[House Hearing, 113 Congress] [From the U.S. Government Publishing Office] [H.A.S.C. No. 113-57] PLANNING FOR SEQUESTRATION IN FISCAL YEAR 2014 AND PERSPECTIVES OF THE MILITARY SERVICES ON THE STRATEGIC CHOICES AND MANAGEMENT REVIEW __________ COMMITTEE ON ARMED SERVICES HOUSE OF REPRESENTATIVES ONE HUNDRED THIRTEENTH CONGRESS FIRST SESSION __________ HEARING HELD SEPTEMBER 18, 2013 [GRAPHIC] [TIFF OMITTED] U.S. GOVERNMENT PRINTING OFFICE 82-963 WASHINGTON : 2014 ----------------------------------------------------------------------- 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 COMMITTEE ON ARMED SERVICES One Hundred Thirteenth Congress HOWARD P. ``BUCK'' McKEON, California, Chairman MAC THORNBERRY, Texas ADAM SMITH, Washington WALTER B. JONES, North Carolina LORETTA SANCHEZ, California J. RANDY FORBES, Virginia MIKE McINTYRE, North Carolina JEFF MILLER, Florida ROBERT A. BRADY, Pennsylvania JOE WILSON, South Carolina ROBERT E. ANDREWS, New Jersey FRANK A. LoBIONDO, New Jersey SUSAN A. DAVIS, California ROB BISHOP, Utah JAMES R. LANGEVIN, Rhode Island MICHAEL R. TURNER, Ohio RICK LARSEN, Washington JOHN KLINE, Minnesota JIM COOPER, Tennessee MIKE ROGERS, Alabama MADELEINE Z. BORDALLO, Guam TRENT FRANKS, Arizona JOE COURTNEY, Connecticut BILL SHUSTER, Pennsylvania DAVID LOEBSACK, Iowa K. MICHAEL CONAWAY, Texas NIKI TSONGAS, Massachusetts DOUG LAMBORN, Colorado JOHN GARAMENDI, California ROBERT J. WITTMAN, Virginia HENRY C. ``HANK'' JOHNSON, Jr., DUNCAN HUNTER, California Georgia JOHN FLEMING, Louisiana COLLEEN W. HANABUSA, Hawaii MIKE COFFMAN, Colorado JACKIE SPEIER, California E. SCOTT RIGELL, Virginia RON BARBER, Arizona CHRISTOPHER P. GIBSON, New York ANDRE CARSON, Indiana VICKY HARTZLER, Missouri CAROL SHEA-PORTER, New Hampshire JOSEPH J. HECK, Nevada DANIEL B. MAFFEI, New York JON RUNYAN, New Jersey DEREK KILMER, Washington AUSTIN SCOTT, Georgia JOAQUIN CASTRO, Texas STEVEN M. PALAZZO, Mississippi TAMMY DUCKWORTH, Illinois MARTHA ROBY, Alabama SCOTT H. PETERS, California MO BROOKS, Alabama WILLIAM L. ENYART, Illinois RICHARD B. NUGENT, Florida PETE P. GALLEGO, Texas KRISTI L. NOEM, South Dakota MARC A. VEASEY, Texas PAUL COOK, California JIM BRIDENSTINE, Oklahoma BRAD R. WENSTRUP, Ohio JACKIE WALORSKI, Indiana Robert L. Simmons II, Staff Director Jack Schuler, Professional Staff Member Spencer Johnson, Counsel Aaron Falk, Clerk C O N T E N T S ---------- CHRONOLOGICAL LIST OF HEARINGS 2013 Page Hearing: Wednesday, September 18, 2013, Planning for Sequestration in Fiscal Year 2014 and Perspectives of the Military Services on the Strategic Choices and Management Review.................... 1 Appendix: Wednesday, September 18, 2013.................................... 51 ---------- WEDNESDAY, SEPTEMBER 18, 2013 PLANNING FOR SEQUESTRATION IN FISCAL YEAR 2014 AND PERSPECTIVES OF THE MILITARY SERVICES ON THE STRATEGIC CHOICES AND MANAGEMENT REVIEW STATEMENTS PRESENTED BY MEMBERS OF CONGRESS McKeon, Hon. Howard P. ``Buck,'' a Representative from California, Chairman, Committee on Armed Services.............. 1 Smith, Hon. Adam, a Representative from Washington, Ranking Member, Committee on Armed Services............................ 3 WITNESSES Amos, Gen James F., USMC, Commandant of the Marine Corps, U.S. Marine Corps................................................... 10 Greenert, ADM Jonathan W., USN, Chief of Naval Operations, U.S. Navy........................................................... 6 Odierno, GEN Raymond T., USA, Chief of Staff, U.S. Army.......... 4 Welsh, Gen Mark A., III, USAF, Chief of Staff, U.S. Air Force.... 9 APPENDIX Prepared Statements: Amos, Gen James F............................................ 97 Greenert, ADM Jonathan W..................................... 69 McKeon, Hon. Howard P. ``Buck''.............................. 55 Odierno, GEN Raymond T....................................... 59 Smith, Hon. Adam............................................. 57 Welsh, Gen Mark A., III...................................... 84 Documents Submitted for the Record: [There were no Documents submitted.] Witness Responses to Questions Asked During the Hearing: [The information was not available at the time of printing.] Questions Submitted by Members Post Hearing: Mr. Barber................................................... 116 Ms. Bordallo................................................. 110 Ms. Duckworth................................................ 117 Mr. Lamborn.................................................. 116 Mr. Langevin................................................. 109 Mr. Runyan................................................... 117 Mr. Shuster.................................................. 116 PLANNING FOR SEQUESTRATION IN FISCAL YEAR 2014 AND PERSPECTIVES OF THE MILITARY SERVICES ON THE STRATEGIC CHOICES AND MANAGEMENT REVIEW ---------- House of Representatives, Committee on Armed Services, Washington, DC, Wednesday, September 18, 2013. The committee met, pursuant to call, at 10:05 a.m., in room 2118, Rayburn House Office Building, Hon. Howard P. ``Buck'' McKeon (chairman of the committee) presiding. OPENING STATEMENT OF HON. HOWARD P. ``BUCK'' MCKEON, A REPRESENTATIVE FROM CALIFORNIA, CHAIRMAN, COMMITTEE ON ARMED SERVICES The Chairman. The committee will come to order. Good morning, ladies and gentlemen. The House Armed Services Committee meets today to receive testimony on ``Planning for Sequestration in Fiscal Year 2014 and Perspectives of the Military Services on the Strategic Choices and Management Review.'' I would like to begin by expressing the committee's shock and sadness about this week's tragic shooting at the Washington Navy Yard. The victims and their families continue to be in our thoughts and prayers. At this time, I request the committee hold a moment of silence to honor those patriots who lost their lives. [Moment of silence observed.] The Chairman. Thank you. Admiral Greenert, I hope you will convey the committee's deepest sympathies for all those who were affected under your command. I spoke yesterday to the Secretary and asked him to express our thoughts also to every member of the Naval family that he comes in contact with. The Nation is grieving with you. Admiral Greenert. Thank you, Mr. Chairman, I appreciate it. The Chairman. As you are all aware, this committee has held numerous hearings on the impact of sequestration to our national security since 2011. While many of us have warned about the catastrophic impact these cuts have had to our military readiness and offered specific legislation to fix them, we have nonetheless encouraged the Department of Defense to fully plan for sequestration. Our attitude has been work for the best, but prepare for the worst. With that said, we welcome this review in the hopes that it would answer some of the many unanswered questions we have about how the Department will operate in a post-sequestration budget environment. While I appreciate the intent of this review as an assessment, frankly, I was disappointed and troubled by the lack of specificity it offered. The review contained little in the way of new information, leaving us only marginally more informed than we were 2 years ago. Last month, Secretary Hagel directed each service to develop two separate Future Years Defense Programs for fiscal year 2015, one at the President's budget level and an alternate accounting for full sequestration. While we all would agree that the higher budget level would be preferable, our focus today is on the alternate program under development. Earlier this month, I wrote to Secretary Hagel, urging him to authorize each of you to discuss the specific impacts you have identified in the preparation of your alternate program, including the reductions in size of the force, the modernization programs that will be canceled or curtailed, bases that will have to be closed, capabilities that no longer can be sustained, and training that will be limited. In your testimony today, I hope you will be frank about the deviations that will have to occur to the President's fiscal year 2015 budget request as a result of sequestration and how those decisions will impact the execution plans for fiscal year 2014. Gentlemen, for 2 years, you or your predecessors have come to this committee describing the consequences of sequestration in generalities and percentages. The Chairman of the Joint Chiefs told us you can't be cut one more dollar without changing the defense strategy, but when you're cut, administration downplays the impacts. Your credibility with this committee and with me is on the line this morning. I respect each of you deeply. But now is the time for you to act. Each of you carries the responsibility to give Congress your best and unbiased military advice. Each of you has a higher obligation to provide security for the American people. Today I expect to hear in very clear terms what elements of that security you will no longer be in a position to provide should sequestration continue. I expect to hear what risk you will have to assume in order to provide it. Last week we had a hearing with Secretary Kerry, Secretary Hagel and General Dempsey. I have been talking for the last couple of weeks against going into Syria or going anywhere else with this military until the sequestration problem is fixed, until we have back-loaded the money that has been taken from defense over and above the $487 billion, which all of you said you could live with but not a dollar more. But they each pointed out in their testimony that I was probably focused too much on just money; when things evolve, develop, occur about our national security, we would find the money. There is no question we will find the money. But it comes out of something else, something else that is very important. I would like to hear from you today what that would be. I look forward to hearing your testimony. I thank all of you for your witnesses for being here, for your service to this Nation. And now I recognize Ranking Member Smith for his statement. [The prepared statement of Mr. McKeon can be found in the Appendix on page 55.] STATEMENT OF HON. ADAM SMITH, A REPRESENTATIVE FROM WASHINGTON, RANKING MEMBER, COMMITTEE ON ARMED SERVICES Mr. Smith. Thank you, Mr. Chairman. First of all, I join the chairman expressing my condolences to Admiral Greenert and the Navy and to our entire military family for the tragic and horrific incident this week. Our thoughts and prayers are with you. Whatever we can do to help, please let us know. Admiral Greenert. Thank you, Mr. Smith. Mr. Smith. I thank the chairman for his leadership on that. And I also thank the chairman for the consistent hearings that we have had on sequestration. This is a significant challenge, and I don't think anybody in this Congress has been more out front than Chairman McKeon and early explaining to us what was coming and the challenges in trying to sound the alarms, so that hopefully we could do something about it. And I appreciate those hearings and those discussions. I would hope today that we would skip the normal partisan arguments about whose fault it is. We have, gosh, done that back and forth throughout so many times that I think just about everybody in this room could probably repeat what I would say and then what others would say, and so we know all that. We don't need to have that argument. We need to figure out where we are going to go and how are we going to deal with this. And it is a multifaceted problem. Certainly sequestration, which is set to go on for another 9 and a half years, and we have only been dealing with it now since March. Doing the math in my head, but I think that is roughly 6 months. Those 6 months have been bad, the choices that have had to be made. Members in their individual districts, if you have military bases there, you see the impact on the military; you certainly see the impact on the contractors. But that is 6 months, we have got 9 and a half more years to go of sequestration if we don't do something about it. In addition, here we go again in terms of another threat of government shutdown as we come up to September 30th. And it is to the point where there is virtually no hope of getting an appropriations bill. We are hoping that we can get a CR [continuing resolution]. And a CR is, in many ways, depending on who you are, as bad as sequestration in terms of how it impacts what money can be spent by the various departments within DOD [Department of Defense]. Then, of course, shortly thereafter, we have the debt ceiling and the debate over whether or not to raise that. I will just say that you don't have the debate with your credit card once you have incurred the charges; you pay the bill. Then you can have a discussion about whether or not you want to continue to rack up bills that are that high. But if you are the United States Government, I don't think you have the option of not paying your bills. But we will face that as well. On all of those fronts, we need to figure out what money we have. I would hope that Congress will continue to work to solve sequestration, to pass appropriations bills, to get past the debt ceiling. I know that is going to be a challenge, but it is not something that we can throw up our hands on and say, No, we are not going to get there. We have to keep trying to get there. And in the meantime, you gentlemen have to try and figure out whether or not we are going to get there or how short of there we are going to wind up and try to figure out how we are going to spend the money. And I take the chairman's point about, you know, we would like more specifics, but part of the challenge that I do want to remind the committee is you are not free at DOD to simply make the decisions that you want to make. You are, to some degree, reliant on us for a number of those decisions. Personnel costs are an enormous part of what we face. But if you want to do anything with retirement or anything with health care, you have to come through us. And about the only clear message that Congress has sent you is, Don't cut that. That has been a lot of different things, from the Guard to the retirement of certain ships, and on and on and on. But you are limited by what we allow you to do in many instances, and then you have to sort of backfill from there. So, as we have this discussion, I hope Members will approach it in that cooperative spirit, not just say What are you going to do but, more accurately, look at it and say, What can we realistically do together? Because I agree with the chairman, with the cuts we are facing, we are going to have a fundamental change in strategy. But to get to that change in strategy, it is the nature of our system, no one person is in charge of it. The executive branch and the legislative branch have to work together to come up with whatever that new system is. And right now, we are not. So I guess if I have one hope for this hearing, it is that we can sort of have that cooperative spirit. And if you gentleman tell us, hey, look, here is where we need to cut and if any member of this committee says, no, we can't do that, well, then, where do you want to cut? What advice do we have for you on what would be acceptable to us on how we restructure our military strategy, given the fiscal realities that we have all talked about. So I hope we can have that discussion. Again, I thank the chairman for his leadership on focusing on this issue. And I would say I look forward to your testimony and the questions, but honestly, I really don't, because this is not an easy subject, and there is no good way out of it. We will deal with it as best we can. Thank you. [The prepared statement of Mr. Smith can be found in the Appendix on page 57.] The Chairman. Thank you. Let's start with General Odierno and go right down the line please. General. STATEMENT OF GEN RAYMOND T. ODIERNO, USA, CHIEF OF STAFF, U.S. ARMY General Odierno. Chairman McKeon, Ranking Member Smith and other distinguished members of this committee, thank you for the opportunity to speak with you about sequestration in fiscal year 2014 and the strategic choices facing the Army. The United States has drawn down military forces at the close of every war, and today is no different. This time, however, we are drawing down our Army before a war is over and at a time when there is grave uncertainty in the international security environment that we witness every single day. Today, the total Army, the Active Army, the Army National Guard, and the U.S. Army Reserves remains heavily committed in operations overseas and at home. More than 70,000 soldiers are deployed as we sit here today, including 50,000 soldiers in Afghanistan and nearly 88,000 soldiers are forward-stationed across the globe. During my more than 37 years of service, the U.S. Army has deployed soldiers to fight in more than 10 conflicts, including the longest war in our Nation's history, in Afghanistan. No one can predict where the next contingency will arise that will require the employment of ground forces. We only know the lessons of the past. In every decade since World War II, the United States has deployed U.S. Army soldiers to defend our national security interests. There are some who have suggested there will be no land wars in the future. While I wish that were true, unfortunately, there is little to convince me that we will not ask our soldiers to deploy again in the future. We have also learned from previous drawdowns that the full burden of an unprepared and hollow force will fall directly on the shoulders of our men and women in uniform. We have experienced this too many times in our Nation's history to repeat this egregious error again. As Chief of Staff, it is my responsibility to provide my best military advice in order to ensure that we have an Army that will meet our national security needs in the complex, uncertain environment of the future. It is imperative that we reserve the full range of strategic options for the Commander in Chief, the Secretary of Defense and the Congress. Together, we must ensure our Army can deliver a trained and ready force that deters conflict but, when necessary, has the capability and capacity to execute a sustained, successful major combat operation. The Budget Control Act [BCA] with sequestration simply does not allow us to do this. If Congress does not act to mitigate the magnitude and speed of the reductions under the BCA with sequestration, the Army will not be able to fully execute the requirements of the 2012 Defense Strategic Guidance. By the end of FY14 [fiscal year 2014], we will have significantly degraded readiness in which 85 percent of our Active and Reserve brigade combat teams will not be prepared for contingency requirements. From fiscal year 2014 to fiscal year 2017, as we continue to draw down and restructure the Army into a smaller force, the Army will continue to have degraded readiness and extensive modernization program shortfalls. We will be required to end, restructure or delay over 100 acquisition programs, putting at risk the Ground Combat Vehicle Program, the Armed Aerial Scout, the production and modernization of our other aviation programs, system upgrades for unmanned aerial vehicles and the modernization of our air defense command and control systems, just to name a few. Only in fiscal year 2018 to fiscal year 2023 will we begin to rebalance readiness and modernization. But this will come at the expense of significant reductions in end strength and force structure. The Army will be faced to take further end strength cuts from a wartime high of 570,000 in the Active Army, 358,000 in the Army National Guard, and 205,000 in the U.S. Army Reserves to no more than 420,000 in the Active Army, 315,000 in the Army National Guard and 185,000 in the U.S. Army Reserves. This will represent a total Army end strength reduction of more than 18 percent over 7 years, a 26 percent reduction in the Army, in the Active Army, a 12 percent reduction in the Army National Guard, and a 9 percent reduction in the U.S. Army Reserves. Additionally, this will result in a 45 percent reduction in Active Army brigade combat teams. In my view, these reductions will put at substantial risk our ability to conduct even one sustained major combat operation. Ultimately, the size of the Army will be determined by the guidance and funding provided by Congress. It is imperative that Congress not implement the tool of sequestration. I do not consider myself an alarmist. I consider myself a realist. Today's international environment and its emerging threats require a joint force with a ground component that has the capability and the capacity to deter and compel our adversaries who threaten our national security interests. The Budget Control Act and sequestration severely threaten our ability to do this. I want to thank you for the opportunity to speak with you today, and I look forward to your questions to expand on the comments that I made. Thank you very much, Chairman. [The prepared statement of General Odierno can be found in the Appendix on page 59.] The Chairman. Thank you. Admiral. STATEMENT OF ADM JONATHAN W. GREENERT, USN, CHIEF OF NAVAL OPERATIONS, U.S. NAVY Admiral Greenert. Chairman McKeon, Ranking Member Smith, and distinguished members of the committee, thank you for the opportunity to testify about the Navy situation in fiscal year 2014 and our perspective on the recent Strategic Choices and Management Review. But Chairman, before I address that and this statement of mine, please indulge me. I would like to extend my deep condolences to the families, the friends, and the coworkers of the victims of Monday's events at the Washington Navy Yard. Chairman, we lost shipmates on Monday. The Secretary of the Navy and I and our leadership have our full attention on ensuring that the victims' families and their coworkers are provided with the care and the support that they need and that they deserve during this difficult time. We are grateful for the teamwork and the heroism which the first responders showed when they reacted, and we are working closely with the FBI [Federal Bureau of Investigation] and other law enforcement authorities to conclude this investigation. Now, as directed yesterday by the Secretary of Defense, the Secretary of the Navy and me, we are reviewing the security procedures and the access control for all our Navy installations around the world. I expect to have a rapid review completed within 2 weeks, which, of course, we will share with you. Nothing matters more to us than the safety and security of our people. I know you are aware of the DOD, the Department of Defense IG [Inspector General] report released yesterday that cites cost-control measures as a potential cause for vulnerabilities in contractor access procedures for our bases. Chairman, I have read the report. We are reviewing it right now. And to the degree we have vulnerabilities, we will correct them, and we will do it expeditiously. We are grateful to the DOD IG for working with us on this, and I can assure you, however, that the cost-control measures that were mentioned in this report have nothing to do with budget shortfalls or sequestration itself. We don't cut budgetary corners for security, Chairman. The two are unrelated. Now if something needs added or changed, we will fix it right away. Further, we will continue to work closely with the Department of Defense IG staff, and we will reconcile all these recommendations in this report I just held in my hand. Again, nothing is more important to me, Chairman. Now I would like to address with the time remaining two more points, our budget situation and our plan in fiscal year 2014 and the long-term impacts of sequestration. Mr. Chairman, presence remains the mandate for the Navy. We have to operate forward where it matters, and we got to be ready when it matters. Recent events have clearly demonstrated our ability to do that. Quickly, we positioned ourselves, and we offered options to the President in this past month. This ability also reassures our allies, and it ensures that U.S. interests around the world are properly served. Now, as we prepare for 2014, sequestration is going to further reduce our readiness. The impacts of sequestration will be realized in two main categories, operations and maintenance, and our investments. There are several operational impacts, but the most concerning to me is that reductions in operation and maintenance accounts are going to result in having only one nondeployed carrier strike group and one amphibious ready group trained and ready for surge operations. We will be forced to cancel maintenance. This will inevitably lead to reduced life for our ships and for our aircraft; assure we will only conduct safety-essential renovation of facilities; and it will further increase the backlog in this area. We will probably be compelled to keep the hiring freeze in place for most of our civilian positions, and that will, of course, effect the spectrum and the balance of our civilian force. We will not be able to use prior year funds to mitigate sequestration cuts in our investment accounts like we could in fiscal