world at any time as General Allardice mentioned and in addition to be able to strike any spot on the world at any time and we do that through the great support aircraft we have, through the mobility aircraft tankers and also through the long-range bombers that are a very key element of power projection which did not get much notice here today. And I want to mention the fact that we struggle with keeping that fleet, as you had noted a couple of times, viable as parts of that fleet will reach 80 years old or more before it is replaced, we are worried about what the outyear numbers of our budgets will do to that and we are going to do everything we can to continue to modernize not only the B-2 but the B-1 and the B-52. We have significant amounts of our Air Force TOA [Table of Allowance] going into our budgets throughout the FYDP. And as you mentioned, the Long Range Strike Bomber has about $380 million this year and about $8.8 billion across the FYDP. We are putting in excess of around $500 million in the B-52 just to be able to bring it into the 20th century so to speak with digital weapons as well as data links that can command it and control it in any spot of the globe beyond line of sight and that is something that is well overdue for that venerable platform. Even the B-1, which has proven to be a quite capable, even close air support airframe over in Afghanistan which will now turn its eyes, if you will, further west, is going to have about $608 million put into it over the FYDP to be able to bring integrated capabilities to and including data links and improved situation for the pilots. But the B-2 again, as I said, just to be able to get it to match the threat across the FYDP is going to require about $5 billion. That will just bring the capabilities so it can recognize the threats that exist out in the denied and anti- access areas. It will give it some capability to communicate back and it will give it better capability to receive nuclear command and control messages and that is going to be important. But as I look at our bomber fleet, we have to remember that, again, we put that fleet any place in the world at any time and it probably would be worth imagining what went through the minds of the North Koreans as those airplanes were over their country and they couldn't do a dadgum thing about it. And so, that is why there is so much of the Air Force budget going into these airplanes. But I say again, all we have been able to do is react to what the threat is and as a student of air power and of having been involved in this situation, the last thing you want to be as an airman is predictable because that makes you just a target. And so, that brings us back to the long range strike bomber which constantly receives questions about why another bomber if these airplanes are going to be around for 40-plus years? That airplane is going to be the beneficiary of 20-plus years of technology development on other airframes and other classified programs and avionics that exist on F-22s [Raptor fighter jet] and F-35s. And that will get us to these areas of the world where we can't necessarily survive for lengthy periods of time today. It will make us be the one that is driving the threat reaction, not driving our budget to fit whatever is going on in that part of the world. So I appreciate the support your committee's giving for that. I do see that as being a very key cornerstone of the United States Air Force in the future since it is our core mission to strike anywhere in the world at any time. So I appreciate the support for that. And I thank you for the chance to get in a few comments. Mr. Forbes. General, I thank you for those. And one of the things I want you to know too is how much we respect your Department, it is ability to give us a lot of these detailed questions that we have been doing on shipbuilding, we have been doing with you guys but y'all been giving it to us in classified settings, you know. But we appreciate that. The second thing is if anything history has taught us in the last few years, it is so important to have partnerships when we see these budget cuts and the sequestration, we can scream about it and yell about it but unless we hear you guys coming in here giving us that picture to give to these policymakers, we will continue to see these lines. That is why we push so hard to get those pictures of what those risks really are so that we can paint them. But thank you for the great work that the Air Force is doing and that you personally do. General Allardice. Thank you, Chairman, I am honored. One point of clarification to follow up with Congressman Runyan that the--one of the points with working with the CRAF as we consider legislation or policy is to maintain decision space for the combatant commander. We don't want to put that at risk and that is really a point to reinforce. Thank you. I really appreciate my brother's articulation about holding the target at risk anywhere in the world. Halfway around the world is about 12,500 miles; that is, for