[House Hearing, 116 Congress] [From the U.S. Government Publishing Office] [H.A.S.C. No. 116-80] 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 SEAPOWER AND PROJECTION FORCES meeting jointly with SUBCOMMITTEE ON READINESS of the COMMITTEE ON ARMED SERVICES HOUSE OF REPRESENTATIVES ON SEALIFT AND MOBILITY REQUIREMENTS IN SUPPORT OF THE NATIONAL DEFENSE STRATEGY __________ HEARING HELD MARCH 11, 2020 [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] ______ U.S. GOVERNMENT PUBLISHING OFFICE 41-866 WASHINGTON : 2021 SUBCOMMITTEE ON SEAPOWER AND PROJECTION FORCES JOE COURTNEY, Connecticut, Chairman JAMES R. LANGEVIN, Rhode Island ROBERT J. WITTMAN, Virginia JIM COOPER, Tennessee K. MICHAEL CONAWAY, Texas DONALD NORCROSS, New Jersey MIKE GALLAGHER, Wisconsin SETH MOULTON, Massachusetts JACK BERGMAN, Michigan FILEMON VELA, Texas MICHAEL WALTZ, Florida GILBERT RAY CISNEROS, Jr., VICKY HARTZLER, Missouri California PAUL COOK, California MIKIE SHERRILL, New Jersey BRADLEY BYRNE, Alabama JARED F. GOLDEN, Maine TRENT KELLY, Mississippi ELAINE G. LURIA, Virginia, Vice Chair ANTHONY BRINDISI, New York Phil MacNaughton, Professional Staff Member Dave Sienicki, Professional Staff Member Sean Falvey, Clerk ------ SUBCOMMITTEE ON READINESS JOHN GARAMENDI, California, Chairman TULSI GABBARD, Hawaii DOUG LAMBORN, Colorado ANDY KIM, New Jersey, Vice Chair AUSTIN SCOTT, Georgia KENDRA S. HORN, Oklahoma JOE WILSON, South Carolina CHRISSY HOULAHAN, Pennsylvania ROB BISHOP, Utah JASON CROW, Colorado MIKE ROGERS, Alabama XOCHITL TORRES SMALL, New Mexico MO BROOKS, Alabama ELISSA SLOTKIN, Michigan ELISE M. STEFANIK, New York VERONICA ESCOBAR, Texas JACK BERGMAN, Michigan DEBRA A. HAALAND, New Mexico Melanie Harris, Professional Staff Member John Muller, Professional Staff Member Sean Falvey, Clerk C O N T E N T S ---------- Page STATEMENTS PRESENTED BY MEMBERS OF CONGRESS Courtney, Hon. Joe, a Representative from Connecticut, Chairman, Subcommittee on Seapower and Projection Forces................. 1 Garamendi, Hon. John, a Representative from California, Chairman, Subcommittee on Readiness...................................... 3 Lamborn, Hon. Doug, a Representative from Colorado, Ranking Member, Subcommittee on Readiness.............................. 4 Wittman, Hon. Robert J., a Representative from Virginia, Ranking Member, Subcommittee on Seapower and Projection Forces......... 2 WITNESSES Buzby, RADM Mark H., USN (Ret.), Administrator, U.S. Maritime Administration................................................. 6 Lyons, GEN Stephen R., USA, Commander, U.S. Transportation Command........................................................ 5 Nahom, Lt Gen David S., USAF, Deputy Chief of Staff for Plans and Programs, Department of the Air Force.......................... 9 Williamson, VADM Ricky L., USN, Deputy Chief of Naval Operations, Fleet Readiness and Logistics (N4), Office of the Chief of Naval Operations, Department of the Navy....................... 8 APPENDIX Prepared Statements: Buzby, RADM Mark H........................................... 54 Courtney, Hon. Joe........................................... 35 Garamendi, Hon. John......................................... 39 Lamborn, Hon. Doug........................................... 40 Lyons, GEN Stephen R......................................... 42 Nahom, Lt Gen David S........................................ 69 Williamson, VADM Ricky L..................................... 59 Wittman, Hon. Robert J....................................... 37 Documents Submitted for the Record: [There were no Documents submitted.] Witness Responses to Questions Asked During the Hearing: Mr. Kelly.................................................... 83 Mrs. Luria................................................... 83 Mr. Norcross................................................. 83 Questions Submitted by Members Post Hearing: Mr. Norcross................................................. 91 Mr. Vela..................................................... 92 Mr. Wittman.................................................. 87 SEALIFT AND MOBILITY REQUIREMENTS IN SUPPORT OF THE NATIONAL DEFENSE STRATEGY ---------- House of Representatives, Committee on Armed Services, Subcommittee on Seapower and Projection Forces, Meeting Jointly with the Subcommittee on Readiness, Washington, DC, Wednesday, March 11, 2020. The subcommittees met, pursuant to call, at 2:30 p.m., in room 2118, Rayburn House Office Building, Hon. Joe Courtney (chairman of the Subcommittee on Seapower and Projection Forces) presiding. OPENING STATEMENT OF HON. JOE COURTNEY, A REPRESENTATIVE FROM CONNECTICUT, CHAIRMAN, SUBCOMMITTEE ON SEAPOWER AND PROJECTION FORCES Mr. Courtney. [Mic off.] 2:30 because, again, we have got votes coming in about an hour and 15 to an hour and a half and we want to, obviously, make sure we get a chance to hear from the witnesses and ask questions. So, good afternoon. Today's Seapower and Projection Forces Subcommittee and the Readiness Subcommittee are meeting to examine sealift and air mobility capabilities, two critical elements of our Nation's defense strategy. Before I introduce our witnesses, I want to note that this year marks the 100th anniversary of the Jones Act. For a century, the Jones Act has helped promote a robust domestic maritime industry while preserving our Nation's security. We are a maritime nation and the Jones Act is one of the foundation pillars of a strong maritime policy now and in the future. In beginning here today, I just want to--it is also the 75th anniversary fast approaching for the end of World War II and Winston Churchill was quoted right after that conflict by saying, ``Victory is the beautiful bright flower. Transport is the stem without which it could never have blossomed.'' And right now, I think the stem is--for a lot of us is we are concerned about and that is really, obviously, the focus of today's hearing. Again, because of the time issue, I am going to submit my remarks in writing to the record and, again, we want to, obviously, give members a chance to ask a lot of questions. The briefing we had a couple months ago I think shows that there is, certainly, high interest. And with that, I would now yield to Mr. Wittman, the ranking member of the Seapower Committee. [The prepared statement of Mr. Courtney can be found in the Appendix on page 35.] STATEMENT OF HON. ROBERT J. WITTMAN, A REPRESENTATIVE FROM VIRGINIA, RANKING MEMBER, SUBCOMMITTEE ON SEAPOWER AND PROJECTION FORCES Mr. Wittman. All right. Thank you, Mr. Chairman. I appreciate you yielding. I especially want to thank Chairman Garamendi and Ranking Member Lamborn for this enduring interest in our Nation's logistics capabilities. We know how extraordinarily important this is and I can think of no better panel to discuss sealift and airlift than the folks we have before us today. As I assess the state of our Nation's military logistics, there are many areas that allow us to rapidly project power to include our tanker and airlift forces. These capabilities are foundational to a great power and I believe that we have done a good job of providing this force. However, it is essential that our subcommittees take aggressive action to staunch the bleeding occurring in our logistics forces today. For example, our lack of strategic vision in our Nation's sealift forces is particularly wanting. I think that this lack of vision is a relic to years of strategic hubris and complacency. My friends, sometimes we are not aware of what is rapidly changing around us. We continue to support legacy sealift force that is designed for regional conflict and presumes sea control. Both of these assumptions have been invalidated with our new National Defense Strategy. Yet, it is almost as if the Navy forgot to read the strategy when they put together their budget plan or, worse, I think that we have a strategic seam between the Army and the Navy. For me, I think that the Navy's budget is overtaxed with support for the $110 billion Columbia ballistic missile submarine program. I believe it is time for the Army to pick up the budget responsibility for the surge sealift forces that uniquely support the Army's ability to go to war. As to our subcommittee's response to our surge sealift plight, I am opposed with the administration's legislative proposal that would solely rely on procuring used foreign-built vessels to recapitalize our surge sealift. I continue to support a combination of procuring used vessels through the National Defense Sealift Fund and procuring new sealift vessels. At the same time, I do not believe that we can sustain a new construction option to support the administration's $550 million per hull assessment and look forward to pursuing other options that reduce this $25 billion new construction recapitalization effort. As for our air logistics component, while I am satisfied with our current aviation refueling capacity, I think that we need to tailor the response to mitigate KC-46A deficiencies. There are some that believe that we should cancel the KC-46A aircraft contract in its entirety. I do not believe this is a prudent strategy. However, until we can deliver a capable KC- 46A aircraft, I think that we should slow both the ordering and delivery of KC-46A aircraft and we need to retain legacy tankers to cover these shortfalls and we need to ensure that we have adequate competition at the conclusion of the current KC- 46A contract. And while I could sit here and pontificate about the shortfalls of this program, simply put, I think we need to now look at making the best move in a bad situation and one that is, sadly, of our own making. In conclusion, I am reminded of a quote from Alexander the Great when reflecting on his extensive logistics train required to resupply his battle lines where he indicated, ``My logisticians are a humorous lot. They know if my campaign fails they are the first ones I will slay.'' While I don't espouse the slaying of our logisticians, I think this clearly paints an indomitable reality that a failed logistical plan will allow potential adversaries to dictate the circumstances of future warfare, a future which our great United States of America can ill afford. I believe it is essential that we take aggressive steps in the National Defense Authorization Act to staunch the bleeding and address these substantial logistic issues. Again, I appreciate Chairman Courtney and Chairman Garamendi's support for having this important hearing and I yield back the balance of my time. [The prepared statement of Mr. Wittman can be found in the Appendix on page 37.] Mr. Courtney. Thank you, Rob, and we will now have to call you Wittman the Great. [Laughter.] Mr. Wittman. No. No. No. No. No. No, absolutely not. [Laughter.] Mr. Courtney. And I yield to my colleague, the chairman of the Readiness Subcommittee, John Garamendi. STATEMENT OF HON. JOHN GARAMENDI, A REPRESENTATIVE FROM CALIFORNIA, CHAIRMAN, SUBCOMMITTEE ON READINESS Mr. Garamendi. Thank you, Mr. Chairman. I was watching our witnesses as Alexander the Great was speaking, something about slaying, which I find it fully understandable. [Laughter.] Mr. Garamendi. But we do have a problem. I am going to shorten this. I ask that my testimony or my opening statement be put into the record. KC-36--excuse me, KC-135, KC-10s, and the 46 [KC-46]--what is going on here? We need to get this squared away. General Lyons, you think we need more. The Air Force thinks we don't. We are going to have to sort that out. The reality is it is a very, very serious problem and I could probably echo most of what Mr. Wittman said but I won't right now. But that has got to be addressed. The sealift is an ongoing problem. I don't think the Navy is going to be able to afford the sealift capacity necessary to meet the new National Defense Strategy. I am not even sure they can meet the old one. Some very useful work had been done by the Center for Strategic and Budget Assessments. Draw it to your attention, I think I deliver this to all of you. It basically calls for the rebuilding of our merchant marine, using that with military useful ships to address what we will never be able to accomplish or not likely to accomplish with the Navy budget, even if we are to raid the KC-46 budget to do it. So, I think there is a strategy, a national fleet strategy that we can employ. I will be asking questions about that and we can continue with what we presently have but even that is woefully inadequate. So, we need to build those ships and if we do it on the private sector side, guaranteeing that they have cargo, which I think we can do, and provide the necessary support, we can, I believe, quickly within the next decade, provide the necessary sealift capacity. I guess I am going to have to deal with something that--it is called luggage, personal property. Ongoing issue. General Lyons, it is your turf and that will be my last question. If I run out of time, I will get you personally later and we will go through it as this is the annual whipping of the--of the problem. Excuse me, the semiannual whipping. I will let it go at that and we will get on with it. [The prepared statement of Mr. Garamendi can be found in the Appendix on page 39.] Mr. Courtney. Thank you, Mr. Garamendi. I now recognize the ranking member of the Readiness Subcommittee, Congressman Lamborn. STATEMENT OF HON. DOUG LAMBORN, A REPRESENTATIVE FROM COLORADO, RANKING MEMBER, SUBCOMMITTEE ON READINESS Mr. Lamborn. Thank you, Chairman Courtney. I truly appreciate the collaboration that you and Ranking Member Wittman continue to show Chairman Garamendi and myself on these issues that are critical to both of our subcommittees. There is an old saying. Amateurs talk about tactics, but professionals study logistics. An examination of the issues before us reveals the wisdom of this statement. Our witnesses today are at the very heart of projecting and sustaining the joint force. General Lyons, I really appreciate your recent visit and the opportunity to discuss the major issues facing USTRANSCOM [U.S. Transportation Command]. As you highlighted in your opening statement, which will be presented here soon, the world is changing and we need TRANSCOM to focus on great power competition. I am particularly concerned about the cyber threats posed to our distribution networks by Russia and China and their ongoing efforts to erode access to the U.S. and our allies. We must assume that logistics support for future operations will take place in highly contested environments. Given how central these two--the two issues dominating today's hearings are to our overall military readiness, I want to add my concerns to those of my colleagues. With 85 percent of the joint force based within the United States, our military readiness risks being irrelevant without the capability and capacity to project those forces to the fight. During the turbo activation exercise in September 2019, only 60 percent of the organic surge fleet was considered ready and only 40 percent of those were able to get underway in the time allotted. As General Lyons stated in his written statement, by the mid-2030s over half of the sealift fleet will be unusable. Congress had provided the Navy with authority to begin