year 2013. So, without congressional action, we will lose at least a Virginia-class submarine, a littoral combat ship and a float-forward staging base. And we will be forced to delay the delivery of the next aircraft carrier, the Ford, and we will delay the mid-life overhaul of the George Washington aircraft carrier. Also, we will cancel procurement of 11 tactical aircraft. The key to a balanced portfolio, Chairman, is a spending bill and the ability to transfer money. We need to transfer I think about $1 billion into the operations and maintenance account and about $1 billion into our procurement accounts post sequestration, mostly so we can get shipbuilding back on track and to meet our essential needs. We will need to do this by January. Other program deliveries of programs and weapons systems may be delayed regardless, depending on the authority that we are granted to reapportion funds between accounts. Now when it comes to the Strategic Choices and Management Review, it is complete. And the Navy's focus now is on crafting a balanced portfolio of programs within the fiscal guidance that we were provided. More details of what we are doing there are outlined in my written statement, which I request be entered for the record. In summary, we will maintain a credible and modern sea- based strategic deterrence. That is our number one program. We will maximize forward presence, as I passed to you before. That is what we need to do. And we will use ready deployed forces to do that. And we will continue investing in asymmetric capabilities while, with this committee's help, we will do our best to sustain a relevant industrial base. However, in a given fiscal scenario, within the Budget Control Act cost caps, there are numerous missions that are in the Defense Strategic Guidance passed that we signed up to a few years ago we can't perform. These are laid out in great detail in my written statement, and I will save you going through each and every one of these in my oral statement here. But applying one fiscal and programmatic scenario, we would result in a fleet inventory of about 255 ships in 2020. That is our benchmark year for the Defense Strategic Guidance. That is about 30 less than today. It is about 40 less than was in our Pres bud [President's budget] submission, and it is 51 less than our force structure assessment of 306 ships. So, Mr. Chairman, I understand the pressing need for the Nation to get its fiscal house in order. And I am on board with that, but I think we need to do it--I think it is imperative that we do it in a thoughtful manner to ensure that we sustain appropriate warfighting capability, that we have proper forward presence and readiness. Those are the attributes we depend on from our Navy--from your Navy. I look forward to working with the Congress to find solutions that will ensure our Navy retains the ability to organize, to train, and to equip the great sailors in defense of our Nation who operate in concert with the Marine Corps. My thanks to you and this committee for the support and care you have shown our Navy during this difficult time and in many other times. Clearly, you continue to have our best interests at heart. Thank you. [The prepared statement of Admiral Greenert can be found in the Appendix on page 69.] The Chairman. Thank you. General. STATEMENT OF GEN MARK A. WELSH III, USAF, CHIEF OF STAFF, U.S. AIR FORCE General Welsh. Thank you, Mr. Chairman, Ranking Member Smith, and distinguished members of the committee. It is always an honor to appear before you. I thank you for your continued support of airmen and their families. The results of the SCMR [Strategic Choices and Management Review] were sobering, I think, to all of us, and if sequestration remains in place for fiscal year 2014, the Air Force will be forced to cut flying hours by up to 15 percent. And within 3 to 4 months, many of our flying units will not be able to maintain mission readiness; will cancel or significantly curtail major exercises again; and will reduce our initial pilot production targets, which we were able to avoid in fiscal year 2013. Over the long term, of course, it will significantly impact our force structure, readiness and modernization. For force structure, over the next 5 years, we could be forced to cut up to 25,000 total force airmen, which is about 4 percent of our people. We also will probably have to cut up to 550 aircraft, about 9 percent of our inventory. And to achieve the necessary savings in aircraft force structure, we will be forced to divest entire fleets of aircraft. We can't do it by cutting a few aircraft from each fleet. As we look at which force structure we need to maintain, we will prioritize global, long-range capabilities and multirole platforms required to operate in a highly contested environment. Other platforms will be at risk. We plan to protect readiness to the maximum extent possible. We also plan to prioritize full spectrum training because if we are not ready for all possible scenarios, we will be forced to accept what I believe is unnecessary risk, which means we may not get there in time; it may take the joint team longer to win; and our people will be placed at greater risk. If sequestration continues, our modernization recapitalization forecasts are bleak. It will impact every one of our programs. These disruptions will, over time, cost more money to rectify contract breaches, raise unit costs and delay delivery of critical equipment. We are looking at cutting as many as 50 percent of our modernization programs if the ALTPOM [Alternative Program Objectives Memorandum] is actually the way we go. We will favor recapitalization over modernization whenever that decision is required. That is why our top three acquisition priorities will remain the KC-46, F-35 and the Long Range Strike Bomber. The United States Air Force is the best in the world and is a vital piece of the world's best military team. That won't change even if sequester persists. And when called, we will answer, and we will win, but the impacts are going to be significant, and the risk occurs from readiness in the ways that impacts our airmen. Thank you for your efforts to pass a funding bill that gives us some stability and predictability over time, which is the thing we need most. I look forward to your specific questions. [The prepared statement of General Welsh can be found in the Appendix on page 84.] The Chairman. Thank you. General. STATEMENT OF GEN JAMES F. AMOS, USMC, COMMANDANT OF THE MARINE CORPS, U.S. MARINE CORPS General Amos. Chairman McKeon, Ranking Member Smith, committee members, thank you again for the opportunity to speak to you regarding sequestration and the Strategic Choices Management Review. Sequestration by its scale and inflexibility will significantly stress our force, degrade readiness and create a significant risk to our national security, all at a time of strategic rebalancing, all done on a world stage that is chaotic and volatile. I urge this committee and the Members of Congress to consider the full range of risks across the joint force, not just for my service but for all of us, and ask for your continued assistance in mitigating the effects of sequestration. Our Nation expects a force capable of responding to a crisis anywhere around the globe at a moment's notice. Readiness is the critical measure of our ability to be able to do that. This is our Nation's strategic hedge against uncertainty. In times of crisis, forward-deployed naval forces provide decisionmakers with immediate options that can control escalation, buy time, create decision space for our national leaders and enable joint follow-on forces. The Marine Corps' high readiness levels mitigate the risks inherent in an uncertain world by responding to a wide range of capabilities across real-world scenarios. Your Marines remain a constant, effective hedge against the unexpected and provide the American people a national insurance policy. Our world is a dangerous place, and America must always be ready to meet emerging crises that threaten our national security interests. As a member of the Joint Chiefs, I am particularly concerned about the long-lasting and devastating impacts of sequestration. The very nature of sequestration erodes both Marine Corps readiness and that of the joint force. Scheduled tiered readiness is not an option for the United States Marine Corps. We must be prepared when a crisis erupts. Over the last year, we have maintained our equipment readiness to the maximum extent possible. Maintenance costs are increasing, and our Marines are working longer hours to keep aging equipment running. We have maintained the near-term readiness of our forward-deployed forces and our next-to-deploy forces at the expense of infrastructure and sustainment and modernization programs. This can't continue over the long haul. We are in a Catch- 22. If we are to succeed on future battlefields, we must modernize, and we must care for our infrastructure and our training facilities. Sequestration has already started to degrade our infrastructure. We have been forced to reprioritize infrastructure maintenance and recapitalization efforts on our facilities to be able to sustain a ready force. Soon, there will be little left within these accounts to offset our readiness requirements. Over my 43-year career as a United States Marine, I have seen the effects of strategic miscalculations resulting from declining resources and budget-driven strategies that resulted in wholesale force cuts. We only need to look back to the 1990s, when our Nation executed the first drawdown of the All- Volunteer Force. Following the Gulf War, we saw firsthand how deep cuts in our military produced unintended consequences and increased risk to our Nation. During the mid to late 1990s, we were challenged by a host of limited conflicts in Liberia, Somalia, Kosovo, along with the bombing of our East African embassies. By the end of the decade, the U.S. military had reduced its Active Duty force by 25 percent. Operations and maintenance funds were slashed. Peacetime deployment tempo increased, wearing down the force and wearing down our families. For this very reason, Congress began to require the services to track and to report our deployment tempo. The force was overly stressed, and we considered this to be peacetime. We see these same problems today. In order to meet the requirements of the Defense Strategic Guidance, I need a Marine Corps of 186,800 Active Duty Marines. A force of 186.8 allows us to meet our steady-state requirements as well as be able to go to war. It preserves a 1:3 dwell for our Marines. Our share of the 2011 Budget Control Act's $487 billion reduction cut our end strength to 182,000. Based on sequestration, I simply cannot afford a force that size. Sequestration will force us to plow through scarce resources, funding our old equipment and weapons systems in an attempt to keep them alive and functional. We will be forced to reduce or cancel modernization programs and infrastructure investments in order to maintain readiness for those deployed and next-to-deploy units. Money that should be available for procuring new equipment will be rerouted into maintenance and spare accounts for our legacy equipment. This includes our 42-year-old Nixon-era amphibious assault vehicle. In February, we initiated a parallel study to the Department of Defense's Strategic Choices Management Review. Our internal review redesigned the Marine Corps to a force that I could simply afford under sequestration. This was not a strategy-driven effort. This was a budget-driven effort. Our exhaustive research backed by independent analysis determined that a force of 174,000 Marines is the smallest force that can meet mission requirements. This is a force with levels of risk that are minimally acceptable. For instance, assuming that global requirements for Marine forces remain the same over the foreseeable future, a force of 174,000 will drive the Marine Corps to a 1:2 dwell for virtually all Marine units; gone 6 months, home 12 months, gone 6 months. Furthermore, the 174K force accepts risk when our Nation commits itself to its next major theater war. In plain terms, we will have 11 fewer combat arms battalions, 14 fewer aircraft squadrons to swiftly defeat our adversary. This is a single major contingency operation force that would deploy and fight until the war's end. In other words, we would come home when the war was over. Marines who joined the corps during that period would likely go from drill field to battlefield. Across the joint force, America will begin to see shortfalls in the military's ability to accomplish its national strategy. Today we are seeing only the tip of the iceberg. Tomorrow's Marines will face violent extremism, battles for influence and natural disasters. Developing states and non-state actors will require new technology and advanced conventional weapons that will challenge our ability to project power and gain access. In order to be effective in this new environment, we must maintain our forward influence, our strategic mobility, power projection and rapid response capabilities that Marines are known for today. We will balance an increasing focus on the Asia-Pacific region with a sustainable emphasis in the Middle East and Africa littorals. I will continue to work with the members of this committee to fix the problems we are faced with today. I thank you for this opportunity to appear before you, and I am prepared to take your questions. [The prepared statement of General Amos can be found in the Appendix on page 97.] The Chairman. Thank you very much again for your service and for your testimonies. I'm going to yield my time this morning to the gentlelady from South Dakota, Kristi Noem. Mrs. Noem. Thank you, Mr. Chairman, for yielding, and I want to thank all of our service chiefs for being here today and for your service to this great country. Admiral, my thoughts and prayers are with you and the Navy during this difficult time. We appreciate your service. We are again confronting the difficult choices and tradeoffs that we have in the face of sequestration. Like you, I have heard from service members about their concerns with sequestration. I have found that their personal impact is secondary to their concerns about continuing to defend this great country. As you mentioned, General Welsh, we have had our B-1 bomber squadrons grounded, which is eroding our readiness and costing more in the long run. Our National Guard military technicians were furloughed. While many of the technicians that I talked with were extremely concerned about the inconvenience for them and how hard it was on their personal budgets, they also mentioned that if we continue to break faith with them in the coming year and beyond, they have told me that they will find the need to start looking for another line of work. The thought of losing such highly trained individuals, service men and women, is very troubling to me and I am sure that it is with you as well. Clearly, the options that are presented in the SCMR are not pleasant ones. I hope we can rally around what is our most important duty, and that is to provide for the common defense and to protect our national security. General Welsh, my first question will go to you. As you know, Ellsworth Air Force Base is located in South Dakota. It is home to part of the B-1 bomber fleet. The SCMR contemplated all of the B-1s being retired. Given the B-1's strong track record and our operations in Afghanistan and elsewhere, I believe it would be very shortsighted. Are there foreseeable missions that would go unsupported if this aircraft is, in fact, retired? And how would you mitigate that loss of the aircraft group in this overall strategy? General Welsh. Yes, ma'am. We have a problem with mitigating losses in the bomber fleet, as you know, especially over time. Were we to make a major reduction to the bomber fleet, we would have extreme difficulty meeting some of the guidance in the Defense Strategic Guidance, and as a result, I don't think there is major discussions inside the Air Force on that being a fleet that we would eliminate. Mrs. Noem. In your testimony, you talked about, in fact you quoted that we cannot continue to bandage, in your written testimony, old airplanes as potential adversaries roll new ones off the assembly line. Then you go on to mention that the B-52 is as old as you are, which I won't speculate on that today, but why then would you consider retiring the B-1 bombers that are about half the age of the B-52s? General Welsh. Ma'am, right now, we cannot retire a major portion of the bomber fleet at all and meet the Defense Strategic Guidance. I think when we look at what we can do over time, we have to look at every platform, and we are looking at every platform, every upgraded program to those platforms and the impact of divesting an entire fleet. And what we will need to do is balance the requirement to conduct an operation globally, which is something the entire bomber fleet is engaged in, the requirement to conduct that operation over time if, God forbid, we were in a major conflict requiring that fleet to be operated that way versus the short-term risk to readiness and modernization the sequestration has presented us with. Those are the only two places we can go to to have an impact on this right now and to take money to pay for the bill over the first couple of years. So that is why we are having the discussion, not because we think strategically it is a good idea. Mrs. Noem. I was glad to see within your testimony that you talked about the long-range bombers being a priority and something that you have identified as well, although I did have concerns with some of the ideas that were laid out within the SCMR as it was portrayed to us. So I will open up the questioning to anyone else or who whoever would wish to answer this question. We understand that prior year funds can be used to reduce the impact of sequestration on current year accounts. However, many available prior year funds have already been utilized to buy down fiscal year 2013 sequestration. To what magnitude does the lack of available prior year funds impact fiscal year 2014? I will open it up to General Amos, first, if he would like to speculate on that. General Amos. Congresswoman, we have been successful in doing that in the past. And as you implied in your statement, as we move into fully sequester budget, that flexibility is not there. As we move into procurement, and even in some cases, military construction accounts, there are opportunities to be able to realign moneys and be able to reach and move moneys across what might be a boundary, a rule boundary. All I would like to see in the future, especially as we go into a sequester budget, would be the ability to be able to take a look at how we are doing in execution. And as things, it becomes apparent that you can't do things, I would like the opportunity and the flexibility to be able to move that. Mrs. Noem. And that flexibility does erode as we get deeper and deeper into sequestration, is that correct? General Amos. Yes. Yes. Mrs. Noem. Thank you. With that, Mr. Chairman, I yield back. The Chairman. Thank you. Ranking Member Smith. Mr. Smith. Thank you, Mr. Chairman, just one question, two parts. I know we are supposed to be talking about sequestration, and I know we will continue to do that. But could you give us just a little bit of a flavor of the impact of having to live with a CR, assuming we can get one before the end of the year, and then also the impact of the threat of what if we don't raise the debt ceiling? How do those two things impact all of what we are talking about here today? And I will throw that open, whoever wants to dive in. Admiral Greenert. Well, as we talked in this room before, Mr. Smith, the issue with the continuing resolution is you can't get any new starts going. And so, every year, we would like to do new projects, from repair barracks to runways to get shipbuilding started to even overhaul an aircraft carrier. That is a new start. Under a continuing resolution, you can't do any of that. You are also limited to the prior year funding. And when you are limited to a prior year funding level, well, when it comes to maintenance and operations, they are not consistent. And so, to the extent they are greater, we are out of luck. We just don't have that money because we are spending that, the previous year's level. When it comes to personnel, in order to shape our force and do the things we need to do for our people, those are new starts, too. So that can be anywhere from bonuses to changing re-enlistment factors, if you will; somebody gets more than less. And it is about shaping the force. And you lose a lot of flexibility and the ability to operate the force. Mr. Smith. Thank you. General. General Odierno. Congressman, as you know, it depends on how long the CR is. Then all of a sudden you have a CR plus sequestration, which will pile on to what occurred in 2013. And we have already pushed $400 million worth of problems from 2013 to 2014 in our depots; $100 million of problems in our maintenance accounts to 2014. We pushed over $100 million of training readiness to 2014. And now you get a continuing resolution, and now you get continued sequestration, and so it starts to build and build and build. And it gets to a point, as I mentioned, by the end of fiscal year 2014, if that occurs, 85 percent of our Army brigade combat teams are now unready because of this continued pressure on our budget. And the reason that is the case for the Army is I can't take the end strength down fast enough. And the way the budget has been written, any end strength above 490 is in OCO [Overseas Contingency Operations], and so I gain nothing in our base budget, even though we continue to reduce the size of our Army over the next several years. So, for us, it is a huge problem, and that is one of the real issues that we face. And we are planning for that because, frankly, that is the worst-case scenario, and so that is what we are planning for this year. So I am looking for, right now, a significant degradation. My biggest fear--I have been asked what keeps me up at night--is I have to, I am asked to deploy soldiers on some unknown contingency, and they are not ready. And so we are going to have to severely tier our readiness to say I am going to have--we are going to now--maybe I can get seven brigades trained, so if we have to go, at least I have seven brigades that are highly trained, ready to go. And if we have to go more than that, we now have a significant problem. So that is the impact on us. General Welsh. If I could add one of the things that affects all of us is the longer the CR goes, the greater the impact. And so the length of that period makes a major difference. The prior year unobligated funds question that was asked a moment ago is significant. We paid a full 25 percent of our fiscal year 2013 sequestration bill with prior year unobligated funds, which are now not available. The other thing that the CR does to us is we have all deferred infrastructure maintenance sustainment, and we are down to only doing critical infrastructure sustainment. The CR keeps us from doing that as well, which adds in to greater costs in the future and adds to the buy wave that we experienced last year. General Amos. Congressman, one last, I am in sync with all my colleagues here. Just a point of reference, from just last year's CR effort, as we finally got that fixed in the H.R. 933, because there are no new starts, last year I had $850 million worth of military construction that was in jeopardy because I couldn't execute it. H.R. 933 helped me. This year, because of the way the budget is written under sequestration, I dropped my military construction by 40 percent. So if we get CR and I can't execute those military construction contracts, I have gone from 60 percent of the requirement to, perhaps, nothing. And in many cases, I can't roll that in--in fact, I can't. We will just have to restart it again the next year, and it will pile on those requirements. Mr. Smith. Thank you, gentlemen. I yield back. The Chairman. Thank you. Mr. Jones. Mr. Jones. Thank you, Mr. Chairman. General Amos, the Marine Corps has recently issued correspondence to the families of Marines who died in the MV-22 crash in Marana, Arizona, in April of 2000. The correspondence seems to acknowledge for the first time that problems with the MV-22 program may have contributed to this tragic mishap. Can you please comment on that statement by me? General Amos. Congressman Jones, you are absolutely correct. The letter was sent to the families of both those great pioneers that lost their lives in that airplane in Marana. It acknowledged a series, a complex series of programmatic program execution, monetary, unsubstantial monetary support in--there is just a series of things that were all happening during the V-22 program during the summer of 2000, the springtime and summer of 2000. That is what the letter acknowledged. There was also challenges aerodynamically with