    [Senate Hearing 112-]
    [From the U.S. Government Publishing Office]

      DEPARTMENT OF HOMELAND SECURITY APPROPRIATIONS FOR FISCAL YEAR 2012

                                  ----------

                             TUESDAY, MAY 10, 2011

                                           U.S. Senate,
               Subcommittee of the Committee on Appropriations,
                                                        Washington, DC.
        The subcommittee met at 10:01 a.m., in room SD-138, Dirksen
    Senate Office Building, Hon. Mary Landrieu (chairman)
    presiding.
        Present: Senators Landrieu, Lautenberg, Coats, and Cochran.

                        DEPARTMENT OF HOMELAND SECURITY

                                U.S. Coast Guard

    STATEMENT OF ADMIRAL ROBERT J. PAPP, JR., COMMANDANT

                 opening statement of senator mary l. landrieu

        Senator Landrieu. Good morning. I'd like to call our
    subcommittee to order.
        And the purpose of this meeting is to review the Coast
    Guard budget and priorities for the coming year.
        And I welcome Admiral Robert Papp to discuss these issues.
    And, thank you, Admiral, for being with us today. I'm joined by
    my ranking member, Senator Coats, and the vice chair of the
    subcommittee, Senator Lautenberg. So, I'm really pleased to
    welcome you this morning.
        This is to review the budget request and examine the
    agency's operations and recapitalization requirements.
        This is your first appearance before this subcommittee, so,
    welcome, and congratulations on your new role as Commandant of
    the Coast Guard.
        The importance of the Coast Guard to our Nation cannot be
    overstated. It's one of the five branches of the military and
    is responsible for the safety and security of our maritime
    interest in U.S. ports, waterways, and on the high seas.
        We will never forget--and, particularly, this Senator--the
    heroic efforts of the Coast Guard men and women who came to our
    aid after Hurricanes Katrina and Rita along the gulf coast and
    rescued 33,000 citizens during the largest search and rescue
    mission in the Coast Guard's history. Last year the Coast Guard
    was first on the scene in response to the earthquake in Haiti,
    coordinated the response and cleanup efforts following the
    explosion of the Deepwater Horizon rig and subsequent oil
    spill, which was also the largest of its kind in the history of
    our country. The Coast Guard, gentlemen that I serve with, has
    been extremely busy in missions along the southern part of our
    State and all over the United States.
        However, the Coast Guard's ability to fulfill its mission
    requirements has reached a critical juncture due to
    deteriorating assets, aging infrastructure, and workforce gaps.
    The former Commandant, Admiral Thad Allen, who I had a
    tremendous amount of respect for, said, ``With every passing
    year, our operating capacity erodes, putting our people at risk
    and endangering our ability to execute our statutory
    responsibilities.''
        Admiral Papp has been equally candid about the state of the
    Coast Guard and recently said, ``We may need to reduce the
    number and range of our capabilities we've added since 9/11
    until properly resourced.''
        Frankly, the Coast Guard has not been properly resourced in
    its budget requests to the Congress. This has been a failure of
    both the current and previous administrations. Over the past 5
    years, this subcommittee, with my support, has increased the
    Coast Guard budget by $160 million annually above the White
    House request levels to fill operation recapitalization
    shortfalls.
        However, continuing such increases may not be sustainable
    in today's constrained fiscal environments, of which we're all
    aware, and this subcommittee intends to do what it can to
    eliminate the waste and the fat, and focus on our central
    missions. However, we've been calling on the Coast Guard to do
    more and more things with less and less. At some point, which
    you're going to see in this hearing, things start to
    deteriorate.
        With that in mind, today we focus on the Coast Guard's 2012
    request, which is only a 1-percent increase above last year.
    Specifically, we'll be examining whether the Coast Guard is
    properly resourced to execute its many missions.
        Before turning to Senator Coats, I want to take this
    opportunity to stress my concern about the status of the FEMA
    Disaster Relief Fund (DRF). For several months I've been
    pressing the White House on the need to submit to the Congress
    an emergency funding request for the DRF. There is currently a
    $3 billion shortfall for 2012. If the President does not seek
    emergency funding, it is likely that this fund will be
    exhausted in spring 2012, stopping disaster recovery efforts in
    49 States, including the States impacted by the devastating and
    historic recent tornadoes, primarily in the South, but in other
    States as well, particularly in the State of Alabama that was
    so hard-hit, and by States currently facing historic flooding
    along the Mississippi River, which is truly the breadth and the
    width of our country.
        It makes no sense to cut funding for agencies that prepare
    for and respond to future disasters to pay for the cost of past
    disasters. Those are clearly emergencies. They are over the
    allotted base amount that we allocate to the best of our
    judgment on a 5-year average. We cannot predict disasters.
    There is no crystal ball sitting on this desk. I cannot predict
    where future storms will be. I could not predict the recent
    tornadoes. I could not predict the Mississippi River flooding.
    All I can do is budget a reasonable amount of money based on a
    5-year average and then expect that the President will send an
    emergency request when it truly is needed. I believe the
    evidence is in to support that action.
        Following Senator Coats' remarks, we'll go to Vice Chairman
    Lautenberg, and then other members will be recognized as they
    come in.
        I thank our ranking member for his support and his
    cooperation. He too is a great supporter of the Coast Guard,
    and I appreciate that.
        Senator Coats.

                       statement of senator daniel coats

        Senator Coats. Madam Chair, thank you very much.
        Admiral, thank you--first, for your call a few weeks ago,
    and the opportunity to work with you.
        I did have the privilege of serving for 10 years on the
    Senate Armed Services Committee, and I always viewed the Coast
    Guard as the fifth service. But it's as essential as the first
    four. And I think since 9/11 you've had to take on even greater
    responsibilities. So, I commend the Coast Guard for its
    participation in our Nation's defense, and wish you the best in
    your leadership.
        I'm sure that you breathed at least a sharp sigh of relief
    when the Congress finally gave you some direction on what your
    funding would be for the remainder of fiscal year 2011.
    Unfortunately, we may be in a situation for the 2012 budget
    that again leaves some uncertainty in terms of just exactly
    what the funding will be. I'm sorry for that, and I know it
    makes it difficult in terms of planning and preparing your
    goals, and meeting those goals.
        In any event, you're pretty much faced with a no-growth
    budget for this next year. I'm looking forward to your
    testimony in terms of outlining how you're going to have to
    manage your priorities as a result of that. And if you don't
    mind, I'll give you a little spiel that I've said several
    times. I'm sure the chair is tired of hearing me say this, but
    we face the kind of debt and deficit situation today that I
    think none of us had anticipated, and it's going to require
    some pretty serious action in terms of how we deal with it.
        My concern has been, and continues to be, that we are
    limiting our focus on just a small part of the overall budget,
    and therefore, the discretionary--including defense--spending
    is subject to taking a disproportionate share of the burden of
    addressing this debt and deficit problem. So, I've been trying
    to encourage a so-called ``Coalition of the Discretionary''
    that will encourage Members of the Congress and the executive
    branch to broaden the look in dealing with the real drivers of
    our deficit and debt, and that's some of the mandatory
    spending.
        I know this is outside your jurisdiction. I'm just raising
    the point here that you are the recipient of, perhaps, a
    disproportionate share of the burden, and lower funding than
    you need to accomplish some of your priorities, because we have
    not yet come to a consensus in terms of moving forward on
    mandatory spending, so that the focus has continued to be on a
    slice of the budget of which you are a part.
        So, I just say that for the record. I'm not asking you to
    necessarily do anything about that. But I do look forward to
    your testimony.
        Madam Chair, thank you for your leadership with this. You
    certainly have much more at stake relative to the Coast Guard
    than the State of Indiana does. But I do want to state for the
    record that we do have a Coast Guard station in Michigan City--
    small, but necessary. And we're glad to be a State that
    participates just a little bit in the efforts of the Coast
    Guard. Thank you.
        Senator Landrieu. Thank you very much, Senator Coats.
        Senator Lautenberg.

                    statement of senator frank r. lautenberg

        Senator Lautenberg. Thank you, Madam Chair.
        And thank you, Admiral Papp, and all of your colleagues for
    the wonderful service the Coast Guard gives the country. I
    think it's well-known that in all of my years in the United
    States Senate, the Coast Guard has been a principal focus of my
    views about what we ought to do to take care of our security--
    so many other responsibilities that the Coast Guard has--I
    don't know whether it goes from fish to fowl. But I start out
    with safeguarding our supplies, fish, protecting the quality of
    the water, being there for security duty.
        It's just an amazing thing, Madam Chair. The Coast Guard is
    one of those organizations that, the more good they do, the
    less we give them. And it's the kind of contrast that gives me
    some cause of concern.
        We are all so proud of what our people did when they went
    to get Osama bin Laden, and proud of the President's decision
    and courage to take that kind of a chance. Because obviously,
    great personal feeling goes along with putting people in harm's
    way. But there we are. And we learned one thing: When we put
    the resources into a mission, we can succeed. And this is a
    mission--the attack on Osama bin Laden was in the works for
    years.
        So when I look at the things that we're asking the Coast
    Guard to do, and see that prior to 9/11 the Coast Guard
    invested only 2 percent of its operating budget in security
    activities--immediately following 9/11, it shifted its
    resources dramatically, spending approximately 50 percent of
    its operating budget on a security mission--there are lots of
    positive things in the budget for the Coast Guard, including
    the funding to modernize the aging fleet and bolster its
    ability to respond to disasters. I'm also pleased that the
    budget includes funding to rebuild the dilapidated pier port at
    the Coast Guard Training Center in Cape May, New Jersey. The
    facility supports the patrol boats that protect our coastline,
    and trains the Coast Guard recruits. I hope we can provide the
    resources the training center desperately needs.

                               prepared statement

        And Madam Chair, I ask unanimous consent that the
    aforementioned statement would go in the record.
        Senator Landrieu. Without objection.
        [The prepared statement follows:]
               Prepared Statement of Senator Frank R. Lautenberg
        Madame Chairman, Osama bin Laden is dead--but the fight against
    terrorists who want to harm us is far from over. We must remain
    vigilant and keep our defenses strong to prevent another terrorist
    attack in our country. The Coast Guard is vital to fulfilling that
    mission of protecting our shores.
        This is particularly important in my home State of New Jersey,
    which is a tempting target for our enemies. We are home to the most at-
    risk area in the country for a terrorist attack: A stretch that
    includes Newark Liberty International Airport, the Port of Newark,
    chemical plants, refineries, railways, and more. Protecting this region
    also protects the economy: The Port of New York and New Jersey--the
    largest on the east coast--handled more than $140 billion in cargo last
    year.
        There are a lot of positives in the President's proposed budget for
    the Coast Guard, including funding to modernize its aging fleet and
    bolster its ability to respond to disasters. I am also pleased that the
    budget includes funding to rebuild the dilapidated Pier 4 at the Coast
    Guard's training center in Cape May, New Jersey. This facility supports
    the patrol boats that protect our coastline and trains the Coast
    Guard's recruits. I hope we can provide the resources the training
    center deserves.
        Despite the funding for these projects, the administration's
    overall budget plan doesn't go far enough. The Coast Guard is
    consistently put at the back of the line for resources--and is
    consistently forced to do more with less. The men and women of the
    Coast Guard are America's eyes and ears on the seas, and we remain safe
    because of them.
        So, I look forward to working with this subcommittee to make sure
    the Coast Guard has the funding it needs to keep up the great job that
    it does each day.

        Senator Lautenberg. And I would just say that my respect
    for the Coast Guard continues to evolve. I look from the window
    of my apartment in New Jersey, and I see a small patrol boat
    going around to make sure that things are all right in the
    Hudson River and the harbor, and I can imagine what it's like
    to have to take care of all the ports, the security duties, and
    the military duties. Frankly, the Coast Guard is required to do
    so. Thank you. And we're going to work hard to make sure you
    have the resources.
        Senator Landrieu. Thank you, Senator.
        Senator Cochran.

                       STATEMENT OF SENATOR THAD COCHRAN

        Senator Cochran. Madam Chair, thank you very much for
    convening this hearing.
        I want to join you and the other members of the
    subcommittee in welcoming the Commandant to review the budget
    request for the next fiscal year.
        The Coast Guard is really front and center right now on
    everybody's mind and on everybody's TV screen, with activities
    of search and rescue, protecting our coastlines, our inlet
    waterway entrances into our country--a very complex challenge
    that the Coast Guard is facing.
        But from my vantage point, I've been very pleased and
    impressed with the leadership and the hard work that's being
    devoted to the mission of the Coast Guard by everyone involved,
    from the Commandant, throughout the corps of people--men and
    women--who serve so gallantly and impressively in our Coast
    Guard today.
        I look forward to your comments about the budget request,
    and taking our questions that we may have.
        Thank you.
        Senator Landrieu. Thank you, Senator.
        Admiral, proceed, please.

                SUMMARY STATEMENT OF ADMIRAL ROBERT J. PAPP, JR.

