[Senate Hearing 119-75, Part 3]
[From the U.S. Government Publishing Office]






                                                  S. Hrg. 119-75, Pt. 3

                  DEPARTMENT OF DEFENSE AUTHORIZATION 
            REQUEST FOR APPROPRIATIONS FOR FISCAL YEAR 2026
                 AND THE FUTURE YEARS DEFENSE PROGRAM

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

                                HEARING

                               before the

                      COMMITTEE ON ARMED SERVICES
                          UNITED STATES SENATE

                    ONE HUNDRED NINETEENTH CONGRESS

                             FIRST SESSION

                                   ON

                                S. 2296

TO AUTHORIZE APPROPRIATIONS FOR FISCAL YEAR 2026 FOR MILITARY 
ACTIVITIES OF THE DEPARTMENT OF DEFENSE, FOR MILITARY CONSTRUCTION,
AND FOR DEFENSE ACTIVITIES OF THE DEPARTMENT OF ENERGY, TO PRESCRIBE 
MILITARY PERSONNEL STRENGTHS FOR SUCH FISCAL YEAR, AND FOR
OTHER PURPOSES

                               __________


                                 PART 3

                    READINESS AND MANAGEMENT SUPPORT

                               __________


                             MARCH 5, 2025

                               __________


         Printed for the use of the Committee on Armed Services





                 [GRAPHIC NOT AVAILABLE IN TIFF FORMAT]





                 Available via: http://www.govinfo.gov

                               ______
                                 

                 U.S. GOVERNMENT PUBLISHING OFFICE

60-343 PDF                WASHINGTON : 2025












                      COMMITTEE ON ARMED SERVICES

                ROGER F. WICKER, Mississippi, Chairman

DEB FISCHER, Nebraska		     JACK REED, Rhode Island
TOM COTTON, Arkansas		     JEANNE SHAHEEN, New Hampshire
MIKE ROUNDS, South Dakota	     KIRSTEN E. GILLIBRAND, New York
JONI K. ERNST, Iowa		     RICHARD BLUMENTHAL, Connecticut
DAN SULLIVAN, Alaska		     MAZIE K. HIRONO, Hawaii
KEVIN CRAMER, North Dakota	     TIM KAINE, Virginia
RICK SCOTT, Florida		     ANGUS S. KING, Jr., Maine
TOMMY TUBERVILLE, Alabama	     ELIZABETH WARREN, Massachusetts
MARKWAYNE MULLIN, Oklahoma	     GARY C. PETERS, Michigan
TED BUDD, North Carolina	     TAMMY DUCKWORTH, Illinois
ERIC SCHMITT, Missouri		     JACKY ROSEN, Nevada
JIM BANKS, Indiana		     MARK KELLY, Arizona
TIM SHEEHY, Montana                  ELISSA SLOTKIN, Michigan
                                     
                                     
                John P. Keast, Staff Director
       Elizabeth L. King, Minority Staff Director

                               ______


            Subcommittee on Readiness and Management Support

                 DAN SULLIVAN, Alaska, Chairman

DEB FISCHER, Nebraska		     MAZIE K. HIRONO, Hawaii
KEVIN CRAMER, North Dakota	     JEANNE SHAHEEN, New Hampshire
RICK SCOTT, Florida		     TIM KAINE, Virginia
ERIC SCHMITT, Missouri		     ELIZABETH WARREN, Massachusetts
TIM SHEEHY, Montana                  TAMMY DUCKWORTH, Illinois
                                     
                                     
                                    

                                  (ii)








                             C O N T E N T S

                               ----------                              

                             march 5, 2025

                                                                   Page

United States Transportation Command.............................     1

                           Member Statements

Statement of Senator Dan Sullivan................................     1

Statement of Senator Mazie K. Hirono.............................     3

                           Witness Statements

Reed, General Randall, USAF, Commander, United States                 4
  Transportation Command.

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

                                 (iii)

  







 
                  DEPARTMENT OF DEFENSE AUTHORIZATION 
            REQUEST FOR APPROPRIATIONS FOR FISCAL YEAR 2026
                 AND THE FUTURE YEARS DEFENSE PROGRAM

                              ----------                              


                        WEDNESDAY, MARCH 5, 2025

                          United States Senate,    
                  Subcommittee on Readiness
                            and Management Support,
                               Committee on Armed Services,
                                                    Washington, DC.

                  UNITED STATES TRANSPORTATION COMMAND

    The Committee met, pursuant to notice, at 2:31 p.m. in room 
SD-106, Dirksen Senate Office Building, Senator Roger Wicker 
(Chairman of the Committee) presiding.
    Committee Members present: Senators Sullivan, Wicker, 
Fischer, Scott, Hirono, Reed, Shaheen, Kaine, and Warren.

           OPENING STATEMENT OF SENATOR DAN SULLIVAN

    Senator Sullivan. This hearing will come to order. The 
Readiness Subcommittee today meets to receive testimony on the 
posture of the United States Transportation Command 
(USTRANSCOM). I want to thank our witness this afternoon, 
General Reed, for being here today. Sir, it was good meeting 
with you earlier in the week.
    I want to say upfront, TRANSCOM is a very, very important 
combatant command. It's not the one that you always hear about, 
but it's really critical to our military, our readiness, and 
our ability to win wars, and our ability to project power, and 
sustain our forces.
    As a Senator from Alaska, I'm keenly aware of the unique 
challenges and strategic opportunities our State presents in 
the broader national security landscape, but we are also 
operating in an area where logistics and sustainment are no 
longer a given in any potential conflict.
    What used to be an asterisk, or an incorrect assumption, or 
what they call in the military ``fairy dusting'' away a 
problem, on the Department of Defenses (DODs) part with regard 
to sustained and contested logistics, has allowed our 
adversaries, such as China and Russia, to actively develop 
capabilities aimed at disrupting our mobility and sustainment 
operations across multiple domains.
    Currently, the theaters from the Indo-Pacific region, to 
the Arctic, to the European Theater, and in the Middle East, 
all present significant, unique challenges in military 
contested logistics. Our military must ensure that pre-position 
stockpiles, robust transportation networks, and harden 
infrastructure are available to sustain forces in high-end 
conflicts.
    I'm particularly interested in how TRANSCOM is addressing 
contested logistics through enhanced resiliency in sealift, 
airlift, and overland transportation. I would also like to hear 
your thoughts, General, on how we can better leverage 
infrastructure, our ports, and airfields to strengthen our 
power projection capabilities in both the Arctic and the Indo-
Pacific regions.
    As the Air Force looks to the KC-46 and other next-
generation programs for its air refueling needs, we cannot 
forget about the programs that are actually doing today's 
missions. The KC-135 has been a cornerstone of the U.S. Air 
Force's air mobility in refueling capabilities since the 1950s. 
That's not an incorrect statement; since the 1950s. But it 
needs advances in technology to evolve with military needs.
    While this is not a budget hearing today, I hope, General 
Reed, to hear about how TRANSCOM has informed the Air Force's 
tanker strategy moving forward, especially in light of the long 
delays in KC-46 deliveries, and recent reports about cracks in 
certain components of the aircraft.
    Air refueling tankers play a vital role in extending the 
range and endurance of fighter aircraft bombers, surveillance 
planes, enabling them to perform long-range missions without 
relying on forward operating basis. They're crucial to 
America's Fight Tonight mandate, and as we talked about 
earlier, General, this morning, they're actually very crucial 
in my home State of Alaska where Russian and Chinese incursions 
over the last year have spiked.
    The men and women who fly these intercept missions from 
Alaska do nearly 2,000-mile round trips to intercept Russian 
and Chinese strategic bombers, and they, of course, rely 
heavily on TRANSCOM tankers to get them to the intercept and to 
get them home safely.
    We also want to hear about the challenges with regard to 
shipbuilding and military sealift command, which is another 
element of what TRANSCOM does and does so well. Modernization 
of our sealift capacity must be a top priority if we are to 
maintain our ability to surge forces anywhere in the world in a 
crisis.
    The recently initiated tanker security program is a natural 
progression, but broader efforts are needed to ensure that we 
do not face a mobility crisis in the coming decade. I'm 
particularly interested in hearing about the status of sealift 
recapitalization efforts, including any challenges TRANSCOM is 
encountering so that when the fiscal year 2026 budget is 
released, we can followup to see if funding support is needed 
to accelerate modernization efforts.
    The well-being of our troops and their families is, 
obviously, a top priority of this Committee. We must ensure 
that the different changes that we've seen in the Global 
Household Goods Contract (GHC) challenges are made in a way 
that provides seamless transitions during Permanent Change of 
Station moves. General Reed, I look forward to getting an 
update on this program in light of the challenges.
    Finally, I want to thank the men and women of USTRANSCOM 
for the critical work they do every day to sustain our military 
forces and project power globally. Again, this is an incredible 
combatant command that not enough Americans know about, 
understand, and appreciate, and this hearing is, in part, to 
help change that.
    With that, I want to recognize Ranking Member, Senator 
Hirono for her opening remarks.

