[House Hearing, 116 Congress] [From the U.S. Government Publishing Office] [H.A.S.C. No. 116-71] HEARING ON NATIONAL DEFENSE AUTHORIZATION ACT FOR FISCAL YEAR 2021 AND OVERSIGHT OF PREVIOUSLY AUTHORIZED PROGRAMS BEFORE THE COMMITTEE ON ARMED SERVICES HOUSE OF REPRESENTATIVES ONE HUNDRED SIXTEENTH CONGRESS SECOND SESSION __________ SUBCOMMITTEE ON STRATEGIC FORCES HEARING ON FISCAL YEAR 2021 BUDGET REQUEST FOR NUCLEAR FORCES AND ATOMIC ENERGY DEFENSE ACTIVITIES __________ HEARING HELD MARCH 3, 2020 [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] ______ U.S. GOVERNMENT PUBLISHING OFFICE 41-409 WASHINGTON : 2021 SUBCOMMITTEE ON STRATEGIC FORCES JIM COOPER, Tennessee, Chairman SUSAN A. DAVIS, California MICHAEL R. TURNER, Ohio RICK LARSEN, Washington JOE WILSON, South Carolina JOHN GARAMENDI, California ROB BISHOP, Utah JACKIE SPEIER, California MIKE ROGERS, Alabama SETH MOULTON, Massachusetts MO BROOKS, Alabama SALUD O. CARBAJAL, California BRADLEY BYRNE, Alabama RO KHANNA, California SCOTT DesJARLAIS, Tennessee WILLIAM R. KEATING, Massachusetts LIZ CHENEY, Wyoming KENDRA S. HORN, Oklahoma, Vice Chair Grant Schneider, Professional Staff Member Sarah Mineiro, Professional Staff Member Zach Taylor, Clerk C O N T E N T S ---------- Page STATEMENTS PRESENTED BY MEMBERS OF CONGRESS Cooper, Hon. Jim, a Representative from Tennessee, Chairman, Subcommittee on Strategic Forces............................... 1 Turner, Hon. Michael R., a Representative from Ohio, Ranking Member, Subcommittee on Strategic Forces....................... 1 WITNESSES Bawden, Allison B., Director, Natural Resources and Environment Team, Government Accountability Office......................... 10 Clark, Lt Gen Richard M., USAF, Deputy Chief of Staff for Strategic Deterrence and Nuclear Integration, Department of the Air Force...................................................... 8 Gordon-Hagerty, Hon. Lisa E., Administrator, National Nuclear Security Administration........................................ 3 Mercado, Victorino G., Performing the Duties of Assistant Secretary of Defense for Strategy, Plans, and Capabilities, U.S. Department of Defense..................................... 5 Wolfe, VADM Johnny R., Jr., USN, Director, Strategic Systems Programs, Department of the Navy............................... 6 APPENDIX Prepared Statements: Bawden, Allison B............................................ 86 Clark, Lt Gen Richard M...................................... 76 Cooper, Hon. Jim............................................. 31 Gordon-Hagerty, Hon. Lisa E.................................. 32 Mercado, Victorino G......................................... 49 Wolfe, VADM Johnny R., Jr.................................... 64 Documents Submitted for the Record: [There were no Documents submitted.] Witness Responses to Questions Asked During the Hearing: [There were no Questions submitted during the hearing.] Questions Submitted by Members Post Hearing: [There were no Questions submitted post hearing.] FISCAL YEAR 2021 BUDGET REQUEST FOR NUCLEAR FORCES AND ATOMIC ENERGY DEFENSE ACTIVITIES ---------- House of Representatives, Committee on Armed Services, Subcommittee on Strategic Forces, Washington, DC, Tuesday, March 3, 2020. The subcommittee met, pursuant to call, at 2:29 p.m., in room 2212, Rayburn House Office Building, Hon. Jim Cooper (chairman of the subcommittee) presiding. OPENING STATEMENT OF HON. JIM COOPER, A REPRESENTATIVE FROM TENNESSEE, CHAIRMAN, SUBCOMMITTEE ON STRATEGIC FORCES Mr. Cooper. The subcommittee will come to order. We would like to welcome the distinguished guest witnesses we have today: The Honorable Lisa Gordon-Hagerty; Victorino Mercado, Performing the Duties of Assistant Secretary of Defense--that has to be the longest title I have ever seen; Vice Admiral Johnny Wolfe; Lieutenant General Richard Clark; and Allison Bawden of the GAO [Government Accountability Office]. This subcommittee hearing has to be on one of the most important, most complicated topics of any subcommittee hearing. So I hope that all members will try to stick to the 5-minute rule so that we can have plenty of time in closed session following the public hearing. I am planning on deferring my time to the closed session. As I mentioned in last week's subcommittee hearing, the main issues seem to be budgetary, and we have that high-class problem of unexpected largesse from the administration, a nearly $3 billion increase for NNSA [National Nuclear Security Administration] over fiscal year 2020. Although we appreciate the nearly 20 percent increase, the burden of proof is on the Administrator to justify the amounts, particularly in view of the NNSA's $8 billion in uncosted funds. Now let me recognize the ranking member for his opening statement. [The prepared statement of Mr. Cooper can be found in the Appendix on page 31.] STATEMENT OF HON. MICHAEL R. TURNER, A REPRESENTATIVE FROM OHIO, RANKING MEMBER, SUBCOMMITTEE ON STRATEGIC FORCES Mr. Turner. Thank you, Mr. Chairman. I would also like extend a warm welcome to all of our witnesses today. We do have a very large panel, but you all contribute to our work here on the House Armed Services Committee in unique and meaningful ways, and I appreciate your expertise that you bring to the table. The budget request for the entire nuclear enterprise across both the Department of Energy [DOE] and the Department of Defense [DOD] for fiscal year 2021 is approximately $49 billion. This request includes consistent predicted cost growth for nuclear modernization programs within the DOD, nuclear weapons stockpile surveillance within the DOE, and the nuclear command and control systems across the government. As we have continued to hear from DOD leadership, supporting our nuclear modernization efforts remains the number one priority of the Department of Defense. In partnership with the National Nuclear Security Administration, the United States will continue to provide a safe, secure, and reliable nuclear deterrent. The DOD budget request for fiscal year 2021 invests approximately $17.7 billion to support modernization of all three legs of the nuclear triad. This year's budget request for the Ground Based Strategic Deterrent is $1.5 billion. That money will ensure that the replacement for our only ground- based intercontinental ballistic system, which has seen continuous service for 60 years, will be able to enter its next phase of use and development. There is no margin for slip in this program. We must continue to support it while ensuring the best value for our government. The budget request also supports the B-21 bomber at $2.18 billion and Long Range Standoff weapon, LRSO, at $744 million. The LRSO is meant to replace our aging air-launched cruise missile, which entered service 40 years ago. This year's budget request supports the Navy's strategic deterrence requirements with the Columbia-class submarine, the Trident D5 modernization, and the initiation of the work for the Mark 7 reentry vehicle, which will receive the W93 warhead. The National Nuclear Security Administration also has a robust and necessary $19.7 billion budget request for fiscal year 2021. That includes $15.6 billion in their weapons activities programs to support the life extension and modifications to existing warheads, stockpile surveillance, and investment in strategic materials like plutonium and uranium enrichment. NNSA is an essential partner in the nuclear enterprise, and while we have started to improve upon the decrepit infrastructure, we have a long way to go. Additionally, the W93 is a critical program of record to the NNSA. I look forward to today's testimony on the requirements and path ahead for this warhead. Last week we heard from Admiral Richard, the commander of Strategic Command, about the military requirements for nuclear modernization and the consequences of delay or failure. I appreciate his candidness when he said that we are approaching irreversible points of no return with regard to our nuclear modernization. He testified that we are approaching a point where, if we do not support these nuclear modernization efforts, that we will be starting down a path of unilateral nuclear disarmament. While we debate whether or not we will support the budget request for nuclear modernization of our existing stockpile, Russia and China continue to increase their nuclear arsenals at an alarming rate. Russia continues to increase the number and type of nuclear delivery systems, and specifically, they will continue to develop and field new non-treaty-accountable systems that indicate a more aggressive deployment strategy. Russia remains in violation of their obligations under the Open Skies Treaty and continues to exploit the loopholes in the New START [Strategic Arms Reduction] Treaty to their advantage, after, of course, having violated the INF [Intermediate-Range Nuclear Forces] Treaty. China will find its own nuclear triad-- excuse me, China will field its own nuclear triad in the next decade with the development of a nuclear-capable strategic bomber, road-mobile ICBMs [intercontinental ballistic missiles], and sub-launched ballistic missiles. China also continues to build and employ new intermediate- range ballistic missiles, outpacing the United States. China has never been subject to the limits in transparency required by an arms control treaty, and it is unclear how to incentivize them to join such a regime. This year's budget request for nuclear modernization is