[Senate Hearing 117-967, Part 2]
[From the U.S. Government Publishing Office]


                                                 S. Hrg. 117-967, Pt. 2

                  DEPARTMENT OF DEFENSE AUTHORIZATION 
                REQUEST FOR APPROPRIATIONS FOR FISCAL 
                YEAR 2023 AND THE FUTURE YEARS DEFENSE 
                PROGRAM

=======================================================================

                                HEARING

                               BEFORE THE

                      COMMITTEE ON ARMED SERVICES
                          UNITED STATES SENATE

                    ONE HUNDRED SEVENTEENTH CONGRESS

                             SECOND SESSION

                                   ON

                                S. 4543

     TO AUTHORIZE APPROPRIATIONS FOR FISCAL YEAR 2023 FOR MILITARY 
      ACTIVITIES OF THE DEPARTMENT OF DEFENSE, FOR MILITARY CON-
      STRUCTION, AND FOR DEFENSE ACTIVITIES OF THE DEPARTMENT 
      OF ENERGY, TO PRESCRIBE MILITARY PERSONNEL STRENGTHS FOR
      SUCH FISCAL YEAR, AND FOR OTHER PURPOSES

                               __________

                                 PART 2

                                SEAPOWER

                               __________

                             APRIL 26, 2022

                               __________

         Printed for the use of the Committee on Armed Services
         
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                 Available via: http://www.govinfo.gov

                                __________

                   U.S. GOVERNMENT PUBLISHING OFFICE                    
59-835 PDF                  WASHINGTON : 2025                  
          
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                      COMMITTEE ON ARMED SERVICES

JACK REED, Rhode Island, Chairman	JAMES M. INHOFE, Oklahoma
	
JEANNE SHAHEEN, New Hampshire		ROGER F. WICKER, Mississippi
KIRSTEN E. GILLIBRAND, New York		DEB FISCHER, Nebraska
RICHARD BLUMENTHAL, Connecticut		TOM COTTON, Arkansas
MAZIE K. HIRONO, Hawaii			MIKE ROUNDS, South Dakota
TIM KAINE, Virginia			JONI ERNST, Iowa
ANGUS S. KING, Jr., Maine		THOM TILLIS, North Carolina
ELIZABETH WARREN, Massachusetts		DAN SULLIVAN, Alaska
GARY C. PETERS, Michigan		KEVIN CRAMER, North Dakota
JOE MANCHIN III, West Virginia		RICK SCOTT, Florida
TAMMY DUCKWORTH, Illinois		MARSHA BLACKBURN, Tennessee
JACKY ROSEN, Nevada			JOSH HAWLEY, Missouri
MARK KELLY, Arizona                  	TOMMY TUBERVILLE, Alabama                                    
                                  
                                     
		    Elizabeth L. King, Staff Director
  		John D. Wason, Minority Staff Director
_________________________________________________________________

                        Subcommittee on Seapower

MAZIE K. HIRONO, Hawaii, Chair		KEVIN CRAMER, North Dakota		
JEANNE SHAHEEN, New Hampshire		ROGER F. WICKER, Mississippi
RICHARD BLUMENTHAL, Connecticut		TOM COTTON, Arkansas
TIM KAINE, Virginia			THOM TILLIS, North Carolina
ANGUS S. KING, Jr., Maine		RICK SCOTT, Florida
GARY C. PETERS, Michigan       	 	JOSH HAWLEY, Missouri     


                                  (ii)


                         C O N T E N T S

_________________________________________________________________

                            april 26, 2022 

                                                                   Page

Navy and Marine Corps Investment Programs........................     1

                           Member Statements

Statement of Senator Mazie Hirono................................     1

Statement of Senator Kevin Cramer................................     3

                           Witness Statements

Stefany, Frederick, Performing the Duties of Assistant Secretary      5
  of the Navy for Research, Development, and Acquisition.

Questions for the Record.........................................    42

                                 (iii)

 
  DEPARTMENT OF DEFENSE AUTHORIZATION REQUEST FOR APPROPRIATIONS FOR 
         FISCAL YEAR 2023 AND THE FUTURE YEARS DEFENSE PROGRAM

                              ----------                              


                        TUESDAY, APRIL 26, 2022

                      United States Senate,
                  Subcommittee on Seapower,
                               Committee on Armed Services,
                                                    Washington, DC.

           NAVY AND MARINE CORPS INVESTMENT PROGRAMS

    The Committee met, pursuant to notice, at 2:30 p.m. in room 
SR-222, Russell Senate Office Building, Senator Mazie Hirono 
(Chairman of the Subcommittee) presiding.
    Committee Members present: Hirono, Kaine, King, Cramer, 
Wicker, Rick Scott, and Hawley.

           OPENING STATEMENT OF SENATOR MAZIE HIRONO

    Senator Hirono. This hearing will come to order. We are 
waiting for my Ranking Member to come, and when he does come he 
will simply have to agree with anything that I suggest. So that 
is the deal. So we will start, and then when he comes he can 
certainly make his statement.
    I would like to welcome our witnesses to the hearing this 
afternoon to explore various aspects of the Department of the 
Navy's (DON's)investment programs: Mr. Frederick Stefany, 
performing the duties of Assistant Secretary of the Navy for 
Research, Development, and Acquisition; Vice Admiral Scott 
Conn, Deputy Chief of Naval Operations for Warfighting 
Requirements and Capabilities; and Lieutenant General Karsten 
Heckl, Deputy Commandant of the Marine Corps for Combat 
Development and Integration. Welcome. Thank you for your 
service to the Nation and for the professional service of the 
men and women under your commands.
    I also want to recognize our Ranking Member, Senator 
Cramer, and when he comes he will submit his statement, or give 
his statement.
    We did have a very productive 2020 year Defense 
Authorization Act, and I full expect to be working very 
productively with my Ranking Member once again. We are also 
grateful to our military families for the vital role they play 
in the success of the men and women of our Armed Forces.
    Sadly, last week we tragically lost three sailors on the 
USS George Washington. On behalf of this Subcommittee I would 
like to offer my deepest condolences to their family members 
and to all members of the USS George Washington family.
    The Navy and Marine Corps face difficult decisions as they 
seek to balance competing priorities, including modernizing the 
fleet, maintaining a technological advantage over our 
adversaries, supporting ongoing operations, and to sustaining 
today's readiness. The threats we face around the world require 
us to consider the best ways to get the Navy and Marine Corps 
the resources that they need. However, it is critical that any 
shift in priorities for those resources does not come at the 
expense of important programs that families, including our 
military families, rely on every day.
    At today's hearing we will explore various aspects of the 
Department of the Navy's investment programs. These programs 
play a critical role in supporting and advancing our country's 
strategic interest in the Indo-Asia-Pacific region, including 
bases in Hawaii.
    This Subcommittee plays a crucial role in the oversight of 
those programs. We must continue to work to ensure we are 
getting good value for every dollar that we spend, an ongoing 
challenge.
    This year the Navy is proposing to retire a number of ships 
before the end of their useful service lives. This includes a 
plan to retire nine littoral combat ships early, one of which 
would only be 3 years old. The Navy's position is that these 
vessels would not contribute much to a high-end conflict. 
However, this plan would result in our fleet size shrinking at 
a time when we are working to achieve a 355-ship fleet, 
established as the goal several years ago.
    Less than two years ago, former Defense Secretary Esper 
published Battle Force 2045, an updated, long-term shipbuilding 
plan. In this plan he called for achieving a Navy force even 
larger than the 355-ship fleet that had been adopted as 
national policy in Title 10 U.S.C.
    This Subcommittee is well aware of the Department of the 
Navy's ongoing challenges facing our air, land, surface, 
subsurface, and maintenance programs. The Navy has been 
utilizing multiyear procurement authority to modernize the 
fleet more efficiently. Congress has approved the use of this 
authority to procure attack submarines and Aegis destroyers. 
The two platform had been the largest inventory shortfall 
compared to the goals outlined in the 2016 Force Structure 
Assessment.
    I look forward to hearing today about the Navy's multiyear 
contract plan for building destroyers over the next 5 years and 
how the plan will address our concerns for a potential 
shortfall.
    We are also well aware of the significant changes the 
Marine Corps is contemplating in reorganizing itself to deal 
with operations against near-peer competitors. I expect to hear 
today how the realignment of the force, to reflect the 
Commandant's vision for the Marine Corps, is reflected in the 
plans and programs in fiscal year 2023 budget proposal.
    I am also interested in hearing from Secretary Stefany 
about the vital role our public Navy shipyards play in 
maintaining a ready and capable fleet. While shipyards are not 
necessarily within what we call the kuleana of this Committee, 
it is all tied together, because if you build ships you have to 
repair and maintain them.
    I am encouraged that the Navy has finally gotten serious 
about investing in this critical shipyard infrastructure that 
has been neglected for far too long. I look forward to hearing 
from you this afternoon about how the fiscal year 2023 budget 
supports this shipyard modernization plan.
    I look forward to working with the Navy to ensure that the 
shipyard plan, as I said, stays on track and that you are 
requesting the appropriate resources for that plan to proceed.
    Now--I just mentioned to them that since you are late you 
have to do everything I want us to do. Okay? No problem, right.
    Senator Cramer. From what I have heard it sounds like it is 
not going to be that far away.
    Senator Hirono. Yes. I do not think so.

               STATEMENT OF SENATOR KEVIN CRAMER

    Senator Cramer. Thank you, Chairwoman Hirono, and thank you 
all for your service and for being here today as well.
    I will agree with a fair bit of what I heard from the 
chairman. It is obviously a critical time in our country and 
the stakes are really high, and you are really an important 
part of all that. So appropriate funding from the Department of 
Defense in order to keep our Nation safe and, frankly, much of 
the world, and defend our interests is the most critical and 
highest priority, of course, we have as Members of Congress. We 
take it seriously.
    To this end I want to thank the chairwoman for calling 
today's hearing to examine Navy and Marine Corps programs in 
the President's fiscal year 2023 budget request. I have to say, 
like last year, I am concerned. I am concerned that President 
Biden's defense budget request is woefully inadequate, nowhere 
near enough to give our Navy and Marine Corps the resources, 
equipment, and training that they need. Quite simply, because 
this budget does not keep up with inflation, it is a cut, and I 
am hopeful that we can come together again to provide the 
Department with the real budget growth that is necessary to 
fund critical modernization, readiness, and personnel 
shortfalls.
    Regarding the President's budget, I do want to make three 
technical points. First, we just received the detailed budget 
justification material on Friday, despite the budget being 
submitted a month ago. We need to get the NDAA done, and this 
delay is not helpful.
    Second, this year's shipbuilding plan's ``choose your own 
adventure'' format lacks coherence, and three different 
outcomes raise more questions than they answer.
    Lastly, the procurement of the amphibious ship, LHA-9 is 
double-counted in this budget in contravention of the law. This 
is something that I have raised with a number of the officers 
that have come into the office as well. We need an explanation 
on that, please.
    More broadly, I am concerned about the state of our Navy 
and its downward trajectory. It seems to me that the Navy is 
dealing with the confluence of four key issues. First, 
President Reagan added a lot of ships to the fleet quickly, 
nearly a 600-ship Navy. Thirteen of the 24 ships proposed for 
decommissioning this year were procured in the 1980s. The 
Reagan-era ships are reaching the end of service life in large 
quantities, just like they were brought in in large quantities. 
Former Navy officials' promises over the years to modernize and 
extend the service life of many of these ships or replace them 
with new ships, of course, have not panned out.
    Second, as the chairwoman mentioned, the LCS program was 
planned to be a major portion of our fleet, with 55 of these 
ships in service by 2018. Instead, we have 24 today. 
Unfortunately, this class has been plagued with problems from 
the start, and a key reason for the program, the anti-submarine 
warfare capability, which was supposed to be operational just 
12 years ago, was cancelled altogether in this budget. Nine of 
the 24 ships proposed for decommissioning are LCSs.
    Third, we need Navy shipbuilding programs that can scale 
up. There is a high opportunity cost in time and money for 
failure in Navy shipbuilding, and again, this is an area where 
the chairwoman and I agree. It is a key lesson of the LCS, the 
CGX, the DDX, and DDG-1000 programs. Just think. If the LCS 
plan delivered as promised, we would have a fleet now of 
roughly 330 ships, with 55 LCS capable of hunting submarines, 
neutralizing mines, and conducting surface warfare. Instead, we 
have 31 fewer ships and no small surface combatants that can 
hunt submarines.
    To this end, the new Constellation-class frigate program 
must succeed if we are to grow our Navy. Unfortunately, the 
lead ship will not be finished until 2026, 11 years after the 
last of our 51 Oliver Hazard Perry-class frigates was 
decommissioned, which has resulted in acute and continuing 
frigate gap in the Navy's ability to escort convoys, hunt 
submarines, and defend high-value assets.
    Fourth, we need a consistent commitment from every 
administration and Congress to provide steady and predictable 
funding to the Department of the Navy. As bad as the 
President's 2023 budget request is, the projected cuts to 
shipbuilding in future years are worse, with the LPD amphibious 
ship production line abruptly ending with no transition plan. 
This is simply unacceptable, as it will both further shrink the 
fleet and starve our Navy shipbuilding industrial base, which 
is already barely hanging on.
    I also have concerns related to the health and trends for 
naval aviation and the extent to which this budget supports the 
Commandant of the Marine Corps' force design, but in the 
interest of time I will not belabor that now.
    The bottom line is this budget sends China and other 
potential adversaries the wrong message, that we are not 
willing to do what it takes to defend ourselves and our allies 
and our partners. We should be worried about China for a 
multitude of reasons, but looking at just their navy for a 
moment, their fleet surpassed our fleet size target of 355 
ships 2 years ago, and continues to steadily climb. Meanwhile, 
this budget proposes to shrink our Navy to 280 ships over the 
next 5 years. It simply does not make sense, at least not to 
me.
    So a few specifics I hope to cover today include, Mr. 
Stefany, I would like to discuss five shipbuilding issues to 
better understand how this Subcommittee can be helpful, and we 
will get to those five in my questioning.
    General Heckl, the Marine Corps appears to be aggressively 
pursuing air defense and missile systems in the Indo-Pacific. I 
am interested in better understanding how these systems can 
both protect forward-postured marines as well as help combatant 
commanders deny maneuver space to an adversary.
    I am also interested in the Commandant's requirement for 
amphibious ships, and I look forward to your testimony. Thank 
you.
    Senator Hirono. Thank you.
    Mr. Stefany, are you testifying on behalf of the other 
panelists?
    Mr. Stefany. Yes, ma'am. One opening statement for the 
three of us.
    Senator Hirono. Okay. Please proceed.

   STATEMENT OF FREDERICK STEFANY, PERFORMING THE DUTIES OF 
ASSISTANT SECRETARY OF THE NAVY FOR RESEARCH, DEVELOPMENT, AND 
                          ACQUISITION

    Mr. Stefany. Thank you, ma'am. Chairwoman Hirono, Ranking 
Member Cramer, distinguished Members of the Subcommittee, on 
behalf of myself, Vice Admiral Conn, Lieutenant General Heckl 
we thank you for the opportunity to appear before you today to 
address the Department of the Navy's fiscal year 2023 budget 
request for our seapower capabilities. We would like to thank 
your Subcommittee for your leadership and support of 
shipbuilding, naval aviation, and ground programs that maintain 
maritime superiority in defense of our Nation.
    I would like to highlight that this past year we have had a 
number of significant firsts as we provide new capabilities to 
the fleet. This year we achieved the initial operational 
capability, or IOC, of the USS Gerald Ford, and that ship is 
now, the first of our class is preparing for first deployment 
later this year.
    We completed the operational testing of the CH-53K heavy-
lift helicopter, and just recently, just a couple of days ago, 
we declared IOC of that capability.
    We have been equipping our first platoons of marines with 
the new amphibious combat vehicles this year, and we expect 
later this year to do the first deployment of this vehicle 
later this year.
    We achieved IOC of the VH-92, the presidential helicopter, 
and we are starting the commissioning process with the White 
House to get that helicopter into the White House's fleet.
    We have also accomplished the first refueling of an 
operational aircraft with an unmanned air vehicle. In this case 
it was the MQ-25 prototype aircraft, and we refueled both an F-
18, an E-2D, and a Joint Strike Fighter.
    Of note on the Joint Strike Fighter, this year we had our 
first deployment of F-35 Charlies. Both the Marine Corps and 
the Navy deployed for the first time. Then a true measure of 
interoperability with our partners in the Royal Navy this past 
year saw the deployment of a squadron of marine F-35 Bravos on 
the HMS Queen Elizabeth.
    The Department of the Navy's fiscal year 2023 budget is 
guided by SECNAV's priorities to strengthen our maritime 
superiority in defense of our Nation, to empower our people, 
and to strengthen strategic partnerships. It implements the 
Chief of Naval Operations' navigation plan to expand our fleet 
capabilities for distributed operations while building on the 
Commandant of the Marine Corps' Force Design 2030, to rapidly 
modernize the expeditionary posture of the Marine Corps.
    Consistent with recent budgets, this budget prioritizes the 
Navy's contribution to the National Strategic Deterrence while 
balancing readiness for the fight tonight, new capabilities for 
the future fight, and capacity across the near and future. The 
fiscal year 2022 budget continues our investments in more 
lethal network capabilities integrated into the Joint Force to 
address our pacing and acute threats.
    As reflected in the Department's 30-year shipbuilding plan, 
this budget requests over $27 billion for shipbuilding 
programs, more than $5 billion more than what was requested in 
last year's President's budget, and includes 51 new 
construction ships across the 2023 to 2027 FYDP.
    This budget also invests in 96 fixed-wing aircraft, rotary-
wing aircraft, and unmanned aircraft in fiscal year 2023, with 
420 aircraft across the FYDP.
    The budget includes funding for Marine Corp force design 
priorities for equipment modernization and precision fires, 
resilient communications, and mobility platforms to optimize 
the force for naval expeditionary warfare in a maritime 
littoral.
    To assure we can maintain the forces we have we expanded in 
our budget the aviation and ship depot funding lines. We also 
are continuing the OPN funding maintenance pilot, and we are 
expanding it to the Atlantic fleet and the Pacific fleet.
    The budget continues, Senator Hirono, to your point, once-
in-a-century recapitalization of our national ship 
infrastructure as part of the Shipyard Infrastructure 
Optimization Program, SIOP, with a significant increase in 
funding in 2023, that is sustained--our commitment is sustained 
across the FYDP.
    On the aviation side, the budget funds repairs, overhauls, 
inspections of our airframes, engines, and aircraft components, 
and it continues our reform efforts to reduce out-of-reporting 
aircraft and increase number of mission-capable aircraft we 
have.
    With a focus on developing our fully capable future naval 
forces, this budget invests a record $24 billion in research 
and development. It includes investments in our next-generation 
submarine, our large surface combatant, our air dominance 
aircraft, as well as investments in hypersonic weapons, 
directed energy weapons, autonomy, artificial intelligence and 
machine learning, and the initial instantiation of Project 
Overmatch.
    We thank you for the opportunity to appear before your 
subcommittee today and for the strong support this Subcommittee 
has always provided to our sailors and our marines. Now we look 
forward to answering your questions. Thank you.
    [The joint prepared statement of Mr. Stefany, Admiral Conn, 
and General Heckl follows:]