              STATEMENT OF SENATOR MAZIE K. HIRONO

    Senator Hirono. Thank you very much, Mr. Chairman. General 
Reed, it's good to see you. Thank you very much for your 
service.
    Senator Sullivan, it's good to continue our work on this 
Subcommittee, this time, you as chair and me as ranking. So, we 
will continue our efforts together.
    General Reed, thank you for your service to our Nation, and 
I thank the servicemembers under your command around the globe 
conducting missions even as we speak. TRANSCOM plays a critical 
role in the movement of people, supplies, and equipment 
anywhere in the world. Your command remains the backbone of our 
military to ensure the joint force remains agile and 
responsive.
    However, as the landscape for logistics continues to 
evolve, we must adapt to the new reality and full spectrum of 
emerging threats ranging from cyberattacks to kinetic strikes 
on ports and airfields. We need to recognize that contested 
logistics will be a battlefield in itself.
    Fortunately, the Air Force is currently taking steps to 
modernize its aerial refueling fleet, shifting toward a new 
tanker design that can operate in contested environments. The 
Blended Wing Body (BWB), aircraft is a promising solution 
offering 90 percent more range, upwards of 50 percent more fuel 
efficiency, 80 percent more fuel offboard capability for sortie 
generations, takes up to 40 percent less space on airfields, 
flies 2,000 feet higher, and requires less landing and a 
takeoff distance. All I can say is, wow, and very impressive. 
We have to make it happen.
    Beyond these critical benefits, the blended wing body 
design would save at least $900 million per year on fuel. $900 
million. In the short-term, 3D-printed microveins on transport 
aircraft reduced drag, pay for itself in just 7 months, and 
yield a few percentages on fuel as well.
    While that may not sound like much at first glance, the DOD 
spends over $10 billion each year on operational energy costs. 
To be clear, investing in operational energy programs is not 
just about cost savings. It directly enhances our lethality, 
readiness, and ability to sustain operations in the Indo-
Pacific and beyond.
    Unfortunately, the TRANSCOM assets have been recently used 
in a very inefficient manner and at great cost to the 
Department of Defense, all for, in my view, political show. The 
use of C-17s and C-130's to transport some 5,000 migrants at 
three times the cost of Department of Homeland Security (DHS)-
chartered flights, and the DOD electing to do so on a non-
reimbursable basis is not only inefficient, but also detracts 
from our core military mission.
    Just last year, the Department of Homeland Security removed 
over 685,000 individuals without DOD assistance. The largest 
amount of people since 2011, obviously, during the Biden years 
that the DHS managed to do this. Yet, the DOD has opted to fly 
at least three times through India, each trip costing taxpayers 
over $2.5 million, and at least one of which tasked a refueling 
tanker to fly from New Jersey to Honolulu only to return the 
next day.
    Beyond the questionable legal basis under which this is 
occurring, I want to know who is making the decision to fly in 
such an inefficient and costly manner. There was a time when my 
Republican counterparts would object to DOD writing a blank 
check to do the job of another government agency. TRANSCOM must 
remain focused on strategic mobility and not burdened with 
missions that are outside its intended purpose.
    TRANSCOM would be far better off returning to its rightful 
focus on contested logistics because energy security remains a 
critical challenge. Our forces in the Indo-Pacific rely on 
vulnerable fuel shipments. In the event of conflict, these fuel 
supply lines would be prime targets for our adversaries. A more 
resilient energy strategy. incorporating distributed energy 
assets and more efficient technologies is essential for 
maintaining operational effectiveness.
    TRANSCOM is a key pillar of our national security, but we 
must ensure that it remains focused on its core mission, 
whether by modernizing our tanker fleet or strengthening 
contested logistic capabilities. We must make the right 
investments and policy decisions. So, General Reed, again, I 
thank you for your leadership. I look forward to your testimony
    Senator Sullivan. Thank you, Senator Hirono. I see that we 
have the Ranking Member of the entire Committee, the former 
Chairman of the Armed Services Committee here with us, my good 
friend, Senator Jack Reed. Senator Reed, would you wish to say 
a few opening comments?
    Senator Reed. Mr. Chairman, thank you for your hospitality, 
but I would just wait for my questions.
    Senator Sullivan. Great.
    Senator Reed. Thank you very much.
    Senator Sullivan. Okay. Thank you. General Reed, the floor 
is yours, and a longer written statement we can make sure it 
gets submitted for the record.

  STATEMENT OF GENERAL RANDALL REED, USAF, COMMANDER, UNITED 
                 STATES TRANSPORTATION COMMAND

    General Reed. Chairman Sullivan, Ranking Member Hirono, 
distinguished members of the subcommittee, good afternoon. I am 
honored to join you today with my lovely bride, Len, and Senior 
Enlisted Leader, Chief Master Sergeant Brian Kruzelnick, to 
represent the men and women of the United States Transportation 
Command.
    A warfighting command, we project, maneuver, and sustain 
the joint force anytime, anywhere in support of our national 
objectives. Our warfighting elements consist of three service 
component commands, military surface deployment, and 
distribution command, military sealift command, air mobility 
command, and our direct subordinate, the joint enabling 
capabilities command. Beyond our core military units, 
USTRANSCOM maintain strong partnerships with the commercial 
transportation industry, our fourth component, to fully execute 
our unified command plan tasks.
    Today's security environment presents numerous complex 
challenges to force projection and logistics as adversaries 
actively seek to disrupt, degrade, and deny our transportation 
networks, especially within the homeland. With 85 percent of 
U.S. combat power residing within the continental United 
States, resilient transportation networks fortified against 
malicious cyberattacks, now prioritize the crucial fort-to-port 
transportation segment.
    Even after overcoming initial deployment disruptions, we 
must continuously enhance our materiel capabilities to maintain 
a decisive advantage. Decisive advantage demands a modernized 
and connected sealift, airlift and air refueling fleet. By 
2032, 54 percent of our government-owned sealift ships will 
reach the end of their service life. To support our maritime 
industrial base and protect a healthy pool of qualified crews 
to crew the vessels, we need fully-funded maritime security 
program, tanker security program, the Jones Act, and adherence 
to cargo preference laws.
    The start of a recapitalization plan is due for our airlift 
fleet. Because of the long lead time for platform development, 
we welcome the service-led recapitalization plans of the air 
refueling fleet, which must continue uninterrupted into the 
future. Even after the Air Force accepts the final contracted 
KC-46, the average age of the remaining KC-135 fleet will be 67 
years old.
    Finally, we remain committed to the ongoing transformation 
of the Global Household goods program. Moving is an integral 
part of our life, and while most of us relocate every two to 3 
years, and learn better ways of doing it every time we move, it 
is always challenging. The department began transitioning to 
the Global Household Goods Contract (GHC), in April 2024, with 
the goal of providing an improved moving experience for 
servicemembers and their families. This transformation is a 
monumental task and reaches into every aspect of a 
servicemember's relocation.
    Because GHC is reshaping how we move servicemembers, their 
families, and their memories, we remain in close collaboration 
with the services to identify and then take action to resolve 
issues. Because we are centered on servicemembers and families, 
just this past week, we made an adjustment to the transfer rate 
to the prime contractor, and while it has not been an easy 
path, there have been issues. There should be no doubt we will 
see this through.
    These challenges may sound daunting, however, USTRANSCOM 
has the global transportation awareness and authorities to 
address them, and I will be clear, that I have no doubt that 
our professionals will overcome any disruption. We are 
emboldened by our guiding principles to be ready, united, and 
decisive.
    USTRANSCOM was created as a purpose-built force to provide 
the essential surface, ocean, and airlift capacity to project 
and sustain American military power anywhere in the world at 
any time. Thank you for your continued and unwavering support 
for our mission and our people.
    I welcome your questions, and together, we deliver.
    [The prepared statement of General Randall Reed follows:]