        Admiral Papp. Good morning, Madam Chair, and Ranking Member
    Coats, and also, two longtime supporters of the Coast Guard--
    Senator Lautenberg and Senator Cochran.
        Thank you for the opportunity to appear here today before
    you, and thank you for your unwavering support of the men and
    women of the United States Coast Guard.
        It's my great honor and privilege to represent and lead
    these outstanding patriots.
        America is a maritime Nation. Ninety percent of our goods
    arrive by or are shipped by sea. The safety and security of our
    maritime impacts the daily lives of every American, regardless
    of whether they live on or near the water.
        In the past year our citizens have witnessed the Coast
    Guard in action like never before. The Coast Guard has been
    conducting drug and migrant interdictions in the Caribbean, and
    instantly transitioned to respond to the devastating Haitian
    earthquake. Then, with the dust of Haiti still on its boots, it
    responded with agility to the unprecedented Deepwater Horizon
    oil rig explosion and spill. These all-hands-on-deck evolutions
    demonstrated the value of our unique, versatile, and adaptable
    maritime multi-mission and military capabilities.
        While we surged to meet these challenges, we continued to
    perform our many other persistent missions, just as thousands
    of coastguardsmen are doing today as we speak. In the flood-
    ravaged Ohio and Mississippi River valleys, the Coast Guard
    personnel are assisting State and local officials to protect
    our citizens. On the Great Lakes, Coast Guard icebreakers freed
    the flow of $2 billion worth of job-sustaining commerce,
    facilitating, among other things, the start of the 41st
    international shipping season into the port of Indiana Burns
    Harbor, allowing stevedores, longshoremen, truckers, and small
    businessmen to get back to work.
        Deep in the eastern Pacific Ocean, the cutter Midgett--one
    of our 40-year-old High Endurance Cutters (WHECs) based in
    Seattle--interdicted a drug submarine loaded with 6.6 tons of
    cocaine worth $138 million. In the Arabian Gulf, several
    hundred of our coastguardsmen serve, including six patrol boats
    and a port security unit, and they're protecting the oil
    platforms that provide 85 percent of Iraq's revenue.
        Coastguardsmen are also deployed off the coast of Africa as
    part of the joint anti-piracy task force. And in Alaska, Coast
    Guard helicopter crews deployed from Kodiak, Alaska to Cordova
    for the spring and summer fishing season have rescued four
    people in two separate plane crashes just this week. And as I
    speak this morning, the cutter Campbell is off the coast of
    Honduras with a fishing vessel on the Caribbean, and they just
    located 31 bales of cocaine aboard the boat.
        These coastguardsmen, as their predecessors have done for
    more than 220 years, are working tirelessly to safeguard our
    Nation's maritime interests on our rivers, our ports, along our
    coasts, and on the high seas.
        Yet today, we find our Coast Guard at a critical inflection
    point in its history. I'm well aware of our Nation's current
    economic and budget challenges. However, I also know that
    decisions made today will do one of two things: They'll either
    sustain a Coast Guard capable of meeting its missions and
    responding to future manmade or natural disasters. And as you
    mentioned, Madam Chair, we can't predict where and when they
    will happen, so it takes our versatile and adaptable forces, in
    sufficient quantities, to be prepared for those unpredictable
    events.
        The other result could be a Coast Guard that is less
    capable and diminished in force.
        Your steadfast support, as most recently demonstrated to
    the fiscal year 2011 appropriation, enables us to continue to
    perform our challenging maritime missions at the level the
    Nation demands.
        Senator Coats, you said I must have breathed a sigh of
    relief. Quite frankly, I wanted to do a high five when I got
    this budget, because it addresses our most pressing
    requirements--the major cutter recapitalization, and sustaining
    current operations. By fully funding national security cutter
    No. 5, you enabled us to deliver the ship up to 1 year earlier,
    potentially saving taxpayers millions of dollars.
        It was ironic that this morning when I did my daily
    readings, there was a quote in there that says, ``When we pay
    later, the price is greater.'' And certainly, when we buy it
    earlier, we get it at a better price, and we will have savings
    for our taxpayers.
        Our acquisitions momentum must continue. Gaps in funding
    our recapitalization are costly and jeopardize our ability to
    protect the Nation's high seas sovereignty.
        The 2012 budget request responds to our Nation's budget
    challenges. I had to make some tough tradeoffs, and I directed
    management efficiencies, reductions in administrative costs,
    and professional services, totaling about $140 million. I will
    reinvest these savings into sustaining our frontline operations
    as the American citizens expect, to rebuilding the Coast Guard,
    enhancing our maritime incident prevention and response, and
    supporting our Coast Guard families.
        I'm requesting more than $1.4 billion to continue our
    recapitalization effort, including funding for National
    Security Cutters (NSCs), Fast Response Cutters (FRCs), response
    boats, Maritime Patrol Aircraft (MPA), and sustainment of our
    aging ships and aircraft.
        I recently decommissioned two antiquated WHECs and our
    oldest commissioned cutter--affectionately known as the Queen
    of the Fleet--Acushnet, which was almost 68 years old. Now,
    this allowed me the privilege of bestowing the Queen of the
    Fleet status to another Coast Guard cutter, Smilax, which is
    merely 67 years old.
        But at some point it becomes unfair to keep asking our
    crews to expend countless hours fixing old machinery. Our crews
    deserve state-of-the-art equipment and decent living conditions
    to do their jobs. And the American people deserve the
    capability of a modern Coast Guard fleet to preserve and
    protect our maritime sovereignty.
        The good news is, because of your support, our
    recapitalization is starting to pay dividends. The first of our
    eight NSCs, the cutter Bertholf, is currently conducting its
    first Alaska patrol. Bertholf's patrol marks the beginning of
    decades of service the NSC fleet will provide in the Bering Sea
    and throughout the vast maritime approaches to our shores. And
    the first of 58 FRCs, our new patrol boat fleet, was just
    launched in Lockport, Louisiana. This is a critical step toward
    replacing our tired but venerable workforce, the Iowa-class
    patrol boat fleet.
        The 2012 budget also invests $22.7 million to ensure the
    safe and efficient flow of commerce, protecting our natural
    resources, and effectively managing pollution incidents when
    they occur.
        Finally, you can't have a strong military workforce without
    healthy families. This budget also requests funding for
    military housing projects and increases access to childcare
    services for Coast Guard families.
        As the maritime component of the Department of Homeland
    Security, the 2012 budget will ensure the Coast Guard is able
    to continue to perform our vital maritime missions.

                               PREPARED STATEMENT

        Thank you for the opportunity to testify today, and I look
    forward to your questions.
        [The prepared statement follows:]
               Prepared Statement of Admiral Robert J. Papp, Jr.
        Good morning Madam Chair and distinguished members of the
    subcommittee. Thank you for the continuing support you have shown to
    the men and women of the United States Coast Guard, including the
    recent passage of the fiscal year 2011 continuing resolution, which
    provided full-year resources for the Coast Guard.
        I am here today to discuss the Coast Guard's fiscal year 2012
    budget request. Before I discuss the details of the request, I would
    like to take this opportunity to discuss the Coast Guard's value and
    role, some of our recent operations, including our recent response to
    the BP Deepwater Horizon oil spill, and the current budget environment.
        For more than 220 years, the U.S. Coast Guard has safeguarded the
    Nation's maritime interests and natural resources on our rivers and
    ports, in the littoral regions, on the high seas, and around the world.
    The Coast Guard saves those in peril and protects the Nation's maritime
    border, marine transportation system, natural resources, and the
    environment. Over the past year, Coast Guard men and women--active
    duty, reserve, civilian, and auxiliarists alike--continued to deliver
    premier service to the public. They saved more than 4,000 lives,
    protected our borders by stopping the flow of drugs and illegal
    migrants, and performed admirably in response to the largest spill in
    our Nation's history--the Deepwater Horizon oil spill.
        How does the Coast Guard operating model serve our public? The
    Coast Guard is an adaptable, responsive, military force of maritime
    professionals whose broad legal authorities, assets, geographic
    diversity, and expansive partnerships provide a persistent presence in
    the inland waters, ports, coastal regions, and far offshore areas of
    operations. This presence, coupled with more than 220 years of
    experience as the Nation's maritime first responder, provides our
    Nation with tremendous value in service to the public.
        The Coast Guard's value and role:
      --We protect those on the sea: Leading responses to maritime
            disasters and threats, ensuring a safe and secure maritime
            transportation system, preventing incidents, and rescuing those
            in distress.
      --We protect America from threats delivered by sea: Enforcing laws
            and treaties, securing our ocean resources, and ensuring the
            integrity of our maritime domain from illegal activity.
      --We protect the sea itself: Regulating hazardous cargo
            transportation, holding responsible parties accountable for
            environmental damage and cleanup, and protecting living marine
            and natural resources.
        The Coast Guard, working through the Department of Homeland
    Security, led the administration's response to the BP Deepwater Horizon
    oil spill, the first-ever Spill of National Significance, leveraging
    resources from across the country and around the world. The Coast Guard
    was the first agency on scene the night the mobile offshore drilling
    unit Deepwater Horizon exploded, searching for those in distress and
    providing Federal on-scene presence. During the response, the Coast
    Guard worked closely with our Federal partners and industry to leverage
    resources where needed while carrying out our other missions throughout
    the world. From nearly every corner of the country the Coast Guard
    surged more than 7,000 people, including members of the Coast Guard
    Reserve and Auxiliary, to support the response. Coast Guard members
    served in cutters and boats, in fixed and rotary-wing aircraft, and in
    the shore-side incident command system. The Coast Guard's adaptive
    operational model allowed for the:
      --Integration of Government and industry to contain the spill,
            recover more than 34.7 million gallons of oil-water mix, and
            perform controlled burns to remove more than 11 million gallons
            of oil from open water to protect the shoreline and wildlife.
      --Deployment of 46 cutters and 22 aircraft. Surface assets included
            medium endurance cutters (210-ft and 270-ft); sea-going and
            coastal buoy tenders (225-ft and 175-ft); ice-breaking tugs
            (140-ft); and patrol boats (179-ft, 110-ft and 87-ft). Air
            assets included long- and medium-range surveillance aircraft
            (HC-130 and HC-144A) and short- and medium-range helicopters
            (HH-60 and HH-65).

            [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

        While 2010 was another exceptional ``operational year'' by any
    standard, these operations further stressed existing aged and obsolete
    cutters, boats, aircraft, and support infrastructure that are in dire
    need of recapitalization. Furthermore, these extended surge operations
    strained workforce readiness due to increased op-tempo and deferred
    training. Even in the current fiscal environment where resources are
    scarce, we must continue to rebuild the Coast Guard, support frontline
    operations, invest in our people and families, and enhance maritime
    incident prevention and response capabilities to meet mission demands
    and ensure resiliency in the maritime domain.
                            fiscal year 2012 request
        In fiscal year 2012, the Coast Guard will focus resources to
    advance strategic priorities. Through tough decisions and resource
    trade-offs, the Coast Guard's fiscal year 2012 budget leverages savings
    generated through management efficiencies and offsets, and allocates
    funding toward higher order needs to support frontline operations.
    These offsets and reductions supported implementation of the following
    fiscal year 2012 budget priorities:
      --Rebuild the Coast Guard;
      --Sustain frontline operations;
      --Enhance maritime incident prevention and response; and
      --Support military families.
        Highlights from our request are included in Appendix I.
    Rebuild the Coast Guard
        The Coast Guard's fiscal year 2012 budget requests $1.4 billion to
    continue recapitalization of cutters; boats; aircraft; Command,
    Control, Communications, Computers, Intelligence, Surveillance, and
    Reconnaissance (C4ISR) systems; and infrastructure to improve mission
    readiness by replacing aged, obsolete, and unreliable assets. The
    fiscal year 2012 budget requests funding for 40 response boats and 6
    Fast Response Cutters (FRCs), as well as a sizable investment in the
    renovation and restoration of shore facilities. This budget also
    provides resources to ensure that the Coast Guard's aviation fleet is
    mission-ready through the acquisition of two Maritime Patrol Aircraft
    (MPA), one HH-60 helicopter, and conversion and sustainment projects of
    multiple aircraft. Investment in Coast Guard recapitalization is
    essential to mission execution.

    [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]