the average person, that is like flying coast to coast in the United States four times nonstop. That is really hard to do. When we put a B-2 out to fly over Korea and say hey take off out of the United States and from the United States and go perform that mission. The capability that brings to bear is a pretty impressive capability. Behind the scenes there are at least four air refuelings one way. In order to execute that, we have to have an en-route structure, something we don't hear very much about, little parts around the world where we can place our tanker force so that we can deliver that capability and then we also have in the airlift business our contingency response force which are the men and women that go right after and air--seizure to allow us to accelerate the flow of the logistics movement. My point here is that as we draw down and we start to reposture our force because of the new strategy, something we have to really be attuned to is that in order to hold targets at risk anywhere in the world, we have to have a balanced force throughout the world in order to be able to fly 12,500 miles unrefueled to either deliver a bomb or a hope package. Thank you for your time, sir. Mr. Forbes. General Allardice, we thank you for your service and let me just tell you, we don't want you to be predictable and we want you to be cutting-edge, we don't want to lie on our laurels and the other thing we all want to be committed to making sure of is that our budgets are not driving our strategy but our strategy is driving our budget and we all work together, we can get that as a nation. And with that, I thank you all and we are adjourned. [Whereupon, at 12:19 p.m., the subcommittee was adjourned.] ======================================================================= A P P E N D I X April 24, 2013 ======================================================================= ======================================================================= PREPARED STATEMENTS SUBMITTED FOR THE RECORD April 24, 2013 ======================================================================= Statement of Hon. J. Randy Forbes Chairman, House Subcommittee on Seapower and Projection Forces Hearing on Oversight of U.S. Naval and U.S. Air Force Acquisition Programs in the Fiscal Year 2014 National Defense Authorization Budget Request April 24, 2013 I want to welcome all our members and our distinguished panel of experts to today's hearing that will focus on the Administration's Fiscal Year 2014 budget request. In the decade ahead I believe we will increasingly lean on our Seapower and Projection forces to underpin our national security strategy. Our naval forces are deployed around the world, protecting the world's sea lanes and operating forward to deter conflict. Our projection forces are uniquely ready to support a wide range of mobility, strike, and strategic deterrence missions around the globe. While I am pleased at the capabilities provided by our forces today, the long-term outlook of our defense posture is being challenged. Naval forces embarked on Carrier Strike Groups and Amphibious Readiness Groups routinely deploy 7 to 8 months. Because of the Navy's sustained surge, our nuclear aircraft carriers are depleting their nuclear reactor propulsion units at accelerating rates. Our bomber fleet averages 37 years old and our venerable tanker fleet averages an even older 48 years. While we are meeting the minimum requirements of our ever- retreating national strategy, it is painfully obvious that our future readiness is being leveraged to pay for our current requirements. The most recent example of the Administration's direction is the 30-year shipbuilding plan that was partially submitted on Monday. The Administration once again proposes the early retirement of seven cruisers and two amphibious ships in fiscal year 2015, well before the end of their service lives. With 31 ships being retired over just the next 2 years, we are headed towards a fleet size of 270 battle force ships by FY15. Decline is a choice, and I believe this new plan willingly chooses to continue the slow, painful decline of robust American Seapower. The plan also includes a significant increase to the overall ship construction budget to accommodate the Ohio class ballistic missile submarine replacement. At over $5 billion, these strategic investments in our nuclear triad are essential. I remain concerned that during the procurement and construction of the Ohio class replacement the shipbuilding budget will demand an average of $19 billion per year. To fund both this new boat and the battle force it will take either a substantial increase in the shipbuilding account or an effort to fund the Ohio class replacement from outside this account. I look forward to continuing to work with the Department and the Navy to address this funding shortfall. During the Navy posture hearing earlier this month, military leaders indicated that they were pleased at the investment in the ship construction accounts and highlighted the dearth of ships