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    Senator Sullivan. Thank you, General, and thank you, again, 
to you, and the men and women at USTRANSCOM for the exceptional 
work that they do. I'm going to yield my first round of 
questioning to my colleague, Senator Fischer, and then we'll go 
in the regular order here. Senator Hirono will be next.
    Senator Fischer. Thank you, Senator Sullivan, and thank you 
for your courtesy in letting me go ahead. Welcome, General 
Reed.
    During your confirmation hearing, you described how you 
intended to sharpen TRANSCOM's contribution to the lethal joint 
force. This includes a ready tanker fleet that is able to 
support both contingencies around the world, and U.S. Strategic 
Command (STRATCOM), and also U.S. Northern Command (NORTHCOM) 
missions that we have here in the Homeland.
    As the B-21 bomber enter service, which will modernize 
increase and increase our bomber fleet, we must also ensure 
that we have an adequate tanker fleet to support this platform 
and the important missions it will perform. I understand that 
the Air Force will make the ultimate decision on its tanker 
acquisition strategy, but I'd like to better understand how 
TRANSCOM is working with the Air Force to communicate its 
requirements.
    Are you expressing your needs to the Air Force on what you 
need to support a nuclear bomber force so that it remains 
effective and a credible deterrent globally?
    General Reed. Yes, Senator. Just within the last month, my 
staff and I took a trip to USTRANSCOM, and we sat down with the 
commander there and his staff to hold warfighter talks.
    During that time, we described what it is that he's called 
to do so that we can more efficiently and effectively 
understand how we need to be there with him. During that same 
time, we got a really deep understanding in terms of how they 
plan to employ their new aircraft, and that will drive a 
slightly different way in which we are to support them, which 
actually means that it's going to be a little bit higher 
requirement specifically in the field transfer.
    As a result, he and I are both working together to go to 
the service to explain to them what's required and what's 
expected in order for us to work together to get that done.
    Senator Fischer. If there's anything we can do on this 
committee to help you with that endeavor, please let me know.
    General Reed. Yes, Senator. Thank you.
    Senator Fischer. Thank you. General Reed, it is clear that 
in a great power conflict, the U.S. would be unlikely to 
achieve the level of air or sea superiority that it achieved in 
recent wars. This means that ships and aircraft that will be 
part of any sealift or airlift effort must be prepared to 
operate in a contested environment with the assumption that 
they will be targeted in various ways to prevent material from 
reaching its destination.
    I appreciated our discussion on this topic during your 
confirmation hearing, and in our meeting we had in the 
Sensitive Compartmented Information Facility (SCIF) last week. 
Since you've taken command, what steps have you taken to better 
prepare TRANSCOM to perform strategic lift in a contested 
environment?
    General Reed. Senator, one of the things that I've done is 
I've made travels around the world to talk to my peers. I've 
looked at the world as they see it. I've looked at the threats 
as they see it. I've also made sure that our staffs are working 
closer together in the planning aspect, which is actually 
carrying over into how we exercise together.
    So, with that being said, we have a much better 
understanding of what the adversaries are likely to do, how 
they would fight, what they're most likely to do. With that 
being said, we adapt that to the plans, evaluate how that would 
change the force, look to see what kind of options we have 
left, and then what we can decide to do from that point on. So, 
it's a very robust way ahead, ma'am.
    Senator Fischer. As you know, our sealift assets are 
important to ensuring that our forces and material arrive on 
time, in enough time to rapidly execute their mission. 
Unfortunately, over the years, an integral part of our sealift 
fleet, the Ready Reserve Force has suffered from a reduction in 
capacity and readiness as a result of the aging vessels and the 
underinvestment.
    Given this situation, can you provide an update on the 
recapitalization of the Ready Reserve fleet, and how you are 
working with The Maritime Administration (MARAD) to increase 
capability and capacity in that regard?
    General Reed. Together, we're working to get ships in any 
way that we absolutely can. The address last night by the 
Commander in Chief, stated that sealift is absolutely something 
that we need to do. He intends to make sure that we can return 
to the seas, so we need to both build here and we actually need 
to buy used.
    Senator Fischer. Could you repeat your last sentence, 
please?
    General Reed. Yes, ma'am. We need to build new and we need 
to buy used.
    Senator Fischer. Thank you, sir.
    Senator Sullivan. Thank you, Senator Fischer. Senator 
Hirono.
    Senator Hirono. Thank you, Mr. Chairman.
    General Reed, a next-generation tanker, and I mentioned 
this in my opening statement, in the form of a Blended Wing 
Body aircraft would save between 30 to 50 percent in fuel, 
which would be invaluable to operations in the Indo-Pacific in 
terms of extended range sortie generation and reducing 
contested logistics vulnerabilities.
    As a pilot who has flow of more than 3,500 hours in various 
types of transport aircraft, how important is it for the Air 
Force to continue investing in the Blended Wing Body and other 
operational energy programs, and do you think they have 
benefits that increase lethality and readiness?
    General Reed. Senator, we are actively advocating for any 
and all technology that can make sure that we can use the least 
amount of fuel possible, that our aircraft can go as long as 
possible and they can stay aloft as long as they as they can.
    As we have been looking at what's possible in order to 
operate, some of the criteria that we also look at, as you 
mentioned in your statement, is how long or how short of a 
runway can we operate on and balance that with how much fuel we 
can carry. Then how far we can go. When it comes to force 
projection and sustainment of the force, the more fuel 
efficient an aircraft is, then the more effective we'll be and 
also the more options we will have.
    Senator Hirono. So, all of you are open to other 
developments that would save you fuel, et cetera, but would the 
Blended Wing Body development be one of those important 
modernizations that you would you hope will come about?
    General Reed. Ma'am, it's a very promising technology, and 
if it's something we can get and something we can use. I will 
absolutely take it. The other thing that we consider is that at 
some point, the commercial world will most likely catch up with 
this. When they're able to produce it, we will already have 
done the work to make sure that we can use it as well.
    Senator Hirono. I mentioned in my opening that just the 
consternation with the use of your assets to transport, 
frankly, just the very few migrants at a cost in the instance 
that I mentioned of $2.5 million to move only about 100 
migrants to India. Contrast with the prior administration, it 
was 685,000 people were removed through Homeland Security's own 
programs.
    So, I wanted to know, because this is very out of 
proportion in my view, to what should be undertaking by 
TRANSCOM. So, who makes the decision to fly in this inefficient 
manner using your assets?
    General Reed. The Department of Homeland Security is the 
lead agency for this in that the Department of Defense is 
supporting them. The lead combatant command within our 
department is NORTHCOM, and we work with them to receive the 
task to actually fly sorties.
    Senator Hirono. So, you are saying that you did not make 
this decision to use your assets to fly 100 people to India?
    General Reed. No, ma'am, I did not.
    Senator Hirono. Are you going to be tasked to do more of 
this kind of transport?
    General Reed. Ma'am, if I get the task, I'll absolutely fly 
it.
    Senator Hirono. But do you have some sort of an 
understanding already of what the expectations are and these 
are all non-reimbursable to you events?
    General Reed. Ma'am, in a few conversations that I've had, 
I am to expect maybe more flights. I will tell you that within 
the last 48 hours, we have not flown any.
    Senator Hirono. I think that it is really important for me, 
at least as the ranking person on this committee, that we 
express our concern to you that this would not be the kind of 
use of your assets that we should contemplate. Since you are 
not the person to make that decision, that there are no 
guarantees that that this use of your assets will not continue.
    So, if you are given this decision to transport more 
people, I would like this committee to be informed of that. As 
of now, that's what you're telling me, you have no idea whether 
you'll be tasked to conduct this kind of mission in a way that 
I think it's not part of your mission. So, will you let this 
committee know if you begin to use your assets for these kinds 
of transport?
    General Reed. Yes, I will.
    Senator Hirono. Thank you. So, you did mention that you 
have an aging fleet and there is the possibility of you 
purchasing used ships from other countries, and I think we put 
a limit on what you can do there. For the long-term, obviously, 
I think we need to create a capability for shipbuilding because 
you have an aging fleet. But for the short-term, what would be 
helpful to you?
    General Reed. In the short-term, we would need maximum 
flexibility to buy used foreign ships on the commercial market, 
obtain those ships, refurb them here in the States, and then 
put those ships to sea.
    Senator Hirono. Well, Mr. Chairman, if you don't mind, we 
put a limit on the number of these kinds of ships. So, I'm 
asking whether in the short-term, how many more ships would you 
like to be authorized to buy from foreign sources?
    General Reed. Yes, I would--I am asking for the limit to be 
raised beyond 10 to allow us to actually shop the market. 
Currently, there are 10 ships available for us to pursue.
    Senator Hirono. Are you asking for authorization to buy 10 
more?
    General Reed. I'm asking authorization to buy 10 more.
    Senator Hirono. Well, good luck with that. No, that was--
forget I said that. I mean, we want you to be able to do your 
job. Just one more thing. You mentioned the Jones Act. Are 
people who, sometimes, do not understand the importance of the 
Jones Act. Can you very briefly tell us why the Jones Act is 
important to TRANSCOM and to national security?
    General Reed. The Jones Act allows us to actually have 
shipping resources here and a fleet, and so, because of that 
Act, we actually have a way to make sure that we can build 
ships here in the United States, that we can sail those ships 
to maintain commerce, that we can actually produce the crews 
that actually sail those ships so that we have a core of folks 
that can actually operate. At the same time, if the Nation 
needs folks to go to sea, we can call on that force to actually 
sail, and there are citizens, and then we will be more secure 
in that way.
    Senator Hirono. Yes. One aspect of the Jones Act that's 
very important is that you can work with the commercial 
shippers, private sector ships. Isn't that correct?
    General Reed. That that's correct, ma'am.
    Senator Hirono. Thank you. Thank you, Mr. Chairman for your 
indulgence.
    Senator Sullivan. Thank you, Senator Hirono.
    General, I'm going to ask my round of questions now. Let me 
just followup on a couple of questions. Senator Hirono asked. 
For the going above the 10-ship cap. Does that require--is 
there a waiver authority that we can grant, that can be granted 
by someone in DOD, or does that require a change in 
legislation?
    General Reed. Chairman, that's a change in the National 
Defense Authorization Act (NDAA), and so, if we can get that 
changed, ideally what we would need to recap the fleet are four 
ships a year. If they're available on the market, we would 
pursue that. At a minimum, we would need two a year.
    Senator Sullivan. Let me ask, 2 years ago, your predecessor 
told us that by 2023, 37 of the 50 Government-owned surge 
sealift ships will approach the end of their service life. 
Military Sealift Command (MSC) and the Navy announced in 
November that it would sideline 17 ships from the MSC to ease 
the stress of civilian mariners. These ships, obviously, play a 
very important role like oilers, hospital ships, cable layers.
    Can you walk us through the current TRANSCOM plan, General, 
for increasing and manning maintenance programs for the MSC 
vessels so they are not left sidelined in the long term?
    General Reed. Chairman, on the Navy side, the MSC commander 
with his Navy hat made that decision mainly for the welfare of 
the crews, and so, the problem is that
    Senator Sullivan. He knows there are civilian mariner 
crews?
    General Reed. That's correct, and so, the challenge there 
is that with the number of ships and the shortfall of the 
crews, it was very hard to manage the crews in a way that was 
sustainable. So, he did that separate from that for under the 
Department of Transportation and the Maritime Administration.
    What we're seeking to do there is for the civilian crews 
that we have there, these are merchant mariners in the 
commercial fleet that when called, come to sail with us and 
support our needs, what we would like to do for them is to 
build new ships, if we can, and to buy younger used ships so 
that they have much better equipment. In that same way, when 
they have the better equipment, then they're more likely to 
stay with us, and that is our way to make sure that we can 
sustain that force.
    Senator Sullivan. Okay. Thank you. We've recently seen a 
number of incidents in the Taiwan Strait and the Baltic Sea 
whereby undersea cables were damaged or destroyed by ships with 
connections to Russia and China. Can you talk specifically 
about the current condition of our cable layers, and whether or 
not you think we are ready to respond to the types of attacks 
we may see in any kind of conflict? Or heck, the Russians and 
Chinese are doing it in nonconflict situations that relate to 
our undersea cables. By the way, I know you know this, General, 
nearly 95 percent of the world's internet traffic goes through 
these cables.
    General Reed. Chairman, those are specialty ships that we 
have. We don't have very many of them. They are old. The ships 
that crew them those ships are very capable. Those are also 
ships that we actually need to make sure that they're younger, 
that they're faster, and that they're more reliable as well.
    Senator Sullivan. Do we have any ships online that you see 
coming into the fleet that are those kinds of ships you just 
described?
    General Reed. Chairman, I do not.
    Senator Sullivan. Let me ask about another challenge that 
you highlighted, and Senator Fischer already mentioned. Can you 
walk me through the kind of broader readiness concerns that you 
have with the KC-135 and KC-46 tankers? I know this is a top 
priority, so how you integrate them, how you use one set, which 
is, as you mentioned, up to 70 years old, and then the incoming 
one that's been plagued with problems. I think Boeing really 
needs to get its act together on this. What's your sense of how 
we're integrating that in your strategic plan?
    General Reed. Chairman, the KC-135 is a fantastic airplane. 
I was qualified in it once, and it's gotten me around the world 
and back. It needs to consistently be looked at to improve, to 
update. Over the years, we've increased the electronics in it. 
Years back, we improved the propulsion systems. But as we go 
forward, what's the most important for that is that it gets 
connected to the joint force. Connectivity is king for that 
aircraft as it goes forward. If it's not connected, it's not as 
survivable as it should be.
    The KC-46 is a great airplane as well. I've had the fortune 
to fly it. There are some things that the manufacturer needs to 
fix, but when that airplane works, it works in fine fashion. It 
is an airplane that, I think, that they are going to fix. We 
need to stick with it and we need to keep going.
    Senator Sullivan. Thank you, General. Senator Reed.
    Senator Reed. Well, thank you very much, Mr. Chairman, and 
welcome, General Reed. I must say that's quite an impressive 
name you have, but I'm very impressed.
    Senator Sullivan. No relation, I assume?
    Senator Reed. We are related in an emotional way.
    [Laughter.]
    Senator Reed. We're both committed. He's much more 
committed than I.
    General Reed, TRANSCOM relies heavily on commercial 
aircraft in peace time, and also depends on commercial aircraft 
who participate in the Civil Reserve Air Fleet craft for 
wartime needs. Craft participants are always concerned about 
how much cargo capacity TRANSCOM will purchase from them. 
First, are you taking action to rely more heavily on craft 
fleet in peace time?
    General Reed. Senator, we do have access to those aircraft, 
which most important to note is that craft, if we were to 
activate it, would be in case of wartime or a severe crisis. In 
return of those aircraft being in the craft program, we do use 
them and they are able to operate with us.
    But what's most important is, when we have the need for 
something beyond what we have in the gray hole, they make 
themselves available in this way. We can keep them ready and 
trained to operate with us. In this way also, for the organic 
craft that we have, we can use them for higher priority 
sorties.
    Senator Reed. Now, there's been some discussion about the 
transportation of detainees and others. Have you considered 
using craft participants rather than military aircraft to move 
these people?
    General Reed. Senator, right now, we have authorization to 
fly these sorties in support of the Department of Homeland 
Security on a non-reimbursable structure. So, as such, I'm not 
able to use craft.
    Senator Reed. So, DOD is paying for this movement of 
detainees?
    General Reed. That's correct, Senator.
    Senator Reed. As I mentioned in our meeting, I heard that 
the Air Force personnel on these aircraft were not wearing name 
tags or unit symbol. Is that accurate, and what can be done 
about that?
    General Reed. That is accurate, Senator. If you don't mind, 
I'd like to discuss that in a separate session.
    Senator Reed. That's quite all right, sir. I appreciate 
that. Thank you.
    We've talked a lot about contested logistics here. What 
requirements are you trying to levy on the system to get the 
services to pay greater attention on operating the logistics 
system and contested areas, the requirements you're asking for. 
Can you briefly describe those?
    General Reed. One of the clearest ways that we're doing 
that is in our new role for global bulk fuel management and 
delivery. As we do fuel assessments, we are doing fuel 
assessments with our fellow combatant commands. We did an 
initial one with INDOPACOM. We learned some lessons in that 
one. We next took the assessment to U.S. Central Command 
(CENTCOM).
    As part of that, when we look at where the fuel should be, 
how it should be set up, what the infrastructure is, and how to 
meet the needs, we also run a contested logistics scenario on 
it. Then once we do that, that allows us insight into what's 
required from the theater as well.
    Senator Reed. General, we all recognize the importance of 
cyber. In fact, it's more important, it seems, every moment. 
The issue of cyber seems to be particularly challenging when it 
comes to our civilian aircraft, the craft aircraft. Could you 
tell us what you're trying to do to enhance their cybersecurity 
and their ability to communicate with Air Force aircraft?
    General Reed. The cyber domain is very problematic, 
especially for USTRANSCOM. Because as stated before, most of 
our capability actually resides in the commercial realm. So, 
their networks are not within ours and they're not as protected 
as ours. Fortunately, we have a lot of help with law 
enforcement, also cyber command, and also with the U.S. Coast 
Guard, to make sure that we can share information, we can 
collaborate both for aircraft and for sealift.
    Senator Reed. Thank you very much. Thank you, Mr. Chairman.
    Senaror Sullivan: Thank you, Senator Reed. Senator Scott.
    Senator Scott. Thank you. Thank you, Chairman. General 
Reed, thanks for your service. I appreciate the opportunity to 
sit down with you. Thank you for your service, your family's 
service, everything. Everything you do. Go Navy.
    It's my understanding that the Department of Defense is now 
moving servicemembers and their families under new Global 