                          sustain frontline operations
        To ensure the Coast Guard is able to meet the needs of the Nation,
    the fiscal year 2012 budget balances resources between investments in
    capital assets, initiatives to sustain frontline operations, and
    measures to enhance mission execution. The fiscal year 2012 budget
    requests $67.7 million to operate new assets delivered through asset
    recapitalization programs and provides funding to support personnel and
    in-service assets. Moreover, funding is included to operate CGC Healy
    and support the operational reactivation of CGC Polar Star. The Coast
    Guard plans to decommission CGC Polar Sea in fiscal year 2011 and
    transition her crew to CGC Polar Star, enabling orderly transition to
    CGC Polar Star and facilitating her return to operations in fiscal year
    2013.
               enhance maritime incident prevention and response
        Coast Guard marine safety and environmental response personnel
    promote safe and efficient travel, facilitate the flow of commerce in
    the maritime domain, and protect our natural resources. The fiscal year
    2012 budget requests $22.2 million to advance implementation of the
    Coast Guard's marine safety performance plan and marine environmental
    response mission performance plan. During the response to the Deepwater
    Horizon oil spill, Coast Guard incident responders established and
    executed the Incident Command System to lead an effective, unified
    effort. The Coast Guard will enhance these core competencies in fiscal
    year 2012 to keep pace with an ever-growing and evolving maritime
    industry and ensure continued proactive leadership to prevent disasters
    on the Nation's waters and remain ready to respond if they occur.
    Additionally, funding requested in the fiscal year 2012 budget will
    assist in meeting Coast Guard Authorization Act of 2010 requirements
    regarding dockside examinations by adding examiners to improve fishing
    vessel safety.
                           support military families
        The administration is committed to improving the quality of life
    for military members and their families. The health and welfare of
    families is the heart of operational readiness. The fiscal year 2012
    budget includes $29.3 million to address critical housing shortfalls
    and improve access to affordable, quality childcare. These initiatives
    will ensure Coast Guard members are semper paratus for all hazards and
    all threats.
                                   conclusion
        The demands on the Coast Guard remain high. As we have for more
    than 220 years, we remain ready to meet the Nation's many maritime
    needs supported by the fiscal year 2012 request. We will always fulfill
    our duties and obligations to the American people, true to ``semper
    paratus, always ready.'' I request your full support for the
    President's fiscal year 2012 request. Again, thank you for the
    opportunity to testify before you today. I am pleased to answer your
    questions.
                  Appendix I--Fiscal Year 2012 Budget Request
                            rebuild the coast guard
    Surface Assets--$642 Million (0 FTE)
        The budget provides $642 million for surface asset recapitalization
    and sustainment initiatives, including:
      --National Security Cutter (NSC).--Fully funds NSC-5 (anticipates
            $615 million provided for NSC-5 in 2011). The NSC is replacing
            the high endurance class.
      --Offshore Patrol Cutter (OPC).--Sustains initial acquisition work
            and design of the OPC. The OPC will replace the medium
            endurance cutter class to conduct missions on the high seas and
            coastal approaches.
      --Fast Response Cutter (FRC).--Provides production funding for six
            FRCs to replace the 110-foot island class patrol boat.
      --Response Boat-Medium (RB-M).--Provides production funding for 40
            boats.
      --Medium Endurance Cutter (WMEC).--Provides for operational
            enhancement of five WMECs at the Coast Guard yard through the
            Mission Effectiveness Program.
    Air Assets--$289.9 Million (0 FTE)
        The budget provides $289.9 million for the following air asset
    recapitalization or enhancement initiatives, including:
      --MH-60T--Replaces one Jayhawk lost in an operational crash in 2010.
      --HC-144--Funds production of two MPA and procurement of up to five
            mission system pallets and associated spare parts to complete
            outfitting of the fleet.
      --HH-60--Funds service life extension and component upgrades for
            eight aircraft.
      --HH-65--Funds sustainment of key components.
      --HC-130H--Funds avionics upgrade and Center Wing Box (CWB)
            replacements.
    Asset Recapitalization--Other--$166.1 Million (0 FTE)
        The budget provides $166.1 million for the following equipment and
    services:
      --Command, Control, Communications, Computers, Intelligence,
            Surveillance, and Reconnaissance (C4ISR).--Deploys standardized
            C4ISR capability to newly fielded NSCs and MPAs, and develops
            C4ISR capability for the OPC. Interoperable and integrated
            C4ISR is essential to the efficient and effective operation of
            these assets.
      --CG-Logistics Information Management System (CG-LIMS).--Continues
            development and prototype deployment to Coast Guard operational
            assets and support facilities.
      --Rescue 21.--Completes deployment at Sectors Lake Michigan; San
            Juan, Puerto Rico; Honolulu, Hawaii; Guam--and continues
            replacement of legacy VHF systems in the Western Rivers.
      --Interagency Operations Center (IOC).--Deploys WatchKeeper
            Information Sharing capability to three IOC locations.
            Commences deployment of the sensor management capability;
            resulting in improved capability to see, understand, and share
            tactical information critical to security and interagency
            coordination in vulnerable ports and coastal areas.
    Shore Units and Aids to Navigation (ATON)--$193.7 Million (0 FTE)
        The budget provides $193.7 million to recapitalize shore
    infrastructure for safe, functional, and modern shore facilities that
    effectively support Coast Guard assets and personnel:
      --Cape May, New Jersey.--Replaces a condemned pier critical to
            execution of patrol boat missions.
      --Corpus Christi, Texas.--Implements Sector/Air Station Corpus
            Christi consolidation in order to properly hangar, maintain and
            operate MPA, and enhance mission effectiveness.
      --Chase Hall Barracks, New London, Connecticut.--Continues
            renovations at the Coast Guard Academy by modernizing cadet
            barracks.
      --Commences construction of Nos. 3-6 FRC homeports, C4ISR training
            facility, and continues modifications to Air Station Miami to
            accommodate new MPA.
      --Station Memensha Boathouse, Chilmark, Massachusetts.--Replaces the
            boathouse destroyed by a fire in July 2010 essential to
            supporting coastal law enforcement, security, and safety
            operations.
      --TRACEN Petaluma, California Wastewater Treatment Plant.--
            Recapitalizes and expands the capability of the Wastewater
            Treatment Plant to ensure compliance with environmental
            regulations.
      --Station Fairport, Ohio.--Recapitalizes multi-mission boat station,
            originally constructed in 1918, to facilitate current-day
            operations.
      --ATON Infrastructure.--Improves short-range aids and infrastructure
            to promote the safety of maritime transportation.
    Personnel and Management--$110.2 Million (794 FTE)
        The budget provides $110.2 million to provide pay and benefits for
    the Coast Guard's acquisition workforce. The budget includes additional
    resources to support the governmentwide Acquisition Workforce
    Initiative to bolster the professional development and capacity of the
    acquisition workforce.
                          sustain frontline operations
    Pay and Allowances--$66.1 Million (0 FTE)
        The budget provides $66.1 million to maintain parity of military
    pay, allowances, and healthcare with the Department of Defense (DOD).
    As a branch of the Armed Forces of the United States, the Coast Guard
    is subject to the provisions of the National Defense Authorization Act
    (NDAA), which includes pay and personnel benefits for the military
    workforce.
    Annualization of Fiscal Year 2011--$53.9 Million (194 FTE)
        The budget provides $53.9 million to continue new initiatives begun
    in the prior year, including increased counternarcotics enforcement
    through enhanced Law Enforcement Detachment (LEDET) capacity and
    follow-on funding for new assets (e.g., NSC, FRC, MPA, etc.).
    Surface and Air Asset Follow-on--$50.8 Million (220 FTE)
        The budget provides a total of $50.8 million to fund operations and
    maintenance of cutters, boats, aircraft, and associated subsystems
    delivered through major cutter, aircraft, and associated C4ISR
    acquisition efforts. Funding is requested for the following assets:
      --RB-M.--Funding for maintenance, repair, and operational costs.
      --FRC.--Operating and maintenance funding for FRC Nos. 6-8 and
            funding for crew Nos. 9-10. These assets will be homeported in
            Miami and Key West, Florida. Funding is also requested for
            shore-side maintenance personnel needed to support FRCs.
      --NSC.--Signals intelligence capability follow-on and crew rotational
            concept implementation for three NSCs located in Alameda,
            California.
      --HC-144A MPA.--Operating and maintenance funding for aircraft No.
            14; support and maintenance of mission system pallets 1-12.
      --C4ISR Follow-on.--Funding to maintain more than 200 C4ISR systems
            deployed and delivered by the Coast Guard C4ISR program.
      --Helicopter Systems.--Funding to operate and maintain communications
            and sensor systems for HH-60 and HH-65 helicopters.
      --Asset Training System Engineering Personnel.--Funding to support
            NSC and FRC training requirements at training center Yorktown.
    Polar Icebreaking Program--$39 Million (180 FTE)
        The budget requests $39 million in polar icebreaking budget
    authority. Funding will support the operation and maintenance of CGC
    Healy and prepare for the operational reactivation of CGC Polar Star.
    The Coast Guard plans to decommission CGC Polar Sea in fiscal year 2011
    and transition her crew to CGC Polar Star, enabling efficient
    transition to CGC Polar Star and facilitating her return to operations
    in fiscal year 2013.
    Critical Depot Level Maintenance--$28.7 Million (0 FTE)
        The budget provides $28.7 million for critical depot level
    maintenance and asset sustainment for vessels, aircraft, and shore
    infrastructure. Funding will increase support levels for the 140-, 175-
    , and 225-foot classes of cutters, restore aircraft spare parts, and
    provide sustainment for aging shore infrastructure.
    Distress Alerting Satellite System (DASS)--$6.3 Million (1 FTE)
        The budget provides $6.3 million to begin replacement of the Search
    and Rescue Satellite Aided Tracking (SARSAT) system with DASS. This
    multi-agency partnership also includes the National Aeronautics and
    Space Administration (NASA), the National Oceanic and Atmospheric
    Administration (NOAA), and the U.S. Air Force (USAF). Recapitalization
    of the SARSAT system beginning in fiscal year 2012 is critical to
    ensure no loss of coverage in distress notification and life saving
    response during the planned deactivation of the legacy SARSAT system.
    Coast Guard Network Security--$8.6 Million (0 FTE)
        The budget provides funding for the Coast Guard to transition from
    its commercially provided Internet Access Points (IAPs) to DOD IAPs via
    the Defense Information Systems Agency (DISA) to ensure security of
    vital networks and meet cybersecurity requirements.
               enhance maritime incident prevention and response
    Marine Safety Enhancement--$10.7 Million (53 FTE)
        The budget provides $10.7 million and 105 personnel to implement
    the next segment of the marine safety performance plan by investing in
    marine safety inspectors, investigators, and fishing vessel safety
    examiners at Coast Guard sectors. This initiative furthers the Coast
    Guard's efforts to achieve an appropriate mix of military and civilian
    personnel with the necessary skill sets and experience to perform
    marine safety inspections and investigations.
    Marine Environmental Response Enhancement--$11.5 Million (44 FTE)
        The budget provides $11.5 million and 87 personnel to enhance
    Marine Environmental Response (MER) capacity. This initiative supports
    the marine environmental protection mission by providing funding for an
    MER Incident Management and Assist Team (IMAT) and increasing technical
    expertise and strengthening MER career paths at Coast Guard sectors and
    strike teams. The request is the initial investment in the Coast
    Guard's initiative to improve mission performance in accordance with
    the MER mission performance plan.
                           support military families
    Child Development Services--$9.3 Million (6 FTE)
        The budget provides $9.3 million to increase access to childcare
    services for Coast Guard families with dependents under the age of 12,
    better aligning the Coast Guard with the DOD childcare standards.
    Additionally, this request funds 12 new positions critical to ensuring
    continued accreditation of the Coast Guard's nine child development
    centers by the National Association for the Education of Young
    Children.
    Military Housing--$20.0 Million (0 FTE)
        The budget provides $20 million to build family housing units at
    Sector Columbia River and recapitalize the Air Station Cape Cod
    unaccompanied personnel housing, the highest priority housing projects,
    critical to the well-being of military personnel and their families
    assigned to these geographic regions.
                  decommissionings, efficiencies, and savings
    High Endurance Cutter Decommissioning---$6.7 Million (-92 FTE)
        As part of its long-term recapitalization plan, the Coast Guard is
    decommissioning High Endurance Cutters (WHECs) as NSCs are delivered
    and made operational. The average age of the WHEC fleet is 43 years and
    these assets are failing at an increased rate resulting in lost
    operational days and increased maintenance costs. The Coast Guard will
    decommission one WHEC in fiscal year 2012.
    PC-179 Patrol Coastal Decommissioning---$16.4 Million (-108 FTE)
        The three remaining 179-foot Patrol Coastal (PC) vessels will be
    decommissioned per a January 2007 Memorandum of Agreement (MOA) with
    the U.S. Navy. These vessels will be returned to the U.S. Navy in
    fiscal year 2012.
    Standard Workstation Help Desk consolidation---$6.9 Million (0 FTE)
        Consolidates computer workstation support into two regional
    centers, eliminating 56 contractors.
    Program Support Reduction---$13.6 Million (0 FTE)
        Reduction in programmatic support across the Coast Guard including
    support reductions for: small boat replacement, reservist, and contract
    support for audit remediation, innovation program funding, recruiting,
    and training opportunities.
                       administrative savings initiatives
        In fiscal year 2012 the Coast Guard will seek efficiencies and make
    targeted reductions in order to sustain frontline operational capacity
    and invest in critical recapitalization initiatives.
    Management Efficiencies---$61.1 Million (0 FTE)
        Consistent with the Secretary of Homeland Security's efficiency
    review and building upon efforts in previous fiscal years, efficiencies
    will be generated by leveraging centralized purchasing and software
    licensing agreements, reductions in printing and publications,
    reductions in shipping and the transportation of things, reductions in
    advisory and assistance contracts, minimizing purchases of supplies and
    materials, office equipment consolidation, implementing automation and
    energy conservation/savings measures, and limiting Government usage of
    commercial facilities.
    Professional Services Reduction---$15.2 Million (0 FTE)
        A reduction in professional services contracts for enterprisewide
    mission support and operational support activities.
    Nonoperational Travel Reduction---$10.0 Million (0 FTE)
        A 25-percent reduction in Coast Guard-wide nonoperational travel,
    including travel for training, professional development, conferences,
    and international engagement.

                            COAST GUARD CAPABILITIES

        Senator Landrieu. Thank you, Admiral, very much, and I
    appreciate it.
        It's also, I think, appropriate to note Coast Guard facts
    and figures that are available on its Web site, some of the
    extraordinary work that you just touched on in your opening
    remarks about what the Coast Guard accomplishes in an average
    day. Just to say a few, the Coast Guard saves 13 lives,
    responds to 65 search and rescue cases, provides a presence in
    all major ports, and screens 679 commercial vessels and 170,000
    crew passengers. It tracked 1,200 icebergs that had drifted in
    the transatlantic shipping lanes last year. I could go on and
    on. And other testimony the Commandant has put into the record.
        I recently gave a speech on these capabilities, and it was
    an impressive part of what was prepared for me. It really is
    quite amazing, Admiral, the breadth of services the Coast Guard
    provides to our country on a daily basis and looking back over
    last year. We commend you.
        Let me start with a few questions.
        You have publicly expressed, despite your very positive
    statement this morning, some concerns about the Coast Guard's
    ability to carry out its 11 statutory missions. Recently, in
    February you said, ``We need to reduce the number and range of
    capabilities, unless we're properly resourced.''
        I know that you're pleased with several aspects of the
    budget. Can you elaborate on the capabilities to which you were
    referring in that statement? You've ordered a stem-to-stern
    review of Coast Guard capabilities. When will this review be
    completed?
        And if provided additional resources above the requested
    level, where would you invest your next dollar?
        So, it's three questions in one: Elaborate on the
    capability shortfalls, if you would. You've ordered a stem-to-
    stern review. When will that review be completed, and when will
    those recommendations be reported to this subcommittee? And if
    additional resources became available, where would you invest
    your next dollar?
        Admiral Papp. Thank you, ma'am. Those are three great
    questions, the first of which is this review of capabilities
    and whether we need to cut back on some of those capabilities.
        I think we generally acknowledge across the board that
    prior to 9/11 the Coast Guard was under-resourced to do all the
    missions it had then. And since 9/11 we've picked up additional
    responsibilities through the Maritime Transportation Safety Act
    and the Safe Port Act. And we're grateful to the Congress for
    the increase of people, first of all. We gained about 6,000
    people total, which has brought us back up to where the service
    was in approximately 1990. But we've also picked up these
    additional duties.
        Also culturally, this service, bless it, has this attitude
    of ``can do'', and it's both a blessing and a curse. And as we
    have looked across the security responsibilities and the
    threats facing our country, oftentimes because of this can-do
    attitude, we start doing things that no one really asked us to
    do. Examples of that would be, in some cases, rotary-wing air
    intercept in which we're now training our helicopter pilots to
    intercept low, slow threats that might approach a national
    security event. We are resourced to do that in the Washington,
    DC area, but we're not resourced to do it elsewhere. Yet, we're
    doing it.
        Vertical insertion of coastguardsmen onto ships is among
    other tactical operations that we've looked at, perceived a
    need, and started doing on our own, without the proper
    resources to do it. And, unfortunately, we've experienced some
    accidents over the last couple of years as we've trained for
    these activities.
        This has given me cause for concern and to take a pause,
    and to order this stem-to-stern review, which will look at all
    the capabilities out there, decide which ones are absolutely
    the highest priority, then make sure that we're properly
    resourced to carry out those activities, and properly trained
    to be the best possible to do those things.
        Inevitably, we will find some gaps that exist. And if it's
    a job that the Coast Guard should be doing, it's my
    responsibility to identify that to the administration and to
    the Congress, and to seek the proper resources to do it. If
    it's something that can be filled by another Government agency
    working through partnerships, then I think it's reasonable to
    go out to other Government agencies and ask them to fill that
    void in cooperation with the Coast Guard.
        That's the two first questions I think I've answered. And
    then last is, where would I invest my next dollar? Clearly, in
    recapitalization. We cannot continue to ask these young
    patriots to go out to sea in 40-year-old ships, living in
    conditions that were World War II vintage and stacked three-
    high in berthing areas where there's condensation, darkness,
    and extremes of heat and cold.
        Plus, we need to give them the proper tools to work
    effectively out there. New sensors, new radars, and survivable
    ships that will take them out in these very dangerous
    conditions, like the Bering Sea, the Gulf of Alaska, the vast
    reaches of the Pacific. We need to be about the business of
    getting those ships built as quickly as possible.
        Senator Landrieu. And Admiral, I understand that the
    average age of a Navy ship is 14 years, but the average age of
    a Coast Guard ship is 40. Is that correct?
        Admiral Papp. Yes, ma'am. Generally the Navy plans on a 20-
    year service life, generally. In fact, our WHECs, the Hamilton
    class, were used as a model for the Spruance class for the
    United States Navy, which was built years later. And all the
    Spruance class have been decommissioned. We're still running
    our original 12 WHECs, with the exception of the two--Hamilton
    and Chase--that we just decommissioned.