the airplane because the test program had been cut back in some areas to the point where it was on bare minimum. Those pilots were the pilots who were flying that airplane using the data that they had at the time. So it is an acknowledgment of that. Congressman, as I have said to you in private, I am going back through all of that right now. I mean, it was a complicated period of time; and interesting, because we are talking about budgets and we are talking sequestration and reducing costs, that program was about as anemic as any program that I have ever seen for a major acquisition program. And that is part of how we ended up getting where we were, not only during the March timeframe but as we went through the summer and the fall. So, Congressman, I am going back in there again and not only the aerodynamics but the programmatics and the reality of what was taking place with that period of time, and I intend to come back to you in this House with my final resolution on that. Mr. Jones. Mr. Chairman, I would like to thank the Commandant. One of the wives lives in my district, Connie Gruber, and her husband was the co-pilot. The co-pilot's wife, Connie Gruber lives in my district. The pilot's wife lives in Steny Hoyer's district. And I want to thank the Commandant publicly for making this statement and taking this position because I have always believed that the dead cannot speak for themselves. And for the Commandant to take this position, I want to thank you on behalf of the two wives, the 17 Marine families who were sitting in the back of that plane who were burned to death. And sir, this shows that you are a man of integrity, who seeks the honesty into what happened, and I want to say that I have great respect for you for making the statement that you just made to the committee. Thank you so much, sir. General Amos. Thank you, Congressman. The Chairman. Thank you. Mrs. Davis. Mrs. Davis. Thank you, Mr. Chairman. I certainly want to thank you all for being here, and I especially want to thank you for continuing to sound the alarm. Because I think that we hear what you are saying, we know that readiness is at risk, and yet I do sincerely worry that we are not acting on that, on what we are hearing, and this is really getting serious. I wonder if you could talk about some of the decisionmaking that goes on when you are dealing with capacity and capability at the same time. And I know that, Admiral Greenert, you particularly mentioned the need for cyber operators, and yet we also have fleet maintenance. We also have a whole number of other areas that you have to focus on. So I think just trying to, the short term and the long term, what else do we need to know to be able to act on what you are telling us? Admiral Greenert. Well, you have to prioritize, Congresswoman. I mean, that is obvious. So, as I said, we have, my job is to provide strategic nuclear deterrent, safe and credible, number one. Right behind that is cyber, and we have talked in this room quite a bit about the importance. We are staying the course on our cyber warrior plan that we briefed in here. Through any budget scenario that I see out there, we have got to maintain that. That is critical. Number three, as I have mentioned before, I have got to be where it matters when it matters, and we do everything we can using whatever innovative means we can to be forward, but we have got to be ready. So whatever we have forward has to be ready. Then, you say, what about the rest of it? The rest of it becomes that surge issue I talked about. What do we have to surge? And it is getting less and less. And I am very concerned about it. Today, one carrier strike group, one amphibious ready group is ready to surge with their organized, trained, and equipped. Normally, ma'am, we have three. So you can see that. In the future, I am not sure. I have to look at those scenarios, and that is an important attribute. The undersea domain is critically important. We have to own that. We do today. We have to do that in the future. So it is about prioritizing and then deciding within, you know, you have to have a certain capacity to have a capability, but then once you have the capability, how much of it can you, can we afford to have, and that is the conundrum that we are dealing with today. Mrs. Davis. General Odierno. General Odierno. So part of it is the process of the budget that you have to put the puzzle together properly. And so, for the Army, as we face just the reductions from the $487 billion, which, by the way, we are still implementing, as we implement that, we have to, in order to get our end strength down to the levels of 490 from 570, which is just the first increment, based on potential decisions that we have in the budget, we have to take risk and readiness in modernization because, until we get at the 490, we don't gain any savings from that in the budget process. So, as we get continued cuts, all of our cuts for the next 3 years almost all come out of readiness and modernization, until I can reduce end strength further. And then what happens is we are going to get our end strength reduced to a level that I believe makes our Army too small, in order to get it in line with the readiness and modernization efforts that we have. The other thing is, there are fixed costs to operating a service that we tend to overlook. Just the fact of how we recruit, how we initially train, how we educate. There is a huge fixed cost within our service that we have to fund first because if we don't do that, we fundamentally lose our ability to develop an Army. So then you have got to take what is left. And all the cuts have to come out of that area. And that is the problems we are facing as we move forward. Mrs. Davis. And General Amos, I know that 174,000 is a figure that sounds like, not a figure that people feel good about, but I am wondering, how much lower do you think that can go? General Amos. Congresswoman, at the end of the day, we will go as low as Congress is willing to, I guess, pay for. The 174 force is the floor, as far as I am concerned, in several ways. First of all, it does meet a major theater war. History has proven that over time, we will probably commit our Nation again, even though it is hard to imagine right now, but we will probably do that again. And when that happens, that force is the minimum size force to go off to war. And as I said in my opening statement, they will go to war, and they will come home when it is over. But even greater than that, the day-to-day steady-state operations, the requirements around the world require a force that is no lower than 174,000. That is the stuff that is happening in the--off the African littorals right now. That is what is happening aboard our ships with the Navy. That is what is happening in Afghanistan. That is what was happening in the Far East and the Pacific down in Australia. That is the steady-state requirements. Inside that 174 force, which I think is an alarm bell, is that is designed to be a 1:2 dwell force. I referred to that in my opening statement. That is a critical point because, as the assistant commandant, I testified we want to build a force post-Afghanistan that is at least 1:3 so that you give the force the opportunity to come back and reset; you give families the opportunity to come back and reset with their loved ones. This force is 1:2. That is unprecedented, unless in a time of peace. The Chairman. Thank you. Mr. Forbes. Mr. Forbes. Gentlemen, thank you for being here. And not just to flatter you, but any one of the four of you have more experience defending this country than any other member sitting on this committee. And if we took the four of you collectively, you have more knowledge right now of what we need to defend the country and the resources that we have than this entire committee together. Most of us on the committee, some of us will disagree on how we got to sequestration. We disagree on a way forward, but we are at least unified in the fact that we need to do away with sequestration. Unfortunately, that is not true for all the leadership in Congress. It is not true for every Member outside of this committee. And part of that reason is because our message has not always been spoken with clarity. When we had these cuts that we can argue whether it is $487 or $778 billion, which our staff believes it to be, we weren't real clear from this committee; we weren't real clear from the Pentagon. But we are where we are today, and that is why I want to ask you this question so we can speak with clarity to those who may think sequestration is good to go forward. The Defense Strategic Guidance, General, that you talked about in 2012, before that, we had a win-win situation as our defense strategy. And because of cuts that we made, we basically felt we needed to go to the new Defense Strategic Guidance, which was really somewhat of a minimalist approach where we said we would win one encounter and hold another one. My question to each of the four of you in as close to a yes or no answer, not to box you in, but just so we can be clear in communicating this, if sequestration goes forward, can you meet the requirements necessary that you have to meet to comply with that minimal Defense Strategic Guidance of 2012? And General, if you would give us your assessment first. General Odierno. Congressman, I mentioned it in my opening statement--I will just repeat it--is that I believe at full sequestration, we cannot meet the Defense Strategic Guidance. In fact, it is my opinion that we would struggle to even meet one major contingency operation. It depends on assumptions, and I believe some of the assumptions that were made are not good assumptions. They are very unrealistic and very positive assumptions. And for that, they would all have to come true for us to even come close to being able to meet that. Mr. Forbes. Thank you, General. Admiral, I know you have looked at this. You have agonized over it. It has kept you up at night. Can the Navy meet the requirements necessary if sequestration continues? Admiral Greenert. No, sir. We cannot. And, in fact, I am concerned in sequestration in 2014 about that. I am very concerned, particularly about our strategic nuclear, our SSBN(X) [ballistic missile submarine] replacement. If that program is sequestered, it falls behind. It cannot fall behind. And so I am concerned about 2014 as well. Mr. Forbes. And General, same thing with the Air Force. Can you meet the requirements if we continue sequestration the way it is going forward? General Welsh. No, Congressman, we cannot. I believe any executable strategy will always be resource-constrained or at least informed. If the resources change significantly, you have to relook at strategy. Mr. Forbes. And General Amos, what about the Marines? Can we meet the requirements necessary, the minimal requirements for the Defense Strategic Guidance of 2012 if sequestration continues forward? General Amos. Congressman, we can't--I came from a one MCO [major contingency operation] perspective, but if it is a one MCO and do something else somewhere else, I cannot. I simply don't have the depth on the bench. We are going to continue with the rebalancing in the Pacific. That comes at the price of readiness back home. So, over time, our readiness back home will become unacceptable. So the answer in both cases is no. Mr. Forbes. Yeah. Mr. Chairman, I would just state that if nothing else, that message ought to be communicated and we ought to have a commitment, as I know we all do in this committee, to make sure that we are doing whatever we can in Congress to get this foolish thing stopped so we can meet those requirements. And with that, I yield back. The Chairman. You know, I think some of us last week met with Mr. Luntz, who had just gone into the field with a poll asking the American people if they felt like they would be more safe or less safe in the next 10 years, and they said 83 percent felt like they would be less safe 10 years from now than they are now, and that was before they heard this testimony. You can see, if the American people are tuned in, if they are listening to this, that probably will go up to 95 to 100 percent, and with great reason. Mr. Cooper. Mr. Cooper. Thank you, Mr. Chairman. I admire you gentlemen for your service to the Nation, and I admire your work, particularly since you are having to operate in an irrational budget environment. And almost none of your predecessors have ever had to do that. There were drawdowns, there were cutbacks, but seldom has it been this completely arbitrary as sequestration is forcing you to operate. I really think that you gentlemen should be questioning us, because we are the parties at fault here. Congress is failing to adequately fund our military in a responsible and reliable fashion, and that is a significant charge. Past generations have done a better job of funding our military needs. We are failing, and this Congress and both parties and both Houses of Congress need to get their acts together so we do a better job and do a better job quickly. The challenge is great when we have a House of Representatives that refuses to even open discussions with the Senate on a budget for America. In our degraded media environment, many folks back home are unaware of this. They are mad at Congress in general and they don't understand that one House of Congress is unwilling to talk to the other House of Congress about having a budget for America. Somehow we have gotten into our heads, especially the younger Members, that it is okay for the House to have a budget and for the Senate a separate budget and never the two shall meet. Well, we are supposed to have a budget for America. This committee in markup, it was my amendment, voted overwhelmingly by voice to give the Pentagon flexibility so that it could address its most pressing defense needs, but when a recorded vote was asked for people put on their partisan jerseys and the same vote failed. This is the largest committee in the House of Representatives. Presumably we have some influence, if only by Members, on our colleagues, and yet we are somehow unable to behave responsibly ourselves, much less encourage our colleagues in the House to behave responsibly. We have the end of the fiscal year coming up. Many of the pundits are predicting that there will be at least a government shutdown, perhaps a default on our national credit, all because of political bickering. And you gentlemen, and most of all the men and women in uniform, should not have to suffer as a result of this fighting. So why aren't the compromises more forthcoming on this side of the aisle? You gentlemen have to resolve your differences in the tank. You gentlemen have to make very important life-and-death decisions almost every day. But we on this side of the dais are unwilling to even come up with a budget for America. We saw near default on American credit in 2011, we lost our AAA credit rating, and that looks to be happening again. The best case circumstance for you is you get a short-term CR, so as you gentlemen have testified, you are not able to start any new projects, you are having to operate in an incredibly irrational and constrained budget environment for, what, 2, 3 months at a time, in addition to having to probably furlough again all your civilian military employees. So the message of this hearing really should be to take the valuable information you have given us, for us on this side to resolve to do better, to come up with bipartisan and bicameral compromises that get budgets for America, budgets for our military, budgets for the national defense, because as I said in my committee markup amendment, if sequestration were foisted on us by a foreign enemy, we would declare it an act of war, and yet we have done it to ourselves, because the super committee was unable to come up with a bipartisan agreement, because we have been unable to unravel that knot since, even though we have had some of our generals testify to us that their Departments are in chaos. This should not be happening in America. So I am hopeful that this committee with its large membership will take this message to heart ourselves and to other Members so that we can do better, can get a budget for America before the end of the fiscal year, can get the proper appropriations bills passed, can have a sensible HASC [House Armed Services Committee] markup that actually provides you gentlemen with the resources that you need to do the job you need to defend our country. So I thank the chairman for his indulgence. I see my time has expired. I hope for better things for our country. The Chairman. I have the greatest respect for the gentleman, but there are just a couple of things I would like to clarify for the record. One is there is another body, and while we haven't worked together to resolve our budget, they didn't pass one for about 3 or 4 years. And this time the one they passed, they have $91 billion more in their budget than we have in ours. And we followed the Budget Control Act, which gave us a number that we had to work with. So I agree that we haven't done the type of job that we should, and we need to dig in and really work hard on this problem. And it is not any of your fault. It is us, and we need to work together on it. The other thing for the record was the voice vote on the gentleman's amendment, he is correct, but it was not, when we did a roll call vote, it was not a partisan vote, it was something we all worked together on and did change for several reasons. So next we have Mr. Bishop. Mr. Bishop. Thank you, Mr. Chairman. Gentlemen, I appreciate you being here. I have empathy for the job you have, but I am grateful that you are having that job at this time. I hope you find it a challenging and enjoyable situation, or at least challenging situation, especially in an era, as the chairman and the other member recently said, when the military has gone through three cuts in its budget. You have had to manage through all of those. Had we not had the two prior cuts, then the third one, which we call sequestration, may not have caused the cup to overflow, causing some of the problems that we are facing. So I recognize you have to realize and manage all three of those cuts, and you have done it well. I happen to be very proud of the House. At least in our budget and our defense authorization bill from this committee, as well as the defense appropriation bill, recognized that situation and staying within the sequestration number reprioritized the military up to where it needs to be. And I would hope that the Senate would actually pass that appropriation bill so that we could move forward with it. I have, General Welsh, three rather parochial questions I would like to add on you, and then one for Admiral Greenert. Let me see if I can actually get through those in a relatively quick fashion. General Welsh, first of all, I had the opportunity of hearing from Generals Wolfenbarger, Moore, and Litchfield this morning. You have a good team under you. I am very proud of what they are doing. And I asked some of these questions of them as well, but, as you know, in the last sequestration issue, there was an issue with the FAA [Federal Aviation Administration] and contract towers that were critical to some of the bases within the Air Force. There was not a good communication between them until we told the FAA they could do what they always could have been done anyway had they not been told to do it. Are you either having a new updated list or are going to engage earlier with the FAA on dealing with those towers that have an impact on the military bases we have in the Air Force? General Welsh. Yes, Congressman, we are. After our last discussion on this topic, actually we have established a process with the FAA where as soon as they come up with a list of contract towers it comes to the Department. The Air Force takes the lead on that, just because we are connected to them. We share it with all the other services who do aviation work. Mr. Bishop. Thank you. General Welsh. And we will continue that cycle. Mr. Bishop. Appreciate that. Let me also talk about the record of decision for OPS 1 location for the F-35, which has been postponed again. My concern is obviously that every delay you have in signing that record of decision causes problems in financing the capital improvements that need to go along with it. I understood that now the idea is to wait until there is a new Secretary before you are actually signing that. Is there some way we could actually speed up that process? Are you looking at that still as the timetable, that when the next Secretary comes in it will be signed? General Welsh. Congressman, we are not waiting on the next Secretary. The timetable to get the data put together to complete the EIS [Environmental Impact Statement] report and findings with the updated census data just is after the new Secretary hopefully will be confirmed, if that goes well. If not, we will not delay the decision waiting on the new Secretary. Mr. Bishop. Pending a Secretary. General Welsh. I have not heard that intent expressed, and it certainly wasn't a discussion between the Acting Secretary and myself. Mr. Bishop. That is good news, and I am looking anxiously for that actually to be decided so we can move forward in that. It is a wonderful thing that will help the Air Force. In the appropriations act, we went through great statements to restate what I think is still Federal law in Title 10, Section 2742 that deals with the working-capital fund. If indeed we have a problem going forward in the next and we do not actually have the Senate passing our appropriation bill, are you looking towards once again using furloughs, especially in that working-capital fund, in which I still think is being prohibited by the section I just mentioned? General Welsh. Sir, we are not planning to do furloughs at all in fiscal year 2014. If the CR is 6 months or less, if there is one, then I think it is completely avoidable. Mr. Bishop. That is a better answer than I would have hoped for. Let me go to Admiral Greenert. Representative Forbes, I thought, did great questions in presenting as to what the concept could be. Our policy has always been to be able to deter and defeat any adversary in any area. In your written testimony you stated we would not be able to conduct one large- scale operation and also counter aggression by an opportunistic aggressor in a second theater. Are you stating before this committee that under sequestration you would not be able to deter and defeat aggression specifically in one theater if our forces were committed to a large-scale operation elsewhere? Admiral Greenert. Yes, sir, I am. And let me clarify, if I may. The Defense Strategic Guidance says just what you stated. The reduced surge that I described, the readiness of those carrier strike groups, amphibious strike groups, et cetera, I believe can react to one major contingency operation or can in each theater, the two major theaters, deny. So that is an ``or'' statement--deny in two theaters or respond to one. That is what I have concluded based on what I know right now. Mr. Bishop. Are you using deny and defeat interchangeably? Admiral Greenert. No, I am not. Deny would be the alleged aggressor would look and say, I don't think this would work out very well, there seem to be good forces here. And I am not saying deter. That is a tough one. Deter, deny. I don't do very well trying to pull those together. But the point is you preclude in each theater, you know, small contingencies, or you come together and roll into one and do a major contingency operation. Mr. Bishop. Thank you. I appreciate your answers very much. And, General Welsh, I appreciate your leadership. I have an Air Force base in my district. We appreciate very much what you are doing up there for us. Thank you, sir. The Chairman. Thank you. Mr. Courtney. Mr. Courtney. Thank you, Mr. Chairman. Again, I just want to at the outset express again my condolences and outrage actually in terms of what happened on Monday at Sea Systems Command. I have had a chance up close to deal with Admiral Hilarides and his predecessor, Admiral McCoy, and the great team that is over there. We talk a lot in this committee about protecting the industrial base. That is what they do every single day. And a lot of them don't wear uniforms. They are civilian employees who took a hit with sequester and furloughs already. And, again, I just have the highest regard and admiration for all of them, and it was just incredible to see, you know, the events unfold on Monday. So please convey, I am sure from the whole committee and myself, again, our thoughts and prayers are with that great group of individuals. Admiral Greenert. Yeah. I will do that, Congressman. And I know you are a good friend of NAVSEA [Naval Sea Systems Command]. You go there often. These are our shipmates, and I appreciate that and I will pass it along. Mr. Courtney. Thank you. And, again, I am pleased to hear that the IG's report is something that the Navy is going to incorporate. Frankly, and this is