just enough and just in time. None of these programs have any margin. Any attempt to delay, defund, or otherwise deprioritize our nuclear enterprise will leave us less safe in an era of near-peer strategic competition. And I want to thank our Administrator for both your integrity and commitment and also your advocacy during this budgetary process. And to all the witnesses, I want to thank you again for being here today, and we look forward to their testimony. I yield back. Mr. Cooper. I thank the gentleman. Now let's hear from the witnesses. Ms. Gordon-Hagerty. STATEMENT OF HON. LISA E. GORDON-HAGERTY, ADMINISTRATOR, NATIONAL NUCLEAR SECURITY ADMINISTRATION Ms. Gordon-Hagerty. Chairman Cooper, Ranking Member Turner, and members of the subcommittee, thank you for the opportunity to present the President's fiscal year 2021 budget request for the Department of Energy's National Nuclear Security Administration. As always, it is a privilege to testify before you today representing the extraordinary men and women that make up the DOE NNSA enterprise. We are grateful for your demonstrated strong bipartisan support for the NNSA's national security missions and the people who execute them every day. Chairman Cooper, a written statement has been provided to the subcommittee, and I respectfully request it be submitted for the record. Mr. Cooper. Without objection, so ordered. Ms. Gordon-Hagerty. Thank you. 2020 marks the 20th anniversary of the NNSA's establishment by Congress. Although, of course, our heritage goes back much further to the Manhattan Project and to the Atomic Energy Commission. And, as has always been the case, the effectiveness and credibility of America's nuclear weapons capability reassures our friends and allies and serves as the ultimate deterrent against a nuclear attack by those who wish to harm us. In this regard, NNSA is unique in our responsibilities to support our Nation's nuclear security missions. The $19.8 billion fiscal year 2021 budget request for NNSA reflects President Trump's strong commitment to ensuring America has a safe, secure, and effective nuclear deterrent for many decades to come. This funding also affirms the administration's continued work to reduce threats posed by nuclear proliferation and nuclear terrorism as well as to provide militarily effective nuclear propulsion for the United States Navy fleet of aircraft carriers and submarines. The weapons activities request of $15.6 billion will allow us to modernize the Nation's nuclear weapons stockpile and infrastructure and meet national security requirements after several decades of neglect. It will modernize the stockpile with five weapons modernization programs, execute stockpile sustainment activities, and conduct annual assessment activities on all weapons systems. With this request, we will continue the dismantlement and disposition of weapons and components from weapons retired from the stockpile and support production modernization activities for nonnuclear components and strategic materials, including a two-site plutonium pit strategy. We will also continue to recapitalize NNSA's aging infrastructure, including the Y-12 Uranium Processing Facility, the NNSS [Nevada National Security Site] U1a complex enhancements project, and the high-explosive science and engineering facility at Pantex. As many of you have witnessed firsthand, our entire enterprise continues to age with much of our infrastructure operating far beyond its design life. With this increase, we will finally be able to modernize the infrastructure, which is old. Our defense nuclear nonproliferation [DNN] budget request of $2 billion dollars marks the third year in a row that the Trump administration has sought increased funding for NNSA's nonproliferation and counterterrorism activities and fully funds all DNN priority program requirements. This reflects the administration's strong commitment to reducing global nuclear threats and to arms control efforts that advance U.S., allied, and partner security. It will enable us to continue to build domestic and international capacity to secure and, where possible, eliminate nuclear and radioactive materials and prevent nuclear smuggling. Further, this request allows us to maintain a robust nuclear counterterrorism capability to respond to nuclear and radiological incidents, including nuclear forensics activities, to attribute the source of material used in a terrorist attack. We would advance our capabilities for detecting and monitoring foreign nuclear material and weapons production activities. Equally important is the Naval Reactors' budget request of $1.7 billion. It enables us to provide for the continued safe, reliable, and long-lived operation of the U.S. Navy's nuclear fleet, which account for more than 40 percent of the Navy's major vessels. Finally, our Federal salaries and expenses budget request of $454 million will allow us to recruit, train, and retain a highly skilled workforce of 1,858 Federal employees. Mr. Chairman, it is true that our timeline for modernizing the nuclear stockpile and recapitalizing the necessary infrastructure is aggressive. In some cases, we are asking our sites and our partners to do in 10 years what would normally take 15 to 20 years. But in the 2 years since being confirmed, I have seen firsthand the Nuclear Security Enterprise workforce passion and dedication and what we can accomplish. Consequently, while the schedule may be aggressive, I believe it is achievable. However, without doing so with consistent and sustained funding and, most importantly, our continued relationship with Congress, we will not achieve it. At this time, I would like to personally thank Vice Admiral Johnny Wolfe, Lieutenant General Clark, and ASD [Assistant Secretary of Defense] Mercado, and all of our DOD colleagues for their professionalism, your collegiality, and for your service to our great Nation. And I also look forward to working with GAO on future matters of mutual interest. Thank you again for the strong support of this subcommittee and for the opportunity to testify before you today. I stand ready to answer any questions you may have. Thank you. [The prepared statement of Ms. Gordon-Hagerty can be found in the Appendix on page 32.] Mr. Cooper. Thank you very much. Mr. Mercado. STATEMENT OF VICTORINO G. MERCADO, PERFORMING THE DUTIES OF ASSISTANT SECRETARY OF DEFENSE FOR STRATEGY, PLANS, AND CAPABILITIES, U.S. DEPARTMENT OF DEFENSE Mr. Mercado. Chairman Cooper, Ranking Member Turner, and distinguished members of the committee, thank you for the opportunity to testify today. With your permission, I also have a longer statement for the record and will just make a few opening remarks. Mr. Cooper. Without objection, so ordered. We will accept your written statement for the record. Mr. Mercado. Sir, today the United States faces an increasingly complex global security environment in which the central challenge to our prosperity and security is a reemergence of great power competition with China and Russia. This remains a central theme of our National Defense Strategy, which we are implementing. Moreover, regimes such as North Korea and Iran have mature and very capable ballistic missile programs with aspirations to be able to deliver nuclear weapons with these missiles. The foundation for our success in great power competition with nuclear powers China and Russia and dealing effectively with North Korea and Iran is a safe, secure, survivable, flexible, and effective nuclear deterrent embodied by our nuclear triad. For this reason, nuclear deterrence is the Department's highest priority mission. For this important mission, the U.S. seeks only what it needs to maintain a credible nuclear deterrent, in contrast to Russia, who maintains about 2,000 nonstrategic nuclear weapons and are pursuing and fielding other novel nuclear capabilities. We have no desire or intent to engage in an arms race nor match weapon for weapon the capabilities being fielded by Russia. Again, our objective is a credible nuclear deterrent supported by flexible capabilities residing in the nuclear triad that are tailorable to any potential adversary. After decades of deferred recapitalization, we must proceed with modernizing U.S. nuclear forces and add additional flexibility consistent with our Nuclear Posture Review, such as the sea-launched cruise missile, to ensure that there are no gains to be made through the use of any nuclear weapon, strategic or otherwise. The Department of Defense and the National Nuclear Security Administration are critical partners in maintaining and modernizing our nuclear triad to address the challenges we collectively face and appreciate the support that we enjoy from this committee. Funding these critical requirements ensures that modern replacements will be available before the Nation's legacy systems reach the end of their extended service lives and we lose them all together. The fiscal year 2021 budget request for nuclear forces is $28.9 billion or roughly 4.1 percent of the total DOD budget request. Modernization or recapitalization of our nuclear forces is about 1.7 percent of the total DOD budget request. The Nation's nuclear modernization program is affordable. Lastly, nuclear attack is the only existential threat to the United States, and our nuclear arsenal is the Nation's only ultimate insurance policy against such attack. Our nuclear triad underwrites every U.S. military operation around the world and also provides