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Army and Marine Corps Ground System Modernization Programs Committee on Armed Services House of Representatives

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Army and Marine Corps Ground System Modernization Programs Committee on Armed Services House of Representatives i [H.A.S.C. No. 112–114] ARMY AND MARINE CORPS GROUND SYSTEM MODERNIZATION PROGRAMS HEARING BEFORE THE SUBCOMMITTEE ON TACTICAL AIR AND LAND FORCES OF THE COMMITTEE ON ARMED SERVICES HOUSE OF REPRESENTATIVES ONE HUNDRED TWELFTH CONGRESS SECOND SESSION HEARING HELD MARCH 8, 2012 U.S. GOVERNMENT PRINTING OFFICE 73–440 WASHINGTON : 2012 For sale by the Superintendent of Documents, U.S. Government Printing Office, http://bookstore.gpo.gov. For more information, contact the GPO Customer Contact Center, U.S. Government Printing Office. Phone 202–512–1800, or 866–512–1800 (toll-free). E-mail, [email protected]. SUBCOMMITTEE ON TACTICAL AIR AND LAND FORCES ROSCOE G. BARTLETT, Maryland, Chairman FRANK A. LOBIONDO, New Jersey SILVESTRE REYES, Texas JOHN C. FLEMING, M.D., Louisiana MIKE MCINTYRE, North Carolina TOM ROONEY, Florida JIM COOPER, Tennessee TODD RUSSELL PLATTS, Pennsylvania NIKI TSONGAS, Massachusetts VICKY HARTZLER, Missouri LARRY KISSELL, North Carolina JON RUNYAN, New Jersey MARTIN HEINRICH, New Mexico MARTHA ROBY, Alabama BILL OWENS, New York WALTER B. JONES, North Carolina JOHN R. GARAMENDI, California W. TODD AKIN, Missouri MARK S. CRITZ, Pennsylvania JOE WILSON, South Carolina KATHLEEN C. HOCHUL, New York MICHAEL TURNER, Ohio JACKIE SPEIER, California BILL SHUSTER, Pennsylvania DOUG LAMBORN, Colorado JOHN WASON, Professional Staff Member DOUG BUSH, Professional Staff Member SCOTT BOUSUM, Staff Assistant (II) C O N T E N T S CHRONOLOGICAL LIST OF HEARINGS 2012 Page HEARING: Thursday, March 8, 2012, Army and Marine Corps Ground System Mod- ernization Programs ............................................................................................. 1 APPENDIX: Thursday, March 8, 2012 ........................................................................................ 33 THURSDAY, MARCH 8, 2012 ARMY AND MARINE CORPS GROUND SYSTEM MODERNIZATION PROGRAMS STATEMENTS PRESENTED BY MEMBERS OF CONGRESS Bartlett, Hon. Roscoe G., a Representative from Maryland, Chairman, Sub- committee on Tactical Air and Land Forces ...................................................... 1 Reyes, Hon. Silvestre, a Representative from Texas, Ranking Member, Sub- committee on Tactical Air and Land Forces ...................................................... 3 WITNESSES Lennox, LTG Robert P., USA, Deputy Chief Of Staff, G–8, U.S. Army; and LTG William N. Phillips, USA, Military Deputy to the Assistant Secretary (Acquisition, Logistics and Technology), U.S. Army ......................................... 5 Mills, LtGen Richard P., USMC, Deputy Commandant for Combat Develop- ment and Integration, U.S. Marine Corps; BGen Frank L. Kelley, USMC, Commander, Systems Command, U.S. Marine Corps; and William E. Tay- lor, Program Executive Officer for Land Systems, U.S. Marine Corps ........... 6 APPENDIX PREPARED STATEMENTS: Bartlett, Hon. Roscoe G. .................................................................................. 37 Lennox, LTG Robert P., joint with LTG William N. Phillips ....................... 42 Mills, LtGen Richard P., joint with BGen Frank L. Kelley and William E. Taylor ........................................................................................................ 57 Reyes, Hon. Silvestre ....................................................................................... 40 DOCUMENTS SUBMITTED FOR THE RECORD: [There were no Documents submitted.] WITNESS RESPONSES TO QUESTIONS ASKED DURING THE HEARING: Ms. Speier ......................................................................................................... 73 QUESTIONS SUBMITTED BY MEMBERS POST HEARING: Mr. Bartlett ....................................................................................................... 77 Mr. Bartlett and Mr. Shuster .......................................................................... 83 Mr. Critz ............................................................................................................ 87 Mr. LoBiondo and Mr. Rooney ........................................................................ 84 Mr. Owens ......................................................................................................... 86 (III) IV Page QUESTIONS SUBMITTED BY MEMBERS POST HEARING—Continued Mrs. Roby .......................................................................................................... 87 Mr. Rooney ........................................................................................................ 86 Mr. Shuster ....................................................................................................... 