                                   OIL SPILLS

        Senator Landrieu. Let me ask you one other question. We
    have many, so this will be the first round. Coast Guard policy
    requires an incident-specific preparedness review to assess
    lessons learned from major oil spills. The 2010 review was
    recently completed in March. However, it is reported that many
    lessons learned from prior spills, such as the 2008 Cosco Busan
    spill, and the Cape Mohican spill 11 years earlier, had not
    been addressed or implemented before the Deepwater Horizon
    spill. So now we have those two previous spills, which were
    much smaller; now Deepwater Horizon.
        Where are you in your review of what it's going to take?
    Because it is a priority for, I think, the majority of the
    Members of the Senate--maybe not everyone, but the majority--to
    get deepwater drilling back up and operational in the Gulf of
    Mexico as soon as possible, recognizing that there are some
    additional safety requirements. Where are you in that task? And
    can you explain briefly the role of the Coast Guard in making
    sure that spills are prevented and then responded to
    adequately?
        Admiral Papp. Yes, ma'am. I'm very proud of the Incident
    Specific Performance Review (ISPR). As you've mentioned, we did
    it for Cosco Busan, and we've done it now for the Deepwater
    Horizon spill. It's an introspective review that I order for
    our service to take a look at how we did the job, and to reveal
    all the challenges, problems, and shortfalls that we might
    have.
        I just received that report, and we're in the process of
    evaluating that. We also need to make comparisons to the
    President's Commission report and other reports that are being
    prepared, including our marine casualty investigation, which
    has just been wrapped up.
        We will look across all those reports and come up with a
    comprehensive plan on what we need to do. But we're not sitting
    back, waiting on that. We're already moving ahead. In fact, the
    $22.7 million that we put in the fiscal year 2012 budget builds
    on a plan that we already started after Cosco Busan, which is
    to enhance our marine safety program with additional
    inspectors, marine environmental responders, and other people.
    It's a measured look, making sure that we grow slowly to make
    sure that we're doing the right thing. And the 2012 budget
    continues that process and, in addition, puts in there an
    incident management assist team of about 33 people, which we
    will forward deploy when a spill happens.
        One of the things that came across very clearly in the
    Deepwater Horizon spill is the lack of capacity that we have
    for a sustained operation like that.
        We're also not sitting back in terms of our efforts. We've
    directed all our Captains of the Port to review all their spill
    plans, particularly for those facilities that are offshore, and
    do a complete review of those. We're working with our area
    committees to look at worst-case scenarios and how we bring
    industry, Federal, State, and local together to combat those
    things.
        And all these things are in progress as we continue to
    evaluate and----
        Senator Landrieu. And finally, and specifically, when will
    you have that report to us? Do you think it will be 30 or 60
    days in time for us to consider it in this budget cycle?
        Admiral Papp. I think, certainly, the report has been
    published. It's out there. We made sure that the report itself
    went out. And it has a number of recommendations there.
    Clearly, I can't do every recommendation that's in the report,
    but we're going to assign some priorities to those. But the
    report is available, and we'll make sure you get a copy.
        Senator Landrieu. As soon as you assign your priorities,
    let us know.
        Senator Coats.

                                  BUDGET CUTS

        Senator Coats. Thank you.
        Admiral, thanks for your testimony.
        You mentioned tough tradeoffs, and garnering $140 million
    in savings, which you had to and that you tried to reinvest in
    frontline operations. Give me some examples of those tough
    tradeoffs, particularly that generated that $140 million. What
    did you have to take away?
        Admiral Papp. Sir, we really need to go back to the 2011
    budget. Once again, I have to thank this subcommittee for
    restoring money in the 2011 budget. We were facing some rather
    drastic cuts in there, including maritime safety and security
    teams and cutters. That's a quick way to get savings, but it
    unfortunately cuts back on your frontline operations.
        As we went into the 2012 budget cycle--my first budget in
    preparation to go forward--my guiding principal was, ``We will
    sustain our frontline operations.'' I don't want to lose any
    Coast Guard people or any Coast Guard resources that deliver
    services to the American people. So, we would look at
    administrative overhead, where we could find redundancies and
    some fat to carve away. We didn't find a lot of fat. We're
    scraping a little bit of the muscle. But most of it is in
    administrative services, operational support reductions,
    travel, conferences, and other things that are enhancements
    that we would like to be doing--because I think it helps us to
    keep a healthy workforce--but the alternative is to cut back
    operations or cut back aircraft and ships. And I just don't
    want to do that.

                              ILLEGAL IMMIGRATION

        Senator Coats. We've had a lot of interest here, obviously,
    in strengthening the Border Patrol regarding illegal
    immigration. There have been some significant successes at a
    considerable cost.
        There is some thought that, as we strengthen our border
    security on illegal immigration, there may be more attempts to
    use the oceans and the seas as entering points. Is this
    something that you've looked at, and that you anticipate more
    responsibilities coming your way?
        Admiral Papp. Yes, sir. It's like squeezing the balloon. If
    you make the border, the land border, more secure, there is the
    possibility of going around it by going out to sea. But we've
    got that fairly well covered by a persistent presence, both on
    the gulf and Pacific sides of the Mexican-American border. We
    have patrol boats out there, and we have larger cutters further
    out to sea.
        Frankly, most of our migrant vectors are down in terms of
    numbers of people. We've seen a slight rise in the last few
    months in Haitians. But whether it's Cubans, Dominicans,
    Haitians, or migrants from across the Pacific, all those
    numbers are down. I believe everything points back to us having
    a persistent presence out there, maintaining those cutters and
    aircraft out there. And people know they're there--and a policy
    of returning migrants to their home country when we pick them
    up. The Coast Guard is very good at doing this, but we're
    finding ourselves increasingly challenged because of the
    difficulty in keeping these old ships running out there and
    keeping them out on station.
        Senator Coats. Describe the process for me, if you would.
    You're in the gulf, you come across a makeshift boat. There are
    45 illegal immigrants trying to reach land. You intercept that.
        What happens from that point forward in terms of those
    individuals? They're brought on the boat? They're brought on
    shore? Where are they detained? How are they? What's the
    process that you have to go through?
        Admiral Papp. Yes, sir. That is the value of these multi-
    mission cutters we have that have flight decks for landing
    helicopters, but we also can accommodate large groups of
    migrants.
        It's not unusual, first, to find a group of 45, whether
    it's Cubans or Haitians. What we do is we bring them aboard; we
    treat them humanely; we feed them; we make sure they have
    facilities to protect them; and we have agreements in place
    with both Cuba and Haiti to repatriate them to their countries.
        We also interview these migrants to make sure there are not
    any articulable concerns about political repression or
    punishment that they might receive when they go back. Sometimes
    there are people that may have some political concerns in terms
    of going back. We interview these people, and if we find that
    there's an articulable threat or belief, then we will work with
    Customs and Border Patrol, or Immigration and Customs
    Enforcement, and bring them back, and they'll get further
    interviews.
        But for the most part, we repatriate them back to their
    countries.
        Senator Coats. I'm new to the subcommittee, so I don't know
    the answer to this, but when you repatriate those immigrants,
    illegal immigrants, you take them back yourself? Or do they go
    through some process system on land first?
        Admiral Papp. No, sir. If they are interdicted at sea we
    bring them on; we treat them; and then we bring them back
    directly. For Haiti, we take our ships into Cap-Haitien, which
    is a delivery point when we turn them over to Haitian officials
    overseen by United Nations people who are there and working
    with the Red Cross. And we have an agreement with Cuba. We
    generally have to transfer them to a smaller Coast Guard cutter
    to go into the Port of Cabanas, which is on the north coast of
    Cuba, to return them there.
        Just this morning, though, we had four Cubans who were able
    to voice what they perceived as a threat. What we did was, we
    took them around to Guantanamo Bay and delivered them there.
    And we have a migrant holding facility that does further
    interviews on shore to decide whether they go back to Cuba or
    they are brought to the United States.
        Senator Coats. I have more questions. But I think we'll do
    a second round, so----
        Senator Landrieu. Yes, we will. Thank you. Senator----
        Senator Coats. Thank you.
        Senator Landrieu [continuing]. Lautenberg.
        Senator Lautenberg. Thank you, Madam Chair.
        Admiral, you're now a seasoned Commandant, and I can tell
    you that you have won respect for the kind of leadership that
    you have shown with the Coast Guard since the time that you
    have become the Commandant, and we thank you----
        Admiral Papp. Thank you, sir.

                               TERRORIST ATTACKS

        Senator Lautenberg [continuing]. For that.
        According to the FBI, New Jersey is home for the most at-
    risk terrorist attack in the United States. The area has
    targets ranging from a port, to airports, and chlorine gas
    plants. An attack in this area could endanger 12 million who
    live within a fairly short radius.
        With the administration's decreased budget requests, will
    any efforts in the Port of New York and New Jersey area be
    affected in terms of its supervision by the Coast Guard?
        Admiral Papp. No, Senator. As I said earlier, my emphasis
    on the 2012 budget is sustaining at the current level our
    operations in the field, delivering those services that the
    American citizens expect of our Coast Guard.
        New York, I believe, is well covered. As you know, we have
    Sector New York, which is one of our most robust sectors in the
    Coast Guard, located out on Staten Island; Station New York,
    where over the last 10 years we've basically doubled the number
    of boats and the number of people at the station; and the
    Maritime Safety and Security Team New York, which is there to
    provide response to terrorist events or provide additional
    security when there are security events in process.
        The other thing that's very important, though, is the
    active partnerships that we have. Through our Area Maritime
    Security Committee, we bring together all the State and local
    port partners, plus industry. And I would say probably one of
    the biggest allies is Commissioner Ray Kelly of the city of New
    York. They have pretty robust services themselves. But they're
    all complementary. We try not to be redundant. And I think New
    York is well covered.

                  CAPE MAY TRAINING CENTER PIER RECONSTRUCTION

        Senator Lautenberg. The pier, port, the Cape May Coast
    Guard Training Center is in pretty bad shape. It presents a
    safety hazard. The pier supports patrol boats that are
    responsible for performing the critical safety and security
    missions in the mid-Atlantic region. Your budget request
    includes $11 million for the reconstruction of that pier.
        What kind of an impediment might follow on, to a lack of
    funding for that mission?
        Admiral Papp. I've been up there, and I've walked that
    pier, sir, and we cannot take heavy equipment out there. We
    have two major cutters that call that home port. And
    ultimately, you need to take cranes out there to do work on the
    ships when they're in port. As it stands right now, you can't
    move heavy equipment out there, so you actually have to move
    the ships in order to get any work done. And it affects daily
    work like delivering supplies and things if you can't take a
    truck down the pier.
        So, getting that replaced and giving us the versatility to
    be able to do pier-side work, keeping our cutters sustained
    that are in home port there, and not having to put extra
    burdens on our people to have to move the ship if work is to be
    done after they've already come in off long patrols are of
    great benefit to us.

                                 PIRATE ATTACKS

        Senator Lautenberg. Admiral, you know the Coast Guard
    represents the United States before the International Maritime
    Organization in our efforts to prevent and respond to acts of
    piracy. Pirate attacks have been rising steadily in recent
    months, leading to some call for the increased use of arms on
    merchant ships.
        What's the Coast Guard thinking about that? It sounds like
    our ships ought to be able to defend themselves.
        Admiral Papp. What we do know, sir, is that I think the
    pirates are zero for 12, 13, or 14 whenever they've tried to
    attack and take a ship that has a security team onboard. So, we
    have evidence to validate the fact that if you have a security
    team onboard, you're most likely going to survive.
        How those security teams are provided is what the real
    question is, and some countries still prohibit the use of
    security teams onboard ships that fly their flag. There are
    some shipping companies that are actually changing their flag
    to other countries now so that they can bring security teams
    aboard. And there seems to be a fairly robust activity out
    there in terms of companies that are willing to provide those
    services, and the shipping companies seem to be able to afford
    them.
        I encourage the use of security teams. But we also have
    other measures that work, as well, including safety procedures
    for the crews that are onboard; increasing speed; and trying to
    make the ship less accessible to pirates coming aboard. It's a
    full range of activities that you can do. But ultimately what
    we've found is, security teams work.
        Senator Lautenberg. And I close with this, Madam Chair.
        I would hope that you wouldn't keep using a reference to
    ``as old as World War II.''
        Some of the parts that still remain are functioning quite
    well.
        Admiral Papp. Yes, sir.
        Senator Landrieu. Thank you, Senator Lautenberg.
        Senator Cochran.