recapitalization through a combination of buying used vessels and some new ship construction. But to date, we have seen very little action. The fiscal year 2021 budget would provide funding to purchase two. The KC-46 program, as has already been discussed, is yet another example where poor contractor performance is severely degrading warfighter capability and requiring the government to underwrite the cost of retaining legacy aircraft longer than planned. Given the unsafe conditions created by the biggest Category One deficiency on the KC-46, the remote vision system, it would be irresponsible for us to allow the U.S. Air Force to proceed with its planned tanker retirements. According to Air Force Chief of Staff General Goldfein, we are close to a way ahead with Boeing on the KC-46, but it will take two to--excuse me, 3 to 4 years to implement. I am not one who is calling to cancel this program but if we don't see progress this year the Department may need to reconsider recompeting the program. Finally, I am encouraged by the progress that TRANSCOM has made regarding the Defense Personal Property Program. The business case analysis [BCA] for the Global Household Goods Contract was delivered on time to the committee and it appears to demonstrate a significant increase in performance and capability. My understanding is that GAO [Government Accountability Office] will complete its review of the BCA shortly and I want to commend TRANSCOM's efforts to address industry concerns. Thank you to our witnesses for your testimony, for what you do for our country, and I yield back. [The prepared statement of Mr. Lamborn can be found in the Appendix on page 40.] Mr. Courtney. Thank you, Mr. Lamborn. Now we will start with General Lyons and just go right down the table, and the floor is yours, General. STATEMENT OF GEN STEPHEN R. LYONS, USA, COMMANDER, U.S. TRANSPORTATION COMMAND General Lyons. Thank you. Thank you, Chairman. Chairman Courtney, Chairman Garamendi, Ranking Members Wittman and Lamborn, distinguished members of the committee, it is my honor to represent the men and women of the United States Transportation Command who, at this very moment, are employed around the globe conducting mobility operations 24 hours a day, 7 days a week, 365 days a year. Our mission at TRANSCOM is enduring and that is to project and sustain the joint force globally at our time and place of choosing, thereby representing multiple options for our national leadership and multiple dilemmas for potential adversaries. With 85 percent of the force element stationed in the United States, as you mentioned, it is TRANSCOM's job to move forces and materiel in support of the Secretary of Defense's strategic priorities. Our National Defense Strategy underscores the importance of advancing our national security interests, deterring potential adversaries and, should deterrence fail, responding with overwhelming force to win. Power projections are a distinct U.S. comparative advantage, but we are not alone in this effort. Our vast global logistics network are underpinned by a deep bench of allies and like-minded partners that facilitate critical access basing and overflight activities. Our world is changing and the defense strategy describes a future in which TRANSCOM must be able to project the force under all-domain persistent attack. We acknowledge that our success today does not guarantee success tomorrow and we are actively preparing to meet tomorrow's challenges. Today, I am confident in our ability to successfully execute our mission but the risk, as noted, is increasing. Our aerial refueling and sealift forces require immediate attention to meet current and future challenges. We are actively exploring the feasibility of a specified sealift appropriation to mirror DOD [Department of Defense] and congressional efforts to recapitalize the Ready Reserve Force in the 1990s. Before I close, I do want to highlight the Department's ongoing work to improve the Defense Personal Property Program, an area of great interest for Congress. The Department, we acknowledge, can no longer afford to operate a disparate confederation of government activities supervising a similarly disparate collection of hundreds of transportation providers. My message for DOD families: We have heard your call for improved accountability, transparency, and quality capacity and we are committed to deliver. My message for industry providers: If you provide quality service today for our military members you have a place in the future program. It is an exciting time to be the commander of USTRANSCOM and I could not be more proud of the team of professionals that create the strategic comparative advantage called the Joint Deployment and Distribution Enterprise. I look forward to your questions. Thank you. [The prepared statement of General Lyons can be found in the Appendix on page 42.] Mr. Courtney. Thank you, General. Now, I will move to Admiral Buzby who is joined here this afternoon by his wife. Thank you. You are welcome to join us here today and, again, the floor is yours. STATEMENT OF RADM MARK H. BUZBY, USN (RET.), ADMINISTRATOR, U.S. MARITIME ADMINISTRATION Admiral Buzby. Thank you, Mr. Chairman, and good afternoon to you, sir, and to Chairman Garamendi, Ranking Members Wittman and Lamborn, and members of the subcommittee. Thank you for the opportunity to discuss the Maritime Administration's role in supporting strategic sealift. As the members well know, America's strategic sealift capability is comprised of government-owned ships, assured access to a fleet of U.S.-flagged commercial vessels under civilian mariners, and intermodal systems. While this is an efficient and effective force for moving cargoes worldwide during peacetime, I am concerned about its ability to reliably project and sustain power globally in a contested environment. To address this, we must strengthen our sealift capability and reverse declines in U.S.-flagged commercial fleet and U.S. shipbuilding repair industry. The top of our priority list is the recapitalization of the Ready Reserve Force, or RRF. Along with the 15 Military Sealift Command surge sealift's ships, the 46-ship Ready Reserve Force provide the initial surge of ready sealift. These vessels' average age is 45 years old and, consequently, we have struggled to maintain readiness. The results of the September 2019 turbo activation are reflective of the current readiness of these ships despite focused and valiant efforts by their crews to maintain them. We continue to work with the Navy on a recapitalization strategy that includes a combination of targeted service life extensions which have begun; by acquiring and converting used vessels, which is also now in progress; and eventually building new vessels in U.S. shipyards. MARAD [U.S. Maritime Administration] has recently released a request for proposal for a vessel acquisition manager who will identify, purchase, modify, and after purchase potentially operate these new vessels. The decline in our domestic capacity to build and repair large commercial ships is a major concern. Of the seven large shipyards involved in the last major effort to construct or convert large commercial-type ships for sealift several decades ago, three of those are now closed, one no longer does commercial work, and two perform conversion work only. Of that original seven, only one retains its expertise to build large commercial-type sealift ships. Last year, I reported 81 ships in our international commercial fleet. Today, we are 87 but still down from the 106 in 2010. The overall decline in the size of the U.S.-flagged fleet makes the Maritime Security Program essential. Maritime Security Program ensures access to a fleet of 60 commercial vessels to meet DOD contingency requirements. MSP operators also support the employment of 2,400 of the trained, skilled U.S. merchant mariners that our country depends upon to crew surge sealift ships. I thank the committee for its reauthorization of MSP through fiscal year 2035. The Maritime Administration is also ensuring compliance with cargo preference requirements. We are significantly expanding our outreach and engagement to maximize the use of U.S.-flagged vessels. More cargo means more U.S.- flagged vessel operators employing U.S. citizen mariners, many of whom will be needed for sealift. We also remain committed to our domestic Jones Act fleet. Jones Act requirements support U.S. shipyards and repair facilities, sustain supply chains that produce and repair American-built ships, and the employment of U.S. citizen mariners. It is the indispensable foundation of the U.S. maritime industry and our economic and national security. Due to declines in the U.S.-flagged fleet, I am concerned about our access to enough qualified mariners. We are working to better track our pool of available mariners who could be available for sealift and are exploring a range of options to ensure that a sufficient number of mariners are trained and available to meet potential contingency operations. The Maritime Administration continues to support mariner education and training through the U.S. Merchant Marine Academy and the six State maritime academies. Congress's funding of the National Security Multi-Mission Vessel [NSMV] program will help provide our State academies with modern training vessels to prepare future mariners. The President's budget requests $300 million for a fourth ship designated for Texas A&M [Agricultural and Mechanical] Maritime Academy. We expect that our vessel construction manager, TOTE Services, will have a shipyard under contract shortly in order to deliver the first NSMV in fiscal year 2023. Thank you again for the opportunity to address this committee on the state of American sealift. I look forward to your questions and ask that my testimony be entered into the record, sir. [The prepared statement of Admiral Buzby can be found in the Appendix on page 54.] Mr. Courtney. Thank you. So, ordered. Admiral Williamson. Could you push the button on that? Yes. STATEMENT OF VADM RICKY L. WILLIAMSON, USN, DEPUTY CHIEF OF NAVAL OPERATIONS, FLEET READINESS AND LOGISTICS (N4), OFFICE OF THE CHIEF OF NAVAL OPERATIONS, DEPARTMENT OF THE NAVY Admiral Williamson. [Inaudible.] Sorry, sir. [continuing] And distinguished guests of the House Armed Service Subcommittee on Seapower and Projection Forces and Readiness. I am honored to be here today to provide a Navy perspective on the sealift and support of the National Defense Strategy. One of my primary responsibilities as Navy's logistics champion is making sure that the strategic sealift fleet has a strong resourcing advocate on the Navy staff. I can tell you from my personal experience this issue of sealift readiness has the attention of my entire chain of command. Since assuming my role 7 months ago, I have spoken personally with the CNO [Chief of Naval Operations] several times, the Secretary of the Navy, and Secretary of Defense as we worked hard to balance the needs of the sealift fleet with those of the combatants that enable ships to deliver their cargo. As the CNO said in his testimony a few weeks ago, we are beginning to make investments in strategic sealift where we haven't made significant investments in a while. We expect that investing now will yield returns of increased long-term readiness as we work to recapitalize the sealift ships using the multi-pronged approach delivered in the March 2018 ``Sealift That the Nation Needs'' report to Congress. We continue to demand analytic rigor that provides actionable data to guard our investments in maintenance and repair to return the fleet to our agreed readiness goal of 85 percent. Finally, I see no barriers to our plans to recapitalize the sealift fleet. I will continue to work alongside General Lyons and Admiral Buzby to provide the sealift readiness our Nation needs. I look forward to answering your questions. Thank you. [The prepared statement of Admiral Williamson can be found in the Appendix on page 59.] Mr. Courtney. Thank you, Admiral. And lastly, but not least, because he is a native of the State of Connecticut, Lieutenant General Nahom. STATEMENT OF LT GEN DAVID S. NAHOM, USAF, DEPUTY CHIEF OF STAFF FOR PLANS AND PROGRAMS, DEPARTMENT OF THE AIR FORCE General Nahom. Thank you, sir. Chairman Courtney, Chairman Garamendi, Ranking Members Wittman and Lamborn, distinguished members of the subcommittee, thank you for having us here today with U.S. Transportation Command and Maritime Administration to discuss the state of the mobility enterprise and provide testimony on Air Force's role in supporting the Department of Defense's air mobility capabilities. The Air Force provides capabilities, crews, fleets essential to mobilize global support. The mobility fleet faces many challenges providing the force and fleet readiness needed to meet ever-increasing demands our Nation relies upon. Our most significant challenge today is the move to a two- tanker fleet as we must stretch our resources to meet demands while balancing the appropriate risk by divesting the legacy aircraft to move toward the future force. As we modernize to counter growing threats, we must also ensure that forces remain ready and able to offer options to our Nation's leaders and combatant commands. There is no doubt the demand for mobility capabilities remains high. With the support of Congress, we have made major improvements to mobility readiness and hope to continue increasing our ready forces. I am looking forward to the discussion today and to continue to work with this committee for a more ready and capable mobility force in the future. Thank you. [The prepared statement of General Nahom can be found in the Appendix on page 69.] Mr. Courtney. Great. Thank you, General. So, we are going to go into questions. Again, we are going to apply the 5-minute rule to everyone, including folks near the microphones here and, hopefully, we will at least get through one cycle and if there is extra time then we will keep going, depending on next votes. So, Admiral Buzby, thank you for at least recognizing we got a couple things right last year in terms of restoring the funding for the National Security Multi-Mission Vehicle. Great to hear things are on track with that program, and also the extension and reauthorization of the Maritime Security Program. We also backed a three-pronged approach which, again, was mentioned earlier about extending current sealift ships, buying used vessels, and requiring the start of a domestic new-build ship and gave some additional authorities to build these new ships using alternative contracting approaches. Again, that alternative contracting approach I would like to focus on just here for a moment, again, is being deployed in the case of the multi-mission vehicle. Can you talk about what, you know, knock on wood, you know, how that is proceeding and then whether or not that we could use that model again as a way of getting more sealift ships built and with a little more flexibility. Admiral Buzby. Yes, sir. Thank you for the question. As I mentioned in my testimony, we are about that close to actually having our vessel construction manager TOTE Services get to contract with the shipyard. The process has been a learning process for