 Joint Prepared Statement by Frederick J. Stefany, Vice Admiral Scott 
             Conn, and Lieutenant General Karsten S. Heckl
    Chairwoman Hirono, Ranking Member Cramer and distinguished Members 
of the Subcommittee, thank you for the opportunity to appear before you 
today to address the Department of Navy's fiscal year 2023 budget 
request for Seapower capabilities. First, we would like to thank 
Congress and this Committee for your leadership and support for the 
Department of the Navy (DON) acquisition, sustainment, research and 
development programs. The fiscal year 2022 Authorization and 
Appropriation Acts strengthened the DON's shipbuilding, aviation and 
ground programs that allow us to build and operate a potent, 
integrated, forward-maneuverable Navy and Marine Corps.
    As we look to our security and operational environment we face 
increasing regional threats from coercive and malign actors. We are 
looking broadly at the war in Ukraine and how it may embolden or deter 
others. Aggressive actions by the Chinese and Russian militaries 
threaten peace, stability, and rules-based order. The DON will continue 
to strengthen our maritime dominance through integrated deterrence and 
campaigning. Our advantage will endure by empowering our warfighters 
and acquisition and sustainment workforce and by expanding our many 
interagency and international partnerships. We will work to sustain and 
grow that advantage by achieving seamless integration, communication, 
and collaboration with allies and partners. We invest in the European 
and Pacific Deterrence Initiatives while supporting our industrial base 
partners here at home. Focused on mission readiness, we are increasing 
the Department's resilience to climate change and reducing adverse 
impacts on the environment. We promote active campaigning through our 
operations, exercises, engagement, and interoperability with our allies 
and partners across the world.
    To address growing demands on our warfighters, the DON is investing 
in lethal capabilities across a broad spectrum of platforms and 
programs. Since the start of fiscal year 2021 we have delivered nine 
highly capable warships to the Fleet including two Arleigh Burke-class 
destroyers (DDG 51), two Virginia-class submarines (SSN), four Littoral 
Combat Ships (LCS), and one San Antonio-class amphibious transport 
dock. Today, the Navy has 76 ships under contract with 53 ships in 
construction. We expect to take delivery of seven more ships and plan 
to award contracts for eight more ships during fiscal year 2022. On the 
aviation side, we have delivered 94 new aircraft for Navy and Marine 
Corps, improving capability and enabling the divestiture of less 
affordable legacy systems.
    The Navy continues to mature critical warfighting investments. USS 
Gerald R Ford (CVN 78) successfully completed its post-delivery testing 
and trials period in April 2021 and Full Ship Shock Trials in August 
2021. USS Gerald R Ford also completed its post-Shock Trial 
availability, turned over all Advanced Weapons Elevators to the crew, 
achieved Initial Operational Capability (IOC) on December 22, 2021, and 
is preparing for its first deployment later this year. fiscal year 2021 
saw the initial squadron standup of the EA-18G Growler Capability 
Modification fielding a modern electronic attack capability while 25 E-
2D aircraft received critical radar and network upgrades. VFA-97 became 
the third operational F-35C squadron and the second deployment of CMV-
22 is underway today. Unmanned advancements continued forward with the 
MQ-25 prototype completing 36 sorties and 124.5 flight hours, achieving 
the first ever unmanned-manned aerial refueling test flights with the 
FA-18E/F, E-2D and F-35C. The MQ-25 also conducted at-sea on-deck ship 
compatibility testing aboard USS George H W Bush (CVN 77), yielding 
valuable early test data and increasing program confidence in the low 
rate initial production (LRIP) design.
    The Marine Corps has implemented significant modernization efforts 
through the continued implementation of Force Design 2030 initiatives. 
Through congressional support, the Marine Corps is fielding enhanced 
sensor platforms, fires capabilities, and communications networks while 
investing in the continued research and development of enabling 
technologies. These capabilities are directly tied to the 
implementation of new operational employment concepts, such as A 
Concept for Stand-in Forces, and are making the Marine Corps lighter 
and more lethal to win throughout the competition continuum.
    Readiness remains a clear Department priority and fiscal year 2023 
continues prior year gains on ship and aircraft maintenance efforts to 
improve overall department readiness. By taking a more forward-looking 
approach to maintenance and modernization of our ship and aviation 
platforms, the DON can grow the operational capacity of the Navy. We 
will communicate future demand signals to our industrial partners 
through several government initiatives, including contract bundling, 
improved maintenance planning through Availability Duration Scorecard 
(ADS) 3.0, awarding contracts at availability start minus 120 days (A-
120), improved long-lead time material acquisition, and Other 
Procurement, Navy (OPN) Pilot expansion. These initiatives will help 
stabilize the industrial base and ensure sufficient capacity.
    For example, the Navy is continuing to see positive results from 
the pilot program to fund CNO Availabilities with multi-year OPN 
funding. Established by Congress in fiscal year 2020 to fund Pacific 
Fleet availabilities, the pilot was expanded to U.S. Fleet Forces 
availabilities in fiscal year 2022.
    The OPN Pilot allows the Navy to implement commercial best 
practices for ship maintenance and more efficiently use surface ship 
maintenance funding through the entirety of the fiscal year without the 
pressure of expiring funds. The Navy is continuing to demonstrate 
significant improvement in ship maintenance execution, and efforts such 
as OPN-funded availabilities are helping maintain the positive momentum 
to ensure ships are delivered to the Fleet on time with work completed 
in full.
    Unmanned systems will continue to play a key part in future 
Distributed Maritime Operations (DMO), and there is a clear need to 
field affordable, lethal, scalable, and connected capabilities. The 
Unmanned Campaign Framework continues as our strategy for fielding the 
DON's future unmanned capabilities into the fleet. The Department will 
take advantage of near-term opportunities for rapid experimentation, 
while investing in enabling technologies to include autonomy, land-
based testing sites, high-reliability engineering systems, and networks 
in conjunction with Project Overmatch. The Framework directs an 
enterprise-wide partnership with industry and academia to coordinate 
efforts and resources, while also taking advantage of innovation 
opportunities such as U.S. Naval Forces Central Command's International 
Maritime Exercise 2022.
The Fiscal Year 2023 President's Budget Request
    The President's fiscal year 2023 budget advances key defense 
priorities. It resources a Navy and Marine Corps Team that supports the 
2022 National Defense Strategy (NDS) priorities of integrated 
deterrence, campaigning, and building enduring advantages, with an 
agile and ready joint force. Moreover, the Secretary of the Navy's 
enduring priorities of strengthening maritime dominance in defense of 
our Nation, empowering our people, and strengthening strategic 
partnerships is nested under this guidance and resourced to achieve 
these effects.
    The fiscal year 2023 budget request is analytically driven to meet 
our strategic goals, while balanced with reform targeted at maximizing 
the value of every dollar. The budget reflects the Department's 
commitment to building and sustaining a modernized naval force and 
operating forward with sufficient capability, size, and mix to deter 
and defend. Fiscal year 2023 continues key investments in advanced 
technologies and modernization of our current Seapower and Projection 
forces, prioritizing the recapitalization of the strategic ballistic 
missile submarine, the Columbia-class, which remains the Department's 
top acquisition priority. The budget requests full funding for two 
DDGs, two SSNs, one FFG, one LPD Flight II, one T-AO, and one T-ATS, 
while providing the next increment of funding for construction of the 
Columbia-class SSBN, CVN 80, CVN 81, and LHA 9. The budget request 
procures a total of 96 fixed-wing, rotary-wing, and unmanned aircraft, 
and completes procurement of E-2D Hawkeye, while maturing production 
and maintaining vital aviation platforms to support a modernized and 
tactically diverse fleet.
    The fiscal year 2023 budget prioritizes readiness recovery, 
continuing prior year gains on ship and aircraft maintenance efforts to 
improve overall department readiness. The Department is investing in 
the Shipyard Infrastructure Optimization Program (SIOP) to provide 
modernized public maintenance facilities needed to sustain the future 
fleet. The request continues investment to develop improved war-
fighting capabilities across all domains and distributed maritime 
operations, investing in long range fires and hypersonic weapons as 
well as increases to unmanned platforms. This budget also prioritized 
Force Design 2030 programs, such as the Navy/Marine Corps Expeditionary 
Ship Interdiction System (NMESIS) and MQ-9A aircraft.
    The fiscal year 2023 budget makes investments to expand the 
industrial base partnerships that support our submarine and weapon 
systems and that are critical to our strength and capacity. This 
includes targeted investments to shipbuilder infrastructure, supply 
chain capacity, strategic outsourcing, workforce training, and new 
technologies.
Summary
    Thank you for the strong support this Subcommittee continues to 
provide our sailors and marines. The Department of the Navy continues 
to deliver platforms with the capability to address today's maritime 
challenges while investing in future capabilities to address tomorrow's 
security environment. With the support of Congress, we will continue 
efforts to develop and field platforms, systems, and technologies to 
provide sailors and marines the capability overmatch required in this 
era of strategic competition.
    Programmatic details regarding Navy and Marine Corps capabilities 
are summarized in the following section.
     u.s. navy and marine corps seapower capabilities ship programs
Submarines
    Ballistic Missile Submarines, coupled with the TRIDENT II D-5 
Strategic Weapons System (SWS), represent the most survivable leg of 
the Nation's strategic arsenal and provide the Nation's most assured 
nuclear response capability. Modernizing this Sea Based Strategic 
Deterrent with both the Columbia and TRIDENT D5 Life Extension 2 
(D5LE2) programs will ensure the effectiveness and responsiveness of 
Navy's leg of the strategic Triad through the 2080s.
    Funding for the lead ship and future Columbia-class submarines 
remains the Department's top acquisition priority. The lead ship 
started construction in October 2020 and is on track to deliver to pace 
the retirement of our current ballistic missile submarines, deploying 
for its first patrol in 2030. The fiscal year 2023 budget supports the 
final year of incremental funding of the lead ship, advance procurement 
and advance construction of follow-on Columbia-class submarines, and 
continued class design efforts. General Dynamics Electric Boat and 
Huntington Ingalls Industries-Newport News continue to procure 
component and commodity material to maintain and grow the submarine 
industrial base as the program builds to annual procurements beginning 
in fiscal year 2026. Supporting overall program risk reduction and 
required schedule execution to minimize strategic deterrence coverage 
gaps, the fiscal year 2023 budget request continues to fund Continuous 
Production of missile tubes, propulsors, and various critical 
components thanks to authorities provided by Congress. Columbia's 
missile tube production is tightly coordinated with procurement of 
Common Missile Compartment material for the U.K. Dreadnought-class 
submarines being executed under the Polaris Sales Agreement. The budget 
request also funds multi-program material procurements to achieve best 
value across nuclear shipbuilding programs and Production Back-up Units 
to reduce schedule risks.
    The Navy delivered two Virginia-class submarines so far this year, 
including the second and third Block IV ships, the future USS Oregon 
(SSN 793) and future USS Montana (SSN 794). Looking forward, the second 
ship of Block V introduces the Virginia Payload Module, and all Block V 
ships will incorporate Acoustic Superiority program improvements. While 
construction is progressing on the remaining Block IV and early Block V 
submarines, we are not meeting the sustained two per year delivery 
objective. The Navy is working closely with industry to regain cadence 
and implement strategic improvements, including continued shipbuilder 
and supplier development initiatives. The fiscal year 2023 budget 
includes funding to procure two Block V Virginia SSNs as well as 
funding to address Virginia-class parts obsolescence, and continued 
development of capabilities and technologies for future Blocks.
    The Navy is taking proactive steps to improve the nuclear 
shipbuilding industrial base capability, capacity, quality, and 
workforce, which is essential for on-time delivery of one-per-year 
Columbia and two-per-year Virginia production (1+2). In 2021, the Navy 
partnered with the Office of the Secretary of Defense on a study to 
assess the submarine industrial base's ability to design, construct, 
and deliver submarines at rates consistent with current and future 
shipbuilding plans. The fiscal year 2023 budget begins critical 
investments identified in the study, to execute focused actions to 
reach and sustain the annual 1+2 construction cadence. The investments 
address shipbuilder infrastructure, supplier development for 
capability/capacity, scaling of new technologies, workforce trade skill 
gaps and constraints, expanding productive capacity via strategic 
outsourcing, and government oversight of expanded industrial base 
efforts. In fiscal year 2022 the Navy is using the $130 million 
provided for industrial base support in the Columbia funding line to 
continue to execute supplier development efforts to improve the 
capability, capacity and stability of the industrial base, as well as 
the $35 million provided in the Virginia funding line for submarine 
industrial base / support facilities infrastructure at submarine 
production shipyards.
    The Future Attack Submarine (SSN(X)) design intent is to maintain 
our asymmetric advantage in the undersea domain, ensuring assured 
access for the Joint Force in future decades. The Navy envisions SSN(X) 
to capitalize on Seawolf speed and payload capacity, Virginia acoustic 
superiority and sensors, and Columbia operational availability. SSN(X) 
is intended to retain multi-mission capability and sustained combat 
presence in denied waters, with a renewed priority in anti-surface 
(ASuW) and anti-submarine warfare (ASW) missions against increasing 
numbers of sophisticated threats. Design flexibility and margins in 
space, weight and power are intended to be included in the design to 
facilitate efficient integration of future capability upgrades to 
counter anticipated evolving threats. In fiscal year 2022, the Navy is 
developing an Initial Capabilities Document and beginning trades 
studies in support of the Analysis of Alternatives.
    As the Columbia design workforce requirements diminish, SSN(X) 
design efforts will ramp up, thereby maintaining the strength of our 
submarine design workforce. The Navy is targeting SSN(X) construction 
start in the mid-2030s, which should maintain a properly skilled 
production work force as Columbia serial production ramps down.
Aircraft Carriers (CVNs)
    The Navy continues to see increased reliability of the new critical 
technologies on USS Gerald R Ford (CVN 78) as it prepares for 
operational use. Having turned all 11 Advanced Weapons Elevators over 
to the crew, with over 17,000 cycles operating in port and at sea, 
Gerald R Ford achieved IOC on December 22, 2021. USS Gerald R Ford 
successfully completed its first Planned Incremental Availability in 
February 2022 and is preparing for its first employment.
    USS John F Kennedy (CVN 79) is 85 percent construction complete. 
John F Kennedy transitioned to a single-phase delivery to achieve the 
most efficient path forward and deliver a more capable and lethal ship 
to the Fleet, and is on schedule to deliver in 2024 with a complete 
combat systems suite and fully outfitted with F-35C ship modifications. 
USS Enterprise (CVN 80) construction is 15 percent complete and USS 
Doris Miller (CVN 81) completed its first cut of steel in August 2021. 
Additionally, the first CVN 80 keel unit was laid in April 2022, with a 
commemorative ceremony to occur in late summer 2022.
    The Nimitz-class Refueling Complex Overhaul (RCOH) is the full 
recapitalization of the carriers in support of the second half of their 
service life. The RCOH is refueling the ship's reactors, modernizing 
its capabilities, and repairing ship systems and infrastructure. USS 
George Washington's (CVN 73) RCOH is 94 percent complete. USS John C 
Stennis (CVN 74) is 21 percent complete. USS Harry S Truman (CVN 75) 
will begin RCOH in fiscal year 2025.
Large Surface Combatants
    Arleigh Burke-class (DDG 51) destroyers are the workhorse of the 
Fleet, with 70 ships delivered as of February 2022. Over the course of 
the fiscal year 2018 to 2022 MYP, the Navy will procure a total of 12 
Flight III DDGs, more than the planned 10 ship procurement, thanks to 
the strong support of Congress. The shipbuilders have a total of 19 
DDG-51s under contract. The budget request funds procurement of a total 
of 10 ships from fiscal year 2023 to fiscal year 2027 at two DDG 51s 
per year, while the intended MYP contract will procure nine ships with 
an option for the tenth DDG 51. Similar to the fiscal year 2018-2022 
MYP, additional annual options will be requested. Including the tenth 
ship as an option in the MYP as a ``nine plus one'' profile provides 
the flexibility to adjust procurement quantities due to potential 
changes driven by world events or production issues, while adjusting to 
force structure requirements.
    These Flight III ships will provide enhanced Integrated Air and 
Missile Defense (IAMD) with the AN/SPY 6(V)1 Air and Missile Defense 
Radar (AMDR) and AEGIS Baseline 10 (BL10). AMDR meets the growing 
ballistic missile threat by improving radar sensitivity and enabling 
longer range detection of increasingly complex threats. The program 
demonstrated design maturity through its successful completion of all 
developmental testing. AMDR is in production for delivery to support 
Flight III ships. Initial shipboard testing of the radar and combat 
system has commenced on the first DDG 51 Flight III ship, USS Jack H 
Lucas (DDG 125), which will deliver in fiscal year 2023. As part of a 
two-phased testing approach, IOC in fiscal year 2024 will include Air 
and Missile Defense Commander (AMDC) capability with core BMD 
capability (Long-Range Search and Track and Sea Based Terminal). This 
aligns with Fleet priorities for Flight III to replace Cruisers in the 
AMDC role. Follow-on testing will support the IAMD key performance 
parameters with completion of Initial Operational Test and Evaluation 
(IOT&E), which culminates with Flight Test Mission (FTM)-42 in the 
fourth quarter of fiscal year 2027. The Flight III leverages the proven 
Flight IIA platform with modifications for hull stability, cooling 
(350-ton AC plants) and power (4 MW generators / 4160 VAC) to 
accommodate AMDR.
    Aligned with congressional intent, risk reduction integration 
testing of critical Flight III systems (AMDR, BL10, and power systems) 
is ongoing. BL10 is being integrated with a LRIP SPY-6 array and power 
conversion equipment at a land based development site to buy down risk 
of first time integration at the waterfront aboard DDG 125. Land based 
testing of the electric plant concluded in January 2022, initiating 
integration and testing of the Machinery Control System software. Land 
based integration activities continue to groom ``first-of'' issues in 
advance of shipboard testing offering significant risk reduction for 
DDG 125 ship production milestones. The first combat system software 
incremental load was delivered to DDG 125 in February 2022.
    The Zumwalt-class (DDG 1000) guided missile destroyers provide 
multi-mission surface combatants designed to provide long-range, 
offensive surface strike capabilities. The DDG 1000 program continues 
to accomplish first-time integration of unique combat systems elements, 
complete Post Delivery Test and Trials (PDT&T), train the crew on ship 
functions, and demonstrate operational performance. USS Zumwalt (DDG 
1000) and USS Michael Monsoor (DDG 1001) are both homeported in San 
Diego, California. The program is leveraging both ships to execute test 
and evaluation requirements in accordance with the Test and Evaluation 
Master
    Plan with focus on Air Warfare, Surface Warfare, and Strike Warfare 
on DDG 1000; and ASW and Aviation on DDG 1001. This allows for 
simultaneous activation and testing of multiple warfare areas. IOC will 
occur following completion of PDT&T requirements. The Navy is 
evaluating the timeline to achieve IOC with the current estimate in the 
first quarter of fiscal year 2023. Planned construction and Hull, 
Mechanical, and Electrical (HM&E) test and activation of USS Lyndon B 
Johnson (DDG 1002) at General Dynamics Bath Iron Works is complete and 
the ship has transitioned to Huntington Ingalls Shipbuilding for 
completion of Combat Systems installation as part of the planned single 
delivery approach. Final delivery is expected after completion of the 
combat systems installation in fiscal year 2024. The Zumwalt-class is 
also planned for integration with Navy's Conventional Prompt Strike 
hypersonic weapon system in fiscal year 2025.
    DDG(X) will be the next enduring large surface combatant that 
follows the highly successful DDG 51 Class. Similar to DDG 51's 
evolution from CG 47, the initial flight of DDG(X) is a new hull form 
built around the DDG 51 Flight III's AMDR with AEGIS BL10. DDG(X) Top 
Level requirements were approved by the CNO in December 2020 and were 
based on an informed requirements process executed by a cross 
functional team of requirements, acquisition, naval architects, and 
cost estimators to deliberately reduce execution risk. DDG(X) will 
provide the flexibility and margins (space, weight, power, and cooling 
reservations) to accommodate required future capacity and capability 
upgrades to counter evolving threats. DDG(X) is currently focused on 
Concept Refinement and transition into Preliminary Design with industry 
partners. The Navy is committed to a smooth and successful transition 
from DDG 51 to DDG(X) starting around fiscal year 2030. The transition 
will preserve the critical shipbuilding and supplier industrial base by 
executing a collaborative design process with current DDG 51 shipyards 
and transitioning to a proven limited competition model between these 
shipyards at the right point in ship construction.
    The fiscal year 2023 request fully funds the required land-based 
testing efforts over the FYDP to reduce critical risks with the 
Integrated Power System and new hull form identified by the Senior 
Technical Authority in accordance with prior congressional direction. 
The Navy is incorporating lessons learned from prior platform 
transitions to deliberately reduce execution risk and position industry 
for a successful transition, by establishing informed requirements, use 
of non-developmental technologies, proven combat system elements, 
collaborative design process, and robust land based testing.
    To date, Congress has provided a total of $335 million to support 
the surface combatant supplier base and to improve surface ship 
shipyard infrastructure. The Navy has awarded approximately $168 
million of surface combatant supplier base funding across 51 suppliers 
and is working with industry for targeted investments in shipyards and 
the supplier base, supporting industry's capital expenditure strategies 
to increase efficiency.
Small Surface Combatants
    The Constellation-class Frigate (FFG 62) is the evolution of a 
proven parent design built to Naval combatant design standards with 
increased lethality, survivability, and improved capability to support 
the full range of military operations as part of a more lethal Joint 
Force. Frigate requirements have been validated and were refined 
through early engagement with industry in a collaborative Conceptual 
Design process that completed in June 2019. The FFG 62 program is 
managing development risk by combining proven ship designs with mature, 
best-of-breed Government Furnished Equipment designated combat system 
elements. The Navy is establishing a FFG 62 Land Based Engineering Site 
to reduce integration risks and test power and propulsion systems. The 
first two ships, the future USS Constellation and USS Congress, are 
under contract, with the lead ship to start construction in fiscal year 
2022. The third ship, the future USS Chesapeake, will go on contract in 
fiscal year 2022. The Navy is confident in the capability FFG 62 will 
deliver to the Fleet, especially its ASW capabilities against modern 
threat submarines.
    The LCS program has delivered 26 of the 35 total funded ships. The 
Navy has installed Naval Strike Missile (NSM) on six Independence 
variant (IND) LCS platforms and continues to install NSM on LCS hulls 
this year and in the future, extending the offensive capability of the 
ship. Additionally, procurement of material for Lethality and 
Survivability (L&S) upgrades is on track for the first installations in 
fiscal year 2024. Development of the L&S Common Combat System has begun 
and will support transition from shipbuilder procured contractor 
furnished equipment combat systems to program of record government 
furnished equipment. Eighteen LCS will have conducted their inaugural 
deployments to 5th/6th, 7th, or 4th Fleet by the end of fiscal year 
2022, providing a significant increase in assets for Fleet Commanders 
which will continue to grow as the remaining ships are delivered to the 
Fleet.
Large Deck Amphibious Warfare Ships
    Amphibious warfare ships remain a key component of the Nation's 
global forward presence, supporting crisis and contingency response 
missions in order to provide decision space for our Nation's leaders. 
These ships and their embarked marines and sailors strengthen 
relationships with our allies and partners on a daily basis to deter 
strategic competitors. In order to ensure the future naval 
expeditionary force is maximized for effective combat power, while 
reflecting and supporting the force structure changes addressed in 
USMC's Force Design, the Secretary of the Navy directed an amphibious 
requirement study that will inform refinement of amphibious ship 
procurement plans and shipbuilding profiles, as well as inform the 
ongoing overall Naval Force Structure Assessment.
    The America Class Landing Helicopter Assault (LHA 6) is the key 
platform of the Expeditionary Strike Group/Amphibious Ready Group of 
the present and future. The LHA 6 Class program provides agile and 
versatile multi-mission platforms with increased lethality, command and 
control, and survivability. Among other capabilities, these ships host 
the fifth-generation F-35B Joint Strike Fighter aircraft that is 
critical to the high-end fight.
    USS Tripoli (LHA 7) delivered in February 2020 and is preparing for 
its maiden deployment in 2022. Bougainville (LHA 8) is 46 percent 
construction complete with 82 percent of units erected to support a 
fiscal year 2025 delivery. LHA 8 will include a well deck to increase 
operational flexibility and includes a reduced island structure that 
increases flight deck space to enhance aviation capability. LHA 9 has 
commenced long lead-time material procurement and preparing to start 
ship fabrication in fiscal year 2023. The Department plans to procure a 
future LHA, replacing the capability lost with the decommissioning of 
the Bonhomme Richard (LHD 6).
Small Deck Amphibious Warfare Ships
    San Antonio-class Landing Platform Docks (LPD 17) provides the 
ability to embark, transport, and land elements of a landing force by 
helicopters, tiltrotor aircraft, landing craft, and amphibious 
vehicles. The San Antonio Class LPD will continue to support the 
embarkation of Marine Expeditionary Units (MEUs) and facilitate 
Amphibious Ready Groups well into the future, as these ships provide 
strategic mobility, force projection, and the ability to campaign 
across the globe.
    USS Fort Lauderdale (LPD 28) delivered in March 2022, while USS 
Richard M McCool Jr (LPD 29) is 79 percent complete and planned for 
delivery in the fourth quarter of fiscal year 2023. LPD 28 and LPD 29 
leveraged many design innovations and cost reduction initiatives, 
including the first install of the Enterprise Air Surveillance Radar 
(EASR) on LPD 29, as the class transitions to Flight II. The first 
Flight II ship, the future USS Harrisburg (LPD 30), is 20 percent 
complete with a planned delivery in fiscal year 2025. In addition, the 
Navy awarded the future USS Pittsburgh (LPD 31) Detail Design and 
Construction contract in April 2020 and start of ship fabrication is 
planned for later this year. Following advanced procurement in fiscal 
year 2022, this year's budget requests the remainder of the funding for 
LPD 32.
Connectors
    The Ship to Shore Connector (SSC) program provides the capability 
to rapidly move assault forces from ship to shore within the littoral 
operational environment to accomplish Unified Campaign Plan missions 
and ensures the Joint Force Commander's ability to conduct amphibious 
operations and operate over the high water mark, including movement 
over ice, mud, rivers, swamps and marshes. SSC provides the functional 
replacement for the Landing Craft, Air Cushion (LCAC) Class of craft, 
which began reaching end of extended service life in 2015. The 
Department remains committed to fielding SSC and has addressed program 
developmental setbacks and commensurate reductions in procurement 
quantities in fiscal year 2020 and fiscal year 2021. The 2022 
Consolidated Appropriations Act added funding for three additional SSC 
for five total. In fiscal year 2023 the Navy requests authority to 
enter into one or more block buy contracts for up to 25 SSCs. The 
initial block buy supported by the fiscal year 2023 President's Budget 
would be for 10 SSCs from fiscal year 2023 through fiscal year 2027.
    The Navy has contracted for 24 craft. The first two craft, LCAC 101 
and 102, have been delivered to the Fleet in Little Creek, VA. The Navy 
is also replacing its aging Landing Craft Utility (LCU) fleet with the 
LCU 1700 program which will restore LCU's complementary heavy lift 
payload in a more rugged, reliable, and affordable independent 
operations capable platform. While no LCU 1700s are requested in fiscal 
year 2023 as the shipbuilder works off their backlog, LCU 1700 
procurement is planned to continue in fiscal year 2024.
Expeditionary, Auxiliary, and Other Vessels
    Expeditionary support vessels are flexible platforms used across a 
broad range of military operations in support of multiple operational 
phases. The Light Amphibious Warship (LAW) will complement amphibious 
warfare ships and will provide added surface maneuver, mobility, 
sustainability, and survivability for Marine Corps Stand-in Forces in 
strategic competition. Preliminary Design efforts began in January 2022 
to help inform requirements through industry engagement. Upcoming 
analysis will focus on requirements maturation and refinement of the 
concept of operations for integration with the Marine Littoral Regiment 
capabilities in support of the Stand-in Force. The Department is 
driving towards a lead ship contract award no later than fiscal year 
2025. These smaller ships are critical enablers of the USMC Force 
Design, but in no way replace traditional amphibious warfare ships. 
Both types of ships are required to posture the Naval Expeditionary 
Force to serve as a Stand-in Force and respond to global crisis.
    The Expeditionary Sea Base (ESB) acts as a mobile sea base, 
providing prepositioned equipment and sustainment with flexible 
distribution to support deployed forces. fiscal year 2022 
appropriations included the addition of one ESB ship. The Navy 
commissioned USS Miguel Keith (ESB 5) on May 8, 2021. The ESB 6 and ESB 
7 are planned for delivery in fiscal year 2022 and fiscal year 2024.
    Expeditionary Fast Transport (EPF) is a shallow draft, all 
aluminum, commercial-based catamaran capable of intra-theater personnel 
and cargo lift. EPF provided combatant commanders high-speed sealift 
mobility with inherent cargo handling capability and agility to achieve 
positional advantage over operational distances. Apalachicola (T-EPF 
13), Cody (T-EPF 14), and Point Loma (T-EPF 15) are under construction 
with deliveries planned in fiscal year 2022, fiscal year 2023, and 
fiscal year 2024, respectively. T-EPF 14 and T-EPF 15 are Flight 2 
Variants with enhanced medical capabilities that will improve Navy's 
ability to provide expeditionary medical support to forces conducting 
DMO and Expeditionary Advance Base Operations (EABO) in contested 
environments. Fiscal year 2022 appropriations included the addition of 
one EPF Flight 2 and an Expeditionary Medical Ship (EMS). EMS is an EPF 
variant that will provide expanded Role 2 Enhanced medical capabilities 
(Flight 2A). Given the flexibility inherent in fast transports, 
additional missions for the fast transport vessels are being evaluated.
    The fiscal year 2023 budget request continues construction of the 
John Lewis (T-AO 205) class fleet replenishment oiler to recapitalize 
the T-AO 187 Class, which has been in-service since the mid-1980s. T-
AOs are the primary fuel pipeline that sustains Carrier Strike Groups 
and Expeditionary Strike Groups, enabling them to project power for 
extended periods at sea, reducing the reliance on foreign ports for 
sustainment and increasing time on station to conduct operations. T-AOs 
are closely integrated with commercial maritime industry due to the use 
of U.S. commercial standards for construction and maintenance as well 
as the use of merchant mariners to crew them. T-AO 205 class brings 
additional capability and capacity to the Fleet through a 20-ship 
program of record. USNS John Lewis, the lead ship of the class, is 
planned for delivery in May 2022. T-AO hulls 206 to 208 are currently 
under construction. Construction on the fifth ship, the future USNS 
Lucy Stone (T-AO 209), will begin in first quarter of fiscal year 2023. 
The 2022 Consolidated Appropriations Act added funding for one 
additional T-AO and Affordability Initiatives.
    Navajo, the first of a new class of combined towing, salvage, and 
rescue (T-ATS) ship is scheduled to deliver in late 2023. T-ATS is 
based on existing commercial towing offshore support vessel design, and 
will provide ocean-going tug, salvage, and rescue capabilities to 
support Fleet operations. The Navy received funding for two ships in 
fiscal year 2022 and requests funding for the final ship in the class 
in fiscal year 2023.
    The Detail Design & Construction contract of the fiscal year 2022 
funded lead ship of a new class of Auxiliary General Ocean Surveillance 
ships (T-AGOS 25 class) is scheduled to award in fiscal year 2023, with 
serial production planned to begin in fiscal year 2025. The T-AGOS 25 
ships will replace the T-AGOS 19 and T-AGOS 23 class ships. These 
vessels are critical to ASW and other tactical and strategic missions.
Strategic Sealift
    The Navy continues to act on Congressional authorities to address 
strategic sealift readiness, executing the sealift recapitalization 
plan developed in cooperation with USTRANSCOM. This three-part approach 
includes acquiring used commercial vessels for the surge sealift force, 
constructing new ships for the Maritime Prepositioning Force (MPF), and 
extending the service life of the most viable platforms. On March 21, 
2022, MARAD completed the purchase of the first used vessel, the CAPE 
Arundel, and will complete the purchase of the second used vessel in 
April 2022. Throughout 2022, the buy-used program will conduct the 
conversion of the first two vessels for service with the Ready Reserve 
Force and will purchase an additional five used vessels; two of which 
are planned for conversion in 2022.
    The fiscal year 2023 budget supports readiness and recapitalization 
commitments by requesting two additional used vessel procurements per 
year over the FYDP, improving the material readiness of existing ships, 
retiring the least-ready vessels, and continuing to extend the service 
life of appropriate vessels. The newly procured used sealift vessels 
will continue their conversion and upgrade work to meet baseline 
readiness requirements of the Ready Reserve Force ships maintained in 
Reduced Operating Status. This work will be performed by U.S. 
shipyards.
    The Navy and U.S Marine Corps are coordinating revision of MPF Next 
Generation requirements and transition plans. Navy will introduce an 
initial capabilities document into the JCIDS process in fiscal year 
2022 to validate MPF Next Generation requirements that will begin the 
process for new construction ships. Sealift new construction is most 
appropriate for the replacement of fully operational status ships in 
the MPF which support Marine Corps.
Sustainment, Modernization, Service Life Extensions and Divestments
    Maintenance and modernization of the Navy's fleet ensures Fleet 
Commanders have the necessary assets with the required capabilities to 
respond to operational demands. As a collective maintenance and 
modernization community, the Navy is continually working to reduce 
deferred maintenance backlogs and deliver ships back to the Fleet on 
time and with all required work completed. Key efforts are underway 
that span the entire process of work package planning, contracting, and 
waterfront execution, including taking a Performance to Plan approach 
to improving work package quality, level-loading ports to establish 
predictability and stability for our industry partners, providing 
government equipment and material earlier, streamlining Navy inspection 
points, and reviewing waterfront roles and responsibilities to minimize 
unnecessary churn and delays in decision making. By providing 
predictable and stable workload to private shipyards, the Navy is 
enabling the efficient use of repair capacity available across the 
ports and allowing industry to understand future workload forecasts and 
identify opportunities for targeted infrastructure investments. 
Additionally, the Navy has completed an exhaustive thorough review into 
the USS Bonhomme Richard fire and is taking appropriate actions to 
avoid similar events on Navy ships completing repair, maintenance, and 
modernization availabilities.
Modernization efforts ensure the Navy's in-service Fleet has relevant 
        combat capability
    for our Fleet Commands. The fiscal year 2023 budget requests 
funding for the modernization of four destroyers that will ensure 
sustained combat effectiveness, mission relevancy, and enable the AEGIS 
Fleet to achieve their full expected service lives. The budget funds 
the first procurement of a SPY-6 variant for back-fit on in-service 
DDGs, commencing in fiscal year 2026. The Navy is incorporating lessons 
learned from Cruiser Modernization in the availability planning for DDG 
Modernization availabilities in the areas of contract type, system lay-
up and reactivation, crew manning, and training. Additionally, stand-
alone and incremental modernization will continually be reviewed and 
aligned to provide the necessary capability and mission effectiveness 
to defeat our adversaries throughout the life cycle of DDGs.
    In this era of strategic competition, the Navy's submarine force 
provides an asymmetric warfighting advantage. Ensuring our submarines 
are maintained and modernized to dominate the undersea battlespace is 
an enduring Navy priority. The Navy is committed to seeking balance of 
the maintenance workload within the public and private shipyards, as 
well as maintaining a healthy industrial base for both submarine 
maintenance and new construction. To that end, the Navy launched a 
study to improve fast attack submarine (SSN) material availability that 
will include a 15-Year SSN Maintenance Plan outlining approaches to 
optimize submarine repair at all shipyards, including private-sector 
maintenance execution. The Navy will continue to work with our industry 
partners to improve cost and schedule performance for submarine 
maintenance, providing valuable maintenance surge capacity.
    To free up additional resources for priorities more closely aligned 
to the NDS, the fiscal year 2023 budget proposes to decommission 24 
ships in fiscal year 2023. Of these 24 ships, eight ships are at or 
beyond expected service life (ESL) and 16 ships are prior to ESL (1 CG, 
4 LSD, 9 LCS, 2 ESD). For the former eight ships, inactivation in 
fiscal year 2023 is a normal part of the end of their lifecycle. For 
the latter 16 ships, the Navy closely reviewed operational needs and 
fleet requirements, and ultimately made the difficult decision that 
this force structure is too costly to operate and sustain and no longer 
provides the capabilities needed to best address the current and future 
national security challenges. Decommissioning less capable ships before 
the end of their expected service life provides critical resources to 
invest in procurement and development of higher capability platforms. 
The Navy is trading near-term capacity for long term capability, and 
the fiscal year 2023 budget does not resource capacity beyond what can 
be reasonably sustained - manning, training, maintenance, ordnance, 
operations, and future modernization.
    The CG and LSDs are in poor material condition and require 
significant resources to continue to maintain, modernize, and operate 
them. The substantial cost to retain these ships outweighs the 
potential warfighting contributions of these platforms over their 
limited remaining service life. For the LCS, the fiscal year 2023 
budget focuses the LCS class on mine countermeasures (MCM) and surface 
warfare (SUW) mission areas, eliminating the ASW mission for the class. 
The ASW Mission Package is no longer being pursued due to technical 
challenges and the forthcoming introduction of FFG 62 as a highly 
capable ASW platform. Consequently, eight Freedom-class ships are 
planned for decommission in correlation with the eight ASW mission 
packages. In addition, LCS 3 is also proposed for decommissioning 
because it remains a non-deploying test ship that is no longer needed. 
Continued retention of this ship imposes significant cost to upgrade it 
to common configuration and capability with the rest of the Fleet. The 
T-ESD ship class is less relevant for peer military competition, as 
they were designed for non-contested environments to support ship-to-
shore craft movements. These T-ESDs support the maritime prepositioning 
force. In the fiscal year 2023 budget, Maritime Preposition Squadron 
Two will be placed into reduced operating status (ROS).
Shipyard Infrastructure Optimization Program (SIOP)
    The Shipyard Infrastructure Optimization Program is essential to 
supporting the future needs of the Navy's nuclear submarine and 
aircraft carrier force. With the tremendous support received from 
Congress, to include $1.6 billion appropriated in fiscal year 2022, the 
program is advancing several key initiatives. The Navy appreciates the 
Congressional support provided in the fiscal year 2022 appropriation to 
derisk the construction schedule for the new Multi-Mission Dry Dock at 
Portsmouth Naval Shipyard, critical for the east-coast maintenance 
capability for the Virginia-class submarines. In fiscal year 2022, the 
second increment of digital modeling will commence which will inform 
project design and construction. Area Development Plans will be 
completed at each public shipyard across the FYDP utilizing the digital 
modeling output. Additionally, funds will be utilized to begin project 
design for a Ford-capable dry dock at Puget Sound Naval Shipyard 
(PSNS), award the construction contract for DD8 Salt Water Upgrades at 
Norfolk Naval Shipyard (NNSY), award several restoration and 
modernization projects, and purchase capital equipment to replace aged 
elements to revitalize maintenance shop capabilities. Funding requested 
in fiscal year 2023 budget requests for SIOP includes $8.3 billion 
across the FYDP, which includes construction start of a new Multi-
Mission Dry Dock at Pearl Harbor Naval Shipyard, critical for the west-
coast maintenance capability of the Virginia-class submarines.
    To ensure disciplined execution of construction efforts managed 