Household Goods contract. With peak moving season just around 
the corner, can you share some of the feedback you've received 
on implementing the contract? Can you explain the Army's 
decision to pause moves under this program that do not have 
enough lead time?
    General Reed. Senator, first and foremost, the reason for 
the contract is to correct past performance that wasn't as 
strong as it should be to get after years of frustration from 
those of us who move. Also, years of frustration from 
yourselves to help us to try to fix it.
    In this transition, what we are actually doing is we are 
having a transformation within a market that still exists. With 
this transformation, we actually have a structure, both IT and 
with rule structure, that actually allows us to see more what's 
happening in the market, to monitor trends that are positive, 
monitor trends that are not so much so, and actually have the 
tools to actually do something about it.
    We are about 2 years into what is actually a 10-year 
contract, if you will, base contract of 6 years with four 1-
year options. So, we're fairly new at this. There are some 
performance issues. We are able to see those, and we're 
actually able to do something about that.
    With regards to the comment about what the Army has done, 
the Army has not paused their participation in the contract. 
What we're doing instead is we, in conjunction with the 
services, are monitoring the rate of the transfer to the 
contract because this is not about the vendor, it's not about 
the program, it's about those who move. So, as we support those 
who move, we will match them up for success as we help the 
transformation mature.
    Senator Scott. So, you've got enough capacity to do the 
moves? Because I guess the summer's your biggest moves, is that 
right, just based on school years?
    General Reed. Summer is the peak season, and usually during 
that time, both combined Continental United States (CONUS) and 
Outside the Continental United States (OCONUS), it's about 
300,000 moves, although we are not putting OCONUS moves out 
just yet. But with that, we have moves that are still in the 
contract piece and there are still moves that are in the 
current system as well.
    Senator Scott. What's happening with the international 
move. Is that being impacted at all?
    General Reed. Not at all. That's designed to come at a much 
later date once we solve this piece here.
    Senator Scott. Okay. Our Ready Reserve Force program plays 
a critical role in making--you know, our ability to deliver 
equipment and critical supplies. With about 20 of those, we got 
20 of the ships that are over 50 years old. Do you have any 
concerns about the military's ability to keep up?
    General Reed. I do. These ships are really, really old. The 
reliability of them sometimes are in question because of that. 
I take my hat off to the crews that are actually on them to 
keep them warm. But to give an idea of the State of the ships, 
some of these ships are still run by steam. The last time that 
I was on a steam ship, I was a high schooler in Navy Junior 
Reserve Officer Training Corps (ROTC). So, the sailors that we 
actually put on these ships and the crews that we put on these 
ships, they deserve something younger.
    Senator Scott. So, do you think if we had a conflict in the 
Asia Pacific, do you think you could perform?
    General Reed. We could perform. We would have some 
challenges with that. We would struggle, but we would not 
perform to the level that I would like to.
    Senator Scott. Okay. Thank you, General. Thank you, 
Chairman.
    Senator Sullivan. Thank you, Senator Scott. Senator 
Shaheen.
    Senator Shaheen. Well, thank you, Mr. Chairman. I'm happy 
to defer to our chairman of----
    Thank you, General Reed, for being here and for taking time 
to meet with me before this hearing. As we discussed in that 
office meeting, New Hampshire's home to the 157th Air Refueling 
Wing. It's the only KC-46 wing in the country to reach an 
initial operating capacity. Had to get that in.
    But you referenced this in your previous statements that 
TRANSCOM has assessed that the aerial refueling fleet of KC-
135s and KC-46s would be subject to considerable stress during 
wartime. As you're looking at what this new Administration is 
talking about with respect to funding cuts in the defense 
budget, is the KC-46 program exempt from those funding cuts?
    General Reed. Senator, in this case, I would have to defer 
to the Air Force for that. But I have spoken to the service, 
and I've let them know that I am concerned in terms of the 
choices that they have to make. We absolutely have to have 
those aircraft fully supported and funded. Whatever I can do to 
help the service, I'll certainly do that.
    Senator Shaheen. Well, thank you. I agree with that. As we 
discussed, again, in that meeting, the ongoing logistic 
composite model, which I know the chairman of the subcommittee 
understands well because it's been an issue in Alaska. But 
they're doing the study right now, Pease is, and it's the 
result of the Air National Guard's Releveling initiative, which 
under the current projections, would reduce the 157th's ability 
to support TRANSCOM by 22 percent. Would that have an impact on 
your needs should you need to use that 157th for a refueling 
mission?
    General Reed. Senator, in this case, I'd have to defer to 
the service in terms of what they see as the outcomes for that. 
However, that being said, being familiar with that model, I 
know that they're going to take a very good look at not only 
the aircraft itself which will change how folks work on it, but 
they'll also look at how we use that aircraft in the unit that 
it's associated with.
    So, the fact that it's in a Reserve component is another 
aspect of actually looking at how folks will work the tasks. 
That should get looked at when they worked that study, and I'll 
wait to see how that study concludes.
    Senator Shaheen. Well, thank you. I appreciate that, and I 
know that you're looking for opportunities to come up to Pease 
to see firsthand how the 157th is operating and how they're 
working with the KC-46. So, I look forward to welcoming you 
there sometime in the near future.
    General Reed. If I may add. Yes, your unit was the first 
one, KC-46 that we employed. They went to CENTCOM, and they did 
a fantastic job. So, thank you so much for that.
    Senator Shaheen. Thank you. We will definitely make sure 
that the 157th knows that you said that. I appreciate that. We 
also discussed your desire to increase TRANSCOM's sealift 
capacity. It's something that you've already referenced here, 
and to increase the 10-ship limit on the buy used.
    Again, I know that you are not the person who's going to 
decide about the 8 percent cuts that are being projected at the 
Department of Defense, but if you had to cut 8 percent out of 
your sealift capacity, what would that mean for your ability to 
address the mission that you're charged with
    General Reed. In our pursuit to buy used on the market, 
that would limit the flexibility that we would have to actually 
shop the market and find the ships that we need and get them at 
a suitable price.
    Senator Shaheen. So, as you're thinking about--you have the 
capacity to do 10 ships this year, is that correct, under the 
NDAA and hopefully we can get another 10 ships. So, what are 
you hoping to get within the next--this year in terms of that 
additional sealift capacity
    General Reed. This year, the most immediate need would be 
to make sure that we can have on the order of about $210 
million. That would allow us to secure two ships on the market, 
make sure that we could get them into a shipyard, and then 
reflag them within about 9 to 14 months.
    Senator Shaheen. How concerned are you about having the 
civilian workforce that it's going to operate those ships?
    General Reed. Right now, we have the workforce. My main 
concern is making sure that I have a young, reliable ship to 
keep the workforce.
    Senator Shaheen. Thank you. Thank you, Mr. Chairman.
    Senator Sullivan. Thank you, Senator Shaheen. It's good to 
know the 157th is up and running with the--I didn't know the 
KC-46 had a full squadron. So, that's great.
    Senator Shaheen. Oh, we'd love to have you come and visit.
    Senator Sullivan. I would love to see it. That's great 
news. We want them all over the country. We are honored to have 
our Chairman of the full Committee, Senator Wicker. Mr. 
Chairman, the floor is yours.
    Chairman Wicker. Yes. We don't need to be cutting the KC-46 
program. Now, let's see. I don't know if contested logistics 
has been asked in this regard, but there's been conversation 
about coalescing around a single manager for contested 
logistics.
    So, let's talk about that. Is it time to look for a single 
manager for contested logistics, and might TRANSCOM be where 
that role might be assigned. If the balloon goes up? Do you 
think the department currently has a joint contested logistics 
strategy in place that would be successful?
    General Reed. When faced with a conflict, we figure it out, 
Senator. So, whether or not we could get the job done or not, 
we'll get the job done. But to your question, in terms of 
having a structure and someone who can lead that way prior to a 
conflict, I am aware of the deep discussions. We've had some of 
those, and it is time to look at some aspect of that.
    Chairman Wicker. Can you give us your best advice here?
    General Reed. Senator, my best advice is to allow me to 
look at that, and structure that, figure out how best TRANSCOM 
can contribute to that with the current authorities that we 
already have. It's aligned in a good way, and I think there's a 
way forward.
    Chairman Wicker. Okay. More later on that. The Red Hill 
facility has been closed. It amplifies the logistical 
challenges in the Indo-Pacific. I think you'll agree. What 
about levering existing U.S.-flagged platform supply vessels to 
enhance military sustainment capabilities in the region?
    My understanding is that there are at least 13 at sea 
resupply ships afloat and ashore near this environment. What do 
you think about that?
    General Reed. If I understand your question, you're asking 
how do we work fuel in the theater, whether it's ashore or 
afloat. That is one of the things that we look at in TRANSCOM.
    When it comes to the ships to actually do that, we are 
looking to the employment strategy of the theater commander in 
terms of how he would want to move the fuel around, to look at 
where that fuel needs to be. When it comes to some of the 
vessels that we would use for that, I understand that that 
there is a class of ship that has been mentioned to me that's 
built here in the states. That shallow draft vessel has some 
potential, perhaps, in the dry cargo arena, but not necessarily 
for fuels because the tanks that it has is only a single layer.
    Chairman Wicker. Okay. So, right now, where would you say 
the plans are? Is it just some--I think you said you're looking 
at it. You don't specifically have plans yet to leverage those 
platforms?
    General Reed. We do not, Chairman, have plans to leverage 
those particular ships.
    Chairman Wicker. Okay, and then, one other thing; on 
unfunded requirements. You said during your confirmation you'd 
be a fierce advocate to get all the equipment that our folks 
needed. Do we still have your commitment that you are going to 
give us a complete list of what you need in terms of these 
unfunded requirements?
    General Reed. Chairman, I am a fierce advocate to give the 
force whatever they need using any lever that I have right now 
for an unfunded requirement. Since I have not seen the budget 
I'm not there yet.
    Chairman Wicker. Oh, okay. Yes. But my exhortation to you 
is that you not hold back on what you need. Tell us. I mean, 
you're new, and you haven't had a chance to assess all this. 
But do I have your commitment that you will give us as complete 
a list as possible of those requirements?
    General Reed. Absolutely, Chairman.
    Chairman Wicker. All right. Thank you, and thank you, Mr. 
Chairman.
    Senator Sullivan. Thank you, Mr. Chairman. Senator Warren.
    Senator Warren. Thank you, Mr. Chairman, and thank you for 
holding this hearing.
    So, TRANSCOM is responsible for making sure that our 
military and our allies get everything they need to win on the 
battlefield, whether it is a new engine for a fighter jet in 
the Middle East or a missile battery in the Philippines. That 
means that TRANSCOM knows better than anyone why it is a very 
big problem if the military doesn't have the right to repair 
its own equipment.
    General Reed, one of TRANSCOM's major workhorses is the C-
5M Super Galaxy, a strategic transport aircraft that carries 
cargo and DOD personnel all around the world. But in 2022, it 
was able to fly its mission only 52 percent of the time. That 
means that nearly half the times that commanders needed it, it 
wasn't there.
    Congress saw this, said that is not acceptable, and gave 
the Air Force $10 billion to fix that problem. General Reed, 
about how often was the C-5 mission-ready the next year after 
you got the money?
    General Reed. What I can tell you is that in 2023, the 
mission capable rate of the C-5 was about 46 percent.
    Senator Warren. About 46 percent. So, it went from 52 
percent to 46 percent. So, we could reasonably ask what 
happened? Well, the Air Force said the supply chain for 
replacement parts had dried up. When companies can't or won't 
meet DOD's needs, one option is for the military to actually 
make the parts themselves so you can get things up and running. 
It's often cheaper and faster anyway, but you can't do that if 
big defense contractors slip restrictions into their contracts 
that deny the military the technical data that they need to be 
able to make these repairs.
    So General Reed, it's your responsibility to make sure the 
warfighter gets everything that they need. How important is it 
to national security for C-5s to be ready to respond to 
commander's requests to carry cargo and personnel?
    General Reed. The C-5 is a key aircraft for us, and some of 
the things that we may be asked to do in the future, it would 
actually produce about 20 percent of the lift for us, so.
    Senator Warren. So, you need this thing?
    General Reed. Yes, we do.
    Senator Warren. Ready to go. So TRANSCOM's job is getting 
harder here because our enemies are making it more difficult to 
send ships and planes to our troops. As Senator Wicker was 
talking about a minute ago, this is contested logistics.
    TRANSCOM models show that ``The Fight to Get into The 
Fight'' means that getting critical materials to our troops is 
only going to get harder over time. That means the last thing 
our troops should be doing is waiting around for contractors 
who charge more for slower repairs. So, General Reed, do you 
agree that giving the military more flexibility to repair parts 
in the field will increase our military readiness?
    General Reed. I do, Senator.
    Senator Warren. Good. Thank you, General Reed. Senator 
Grassley and I got a provision into last year's NDAA for the 
military to start a pilot program to reverse-engineer parts for 
sole source programs. It's a good start, but it is a backstop 
because reverse engineering can actually take years to get 
done. But if DOD negotiates with contractors for the right to 
repair from the start, that means our men and women in uniform 
get their equipment faster and at a lower cost to the 
taxpayers.
    That is exactly what my Servicemember Right to Repair Act 
does. It has bipartisan support here in the Senate and on the 
committee. What's happening right now is fundamentally wrong, 
and we can put a stop to it. Thank you, Mr. Chairman.
    Senator Sullivan. Thank you, Senator Warren. Senator Kaine.
    Senator Kaine. Thank you, Mr. Chair. General Reed, good to 
see you.
    I want to ask about a couple of topics. My colleagues have 
covered some of the others that I hope to ask about adequately. 
One is about the connection. If we want to have adequate 
sealift for military purposes, the connection between that and 
our food aid programs. So, you know, we're all grappling with 
cuts, pauses. The Supreme Court rendered a ruling today that 
may reopen the door on humanitarian assistance through the 
United States Agency for International Development (USAID).
    Food aid, about 40 percent of our humanitarian aid programs 
are food aid, and it's the delivery of U.S. grown food to other 
nations. Just using Africa, the African continent as an 
example, the U.S. flagships that deliver the aid sort of count 
on that as what they call one leg of a three-legged stool. They 
transfer food aid, they transfer DOD cargo, and they transfer 
Foreign Military Sales (FMS) or other executive agency cargo. 
By transferring all of those and earning revenue for doing it, 
it maintains a business model where they can keep these ships 
available for sealift capacity.
    If food aid were to disappear and one leg of that three-
legged stool were to go away, what would the effect be on the 
availability of U.S.-flagged vessels to be around when we need 
it for sealift chores?
    General Reed. U.S.-flagged vessels with U.S. crews are 
critical. We need to make sure that they can go to sea and stay 
afloat. By us following cargo preference laws, we can actually 
provide the material for them to actually sail. What that does 
is it makes them ready. I need them ready. I need them to have 
a job and know that they have something that they can do, and 
so, when they actually get called to be there for the Nation, 
they're actually there. If for some reason they were not there, 
then we don't have U.S. citizens supporting us at sea.
    Senator Kaine. This is really important. My colleagues did 
a good job of asking, for example, about the need to purchase 
more, you know, high quality used vessels so we'd have more 
sealift capacity, but with the existing capacity we have, if we 
were to fundamentally change the sort of business model that 
keeps those ships ready and on the water by cutting out one 
part of their revenue, that food aid, for example, then we 
would reduce even further the capacity that we need so that it 
might not be available at the time that we need it. Would you 
agree with that?
    General Reed. I agree.
    Senator Kaine. Thank you for that. My colleagues asked some 
questions and you talked in your opening testimony about the 
DOD contract for the Global Housing Goods Contract, 40,000 DOD 
personnel in Virginia--I'm sorry, 120,000 Active Duty in 
Virginia, and assuming you move about every 3 years, that's 
40,000 moves out and 40,000 moves in.
    You talked a little bit about how the transition is going, 
but there was a specific question I wanted to ask. There's 
something called the continuing to use the tender of Service 
legacy program during the ongoing GHC ramp up program. So, the 
kind of the old way of doing it now, the rates associated with 
the legacy program are often 20 to 30 percent higher than those 
outlined in the GHC contract. So understandably, some suppliers 
might be hesitant to transition to the GHC program if they're 
able to secure more favorable rates by remaining under the 
legacy system. So this creates an odd situation where two 
programs are unintentionally positioned against one another, 
and TRANSCOM can incur significantly higher costs under the 
legacy program.
    So how are you managing this legacy to GHC program so that 
there's not this perverse incentive to remain in the legacy 
program because the rates are higher?
    General Reed. So, the rates are set by what we call a 
government-constructed cost, and we are only able to adjust 
those rates once a year, which actually happens in May. So once 
again, we're in a situation where to allow the process to go, 
we have to wait until May when we have the next opportunity to 
adjust the rates, which we will do. Those rates will be more in 
line with the constructed costs. So therefore, it will be a 
less of an incentive to stay outside than to join the GHC.
    Senator Kaine. Great. I'll follow back up after May to see 
how much we've narrowed that gap and whether that's doing what 
it needs to do. I will express my support for a position, I 
think my colleagues have already gotten that, that if you need 
authorization within the NDAA to expand the fleet by purchasing 
more high-quality used vessels, I really would like to make 
sure you have that authority and I'll join with my colleagues 
to see if we can be helpful in that regard. I'll yield back, 
Mr. Chair. Thank you.
    Senator Sullivan. Thank you, Senator Kaine.
    General, we're going to do a quick second round of 
questions, and then, we'll move this to a classified setting 
for a couple additional questions. I want to go over this map 
and handout that you and I discussed in our meeting today.
    [The information referred to follows:]

[GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]
    
      
    You know, there's a lot of discussion on what's happening 
on the southern border, not so much about what's happening on 
the northern border. As you and I talked about, we've had a 
really high level of Russian and Chinese incursions both into 
our Air Defense Identification Zone (ADIZ) and into our 
Exclusive Economic Zone (EEZ) on the water, and very 
disturbingly and unprecedented, a number of these are joint 
Chinese/Russian operations, including strategic ``Bear'' bomber 
and Chinese strategic bomber incursions into our ADIZ this past 
summer with armed MiG fighters.
    As you know, the operations to go intercept these 
incursions take a lot of work. Our young men and women in the 
military do a fantastic job up in Alaska, but they also need a 
lot of tanker support for these kinds of missions. Similarly, 
with they need fuel support for our Navy when we're doing 
operations in the Northern Pacific and the Arctic, which we've 
been doing a lot over the last three summers. Additionally, 
there's a lot of attention paid to the Central and South 
Pacific logistics lanes for any kind of conflict in Taiwan.
    But I think it's important to also look at the Northern 
Pacific logistic lanes as it relates to any kind of conflict 
like that. During World War II, General Simon Bolivar Buckner 
called the Aleutian Island chain, which obviously goes out 
there, ``a spear pointing right at the heart of Imperial 
Japan.'' By that he meant it was a very strategic location, not 
only attacking Japan, but forgetting logistics into the fight 
as our forces throughout the Pacific move closer to Japan.
    Right now, if you look at one of the ports there, the Port 
of Adak, which is on this map, the closest the U.S. Navy base 
that is a gateway to the Arctic, but is also on the flank of 
China. It has three piers, two nearly 8,000-foot runways, and 
one of the largest bulk fuel storage facilities in the world. A 
lot of people don't know that. So the distance, too, in terms 
of where Adak sits, it's about 2,900 nautical miles from 
Okinawa. While our good friends in Hawaii are about 4,000 
nautical miles from Okinawa, making Adak the closest U.S. port 
outside of Guam to Okinawa to Taiwan.
    So, President Trump has talked about ensuring Alaska gets 
more defense investment as we fully rebuild our military, 
especially as Russia and China are making menacing moves in the 
Pacific. Admiral Paparo and General Guillot have testified that 
Adak would provide them with very significant logistical and 
basing needs, and that we should reopen it.
    In terms of logistics, including with the shutting down a 
Red Hill, what's your thought on this base in terms of for 
logistics capability, fighter, and aviation, and navy shipping 
support? There's also was a submarine base there. I'd like your 
view on that, General?
    General Reed. North American Aerospace Defense Command 
(NORAD) and NORTHCOM when it comes to the great State of Alaska 
and the forces that they have there do a fantastic job of 
letting us know when they need our help. So, whenever they ask, 
we're always there. We've never failed them.
    As they continue to look at how far, forward they can go 
for the extension, if they're going to be present, so will we. 
Coming from the other direction, Admiral Paparo, I have given 
him my word that I will always be there with him wherever he 
needs us to be. If there's an opportunity to establish more of 
a footprint in the region, we will be there as well.
    Senator Sullivan. Let me ask just real quickly. You were up 
in Alaska recently. I appreciated the visit in January. Can you 
give me a sense of kind of lessons learned? I know you're at 
the Port of Anchorage, which is a really important DOD 
strategic port, again, relating to these kinds of logistical 
issues. We think it's important to have additional 
infrastructure capability in my State. But any main takeaways 
from the visit you had in January, General, and I really 
appreciate you coming up to our great State.
    General Reed. Chairman, it was a great visit. Went there, 
intentionally, in the winter time. Good to see the conditions 
there. Unfortunately, it was colder in Illinois than it was in 
Alaska, and I got in trouble with----
    Senator Sullivan. Yes, we've had a little bit of a warm 
winter, particularly with the Iditarod last week.
    General Reed. But being in Alaska again and having a really 
good feeling standing there, almost standing on top of the 
world, looking at what's around us and how close it is, it is 
incredibly strategic. The reach that you can have from that 
location is incredible, and it's a big advantage to the United 
States.
    Looking at the Port of Alaska and that port cluster, I was 
very impressed with what I saw there. The port is well situated 
where it is, despite the fact that there was ice on the sea 
they were still able to operate, the ability of the port 
authority to adapt to the conditions. The snow and the ice 
didn't stop them. There was a tremendous amount that we learned 
there in terms of how to just adapt. Period.
    The other thing was I was very impressed with the 
conditions in terms of the tides and the tide swings, which I 
understand can be as high as 12 to 17 feet swing.
    General Reed. But the port authorities there and the folks 
who work the port, they know how to time it and they know how 
to marshal things. They know how to line it up, and when it 
comes time to load and unload, some of the best I've ever seen. 
So, I was incredibly impressed by that.
    With the U.S. forces that are there, they have a very good 
handle on their strategic role not only in terms of what they 
can project, but the forces that they may host to operate there 
or the forces that will actually flow through. So, when we 
combine all of that together I'm really impressed with the 
platform we have in that State.
    Senator Sullivan. Great. Thank you very much. I just 
actually had a meeting with our mayor of Anchorage, and we had 
a lot of discussion on the port, and we'll keep you appraised 
on the, you know refurbishing of that port. It's really 
important for our military. It's also really important for the 
people of Alaska, as that's where the vast majority of our 
supplies, and food, and everything, and fuel come through the 
Port of Anchorage. We want to keep that viable, strong, and 
we're continuing to work on that with you, and NORAD, and 
others. So, thank you very much on that, General. Senator 
Hirono.
    Senator Hirono. This was an interesting conversation 
because the fuel that was sort of Red Hill was massive, mainly 
to be used by the Air Force. I think that there are concerns 
relating to the how fuel ought to be distributed more than 
located in Red Hill.
    I have a question. July 2021, the Government Accountability 
Office (GAO) found that U.S. Immigration and Customs 
Enforcement (ICE) does not know the extent to which its 
officers are taking enforcement actions against individuals who 
could be U.S. citizens. Between fiscal year 2015 to 2020, 674 
U.S. citizens were arrested, 121 were detained, and 70 were 
moved outside the U.S. by mistake.
    The GAO recommended that ICE should systematically collect 
and maintain electronic data on its encounters with individuals 
for whom there is probative evidence of U.S. citizenship, but 
ICE has yet to do so. This lack of accountability is troubling.
    General Reed, ICE gives TRANSCOM a copy of every flight 
manifest prior to transporting migrants. But I understand that 
you take no steps to verify the identity of the people you are 
transporting on your aircraft. Is that so?
    General Reed. We do get a list of everyone that we fly. 
However, ICE maintains control of everyone that's on the 
aircraft. So, from that standpoint, they have the 
responsibility for the verification.
    Senator Hirono. So, since there have been mistakes made by 
ICE in terms of them erroneously transporting people who are 
citizens that shouldn't be transported. So that's an issue. Do 
you know what the legal basis is for transferring non-citizens 
arrested inside the U.S. via military aircraft to a location 
outside the U.S. for deportation for detention?
    General Reed. I do not know that completely.
    Senator Hirono. To date have any U.S. citizens or 
individuals not charged with any crimes been mistakenly flown 
to Guantanamo Bay on TRANSCOM assets?
    General Reed. I'm not aware of any.
    Senator Hirono. What steps have you taken to ensure the 
answer you just gave me is accurate?
    General Reed. For the air crew, we make sure that they 
follow established procedures to get a list of the folks and 
also to make sure that ICE is complying with the things that 
they tell us that they need to do to maintain control.
    Senator Hirono. We know that Guantanamo Bay is subject to 
various weather events. What is the evacuation plan for all of 
the migrants being sent to Guantanamo Bay in the event of a 
hurricane or other disaster in Cuba. This is especially 
important in light of the fact that the President has said he's 
planning to send some 30,000 migrants to Guantanamo Bay. So, do 
you know what kind of evacuation plans?
    General Reed. I would have to defer that one to U.S. 
Southern Command (SOUTHCOM).
    Senator Hirono. Okay. Another concern. Thank you very much, 
Mr. Chairman.
    Senator Sullivan. Well, General, thank you very much for 
your testimony. What we plan on doing, we have a vote around 4. 
We will close the hearing here, and I want to thank you. If 
there's additional question for the record from members, we 
will send those to you in the next couple days, and we ask that 
you try to respond to those within 2 weeks.
    We will reconvene in SVC-217 for a classified scene setter. 
We'll try and do that in the next 10 to 15 minutes. We'll break 
now. I'm going to go vote, and then we will come down and be 
ready to have a classified update as well in the classified 
SCIF in the Senate.
    So, with that, thank you, again, very informative hearing. 
This hearing is now adjourned.
    [Whereupon, at 3:49 p.m., the Subcommittee adjourned.]

