[Senate Hearing 116-]
[From the U.S. Government Publishing Office]
DEPARTMENT OF HOMELAND SECURITY APPROPRIATIONS FOR FISCAL YEAR 2020
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THURSDAY, MARCH 28, 2019
U.S. Senate,
Subcommittee of the Committee on Appropriations,
Washington, DC.
The subcommittee met at 10:01 a.m. in room SD-192, Dirksen
Senate Office Building, Hon. Shelley Moore Capito, (presiding).
Present: Senators Capito, Tester, and Shaheen.
DEPARTMENT OF HOMELAND SECURITY
Coast Guard
STATEMENT OF THE HONORABLE ADMIRAL KARL SCHULTZ,
COMMANDANT
OPENING STATEMENT OF SENATOR SHELLEY MOORE CAPITO
Senator Capito. I'd like to welcome everyone, and I call
this hearing of the Subcommittee of Homeland Security to order.
This is the subcommittee's first hearing of the fiscal year
2020 budget cycle, and we are reviewing the budget request of
the Coast Guard.
I want to thank the Commandant of the Coast Guard, Admiral
Karl Schultz, for agreeing to appear before our subcommittee
today. He is an outstanding leader and a top military officer
of one of our five armed services of the United States. I have
had the opportunity to join Admiral Shultz to review Coast
Guard activities around the country, and just a week-and-a-half
ago at critical Coast Guard facilities in my state of West
Virginia. I am sure his insights will help our subcommittee
better understand how the Coast Guard's budget request would
support its many missions, from ensuring the safe navigation of
waterways, to pollution control, to defending the United
States' maritime borders. This is the first time Admiral
Schultz is appearing before our subcommittee, and we look
forward to hearing from him.
I am very pleased to be joined today, as always, by our
Ranking Member, Senator Tester. We are excited to hold our
first fiscal year 2020 hearing after an interesting 2019 cycle,
and I think I can speak for both of us when I say we look
forward to continuing our work together.
Last year, we worked hard to make sure necessary funds were
appropriated to the Coast Guard to construct the first new
heavy icebreaker built by the United States in more than 40
years. We also continued an historic recapitalization of the
Coast Guard overall, and we look forward to working with
Admiral Schultz to recommend funding to support and make use of
those investments.
Senator Tester and I are both from landlocked states, but
we recognize how important the Coast Guard is to our national
security.
The Coast Guard's maritime law enforcement activities,
including significant interdiction of illegal traffic in the
source and transit zones of the Caribbean and Eastern Pacific,
may take place far away from our shores, but those efforts
prevent dangerous drugs from making their way into West
Virginia and Montana communities. While much of the nation's
attention has been appropriately focused on the southwest land
border, we'll hear today about the importance of the Coast
Guard's role in protecting our maritime borders and keeping us
safe.
Last year alone, the Coast Guard seized over 200 metric
tons of cocaine on the high seas, and they've already seized 56
tons this year.
In recent months, the Coast Guard has been on the minds of
Americans for two other reasons, one good and one not so good.
During the last hurricane season, which was so devastating
to many American communities, I was very proud that the world
was able to see the work of the Coast Guard. I think we saw it
on every major news outlet--saving the lives of those impacted
by the devastation. We know that the Coast Guard saves lives
every day, but last year the men and women of the Coast Guard
saved nearly 4,000 lives, including 992 during hurricane
response efforts. Our Maritime Safety Unit near Huntington,
West Virginia, which we just visited, is one of those brave
units that stands ready to load up their trucks and haul their
boats wherever Americans are in need and where disaster
strikes.
Unfortunately, the second reason the Coast Guard has been
on people's minds recently was the unnecessary 35-day
government shutdown. Through no fault of their own, Coast Guard
men and women went without pay during this time while
continuing to serve and perform their critical missions, in
many cases far away from their families. These folks are often
serving alongside their partners in the other branches of the
military who were getting paid.
I am hoping that this year we can work together in a
bipartisan fashion and through regular order to enact our
Homeland Security Appropriations bill on time. Our
appropriations bill is the best ``Pay Our Coast Guard Act'' out
there. But regardless of what happens, I'm committed to making
sure the men and women of the Coast Guard are treated fairly,
no matter what twists and turns the appropriations process may
take.
The fiscal year 2020 budget request we are reviewing today
is a good starting point for our subcommittee to begin
determining how we can best support the men and women of the
Coast Guard, including more than 42,000 active duty, 6,000
reserve, and 8,500 civilian staff.
Admiral Shultz, I look forward to working with you and your
team to determine whether further adjustments are required to
ensure the Coast Guard has what it needs to be successful in
its many missions. We appreciate your testimony and your
willingness to be the first one out of the gate from the
Department to answer questions from members of this
subcommittee.
I will now turn to our distinguished Ranking Member,
Senator Tester, before asking our witness to proceed with his
testimony. Then we will allow each Senator, in order of their
arrival, seven minutes for any statements or questions that
they may have. Thank you.
STATEMENT OF SENATOR JON TESTER
Senator Tester. Chairman Capito, thank you very much for
your kind words, and I want to echo them back at you and say
that I look forward to continuing to work with you on this
committee to do a very, very important job, to make sure that
not only the Coast Guard but all of the agencies have the
funding to be able to do their job, and hopefully in this
Congress we aren't going to end up in a conference committee.
That would be a lot better.
At any rate, I also want to welcome you, Commandant. I want
to thank you for your service, and I thank you for your
appearance before this subcommittee.
Our job here today and throughout this appropriations
process is to ensure the men and women of the Coast Guard have
the tools that they need to accomplish their many missions, and
that taxpayer dollars are allocated wisely. These are goals
that I think every one of us share.
Last weekend I had the opportunity to travel with the
Commandant and meet the fine personnel stationed at the Coast
Guard Pacific Area Command to learn more about the national
security activities in the Pacific region. It was a great
reminder of the expansive mission the Coast Guard has, and the
number of high-quality men and women that make up that
workforce.
In fiscal year 2018 alone, the Coast Guard responded to
15,634 search and rescue missions. As the Chairwoman has
pointed out, they saved nearly 4,000 lives, interdicted over
3,600 undocumented migrants, inspected 2,300 ship containers,
and seized 209.6 metric tons of cocaine. To put that in a
fashion that I can understand, that was nearly 100 semi loads
of cocaine. The Coast Guard seizes more cocaine than all other
Federal agencies combined.
Unfortunately, the appetite for hard narcotics is not
decreasing. It continues to increase around the globe. To
counter the movement of narcotics from source countries, the
Coast Guard has intelligence on about 80 percent of the drug
traffic in the eastern Pacific transit zone, but only has the
resources to act on about 20 percent. I think it's our desire
to figure out a way to close that gap.
There's also ongoing need to recapitalize the Coast Guard's
fleet of cutters and aircraft and shore facilities. In the
fiscal year 2019 DHS Appropriations Act, Chairman Capito and I
worked with other members of the subcommittee to strengthen the
Coast Guard's capital investment program. We funded the first
polar security cutter, six fast response cutters, the second
offshore patrol cutter, the 130-J cargo plane, and $255 million
for upgrades to shore facilities.
Now, in contrast to that, the President's fiscal year 2020
budget request would cut the Coast Guard's capital budget by
over $1 billion despite a laundry list of unfunded
requirements. I want to discuss the impacts of this budget on
the Coast Guard's recapitalization plans. I also want to
discuss the need to strengthen readiness.
Last year the Commandant gave his annual State of the Coast
Guard Address where he said that the service is approaching a
tipping point when it comes to service readiness. This budget
starts addressing the issue, and we want to learn more about
the Coast Guard's requirements in fiscal year 2020 and beyond.
I look forward to examining your budget in more detail
today so we can make sound decisions about the resources and
assets that the Coast Guard men and women need today and in the
future.
I just want to say one thing that's not in my prepared
remarks. After being with the Commandant for three days, I got
to see this guy's leadership, I got to see his skills in
dealing with the men and women in the Coast Guard, I got to
witness his vision, and I will tell you, I think the Coast
Guard is in marvelous hands with you at the helm.
Thank you very much, Chairwoman.
Senator Capito. Thank you.
With that, we'll move to the Commandant for his opening
statement. If you'll synopse it to about 5 minutes, and then
we'll continue with questions. Thank you.
SUMMARY STATEMENT OF HON. ADMIRAL KARL SCHULTZ
Admiral Schultz. Well, good morning, Madam Chairwoman
Capito and Ranking Member Tester. I appreciate the opportunity
to testify today and ask that my written statement be entered
into the record.
First, on behalf of the men and women of the United States
Coast Guard, please accept my profound thanks for your
unwavering support, including the recently enacted fiscal year
2019 appropriation and the 2018 hurricane supplemental funding.
These were meaningful steps towards delivering the ready,
relevant, and responsive Coast Guard the American public
expects and deserves.
Yet our work is not done. If you take just one thing from
my testimony this morning, please remember this: Readiness. We
must be ready, ready to push our maritime border 1,500 miles
out from our shores; ready to preserve the $5.4 trillion in
economic activity that flows through our maritime marine
transportation system on an annual basis; ready to support the
combatant commanders' needs across the globe; ready for the
next hurricane season, which is just around the corner; and
ready to put our cyber authorities to use as we adapt to 21st
century threats.
Without question, building and sustaining readiness is my
top priority, and we are at a critical juncture, a tipping
point, as you noted.