within the program while maintaining uninterrupted support to the 
Fleet, the DON has established a Program Executive Office for 
Industrial Infrastructure (PEO II) affiliated with the Naval Facilities 
Engineering Systems Command, and reporting directly to the Assistant 
Secretary of the Navy for Research, Development, and Acquisition. PEO 
II and the Program Management Office (PMO 555) are implementing agile 
acquisition methodologies to coordinate the programmatic execution of 
this complex effort. PEO II also remains integrated with the Naval Sea 
Systems Command and the Naval Sustainment System - Shipyards (NSS-SY) 
efforts to ensure that required ship maintenance at the shipyards is 
not impacted by SIOP efforts.
    The program remains committed to applying lessons learned and, when 
applicable, applying industry best practices to an iterative process 
that utilizes industrial modeling and simulation data to inform program 
decisions that can improve Fleet operational availabilities. This 
process and ongoing coordination, across the major stakeholders, will 
ensure that thoughtful and informed actions toward optimization are 
made at the Nation's public shipyards. SIOP is creating momentum as a 
cross-organizational initiative committed to creating predictable 
delivery of critical infrastructure for the four public shipyards of 
the future.
Unmanned Surface and Undersea Vehicles
    The DON continues to experiment, develop and deliver unmanned 
surface and undersea capabilities to augment the manned force. These 
capabilities will increase capacity, standoff, reach, and protection of 
our manned platforms.
    The Navy's Medium and Large Unmanned Surface Vessels (MUSV/LUSV) 
are a key element of the Future Surface Combatant Force that support 
the NAVPLAN ``Capacity'' priority to deliver a larger, hybrid fleet of 
manned and unmanned vessels. These USVs will expand Intelligence, 
Surveillance, and Reconnaissance (ISR) advantage and add missile 
magazine depth. Our fiscal year 2023 efforts will execute a deliberate 
development plan to include reliable Hull, Mechanical and Electrical; 
advanced networks and radios; common core USV Combat System; vessel 
control software; sensory perception and autonomy; and platform and 
payload prototyping.
    In February 2022, the Navy assumed ownership of the two Strategic 
Capabilities Office Overlord vessels for continued experimentation and 
learning. Of significant note, the Navy accumulated over 4000 hours and 
47,000 nautical miles of autonomous mode operations to include teaming 
with other manned ships during fiscal year 2021 through March 2022. 
Experimentation with the Overlord vessels will continue to inform 
development of MUSV/LUSV.
    By the end of fiscal year 2023, Navy will have an operational MUSV 
Land Based Test Site, will have initiated LUSV land based testing, and 
will operate six USV prototypes: three of the four Overlord USVs 
(OUSV), one MUSV prototype, Sea Hunter and Sea Hawk. Additionally, the 
first autonomy enabled EPF-13 will commence sea trials in July 2022 and 
be delivered at the end of fiscal year 2022 to support EABO 
experimentation and CONOPs development.
    The MCM USV program includes the development and production of MCM 
USV craft and Payload Delivery Systems to deliver multiple capabilities 
to meet MCM Mission Package requirements. Mine sweeping is accomplished 
leveraging the mature craft and sweep payload developed for the 
Unmanned Influence Sweep System program that completed IOT&E in June 
2021 and Underwater Explosive testing in the first quarter of fiscal 
year 2022. Payload integration between the same mature craft and the 
AN/AQS-20 towed sonar has completed and technical evaluation is 
currently in progress, which will provide the mine hunting capability. 
The Barracuda program is the future mine neutralizing capability in 
early development, with plans to integrate onto the MCM USV.
    The Navy continues to invest in a family of Unmanned Undersea 
Vehicles (UUVs) to aid in maintaining undersea domain superiority. 
These investments will expand Navy reach and persistence by augmenting 
manned platform capacity with unmanned autonomous systems. The Navy has 
begun fabrication of Orca, Extra Large Unmanned Undersea Vehicle 
(XLUUV), a pier-launched UUV capable of carrying large payloads, and 
anticipates delivery of the Test and Evaluation asset in Q3 of fiscal 
year 2022. The Large Displacement Unmanned Undersea Vehicle which will 
support Subsea and Seabed Warfare and Intelligence Preparation of the 
Operating Environment capabilities delivered the first in class Phase 1 
UUV in Q2 of fiscal year 2022, and has commenced in-water testing. The 
Navy is taking a deliberate pause on LDUUV Phase 2 to realign Subsea 
and Seabed Warfare and hostability requirements.
    The Navy delivered the last three, of nine, Dry Deck Shelter 
variant Razorbacks to UUVRON-1 in October 2021. These are the first 
Program of Record submarine launched and recovered UUVs. A competitive 
RFP was issued in fiscal year 2020 for production of a Medium UUV that 
supports both the submarine torpedo tube launched and recovered 
Razorback Intelligence Preparation of the Operating Environment 
mission, as well as the Maritime Expeditionary MCM UUVs mission. The 
Navy anticipates awarding an Engineering Development Model contract in 
the third quarter of fiscal year 2022.
    Lionfish is a small lightweight highly portable vehicle that can be 
mission configured to support Explosive Ordnance Disposal and Naval 
Special Warfare. This effort was a partnership with the Defense 
Innovation Unit and used accelerated acquisition authorities such as 
commercial solutions opening and other transactions. Lionfish will 
include advancements to the artificial intelligence, machine learning 
(AI/ML), Automated Target Recognition, and autonomy processes currently 
fielded with the MK18 MOD2 UUV, expanding the capabilities of the 
Navy's intelligent family of UUVs. The Navy anticipates awarding a 
contract in the third quarter of fiscal year 2023 to procure 10 
vehicles.
    The Marine Corps' Long-Range Unmanned Surface Vessel (LRUSV), 
approximately 45 feet in length, is intended to be capable of 
conducting semi-autonomous maneuver in the open ocean for extended 
periods of time. LRUSVs will be capable of launching the Organic 
Precision Fires loitering munitions to engage targets on land and at 
sea, and thus increase the effective range and lethality of formations, 
such as the Marine Littoral Regiment. The Marine Corps' LRUSV and 
Organic Precision Fires are specifically purposed to enhance Naval and 
Joint Force Commanders' sea denial campaigns. Through prototyping, 
experimentation, and working closely with program vendors, the Marine 
Corps will ensure delivered capabilities are in line with funded 
requirements. The Marine Corps has accepted the first of five LRUSV 
prototypes for experimentation and analysis, and the Marine Corps 
anticipates receiving additional prototypes in the 3rd quarter of 
fiscal year 2022 for continued testing and refinement.
    The DON is continuing to invest in foundational enabling 
technologies in fiscal year 2023. These include autonomy, command and 
control, energy, and payloads, as well as establishing the 
interoperable standards and open architectures for ease of technology 
transition.
Combat Systems
    The Department continues to field the most capable and lethal 
surface and submarine combat systems in the world. AEGIS Baseline 9 
delivers unprecedented offensive and defensive capabilities, including 
simultaneous air and ballistic missile defense on destroyers and AMDC 
capability on cruisers. AEGIS Baseline 10 (BL10) with AN/SPY-6 will 
provide significant performance improvements over Baseline 9 with its 
AN/SPY-1D(V) radar, expanding the sensor coverage and enhancing the 
Navy's ability to perform the IAMD mission to defeat more advanced and 
more numerous threats with the integration of the AN/SPY-6(V)1 AMD 
system. Integration includes using a BL10 Virtualized AEGIS Weapon 
System at the AMDR test site in Hawaii, as well as BL10 integrated 
development and testing with the low-rate initial production AMDR 
system installed in the New Jersey development site.
    Traditional AEGIS development has been aligned to new construction 
platforms or major modernization efforts. Navy's shift to open 
architectures seeks to take full advantage of evolving technology to 
rapidly deliver real-time and reliable capability to the warfighter and 
to break the paradigm of hardware-software dependent deliveries. The 
current method of combat system delivery, takes 4 to 8 years to deliver 
and is tied to specific hardware set limiting proliferation to a low 
percentage of the fleet. By employing proven industry standards of 
Infrastructure as a Service, Platform as a Service, and Software as a 
Service, Navy will be able to support the delivery of iterative updates 
to the AEGIS Weapon System at speed and scale. The Navy will also 
continue investment into its first combat system software factory, The 
Forge, which will enable rapid innovation and delivery of combat system 
improvements to the fleet. Work in this area is foundational to 
developing the future Integrated Combat System. As Navy continues these 
developmental efforts, new construction and in-service Aegis Baseline 9 
and 10 ships will receive predictable upgrades in the form of 
Capability Packages.
    The Navy continues to equip its submarines with ever-evolving 
undersea combat systems, utilizing the Submarine Warfare Federated 
Tactical Systems (SWFTS) modernization process for hardware Technology 
Insertions and Advanced Processing Build software upgrades. This 
process leverages commercial off-the-shelf technologies to provide 
advanced capability improvements at lower cost. SWFTS has successfully 
delivered a progression in warfighting capabilities for decades to our 
Fleet SSNs, SSGNs and SSBNs including advancements in the combat, 
sonar, electronic warfare, and imaging systems. SWFTS delivers the 
first TI-20 installs to the Fleet in fiscal year 2022, which brings 
added capability and improved system architecture, strengthens 
cybersecurity and integrates new payload capabilities to provide 
increased lethality. The fiscal year 2023 budget supports continued 
implementation of Agile and DevSecOps software development best 
practices at SWFTS vendors to increase quality, expedite capability 
delivery, and improve cybersecurity by engraining cyber resiliency into 
the system architecture. These efforts improve the Fleet's ability to 
protect against known threats, detect unknown threats when they occur, 
and respond and recover quickly to an operational state.
                           tactical aviation
Carrier Air Wing (CVW)
    The striking power of the CVW remains the cornerstone of power 
projection capability from 11 of the world's most survivable airfields, 
our aircraft carriers. The current CVW is transitioning to an optimal 
mix of 4th and 5th Generation strike fighter aircraft that incorporate 
advanced capabilities to support the objectives of the NDS. The Navy is 
managing 4th Generation F/A-18 inventory requirements through Service 
Life Modification (SLM) and 5th Generation requirements through F-35C 
procurement. SLM extends the existing 4th Generation capacity while 
adding advanced Block III capability at one-third the cost of new 
procurement F/A-18 aircraft. The Department has appropriate levers in 
place to manage the strike fighter inventory through ongoing F-35C 
production and F/A-18E/F SLM. Currently while the gap is not eliminated 
there are sufficiently funded resources and levers to support Global 
Force Management and operational capability through the FYDP.
    The Navy continues to accelerate development of the Next Generation 
Air Dominance (NGAD) Family of Systems (FoS) to provide advanced, 
carrier-based power projection capabilities that extend the range of 
our carriers. The NGAD FoS will replace the F/A-18E/F Block II aircraft 
as they begin to reach end of service life in the 2030s and leverage 
Manned-Unmanned Teaming (MUM-T) in order to provide increased lethality 
and survivability. F/A-XX is the strike fighter component of the NGAD 
FoS that will be the ``Quarterback'' of the MUM-T concept, directing 
multiple tactical platforms at the leading edge of the battlespace. In 
fiscal year 2021, F/A-XX began the Concept Refinement Phase and it 
remains on schedule. The Navy will continue collaboration between 
Government and industry teams to develop vendor concepts that balance 
advanced air dominance capabilities and long-term affordability.
Marine Expeditionary Unit (MEU) Aviation Combat Element (ACE)
    The MEU Aviation Combat Element (ACE) remains a uniquely critical 
and capable component of our national strategic demand for forward 
presence, crisis response, power projection, and theater security 
cooperation. The ACE is a capable and lethal forward-deployed, sea-
based, expeditionary force that can operate across the range of 
military operations with a tailorable and uniquely suited complement of 
aircraft. The current MEU ACE is built around a squadron of MV-22B 
tiltrotor aircraft that deliver unmatched combat range and airspeed 
unlike any current vertical takeoff and landing (VTOL) aircraft. The 
capabilities offered by the new CH-53K heavy-lift platform allows the 
MEU ACE to organically support a wide variety of assault support 
missions and contingency operations to meet Combatant Commander needs. 
The future ACE will also feature a Group 3 UAS capability that provide 
both an organic land- and maritime-based intelligence, surveillance, 
and reconnaissance capability. The fixed wing component of the MEU ACE 
is continuing to transition to the F-35B that incorporates advanced 
capabilities to support the objectives of the NDS. The Navy and Marine 
Corps team is actively validating innovative concepts of employment of 
the F-35B on our amphibious fleet.
    The future Marine ACE, much like the CVW, will leverage MUM-T to 
provide increased lethality and survivability through the Autonomous 
Collaborative Platform (ACP). The Marine Corps is actively working 
collaboration between Government and industry to develop and refine 
concepts through analytical simulation to balance advanced air 
dominance capabilities and long-term affordability within the ACP 
program.
                    airborne electronic attack (aea)
    The EA-18G Growler is a critical enabler for the Joint force, 
bringing fully netted electronic warfare capabilities to the fight and 
providing essential capabilities in the Electromagnetic Maneuver 
Warfare environment. Next Generation Jammer (NGJ) pods will augment and 
ultimately replace the legacy ALQ-99 Tactical Jamming System in the 
middle frequency range on the EA-18G and provide full spectrum 
integrated non-kinetic effects. The delivery of NGJ increases EA-18G 
Growler's lethality and provides a multi-generational leap in 
capability against radar and communication targets utilizing advanced 
AEA techniques as well as improved reliability and maintainability.
    The NGJ-Mid-Band (NGJ-MB) program is in the completion phase of 
Engineering & Manufacturing Development (EMD), and completed Milestone 
C in May 2021. NGJ-Low-Band (NGJ-LB) successfully completed Milestone B 
and awarded an EMD contract in December 2020, which includes the 
delivery of eight operational prototypes. This contracting effort 
remains on hold as the protest process works through the courts.
                 airborne command and control aircraft
    The E-2D Advanced Hawkeye (AHE) is the Navy's carrier-based 
Airborne Command and Control aircraft, equipped with an advanced 
airborne radar, aerial refueling capability, and network connectivity 
required by Naval and joint force commanders to provide air and sea 
superiority, and counter adversaries Anti-Access and Area Denial 
strategies. The E-2D provides unique Theater Air and Missile Defense 
capabilities, and is a cornerstone of the Naval Integrated Fire Control 
system of systems linking Navy and Marine Corps fighter aircraft, Navy 
surface combatants, and Marine Corps ground units.
    The fifth Full Rate Production Lot 6 aircraft was delivered in 
December 2021, completing the MYP contract. Modernization priorities 
focus on Fleet capabilities to pace the threat, including 
Interoperability, Crypto Modernization, Communication and Navigation 
Hardware; essential Command and Control; networking and sensor 
performance capabilities that are critical enablers to Naval Integrated 
Fire Control (NIFC); vital upgrades and improvements to enable Joint 
All-Domain Command & Control (JADC2) and Naval Operational Architecture 
(NOA) [Theater Combat ID (TCID) and Hawkeye Cockpit Technical Refresh 
(HECTR)]. These modernization efforts are interdependent and required 
to keep pace with the rapidly advancing JADC2 environment and equally 
rapidly advancing adversary capability.
             assault support and logistics support aircraft
Tiltrotor Aircraft (USMC MV-22 Osprey and Navy CMV-22B)
    Marine Corps MV-22 Ospreys currently have a continuous presence in 
INDOPACOM, CENTCOM, and EUCOM. The fiscal year 2022 budget added 
substantial Congressional funding to the U.S. Air Force (USAF) for 
Nacelle Improvement implementation, successfully accelerating the 
timeline for this readiness- and reliability-enhancing effort within 
our sister service. The Marine Corps is working to coordinate and fund 
an acceleration commensurate with new USAF timelines to ensure a smooth 
transition between service tiltrotor aircraft, and preservation of an 
uninterrupted production line.
    The Navy is leveraging MV-22 investments to recapitalize the legacy 
C-2 fleet with CMV-22B aircraft in support of strike group logistics. 
The program declared IOC in December 2021, completed its inaugural 
deployment in support of the USS Carl Vinson carrier strike group (CSG) 
in February 2022, and is already underway on its second deployment in 
support of the USS Abraham Lincoln CSG.
    The fiscal year 2023 budget requests $125.2 million in RDT&E for 
continued V-22 development and product improvements, including a Helmet 
Mounted Display/Degraded Visual Environment to improve pilot situation 
awareness and safety in degraded visual environments. Fiscal year 2023 
also includes $207.6 million in APN for long-lead materials, 
modifications, common configuration, and nacelle improvements. The 
program is funded for 359 MV-22 aircraft for the Marine Corps and 44 
CMV-22 aircraft for the Navy. Fiscal year 2022 was the last year of V-
22 procurement under MYP III and Bell Boeing intends to initiate V-22 
production line shutdown activities if no additional V-22 orders are 
received.
CH-53K
    Having completed IOT&E, and with declaration of IOC soon to follow, 
the CH-53K will support Marine Corps operational concepts as the only 
fully marinized heavy lift helicopter in the DOD. Work to date has 
expanded the CH-53K's envelope through ground and flight testing and 
analysis, and has incorporated impressive real-world use of the 
aircraft to recover a downed Navy H-60, weighing 15,500 pounds, from an 
altitude of 12,000 feet in the mountains of California in September 
2021. CH-53Ks continue to fly with Marine Operational Test & Evaluation 
Squadron 1 and are assigned to Marine Heavy Helicopter Squadron 461, 
the first fleet squadron to transition, preparing to support MEU 
deployments. A contract to procure the sixth Low Rate Initial 
Production Lot of nine aircraft was signed in January 2022.
    The fiscal year 2023 President's Budget requests $220.2 million in 
RDT&E to continue the CH-53K development and test, and $2.1 billion in 
APN for procurement of 10 Full Rate Production aircraft, initial 
spares, and modifications.
                       executive support aircraft
    The fiscal year 2023 President's Budget requests $45.6 million in 
RDT&E for VH-92A Helicopter Improvements and $55.3 million APN for 
Executive Helicopter Series (VH-3D, VH-60N and VH-92A). RDT&E funding 
is required for continued VH-92A improvements and follow-on test and 
evaluation activities. These efforts include VH-92A Mission 
Communications System upgrades to both software and hardware, 
enhancements to required Wide Band Line Of Sight capabilities, test 
aircraft and facilities; and test and evaluation efforts for 
distributed network communications, high-hot aircraft performance 
enhancements and cockpit upgrades. APN in the amount of $55.3 million 
is required for retrofit modifications to the VH-92A Mission 
Communications System and continued modifications to the VH-3D and VH-
60N to ensure communications interoperability through the remainder of 
the lifecycle.
                          fixed-wing aircraft
KC-130J (USMC)
    The KC-130J remains a force multiplier for deployed Marine Air-
Ground Task Force (MAGTF) success, bringing increased capability, 
performance, and survivability with lower operating and sustainment 
costs. The KC-130J has the highest deploy-to-dwell ratio in the Marine 
Corps, as it provides critical tactical air-to-air refueling and 
organic lift capabilities to deployed MEUs and future Marine Littoral 
Regiments. The fiscal year 2023 budget requests $468.6 million in APN 
to procure five KC-130Js through a USAF contract. These aircraft will 
be fielded to a new Marine Corps active-duty squadron in Hawaii and 
support mobility in the Indo-Pacific region.
                   take charge and move out (tacamo)
    The Navy's TACAMO nuclear command, control and communications (NC3) 
mission provides assured communications to the nuclear triad through 
all phases of conflict and is a vital link to the Navy's SSBN fleet, 
the most survivable leg of the triad. Currently flown on the aging E-6B 
Mercury (Boeing 707 airframe), TACAMO recapitalization will be 
developed for the C-130J-30 (stretched Super Hercules) aircraft. TACAMO 
mission systems will be developed and integrated by a third-party 
contractor. In fiscal year 2023, the Navy will invest $554.2 million of
    RDT&E toward platform development and complete Milestone B. Funding 
in fiscal year 2023 includes $395.2 million to fully fund the 
procurement of three C-130J-30 test aircraft, $74.5 million for non-
recurring engineering contracts on the C-130J airframe, and $26.3 
million for very low frequency transmit system modernization. 
Investments in fiscal year 2023 set the stage for a successful 
Milestone B and subsequent mission integration. Integration of the 
TACAMO mission on the C-130J-30 leverages a proven platform and the 
mature TACAMO capabilities to support U.S. nuclear deterrence and 
Columbia's assured second strike for decades to come.
                        maritime patrol aircraft
    The P-8A Poseidon is the U.S. Navy's multi-mission maritime patrol 
and reconnaissance aircraft. The P-8A incorporates the commercial 737 
airframes with modern avionics, military communications, and advanced 
sensors and weapons to provide a range of advanced warfighting 
capabilities. The P-8A consists of three Increments, ensuring the Navy 
paces the undersea threat and supports distributed net-centric maritime 
operations. Increments 1 and 2 have fielded and Increment 3 is 
scheduled to IOC in fiscal year 2026. Increment 3, which consists of 
ECP 6 and ECP 7, increases ASW capabilities including ASW Signal 
Intelligence, Wideband SATCOM, Higher-Than-Secret processing, enhanced 
track management and sensor fusion (Minotaur), and Enhanced Multi-
Static Active Coherent (MAC-E). The first P-8A test aircraft completed 
the ECP 6 modification in March 2022 to support developmental and 
operational testing beginning in fiscal year 2022. ECP 7 (MAC-E) 
integration will occur prior to developmental testing.
    The fiscal year 2023 budget request includes $161.7 million in 
RDT&E for integration of ECP 6 and ECP 7 to complete baseline 
capability fielding, and rapid development efforts for evolving 
threats, and $249.3 million in APN for fleet modification kits, 
deficiency corrections, safety upgrades, and production line shutdown 
activities. Boeing intends to initiate P-8A production line shutdown 
activities in fiscal year 2022 if no additional FMS P-8A orders are 
received. As of April 2022, 110 U.S. aircraft have been delivered.
                    unmanned aircraft systems (uas)
    Naval Aviation continues to integrate unmanned systems into the 
Fleet to enable a fundamental shift in the way the DON conducts naval 
aviation operations. Broadening unmanned aviation efforts will decrease 
risk to personnel, allow greater persistence, longer ranges, improved 
data speed and accuracy, and a faster decision cycle. These 
capabilities offer the DON increased asymmetric operational 
opportunities and tactical advantages that provide the warfighters an 
edge to dominate and win in ongoing and future conflicts.
MQ-25A Unmanned Carrier Aviation
    MQ-25A will increase the strike range, capability, and lethality of 
the CVW through organic mission and recovery tanking, and provide an 
ISR capability to the CSG. As the primary CVW mission and recovery 
tanker, MQ-25A will increase available CVW Strike Fighter assets, 
preserve F/A-18E/F Fatigue Life Expenditure. MQ-25 is integral to the 
Air Wing of the Future and establishes the foundation for MUM-T and 
autonomous operations from the CVN. The fiscal year 2023 budget 
continues investment in MQ-25 and the Unmanned Carrier Aviation Mission 
Control System (UMCS) development and begins testing of Navy MQ-25A 
while beginning LRIP of four MQ-25A air vehicles to increase fleet 
inventory. MQ-25A will IOC in late 2025. The fiscal year 2023 budget 
request supports the start of procurement for the MQ-25 Stingray with 
$799.7 million in APN and continues RDTE funding with $266 million.
MQ-4C Triton
    The MQ-4C Triton is a persistent force multiplier that delivers 
unprecedented situational awareness of the battle space to shorten the 
sensor-to-shooter decision loop in the maritime and littoral 
battlespace. In 2020 two MQ-4C Triton IFC-3 variants deployed to 
INDOPACOM providing theater Maritime ISR coverage, executing 140 ISR 
missions and 3500 flight hours. One MQ-4C Triton IFC-3 remains flying 
in SEVENTH Fleet executing tasking of eight ISR flights per month. 
Multi-INT Operational Test and Evaluation and IOC are planned for 
fiscal year 2023. The fiscal year 2023 budget requests $663.1 million 
in APN to continue procurement of three MQ-4 Tritons, and $13.9 million 
in RDTE, with an additional $163.3 million for RQ-4 modernization RDTE.
MQ-9A
    The Marine Corps is adjusting to meet future operating environments 
that require leveraging uncrewed aerial systems at the tactical to 
strategic level. As a critical enabler within the MAGTF and Naval 
Expeditionary Force, MQ-9A squadrons will provide persistent 
communications extension, airborne early warning, maritime domain 
awareness, and electronic warfare support. As the Marine Corps builds 
the Unmanned Aerial Squadron of the future, the Marine Corps seeks 
funding for the required aircraft, ground control stations, spares, and 
support equipment across the next several years. Existing U.S. Air 
Force efforts are being leveraged actively throughout this process to 
reduce cost and risk, while providing advanced capabilities to the 
Marine Corps and the overall joint warfighting enterprise. Future 
potential mission sets for Marine Corps uncrewed systems include 
offensive air support and tactical transportation capabilities.
                            weapons programs
Missile Programs
    As the Navy carefully manages the approach to end of life of Ohio-
class SSBNs, addressing the viability of the Strategic Weapons System 
(SWS) throughout the life of the Columbia-class SSBNs remains a 
priority. The currently deployed TRIDENT II D5LE missiles will support 
initial load-outs of early Columbia hulls, but production of additional 
D5LE missiles is not practical due to technological obsolescence and an 
atrophied industrial base. Modernization of the SWS, D5LE2, is required 
to maintain the Sea Based Strategic Deterrent starting with the ninth 
Columbia-class submarine by ensuring sufficient missile inventory and 
seamlessly supporting USSTRATCOM requirements. D5LE2 incorporates the 
necessary flexibility and adaptability needed to maintain demonstrated 
performance and survivability in the dynamic threat environment until 
Columbia-class end of life. The Administrations' recently released 
Nuclear Posture Review (NPR) states that D5LE2 needs to begin deploying 
on Columbia-class in the late 2030s in order to sustain sufficient 
missile inventories to support the U.S. sea-based strategic deterrent 
as well as the United Kingdom's independent nuclear deterrent. The Navy 
will prioritize near-term investments in accordance with the NPR to 
ensure that D5LE2 is effective in the expected threat environment and 
delivers on time.
    Standard Missile-6 (SM-6) is the Navy's primary air defense weapon 
for surface combatants providing increased battlespace against threats 
over-the-horizon. SM-6 leverages the proven SM-2 propulsion and 
ordnance sections, and adds a modified Advanced Medium-Range Air-to-Air 
Missile active seeker and booster for extended ranges. Each new Block 
brings additional capabilities and mission sets. The Navy awarded a 
five-year MYP contract for up to 625 SM-6 missiles in December 2019. 
The fiscal year 2023 President's budget continues funding for the 
upgraded SM-2 Block IIIC. The program is anticipated to achieve an 
Initial Capability in fiscal year 2022 and plans to transition from a 
rapid prototyping project exercising middle tier authorities into a 
Major Capability Acquisition in the second quarter of fiscal year 2023. 
SM-2 Block IIIC leverages investments made in SM-6 Block I and Evolved 
Sea Sparrow Missile (ESSM) Block II to enhance performance against 
numerous threats and to increase depth of fire. The SM-6 Block IB 
program, which integrates a new government developed rocket motor with 
an existing SM-6 Block IA seeker, transitioned from a rapid prototyping 
effort to Major Capability acquisition and has been designated as major 
subprogram to the existing SM-6 ACAT IC program. The program intends to 
complete development, integration, and test efforts to field a cost-
effective extended range capability in fiscal year 2027.
    ESSM provides another layer to the Navy's defensive battle-space. 
ESSM Block 2 is in Low Rate Production and declared IOC in December 
2021. The inner layer of the Fleet's layered defense is the Rolling 
Airframe Missile. The RAM Block 2B includes hardware and software 
updates to counter complex raid scenarios, upgraded IR seeker to 
enhance multi-object and closely-spaced object discrimination, a 
missile-to-missile link, and an improvement in firepower. RAM Block 2B 
is on track to declare IOC in fiscal year 2024.
Strike Weapons
    The DON continues to focus on delivering a strong balance of 
offensive strike weapons by maintaining the readiness of our strike 
weapons inventories, enhancing capacity and performance of existing 
strike weapons, and developing next-generation strike missile 
capabilities. Through these efforts, the DON will increase overall 
force effectiveness and continue to address emerging threats from 
adversarial forces.
Tomahawk
    In the fiscal year 2023 budget request, the Department sustains the 
Tomahawk as the Nation's premier all-weather, long-range, survivable 
deep strike offensive weapon to include new production of and 
recertification of current inventory into modernized BLK V Tomahawk 
missiles. BLK V(a) Maritime Strike Tomahawk (MST) provides a long range 
moving maritime strike capability to meet current and future threats, 
supporting the Surface Warfare Mission area through the inclusion of a 
seeker suite in the Tomahawk BLK V missile. The fiscal year 2023 budget 
request for MST provides continuation of Test and Evaluation (T&E) 
plans that include missile functional ground testing and missile test 
flights from a ground launcher apparatus to assess seeker performance, 
mature and refine seeker algorithms, and provide verification and 
validation data for Modeling and Simulation. MST IOC is planned for 
fiscal year 2025. The fiscal year 2023 budget request continues 
engineering, manufacturing, and development of the Joint Multiple-
Effects Warhead System (JMEWS), which will deliver a hardened target 
penetration capability with the Tomahawk BLK V(b) missile in fiscal 
year 2027. The fiscal year 2023 budget request continues engineering, 
manufacturing, and development of the Military Code Global Positioning 
System (GPS) receiver, which will deliver significant increased 
resiliency in spoofing and jamming threat environments capability to 
the Tomahawk BLK V missile in fiscal year 2026.
Offensive Anti-Surface Warfare (OASuW) Increment 1/ Long Range Anti-
        Ship Missile (LRASM), OASuW Increment 2
    The fiscal year 2023 President's Budget requests $226.0 million to 
fund Long Range Anti-Ship Missile (LRASM) efforts associated with 
filling congressionally directed Operational Testing, which includes 
telemetry kit installations and test support. Fiscal year 2023 also 
funds procurement and installations of updated Weapon Data Link to 
satisfy compliance of NSA crypto modification mandate, and procures 60 
DON LRASM weapon systems. The fiscal year 2023 President's Budget also 
requests $12.8 million for completion of the LRASM 1.1 capability 
improvements.
    The fiscal year 2023 President's Budget requests New Start 
authority to begin Technology Development in support of OASuW Increment 
2, now referred as Hypersonic Air Launched OASuW (HALO). HALO supports 
the national imperative to mature hypersonic capabilities. The program 
represents a longer-term capability that encompasses increased 
performance and will provide the Navy a necessary air launched, carrier 
based weapon to address evolving long range high speed threats from 
near peer competitors. In order to deliver this capability to the 
warfighter when needed, the Navy will collaborate heavily with the 
USAF.
Advanced Anti-Radiation Guided Missile (AARGM) & AARGM Extended-Range
    AARGM procurement completed in fiscal year 2021 with the award of 
the last DON Full Rate Production (FRP) contract. There have been 1366 
AARGMs (All Up Rounds, Training Missiles, and Spares) delivered to the 
Fleet (as of March 2022). Program of record delivery is 1803 missiles. 
Deliveries continue through fiscal year 2024 in support of the 
transition to AARGM-ER. AARGM-ER provides the DON with a 5th generation 
compatible extended range asset to project power and provide 
Suppression of Enemy Air Defenses, both at-sea and on land. The fiscal 
year 2023 President's Budget requests $90.8 million in RDT&E to support 
operational and Integration testing of production representative 
hardware. The fiscal year 2023 President's Budget requests $131.3 
million in WPN to procure 69 AARGM-ER All Up Rounds and six Captive Air 
Training Missiles.
Hypersonic Program
    U.S. near-peer competitors have weaponized and fielded hypersonic 
missile systems, creating warfighting asymmetry that must be addressed. 
The Conventional Prompt Strike (CPS) Program Office is developing a 
hypersonic weapon system that will enable precise and timely strike 
capability against deep inland targets in contested environments. CPS 
and the Army Hypersonics Project Office are jointly leveraging a common 
All Up Rounds missile design and test opportunities to field a non-
nuclear hypersonic weapon system. Zumwalt-class DDGs will be the first 
Navy platform to field this hypersonic capability in the mid-2020's, 
followed by Block V Virginia-class SSNs in the late-2020's. In March 
2020, the Services executed a highly successful flight test of the 
Common Hypersonic Glide Body (CHGB), and in 2021 successfully conducted 
three static fire tests of the newly developed Two Stage Solid Rocket 
Motor, tests to validate the Navy's launch approach, and tests of 
advanced capability for future insertion into the CHGB. The first 
flight testing of the common All Up Rounds is scheduled to occur in 
fiscal year 2022. This rapid development and demonstration of 
hypersonic strike weapon systems supports the U.S. ability to deter, 
and if necessary, defeat potential adversaries. The Department's fiscal 
year 2023 budget begins procurement of the first three All Up Rounds to 
be delivered to the first Zumwalt-class DDG in fiscal year 2025 as well 
as two test rounds to support the Joint Flight Campaign. The request 
totals $1.2 billion in CPS RDTE. $18.6 million in funding is also 
dedicated to building supply chain resilience for hypersonic weapons 
components.
Navy Laser Weapons
    The Navy is continuing its path forward for shipboard integration 
of High Energy Laser (HEL) systems, pursuing multiple projects to 
accelerate fleet integration with initial capabilities, assess 
operational concepts and platform options through experimentation, 
mature advanced technologies, perform lethality assessments against 
anti-ship missiles, and inform development of requirements for future 
acquisition. Initial capabilities, such as Solid State Laser-Technology 
Maturation (SSL-TM) on USS Portland (LPD 27), continue to be valuable 
for shipboard experimentation and integration to inform the Navy's long 
term consideration of other ship classes as host platforms for laser 
weapons. Future Navy surface combatants, FFG-62 and DDG (X), have 
included space, weight and power reservations to accommodate high power 
lasers systems. DDG(X) design includes reservations to accommodate HEL 
systems with power levels capable of countering ASCMs in a self-defense 
role when those systems are mature and proven.
    In the fiscal year 2023 budget request, the Department will further 
advance capabilities of laser weapons to meet ship defense missions, 
installing an eighth Optical Dazzling Interdictor, Navy (ODIN) system 
on DDG 51 Flight IIA ships. Additionally, the first fully combat system 
integrated laser weapons system, HELIOS, onboard a DDG 51 Flight IIA 
destroyer will be fielded. The DON will continue collaboration and 
partnering with the DOD and other Services to mature these advanced 
laser technologies and increase power scaling to defeat more 
challenging threats to support and shape the future acquisition of 
these systems.
Torpedoes
    The Department is investing heavily in increasing the capacity and 
capability of both the Heavyweight and Lightweight Torpedo inventories 
to maintain our advantage in the undersea domain against our strategic 
competitors. The MK48 Heavyweight Torpedo is the Navy's primary 
submarine-launched ASW and ASuW weapon. The Department is increasing 
both production of the MK48 MOD 7 and development of new capabilities 
with the MK 48 MOD 8 and MK48 MOD 9 to maintain our advantage over the 
threat today and in the future. The MK54 Lightweight Torpedo, which is 
employed by both surface ships and aviation ASW assets, continues to be 
produced and upgraded to keep pace with the ASW threat. Production of 
the upgraded MK54 MOD 1 continues, and development of the MK54 MOD 2 is 
underway to rapidly meet the high-end threat. The Department is also 
investing in developing a Very Light
    Weight Torpedo capability to further our advantage in the undersea 
domain. The Compact Rapid Attack Weapon will deliver multi-mission 
capability as both a hard-kill torpedo countermeasure and a short range 
ASW weapon. These investments are critical to the Navy's efforts to 
prepare for both today's fight and the future fight, where ASW and 
submarine ASuW are vital to our warfighting readiness.
                      marine corps ground programs
    Fiscal year 2023 USMC investments enable the Marine Corps to close 
kill webs and deter strategic competitors. Some of the programs are 
emerging, while others are more mature in the acquisitions process. 
Maintaining momentum for the Marine Corps' modernization efforts 
expedites the USMC's ability to meet the requirements for critical 
warfighting concepts, such as A Concept for Stand-in Forces. Proactive 
modernization, balanced with the readiness needed to ``fight tonight,'' 
will ensure the Marine Corps remains a naval expeditionary force-in-
readiness. This budget provides a relevant and modern force that can 
sense, make sense, and act today and in the future in support of Naval 
and Joint campaigns.
Navy/Marine Corps Expeditionary Ship Interdiction System (NMESIS)
    In this budget request, the Navy/Marine Corps Expeditionary Ship 
Interdiction System (NMESIS) continues to be the Marine Corps' top 
modernization priority and is the critical lethality component to our 
anti-ship missile capability. In conflict, NMESIS will allow the Stand-
in Force to deny or protect key maritime terrain from the enemy. 
Additionally, this system can be employed to herd the enemy into areas 
where Joint and Coalition forces can exploit their relative advantages. 
NMESIS will create cost impositions for adversaries by introducing a 
credible threat into their decision-making at a relatively low cost to 
U.S. Forces.
    The NMESIS consists of two NSMs mounted on a remotely operated 
Joint Light Tactical Vehicle-based chassis. Due to the mature 
technology in NMESIS, the Marine Corps has reduced programmatic risks. 
Indicative of this, the Marine Corps has successfully tested NMESIS 
twice, once in November 2020 and more recently in August 2021. Given 
the performance metrics over the last two years of testing, we believe 
NMESIS will have immediate effects in the operational environment. This 
year's budget request builds the NMESIS launcher and missile capacity.
Organic Precision Fires (OPF)
    Organic Precision Fires (OPF) will provide multiple echelons of the 
Fleet Marine Force with an organic, loitering, beyond line-of-sight 
precision strike capability. The system is comprised of a surveillance 
capability, separate loitering munitions, and a command and control 
station. OPF will provide continuous surveillance before, during, and 
after conducting lethal strikes. OPF offers Marines less exposure to 
enemy fires by offering range outside of adversary direct fire weapons. 
The associated loitering munitions will have sufficient lethality to 
defeat armored, water-borne, and personnel threats. Funding requests 
will continue to support testing, experimentation, and user evaluations 
with Organic Precision Fires prototypes.
Ground/Air Task-Oriented Radar (G/ATOR)
    The Ground/Air Task-Oriented Radar (G/ATOR) is a proven platform 
that continues to exceed expectations. G/ATOR is a multi-role, ground-
based, 3D radar system that is designed to detect air threats, rockets, 
missiles, and mortars, while aiding in the performance of air traffic 
control mission sets. The radar is transportable by organic Marine 
Corps means and provides a significant ``engage on remote'' capability 
in support of Expeditionary Advanced Base Operations. The Marine Corps 
has fielded these radars throughout the force, with several located in 
the Indo-Pacific region.
    The Marine Corps, as the forward element of the Joint force, 
continues to invest in and improve the sensor capabilities of G/ATOR. 
In 2021, at the Army's Project Convergence exercise, G/ATOR 
successfully integrated with and supported a Navy-Marine Corps live-
fire kill-chain event. This is yet another meaningful step towards 
greater Naval integration and adding existing Marine Corps platforms to 
the Joint and Naval IAMD mission. The Office of Naval Research (ONR) 
also developed an advanced, complementary system to the G/ATOR, the 
Multi-Domain Radar for a Contested Environment (MuDRaCE). ONR is 
maturing the technology and will transition this capability to the 
Marine Corps for incorporation as a program of record.
Marine Air-Ground Task Force (MAGTF) Electronic Warfare Ground Family 
        of Systems (MEGFoS)
    The MAGTF Electronic Warfare Ground Family of Systems (MEGFoS) is 
an electromagnetic warfare (EW) system designed to advance our 
capabilities in the electromagnetic domain. MEGFoS protects friendly 
spectrum access, senses spectrum usage, and provides a means for 
disrupting an adversary's decision-making cycle. MEGFoS is comprised of 
three variants--mounted, dismounted, and team portable. All three 
variants are networked and able to share data and coordinate EW 
missions with one another. In the 1st quarter of fiscal year 2022, the 
Marine Corps began experimentation with a prototype of the MEGFoS team-
portable variant. In this year's budget request, the Marine Corps is 
seeking to procure a mixture of mounted, dismounted, and team-portable 
systems.
Networking On The Move (NOTM)
    Network on the Move (NOTM) is a satellite communications (SATCOM)-
based command and control system mounted on a ground combat vehicle or 
aviation platform. NOTM provides terrestrial line-of-sight and beyond 
line-of-sight communications for Marines at-the-halt and while on-the-
move. The system is purpose built for Marines fighting in a distributed 
manner, in alignment with naval and joint concepts, to effectively 
command and control forces in a contested all-domain environment. The 
Marine Corps continues to procure and field these systems to 
distributed Fleet Marine Force units, enabling command and control, now 
and in the future.