extended deterrence guarantees to over 30 allies and partners, precluding the need for them to pursue their own nuclear arsenals. This is the return on investment of our nuclear forces. I thank this committee for its support, and I look forward to your questions. [The prepared statement of Mr. Mercado can be found in the Appendix on page 49.] Mr. Cooper. Thank you very much. Vice Admiral Wolfe. STATEMENT OF VADM JOHNNY R. WOLFE, JR., USN, DIRECTOR, STRATEGIC SYSTEMS PROGRAMS, DEPARTMENT OF THE NAVY Admiral Wolfe. Chairman Cooper, Ranking Member Turner, and distinguished members of the subcommittee, thank you for the opportunity to testify on the Department of Defense's budget request for nuclear forces. I am honored to be here today. I would like to thank this subcommittee for its continued support of the Navy's deterrent mission. I ask you that you please accept my written statement for the record. Mr. Cooper. Without objection, so ordered. Admiral Wolfe. The Nation's nuclear triad of intercontinental ballistic missiles, heavy bombers, and submarines equipped with submarine-launched ballistic missiles is the bedrock of our ability to deter aggression, assure our allies and partners, achieve U.S. objectives should deterrence fail, and hedge against an uncertain future. Nuclear modernization is the Department of Defense's number one priority. Nuclear modernization is the Navy's number one priority, and nuclear modernization must be fully funded. The Navy's Strategic Systems Programs, or SSP, fiscal year 2021 budget request reflects investment in our responsibility to maintain a safe and secure deterrent that is effective, flexible, and adaptable for the strategic environment. This investment is imperative both to sustaining and to recapitalizing the sea-based strategic deterrent. Our budget request represents the faith and trust that the Congress and this Nation have placed in the Navy to responsibly steward the strategic deterrent mission. Our nuclear deterrent is credible, but it is aging. Our modernization efforts are underway, but we have much to accomplish over this decade. As I look to the future of our submarine-launched ballistic missile force, I must urgently express a critical juncture that we have reached. National capabilities and technologies that underpin our needed recapitalization efforts have eroded and atrophied. We are feeling today the consequences of historical decisions, and we have reached the inflection point. The SSP fiscal year 2021 budget request wholly funds the sustainment of today's deterrent, but it also begins the investment needed to build and reenergize capabilities, technologies, workforce, and critical skills required of any nuclear nation. This very foundation is timeless, is agnostic to a future warfighter solution, and will be a collaborative effort with the United States Air Force. Today SSP continues to extend the life of the Trident D5 strategic weapons system and to demonstrate its highly reliable performance. Just last month we reached 178 successful flight tests, an exceptional record for any weapon system. Our current life extension is designed to meet today's form, fit, and function to match the Ohio-class submarine service life and to serve as the initial weapon system on the Columbia-class submarine. As the Navy carefully manages the transition of our SSBN [ballistic missile submarine] force so too must we manage the age-out and attrition of our strategic weapons system. The SSP fiscal year 2021 budget reflects important investments in our follow-on Trident II D5 Life Extension 2 needed for strategic deployment no later than 2039. This funding focuses on technical maturation of complex and fundamental technologies and opportunities to provide flexibility and adaptability in a dynamic and evolving threat environment. As our triad's delivery systems and platforms are exceeding their planned service lives, our modernization efforts will produce just-in-time replacements. Deferred recapitalization has left no margin for unanticipated challenges in technical work that we had not executed in over 30 years. Historical timelines from our first life extension coupled with the increased complexity and scope of the D5 Life Extension 2 signal that we must begin now. Now is the right time to ensure that the sea-based deterrent continues to meet strategic requirements. From a warhead perspective, the Navy and our partners at the National Nuclear Security Administration have successfully completed the refurbishment of the W76 warhead family and have modified a small number of warheads to fill the low-yield option to address an identified deterrence need. As we continue to refurbish today's aging warheads, we have revised the timeline for completion of the W88 alteration 370 program, which is now scheduled to reach first production unit next year. The fiscal year 2021 budget also reflects the Department of Defense's direction to pursue a W93 Mark 7 warhead, an aeroshell program of record. The W93 Mark 7 will address an evolving threat environment and ballistic missile warhead modernization requirements, will improve operational effectiveness for U.S. Strategic Command, and will mitigate technical, operational, programmatic, and geopolitical risk in the sea-based leg of the deterrent. The Navy's funding request supports solution-agnostic reentry body components and materials and is the first step toward rebuilding a national industrial base to produce aeroshells and other critical components, which the United States has not exercised since the early 1990s. This investment is also critically important to our other U.S. programs and to our United Kingdom partners as they too face significant recapitalization demands and execute an independent but parallel warhead effort. As the 14th director, it is my highest honor to represent the men and women of SSP comprising approximately 1,700 sailors; 1,000 Marines; 300 coastguardsmen; 1,200 civilians; and thousands of contractor personnel. It is my personal goal to ensure that they are poised to execute the mission with the same level of success, passion, and rigor both today and tomorrow as they have since our program's inception since 1955. Thank you for the opportunity to testify today on behalf of the men and women who truly make nuclear deterrence their life's work. I look forward to your questions. [The prepared statement of Admiral Wolfe can be found in the Appendix on page 64.] Mr. Cooper. Thank you, Admiral. Now, General Clark. STATEMENT OF LT GEN RICHARD M. CLARK, USAF, DEPUTY CHIEF OF STAFF FOR STRATEGIC DETERRENCE AND NUCLEAR INTEGRATION, DEPARTMENT OF THE AIR FORCE General Clark. Chairman Cooper, Ranking Member Turner, and distinguished members of the subcommittee, thank you for this opportunity to discuss the Air Force contributions to the nuclear triad. And thank you for your support in ensuring the Department of the Air Force has the required resources to execute our nuclear deterrence mission. I prepared a written statement that conveys the current status of the Air Force portion of the nuclear enterprise, and I respectfully request that it be submitted for the record. Mr. Cooper. Without objection, so ordered. General Clark. Thank you, sir. In addition to my written statement, I would like to emphasize three points before the subcommittee today. First, we are grateful for the men and women of the U.S. Air Force who built and currently maintain the resilient nuclear triad and the nuclear command, control, and communications systems we are using today. It is a testament to their ingenuity and hard work that the systems built to deter their generation's nuclear threats are still meeting America's deterrent needs today. But those systems are now decades past their intended service lives. Minuteman III is 39 years past its planned retirement, and the air-launched cruise missile is 26 years past its original service life. Decades of airmen have performed valiantly to sustain the capabilities and credibility of these systems, but we no longer have the luxury of deferring these systems' upgrades or replacements to future generations. Second, we need your continued support. There is very little margin between the age-out of our existing systems and the fielding of the replacement capabilities. We need the support of Congress to establish stable funding for the National Nuclear Security Agency and all of our DOD nuclear systems, both in sustaining current capabilities and developing future capabilities. Without stable funding, we cannot deliver these systems on time and run the risk of a deterrence gap that will put our national security at risk. Third, and most importantly, these capabilities will backstop the next generation of American security and diplomacy. Future airmen will see GBSDs [Ground Based Strategic Deterrent] replace Minuteman IIIs as the ready and responsive ICBM force deterring tomorrow's threats. They will see B-21s take up the bomber mission from B-2s, giving America the flexibility of a tailored deterrent response visible to adversary and ally alike. Men and women across this country will live in a world where future American ambassadors can conduct diplomacy with the confidence underwritten by stealthy, survivable Columbia- class submarines, and together our airmen and sailors will connect with the warriors of the Space Force to guarantee seamless command and control of nuclear forces all day, every day without fail. These points may sound grandiose, but