in construction when they took office. To arrest this decline, this Administration embraced a plan that includes an aggressive strategy to build a moderately capable surface combatant called the Littoral Combat Ship that adds over 50 ships over the term of the plan. But unfortunately, the mission modules that are integral to support this 20-year seaframe are still in the research and development, complicating the Navy's ability to respond to basic mine countermeasure missions and antisubmarine missions. Just as the fleet is shrinking from the retirement and procurement of less major surface combatants and amphibious ships, we are filling these shortfalls with smaller surface combatants and support vessels. We need to take steps to arrest the decline of our battle force fleet. As to the Air Force projection forces, I am pleased that we may be initiating the semblance of a credible recapitalization plan. With the support of an investment in the KC-46 tanker program and strategic emphasis on the Long Range Strike Bomber, I believe that the Air Force is on the right path with the right platforms for our Nation's future. I look forward to supporting these continued investments in our mobility and projection forces capabilities. As to the Marine Corps, I understand the Amphibious Combat Vehicle is the Marine Corps top priority for ground force modernization and the Marines have completed the required analysis of alternatives. We need to get this program right for the future of the Marine Corps and I look forward to receiving an update on this critical program. I would be remiss if I also did not recognize the Navy in providing a credible long-term acquisition strategy that uses block-buy and multiyear procurements to secure steep reductions in overall naval pricing. Not only is this a good strategy for our Nation's taxpayers, it provides the long-term surety to our industrial base that will allow them to make critical investments for their long-term health. My friends, we are at a strategic inflection point in terms of our defense policy. Concurrent with the new strategy being contemplated by this Administration, my fear is that the overall capabilities of our military will continue to atrophy and our inability to be able to operate forward and project power will embolden regional instability. In the end, further defense reductions will be paid for in the lives of our service members. I refuse to accept this premise and will do everything in my power to arrest further decline by modernizing and growing our capabilities. Joining us today to discuss the fiscal year 2014 budget request are five distinguished and patriot gentlemen:LHonorable Sean Stackley, Assistant Secretary of the Navy for Research, Development, and Acquisition; LVice Admiral Allen G. Myers, USN, Deputy Chief Naval Operations for Integration of Capabilities and Resources; LLieutenant General Richard P. Mills, USMC, Deputy Commander for Combat Development and Integration; LLieutenant General Charles Davis, USAF, Military Deputy, Office of the Assistant Secretary of the Air Force for Acquisition; and LLieutenant General Robert R. Allardice, USAF, Vice Commander of the Air Mobility Command. Gentlemen, thank you all for being here. 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FORBES Secretary Stackley. The Budget Control Act (BCA) of 2011 established caps for discretionary spending and reduced funding using two methods. The first method immediately reduced discretionary spending by $900 billion across the 10-year period from FY 2012 to FY2021. This reduction was divided between ``security'' and ``non-security'' functions. The Department of Defense (DOD) share was $487 billion. This reduction was included in the President's Budget submission for FY 2013. The second method reduces discretionary spending by $1.2 trillion over 10 years. The first step was the creation of a Joint Committee to recommend legislation to meet the reduction goal. In the event the Joint Committee did not propose legislation, or Congress failed to pass the recommended legislation, a sequester would take place to reduce ``defense'' and ``non-defense'' discretionary spending. This reduction is being implemented in the FY 2013 budget, but is not included in the President's Budget submission for FY 2014. [See page 10.] Admiral Myers. To my knowledge, Navy leaders have not said ``Too many cuts, we shouldn't be taking this.'' We have been consistent in describing how senior DOD leaders conducted an assessment of the ability of our force to implement the new Defense Strategic Guidance (DSG). The Navy also assessed the capabilities, training, and the number and type of ships and aircraft required to execute the strategy. We determined the force supported by the FY13 and FY14 President's budget submissions was able to execute the strategy with acceptable risk. [See page 11.] Admiral Myers. The Navy submitted an unfunded requirements list for FY12 to the HASC that included $367 million for depot-maintenance work on surface ships and $317 