Now, for almost a decade of near flat-line operations and
support funding, Coast Guard readiness is eroding, just like
the other armed services. Yet, unlike the Department of
Defense, the Coast Guard funding is categorized as non-defense
discretionary, which means we were excluded from the focused
effort to rebuild our military and continue to find ourselves
on the outside looking in when it comes to material operations
and support plus-ups.
In 2017, the Department of Defense received a 12 percent
boost in operations and support, while the Coast Guard received
just a 4 percent increase, yet the Coast Guard's military
contributions are immutable. Every year, we proudly expend over
$1 billion on defense-related activities in support of
combatant commanders, but the $340 million of defense readiness
monies that we received for this work has not been changed or
adjusted in 18 years.
As an example of our growing defense portfolio, the
National Security Cutter Bertholf is supporting the Indo-
Pacific commander today in the South China Sea to enforce U.N.
sanctions against North Korea and protect and advance U.S.
interests throughout the western Pacific Ocean. Though we
strive for relentless resilience to execute homeland security
and defense operations, our purchasing power has indeed
declined. If we continue to neglect our growing backlog of
deferred repairs on our capital assets, including shore
infrastructure, we will lose ground in the fight to defend our
homeland from evolving threats challenging our nation.
Despite these challenges, I am extremely proud of the Coast
Guard's contributions. In 2018, as part of DHS' layered
security strategy, and its support of Joint Interagency Task
Force South, our surface and aviation assets interdicted, as
you noted, 209 metric tons--that's 460,000 pounds of cocaine,
more than all other Federal agencies combined, and apprehended
more than 600 suspected smugglers. Disrupting those
transnational criminal organizations at sea, where they are
most vulnerable, helps reduce what we call the ``push factors''
that are responsible for driving human migration to our
southwest land border.
As I speak, National Security Cutter Waesche is patrolling
the eastern Pacific Ocean. Our national security cutters have
exceeded performance expectations by every metric, and now we
must focus on the transition from outdated and costly medium
endurance cutters to our planned fleet of 25 highly capable
offshore patrol cutters, which will be the backbone of the
Coast Guard's offshore presence for decades to come.
In the polar regions, your Coast Guard is the sole surface
presence to protect our rights and project our sovereignty. As
access to the region expands and interest from China and Russia
grows, it's in our national interest to be there to enhance
maritime main awareness and build governance in this
economically and geographically strategic, competitive area. In
the high latitudes, presence equals influence.
Two weeks ago, our sole operational heavy icebreaker, the
43-year-old Polar Star, returned from a 105-day patrol to
Antarctica, where it conducted the annual McMurdo Station
breakout, enabling resupply of this vital national interest.
These missions take a toll, and Polar Star's crew worked
miracles to keep their cutter mission viable: battling a
shipboard fire, numerous electrical outages, and combatting
engine room flooding. Just off the ice edge, we embarked Coast
Guard and Navy divers into the frigid Antarctic Ocean to effect
repairs to a shaft seal. I am proud of the crew's efforts, but
I remain concerned that we are only one major casualty away
from being a nation without any heavy icebreaking capability.
New icebreakers cannot come fast enough.
Thank you for the $675 million provided in the fiscal year
2019 appropriation. Coupled with the $300 million in prior year
appropriations, I am pleased to report we are on track to award
a detailed design and construction contract this spring to keep
this program on schedule.
Finally, I appreciate the Administration's support for a
number of initiatives that invest in our greatest strength, and
that is our people. While modest, they represent tangible
investments towards a mission-ready total workforce. For
instance, critical investments in our marine inspections
workforce, to our cyber security operations and build upon
capabilities that facilitate the $5.4 trillion of annual
economic activity on our nation's waterways, while protecting
maritime critical infrastructure from attacks, accidents, and
disasters.
A dollar invested in the Coast Guard is a dollar well
spent, and with your continued support, the Coast Guard will
live up to our motto, Semper Paratus, Always Ready.
Thank you, Madam Chairwoman, Ranking Member Tester, and
committee, and I look forward to taking your questions.
[The statement follows:]
Prepared Statement of Hon. Admiral Karl Schultz
introduction
Madam Chairwoman and distinguished members of the Committee, I
appreciate the opportunity to testify today. Thank you for your
enduring support of the United States Coast Guard, particularly the
significant investments provided in the Fiscal Year 2019 Consolidated
Appropriations Act.
Your Coast Guard is on the front lines of our Nation's effort to
protect the American people, our homeland, and our way of life. As
threats and challenges to our national security and global influence
grow more complex, the need for a Ready, Relevant, and Responsive Coast
Guard has never been greater.
Appropriately positioned within the U.S. Department of Homeland
Security (DHS), the Coast Guard is a federal law enforcement agency, a
regulatory body, a first responder, a member of the U.S. Intelligence
Community, and a military service and a branch of the Armed Forces of
the United States at all times\1\--The Coast Guard offers specialized
and unique capabilities across the full spectrum of maritime
activities, from security cooperation up to armed conflict.
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\1\ 4 U.S.C. ' 1; 10 U.S.C. ' 101
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The Coast Guard has matured and evolved over the course of our 228-
year history, adapting our people, assets, and capabilities in response
to emerging national demands and international challenges. We are
locally based, nationally responsive, and globally impactful.
To outline my vision for the Service, I recently released the U.S.
Coast Guard Strategic Plan 2018-2022. To that end, my highest priority
is to ``Maximize Readiness Today and Tomorrow,'' and readiness starts
with our people, who are our greatest strength. In the competitive
marketplace the Armed Forces find ourselves, now is a critical time to
invest in our mission-ready total workforce.
My second top priority is continuing to ``Address the Nation's
Complex Maritime Challenges'' through international and domestic
leadership in the maritime domain. A unique instrument of national
power, the Coast Guard offers the ability to secure the maritime
border, combat Transnational Criminal Organizations (TCOs), and
facilitate $4.6 trillion of annual economic activity on our Nation's
waterways.
Finally, in a competitive budget environment, your Coast Guard is
acutely focused on my third priority, ``Delivering Mission Excellence
Anytime, Anywhere,'' by continuously challenging ourselves to innovate
and drive increased efficiency for better organizational performance in
response to both manmade crises and natural disasters.
strategic effects
The Coast Guard plays a critical role in a comprehensive approach
to securing our borders--from disrupting drug trafficking and illegal
immigration in the southern transit zones, to projecting sovereignty
across the globe. Our Nation's maritime borders are vast, and include
one of the largest systems of ports, waterways, and critical maritime
infrastructure in the world, including 95,000 miles of coastline.
As part of the DHS layered security strategy, the Coast Guard
pushes out our Nation's border, and serves as the ``offense'' in a
comprehensive approach to layered border security strategy. Through the
interdiction of illicit drugs and the detention of suspected drug
smugglers, the Coast Guard disrupts TCO networks at sea, over a
thousand miles from our shore, where they are most vulnerable. Coast
Guard maritime interdictions weaken the TCOs who destabilize our
immediate neighbor Mexico, the Central American land corridor, and
South American countries. Our interdiction efforts minimize corruption
and create space for effective governance to exist. Coast Guard
interdiction efforts reduce the ``push factors'' that are responsible
for driving migration to our Southwest land border.
Working with interagency partners, the Coast Guard seized 209
metric tons of cocaine and detained over 600 suspected smugglers in
fiscal year 2018, which is more than all other federal agencies
combined. Highlighting the capabilities of one of our modern assets, in
November 2018, the National Security Cutter (NSC) CGC JAMES, in support
of Joint Interagency Task Force South (JIATF-S), seized nearly nine
tons of cocaine and detained over 40 suspected drug smugglers from
various drug conveyances, including low-profile go-fast vessels and
fishing vessels. In addition to stopping these drugs from getting to
our streets, the information we gather and share with our partners in
the Intelligence Community facilitates deeper understanding of TCOs and
ultimately helps our unified efforts to dismantle them.
As an important part of the modern military's Joint Force\2\, we
currently have forces assigned to each of the six geographic Combatant
Commanders (COCOMs), as well as Cyber Command, Transportation Command,
and Special Operations Command. The Coast Guard deploys world- wide to
execute our statutory Defense Operations mission in support of national
security priorities. Typically, on any given day, 11 cutters, 2
maritime patrol aircraft, 5 helicopters, 2 specialized boarding teams,
and an entire Port Security Unit are supporting Department of Defense
(DoD) COCOMs on all seven continents. In the Middle East, our squadron
of six patrol boats continues to conduct maritime security operations
on the waters of the Arabian Gulf in close cooperation with the U.S.
Navy, promoting regional peace and stability.
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\2\ In addition to the Coast Guard's status as an Armed Force (10
U.S.C. ' 101), see also Memorandum of Agreement Between DoD and DHS on
the Use of Coast Guard Capabilities and Resources in Support of the
National Military Strategy, 02 May 2008, as amended 18 May 2010.
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Likewise, as one of the principal federal agencies performing
Detection and Monitoring (D&M) in the southern maritime transit zone,
the Coast Guard provides more than 4,000 hours of maritime patrol
aircraft support and 2,000 major cutter days to DoD's Southern Command
(SOUTHCOM) each year.
Coast Guard authorities and capabilities bridge national security
needs between DoD war fighters abroad and DHS agencies protecting our
homeland. In addition to COCOM support, the Coast Guard partners with
federal, state, local, territorial, tribal, private, and international
stakeholders to address problems across an increasingly complex
maritime domain. Our leadership on global maritime governing bodies and
our collaborative approach to operationalize international agreements
drives stability, legitimacy, and order. We shape how countries conduct
maritime law enforcement and establish governance.