    Senator Hirono. Thank you.
    So, Mr. Secretary, in my opening statement I referred to 
the fact that you are responsible for acquisition and 
sustainment matters, to include maintenance and the importance 
of our maintenance availability, in both the private and public 
shipyards. What have you done since the last year to improve 
the performance of ship maintenance programs and to keep 
individual overhauls from being late?
    Mr. Stefany. Yes, ma'am. So we have taken a multiple-
pronged approach. We started with the planning phase and we are 
putting more resources into planning up front for an 
availability, getting the work packages defined, getting the 
long-lead material bought sooner in the process than we have in 
the past.
    In the contracting phase, we have moved to what we call an 
A-minus-120, where we try to award the contracts--I am talking 
about private shipyards now--120 days before the availability, 
to give the contractor a chance to get up to speed and 
understand the work before we get into the actual project. Then 
we have really done a focused effort, what we call ``plan to 
perform'' of what are the key criteria for the success of an 
availability, and then make sure we understand the levers that 
we would pull in order to be able to succeed, what are the key 
things, and make sure we are focusing on the most important 
data to be able to effect the availability once it has started.
    Except for the contracting part, ma'am, we are doing the 
same type of items on the public shipyards as well. Looking at 
the availability of equipment up front at the public shipyards 
and then doing that ``plan to perform'' process, where we are 
really pulling the thread hard on processes within those 
shipyards.
    Senator Hirono. So, Mr. Secretary, as with the shipbuilding 
side, on the maintenance and repair side, you are probably 
seeing issues of workers, not enough trained workers, and 
supply chain issues. So what specifically are you doing to 
address those particular problems?
    Mr. Stefany. Yes, ma'am.
    Senator Hirono. On the shipyard, the repair side.
    Mr. Stefany. Yes. On the repair side, yes, we are seeing 
both supply chain delays due to COVID impacts as well as 
workforce, where we are not having the workforce that we need 
appear, and it is happening in new construction as well, so 
your point is very valid.
    We are working with the shipyards, regional shipyard 
associations, on pipelines for future workforce, to try to get 
skilled workers from out of the colleges and trade schools into 
the trade. That is a longer-term thing. It is not happening 
immediately. But we are seeing younger folks coming into the 
business through the trade schools we have set up. For the 
actual work, we actually are, I will say, illuminating. We have 
tools to illuminate where our supply chain is really having 
trouble and trying to attack that in advance, ma'am.
    Senator Hirono. So I think that the lack of trained workers 
has been an issue long before COVID, and it has been 
exacerbated by COVID. So I hope that you are doing something to 
turbocharge the focus on recruiting and retention, shipyard 
works, both on the shipbuilding side as well as on the repair 
side. I do not have the answers to the lack of workers, but it 
is a major concern ongoing. So you are going to get asked those 
questions every time you come before either SASC or this 
Subcommittee.
    There is going to be a gap in the number of America-class 
LHAs, the amphibious ships. So my information is after the 
force total of the 11 originally planned is finished in 2023, 
then you are not going to get any more of these LHAs for 
another 8 years or so. Was that a budget decision, and if so, 
what happens when you need to resume production or construction 
of these LHAs and then the shipyard is going to have to ramp 
up? What happens regarding the construction of these ships at 
that point, what that kind of a long gap?
    Mr. Stefany. Yes, ma'am. Quickly, on the last one, for 
workforce we do have funding in the 2023 budget to actually go 
and try to accelerate those workforce development programs. I 
just wanted to finish that last question.
    With this question, ma'am, yes, the LHA-type ships, about 5 
years apart. We call it 5-year centers. So the previous ship 
was in 2023, and the next ship, most efficiently, would be 
built in 2028. It is affordability reason of why it is not in 
as a 2028 ship. It is just in the overall budget, why it is 
sitting out there in 2031. But we will relook at that in the 
coming budget cycle, ma'am.
    Senator Hirono. I would ask that you do that.
    I have a lot of other questions and I will probably do a 
second round, but I will turn to Senator Cramer.
    Senator Cramer. Thanks, Chairwoman, and since you have 
primed the pump so nicely on shipbuilding strategies let's hang 
out there for a little bit and maybe drill down a little more, 
because I appreciated many of the questions.
    Let's see. Mr. Stefany, I said there are five shipbuilding 
issues, so I will try to tackle them one at a time here in the 
first round.
    First of all--and by the way, thank you for the DDG(X) 
acquisition report that you delivered last week. Can you 
elaborate a little bit on the benefits, potential benefits of, 
and the Navy's interest in maximizing collaboration and design 
and early construction between Ingalls shipbuilding, Bath Iron 
Works, and the Navy for DDG(X) program? Explain why that makes 
sense.
    Mr. Stefany. Yes, sir, and it is what we have learned on 
the submarine program, frankly, where the shipyards working 
together with the Navy we get the best breed. We get the best 
engineers and the best planners at both shipyards, working with 
the Navy to lay out those original specs and to lay out the 
plan for building it. Which shipyard maybe can do this better, 
what can do that better, and we take the strengths of each.
    The other part is we do not have downtime, where we have 
competitive pressures, where the companies have to go apart, in 
their separate corners, and do a bidding process. We can 
continue the design spirals until we can get to the 
construction of those first two ships. Again, we have committed 
that each shipyard will be involved in the construction, and so 
knowing we are going to have them involved, having both 
companies working together on the best product, using a single 
design tool, a single computer-based model, is what we have 
seen in the Virginia program as the best way to design and 
build, at least build the initial ships of a new, from-scratch 
program, sir.
    Senator Cramer. Sure. So let's then talk about multi-ship 
acquisition and procurement as well. So there are eight Lewis-
class oilers to be procured in fiscal year 2022 through 2027. 
It seems like a good opportunity to provide stability to the 
industry, including workforce, and save some money through the 
multi-ship procurement, including economic order quantity 
authorities.
    Can you support an approach like this, and can you provide 
a rough estimate of what maybe could be saved with an approach 
like that?
    Mr. Stefany. Yes, sir. I would say from an acquisition 
point of view, absolutely. Buying eight ship sets worth of 
equipment at the same time, from an economic quantity and items 
like that would be the most efficient way to buy it. I think 
when we looked at the amphibious ship multi-ship it was about a 
7 percent savings, and that was with two different kinds of 
ships. So I would expect in this case we would see more than 7 
percent, because they are all the same type of ship, right. But 
I can take for the record, sir, an actual estimate for you.
    Senator Cramer. No, that sounds great. Thank you.
    So the chairwoman brought up the issue of workforce. I want 
to spend a little bit of time on that as well. Is workforce one 
of the reasons that this budget shows a Virginia-class 
submarine? Construction durations are extended by 2 years. Is 
that fair?
    Mr. Stefany. That is one of a number of reasons, but 
probably the primary reason, sir, yes.
    Senator Cramer. So when you talked about workforce 
development programs, tell me about opportunities that might 
exist for--by the way, I am a former state economic development 
director. I know you think you knew everything about me. I knew 
you wanted to know that. So unfortunately, in North Dakota, we 
just do not have any shipbuilders, so I was thinking that if I 
was the head of economic development somewhere, what kind of 
incentives can we do together--local state, you know, along 
with whatever incentives. When I say ``we,'' the Federal 
Government could provide. I am sure you have thought through 
this a couple of times.
    Mr. Stefany. Yes we have, sir, and even before COVID and 
our recent issues, local companies with local governments, 
Senator Kaine and the Virginia waterfront, very, very active, 
even before we had the COVID-type issues.
    What we are looking at going forward, though, is to take 
that across other parts of the country. I think we have--I will 
not say ``tapped out'' but we have kind of maxed out the 
Virginia and up in Connecticut, that area of the country, from 
the skilled workers, so we want to expand out to other parts of 
the country. We have started programs in Danville, Virginia, in 
Pennsylvania, in the Philadelphia area, that would take local 
city, state, as well as the Navy working together to come up 
with pipelines of non-traditional pipelines.
    Now, sir, we are just now starting to look at, with the 
influx from Afghanistan and Ukraine coming into the United 
States, potentially there are skilled workers there as well, 
that we could take advantage of, sir.
    Senator Cramer. I appreciate that. Well, I am near the end 
of my time so I will reserve my next question about the double 
accounting issue that I brought earlier for you in Round 2. 
Thank you, Madam Chair.
    Senator Hirono. Senator Kaine.
    Senator Kaine. Thank you, Chair Hirono, and to all of our 
witnesses thank you for your service.
    So this is just us. I am sure it is on C-SPAN, but I want 
to dig into an issue that I am confused about. So I want to ask 
about two things. I want to ask about amphibs and I want to ask 
about the marine force posture discussion and budgetary 
ramifications of that.
    So on amphibs, the Marine Corps continues to state that its 
minimum amphib requirement is 31, but we are hearing different 
estimates from OSD and the Navy about that. So if the Marine 
Corps is the principal end user and they are saying the minimum 
acceptable is 31, how do we explain confusing messages that I 
am getting? I am hoping we can clear up the confusion. It seems 
to me like there is either probably one of three options. 
Either the Marines want 31 and Navy and OSD agrees it should be 
31, and we will fund 31. Or the Marines want 31 and Navy and 
OSD agree with the 31, but say that there is a budgetary 
challenge that means we are going to have a temporary gap to 
get to 31. Or the Marines want 31 and Navy and OSD different 
and do not think 31 are necessary.
    So maybe there are other forks in the decision tree but it 
seems like it is one of those three answers. Can I start with 
you, Mr. Stefany? What is going on?
    Mr. Stefany. Yes. I would say that Secretary Del Toro, when 
he came in, kind of had the same question, right?
    Senator Kaine. Yeah.
    Mr. Stefany. So he got the NAVY, the CNO staff, and the 
Commandant's staff together and chartered an amphibious ship 
study, without OSD, with Navy, Marine Corps.
    Senator Kaine. Yep.
    Mr. Stefany. That study is just completing, and the 
briefing process, I do not know if the SECDEF has been briefed 
it is very, very near term. That will feed into a force 
structure assessment that we are doing that will go with the 
National Defense Strategy, the classified version I think you 
have just seen, right?
    Senator Kaine. Right.
    Mr. Stefany. So we do that, and that will ultimately get us 
to what is the final number of amphibious ships--traditional 
amphibious ships we are talking about--and if it is, whatever 
it is. We will then resource, given a constrained budget, to at 
some point get to that number, sir.
    Senator Kaine. What is the likely timing of this, because 
obviously our hope on the committee would be to get done with 
the NDAA probably between Memorial Day and July 4, so we have 
the capacity to try to shape what we do in the authorizing bill 
to meet what the recommendation is, and I hope it is a 
consensus recommendation and not a thug war.
    But what do you think the timing is?
    Mr. Stefany. I can tell you I believe that the Commandant 
and the CNO are on the same page, and they are coming to the 
committee, I think, in a week and a half, and their plan is to 
give you the results, or at least to talk about it, all three 
of them together.
    Senator Kaine. Okay.
    Mr. Stefany. That obviously would have to go to OSD and we 
would update you through the other steps.
    Senator Kaine. Right. Okay. Good. We will save those 
questions for then.
    The other one I want to talk about is the Commandant's 
force structure ideas, and I am a supporter of them. I like 
what I see. I know that they are generating some controversy, 
and that is fine. People have different ideas about the way to 
do something, and sometimes folks are reluctant to make a 
change. I get that. I have seen it in organizations I have been 
part of.
    But the piece of it I want to ask you about is in the 
planning guidance that the Commandant put out about 3 years ago 
he said, quote, ``If provided the opportunity to secure 
additional modernization dollars in exchange for force 
structure, I am prepared to do so. So I will let go of some 
force structure if I can modernize to the mission of tomorrow, 
as we see it.''
    Some do not want to let go of force structure, but there is 
another question that I am really interested in, which is, if 
you do let go of force structure to get modernization, I do not 
want the force structure dollars taken away and then not put to 
modernization, and I have been hearing that is a concern, that 
if the Marines make a pivot in this way to try to prepare for 
tomorrow's battle, I do not want their money taken away on the 
force structure side. I want the money plowed back into 
modernization.
    So if I could ask you, Mr. Stefany, and General Heckl, at 
this point, you know, April 26th, sitting here, are you 
comfortable with the direction things are going, that as the 
Marines pivot and set aside some force structure for 
modernization they are going to be able to hold onto those 
resources to actually do what the Corps needs to do?
    Mr. Stefany. I will start and turn it over quickly. I would 
say, you know, that has always been a discussion in the 
building, but I think so far, if you trace the dollars, you 
would see it has been pretty much money moving from here to 
there. It has been relatively even. But I will turn it over to 
the general.
    General Heckl. Senator, thank you very much for the 
question, and the bottom line, up front, is yes, we are 
comfortable. I actually just met with the money guy for the 
Marine Corps, Lieutenant General Mahoney, this afternoon.
    But again, sir, I think--and really, great thanks to this 
Committee and to others, to include the Navy. We knew there was 
risk, sir, that that force structure could be harvested, if you 
will. We have not seen that. But I will simply say that some of 
the funding that is being reinvested, it is being specified, or 
as the money people talk, it has been ZIP-coded. So it has been 
limited in our ability but overall, sir, no, we are not 
concerned.
    Senator Kaine. All right. Well, both of these are helpful, 
and I will obviously get into these questions further when we 
have the posture hearing in a week and a half, but thank you 
for shedding light on it. I appreciate it. I yield back.
    Senator Hirono. Senator Hawley.
    Senator Hawley. Thank you, Madam Chair. Thanks to all of 
you for being here.
    Admiral, if I could just start with you. Can we talk a 
little bit about the shipbuilding, the three different profiles 
that are included in the plan released, I think, on April 20th. 
My question, I guess, is this. Is the Navy confident that each 
of those profiles would allow it to meet the operational 
requirements for deterring a Chinese fait accompli, vis-`-vis 
Taiwan?
    Admiral Conn. The first two profiles, Alternatives 1 and 2, 
were fiscally constrained in terms of no real budget growth in 
the types of forces you could have, at the same funding line 
with differences in manned and unmanned between the two. 
Alternative 3 was industrial-base limited, as we understand it 
today, and for an additional $75 billion--it equates to about 2 
percent a year--what type of options in force structure could 
that develop?
    I will say in the shipbuilding plan itself it says that 
Alternative 3 most closely approaches the previous analytical 
work that was used to generate the ship-owning plan.
    Senator Hawley. But my question--I appreciate that, but can 
I just drill down on that a little bit? I want to be clear. Do 
each of these profiles--1, 2, and 3--will they allow the Navy--
is the Navy confident that they will allow you to meet the 
operational requirements necessary to respond to what is the 
pacing challenge in the pacing theater, the pacing scenario in 
the pacing theater?
    Admiral Conn. I would say we have the most confidence in 
Alternative 3.
    Senator Hawley. Okay. So not in 1 and 2. You have less 
confidence in 1 and 2.
    Admiral Conn. That is correct.
    Senator Hawley. Okay. Thanks. That is very helpful.
    General Heckl, can I turn to you? I want to ask you about 
anti-ship missiles. The Marine Corps has put anti-ship missiles 
at the top of the unfunded requirements list for the last 2 
years, I think, if I have got that right. It did not do so this 
year. Can you just explain why that is?
    General Heckl. Sir, the NMESIS, the Navy Marine 
Expeditionary Strike Interdiction System, which is the naval 
strike missile you are referring to--very successful, by the 
way--is still our number one priority, sir. Are you referring 
to the UPL, where the Commandant put the LPD-33 for advanced 
procurement?
    Senator Hawley. I am sorry. I am having--can you repeat 
that, General?
    General Heckl. Yes, sir. So right now the NMESIS remains 
our number one priority.
    Senator Hawley. Yeah.
    General Heckl. Yes, sir. No question. Are you talking about 
the unfunded priorities list----
    Senator Hawley. Yes.
    General Heckl.--LPD-33, sir. Obviously, force design, we, 
the Marine Corps, are very confident, and I think the Navy, 
they are on a good trajectory. Our concern right now is 
primarily amphibious ships.
    Senator Hawley. Okay. I guess what I am driving at here is, 
are you satisfied that you are getting everything that you need 
to accelerate fielding the capabilities that you are going to 
need for the expeditionary advanced base operations?
    General Heckl. Absolutely, sir. Absolutely.
    Senator Hawley. Good, and while I have got you here, 
General, I just want to register my thanks. I think the work on 
the Force Design 2030 has been outstanding, and I know that, as 
Senator Kaine alluded to a minute ago, that there is some 
controversy about that. I know some people are upset that, for 
instance, Marine Corps is cutting tanks. But, you know, the 
Indo-Pacific is primarily a maritime theater, and I think you 
are doing a great job on that, and I really think this kind of 
a bold rethinking is a model for everybody else.
    General Heckl. Senator, thank you, and, you know, Liddell 
Hart, the British strategist, said, ``The only thing harder 
than getting a new thought into the military mind is getting an 
old one out.'' So, yes.
    Senator Hawley. Well, good work. Very good work.
    Admiral, can I come back to you? I want to ask you about 
anti-ship missiles as well. It looks like the Navy has chosen 
not to prioritize them. You have not fully funded requirements 
related to the SM-6, LRASMs. They are on the unfunded 
requirement list. I am just wondering why that is.
    General Heckl. We have LRASM upgrades. Yes, that is part of 
the unfunded list in terms of capability. But we have tried to 
get all other important anti-ship weapons, to include SM-16B, 
which should deliver in the future, if not at maximum capacity 
but near maximum capacity of the industrial base to produce.
    Senator Hawley. Okay. So you anticipated my next question. 
Is it your view then that we are maxing out--Mr. Stefany, weigh 
in here if you want to--but are we maxing out the base's 
ability--let us stick with the LRASMs if we could--have we 
maxed out? Is that your view? Does this request max out the 
industrial base's ability to produce LRASMs, or are we----
    Admiral Conn. That is my understanding, sir, that we are 
maxing out. It is a joint Air Force-Navy----
    Mr. Stefany. Across all services, right? You have got to 
look at everybody.
    Senator Hawley. Right. Right.
    Mr. Stefany. Same with SM-6, sir. We are at the max, 
without an investment.
    Senator Hawley. Okay. So what would it take to expand those 
production lines further, so we can field as many as possible 
now and also surge production if have a potential conflict?
    Mr. Stefany. We have done that analysis. I do not have it 
with me but I will take that for the record.
    Senator Hawley. Okay. Would you? That would be very 
helpful.
    My time has expired. If we have time later I will come back 
for a second round. Thank you, Madam Chair.
    Senator Hirono. Senator Blumenthal.
    Senator Blumenthal. Thank you, Chair Hirono. As I am sure 
you know, in fiscal year 2020, the Navy unilaterally reversed a 
decades-long indemnification policy and stated that going 
forward it would no longer cover unusually hazardous risks 
involving conventional weapons that rely on high-energy 
propellants. This decision essentially shifted a very 
significant risk to private industry entities working on 
missiles, for example. It essentially risks losing a lot of 
private partners who cannot tolerate the risk that is imposed, 
and possibly the ability to build major weapon systems and 
technologies essential for future conflicts. In some sense the 
hazardous risk is a cost of producing the weapon, and under 
existing law the military services can and do indemnify 
contractors for unusually hazardous risks.
    For four decades, the Navy has borne the risk of 
catastrophic loss for incidents relating to missiles that rely 
on high-energy propellants, like the Tomahawks. Private 
industry carries commercial insurance, which will respond first 
in the case of catastrophic loss. But my question is, Mr. 
Stefany, can you explain why the Navy reversed its position on 
this kind of indemnification, and does this change affect major 
acquisition programs?
    Mr. Stefany. Yes, sir. I appreciate that question, and as a 
matter of fact, I was discussing this topic with the president 
of Electric Boat earlier today, so very much on our mind.
    Historically, the Department of Navy has provided a blanket 
indemnification, a blanket--you know, no matter what the issue 
is, it is a blanket insurance, if you will, because industry 
cannot buy it, for nuclear weapons and nuclear propulsion for 
submarines and aircraft carriers.
    What happened, of course, over time is particular weapon 
systems did not have a nuclear warhead anymore and we, as a 
navy, decided that we would not do a blanket indemnification, 
but if a company had a specific issue, a specific use case, we 
call it, we would be happy to walk through exactly where the 
risk was for that weapon, at that production facility, and we 
would talk about it with the Secretary. That is what I relayed 
to the president of Electric Boat and others. We are not 
against necessarily indemnification. We are against a blanket, 
across-the-board, no matter what kind of indemnification.
    So maybe we are talking with industry maybe past each other 
a little bit, but I think there is a way ahead here, sir.
    Senator Blumenthal. You are actively engaged in discussion, 
I hope constructive discussions with contractors like Electric 
Boat.
    Mr. Stefany. Yes, we are, you know, Lockheed, Northrop, all 
of the big companies we are having these discussions with. But 
again, the point is, what is the specific concern you have, not 
just a blanket indemnification, sir.
    Senator Blumenthal. Let me ask you a question about the CH-
53Ks, Lieutenant General Heckl. I was very pleased to see that 
the CH-53K has reached initial operational capability very 
recently, I think, maybe yesterday afternoon. As the CH-53E 
Super Stallions reach the end of their service lives, the 53K I 
think is urgently needed, and so I am hopeful that we will 
remain committed to getting this new helicopter on board, 
operational, as quickly as possible.
    Can you speak to how the Marine Corps air combat element 
will use the 53-K and what its importance is to your 
capabilities?
    General Heckl. Sir, that is impossible to answer in the 
time we have available, I will simply tell you, sir, simply 
because this is such an incredible aircraft.
    You know, sir, the Kilo lifts three times what the Echo 
lifted, its predecessor, and we are the Navy family here, but 
last September we went up in a 53-K, looked at a downed MH-60 
helicopter off of a mountainside in California, at 12,500 feet. 
Unbelievable. The Navy thought they were going to have to cut 
that thing into thirds or quarters to get it off the mountain.
    So the 53-K, sir, absolutely vital to what we are doing in 
the Indo-Pacific. To be able to lift that kind of payload, 
27,000 pounds, 120 nautical miles, will be absolutely critical 
to the intra-theater mobility, sir, that is so important to the 
Marine Corps, particularly from the organic mobility 
perspective, which is what is unique to the Marine Corps. The 
KC-130J, the 53-K, the MV-22, and our surface lift, absolutely 
vital, sir. So the Kilo is going to be a critical asset, sir, 
and we are seeing a lot of success with it right now.
    Senator Blumenthal. Thank you. Thanks, Madam Chair.
    Senator Hirono. Senator Scott.
    Senator Scott. Thank you, Chair.
    I know it is your responsibility, I guess, to defend the 
President's budget, but I guess what surprises me is there is a 
substantial cut to the force structure of the Navy. You are 
going to retire nine combat ships. The most recent was 
commissioned less than 2 years ago.
    So with fewer ships--is that right?
    Mr. Stefany. That is right.
    Senator Scott. So with fewer ships, a combatant commander, 
how are you going to deal with any requests? I mean, it does 
not seem like we have fewer problems. I mean, you have got 
Russia and what China is doing. So how are you going to deal 
with fewer ships? Are you just going to send fewer ships to 
request, or is there some way you are going to make them work 
longer, which is very difficult to do? So how are you going to 
do this?
    I know your job is you have to defend the Administration.
    Mr. Stefany. Sir, certainly the number of ships will 
increase the risk to meeting the COCOM's requirements, but we 
never meet 100 percent of the COCOM's requirements. But I will 
turn it over to the Admiral to give more of the specific look 
at that.
    Admiral Conn. So in looking at specifically the LCS, that 
ship was designed or thought about in 2002, over 20 years ago, 
and the world has changed. When we looked at the LCS, is it not 
that it has no military value. It has less military value in a 
high-end fight with China, in the Pacific. When you look at all 
the bills we have to pay, and when you look at where 
proprietary investments in some of our weapons between 
conventional prompt strike, which we are delivering in the 
middle part of the decade on DDG-1000, the investments we have 
to make in LRASM, in JASMMM, other investments we have to make 
in our unmanned systems, if we were to buy back those LCS, our 
estimate is it would be $4.2 billion inside the FYDP, and we 
believe that those resources are better spent on high-end 
capabilities that we are going to need to fight and win. Some 
of those investments deliver inside the decade, in the decade 
of concern.
    Senator Scott. Do you feel comfortable that you have the 
resources to be able to do when you watch what China is doing, 
expanding their navy, when you look at the expectation we are 
going to be able to defend Taiwan? When you look at all these 
problems, do you really believe you are going to have the 
capability to be able to do the job you are going to be asked 
to do?
    Admiral Conn. I would talk to CNO's Nav Plan, which the 
revision will come out here shortly, which in it there is a Nav 
Plan Implementation Framework that describes, in concert with 
Distributed Maritime Operations, which is how we must fight in 
the Pacific, what are the investments that we need to make in 
terms of how we shoot; how we intend to shoot from multidomains 
and from long-range fires; how we maneuver, not just in terms 
of physical space in maneuvering in the domains but how we 
maneuver in the electromagnetic spectrum to deny, deceive, 
delay our opponent? How are we going to resupply? How are we 
going to defend terminal defense for our ships, and looking for 
other means other than missile-on-missile, which is a cost-
imposing strategy on ourselves? We have to come up with 
different solutions.
    Then the investments we have to make in all the enablers, 
in our networks, in Project Overmatch, and moving information 
around the task force differently. How unmanned systems are 
going to be force multipliers across the domains, whether in 
the air, on the surface, or undersea. Then live virtual 
constructive investments, to making sure our people, our 
sailors that are going to be operating forward can actually use 
those weapon systems to their designed limits and beyond.
    Then artificial intelligence. What are the specific use 
cases we need to go after to deliver those capabilities, that 
software, those algorithms, and the bottom line is to drive 
simplicity down to the tactical edge?
    That is in the CNO's Nav Plan. Those are some of the 
priority investments they were going after and reason, because 
we are a multidomain force that works from the seabed to space, 
and we have to be able to produce effects across all of them.
    Senator Scott. But do you believe you are going to have the 
resources to be able to do the missions that you anticipate we 
are going to have?
    Admiral Conn. As always, we will have more requirements 
than resources, and within this budget we will make do with the 
resources we have to be able to fight and win.
    Senator Scott. This morning we heard, at another Armed 
Services Committee, that--there was testimony that we could 
save 30 to 50 percent of the money that DOD spends on 
procurement. Do you believe that, and what are you all doing to 
try to get some of that savings so we can allocate the money to 
make our military big and lethal?
    Admiral Conn. In the essence of time I think we have to 
drive our costs across everything we do.
    Senator Scott. Thank you.
    Senator Hirono. Senator King.
    Senator King. Thank you, Madam Chair.
    First, Mr. Stefany, I want to compliment you. These 
hearings are not always about compliments, but both houses 
asked for reports about the transition to DDX and you issued 
two, one to the House and one to the Senate. They were 
excellent--succinct, clear, written in plain English, and I 
think very important.
    Madam Chair, I would like to have both of those reports, 
117-39 and 117-118, inserted in the record of this hearing.
    Senator Hirono. Without objection.
    [The information follows:]