million rotary and fixed-wing aircraft spare parts. An unfunded requirements list was not submitted for FY13 because the Navy's FY13 budget request was balanced to requirements and aligned with the new Defense Strategic Guidance. [See page 25.] General Mills. On 6 June 2013, the Secretary of Defense submitted the Services' unfunded priorities in a letter to Chairman McKeon; enclosed was a letter from General Amos to Chairman McKeon describing the Marine Corps' unfunded priorities. These unfunded requirements would enable the Marine Corps to meet FY2014 emergent, priority mission requirements should additional funds above those already requested in the FY2014 President's Budget be made available. The Marine Corps' unfunded requirements list is composed of four programs: Special Purpose Marine Air Ground Task Force--Crisis Response (SPMAGTF-CR), the Marine Security Guard (MSG) program, Joint Strike Fighter (JSF), and Marine-Forces Cyber. SPMAGTF-CR is a new, regionally based Marine Air Ground Task Force that provides immediate crisis response capability in support of Geographic Combatant Commanders, portions of which have already been deployed to Libya. The expansion of the MSG program follows the need for, and Congressional direction to provide, expanded support to U.S. State Department diplomatic missions abroad. Restoral of funding for the JSF would buy-back one F-35B aircraft lost as a result of sequestration in FY2013 and return the program to pre-sequestration procurement levels in FY2014. Additional funding for Marine Forces Cyber would allow the Marine Corps to fully support mandated requirements for U.S. Cyber Command in FY2014. While each of these programs is crucial to the Nation's defense, it must be reiterated that additional funds for these emergent FY2014 requirements and critical capabilities cannot come at the expense of programs and capabilities resourced through the FY2014 President's Budget Submission. Any changes to that submission would adversely impact operational capability and readiness. [See page 11.] General Allardice. Chairman, during the Fiscal Year 2013 Air Force Posture Hearings, the Service supported the Fiscal Year 2013 Presidential Budget which included cuts mandated by the Budget Control Act of 2011. This act reduced Department of Defense funding by $487 billion over 10 years. As part of those hearings we highlighted the Budget Control Act cuts came with increased risk and any further cuts or reductions would challenge our ability to maintain readiness and long-term modernization requirements. [See page 11.] General Davis. During the FY13 AF Posture Hearings, the Service supported the FY13PB which included cuts mandated by the Budget Control Act of 2011 which reduced DOD funding by $487B over 10 years. We highlighted the BCA cuts came with increased risk and any further cuts or reductions would challenge our ability to maintain readiness and long-term modernization requirements. [See page 11.] ______ RESPONSE TO QUESTION SUBMITTED BY MR. LANGEVIN Secretary Stackley. The development and ship integration of energy- intensive systems such as directed energy weapons (DEW) (e.g. high- energy lasers (HEL) and High Powered Radio Frequency (HPRF)) and Electromagnetic Railgun (EMRG) weapons require careful engineering considerations. Naval shipboard integration considerations include space, weight, services (e.g., power, cooling) and stability effects as well as impacts on the combat systems and fire control capabilities and interfaces. Continued technical maturity and future shipboard integration will be accomplished through a measured approach to the allocation or upgrade of shipboard services and integration of weapon capabilities with interfacing shipboard systems. The Navy's near-term focus is on the solid state laser quick reaction capability (SSL-QRC) program, which will field a pre- production combat prototype based on the Laser Weapon System (LaWS), and the Solid State Laser Technology Maturation (SSL-TM) program. SSL- QRC (LaWS) is planned to deploy to the Persian Gulf in 2014 onboard the USS PONCE to demonstrate the ability to meet operational gaps in ship self defense missions against armed small boats and unmanned aerial vehicle threats. Long-term (beyond the current FYDP) Navy DE plans include the development of weaponized HPRF systems operating in the radio frequency spectrum and development of the Free Electron Laser (FEL) that has the potential for operations at much higher power levels. SSL-TM will help determine the load capacity and most effective means to integrate a HEL on other naval surface combatants, such as DDG-51 and the Littoral Combat Ship. The SSL-TM goal is to demonstrate a one hundred to one-hundred and fifty (100-150) kilowatt Advanced Development Model (ADM) prototype with much greater ranges of effectiveness/lethality suitable for long-term shipboard installation by 2016. The SSL-TM program is expected to address key technical challenges in ruggedized laser subsystems, optics suitable for long- term maritime