all involved, both the government, us in Maritime Administration, TOTE Services, our contractor, and the potential shipyard. I think that it offers great promise because what we are going to be doing is using a commercial practice to deliver a ship at a fixed price and a fixed timeline and contract, and I think that it offers--I think we are going to see a great savings from it. I mean, the proof will be in the pudding. I know we have been talking with the Navy, with Naval Sea Systems Command on this. They have been watching it very closely, and I think they have gotten more comfortable as time goes on. I don't want to speak for them but, you know, as we have matured it and gotten through it and worked through the bumps, I think--I think it definitely offers great promise and needs to be seriously looked at if we go forward to procuring more sealift ships. Mr. Courtney. Thank you. I don't know if, Admiral Williamson, you want to comment at all. But, again, as you said, the committee sort of expressed its, you know, support for this approach that he just described in terms of just what is the Navy's take on it. Admiral Williamson. Yes, sir. As the CNO testified earlier, you know, we are working really hard to close these gaps from our--us not investing in the past 15, 20 years. You know, we see this as an opportunity. We will partner with MARAD and do the analytical rigor necessary to ensure that, you know we can find executionable solutions within the constraints of our budget, sir. Mr. Courtney. Well, thank you, and we will be, you know, again, really anxious to see how this unfolds again because we have got to get sort of a different approach here if we are going to really start getting some momentum in terms of filling some of the gaps here. Admiral Buzby, our subcommittee also for a number of years has been sort of tracking the progress about getting a national maritime strategy sort of on the books, which have been decades since we have done that as a nation, and I know it is a challenge because there is a lot of different Federal offices and agencies that touch the maritime realm. But maybe you could just give us an update in terms of how that is proceeding. Admiral Buzby. Yes, sir. I am very happy to report to the committees that our report back to Congress as was directed in the 2014 NDAA [National Defense Authorization Act], actually the Coble Act, is complete and has been submitted. It is entitled ``Goals and Objectives for a Stronger Maritime Nation,'' our report to Congress. It lists 4 goals and about 39 objectives to get to a stronger merchant marine. It is not a global maritime strategy, one that encompasses the Navy and the Coast Guard and all the-- all of the facets of maritime America. It really is kind of focused on the commercial side and those things that we in the Department of Transportation could, clearly, focus on. But I enjoin everyone to take a good look at it and, you know, it is a starting point. It is a place where I think we and industry can all stack our hands together and move forward from. Mr. Courtney. Well, we are, you know, glad to hear that is happening. Again, if we can sort of get progress in the commercial sector that will spill over and benefit, obviously-- -- Admiral Buzby. I would agree. Mr. Courtney [continuing]. Other parts of shipbuilding, whether it is Navy, Coast Guard, or, you know, sealift and, you know, if you look at the aerospace sector, you know, the fact that they are able to sort of balance their industrial base with commercial work in addition to military work, I mean, that has really been the missing sort of ingredient in the shipbuilding area and your description of the shipyard decline that is happening, you know, that is just--we have to turn that around---- Admiral Buzby. Yes, sir. Mr. Courtney [continuing]. And really glad you finished that report. So, thank you. I recognize Mr. Wittman for 5 minutes. Mr. Wittman. Well, thank you, Mr. Chairman. I would like to thank our witnesses for joining us. Admiral Buzby and Vice Admiral Williamson, I want to go to you to begin with. As we look at the fiscal year 2021 budget request for recapitalizing the logistics fleet--the Ready Reserve Fleet as it is formally called--we look at a $550 million per ship cost in constructing new ships. I am not confident that we can afford ships at that price and build the fleet back at the pace that we need to build it back. But I do think there are a lot of different ways that we can think about how we can make those things happen. Chairman Courtney talked about several. I think we have to engage the industry. But I want to get your perspective. I think, looking at U.S. shipbuilding companies, looking at their potentially partnering with other companies across the globe that are in the shipbuilding business and how we can make sure we have critical U.S. systems on board those ships here, make sure they are designed specifically for the purpose of the military, looking too at the idea of the use of those ships by the private sector and then contracting for those ships to be made available for the United States military and then at a certain point maybe the sealift--our Maritime Administration purchasing those ships as kind of a reverse of the MSP program. I think all those things are efforts that should be on the table. I want to get your perspective about how do we, as quickly as possible, rebuild that capacity, much like Secretary Lehman did back in the 1980s. Time is not in our--in our favor now and we have to be able to do this quickly. Admiral Buzby, I want to get your perspective. And then, Admiral Williamson, I want to get your perspective, because it really doesn't seem that the Navy is really serious about this. It seems like the Navy is saying, you know what, doesn't make a big difference to us. We don't need ships to get to the fight. We got them. And if the Army wants to get to the fight, we will let them worry about it. So, it seems to me it is pretty doggone parochial and it seems like to me we are not making any progress in getting where we need to be. So, I would like to get both of your perspectives on that. Admiral Buzby. Thank you, sir. Thanks for the question. I absolutely agree, we need to get on with this. You know, we have to kind of approach it kind of two ways right now. We have to--we have to fix and get as ready as we can the ships that we have for the very near term and we have to do some of the replacement using the authorities that Congress has granted us to get us moving. You know, some of the things that we are discussing here is going to be, you know, kind of a mid- term sort of set of actions. We have to, I think, kind of make a fundamental set of decisions here on where these ships are going to come from. The current Ready Reserve Force now is virtually all foreign built. There are a few U.S.-built ships in there. But for the most part they are in fact foreign-built ships. Ships that we will be talking about bringing in near term are foreign-built ships. So, you know, we are going to need to, you know, have a real serious policy discussion on how critical is it that those ships be built in the United States and there is some criticality to that, and, you know, it goes to the comments that I made earlier about our industrial base. That is something to be taken into account and something we don't want to, I think, just throw away. So, I think that seriously needs to be taken into account against the need to get ships quickly, very quickly. But, you know, we are going to be working really closely with the Navy and, obviously, with TRANSCOM setting the requirement on what that mix--proper mix should be. Mr. Wittman. Very good. Admiral Williamson. Admiral Williamson. Yes, sir. Thank you for the question. As I said in my opening remarks, my leadership is taking this very seriously, is closing this gap as quickly as we can, and I think that is representative in our 2021 budget proposal. You know, the funding of the two used ships at $60 million I think helps, to Admiral Buzby's point, get us added capacity and readiness now. I also believe that as far as the costs of building new, we are committed to building new that is also represented in our submittal of $37 million to do a design of a ship to be built in--start build in 2023 and delivered in 2026. Additionally, we are working with your staff right now to address this, to find solutions that are affordable but also at the same time, to echo what Admiral Buzby said, working very closely with him and TRANSCOM how do I get after the divot that was about 10 years out, as identified in the CBSA [Center for Strategic and Budgetary Assessments] study. And I believe through a combination of the service life extension program, additionally with the used ship buy, two planned in 2021--we have an additional one in planning for 2022--I think that helps us lessen the impact of the--of the shortfall identified in the CBSA study. So, we will continue to partner with USTRANSCOM and MARAD to get after this, sir. Mr. Wittman. Thank you, Mr. Chairman. I yield back. Mr. Courtney. Thank you. Thank you, Mr. Wittman. Chairman Garamendi. Mr. Garamendi. Thank you. Reality. A little reality check here. With regard to this sealift capacity, it isn't going to be done in the traditional way. It is not going to happen. There is not money in the naval budget to build the sealift capacity. There is no money to rebuild the Ready Reserve Fleet. It just isn't there. So, we need to think differently. Fortunately, there is a proposal--a plan, if you will--that has been proposed to us and we need to get real about this. We either say this plan laid out in these documents is not worth our effort to even think about or it is, and I would suggest that this year we make a decision to pursue a different strategy than the one that we know will not work, and that strategy is something along the line that was laid out by the Center for Strategic and Budget Assessments in this document ``Sustaining the Fight'' and then in its followup document. It basically calls for the rebuilding of the American merchant marines system using things that are already in place such as the Jones Act, celebrating its 100th birthday, as Joe told us earlier, and utilizing stipends, subsidies, and other programs that have been on the books for more than 50 years but not used in the last 25 years. Essentially, building a fleet that is militarily useful, and we can do this. The United States is now one of the largest exporters of oil and natural gas, none of which is on American- built ships. Keep in mind that Russia is requiring that its LNG [liquid natural gas] from its northern Siberian area be on Russian-built ships and Russian-flagged ships. Why are they doing that? Because they see it as an opportunity to build their merchant fleet, useful for their purposes. Similarly, we could, using legislation that we proposed called the Energizing the American Shipbuilding Industry, requiring that a small percentage of that oil and gas that we ship overseas be on American-built ships with American mariners, solving two problems simultaneously. And if those ships are built appropriately, for example, with a center--what do you call this, Mr. Buzby? Admiral Buzby. A construction differential subsidy. Mr. Garamendi. That is it. That is one of the subsidies. But also built so that that ship can be used for resupplying the Navy fuel at sea with a center post, I think you called it. Admiral Buzby. King post. Yes, sir. Mr. Garamendi. King post. And also some sort of a reel of pipe at the back? Admiral Buzby. Stern refueling capability. Mr. Garamendi. There you go. Good words all the way around. We could do this, and in the process reenergize and build in our shipyards and all the things that we have been talking about here. So, we need an overarching strategy that is in place. Hopefully, Admiral Buzby, your new maritime strategy, should it ever emerge from OMB [Office of Management and Budget]--where I understand it is still stuck. Admiral Buzby. It is out, sir. The Secretary has signed it out. It is---- Mr. Garamendi. Oh, my. Admiral Buzby. It is for real. Mr. Garamendi. Oh, my, my. At last. Admiral Buzby. Yes, sir. Mr. Garamendi. In any case, better now than never. What I am--what I basically want to get into a deep discussion on is in this year, in this year's NDAA, build upon what we have--what we already have in place and stretch it further so that we can do two things--leading the national security requirements of this Nation. So, let it go. I talked to all of you about this. Your comments? Let us begin with Admiral Buzby and then go both different directions. Admiral Buzby. Sir, I would concur that we definitely need a bit of a more bold approach if we want to get ahead of the bow wave of obsolescence that we know that is coming, it's well-documented, of our--of our sealift forces. So, taking the outlay that is laid out in the CSBA report is one way to do it. We have to just find the right mix, the affordable mix, that still meets the capability requirements that General Lyons lays out to meet the OPLAN [operations plan] square footage and dry fuel--and wet fuel movement. Mr. Garamendi. Admiral Williamson. Admiral Williamson. Yes, sir. As I said, my leadership--we are absolutely committed to closing this gap in the near term. Mr. Garamendi. Are you willing to think outside the box? Admiral Williamson. Sir, we are willing to partner with anyone to be able to close that gap sooner, and we will work shoulder to shoulder with Admiral Buzby, TRANSCOM, industry, and your staff. Mr. Garamendi. I yield back. Mr. Courtney. Thank you. Thank you, Mr. Chairman. Mr. Lamborn. Mr. Lamborn. Thanks. Boeing's performance issues with the KC-46--and by the way, I am going to ask about refueling and tankers because I share concern on the sealift capability but I think we have been addressing that really well so far. But on the KC-46, it puts everyone in a bind. It is hard-- it seems like it is going to be hard to even support day-to-day combatant commander requirements not to mention the surge required in case of major contingencies. So, given the safety issue of the boom operators not being able to see that last 18 inches, and I am not sure that it is an acceptable risk to say they are still ready to go into a major conflict. So, General Lyons, could TRANSCOM meet its refueling requirements if the Air Force was permitted to retire its KC- 10s but Congress were to direct it to retain additional KC-35s so as to have 23 or so additional craft? General Lyons. Sir, as you know, we have been working with the Air Force and the delay in the KC-46 does in fact cause about a 30 percent reduction in outputs and day-to-day competition space. So, we are talking about non-mobilized enterprise. We would like to remediate that down to about 10 percent reduction and that is where the delayed retirement for the legacy fleet KC-10s and the KC-135s come into play. And I know the Air Force--I know Dr. Roper and so forth has talked to you and they are working very, very hard with Boeing, and Boeing has got to come through and deliver a technical solution. I want to talk to the Air Force on the programmatic piece. But for an operational piece, we