                         NATIONAL SECURITY CUTTER (NSC)

        Senator Cochran. Welcome again, Commandant to our hearing.
    We appreciate the fact that in our State of Mississippi we're
    building Coast Guard vessels, and we're very proud of the fact
    that Ingalls Shipbuilding has produced two cutters--I think
    cutter Nos. 5 and 6--and they're looking to continue the
    construction of these cutters. And my question is, what is your
    assessment of the workman contribution to this project? And
    what are your assessments of the efficiencies that are gained
    by long lead procurement of these vessels?
        Admiral Papp. Sir, that's a great question. I have been out
    to San Francisco just a few weeks ago, and I spent a full day
    riding NSC No. 2, the Waesche. It is an outstanding ship. I am
    almost willing to give up these stripes if I could get that job
    to be the captain of one of those ships. It is that
    outstanding.
        On the other hand, it's not extravagant, either. It gives
    us enhanced capabilities to better carry out our mission in a
    broader range of weather conditions, a longer range, and speed,
    and to do it more economically with fewer crew members, better
    fuel efficiency, and better environmental conditions as well.
        I was totally impressed with the smooth functioning of that
    ship and the capabilities that it brings to bear for all Coast
    Guard missions.
        Proving it is another thing. And right now, the cutter
    Bertholf--the first--is up in the Bering Sea. I read a report
    from its commanding officer, Captain John Prince, just this
    morning. They are out in 20-foot seas with up to 60 knots of
    wind, and still are able to launch and recover their
    helicopter--unheard of in the past to be able to do that from
    one of our WHECs up in the Bering Sea. They are launching boats
    in worse conditions than we were able to in the past because of
    the stern-launch capability. They are able to stay out there
    longer because the engines are more economical to run--even at
    higher speeds--than the ships that it replaces. We're doing it
    with about 40 fewer people in the crew. They're living better.
    The ship rides better because we have segregated ballast tanks
    now, instead of fuel tanks that you had to mix water in before,
    which gives you a better, more stable ride. It is proving the
    solid design and all the work that went in. And I couldn't be
    more pleased with these ships.
        No. 3 is nearing completion--the Dorothy Stratton. And
    she'll be delivered to the Coast Guard later this year. We were
    able to award the contract on No. 4 just recently, and because
    of the generosity and the work of this subcommittee, we have
    the money in the 2011 budget now to award the contract on No.
    5.
        And to your final question on long-lead time materials,
    whenever we can keep a stable and predictable flow of funding
    going, the shipyard gains confidence, we gain confidence,
    prices are lower, and we save money in the long run.
        Senator Cochran. That's a very impressive report. And it
    makes me very proud of the workers and officials of Ingalls,
    and the Coast Guard, who've devoted such a strong workman-like
    performance into the building of these ships, and getting them
    to sea where we need them operating.
        I know too that there are plans to build additional
    cutters, and long-lead-time materials are needed for those
    ships. Are those requests contained in your budget request
    before the subcommittee? Or do we need to have a conference
    with you to see what you need, what you can use, and what would
    be efficient and appropriate for this subcommittee to support?
        Admiral Papp. Sir, ultimately, in my original plans and in
    the Coast Guard's overall plans, we would have liked to have
    requested funding for NSC No. 6 in this budget that's going
    forward.
        We were confronted with a very difficult situation. I will
    admit that we had some problems early on because we had a lead
    systems integrator, and we ran into difficulties there. We took
    the contract in-house for the Coast Guard. And the first thing
    we needed to do was negotiate a fixed-price contract for cutter
    Nos. 4-8. It took us a little long to hammer out that deal, to
    get the fixed-price contract. Ultimately, I believe we came up
    with a good price on No. 4. And the shipyard, I think, is
    negotiating in very good faith on No. 5, which we'll see
    awarded here very soon.
        But because we didn't have a price for No. 4, we were
    uncertain what it would cost, what No. 5 would cost, and we
    thought that we would need some additional money, given our
    estimates for NSC No. 5. We could not fit that additional money
    for No. 5 plus the full cost of No. 6 in the 2012 budget.
        So, I made what I thought was a reasonable decision at the
    time, which was just to ask for the additional money to
    complete NSC No. 5, and we would defer the full funding.
        What I'm confronted with now is OMB Circular A-11 requires
    full funding, long-lead production, and post-production costs
    all in the same year. This is a challenge for us, because it
    eats up almost one-half our acquisition budget. So, I can't fit
    that in until the 2013 budget.
        Now, we did ask for $77 million in the 2012 budget to
    complete No. 5. You gave us the money within the 2011 budget,
    so that leaves a little bit of a bogey there in the 2012 budget
    as it goes forward. The current fixed-price contract is for NSC
    Nos. 4 and 5, and long-lead time materials for NSC No. 6.
        Senator Cochran. What is a fogey bear? What?
        Admiral Papp. I said, a little--a bogey is a target of
    either opportunity or a problem.
        Senator Cochran. Okay.
        Admiral Papp. Because it sits there, originally, as the
    President's budget goes forward, it's $77 million to complete
    the funding for NSC No. 5. So, it sits there right now with no
    assignment.
        Senator Cochran. I hope the subcommittee can work with you
    and your team, the House, and our House counterparts to try to
    figure out the most efficient and effective thing we can do in
    this cycle. But you're open to further consultation and
    discussion of this issue, I hope.
        Admiral Papp. Yes, sir.

                            UNMANNED AERIAL SYSTEMS

        Senator Cochran. Madam Chair, I have other questions, but
    particularly, I'm impressed. If I have time to ask about the
    unmanned aerial systems, the Coast Guard's been analyzing
    various unmanned aerial systems. I wonder what the status is of
    potential requests for next year's budget, or a supplemental
    request dealing with unmanned aerial assets.
        Admiral Papp. Clearly, when we devised the system of
    cutters and aircraft, unmanned aerial systems was a part of
    that--to make it, to enhance the effectiveness of the system,
    and to compensate for having, ultimately, fewer ships out
    there.
        Right now I am searching for room on where we might fit
    that in. Plus, I have to look at other partnerships as well to
    see if we might leverage them. The Navy is experimenting with a
    tactical ship-launched Unmanned Aircraft System (UAS), Fire
    Scout, which I think holds promise. But I don't have the money
    to move forward with that right now. So, we're leveraging off
    the Navy's work, and we're hopeful that they will work with us
    to experiment with one of the NSCs to see if that's the
    direction to go.
        The other is more a Predator-type UAS that would cover,
    which would do wide-area coverage. And right now, Customs and
    Border Protection is working with some Predators. We're
    experimenting with them, using some Coast Guard pilots to look
    at the effectiveness of that system and how it might be
    employed with our ships and cutters.
        Right now ultimately, we're doing better because the NSC
    gives us better sensors and coverage, and working with our
    current manned aircraft, it makes us no less capable than we
    have been in the past. But we would look forward to the future
    when we can identify the systems we need and then work them
    into our budget.
        Senator Cochran. Thank you.
        Thank you, Madam Chair.

                               DRUG INTERDICTION

        Senator Landrieu. Thank you.
        Let me just follow up on that. The question is, what is the
    most effective way to catch the bad guys? You know, is it with
    ship patrols? Is it with unmanned aircraft?
        I'm concerned about the increased reliance by these major
    drug dealers to basically build their own submarines.
        Without going into classified information, what is the
    Coast Guard's current response to some of these new, emerging,
    and more sophisticated operations?
        Admiral Papp. They're clearly presenting us with a
    challenge. But the drug trafficking organizations are still
    using a wide range of conveyances. Sometimes just slow fishing
    vessels--sometimes go-fasts. They're also, as we know, using
    semi-submersibles, and now fully submersibles. They will move
    depending--it's basically a chess game. And when we come up
    with a new tactic, they will move to another new tactic, and we
    have to react to that.
        When you ask, what's the most effective? It's really a
    combination of all those things, and then another element,
    which you didn't mention, is intelligence. We can't do nearly
    as well as we do now if it was not for active intelligence,
    working with our partners, bilateral and multilateral
    agreements that we have with South and Central American
    countries that allow us to share information, work together,
    train together, and also actually, conduct operations together
    on the water, and sometimes even allow us to go into other
    sovereign waters based upon the agreements that we've come up
    with.
        So, intelligence is probably one of the most important
    things for us, because it will tell us oftentimes not only
    where to go, but what ship to look at and oftentimes what
    compartment in that ship to look at.
        I'm not divulging--I'm talking in generalities; that's how
    sophisticated our intelligence is. And it's a combination of
    that with our operational assets that are out there.
        Senator Landrieu. I'm so glad you mentioned that, Admiral.
    Because I was recently down in Guatemala on a trip focused on
    another issue, but took the opportunity to get a security
    briefing by our Embassy, and this is exactly what they were
    talking about. The Guatemalan Government was very complimentary
    of the Coast Guard and your partnerships. I want this
    subcommittee to know that we just can't stop drugs at the
    border, along the Southwest Border. They're coming through
    maritime channels, ship channels, oceans, and bayous.
        And getting the right intelligence before they leave the
    ports or intercepting them well before they get into our ports
    is a smart strategy. It's a combination of the right kind of
    materials and platforms. The intelligence aspect and the
    partnership with some of these governments, such as Honduras,
    Guatemala, Nicaragua, and El Salvador are extremely important.
    And do you want to comment on that? And I have one more
    question----
        Admiral Papp. Just to----
        Senator Landrieu [continuing]. And then I'll go to Senator
    Coats.
        Admiral Papp. Yes, ma'am. Just a quick one, as well. But
    another thing that I'd like to brag a little bit about is that
    it's not just the United States Coast Guard cooperating with
    those South and Central American countries. We also facilitate
    cooperation among Federal agencies as well. One of my
    collateral duties is the chairman of the Interdiction
    Committee, where we bring together Justice, the Department of
    Defense, and a full range of the interagency to share and to
    work together, and to come up with strategies.
        At our last meeting we brought in General Fraser, who's the
    Commander of SouthCom. He has a deep and abiding interest in
    what goes on in Central America.
        But at the end of the day, you're absolutely right. We need
    to stop these drugs in the transit zone where we can pick up
    that 6.6 million tons of cocaine at one time, before it gets
    ashore in Central America, is broken down into thousands of
    packages to come across our border at various locations, and of
    course, also fueling the violence that we're seeing down there
    in Mexico.

                                AVIATION SAFETY

        Senator Landrieu. Thank you.
        And one more question. Since 2008--and you slightly touched
    on this, but I want to go a little deeper--14 Coast Guard
    aviators have died in recent accidents while conducting routine
    missions. Keeping the men and women of the Coast Guard safe,
    I'm sure, is your highest priority. I understand the Coast
    Guard has reviewed the cause of these incidents, the adequacy
    of aviation training, and operational maintenance. But what
    recommendations are you making in this budget? What have you
    recommended that we can support in our efforts to keep these
    men and women safe on these routine training missions?
        Admiral Papp. Yes, ma'am. Thank you for that. I was asked a
    couple of days ago, ``What keeps you awake at night?'' And I
    said, ``Actually, I sleep pretty good. We've got good Coast
    Guard people out there, and good leaders that are getting the
    job done.'' But one of the sleepless nights that I can count is
    the loss of our helicopter 6017 very shortly after I became
    Commandant.
        Fortunately, we had already started our aviation safety
    study. And we are well along in terms of--and I want to thank
    Senator Lautenberg for calling me at the time and pointing us
    toward an investigation that the Army did on some helicopter
    losses.
        What we found out is that there was not a connection. The
    Army was mostly mechanical. Ours is really head work. And what
    I mean by that is, we've seen a lot of rapid cultural change
    within our aviation community over the last 10 years. We've
    picked up additional new responsibilities. The rotary wing air
    intercept that I talked about--tactical vertical insertion and
    other things, other than search and rescue, that we didn't do
    10 years ago.
        You can't necessarily point it on just that either. We've
    also gone through a rapid progression of upgrades and
    instrument and equipment changes within our helicopters. So,
    there's been change there. And I think also perhaps a little
    bit of complacency has slipped into our aviation culture across
    the Coast Guard; perhaps a diversion of focus away from safety
    concerns, leaders getting out on the flight deck and spending
    time with their young pilots, having them focused on their
    qualifications, and crew management within the cockpit. It's a
    whole collection of things that came together and resulted in
    what were very, very unfortunate accidents under very routine
    circumstances. And it was not mechanical. It was human failure.
        We're working very hard right now, taking our most senior
    aviators and going around to every air station. And we've got a
    number of other things in the works to improve upon an aviation
    culture in the Coast Guard that has produced the best maritime
    pilots in the world, making them even better.
        There's no cost in the budget for this. It's something we
    have to take on as leaders, and we're about the business of
    doing that.
        Senator Landrieu. Thank you, Admiral.
        Senator Coats.

                            PERSONAL LOCATOR DEVICES

        Senator Coats. Thank you.
        Admiral, I'm aware that the Navy has placed on every ship
    afloat, and every sailor on that ship, a locating device that
    if there's a man overboard, woman overboard, they have an
    instant alert and GPS location. I mean, we all think of going
    out on a Sunday in the Chesapeake Bay, and someone falls
    overboard, and the boat just simply turns around and picks them
    up. But, obviously that's not the case in the open ocean.
        Do you have a similar system in place?
        Admiral Papp. What we have----
        Senator Coats. With your guardsmen.
        Admiral Papp. I'm not sure if we have something similar
    because I'm not familiar with the system that the Navy has
    employed, and I haven't read anything about that.
        There are a number of small personal systems that are out
    there on the market right now. In fact, we just did a rescue in
    Alaska where an airplane crashed, and somebody was able to
    light off their personal device, which gave us an alert and----
        Senator Coats. A vector.
        Admiral Papp [continuing]. Vectored us into it.
        We put a number of what we call personal protective
    equipment on our people whenever they're involved in dangerous
    operations. There are a full range of things from signaling
    devices to strobe lights and other things. What I'll have to do
    is look at a comparison of what the Navy is issuing right now
    and see if there are any enhancements that we can do for our
    people as well.
        Senator Coats. Yeah. I don't even know the name of it, the
    company, or what the market is. It's just that I've run into
    someone that told me about it, and he indicated that there's
    been a dramatic reduction in sailors lost at sea as a result of
    this thing.
        Admiral Papp. I'll look it up, sir, and we'll get back to
    you.
        [The information follows:]

        The Navy's utilizes the Man Overboard Indicator (MOBI). The MOBI is
    a water- or manually activated personal alarm system designed to
    improve the safety of sailors involved in operational situations with
    the potential for falling overboard. MOBI uses a transmitter to aid in
    the detection, location, and recovery of sailors who fall overboard.
    MOBI is a Naval Sea Systems Command (NAVSEA)-managed program.
        While the Coast Guard does not utilize the Navy's MOBI, we do
    utilize a similar device, the Personal Locator Beacon (PLB) or
    Personnel Electronic Position Indicating Radio Beacon (P-EPIRB). These
    devices are worn on the boat crew survival vest by all coxswains,
    crewmembers, boarding officers, and boarding team members in accordance
    with the Rescue and Survival Systems Manual (COMDTINST M10740.10F).