to me it is very real. My son Milo is heading to college this fall, and he desires an Air Force career. He may find himself as one of the airmen fielding, operating, or sustaining these systems. My hope is that we set up his generation and the generation to follow with a nuclear deterrent every bit as robust as the one that was bestowed upon us. So, in summary, please let me reiterate my three points. First, past generations have given us a credible and effective nuclear deterrent, but a day is coming in the future where it will be impossible to sustain it; next, we need your continued support to stabilize funding so we can modernize and recapitalize these systems to maintain their credibility; and, finally, the investments we make today will ensure tomorrow's generation and the generations that follow have the capabilities they need for the continued defense of our Nation. Through all of this, the nuclear enterprise remains the number one responsibility of the Department of Defense, and my fellow airmen and I are proud of the role we play in maintaining a credible and capable nuclear deterrent. Again, I appreciate the opportunity to share my thoughts on strategic deterrence, and I look forward to answering your questions. [The prepared statement of General Clark can be found in the Appendix on page 76.] Mr. Cooper. Thank you very much, General. Ms. Bawden. STATEMENT OF ALLISON B. BAWDEN, DIRECTOR, NATURAL RESOURCES AND ENVIRONMENT TEAM, GOVERNMENT ACCOUNTABILITY OFFICE Ms. Bawden. Chairman Cooper, Ranking Member Turner, and members of the subcommittee, thank you for inviting me to discuss GAO's views on NNSA's plans for modernizing the Nation's Nuclear Security Enterprise and aligning its efforts with DOD's to modernize delivery systems. These remarks should be viewed as helping NNSA set itself up for success. I also have submitted a written statement for the record and ask that it be entered. Mr. Cooper. Without objection, so ordered. Ms. Bawden. The Nuclear Security Enterprise is embarking on its most ambitious level of effort since the Cold War era. NNSA is currently managing four weapon modernization programs, proposing a fifth, and undertaking infrastructure projects that affect every strategic material and component used in nuclear weapons. Today I will discuss the schedule risks presented by the integrated nature of NNSA's and DOD's nuclear modernization efforts, budget and schedule estimates for implementing the overall program, and the importance of NNSA setting priorities among its efforts in the event of budget shortfalls or cost or schedule overruns. First, on the schedule risks, because NNSA's modernization program is highly integrated, any delay could have a significant cascading effect on the overall effort. Here are three scenarios. First, weapons programs depend on the completion of certain infrastructure projects. For example, the W87-1 program will require all new components, including plutonium pits. The construction schedule for pit facilities is aggressive, and a delay could have an impact on the schedule for the weapons programs it supports. Also, because NNSA uses the same production infrastructure for each weapon program and capacity is limited, each program schedule can impact the next. In addition, NNSA's weapons programs schedules must remain aligned with the schedules for DOD's new delivery systems to ensure essential testing is completed at critical times. This is especially true for the W80-4 warhead and the Air Force's long-range standoff missile, as well as the W87-1 warhead, and the Air Force's ICBM replacement. The current schedules have little margin for delay. Second, on budget and schedule estimates, in the past GAO has been critical of NNSA's performance on a number of weapon modernization programs and major construction projects. We identified poor planning and overly optimistic assumptions about performance that contributed to cost overruns, schedule delays, and program and project cancellations. NNSA has made improvements to management controls for these efforts, especially around cost and schedule estimating, and is increasingly paying attention to program and project management capacity. As NNSA undertakes an increased scope of work, it is essential that its overall plans reflect realistic cost and schedule estimates rather than best case estimates. For example, while NNSA has not yet fully developed its schedule for constructing pit facilities, its own analysis of alternatives suggests current dates will be difficult to achieve. Finally, on setting priorities. The President's fiscal year 2021 budget request includes a 25 percent increase for NNSA's modernization program and anticipates sustaining this increased funding level for at least the next 5 years. In 2017, GAO reviewed NNSA's long-term plans for its modernization program. At the time, we found that NNSA planned to defer work to a period beyond its 5-year programming window. We concluded that these deferrals created a significant bow wave of funding needs in future years to undertake the simultaneous weapons programs and construction projects it planned. The requested budget increase for next year suggests this bow wave has arrived. Requesting a funding increase is one way to address the bow wave and maintain the overall scope of planned modernization efforts. However, actual funding in future years could fall short of budget estimates, and programs or projects could and have encountered cost overruns or schedule delays. GAO recommended in 2017 that, to increase the credibility of its modernization plans, NNSA should develop a portfolio approach as a way to manage these risks. Such an approach would present options that could be exercised if budget or schedule risks materialize. This would include identifying programs for which starts could be deferred. Any such plan would need to be put forward in collaboration with DOD. NNSA's most recent long-term plan includes an assessment of whether its budget requests fall within the range of its program cost estimates. However, it has not yet adopted a portfolio approach to setting its priorities should cost or schedule risks materialize. NNSA's planning could further benefit from this approach in light of the 2018 Nuclear Posture Review and additional programs it anticipates. I appreciate your time this afternoon, and I am happy to answer your questions. [The prepared statement of Ms. Bawden can be found in the Appendix on page 86.] Mr. Cooper. Thank you very much. I am going to hold most of my questions for the closed session. But I would like to ask Ms. Gordon-Hagerty about a sentence of her testimony on page 11. It reads, ``Additionally, the request for M3,'' that is Material Management Minimization program, ``supports the removal and disposal of weapons-usable nuclear material, with priority on removing surplus plutonium from the State of South Carolina.'' I was wondering about the urgency of that given the fact that the second site for pit production is supposed to be the State of South Carolina. Why are we so interested in getting plutonium out of South Carolina if we are just going to be returning plutonium to South Carolina? Ms. Gordon-Hagerty. Mr. Chairman, the removal of the material from South Carolina is through a program for our nonproliferation needs. That resulted in the agreement that we had with the former Soviet Union, with Russia to remove 34 metric tons of excess plutonium from the world, and we were planning on doing that through the MOX [Mixed Oxide Fuel] program at Savannah River Site. But since MOX was over construction, over budget--under construction and over budget, we decided to bring that program to termination, and we made that decision, Secretary Perry did, in 2018. Subsequently, we have been working aggressively to remove the 9.5 metric tons of material still in the State of South Carolina, and we are committed to that approach. We are committed to removing 34 metric tons of excess plutonium from the United States, and we are doing it through a tried and true process called dilute and dispose or surplus plutonium disposition. So that is material that would not otherwise be used in our stockpile. It is excess material. It is not in a good form, and we would have to put it through quite a number of steps before we were able to use it for the stockpile. That material will go through a process and then be ultimately buried at WIPP, at the Waste Isolation Pilot Plant. We have made a commitment to the State of South Carolina, and we are sticking with our commitment. In fact, last year we were under court order to remove a metric ton of material from the State of South Carolina. We did it in 6 months ahead of schedule, and so we are moving on that. And we have an aggressive schedule, but it is a doable schedule. We have got long lead procurements going on for the State of South Carolina. We have got a program to undertake that mission at South Carolina. Mr. Cooper. Thank you. Mr. Turner. Mr. Turner. Thank you, Mr. Chairman. I first want to open by giving the heartfelt sorrow, I think, from everybody in the room, about the tornados that have hit your community. It is very difficult. My community last summer had eight tornados that hit the city of Dayton and the surrounding areas. It did not make the extent of damage that you have had, but I know to what extent a community has to rally, and I want you to know that certainly you have our support and sympathy. So I am a big