    [Questions for the record with answers supplied follow:]

                Questions Submitted by Senator Ted Budd
                    global household goods contract
    1. Senator Budd. General Reed, regarding reported issues with the 
GHC, is it your sense that these issues are simply due to the 
transition from one contract to another or are there systemic 
challenges with household goods shipping that must be addressed?
    General Reed. GHC transformation does not simply shift from one 
contract to another; it transforms individual tender-based contracts 
with over 800 vendors into a single contract with improved 
accountability requirements. This single contract is a network 
integrator who oversees the entire DOD moving enterprise. The tender-
based program lacks accountability and operates in a fractured manner. 
Contractors bid on each of the approximately 300,000 annual moves in 
isolation, replicating the process 300,000 times. This system prevents 
network optimization for servicing moves and makes it nearly impossible 
to identify trends (positive or negative) or proactively mitigate 
issues.
    The GHC contract addresses the systemic issues and incorporates key 
performance metrics and a more rigorous contract performance oversight 
process, adding accountability previously absent from the program.
    The Defense Personal Property Program historically faced capacity 
deficiencies. The GHC allows the prime contractor to build capacity in 
addition to working with the vendors that previously operated under the 
legacy program.
    As this transition continues, providers in the legacy program may 
hold out for higher rates under the legacy Tender of Service program. 
We are implementing strategies to align 2025 Tender of Service rates 
with the market and maximize DOD's buying potential. The GHC prime 
contractor is working to attract the necessary capacity and provide 
vendors with competitive compensation to deliver the standardized, 
quality customer experiences our servicemembers, and their families, 
deserve.

    2. Senator Budd. General Reed, how long do you expect the 
transition to full implementation of the GHC under the HomeSafe 
Alliance will take?
    General Reed. USTRANSCOM uses a conditions-based approach focused 
primarily on the performance of the GHC prime contractor. USTRANSCOM 
and the Military Services will continuously assess the GHC prime 
contractor's performance and make collective decisions to move forward 
at the conclusion of peak season in September 2025.
    USTRANSCOM currently projects completion of the domestic transition 
in Fall 2025 and plans to transition international shipments no earlier 
than September 2025. HomeSafe's performance during the peak summer 
moving season will significantly influence transition timelines. 
Pending demonstrable improvements in contractor performance, DOD site 
readiness, and systems integration, USTRANSCOM will continue shifting 
volume until it completes the GHC transition.

    3. Senator Budd. General Reed, if there are already so many issues 
affecting the moving cycle now, how will TRANSCOM ensure household 
goods moves will be effectively executed during the peak moving season 
in the late spring, early summer?
    General Reed. For the 2025 peak moving season, USTRANSCOM will 
operate both GHC and the legacy Tender of Service program to meet 
Military Service demands. Both programs face capacity constraints and 
exhibit less than satisfactory customer satisfaction scores. However, 
USTRANSCOM now has visibility into the portion transitioned to GHC and 
possesses contractual levers to address performance with the prime 
contractor. While it has not been an easy path and there have been 
issues, there should be no doubt--we will see this through for our 
fellow servicemembers and military families who deserve an improved 
moving experience, and we are going to deliver an improved moving 
experience.
                military port infrastructure challenges
    4. Senator Budd. General Reed, Military Ocean Terminal Sunny Point 
in North Carolina plays a critical role in shipping ammunition to the 
warfighter. I've been concerned about the aging infrastructure on the 
terminal. Can you provide an update on infrastructure challenges there 
and what resources, if any are needed to ensure Sunny Point is able to 
successfully complete its mission for decades to come?
    General Reed. USTRANSCOM agrees on the criticality of Military 
Ocean Terminal Sunny Point (MOTSU), as well as the Department of 
Defense's other ammunition terminal, Military Ocean Terminal Concord 
(MOTCO) in California. We keep a very close eye on the condition of 
infrastructure at these unique seaports. Congress' ongoing interest and 
support, most recently at MOTCO, has been invaluable to preserving the 
ability of these terminals to conduct ammunition resupply operations.
    MOTSU's waterfront infrastructure dates from the 1950s and is 
beyond its original design life. DOD has programmed a project to 
construct a new wharf at MOTSU for fiscal year 2031. I have 
communicated the importance of this project to the Office of the 
Secretary of Defense as well as to the Army, which has MILCON 
responsibilities for these terminals.
    There is ongoing work to improve or replace aging infrastructure at 
MOTSU. My primary concern, however, is not the infrastructure, but 
rather a shortfall in rail operating crews to operate MOTSU's assigned 
locomotives. We are working with the Army to identify and implement a 
solution.

    5. Senator Budd. General Reed, how resilient are our ports of 
embarkation like Sunny Point in the event of conflict and should our 
adversaries decide to conduct cyberattacks or sabotage nearby 
infrastructure?
    General Reed. USTRANSCOM takes all of our ports of embarkation very 
seriously and regularly assesses the ability of our ammunition 
terminals, including MOTSU, to meet ammunition resupply requirements. 
These assessments test the resilience of the ammunition sustainment 
network by simulating various delays and measuring its ability to 
overcome challenges and meet requirements.
    With respect to unit cargo operations, USTRANSCOM periodically 
completes holistic assessments of the Strategic Seaport Program to 
ensure there is enough excess capacity on each coast to mitigate the 
impacts of kinetic or non-kinetic disruptions. We are currently 
confident there is sufficient seaport capacity available to meet unit 
cargo deployment requirements.