Looking forward, the performance capabilities and expected capacity
of our future Offshore Patrol Cutter (OPC) fleet will provide the tools
to more effectively enforce federal laws, secure our maritime borders,
disrupt TCOs, and respond to 21st century threats. Continued progress
on this acquisition is vital to recapitalizing our aging fleet of
Medium Endurance Cutters (MECs), some of which will be over 55 years
old when the first OPC is delivered in 2021. In concert with the
extended range and capability of the NSC and the enhanced coastal
patrol capability of the Fast Response Cutter (FRC), our planned
program of record for 25 OPCs will be the backbone of the Coast Guard's
strategy to project and maintain offshore presence.
In the Arctic region, the Coast Guard remains steadfastly committed
to our role as the lead federal agency for homeland security, safety,
and environmental stewardship. There, we enhance maritime domain
awareness, facilitate governance and promote partnerships to meet
security and safety needs in this geo-strategically and economically
vital area. As access to the region continues to expand, strategic
competition drives more nations to look to the Arctic for economic and
geopolitical advantages, and the Coast Guard stands ready to provide
the leadership and sustained surface presence necessary to protect our
rights and sovereignty as an Arctic Nation.
Looking to the Antarctic, the 43-year old CGC POLAR STAR, the
Nation's only operational heavy icebreaker, just returned home after
successfully completing Operation DEEP FREEZE (DF-19), the annual
McMurdo Station breakout, though not without overcoming several high-
risk casualties to the ship's engineering systems. The ship's crew had
to battle a fire that left lasting damage to electrical systems; ship-
wide power outages occurred during ice breaking operations. And in the
same transit, divers were sent into the icy waters to investigate and
repair a propeller shaft seal leak. Events like these reinforce the
reality that we are only one major casualty away from leaving the
Nation without any heavy icebreaking capability.
With increased activity in the maritime reaches and growing
competition for resources, we cannot wait any longer for increased
access and a more persistent presence in the Polar Regions. Our
sustained presence there is imperative to ensuring our Nation's
security, asserting our sovereign rights, and protecting our long-term
economic interests.
Last year, we released a request for proposal (RFP) and later this
spring we plan to award a detail design and construction (DD&C)
contract for the construction of three heavy Polar Security Cutters
(PSCs). I am thankful for your support for the $675 million in the
fiscal year 2019 appropriation. This funding, coupled with the $300
million in Shipbuilding and Conversion, Navy (SCN) funding in fiscal
year 2017 and 2018, is sufficient to fund construction of the first PSC
as well as initial long lead time material for a second PSC.
Our value to the Nation is observed on the farthest shores around
the globe as well as closer to home where we continue to be ``Always
Ready'' to answer the call for help. The 2018 hurricane season led to
yet another historic Coast Guard response effort. The Coast Guard
mobilized over 8,600 active duty members, reservists, and civilians for
hurricane response across the United States for hurricanes Florence and
Michael in the mid-Atlantic states and Gulf Coast respectively, as well
as typhoon Mangkhut in Guam.
In support of, and in coordination with the Federal Emergency
Management Agency (FEMA) and other federal, state, local, and
territorial agencies, the Coast Guard saved nearly 1,000 lives using
helicopters and shallow water craft, provided logistical support to
first responders, and oversaw the safe and effective resumption of
commerce at over 20 impacted sea ports.
While such a level of professionalism and distinction is what the
American people have come to expect from your Coast Guard, that
response comes at a cost. We continue to do our very best to stand
ready to respond to all maritime disasters, both natural and manmade;
however, these efforts consume future readiness. Our aging assets and
infrastructure require increased maintenance and repairs, all of which
is compounded by the on-going recovery and restoration operations of
the historic hurricane season of 2017.
In 2017 alone, the Coast Guard lost the equivalent of two major
cutters (e.g., over 300 operational days) due to unplanned repairs.
Expanding that to the last two years, we have lost three years' worth
of major cutter patrol days. In 2017 and again in 2018, shortages in
parts and supplies cost the Coast Guard over 4,500 flight hours each
year, or the equivalent of programmed operating hours for seven MH-65
helicopters. Each hour lost in the transit zones keeps us further from
reaching our interdiction targets and helps the TCOs deliver their
illicit cargoes.
Service readiness starts with our most valuable asset--our people.
We must continue to recruit, train, support, and retain a mission ready
total workforce that not only positions the Service to excel across the
full spectrum of Coast Guard missions, but is representative of the
diverse Nation we serve. Our workforce end strength was reduced by over
1,250 personnel during a three-year period from fiscal year 2012 to
fiscal year 2015. And compared to the workforce of fiscal 2012, the
Coast Guard has nearly 1,000 fewer personnel to accomplish an ever
increasing mission set. Adequate increases to depot maintenance
funding, coupled with strategic human capital investments, are critical
to addressing these readiness challenges.
conclusion
The Coast Guard offers a capability unmatched in the federal
government. Whether combating TCOs to help stabilize to the Western
Hemisphere, responding to mariners in distress in the Bering Sea, or
supporting U.S. Central Command (CENTCOM) on the Arabian Gulf, the
Coast Guard stands ready to execute a suite of law enforcement,
military, and regulatory authorities and capabilities to achieve
mission success anytime, anywhere. We cannot do this on the backs of
our people--now is the time to address the erosion of readiness
experienced in our Service over the past decade due to near flat line
funding for operations and support.
While the demand for Coast Guard services has never been higher, we
must address our lost purchasing power, the growing backlogs of
deferred maintenance on our capital assets, and the degraded
habitability of our infrastructure.
Our 48,000 active duty and reserve members, 8,500 civilians, and
over 25,000 volunteer members of the Coast Guard Auxiliary need your
support to maintain a Ready, Relevant, and Responsive Coast Guard.
With the continued support of the Administration and Congress, your
Coast Guard will live up to our motto--Semper Paratus--Always Ready.
Thank you for your support of the men and women of the Coast Guard.
fiscal year 2020 budget request
The Coast Guard's Fiscal 2020 Budget request is focused on three main
priorities:
1. Maximize Readiness Today and Tomorrow
2. Address the Nation's Complex Maritime Challenges
3. Deliver Mission Excellence Anytime, Anywhere
maximize readiness today and tomorrow
The Coast Guard's top priority is Service readiness. The fiscal
year 2020 President's Budget request begins to address the erosion of
readiness that resulted from years under the Budget Control Act.
Critical investments in the workforce as well as depot maintenance for
the fleet will put the Service on the path to recovery to sustain
critical frontline operations.
Additionally, investments in asset modernization sustain
recapitalization momentum while advancing other critical programs. The
fiscal year 2020 Budget request supports the Service's highest priority
acquisition, the OPC, and continues recapitalization efforts for
cutters, boats, aircraft, IT systems, and infrastructure.
address the nation's complex maritime challenges
As one of the Nation's most unique instruments of national
authority across the full spectrum of maritime operations, the Coast
Guard cooperates and builds capacity to detect, deter, and counter
maritime threats.
While nefarious activities destabilize and threaten vulnerable
regions, the Coast Guard offers capabilities, authorities, and
established partnerships that lead to a more secure maritime border.
The fiscal year 2020 Budget invests in a holistic approach to combat
TCOs through targeted detection and interdiction of suspected drug
smugglers, at-sea biometrics, and increased partnerships with allied
law enforcement nations in Central and South America, to quell illegal
migration.
As the Marine Transportation System (MTS) grows increasingly
complex, the Coast Guard's marine safety workforce must adapt to
continue to facilitate commerce. The fiscal year 2020 Budget increases
the marine inspection workforce while addressing key findings from the
report on the tragic sinking of the freight vessel EL FARO and the loss
of 33 crewmembers.
deliver mission excellence anytime, anywhere
The Coast Guard is an agile and adaptive force whose greatest value
to the Nation is an ability to rapidly shift among its many missions to
meet national priorities during steady state and crisis operations.
As new threats in the cyber domain emerge, the Coast Guard's cyber
workforce serves as the critical link between DoD, DHS, and the
Intelligence Community. The fiscal year 2020 Budget increases the cyber
workforce to promote cyber risk management and protect maritime
critical infrastructure from attacks, accidents, and disasters.
The Coast Guard seeks to continually improve organization
al effectiveness and the fiscal year 2020 Budget eliminates
redundant and outdated IT services to reinforce the culture of
continuous innovation and enhance information-sharing across the
Service.fiscal year 2020 budget highlights
procurement, construction, & improvements (pc&i)
Surface Assets: The budget provides $792 million for the following
surface asset recapitalization and sustainment initiatives:
--National Security Cutter (NSC).--Provides funding for post-delivery
activities for the seventh through eleventh NSCs, and other
program-wide activities. The acquisition of the NSC is vital to
performing DHS missions in the far offshore regions around the
world. The NSC also provides a robust command and control
platform for homeland security and contingency operations.
--Offshore Patrol Cutter (OPC)--Provides funding for construction of
the third ship and long lead time materials (LLTM) for the
fourth and fifth OPC. The OPC will replace the Medium Endurance
Cutters, now well beyond their service lives, which conduct
multi-mission operations on the high seas and coastal
approaches.
--Fast Response Cutter (FRC)--Funds procurement of two FRCs, totaling
54 of the 58 vessels needed for the domestic program of record.
These assets provide coastal capability to conduct Search and
Rescue operations, enforce border security, interdict drugs,
uphold immigration laws, prevent terrorism, and enhance
resiliency to disasters.
--Polar Security Cutter (PSC)--Provides funding to support detail
design and construction activities of the joint Coast Guard-
Navy Integrated Program Office (IPO) and program management
associated with construction of the lead PSC. PSCs will provide
the Nation with assured surface access to the Polar Regions for
decades to come.