environmental exposure, and the capability to repeatedly propagate lethal power levels to viable targets through difficult maritime atmospheric conditions. The SSL-TM prototype will include sufficient maturity to commence an acquisition program of record. Concurrent with SSL-TM, The Navy will conduct an Analysis of Alternatives (AoA) in FY14 on the feasibility and utility of developing a laser-based DEW system. This analysis will provide benchmarks for cost, schedule and performance requirements including shipboard integration issues of a shipboard laser weapon system. The AoA will also analyze various laser weapon options and assess those options against current kinetic weapons for effectiveness, engagement cost, and system life-cycle costs. Laser options will be based on the projected capability of ONR's SSL-TM program and lethality data derived from the SSL-QRC (LaWS) deployment on USS PONCE. Based on the results of the AoA, Capability Development Documents will be written for systems selected for transition to an Acquisition program for development, testing and then to be installed in the Fleet. The Office of Naval Research (ONR) initiated the EMRG Innovative Naval Prototype (INP) in FY05 to explore maturation of electromagnetic technologies. INP Phase 1 demonstrated the technical feasibility of the launcher barrel life, industry manufacturing of prototypes, single-shot pulsed power and projectile components at a relevant energy level to 32MJ. INP Phase 2 (FY12-FY17) will validate the repetition-rate capability of 10 rounds per minute for the barrel and pulsed power including the thermal management and auto loader. INP Phase 2 will produce the tactical barrel and repetition rate pulsed power matured to a Technical Readiness Level (TRL) of 6, consistent with size, weight and volume required for navy ship applications. DEWs and electric weapons (e.g. EMRG) generally demand significant electric power from the ship's distribution system. Energy storage systems, including batteries, limit the impact of these large transient loads and provide temporary electrical power beyond the ship's generating capacity. These energy intensive systems also represent significant thermal loads that must be mitigated by the ship's cooling systems. Some current fleet platforms can support these electric weapons, but none without at least some modification. The scope of the modification depends on the desired muzzle energy (EMRG) or optical output power (HEL) and operational concept for the weapon (repetition rate, engagement timeline). As a result of its current technological progress, the potential to contribute to multiple warfighting gaps, and projected shift of cost curve in favor of U.S. defense against adversaries, our warfighting analysis justifies continued pursuit of EMRG. However, due to the current state of EMRG technology the Navy is still developing a roadmap for integrating EMRG for use aboard surface ship combatants. ONR, Naval Sea Systems Command (NAVSEA), and Office of the Chief of Naval Operations (OPNAV) staffs have explored potential ship and weapon system integration options for EMRG. As a result of these ship studies, Navy is focusing on the most viable options, DDG-51 and DDG-1000, due to their greater available space, weight and services growth margins. Follow-on studies will concentrate on ship configuration; required power and cooling; and the combat systems interface. Platform integration challenges include the power requirements of a 32MJ EMRG, as well as adequate space and/or weight allowance for batteries and capacitors. While very energy-intensive weapons systems are not currently mature enough for fielding today on U.S. naval combatants, continued progress on the technologies covered in the Naval DE Roadmap efforts (i.e. HEL, HPRF), and the EMRG effort are projected to result in capabilities that can meet future formal requirements. As part of the Navy's Two-Pass Six-Gate review process for major defense acquisition programs, a Gate 6 Configuration Steering Board (CSB) is conducted annually for each ship Class. Once a DEW has reached a sufficient level of maturity, the CSB could review the candidate technology along with the relevant requirements and cost information to determine if transitioning the capability to an acquisition program and incorporation into the ship class is warranted. If inclusion is warranted, the CSB would also determine on which hull the candidate technology would be incorporated. For technology that provides significant capability increase but also presents a significant installation impact to a ship, the capability benefits and costs will have to be weighed with installation occurring during new ship construction to minimize cost, if pursued. If the installation impact is less, the technology could be included as part of a back fit or post delivery installation. On April 29, 2013 the Commander NAVSEA signed the Naval Power Systems (NPS) Technology Development Roadmap (TDR). The NPS TDR aligns electric power system developments with