fan of GAO because, I mean, your reports are--they are almost prophetic, right. You go back and you read them, and you think: Gosh, I wish we had done that. So, you know, I appreciate really just the extent to which you pore over things. And, gosh, Allison, looking at your resume and bio, what a great, you know, academic work you have done. I appreciate you have dedicated yourself to the GAO. I am going to ask the group a question that I am going to ask you slightly differently because it applies to you slightly differently, right. So I am going to begin by reading the quote. So, last week, Admiral Richard, the commander of STRATCOM [United States Strategic Command], testified before this subcommittee and I read this quote in my opening statement. He stated, quote: The entire triad is reaching the end of its useful life, and so either we replace what we have now or we start to divest almost on a path to unilateral disarmament in the face of this growing threat. I am going to ask each of you if you agree with that, and then, with Allison, I am just going to ask, does GAO disagree, because you are not really in a position to agree, but I don't think you disagree. So, to our Administrator, do you agree with that quote? Ms. Gordon-Hagerty. Yes, I do. Mr. Turner. Mr. Mercado. Mr. Mercado. Yes, sir, I do. Mr. Turner. Vice Admiral Wolfe. Admiral Wolfe. Yes, sir, I do. Mr. Turner. General Clark. General Clark. Yes, sir, absolutely. Mr. Turner. Does GAO disagree with that quote? Ms. Bawden. No. Mr. Turner. Great. Excellent. So, Administrator, you have been just dogmatic in ensuring that people understand that you need infrastructure, that you need production, that in order for there to be a viable deterrent that then there has to be production and that your system has not been in a production mode for a very, very long time; that in order for us to just stay with what we have, we have to invest to be able to respond. Now, most people don't understand that, in NNSA, under the Department of Energy, is actually where these things are made, where you have to invest in the nuclear infrastructure in order for you to be able to perform and to deliver. Give us a picture of what you are facing because the--you know, as Allison from GAO was saying, you know, all these are critical paths, which means if we don't fund these, we miss. I mean, you have got to deliver. You can't make a mistake. But we have got to deliver first or you surely can't. So tell us what you are facing as to why currently we have to fund this bill. Ms. Gordon-Hagerty. Mr. Turner, let me state by saying I am very proud to be able to represent the 50,000 men and women that support our Nuclear Security Enterprise. And in that regard, we are talking about an infrastructure that was developed and built in the Manhattan Project. Thirty percent of our facilities were built and constructed in the Manhattan Project, and we are operating in those facilities. Now, we are operating to the point of obviously past their lifetime. More than 50 percent of our facilities are more than 40 years old. Most of our facilities are in the single point of failure where we don't have replication, where we don't have a resilient and responsive infrastructure. We have waited for almost three decades now. We have endured budget caps. We have endured promises to be able to increase and to modernize our infrastructure as well as our capacity to support the Department of Defense requirements. We are at a turning point, Representative Turner. We have got to get on with this. We have no margin built in any longer for infrastructure or modernization. And on top of all of that, while over the last 20 years we were effectively working on one major modernization program, that of the 76-1, which we completed ahead of schedule and on budget, we are now committed to supporting five major modernization efforts of the Department of Defense. So we are working. We have a schedule. We are working. We are committed, and we are completely aligned with the Department of Defense, with our colleagues who are sitting with me today at the table, but we have very little margin for error. We know we have got the schedule. We know we can commit to, and we can execute. However, we have limited capacity. What we saw recently with the issue--with the capacitor issue with the 61-12 and the 88 was a result of the fragility of our complex, we have allowed programs to basically evaporate our business sector, if you will, our--pretty much our defense industrial complex, of which we are our own defense industrial complex. You can't go out and buy plutonium or put out a bid for things like that and for manufacturing the unique components that we put into our nuclear weapons systems. Those programs are long gone. And so what we are doing is basically building up capacity from the ground up. We would have liked to have avoided the situation that we find ourselves in with the 61 and the 88. That said, we have had lessons learned from that. We are able to apply them to our other systems under which we are operating now and which we are modernizing. We are working closely to continue to be aligned with the Department of Defense. So we are really at, as I said before, a tipping point. We have no more margin for error. We have got facilities that need to be modernized. We have got personnel that need to be hired so we can undertake and execute our Nation's nuclear deterrent. Mr. Turner. Two more quick questions for you, Administrator. You talked--you used numbers, 61, 88---- Ms. Gordon-Hagerty. My apologies. Mr. Turner. No. No. Could you tell us what those relate to? Where do those numbers come from, 61, 88? Ms. Gordon-Hagerty. I am sorry. So the B61 Mod 12 is the gravity bomb that the U.S. Air Force deploys. That is a modernization program. It was actually fielded. The first B16 was fielded in the early 1960s. Mr. Turner. Okay. That is what I wanted you to get to. So 61 refers to like 1961? Ms. Gordon-Hagerty. Pretty much roughly the age at which-- about the time where it was deployed. Mr. Turner. And 88? Ms. Gordon-Hagerty. And the 88 was 1988 or so. Mr. Turner. Okay. So can you tell us how long has it been since we have called on you to do this? Because there--I mean, it has been over 20 years, has it not---- Ms. Gordon-Hagerty. Yes, sir. Mr. Turner [continuing]. Since your--the NNSA has been required to actually construct the pit, the nuclear weapon portion of a weapon. Now, what is important about that--now, I want to hear what the year is, how long you think it has been, because people think that once you have a nuclear weapon you have a nuclear weapon. But if you have it and it sits there for 20, 30, 40 years, it begins to degrade. So you are going to have to replace it. And I think the understanding that people have of this, that once you buy one, you have got one, is contrary to what your experience is. Could you speak about that for a moment? Ms. Gordon-Hagerty. Certainly. Let me state by beginning my statement by saying that the United States is the only nuclear weapons state that is neither designing nor fielding new nuclear weapons. We are modernizing our current nuclear weapons stockpile, a stockpile that was built for approximately 20 years for the weapons when they were fielded. We have stockpile modernization programs for all of the stockpile--of all the weapons that are in our stockpile currently. And to your point, we are modernizing them, so we are providing--what we are doing, just like I referred to the W76-1, that was introduced into the stockpile, into the deployable stockpile in the mid-1970s. We modernized that over a 20-year plan. It took 10 years to develop the technical modernization programs, and then we did the production for another 10 years, and we finished that in the beginning of 2019. That gives you some idea about the progress that it took, but that was the only modernization program we had at that time. We are now going through significant--some major modernization programs, life extension programs for other systems that are currently in the stockpile. At some point, however, to your point, sir, that we are not going to be able to life extend our way out of our current nuclear weapons stockpile. It talks--it speaks to the unbelievable talent of our laboratories, plants, and our sites that they designed and fielded nuclear weapons for approximately 20 years, and we are going to have weapons in our stockpile for 60-plus years. Mr. Turner. Mr. Chairman, thank you for your indulgence. I have additional questions for the rest of them but I will hold those until afterwards. Thank you. Mr. Cooper. I thank the gentleman for forbearing. Mrs. Davis. Mrs. Davis. Thank you, Mr. Chairman. And thank you to all of you for being here and joining with us and doing the exceptional work that you do. I wanted to just turn first, Secretary Gordon-Hagerty, to you, because as you may know, there was bipartisan concern expressed in our hearing of last week, and it goes back to the fact that last year you told us that you needed $16.9 billion for fiscal year 2021 to execute the program of record. And now only 1 year later, we are speaking about another $3 billion more than you planned for just a year ago. So I want--if you could express for us, do you consider it important that this committee understand why a Virginia-class submarine was cut to pay for this increase? General Milley specifically said in the last hearing that he did not think that this was