are approaching a high window of risk if we continue to retire those jets. Mr. Lamborn. And, General Nahom, is contract refueling a viable option to bridge the gap as one way to meet this need in case of further--either a contingency or the need of a surge? General Nahom. Sir, we are looking at contract refueling, and that wouldn't really be for so much contingency. That would be some of the CONUS [contiguous United States] requirements. Mr. Lamborn. For day-to-day? General Nahom. Some of your training, your tests. Mr. Lamborn. Okay. Okay. General Nahom. Things that you do here at CONUS, not more of your day-to-day overseas. Mr. Lamborn. Okay. I understand. I understand. So, if so, would TRANSCOM or the Air Force be the more appropriate party to manage the contracting process? General Nahom. Sir, I don't want to speak for TRANSCOM here but I believe--I believe that would fall under the Air Force as we--you know, it is our duty to supply the air refueling that is needed for the joint force and we take that seriously right now. The KC-46 is giving us--it is quite a challenge and we have 31 of them sitting on the ramps right now and, as you said, day-to-day usage--the risk is just too great to use those in a day-to-day usage. The chief did say recently that we would use these in time of a national emergency. We would use the airplane to whatever capability we would--we could get out of it. But we are not willing to use it day-to-day. This is where our partnership with TRANSCOM is critical right now, to make sure that we do retain enough legacy refueling that we have for day-to-day operations. But we are going to have to accept some risk in the near term so we can correctly modernize too our two-tanker fleet, which is our 135 and our KC-46, and I think this is going to be the balance that we are going to look to--obviously, the guidance from this committee and working with TRANSCOM to make sure we get that balance correct. Mr. Lamborn. And, General Lyons, any last thoughts before I turn back my time? General Lyons. No, sir. The air component--the Air Mobility Command is in fact at the direction of Congress as well, looking at the feasibility, the business case, of outsourcing some level of commercial aerial refueling options, much like we do in the CRAF [Civil Reserve Air Fleet] program for commercial augmentation. And my commitment to General Miller is to support her in any way that she requires support and we will take a look at that, sir. Mr. Lamborn. Okay. Thank you. Mr. Chairman, I yield back. Mr. Courtney. Thank you, Mr. Lamborn. Congresswoman Luria, the floor is yours. Mrs. Luria. Thank you. General Lyons, in your statement you noted that the readiness of sealift today is 59 percent against the stated goal of 85 percent. That 85 percent goal, is that against the 10.5 million square feet of sealift that we currently have? General Lyons. That is correct, ma'am. Nineteen---- Mrs. Luria. But is 10.5 the requirement or is that requirement actually significantly higher? General Lyons. Well, the requirement is 19.2 million square feet of roll on/roll off space. Mrs. Luria. So, 19.2. So, if we have 60 percent of the 10.5 million that is about 6.3 million square feet currently, and if you actually find the percentage of that 19.2 million it is only about 30 percent that we currently have. So, I am just looking at this number and I am confused because if we are only meeting 30 percent of that requirement, it seems like this would have been a much higher priority over the preceding year. And when I asked this question last year about our ability to meet sealift demand, both you and your deputy stated that we could meet that demand but just not in the time required was what was said this year. So, I kind of see one of two things is either true. Either you don't need the 19.7 million square feet or the combatant commanders' timeline in their TPFDD [Time Phased Force Deployment Data] doesn't matter. So, which is it if you are saying that you can meet the requirement but you don't have the square footage or you can't do it in the amount of time? Which one is the answer? General Lyons. No, I think that is quite a reasonable question. The 19.2 million square feet requirement has been really consistent throughout multiple strategies over the years. We do the force sizing work on that, as you know. And so, when you don't have that, and we don't have that today, there is direct implications on the arrival of the forces relating to the TPFDD, relating to the global [inaudible] war plan. And so, to your point, that is the requirement and we are unable to meet that today. That is the bottom line. Mrs. Luria. Thank you. And in this budget year, I understand that Military Sealift Command--MSC--has allocated $50 million towards building a new headquarters building and I also understand that this is not coming from MILCON [military construction] construction. It is coming from their O&M [operation and maintenance] account so actually money that would go towards fuel, maintenance. So why, if you are at 59 percent readiness on sealift, why is the MSC spending $50 million of that money that could be going towards maintenance and these other upgrades for these sealift ships on the new headquarters? General Lyons. Well, I won't talk to the--from the Navy's position on headquarters on the title 10 requirements. But I will say this. When the MSC headquarters got BRAC'd [base realignment and closure] from the Navy Yard down to Norfolk, it is currently in probably two dozen or more different facilities. This is the headquarters that, over time, has migrated to an administrative headquarters. We are trying to migrate that back to a warfighting headquarters consistent with the strategy. So command and control is a very important part of the warfighting function and it really is important that Admiral Wettlaufer has a command and control capacity that is facilitated by a facility down there at Norfolk and I think that is what they are working on. To be honest with you, I don't exactly know the costs associated with that. But there is a lot of work to be done in that area. Mrs. Luria. But do you agree with that funding for that facility coming directly out of the operations and maintenance funding that could be going to fix the problem with sealift rather than a military construction project, which would be the normal means for funding a building and a headquarters? General Lyons. Well, to build a new headquarters would be military construction, as you know. There are other ways to improve and modernize your facilities within SRM [sustainment, restoration, and modernization] and other accounts. It is not an either/or trade, right. You must have mission command capacity to command and control your fleet that is a global fleet. So, we have to address the command and control construct for the maritime component. We also have to address the readiness issues on the fleet. Mrs. Luria. So, I understand that that is being prioritized this year over fuel for our MPSRON [Maritime Prepositioning Ship Squadron] forces, over maintenance on these sealift ships. That has become a priority this year is this $50 million towards the headquarters over those urgent needs for the sealift fleet? General Lyons. Again, Congresswoman, this is--we are not talking about--you know, we are not talking about plush headquarters here. We are talking about a warfighting apparatus to command and control a global fleet that we must employ in combat operations. It is a warfighting function. Mrs. Luria. Thank you. I yield back my time. Mr. Courtney. Thank you. Mr. Kelly. Mr. Kelly. Thank you, Chairman, and thank each of you for being here today and thank you for your service to our great Nation. I want to talk a little bit, General Lyons, about--we just recently did an EDRI [Emergency Deployment Readiness Exercise]. I guess about a year ago out at Gulfport where we're exercising alternate and contingency ports. I think that is great. Tying that in, how much are you working with AMC [Air Mobility Command] to make sure that what we lack currently in sealift capacity or air capacity to make sure that we have preposition stocks that are not too much at risk but are in where we think the next fights may be? Because there is one way--you either get them there after the conflict starts or either you have to have them there, which puts them at a little bit at risk, so that we make sure we can go. Everybody has a plan--do you get hit in the mouth, and so you want to make--you have enough. We don't want another Korea where we almost get pushed off the peninsula by the time we get forces there. So how much do you work with AMC to do that? General Lyons. Sir, we work very closely with the services who are responsible to determine their preposition requirements. In this case, I think you are talking about Army--Army Materiel Command. So, we work very, very closely with them both in maritime prepositioning as well as supporting their preposition ashore programs. Mr. Kelly. I think that is real important. And General Nahom, if you can kind of--the same way with the Air Force, either through staging, basing, or prepositioned planes or stocks or munitions, what are you doing to make sure that we have the right stuff forward quickly enough. Are you working with the--I guess the AMC of the Air Force to do the same thing? General Nahom. Sir, I don't want--I would say there is a lot of prepositioning forward that happens through our overseas combatant commands and, certainly, our major commands that support that in the Air Force and we work very closely to make sure they have the necessary--the necessary, you know, tools. In terms of the equipment we would need to get to the fight, obviously, we work very closely with TRANSCOM to make sure we have the appropriate capacity in which to defeat the fight as necessary. Mr. Kelly. Because I think while we wait on the sealift or airlift to get to where we need to be, we are much leaner everywhere around the world than we were when I was a young guy. You know, we were doing Defender 2020 which is kind of like the old Reforgers but we had 300,000 troops forward then. We had all kind of airbases forward then. We don't have those same things. But we also have better allies probably who are more prepared today, but a combination--I just want to make sure that we are--until we get the sealift gap closed we need to make sure that we are ready to fight tonight. General Lyons, I am concerned about the future of the C-17 Globemaster sustainment. The current PBL [Performance Based Logistics] contract between Boeing and the Air Force seems to be a model program which has delivered 80 percent-plus mission- capable rates every year for more than 20 years, a readiness rate that makes the C-17 have the highest OR [operational readiness] rate in the Air Force. I understand the Air Force is considering a change to the sustainment strategy for the C-17 and concluded a business case analysis last year. Is that accurate? General Lyons. Sir, I am not familiar with that. I will take that for the record. [The information referred to can be found in the Appendix on page 83.] Mr. Kelly. I guess that answers my next question. Was TRANSCOM consulted in the business case analysis? General Nahom, do you have an answer to that? General Nahom. Sir, the change to the PBL, I don't have that information at hand. I am going to have to get back to you for the record, sir. [The information referred to can be found in the Appendix on page 83.] Mr. Kelly. Okay. And which goes to my next question, which I know you can't answer but I am going to ask it for the record. And would this change to the sustainment strategy affect the Air Force Reserve and Air National Guard, which have C-17s? [The information referred to can be found in the Appendix on page 83.] Mr. Kelly. Finally, I guess I just want to talk about the-- a little bit--we have talked a little bit about the tankers-- the refueling tankers. And, guys, we just got to get this right and it goes back to we got to think outside the box if we have to do something differently in the interim. But I don't think we can ever again put ourselves in a position like we did in Korea or like we did at the early stages of World War II or World War I where we don't have enough to go toe to toe, because what that means is we are fighting for footholds or ports or airbases. Soldiers, sailors, airmen, and Marines die. And so, we have got to get the long-term solution. But in the interim I just ask that you guys think outside the box to use every tool in the box that we have to be able to close and fight tonight. And with that, Mr. Chairman, I yield back. Mr. Courtney. Thank you, sir. Mr. Norcross, you are recognized. Mr. Norcross. Thank you, Chairman. I would like to thank the witnesses for being here today. I want to focus on three quick issues: aerial refueling assets, the strategic sealift, and if I have time, the CMV-22. First one. Three major issues left on the tanker--the tie- downs, which has been addressed and is being fixed; the boom stiffness, which was actually on us; and the remote visual system, which is absolutely a critical problem. But one thing we have to remember is that cost is on Boeing. This is a fixed contract which needs to be looked at the way we do it because the requirements has been an issue on this piece, literally, going back years. So, when we look at that, and I have great respect for my colleagues on the other side of the aisle, but the idea of halting this contract to me would be an absolute critical mistake. Ninety-five percent of the time of building that plane doesn't involve the remote vision system. We can build those, continue its mission while it is being fixed. We are too far behind and we are talking about great power competition, I don't want to send an F-35 up when we are in a major fight, especially if some other rather negative things happen. They are not going to be able to fly. The KC-46 can still fly. So, the idea of stopping a contract because of Category One--we wouldn't have aircraft carriers, we wouldn't have an F- 35, we wouldn't even have submarines. We need to go at this. Boeing's on the hook here. They need to perform. There is no question about it. But the idea of delay, I think, would be an absolute critical mistake and something that we shouldn't go into. But shifting over to the sealift, corona [coronavirus] has taught us something in a lesson that we should take--that when our supply chain is outside the United States, we are at risk. First suppliers that are coming in from China, we are seeing things delayed and that also goes with human capital. So, those mariners that I have heard Mr. Buzby talk about time after time, you don't grow them overnight. This is a focus and we can only do it with an American fleet. So, I echo the comments of my colleagues here that this is a critical component that we don't fix overnight. Training takes a tremendous amount of time and we need to make sure that in our budget that the money is where it needs to be to supply that next generation. So, to Admiral Williamson, talk to me about the next generation of supply chain going to our aircraft carriers, the CMV-22. What is the transition that will take