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House Armed Services Committe
Subcommittee Chairman Abercrombie's Opening Statement --May 09, 2007

"The subcommittee's jurisdiction includes $71 billion in DOD procurement and research and development in Titles I and II and another $26 billion in Title XV, which the committee will address later in the markup.

"Our proposed legislation for HR 1585 includes:

• Multi-year procurement for CH-47 aircraft and CH-47 upgrades; and
• Multi-year procurement for Abrams Tank and Bradley Fighting Vehicle Upgrades.

"The proposed legislation would restrict funding for the Joint Network Node, an internet-based voice, video, and data network, until the Secretary of the Army certifies the program is a program of record in compliance with DOD acquisition regulations, that a test plan has been approved, and that procurement of future lots is competed.

"Funding for the Joint Cargo Aircraft would be restricted until reports on intra-theater airlift requirements are provided to the congressional defense committees.

"Legislative authority is recommended to allow the Air Force to retire C-5A aircraft. Congress restricted the Air Force from retiring C-5 aircraft, beginning in fiscal year 2004. The Air Force contends that the operating costs of the older C-5A aircraft make it beneficial to retire 30 of those aircraft and procure additional C-17s. The mark supports that position, but requires the Air Force to maintain a fleet of 299 strategic airlift aircraft. Given that the fleet is currently at 275 aircraft and the C-17 production rate is a little over one per month, C-5A retirement could not begin for two years and would take place over an extended period of time as new C-17s are produced.

"The legislation would limit the Joint Light Tactical Vehicle Program entering into systems development and demonstration until technology maturity thresholds have been met.

"A legislative proposal is included that would require an independent test of combat helmet pad suspension systems.

"A requirement is included in the mark for the Department of Defense to fund the competitive engine program for the F-35 Joint Strike Fighter. Congress has supported this development since 1996. Cost pressures within the F-35 program last year led the Pentagon to terminate competitive engine development. Congress mandated that the program continue. The Pentagon this year again proposed termination. The mark recognizes the potential benefits of a competitive program.

"Finally, legislation is included regarding the Future Combat Systems program. Conceptually, FCS uses a network of communications, sensors, and active protection to permit lighter, more maneuverable vehicles. Since FCS manned ground vehicle survivability is to a significant degree dependent on the assumed synergy provided by the communications and sensor network, there is a need to test this capability prior to low-rate initial production of the FCS manned ground vehicles.

"This proposed legislation would require the Secretary of the Army to conduct a large scale, operationally realistic test of the Future Combat Systems' communications and sensor network prior to beginning production of FCS manned ground vehicles.

"Major program adjustments recommended include:

An additional $2.4 billion for 10 C-17 airlift aircraft, that are included in Title XV;
• An additional $2 billion as part of a total $4.1 billion committee increase for Mine Resistant Ambush Protected tactical vehicles, that will be funded in Title XV;
• Over $500 million additional for National Guard and Reserve Component procurement is provided in the subcommittee's mark to fund equipment shortfalls. Over $500 million additional will be provided in the Chairman's mark for this same purpose.

• An additional $294 million is provided for Stryker Combat Vehicles, offsetting a reduction of $228 million for the Stryker Mobile Gun System because of delays in that program.

• $480 million is authorized for a competitive engine program for the F-35. To fund this effort we have deleted the $230 million request for one aircraft in Title XV and reduced F-35 research and development by $125 million each for the Navy and Air Force.

A reduction of $470 million in the Armed Reconnaissance Helicopter Program is also recommended. In March, the Army issued a show cause letter to the contractor to demonstrate why the program should not be terminated. The first production option was to have been exercised last December. One of the four test aircraft crashed. No operational aircraft have been produced. The projected cost of the aircraft has doubled from $5.2 million to well over $10 million per aircraft. The mark recommends program termination and initiation of another competition for this capability. An additional $31 million, the Army's recommendation, is provided for modifications to the OH-58 aircraft, the aircraft the ARH is intended to replace.

"A total reduction of $760 million is recommended in the KC-X program, B-2 Radar Modernization, Tactical Operations Centers, the Combat Search and Rescue Helicopter program, and the Warfighter Information Network program for funds excess to requirements and higher priority requirements.

"Finally, a reduction of $867 million is recommended in the Future Combat Systems program to reduce concurrency of network and manned ground vehicle development, eliminate components that are redundant, and reduce program management costs.

"The FCS program has faced serious technology, cost, and schedule problems in the past. These issues, have been pointed out by this subcommittee in past years' bills. Unfortunately, most of these same program concerns exist today.

"The Army originally estimated the price for FCS at $91 billion. The Pentagon's cost estimating group now estimates the price for FCS at over $200 billion.

"What is important to recognize is that even when fully fielded in the year 2029 -- 22 years from now, FCS will only represent 20 percent of the Army's combat force structure.

"The Army is in trouble.the active duty Army, the Guard and Reserve. It has serious readiness problems and has massive unfunded bills for repairing equipment damaged in combat, adding more troops to its ranks, and finishing its modular force conversion. The National Guard alone has a $2 billion unfunded requirement in 2008, over a billion dollars worth of which will be addressed in this mark. Even with the committee's recommended decrease in FCS, it is important to consider that the FCS program will still get $2.8 billion to move forward with the core elements of the FCS program.

"Since 2003, the FCS R&D program has slipped five years. The final fielding date of FCS has slipped seven years. That is 12 years added to the program by the Pentagon.

"Yet we are being told that our reduction that amounts to three months of program funding will somehow terminate the program. Any assertions that suggest a 25 percent reduction will eliminate the FCS program is, in my opinion, simply not credible. The mark provides $434.3 million for FCS Spin Out 1 testing and development. Spin Out 1 can provide real capability to troops in combat in 2010, so the mark protects that part of the FCS program. In addition, the mark provides full funding for the non line of sight cannon, a new artillery system that will be the first FCS ground vehicle that will reach the troops by 2010. Finally, in addition to funding for those two critical priorities within FCS, the mark provides $2.1 billion more funding to continue with other parts of the FCS program. While some elements of FCS may be delayed, the mark is carefully targeted to ensure that elements of FCS that can provide real capability by 2010 continue as planned, while delaying elements of FCS that will not be ready until 2014 at the earliest.

"There is no question that some contractors will have to make some adjustments. But our military men and women have been making adjustments for four years. "Again, the Army has had four different FCS program plans over the last five years, adding 12 years and associated costs to the program. Our recommended reduction to fund committee higher priority programs represents three months worth of FCS spending. It is anticipated that some adjustments in the program will have to be made, but the subcommittee's mark of $2.8 billion leaves sufficient funding to support FCS core programs. "The subcommittee mark represents an increase of 40 percent for the Army procurement account over last year's budget request. This subcommittee is not short changing the Army. "Our mark reflects an objective of balancing the health and capability of the current force with the needs of future capabilities. "I believe that this mark funds the priorities of the Members on both sides and unfunded priorities of the Department of Defense and recommend adoption of this mark."