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S. Hrg. 108-440, Pt. 3 DEPARTMENT OF DEFENSE AUTHORIZATION FOR APPROPRIATIONS FOR HSCAL YEAR 2005 """^"""^^"^^""^ Y 4.AR 5/3: S.HRG.108-440/PT.3 Department of Defense Authoriza HEARINGS BEFORE THE COMMITTEE ON ARMED SERVICES UNITED STATES SENATE ONE HUNDRED EIGHTH CONGRESS SECOND SESSION ON S. 2400 TO AUTHORIZE APPROPRIATIONS FOR FISCAL YEAR 2005 FOR MILITARY ACTIVITIES OF THE DEPARTMENT OF DEFENSE, FOR MILITARY CON- STRUCTION, AND FOR DEFENSE ACTIVITIES OF THE DEPARTMENT OF ENERGY, TO PRESCRIBE PERSONNEL STRENGTHS FOR SUCH FISCAL YEAR FOR THE ARMED FORCES, AND FOR OTHER PURPOSES PART 3 READINESS AND MANAGEMENT SUPPORT MARCH 9, 23; APRIL 1; MAY 13, 2004 Printed for tljie,jase of the Committee on Armed Services dPERIWTENDhWT OFOOCUMEWTS DEFOStTGRY OtU 1 4 2005 I 5£fJ0NPUBLICLIBRARY SOVERftlMENTDOCUMENTSDEPT S. Hrg. 108-440, Pt. 3 DEPARTMENT OF DEFENSE AUTHORIZATION FOR APPROPRIATIONS FOR HSCAL YEAR 2005 HEARINGS BEFORE THE COMMITTEE ON AKMED SERVICES UNITED STATES SENATE ONE HUNDRED EIGHTH CONGRESS SECOND SESSION ON S. 2400 TO AUTHORIZE APPROPRIATIONS FOR FISCAL YEAR 2005 FOR MILITARY ACTIVITIES OF THE DEPARTMENT OF DEFENSE, FOR MILITARY CON- STRUCTION, AND FOR DEFENSE ACTIVITIES OF THE DEPARTMENT OF ENERGY, TO PRESCRIBE PERSONNEL STRENGTHS FOR SUCH FISCAL YEAR FOR THE ARMED FORCES, AND FOR OTHER PURPOSES PART 3 READINESS AND MANAGEMENT SUPPORT MARCH 9, 23; APRIL 1; MAY 13, 2004 Printed for the use of the Committee on Armed Services U.S. GOVERNMENT PRINTING OFFICE 93-573PDF WASHINGTON 2005 : ForsalebytheSuperintendentofDocuments,U.S.GovernmentPrintingOffice Internet:bookstore.gpo.gov Phone:tollfree(866)512-1800;DCarea(202)512-1800 Fax:(202)512-2250 Mail:StopSSOP,Washington,DC20402-0001 COMMITTEE ON ARMED SERVICES JOHN WARNER, Virginia, Chairman JOHN McCAIN, Ai-izona CARL LEVIN, Michigan JAMES M. INHOFE, Oklahoma EDWARD M. KENNEDY, Massachusetts PAT ROBERTS, Kansas ROBERT C. BYRD, West Virginia WAYNE ALLARD, Colorado JOSEPH I. LIEBERMAN, Connecticut JEFF SESSIONS, Alabama JACK REED, Rhode Island SUSAN M. COLLINS, Maine DANIEL K. AKAKA, Hawaii JOHN ENSIGN, Nevada BILL NELSON, Florida JAMES M. TALENT, Missouri E. BENJAMIN NELSON, Nebraska SAXBY CHAMBLISS, Georgia MARK DAYTON, Minnesota LINDSEY O. GRAHAM, South Carolina EVAN BAYH, Indiana ELIZABETH DOLE, North Carolina HILLARY RODHAM CLINTON, New York JOHN CORNYN, Texas MARK PRYOR, Arkansas Judith A. Ansley, StaffDirector Richard D. DeBobes, Democratic StaffDirector Subcommittee on Readiness and Management Support JOHN ENSIGN, Nevada, Chairman JOHN McCAIN, Arizona DANIEL K. AKAKA, Hawaii JAMES M. INHOFE, Oklahoma ROBERT C. BYRD, West Virginia PAT ROBERTS, Kansas BILL NELSON, Florida WAYNE ALLARD, Colorado E. BENJAMIN NELSON, Nebraska JEFF SESSIONS, Alabama MARK DAYTON, Minnesota JAMES M. TALENT, Missouri EVAN BAYH, Indiana SAXBY CHAMBLISS, Georgia HILLARY RODHAM CLINTON, New York JOHN CORNYN, Texas MARK PRYOR, Arkansas (II) CONTENTS CHRONOLOGICAL LIST OF WITNESSES Military Readiness Programs MARCH 9, 2004 Page Casey, GEN GeorgeW., Jr., USA, Vice ChiefofStaff, United States Army 5 Mullen, ADM Michael G., USN, Vice Chief of Naval Operations, United States Navy 10 Moseley, Gen. T. Michael, USAF, Vice Chief of Staff, United States Air Force 24 Huly, Lt. Gen. Jan C, USMC, Deputy Commandant of the Marine Corps Plans, Policies, and Operations, United States Marine Corps 38 Department of Defense Financial Management MARCH 23, 2004 Walker, Hon. David M., Comptroller General of the United States General Accounting Office (GAO) 127 Zakheim, Hon. Dov S., Under Secretary ofDefense (Comptroller) 143 Military Installation Programs APRIL 1, 2004 DuBois, Raymond F., Jr., Deputy Under Secretary ofDefense for Installations and Environment 190 Lust, MG Larry J., USA, Assistant Chief of Staff for Installation Manage- ment, United States Army 203 Weaver, RADM Christopher E., USN, Commander, U.S. Navy Installations Command 218 Williams, Brig. Gen. Willie