warfighter needs, including support for DEWs and other energy-intensive weapons and sensors for shipboard use, to ensure that future Navy ships are capable of accepting the power and cooling loads of such systems as they are developed. This roadmap addresses both new construction integration and back fit of technologies into ships already in service. While specific in its recommendations, the NPS TDR is designed to adapt to evolving technical requirements from weapons and sensors system developments as well as changes in the Navy's 30-year shipbuilding plan. The NPS TDR will be updated approximately every 2 years. The NPS TDR \1\ represents a roadmap for these ship power technologies, how we plan to mature the technologies and then, how these technologies can support fielding of energy-intensive systems. --------------------------------------------------------------------------- \1\ The NPS TDR is retained in the committee files and can be viewed upon request. --------------------------------------------------------------------------- To incorporate DEWs and other high powered weapons and sensors into ship platforms, the NPS TDR has introduced the concept of an Energy Magazine to provide the interface and the required power from the ship's electrical system to the high powered weapons and sensors. The Energy Magazine will initially support near-term applications such as a HEL on a legacy platform with a 450VAC ship's power interface. As new mission systems become available for ship integration, the Energy Magazine can be expanded to accommodate multiple loads by providing the appropriate power conversion and energy storage. A standard set of load interface definitions for future weapons and sensors will enable a competitive open architecture approach for a multifunctional Energy Magazine. The Under Secretary of the Navy approved Naval Directed Energy Steering Group is currently drafting a near-term (2-5 years) Naval DE roadmap based on the approved Naval DE Vision and DE Strategy to establish strategic goals, guiding principles, mission area priorities, roles and responsibilities, and overarching objectives regarding the acquisition and fielding of DEWs across the Navy and Marine Corps. This roadmap will also address the way ahead for the platform requirements (power and cooling) necessary to support these systems. This roadmap is scheduled for approval in the fall 2013. [See page 29.] ______ RESPONSE TO QUESTION SUBMITTED BY MR. JOHNSON Admiral Myers. Fifth Fleet/U.S. Naval Forces Central Command (NAVCENT) has a robust Continuity of Operations (COOP) program in place to address contingencies in Bahrain. COOP contingencies may be triggered by natural disaster, civil unrest, terrorist activity, technological degradation, belligerent action, pandemic events or any other condition that seriously degrades security or the ability to conduct operations. NAVCENT's COOP Operation Order (OPORD) is designed to provide the capability to continue mission essential functions without unacceptable interruptions during an emergency or disruption. The COOP OPORD includes dispersal of the NAVCENT staff with afloat and ashore options and capabilities. NAVCENT routinely exercises the COOP plan to validate and refine pre-programmed responses and identify gaps in planning and capabilities. [See page 22.] ? ======================================================================= QUESTIONS SUBMITTED BY MEMBERS POST HEARING April 24, 2013 ======================================================================= QUESTIONS SUBMITTED BY MR. FORBES Mr. Forbes. The subcommittee understands that the Navy has changed the test program for UCAS in fiscal year 2014 and does not plan to conduct unmanned autonomous aerial refueling with the UCAS aircraft. Given this change to the UCAS test program, what kind of implications could this have for the follow-on UCLASS program if UCAS does not perform autonomous aerial refueling and what kind of risk does this add to the UCLASS program? Secretary Stackley and Admiral Myers. [The information was not available at the time of printing.] Mr. Forbes. In fiscal year 2014, the Air Force included funds to restart the B-52 CONECT program, but only for 28 of 76 total B-52 aircraft. What are Air Force plans to modify the remaining fleet of 48 B-52 aircraft in order to maintain a common configuration capability among the fleet as required by law contained in the fiscal years 2007 and 2008 NDAAs? General Allardice and General Davis. The Fiscal Year 2014 President's Budget reinstates the original B-52 CONECT program for a total of 30 B-52s. This includes modification of two test aircraft which were funded with prior year funds. The Air Force plans to address the remaining 46 aircraft (for a total of 76 aircraft) in future budgets. ______ QUESTIONS SUBMITTED BY MR. LANGEVIN Mr. Langevin. I'm particularly interested in how you are planning now to have the capability to integrate very energy-intensive weapons systems, such as directed energy weapons, high-power microwave and