    6. Senator Budd. General Reed, how can Congress help improve 
resiliency of these critical nodes?
    General Reed. Congress can help preserve global ammunition delivery 
capabilities by authorizing and appropriating as requested the MILCON 
funding for major infrastructure projects, like the new wharf at MOTSU.
    Both the Military Ocean Terminals and the Strategic Seaports depend 
on a resilient commercial rail network to deliver containerized 
ammunition and heavy DOD equipment. Congress can help by continuing 
funding and support of our partners in the Department of Homeland 
Security's Transportation Security Administration and their work to 
regulate and inspect cybersecurity hygiene for the commercial rail 
carriers serving ports important to us.
                               __________

             Questions Submitted by Senator Mazie K. Hirono
                       southwest border security
    7. Senator Hirono. General Reed, the Trump administration, through 
the Department of Homeland Security (DHA), has directed your C-17s and 
C-130's to conduct deportation flights. Would you agree that providing 
non-reimbursed support to move migrants for DHS at a significant cost 
to the Department of Defense (DOD) is wasteful when Immigration and 
Customs Enforcement (ICE) already has the funding, the charter 
contracts, and the capacity to move more migrants for far less money 
and at no cost to DOD?
    General Reed. At this time, DHS requests only non-reimbursable 
support, which by statute only military airlift can provide. However, 
it is USTRANSCOM's understanding that DHS' intent is to use its own 
contracting office for any commercial airlift requirements. 
Additionally, DOD obtains an operation and training benefit for its 
pilots and support staff flying Mil-Air for this DHS support.

    8. Senator Hirono. General Reed, to what extent, if any, do you 
evaluate cost-effectiveness before allowing ICE to use your aircraft?
    General Reed. We conduct a mission cost estimate so the Command is 
fiscally informed, but perform all missions tasked to us by the SecDef.

    9. Senator Hirono. General Reed, if this non-reimbursable request 
from DHS continues to deport another requested 4,000 migrants, how will 
this impact your core mission this spring when you must also transport 
the surge of force rotations around the globe?
    General Reed. There is no impact to our core mission.
                            kwajalein atoll
    10. Senator Hirono. General Reed, Kwajalein Atoll and other 
strategically important locations throughout the Indo-Pacific rely on 
shipments of diesel fuel and other non-renewable sources of energy to 
power their missions. In your professional military opinion, in the 
event of a conflict, how likely is it that China or another adversary 
would target a vulnerable fuel supply like diesel shipments to 
Kwajalein?
    General Reed. Historical precedent and strategic considerations 
suggest adversaries will target logistical vulnerabilities, including 
movement and storage of bulk fuel. The People's Republic of China, with 
its advanced ballistic and hypersonic missile capabilities, can target 
locations like Kwajalein Atoll. USINDOPACOM mitigates this threat by 
dispersing assets and investing in redundant supply points. As the 
Single Manager for bulk fuel, I analyze and mitigate identified 
vulnerabilities, particularly within the bulk fuel network, in close 
coordination with USINDOPACOM and other combatant commands. USTRANSCOM 
supports this resiliency with a mix of organic and commercial maritime 
tankers, providing fuel delivery flexibility and dispersing targets 
throughout the USINDOPACOM Area of Responsibility.

    11. Senator Hirono. General Reed, if so, would it be in DOD's 
interest to pursue a more resilient energy strategy so the joint force 
is better postured throughout the Indo-Pacific?
    General Reed. The DOD benefits from pursuing more resilient energy 
strategies. DOD policy supports mission readiness through assured and 
resilient operational energy availability. Achieving resilience by 
diversifying energy sources, expanding and positioning capacity, 
minimizing military-specific applications, and strengthening supply 
chains incurs costs and potential sustainability challenges requiring 
consideration. Operationally, the DOD will remain reliant on petroleum 
for the foreseeable future, a responsibility I bear as DOD's Single 
Manager for bulk fuel. Regarding energy diversification strategies for 
installations and operating locations, I defer to the Service Chiefs 
and their title 10 authorities.
                           civilian mariners
    12. Senator Hirono. General Reed, the Military Sealift Command has 
implemented a plan to remove crews from 17 Navy support ships due to a 
lack of qualified civilian mariners in a ``force generation reset.'' Do 
you agree this ``force generation reset'' was necessary, and how can we 
reverse these concerning manning issues?
    General Reed. The Military Sealift Command's (MSC) placement of 
these ships in extended maintenance and redistributing its finite pool 
of Civil Service Mariners to mission-critical ships is less a choice 
and more an operational imperative to ensure its continued ability to 
sustain worldwide Navy operations amid a nationwide shortage of 
skilled, licensed mariners, and an atrophied maritime industry. I am 
supportive of MSC's initiatives to build trust and address the quality 
of service and compensation concerns of its workforce to make it the 
industry employer of choice. It is encouraging to see Congress consider 
legislation like the SHIPS for America Act aimed at the revitalization 
of our Nation's shipbuilding and Merchant Marine workforce. The Bill's 
passage into law would benefit both USTRANSCOM and MSC.

    13. Senator Hirono. General Reed, what operational impact does 
sidelining these 17 ships have on your ability to resupply the joint 
force around the world, including the Indo-Pacific?
    General Reed. Actions supporting the MSC workforce initiative 
predominately impact the combat logistics support of Navy and Marine 
Corps operations. These actions do not directly affect USTRANSCOM since 
global deployment capabilities rely on the use of ships with contract 
mariner crews vice government civil service mariners. However, it is 
important again to note that there is a national shortfall of merchant 
mariners that is affecting the readiness of all ships supporting 
national defense requirements.

                    global household goods contract
    14. Senator Hirono. General Reed, I remain concerned about how the 
roll-out for the Global Household Good Contract (GHC) is proceeding. 
Recently, the Army, and possibly also the Air Force, have issued 
directives pulling back all moves that have been awarded through the 
GHC vehicle that do not have 21 days lead time. I would like to get a 
commitment from you to personally keep the relevant Armed Services 
Committee staff apprised, (Creighton Greene and John Quirk, minority 
staffers), as well as my National Security Advisor, (Adam Yost), of any 
additional issues associated with GHC and provide regular updates 
throughout 2025 as the roll-out continues. This is an extremely 
important issue as peak Permanent Change of Station (PCS) move season 
is approaching.
    General Reed. The change from the Tender of Service to the GHC 
necessitates a deliberate process. USTRANSCOM will continue to inform 
the congressional defense committee staff, to include your committee 
staff, on the issues with the transition to GHC. Our servicemembers and 
their families have faced challenges with GHC. However, a single 
company does not define GHC. Our servicemembers' and their families' 
experiences will ultimately define GHC. We owe them our best, and I am 
determined to ensure they receive the quality experience they deserve.

                               __________

            Questions Submitted by Senator Elizabeth Warren
                             guantanamo bay
    15. Senator Warren. General Reed, what has been the number of 
shipments and the content of cargo transported to U.S. Naval Station 
Guantanamo Bay since January 20, 2025?
    General Reed. USTRANSCOM conducted 31 military and contract airlift 
missions to U.S. Naval Station Guantanamo Bay between January 20, 2025, 
and March 25, 2025. These missions transported 715 passengers and 
1016.9 short tons of cargo. The cargo consisted of sustainment supplies 
and equipment in support of Operation Southern Guard. This included 
both supplies for the base's general operations and equipment 
specifically designated for Operation Southern Guard.

    16. Senator Warren. General Reed, what is the total number of 
flight hours U.S. Transportation Command (TRANSCOM) has flown 
transporting migrants on deportation flights since January 20, 2025, 
and what has been the average cost per flight hour?
    General Reed. As of 08 April, USTRANSCOM has flown a total of 46 
flights on military aircraft in support of migrant deportation flights. 
The flights total 802.5 hours at an average cost of $26,277 per flight 
hour.

    17. Senator Warren. General Reed, has TRANSCOM used contractors to 
transport personnel or cargo related to migrants held at U.S. Naval 
Station Guantanamo Bay since January 20, 2025?
    General Reed. USTRANSCOM used contract airlift for a portion of the 
31 missions mentioned previously to transport personnel and equipment 
in support of Operation Southern Guard. None of these contract flights 
transported migrants to or from Guantanamo Bay. Military aircraft 
handled all migrant transport.

    18. Senator Warren. General Reed, please provide a list of all 
contracts paid, agreed to, or modified since January 20, 2025, 
including the cost, for transporting personnel or cargo related to 
migrants held at U.S. Naval Station Guantanamo Bay?
    General Reed. USTRANSCOM has a single-award contract that provides 
liner services of containerized and breakbulk cargo (food, household 
goods, privately owned vehicles, etc.) between Jacksonville, FL and US 
Naval Station Guantanamo Bay (NSGB), Cuba in support of DOD personnel 
stationed at NSGB. The contract supports the Navy, awarded in July 2024 
for a base year plus four option years at ?$83M. There have been no 
modifications to the contract or costs identified or associated to 
transporting cargo related to the migrants held at NSGB.
    Since January 20, 2025, USTRANSCOM has contracted 10 flights, 
operated by the carriers identified below, to support migrant 
operations. None of the contracted flights moved any migrants to U.S. 
Naval Station Guantanamo Bay.

------------------------------------------------------------------------
   Contract Number            Carrier            Type          Cost
------------------------------------------------------------------------
HTC711-25-D-CC04      ATLAS AIR INC            Cargo       $  194,104.00
------------------------------------------------------------------------
HTC711-25-D-CC05      DELTA AIRLINES INC       Passenge    $  200,000.00
                                                r
------------------------------------------------------------------------
HTC711-25-D-CC15      OMNI AIR INTERNATIONAL   Passenge    $  490,463.04
                                                r
------------------------------------------------------------------------
HTC711-25-D-CC17      UNITED AIRLINES INC      Passenge    $  660,814.30
                                                r
------------------------------------------------------------------------
HTC711-25-D-CC29      SUN COUNTRY, INC         Passenge    $  126,077.50
                                                r
========================================================================
                                                           $1,671,458.84
------------------------------------------------------------------------

    19. Senator Warren. General Reed, please describe any steps 
TRANSCOM is currently taking to prepare to increase its capacity to 
transport people or goods to U.S. Naval Station Guantanamo Bay.
    General Reed. In anticipation of U.S. presence and increased 
capacity at U.S. Naval Station Guantanamo Bay and support to Operation 
Southern Guard, USTRANSCOM has temporarily increased the number of 
weekly rotator flights to three, consisting of two passenger and one 
cargo (previously one of each). In addition, USTRANSCOM deployed a 
Contingency Response Element to enhance throughput and provided 
USSOUTHCOM with Joint Enabling Combatant Command planning, 
communications and public affairs support.
                               __________

               Questions Submitted by Senator Mark Kelly
                      commercial maritime capacity
    20. Senator Kelly. General Reed, the job of TRANSCOM is to be able 
to move personnel, equipment, and cargo for the U.S. military around 
the world--correct? Can you do that job without shipping goods by sea?
    General Reed. No. Sealift is critical to execution of the current 
Operation Plan (OPLAN) and sealift moves roughly 90 percent of unit 
equipment and sustainment cargo in times of war. The ability to deploy 
and sustain a sizable land force is fundamental to current and future 
defense strategies and drives the need for a responsive sealift fleet. 
As an example, moving two Armored Brigade Combat Teams would require 
612 C-17A airlift sorties, which would make any OPLAN difficult if not 
impossible. Airlift alone cannot move a force big enough to matter or 
fast enough to be useful.