    [The information has been retained in the Committee files.]

    Senator King. The important part of the reports are that 
you talked about lessons learned, from the Columbia, from the 
Nimitz, to the Ford, and how that will apply to the DDX. I 
would like to ask about a couple of those.
    One of the important things is that this is handled in such 
a way that we do not have a trough in the industrial base 
between DDG and DDX. Can you speak to me about that?
    Mr. Stefany. Yes, sir. That is maybe a fault that we have 
had in the past, right? You stop one program and you start the 
next one, not recognizing it is going to take a little time for 
that second program to get going and you have a workforce that 
atrophies, if you will, in between.
    So in the DDG-51 to DDG(X) case, we recognized that in the 
first couple of years where we buy a DDG(X) we also need to buy 
a DDG-51 for the other shipyard, so that they can keep their 
workforce going and avoid that trough, keep the skills up so 
that ultimately we can get to two DDG(X)s per year, one at each 
shipyard.
    Senator King. Well, my comment is hold that thought, 
because I think that is critically important. I have seen the 
graphs at Bath Iron Works, for example, that show DDG, and then 
you have got a loss of a couple thousand workers, and you 
cannot just turn that off and on, particularly in this economy 
where workers are in short supply.
    I think the other piece that I wanted to touch upon is the 
industrial base itself and their involvement in the development 
of the new ship, so that we do not have the Navy handing 
something to the yards and saying, ``Here it is. Build it.'' 
Comment on that too, because I know Huntington Ingalls and Bath 
are in discussions. I think it is a very productive way to 
avoid some of the problems that have been incurred in the other 
programs.
    Mr. Stefany. Yeah, it is a lesson, sir, that we learned in 
the Virginia submarine program--bring the two shipyards and the 
major suppliers, the engine-makers and others in, up front. 
Talk to the Navy as we are putting together the spec and come 
up with the design criteria to take the best of all, and to 
learn from each other and come up with a single computer model 
and a single design that then both shipyards could build to. 
That is the most efficient way we have seen to actually get--we 
call it the collaborative design process--to get to a final 
state that has the least errors, the least defects in it.
    Senator King. As I have sat through hearings on the Ford, I 
could not help but notice the provisions in the report that 
talked about, let's not do all new technology at one time, and 
let's test it on the ground first. I think clearly that is an 
important lesson learned.
    Mr. Stefany. Yes, sir, and we actually, in the 2023 budget, 
funded the land-based test facility for DDG(X), to do that 
land-based testing.
    Senator King. Finally. At the hearing that Senator Scott 
mentioned this morning, Former Secretary Lord was one of the 
witnesses, and she confirmed the importance of multiyear, 
multiyear procurement. She used a term, frankly, I had not 
heard before, but maybe I have not been around this stuff 
enough. She said the problem is ``lumpy'' procurement, and you 
want procurement that can provide some continuity to the 
industrial base so that they can make the investments 
necessary.
    Do you share the importance of multiyear? I think it is 
also better for the taxpayers, frankly.
    Mr. Stefany. I want to completely agree that planning for 
investment and planning for the workforce and those other 
things that the shipyards and the suppliers need to do 
completely benefits from a long-term, 4- or 5-year commitment 
on multiyear type process. I totally agree with Ms. Lord on 
that case.
    To the previous question about cost, that is one of our 
main ways to reduce the cost of our programs is to make those 
long-term, multiyear contracts and put them in place.
    Senator King. Well, there is no question. We have built 
three Zumwalts, and the learning curve just on those three--and 
there should have been a dozen--but those three was quite 
remarkable, from ship to ship to ship. You are not going to 
ameliorate those learning curve costs, particularly on DDX, 
without a long-term, multiyear procurement.
    Mr. Stefany. Yes, sir. I agree with you completely.
    Senator King. Thank you. Let the record show that the 
witness said he agreed with me completely.
    Mr. Stefany. You complimented me to start with, sir.
    Senator King. Thank you.
    Senator Hirono. Senator King, I note that every time one of 
our testifiers agrees with you, you make a point of noting 
that.
    [Laughter.]
    Senator Hirono. So noted.
    We will start on round two of our questions. Just to make 
sure, regarding the funding for the shipyard modernization, 
does your fiscal year 2023 budget fully fund this year's plan 
for the shipyard modernization plan?
    Mr. Stefany. Yes, ma'am. The budget this year increased 
almost $1.8 billion and fully funds all of our plans for 2023 
through 2027. Yes, ma'am.
    Senator Hirono. When we talk about a multiyear contract, is 
inflation an issue with regard to how you are going to come up 
with the negotiations for these multiyear contracts? How do you 
account for inflation and some of the other factors that may 
need revisions to the contract?
    Mr. Stefany. Yes, ma'am. So in our shipbuilding contracts 
we have an economic price adjustment clause, a special clause 
we put in that accounts for inflation. It actually makes an 
assumption, and then if it gets outside of that, higher or 
lower, we can adjust the contract as we go. So in our 
shipbuilding contracts, we do not have that in other places, 
but in our shipbuilding contracts we do have what we call an 
EPA clause, to protect the company from risks going up or down.
    Senator Hirono. That is good because Asia had come up in 
the SASC hearing this morning.
    The Navy has presented a 5-year shipbuilding plan that 
includes two destroyers per year for a total of 10 ships, and I 
understand that the Navy intends to request another round of 
multiyear procurement authority for destroyers but for nine 
ships, with an option to add another ship to the multiyear 
contract at some point in those 5 years and an option to buy a 
third each year for a maximum possible of 15. That is what you 
are contemplating.
    Mr. Stefany. Ma'am, yes. We are modeling the planned 
multiyear after the one we have right now, and the one we have 
right now has 10 ships in the multiyear with a competitive 
option for a third ship in each year. That is the basis for 
what we plan to do in the future one, the one exception, as you 
noted, being that we would have 9 firm ships instead of 10 firm 
ships in that baseline contract. But otherwise the terms that 
we are anticipating for the new contract will be the same for 
the one that is in place right now. That has not been approved 
yet. That is just our initial, you know, plan as we are going 
forward.
    Senator Hirono. Just so I understand then, I know that 
there is interest in this Committee for 15 destroyers instead 
of the 10. So you are creating a situation where we can get to 
15 if you exercise that option, provided that we fund that 
option, which means that you will request funding for that 
option to be exercised. Is that correct?
    Mr. Stefany. It is.
    Senator Hirono. Am I understanding this?
    Mr. Stefany. It is our Navy plan at this point to go 
forward so that if we did request a third ship we have the 
ability to buy it. But again, we are in the early stages, 
ma'am. I do not want to make that commitment from the 
Department yet.
    Senator Hirono. Okay. When you say ``commitment from the 
Department,'' does that mean that you do have to request the 
money for the addition 5?
    Mr. Stefany. We would have to request the money for the 
additional 5, yes.
    Senator Hirono. Would you do that?
    Mr. Stefany. It is a budget process.
    Senator Hirono. You said if there is an interest in----
    Mr. Stefany. You have seen the 2023 budget, ma'am, and 2024 
we will have to play out through the normal requirements 
process. So I cannot make a commitment on 2024 and out, and you 
have seen our budget proposal for 2023, which is only 2 ships 
in 2023.
    Senator Hirono. Okay. But going forward, though----
    Mr. Stefany. We are kind of in a little----
    Senator Hirono. You see what I am getting at, right? I 
think some of us would like to get you to 3 ships instead of 2 
ships.
    Mr. Stefany. So our plan is to have a contract that will 
allow that, but we would have to discuss in the budget process 
actually how it gets paid for, if we were to do that.
    Senator Hirono. Okay. I personally would encourage that, 
because I assume that we need more of these ships, right? We 
need more destroyers.
    Mr. Stefany. I will have to let the Admiral discuss, 
actually, the requirements for destroyers.
    Senator Hirono. Admiral?
    Admiral Conn. The requirements for Large Surface Combatant 
is 96, at least from the latest INFSA and the--I am sorry, the 
Integrated Naval Force Structure Assessment that was done in 
2019. Then the Future Naval Force Study reduced that number a 
little bit, and in Alternative 3 we get up to 80, and again 
that was based on our understanding of industrial capacity. But 
it is Large Surface Combatants, Small Surface Combatants, to 
number of frigates, I do not look at any particular capability. 
I have to look across a task force, if you will, and how we are 
going to employ that force, with our submarines, and the 
dominance they have in the undersea domain, with the Large 
Surface Combatants, the Small Surface Combatants, and the 
carrier and the carrier wing.
    Senator Hirono. So do I understand you correctly, Admiral, 
that Option 3 of the three options you laid out, that Option 3 
gets you where you would like to be?
    Admiral Conn. It gets us closer to where we need to be.
    Senator Hirono. But how realistic is that option compared 
to the other two options, in terms of the funding that would be 
made available, and other considerations?
    Admiral Conn. The fiscal certainty of that option I really 
cannot speak to right now. I can say in terms of where we are 
today the answer would be no. But again, this is starting 
growth per the shipbuilding plan in 2028 and out in order to 
get to the, whether it be three DDGs per year, three frigates 
per year, three submarines per year, getting into an SSN(X) by 
the 2040s. I mean, all that, I will say, there is some 
uncertainty in that path forward.
    Senator Hirono. Thank you. Senator Cramer, would you like 
to do a second round.
    Senator Cramer. Yes, I would. Thank you.
    So, Mr. Stefany, as promised I am going to come back to the 
issue I mentioned in my opening statement about the double-
counting of the LHA-9, and just for everyone's clarity I am 
just going to go through the history real clearly, as best as I 
can.
    So the LHA-9 was previously authorized in fiscal year 2020, 
when we approved the procurement of the ship with incremental 
funding authority in the NDAA and added $650 million in the 
final appropriations bill.
    Subsequent appropriations bills have provided additional 
funding. After the 2021 budget request showed LHA-9 as a future 
procurement in 2023, the 2021 NDAA removed the ship to avoid 
double-counting it, and clarified in Section 126 that any ship 
added by Congress may not be specified as a new procurement 
quantity in future budget submissions.
    So the simple question is why does this budget request 
again show the LHA-9 as a new procurement in fiscal year 2023, 
and how is this consistent with Section 126?
    Mr. Stefany. Yes, sir. So I would say the 2023 budget, the 
goal of the folks who put together the budget was to show the 
year that we are going to award the contract for the ship, to 
construct the ship, which we are planning to do at the end of 
this year, at the beginning of fiscal year 2023. So those who 
put together the budget exhibits had the best intentions of 
showing when we are going to award the contract for the ship, 
and I believe, with the change in administration, not all were 
aware of the NDAA language that actually told us to do 
something different.
    So I do not think there was anything, you know, purposeful 
here. I think it was really just different parts of the 
Department not communicating well on providing you the budget 
exhibits that showed the ship as a 2023 ship in what was 
provided.
    What I do know is we would like to discuss with you 
further, you and the staff, when we do an incremental-funded 
ship, what the right metric is for that one in the accounting 
process. Is it when we order the contract? Is it when it is 
funded initially? What is the right method? CVN-81 is a little 
different story. CVN-80, a little different story. We would 
like to have a consistent approach. I know the Department, at 
the comptroller level, and we in the Navy want to get to a 
common understanding with you, so we would love to have that 
conversation, sir.
    Senator Cramer. Well, I think going forward that would be 
very helpful. If we did have a consistent pattern, protocols, 
that would help you. That would help the Congress. That would 
help the taxpayer better understand and have the type of 
transparency.
    In this case, I mean, it was so clear, I think so clearly 
laid out that to see this has been problematic.
    Mr. Stefany. Exactly, and what matters to me is we are 
going to start construction later this year and deliver that 
ship in 2028. That is what really matters to me.
    Senator Cramer. Well, I appreciate that and we appreciate 
the clarification. We will see whether something else can be 
done to improve going forward, for sure.
    General Heckl, I want to follow up on a line of questioning 
that Mr. Stefany had answered earlier, relating to the 
Commandant's requirement for traditional amphibious ships. What 
was his requirement?
    General Heckl. Sir, the Commandant's absolute requirement 
for traditional L-class amphibious warships is 31, more 
specifically, 10 LHA/LHD class and 21 LPD.
    Senator Cramer. So how important is continuing the LPD 
amphibious ship production line to meeting the Commandant's 
requirement?
    General Heckl. It is critical, sir, to meet that 
requirement.
    Senator Cramer. You have already answered how many more 
LPDs are needed.
    I see that the Commandant's top unfunded priority is $250 
million in advanced procurement funding for LPD-33. Can you 
explain how critical that request may be?
    General Heckl. So sir, again, within force design is our 
ongoing requirement as a Marine Corps by law to be the crisis 
response force for the Nation. Without those LPDs, sir, and the 
other amphibious, traditional L-class amphibious warships we 
cannot be there, and we are already struggling now. Case in 
point was the 22nd Marine Expeditionary Unit off the East 
Coast. General Wolters, the Supreme Allied Commander, Former 
Supreme Allied Commander of Europe, requested that that MEU, 
that Marine Expeditionary Unit and that amphibious unit sortie 
early to be on-station as the Ukrainian situation evolved or 
devolved, and we were not able to sortie the ship. When a 
reality, sir, based on the way we typically conducted heel-to-
toe deployments, the MEU should have been on-station and 
available for combatant commander tasking, and it was not.
    Senator Cramer. Thank you, General, and I yield. Thank you.
    Senator Hirono. Senator King, would you like round two?
    Senator King. I am going to submit a question for the 
record of a classified response to the admiral and the general 
in terms of defensive capabilities to emerging Chinese 
capabilities. I do not think I need to say more than that. I 
want to understand better what our strategy is for defending 
our forward-deployed naval and the marine littoral regiment. So 
I will be submitting that question. I look forward to your 
response.
    Thank you, Madam Chair.
    Senator Hirono. Senator Hawley.
    Senator Hawley. Thank you, Madam Chair. Just two more quick 
things. Mr. Stefany, I want to ask about Quickstrike mines if I 
could and then vertical launch tubes. On the Quickstrike mines, 
I see that they are at the bottom of the unfunded priorities 
list. Can you just walk me through that? This seems like an 
important defensive capability. Offensive mining is certainly 
important for the pacing scenario in the pacing theater, namely 
the fait accompli scenario. So can you help me understand the 
thinking here, or Admiral, if you prefer.
    Mr. Stefany. Yeah, I think since this is the CNO's list----
    Senator Hawley. Yeah. Go ahead. Go ahead, Admiral. That is 
fine.
    Admiral Conn. The Quickstrike extended-range mine is what 
is on the unfunded list, which gives you--I cannot talk ranges 
here but it is a little bit different system that is still 
under R&D.
    Senator Hawley. That is why it is at the bottom of the 
unfunded list----
    Admiral Conn. Correct.
    Senator Hawley.--because it is still in R&D?
    Admiral Conn. Correct.
    Senator Hawley. Okay. Fair enough. Let me ask you about 
vertical launch tubes. The Navy plans to cut a large number of 
these. Admiral Davidson has testified before the full committee 
and others that they expect the coming years to be particularly 
a dangerous zone, let us say, for Chinese aggression. How does 
the Navy plan to offset the loss here of strike capacity 
between now and the late 2020s, so end of this decade?
    Admiral Conn. In terms of the VLS tubes we have to be 
careful. A comparative view is part of Appendix 7, which is a 
classified annex to the shipbuilding plan. So you get the full 
view of not just we will have but what intel tells us China 
will have. So you have to look at that. We must be careful that 
we do not go domain-versus-domain and make that comparison. We 
have significant advantages in the undersea domain that we will 
continue to make modernization to maintain that dominance, and 
how, through operational art, we use our submarines and the 
capabilities they have to open up maneuver space for the air 
wing coming off the carriers and the long-range fires from our 
surface ships and distributed maritime operations. Yes, are 
taking risk in VLS between now and about 2030.
    I will say we have, with the DVGs that are delivering 
inside the FYDP, it is about 1,344 VLS tubes on new ships that 
are coming into the fold.
    So I fully acknowledge we are taking risk in VLS, but the 
investments we are making by getting rid of those VLS gives us 
a more capable, a more lethal Navy inside the FYDP.
    Senator Hawley. I guess what I am driving at, Admiral, is 
between now and 2030, when we are in this potential danger 
zone, are you confident--you are taking a chance and you have 
to make tough decisions--are you going to be able to offset any 
loss of striking ability? That is what I am driving at here.
    Admiral Conn. As part of the broader Joint Force, if you 
are asking me to characterize that risk, I do not think I would 
say it in a public hearing. But it is a fair question and I can 
take it for the record if you would like.
    Senator Hawley. Yeah, I appreciate that. Thank you, Madam 
Chair. That is all I have got.
    Senator Hirono. Thank you. I would like to thank all of you 
for coming before this Committee, and this hearing will come to 
a close. The record will remain open for 5 days. Thank you very 
much, everyone.
    [Whereupon, at 3:49 p.m., the Subcommittee adjourned.]