sort of just me speaking, coming from Connecticut, it has been 9 months since Sandy Hook. There are too many mentally ill people getting too easy access to weapons, and it is time for this Congress to pass a background check bill, which would help, frankly, all installations in terms of trying to make sure these incidents don't ever happen again. And hopefully people are going to respond in this Congress to something that is perfectly constitutional and obviously necessary. Admiral, in your testimony, again, I just want to say, as far as I am concerned, you have been very explicit and specific in terms of what the impact of CR and sequestration has been and will be. We had 85 shipyard workers on Monday who received layoff notices because of the cancellation of the Miami repairs. And, again, I think, you know, we spend a lot of time talking about shipbuilding and platforms, but the fact is that the repair and maintenance end of your Department is obviously another critical piece to the industrial base. Your testimony indicated that you are going to be cancelling 34 of 54 planned maintenance availabilities. Can you describe what that means in terms of, again, protecting critical skills, particularly in some of the private shipyards? Admiral Greenert. Well, if I were to quantify it, Congressman, it is about 8,000 jobs. That is our best estimate. And our big areas are the Hampton Roads area and the San Diego area. That is where the big shipyards are. But it is up and down the coast, to your point earlier. And so those individuals, those presidents of those companies, they can't plan. So as I mentioned, I really want to be able to do a reprogramming or give me an appropriation bill, and we can preclude many of those 34. Half would be my plan. If I get that billion dollars I was mentioning in my oral statement, we could preclude at least half. We would then take to repair the ships that are going to deploy next year or the year after, or the ones that absolutely have to do a life upgrade because it is necessary. In other words, we have a priority and a scheme. Then we can converse with the shipyard, we can make plans and we can recover. Subject to that, that is where I am, Congressman, and it is really about balance. You know, the CR stops, it puts me at last year, no new starts, sequestration takes everybody down, we go where the money is and we got to operate forward and meet the commitments of today, number one. Mr. Courtney. And the repair and maintenance work is also, I think, a mechanism that you have employed to, again, protect critical skills, again. So if there is, you know, the six or seven shipyards around the country, you can actually, again, protect welders, carpenters, machinists, et cetera, if there is maybe a downtick in one of the shipyards. And so losing that, I think, is really, again, going to hit muscle and bone, is that right, in terms of our base? Admiral Greenert. Yes, sir, that is correct. You are referring to what we call the ``One Shipyard'' concept, where we will move workers to another area of the country and they will assist. And there is good cooperation between our public shipyards. Some of the private shipyards are adopting it as well. Mr. Courtney. Right. And, you know, in terms of the operational force, you know, if CR minus sequester goes through, again, we have a 6-month delay on the Truman, a number of other deployments. Again, what do you see in 2014 and 2015 for the operational force? Admiral Greenert. What I see is we would be able to maintain one carrier on deployment and one in surge. And then the George Washington is in the forward-deployed naval force, so she is in Japan. So at any given time you have one carrier in the western Pacific and one carrier in the Arabian Gulf and one carrier strike group that can respond. The others are waiting to get into maintenance, because I just don't have the capacity to move them into maintenance, or they are in maintenance. Now, key and critical part are the air wings. So when carriers come back, instead of keeping them at a proficiency level able to respond, we will let them gracefully decline and they will shut down for a period of about 3 months, and then we will take them what we call tactical hard deck. That is just a level of flying statistically determined to be safe. It is sort of like driving your car occasionally so that when the time comes you could get in and, you know, practice and maybe become a delivery person or whatever, and that is when these air wings would go into work up. So we would have on any given time three air wings, a tactical hard deck, two shutdown, and then three getting ready to, well, deploy or on deployment. This is a situation we haven't been in before and it is not our covenant with the combatant commanders. The Chairman. Thank you. Mr. Turner. Mr. Turner. Thank you, Mr. Chairman. Gentlemen, thank you for the clarity that you are providing. I appreciated your very strong answer to Randy Forbes' question as to the effects of a second year of sequestration. The President's sequestration was intended to be a process by which the President would seek, with Congress, alternative offsets so that defense would not bear the brunt of these cuts. The President now, not bringing forth any other offsets, but calling on Congress to repeal it, has placed this stasis, this gridlock that we have. I opposed this from the beginning because I feared that we would be right here where we are, where the President is not coming to the table with any recommendations for us to be able to find those offsets. But with the clarity that you are providing, this is important, because it is going to help us frame the discussion of how important it is that this process be stopped. Dr. Miller was before Congress when he was discussing Syria, and he said that the administration is very well aware of the message that you provided today, but we need it out in the public, we need the message of clarity that you are sounding the alarm that one more year of sequestration would be absolutely devastating to our military. I want to go to Hagel's Strategic Choices and Management Review--this is known as the SCMR analysis--which appeared to be largely sequestration driven. And I would like to focus with General Odierno and General Welsh on the effects of the conclusions of the SCMR analysis. And so, General Odierno, you had said that they had some rosy assumptions. It is my understanding that a number of assumptions underpin the sequester-driven SCMR analysis, such as a 6-month duration for wars, no follow-up for stability and support operations, and a 90-day mobilization for Reserve Component formations. And as you are saying, you know, their readiness is actually declining, not remaining stable. General Welsh, I am certain you have some concerns as to how it affects Air Force squadrons. And if the two of you might speak of whether or not you also have similar concerns the SCMR analysis conclusions may affect our ability for readiness. General Odierno. General Odierno. Congressman, you had it just right. I have some concerns. I mentioned that I think some of them are somewhat rosy assumptions that I think can be somewhat dangerous. As you mentioned, conflicts 6 months in duration, no casualties in these conflicts, the fact that we would fully disengage from everything else we are doing. My problem with that is we just got done fighting two wars in Iraq and Afghanistan. We never disengaged from Korea, we didn't disengage from the Sinai, we didn't disengage from Kosovo, so why is there belief that we will disengage in the future when we haven't done it when we got done fighting two wars at the same time? There is no mission for weapons of mass destruction, that was not considered, which is a significant scenario in many of the scenarios that we have to address. So all of those are my concerns, that were really put in there so we could say we need a smaller Army, and that is concerning to me. And I have raised those issues very privately in all of our discussions that we have had during the SCMR process. Mr. Turner. Thank you. I think it is important for us to know that as part of the discussion, that those conclusions should not just be merely accepted. General Welsh. General Welsh. Congressman, I think the SCMR process made some things very clear to me. First is that what sequestration does, the topline reductions over time related to sequestration actually creates a capacity-versus-capability discussion that Admiral Greenert referred to previously. That is a longer-term issue that you can deal with in some kind of methodical and well-planned approach. What the mechanism of sequestration does--and the SCMR analysis made this very clear--is that it creates a ready force today versus modern force tomorrow dilemma. And that has defined the decisions that the Air Force is making right now, the ones we made last year, and the ones we will make for the next couple of years. The mechanism, the abrupt arbitrary nature, especially over the first couple of years, prevents you from making wise, long-range planning choices and drives you into this discussion of do you want to be modern in the future or do you want to be ready today. That is a terrible debate to be having. The other thing that came out of the SCMR analysis that was significant to me is that the cost of having a ready force, whatever the size of that force, the cost of making it ready is marginal compared to the cost of the force structure itself. I see the Air Force as an asymmetric advantage for our country. And by the way, the other services, I think, are the same. But we provide things quickly. We provide mobility rapidly. We provide ISR [intelligence, surveillance, and reconnaissance] support tonight, not in 3 or 4 weeks. And we provide global strike capability right now. That requires a readiness level that is not sometime in the future we will be ready to go. And to me that was a significant takeaway from SCMR. The cost of that is marginal compared to the cost of actually having the force structure. Mr. Turner. Thank you. Thank you, Mr. Chairman. The Chairman. Thank you. Ms. Tsongas. Ms. Tsongas. Thank you, Mr. Chairman. And thank you all for being here. As a member of the Armed Services Committee, I have been here almost 6 years. I can recall when I was appointed, I didn't realize that it was and does have a proud tradition of being very bipartisan in its thinking, its commitment to producing a bill, bringing that bill to the floor, passing it out of the House, and then going to conference after the Senate similarly passes a bill. And it is in that conference where we resolve our differences, swallow some of them, proudly proclaim success in others, and then move on, because we understand how important it is to the defense of our country. And I think Chairman McKeon has honored that tradition, and I am suggesting maybe he should become head of the House Budget Committee, because we know the House has passed a budget, the Senate has passed a budget. There is a process, and it is called conference committee. It is a process that we honor and engage in every year. But back to sequester, I am dismayed that we had many, many hearings in which we talked about the damages of sequester, and now we are really talking about how to weather them. And I commend you all. I for one do think there is room for additional cuts. I am ranking member of Oversight and Investigations. We have had a hearing about the growth in the Office of the Secretary of Defense, that there is growth in the overhead. There are areas where we can look carefully and bring about savings in order to put more funds into things that really count. But sequestration obviously is not the way forward, because of the kind of across-the-board lack of discretion that you all confront. And General Odierno, when I hear you talk about readiness and I see the extraordinary bravery of those who serve in our behalf, the wounds they have to absorb, the life-changing nature of being in war, to think that we would ever compromise their readiness, I think, and put them in harm's way, knowing they are not adequately trained, and I know you would not do that, you would find a way to avoid it. But I think it is a way of bringing home to the American people what sequestration means. It is an All-Volunteer Force, it is not one in which we call upon all Americans to think about our young people coming to serve. And we would never want to send our young people to war without knowing that they were trained. I think the other way in which sequestration has become so hard is it is such a big term, the dollar amounts are so large, but you hear about it, we hear about it in our districts, we hear about it through the furloughing of people. And one of the places in which I have heard about it in my district, it is home to Natick Soldier Systems Center. It is a center that really invests in research and development, science and technology with a focus to, again, protect our soldiers and find new ways forward to protect them as they engage in war. I have seen some great work done there around lightening the load of body armor, developing body armor tailored to women, making uniforms fire retardant, the ways in which to conserve energy and recycle water out so that our soldiers don't have to put themselves in harm's way. But I have also learned that there has been a real bleeding of that workforce. It is my understanding that there they have sustained a workforce attrition of 52 personnel in this fiscal year, more than double the annual average, and including a number of Ph.D.s. So for an installation that develops this life-saving equipment, we know Ph.D.s are the heart and soul of research and development, and technology and science are key, key. We cannot develop those new cost-saving, life-protecting measures without all the tremendous investment. So we are not going to be repealing sequestration any time soon. How do you, General Odierno, protect that investment in this important work so that we know we are always on the cutting edge protecting our soldiers? General Odierno. First, Congresswoman, thank you very much for your question. And I would just say number one priority is our soldier systems, as you mentioned, getting them the best equipment possible for them to be able to conduct the operation we want them to do, whether it is lightening the load, all the things you mentioned, to include many, many others. The problem is, is that, you know, because we have had to go into a hiring freeze, because of furloughs, because of incidents like this, we are starting to lose some of our very important workforce, because they are uncertain about the future that they have working with us. So we have to make sure that we maintain a balanced force that allows us to continue in our highest priority, which is what you just talked about. So for us it is very concerning. We will--I will--take a look at programs that will allow us to keep the best, because we need our scientists, we need our engineers, we need our Ph.D.s to help us to come up with the new ideas and technologies for us to take care of our young men and women in uniform. Ms. Tsongas. I urge you to do that, despite all these financial challenges. Thank you. The Chairman. Thank you very much. Mr. Rogers. Mr. Rogers. Thank you, Mr. Chairman. And, General Odierno, I will focus my questions towards you. You all, all four of you did a great job in the outset in describing the impact of sequestration and how wrong-headed it is for the country, but particularly for your respective service branches. And I appreciate your candor on that, because the American people need to hear it. A lot of Members of Congress who aren't on this committee need to hear it. I think most of us on the committee already understood the impact, but we appreciate your candor. General Odierno, the disruption and uncertainty that sequestration is causing the civilian workforce and its impact on our readiness, I think, is the wrong way for us to budget for our military. But, sir, in year two, what current maintenance and overhaul programs are you looking to preserve? General Odierno. Well, first off, our problem is we want to sustain our reset program, which is resetting our equipment that is coming back from war, and right now we don't have the dollars to completely do that. And so I want to preserve all of that. I need that equipment in order to feed back to all of our units. And right now we are looking at, because of sequestration, having to lay off 2,400 people in our depots who do that very important work for us, and then another 1,400 because of lack of workload; not because we don't have the workload, but because we don't have the dollars to support the workload over the next 2 to 3 years. So I need that, because what that means, it will delay the reset of our trucks, our soldier systems, our mortar systems, our individual weapons, and that causes us to reduce readiness down the road if this continues. Mr. Rogers. How do the possible reductions that you just described, those reductions in the force, impact the equipment mix and the workload of our depots and arsenals? General Odierno. So obviously as we reduce the force over time and reduce the number of brigade combat teams, that reduces the amount of equipment that we have to sustain our readiness. So I mentioned earlier that if we go to full sequestration, just in the Active Component, we are looking at a potentially 45 percent reduction in our brigade combat teams. That means less tanks, less Bradleys, less trucks, less M-16s, less mortars, less artillery systems. So it impacts all of our workload, because we are getting smaller. And, again, as I have stated, I think that is a bit too small, but it is going to have a significant impact on our civilian workforce as we move through this process. Mr. Rogers. Well, again, thank you. I think everybody in this room would agree that the sequestration maneuver was a tactical error made by the Congress in the Budget Control Act that blew up in our face, and we need to acknowledge it was a stupid mistake and correct it. And I pledge to you all, I intend to become a very aggressive Member in trying to bring this to a quick and immediate halt. Thank you. The Chairman. Thank you. Mr. Garamendi. Mr. Garamendi. Thank you, Mr. Chairman. And, gentlemen, thank you very much for your service and the good work and tough situations that you face. General Welsh, I think you are aware I am going to ask a question about the KC-10. It has been quoted in the newspaper that a decision is in process to eliminate the entire fleet of the KC-10s, obviously a major impact, particularly on Travis Air Force Base, which houses half of that fleet, at a time when we are going to reposition ourselves to the Pacific. Can you explain in detail, and I guess as briefly as possible, why you are suggesting the elimination of the KC-10s at this time? I understand it is for the 2015 budget proposal. General Welsh. Yes, sir. First of all, anything that was in the paper is not a decision yet. We are considering divestiture of the KC-10 fleet, along with divestiture of lots of other things. One of the things that we got into as we looked at the ALTPOM, the sequestered POM, especially for 2015, is that $1 trillion-plus out of the Department of Defense is going to leave a bruise. It is going to be significant and it is going to impact many, many things across the Air Force. We looked at the refueling fleet, we looked at our permissive ISR fleet, we looked at everything we do in the MILCON [military construction], facilities sustainment arena. We still haven't been able to get at facilities and infrastructure or personnel costs, which are significant to us, and so we are back to modernization or readiness. Those are our choices. And so as we looked at modernization, recapitalization, we looked at fleets of airplanes to see where we could save big amounts of money as opposed to a whole bunch of little amounts of money, which don't make savings over time. That is why the KC-10 fleet was examined, as part of that effort. Mr. Garamendi. Rather than the KC-135s, which are older? General Welsh. Sir, you can't eliminate the KC-135 fleet and still do the job that we do for the Department of Defense worldwide. It is too large. There is nothing good about divesting any aircraft fleet right now. What we are looking at is where can we take savings and not completely stop our ability to do our job. Mr. Garamendi. We have very little time here, and I will not go further at this moment, but I am definitely going to go into this in far more detail with you and your staff. General Welsh. Yes, sir. Mr. Garamendi. I will look forward to that. General Welsh. We expect to do that. I look forward to the conversation. Mr. Garamendi. Did you take a look at the triad? And this is, I guess, for Admiral, as well as for you, General. There is no mention of the triad here, where billions upon billions are spent in modernization of our nuclear force and the nuclear bombs, yet there is no mention of any of that in this testimony. Did you consider that? I will start with you, Admiral Greenert. Admiral Greenert. Sir, my number one statement is my top program is the SSBN(X) and the sea-based strategic nuclear program, and that is number one. I will fund that above all else in any ALTPOM, if you will, scenario. However, sir, it is not exempt from sequestration, that program, and so I am very concerned. It got sequestered in 2013. We were able to reprogram. It gets sequestered again in 2014. These delays, months and months and months, add up to years. This program is very tight. Mr. Garamendi. General Welsh, on triad. General Welsh. Congressman, as I mentioned before, we have looked at every modernization program we have in our portfolio. We are looking at everything. Mr. Garamendi. There is no specificity about the triad, about the land-based ICBMs [intercontinental ballistic missiles]? General Welsh. Well, first of all, the land-based ICBM, the cost of maintaining and operating that day to day is not significant. It is very, very low compared to the cost of other things. The modernization part of this over time is what we are discussing and where can you make savings, where can we work together with the Navy on pieces of the--whether it is weapons development, warhead development, infrastructure, to make sure that we are saving costs there, command and control, those areas. But we are looking at all of that, Congressman. It is all on the table. Mr. Garamendi. Okay. I would expect to have you develop that detailed information and present it to the committee, or at least to me. I would appreciate if you would do that. [The information referred to was not available at the time of printing.] Mr. Garamendi. Also, Admiral, very quickly, you are going to build a new base at what I call Camp Malibu, otherwise known as Hueneme, in Ventura County, for your BAM [Broad Area Maritime] System. Why are you not using the existing facilities at Beale? Admiral Greenert. Well, it is really about space. And if we had the space at Beale, I think we might consider it. Mr. Garamendi. You do have the space at Beale. Admiral Greenert. Well, I will tell you what I will do then, Congressman. I will regroup and we will come and show you why we decided to do what we decided to do, rather than use all the rest of your time. Is that okay? We will come and lay it out. Mr. Garamendi. Yes. I would appreciate that, sir. Admiral Greenert. You bet. [The information referred to was not available at the time of printing.] Mr. Garamendi. I will yield back. Thank you, Mr. Chairman. The Chairman. Thank you. Mr. Wittman. Mr. Wittman. Thank you, Mr. Chairman. Gentlemen, thank you so much again for joining us. Thanks again for your service to our Nation. Admiral Greenert, please again pass on my condolences and prayers to the entire Navy family, especially those at the Navy Yard and to the families of the victims of that terrible tragedy. I know it is a very tough time for the Navy family, and please let them know we are thinking about them and praying for them. Admiral Greenert. Thank you, Mr. Wittman. I will pass your feelings along. Mr. Wittman. Thank you. Admiral Greenert, I want to go back to the submitted statement that you had, and you spoke about both the CR combined with sequestration for 2014 and what the effects of that would be. And you say that most concerning, however, is we will have two-thirds less surge capacity in fiscal year 2014. And let me get you to elaborate on that a little bit, because I think sometimes people think of surge as extra or excess. Can you give us some real examples of where recently you have needed that surge capacity and how it is used? And then give us a focus, too, on what diminished surge capacity means. And that is, if our Nation is challenged, does it mean we deploy nonready forces or do we just refuse actual deployments, or in those situations say, listen, we can't respond? So if you could give us that perspective. Admiral Greenert. Yes, sir. I will go backward. I think that might