place when that comes in? I think it is 2020, 2021 when your first one gets delivered for the Carl Vinson. Admiral Williamson. I am sorry, sir. I didn't hear the first part of your question. Mr. Norcross. The CMV. The Osprey. Admiral Williamson. Yes. Mr. Norcross. Is that next chain of supplies for our carriers that is coming on in 2021. Talk to us how that support mechanism is going to transition from what we presently have with the CODs [carrier onboard delivery] and others. Admiral Williamson. Sir, I am not familiar with that in my portfolio. I would love to take that for the record and get back with you. I can speak to how we have incorporated the 22 onto other platforms and how we are using that to look at distributed maritime ops. [The information referred to can be found in the Appendix on page 83.] Admiral Williamson. For example, EPF [Expeditionary Fast Transport], which is an auxiliary platform, we are building small, fast, light auxiliary. Looking at the next phases of that with the VS-22 gives it about a 350-mile nautical range capability. In addition to that, we have incorporated it into our refits of our hospital ships, offering that an additional 350-mile capability as well. And so when you look at the distributing--the supply chain across the Log [Logistics] Continuum from the inter to intra, the last tactical mile, obviously, I think the--and looking at the distance of which we have to do in distributed maritime ops, the VS-22 provides us some extremely good capability to ensure that our sailors and Marines keep supplied. Mr. Norcross. So, we will follow up on the carriers' supply ship and I yield back the balance of my time. Mr. Courtney. Thank you, Mr. Norcross. Mr. Bergman. Mr. Bergman. Thank you, Mr. Chairman. Admiral Buzby, you mentioned about building ships on time, on budget. Did I get that right? Admiral Buzby. Yes, sir. Mr. Bergman. Okay. Vice Admiral Williamson, I have never heard that from the Navy. On time and on budget for ships. We have had hearings over the last couple of weeks and many members of the committee here have expressed concern about the Navy shipbuilding plan. Okay. I just wanted to--I am not expecting you to answer. I am not asking you a question. So, Admiral Buzby, back to you. What is it that is unique to the maritime industry that allows you to be able to make that statement? What plans, planning, whatever you want to call it--P2s, P3s--have been put into place to allow you to make that statement? Admiral Buzby. Excellent question, sir. The key point to commercial contracting for new-build construction is a couple of very key points. You go in with a very mature design that is well understood, with the requirement is well laid out and that the shipyard fully understands what they are going to have to build. So, the requirement is crystal clear, and right up front before they sign the contract all of the risks are negotiated out. You know, you are--you know, the risk is either retired through understanding of the requirement or it is retired through costs that is added in by the shipyard to take care of any fluctuation in the design as they are building it. So right up front, that is, you know, agreed to rather than having it sort of float along and be a surprise as the ship is being built. That is really the beauty of it. Mr. Bergman. As you are--as you are working with industry to work out to see where the risk is, these ships are going to sail across the seas. There is no guarantee that they won't face some level of enemy threat, if you will. As part of the risk mitigation, is that part of the discussion to some level of extent as to what kind of risk we are assuming if this ship was to take a hit? Admiral Buzby. The risk primarily that we are talking about is really design risk---- Mr. Bergman. Okay. Admiral Buzby [continuing]. And construction risk. The risk that the ship faces once it is in the custody of the government and off--or the commercial entity doing its thing, that is operational risk, which is separate than this construction risk. Mr. Bergman. Okay. Well, I guess, again--again, this is more of a statement, Vice Admiral Williamson, about I would really--I think a lot of us would like to see the Navy at least consider at what level can we use this industry model and then as we got our warfighting ships--you know, it takes on a different character but still be able to get as close to a budget, if you will, a business proposal that makes sense that this committee can look at and say it is--you know, this is--we can fund this because it makes sense. Back to you, Mr. Buzby. While the maintenance of the Ready Reserve Force is important, so too is the development and training of the mariners to command the vessels and to crew the vessels. How are you leveraging modeling and simulation and other emerging training technologies to better prepare our merchant mariners? Admiral Buzby. Sir, that--using simulation is basically mainline now in the training of today's mariners both on the unlicensed side and on the licensed side. Matter of fact, I visited all the State maritime academies, all six of them, plus Kings Point on a regular basis. All of them have fairly sophisticated simulation capability. The Coast Guard recognizes 30 days of sea time in exchange for simulator time as it stands right now and probably more going forward. At Kings Point we are rededicating an entire building and rehabbing it just to be a simulation center, going forth, with the most modern simulators. So absolutely critical to the training of a modern--to do it efficiently, to do things in the simulator that you can't do without very high risk of failure and potential calamity if you try and do it for real at sea. Mr. Bergman. As a veteran of simulation in my flying career, the whole object of simulation is to be able to scare, if you will, the pilots or the mariners to the point where they learn, and you don't hurt anybody or destroy any equipment in the process. Because if you are not in their minds when they get into the real thing, they are not as prepared as they could have been and we--through the failure to leverage the simulation. So, with that, Mr. Chairman, I yield back. Mr. Courtney. Thank you, Mr. Bergman. Mr. Golden. Mr. Golden. Thank you. Just a question for the panel. Anyone can field this one. I imagine that USTRANSCOM is looking to remain on the cutting edge of technological innovation as part of this discussion as well. Just as an example, back home in Maine at the University of Maine Composite Center it is also the advanced additive manufacturing facility that they have up there for research and development. They have the largest 3D printer in the world where they recently did a 25-foot 5,000-pound boat in about 72 hours; if you think about that in regards to potential for just design, testing, research, and development. They've got a big basin up there for testing these types of things out as well. But I don't think they believe they are going to continue to have the largest 3D printer in the world for long. They are going to go bigger and they are thinking about unmanned and things of that nature as well. They also have made composite shipping containers, as an example, where you can, first of all, think about the fuel savings to the Navy, potentially, with shipping containers that are half as heavy as steel, the kind of logistics potential that comes with something that is stronger than steel but also able to collapse in upon itself and stack in case you are not using it all, but also fiber in the composite material so now you are attached to the grid so you can do inventory scans. You can do security scanning. It doesn't block GPS [Global Positioning System] and transmission signals and things of that nature. You know, they are working hard for the future. So, I just wanted to give you all the opportunity to discuss ways in which TRANSCOM is partnering with industry in general to adapt and innovate to meet the sealift requirements that the joint force needs in the future. General Lyons. Congressman, I will start and I will defer to the--particularly to the services. But I think you are right, it is absolutely amazing the technology and innovation that we see across all of our universities and campuses. At TRANSCOM, specifically at the headquarters, we are really focused on decision support systems and command and control systems, big time into enterprise data environment, enabling machine learning, thinking about artificial intelligence, and these kinds of things. And then at the weapons systems level, I mean, the services, largely, work the weapons systems level and those kinds of things. So, I will defer to the services if they have additional thoughts on this. But I agree, the rate of change is impressive. Admiral Williamson. Sir, thank you for the opportunity to comment. Additive manufacturing, we have already started to experiment with that on our ships. Stennis used this on her last deployment. And to your point, being able to get a part that is necessary to continue combat operations in a short period of time, we think there is some incredible opportunities there. When we look at--you know, earlier we talked about the supply chains and being able to get those things done. Additionally, digitalization of our supply chains, being able to take, obviously, various different systems, bringing that together to give not only at the tactical level but the operational level and strategic level the commanders real-time information to make real-time decisions I think is a road we are exploring and already making some progress. Thank you. General Nahom. And, sir, obviously, no ship examples. But I would say for the Air Force if you look at where we are going with digital design it is going to really revolutionize how we--how we build aircraft in the future. The perfect example that doesn't apply to the portfolio here but our new trainer, the T-7, which is the first aircraft 100 percent digitally designed, and you look at how we are manufacturing it is not about a different aircraft. It is about building an aircraft differently, and that is going to lead into the future as we go beyond some of the current mobility assets we currently fly right now. Mr. Golden. I thank you all for that, and let me extend an invitation up to the University of Maine on their behalf, if you are interested, you know, from the perspective of additive manufacturing. I know they are looking at potential jet fuel, you know, composite and additive manufacturing. Makes sense in Maine. We've got the largest contiguous forest--working forest in North America. So, we are the wood basket, so to speak, and you can do an awful lot with it. So, thank you. Mr. Courtney. Thank you, Mr. Golden. Mr. Conaway. Mr. Conaway. Thank you, Mr. Chair. A couple of real quick questions. It won't take long. General Nahom, KC-46A is not qualified for tanker missions but it can do other things--air ambulances, other things. Have we actually used any of those aircraft in a mission of anything other than training yet? General Nahom. Sir, right now, it is--the use of the aircraft is currently in a beddown in the testing. We are looking for the other capabilities, the cargo and, certainly, our medical evacuation, and we are looking to certify those capabilities very quickly. You know, unfortunately, those will be certified before the air refueling but we will be able to get to those kind of missions very quickly. Mr. Conaway. I am sorry. Did you say they should have been certified for that before the air---- General Nahom. No, but for--I mean, we would have--in a perfect world we would have air refueling before those capabilities. Mr. Conaway. Okay. General Nahom. But it looks like, based on the remote visual system, we are going to have the other capabilities first. Mr. Conaway. For those capabilities, I mean, they are obviously planned for ahead of time. I have been on board one of those--the planes and there is a lot of room. General Nahom. Yes, sir. And that is--we are just bedding down the first airplanes. You know, they are at McConnell now, soon to be at Pease down in North Carolina, and we are--right now, we are working on those missions to get those certified and out to the fields. Mr. Conaway. Okay. A little more mundane. General Lyons, you have got a--gone to a single-move manager for movements. I guess the idea was to be more efficient and customer friendly. How are you going to make sure that it doesn't devolve into just the big guys getting the moves and the smaller movers get weeded out or pushed out of the way and customer service deteriorates rather than improve? General Lyons. Congressman, it is a great question. I will tell you, the way we started this is we recognized that the current program we have was never going to deliver the level of accountability, transparency, and incentivize the level of capacity we needed for peak. So, the restructure in our relationship with industry through the single-move manager construct was really about making sure that our relationship with industry was clearly delineated with key performance parameters. As I always say to the moving companies that are out there today, the same moving companies if you are performing well you will still be performing well in the future program. So, the single-move manager will absorb the global network as it exists today. We will measure the level of performance and incentives that will incentivize growth over a longer period of time in a contractual relationship. And let me--I guess to be more clear, Congressman, I will give you a couple of examples. So, if I--if I asked--if you asked a question what company, and I won't name the company publicly but what company has the most suspensions and warnings? I can tell you that company has got over a thousand suspensions and warnings, and under the current program they did $26 million of business in the Department of Defense last year. So, we think that is unacceptable. We think it is unacceptable that the 950th company of 950 still show up at your curbside. So, what we are really trying to do is keep the good companies, incentivize the growth of the good companies, push out the bad companies and incentivize the performance inside that relationship and hold industry accountable inside the Department. The Department can hold me accountable. Mr. Conaway. So there is a recommendation, though, that there could be new companies come into the scheme that would have some sort of a fair shot at getting to be able to build a reputation that they are either good or bad, and you are looking at making sure that new folks can come in, because there will be companies that go out of business, especially ones you push out of the--out of the system if they are not functioning. But you are looking at the whole package, not just allowing some single-source--single-move manager to create a fiefdom of good friends who get all the business. General Lyons. No. No, sir, you are exactly right and we want to incentivize new players that come into the market that are not incentivized to come in today. Mr. Conaway. All right. Thank you. General Lyons. We actually want that. Thank you. Mr. Conaway. Thank you. I appreciate it. Yield back. Mr. Courtney. Thank you, Mr. Conaway. Mr. Brindisi. Pass. Okay. So, all right. We have done one run-through of the committee. It looks like that votes are still a little ways off. So, I think we, again, have an opportunity for a second round of questions and, again, I will just lead off. I just have, actually, just one question for General Lyons, which is, again, last Congress, you know, we definitely dug into the issue of, again, our shortfall in terms of maritime tanker support and during the NDAA [National Defense Authorization Act] we established a tanker security program modeled off the successful Maritime Security Program, which Admiral Buzby referred to earlier. This program would have helped maintain a fleet of 10 U.S.