--Polar Sustainment--Supports a multi-year Service Life Extension
Project (SLEP) for CGC POLAR STAR, including program management
activities, materials purchases, and production work.
--Waterways Commerce Cutter (WCC)--Provides funding for acquisition
planning activities, including continued evaluation of options
to replace the capabilities provided by the current fleet of
inland tenders and barges commissioned between 1944 and 1990.
These multi- mission platforms are integral to the protection
of maritime commerce on the inland rivers.
--Cutter Boats--Continues funding for the production of multi-mission
cutter boats fielded on the Coast Guard's major cutter fleet,
including the NSC, OPC, and PSC.
--In-Service Vessel Sustainment--Continues funding for sustainment
projects on 270-foot Medium Endurance Cutters, 225-foot
seagoing Buoy Tenders, and 47-foot Motor Lifeboats.
--Survey and Design--Continues funding for multi-year engineering and
design work for multiple cutter classes in support of future
sustainment projects. Funds are included to plan Mid-Life
Maintenance Availabilities (MMA) on the CGC HEALY, CGC
MACKINAW, and the fleet of 175-foot Coastal Buoy Tenders.
Air Assets: The budget provides $200 million for the following air
asset recapitalization or enhancement initiatives:
--HC-144--Continues Minotaur mission system retrofits and provides
high-definition electro- optical infrared cameras to meet DHS
Joint Operational Requirements.
--HC-27--Continues missionization activities, including funding for
spare parts, logistics, training, and mission system
development.
--HH-65--Continues modernization and sustainment of the Coast Guard's
fleet of H-65 short range recovery helicopters, converting them
to MH-65E variants. The modernization effort includes
reliability and sustainability improvements, where obsolete
components are replaced with modernized sub-systems, including
an integrated cockpit and sensor suite. Funding is also
included to extend aircraft service life for an additional
10,000 hours.
--MH-60--Includes funding to support a service life extension for the
fleet of medium range recovery helicopters to better align
recapitalization with DOD's future vertical lift program.
--sUAS--Continues program funding to deploy sUAS onboard the NSC
allowing increased interdiction through greater Intelligence,
Surveillance, and Reconnaissance (ISR).
Shore Units and Aids to Navigation (ATON): The budget provides $174
million to recapitalize shore infrastructure that supports Coast Guard
assets and personnel, as well as construction and improvements to
ensure public safety on waterways. Examples include:
--Replacement of covered boat moorings at Station Siuslaw River,
Oregon; recapitalization of failed aviation pavement at Sector
Columbia River, Oregon; construction in Boston, Massachusetts
to support arriving FRCs; and construction in Sitka, Alaska to
support arriving FRCs.
Other (Asset Recapitalization): The budget provides $69 million for
other initiatives funded under the Procurement, Construction, and
Improvements account, including the following equipment and services:
--Command, Control, Communications, Computers, Intelligence,
Surveillance, and Reconnaissance (C4ISR)--Provides design,
development, upgrades, and assistance on C4ISR hardware and
software for new and in-service assets.
--Program Oversight and Management--Funds administrative and
technical support for acquisition programs and personnel.
--CG-Logistics Information Management System--Continues development
and deployment of this system to Coast Guard operational
assets.
--Cyber and Enterprise Mission Platform--Provides funding for
emerging Command and Control, Communications, Computer, Cyber,
and Intelligence (C5I) capabilities.
--Other Equipment and Systems--Funds end-use items costing more than
$250,000 used to support Coast Guard missions, including
equipment to support operation and maintenance of vessels,
aircraft, and infrastructure.
operations and support (o&s)
Operation and Maintenance of New Assets: The budget provides $59
million and 297 FTE to operate and maintain shore facilities and
sustain new cutters, boats, aircraft, and associated C4ISR subsystems
delivered through acquisition efforts:
--Shore Facilities--Funds operation and maintenance of shore facility
projects scheduled for completion prior to fiscal year 2020.
Projects include: Coast Guard Yard dry dock facilities in
Baltimore, Maryland; FRC Homeport Facilities in Galveston,
Texas; Electrical Utilities for Air Station Barbers Point,
Hawaii; and Housing for Station Jonesport, Maine.
--FRC--Funds operation and maintenance and personnel for five FRCs
and shore-side support for FRCs in Galveston, Texas; Key West,
Florida; and Apra Harbor, Guam.
--NSC--Funds crew of NSC #9, as well as personnel for sensitive
compartmented information facility (SCIF) crews and analytical
support, and shore-side support personnel in Charleston, South
Carolina.
--PC--Funds a portion of the crew for OPC #1, as well as shore-side
personnel to develop operational doctrine for the new class of
cutter to be homeported in Los Angeles/Long Beach, California.
--HC-130J Aircraft--Funds operations, maintenance, air crews, and
pilots for HC-130J airframe #12.
Pay & Allowances: The budget provides $118 million to maintain
parity with DoD for military pay, allowances, and health care, and for
civilian benefits and retirement contributions, including a 3.1 percent
military pay raise in 2020. 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, which include pay and personnel
benefits for the military workforce.
Asset Decommissionings: The budget saves $12 million and 119 FTE
associated with the planned decommissioning of one High Endurance
Cutter (WHEC) and three 110-foot Patrol Boats (WPBs). As the Coast
Guard recapitalizes its cutter and aircraft fleets and brings new
assets into service, the older assets that are being replaced will be
decommissioned:
--High Endurance Cutter (WHEC)--The budget decommissions one WHEC.
These assets are being replaced with modernized and more
capable NSCs.
--110-foot Patrol Boats (WPBs)--The budget decommissions three WPBs.
These assets are being replaced with modernized and more
capable FRCs.
Operational Adjustments: In fiscal year 2020, the Coast Guard will
make investments that begin to address the erosion of readiness of the
Service while investing in new workforce initiatives:
--Aircraft Federal Aviation Administration (FAA) Compliance--The
budget provides $22 million to replace obsolete aircraft
equipment and systems necessary to comply with FAA 2020
airspace requirements.
--Cyber and IT Infrastructure--The budget provides $16 million and 38
FTE to mature the cybersecurity defense program. The budget
also provides funding for an information technology framework
and platform to establish a consolidated user interface
primarily for Command Centers.
--Restoring Depot Readiness--The budget provides $10 million to begin
to restore eroded vessel and aircraft readiness and address
critical information technology maintenance and inventory
backlogs.
--Human Capital and Support Infrastructure--The budget provides $17
million and 22 FTE to improve enterprise-wide support for the
workforce, including the transition to electronic health
records and training and support for the Coast Guard Reserve.
--Counter Transnational Criminal Organizations (TCO)--The budget
provides $7 million and 26 FTE to expand the Coast Guard's
capacity to execute a multi-layered approach in the Western
Hemisphere maritime transit zone, dismantle TCOs, and secure
our Nation's borders from illicit smuggling of all kinds.
--Maritime Safety, Security, and Commerce--The budget provides $6
million and 20 FTE to strengthen the Coast Guard's marine
safety program through improved marine inspector training,
establishment of a third party oversight and auditing program,
expansion of the marine inspector workforce, and improved
accession opportunities for marine inspectors.
Senator Capito. Thank you very much for that opening
statement, and I'll begin with the questions.
Both of us mentioned in our opening statements, and you
mentioned it in your statement too, the Coast Guard's role in
interdicting drug trafficking. Can you tell me what partners
you work with in order to stop drugs from coming in and how
that partnership works in terms of preventing and seizing not
just the drugs but the smugglers as well?
Admiral Schultz. Absolutely, Madam Chair. Thank you for the
question.
Here in the United States within our own department, we
work very closely with Customs and Border Protection,
particularly their marine branch. They fly P3's on the maritime
patrol side of the operations and the equation. They contribute
about almost 50 percent of the hours there.
We work with Homeland Security Investigations on the
investigative side. Once we take the drugs off the water, HSI
is tied into that work.
But across the United States Government, we work very
closely with Department of Justice. I mentioned folks
interdicted at sea. When you look at the last three-year
period, it is 1.4 million pounds of cocaine, 1,800 smugglers.
We bring them back here domestically, work with DOJ for
prosecution. It's the cycle of success. They help us derive
information, intelligence to build on cases to reach deeper
into the cartels.
We work with the Department of Defense, the combatant
commands. I have a force provider to U.S. Southern Command, and
a subordinate command to the South. I think many of you, many
of the committee members have been there. That is a premiere
institution, I think on the planet, for coordinating the
interdiction efforts internationally, here domestically.
And then we work with partner nations. We have more than 30
bilaterals here in the Western Hemisphere that allow us to
partner with key countries like Colombia in the drug fight,
Panama, Costa Rica. You name it, we work very closely.
So it is a multi-level domestic partnership, international
partnership. That is how we get after the fight.
Senator Capito. Do you feel that you have adequate
resources to keep moving and expanding that responsibility?
Admiral Schultz. Madam Chair, what I would say, as Senator
Tester talked about, there's a capacity conversation to provide
four ships on an annual basis, what we call airborne use-of-
force HITRON helicopters. We're auctioning about 25 percent of
the known intelligence. With more, we can do more. But I would
say we are pushing into the fight.
This year the budget request increases money for additional
HITRON airborne use-of-force helicopter hours. Right now my
commitment is four. This will allow us to potentially put a
fifth helicopter down there. While we commit to four, we're
striving to put six or seven cutters down there on an annual
basis because this is, in fact, important work for the nation.
Senator Capito. Right, right. Thank you for your good work
on that.