E., USMC, Assistant Deputy Commandant, Instal- lations and Logistics [Facilities], Commandant ofthe Marine Corps 231 Fox, Maj. Gen. Dean, USAF, The Air Force Civil Engineer and Deputy Chief ofStaff, Installations and Logistics, USAF 238 Acquisition Policy Issues MAY 13, 2004 Wynne, Hon. Michael W., Acting Under Secretary ofDefense for Acquisition, Technology, and Logistics 336 Ballard, Tina, DeputyAssistant Secretary oftheArmyfor Policy and Procure- ment 353 Strock, MG Carl, USA, Director of Civil Works, U.S. Army Corps of Engi- neers 356 McManus, MG Wade H., Jr., USA, Commanding General, U.S. Army Field Support Command 361 (III) DEPARTMENT OF DEFENSE AUTHORIZATION FOR APPROPRIATIONS FOR FISCAL YEAR 2005 TUESDAY, MARCH 9, 2004 U.S. Senate, Subcommittee on Readiness AND Management Support, Committee on Armed Services, Washington, DC. MILITARY READINESS PROGRAMS The subcommittee met, pursuant to notice, at 2:30 p.m. in room SR-232A, Russell Senate Office Building, Senator John Ensign (chairman ofthe subcommittee) presiding. Committee members present: Senators Ensign, McCain, Inhofe, Cornyn, Akaka, E. Benjamin Nelson, and Pryor. Committee staff member present: Leah C. Brewer, nominations and hearings clerk. Majority staff members present: L. David Cherington, counsel, William C. Greenwalt, professional staff member; Gregory T. Kiley, professional staff member; Lucian L. Niemeyer, professional staff member; and Joseph T. Sixeas, professional staffmember. Minority staff members present: Maren R. Leed, professional staff member; Peter K. Levine, minority counsel; and Michael J. McCord, professional staffmember. Staff assistants present: Andrew W. Florell and Sara R. Mareno. Committee members' assistants present: Christopher J. Paul and Dan Twining, assistants to Senator McCain; John A. Bonsell, assistant to Senator Inhofe; D'Arcy Grisier, assistant to Senator En- sign; William K. Sutey, assistant to Senator Bill Nelson; Andrew Shapiro, assistant to Senator Clinton; and Terri Glaze, assistant to Senator Pryor. OPENING STATEMENT OF SENATOR JOHN ENSIGN, CHAIRMAN Senator ENSIGN. Good afternoon, everyone, and welcome. The Subcommittee on Readiness and Management Support meets today to begin our hearings for th—e fiscal year 2005 Defense Authorization Request. Befor—e we begin and Senator Akaka will be with us in just a moment I'd like to thank him. We worked to- gether and had a great team last year, worked across party lines, and put the Armed Services and the defense of our country first and foremost before any political considerations, and I just want to say thank you to him and to his staffpublicly today. (1) This subcommittee enjoys a broad charter, the result ofoversight responsibihty in areas that are as diverse as they are plentiful. Over the next 5 weeks, the subcommittee will be examining a num- ber of issues relevant to ensuring the readiness of the Armed Forces and the effective management ofthe Department of Defense and the four Services. In addition to today's discussion on military readiness programs, the subcommittee's agenda for this session in- cludes: on March 23, a hearing on Defense Department financial management policies and practice; on April 1, a hearing on issues related to military installation and the Department's budget request for military construction; and on April 6, a hearing to exam- ine Defense Department acquisition policies. We have a great deal of work ahead in this session, and I am looking forward to getting started. Our focus this afternoon will be to discuss key military readiness programs of the Services. These include programs that support operation and maintenance of ships, aircraft, tanks, and related sys- tems; train personnel; provide for logistics; and maintain base facilities. I'm looking forward to candid assessment from each of the witnesses on the current status ofthese programs and their assessment on how these programs are supporting the overall readiness ofthe Services today. The