                               LIVING CONDITIONS

        Senator Coats. Talk a little bit to me about your living
    conditions. What percent of your forces are married?
        Admiral Papp. We are one of the highest, and I don't have
    the exact figure, but my recollection is, it's up close to 50
    percent, which we actually have the highest rate of people that
    are married, compared to the other four services.
        Senator Coats. And married with children, I assume.
        Admiral Papp. Most of them. Yes, sir.
        Senator Coats. I mentioned then your concerns about
    housing, adequate housing, and childcare. Where are you in that
    process? And where do you rank? We all know the Air Force has
    the best facilities, including golf courses. We all know that
    the Navy does pretty well, and the Army has improved
    dramatically. Marines are happy with a slab of cement and a
    tarp. But where does the Coast Guard fit in the list of
    services here in terms of what you would call the kind of
    housing that you're proud to have your people live in? Are you
    really deficient? Are you bottom of the ladder or----
        Admiral Papp. We're clearly at the bottom of the ladder.
    But what I have to qualify that with is that we have fewer
    people who live on big bases. We are locally dispersed, and
    it's very hard to come up with Coast Guard housing because
    we're at so many small stations around the country. So, we look
    at a combination of Government leases.
        We, of course, have housing allowances for all of our
    people. One of the things that we have picked up--I declared
    this during my state of the Coast Guard speech. This is the
    year of the Coast Guard family. And my wife Linda and I have
    traveled around. She's met with literally thousands of Coast
    Guard people. We've chosen to focus on those things we think we
    can make a difference on, which is housing, childcare,
    ombudsman services, and spouses helping spouses.
        Housing is a challenge for us because where we do have
    bases--for instance, Cape May, New Jersey, or Kodiak, Alaska--
    we have done okay in terms of trying to maintain them. But
    they're very costly.
        The other services were facing the same challenges, and
    they got authorities and the money to enter into public-private
    ventures. That is----
        Senator Coats. Do you have that authority?
        Admiral Papp. We do not have that authority. Also, we've
    had it in the past, but it requires us to escrow a large amount
    of money, which we never are able to get in our budget.
        So what we've done, sir, is we've actually leveraged off
    the other services. Out in Hawaii what we did was we ceded some
    of our land that we had for our old housing to the Army. They
    brought in their public-private authorities and built houses,
    which now our Coast Guard takes part in.
        At the other end of the spectrum, I actually live in a
    privatized house over at Bolling Air Force Base right now.
    We're selling the Commandant's house, which we owned for 40
    years, in Chevy Chase because it costs a lot of money, and we
    do have authorities to take the proceeds from those sales and
    turn them back into housing for our servicemembers.
        So, we're selling the Commandant's house, and I've moved
    into a place that I pay rent on to a private company on Bolling
    Air Force Base, and it is up to Air Force standards, sir.
        That's what we need to do for the rest of our workforce.
    I'd love to be able to have those public-private venture
    authorities, but it costs a lot, so what we're doing is, we've
    got a mixture of Coast Guard supported housing; we're looking
    where we can leverage off the other services, to take advantage
    of their authorities; and we're coming up with a comprehensive
    plan on the way ahead.
        Senator Coats. I think you should keep us advised. I mean,
    morale and quality of service are directly related to the
    quality of life that is provided for family and children. Your
    people are out doing dangerous work and away from home. And
    they want, they need, to have some sense of comfort that their
    loved ones are taken care of.
        Admiral Papp. Yes, sir. Absolutely.
        Senator Coats. Thank you.
        Senator Landrieu. Thank you, Senator.
        I'd like to follow up on that as well, and I'll recognize
    Senator Lautenberg in a moment.
        I helped to lead the effort to privatize the Army housing,
    which has been really successful with the family housing. And
    at one point, Senators, it was estimated that it would take
    nearly, at the rate we were going, 200 years or more to provide
    housing for some of our men and women in uniform, according to
    what the budgets look like. So, we had to change the paradigm.
    And this private housing has been phenomenally successful. I'm
    a member of the Subcommittee on Military Construction, Veterans
    Affairs, and Related Agencies.
        So perhaps, Senator Coats, you and I could really work
    together on this subcommittee to see new strategies that we
    might be able to employ--the partnerships you suggested and
    other avenues to provide really stepped-up housing
    opportunities for our men and women in the Coast Guard. And I'd
    like to commit to you to try to do that with your help and
    assistance.
        Senator Lautenberg.

                      RESPONSE TO ENVIRONMENTAL DISASTERS

        Senator Lautenberg. Thanks, Madam Chair.
        I can tell you that for the people in the Coast Guard who
    are at Cape May, New Jersey, that it's a wonderful place to be.
    If we could enlarge that facility, then we could take care of
    more. And then this summer--that's right on the beach--we could
    put up some tents and accommodate people, and then the rest of
    the year they'd have the--it's wonderful.
        They deserve better. I can tell you that. And when I look
    at the deteriorated situation with the quarters there now, that
    makes me unhappy. I'm so proud that you're so able to do the
    recruiting that you have to do, as mentioned earlier.
        I want to go on to something a little touchy, Admiral Papp.
    The recent report on the Coast Guard's response to the
    Deepwater Horizon oil spill found that the Coast Guard's
    ability to respond to environmental disasters had ``atrophied
    over the past decade.'' How has the Coast Guard planned? How do
    you respond to that? And what can you do to improve your plans
    for better security missions and the need to improve the
    environmental response?
        Admiral Papp. Sir, I agree that it had atrophied over the
    last, probably, decade to 20 years. And part of that is because
    we've been very good at prevention. You have prevention and
    response. You hope that you don't have to respond because
    you've prevented the spills from happening in the first place.
    And we've been so good at the prevention side that I think, I
    don't know whether we just became complacent--part of it is
    complacency. And once complacency slips in, perhaps you're not
    looking as far forward in terms of new technology and other
    things that might be able to help you in the future for a
    response.
        I think that the Oil Pollution Act of 1990 placed most of
    the responsibility for maintaining equipment with private
    industry, and I don't think private industry has looked that
    far forward either, or considered the implications of a worst-
    case scenario spill like we experienced in Deepwater Horizon.
        So, I think it's incumbent upon us to take a look at what's
    the proper balance between Federal and industry, in terms of
    maintaining equipment and preparation. Ultimately, the answer
    is, working together.
        The Coast Guard has already started----
        Senator Lautenberg. Forgive the interruption. Does that
    include developing better specs for drilling and accident
    prevention? Is that something the Coast Guard would be taking
    on? I don't know how you do the preventive side and make it the
    rule.
        Admiral Papp. Organic to the Coast Guard, we do not have
    the expertise in terms of drilling.
        I think we all learned an awful lot through that. That
    falls under the Department of the Interior right now. And what
    we're doing is we're working very close with the Department of
    Interior to make sure that we collaborate as we go forward.
        The Coast Guard has expertise in firefighting, stability,
    construction of the mobile platforms, and other things. But
    we've got zero organic technical expertise in the drilling
    operations, particularly in the deep sea.
        I'm unwilling to volunteer to take on additional
    responsibilities to bring that organic technical expertise to
    the Coast Guard. I think it exists within the Department of the
    Interior. And what we need to do is make sure we're doing
    exactly what we do now, which is we work very close with our
    Federal partners----
        Senator Lautenberg. So you can encourage them to
    participate more actively in the prevention side.
        Admiral Papp. Yes, sir.

                                 MARINE ECOLOGY

        Senator Lautenberg. I want to ask you this. We've seen
    incredible changes in our marine ecology as a result of
    changing temperatures. Does the Coast Guard have the ability to
    either recognize changes in marine functioning--the fish, the
    undersea plants, coral, and those kinds of things that all make
    part of the ecology. Is there any awareness of the Coast Guard
    about what is taking place as a result of what is obviously the
    climate change that we're seeing?
        Admiral Papp. We're certainly interested in it. And no, we
    don't have organic expertise or staffs that are applied to
    that. We're more reactive in nature in terms of carrying out
    our current authorities when, for instance, in the Arctic we
    have much more open water now, and the potential for commerce
    and shipping to increase in those areas. We rely upon the
    National Oceanic and Atmospheric Administration and other
    Government agencies that do have that focus of the scientific
    study of our waters and the changes that are happening. The
    results of those changes are something that we have to deal
    with.
        Senator Lautenberg. Now, it's just that you have so many
    people on the sea, and there are changes that are occurring.
    And I don't know whether you see these changes in makeup,
    quantity, or things that just fall your way. I know that when
    we put an embargo on striped bass years ago and so forth, the
    Coast Guard had some part in maintaining the rules for catches.
    And it worked wonders. I mean, we replaced the quantity, and it
    improved the quality as well.
        So, I ask that because I'm like all of us that are
    concerned about what is taking place in the environments and
    the climate change. And if there's any way that there is
    information flow without giving you another task because you're
    so close to the reality out in the sea.
        Thanks very much, Madam Chair.
        Senator Landrieu. Senator Cochran.
        Senator Cochran. I have no further----

                          OFFSHORE PATROL CUTTER (OPC)

        Senator Landrieu. Okay. Thank you.
        I think we're about complete. If you all would just be
    patient, one more question from me, then we're going to end the
    meeting.
        You recently released a draft request for information for
    the Offshore Patrol Cutter (OPC). I understand this is arguably
    the most important acquisition for these particular boats--the
    backbone of the Coast Guard.
        Your future-years capital investment budget includes
    funding for both the OPC and the NSC. It reaches almost $2.3
    billion. You've never requested more than $1.4 billion in any
    fiscal year. Can you just briefly comment? And we'll use that
    question to close the meeting.
        Admiral Papp. Yes, ma'am. It's an interesting turn of
    events because I've watched Commandants come up here for years
    and always being accused of not asking for what they need or
    not asking for enough.
        We're asking for what we need. And we need to be about the
    business of designing and selecting, and then building those
    OPCs--25 of them in our project baseline. They will provide the
    capabilities--the NSC is the high end, with the most
    capabilities. And then of course, the FRC, our patrol boat,
    which will be inshore, doesn't have a flight deck and is less
    capable.
        The OPC will provide the connection between those two and
    in the outer zone of our defenses for security as you come to
    the country. It's got to be capable, though, of operating in
    the north Atlantic, the Bering Sea, and the Gulf of Alaska,
    which most of our Medium Endurance Cutters (WMECs) do not right
    now. They are just not stout or capable enough to survive those
    types of elements.
        So, we need something that's going to probably perform in
    about Sea State 5, be able to launch helicopters, and recover
    boats in more challenging conditions. The OPC is that ship.
    I've looked at the basic specs that we've put out recently. I
    think it will be a very good ship to provide that, to fill that
    gap. We also have to be mindful that ultimately, with the 8
    NSCs and the 25 OPCs, that's 33 ships replacing the 41 that we
    have right now.
        So, we're pressing ahead. My job is to identify what we
    need in those years. And the administration signed off on our
    capital investment plan so I'm very hopeful we'll follow
    through with that.
        Senator Landrieu. Thank you, Admiral. And again, thank you
    for your testimony today, for your forthrightness, for asking
    for what you really need. We look forward to working with you.
    And thank you for what your men and women do, amazing work
    every day. Thank you.
        Admiral Papp. Thank you, ma'am.