good prioritization. Ms. Gordon-Hagerty. The administration has made it clear, as has the Department of Defense, the Secretary of Defense, that modernization of our nuclear triad is the number one priority. And NNSA is part and parcel of that process. And so the requirements that we laid out for our 2021 request was something that went like this: This was a requirements-based, yearlong approach that I shepherded personally with our laboratory, plant, site, field office, and headquarters leadership to look at every single requirement across our enterprise, what was executable and we can execute at this level of funding, what were our priorities, what were our commitments based on the requirements set forth by the Department of Defense and the Nuclear Weapons Council. This was not just a number that we grabbed. This was a number that we said: Can you execute? And I asked in our internal discussions with our labs, plants, and sites leadership, will you be able to execute if we receive these resources if they are appropriated by Congress. And the answer was a resounding yes. We know we have an aggressive schedule. I also recognize last year we had not asked for or sought this amount of--these amount of resources, but that was because we have a budget caps, and we were operating under other situations. This is the number. This is a realistic number to get us to resolve the decades-long neglect that has been applied to NNSA and our enterprises. Mrs. Davis. Thank you. I want to just turn now to Ms. Bawden because--and you can answer this with either a yes or no, if you wish. Are you confident that NNSA can execute an unplanned $3 billion, 20 percent increase in a single year? Ms. Bawden. It will be very challenging. Mrs. Davis. So we are kind of faced with both of those somewhat realities, I guess. Secretary Gordon-Hagerty, so given past practice, NNSA is likely to only increase its uncosted balances in fiscal year 2020 given the large increase NNSA received. Is that correct? Ms. Gordon-Hagerty. There is a great deal---- Mrs. Davis. Those are going to grow a lot. Ms. Gordon-Hagerty. Well, there has been a great deal talked about the uncosted balances in the Department of Energy at NNSA in particular. I am happy to report by the--at the end of fiscal year 2019, NNSA had a net funds of only $637 million. That $8 billion carryover, despite the impressive number, is, in fact, a reasonable amount for NNSA to carry over when you look at $100 billion program over the next 5 years. In fact, we are comparable to or less than most other Federal agencies when it comes to major construction and the life extension programs and all of the other programs that we have to administer. Mrs. Davis. And can I turn to you again, Ms. Bawden, and forgive me for going back and forth like this, but the reality is that I think this is helpful for us to get a sense of the evaluation on both ends. Can you comment on what the Secretary has said? How likely are we to see significant increases in the already very large $8 billion uncosted and unobligated balances if NNSA were to receive all the money that it is requesting? Ms. Bawden. It is a great question, and it really depends on how quickly NNSA can ramp up its spending rate. There are really two ways to do that, which is through hiring people and increasing activity on their contracts. There are plans to do that. The Administrator spoke about the Federal salaries and expenses increase that is being requested, and we do see, you know, a lot of hiring activity among the contractors, but that spend rate has to go up very quickly to not see those balances. Mrs. Davis. To do that, yeah. And, Secretary Gordon-Hagerty, so one of the issues, of course, is that the NNSA didn't share their budget information in a timely manner. So part of the concern here is that we want to be certain that the proper planning was done for this budget if it was not shared with the DOD in a timely manner. So, in fact, they had no way of responding to your request. Mr. Cooper. The gentlelady's time is expired. If you could give us a quick answer here, that would be great. Ms. Gordon-Hagerty. We worked through the Nuclear Weapons Council process, and we worked collaboratively with our counterparts in the Department of Defense to ensure that we continued to be aligned with the requirements set forth by DOD. Mrs. Davis. So, in the future, that information would be shared with DOD in a timely fashion? Ms. Gordon-Hagerty. We will continue to work through the executive branch process. Mrs. Davis. Thank you very much, Mr. Chairman. Mr. Cooper. The gentleman from South Carolina, Mr. Wilson. Mr. Wilson. Thank you, Mr. Chairman. And thank each of you for being here today. And, Administrator Gordon-Hagerty, I want to thank you very much, several weeks ago visiting the Savannah River Site, hosting Chairman Adam Smith to witness the crucial national security work that NNSA does at the site. And I am also very happy to extend a warm welcome to any of my colleagues who would like to visit the site to see the critical work that has taken place there, and it is especially meaningful to me. I am the only Member of Congress who has ever worked at the Savannah River Site, and so I know how capable the people are who are there on behalf of the American citizens. With that, Administrator, how is the site progressing with the conceptual design for the proposed Savannah River plutonium processing facility, and what is the current schedule for the crucial Decision 1 package? Ms. Gordon-Hagerty. Representative Wilson, we are making great progress in conceptual design, and we are hopeful that the contractor that is working that process at Savannah River Site will have that to us this year. Critical Decision 1, or CD-1, will be available, will be provided, and will be executed in fiscal year 2021 with the request for our funding at $442 million. Mr. Wilson. That is very encouraging. And I know my constituents are very happy about any expedition and expedited effort. Admiral Wolfe, the Navy fielded the W76-2 low-yield warhead earlier this month. The Nuclear Posture Review identifies the requirement to modify a small number of submarine-launched ballistic missile warheads to combat potential adversaries, such as Russia, who believe that employment of the low-yield nuclear weapons give them an advantage over the United States. However, the W76-2 is one of two varieties of W76 which just completed its life service extension program. These systems will require modernization in the coming years as their cores are increasingly older. What are the steps the Department is taking to ensure seamless modernization of these systems and to ensure that readiness is not impacted given the growing nuclear threat of other countries? Additionally, what steps are being taken to ensure that the U.S. maintains its nuclear deterrence? Admiral Wolfe. Yes, sir. Thank you for the question. So the answer to your first part of that is we continue to work within NNSA, as Ms. Gordon-Hagerty said, on the modernization, on the life extension, particularly the 76, and as we went through that program we were lockstep with NNSA. And so as we have received custody of those and started to deploy those, we have absolute confidence that those weapons are what they need to be. As we look to the future, as I said, the W88 as we continue the Alt 370 for that particular weapon, that will give us additional life extension for it. So that will give us the deterrent that we need for the W88. And then, in the future, that is the whole reason why we are moving forward with NNSA on the new program of record, the W93 Mark 7. That will give us what we need going into the future to help what a STRATCOM requirement is, to meet that, as well as make sure that we have a viable deterrent, we have a viable path forward for everything that we do both on Ohio and with what we are doing with our modernization for the Columbia submarine as well. Mr. Wilson. Thank you very much. And, indeed, peace through strength, So thank you for what you are doing. And, General Clark, I appreciate the administration is undergoing review of the U.S. participation in the Open Skies Treaty. There is significant cost associated with modernizing our Open Skies aircraft for arguably little payoff. Additionally, Russia has violated the treaty by restricting our access for certain areas of flyovers and also using the treaty for surveillance of our President and his home and the nuclear command and control. With commercial providers able to provide the same, if not better, imagery for our NATO [North Atlantic Treaty Organization] allies, is there any strategic reason to remain in this outdated treaty? General Clark. Sir, thank you for your question. And currently we are executing Open Skies completely as an Air Force to execute it within the bounds of the treaty, and we are also moving forward on modernization of the programs until told otherwise. Regarding whether or not we should be in the treaty, from an Air Force perspective, we are in favor of any treaty that is verifiable, enforceable, equitable, and to the best interest of the United States. But you are correct that we have noted some violations by Russia in the treaty, and really it is up to the administration to make a decision on the cost benefit of whether or not it is worth us staying in. But until that decision is made, the Air Force will continue to abide by the treaty and execute as appropriate. Mr. Wilson. Thank