work. Today we have the Nimitz in the Red Sea and we have the Truman in the North Arabian Sea of the Arabian Gulf. So the Nimitz is a surge carrier strike group. She was on her way home. As soon as she goes off station, whomever the strike group is, they become the surge. And had she gone back to her home port, she would be on call, if you will, until further notice. Well, she was called. So she is that one that I spoke of. If this situation continues, there will come a time when it is time for Nimitz to go home. We will call on one other carrier strike group. So that is how that works. Now, if there is more than one, well, we have a problem, because we don't have a carrier strike group ready. The carrier is nuclear powered. That is not the issue. It is the air wing. They are not organized, trained, equipped, proficient. The destroyer is organized, trained, equipped, proficient and certified for a whole host of missions. For example, the destroyers in the eastern Mediterranean, they are there for ballistic missile defense, the European Phased Adaptive Approach. They happen to be multimission, so they could do, if called upon, other missions, which we are pretty well aware of. So back to the Red Sea. Those destroyers that are there, they are out about 9 months now, 10, 11. When the time comes that we send them home and say we need to sustain this, we will need to reach for destroyers coming out of the west coast probably, and they are not ready yet. So we will have to now tailor and be very clear on what they are certified to do. We have never had to do that before, Congressman. So we could be very soon in that kind of an arena. To summarize, we have a covenant with the global combatant commanders and the National Command Authority. We provide carrier strike groups forward ready on deployment, and that is generally two. We have two to three, generally three ready to respond within about 14 days. And then we have about three within 60 to 90 days. That is what we have signed up to. That is called the Fleet Response Plan. That has to change now. Mr. Wittman. Got you. Let me ask you, I think those are very great points. Give me your perspective. When we have a strike group like Nimitz that now is on deployment now approaching 11 months, what does that operational tempo mean for sailors? But tell me, too, what does that mean when you are looking at maintenance availabilities? And we all know that those kind of get stacked up, too. What happens if maintenance availabilities have to be cancelled, and then you are talking about not maintaining ships? What does that do to affect, again, your capacity to respond and then the life expectancy of those ships? So give me your perspective on personnel and equipment. Admiral Greenert. Personnel, we tell our sailors and we shoot for, as the Commandant said, you know, he talked about dwell and he talked about turnaround ratio and rotation. We tell our sailors you should expect about a 7, 7\1/2\ deployment. When you get up to 11, they say, okay, you know, 11-month deployment. Then they come home and then they are turning around within about a year. So you are getting close to 1 to 1.2, 1.3 when you do that by the time that particular carrier turns around. We are at a point in our economy, things are changing, so I am concerned about the debilitating effects of that. Take that kind of carrier strike group and its air wing with the ones that are sitting there at hard deck. These are shut down. So I have got pilots looking out the windows saying, gee, I wish I could fly. I have got others saying, I am flying so much and deploying so much, I can't even get a will done to do that. And so we have got imbalance here, sir. Deployment-wise, the carriers are heel-to-toe in our nuclear repair shipyards. If somebody is delayed, that is a problem and now they are stuck in there, and that means they are not ready to deploy eventually. The Chairman. Thank you. Mr. Barber. Mr. Barber. Thank you, Mr. Chairman. And before I begin my questions, Admiral, I just want to, along with my colleagues, extend my condolences to you and the entire Navy family. The whole country, I think, is heartbroken over what happened on Monday. I spoke yesterday with Secretary Mabus and offered my personal assistance as well as condolences. Having been a survivor of a mass shooting myself, I have a sense of what is going on with the families, those who lost loved ones and those who survived. And I just want to say that personally I am available any time for any purpose that would be helpful to those families, and please feel free to call me for that purpose. Admiral Greenert. Thank you, sir. I think we will seek your counsel on how to deal with this since you have that experience. I appreciate it very much. Mr. Barber. Well, let me turn to the questions at hand. We have had this discussion so many times. But I just want to say at the outset that sequestration was a bad idea and I have opposed it since I got here a little over a year ago. General Welsh, I just want to ask a question specific to a fleet of aircraft that are stationed in my community at Davis- Monthan Air Force Base. There have been recent reports that, as we have discussed here this morning with other potential decisions, of getting rid of the A-10 in the future. And some people have made the argument that the A-10 just doesn't fit the Air Force's future because it isn't a multirole fighter. And in my view, this is a very shortsighted and potentially dangerous idea. As you know, General, the A-10 is unsurpassed in its ability to provide close air combat support. And I know fully, as you do, the A-10's role in combat, search and rescue operations, finding service members behind enemy lines, relaying information, escorting helicopters and assets in and out of combat zones. And the A-10s based in my district and across the country have been retrofitted with new airframes, airframe wings, and electronics packages that now have given them a life span of till 2028. General, as you know, the SCMR is built on four guiding principles, and I want to just quote a couple of them. The first is that we must remain ready for the full spectrum of military operations. And another is that we will remain strategy driven based upon the Defense Strategic Guidance and our ability to execute our five core missions against the full spectrum of high-end threats. Given what we know about the A-10 and the potential of future need for the A-10, General, can you tell me why it is that we would even consider retiring an entire fleet of this very valuable aircraft when there is no other alternative in place? General Welsh. Yes, sir. Because we have been handed a bill within the Department of Defense of $1 trillion-plus that we have to pay over the next 9\1/2\ years. A-10 was my first fighter, Congressman. I love the airplane. I have 1,000 hours flying it. It is the best airplane in the world at what it does. It is not the best at a lot of other things. It is capable in many areas. If we are going to look at what we must divest, not what we want to divest, but what we must divest, we have to be very honest with ourselves inside the Air Force about how much we can afford. And if we have platforms that can do multiple missions well and maybe not do one as well as another airplane, but the airplane that is limited to a specific type of mission area becomes the one most at risk, I think there is some logic to this that is hard for us to avoid no matter how much I happen to love the airplane. Mr. Barber. But how is it possible, General, that we could support General Odierno's ground troops should they ever be deployed again with another aircraft if the A-10 is not available? General Welsh. Congressman, people seem to assume that 100 percent of the close air support being done in Afghanistan today is being done by the A-10. That is not even close to the truth. It is actually a small percentage of the close air support that is being done by many, many other platforms. We have got to provide the United States Army, the United States Marine Corps, United States naval forces and our coalition partners close air support. We do it every day with a number of platforms, and we will continue to do that. Mr. Barber. Talking to Army personnel who have been deployed, they tell me when those Warthogs show up, they are much happier than anything else. So I just want to say that that is an important area. Let me just turn quickly, General Odierno, with the remaining time. I am concerned about the future of our ability to do cyber and intelligence work. As you know, Fort Huachuca is a major area of this. How do you see sequestration affecting that? And obviously that is important to our warfighters today and tomorrow. General Odierno. So in terms of cyber, as was stated by the other chiefs of services, is that we are going to increase our investment in cyber. Even though we are decreasing our budget, we are increasing our investment in cyber. We are going to increase the force by at least 1,800 people right now. So that is part of what we are doing. In terms of intel, as you know, we provide not only intel for the Army, but intel for the broader strategic and operational force, which is key to the combatant commanders. We are reviewing how we do that, but the primacy of what we do in our Intelligence Community will not change and the requirements that we have in our Intelligence Community will continue to be a key piece of our strategy as we move forward. So we are looking at very carefully how we gain some efficiencies without losing the depth and capabilities that we have to support a strategic operational and tactical level. Mr. Barber. Thank you, General. The Chairman. Thank you. Mr. Franks. Mr. Franks. Well, thank you, Mr. Chairman. And as always, thank all of you for coming. You know, it is days like this, I suppose, that we are all a little more cognizant of the sacrifice that you all personify here today. And, Admiral Greenert, I suppose that it is impossible for us to be as aware as we are today all of the time of the importance of people being willing to sacrifice all of their tomorrows so that we could have freedom today. And I certainly hold you all in great respect and appreciation. General Welsh, I will start with you, if you don't mind, sir. Yesterday you gave a brief at the AFA [Air Force Association] convention, and you started your speech with a thought about partnership and how during times of fiscal austerity, if that is what we can call this, rather than backing away from or defunding our training opportunities, we should, quote, ``hold our partners close.'' And I would like for perhaps all of you to elaborate to a degree on how important military exercises are with our allies, especially in those regions of great instability, and how sequestration might affect these opportunities, specifically with allies like Israel. And what does it tell our allies and our foes when we choose, in my mind, to spend our money wisely on exercises like these? So, General Welsh. General Welsh. Sir, I think it just increases the trust, it increases their belief in our willing to partner with them even when it is not convenient. And I think if we assume that the future is about coalition engagement, which I assume that that is the best way for the Nation to go whenever possible, we have to have the ability to engage as a coalition, and that requires training. It is a very practical problem for the military. It is helpful for us, it benefits us in term of time and cost in the future, and it creates capability that is meaningful and it can be brought together very, very quickly as opposed to spending months trying to train together before conducting an activity, whether it is a humanitarian relief or it is a contingency operation. Mr. Franks. Any other thoughts? General Odierno. Congressman, it is key. I mean, I just returned from the Pacific Army Commanders Conference, and the whole point of the conference was about multilateral engagements, multilateral exercises, sharing of information, interoperability. That is the key as we move forward. I am going next week to the European Commanders Conference. Why is that important? Because NATO [North Atlantic Treaty Organization] and our close allies are helping us as we work issues in other parts of the world. So the interoperability piece, it is all very important to them. And so to me it is key. In the future, we are going to have to operate in a joint interagency, multinational environment. We know that. And we have to do that the best we can. My only last point would be is our partners are also significantly reducing their investments in their militaries, so we have to be very careful about our assumptions about what we think they will do for us, because they are reducing as well. So it is a combination of all of those things we have to consider as we move forward. Mr. Franks. Please. Admiral Greenert. If I may. Partners, allies very important. We need to look beyond it. And I would say I just had the opportunity last week to sit down with my counterpart in the People's Liberation Army Navy, Admiral Wu Shengli, and negotiate eight opportunities for further engagement and partnership potentials at sea. So this goes, as my colleague said, it is clearly important for us and allies, but it goes beyond that. Mr. Franks. Yeah. Well, General Odierno, I might ask you one more question. You know, I had the privilege, I guess you would call that, of being in a helicopter 150 feet off the ground and 150 miles an hour pitch black going over Iraq, and you were one cool customer, might I add. You had a lot of faith in that helicopter pilot. But would you agree that relying more on operational Guard and Reserve will help mitigate the rising personnel expenditures and knowing that, you know, these men and women, obviously they are paid only when they are trained or mobilized, but also recognizing that they have a proven combat capability and we would maintain a strong protection for our country? General Odierno. We have to have the right combination, Congressman. So it is not Guard versus Active. I have got to have the right number of Active and I have got to have the right depth that is provided by the National Guard and U.S. Army Reserve. It is not one or the other. And you can't compare costs, because they provide different capabilities based on the dollars that they are given obviously and the time that they have to train and the time they have. So it is gaining that right synergy between the two. So as I have developed, and as I testified, we are taking a 26 percent reduction in the Active Component and only a 12 percent reduction in the National Guard, so I have taken that into consideration. But to go further than that is very dangerous because you lose the immediate readiness that you have with the Active Component. We need both, and I am an advocate of having both. Mr. Franks. Well, thank you, Mr. Chairman. Thank all of you. The Chairman. Thank you. Mr. Kilmer. Mr. Kilmer. Thank you, Mr. Chairman. As presented in the report, under sequestration the cuts will be either in capability or in capacity. And, Admiral Greenert, I was hoping to ask you if you could describe those tradeoffs when discussing the submarine fleet. Admiral Greenert. We need to have an adequate submarine fleet to distribute in a proper way what the combatant commanders need and what we need to respond to around the world for the missions. So that is a capacity piece. But you can't cover all the oceans of the world with submarines. So it gets to what capabilities do we need to have an undersea network of submarines, fixed and unmanned systems under the ocean. So we have got to develop those capabilities. And then aircraft, the P-8 aircraft and the Broad Area Maritime Surveillance. That is a Global Hawk kind of tricked- out for maritime operations. It is a combination of that network. And, number one, you have to have all of the capability of that network. Then number two, the capacity to broaden it. But I think step one, we need to bring in that capability. So that is the priority that I put in that when I talk undersea domain. Mr. Kilmer. Thank you. I know the focus of this hearing is on sequestration, which I think I have concluded is a Latin word for stupid, but now we are also facing a potential government shutdown. And certainly in my neck of the woods, where we have Naval Base Kitsap and then Joint Base Lewis-McChord, a lot of the focus has been on the potential kind of parochial economic impact of seeing a lot of civilian workers not receiving a paycheck. I was hoping you all could speak instead, though, to the national security impacts of a potential shutdown. General Odierno. First, I would like to talk a little bit about the impacts on the individuals. You know, we furloughed this year. It was horrible, you know. And it kind of comes to roost when you look at what happened this week. You had these dedicated civilians who dedicate their lives to our military, and because of these reductions we are furloughing people who have given their lives to us, and yet we are forced to do these kind of things. So for me it is unconscionable that we have to do this. And if we can ever avoid it, we will never do it again. But the national security impacts of reducing the size of our civilian workforce, it was mentioned earlier, the Ph.D.s, the scientists, the engineers, the logisticians that support us, we are going to lose that capability. And once you lose it, it is very difficult to get it back. And that becomes a real concern for us, that in a time of need, if people think we can automatically regenerate this capability, you can't. And so we now have a problem. And so for me, that is the real strategic impact of those reductions. Admiral Greenert. If you go up to Fort Meade and you look in the parking lot, I mean, those are our civilian, to me, sailors and airmen and marines and soldiers. And so I think the national security implications are obvious. You go to Offutt Air Force Base, it is Strategic Command. And then you go to, you know, what you and I are familiar with, our public shipyards, our naval shipyards, hey, we are heel-to-toe in there, and so we have got to get that work done. It starts falling behind, we have aircraft carriers that are not ready to go out and go out in the world, and so whoever is out there is stuck, and that is untenable. General Welsh. Just from a corporate perspective, if you just forget the personal impact, which is dramatic, 8 million man-hours lost for the Air Force with 6 days of sequestration this year. That is an awful lot of work that is not getting done on behalf of the Nation. Mr. Kilmer. I had another question, but I don't think time will permit, so I will just end by echoing the condolences extended, Admiral Greenert, to you and to your team. Admiral Greenert. Thanks, Congressman. The Chairman. Thank you. Mrs. Roby. Mrs. Roby. Thank you, Mr. Chairman. Thank you, again, to all of you. And, Admiral, on behalf of my family, we certainly are thinking of you and the Navy and all of the families and personnel that are affected by this. And to each of you, I always want to take the opportunity to thank you for your service to our country, but also to extend that thank you to your families, to your spouses and your children and all the sacrifices that they make. General Odierno, first and foremost, I appreciate the Army's execution of the ITEP, the Improved Turbine Engine Program, and its acquisition strategy of maintaining competition to milestone B. And as you know, Congress continues to support this important program, as evidenced in our defense bills, for the increased capability it provides and because it is in compliance with best practices and acquisition reform measures to reduce risks early on in a program. And so I believe that maintaining competition and schedule reduces the risk considerably for the Army and the taxpayer. Can you please just comment on the Army's commitment to competition in support of the ITEP program? General Odierno. No, you have hit the points. We agree. It is about the best engine for the best price while preserving competition to minimize our risk, and that is what this does. And so for us, we are totally committed to it. You know, we are going to wait for the analysis on alternatives as we decide for our future investment in this. And it becomes even more important, because sequestration actually makes it more difficult to pursue robust R&D [research and development] efforts. We have got to do this the best way we can, programs like this. And so for me this is kind of our model going forward, and so we are very pleased with this program and we are obviously going to continue to support it as we move forward. Mrs. Roby. Thank you. General Welsh, you know, I feel very strongly that education and training is the cornerstone of our modern day Air Force, and I am very sure that you feel the same way. And so I would like if you would please talk about the Air Force's commitment to ensuring that that cornerstone remains strong and what transformations you anticipate for Air University's officer and enlisted professional military education [PME], and particularly in light of all of the things that we have discussed here today, not just sequester, but the potential to operate under a continuing resolution, as well as issues surrounding the debt ceiling debate. General Welsh. Thank you, Congresswoman. I do share your view on education and training being foundational to our Air Force. I spent time 2 weeks ago, 3 weeks ago, I guess, down in Montgomery talking to the leadership at Air University, last week down in San Antonio talking to the leadership of Air Education and Training Command. We discussed the enlisted PME program that is under development to turn it into a continuum of learning, using both distance learning and residence courses. Same thing on the officer side of the house, what can we afford to do, and what we cannot afford to do is stop educating our professional force and stop training it better than anyone else trains their airmen. We are committed to this. We will remain committed to it. Everything is affected by sequestration, but this is not something that would be a wise long-term move to take a whole lot of capability out of our ability to educate and train these great airmen we are lucky enough to have come into our Air Force. Mrs. Roby. Well, I appreciate that continued commitment. And again, to each of you, thank you for all that you do. We appreciate your candor here with us today in light of these very difficult decisions that we have ahead, and we appreciate your continual efforts to educate us so that we are better prepared as we move into that. So, Mr. Chairman, I will yield back. The Chairman. Thank you. Mr. Enyart. Mr. Enyart. Thank you, Mr. Chairman. General Welsh, I had a couple of questions specifically for you. Yesterday afternoon, I had an Air Force Reserve wing commander in my office. And he was talking to me about the sequester and the effects of sequestration on his role. And he particularly expressed to me concern about the way the furloughs had been handled, that is going from 22 days to 11 days to 6 days over a period of time, and because of the impact that it had on those people. There are now serious trust issues between his Air Reserve technicians, his civilian workforce, and the Air Force and DOD. And as the wing commander, he feels that tension and those trust issues. General, I am sure that those trust issues extend throughout the entire DOD civilian workforce. And now, earlier this morning, you testified that the Air Force is not planning for any furloughs for fiscal year 2014. So with Scott Air Force Base sitting in my district, am I able to go back to my district and assure my rather anxious constituents, as well as that Air Force Reserve commander, am I able to assure to them that the Air Force is not planning any furloughs for 2014? General Welsh. Sir, I meant exactly what I said: We have no plans to furlough in fiscal year 2014. I will add this, we had no plans or even concept of furloughing in fiscal year 2013. I had never heard of it before. We have got to resolve whatever we call this thing, sequestration, fiscal crisis whatever it is; we have got to fix it. We are doing things that are unprecedented as far as decisions being made inside services, including furloughs. It was a breach of faith with our civilian workforce. I tell everybody in the Air Force that. I sent a letter to every civilian in Air Force saying that. I understand why the decision had to be made. I understand why we didn't have the transfer authority to take money from other places to put in the civilian pay accounts, but we as a government have got to do better on this one. Mr. Enyart. General, I couldn't agree with you more. And I think that it has been clearly expressed here today. But sequestration was a bad idea to begin with, and it is a worse idea as we go forward, particularly when we are dealing with CRs and all of the problems that that impacts on your budgets and the budgets of