                         ADDITIONAL COMMITTEE QUESTIONS

        [The following questions were not asked at the hearing, but
    were submitted to the Department for response subsequent to the
    hearing:]
                Questions Submitted by Senator Mary L. Landrieu
             2010 oil spill--incident-specific preparedness review
        Question. Coast Guard policy requires an incident-specific
    preparedness review to assess lessons learned from major spill events.
    The review of the 2010 oil spill in the gulf was recently completed in
    March. A primary conclusion of the independent review was that ``the
    Coast Guard's Marine Environmental Response (MER) preparedness and
    response programs have atrophied over the past decade''. It found that
    the Coast Guard's area contingency plans were inadequate, there was a
    lack of engagement with State and local governments on national
    contingency plan responsibilities, environmentally sensitive areas were
    given uneven and inadequate attention in area contingency plans, and
    more research is necessary for alternative response technologies. The
    report also noted that many lessons learned from prior spills, such as
    the 2008 Cosco Busan spill and the Cape Mohican spill 11 years earlier,
    have not been addressed or implemented effectively by the Coast Guard.
        What is the Coast Guard doing to implement the recommendations of
    the review and ensure the lessons learned are institutionalized?
        How will you oversee and measure the effectiveness of these
    changes?
        The budget request includes $11.5 million to enhance Marine
    Environmental Response (MER) capacity. Your written testimony notes
    this is an ``initial investment''. Do you have a long-term financial
    plan for this effort? Please provide the plan to the subcommittee when
    it is completed.
        Answer. While the report does not necessarily reflect the views of
    the Coast Guard, the Incident Specific Preparedness Review's (ISPR)
    process of critical analysis, review, and outside perspective will be a
    useful tool in helping the Coast Guard continuously improve coastal oil
    spill response for the American people. The ISPR is one of several
    reports that have been completed following the BP Deepwater Horizon Oil
    Spill. The Coast Guard is also conducting a comprehensive review of the
    President's National Commission on the BP Deepwater Horizon oil spill
    and offshore drilling's findings, the National Incident Commander's
    (NIC) Report along with the other Deepwater Horizon reports that
    provide a body of lessons learned, perspectives, and opinions. The
    Coast Guard is carefully reviewing these reports to identify areas of
    positive and effective preparedness improvements to develop effective
    and appropriate national implementation strategies. The Coast Guard has
    already taken several actions to address areas where planning and
    preparedness will be improved, including directing Captains of the Port
    to review oil spill response plans for offshore facilities, requiring
    area committees to include worst case discharge scenarios for offshore
    facilities in their respective area contingency plans, increasing State
    and local outreach and participation in area committee meetings and
    activities, and participating in a Coast Guard, Federal Emergency
    Management Agency, and Environmental Protection Agency workgroup to
    develop recommendations to harmonize the national contingency plan and
    national response framework governance constructs.
        The Coast Guard is carefully evaluating the body of perspectives
    and opinions provided in the various reports. As changes are
    implemented, the Coast Guard will use a formal lessons learned program
    that is designed to document, assess, and implement lessons learned
    from oil spill exercises and real events, including the BP Deepwater
    Horizon oil spill. Coast Guard leadership will leverage this program to
    monitor execution of any changes resulting from the ongoing reviews.
    Developing measures of effectiveness is an important part of evaluating
    and implementing proposed changes. However, effective response is only
    part of the equation. Due to the progress the Coast Guard has made as a
    result of prevention efforts, there has been a consistent reduction in
    the average number of chemical discharge incidents and oil spills in
    the maritime environment between fiscal year 2008 and fiscal year 2010.
        The President's fiscal year 2012 budget request includes funding to
    immediately increase the Coast Guard's marine environmental response
    and marine safety capabilities. Included in the fiscal year 2012
    request are 87 marine environmental response personnel, including 33
    personnel dedicated to an Incident Management Assist Team (IMAT),
    additional marine environmental responders at sectors, and additional
    strike team personnel. As part of these efforts, the Coast Guard will
    fully develop an investment plan to ensure these new resources are
    effectively installed. The nature of future investment will depend on
    how the Coast Guard decides to address the recommendations put forth in
    Deepwater Horizon after action reports and to implement the lessons
    learned from other past response efforts. The Coast Guard will work
    diligently within the organization and with government partners and
    industry to implement meaningful improvements for future oil spill
    planning, preparedness, organization, and response.
                            fleet mix analysis (fma)
        Question. The Coast Guard recently completed the first phase of a
    study called the Fleet Mix Analysis (FMA) that updated the mix of
    offshore assets necessary to meet mission performance requirements. The
    study took an unconstrained resource approach, resulting in an increase
    in total assets with a cost approaching $65 billion, nearly $40 billion
    higher than the current estimate. A second FMA is underway that
    considers the effects of fiscal constraints.
        According to recent testimony by the Government Accountability
    Office, the second analysis being conducted will not assess options
    lower than the current mix of assets the Coast Guard determined as
    necessary in 2004. With Federal agencies facing a much leaner fiscal
    future, don't you think it would be wise to fully understand the trade-
    offs above and below the current mix?
        I understand that the Department of Homeland Security is conducting
    its own study called the Cutter Fleet Mix Analysis. This appears to be
    a redundant effort to the Coast Guard's FMA. Why are multiple studies
    being conducted, when will the results be shared with the Congress, and
    how will the Coast Guard use the results of the studies?
        Answer. FMA phase 2 was developed to validate key assumptions in
    FMA 1 and to take a very specific look at the performance of the
    Program of Record (POR) under constrained investment levels. The
    analysis of trade-offs is the focus of the Department of Homeland
    Security Cutter Study.
        While the FMA analyzes the current program, the Department of
    Homeland Security Cutter Study includes an analysis of trade-offs under
    various assumptions for the mission requirements of the fleet. The
    Department of Homeland Security Cutter Study benefits from the FMA
    validation of modeling methodologies and will be used to inform near-
    term investment decisions. The results of these studies do not stand
    alone, but taken together they inform the Department's acquisition
    analysis and will be reflected in fiscal year 2013 and future years'
    budget requests.
                  high endurance cutter (whec) decommissioning
        Question. Your budget proposes to decommission a third High
    Endurance Cutter (WHEC) in fiscal year 2012, but the third National
    Security Cutter (NSC) won't be ready for operations until fiscal year
    2013. That equates to a net loss of 3,300 operational hours or 185
    steaming days.
        How will this impact the Coast Guard's ability to conduct critical
    missions, such as drug interdiction and migrant interdiction?
        Answer. The fleet of WHECs is achieving approximately 140 of their
    programmed 185 patrol days per year, which is unsustainable for the
    long-term as the costs to keep these vessels operational continually
    increase. The Coast Guard is currently expending more than three times
    what is budgeted to maintain them with diminishing returns on
    investment. The Coast Guard will replace these assets with NSCs as soon
    as possible.
        NSCs offer improved capability over the legacy WHECs. Currently,
    there are two NSCs in service--CGC Bertholf and CGC Waesche. In April
    2011, CGC Bertholf commenced its first patrol in the Bering Sea. CGC
    Waesche is currently completing ready for operations testing and
    evaluation, and will be ready to join the fleet very soon. CGC Stratton
    is nearly complete and we anticipate it will be ready for operations in
    spring 2013. The introduction of NSCs will improve operational
    availability of the major cutter fleet as aged and obsolete WHECs are
    decommissioned.
        The Coast Guard will leverage these and the remaining WHECs and
    Medium Endurance Cutters (WMECs) to meet all statutory mission
    requirements, including drug and migrant interdiction.
                                budget planning
        Question. The Coast Guard's Blueprint for Continuous Improvement
    includes an action item that the Coast Guard develop a list of
    priorities for major acquisitions.
        What steps has the Coast Guard taken to develop this priority list,
    and how will the Coast Guard use it?
        Will the Coast Guard's acquisition, resources, and capabilities
    directorates all be involved equally?
        What additional major investments are on the horizon that will need
    to be factored into Coast Guard acquisition budgets over the next 5
    years?
        Answer. The Coast Guard's Acquisition Blueprint requires completion
    of a project priority list to assist with management of acquisition
    resources and activities within the Acquisition Directorate. The
    assigned completion date for the acquisition project priority list is
    fourth quarter of fiscal year 2011.
        A separate but linked resource governance process, overseen by the
    Coast Guard's most senior leadership, is used to prioritize resources
    needs including requests for AC&I funding, across the entire service.
    This is an ongoing effort, and is part of the Coast Guard's planning,
    programming, budgeting, and execution cycle. The Coast Guard
    recapitalization priorities are included in the fiscal years 2012-2016
    Capital Investment Plan.
        Yes, the linked resource governance process, overseen by the Coast
    Guard's most senior leadership with equal representation across all
    Coast Guard directorates, is used to prioritize resources needs
    including requests for AC&I funding, across the entire service.
        Based on the best available information used to develop the Coast
    Guard's fiscal years 2012-2016 Capital Investment Plan, there are no
    new assets expected to join the major acquisition queue beyond those
    that are already specified in the Coast Guard's Program of Record.
                           fast response cutter (frc)
        Question. If fiscal year 2012 funding is provided for four FRCs,
    instead of six as requested, would that increase the costs of each FRC?
    What would be the increased cost per ship?
        Answer. Yes. Overall, the average cost increase per hull is
    approximately $5 million, including production costs, economic price
    adjustments associated with spare parts, antecedent liabilities, and
    other scalable program costs (e.g., project management, testing,
    certification, etc.).
                                vessel security
        Question. Please describe the Coast Guard activities (assets used,
    location, and associated costs) in support of the mission to protect
    tankers and other vessels in foreign waters.
        Answer. The Coast Guard conducts domestic operations to protect
    tankers or other vessels in or near U.S. ports. However, it does not
    have the authority to conduct such operations in foreign waters. The
    primary responsibility for the protection of tankers and other vessels
    in foreign waters is the port state receiving these vessels.
                                     ______

                  Questions Submitted by Senator Patty Murray
        Question. Admiral Papp, the fiscal year 2012 budget justification
    documents indicate that the United States will remove one of our heavy
    polar icebreakers from service and return to contracting with other
    nations for icebreaking operations. As the melting of the polar ice
    caps in the summer months reveals new natural resources, navigational
    routes and introduces new national security considerations, the United
    States will be subcontracting critical icebreaking duties with nations
    who may ultimately be in direct competition with us for these
    resources. Furthermore, we continue to operate without a comprehensive
    assessment or a workable plan to address this lack of a strategic
    asset.
        The fiscal year 2012 budget request indicates that ``[t]o help
    define the capability that is needed to meet long-term Federal needs in
    the changing Arctic environment, Coast Guard will participate in the
    Department of Homeland Security-led interagency working group, funded
    in fiscal year 2012 to develop final requirements for acquisition of
    the 21st century icebreaking capability.'' As far back as 2008, the
    Coast Guard has indicated that it is assessing the United States'
    national interests in the arctic regions and the corresponding
    capabilities needed in the region. Most notable among these efforts is
    the High Latitude Study, which the Coast Guard has not yet released.
        What is the status of the High Latitude Study, as well as the polar
    business case analysis, and is there a timeframe when these reports
    will be completed and available?
        What are the key differences between the composition of and the
    anticipated outcomes of this working group and the various studies,
    including the High Latitude Study, that the Coast Guard has already
    been tasked to produce?
        Answer. The Coast Guard's contractor has completed the High
    Latitude Study and it will be transmitted to the Congress to meet the
    reporting requirement set forth in Public Law 111-281. In accordance
    with Public Law 111-281, Coast Guard is conducting a polar business
    case analysis.
        The High Latitude Study is a Coast Guard-sponsored assessment of
    Arctic and Antarctic mission requirements, including the polar
    icebreaking needs.
        The Department of Homeland Security-led acquisition analysis will
    consider the icebreaking requirements across the Government and analyze
    agency-specific solutions, such as those identified by the High
    Latitude Study, to determine whether a coordinated acquisition of new
    icebreaking capability would provide greater benefit to the Nation. The
    analysis will consider a broader set of alternatives, including the
    mode of icebreaker operation and functional ownership across the
    Federal Government. The results of this effort will produce the
    acquisition strategy and funding plan for procuring 21st century
    icebreaking capability.
        Question. The Coast Guard anticipates relying on foreign nations to
    perform ice-breaking duties, some of which may be in competition with
    the United States for energy resources, fishing rights, navigational
    lanes, and national security. This is not the first time that the
    United States has been forced to rely on foreign nations.
        In the past, what was the annual cost to the United States to
    contract polar icebreaking services with a foreign entity?
        What is the estimated annual cost for this activity under the
    President's budget proposal?
        In previous testimony, Secretary Napolitano referenced two
    countries with which we could contract our icebreaking operations.
    Would you please advise the subcommittee of the two countries by name
    and give us your assessment of any conflicting interests they may have
    with the United States in the polar regions, specifically referencing
    energy resources, navigation, fishing rights, and national security?
        Answer. The Coast Guard has not historically contracted polar
    icebreaking services with a foreign entity. The National Science
    Foundation (NSF) has done so the past 4 years to provide the McMurdo
    break-out in Antarctica in support of scientific activities and for
    other scientific studies, and for scientific studies in the Arctic
    Ocean.
        There are no funds included in the Coast Guard's fiscal year 2012
    budget proposal to lease foreign icebreakers. Specific questions on
    icebreaker leasing should be directed to NSF.
        The two countries referenced by Secretary Napolitano are Russia and
    Sweden. No U.S. agency has contracted polar icebreaking services to
    perform duties, to the extent they exist, related to energy resources,
    fishing rights, navigational lanes, and national security. The Coast
    Guard is not in a position to comment on specific competing interests
    that foreign countries may have with the United States in the Arctic.
    This question would be better addressed by the State Department.
                                     ______