you again. General Clark. Thank you again. Mr. Cooper. The gentleman's time is expired. Mr. Carbajal. Mr. Carbajal. Thank you, Mr. Chair. Ms. Bawden, the NNSA is requesting $15.6 billion for weapons activities in fiscal year 2021. The request is $2.8 billion above the NNSA's plan to request for fiscal year 2021 as of the fiscal year 2020 budget plan. How concerned are you about the long-term affordability of the NNSA's nuclear weapons sustainment and modernization plans, and what steps, if any, is the NNSA taking to ensure the affordability and executability of the 2018 Nuclear Posture Review? Ms. Bawden. Thank you. We are concerned about the long-term affordability of the plans. The request that was made for this year is sustained over the next 5 years, and we await the long- term 25-year plan from NNSA to see what is anticipated as budgetary needs beyond that. I talked earlier about a recommendation the GAO made in 2017 concerning the importance of prioritizing programs should there be budgetary shortfalls or should programs experience cost overruns or schedule delays. And we continue to believe it is important that NNSA move toward those kinds of plans in case those risks are experienced. Mr. Carbajal. Thank you. Mr. Mercado, the New START Treaty expires in less than 1 year. While the administration has said they intend to pursue a nuclear arms control agreement with Russia and China, China has publicly rejected negotiations. What is the path forward to engage with China and pursue an arms control agreement, and what is the strategy if China will not participate? Mr. Mercado. Mr. Carbajal, sir, I believe as we assess China's intent, I think they see more benefit to be part of an agreement for the purposes of just to gain information, you know, to understand, you know, they have leverage because they are expanding their nuclear arsenal while we and Russia have a fairly robust, mature arsenal. So what they would gain from trying to be part of a treaty and still preserve the right to continue to expand, we believe that there may be an incentive for them to want to participate. However, we have to continually assess their motives. So, as you state, Russia and China and us are in very different states of our nuclear capabilities. So we have to be very careful about that. Mr. Carbajal. Thank you, Mr. Chair. I yield back. Mr. Cooper. I thank the gentleman. The next questioner was Ms. Cheney, but I believe she has left, so Mr. Khanna. Mr. Khanna. Thank you, Mr. Chairman. My understanding is that we have about 6,550 nuclear weapons. Russia has about 6,800, and China has about 270. Is that correct, Ms. Gordon-Hagerty, or whoever knows the answer? Ballpark. Mr. Mercado. Sir, I think China seems about right. And I think our--we are capped at roughly about 1,500 or so deployed. Mr. Khanna. How many nuclear weapons do we have? My understanding is Russia has about 6,800, and we have 6,550. It seems like a pretty basic question. I think we should know how many nuclear weapons we have. Mr. Turner. If the gentleman would yield, the question is to deployed weapons and long range and short range, and as they just said, we are going to go to classified session. Perhaps it would be best for that to be answered there. But the distinction, while they were all deer in the headlights when you asked the question, is that you have got to give them questions based on categories so they are not going to--no one--they are not going to be answering a question as just an aggregate because of the way things break down. But we do have a classified session that the chairman has arranged. Mr. Khanna. I guess, what I am trying to understand also is, and maybe this would be in classified setting, I mean, 10 years from now, let's say we didn't do anything, because I appreciate Representative Turner's point--at some point, these weapons deteriorate, but that is over 20, 30 years. In 10 years, do we have--do we track how many weapons would we still have operational in 10 years and 20 years and 30 years? Admiral Wolfe. So, from our perspective, sir, for the Navy, absolutely. I mean, but, again, the fundamental discussion goes back to what Ms. Gordon-Hagerty said, what we have been saying is. But even those in the stockpile, they age every day. Whether they are deployed or not, they are aging. And so, you know, the physics of all of this starts to take over. So you can't just look at this from a pure numbers perspective because, as we built these 30, 40 years ago, they will continue to age, and so, at some point, to remain credible you have to start modernizing. Mr. Khanna. Well, we have--and maybe you could present this in a classified setting or others--we have a chart saying, you know, like a corporation would. Here is when these weapons would no longer be good, and here is--you know, in 2030, we are going to have these many weapons that work; in 2035, these many. Is that correct, somewhere that exists? General Clark. Sir, I think, from my perspective, our plans for modernization aren't about increasing the numbers of the weapons. It is about increasing the quality and modernizing them so that they are still credible, capable into the future. But as far as greater numbers of weapons is not the direction that we are headed. Mr. Khanna. No. No. But I guess it would be different, right, I mean, it would make a difference for people to know whether in 2030 we are going to have 100 weapons that work or whether in 2030 we are going to have 2,500 weapons that work. You know, I mean, I guess the question is on deterrence, right. I mean, I believe--I mean, you may disagree--that there is no way in the world--and people can--this is on tape--that Russia is going to launch a nuclear weapon against China, even though China only has 270 weapons. So the question is, what is--is their thinking on what a deterrence stockpile is, on what a second credible threat is, how many weapons we need to sufficiently achieve deterrence and a second strike because it is all priorities? I mean, my bigger concern is, is Russia going to launch a cyber attack or election interference? And so are people doing that kind of analysis? Mr. Mercado. Sir, in a closed session, we can go into what we have observed and assessed with regard to Russia's recent exercise that they have conducted just late last year, to try to glean their doctrine and their intent with regard to nuclear weapons. Mr. Khanna. And my final question, I don't know if you can answer it in open session, is what is Russia's strategy in terms of--I mean, let's say they have 6,000 and they go to 15,000. I mean, what are they hoping--what strategic advantage does that afford them? Because they would know even if we had 5,000, we could obliterate them if they struck. So what does the marginal advantage of going from 6,000 to whatever give Russia? Mr. Mercado. Sir, as I said in my opening remarks is that our biggest concern at this point, one of the biggest concerns is the 2,000 numbers of nonstrategic nuclear weapons that Russia is maintaining and how they are updating that arsenal. And I guess we can go again in closed session about, you know, how we see their doctrine of employing those 2,000 nonstrategic nuclear weapons. Mr. Khanna. All right. My final point for the record is I fundamentally believe Russia is a has-been power. They are about one-tenth of our economy. They are not nearly as innovative. We won the Cold War. I think they are the last grasp. I am far more concerned about the rise of China and other nations. Mr. Cooper. The gentleman's time is expired. Mr. Larsen. Mr. Larsen. Thank you, Mr. Chairman. Ms. Bawden, could you explain what a portfolio management approach is compared to what NNSA is doing now and why that would be better? Ms. Bawden. Thank you. Mr. Larsen. In the opinion of GAO. Ms. Bawden. Sure. So a portfolio management approach essentially looks at the big picture. It looks across all of the programs and projects, and it would think about sort of where are the performance cliffs, what has to be done by a certain date, and what are potential tradeoffs? And it identifies what that trade space is so that the agency can select between programs and projects if such a thing was necessary. Mr. Larsen. And are you arguing in your report that that is more likely to happen and therefore NNSA ought to take that approach? Ms. Bawden. What we are arguing is that it is an effective risk mitigation strategy, and that it should sort of be in their back pocket should it be needed. And effectively communicating that strategy, we believe, would engender a level of trust to understand what requests they are putting forward, what that request funds, and what options are should what they have requested differ from what actually happens. Of course, looking back historically, there have been differences between what NNSA and the President have requested in their budgets and what has been actually received. So we feel that this is an effective risk mitigation strategy should that be needed. Mr. Larsen. Yeah. Ms. Gordon-Hagerty, thanks for coming. And I don't mean this question--because I respect you and I respect the work that you are doing, so I don't mean this question to be too snarky, but it seems like the risk strategy right now is to throw more money at the enterprise instead of manage the portfolio. Tell me where I am wrong. Ms. Gordon-Hagerty. I would respectfully disagree with your comment. What we have done, as I said, we took a yearlong