    [Questions for the record with answers supplied follow:]
          Questions Submitted by Senator Senator Mazie Hirono
                       virginia-class submarines
    1. Senator Hirono. Mr. Stefany, the contractors have started work 
on some of the boats in the latest multiyear contract for attack 
submarines, called the Block V multiyear contract. That is a contract 
to build two Virginia boats per year. However, before much work had 
begun on the Block V program, serious problems were emerging with 
achieving on-time deliveries of the boats from the previous contract, 
the Block IV program. The shipyards had been running 12 to 18 months 
behind contract delivery dates on the Block IV boats. It appears that 
this has led to increasing the cost estimates for Block IV boats yet to 
be delivered, cost and schedule increases for all the Block V boats, 
and cost increases for the boats in the Columbia-class program. It is 
apparent that, among other problems, the yards are struggling to find 
sufficient skilled workers and the supplier base is struggling to keep 
up. I also understand that the Navy now may be predicting additional 
schedule delays in the Block IV and Block V programs. What is the 
current status of the Virginia-class program?
    Mr. Stefany. The Virginia-class Submarine (VCS) program has 
delivered 21 submarines to date with 17 under contract through fiscal 
year 2023. The Navy is executing two multiyear procurement (MYP) 
contracts; fiscal year 2014 to 2018 (Block IV) and fiscal year 2019 to 
2023 (Block V).
    The submarine industrial base performance remains challenged to 
meet two per year construction. At the start of this year, the Navy 
conducted a detailed schedule analysis based on demonstrated 
shipbuilder performance and current impacts related to suppliers and 
workforce availability/experience. The review resulted in a shift in 
estimated delivery schedules for the remaining submarines in Block IV 
(7 ships) and Block V (10 ships) in President's Budget 2023. Block IV 
deliveries are anticipated to be approximately one year delayed from 
previous schedules provided with President's Budget 2022. Shipbuilder 
performance, supplier impacts and inflation are also resulting in the 
estimated cost increases seen in the fiscal year 2023 Budget 
submission. Block V is experiencing early schedule challenges with 
deliveries anticipated to be up to two and a half years later than 
originally planned.
    The VCS program is not causing cost increases on Columbia.
    The main drivers of the shifts in construction schedules are 
changing workforce demographics and shipbuilders failing to adapt their 
management practices to those realities, increasing first-time quality 
issues, and supply chain challenges, which were all exacerbated due to 
the rapid growth in submarine shipbuilding workload. The Navy is 
teaming with the shipbuilders to develop and execute a comprehensive 
plan focused on improving program performance. Efforts in strategic 
outsourcing, workforce development and proficiency, supplier base 
expansion and development, and new technologies are all necessary.
    Despite current cost and schedule challenges, VCS continues the 
trend of high operational readiness performance at delivery--as 
demonstrated by satisfactory Board of Inspection and Survey (INSURV) 
scores on the recent deliveries of USS Oregon (SSN 793) and PCU Montana 
(SSN 794) in February and March of 2022 respectively.