                  Questions Submitted by Senator Thad Cochran
        Question. Please describe the ways in which the Coast Guard is
    involved in response to the ongoing Mississippi River flooding.
        Answer. The Coast Guard continues to conduct statutory missions on
    the Western Rivers and respond to ongoing flooding events. To date, the
    Coast Guard has activated 47 reservists to support 2011 flood response
    operations. During the most recent Mississippi River flooding, the
    Coast Guard has deployed assets (e.g., personnel, boats, aircraft) in
    support of Search and Rescue (SAR), Marine Environmental Response
    (MER), and Aids to Navigation (ATON) missions. The Coast Guard is
    coordinating with Federal, State, local, and tribal organizations to
    render assistance to persons in distress, as well as to protect
    property.
        The Coast Guard Marine Transportation Recovery Unit (MTSRU)
    monitored impacts and kept the maritime industry appraised and briefed
    on developments through the dissemination of a daily summary report.
    The Coast Guard was very proactive in coordinating all potential
    actions with industry through daily River Industry Executive Task
    Force, New Orleans Port Coordination Team, and Lower Mississippi River
    Commission conference calls.
        Additionally, Coast Guard Captains of the Port (COTP) are
    continually reviewing and implementing, when necessary, safety zones.
    The COTP are also issuing marine safety information bulletins to ensure
    the safe navigation of marine traffic. The Coast Guard continues to
    monitor the water levels and is implementing river closures and re-
    openings, as appropriate, and working closely with the U.S. Army Corps
    of Engineers as they manage their responsibilities for flood control.
        Question. Please describe the ways in which Coast Guard assets were
    used to respond to the Deepwater Horizon incident.
        Answer. The Coast Guard was involved in every phase of the response
    to the Deepwater Horizon incident, including the initial Search and
    Rescue (SAR) response. Sixty Coast Guard vessels were used to respond
    to the Deepwater Horizon incident. These vessels included 210-foot and
    270-foot WMECs, sea-going and coastal buoy tenders, ice breaking tugs,
    and patrol boats. After the explosion, Coast Guard vessels were engaged
    in SAR operations. When operations shifted from rescue to oil spill
    response, Coast Guard vessels were used in the recovery of oil, using
    onboard assets such as the Spilled Oil Recovery System (SORS) and
    Vessel of Opportunity Skimming System (VOSS).
        Twenty-two Coast Guard aircraft, including long- and medium-range
    surveillance aircraft and short- and medium-range helicopters, were
    used to respond to the Deepwater Horizon incident. Initially, as with
    the Coast Guard vessels, Coast Guard aircraft were used in SAR
    operations, evacuating injured crew members and searching for missing
    crew members. During the aircraft SAR operations, the first evidence of
    oil sheen was observed. Coast Guard aircraft were then used for
    surveillance, oil spotting, and overflights.
        More than 7,000 Coast Guard personnel, including active duty,
    reserve, auxiliary, and civilians, participated in all phases of the
    response. Today, almost 200 Coast Guard personnel continue to support
    oil spill recovery operations in the gulf. Coast Guard personnel were
    involved in SAR operations, Incident Command System (ICS) coordination
    and staffing, oversight of offshore and onshore cleanup activities,
    public affairs, coordination with Federal, State, and local officials,
    and many other aspects of the response. Specialized personnel and
    equipment were also deployed from the Coast Guard's National Strike
    Force and other deployable support forces.
        Question. Are there any particular stories of heroic activities by
    your men and women during the Deepwater Horizon response that you would
    like to share with the subcommittee?
        Answer. Yes. In particular, the Coast Guard would like to share the
    story of the first men and women on the scene of the Deepwater Horizon
    incident--helicopter pilot Lieutenant Commander (LCDR) Tom Hickey,
    Coast Guard rescue swimmer Aviation Survival Technician Third Class
    (AST3) Dustin Bernatovich and the air crews of Coast Guard Number
    (CGNR) helicopters 6605, 6508, and 6576. The following is a summary of
    their actions on the evening of April 20, 2010 following the
    catastrophic explosion on the Deepwater Horizon mobile offshore
    drilling unit, 110 miles southeast of New Orleans, Louisiana.
        After a failure of the rig's drilling systems 5,000 feet below the
    sea surface, a rush of oil and flammable gas surfaced and ignited the
    platform, ultimately crippling the structure, killing 11 and forcing
    workers onboard to abandon the rig. The aircrews aboard the CGNR 6605,
    6508, and 6576, led by LCDR Hickey, immediately assumed on-scene
    coordinator duties for numerous aircraft and vessels converging on the
    disaster site. They quickly determined that the offshore supply vessel
    Damon B. Bankston had embarked 115 rig workers in need of rescue.
    Rescue swimmer AST3 Bernatovich was deployed to the vessel, and LCDR
    Hickey then tasked seven additional arriving aircraft to conduct search
    patterns around the rig, and sequenced helicopters to the Damon B.
    Bankston to evacuate the most severely wounded victims. Despite 600-
    foot flames, explosions on the rig, and intense heat felt in the cabin,
    the crews of the CGNR 6605, 6508, and 6576 made numerous low passes
    within 150 feet of the rig to search for any possible survivors as the
    rescue swimmer conducted triage of the injured mariners. While
    communicating constantly with the other aircraft, LCDR Hickey provided
    critical safety pilot duties as the Coast Guard helicopters hoisted
    five survivors and transferred them to awaiting paramedics back at Air
    Station New Orleans. The leadership and superior actions of LCDR
    Hickey, AST3 Banatovich, and the aircrews of the CGNR 6605, 6508, and
    6576 ensured the success of a major rescue operation, which saved 14
    lives and assisted 101 others.
        Question. If the Congress provided you with the flexibility of
    multi-year procurement authority and then adequate follow-on
    appropriations, could it provide for savings to the taxpayer in the
    acquisition of NCSs Nos. 6-8?
        Answer. We cannot execute the NSC project under a multi-year
    procurement construct given the current NSC contract structure.
        Question. What are the specific advantages of purchasing long-lead
    time materials (LLTM) in advance of the construction of a Coast Guard
    vessel?
        Answer. Purchasing these materials in advance allows for optimal
    sequencing of production activities by ensuring that LLTM will be on
    hand when needed.
        Question. The Congress provided funding to complete NSC No. 5 in
    fiscal year 2011, rather than in fiscal year 2012 as assumed in the
    budget request. Understanding this change, if the Congress were to
    instead provide funding for LLTM for NSC No. 6 in fiscal year 2012,
    would the Coast Guard be able to purchase these materials in fiscal
    year 2012 and take advantage of the resulting efficiencies?
        Answer. If NSC No. 6 were fully funded in fiscal year 2012, the
    Coast Guard could award NSC No. 6 LLTM in fiscal year 2012.
        Question. Could you characterize the current operations and
    maintenance costs associated with the WHECs you plan to retire as you
    acquire NSCs?
        Answer. The programmed cost to operate and maintain each WHEC is
    approximately $20 million. Of the $20 million, $1.2 million is
    programmed for depot level maintenance. In fiscal year 2010, the WHEC
    fleet expended, on average, $3.96 million per hull on depot level
    maintenance, or $2.76 million above programmed levels.
        Question. Do the Bertholf's recent operations around Alaska provide
    you with additional confidence in the NSC's ability to operate in
    arctic areas of responsibility?
        Answer. Yes. USCGC Bertholf's current Alaskan patrol has subjected
    the cutter to 20-foot seas, 60 knot winds and temperatures below
    freezing, all testing the NSC's operational capabilities in Arctic sea
    conditions. USCGC Bertholf's economical propulsion plant and enhanced
    endurance allowed for 24 days at sea without replenishment and provided
    for sustained cutter presence offshore. The large flight deck and
    stable sea keeping capabilities allowed for a broad weather envelope to
    launch and recover aircraft, and also supported more than 20 safe and
    effective law enforcement boardings in seas up to 8 feet. The Coast
    Guard is very pleased with the operational performance of the NSC in
    the Bering Sea thus far.
        Question. I understand that the Coast Guard has been analyzing
    various unmanned aerial systems to determine which existing systems
    might provide a solution for both your land-based and ship-based aerial
    missions. What added capabilities and cost avoidance could these
    unmanned systems provide that current manned aircraft platforms are not
    providing?
        Answer. Aircraft persistence, sensor payloads, and C4ISR suites
    unique to Unmanned Aircraft Systems (UASs) are expected to
    significantly increase maritime surveillance and detection capability
    for strategic and tactical commanders. Additionally, unmanned
    capabilities may permit the Coast Guard to employ airborne sensors when
    and where they are needed most, and for extended periods, regardless of
    risks that would prevent the employment of manned aircraft (e.g. areas
    where chemical, biological, radioactive, and other hazards are
    present). Finally, UASs allow more versatile manned aircraft to be
    employed elsewhere to maximize mission outcomes. By one estimate, the
    UAS has a lower life-cycle cost when compared to manned aircraft
    operations (``Cost Comparison Potential of Coast Guard Unmanned
    Aircraft Systems and Coast Guard Manned Aircraft Systems'' study,
    prepared by Wyle Laboratories, Inc., in support of the U.S. Coast Guard
    Office of Aviation Acquisition (CG-931), in August 2010). This study
    estimates a cost per flight hour savings of 15 percent for ship-based
    UAS as compared to the H-65 and 50 percent for land-based UAS, as
    compared to C-130H.
        Question. Do you believe that it is important to make these assets
    available to the Coast Guard as soon as possible?
        Answer. Yes. The UAS acquisition is a significant component of the
    Coast Guard's solution to eliminate the current MPA gap. However, while
    UAS is a priority for the Coast Guard, the highest priorities of the
    Coast Guard Air Domain are to extend current aircraft service life,
    enhance the capability of current airframes, and recapitalize aged and
    obsolete air assets.
        Question. What specific funds are requested in the fiscal year 2012
    budget that would move the Coast Guard closer to the acquisition of its
    own unmanned aerial assets?
        Answer. The Coast Guard continues to advance its plan for UAS
    acquisition through its partnerships with other Government agencies
    that are developing and implementing the UAS concept of operations. In
    2012, Coast Guard will apply multi-year funds to continue its UAS
    acquisition research projects.
        Question. What is the Coast Guard's assessment of SouthCom's
    Project Cazador, which was carried out in cooperation with Panama?
        Answer. The Coast Guard did not have any direct involvement with
    the planning and execution phases of Project Cazador; this was a
    SouthCom-led initiative that occurred in summer 2010 over a 120-day
    period. The project was conducted in cooperation with Panama and
    provided additional Detection and Monitoring (D&M) capacity along the
    littorals of Panama. The program complemented Joint Interagency Task
    Force South's D&M efforts that occurred further offshore, which the
    Coast Guard plays a substantial role in. Initiatives such as Project
    Cazador are considered of high value to the Coast Guard given the
    synergy with the aforementioned Coast Guard operations. The UAS, Heron
    I, was demonstrated during Project Cazador. Coast Guard personnel
    deployed to observe Heron I gained valuable UAS experience. It was
    observed that Heron I's slow cruise speed is both a strength and
    weakness. It was observed that Heron I is very capable of long-
    endurance missions in limited areas or over a specific target. When
    attempting to classify and identify targets at the outer edge of its
    radar range, it was observed that airspeed was a limiting factor. As
    such, Heron I would likely have limited operational effectiveness when
    patrolling the extensive smuggling routes south of Panama.
        Question. How do the illicit cargo interdicted during Project
    Cazador compare to amounts seized in recent Coast Guard operations?
        Answer. During the same 4-month period (June 2010 through September
    2010), the Coast Guard sized 28 metric tons (MT) of cocaine in the
    transit zone, while Project Cazador seized a total of 10 MT of cocaine.
        Question. If Coast Guard assets had not been tied up responding so
    bravely to the Deepwater Horizon incident, do you believe Project
    Cazador would have yielded additional interdiction of illicit cargo?
        Answer. Project Cazador could have possibly yielded additional
    interdictions had the Coast Guard not diverted assets to support
    Deepwater Horizon operations. During much of Deepwater Horizon,
    Airborne Use of Force (AUF) helicopters were diverted from counter drug
    deployments to support the response efforts. In one specific case, a
    Project Cazador detection and monitoring asset located and tracked a
    ``go-fast'' in the Western Caribbean near Costa Rica. A Coast Guard
    cutter conducting a Joint Interagency Task Force South patrol was
    diverted to intercept the ``go-fast'', which was suspected of
    trafficking cocaine. The Coast Guard cutter did not have an AUF capable
    helicopter deployed onboard, and the ``go-fast'' evaded the cutter and
    escaped into Costa Rican territorial waters.
                                     ______

                 Questions Submitted by Senator Lisa Murkowski
                  u.s. coast guard maritime coverage in alaska
        Question. In Alaska, we are very concerned with the President's
    decision to decommission another WHEC in the fiscal year 2012 budget.
    Given the vast maritime environment that the Coast Guard is responsible
    for protecting in Alaska, I am concerned that the decommissioning of
    these cutters will have significantly negative impacts on the safety
    and security of the Alaskan commercial fishing industry. The Coast
    Guard is tasked with conducting operations in Alaska that encompasses
    more than 3.8 million square miles, which is larger than the land mass
    of the continental United States, and more than 33,000 miles of
    coastline. With the Alaskan fishing industry producing more than 50
    percent of the national fishing totals each year, the cumulative loss
    of another cutter from the Coast Guard's fleet could place a
    significant portion of the Alaskan fishing fleet that routinely operate
    in the Bering Sea and Gulf of Alaska in danger as well as preventing
    the Coast Guard from effectively ensuring that the safety and
    commercial fisheries regulations are adequately enforced.
        Previously you testified that the Coast Guard was committed to a
    plan to recapitalize the current WHEC fleet with new NSCs, an effort
    that was designed to maintain current cutter coverage levels while
    quickly bringing the new class of cutters online. However, the fiscal
    year 2012 proposed budget does not have any funding for LLTM for the
    sixth NSC. During Secretary Napolitano's fiscal year 2012 budget
    hearing in March, she emphasized her commitment to building out eight
    NSCs. NSC No. 5 is now fully funded. However, I note that there is no
    funding for NSC No. 6 in the fiscal year 2012 request. The Coast Guard
    previously funded LLTM for the NSC in advance of production. Would the
    total cost of NSC No. 6 be reduced if LLTM are funded in fiscal year
    2012 versus fiscal year 2013? If so, by how much? Also, what plan do
    you have in place to assure that there is adequate cutter coverage in
    Alaska?
        As you are aware, there are only seven HH-60 helicopters in
    Alaska--four in Kodiak and three in Sitka. These assets, given their
    durability in harsh weather environments, are essential to the Coast
    Guard's ability to rescue those in need in Alaska. However, each year
    helicopters are repositioned in Alaska to cover the fishing fleets in
    the Bering Sea and Gulf of Alaska. That repositioning moves assets from
    other Coast Guard facilities, leaving those areas with resource gaps.
    What is the Coast Guard's plan to close this aviation resource gap?
    Does the Coast Guard have the aviation assets it requires to complete
    is missions in Alaska and the rest of the United States?
        Answer. If NSC No. 6 were fully funded in fiscal year 2012, the
    Coast Guard could award NSC No. 6 LLTM in fiscal year 2012. The
    possibility for total cost savings would depend on several factors.
        The Coast Guard has a proud history of serving the maritime
    interests in Alaska and will continue to do so, including maintaining a
    major flight deck equipped cutter presence in the Bering Sea. The NSC
    will replace the aging and obsolete WHECs and provide greater
    operational availability to the fleet of major cutters. NSCs are
    already having an operational impact. In fact, the first NSC, USCGC
    Bertholf (WMSL 750), commenced its first patrol in Alaska in April
    2011. Additionally, USCGC Waesche (WMSL 751), also home-ported on the
    west coast, will be ready for operations by November 2011 and available
    for worldwide assignment. Moreover, USCGC Stratton (WMSL 752) will be
    delivered in September 2011 and ready for operations in spring 2013.
    Patrolling Alaskan waters remains a high priority and the Coast Guard
    is committed to providing coverage to meet the most-pressing
    operational needs, including coverage for missions in the Bering Sea.
        The Coast Guard has partnered with the U.S. Navy Sundown program to
    receive, at no cost, retired H-60F model airframes, which can be
    converted to Coast Guard MH-60T helicopters. Funding was provided in
    the Disaster Relief and Summer Jobs Act of 2010 (Public Law 111-222) to
    convert one Navy H-60F airframe to a Coast Guard MH-60T helicopter as a
    replacement for one of two HH-60J Coast Guard helicopters (CGNR 6028
    and 6017) lost in operational crashes. This conversion is expected to
    be completed in November 2011. Funding has been requested in the Coast
    Guard's fiscal year 2012 budget to convert a second H-60F airframe,
    completing the restoration of HH-60 capacity. The Coast Guard continues
    to balance rotary wing needs based on operational risks, which is why
    the Coast Guard continues to rotate HH-60s to Alaska during critical
    fishing and crabbing seasons.
        Of the four rotary-wing aircraft lost due to mishaps in the past 3
    years, to date one has been funded for replacement, and the second is
    requested in the fiscal year 2012 President's budget. With these
    planned replacements, there remains a two aircraft gap in the aviation
    fleet. However, the Coast Guard moves assets to ensure coverage for
    highest priority missions.

                             CONCLUSION OF HEARINGS

        Senator Landrieu. The subcommittee stands in recess,
    subject to the call of the Chair.
        [Whereupon, at 11:17 a.m., Tuesday, May 10, the hearings
    were concluded, and the subcommittee was recessed, to reconvene
    subject to the call of the Chair.]