electronic warfare systems, and railguns into surface combatants. Can you provide the Navy's plan to ensure that the ships we are planning for and procuring now are capable of accepting the power and cooling loads of such systems in the future? During the hearing, you outlined a roadmap structure for the technologies which will show how the Navy is maturing the technologies and then what that means to Naval Platforms. To this end, please provide that roadmap. Secretary Stackley and Admiral Myers. The development and ship integration of energy-intensive systems such as directed energy weapons (DEW) (e.g. high-energy lasers (HEL) and High Powered Radio Frequency (HPRF)) and Electromagnetic Railgun (EMRG) weapons require careful engineering considerations. Naval shipboard integration considerations include space, weight, services (e.g., power, cooling) and stability effects as well as impacts on the combat systems and fire control capabilities and interfaces. Continued technical maturity and future shipboard integration will be accomplished through a measured approach to the allocation or upgrade of shipboard services and integration of weapon capabilities with interfacing shipboard systems. DEWs and electric weapons (e.g. EMRG) generally demand significant electric power from the ship's distribution system. Energy storage systems, including batteries, limit the impact of these large transient loads and provide temporary electrical power beyond the ship's generating capacity. These energy intensive systems also represent significant thermal loads that must be mitigated by the ship's cooling systems. Some current fleet platforms can support these electric weapons, but none without at least some modification. The scope of the modification depends on the desired muzzle energy (EMRG) or optical output power (HEL) and operational concept for the weapon (repetition rate, engagement timeline). On April 29, 2013 the Commander NAVSEA signed the Naval Power Systems (NPS) Technology Development Roadmap (TDR). The NPS TDR aligns electric power system developments with warfighter needs, including support for DEWs and other energy-intensive weapons and sensors for shipboard use, to ensure that future Navy ships are capable of accepting the power and cooling loads of such systems as they are developed. This roadmap addresses both new construction integration and back fit of technologies into ships already in service. While specific in its recommendations, the NPS TDR is designed to adapt to evolving technical requirements from weapons and sensors system developments as well as changes in the Navy's 30-year shipbuilding plan. The NPS TDR will be updated approximately every 2 years. The NPS TDR, attached, represents a roadmap for these ship power technologies, how we plan to mature the technologies and then, how these technologies can support fielding of energy-intensive systems. To incorporate DEWs and other high powered weapons and sensors into ship platforms, the NPS TDR has introduced the concept of an Energy Magazine to provide the interface and the required power from the ship's electrical system to the high powered weapons and sensors. The Energy Magazine will initially support near-term applications, such as a HEL on a legacy platform with a 450VAC ship's power interface. As new mission systems become available for ship integration, the Energy Magazine can be expanded to accommodate multiple loads by providing the appropriate power conversion and energy storage. A standard set of load interface definitions for future weapons and sensors will enable a competitive open architecture approach for a multifunctional Energy Magazine. While very energy-intensive weapons systems are not currently mature enough for fielding today on U.S. naval combatants, continued progress on the technologies covered in the Naval DE Roadmap efforts (i.e. HEL, HPRF), and the EMRG effort are projected to result in capabilities that can meet future formal requirements. As part of the Navy's Two-Pass Six-Gate review process for major defense acquisition programs, a Gate 6 Configuration Steering Board (CSB) is conducted annually for each ship Class. Once a DEW has reached a sufficient level of maturity, the CSB could review the candidate technology along with the relevant requirements and cost information to determine if transitioning the capability to an acquisition program and incorporation into the ship class is warranted. If inclusion is warranted, the CSB would also determine on which hull the candidate technology would be incorporated. For technology that provides significant capability increase but also presents a significant installation impact to a ship, the capability benefits and costs will have to be weighed with installation occurring during new ship construction to minimize cost, if pursued. If the installation impact is less, the technology could be included as part of a back fit or post delivery installation. The Under Secretary of the Navy approved Naval Directed Energy Steering Group is currently