When we toured the Coast Guard facilities in West Virginia,
one of the things that came to mind is the great work that
they're doing there on vessel identification and continuity of
operations and technology. You mentioned the need for up-
scaling the Coast Guard's IT systems on our visit. What do you
have in this budget that will do that, and how do you see that
rolling out over several years?
Admiral Schultz. Well, Madam Chairwoman, I would say first
off, thanks for acknowledging that. We have antiquated
infrastructure, IT infrastructure across the Coast Guard. That
is a place where we have bright employees. They're making
decisions about what's the organization's commitment to the
things that enable them to do their job. So we do have to make
an investment.
In this budget we have a $14 million line item. It's a
PCNI. So on the acquisition side that really gets after cyber
and enterprise mission platform upgrades.
There are a couple of specific projects. There's our
satellite compatibility with DoD. There's what we call the
MSRAM, which is a Maritime Security Risk Assessment Model.
We're upgrading those. That's how we do port vulnerabilities.
But writ large, ma'am, that $14 million I think is an initial
investment on a longer-term plan to bring our antiquated
systems forward.
In the OSC, we design the platforms there, we layer them.
That's part of our service center, one of the three key nodes
for all of our mission applications. So this is the initial
conversation on what I think will be a multi-year investment to
pull the Coast Guard forward.
And lastly, we're watching what the Department of Defense
is doing on a cloud-based application. We're actually going to
the cloud with our auxiliary ops program this summer. So we're
dabbling there, but we're kind of trying to inform ourselves
from best practices here in government, because we do have to
make a bold move, ma'am. I think we'll start that on my watch
here.
Senator Capito. Well, I'm very supportive of those
initiatives.
When we went to Huntington and we saw the single-gender
crew, I know that part of your initiative and the Coast Guard
Academy's initiative is to diversify the Coast Guard with more
women and more minorities. I think it was pretty clear from the
tour, that they're not set up to have both genders to be able
to serve in such a small space.
Could you talk a little bit about how you envision the
Coast Guard changing to make that different and make it more
accommodating?
Admiral Schultz. Absolutely, Madam Chairwoman. Thank you
for the question. So the Osage, which we were on, a river
tender here, pushing a barge, the only woman that could
accommodate would be the officer in charge, the way the
burlings are configured. That ship is more than a half-century
old. All our new ships are built with more modularity. It's
enhanced creature comforts for the crew. We're not a 21-person
burling anymore, a 24-person burling. There are six, eight,
four-person burlings. It allows us much more flexibility in the
assigning of women.
Sometimes, you know, matching the pay grades and the
availability ratings, you just can't get there. So every new
ship we are bringing to bear, with the help of this committee,
is absolutely a step towards greater gender integration for our
men and women in the Coast Guard, particularly for our women.
We want every opportunity that exists in the Coast Guard to be
available to both men and women.
Senator Capito. Very good. Again, I'm supportive there.
Since the budget was written several months ago, and we know
things change rapidly around here, I wanted to know if there
was anything you would like to articulate that may not be in
your original budget that may be useful for us in formulating
this appropriations bill.
Admiral Schultz. Madam Chairwoman, I would say that I think
the Administration's budget is a fair representation that
maintains momentum on our key capital interests. That's the
security cutters, the offshore patrol cutter. This committee
has been tremendously supportive.
On the operating side, this is a start in the right
direction. I talked a little bit about being left outside of
that raising the bar for the military under that national
security presidential memo number 1. There are some good things
in here, $10 million towards maintenance for cutters, some
people initiatives, an electronic health record. So I would
say, ma'am, this is a definite strong step.
Is there anything that has changed specifically? Nothing
that I would call up to the committee's attention today, but
I'm very encouraged about really having the conversation about
what a ready Coast Guard looks like, and there is some
investment needed, ma'am, to do that for America.
Senator Capito. Thank you very much, and I'll turn to
Senator Tester.
Senator Tester. Once again, I want to thank you for being
here, Commandant. I want to thank you and all the people that
you serve with in the Coast Guard for their service to this
country.
I want to kind of follow-up on what the Chairwoman was
talking about. Readiness is a top priority. Does the fiscal
year 2020 budget request provide you with resources that you
need to restore readiness?
Admiral Schultz. Sir, it's a definite step in the right
direction. On the capital side, there are conversations that
this budget is significantly less than last year. But if you
look over the course of the last 8 years, with 2019 including
the security cutters, $675 million, that was a bit of an
aberration. That was including the President's mark.
There's been a slow, steady, positive slope on our capital
side of the budget. So I think that's a fair budget to start
this conversation moving forward.
On the people side, sir, again, we're very encouraged.
There is not a constituency tied to Coast Guard readiness. So
this is a challenge that I think I will be carrying in my
quiver here for the next three-plus years, is communicating why
these investments in people.
What concerns me, sir, is this new blended retirement after
1 January, with Coast Guard and any member of the armed forces.
I think it's right for the nation, but we're an organization
with the highest retention of any of the armed services. Almost
40 percent of our enlisted people historically have gone to 20-
year careers. Almost 60 percent of our officers. Now they have
the option at 12 years to take home 2 percent a year if they
invest in the thrift savings plan, very similar to other thrift
savings. We've got to be an attractive employer of choice. So
we've got to invest in people. This budget allows us to start.
The reserve Coast Guard men and women, not on active-duty
orders, we can give them tuition assistance for the first time
in more than a decade. That's competitive. The National
Guardsmen in your states, they're getting much more benefits
than our Coasties. I would love to take a Coast Guardsman, man
or woman, who has served their nation but they have other life
demands, other aspirations, keep them in the reserves. But when
they leave today, they don't see much there that makes that
attractive. Things in this budget actually allow us to compete
for talent and retain talent better.
Senator Tester. What is your active duty end strength right
now? How many people?
Admiral Schultz. So we're about 41,500 active duty.
Senator Tester. And what's your goal? Are you where you
want to be?
Admiral Schultz. Sir, I would say this. I would say that
the 2019 budget included 200 additional positions FTE. The 2020
proposal has 600. I'm a little loathe to put a number out
there. We've had a number out there in the past. I think if we
continue to grow as we're doing in our budget requests, putting
bodies on our new platforms, I think we're on a good
trajectory. We'll continue to refine that number. My
predecessor talked about 5,000. I'd use that as I'm 7 months in
the job. I'd like to refine that.
Senator Tester. Did you meet your recruiting goals this
last year?
Admiral Schultz. Sir, we're doing well in recruiting.
Senator Tester. And I'm just curious. If you had close to
perfect right now, I know. But if you had the perfect Coast
Guard, what would the make-up of men and women in it be?
Admiral Schultz. Well, sir, as I look across society writ
large, I think the workforce is approximating a 50/50 model.
We're 15 percent women, so there's plenty of running room
there. Underrepresented minorities is another place where
numbers are less than the 15 percent.
Senator Tester. Okay. So, I want to talk about the Polar
Security Cutter. You have now received close to a billion bucks
for acquisition, which is enough to build one and maybe start
on a second. You said that the procurement would anticipate
awarding a contract this spring.
Admiral Schultz. Sir, I hope and hear late April/May.
That's our projected timeline.
Senator Tester. Okay. When we visited, we talked about six
new icebreakers, three heavy, three medium. There is $35
million in the fiscal year 2020 request. That's a lot of money,
but it's not a lot of money when you're talking about buying a
second icebreaker. Does this request keep that second
icebreaker on schedule?
Admiral Schultz. Senator, the $35 million allows us to
manage a program moving forward. There are clearly some
opportunities for efficiencies, economic cost savings if you
buy some long lead-time materials early. There are some things
like the ice hardened propulsion units in here that take some
time to do. I would say $35 million allows us to go forward.
There may be some economic efficiencies where there would be
additional monies in that project.
Senator Tester. We're talking about awarding the contract
for the first one coming right up in the next few months. Do
you have a timeline for awarding the second? Because, if I
remember correctly, you were talking about that by the time
that got built, if it was awarded this spring, in April/May, is
it 2023? Is that what you're talking about?
Admiral Schultz. Senator, I think 2023 is our target. I
think it's optimistic. But 2023, early 2024 is what I think
we're holding on.
Senator Tester. Okay. So making those assumptions, what is
your optimum time for awarding the second contract?
Admiral Schultz. So we would like to see--I think you'll
see in our 2021 budget another big number moving forward here,
sir, that gets after the second Polar Security Cutters.
Senator Tester. So are you looking at awarding--I mean, I'm
talking from your perspective. We've got to fund it. But from
your perspective, next year?
Admiral Schultz. Yes, sir. Next year would be the big
number on the front end.
Senator Tester. So that's when you anticipate awarding it?
That's when it would be optimal to award the second one?
Admiral Schultz. So if we're funded in 2021, obviously,
when that comes into fruition, that would push us into
possibly--it depends on when that budget comes through, sir,
but potentially six or 8 months after that.
Senator Tester. Okay. As I said in my opening statement,
you guys have 80 percent awareness of drug activity. You were
able to interdict 20 percent due to constraints. What do you
need to be able to get to a point where we can get another 60
percent effectiveness?
Admiral Schultz. Well, Senator, I think as we talked about,
what are those mission enablers? There's clearly additional
ships to add to that equation, but we're spread pretty thin.
There are other demands. I've got a National Security Cutter
supporting the PACOM Commander. That is righteous national
security work. What this budget--last year, the 2019 budget,
this budget, it's monies for small UAS. We signed a contract
with Scan Eagle in situ back in December. We're equipping
National Security Cutters at the pace of two a year with the
small U.S. capability. So that tied to the maritime patrol
aircraft, the 2019 budget that included the C-130J. Those C-
130J's are key enablers.