- flagged tankers to augment our fleet during contingencies. Unfortunately, that mark fell out during the conference process. But, again, we are very interested in moving forward on it. Again, I just, for the record, can you state whether or not you favor a program like this and can you speak to--if so, can you speak to the benefit of a program like this in helping TRANSCOM? General Lyons. Chairman, thank you, and thanks for the language in this--last year's bill. As you know, we will conduct the study for the Department to really assess our accessibility to the--to the market--to the global market in time of crisis. And so, I think you are alluding to, as you well know, we have a high dependency on foreign-flagged tankers in crisis in the maritime tanker area, and so we are looking at this. We are ready to report back in about the middle of the year, June timeframe. We are working with Admiral Buzby. I acknowledge I think there is value in a Maritime Security-like program for tankers. We just need to take a look at the economics of it. Yes, sir. Mr. Courtney. Thank you, and, again, I think our subcommittee is definitely serious in terms of taking another run at this. So, thank you. Mr. Wittman. Let us see. Mr. Lamborn. Mr. Lamborn. Thank you. Just a quick question for General Lyons or Lieutenant General Nahom. On global fuel distribution, just to think a little bit toward the future here, given the challenges associated with fuel distribution in a contested environment, I am wondering if DOD needs to designate an organization to manage this for the joint force. While the Defense Logistics Agency does an effective job of procuring and distributing fuel for day-to-day operations, I am not sure that they are equipped to manage distribution during a major conflict with a near-peer adversary. And I guess, General Lyons, I will start with you. Have we reached a point where the Nation needs to become the global fuel distribution integrator and would TRANSCOM be an effective choice for that? General Lyons. Sir, we--you know, in the fall up at Newport with the Joint Chiefs and the combatant commanders, we looked at a war game and that red team looked at the end-to-end liquid energy value chain. I agree with your assessment. I think inside the Department we need to take a look at end-to-end global integration role to make sure that in global posture, not just in the procurement that DLA [Defense Logistics Agency] does, but in global posture, in maritime transport, in air transport, the entire end-to-end view needs to belong to somebody. I have mentioned to the Department--I think at least to the vice chairman--that I believe TRANSCOM is the right place to do that in the future if they so desire for us to take on that mission, much like we do for global mobility. And so, we are working with the Department on that, sir. But I think as we move forward and to great power competition in contested environments, this is something we have to look at. Yes, sir. Mr. Lamborn. Anything to add to that, sir? General Nahom. No, sir. Nothing to add to that. Mr. Lamborn. Okay. Thank you. Mr. Chairman, I yield back. Mr. Courtney. Thank you, Mr. Lamborn. Chairman Garamendi. Mr. Garamendi. Thank you. Gentlemen, the Congressional Budget Office and the Center for Strategic and Budgetary Assessment have both recently identified phased replacement of the National Defense Reserve Fleet assets with a fleet of privately owned militarily useful commercial sealift and tankers as the most cost-effective approach to rebuilding our strategic sealift fleet. The CBO recommends a phased replacement plan of five ships per year, while the CSBA goes further by recommending completely replacing the government-owned MSC [Military Sealift Command] prepositioned fleet with MARAD-chartered commercial ships and expanding the Maritime Security Program to replace today's MARAD Ready Reserve Forces. So, the question, Admiral Buzby, should the U.S. Government transition to a unified national fleet approach that leverages the best attributes of the U.S.-flagged commercial industry to meet our strategic sealift requirements? Admiral Buzby. Thank you for the question, sir. I could--I can't give you an absolute right now. I think, you know, the proposals that CSBA has made are very attractive. I think they need to be more fully teased out. The right balance of where our capability lies on the commercial side and the government-owned side I think it is worthy of further pulling apart and making sure that whatever we decide upon meets the requirements of General Lyons and the combatant commanders. So, there is a--there is a couple pieces to it. There is the absolute square footage piece of it. There is the timeliness piece of it and when it is required; the reliability of both of those forces and how much we pay for those forces. All those factors, I think, need to be put together in a calculus to come up with what is the right mix. That is an option. It makes sense on its surface. I think before we pull the trigger on anything like that, we need to kind of make sure we are marching down the right road. Mr. Garamendi. So, we will pursue it. General Lyons, your thoughts on it and also, perhaps, first what about the cargo? What about requirements that all military cargo, including fuel, be on American-flagged ships, and then on to the question that I just asked Admiral Buzby? General Lyons. Chairman, as you know, cargo preference rules require cargo--general cargo--to move on U.S.-flagged ships. For petroleum, there are not sufficient U.S.-flagged ships in the inventory, to your point, to move all petroleum needs on a U.S.-flagged---- Mr. Garamendi. And there never will be until the only place you could use it is American ships. General Lyons. That is correct. Mr. Garamendi. Yes. General Lyons. That is correct. Mr. Garamendi. So therein lies a solution, doesn't it? General Lyons. Potentially. Chairman, I am open to solutions. Many different ways to approach this. I am really wedded to the outcomes. I do think, to your point, though, sir, on the--whether you could completely outsource the organic sealift fleet for the Nation, for the Department, I don't see us ever going there. I think we will need a DOD-owned fleet at least for the first traunch out. But the linkages to the commercial industry are inextricable, both in terms of mariners, in terms of additional capacity, and in terms of global networks. What the report didn't specifically address is how you would generate the cargo required to move under the U.S. flag that would then generate the ships and then generate the crews. I think cargo is king. If we have the cargo, to your point, moving under the U.S. flag, we have got--we have got a viable U.S.-flagged fleet. Mr. Garamendi. The report does recommend several strategies to develop the cargo, one of which is you use American ships when you are moving military equipment--Coast Guard, on and on and on. So that is one way the cargo can be generated. The rest of it is we are going to have to find some way to make these ships available and that is either going to be done with the Navy budget or, as Mr. Wittman suggests, the Army budget. Either way, it is coming from the DOD or a strategy that would leverage the commercial side of it with militarily useful ships with king's post or--is that it? Thank you. General Williamson, or Admiral Williamson, your thoughts in the next round of questions. I yield back. Mr. Courtney. Thank you. Ms. Luria. Mrs. Luria. Thank you, and Admiral Williamson, I wanted to turn to you on the buy used that we have talked about a few times during this hearing and about the authority that was given to buy seven ships used, and we talked a little bit about the timeline of why it has been so slow to purchase these ships. But can you confirm what you are on track to move forward for now within this year? Admiral Williamson. Yes, ma'am. Thank you for the question. We are on track right now, provided we get the funding in our request to purchase two ships in 2021 and we are planning for an additional ship in 2022. Obviously, this is tied to a commitment by the SECNAV [Secretary of the Navy] to demonstrate to the committee and to Congress that we are going to buy new, and that is reflected in the $37 million RDT&E [research, development, test, and evaluation] for the purchase--the purchase of the design for the ship to start build in 2023, delivery in 2026. Additionally, we put forward a legislative proposal that decouples the procurement of the used ships from the mandate to acquire the used ship--to get away from the mandate to buy the new ships. That does not mean that we are walking away from the construction of new ships. But what it does is allow us to procure used ships at a faster rate to get after the gap identified in the CSBA. Mrs. Luria. So, I understand that the approximate costs estimated to purchase a used ship that would have military utility is approximately $30 million per hull. But do you in--anywhere in the budget take into account the costs that it would take to upgrade these ships both to make them meet ABS [American Bureau of Shipping] standards--which I have heard approximately up to $30 million to take a foreign- flagged ship to meet ABS standards--and then any additional upgrades to ramps, cranes, equipment for the type of cargo that they would carry plus anything that would make them militarily compatible such as comms [communications] and other electronics? What is the total price tag and have you included that in the request? Admiral Williamson. Ma'am, obviously, that is a very detailed question. I would love to get back to you with the details on that if that is okay to work with you and your staff. [The information referred to can be found in the Appendix on page 83.] Mrs. Luria. Thank you, but that is very important. That is very important for the committee, because if it is a $30 million price tag to buy the ship but then you need to come back and ask for $30 million more to make it useful for its purpose, we need to know that going into this process. Admiral Williamson. Yes, ma'am. Mrs. Luria. So, thank you, and I yield back. Mr. Courtney. Thank you. Mr. Golden. Okay. Actually, I did mean to ask one more question to General Lyons, and as long as we've got a few more minutes before the next vote series, again, the last time this country recapitalized the Ready Reserve Fleet, Congress created the National Defense Sealift [NDS] Fund as the mechanism for doing so in an affordable and nondisruptive way which, again, sort of spread the costs throughout the Department of Defense, as we heard earlier. Again, I just want to just ask you for the record, General, do you support and see value in this fund as we begin a new recapitalization effort? General Lyons. Chairman, I absolutely do. I think we are going to have to have an appropriation that is NDS-like to move forward. I think that is a--and when I met with Secretary Spencer back in the September timeframe he mentioned the same kind of approach and the CNO, I believe, is on board as well. Mr. Courtney. Great. Thank you. I appreciate that. It is helpful as, again, we move more towards the mark. Chairman Garamendi. Mr. Garamendi. Where to go here? The--perhaps I will just let it go at this point. My colleagues have asked most of the questions that are out there. What I am going to do is my last series of questions indicated that there was a path that we ought to explore and that we should thoroughly analyze a different strategy than the one we have been on. So, General Lyons, Admiral Buzby, and Admiral Williamson, I would like to do that with you and with the Air Force. Oh, there is one thing on the KC--excuse me, on the C-17s. They really cannot get into a contested environment and survive. There is an upgrade that we ought to be looking at for the C-17s. I will leave that to another question. But back to the sealift capacity here. Looking forward to a robust discussion about a different way of accomplishing our goal and where we presently are. We can do the oil piece of it. That is just a small part of the 86 oilers that are said to be necessary. How do we get the rest of them? So, let us spend some time working our way through that and use this year to get us on a new charted path. Thank you. I yield. Mr. Courtney. Thank you, Chairman. Again, thank you to all the--thank you to all the witnesses. You know, your testimony was really helpful and I am sure the dialogue will continue as we get closer to the April markup. Thank you very much, and with that we close out the hearing. [Whereupon, at 3:56 p.m., the committee was adjourned.] ======================================================================= A P P E N D I X March 11, 2020 ======================================================================= ======================================================================= PREPARED STATEMENTS SUBMITTED FOR THE RECORD March 11, 2020 ======================================================================= [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] ======================================================================= WITNESS RESPONSES TO QUESTIONS ASKED DURING THE HEARING March 11, 2020 ======================================================================= RESPONSE TO QUESTION SUBMITTED BY MR. NORCROSS Admiral Williamson. There is no shift in the chain of supplies for our carrier moving from C-2A to CMV-22. In the Navy Aerial Logistics Concept of Operations, Navy-unique Fleet-essential airlift, composed of fleet logistics support squadrons operating the C-130T and C-40A aircraft, supports the forward logistics movement of critical wartime supplies and personnel from the aerial point of debarkation to the forward logistics site (FLS) or other fleet support location as dictated by the forward deployed nature of naval operations. Fleet logistics multi-mission (CMV-22B) detachments then provide the final link to finish the last leg of the logistics trail from the FLS to the Carrier Strike Group via the CVN. In great power competition, the goal is to ensure survivability of this logistics trail through unpredictability and use of dispersed/mobile logistics sites. [See page 21.] ______ RESPONSES TO QUESTIONS SUBMITTED BY MR. KELLY General Lyons. Yes, the Air Force completed a C-17 Product Support Business Case Analysis in March 2019. Although I will defer to the Air Force to elaborate on the details of that BCA, I am confident knowing that Air Force senior leadership continues to assess options to improve C-17 sustainment in terms of cost, performance and risk--which, as you know, is critically important to our strategic airlift fleet. [See page 19.] General Lyons. The Air Force's Air Mobility Command (AMC) represented the interests of all C-17 users throughout the Product Support Business Case Analysis effort. AMC is the air component of the U.S. Transportation Command and is responsible for a Total Force effort to execute Rapid Global Mobility and enable Global Reach missions. [See page 19.] General Nahom. The Air Force's Air Mobility Command (AMC) represented the interests of all C-17 users throughout the Product Support Business Case Analysis effort. AMC is the air component of the U.S. Transportation Command and is responsible for a Total Force effort to execute Rapid Global Mobility and enable Global Reach missions. [See page 19.] ______ RESPONSE TO QUESTION SUBMITTED BY MRS. LURIA Admiral Williamson. The President's Budget for Fiscal Year (FY) 2021 requested $60 million in Operation and Maintenance, Navy funding to purchase two used, foreign built ships. In the March 2019 market survey, there were 58 vessel responses of which nine were roll-on/roll- off vessels that met or exceeded the minimum operational requirements. Of those nine, five vessels are enrolled in the Maritime Security Program, therefore, they are U.S.