drafting a near-term (2-5 years) Naval DE roadmap based on the approved Naval DE Vision and DE Strategy to establish strategic goals, guiding principles, mission area priorities, roles and responsibilities, and overarching objectives regarding the acquisition and fielding of DEWs across the Navy and Marine Corps. This roadmap will also address the way ahead for the platform requirements (power and cooling) necessary to support these systems. This roadmap is scheduled for approval in the fall 2013. Mr. Langevin. As our systems get increasingly complex, interconnected, and interdependent, how are you procuring to ensure that systems are able to function in warfighting environments where datalinks may be degraded or denied, or where networks may be under significant strain from cyberattacks? Secretary Stackley and Admiral Myers. The Navy currently trains to operate in a communications denied environment. As adversary tactics and capabilities have increased in this area, the Navy has adapted its training and acquisition strategies to defeat them. The Navy incorporates realistic communications denied conditions into major exercises and Fleet training in order to develop capabilities and refine warfighting skills and tactics for sustained operations in a communications denied environment. Information Dominance (ID) training, to include cyber, Operational Security (OPSEC), Military Deception (MILDEC), and Command and Control in a Denied or Degraded Environment (C2D2E) is being integrated into the Fleet Training Continuum (FTC) as well as the Fleet Response Training Plan (FRTP). The Department has pursued a resourcing and acquisition strategy to equip the Fleet with protected communications to fight through adversary efforts to inhibit Fleet communications. The ability to operate in Anti-Access Area Denial (A2/AD) environments, where an adversary seeks to prevent U.S. operations in a specific geographic area using broad-based deterrence via electronic or other means, has been a pillar of the Navy Strategic Plan for the past several budget cycles. Our investments in the Consolidated Afloat Networks and Enterprise Services (CANES), Navy Multiband Terminal (NMT), Advanced Digital Networking System (ADNS) Increment III, Split IP satellite communications, Battle Force Tactical Network-Enhanced (BFTN(e)), Joint Aerial Layer Network (JALN), Advanced Tactical Data Links such as Link 16 concurrent multinetting and Tactical Targeting Network Technology (TTNT)--and among others--are enhancing our abilities to operate in these environments today. These programs are critical to our capability to operate in the contested battlespace of the future as adversary capabilities advance and proliferate. Mr. Langevin. Given the potential capabilities that unmanned undersea vehicles promise to provide, please give us a brief update on the Navy's plans for these systems. Secretary Stackley and Admiral Myers. Navy is producing a family of capable, effective, and interoperable unmanned systems that integrate with manned platforms to provide situational awareness and warfighting advantage to commanders at all levels. Unmanned Undersea Vehicles (UUVs) are a critical component of the future Navy Force and contribute to dominance in the undersea domain. Mission areas/vehicle systems include: Mine Warfare MK18 Mod2: Man-portable system based on a REMUS UUV which collects change detection data to operationally detect, classify, and identify bottomed, buried, and volume mines Surface Mine Countermeasure UUV/Knifefish: LCS-based vehicle provides previously unavailable capability employing Low Frequency Broadband (LFBB) synthetic aperture sonar for operations against bottomed and buried mines in high-clutter environments Oceanography Littoral Battlespace Sensing (LBS) Autonomous Undersea Vehicle (AUV): powered vehicles characterizing ocean, bathymetric, and hydrographic properties supporting undersea warfare and safe navigation LBS Gliders gather wave column and ocean data supporting high resolution predictive ocean and weather models Anti-Submarine Warfare (ASW) Persistent Littoral Undersea Surveillance (PLUS) System Effective, adaptive and persistent surveillance of multiple quiet targets over large littoral areas Composed of a networked system of UUVs consisting of multiple REMUSs with sensors, SeaGliders, and a Command and Control (C2) station. The C2 station can be located anywhere around the globe. PLUS in-water components can be launched and recovered from a variety of vessels Multi-mission Future Vehicles Large Displacement UUV: Reconfigurable for multiple missions via modular payloads Will leverage advanced energy sources for very long (>60 day) missions and robust autonomy Initial increment of capability (Increment 1) contributes to intelligence and anti-submarine warfare missions Analysis of Alternatives complete to bound capability selection Leveraging innovative prototypes for early fleet utility demos begin in FY16 Increment 1 to IOC in the 2020 timeframe. Inventory objective being determined