everyone, frankly. General, I did have one other question for you and that is that if sequestration continues, will the Air Force have to reconsider its KC-46 alpha basing decisions? General Welsh. I don't believe there is any reason to reconsider the basing decision as a result of sequester, no, sir. Mr. Enyart. Thank you. Admiral, as the son of a Navy firefighter and even though I chose the path of ``Go Army, Beat Navy,'' I would like to express my condolences to the entire Navy family. Admiral Greenert. Thank you, Congressman. I know it comes from the heart. I appreciate it. Mr. Enyart. Mr. Chairman, I yield back. The Chairman. Thank you. Mr. Nugent. Mr. Nugent. Thank you, Mr. Chairman. And I want to thank all of our service chiefs for all that you do, and obviously, you care immensely about this Nation, but more importantly, I believe you care about those that serve under you and that carry the task out on a daily basis. So, General Odierno, I really do appreciate your comment in regards to soldiers have got to be number one. They have got to be the number one priority. And I worry, and I am new to this committee as of at least January, I worry that through sequestration and through the political gyrations that got us there, it doesn't matter how we got here, but we got here, the damage that we are doing to our services--and I think you hit it on the head when you said that we really don't do a very good job of identifying future threats. I think major threats, strategic threats, probably so, but I don't think anybody saw Afghanistan or Iraq coming up on the horizon. And now we are bringing our force structure, I agree with you, dangerously low, and the lack of readiness across the whole mission area should concern everyone. And I am concerned. And I am concerned about the readiness of our troops, in particular across all the services, but obviously, in the Army, just because of the large nature of it and the, in the Marine Corps, the personal nature of that type of combat that you have to engage in puts people at extreme risk on a very close basis. How do we continue to keep a force that is all volunteer? How do we continue to keep them in place when we hear from, in the SCMR, in particular, was talking about benefits for those that are going to serve us and have volunteered to serve us and put themselves at risk? General Odierno. Thank you for that question because it is a very important question as we look to the future. And there is no doubt in my mind, I think it is absolutely essential we keep an All-Volunteer Force for a lot of different reasons. I won't talk about that. Let me talk a little bit about compensation. We have very generous and appropriate benefits packages today for our soldiers, sailors, airmen and Marines in my opinion. But what I think, as I go around and talk to our soldiers, they understand the fact that we are not going to, our thoughts at least on pay and benefits is not to decrease them but decrease the rate of increase. And if we do that, we can save enough money that allows us to appropriately continue to have an All-Volunteer Force. And they understand that. So I think we have to work together with Congress on this because I know how much you care about taking care of our men and women in uniform. That is very clear. But we have to come together to decide there are ways to do this in such a way that we don't reduce their pay but reduce the increases that we have projected, which saves lots of money. And that will enable us, I think in the long run, to maintain an All-Volunteer Force. Mr. Nugent. I faced the same issues when I was sheriff in regards to budgeting and looking at the increases as it forecast down the road, so I get that. But I also hear it relates to, it is not just pay, and you hit it on the head. And I had the same thing in the civilian world, but it is about training in particular about, you know, are men and women having the ability to fly, are men and women having the ability to go to advanced training? Yes, sir, Admiral. Admiral Greenert. Well, in the Navy, we talk about a formula, the quality of the service, of the sailor, equates to their quality of life--and that is the stuff we were talking about, their pay, their housing, their entitlements and all that--and the quality of their work. And that is what you just hit the nail on the head Congressman. Do I have spare parts? Do I have a boss that cares for me? Do I have a boss? Am I training? Do I feel like I am doing something worthwhile? And is my schedule predictable? What is their work environment? In our world, when they leave the pier, walk across the road and get in their car and drive off, their quality of life is pretty good and General Odierno relayed that. When they go back down the pier, get on the ship and go out to do that, we have work to do there, and I am concerned that we focus so much on the quality of life, and the quality of work vector is going down a lot. And we need to balance that, in my opinion. Mr. Nugent. I agree. And just one last statement, it is not a question to you, because you don't have the answer on this one, but I really do call upon the Commander in Chief to take a more active role in regards to working with this Congress, particularly with the Senate, to move issues as it relates directly to our security here in this country and having the ability to project force but also to protect the forces that we are projecting. And I think the Commander in Chief owes that to those that he commands and has that overall responsibility. And I yield back. Thank you. The Chairman. Thank you. Mr. Gallego. Mr. Gallego. Thank you, Mr. Chairman. Admiral, I will confess to you that there is not a lot of water where I live. But I will also tell you that every single resident of that congressional district, the 23rd in Texas, feels your pain. And on behalf of the constituency that I represent, I want you to know that our prayers are with you, with your fellow members of the service, and certainly with all of the families who have lost someone over the course of the last few days. Admiral Greenert. Thank you, sir. Mr. Gallego. I have the privilege of representing several military facilities, Joint Base San Antonio, which includes multiple Air Force and Army components, Laughlin Air Force Base, and in El Paso County, there is Fort Bliss. They are all very dedicated public servants, both in the uniform side and the nonuniform side. And my own view is they deserve better than what they are getting from our government, certainly from the Congress. As I have listened to the testimony, it seems to me that, in some instances, Congress is a very difficult partner because we make our life harder, instead of easier, and you can't say that, but I can, especially since I just got here in January. So when I listen to the idea, for example, that having to reduce pilot production, potentially reducing 25,000 airmen or a 9 percent cut in aircraft or choosing between readiness today and a modern Air Force tomorrow, or when I listen to the testimony about how it is unconscionable to do the furloughs, I understand that all of that is not in your control. It is in the control of the members of this institution. ``Institution'' is a very interesting word for this place. I would like to talk, General Odierno, you and General Walsh, about the impact of one of the disconnects I think there is, is many people don't understand the importance of the civilian side with respect to the uniform side. And so when you look at Joint Base San Antonio or when you look at Laughlin, people don't understand--or Fort Bliss--the importance of the contribution of the civilian side. Can you talk a little bit about that and how that spillover affects the uniform side? And how they work in tandem? And if you have specific examples about, at some point, I would also like specific information offline about the bases that I represent and how they would be impacted. General. General Odierno. So, for us, you know, we have three major commands, actually four major commands, in San Antonio. We have Medical Command. We have Installation Management Command. We have U.S. Army North and U.S. Army South, all in San Antonio. They are three, four key components to what we do in the Army. And medical, obviously, a huge responsibility of providing support to our soldiers, both in combat and our families and not in combat, and our civilians there play a huge role in that command. Installation, they manage all of our installations, both in the United States and outside the United States, a huge role. And then Army North is one who is really the Army component to provide homeland defense, homeland security for our Nation. These are all key components. They all have key civilian workforce that is essential for them to accomplish their mission. In fact, at SAMMC [San Antonio Military Medical Center], the hospital in San Antonio there, we have some concern. We are losing some of our critical civilian employees because of the furlough because they would rather go work now for VA [Veterans Affairs] or other opportunities because now they have lost, as has been mentioned, there some faith and trust in the fact that they will have some consistent employment with the Department of Defense, so those things that I will tell you are so important to us. Mr. Gallego. General. General Welsh. Sir, I will give you an example, the maintenance group at Randolph Air Force Base. I was down visiting with the maintenance group director, who is a civilian, the entire maintenance group at Randolph Air Force Base to support the training that goes on at that base, the flying training, is civilian, all Air Force civilians. Because of the furlough this last year, we actually lost enough of those 8 million man-hours I mentioned that weren't being done, a percentage of those were at Randolph, a large enough percentage that we lost the ability to support a number of flying hours equal to an entire pilot training's class worth of work, which is why I said in my opening statement, we will look at changing our initial pilot production numbers next year because we learned here we are going to have to cut a class, whether we want to or not, just as a result of lost production and from the impact on our civilian workforce and on our depots. The other place it affects us is when you take 8 million man-hours off the books, there are tasks that would have been done during these 8 million man-hours that can't wait because of the operational activities that they support. So the uniform workforce that is there will pick those up as an additional duty. The civilians would have done it and just worked a longer day before they took their furlough, but we are not letting them, so we can limit the number of hours we have to put against furlough, and we are not letting them work overtime. So everybody is frustrated because they like to do their job, not just because they are losing 20 percent of their pay during that period. Mr. Gallego. Thank you. The Chairman. Thank you. Mr. Palazzo. Mr. Palazzo. Thank you, Mr. Chairman. And thank the gentlemen here today for your testimony and the answers to our questions. I think we are, there has been a lot of talk about sequestration. I don't think anybody in their hearts voted for sequestration. I think it was just something that was a part of a bad bill that was put together, and we were never meant to get here, and I think everybody has pretty much said that in different ways. But if we go back to Admiral Mullen, he basically, where you are, said the greatest threat to our national security is our national debt. We are $17 trillion in debt, and there seems to be no turning that around. We have had record deficits. We have had record unemployment for the past 4 years. And there seems to be no solution to it. And so that is why we are having these arguments, these fights, not just inside each party and also with other, you know, outside the party; it is because we are fighting over shrinking discretionary budgets. And while we do nothing to address the number one driver of our deficits and our debt, and that is the mandatory out-of- control entitlement spending. And I hate this because I feel like this is going to be Groundhog Day over and over as long as we are in Congress. It is just deja vu. We are going to keep having these conversations. But until we put people and policy ahead of politics, we are going to have to keep having these squabbles amongst one another. And we can get there. We can fix our economy. It is simple. We just have to listen to the American people, and I think they want to see our spending cut, but they want to see it done responsibly. I think they want to see a balanced budget. All 50 States have a balanced budget. Why is the Federal Government different? Is it somehow more special? And they want to see us grow the economy. What people are talking about in my district when they are not being distracted with Syria or Obamacare or something else, they are talking about jobs. They are starving for jobs. They want to see this economy get back on track. And you know, there are some of us that know how to create jobs in Congress. And I think we need to elevate their voices. And we do that through less taxes, less regulation. We don't need to have throwing up obstacles because there is a lot of money sitting on the sidelines, but people are uncertain. They don't know what is going to happen tomorrow. So they are very much reserved. I would just like to say a few comments. I hope that the Guard and the Reserves does not go back to being a strategic Reserve. I hope they maintain an operational force presence. I think it is extremely important. I think they have earned their place in our military. They cost one-third of what an Active Component would. But also, I think there are multiple missions they can engage in. I know they have some border enforcement opportunities in the past. I think we can--instead of adding 40,000 more Border Patrol agents, we ought to see how we could surge the Guard to the border; maybe other homeland security means, too. Also, with our, Admiral Greenert, with our pivot to the Pacific, I know we are going to need ships, we are going to need destroyers, we are going to need amphibs. And I know with the multiyear ship procurement and being able to plan in advance that is a benefit, and I hope this Congress continues to do that to give you the ability to go drive down costs and get the best quality product for our taxpayer. General Welsh, I can't thank the Air Force enough for delaying the transfer of the C-130J's. I have been kind of on that for a long time. I know because there is so much uncertainty. We don't know what the force is going to look like tomorrow. And I tell you the community, the Mississippi community is very appreciative because after winning the Commander in Chief's Installation Excellence Award out of all the bases in the military, we hope you take a hard look moving forward. And hopefully, you will determine that they need to stay there. I do have one question. This question will be for General Amos. As sequestration settles on the force, we hear often that services will be forced to do less with less. In your unvarnished opinion, what are the risks to major contingency operations, as well as steady-state ops, if they continue and these cuts are realized? General Amos. Congressman, thanks for the opportunity to be able to speak frankly about that. I don't see any slacking in the requirements for all of our services for the next decade. I read the same pundits. I read what they say. I listen to them, and they talk about a peace dividend coming out of Afghanistan. And I think that is overly optimistic at best. I don't see the requirements changing. In fact, I would say the world is probably more dangerous today than it was prior to 9/11. Folks have said, and I began to, as we shape the Marine Corps down to this 174 force--and as I said in my opening statement, it was a budget-driven effort; it wasn't a strategic-driven effort--I started with, well, okay, we will do less with less, but what we will do we will do very well. I don't believe that. I think we are going to do the same with less, and we are going to do that very well. We are going to work real hard to do that. But I don't see any slacking of it, Congressman, if that answers your question. I think we are going to be doing the same with less. General Odierno. I know we are out of time. If I could just add, the issue is let's take 2013; 2013, we were under continuing resolution with sequestration. And if you asked each one of us, we would tell you our requirements went up in 2013. That is the concern. So budget went down, forced by sequestration, and our requirements increased as the year went on. That is the conundrum that we are in right now, and that is my concern as we continue down this road. So, thank you, sir. Mr. Palazzo. And it is ours as well. Thank you, gentlemen. The Chairman. Thank you. Ms. Shea-Porter. Ms. Shea-Porter. Thank you. And I, too, would like to offer my condolences from the people of New Hampshire's First District. And I would like to say that while the sequester is absolutely devastating, I have concerns about what we are saying openly and letting people know, and I am amazed that probably more people abroad and our enemies know the impact more than the Members of Congress. And that is absolutely shameful. There is a bill that could cancel the sequester today if it would only come to the floor. But I am very, very concerned, as we all are, but the message doesn't seem to be leaving this chamber right now. So, while we are dealing with this, I would like to talk to all of you about the impact on the civilians, the impact on the members of the services and what appears to be the lack of impact on contractors right now. I know that, for the headquarter budgets, they are talking about 20 percent cuts for the civilians who work for the government and also seeing it in the budget. But I haven't heard that talk about contractors. So could each of you address that? I actually saw something that said contractors numbers or their profits hadn't seemed to drop along with the pay that dropped for some of the people who are serving our country. So I would like to address that, please. General Odierno. Thank you for the question. As part of the guidance the Secretary of the Army and I gave, as we were looking at the Army, the Army is looking actually at a 25 percent reduction in headquarters because we are trying to gain as much space. The first place to look, the guidance we gave, was with contractors, knowledge-based contractors we call them who do studies and other things, as well as other types of contractors that we have. Because we want to try to keep as much of the civilian force and our military force as possible. So we are absolutely looking at that as we move forward. That is one of the key pieces. And we have a study group that is coming back to us with recommendations that we expect will happen within the next several months. Ms. Shea-Porter. Do you expect that will help you save money? Because I know when they were asked, the contractors cost an average of about 2 and a half times more than a government employee. General Odierno. They do. The balance is they give a short- term capability. But, yes, it will save us money and allow us to invest in other places or not take cuts in other places. Ms. Shea-Porter. I am encouraged to hear that. Admiral. Admiral Greenert. Yes, ma'am. As I look out at the 2015 to 2022 timeframe, that SCMR piece, and we addressed this in our ALTPOM, we are looking at about a one-third reduction in overhead and that includes contractors. We have methodically, in partnership with our research development acquisition executive, Mr. Stackley, gone through and reduced support contracts. This has been quite a drill to go in there and peel apart where the money goes precisely. But that is $20 billion of a $60 billion that we are targeting. Now that is across a FYDP [Future Years Defense Plan], a 5-year plan. Overhead-wise, like Ray says, we are about the 28 percent on reduction of headquarters. That is not contractors, but it is overhead and headquarters reduction. General Welsh. Exactly the same ma'am. Contractor reductions will be at least the same if not greater than reductions in our civilian workforce. Ms. Shea-Porter. So you are targeting that. General Amos. Congresswoman I think we are all in sync on that. We are all reducing both civilian personnel in the long run as we go through the ALTPOM. In my service, we are reducing 28,000 Active Duty Marines, so there will be a commensurate civilian reduction. We don't know what that is going to be yet. But we are looking very seriously at our contractors. I would just like to make an anecdotal comment on civilians; as we have talked a lot about furloughs here today, we have talked about in essence keeping the faith. I think we are in danger of losing those wonderful, highly skilled professionals that my colleagues have talked about here today because of the furlough and then the anticipation of a government shutdown. And they will reach a point where they are going to look for employment elsewhere, whether it be in San Antonio; you are medical professional, whether you are a Ph.D. It became a point of faith in the United States Marine Corps as I looked at our civilian Marines, and I think we are in danger of losing an awful lot of talent if we continue to abuse them. Ms. Shea-Porter. I do, too. I thank you for saying that. We have the Portsmouth Naval Shipyard in our district, and the men and women who go there and serve this country every day deserve better than what they are seeing. We also have a National Guard. They deserve better. And so, across the whole spectrum, the men and women who serve this country deserve to know their paycheck will be there and they can count on us. And so far we have failed them. Thank you, and I yield back. The Chairman. Thank you. Ms. Duckworth. Ms. Duckworth. Thank you, Mr. Chairman. Admiral Greenert, I, too, join my colleagues in giving my condolences. And I will tell you I was very impressed by the actions of your personnel in helping one another survive that tragic situation. Admiral Greenert. Thank you, ma'am. I appreciate it. I know it is from the heart. Ms. Duckworth. Thank you. General Odierno, you and I have had this conversation before, and I just sort of would love for you to expand a little bit on the role of the Guard and Reserve. You have been very clear, and I appreciate it, in terms of defining a role for the Guard and Reserve, not only in a new strategic environment but as an operational force and also in the current budget climate. I don't have any military bases in my district, but I certainly have a lot of National Guardsmen and Reservists, and I also have a lot of military technicians suffering from the furloughs trying to keep those helicopters and those aircraft functional. And as we see in Colorado right now, the National Guard has really stepped up with those efforts. Could you speak a little bit, General, given the lower life cost of the Guardsmen and Reserve Components compared to Active Duty, could you speak a little bit to what extent or ratio you would like to see a reduction of the Active Component be in the relation to the Guard and Reserve? General Odierno. Sure thank you. So as I have testified, if we have to go to the full sequestration, there will be a 26 percent reduction in the Active Component, a 12 percent reduction in the National Guard, and an 8 percent, 9 percent reduction in U.S. Army Reserves. Now I want to go back to somewhat the question that Mr. Palazzo asked, the real reason is if I keep their structure, I am not going to be able to fund them as an operational Reserve. I can't afford the training to keep them as operational Reserve, which is what I want. So I have got to reduce their structure a little bit but not as much as the Active Component because I don't get as much savings. Now, the overall balance, though, I have to maintain is, obviously, they cost 33 percent of the Active Force, but their readiness is less than the Active Force so I got to keep that right balance. So I need the right amount of Guard. I need the right amount of Active Component, and I am very conscious of that as I work my way through this. So I have, in fact, taken more out of the Active Component because of that cost factor, but I have to take a little bit out of the Guard so I can continue to keep them and fund them as an operational Reserve. And so that is the balance that I am trying to achieve. There are some that say we should increase the Guard and further reduce the Active. To me, that is out of balance, and then we will not have the capability to respond the way we need to for contingency operations. So I am trying to find that right balance. Ms. Duckworth. Thank you. General Welsh, could you address that as well? General Welsh. Yes, ma'am. The cost is different, and you can save more capacity and force structure by putting into the Reserve Component over time, you