The process works out of south derives from the interagency
intelligence. We send an airplane out, a maritime patrol
airplane, as you know, and then the cutter has to get there
over the rise of boats. Our ships have the boats, and then
there's the HITRON helicopter. All those pieces are the ideal
package, sir.
Senator Tester. And you guys do an incredible job. But I
guess what I'm looking for, and I would like to get it, I think
we would both like to get it, is we're talking long term, if
we're going to do better than 20 percent--and, by the way,
you're doing great, but I want to do better, right? What in the
way of equipment, what in the way of personnel, what in the way
of technology, what in the way of unmanned surveillance systems
do you need to be able to achieve a higher percentage?
Admiral Schultz. Sir, I would say it's all of the above.
We've got some studies. We can tell you it's about 15 or 16
major cutters. That's an OPC and a National Security Cutter
with those enablers. That's what takes the dent out of it.
Senator Tester. Got you. The real question is, can you get
me what you need?
Admiral Schultz. We can give you what we think would be the
key enablers and take a bigger bite out of that.
Senator Tester. That would be marvelous. Thanks very much.
Senator Capito. I've got a few additional questions on the
cost issue. In some of the discussions in this subcommittee and
elsewhere, the cost of the Polar Security Cutter being over
$695 million, the cost has been called into question in terms
of whether you can build a similar commercial vessel for a lot
less.
How would you characterize that, as much as you can in an
open setting? I know some of these are not quite public. Why is
building such a ship more expensive and how carefully? I guess
my succeeding question would be when we go to the second one or
the third one, are there going to be some cost efficiencies
that are going to be achieved because the first one is out of
the chute and you've got some redundancy there? If you could
address the cost issue on the Security Cutter.
Admiral Schultz. Yes, ma'am, Madam Chairwoman. So first
off, $675 million came in the 2019 appropriation. About 20 of
that goes to the long leads. About $655 comes in on top of
prior-year funding. So we think this first article, the first
Polar Security Cutter, probably can build that in the $925,
plus or minus a million dollar range. As we step forward to
build Polar Security Cutters number two and three, we think
that number will come down.
It's tricky. We have not built a heavy icebreaker here in
the United States in more than 40 years. There's different
steel work, there's different types of welding and training. So
this is a little bit of new ground for the nation, but we think
we will have subsequent Security Cutters coming in at lower
cost, potentially at--I'm loathe to put a number out there, but
I would say potentially in the $700 million range, so I think
you will see savings.
We talked about the 6-3-1 strategy. It's a minimum of--we
talk about the high-latitude studies of yesteryear, talking
about the need for 3-and-3. As we build these first three
ships, we may see there's economic savings, and we look at is
that the whole conversation or is there a conversation about
more Polar Security Cutters that look a lot different from what
the medium breaker might look like.
So I think the costing is going to limit, but we anticipate
a significant decrease in hulls two and three. But I think
about $940 is this first ship, $925, in that price range.
Senator Capito. Is the reason that's so high because
nothing has been built in this country that would be an apples-
to-apples comparison? And is part of the reason because you
really don't know what it's going to cost?
Admiral Schultz. Ma'am, I would say this. I would say, if
you look at a National Security Cutter, a different platform,
but we're building National Security Cutters about $670 million
a ship. It's expensive to build a ship. This is going to be a
world-class Polar Icebreaker, high horsepower, the ability to
drive through six or seven feet of ice at 3 knots continuous,
building to break through 20-plus feet of ice backing and
ramming. It will have national security capability, what we
call a SKIF, which I won't say too much more about here, but
the ability to be an end user, a contributor to national
security-level information.
This ship will be projecting the U.S. national sovereign
presence in the Arctic. It will be transiting down to the
Antarctic and to the McMurdo breakout. So this is a lot of ship
from the tonnage standpoint, from the horsepower, the ability
to--you know, we send the Polar to Antarctica without a
helicopter in the back. Ideally, that mission is complemented
by having rotor wing capability. We have not done inspections
work under international treaties in more than 20 years. We
will not send the Polar Security Cutter north or south in the
future without having a helicopter on board.
So this is a sophisticated ship. It's not a 30-knot ship, a
28-knot ship, like a National Security Cutter, but there are
other capabilities here that just have high price tags. If you
compare that to a DDG, a cruiser. Shipbuilding is not a cheap
proposition here domestically, ma'am. But we need to build that
ship here in the United States.
Senator Capito. Oh, I agree. We obviously agree because we
pushed hard in the conference to make sure we maintain that for
the Coast Guard, and for the nation as well.
Let me ask you, you talked in your opening statement a lot
about readiness. In your budget, you have a heavier emphasis on
operating costs. Are you equating, Can I equate in my mind
readiness with operating cost? Is that how you're thinking
about it?
Admiral Schultz. Absolutely, ma'am. I'd say if you look at
the Coast Guard over the eight-plus years since the Budget
Control Act, so the BCA level was 1.8 percent growth. Over the
last five or 6 years we've been about 1.2 percent. I called out
in my oral statement 4.0, when DOD got 12 percent in 2018.
We've been below that BCA level. The 2019 budget got us above
2-something. The 2020 is about 2.2. But really, when you lose
that purchasing power over a good part of the last decade,
we're playing catch-up.
We made decisions, cut recruiting losses. You asked about
recruiting. We've gone back and put people back in recruiting.
To really recruit the workforce we're striving for, we need to
grow recruiting offices and go to places we haven't been.
Health care, we cut health benefit advisors, we cut
certified medical administrators just to get under budget.
Those are things that are absolutely vital to retaining a
talented workforce.
Folks have choices. We have tremendous people who are
either apprentices, journeymen, subject-matter expert kind of
models. So we invest in a 20-year Coast Guard. With that new
blended retirement, there is absolutely a direct tie between
talent, talent management, and readiness.
The $10 million here for 4X, we lost the equivalent of
three ships in the last 2 years. So in 2017, 300 major Cutter
days. That's a flight deck-equipped ship doing the work that
both you and the senator were interested in in the eastern
Pacific Ocean, we lost 300 days. If you look at the 2018, last
year there's a third ship in there. We lost the equivalent of
seven. We program our Dolphin helicopters about 600, 650 hours
annually. We lost 4,500 air hours for seven--that's seven
helicopters, a full year of program hours, in both 2017 and
2018.
So we're chasing a deferred maintenance thing, and then
we've got a $1.7 billion infrastructure backlog. Those are
facilities. The hurricane monies fix broken and damaged
facilities, and then some resiliency money. That allows us to
upgrade places like Key West. We upgraded that station in the
90s.
So the funds you've been giving us have been absolutely
critical. But we're pulling a readiness backlog and we're
funded below the inflationary rate of running an organization.
That's sort of where we've found ourselves, ma'am.
Senator Capito. I know in the supplemental there's some
recouping or some remediation dollars for the Coast Guard for
some of the facilities that were harmed over the last year in
the hurricanes. I'm going to give you a real softball question
because, like Senator Tester, we traveled together. He took me
to the border as well, and he came to West Virginia, and I
think there's no better ambassador for the Coast Guard than
you, quite frankly. So if there is an 18, 19, 20 or 23-year-old
man or woman watching this, how do you recruit them to the
Coast Guard? What are the three things you tell them about the
Coast Guard?
Admiral Schultz. Well, I would tell you this, Madam
Secretary. That is a softball.
[Laughter.]
Admiral Schultz. I think we have the brightest workforce
that I've been privileged to serve with for almost 36 years.
Our missions are absolutely relevant to the security of the
nation, the economic prosperity of the nation, from the
counter-drug mission to the south. I no longer look at the
Arctic as emerging. I look at that as a competitive space. It
is absolutely projecting sovereignty there. I look at what we
do in terms of the rescues. You mentioned 15,000 rescue cases,
4,000 lives saved, the contingency operations backing Hurricane
Harvey and Irma; 2017 was a tremendously challenging year. The
Coast Guard rescued 13,000 people that year just in hurricanes.
Last year, 900 in Florence and Michael.
I think we have missions that make men and women come to
work and feel very much valued. We have some opportunities to
broaden our diversity. I would like to see more women in
traditional male-dominated career paths--machinery technicians.
We've got some opportunities there.
But it's an exciting time because our relevance and the
need for our services has never been higher. With the support
of the Administration and Congress, we have the best platforms.
I ran around on 40 and 50-year-old ships. If I was a young
sailor--I have a son who is a cadet, and I look forward to him
serving on a fast response cutter, an offshore patrol cutter, a
National Security Cutter. Or maybe he goes and flies on one of
these capable airborne use-of-force HITRON helicopters. We want
to bring those capabilities too. It's an exciting time, ma'am,
to be a Coast Guardsman.
Senator Capito. Thank you.
Senator Tester. Commandant, I want to go back to the
icebreakers for a second. How many icebreakers does Russia
have?
Admiral Schultz. So, Russia has in the high 40s. They have
a range of different vessels, but they have somewhere between
45 and 50 breakers.
Senator Tester. How about China?
Admiral Schultz. China, sir, has a research ship, the Sea
Dragon. They just launched a sister ship with that last summer,
and indications are they're building a heavy icebreaker. China
is not an Arctic nation. They've declared themselves a near-
Arctic state, as you know.
Senator Tester. So I go back to Montana and they say, why
are you going to spend $920 million on a boat that breaks ice?
Tell me why this is important to our national security.
