Weapons of Mass Destruction (WMD)

MR. CHAIRMAN AND MEMBERS OF THE COMMITTEE, THANK YOU FOR THE OPPORTUNITY TO APPEAR BEFORE YOU TODAY TO DISCUSS THE DEPARTMENT OF ENERGY'S WEAPONS COMPLEX. MY NAME IS KAREN K. CLEGG. I AM PRESIDENT OF ALLIEDSIGNAL'S FEDERAL MANUFACTURING & TECHNOLOGIES DIVISION (FM&T), WHICH MANAGES THE DEPARTMENT OF ENERGY'S MANUFACTURING PLANT IN KANSAS CITY, MISSOURI. I AM ALSO PRESIDENT OF ALLIEDSIGNAL'S GOVERNMENT SERVICES BUSINESS UNIT, WHICH PROVIDES MOST OF ALLIEDSIGNAL'S SERVICE ACTIVITIES FOR THE FEDERAL GOVERNMENT.

ONE YEAR AGO, I TESTIFIED BEFORE CONGRESS FOR THE FIRST TIME TO OUTLINE THE UNIQUE ISSUES AND PROBLEMS FACING THE DEPARTMENT OF ENERGY'S PRODUCTION FACILITIES.

I TESTIFIED THAT THE DEPARTMENT OF ENERGY'S PRODUCTION FACILITIES FACED A SERIES OF CHALLENGING ISSUES TO ENSURE THE SAFETY AND RELIABILITY OF THE NUCLEAR WEAPONS STOCKPILE. OVERALL, THE MANAGEMENT AND OVERSIGHT EFFORTS FOR THE WEAPONS COMPLEX NEEDED INCREASED EMPHASIS ON THE PRODUCTION FACILITIES TO ENSURE THAT THE WEAPONS COMPLEX AS A WHOLE IS PROPERLY MAINTAINED AND CAPABLE OF FULFILLING ITS MISSION.

THE PRODUCTION PLANTS THEMSELVES NEEDED TO BE DOWNSIZED TO KEEP CURRENT WITH THE PROJECTED DECLINE IN STOCKPILE LEVELS AND DEMANDS. EFFORTS WERE NEEDED TO RETAIN TECHNICALLY QUALIFIED PERSONNEL IN AN ERA OF DECLINING OVERALL BUDGETS AND ACTIVITY. THE PLANTS NEEDED TO BE MODERNIZED AND RECAPITALIZED TO RETAIN THE PHYSICAL AND TECHNICAL CAPABILITY TO SUPPORT THE STOCKPILE IN THE FUTURE. AND, CONTINUING DEVELOPMENT IN THE AREA OF ADVANCED MANUFACTURING WAS NECESSARY TO KEEP CURRENT AND REMAIN COMPATIBLE WITH DESIGN ACTIVITIES AT THE NATIONAL LABORATORIES.

WE HAVE BEGUN TO MAKE SOME PROGRESS THIS PAST YEAR IN MEETING THESE CHALLENGES. CONTINUED EFFORTS ON OUR PART, ALONG WITH ASSISTANCE AND DIRECTION FROM THIS COMMITTEE, WILL BE REQUIRED TO ENSURE THAT THE WEAPONS COMPLEX AS A WHOLE CAN EFFECTIVELY ADVANCE ITS MISSION IN THE FUTURE.

I WOULD LIKE TO TOUCH ON OUR TOP PRIORITIES AND CONCERNS HERE TODAY.

FIRST, AND MOST IMPORTANTLY, THE WEAPONS COMPLEX AS A WHOLE HAS A CRITICAL MISSION THAT CANNOT BE IGNORED. OUR TASK IS TO ENSURE THE SAFETY AND RELIABILITY OF THE WEAPONS STOCKPILE AS LONG AS IT IS IN EXISTENCE. IT IS EASY TO LOSE SIGHT OF THE DEPARTMENT'S OVERALL MISSION AS CHANGES IN THE STOCKPILE OCCUR; AS DISCUSSIONS ABOUT FURTHER REDUCTIONS ARE CARRIED OUT; AND AS THE WEAPONS PROGRAM AS A WHOLE RECEDES FROM THE PUBLIC EYE.

AT THE KANSAS CITY PLANT, WE ARE FULLY ENGAGED IN THE PRODUCTION OF LIMITED LIFE COMPONENTS, STOCKPILE IMPROVEMENT PROGRAMS, AND VARIOUS SURVEILLANCE ACTIVITIES. OUR ABILITY TO MAINTAIN AND SUPPORT THE STOCKPILE IS BECOMING MORE DIFFICULT -- NOT EASIER -- AS CHANGES IN THE STRATEGIC ENVIRONMENT OCCUR. MANY MECHANISMS AND TOOLS, SUCH AS NUCLEAR TESTING TO VALIDATE SCIENTIFIC ANALYSES, ARE NO LONGER AVAILABLE TO US. AS A RESULT, THE SCIENTIFIC AND TECHNICAL CHALLENGES FOR THE ENTIRE COMPLEX HAVE SIGNIFICANTLY INCREASED.