-flagged, deemed military useful by the U.S. Transportation Command (USTRANSCOM), and do not require major modifications or conversions. Three of these five vessels are between the ages of 20 and 25 years with an average estimated procurement cost, including reflagging and reclassification to meet ABS standards, of $30 million each. Vessel surveys scheduled to be conducted on proposed ships for purchase will be conducted in the 4th Quarter of FY 2020. Any additional upgrades required to make the used ships militarily compatible, such as communications and other electronic equipment, would be assessed and the total price tag for those additional upgrades would be included in a future budget submission. [See page 29.] ======================================================================= QUESTIONS SUBMITTED BY MEMBERS POST HEARING March 11, 2020 ======================================================================= QUESTIONS SUBMITTED BY MR. WITTMAN Mr. Wittman. In recent years, commercial ship owners and operators, and certain classification societies, have begun using digital analytic tools and artificial intelligence (AI) capabilities to aid in the overall maintenance and management of vessels. These tools also apply to the commercial offshore exploration and drilling industries. These tools can be particularly important for tracking the readiness of our nation's fleet, as highlighted in the recent turbo activation of sealift vessels. The material condition of many government vessels is a major issue affecting our nation's ability to go to war. These advanced analytic tools have been incorporated into a pilot program to determine their effectiveness at Military Sealift Command (MSC) within U.S. Navy. Ultimately these tools can and will be used with the classification societies in a condition-based maintenance approach versus the former time-based methods of periodic maintenance on ships. These tools, coupled with new classification methods, are expected to streamline maintenance planning and provide clarity into the readiness status of MSC's vessels. These tools can equally benefit the U.S. Navy surface and auxiliary fleet as well as the sealift fleet. Since Navy already applies commercial classification rules for shipbuilding and lifecycle operations, the potential exists for these advanced digital classification and AI tools to assist Navy and MARAD with ship management and maintenance planning. To that end: 1. With the success demonstrated to date at MSC, is the U.S. Navy and MARAD considering incorporation of digital analytic tools and AI methods into other surface vessels? 2. If not, why not? If yes, when does Navy and MARAD plan to utilize these tools for maintenance planning and condition monitoring on its ships? 3. Has Navy considered a pilot program with these new tools similar to the pilot program MSC has underway? If no, why not? Admiral Buzby. The same challenges that exist for ensuring the readiness of our Nation's aging surge sealift fleet exist with respect to adopting new technologies. To that end, MARAD has always been open to incorporating new technologies into vessel management and maintenance when appropriate and resources are available to do so. For example, MARAD will evaluate technology to perform tank inspections and robotic hull cleaning, which could decrease resource requirements and increase availability of vessels. In addition, the American Bureau of Shipping (ABS) has introduced Image Recognition Technology that has received class approval. There are more than 20 approved providers that perform these surveys. It is anticipated that all these processes will become more available for the ship manager/owner; however, there is presently a long lead time to apply for these services. It is difficult to make any type of gains for a fleet that exceeds 46-years of age; however, MARAD recognizes that improving maintenance means a reliance on data and effective maintenance protocols that don't simply focus on time. MARAD recently attended the ABS Special Committee for Ship Operations meeting in February 2020, and we continue to review emerging maintenance approaches proposed by the classification society. In 2016, MARAD provided Chief of Naval Operations staff (OPNAV N2/ N6E) with points of contact at MSC for development of a digital twin for the LMSR ships and fleet oilers (T-AO), however these digital twins are most relevant for new ships where automation, and instrumentation are included from new construction. Additionally, MARAD operates and maintains the National Defense Reserve Fleet (NDRF), including both Ready Reserve Force (RRF) and the training ship fleet made available to state maritime academies, under memorandums of understanding (MOUs) with both the U.S. Coast Guard (USCG) and the ABS. These MOUs have defined requirements that MARAD must meet, which do not necessarily align with advances in AI and new conditions-based maintenance protocols. In short, advances in data analysis have exceeded legacy procedures, due to technology or regulatory requirements (e.g. 46 CFR Subchapter R for public nautical school ships). MARAD expects the National Security Multi-Mission Vessel (NSMV) Vessel Construction Manager to incorporate as many new capabilities as possible in constructing the NSMVs. The Navy and MARAD will do the same when acquiring used vessels to recapitalize the legacy RRF fleet. MARAD's NDRF, including RRF vessels were last recapitalized during the 1990s, and these ships contain a wide-range of technology and instrumentation from the 1960s through 1990s. Despite modernization that is often limited by available resources, a significant segment of the analysis requires greater instrumentation than is currently available to us. MARAD has a continuous dialogue with ABS staff and with ABS Consulting to identify relevant tools or analysis that could improve readiness and availability of aging vessels. During these engagements, the promise of gains quickly conflicts with the existing conditions onboard an aging fleet of vessels where data for analysis is simply unavailable. While in Reduced Operating Status (ROS), the RRF vessels are effectively in a continuous maintenance availability vice the selective restricted availability of similar Navy vessels. MARAD is working with ABS to identify maintenance protocols that change from time-based requirements to conditions-based requirements. Often, these conditions-based requirements are queued to operating vessels and some are therefore unsuitable for ROS vessels, in long-term lay berth conditions. When practical, MARAD analyzes data resident in MARAD's commercial, off-the-shelf system known as Nautical Systems-Enterprise (NS-E). MARAD is working in conjunction with ABS Consulting, the provider for NS-E, to identify greater and more in-depth reporting and dashboards that use NS-E data for informed decision making. MARAD selected NS-E to support the Ready Reserve Force Management System. This comprehensive data repository helps MARAD and contracted Ship Managers guide preventive maintenance, logistics management, and even resourcing decisions on a highly adaptable and widely used commercial platform. MARAD defers to Navy for comment on development of a pilot program. MARAD is actively participating in the Performance-to-Plan effort being conducted by the Center for Naval Analyses funded by the Director, Strategic Mobility/Combat Logistics Division, Chief of Naval Operations (OPNAV N42). The goal of this effort is to develop decision tools and ``levers'' that can affect readiness to hasten gains in vessel availability and readiness. Mr. Wittman. Classification societies have developed cyber security protocols and notations for industry use that promote security and consequently ensure compliance with government contracting requirements. These cybersecurity and risk management protocols are a combination of human and technical factors and are based on an overall security strategy for the business or organization. Government contracting requirements for cybersecurity continue to evolve and tighten as threats evolve. 1. How does Navy/MARAD measure security capabilities onboard surface ships in ways that allow integration of commercial industry best practices, but with Government security requirements in mind? 2. What has Navy/MARAD done to incorporate the classification standards for cybersecurity piloted by Military Sealift Command for other Navy/MARAD ships and systems? 3. Will the Navy consider specifying classification standards for cybersecurity and tools similar to the MSC pilot program in contracts for leased, contract operated and new construction contracts? Admiral Buzby. MARAD ships maintain a current Vessel Security Plan, approved by the USCG, and handled and protected as Sensitive Security Information. This document includes best practices from the commercial industry, and it is common practice that these are updated as new threats, vulnerabilities, or concerns are identified. The USCG is responsible for interpreting and implementing the International Maritime Organization (IMO) requirements as well as any other commercial maritime cyber requirements for U.S. vessels, including on RRF ships. MARAD encourages all commercial operators to adopt effective cybersecurity measures and to report vulnerabilities as appropriate to ensure safety and continued, effective operations of ships, ports, and the networks that support them. We also, support industry efforts to adopt best practices and see promise in the forward-looking guidance of the IMO to align cybersecurity as a component of safety. Finally, MARAD's contract for services of the onboard network known as the Ready Reserve Force Management System (RMS) includes cybersecurity elements, response, and authentication processes. We will consider increasing the breadth of cybersecurity requirements, and a focus on more support for response to any breach or vulnerability, in future contracts. MARAD also hosted cybersecurity penetration tests, and will continue to do so during FY20. There is no current classification society standard that is required. We have worked with ABS Consulting to determine if ABS's CyberSafety Notation will meet the requirements of the IMO and keep NDRF/RRF vessels available. MARAD permitted ABS to assess the Fast Sealift Ship (FSS) Regulus to fully develop their onboard assessment model. They returned to the vessel to further refine the model, and much of this effort is now being used in the version used for MSC. MARAD believes that the presence of Contract Mariners (CONMARs) on the majority of sealift ships means that any cybersecurity practice should reflect commercial practices with which the mariner pool is likely to be familiar. MARAD's FY 2020 Ready Reserve Force (RRF) program funding from Department of Navy included $1 million that was requested for cybersecurity initiatives. The funding will be used to engage a cybersecurity contactor to perform a baseline assessment of the RRF fleet to help develop additional management practices that meet IMO guidance and are acceptable to USCG and ABS. MARAD defers to Navy to comment on what it will specify with respect to classification standards. MARAD already has cybersecurity requirements in its contract for the operation of the RMS network. The systems, applications, and networks MSC uses are significantly different than from those MARAD uses on the RRF fleet. With regard to the NSMV, the Vessel Construction Manager is responsible for development of cybersecurity considerations which will align with commercial best practices. Mr. Wittman. In recent years, commercial ship owners and operators, and certain classification societies, have begun using digital analytic tools and artificial intelligence (AI) capabilities to aid in the overall maintenance and management of vessels. These tools also apply to the commercial offshore exploration and drilling industries. These tools can be particularly important for tracking the readiness of our nation's fleet, as highlighted in the recent turbo activation of sealift vessels. The material condition of many government vessels is a major issue affecting our nation's ability to go to war. These advanced analytic tools have been incorporated into a pilot program to determine their effectiveness at Military Sealift Command (MSC) within U.S. Navy. Ultimately these tools can and will be used with the classification societies in a condition-based maintenance approach versus the former time-based methods of periodic maintenance on ships. These tools, coupled with new classification methods, are expected to streamline maintenance planning and provide clarity into the readiness status of MSC's vessels. These tools can equally benefit the U.S. Navy surface and auxiliary fleet as well as the sealift fleet. Since Navy already applies commercial classification rules for shipbuilding and lifecycle operations, the potential exists for these advanced digital classification and AI tools to assist Navy and MARAD with ship management and maintenance planning. To that end: 1. With the success demonstrated to date at MSC, is the U.S. Navy and MARAD considering incorporation of digital analytic tools and AI methods into other surface vessels? 2. If not, why not? If yes, when does Navy and MARAD plan to utilize these tools for maintenance planning and condition monitoring on its ships? 3. Has Navy considered a pilot program with these new tools similar to the pilot program MSC has underway? If no, why not? Admiral.Williamson. 