S. HRG. 107–355, PT. 2 DEPARTMENT OF DEFENSE AUTHORIZATION FOR APPROPRIATIONS FOR FISCAL YEAR 2002 HEARINGS BEFORE THE COMMITTEE ON ARMED SERVICES UNITED STATES SENATE ONE HUNDRED SEVENTH CONGRESS FIRST SESSION ON S. 1416 AUTHORIZING APPROPRIATIONS FOR FISCAL YEAR 2002 FOR MILITARY ACTIVITIES OF THE DEPARTMENT OF DEFENSE, FOR MILITARY CON- STRUCTION, AND FOR DEFENSE ACTIVITIES OF THE DEPARTMENT OF ENERGY, TO PRESCRIBE PERSONNEL STRENGTHS FOR SUCH FISCAL YEAR FOR THE ARMED FORCES, AND FOR OTHER PURPOSES PART 2 SEAPOWER APRIL 4, 26, JUNE 7, JULY 31, 2001 ( Printed for the use of the Committee on Armed Services VerDate 11-SEP-98 16:40 Jun 05, 2002 Jkt 000000 PO 00000 Frm 00001 Fmt 6011 Sfmt 6011 75347.CON SARMSER2 PsN: SARMSER2 DEPARTMENT OF DEFENSE AUTHORIZATION FOR APPROPRIATIONS FOR FISCAL YEAR 2002—Part 2 SEAPOWER VerDate 11-SEP-98 16:40 Jun 05, 2002 Jkt 000000 PO 00000 Frm 00002 Fmt 6019 Sfmt 6019 75347.CON SARMSER2 PsN: SARMSER2 S. HRG. 107–355, PT. 2 DEPARTMENT OF DEFENSE AUTHORIZATION FOR APPROPRIATIONS FOR FISCAL YEAR 2002 HEARINGS BEFORE THE COMMITTEE ON ARMED SERVICES UNITED STATES SENATE ONE HUNDRED SEVENTH CONGRESS FIRST SESSION ON S. 1416 AUTHORIZING APPROPRIATIONS FOR FISCAL YEAR 2002 FOR MILITARY ACTIVITIES OF THE DEPARTMENT OF DEFENSE, FOR MILITARY CON- STRUCTION, AND FOR DEFENSE ACTIVITIES OF THE DEPARTMENT OF ENERGY, TO PRESCRIBE PERSONNEL STRENGTHS FOR SUCH FISCAL YEAR FOR THE ARMED FORCES, AND FOR OTHER PURPOSES PART 2 SEAPOWER APRIL 4, 26, JUNE 7, JULY 31, 2001 ( Printed for the use of the Committee on Armed Services U.S. GOVERNMENT PRINTING OFFICE 75–347 PDF WASHINGTON : 2002 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512–1800; DC area (202) 512–1800 Fax: (202) 512–2250 Mail: Stop SSOP, Washington, DC 20402–0001 VerDate 11-SEP-98 16:40 Jun 05, 2002 Jkt 000000 PO 00000 Frm 00003 Fmt 5011 Sfmt 5011 75347.CON SARMSER2 PsN: SARMSER2 COMMITTEE ON ARMED SERVICES JOHN WARNER, Virginia, Chairman STROM THURMOND, South Carolina CARL LEVIN, Michigan JOHN MCCAIN, Arizona EDWARD M. KENNEDY, Massachusetts BOB SMITH, New Hampshire ROBERT C. BYRD, West Virginia JAMES M. INHOFE, Oklahoma JOSEPH I. LIEBERMAN, Connecticut RICK SANTORUM, Pennsylvania MAX CLELAND, Georgia PAT ROBERTS, Kansas MARY L. LANDRIEU, Louisiana WAYNE ALLARD, Colorado JACK REED, Rhode Island TIM HUTCHINSON, Arkansas DANIEL K. AKAKA, Hawaii JEFF SESSIONS, Alabama BILL NELSON, Florida SUSAN COLLINS, Maine E. BENJAMIN NELSON, Nebraska JIM BUNNING, Kentucky JEAN CARNAHAN, Missouri MARK DAYTON, Minnesota LES BROWNLEE, Staff Director DAVID S. LYLES, Staff Director for the Minority CARL LEVIN, Michigan, Chairman EDWARD M. KENNEDY, Massachusetts JOHN WARNER, Virginia, ROBERT C. BYRD, West Virginia STROM THURMOND, South Carolina JOSEPH I. LIEBERMAN, Connecticut JOHN MCCAIN, Arizona MAX CLELAND, Georgia BOB SMITH, New Hampshire MARY L. LANDRIEU, Louisiana JAMES M. INHOFE, Oklahoma JACK REED, Rhode Island RICK SANTORUM, Pennsylvania DANIEL K. AKAKA, Hawaii PAT ROBERTS, Kansas BILL NELSON, Florida WAYNE ALLARD, Colorado E. BENJAMIN NELSON, Nebraska TIM HUTCHINSON, Arkansas JEAN CARNAHAN, Missouri JEFF SESSIONS, Alabama MARK DAYTON, Minnesota SUSAN