Admiral Schultz. Absolutely, Senator. So, first off, if you
look at the high latitudes, the Arctic and the Antarctic, there
is strategic, geo-strategic criticality to both of those. In
the Arctic, about 13 or 15 percent of the untapped petroleum
lies in fairly shallow waters off the coast in the Beaufort and
Chukchi Seas, about 30 percent of untapped natural gas
resources, a trillion dollars of critical minerals that we care
about. So there's economic interests.
You've got China operating up there as a nation from a
defense standpoint. The Air Force is fielding fifth-generation
fighters up there. China is not up there just because they're
interested in doing ice research. They're up there paying
attention to what we're doing.
I mentioned in my statement that sovereignty is all about
presence equaling influence. We are not there. The one heavy
breaker we have makes an annual sojourn from McMurdo to break
out the station. In the south, China is building additional
camps and sites in the south. The National Science Foundation
is undergoing their four-plus-year recapitalization of our
international ice station. The Polar is absolutely essential to
bringing materials in, to escorting the ships that will bring
the materials in for that project. That's about a $450 million
Aims project, they call it.
But I'll tell you, sir, it's a competitive space. We are
the sole U.S. surface presence in the Arctic, outside of the
Navy going up there every other year with a submarine. We are
the face of the nation.
Senator Tester. Okay. I'll ask one more question before we
go over to Jeanne.
Your backlog for infrastructure modernization is $1.7
billion?
Admiral Schultz. Yes, sir.
Senator Tester. This budget request includes about $174
million for shore facilities. How many years do you think it's
going to take to get your backlog to a point where it's not a
backlog anymore?
Admiral Schultz. Senator, that's a great question. I will
tell you that $1.7 billion is growing. I think it's 30 percent
of our facilities are more than 50 years old, so that's a tough
place to play catch-up ball. But we are very encouraged. With
the support of this committee, that is a bite in this. We had a
little bit of bleed off from the resiliency money and the
supplementals. There's been additional talk about some
potential monies here for the recent hurricanes, Florence and
Michael. So I would say that's a long slog. But if we're biting
into it, that's different than where we've been here in recent
years.
Senator Tester. How much is your deferred maintenance
increasing each year?
Admiral Schultz. I'd have to get back to you on that. I'd
say we took a bite out of it to the tune of $100-plus million
with the help in the 2018 supplemental. I think we're about
stagnant right now. I don't think we started biting into it
yet. This $100 million included here, the $174, maybe starts to
unload on that.
Senator Capito. Senator Shaheen.
Senator Shaheen. Thank you, Madam Chair.
Commandant Schultz, thank you very much for your service to
this country. We have a Coast Guard station in New Hampshire
we're very proud of. I had the opportunity to meet with members
of the Coast Guard station there during the government
shutdown, and I know the concern and anxiety they felt, and I
will tell you that I hope we never again have a government
shutdown; but, if we have one, make sure that the Coast Guard
is understood clearly to be part of the defense of this country
and it's not separated out from the rest of defense.
As Senator Capito may have talked about the challenges that
West Virginia has with the opioid epidemic, we have similar
challenges in New Hampshire where we have a very high overdose
death rate and have seen the devastation that it creates for
families. The Coast Guard has obviously been very important in
our drug interdiction efforts.
Can you talk about, as the former Director of the Joint
Task Force East responsible for executing the DHS Southern
Border and Approaches Campaign, what are some of the ways that
you've seen substances come into this country, that
transnational criminal organizations operate to bring in drugs
to the United States, and what more do you see that we could be
doing to interdict those drugs as they come in?
Admiral Schultz. Well, Senator, thank you for the question.
Thank you for your personal outreach to our men and women
during the shutdown. I encouraged yesterday, earlier this week,
the House out of the full transportation infrastructure
meeting, to advance the Coast Guard Parity Act at the markup,
so we'll see where that goes. But thank you for reaching out to
our people.
Ma'am, on the drug thing, obviously when we talked about it
here before your arrival, we are absolutely an essential piece
predominantly on bulk cocaine coming into the United States.
When you look at the fentanyl, the opioid challenge, it's a
little different model. Much of that is coming out of Mexico,
much is coming out of China, much through mail order. We have
not seen quantities. We've had small loads of methamphetamines
mixed in with other commodities off the coast of California,
occasionally in the eastern Pacific Caribbean.
I think looking back to my time as a Joint Task Force East
Director, one of the three DHS task forces that was
predominantly maritime focused, but the work of the Department
is absolutely essential. Homeland Security Investigations is
working this. They're on methamphetamines, fentanyl, again with
Mexico being there.
I think these are harder. The cartels, when you think about
with cocaine, a cartel for fentanyl is an individual with a
computer in his or her basement pushing this through the mail.
It's a very difficult challenge. So the work that CBP does with
the Postal Service, it's about new technologies to screen
capabilities there.
So far, ma'am, we have not seen that opioid crisis affect
the Coast Guard in terms of our ability to take down large
quantities. What we do see is in our communities, we have
outfitted our front line operating units with Narcan. So if we
come across an individual fisherman or recreational boater that
is subject to that, we can treat them and get them the medical
care. We continue to keep our game high on trying to make sure
folks at sea are not under the influence of substances. But we
have not been heavily invested there.
But if you look at drugs writ large, the trend in the
nation, first-time cocaine use is up in the last year or two,
and that was trending down, with more deaths in America from
drug use and accidents. That trend line is going in a bad
direction. So this is a very difficult problem.
I work closely and I'm on the interdiction committee.
That's another hat I wear. I work very closely with Jim
Carroll, the Director of (ONDCP) Office of National Drug
Control Policy, and we have a partnership there. So we're
looking for places where the Coast Guard can complement the
opioid crisis. To date, ma'am, most of our work continues to
remain on thwarting cocaine moving from the transit zone to the
United States.
Senator Shaheen. Several years ago, a number of us met with
General Kelly when he was the head of SOUTHCOM, and I remember
one of the things he said to us was that they could only
interdict about 20 percent of the drug movements that they were
able to identify because of the budget challenges they were
facing.
Are you seeing that? If we provided more in the way of an
operating budget, could you interdict more cocaine and other
substances coming into the United States?
Admiral Schultz. Senator, it is absolutely a conversation
about capacity. We have visibility working through SOUTHCOM. I
was the former Director of Operations, working for General
Kelly at SOUTHCOM until more recently. We have visibility.
About 80 to 85 percent of the drug movements at sea for cocaine
out of the source countries. That's generally Colombia for 95
percent of the cocaine coming to America. We action about 25
percent. And those cases we action, we're successful in more
than 75 or 85 percent of the cases.
So we have the ability to take down more drugs, but it's a
conversation about capacity, and those are choices the nation
makes. The ideal package is flight deck-equipped ships. That's
a medium endurance cutter today, or an OPC, offshore patrol
cutter tomorrow, National Security Cutters. It's long-range
maritime patrol aircraft, C-130J's. This committee has been
very supportive. It's additional HITRON helicopters, airborne
use of force. The 2020 budget proposes 400 additional hours to
help us provide a fifth helicopter down range, and the new
ships have the over-horizon capabilities. There are some monies
in this budget for additional intelligence analysts, the
ability to domestically exploit cell phone technologies at sea
to potentially paint an additional intelligence picture.
So those are all enablers, and then it really is capacity.
I don't want to sit here and tell you--I'm saying with more, we
can do more. But we have other competing demands for those
National Security Cutters as well. We have one supporting the
Indo-Pacific Commander right now in the South China Sea.
They've been doing sanctions enforcement of the DPRK. They're
doing other work, pushing sovereign U.S. presence and goodness
into areas that we're competing with China.
Senator Shaheen. Well, thank you very much. Again, thank
you for the work that the men and women of the Coast Guard do.
I hope we're going to be able to get you some greater capacity
that you need to continue your mission.
Admiral Schultz. Senator, thank you for your support of our
men and women. Thank you.
Senator Shaheen. Thank you.
Senator Capito. Well, I see no other questioners, so this
will conclude today's hearing, Admiral Schultz. We appreciate
you appearing before the subcommittee, your service, and your
incredible responsiveness to members of this Committee and the
Senate in general.
ADDITIONAL COMMITTEE QUESTIONS
The hearing record will remain open for two weeks from
today. Senators may submit written questions for the record. We
ask that the Department respond to them within a reasonable
amount of time.
Questions Submitted by Senator Shelley Moore Capito
coast guard women career path limitations
Question. The Coast Guard has many, many career paths, but on a
recent trip to Huntington, West Virginia, I learned that the inland
river buoy tending mission, in many cases, must be staffed by single
gender crews, because of inadequate berthing facilities on board inland
river buoy tenders.'
Are there other career paths that women have difficulty pursuing
in the Coast Guard due to similar limitations?
Answer. Women can pursue any career path in the Coast Guard.
However, ship berthing availability may restrict some opportunities for
enlisted women. This does not restrict career progression, but it may
restrict geographic locations for those ships that cannot accommodate
women.
waterways commerce cutter recapitalization timeline
Question. The Coast Guard has many, many career paths, but on a
recent trip to Huntington, West Virginia, I learned that the inland
river buoy tending mission, in many cases, must be staffed by single
gender crews, because of inadequate berthing facilities on board inland
river buoy tenders.
When do you anticipate the completion of the recapitalization of
the Waterways Commerce Cutter program that will enhance the ability of
women to perform this mission?