    2. Senator Hirono. Mr. Stefany, can you give us an update on the 
schedules for the Block IV and Block V procurement programs?
    Mr. Stefany. The Navy's fiscal year 2023 budget request for the 
Virginia-class submarine program reflects revised projected delivery 
dates for all VCS under contract. The Virginia-class program has 
delivered 21 submarines to date with 17 under contract through fiscal 
year 2023. The Navy is executing two multiyear procurement (MYP) 
contracts; fiscal year 2014 to 2018 (Block IV) and fiscal year 2019-
2023 (Block V).
    While these updated delivery dates reflect a delay for remaining 
Block IV (7) and Block V (10) submarines, they provide a realistic 
baseline by which to address and measure future program performance. 
The Navy is teaming with the shipbuilders, General-Dynamics Electric 
Boat (GDEB) and Huntington Ingalls--Newport News Shipbuilding (HII-
NNS), to execute a comprehensive plan focused on stabilizing and 
balancing the production system, building resiliency and efficiency in 
the Submarine Industrial Base (SIB), and meeting the two per year 
delivery requirement in the future.

    3. Senator Hirono. Mr. Stefany, what are the shipyards proposing to 
do to solve the problems?
    Mr. Stefany. The Navy is teaming with shipbuilders to stabilize 
production and execute a comprehensive plan to effect program 
performance. Efforts in strategic outsourcing, workforce development 
and proficiency, supplier base expansion and development, and new 
technologies are all necessary. The effort includes significant 
government and industry investment in building resiliency in the 
Submarine Industrial Base (SIB) to address supply chain capacity, 
capability and efficiency; partnering with state and local governments, 
and industry to develop the future shipbuilding workforce; outsourcing 
non-core shipyard work to the vendor base; and working with the 
shipbuilders to improve production efficiency within the shipyards, 
including first-time quality. Additionally, the Navy and the 
shipbuilders are investing in building the shipyard infrastructure 
required to meet current and future workload demands.

    4. Senator Hirono. Mr. Stefany, what is the Navy going to do to get 
the cost and schedule back under control for these programs?
    Mr. Stefany. The Navy and shipbuilders are committed to delivering 
the best submarines in the world to our sailors. This requires a 
continuous assessment of performance to build upon efforts that deliver 
results while redoubling focus on areas that underperformed. The Navy 
expects that the comprehensive improvement efforts will mitigate 
current unfavorable performance and stabilize schedules as the 
submarine enterprise ramps to one per year Columbia-class (CLB) and two 
per year VCS construction.
    The Navy is teaming with the shipbuilders to execute a 
comprehensive plan to effect performance improvements. Efforts in 
strategic outsourcing, workforce development and proficiency, supplier 
base expansion and development, and new technologies are all necessary. 
These include significant government and industry investment in 
building resiliency in the Submarine Industrial Base (SIB) to address 
supply chain capacity, capability and efficiency; partnering with state 
and local governments, and industry to develop the future shipbuilding 
workforce; outsourcing non-core shipyard work to the vendor base; and 
working with the shipbuilders to improve production efficiency within 
the shipyards. Additionally, Navy and the shipbuilders are investing in 
building the shipyard infrastructure required to meet current and 
future workload demands. The Navy is taking proactive steps to improve 
the shipbuilding industrial base, which is essential for VCS schedule 
recovery and CLB on time delivery.
               department of the navy aviation shortfalls
    5. Senator Hirono. Vice Admiral Conn, the Navy's strike fighter 
shortfall estimate has fluctuated widely over the past several years. 
In simple terms, there are two pieces to solving the strike fighter 
inventory gap. Buying new aircraft and extending the services lives of 
the ones we already have. The budget does not include buying new F/A -
18E/F aircraft, only F-35B and F-35C aircraft. What is your latest 
assessment of the strike fighter shortfall?
    Vice Admiral Conn. The Department of the Navy's (DON) assessment is 
that our current Strike Fighter Shortfall (SFSF) is best mitigated with 
a combination of extended service life of FA-18E/F and procurement of 
F-35C. The DoN has adequate 4th generation F/A-18 Super Hornet aircraft 
inventory, but requires more 5th generation F-35C aircraft to increase 
the lethality of the Carrier Air Wing (CVW) to meet current and 
emerging threats. The existing F/A-18 inventory is going through the 
Service Life Modification (SLM) program that extends service life while 
inserting the same Block III capabilities of new production aircraft. 
SLM Block III aircraft can be delivered for approximately one third the 
cost of a new a production F/A-18 Super Hornet.
    Any new procurement or investments need to be directed toward F-35 
and follow on capabilities to ensure the CVW maintain an ability to 
compete with emerging threats. Currently, the Navy has 559 F/A-18E/F 
aircraft with 68 new production aircraft still being delivered between 
now and fiscal year 2025. In conjunction with the SLM program, these 
numbers are enough to meet the operational demands placed upon Naval 
Aviation for deployments and also enough to meet the required 4th 
Generation/5th Generation mix inside a CVW. As more F-35Cs enter the 
Fleet, the overall requirement for F/A-18E/F aircraft will decrease 
while the combat capability of the CVW increases.

    6. Senator Hirono. Vice Admiral Conn, has as the situation improved 
since last year?
    Vice Admiral Conn. The Strike Fighter Shortfall (SFSF) situation 
has not improved since last year due to competing DON funding 
priorities. The DON is still able to manage current and projected 
Strike Fighter inventory to meet all operational requirements.

    7. Senator Hirono. Vice Admiral Conn, if not, why aren't you buying 
more aircraft to fill the gap?
    Vice Admiral Conn. The Navy is procuring new F-35C in order to 
increase the capability and lethality of the Carrier Air Wing (CVW) to 
meet current and emerging threats. The Navy physically has enough F/A-
18 Super Hornets to meet the 4th generation aircraft demands. These 
existing F/A-18 Super Hornets will be upgraded though our Service Life 
Modification (SLM) program that extends service life while inserting 
the same Block III capabilities of new production aircraft. SLM Block 
III aircraft can be delivered for approximately one third the cost of a 
new a production F/A-18 Super Hornet.
    Any new procurement needs to be F-35C aircraft to ensure the CVW 
advanced capabilities outpace adversaries for a future conflict. The 
Navy has requested six additional F-35C aircraft in the fiscal year 
2023 Unfunded Priorities List (UPL) and is committed to achieving the 
most lethal and capable CVW as soon as possible.

    8. Senator Hirono. Admiral Conn and General Heckl, the Air Force 
has been experiencing significant shortfalls in both pilots and in 
aircraft maintainers. Have the Navy and Marine Corps been suffering 
shortages in pilots and maintainers as well?
    Vice Admiral Conn. Naval Aviation continues to meet all operational 
requirements; however, pilot inventory challenges exist in certain 
type/model/series, specifically within the strike fighter (VFA) 
community primarily with operational Department Head (DH) and 
Instructor Pilot (IP) manning levels.
    All enlisted aviation maintenance ratings are manned between 98 
percent to 102 percent of requirement with the exception of the 
Aviation Ordnanceman rating, which is manned at 96 percent.
    Lieutenant General Heckl. The Marine Corps has had issues with F-35 
pilot and maintainer shortfalls. However, maintainer inventory levels 
for F-35 are now projected to be healthy for the duration of the 
transition. Pilot inventory levels continue to grow and improve, and it 
is important to clarify that every F-35 operational squadron is 
sufficiently staffed with F-35 pilots. The shortfall exists with staff 
and other non-flying billets, which have a lower-than-desired number of 
jet pilots, but that shortfall continues to improve each year.

    9. Senator Hirono. Vice Admiral Conn, Lieutenant General Heckl, if 
so, how large are the shortages and what are you doing to correct them?
    Vice Admiral Conn. The strike fighter (VFA) community currently has 
Department Head (DH) gaps in 22 of 34 squadrons with only 104 of 126 
(82.5 percent) of VFA DH billets filled. Naval Aviation is mitigating 
this shortfall by slating only three DHs per squadron. Additionally, 
although overall VFA junior officer manning has improved to 89 percent 
of billets authorized (BA), strike fighter instructor pilot (IP) 
manning remains below requirements at 86 percent of BA with mitigations 
that include tour length extensions and the utilization of post-DH 
pilots, activated reservists, and Professional Flight Instructors.
    The Navy has been working to address the pilot manning shortfall 
through both monetary and non-monetary incentives. The fiscal year 2022 
Aviation Department Head Retention Bonus program approved the VFA pilot 
community to remain at the highest tier level ($35,000 per year). In 
addition to the DH bonus, Navy has pursued and encouraged non-monetary 
incentives to address manning shortfalls including increased 
professional growth opportunities such as in-residence graduate 
education; Career Intermission Program and concierge detailing to 
assist with family planning; addressing quality of life and service 
challenges at remote locations such as Lemoore, CA, Fallon, NV, and 
China Lake, CA; and offering the Professional Flight Instructor program 
to allow some aviators to serve continuously as flight instructors.
    The Aviation Ordnance (AO) rating is short by 331 of 8,922 sailors, 
mainly in the Journeyman payband (E5-E6). Our current efforts to remedy 
the shortage consists of retention levers:
      Professional Apprenticeship Career Track (PACT) is a 
program designed for enlisted sailors to enter into an apprenticeship 
program that provides apprentice-level formal and on the job training 
that leads to a permanent rate/career field within 2 years. AO is 
historically a popular rating chosen by PACT sailors.
      Selective Re-enlistment Bonus is being offered for the 
targeted Journeyman pay grades.
      Sea Duty Incentive Pay (SDIP) is being offered to 
incentivize sailors to voluntarily remain on or transfer to sea duty 
billets in order to prevent critical manning gaps on sea duty. SDIP 
levels for the AO rating in the journeyman paygrades of E-5 and E-6 are 
set at $800 per month and $700 per month respectively.
      Convert-in opportunity to the AO rating is being offered 
to sailors who either by choice or by necessity leave their current 
rating for another.
      High Year Tenure waivers are being used where possible.
      Assignment Incentive Pay (AIP) aims to increase voluntary 
assignment to billets determined to be historically hard to fill. 
Eligible sailors in paygrades E5-E9 can request a maximum bid of $250 
per month in the detailing marketplace for commands located at Lemoore, 
CA, China Lake, CA and Fallon, NV.
    Lieutenant General Heckl. Both F-35 pilot and maintainer numbers 
are projected to be healthy for the duration of the F-35 transition. 
Maintainer inventory levels were improved by capitalizing on the 
experience base in other platforms and converting them to F-35. The 
Marine Corps continues to look at ways to further capture the 
experience base from sun-setting platforms, like the AV-8B and FA-18, 
and transition that to F-35. The Marine Corps has increased pilot 
inventory levels by prioritizing pilot production through resourcing 
our flight schools and fleet replacement squadrons with the necessary 
manpower and equipment. However, the Marine Corps recognizes that pilot 
production is only half the equation, and retention is equally 
important. The Marine Corps' Manpower branch is working aggressively on 
ways to retain our experienced aviators so that in the future we can 
possess the most proficient pilots for our fifth-generation fighter 
aircraft. The Marine Corps continues to be on a positive sustainment 
path, and F-35 squadron staffing is not at risk.
                       usmc ground modernization
    10. Senator Hirono. Lieutenant General Heckl, while ground based 
anti-ship missile launching systems do add a layered threat against a 
maritime adversary, those that will be operated within the weapons 
engagement zone, as the Marine Corps is developing as a concept, will 
be inherently vulnerable. How is the Marine Corps balancing offensive 
and defensive capabilities development in its Littoral Regiments in a 
manner that keeps the new organization truly expeditionary and 
effective against a peer competitor?
    Lieutenant General Heckl. The Marine Corps concept of operations is 
as a stand-in force that has the ability to gain and maintain custody 
of adversary targets--and hold some of those targets at risk 
continuously in support of targeting for the naval and joint force. We 
recognize that our value, largely, is in daily competition, building a 
strong coalition of partners, and being ready at a moment's notice to 
hold the adversary to task. In the realm of the defense, we recently 
finalized a functional concept which addresses integrated air and 
missile defense and force protection. These concepts reinforce the 
employment of systems which enable forces to leverage deception, 
mobility, and early detection in order to provide an additional layer 
of defense within the weapons engagement zone. While this functional 
concept--and its suggested force multiplying capabilities--require 
further development, planning, resourcing, training and a unified 
effort across the Naval Expeditionary Force, this concept will greatly 
strengthen our defensive and force protection capabilities. Meanwhile, 
we are also developing logistic capabilities to move small forces 
quickly and constantly in order to overcome the adversary's ability to 
find, fix, target and track us. Through enhanced signature management 
and decoy/deception capabilities, combined with high-mobility, we 
believe adversary weapons effects can be overcome.

    11. Senator Hirono. Lieutenant General Heckl, as the Marine Corps 
continues to transform into a more flexible amphibious force, where do 
you see the most potential for joint systems to facilitate your 
efforts?
    Lieutenant General Heckl. Joint systems are critical to the 
completion of the digital kill web and must have a robust command and 
control architecture that will enable joint decisionmaking and 
interoperability. Joint exercises conducted with Marine units on the 
ground allow the Marine Corps to improve both its concept for stand-in 
forces and expeditionary advanced based operations. Additionally, the 
capabilities provided by the Common Aviation Command and Control 
System, especially its ability to communicate with joint systems, such 
as Link-16, have been used to integrate all elements of the Marine Air 
Ground Task Force into the joint fight.
                       change for logistics fleet
    12. Senator Hirono. Mr. Stefany, the Navy has indicated that 
operations in a contested environment meant that the Navy's logistics 
fleet will need to include smaller, faster, multimission transports. 
Two year ago, Secretary Guerts indicated in his prepared testimony 
that, ``the Navy will commence with Concept Studies to evaluate the 
next generation medium lift intra-theater amphibious platforms and 
logistics ships.'' What progress have you made progress on implementing 
these concepts or sorting through alternatives since last year, and has 
the situation improved?
    Mr. Stefany. Industry Studies for the Next Generation Logistics 
Ship (NGLS) program were awarded on 17 December 2021 for initial 
Concept Studies to Austal, Bollinger, and TAI Engineers. The results 
from these studies will inform a commercial alternative to be analyzed 
during the Analysis of Alternatives (AOA) phase for the NGLS program. 
The AOA is anticipated to complete in fiscal year 2023. Additionally, 
Next Generation Logistics Tactics, Techniques & Procedures Ship (NTS) 
Charter Demonstrations and Operational Logistics (OPLOG) studies are 
ongoing. These demonstrations and studies are intended to provide proof 
of concept for NGLS Concept of Operations (CONOPS).
    Regarding amphibious intra-theater platforms, the AOA is complete 
and concluded that a purpose built ship is best suited for the mission 
from a cost and effectiveness perspective. The Navy awarded the Concept 
Study/Preliminary Design effort to five industry partners June 2021 
(Austal, Bollinger, Fincantieri, VT Halter, and TAI Engineers). The 
Concept Study phase completed in October 2021. The Navy exercised the 
Preliminary Design options with all five industry partners in January 
2022. Early industry engagement for refinement of concepts and 
requirements will aid the Navy in reducing risk to cost-effectively 
meet mission needs.

    13. Senator Hirono. Mr. Stefany, what is the schedule for getting 
to decisions on the appropriate path forward?
    Mr. Stefany. The NGLS AOA is ongoing and expected to complete in 
fiscal year 2023 with a preferred material solution. The Navy is on 
track to support the acquisition timeline to procure the lead ship, 
which is notionally planned in fiscal year 2026.
    The Navy recently approved the medium lift intra-theater amphibious 
platform AOA and is incorporating the AOA results and feedback from the 
five industry concept studies and preliminary design efforts into the 
Capabilities Development Document (CDD). Next steps include preliminary 
design, and formal definition of requirements in the CDD. The Navy is 
on track to have an approved CDD to support the acquisition timeline to 
procure the lead ship, which is notionally planned in fiscal year 2025.

    14. Senator Hirono. Lieutenant General Heckl, what are the 
implications for amphibious shipping of operations in a contested 
environment?
    Lieutenant General Heckl. Naval forces must campaign, by persisting 
forward to respond quickly to a crisis, and enable integrated 
deterrence. Fleet Marine Forces deployed on and employed from multi-
mission capable amphibious warfare ships as part of a Naval force 
provide unique attributes that generate options and decision space for 
national leadership and combat credible options for Fleet and Joint 
force commanders when strategic agility, combat credible deterrence and 
prompt crisis and contingency response is required, regardless of 
access to overseas bases.
    Amphibious Ready Groups/Marine Expeditionary Units (ARG/MEUs) 
exemplify globally deployable, integrated all-domain naval power. As 
one of several standard combat credible fleet constructs, each ARG/MEU 
is organized, trained, equipped, and certified to operate forward to 
cooperate with our allies and partners in key regions, yet remain 
capable of strategic, operational, and tactical maneuver in support of 
regional crisis and global contingency response. It represents a combat 
credible and operationally suitable force effective for competition, 
countering gray zone activities and setting the conditions for the 
joint force. The Navy-Marine Corps team persistently operates forward 
to compete below the level of armed conflict and respond to crises 
while remaining ready, if necessary, to swiftly transition to conflict 
and achieve Joint Force and Fleet objectives.
    To operate in the future environment, future MEUs must have the 
right mix of capabilities, which requires an updated conceptual 
foundation for employment that is informed by analysis and 
experimentation. To address this concept of employment we are 
developing a ``Concept for 21st Century Amphibious Operations.''
    As adversary capabilities and tactics improve, updating our 
mission, enemy, troops/fires, terrain, space, time, and logistics 
(METTSTL) analysis will enable a partnered maritime defense in depth as 
part of an integrated Naval kill web that can deny the adversary 
freedom of action.
    Moreover, amphibious warfare ship survivability and lethality 
should not be viewed through a lens of an organic single ship 
capability, but rather through its holistic aggregate (system of 
systems) capability and capacity enabled by embarked naval forces and 
in the context of cross-functional Fleet operations.
    The Marine Corps is designing, building, and investing in a 
relevant and capable Fleet Marine Force that will operate in contested 
environments and that requires no less than 31 ready, lethal and 
survivable amphibious warfare ships in order to meet our national 
imperative as a Naval expeditionary force.