COLLINS, Maine JEFF BINGAMAN, New Mexico JIM BUNNING, Kentucky DAVID S. LYLES, Staff Director LES BROWNLEE, Republican Staff Director SUBCOMMITTEE ON SEAPOWER JEFF SESSIONS, Alabama, Chairman JOHN MCCAIN, Arizona EDWARD M. KENNEDY, Massachusetts BOB SMITH, New Hampshire JOSEPH I. LIEBERMAN, Connecticut SUSAN COLLINS, Maine MARY L. LANDRIEU, Louisiana JIM BUNNING, Kentucky JACK REED, Rhode Island JEAN CARNAHAN, Missouri EDWARD M. KENNEDY, Massachusetts, Chairman JOSEPH I. LIEBERMAN, Connecticut JEFF SESSIONS, Alabama, MAX CLELAND, Georgia JOHN MCCAIN, Arizona MARY L. LANDRIEU, Louisiana BOB SMITH, New Hampshire JACK REED, Rhode Island SUSAN COLLINS, Maine JEAN CARNAHAN, Missouri JIM BUNNING, Kentucky (II) VerDate 11-SEP-98 16:40 Jun 05, 2002 Jkt 000000 PO 00000 Frm 00004 Fmt 0486 Sfmt 0486 75347.CON SARMSER2 PsN: SARMSER2 C O N T E N T S CHRONOLOGICAL LIST OF WITNESSES SHIPBUILDING INDUSTRIAL BASE ISSUES AND INITIATIVES APRIL 4, 2001 Page Fricks, William P., Chairman and Chief Executive Officer, Newport News Shipbuilding ......................................................................................................... 7 St. Pe´, Gerald, Chief Operating Officer, Northrop Grumman Litton Ship Systems ................................................................................................................. 12 Welch, John K., Senior Vice President, Marine Systems Group, General Dy- namics Corporation .............................................................................................. 20 STRATEGIC AIRLIFT AND SEALIFT IMPERATIVES FOR THE 21ST CENTURY APRIL 26, 2001 Robertson, Gen. Charles T., Jr., USAF, Commander in Chief, United States Transportation Command ................................................................................... 73 NAVY AND MARINE CORPS EQUIPMENT FOR 21ST CENTURY OPERATIONAL REQUIREMENTS JUNE 7, 2001 McGinn, Vice Adm. Dennis V., USN, Deputy Chief of Naval Operations for Warfare Requirements and Programs; Accompanied by Maj. Gen. William A. Whitlow, USMC, Director, Expeditionary Warfare; Rear Adm. Michael J. McCabe, USN, Director, Air Warfare; Rear Adm. Bruce B. Engelhardt, USN, Deputy Director, Submarine Warfare; and Rear Adm. John M. Kelly, USN, Deputy Director, Surface Warfare ............................................................ 126 Nyland, Lt. Gen. William L., USMC, Deputy Chief of Staff for Programs and Resources ....................................................................................................... 132 NAVY SHIPBUILDING PROGRAMS JULY 31, 2001 Fallon, Adm. William J., USN, Vice Chief of Naval Operations ......................... 210 Young, Hon. John J., Jr., Assistant Secretary of the Navy for Research, Development, and Acquisition ............................................................................. 