Answer. The Coast Guard is currently conducting an Alternatives
Analysis to support the decision on the solution to replace the
capabilities currently provided by the inland tender fleet. Once the
solution is determined, the Acquisition Strategy (AS) and Acquisition
Plan (AP) will be developed. The AS and AP will inform the acquisition
schedule. The new capability will have accommodations for mixed-gender
crewing.
coast guard infrastructure improvements
Question. The Congress is currently considering a supplemental
funding bill, and it includes substantial resources for the Coast Guard
to rebuild and improve infrastructure that was damaged during recent
disasters.
How will Coast Guard readiness be impacted if these resources for
repairs and necessary improvements to Coast Guard infrastructure are
not provided to the Coast Guard?
Answer. By failing to recapitalize the Coast Guard's shore
infrastructure through PC&I investments, the Coast Guard increasingly
relies on Operations and Support (O&S) funding to complete maintenance
and repair on shore facilities which are at, or beyond, the end of
their service life. Continuing to defer recapitalization and
maintenance of shore infrastructure is costly, creates health and
safety issues, and can lead to failures that directly impact Coast
Guard operations.
Question. Can you give us some specific examples of Coast Guard
infrastructure projects that are important and why they are important?
Answer. The following are examples of three construction projects
resulting from severe damage sustained during the 2018 Hurricane
Season.
The $46.7M construction project at Coast Guard Station Panama City,
FL rebuilds to resilient standards the severely damaged Marine Safety,
Aids to Navigation, and Electronics Support buildings and associated
support buildings and structures, including damaged waterfront and
utilities. Multiple buildings are condemned/unusable with military
personnel working out of trailers and mission execution impacted by
only partial mission capable facilities.
The $91.8M construction project at Coast Guard Special Missions
Training Center (SMTC), collocated at Camp Lejeune, NC, replaces
destroyed and damaged facilities used for administration and training
function with resilient buildings, repairs and restores utilities,
rebuilds piers, docks and waterfront support and training facilities.
Currently the buildings and structures are destroyed or severely
damaged, jeopardizing the ability of the Coast Guard to provide boat,
firearms and specialized tactics training and support for 600+
students/instructors each year. Training classes have been reduced due
to unusable waterfront and facilities.
The $49 million construction project at Coast Guard Sector Field
Office Fort Macon, NC rebuilds to resilient standards the destroyed
Station building, repairs numerous other building roofs and building
envelopes, replaces damaged support buildings, and replaces damaged
floating docks, piers and utilities. The Station building is condemned
with military personnel working out of trailers and mission execution
impacted by only partial mission capable facilities.
coast guard migrant interdiction operations
Question. The Coast Guard has an important role in stopping the
illegal flows of migrants into the United States. We are currently
devoting a lot of attention to the escalating crisis on the southwest
border.
Will the Coast Guard see more migrants taking to the seas as the
Administration boosts investments in infrastructure along the southwest
land border?
Answer. As the land border hardens it is likely there may be an
increase in maritime migration as migrants search for other ways to
enter the U. S.
Question. Can you describe these migrant interdiction efforts and
where the Coast Guard is most active in interdicting migrants?
Answer. The Coast Guard is most active in interdicting migrants in
the Caribbean Sea, primarily the Mona Pass (vicinity west coast of
Puerto Rico), Windward Pass (north coast of Haiti), and Straits of
Florida.
Question. Has the Coast Guard been asked to take action to support
efforts along the southwest land border?
Answer. Yes. The Coast Guard is primarily providing administrative
and logistical support to Customs and Border Protection as well as some
limited patrols (helicopter and boat) on the Rio Grande River.
______
Questions Submitted by Senator Lisa Murkowski
coast guard polar security cutter acquisition
Question. Admiral, we are finally gaining some traction on the
Coast Guard's Polar Security Cutter program. And now that we have a
little momentum, I'm surprised to see only $35 million in the fiscal
year 20 request for the second Polar Security Cutter. We can all agree
that this is a top priority for the Nation.
Given that, does this funding keep the icebreaker acquisition on
schedule?
Answer. The $300 million in Navy Shipbuilding and Conversion (SCN)
Advance Procurement (AP) funding coupled with the $675 million in the
fiscal year 2019 DHS appropriation was sufficient to award the Detail
Design & Construction (DD&C) contract to complete detail design, long
lead-time material (LLTM) purchase, and construction of the first PSC,
along with some initial LLTM for the second. The fiscal year 2020
request maintains the current schedule; however, additional funding
will be necessary in future years to continue production of Polar
Security Cutters (PSCs). Additional funding in fiscal year 2020 can
provide advance funding to guard against contingencies or begin
acquisition of long-lead time materials for follow-on ships.
child care for coast guard families in high cost of living areas
Question. During the government shutdown, when the paychecks of the
hardworking men and women of the Coast Guard were held hostage because
of political disputes, I held teleconferences with Coast Guard spouses
stationed throughout Alaska to better understand the impact of the
shutdown on their families. A concern that was shared across every
remote Coast Guard community in Alaska was the ridiculously high cost
of childcare services. I know the Coast Guard has a base funding for
child care subsidies of about $6 million, and I did not see a request
for childcare subsidy increases in the fiscal year 20 budget.
Is there a way we can help lower the cost of child care for Coast
Guard families serving in high cost of living areas?
Answer. The child care subsidy program is the most versatile
program to administer an offset to child care costs for all eligible
members in the Coast Guard and can be administered in any geographic
location. Additional appropriations identified for child care subsidies
is the most efficient method to assist families in offsetting child
care costs, more specifically in high cost of living areas.
coast guard funding for alaska shoreside infrastructure
Question. The Coast Guard is in the process of gradually replacing
assets in Alaska that are several years past their expected service
life with new resilient cutters, including new Fast Response and
Offshore Patrol Cutters. These new cutters will facilitate the Coast
Guard's ability to perform many of its missions in Alaska. However,
these new cutters are bigger than the ones they are replacing, are
manned by larger crews, and will require upgrades to docks, housing,
and port facilities.
Is there any funding in this year's budget for the Alaska shoreside
infrastructure needed to support the new Coast Guard cutters that will
be replacing the older ships in the state?
Answer. The fiscal year 2020 President's Budget request includes a
$20.6 million Coast Guard project to support waterside and shore side
infrastructure requirements for the Fast Response Cutter (FRC) homeport
in Sitka, AK.
The fiscal year 2020 President's Budget request also includes a $25
million project for a cutter maintenance facility to support Offshore
Patrol Cutters (OPCs) and FRCs at Coast Guard Base Kodiak, AK; however,
this project is duplicative and was funded in the Coast Guard's fiscal
year 2019 Enacted Appropriation.
coast guard ketchikan dock space for noaa vessel
Question. The Coast Guard facilities in Ketchikan are the pillar
providing support for Coast Guard assets in much of southeast Alaska.
The suitability of the docks and shoreside infrastructure are part of
the reason you allow two of your Fast Response Cutters, the ANTHONY
PETTIT and BAILEY BARCO, to call Ketchikan their home port. I have long
supported efforts to return the NOAA hydrographic vessel R/V
FAIRWEATHER to its home port of Ketchikan, in accordance with title II
of the Departments of Commerce, Justice, and State, the Judiciary, and
Related Agencies Appropriations Act, 2002. I've been told that
Ketchikan does not have the appropriate dock to support this vessel.''
Does the Coast Guard have dock space available for the R/V
FAIRWEATHER?
Answer. No; Base Ketchikan uses all dock space currently available.
Question. If not, would the Coast Guard consider cost-share
opportunities with NOAA in the development of the shoreside
infrastructure needed to support the return of the R/V FAIRWEATHER to
its homeport of Ketchikan?
Answer. The Coast Guard continually engages in partnerships with
fellow government agencies and would consider working with NOAA to
explore the opportunities for dock space and shoreside infrastructure
expansion in Ketchikan.
______
Questions Submitted by Senator Joe Manchin, III
waterways commerce cutter build & acquisition timeline
Question. The inland cutter fleet possesses the unique capability
to establish, maintain, and operate inland aids to navigation to
support the safe and efficient flow of this activity along U.S. rivers,
lakes, intracoastal waterways, and harbors. They are also able to
quickly and effectively respond to emergencies such as environmental
incidents and severe weather events. Unfortunately, most of this fleet
has been in service for over 50 years. I understand you are looking
toward the replacement of its inland tender fleet with the proposed
Waterways Commerce Cutter. Our coastal ports are some of our greatest
economic drivers, and I know coastal states often reap the benefits of
the natural advantages of their location, providing the manufacturing
and necessary to fulfill the Jones Act by building, owning, and
operating the vessels that ship goods between U.S. ports.''
In the same way, has the Coast Guard considered giving preference
to states with extensive inland waterways to build the Waterways
Commerce Cutter (WCC)?
The WCC program is currently conducting an Alternatives Analysis to
support a decision on the solution to replace the capabilities
currently provided by the inland tender fleet. Once the solution is
determined, the Acquisition Strategy (AS) and Acquisition Plan (AP) for
the WCC will be developed in accordance with all appropriate statutes
and regulations.
Question. Have you set a timeline for when you will begin the
acquisition process for the Waterways Commerce Cutter?
Answer. The WCC program entered the acquisition process in January
2018 and has sought opportunities to accelerate this crucial
acquisition. Currently, the program is completing an Alternatives
Analysis. Once the analysis is complete, the Acquisition Strategy (AS)
and Acquisition Plan (AP) will be developed. The AS and AP will inform
the acquisition schedule.
SUBCOMMITTEE RECESS
Senator Capito. This hearing was adjourned.
[Whereupon, at 10:50 a.m., Thursday, March 28, the
subcommittee was recessed, to reconvene at a time subject to
the call of the Chair.]