just have to balance how far you can go in each mission areas, and we are looking at it by type aircraft even within those mission areas because you do hit a point where your operational capability or your ability to respond quickly are impacted. It is different in every mission from space to mobility to fighters; they are all different. And we are looking at each one. The other thing I think that is important for us to consider is the real benefit of a Reserve Component to the Nation is that you have this very experienced force over time that is available to respond quickly in any type of contingency, small or large. One of the most troubling things we are seeing right now is, over the last couple of years, a much diminished desire by people leaving the Active Air Force to go into the Reserve Component. Only 15 percent of those eligible are doing so over the last 2 years. That is much lower than traditionally. And if we get to the point where our Reserve Components are inexperienced, while they may be cheaper, they will not provide the operational Reserve that you need to be a valid fighting force as an entire total force. And so we have got to make sure we aren't doing things in the Active Component that keep people from becoming members of the Reserve Component. So we are looking at all that right now. We have actually got a very robust discussion going. The biggest issue is still exactly what are the cost factors in each of these areas. We decided on a model we are using for planning, but that model probably still needs to be refined a little. Ms. Duckworth. Can you speak a little bit to the role of military technicians in your Reserves and then also to the Guard? General Welsh. Yes, ma'am, they are essential. They are essentially, 4 days a week, a civilian member of the Air Force. Our civilian workforce is essential. We can't do our job without them. They are in virtually every mission area, and in some mission areas, they are the entire mission area, like the maintenance group I mentioned before in our training command. The same thing is true at Guard and Reserve units. That is what the dual status technicians do. They are fantastic. Ms. Duckworth. Thank you. We could end sequestration. We should end sequestration. And I don't think people realize that those military technicians are soldiers, airmen, folks who do both jobs, and if you are going to ask them to give up their jobs on the full-time side, they are not going to be there on the M-day side. I yield back. The Chairman. Thank you. Mr. Castro. Mr. Castro. Thank you, Mr. Chairman. Thank you, gentlemen, for your testimony. Admiral, my condolences for the tragedy in the Navy Yard, along with the other members. I represent San Antonio, Texas, of course, very important in the military, and I have a few questions about some of the operations there. The first one is, do we know what impact will another round of sequestration cuts have on the services provided at Wilford Hall Ambulatory Center? And can you address whether medical research performed at Wilford Hall will be impacted? General Welsh. Congressman, I can't give you an answer on the specific impact of sequestration at Wilford Hall, but I will get it to you. I am sorry, I just don't know the details of that. [The information referred to was not available at the time of printing.] Mr. Castro. No problem. The second one that, of course, concerns San Antonio, in my district, I have Lackland Air Force Base, is will sequestration affect any of the programs related to combating sexual assault in the military? General Welsh. No, sir. Mr. Castro. So those will be protected? General Welsh. We actually protected our civilian workforce involved in sexual assault, sexual assault response coordinators, a few victims advocates, et cetera, from furlough to prevent that from occurring and will continue to put that kind of emphasis on those programs. Mr. Castro. Those are my two questions. Thank you very much. I yield back. The Chairman. Thank you for your testimony, for your work and for the continued efforts that you make to live with these very restrictive budgetary problems that you are dealing with. I know that this is going to be an interesting week for us. We have to get a CR passed. We have to shortly get a debt ceiling limit increase. And I think every Member of Congress is taking these issues seriously, but there is 435, 434, maybe 433 Members now, and they come at it from, every one of those come from different directions. I know that the Armed Services Committee is keenly aware of the points that you bring up and I think very supportive of the military, and we are the largest committee in Congress, and maybe we can have some sway in some of these discussions. We haven't done so well so far. But maybe, going forward, we can. Again, thank you for your service. Please let the men and women you serve with know that we appreciate greatly their efforts and the things that they do. With that, this hearing is adjourned. [Whereupon, at 12:40 p.m., the committee was adjourned.] ======================================================================= A P P E N D I X September 18, 2013 ======================================================================= ======================================================================= PREPARED STATEMENTS SUBMITTED FOR THE RECORD September 18, 2013 ======================================================================= [GRAPHIC] [TIFF OMITTED] T2963.001 .eps[GRAPHIC] [TIFF OMITTED] T2963.002 .eps[GRAPHIC] [TIFF OMITTED] T2963.003 .eps[GRAPHIC] [TIFF OMITTED] T2963.004 .eps[GRAPHIC] [TIFF OMITTED] T2963.005 .eps[GRAPHIC] [TIFF OMITTED] T2963.006 .eps[GRAPHIC] [TIFF OMITTED] T2963.007 .eps[GRAPHIC] [TIFF OMITTED] T2963.008 .eps[GRAPHIC] [TIFF OMITTED] T2963.009 .eps[GRAPHIC] [TIFF OMITTED] T2963.010 .eps[GRAPHIC] [TIFF OMITTED] T2963.011 .eps[GRAPHIC] [TIFF OMITTED] T2963.012 .eps[GRAPHIC] [TIFF OMITTED] T2963.013 .eps[GRAPHIC] [TIFF OMITTED] T2963.052 .eps[GRAPHIC] [TIFF OMITTED] T2963.015 .eps[GRAPHIC] [TIFF OMITTED] T2963.016 .eps[GRAPHIC] [TIFF OMITTED] T2963.017 .eps[GRAPHIC] [TIFF OMITTED] T2963.018 .eps[GRAPHIC] [TIFF OMITTED] T2963.019 .eps[GRAPHIC] [TIFF OMITTED] T2963.020 .eps[GRAPHIC] [TIFF OMITTED] T2963.021 .eps[GRAPHIC] [TIFF OMITTED] T2963.022 .eps[GRAPHIC] [TIFF OMITTED] T2963.023 .eps[GRAPHIC] [TIFF OMITTED] T2963.024 .eps[GRAPHIC] [TIFF OMITTED] T2963.025 .eps[GRAPHIC] [TIFF OMITTED] T2963.026 .eps[GRAPHIC] [TIFF OMITTED] T2963.027 .eps[GRAPHIC] [TIFF OMITTED] T2963.028 .eps[GRAPHIC] [TIFF OMITTED] T2963.029 .eps[GRAPHIC] [TIFF OMITTED] T2963.030 .eps[GRAPHIC] [TIFF OMITTED] T2963.031 .eps[GRAPHIC] [TIFF OMITTED] T2963.032 .eps[GRAPHIC] [TIFF OMITTED] T2963.033 .eps[GRAPHIC] [TIFF OMITTED] T2963.034 .eps[GRAPHIC] [TIFF OMITTED] T2963.035 .eps[GRAPHIC] [TIFF OMITTED] T2963.036 .eps[GRAPHIC] [TIFF OMITTED] T2963.037 .eps[GRAPHIC] [TIFF OMITTED] T2963.038 .eps[GRAPHIC] [TIFF OMITTED] T2963.039 .eps[GRAPHIC] [TIFF OMITTED] T2963.040 .eps[GRAPHIC] [TIFF OMITTED] T2963.041 .eps[GRAPHIC] [TIFF OMITTED] T2963.042 .eps[GRAPHIC] [TIFF OMITTED] T2963.043 .eps[GRAPHIC] [TIFF OMITTED] T2963.044 .eps[GRAPHIC] [TIFF OMITTED] T2963.045 .eps[GRAPHIC] [TIFF OMITTED] T2963.046 .eps[GRAPHIC] [TIFF OMITTED] T2963.047 .eps[GRAPHIC] [TIFF OMITTED] T2963.048 .eps[GRAPHIC] [TIFF OMITTED] T2963.049 .eps[GRAPHIC] [TIFF OMITTED] T2963.050 .eps[GRAPHIC] [TIFF OMITTED] T2963.051 .eps? ======================================================================= QUESTIONS SUBMITTED BY MEMBERS POST HEARING September 18, 2013 ======================================================================= QUESTIONS SUBMITTED BY MR. LANGEVIN Mr. Langevin. As DOD implements the Secretary's planned 20% cuts to headquarters, how will the Department balance these cuts among contractor, military, and civilian employees? Does the Department have sufficient visibility into the size and cost of the contractor workforce in headquarters roles? General Odierno. [The information was not available at the time of printing.] Mr. Langevin. As you are all aware, defending investments in research and development can be very difficult since the investments, while crucial to future capabilities, are necessarily speculative in nature, and don't have much of the bureaucratic support or immediate impact of, say, an increase or decrease in an active procurement program. Can each of you speak to the ways in which the services and the Department have valued R&D and STEM investments in your budgetary deliberations, as well as the pressures that sequestration's budgetary bottom lines and across-the-board nature have placed on those activities? How has the Department weighed the risk factors of decreasing or increasing R&D and STEM relative to other investments, particularly given the hard budgetary futures that you are examining? General Odierno. [The information was not available at the time of printing.] Mr. Langevin. Can each of you address the effects of continued sequestration on cyberspace activities and how you intend to manage the fiscal pressures given increasing demands in this regime, particularly in light of the reports of CYBERCOM's plan to grow the number of cyber operators? General Odierno. [The information was not available at the time of printing.] Mr. Langevin. Admiral, I appreciate the emphasis you placed in your testimony on the critical importance in any budget scenario of our undersea capabilities--Virginia-class subs, the Virginia Payload Module, and the Ohio Replacement. Since, as you know, I strongly agree with that sentiment, it was all the more jarring when you stated on September 5th that ``shipbuilding will drop in fiscal 2014,'' and specifically that you envisioned ``the loss of a littoral combat ship, an afloat-forward staging base and advanced procurement for a Virginia- class submarine and a carrier overhaul.'' I'm assuming that the reference there was to a FY15 boat per your testimony, but could you speak to how would this affect the proposed block buy? Is this an effect of the need for an NDAA and an appropriations bill, of the reduced spending levels associated with sequestration, or of both, and could incremental funding or some other mechanism be used to mitigate? Admiral Greenert. [The information was not available at the time of printing.] Mr. Langevin. I'm also deeply concerned about the reference in your testimony to a delay in the procurement of the first SSBN(X) by a year. As we've heard over and over, these boats are not just a critical Navy need, but a national strategic requirement as the most survivable part of our deterrent. Can you elaborate as to the effects of any further delay in the program, and what mitigating steps would, at a minimum, be needed? Admiral Greenert. [The information was not available at the time of printing.] Mr. Langevin. As DOD implements the Secretary's planned 20% cuts to headquarters, how will the Department balance these cuts among contractor, military, and civilian employees? Does the Department have sufficient visibility into the size and cost of the contractor workforce in headquarters roles? Admiral Greenert. [The information was not available at the time of printing.] Mr. Langevin. As you are all aware, defending investments in research and development can be very difficult since the investments, while crucial to future capabilities, are necessarily speculative in nature, and don't have much of the bureaucratic support or immediate impact of, say, an increase or decrease in an active procurement program. Can each of you speak to the ways in which the services and the Department have valued R&D and STEM investments in your budgetary deliberations, as well as the pressures that sequestration's budgetary bottom lines and across-the-board nature have placed on those activities? How has the Department weighed the risk factors of decreasing or increasing R&D and STEM relative to other investments, particularly given the hard budgetary futures that you are examining? Admiral Greenert. [The information was not available at the time of printing.] Mr. Langevin. Can each of you address the effects of continued sequestration on cyberspace activities and how you intend to manage the fiscal pressures given increasing demands in this regime, particularly in light of the reports of CYBERCOM's plan to grow the number of cyber operators? Admiral Greenert. [The information was not available at the time of printing.] Mr. Langevin. As DOD implements the Secretary's planned 20% cuts to headquarters, how will the Department balance these cuts among contractor, military, and civilian employees? Does the Department have sufficient visibility into the size and cost of the contractor workforce in headquarters roles? General Welsh. [The information was not available at the time of printing.] Mr. Langevin. As you are all aware, defending investments in research and development can be very difficult since the investments, while crucial to future capabilities, are necessarily speculative in nature, and don't have much of the bureaucratic support or immediate impact of, say, an increase or decrease in an active procurement program. Can each of you speak to the ways in which the services and the Department have valued R&D and STEM investments in your budgetary deliberations, as well as the pressures that sequestration's budgetary bottom lines and across-the-board nature have placed on those activities? How has the Department weighed the risk factors of decreasing or increasing R&D and STEM relative to other investments, particularly given the hard budgetary futures that you are examining? General Welsh. [The information was not available at the time of printing.] Mr. Langevin. Can each of you address the effects of continued sequestration on cyberspace activities and how you intend to manage the fiscal pressures given increasing demands in this regime, particularly in light of the reports of CYBERCOM's plan to grow the number of cyber operators? General Welsh. [The information was not available at the time of printing.] Mr. Langevin. As DOD implements the Secretary's planned 20% cuts to headquarters, how will the Department balance these cuts among contractor, military, and civilian employees? Does the Department have sufficient visibility into the size and cost of the contractor workforce in headquarters roles? General Amos. [The information was not available at the time of printing.] Mr. Langevin. As you are all aware, defending investments in research and development can be very difficult since the investments, while crucial to future capabilities, are necessarily speculative in nature, and don't have much of the bureaucratic support or immediate impact of, say, an increase or decrease in an active procurement program. Can each of you speak to the ways in which the services and the Department have valued R&D and STEM investments in your budgetary deliberations, as well as the pressures that sequestration's budgetary bottom lines and across-the-board nature have placed on those activities? How has the Department weighed the risk factors of decreasing or increasing R&D and STEM relative to other investments, particularly given the hard budgetary futures that you are examining? General Amos. [The information was not available at the time of printing.] Mr. Langevin. Can each of you address the effects of continued sequestration on cyberspace activities and how you intend to manage the fiscal pressures given increasing demands in this regime, particularly in light of the reports of CYBERCOM's plan to grow the number of cyber operators? General Amos. [The information was not available at the time of printing.] ______ QUESTIONS SUBMITTED BY MS. BORDALLO Ms. Bordallo. I would like to know more about SCMR results with respect to the Asia-Pacific rebalance. Can you please elaborate on the impacts of competing resources with respect to our commitment to the Pacific region? I am concerned that our commitment may appear to be nothing more than rhetoric to our allies in the region. I have had numerous meetings with senior officials from Asia-Pacific region that have valid concerns. I want to know that we will begin to see tangible actions that support our statements emphasizing our support in the region. General Odierno. [The information was not available at the time of printing.] Ms. Bordallo. I supported an Andrews amendment to the FY14 NDAA at the House markup to extend a cap on service contracting by two additional years. I understand that GAO staff briefed Congressional staff last week, and they reported that the Department spent at least $1.34 billion more than allowed under law for service contracts and that there is little evidence that the Department is making the specific cuts in service contract spending required by the law. Worse, it has been speculated that elimination of the caps' loopholes would result in even more overspending. Perhaps most concerning is that DOD officials acknowledged to GAO a lack of fiscal controls that would allow them to satisfactorily comply with the cap. How can we achieve greater transparency over service contract costs so that we can impose and actually enforce caps and cuts in service contract spending? Given this GAO report, is there any reason to think that DOD will actually cut service contract spending as the Department downsizes, as opposed to disproportionately cutting spending on civilians and military? General Odierno. [The information was not available at the time of printing.] Ms. Bordallo. In recent correspondence, House Defense Appropriations Subcommittee Chairman Young expressed concern to Secretary Hagel that the Pentagon's planned cuts for headquarters were focused disproportionately on the civilians and the military, but not on the contractors. That doesn't make any sense. In June, Comptroller Hale conceded in Senate testimony that contractors cost two to three times civilians. What assurance can you provide that the headquarters cuts and cuts generally undertaken by the Department will take into account contractors as well as civilians and military? The Department was required in 2007 to establish an inventory of service contracts in order to better understand the cost and size of the contractor workforce. When will that inventory be complete and how is it being used to inform the Pentagon's budget-cutting efforts? For example, how many contractors work in headquarters and how much do they cost? Presumably, the Pentagon wants to cut the contractor workforce by the same 20% as it intends to cut the civilian and military workforces? General Odierno. [The information was not available at the time of printing.] Ms. Bordallo. The size and cost of military and civilian personnel in your component's management headquarters workforce are known. How many contractor employees are included in your component's management headquarters workforce, what is their total cost, and what is the average cost of a contractor employee in your component's management headquarters workforce? Will your component's answers be based on the inventory of contract services? Are your component's answers to those questions regarding the size and cost of service contractors reliable, comprehensive, and well-informed? If not, how can your component properly determine the extent to which your component should reduce its reliance on contractor personnel? General Odierno. [The information was not available at the time of printing.] Ms. Bordallo. Both the Congress and the Administration have identified instances in which contractor personnel are inappropriately performing functions that are inherently governmental, closely associated with inherently governmental, and critical. Will your component take into account instances in which contractor personnel in the management headquarters workforce should be reduced because they are performing inappropriate functions? General Odierno. [The information was not available at the time of printing.] Ms. Bordallo. In recent testimony before the Senate Defense Appropriations Subcommittee, the Secretary and the Comptroller agreed that contractors are significantly more expensive than civilian personnel, particularly for the provision of long-term services. To what extent will your component generate savings in management headquarters workforce spending through insourcing, consistent with 10 USC 2463? General Odierno. [The information was not available at the time of printing.] Ms. Bordallo. Are non-civilian personnel involved in making recommendations for reductions in total headquarters budgets? If so, how have the inevitable conflicts of interests been addressed? General Odierno. [The information was not available at the time of printing.] Ms. Bordallo. To what extent does your component have a policy of reviewing service contracts for savings when confronted with a requirement to furlough civilian personnel with the objective of using savings from service contracts (e.g., cancelling low-priority contracts or imposing deductive changes on such contracts) to offset the need to impose furloughs? If your component engaged in such efforts in FY13, when did such reviews occur, and what were the results of those reviews? General Odierno. [The information was not available at the time of printing.] Ms. Bordallo. The Army's historic leadership on the inventory of contract services does the Army great credit. Taxpayers have a significant interest in the inventory finally being implemented. Is the Army continuing to fulfill its commitment to assist OSD in leveraging the Contract Manpower Reporting Allocation for implementation across the Department? And is OSD continuing to facilitate this effort? Is the Army using the significant cost data it has collected already to inform its performance decisions, consistent with the DOD Instruction 7041.04? And is the Army using the cost data and the Plan for Documentation of Contractors for budget projections? General Odierno. [The information was not available at the time of printing.] Ms. Bordallo. Section 808 of the FY12 National Defense Authorization Act imposed a cap on the amount of money that could be spent on service contracts in FY12 and FY13. To what extent in FY12 did the Army over-execute spending on service contracts and under-execute spending on civilian personnel? Will the Army be able to improve upon that performance in FY13? General Odierno. [The information was not available at the time of printing.] Ms. Bordallo. In an April 1 letter to the American Federation of Government Employees, Secretary McHugh wrote: ``. . . I have temporarily adjusted certain of the Army's restrictions on the use of (Borrowed Military Manpower, BMM) . . . Please be assured that my action is intended only as a short-term solution--the temporary modification of the Army's BMM policy to address emergency requirements associated with the current budgetary situation does not contemplate the permanent conversion to military performance of work presently allocated to civilian employees. Further, Army prerequisites to the use of BMM remain compliant with the 2012 Under Secretary of Defense for Personnel and Readiness policy.'' Will the Army continue to use BMM consistent with the commitments Secretary McHugh made in his correspondence--principally, that any use of BMM will be temporary because of emergency budget requirements and that Army policy will be compliant with the 2012 OSD policy? General Odierno. [The information was not available at the time of printing.] Ms. Bordallo. According to the DOD Deputy Secretary's July 31 memorandum, the OSD Organizational Review is intended to achieve a 20% cut in ``total headquarters budgets.'' However, in the Army's memorandum of August 14, you and Secretary McHugh write that it is necessary ``to determine how to reduce Army headquarters (both institutional and operational, at the 2-star and above levels) in the aggregate by 25%.'' The 20% cut called for by the Deputy Secretary is completely arbitrary, of course, but what analysis supports even greater cuts in the Army than in the other components? General Odierno. [The information was not available at the time of printing.] Ms. Bordallo. Your August 14 memorandum directs the establishment of ``specific targets for each focus area in dollars and full-time equivalents (FTE) . . .'' However, your memorandum never uses the word ``contractor.'' Even the Deputy Secretary's July 31 memorandum acknowledges that reductions must include service contractor personnel: ``Total headquarters budgets include government civilian personnel who work at headquarters and associated costs including contract services . . .'' How will the Army be taking into account the size and cost of contractor personnel in the management headquarters workforce in the development of recommendations? General Odierno. [The information was not available at the time of printing.] Ms. Bordallo. I would like to know more about SCMR results with respect to the Asia-Pacific rebalance. Can you please elaborate on the impacts of competing resources with respect to our commitment to the Pacific region? I am concerned that our commitment may appear