President has proposed a $102.6 billion request for the readiness programs ofthe active and Reserve components for fiscal year 2005. This is a 5.1 percent real increase over current spending plan for fiscal year 2004. While we have received the Services' lists of requirements for fiscal year 2005 that were not included in the budget request, I am particularly encouraged to see that the Presi- dent was able to meet over 96 percent of the funding requirements for the coming fiscal year for each of the Services with his budget proposal. Given the challenges facing the military today to maintain a fully ready force while defending the homeland, fighting the war a terrorism, and supporting the transitions to peaceful democ- racies in Iraq and Afghanistan, I believe this request is right on the mark. We will be specifically interested to learn from the witnesses today their assessment of how the President's budget request for fiscal year 2005 will support readiness programs and what the po- tential implications would be ofany reduction in the President's request. In addition to your thoughts on the budget for readiness programs, we will also be interested in learning about the progress that each of your services has made in resetting units that have returned to their home stations from deployments in support ofOp- eration Iraqi Freedom and Operation Enduring Freedom. Finally, we look forward to hearing your views on any long-term readiness issues that could develop as a result of the sustained deployment ofmilitary units for contingency operations. I am convinced that we must support the Department's man- power enhancement initiatives. With active component/Reserve component rebalancing and the military-to-civilian conversion initiatives, we can fully maximize the talents and skills of at least 70,000 service members that are resident today within the active, Reserve, and National Guard. We simply cannot afford to have today's service men and women serving in billets and occupational specialities that are not essential for 21st century challenges. Further, I believe that time is ofthe essence. The costs ofnot im- plementing these initiatives are simply too high. Every day, some- one decides either to continue in the service or to seek relevance in the growing civilian economy. We have such a tremendously ca- pable group ofmen and women in uniform, and I don't want to lose them. The Defense Department's initiatives will greatly increase the readiness, responsibility, and flexibility of the force. For me, this is the bottom line. I look forward to each of the witnesses taking a moment to share their views on these initiatives. We are privileged to have testifjdng before us a panel represent- ing each ofthe Services. All are exceptionally qualified officers join- ing us today: General George W. Casey, Jr., Vice Chief of Staff, United States Army; Admiral Michael G. Mullen, Vice Chief of Naval Operations, United States Navy; General T. Michael Moseley, Vice Chief of Staff, United States Air Force; and Lieuten- ant General Jan C. Huly, Deputy Commandant of the Marine Corps for Plans, Policies, and Operations, United States Marine Corps. Many thanks to each ofyou forjoining us today. Now I turn to the distinguished ranking member, who I said some nice things about before you got here. Welcome, Senator Akaka. STATEMENT OF SENATOR DANIEL K. AKAKA Senator Akaka. Thank you very much, Mr. Chairman. Senator Ensign. As a matter of fact, it was a brilliant, glowing statement. [Laughter.! Senator Akaka. Thank you. I'll look at the record. [Laughter.l I'm delighted to be here with you and working with you, Mr. Chairman. I want to begin by saying how much we appreciate what the brave men and women of the Army, Navy, Air Force, and Marine Corps, who are putting their lives on the line for America, are doing for our country. We're proud ofthem and all ofthe leadership of the military. Our men and women in uniform around the world are in our thoughts and