85 Ms. Tsongas ...................................................................................................... 86 Mr. Turner ........................................................................................................ 84 ARMY AND MARINE CORPS GROUND SYSTEM MODERNIZATION PROGRAMS HOUSE OF REPRESENTATIVES, COMMITTEE ON ARMED SERVICES, SUBCOMMITTEE ON TACTICAL AIR AND LAND FORCES, Washington, DC, Thursday, March 8, 2012. The subcommittee met, pursuant to call, at 10:02 a.m. in room 2212, Rayburn House Office Building, Hon. Roscoe G. Bartlett (chairman of the subcommittee) presiding. OPENING STATEMENT OF HON. ROSCOE G. BARTLETT, A REP- RESENTATIVE FROM MARYLAND, CHAIRMAN, SUB- COMMITTEE ON TACTICAL AIR AND LAND FORCES Mr. BARTLETT. Good morning. Because of the importance of to- day’s hearing, I apologize that my opening statement will be a little longer than usual. The Tactical Air and Land Forces Subcommittee meets today to receive testimony on the fiscal year 2013 budget request for the Army and Marine Corps ground system modernization programs. We welcome our distinguished panel of witnesses: Lieutenant General Robert Lennox, Deputy Chief of Staff of the Army, G–8; Lieutenant General William Phillips, Military Deputy to the Assist- ant Secretary of the Army for Acquisition, Logistics, and Tech- nology; Lieutenant General Richard Mills, United States Marine Corps, Deputy Commandant for Combat Development and Integra- tion; Brigadier General Frank Kelley, United States Marine Corps, Commander, Systems Command; and Mr. William Taylor, United States Marine Corps, Program Executive Officer for Land Systems. Thank all of you for being here and for your service to our Na- tion. Based on the fiscal year 2013 budget request, the subcommittee hopes to determine: one, the risk associated with the Army and Marine Corps’ ability to meet the national security needs of this Nation; two, how this budget request impacts Army and Marine Corps ground systems modernization programs and their associ- ated industrial bases; and, three, the best estimate of what pro- gram adjustments would have to be made and additional risk as- sumed if sequestration were to take effect. We know that our witnesses support this budget as appropriate for the new defense guidance, but we need our witnesses to provide more detail on the modernization and investment risks and the critical assumptions behind these risks given the fact that the Na- tion is still engaged in major combat operations. There are two significant concerns that I have that are associ- ated with Army and Marine Corps ground systems modernization: (1) 2 one, the quality and effectiveness of the equipment that will be re- lied upon by a smaller combat force as a result of reductions in force structure and end strength; and, two, the effect on the indus- trial base of ending major current programs and anticipating the ability to begin new production 3 to 5 years into the future. I have concerns over the impact of this budget on the defense in- dustrial base at the prime-contractor and vendor-base level. Based on this budget request, the industrial base that supports the Ma- rine Corps at the battalion level and the Army at the brigade-com- bat-team level is going to have a 3- to 5-year production break. Both the Marine Corps and the Army plan on procuring major plat- forms into the 2017 or 2018 timeframe. At the prime-contractor level, the ranking member and I have visited many of these facilities. The workers are well-trained, very qualified, and extremely patriotic. As you know, it can take many years to train a qualified machinist or welder. Many of them have served in the military and have families and friends that are cur- rently in the military. However, if these production lines go com- pletely cold for multiple years, these workers will have no choice but to switch career fields so that they can take care of their fami- lies. So the question becomes, what workforce does the Marine Corps and the Army expect to have or need in 2017 and 2018 to produce these new platforms? What impact would this industrial-base pol- icy have on the industrial base’s ability to surge production in re- sponse to a future threat or conflict? The vendor-base level is even more problematic. These are the companies that provide the transmissions, engines, and widgets to the prime contractors. In some cases, it can take over a year for a vendor to get qualified in order to supply critical parts to the prime contractors. Once the production lines go cold, these companies will simply go away or be forced to increase prices for these components and parts. If they do, what will be the impact to current fielded ground modernization system programs? And in 2017, will the prime con- tractors be forced to go overseas to fill this void? Our prime con- tractors and vendors are trying to sustain themselves at a min- imum economic quantity level. This may not
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