    21. Senator Kelly. General, Reed, does the Government--through 
Military Sealift Command (MSC)--have sufficient capacity to move all of 
the equipment and cargo you are responsible for moving?
    General Reed. While the Nation possesses a significant fleet of 
government-owned and leased vessels, they fall well short of the 
required capacity of approximately 19 million square feet. The Nation's 
Strategic Sealift requirement is satisfied through a combination of the 
Maritime Administration's (MARAD) Ready Reserve Force (RRF) and U.S. 
commercial shipping companies' participation in the Maritime Security 
Program (MSP)/Voluntary Intermodal Sealift Agreement (VISA) programs. 
The age of the ships in the RRF is creating readiness problems. We must 
continue to recapitalize the organic capacity within the RRF to 
maintain strategic deterrence through Force Projection.

    22. Senator Kelly. General Reed, you rely on the commercial 
maritime industry--that is U.S.-flag vessels crewed by American 
mariners--to move goods by sea, correct?
    General Reed. Yes.

    23. Senator Kelly. General Reed, those vessels are basically a part 
of the Maritime Security Program (MSP) and Tanker Security Program 
(TSP), right?
    General Reed. The MSP and Tanker Security Program (TSP) 
participants provide USTRANSCOM significant capacity operating in 
international trade. USTRANSCOM also relies on participants enrolled in 
the VISA and the Voluntary Tanker Agreement (VTA) programs, with some 
vessels operating internationally and others operating in the U.S. 
domestic Jones Act coastwise trade.

    24. Senator Kelly. General, Reed, how many vessels do we have in 
both of those programs combined and is that enough vessels to meet 
TRANSCOM's immediate requirements, as well as any requirements you may 
have to move equipment and cargo overseas in a time of conflict?
    General Reed. The U.S. currently has 95 ocean-going dry cargo ships 
in the VISA program, of which 60 of those vessels are also enrolled in 
MSP. Thirteen tankers in the VTA program of which 10 of those tankers 
are in TSP. While these four major programs (VISA, MSP, VTA and TSP) 
provide a vital capability, USTRANSCOM relies on a mix of assets--
including our organic fleet, commercial U.S.-flag, and commercial 
foreign-flag vessels--to meet the full spectrum of our requirements in 
a major conflict. USTRANSCOM is constantly evaluating the adequacy of 
our sealift capacity and work closely with the Navy, the Maritime 
Administration, and the maritime industry to address shortfalls.

    25. Senator Kelly. General Reed, even if we did have enough 
vessels, are there enough credentialed merchant mariners--both licensed 
and unlicensed mariners--to crew the number of ships we need during a 
time of conflict?
    General Reed. In accordance with Presidential Directives and 
National Policy, USTRANSCOM relies on the Department of 
Transportation's Maritime Administration (MARAD) to determine whether 
adequate manpower is available to activate and operate the ships of the 
Ready Reserve Force as well as the commercial fleet during a crisis. 
Past assessments indicated sufficient mariners to initially activate 
and operate both organic and commercial sealift assets, but 
insufficient mariners for sustained operations on both the organic and 
commercial fleets requiring crew rotations. USTRANSCOM participated in 
MARAD's 2024 Maritime Workforce Working Group, mandated by Congress and 
formed to reassess mariner sufficiency and operational risk, and DOD 
looks forward to the recommendations and way forward.

    26. Senator Kelly. General Reed, the reason for that is a self-
fulfilling prophecy, right? Because we don't have enough ships, we 
don't have enough jobs for mariners, which means people find other jobs 
doing something else and then their license expires, right?
    General Reed. There are many factors that affect the number of 
mariners. For example, maritime operators adjust the size of their 
fleets based on cargo and must have sufficient cargo opportunities to 
keep the ships and mariners employed. Without cargo, the maritime 
operators struggle to sustain their fleets and remain economically 
viable. The success of the DOD sealift mission is inextricably linked 
to the health of the U.S. commercial maritime industry.

    27. Senator Kelly. General Reed, what's the average age of one of 
those ships--either the Government-owned cargo ships through MSC or the 
commercial MSP and TSP ships?
    General Reed. In the commercial fleet, MSP and TSP ships are 
limited in age by statute. Ships must be replaced in MSP at a maximum 
age of 25 years and replaced in TSP at a maximum age of 20 years. Due 
to this self-recapitalization, the average ages are 14.5 years for MSP 
ships and 9.5 years for TSP tankers. For the government-owned ships 
through the MARAD Ready Reserve Force (RRF), the average age is 43 
years, with 14 ships more than 50 years old.

    28. Senator Kelly. General Reed, are all of those ships built in 
shipyards in the United States? Are most of them?
    General Reed. Currently no U.S.-built ships are in MSP or TSP. 
Within MARAD's RRF, of 52 total ships, there are 16 U.S.-built ships.

    29. Senator Kelly. General Reed, in planning for a wartime 
contingency--is it TRANSCOM's responsibility to plan to ensure we have 
enough cargo vessels to support our economy during war time? But you 
would agree during a wartime contingency, the United States will need 
to keep our economy functioning? So, in reality, we probably need more 
ships than even TRANSCOM projects, correct? For economic sustainment, 
replenishment of lost vessels, and more?
    General Reed. The responsibility for ensuring sufficient military 
and civil maritime resources to meet defense deployment and essential 
economic requirements, as defined in National Security Directive on 
Sealift (NSD 28), extends beyond USTRANSCOM to a national level. The 
NSD 28 emphasizes the need for the United States to be prepared for 
unilateral responses to security threats outside of alliance 
commitments, requiring sufficient U.S.-owned sealift resources. While 
USTRANSCOM's primary focus is projecting and sustaining military power, 
we consider the broader impact on the Nation's economic well-being by 
working with the Maritime Administration and the commercial shipping 
industry to understand their needs and vulnerabilities in wartime 
scenarios, recognizing potential temporary disruptions to commercial 
trade when prioritizing national strategic objectives.

    30. Senator Kelly. General Reed, if Congress set a goal of bringing 
250 ships under the U.S.-flag and operating in international commerce, 
do you believe that is an appropriate target that fully meets 
TRANSCOM's requirements and could sustain our economy?
    General Reed. While a significant increase in the size of the U.S.-
flag fleet is an encouraging goal, the exact number needed, such as a 
proposed 250, depends on vessel specifics like size, deck strengths, 
draft, carrying capacity, and port accessibility. Although 250 ships 
would undoubtedly improve our current posture, it's crucial to consider 
the mix of ship types and capabilities required, the need for a larger 
pool of skilled mariners, and the long-term commitment from both 
government and private sectors to build, sustain, and utilize such a 
fleet, including having sufficient cargo. USTRANSCOM will be an active 
partner in this endeavor to restore the United States as a maritime 
powerhouse.

    31. Senator Kelly. General Reed, if we sought to remove regulatory 
barriers and create incentives to bring more vessels into the fleet, we 
would want them to be operating, correct? Because then they'd have a 
full crew who was training on the vessel and keeping their credentials 
current?
    General Reed. USTRANSCOM depends on both the commercial fleet and 
the government-owned organic fleet for our operations. Regarding the 
commercial fleet, removing barriers and creating incentives are 
beneficial to grow the fleet, and operating ships serve as optimal 
training platforms. For the organic fleet, we need MARAD's RRF to be in 
the Continental United States (not operating in trade) and readily 
available for rapid force deployment surge outbound.

    32. Senator Kelly. General Reed, thank you for reviewing the SHIPS 
for America Act that I introduced last year. As we prepare to 
reintroduce the bill, will you make sure that your team gives us any 
and all technical assistance we need to make sure our bill serves 
TRANSCOM's needs?
    General Reed. Thank you for the multiple opportunities to review 
the draft SHIPS for America Act and provide USTRANSCOM's inputs to your 
staff. USTRANSCOM supports legislation intended to strengthen our 
Nation's maritime posture and will provide technical assistance 
whenever your staff requests the assistance.

                 air mobility command/migrant detainees
    33. Senator Kelly. General Reed, last month, the committee had the 
opportunity to speak to your colleagues at U.S. Northern Command and 
U.S. Southern Command about the DHS support mission the military has 
been tasked with. What are the impacts of utilizing TRANSCOM assets 
like C-17s to transport migrants?
    General Reed. Using strategic airlift assets to transport migrants 
is not an efficient use of these military aircraft. By committing 
strategic airlift assets to transport migrants, they are unavailable 
for the joint force to conduct other real-world operations and 
training.

    34. Senator Kelly. General Reed, how are these missions impacting 
your budget and operational readiness?
    General Reed. USTRANSCOM does not expect these actions to result in 
any net financial impact. The Transportation Working Capital Fund 
(TWCF), a revolving fund, provides upfront funding for mission-critical 
expenses and the subsequently reimbursement of the expenses to the TWCF 
maintain a zero-sum budgetary effect. As of 04 April, USTRANSCOM 
incurred $38.1 million in expenses and reimbursed $28.2 million from 
the Air Force.

    35. Senator Kelly. General Reed, are these costs affecting 
TRANSCOM's ability to meet other mission requirements, and how are they 
being accounted for within your budget?
    General Reed. The border mission costs are not impacting USTRANSCOM 
ability to meet other mission requirements. The Transportation Working 
Capital Fund's current balance can maintain working capital fund 
operations at present levels. As of 04 April, USTRANSCOM incurred $38.1 
million in expenses and reimbursed $28.2 million from the Air Force.

    36. Senator Kelly. General Reed, while TRANSCOM is transporting DHS 
detainees, what does the chain of custody look like? Who is responsible 
for the detainees from start to finish and has that been officially 
recorded anywhere?
    General Reed. DOD is in support of DHS for these operations. DHS 
agents maintain custody of detainees on USTRANSCOM removal flights, 
with one exception on a recent Guantanamo Bay to El Salvador flight 
where JTF-SG (USSOUTHCOM) security forces were responsible. Consistent 
with the Immigration and Nationality Act, DHS, as the lead Federal 
agency, retains legal, physical, and administrative control of illegal 
aliens and fulfills those responsibilities through the direction of DHS 
personnel, as reflected in the relevant classified DOD execute orders.

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