prayers, and you and your soldiers, sailors, airmen, and marines all have our sincere gratitude. I want to also welcome our panelists here this afternoon, and thank you for sharing your insights with us on readiness today. We appreciate your being here. I want to welcome you, individually. General Casey and —Admiral Mullen, G—eneral Moseley, and I under- stand Jenny is here oh, yes, welcome and also General Huly. Each year when we conduct this hearing, I think we have reached the peak of strain on our forces; but each year, the stress on our forces gets worse. I sincerely hope that this year does represent the peak, as the level of engagement of our forces right now is very high and is a significant strain. I also hope that the efforts each of your Services are making to reduce their strain are effective. So even if our military is faced with the same level of oper- ational commitments in the future, the burden on our personnel and their families will be lessened. While I have every confidence in our Armed Forces and their abiUty to excel at whatever we might ask ofthem, I want to ensure that we continue to provide the support that they need as we go forward. We have had a lot of testimony already this year about possible shortfalls in supplemental funding for the remainder of this year, and the timing of any supplemental funding for next year, both of which will have a significant impact on the services' ability to reconstitute their forces and reset their future operations. Between now and then, we will consider the fiscal year 2005 budget request, which we will get more into today. I must add that, for our part, as we consider that request, I hope that Congress does not compound the challenges facing the services by making deep cuts in operation and maintenance accounts. That said, and as was the case last year, we find ourselves con- sidering a budget request that seems disconnected from current re- ality because it assumes ongoing operations in Iraq and Afghani- stan will stop by September 30. I hope that the Senate will be able to remedy that disconnect in our upcoming budget resolution, at least to a certain extent; but, in the meantime, we find ourselves examining a so-called peacetime budget when we know that at least some of our forces will continue to be deployed in Iraq and Afghanistan at the beginning ofnext fiscal year. Despite these artificialities, our challenge is to provide the strongest possible foundation for the readiness of our forces in this year's authorization act. As I have reviewed your requests, I have some concerns about certain readiness areas. I am particularly con- cerned about apparent shortfalls in depot maintenance, which most of you have funded at 84 percent, or lower, of your known peacetime requirements. I am also worried about funding for base oper- ating support and the possible sources of funds you will decrement to pay mandatory bills in this area as the fiscal year proceeds. Hopefully, your testimony and our discussions today will shed light on some of the considerations behind the decisions reflected in this budget. I also hope to gain a deeper appreciation for your short- and long-term readiness concerns, and any help that we may be able to provide. Again, I welcome our witnesses and look forward to your testimony. Thank you very much, Mr. Chairman. Senator Ensign. Thank you. Before proceeding, I want to note that we will only be discussing topics today at the unclassified level. I remind each of you to keep that in mind. Also, without objection, your full statements will be made part of the record. We look forward to your personal presen- tations here, and then we'll have a period of questions and an- swers. We have a vote that's going to start about 2:45, and Senator Akaka's goi—ng to go to the floor and vote, and then come back, and then I'll go so we won't keep you any longer today than is abso- lutely necessary. So, General Casey, we'll just start with you, and work down the table.