1. With the success demonstrated to date at MSC, is the U.S. Navy and MARAD considering incorporation of digital analytic tools and AI methods into other surface vessels?Yes. The digital modeling, data collection and AI approach is designed to apply to any surface ship. The digital twin model of the ships structures are built through finite element analysis tools that would apply to any vessel. Machine learning technology is used for corrosion and coating analysis applied to the digital twin model for predictive analytics and repair recommendations. Similarly, Machinery Health Monitoring (MHM) capabilities can be applied to any machinery whether on a surface ship or an ashore facility. Machinery anomaly detection analytics of gauge data is applied to individual machine digital models. Historical machinery data is used to train AI anomaly detection that is correlated to past failures. The resultant machinery models will therefore detect future anomalies and provide alerts prior to failure. Mature machinery models will ultimately be able to provide failure projections, which will support refined maintenance planning and assist with risk-based decisions. Based on the progress of MSC's pilot program, the Naval Sea Systems Command (NAVSEA) Condition Based Maintenance Plus Enterprise System (CBM+ES) program intends to complete a data analytics project with ABS to develop a suite of algorithms (supervised and unsupervised) to detect early indications of failures on LPD49 Class Drive Train. They will develop corresponding prototype software user interfaces to provide situational awareness of condition assessment. ABS will deliver software requirements to the CBM+ES Program for implementation of ABS algorithms and user interfaces into the Navy's data repository for machinery assessment. This data repository is available to any maintenance technician or engineer to access with a CAC card. MARAD continues to review emerging maintenance approaches proposed by the classification society. MARAD recently attended the ABS Special Committee for Ship Operations meeting in February 2020, and recognizes using data analytics in a condition-based approach is a more effective maintenance strategy compared to time-based approach. time- based 2. If not, why not? If yes, when does Navy and MARAD plan to utilize these tools for maintenance planning and condition monitoring on its ships? Yes, the Navy's CBM+ES program will complete a data analytics project with ABS in FY20. MARAD currently uses analysis of data, resident in MARAD's commercial, off-the-shelf (COTS) system known as Nautical Systems-Enterprise (NS-E). MARAD is working with ABS Consulting, the provider for NS-E, to identify greater more in-depth, enterprise-wide reporting and dashboards that use NS-E data to inform decision-making. MARAD selected NS, later upgraded to be an enterprise wide application to support the Ready Reserve Force Management System (RMS). This comprehensive data repository helps MARAD and contracted Ship Managers guide preventive maintenance, logistics management, and even resourcing decisions on a highly adaptable and widely used commercial platform. 3. Has Navy considered a pilot program with these new tools similar to the pilot program MSC has underway? If no, why not? Yes. Navy is embracing advanced technology to optimize maintenance costs while increasing materiel readiness through the use of sensor based technologies and prognostic health monitoring. NAVSEA is moving forward to increase use of CBM+ technologies where applicable and cost effective. The entire shipboard CBM+ portfolio will be managed by NAVSEA's Chief Engineer. This will ensure tested and validated CBM+ solutions and capabilities are applied across the Navy's fleet, with common data assessment and ship maintenance strategies that can be tailored to specific ship classes/hulls and onboard systems/equipment. Mr. Wittman. Classification societies have developed cyber security protocols and notations for industry use that promote security and consequently ensure compliance with government contracting requirements. These cybersecurity and risk management protocols are a combination of human and technical factors and are based on an overall security strategy for the business or organization. Government contracting requirements for cybersecurity continue to evolve and tighten as threats evolve. 1. How does Navy/MARAD measure security capabilities onboard surface ships in ways that allow integration of commercial industry best practices, but with Government security requirements in mind? 2. What has Navy/MARAD done to incorporate the classification standards for cybersecurity piloted by Military Sealift Command for other Navy/MARAD ships and systems? 3. Will the Navy consider specifying classification standards for cybersecurity and tools similar to the MSC pilot program in contracts for leased, contract operated and new construction contracts? Admiral Williamson. 1. How does Navy/MARAD measure security capabilities onboard surface ships in ways that allow integration of commercial industry best practices, but with Government security requirements in mind? Navy and MSC abide by Department of Defense requirements to assess cybersecurity via National Institute of Science and Technology (NIST) 800-53 standards, Risk Management Framework. There is flexibility in how these standards are implemented as long as the standards themselves are met. Industry best practices can be used as long as they meet the 800-53 requirements. In accordance with Assistant Secretary of the Navy Research Development and Acquisition memo dated 6 Sep 2019, MSC incorporates Defense Federal Acquisition Regulations Supplement (DFARS) 252.204-7012 requirements into all contracts with commercial operating companies, obliging them to abide by NIST 800-171 cybersecurity standards Industry best practices can be used as long as they meet the 800-171 requirements. MSC will be incorporating the Cybersecurity Maturing Model Certification (CMMC) as guidance is released by DOD. CMMC will require third-party certification that contractors are meeting cybersecurity requirements. The number and granularity of the cyber requirements will be commensurate with the sensitivity of the data that the contractor processes. MARAD ships maintain a current, approved Vessel Security Plan, approved by the U.S. Coast Guard (USCG), and handled and protected as Sensitive Security Information (SSI). This document includes best practices from commercial industry and is routinely reviewed and updated as new threat, vulnerabilities, or concerns are identified. MARAD's contract for services of the onboard network known as the Ready Reserve Force Management System (RMS) includes cybersecurity elements, response, and authentication processes. MARAD plans to host additional cybersecurity penetration tests during FY20. 2. What has Navy/MARAD done to incorporate the classification standards for cybersecurity piloted by Military Sealift Command for other Navy/MARAD ships and systems? There is no current classification society standard that is required. MARAD has worked with American Bureau of Shipping (ABS) Consulting to determine if ABS' CyberSafety Notation will meet the requirements of the International Maritime Organization (IMO) and keep National Defense Reserve Fleet (NDRF)/Ready Reserve Fleet (RRF) vessels available. Navy and MSC are guided by the same Department of Defense requirements to assess cybersecurity via NIST 800-53 standards via the Risk Management Framework process for cybersecurity of Navy-owned ships and systems. 3. Will the Navy consider specifying classification standards for cybersecurity and tools similar to the MSC pilot program in contracts for leased, contract operated and new construction contracts? Not yet. To date MSC has been focused on the pilot, the results of which will determine how the classification standards can be incorporated for leased, contract operated or new construction contracts. However, MSC has been working with ABS to develop a government-specific CyberSafety notation, which is an independent review. The notation provides a foundation for the assessment of a subset of NIST standards required for government systems (NIST 800-53, Risk Management Framework) and focuses on the assessment of an organization's overall cybersecurity strategy as well as the security of operational technology (OT) systems. The notation is complimentary, but does not replace the Risk Management Framework requirements. ______ QUESTIONS SUBMITTED BY MR. NORCROSS Mr. Norcross. As the Navy continues its modernization to address great power competition, logistics will be critically important. The Navy has announced the CMV-22 Osprey as its next carrier onboard delivery (COD) aircraft. After completing its first flight operation earlier this year, the CMV-22 is scheduled for its first operational deployment in 2021 aboard the aircraft carrier Carl Vinson. Can you talk about how this aircraft will support carrier-based logistics? Given the enhancements to the CMV-22B, are you considering the platform for a larger mission set? Admiral Williamson. The CMV-22B Osprey re-capitalizes the long- range aerial logistics support and carrier onboard delivery (COD) capabilities from the aging C-2A Greyhound, remaining a critical enabler to carrier air wing (CVW) operations. The CMV-22B is a variant of the MV-22 with additional range and avionics upgrades that enable carrier strike group (CSG) integration and is an integral part of the F-35B/C logistics support at sea Concept of Operations. While the use of the CMV-22B will be primarily for COD, the fleet will benefit from the tiltrotor capability in support of a wide variety of other warfighting areas. CMV-22B secondary missions include: vertical onboard delivery/vertical replenishment as an adjunct to MH-60S; casualty evacuation; Naval special warfare support; missions of state to included distinguished visitor movement and humanitarian assistance and disaster relief; search and rescue as an adjunct to MH-60S. The increased capability of the tiltrotor CMV-22B over the legacy C-2A will allow evolution of the long range aerial logistics mission from a central point that supplies the CSG, to a point-to-point concept. This flexibility will improve the Navy's ability to maintain forward presence by enabling forces to sustain prolonged operations with credible combat capacity. Given the enhancements to the CMV-22B, we are currently considering the CMV-22B for an expanded mission set. Analysis of this requirement increase and the associated force structure requirements is ongoing and expect to be completed in the future. Currently, the CMV-22B program is only resourced to support re-supply of the CSG. With the evolution of Distributed Maritime Operations and Expeditionary Advanced Base Operations concepts, the intra-theater airlift requirement will increase. Following initial operational capability in fiscal year 2021, the CMV-22B program will begin post- production integration of additional capabilities to better enable great power competition and civil aviation requirements. These additional capabilities include: Link-16; required navigation performance area navigation; secondary beyond line-of-sight communications; upgrade to the Mobile User Objective System satellite communications system; Joint Precision Approach Landing System. These capabilities will be critical to ensuring CMV-22B logistics support in a high-end fight. ______ QUESTIONS SUBMITTED BY MR. VELA Mr. Vela. What activities are you doing to further advertise and recruit more mariners? Can you talk to how you've balanced having the right qualifications onboard, while having a large enough pool of citizens to recruit from? Admiral Buzby. The Maritime Administration (MARAD) is exploring a range of options to ensure that a sufficient number mariners are trained and available to crew the U.S. Government owned fleet in times of crisis. This is a challenge, due to the number of vessels in the U.S. flag commercial fleet and jobs available to U.S.-citizen mariners. Maritime Security Program vessel operators employ up to 2,400 of these mariners, which provides some reserve of crew needed. However, concerns exist about having enough mariners to meet sealift needs during a full mobilization exceeding 4-6 months in duration. There continues to be significant interest in working in the industry. Each of the maritime academies has more qualified applicants than they can accept, which is also true of the union, commercial, and community college maritime schools. MARAD is researching ways to ascertain mariner availability and willingness to serve in times of crisis. The goal of this research effort is to help us better determine the numbers of mariners who might be available. MARAD continues to pursue opportunities to encourage private operators to internationally sail U.S. flag vessels that employ U.S. mariners. MARAD further supports the industry by operating the U.S. Merchant Marine Academy (USMMA) and assisting the six State Maritime Academies (SMA) to keep the pipeline of qualified mariners going. Also, pursuant to Congressional authority, MARAD established a program to recognize Maritime Centers of Excellence (CoE) for domestic maritime workforce training and education offered through qualified community colleges and maritime training centers. MARAD leverages its resources to aggressively advertise the opportunities available in the maritime industry. We publish informational booklets and pamphlets and maintain a dedicated phone line for the public to call and have their questions answered. For almost a decade, MARAD, in cooperation with the USMMA and SMAs, has co-sponsored the Annual Women on the Water Conference at one of the seven maritime academies. This gives an opportunity for all aspiring mariners, especially aspiring women mariners, to learn about current issues and opportunities, and network with leaders and role models in the maritime world. Mr. Vela. The Navy has stated it will purchase two used sealift ships this year. Can you provide this committee the actual or planned dates for RFP release, when proposals are due and when the Navy will award the contract for those two ships? Admiral Williamson. The used vessel contracting strategy will be executed through a joint Department of Navy (DON)/Department of Transportation (DOT) acquisition program. DOT's Maritime Administration (MARAD) will lead program management activities using a Vessel Acquisition Manager (VAM) with assistance from the Navy's Program Executive Office, Ships, as the Milestone Decision Authority (MDA). While DOD retains overall oversight, MDA and MARAD are finalizing the processes, roles and responsibilities associated with the stand-up of an Integrated Program Office for the acquisition of sealift used vessels. The acquisition of the used ships is contingent on having a Vessel Acquisition Manager who will assist the DOD/DOT team with identifying and selecting used vessels to fulfill DOD sealift requirements (VAM) under contract. On February 24, 2020, MARAD released a Request for Proposal (RFP) to hire a VAM for the recapitalization of the aging surge sealift fleet. VAM offers were originally due April 1, 2020 to facilitate acquisition of the first two vessels in FY21. Proposals have been delayed 30 days to May 1, 2020 due to COVID19 impacts. Navy and MARAD will evaluate proposals and anticipate awarding VAM contract in July 2020. Following the VAM contract award, the program can proceed with the acquisition of the first used sealift ship, expected in Q1 of FY21, followed by the second ship later in the FY.