    15. Senator Hirono. Lieutenant General Heckl, how will this 
contested environment affect the Marine Corps' ability to conduct 
amphibious assault operations?
    Lieutenant General Heckl. The Marine Corps is designing, building 
and investing in a relevant and capable Fleet Marine Force that will be 
capable of operating in contested environments and that requires no 
less than 31 ready, lethal, and survivable amphibious warfare ships to 
meet our national imperative as a naval force.
    The Marine Corps is entering the fourth year of a 10-year 
modernization effort to create a single, integrated total force that 
supports joint maritime campaigning and other joint operations, yet 
retains the ability to perform traditional Marine Corps roles and 
functions, such as global crisis response. Understanding that the 
pacing threat for Force Design 2030 and the National Defense Strategy 
is the armed forces of the People's Republic of China (PRC), the Marine 
Corps is modernizing to build a force capable of executing concepts 
against this pacing threat, not one exclusively tailored to them.
    In the most recent Force Design 2030 Annual Update issued in May 
2022, the Commandant of the Marine Corps tasked the Marine Corps with 
developing a ``Concept for 21st Century Amphibious Operations.'' This 
concept will be linked to how the Marine Corps' thinking has evolved 
after 3 years and is continuing to evolve in its ongoing Campaign of 
Learning through wargaming, analysis, experimentation, and large-scale 
Fleet Marine Force exercises.
    As amphibious warships are being decommissioned faster than they 
are procured and delivered, the inventory of amphibious warfare ships 
under the current plan will decrease to 25 ships over the next few 
years. With this lower inventory, we will likely still support the 
Indo-Pacific region, while accepting risk elsewhere in the world. For 
instance, Marines from amphibious warfare ships in the past decade 
evacuated the US embassy in Yemen; reinforced the embassy in Iraq; put 
artillery units ashore to bombard ISIS in Syria; and most recently in 
August, were the first on the ground to support the evacuation efforts 
out of Afghanistan. The Marine Corps' ability to respond to crises like 
these in AFRICOM, CENTCOM and EUCOM will be at risk as the number of 
amphibious warfare ships decrease below 30.
                               __________
             Questions Submitted by Senator Jeanne Shaheen
                        light amphibious warship
    16. Senator Shaheen. Vice Admiral Conn, the fiscal year 2023 
shipbuilding plan defers the start of procurement of Light Amphibious 
Warships by two years, from fiscal year 2023 to fiscal year 2025, and 
it shows only a slow ramp-up in annual procurement quantities over the 
final three years of the FYDP. This does not appear to align with the 
Marine Corps' desire to get these ships into service sooner rather than 
later. The Navy states that it deferred the procurement start of these 
ship two years because it is still examining requirements for these 
ships. Continually examining and adding requirements increase costs and 
complexity of the platform. What additional requirements is the Navy 
considering and how will it impact the program?
    Vice Admiral Conn. The Navy is following the deliberate 
requirements process for LAW in order to determine the material 
solution that will meet the Marine Littoral Regiment's need for 
maneuver, mobility and sustainment. Due to the requirement to operate 
in highly contested environment, the Navy is working closely with our 
industry partners to help define the level of survivability required 
for LAW. The shift of the lead ship from fiscal year 2023 to fiscal 
year 2025 and ramp-up in the FYDP aligns the program milestones to 
ensure the Navy is procuring the best ship to complete the mission.
    Additionally, the Navy-Marine Corps team is evaluating a broad 
range of options to provide a bridging strategy until the Light 
Amphibious Warship (LAW) enters the fleet in sufficient numbers to meet 
Marine Littoral Regiment maneuver, mobility and sustainment 
requirements.

    17. Senator Shaheen. Lieutenant General Heckl, since 2020, the 
Marine Corps has been undertaking a transformation effort known as 
Force Design 2030 as a way to ready the service for the possibility of 
a sea-based conflict in the Indo-Pacific region. Some critics say the 
Light Amphibious Warship's design may not survive Marine Corps 
operations, adding to production costs down the road. How is the Marine 
Corps balancing affordability with operational survivability?
    Lieutenant General Heckl. A comprehensive analysis of alternatives 
was conducted to examine Light Amphibious Warship (LAW) survivability. 
The findings reveal that by improving design, employing proper 
operational methods, and applying technological means the LAW can 
significantly reduce the probability of detection and intercept, which 
in turn drastically improves survivability. Survivability is important, 
and by working with experts throughout DOD and industry, the LAW will 
be designed and built to an affordable survivability standard.
                      constellation-class frigate
    18. Senator Shaheen. Mr. Stefany, the Navy previously planned on 
procuring Constellation-class (FFG-62) frigates at a steady rate of two 
per year. In the Navy's fiscal year 2023 5-year shipbuilding plan, that 
has been reduced to three ships every two years, or an average rate of 
1.5 ships per year. Why did the Navy do that, and how is that 
consistent with the Navy's goal of moving toward a more-distributed 
fleet architecture that includes a larger proportion of smaller ships 
like the FFG-62?
    Mr. Stefany. The fiscal year 2023 Shipbuilding Plan restructures 
the FFG 62 procurement profile to 1/2/1/2/1 for fiscal year 2023-2027 
due to affordability and design maturation. The reduction to one ship 
in fiscal year 2023 manages execution risk in the FFG program for 
fiscal year 2023 as the shipyard works to start construction on the 
lead ship later this year.
    Assuming no real budget growth, the plan beyond fiscal year 2024 
does not procure all FFGs at the desired rate (2-3 per year), but does 
maximize capability within projected resources, industrial factors, and 
technology constraints to build the most capable force. Overall, this 
approach accepts risk in capacity in order to field a more capable and 
ready force.
                               __________
               Questions Submitted by Senator Angus King
    defense against hypersonic missiles and evolving chinese threats
    The Committee has received multiple briefings about China's 
progressive leaps ahead in hypersonic weapon development and other 
offensive capabilities. I am concerned that our joint force elements in 
the Indo Pacific region would be at high risk in a fight with China.
    19. Senator King. Vice Admiral Conn, please provide a classified 
response on the ability for the aircraft carrier and the carrier strike 
group to operate and impose cost on People's Republic of China (PRC) 
elements, in a potential fight, while concurrently defending against 
evolving threats (including advanced anti-ship missiles and hypersonic 
weapons) in a denied/degraded electromagnetic spectrum environment.
    Vice Admiral Conn. [Deleted.]

    20. Senator King. Lieutenant General Heckl, please provide a 
classified response on the ability for the Marine Littoral Regiment to 
operate and impose cost on PRC elements, in a potential fight, while 
concurrently defending against evolving threats (including hypersonic 
weapons) in a denied/degraded electromagnetic spectrum environment.
    Lieutenant General Heckl. [Deleted.]
                               __________
               Questions Submitted by Senator Thom Tillis
                       depot-level sustainability
    21. Senator Tillis. Vice Admiral Conn and Lieutenant General Heckl, 
in the National Defense Authorization Act for Fiscal Year 2022, the 
Committee called on the Navy and Marine Corps to focus on depot-level 
sustainability, especially at FRC East aboard MCAS Cherry Point. FRC 
East is the Vertical Lift Center of Excellence and is a leader in 
pioneering public-public partnerships with the State of North Carolina, 
which I strongly support. What are the Navy and Marine Corps doing to 
ensure the long-term stability and sustainability of its organic 
aviation depots?
    Vice Admiral Conn. The Department of the Navy is currently 
developing a long-term plan to transform the organic Naval aviation 
maintenance organization by modernizing and optimizing facilities and 
equipment, developing a clear human capital strategy and transitioning 
to the digital depot required to support the Air Wing of the Future.
    On 29 April 2022, the Navy submitted a 5-year plan to the 
Subcommittee on Readiness, Committee on Armed Services, which outlines 
the near-term infrastructure efforts at the three aviation depots. This 
Infrastructure Modernization and Optimization plan is a key enabler for 
providing the Fleet the mission capable aircraft they need at a cost 
the Navy can afford. The plan integrates all infrastructure and 
industrial plant equipment investments at the Navy's three aviation 
depots to improve Navy maintenance capabilities by expanding depot 
capacity and optimizing depot configuration. The Department of Navy has 
resourced an H-53K Gearbox Repair and Test facility as part of the 
President's Budget 2023 submit and has programmed with the HQMC an F-35 
Aircraft Sustainment Center on MCAS Cherry Point.
    This plan will enable the aviation depots to synchronize business 
process improvements with facility, equipment and digital technology 
upgrades to improve repair cycle times and reduce operating costs. It 
is the foundation for strategic investment in the Navy's organic 
industrial base necessary to ensure that industrial facilities are 
properly positioned and optimized to maintain legacy aircraft, as well 
as the next generation family of systems under the Naval Aviation 
Enterprise (NAE) governance.
    Lieutenant General Heckl. The Department of the Navy is currently 
developing a long-term plan to transform the organic Naval aviation 
maintenance organization by modernizing and optimizing facilities and 
equipment, developing a clear human capital strategy and transitioning 
to the digital depot required to support the modern Marine Corps 
Aviation Combat Element.
    On 29 April 2022, the Navy submitted a 5-year plan to the 
Subcommittee on Readiness, Committee on Armed Services, which outlines 
the near-term infrastructure efforts at the three aviation depots. This 
Infrastructure Modernization and Optimization plan is a key enabler for 
providing the Fleet the mission capable aircraft they need at a cost 
the Navy can afford. The plan integrates all infrastructure and 
industrial plant equipment investments at the Navy's three aviation 
depots to improve Navy maintenance capabilities by expanding depot 
capacity and optimizing depot configuration.
    This plan will enable the aviation depots to synchronize business 
process improvements with facility, equipment, and digital technology 
upgrades to improve repair cycle times and reduce operating costs. It 
is the foundation for strategic investment in the Navy's organic 
industrial base necessary to ensure that industrial facilities are 
properly positioned and optimized to maintain legacy aircraft, as well 
as the next generation family of systems under the Naval Aviation 
Enterprise governance.

    22. Senator Tillis. Vice Admiral Conn and Lieutenant General Heckl, 
what support can you lend to partnerships with the State of North 
Carolina, especially at the Global TransPark?
    Vice Admiral Conn. The Navy and Marine Corps are committed to 
leveraging public-private partnership opportunities and are 
specifically looking at current opportunities with the State of North 
Carolina at Global TransPark. The Navy will look at all opportunities 
that are in the best interest of the government to maximize our depot 
capacity, reduce cost of ownership, and foster cooperation with private 
industry in accordance with all applicable laws and DOD guidance. North 
Carolina businesses--the Global TransPark among them--provide critical 
competition undergirding this public-private partnership supporting 
Navy and Marine Corps Aviation, both now and into the future.
    Lieutenant General Heckl. The Navy and Marine Corps are committed 
to leveraging public-private partnership opportunities that are in the 
best interest of the government to maximize our depot capacity, reduce 
cost of ownership, and foster cooperation with private industry in 
accordance with all applicable laws and DOD guidance. North Carolina 
businesses, including the Global TransPark, provide critical 
competition undergirding this public-private partnership supporting 
Navy and Marine Corps Aviation both now and into the future.
                               __________
              Questions Submitted by Senator Dan Sullivan
                     amphibious warship requirement
    23. Senator Sullivan. Lieutenant General Heckl, in a statement to 
Defense News on April 4th, you stated, ``the Marine Corps has a 
requirement for absolutely no less than 31 amphibious warfare ships,'' 
and also highlighted that the current fiscal year 2023 funding plan 
would shrink the amphibious force to just 25 ships in the next five 
years. Could you please elaborate on the operational imperative for 31 
amphibious warfare ships?
    Lieutenant General Heckl. The Marine Corps has a requirement for no 
less than 31 amphibious warfare ships. As ships are being 
decommissioned faster than they are procured, delivered, and eventually 
employed, the inventory under the current plan will decrease to 
approximately 25 ships over the next few years. With this lower 
inventory, we will likely still support the Indo-Pacific region but 
will have to accept risk elsewhere in the world. For instance in the 
past 12 years in AFRICOM and CENTCOM, Marines from amphibious warfare 
ships evacuated US embassies in Libya and Yemen; reinforced the embassy 
in Iraq; rescued a downed Air Force pilot in Libya; put artillery units 
ashore to bombard ISIS in Syria; and most recently in August, were the 
first on the ground to support the evacuation efforts out of 
Afghanistan. The Marine Corps' ability to respond to crises like these 
in AFRICOM, CENTCOM and EUCOM will be at risk as amphibious warfare 
ship numbers decrease to approximately 25 ships in the next few years 
and remain at that level for the remainder of the decade.

    24. Senator Sullivan. Lieutenant General Heckl, how would having 
only 25 amphibious warships degrade our ability to deter and, if 
necessary, defeat an adversary?
    Lieutenant General Heckl. The primary deployed formation of 
America's crisis response force is a Marine Expeditionary Unit (MEU) 
aboard a Navy Amphibious Ready Group (ARG). The ARG consists of 1 LHA 
and 2 LPDs. Removing 7 amphibious warfare ships reduces the battle 
force inventory by one-third, or over two ARGs worth of expeditionary 
warfare capacity.
    With our current inventory of 32 amphibious warfare ships we can 
produce an average campaigning global presence of 2.5 deployed ARG/MEUs 
at any given time. This readiness allows for consistent campaigning 
activities that do not cede key areas of the global commons to the 
enemy, making it difficult to retake that terrain after a conflict has 
commenced. This same formation enables joint force maneuver during the 
early stages of conflict--a key factor in denying the enemy's ability 
to achieve fait accompli objectives as observed in campaign analyses.
    With 25 ships and based on historical readiness rates, the Marine 
Corps projects an average global presence of 1.9 ARG/MEUs deployed. 
Gaps between the consecutive ARG/MEUs and our forward presence will 
become pronounced and are likely to increase substantially over time 
due to a proportionally higher demand on a smaller set of aging 
platforms. Moreover, if the Nation decides to conduct an amphibious 
assault in a formation larger than an ARG/MEU, our war planning 
requirements dictate 15-20 amphibious warfare ships. The Marine Corps 
estimates that with an inventory of 25 ships, a significant effort 
would be required to assemble an amphibious task force of that size.
    An inventory of 25 amphibious warfare ships reduces our Nation's 
forward presence that supports campaigning and limits our Nation's 
ability to respond to crisis. Moreover, the limited amphibious warfare 
ship inventory increases the time necessary to assemble assets in 
conflict. Last, an inventory of 25 amphibious warfare ships poses a 
significant risk for training and readiness as substantiated by the 
KEARSARGE ARG's inability to deploy inside of 30 days prior to its 
scheduled departure, despite the fact that today's battle force 
inventory includes 32 L-class ships.

    25. Senator Sullivan. Vice Admiral Conn, how are the Navy and 
Marine Corps working together to resolve their differences regarding 
the amphibious ship requirement?
    Vice Admiral Conn. The Navy and Marine Corps team have been in 
constant dialog to assess our requirement for amphibious ships from an 
analytical perspective. The Navy and Marine Corps co-lead the 
Amphibious Fleet Requirement Study with the Navy's Assessment Division 
(OPNAV N81) and the Marine Corp's Operations Analysis Directorate (OAD) 
leading the analysis. Three table top exercises conducted as part of 
the study were held in Quantico, VA at the OAD with stakeholders from 
the OPNAV staff alongside Marine Corps subject matter experts from 
Concepts Development and Integration (CD&I), NAVSEA, and the Fleet 
Marine Force. The study was a joint effort to determine requirements 
across the range of operations to support presence, deterrence and 
crisis response with the study providing the Department of the Navy the 
requirement for both traditional amphibious ships and the Light 
Amphibious Warship. The study team is in the process of briefing senior 
leaders on the results of the study.
                            divest to invest
    26. Senator Sullivan. Lieutenant General Heckl, in your statement 
submitted to this subcommittee, you write, ``[i]n this budget request, 
the Navy/Marine Corps Expeditionary Ship Interdiction System (NMESIS) 
continues to be the Marine Corps' top modernization priority and is the 
critical lethality component to our anti-ship capability.'' Continuing 
later in the statement, you write, ``the Marine Corps has successfully 
tested NMESIS twice, once in November 2020 and more recently in August 
2021.'' What did these two operational tests show you that allowed the 
Marine Corps to request $345 million for the program in the fiscal year 
2023 budget?
    Lieutenant General Heckl. Guided Flight Tests, Characterization 
Tests, and Early User Evaluations for the Navy/Marine Corps 
Expeditionary Ship Interdiction System (NMESIS) have been ongoing since 
2020 with positive results, leading to a planned fiscal year 2022 3d 
Quarter Operational Assessment that includes Ballistic Flight Tests. 
Characterization Testing has assessed leader/follower operations, cross 
country movements, road movement, and deep water fording. Early User 
Evaluation has reported positive results in execution of three 
different mobility field exercises and two raid missions utilizing KC-
130's with simulated firing missions and 11th Marines continues to 
evaluate the system. Additionally, testing and certification for 
transport via helicopter (externally), landing craft air cushion, and 
KC-130 has been completed.
    Based on the NMESIS program's positive trend, the Service has 
request $343.8 million to procure 24 NMESIS systems and 115 Naval 
Strike Missiles. These procurements will build on the initial fiscal 
year 2022 procurement, increasing inventory levels to support 
operational requirements.

    27. Senator Sullivan. Lieutenant General Heckl, the Marine Corps is 
quickly divesting of several legacy weapon systems to field 
capabilities like NMESIS. This process has not been without some 
internal Department of Defense (DOD) controversy regarding whether the 
Marine Corps would keep the $8 billion in savings it generated through 
divestment so it could invest in new capabilities. How is the Marine 
Corps balancing the need to validate new concepts with the need to 
rapidly field necessary new capabilities?
    Lieutenant General Heckl. The Marine Corps must be ready to respond 
to a crisis and be ready to fight, both now and in the future. The 
balance needed to execute Service responsibilities while modernizing is 
a question of risk of what, to what, and of when. The Service balances 
this risk by fielding modernized systems with capabilities that are 
applicable in a peer fight, as well as across the range of military 
operations. Moreover, the Marine Corps recognizes that any delay in 
modernization only exacerbates that risk, especially when considering 
the context that the pacing threat continues to increase its defense 
spending to develop and field advanced systems. This balance between 
tempo of modernization and capabilities is continually assessed through 
experimentation--live, virtual, and constructive--to inform Service-
level decisions.
                        light amphibious warship
    28. Senator Sullivan. Lieutenant General Heckl, the Navy announced 
recently that the Light Amphibious Warship would be delayed again, this 
time until fiscal year 2025. In your estimate, how close is the Marine 
Corps to validating the Light Amphibious Warship (LAW) requirements for 
production and delivery?
    Lieutenant General Heckl. The Light Amphibious Warship (LAW) 
analysis of alternatives (AoA) and final report is complete. Next 
actions include AoA sufficiency analysis by the Cost Assessment and 
Program Evaluation office, a Joint Staff Review, a Joint Requirements 
Oversight Council (JROC) review, and JROC memorandum publication. These 
actions are scheduled to occur between now and July 2022. This process, 
coupled with inputs from industry, will inform the writing of the 
capabilities development document (CDD), planned to be approved in 
early fiscal year 2023. Prior to CDD publication, preliminary design is 
expected to be complete in August 2022.

    29. Senator Sullivan. Lieutenant General Heckl, I understand the 
Marine Corps plans to lease two commercial stern-ramp landing vessels 
starting in late summer 2022 to experiment with the LAW concept. Is 
this a preliminary effort to validate the LAW's requirements, give 
Marine Littoral Regiments platforms to experiment, or both?
    Lieutenant General Heckl. The Marine Corps is leasing an existing 
civilian Offshore Support Vessel, modified with a stern beach landing 
capability, to support service level experimentation over the next 5 
years. While experimentation is the primary purpose, the Marine Corps 
anticipates these actions will help inform and validate Light 
Amphibious Warship requirements.

    30. Senator Sullivan. Lieutenant General Heckl, some DOD officials 
and commentators have questioned the survivability of these Light 
Amphibious Warships given their comparative lack of defensive systems. 
Can you explain why and how these ships are survivable?
    Lieutenant General Heckl. A comprehensive analysis of alternatives 
was conducted to examine Light Amphibious Warship (LAW) survivability. 
The findings reveal that by improving design, employing proper 
operational methods, and applying technological means the LAW can 
significantly reduce the probability of detection and intercept, which 
in turn drastically improves survivability. To operate effectively in 
key maritime terrain littoral maneuver is a primary function to enable 
success. The survivability of the entire Stand-in Force is enhanced 
when they can be delivered to a shoreline, a littoral transition point, 
at the time and place of our choosing and execute the functions 
outlined in expeditionary advanced base operations. The unit's 
survivability is further enhanced when the unit can rapidly displace 
from key maritime terrain and reposition via LAW.
                               __________
               Questions Submitted by Senator Josh Hawley
            long range anti-ship missile (lrasm) production
    31. Senator Hawley. Mr. Stefany, what would it take to expand LRASM 
production lines so we can field as many LRASMs as possible now, while 
also increasing our ability to surge LRASM production prior to or 
during a potential conflict?
    Mr. Stefany. The Navy Long Range Anti-Ship Missile (LRASM) 
production line is shared with the Air Force Joint Air to Surface 
Standoff Missile (JASSM). The maximum production capacity is 720 
missiles of either variant with 120 maximum allotted to LRASM, since 
current world events have driven the planned production of Air Force 
JASSM in consuming all additional production capacity. The President's 
Budget 2023 Request does not currently max out the production capacity 
of 120 LRASMs. With an additional $109.8 million provided in fiscal 
year 2023, 28 more LRASMs can be produced to max out the production 
capacity.
    The prime contractor is currently working with sub vendors to 
provide a proposal for the increased production capacity of both 
missiles. A Rough Order of Magnitude provided by the contractor 
identified $36.0 million for LRASM unique tooling and components to 
increase the production line quantity to 240 LRASMs of the C-1 variant. 
A full proposal to include all common JASSM/LRASM tooling and 
components is expected in the July 2022 timeframe.
                 vertical launch system (vls) capacity
    32. Senator Hawley. Admiral Conn, how many VLS tubes will the Navy 
lose from the fleet between now and 2030?
    Vice Admiral Conn. Based on the Navy's Annual Long-Range Plan for 
Construction of Naval Vessels for Fiscal Year 2023, Alternative 1 force 
structure, the Navy is forecasted to decommission 3932 surface and 
undersea VLS tubes from fiscal year 2022 through the end of fiscal year 
2030.

    33. Senator Hawley. Admiral Conn, how many VLS tubes will the Navy 
add to the fleet between now and 2030?
    Vice Admiral Conn. Based on the Navy's Annual Long-Range Plan for 
Construction of Naval Vessels for Fiscal Year 2023, Alternative 1 force 
structure, the Navy is forecasted to gain 2560 surface and undersea VLS 
tubes through new construction from fiscal year 2022 through the end of 
fiscal year 2030.

    34. Senator Hawley. Admiral Conn, you testified, ``Yes, we are 
taking risk in VLS between now and about 2030.'' When asked further 
about the character of that risk, you offered to provide a response for 
the record. This in mind, how would you characterize the risk generated 
by the Navy's net loss of VLS tubes between now and 2030?
    Vice Admiral Conn. There is a reduction in the overall number of 
VLS cells but warfighting capability and capacity can't just be 
measured by the number of VLS cells, it also needs to take into account 
the weapons the can be employed from those cells as well as the combat 
system elements supporting the engagements. The older ships that will 
decommission are not as capable as the newer ships in terms of Anti-Air 
Warfare or Ballistic Missile Defense, with less capable weapons being 
employed paired with less capable combat systems and radars in many 
cases restricting effectiveness to Anti-Air Warfare only within the 
ships own radar horizon.
    The Navy had to make a value decision on the investment required to 
get these older platforms with less capable combat systems forward 
versus the investments we need to make to deliver a more capable, more 
lethal Navy in the future. These decisions were made within the context 
that the Navy fights from the seabed to space, our submarines, our 
surface ships and aviation assets all contribute to the fight in 
addition to those platforms hosting VLS cells.
    The new era of strategic competition requires a more capable, 
global, forward, and multi-domain Navy. The National Defense Strategy 
(NDS) underscores the need for DOD to move away from systems that 
provide less capability and do not significantly support our strategy 
and ability to win in a future fight.
    In the fiscal year 2023 budget, Navy prioritized technologies, 
systems and platforms that need to be fielded quickly and at scale to 
be operationally relevant in the coming years to ensure that Navy meets 
Joint Force operational requirements, and made difficult choices to 
divest of older and less capable ships in order to make investments 
that better support warfighting requirements.

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