approach. It was requirements based, meaning the priorities set forth by the Nuclear Weapons Council and by all of the requirements set forth in the Nuclear Posture Review and all of the documents that are guiding requirements for the NNSA---- Mr. Larsen. Can I stop you there, though? Ms. Gordon-Hagerty. Yeah. Mr. Larsen. Because if it is requirements based, and I will grant you that, then it means you will always have to meet the requirements even if you run into delays, you run into the issues of programs, platforms and delivery platforms and weapons being integrated. If there is delays in one and not delay in the other, then the only way to address--meeting the requirement is to put more money at it. Ms. Gordon-Hagerty. Not necessarily, sir. What we do is we remain very closely aligned almost on a daily basis with our colleagues in the Navy and the Air Force through the Nuclear Weapons Council, through action officer groups to ensure that we remain aligned through all the programs if we have slips. We are working together. In fact, we had recently had one with the capacitor issue, and we remain fully aligned with our colleagues to ensure that any slippage in the program continues--remains fully aligned. Mr. Larsen. I would note that last week we perhaps heard that the Chairman of the Joint Chiefs of Staff is not part of that group that is fully aligned with you in testimony where he didn't--he wasn't part of that decision making where the money was taken out of shipbuilding and put it into nuclear weapons. So you all might agree, but maybe it is not everyone is agreeing. I would just note that. Ms. Gordon-Hagerty. If I may, sir, just one final thing, we have updated our weapons activities where we more modernized, if you will, or aligned our programs where all of our strategic materials now are in alignment. All of our bombs, all of our weapons, all of our systems are now aligned to reflect modern and future requirements that we have so that we find more efficiencies and find--continue to find efficiencies and improvements to apply higher fidelity to our programs throughout all of NNSA. Mr. Larsen. Sure. Ms. Bawden, you noted that in your report that NNSA has agreed to some of your recommendations and some of them are still open. Are they open because there is disagreement, or are they open because they haven't got around to them yet? Ms. Bawden. We don't see disagreement on this recommendation, but typically we measure implementation over a 4-year period, which we haven't reached yet. We acknowledge some progress in terms of planning toward portfolio management. Their last long-term plan that was put out last year included an affordability analysis, but it didn't expose sort of what those tradeoffs might be should budget shortfalls or performance problems occur. Mr. Larsen. All right. Thank you. I yield back. Mr. Cooper. I thank the gentleman. Mr. Garamendi. I thought Ms. Horn was here, but it looks like she has departed as well. You are in luck. Mr. Garamendi. I think I prefer to get to the classified. Mr. Cooper. Classified session? You are my hero. What a great American. Mr. Garamendi. I will take what praise I can get. Mr. Cooper. Mr. Lamborn, our honorary member. Mr. Lamborn. Thank you, Mr. Chairman, for letting me be part of this hearing and for having this hearing. I am going to have a question or two so I may not be as much of a hero at this moment. But, Ms. Gordon-Hagerty, let me just ask several questions drilling down a little bit on the W93. What is driving the requirements for the W93 that NNSA is pursuing? Ms. Gordon-Hagerty. The W93 Mark 7 is a Nuclear Weapons Council directed program, a program of record. It was endorsed by the--approved by the Deputy Secretary of Defense, and at this time, NNSA is being directed to conduct a rigorous phase one study to inform us better on the W93. I would defer to my colleague from the Navy who sets the requirements for the W73 Mark 7. Admiral Wolfe. Yes, sir. Thank you. So I think you heard Admiral Richard last week talk about this is a STRATCOM requirement. He has a need. He has laid that requirement into the Nuke Weapons Council. The Nuke Weapons Council has validated that, and that is why the Nuke Weapons Council directed a new program of record called the Mark 93--or the W93 Mark 7. My portion of that is the actual aeroshell development and all of the nonnuclear components that go with that, which is why, as we look into the future, this is an opportunity not only to meet a STRATCOM requirement, but as I said earlier, to really recapitalize everything that we do. We haven't developed aeroshells or built aeroshells in this Nation for almost 30 years. That is a technology that is very unique to our business, to the Air Force and to the Navy. And if we don't start now just looking at the basic technologies, and as I talked to the chairman about in a closed session recently, and look at where we get those materials, we will find ourselves short. And so we have got to start that now as we move into the future. Mr. Lamborn. How will this warhead have an effect on the British allies and their ability to support their modernization efforts? For either one of you. Admiral Wolfe. So as I said, sir, earlier, so the U.K. [United Kingdom] has a parallel program. They have just announced it to their Parliament under the Polaris Sales Agreement with what I do for the Navy. And I will let Ms. Gordon-Hagerty talk about the mutual defense agreement. But we are lockstep with the U.K. on what they need to do to modernize everything that they are doing in their business for the Navy's portion of this, the aeroshell and all the nonnuclear components. They will be involved with us. They will understand what we are doing so they can leverage that for their program. So it is absolutely critical for them to be able to do that as we move through our program of record. Ms. Gordon-Hagerty. And for the nuclear explosive package for which NNSA is responsible, we work very closely with our MOD [Ministry of Defence] counterparts through the Mutual Defense Agreement of 1958. Mr. Lamborn. Okay. Thank you. And, lastly, is this to be considered a new weapon or weapon system or a different configuration of previously produced components? Ms. Gordon-Hagerty. The warhead, as we know it today, but that is what will inform us and that will be borne out in the phase one study as we undertake that phase one study. Right now, it is based on previously deployed and also previously tested nuclear explosive components. So it will not be considered in that vein of we will be producing a whole new system. We are, however, required to and will be borne out in the study that is called the phase one study. So answering questions about whether or not this is a new weapon or we will require pits for this, it is premature to answer those questions. We do not know, which is why we need to be fully informed by the phase one study. Admiral Wolfe. Yes, sir. And on the Navy side, this will be--for the nonnuclear components outside of the aeroshell this will be a continued evolution and modernization of all of the nonnuclear components, electronics, things that are very unique to what we do in this business. For the aeroshell, we will start to look for all of those technologies, like I said, for 30 years that we haven't done, and we have basically got to look and figure out how we can even produce an aeroshell. Agnostic of whatever the final solution is from NNSA, we have got to have this for all of our systems as we move into the future. So the budget that we requested starting in 2021 goes to develop all those technologies so that as we marry up we have got a solution moving forward. Mr. Lamborn. When I look at what the Russians are doing with talk about a nuclear cruise--powered cruise missile or an underwater nuclear-tipped submarine, an unmanned submarine or some kind of vessel that goes at high speed, those to me are new weapons. But to me it strikes me and my personal opinion that this is an upgrade of an existing weapon. Would you share that perspective? Ms. Gordon-Hagerty. Our perspective is that these are new and novel approaches. They are not something that we would ever undertake. Mr. Lamborn. You mean the Russians? Ms. Gordon-Hagerty. That the Russians are undertaking. That is not something that is even anything we are even considering. And we think that those do not help with stability--strategic stability talks. Mr. Lamborn. But the W93 is an upgrade of an existing---- Ms. Gordon-Hagerty. Yes, sir. And it will not--at this time, we believe that, because it is based on previously tested designs, we will not need to test. There will be no explosive-- nuclear explosive testing required for this system. Mr. Lamborn. Thank you. I yield back. Mr. Cooper. I thank the gentleman. The honorary member was in danger of losing his honorary status there. The subcommittee will adjourn the public session and resume in 2337 as soon as we can get up there. [Whereupon, at 3:42 p.m., the subcommittee proceeded in closed session.] ======================================================================= A P P E N D I X March 3, 2020 ======================================================================= ======================================================================= PREPARED STATEMENTS SUBMITTED FOR THE RECORD March 3, 2020 ======================================================================= [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]