222 (III) VerDate 11-SEP-98 16:40 Jun 05, 2002 Jkt 000000 PO 00000 Frm 00005 Fmt 5904 Sfmt 5904 75347.CON SARMSER2 PsN: SARMSER2 DEPARTMENT OF DEFENSE AUTHORIZATION FOR APPROPRIATIONS FOR FISCAL YEAR 2002 WEDNESDAY, APRIL 4, 2001 U.S. SENATE, SUBCOMMITTEE ON SEAPOWER, COMMITTEE ON ARMED SERVICES, Washington, DC. SHIPBUILDING INDUSTRIAL BASE ISSUES AND INITIATIVES The subcommittee met, pursuant to notice, at 9:32 a.m., in room SR–222, Russell Senate Office Building, Senator Jeff Sessions (chairman of the subcommittee) presiding. Committee members present: Senators Sessions, Warner, Smith, Collins, Bunning, Lieberman, Landrieu, and Reed. Committee staff members present: Anita H. Rouse, deputy chief clerk. Professional staff members present: John R. Barnes, William C. Greenwalt, Gary M. Hall, and Thomas L. MacKenzie. Minority staff members present: Creighton Greene, professional staff member, and Peter K. Levine, minority counsel. Staff assistants present: Kristi M. Freddo, Jennifer L. Naccari, and Michele A. Traficante. Committee members’ assistants present: Margaret Hemenway, assistant to Senator Smith; Arch Galloway II, assistant to Senator Sessions; Kristine Fauser, assistant to Senator Collins; Menda S. Fife, assistant to Senator Kennedy; Frederick M. Downey, assistant to Senator Lieberman; and Elizabeth King, assistant to Senator Reed. OPENING STATEMENT OF SENATOR JEFF SESSIONS Senator SESSIONS. Good morning. Today the Seapower Sub- committee convenes to explore shipbuilding industrial base issues and initiatives. I am very pleased to be able to work with the Ranking Member, Senator Kennedy, with whom I have talked about this hearing but could not be here today. We are delighted that Senator Lieberman will serve as the Ranking Member of this subcommittee today, as he has served on the subcommittee for a number of years. Also Senators McCain, Smith, and Reed will re- turn to this subcommittee. We welcome our new subcommittee members: Senators Collins, Bunning, Landrieu, and Carnahan. (1) VerDate 11-SEP-98 16:40 Jun 05, 2002 Jkt 000000 PO 00000 Frm 00006 Fmt 6633 Sfmt 6633 75347.017 SARMSER2 PsN: SARMSER2 2 We look forward to working in a bipartisan manner as this panel has in the past to address the seapower procurement and research and development issues. As we all understand, our decisions di- rectly impact the equipment our men and women of the Armed Forces will have as they carry out the national security strategy. Navy ships are vital to our national security, and the shipbuilding industrial base is the means of providing those Navy ships. Ships are critical to projecting American power. Today we face many challenges regarding the industry. Reduced funding is exacerbated by reports of schedule delays and increased costs. This committee has to ask the hard questions to determine if these reports are accurate and, if so, the cause of these problems and possible solutions to prevent reoccurrence. Today we hope to explore and clarify the following questions re- garding the challenges we face together with respect to building quality and complex ships. Is there adequate research and develop- ment in ship construction funding for the complex ships that are needed by the Navy? Is there enough Navy ship construction work to maintain the industrial base? Are there initiatives including funding alternatives which could reduce the costs of Navy ships? Is the shipbuilding industry controlling the costs of Navy ships and taking initiatives to improve efficiency