Hearing of the Readiness and Management Support Subcommittee of the Senate Armed Services Committee - Opening Statement of Sen. Jeanne Shaheen, Hearing on the Support Programs Contained in the National Defense Authorization Act for Fiscal Year 2014

Hearing

Senator SHAHEEN. Good morning. The Readiness and Management Support subcommittee will come to order.

As I am sure you all know, since you are here, the subcommittee is going to be held in open session for the third straight year. This tradition of transparency is the direct result of our previous chair, Senator McCaskill's efforts, and previous ranking member Senator Ayotte's efforts. And I am very pleased to continue holding this markup in open session.

I believe it is possible for us to discuss our business without any disclosure of classified information. But if there is something that someone wishes to offer that raises an issue of a classified nature, I would ask that you defer that until we get in our full committee session.

I also want to note that, while this subcommittee meeting is in open session, the entire contents of the markup book are subject to amendment throughout its consideration by the Armed Services Committee. And it is, therefore, embargoed until passage by the
full committee and reported to the Senate. So that should serve as a reminder for all of us.

Historically, the subcommittee has used the chairman's mark, which is the package of legislative provisions and report language that the two staffs have worked on together and that have been reviewed and approved, as the markup vehicle. The chairman's mark has been fully briefed and made available to the staff of all of the committee's members. And without objection, we will use the chairman's mark as the markup vehicle, subject to amendment. [No response.]

Hearing no objection, I would like to begin by acknowledging what a pleasure it is to work with my colleague from New Hampshire, Senator Ayotte. We do get a chance to see each other outside of this committee, so it is nice to do this official work together.

We continue to work, as this committee does, and as the subcommittee does, in a time-honored bipartisan fashion. And I really appreciate our ability to come to agreement on the issues before the subcommittee.

In preparing for the markup, Senator Levin has asked that we consider certain guidelines in evaluating and making recommendations for programs or activities to the fiscal year 2014 budget process. And the markup package follows that guidance.

The Readiness Subcommittee continues to face significant challenges in light of sequestration cuts enacted by the Budget Control Act of 2011. As we discussed in our April hearing with Vice Chiefs of Staff, the services continue to face substantial challenges in their ability to execute training, perform maintenance, and sustain readiness.

Secretary Hagel has told our full committee in testimony that sequestration requires ""dramatic reductions in core military capabilities,'' and that is a direct quote. And General Dempsey echoed those concerns when he shared with us that sequestration severely limits our ability to implement our defense strategy.

While our mark today applies to fiscal year 2014, I think it is worth reiterating precisely how sequestration has hamstrung the Department of Defense in fiscal year 2013.

The Army has curtailed training for 80 percent of ground forces, canceled six maneuver combat training exercises, and canceled the majority of its depot maintenance.

The Navy has deferred depot maintenance on 84 aircraft and 184 engines, and, by the end of the fiscal year, expects nearly two-thirds of its ships and aircraft will be less than fully mission-capable and not certified for major combat operations. That number was fully two-thirds.

The Air Force has stood down one-third of their fighter and bomber force, putting pilots at risk for being able to meet emergent requirements and lose required certifications that can take over a year to recover.

And last, the Marine Corps will defer maintenance on 44 aircraft, and anticipates that, a year from now, only half of F--18 squadron aircraft will be operational.

As we have learned from the department, if left unaddressed, sequestration will end up costing us substantially more in the long run, not only from a financial perspective, but with respect to our core military capabilities. While this subcommittee cannot fix sequestration today in this readiness mark, we are making what I believe is a concerted effort to mitigate some of these readiness impacts to the department.

As a result of our bipartisan search for efficiencies, we are recommending more than $1.3 billion in military construction project reductions, and we have identified over $400 million in excess operation and maintenance funding.

We have taken a $1.7 billion and put it back into critical readiness accounts for all services in an attempt to restore flying hours, steaming days, unit training, and essential depot maintenance in
our hangars and shipyards.

Given the available resources in the President's budget request,
I believe we are providing a positive result to our men and women
in uniform with targeted additional readiness funding while balancing our responsibility to the taxpayer.

I would also note that the subcommittee's mark would not authorize another base realignment and closure, or BRAC, round at this time. I continue to believe, like many others, that we cannot afford the upfront costs required to implement another BRAC, especially given the dramatically increased costs to implement BRAC 2005, and a continuing lack of specificity from the department on how such cost growth would be avoided in time.

We have also included a provision that reacts to the committee's report released in April that dealt with host nation contributions in support of U.S. military presence overseas. This provision is designed to prevent wasteful and unnecessary spending on overseas military construction projects funded using in-kind payments from
host nation governments by requiring that such projects be specifically authorized by Congress.

We have a responsibility to ensure that all military construction projects overseas, regardless of whether they are paid for with U.S. or foreign funds, are consistent with the priority needs of our forces.

The Readiness Subcommittee mark also includes a number of contracting and acquisition provisions that should improve the oversight and management of the Department of Defense. We are creating an undersecretary of defense for management and designating that new position as the deputy chief managing officer and
chief information officer of the department.

We have also expanded last year's Section 841 contracting with the enemy to all combatant commands.

And I just want to recognize my ranking member, Senator Ayotte, for all the work that she and her staff have done on this section of the mark.

In addition, the mark contains a provision that would direct the Department of Defense to reduce the separate development and fielding of service-specific combat and camouflage utility uniforms in order to adopt and field the same combat uniform for all
branches.

We have also provided additional funding for the Department of Defense Inspector General. We believe that this increase is necessary to preserve the IG's ability to help identify waste, fraud, and abuse in DOD programs, especially in the area of procurement. The DOD IG gives the taxpayer a return on investment of nearly $11
for every $1 appropriated.

And finally, I am pleased to say that the mark fully funds the President's request for environmental programs.

I believe this subcommittee mark is a productive and successful one that will strengthen our Nation's Armed Forces by providing the required level of support, and I look forward to debate on the many issues it raises.

Now I am going to turn to my colleague, Senator Ayotte, for any opening statement she may have.

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