to be nothing more than rhetoric to our allies in the region. I have had numerous meetings with senior officials from Asia-Pacific region that have valid concerns. I want to know that we will begin to see tangible actions that support our statements emphasizing our support in the region. Ms. Bordallo. I would like to know more about SCMR results with respect to the Asia-Pacific rebalance. Can you please elaborate on the impacts of competing resources with respect to our commitment to the Pacific region? I am concerned that our commitment may appear to be nothing more than rhetoric to our allies in the region. I have had numerous meetings with senior officials from Asia-Pacific region that have valid concerns. I want to know that we will begin to see tangible actions that support our statements emphasizing our support in the region. Admiral Greenert. [The information was not available at the time of printing.] Ms. Bordallo. I supported an Andrews amendment to the FY14 NDAA at the House markup to extend a cap on service contracting by two additional years. I understand that GAO staff briefed Congressional staff last week, and they reported that the Department spent at least $1.34 billion more than allowed under law for service contracts and that there is little evidence that the Department is making the specific cuts in service contract spending required by the law. Worse, it has been speculated that elimination of the caps' loopholes would result in even more overspending. Perhaps most concerning is that DOD officials acknowledged to GAO a lack of fiscal controls that would allow them to satisfactorily comply with the cap. How can we achieve greater transparency over service contract costs so that we can impose and actually enforce caps and cuts in service contract spending? Given this GAO report, is there any reason to think that DOD will actually cut service contract spending as the Department downsizes, as opposed to disproportionately cutting spending on civilians and military? Admiral Greenert. [The information was not available at the time of printing.] Ms. Bordallo. In recent correspondence, House Defense Appropriations Subcommittee Chairman Young expressed concern to Secretary Hagel that the Pentagon's planned cuts for headquarters were focused disproportionately on the civilians and the military, but not on the contractors. That doesn't make any sense. In June, Comptroller Hale conceded in Senate testimony that contractors cost two to three times civilians. What assurance can you provide that the headquarters cuts and cuts generally undertaken by the Department will take into account contractors as well as civilians and military? The Department was required in 2007 to establish an inventory of service contracts in order to better understand the cost and size of the contractor workforce. When will that inventory be complete and how is it being used to inform the Pentagon's budget-cutting efforts? For example, how many contractors work in headquarters and how much do they cost? Presumably, the Pentagon wants to cut the contractor workforce by the same 20% as it intends to cut the civilian and military workforces? Admiral Greenert. [The information was not available at the time of printing.] Ms. Bordallo. The size and cost of military and civilian personnel in your component's management headquarters workforce are known. How many contractor employees are included in your component's management headquarters workforce, what is their total cost, and what is the average cost of a contractor employee in your component's management headquarters workforce? Will your component's answers be based on the inventory of contract services? Are your component's answers to those questions regarding the size and cost of service contractors reliable, comprehensive, and well-informed? If not, how can your component properly determine the extent to which your component should reduce its reliance on contractor personnel? Admiral Greenert. [The information was not available at the time of printing.] Ms. Bordallo. Both the Congress and the Administration have identified instances in which contractor personnel are inappropriately performing functions that are inherently governmental, closely associated with inherently governmental, and critical. Will your component take into account instances in which contractor personnel in the management headquarters workforce should be reduced because they are performing inappropriate functions? Admiral Greenert. [The information was not available at the time of printing.] Ms. Bordallo. In recent testimony before the Senate Defense Appropriations Subcommittee, the Secretary and the Comptroller agreed that contractors are significantly more expensive than civilian personnel, particularly for the provision of long-term services. To what extent will your component generate savings in management headquarters workforce spending through insourcing, consistent with 10 USC 2463? Admiral Greenert. [The information was not available at the time of printing.] Ms. Bordallo. Are non-civilian personnel involved in making recommendations for reductions in total headquarters budgets? If so, how have the inevitable conflicts of interests been addressed? Admiral Greenert. [The information was not available at the time of printing.] Ms. Bordallo. To what extent does your component have a policy of reviewing service contracts for savings when confronted with a requirement to furlough civilian personnel with the objective of using savings from service contracts (e.g., cancelling low-priority contracts or imposing deductive changes on such contracts) to offset the need to impose furloughs? If your component engaged in such efforts in FY13, when did such reviews occur, and what were the results of those reviews? Admiral Greenert. [The information was not available at the time of printing.] General Welsh. [The information was not available at the time of printing.] Ms. Bordallo. I know the Air Force has been challenged with modernization needs. Recent world events, and the desire to minimize boots on the ground, highlight the need for a Long Range Strike capability. As a co-chair of the House Long Range Strike Caucus, I want to know how you intend to protect funding for the NextGen bomber? Can you elaborate on the importance of this program to the future of the Air Force? General Welsh. [The information was not available at the time of printing.] Ms. Bordallo. I supported an Andrews amendment to the FY14 NDAA at the House markup to extend a cap on service contracting by two additional years. I understand that GAO staff briefed Congressional staff last week, and they reported that the Department spent at least $1.34 billion more than allowed under law for service contracts and that there is little evidence that the Department is making the specific cuts in service contract spending required by the law. Worse, it has been speculated that elimination of the caps' loopholes would result in even more overspending. Perhaps most concerning is that DOD officials acknowledged to GAO a lack of fiscal controls that would allow them to satisfactorily comply with the cap. How can we achieve greater transparency over service contract costs so that we can impose and actually enforce caps and cuts in service contract spending? Given this GAO report, is there any reason to think that DOD will actually cut service contract spending as the Department downsizes, as opposed to disproportionately cutting spending on civilians and military? General Welsh. [The information was not available at the time of printing.] Ms. Bordallo. In recent correspondence, House Defense Appropriations Subcommittee Chairman Young expressed concern to Secretary Hagel that the Pentagon's planned cuts for headquarters were focused disproportionately on the civilians and the military, but not on the contractors. That doesn't make any sense. In June, Comptroller Hale conceded in Senate testimony that contractors cost two to three times civilians. What assurance can you provide that the headquarters cuts and cuts generally undertaken by the Department will take into account contractors as well as civilians and military? The Department was required in 2007 to establish an inventory of service contracts in order to better understand the cost and size of the contractor workforce. When will that inventory be complete and how is it being used to inform the Pentagon's budget-cutting efforts? For example, how many contractors work in headquarters and how much do they cost? Presumably, the Pentagon wants to cut the contractor workforce by the same 20% as it intends to cut the civilian and military workforces? General Welsh. [The information was not available at the time of printing.] Ms. Bordallo. The size and cost of military and civilian personnel in your component's management headquarters workforce are known. How many contractor employees are included in your component's management headquarters workforce, what is their total cost, and what is the average cost of a contractor employee in your component's management headquarters workforce? Will your component's answers be based on the inventory of contract services? Are your component's answers to those questions regarding the size and cost of service contractors reliable, comprehensive, and well-informed? If not, how can your component properly determine the extent to which your component should reduce its reliance on contractor personnel? General Welsh. [The information was not available at the time of printing.] Ms. Bordallo. Both the Congress and the Administration have identified instances in which contractor personnel are inappropriately performing functions that are inherently governmental, closely associated with inherently governmental, and critical. Will your component take into account instances in which contractor personnel in the management headquarters workforce should be reduced because they are performing inappropriate functions? General Welsh. [The information was not available at the time of printing.] Ms. Bordallo. In recent testimony before the Senate Defense Appropriations Subcommittee, the Secretary and the Comptroller agreed that contractors are significantly more expensive than civilian personnel, particularly for the provision of long-term services. To what extent will your component generate savings in management headquarters workforce spending through insourcing, consistent with 10 USC 2463? General Welsh. [The information was not available at the time of printing.] Ms. Bordallo. Are non-civilian personnel involved in making recommendations for reductions in total headquarters budgets? If so, how have the inevitable conflicts of interests been addressed? General Welsh. [The information was not available at the time of printing.] Ms. Bordallo. To what extent does your component have a policy of reviewing service contracts for savings when confronted with a requirement to furlough civilian personnel with the objective of using savings from service contracts (e.g., cancelling low-priority contracts or imposing deductive changes on such contracts) to offset the need to impose furloughs? If your component engaged in such efforts in FY13, when did such reviews occur, and what were the results of those reviews? General Welsh. [The information was not available at the time of printing.] Ms. Bordallo. I would like to know more about SCMR results with respect to the Asia-Pacific rebalance. Can you please elaborate on the impacts of competing resources with respect to our commitment to the Pacific region? I am concerned that our commitment may appear to be nothing more than rhetoric to our allies in the region. I have had numerous meetings with senior officials from Asia-Pacific region that have valid concerns. I want to know that we will begin to see tangible actions that support our statements emphasizing our support in the region. General Amos. [The information was not available at the time of printing.] Ms. Bordallo. I supported an Andrews amendment to the FY14 NDAA at the House markup to extend a cap on service contracting by two additional years. I understand that GAO staff briefed Congressional staff last week, and they reported that the Department spent at least $1.34 billion more than allowed under law for service contracts and that there is little evidence that the Department is making the specific cuts in service contract spending required by the law. Worse, it has been speculated that elimination of the caps' loopholes would result in even more overspending. Perhaps most concerning is that DOD officials acknowledged to GAO a lack of fiscal controls that would allow them to satisfactorily comply with the cap. How can we achieve greater transparency over service contract costs so that we can impose and actually enforce caps and cuts in service contract spending? Given this GAO report, is there any reason to think that DOD will actually cut service contract spending as the Department downsizes, as opposed to disproportionately cutting spending on civilians and military? General Amos. [The information was not available at the time of printing.] Ms. Bordallo. In recent correspondence, House Defense Appropriations Subcommittee Chairman Young expressed concern to Secretary Hagel that the Pentagon's planned cuts for headquarters were focused disproportionately on the civilians and the military, but not on the contractors. That doesn't make any sense. In June, Comptroller Hale conceded in Senate testimony that contractors cost two to three times civilians. What assurance can you provide that the headquarters cuts and cuts generally undertaken by the Department will take into account contractors as well as civilians and military? The Department was required in 2007 to establish an inventory of service contracts in order to better understand the cost and size of the contractor workforce. When will that inventory be complete and how is it being used to inform the Pentagon's budget-cutting efforts? For example, how many contractors work in headquarters and how much do they cost? Presumably, the Pentagon wants to cut the contractor workforce by the same 20% as it intends to cut the civilian and military workforces? General Amos. [The information was not available at the time of printing.] Ms. Bordallo. The size and cost of military and civilian personnel in your component's management headquarters workforce are known. How many contractor employees are included in your component's management headquarters workforce, what is their total cost, and what is the average cost of a contractor employee in your component's management headquarters workforce? Will your component's answers be based on the inventory of contract services? Are your component's answers to those questions regarding the size and cost of service contractors reliable, comprehensive, and well-informed? If not, how can your component properly determine the extent to which your component should reduce its reliance on contractor personnel? General Amos. [The information was not available at the time of printing.] Ms. Bordallo. Both the Congress and the Administration have identified instances in which contractor personnel are inappropriately performing functions that are inherently governmental, closely associated with inherently governmental, and critical. Will your component take into account instances in which contractor personnel in the management headquarters workforce should be reduced because they are performing inappropriate functions? General Amos. [The information was not available at the time of printing.] Ms. Bordallo. In recent testimony before the Senate Defense Appropriations Subcommittee, the Secretary and the Comptroller agreed that contractors are significantly more expensive than civilian personnel, particularly for the provision of long-term services. To what extent will your component generate savings in management headquarters workforce spending through insourcing, consistent with 10 USC 2463? General Amos. [The information was not available at the time of printing.] Ms. Bordallo. Are non-civilian personnel involved in making recommendations for reductions in total headquarters budgets? If so, how have the inevitable conflicts of interests been addressed? General Amos. [The information was not available at the time of printing.] Ms. Bordallo. To what extent does your component have a policy of reviewing service contracts for savings when confronted with a requirement to furlough civilian personnel with the objective of using savings from service contracts (e.g., cancelling low-priority contracts or imposing deductive changes on such contracts) to offset the need to impose furloughs? If your component engaged in such efforts in FY13, when did such reviews occur, and what were the results of those reviews? General Amos. [The information was not available at the time of printing.] ______ QUESTIONS SUBMITTED BY MR. SHUSTER Mr. Shuster. Why is the Army terminating the Modernization Thru Spare Program (PAC-2 convergence to GEM-T) in FY13 when the Average Per Unit Cost (APU) is $560K to upgrade an existing asset to GEM-T Configuration compared to a new PAC-3 Procurement at $3.3M+ during these times of great fiscal austerity? General Odierno. [The information was not available at the time of printing.] Mr. Shuster. Sequestration resulted in 6 days of unpaid furlough for DOD civilians. Even though this was not as harsh as the original predicted 22 days, these civilians lost faith and trust in our leadership leaving morale at an all-time low. What is being done to blunt the effects of possible future furloughs as the highest quality personnel of our civilian workforce are already seeking employment in the private sector? More specifically, how are we going to preserve the competent, skilled workforce who will be needed to reset, maintain and modernize an ever-growing backlog at our depots and arsenals? General Odierno. [The information was not available at the time of printing.] Mr. Shuster. Sequestration resulted in 6 days of unpaid furlough for DOD civilians. Even though this was not as harsh as the original predicted 22 days, these civilians lost faith and trust in our leadership leaving morale at an all-time low. What is being done to blunt the effects of possible future furloughs as the highest quality personnel of our civilian workforce are already seeking employment in the private sector? More specifically, how are we going to preserve the competent, skilled workforce who will be needed to reset, maintain and modernize an ever-growing backlog at our depots and arsenals? Admiral Greenert. [The information was not available at the time of printing.] Mr. Shuster. Sequestration resulted in 6 days of unpaid furlough for DOD civilians. Even though this was not as harsh as the original predicted 22 days, these civilians lost faith and trust in our leadership leaving morale at an all-time low. What is being done to blunt the effects of possible future furloughs as the highest quality personnel of our civilian workforce are already seeking employment in the private sector? More specifically, how are we going to preserve the competent, skilled workforce who will be needed to reset, maintain and modernize an ever-growing backlog at our depots and arsenals? General Welsh. [The information was not available at the time of printing.] Mr. Shuster. Sequestration resulted in 6 days of unpaid furlough for DOD civilians. Even though this was not as harsh as the original predicted 22 days, these civilians lost faith and trust in our leadership leaving morale at an all-time low. What is being done to blunt the effects of possible future furloughs as the highest quality personnel of our civilian workforce are already seeking employment in the private sector? More specifically, how are we going to preserve the competent, skilled workforce who will be needed to reset, maintain and modernize an ever-growing backlog at our depots and arsenals? General Amos. [The information was not available at the time of printing.] ______ QUESTIONS SUBMITTED BY MR. LAMBORN Mr. Lamborn. General Welsh, some recent internal Pentagon reviews have discussed delaying the next procurement of Space Based Infrared Systems and Advanced Extremely High Frequency satellites. With long development timelines, and aging on-orbit constellations, how do you ensure you will continue to provide these critical capabilities to the warfighter? What is the risk if you are unable to provide missile warning and secure communication capabilities? General Welsh. [The information was not available at the time of printing.] ______ QUESTIONS SUBMITTED BY MR. BARBER Mr. Barber. General Welsh, can you please provide data on the number of close air support missions conducted by airframe for Operations Iraqi Freedom and Enduring Freedom. Include data of missions by airframe that were ``danger close'' in support of ``troops in contact.'' Where the data exist, include the type of control used to execute the close air support mission. General Welsh. [The information was not available at the time of printing.] Mr. Barber. General Welsh, in public, Army and Marine commanders have advocated for maintaining close air support capability, specifically the A-10, within the Air Force. In proposing to divest the Air Force of the entire fleet of A-10s, have the sister service chiefs been officially sought for comment on the proposed divestiture and loss of capability? If so, what have their responses been? General Welsh. [The information was not available at the time of printing.] Mr. Barber. General Welsh, has the Air Force conducted relevant simulations to ensure the F-35 can appropriately replace the A-10's role in close air support, combat search and rescue (CSAR) support, strike coordination and recon (SCAR), and as a forward air controller (airborne)? General Welsh. [The information was not available at the time of printing.] Mr. Barber. General Welsh, in recent months, it has been brought to my attention that the Air Force is considering transferring the Combat Search and Rescue (CSAR) mission from the Air Combat Command (ACC) to Air Force Special Operations Command (AFSOC). The transition would also change the primary CSAR aircraft from the HH-60 to the CV-22 Osprey. Members within the CSAR community have expressed concern that the CV-22 Osprey is wholly unsuited for the CSAR mission given the tremendous downdraft created by the airframe in hover mode. Has the Air Force conducted appropriate, comparative simulations and testing to ensure the CV-22 is the best airframe to conduct the CSAR mission? Please provide the results of the simulation and testing. General Welsh. [The information was not available at the time of printing.] ______ QUESTION SUBMITTED BY MS. DUCKWORTH Ms. Duckworth. Due to sequestration, the Air Force recently cancelled its SpaceFence program with no indication of when or if at all it will resume the program or if it will begin to build the next- generation program. Can you address the strategic significance of a loss of this kind? General Welsh. [The information was not available at the time of printing.] ______ QUESTIONS SUBMITTED BY MR. RUNYAN Mr. Runyan. General Welsh, no one needs to remind you of the importance of our space systems to the warfighter. In light of the criticality of these systems, can you describe the importance of space situational awareness? And also, please describe how the future Space Fence will contribute to that mission, and how that program is affected by the Strategic Choices and Management Review. General Welsh. [The information was not available at the time of printing.] Mr. Runyan. General Welsh, if we know the warfighter needs the Space Fence, why are is the Department delaying the acquisition of a critical capability? It would seem that we need to find the money elsewhere, rather than delay this important program. General Welsh. [The information was not available at the time of printing.] Mr. Runyan. General Welsh, I have been hearing rumblings that one of the platforms you are looking at cutting completely is the KC-10 tanker. This was also included as part of an Air Force Times article earlier this week: ``AF Considers Scrapping A-10s, KC-10s, F-15Cs, CSAR Helos.'' The KC-10 platform has more than proved itself a workhorse in support of air refueling in Iraq, Afghanistan, homeland defense and other missions as called upon. It can refuel Air Force, Navy, and international military aircraft with its dual boom and hose-and-drogue systems. I am proud to have Joint Base McGuire-Dix-Lakehurst (JB MDL) in my District, which as you know is home to the KC-10, supporting the Northeast Tanker Corridor and various overseas deployments. With the new tanker coming online slower than expected, and the fact that there is no decrease in refueling demand, for the record what are your plans for this critical platform? Is there programmed funding in FY15 in support of this vital refueling asset? I would like to meet with you personally on this issue in the near future. General Welsh. [The information was not available at the time of printing.]