THE DEPARTMENT HAS EMBARKED APPROPRIATELY ON AN EFFORT TO DEVELOP THE NECESSARY SCIENTIFIC AND TECHNICAL CAPABILITIES TO MEET THOSE CHALLENGES AND TO ENSURE THE SAFETY AND RELIABILITY OF THE STOCKPILE IN THE FUTURE. THAT EFFORT WILL TAKE SIGNIFICANT RESOURCES ACROSS A SPECTRUM OF ISSUES, INCLUDING BUDGET, PLANNING, MANAGEMENT, AND OVERSIGHT. THE FOCUS OF THIS EFFORT WILL NATURALLY BE ON THE DEPARTMENT'S WEAPONS LABORATORIES, BUT EACH COMPONENT OF THE WEAPONS COMPLEX HAS A CRITICAL ROLE TO PLAY, INCLUDING THE DEPARTMENT'S PRODUCTION FACILITIES. TO BE SUCCESSFUL, THE DEVELOPMENT OF FUTURE SCIENTIFIC TOOLS MUST BE BALANCED WITH TODAY'S NEEDS FOR STOCKPILE MANAGEMENT.

ONE OF THE CONCERNS AT THE PRODUCTION PLANTS TODAY IS THAT AS EMPHASIS ON STOCKPILE STEWARDSHIP HAS DEVELOPED, THERE HAS BEEN A GROWING SENSE THAT REQUIREMENTS AT THE PLANTS FOR MAINTENANCE, UPGRADES, OR EVEN OPERATIONAL FUNDING CAN BE PUT ASIDE OR DELAYED TO HELP FOCUS SUPPORT FOR STOCKPILE STEWARDSHIP EFFORTS AT THE NATIONAL LABORATORIES.

IN MY VIEW, DIMINISHING SUPPORT FOR THE PRODUCTION PLANTS WOULD BE EXTREMELY SHORTSIGHTED AND DANGEROUS FOR THE COMPLEX. FOR PLANTS TO BE EFFECTIVE MEMBERS OF THE TEAM, WE MUST HAVE CURRENT AND FUTURE CAPABILITIES TO PARTICIPATE FULLY. THERE IS A COST TO DOING THAT, BUT IT IS RELATIVELY MINOR AND WILL YIELD SIGNIFICANT DIVIDENDS IN THE FUTURE.

THE DEPARTMENT RECENTLY COMPLETED THE PROGRAMMATIC ENVIRONMENTAL IMPACT STATEMENT FOR STOCKPILE STEWARDSHIP AND MANAGEMENT -- THE SSMPEIS. THIS STUDY VALIDATED THE MISSION AND ROLE OF THE DEPARTMENT'S CURRENT PRODUCTION FACILITIES. THE STUDY SHOWED THAT IT IS MOST COST EFFECTIVE TO RETAIN THE PRODUCTION PLANTS; IT WOULD BE COST PROHIBITIVE TO ELIMINATE THOSE FACILITIES, BUT EACH SHOULD AND CAN BE DOWNSIZED.

WE ARE NOW IN THE PROCESS OF DEVELOPING PLANS TO IMPLEMENT THE DOWNSIZING OBJECTIVES OUTLINED BY THE SSMPEIS. THESE IMPLEMENTATION EFFORTS WILL REQUIRE FUTURE FUNDING TO DOWNSIZE THE PLANTS PHYSICALLY, FUNDING TO RECAPITALIZE THE PLANTS SO THEY ARE ABLE TO FUNCTION PROPERLY ONCE THEY ARE FULLY DOWNSIZED, AND ADEQUATE SHORT TERM FUNDING TO CARRY OUT PRODUCTION MISSIONS FOR CURRENT REQUIREMENTS. WE ARE WORKING WITH THE DEPARTMENT TO RESOLVE THESE ISSUES.

IN THE PAST, THIS COMMITTEE HAS RECOGNIZED THE IMPORTANCE OF PROVIDING FUNDS FOR THE PRODUCTION PLANTS FOR MODERNIZATION, PRODUCTION PROCESS IMPROVEMENTS, AND RECAPITALIZATION. I URGE YOU TO CONTINUE YOUR STRONG SUPPORT FOR SUCH FUNDING SINCE ACTIVITIES IN THIS AREA ARE CRITICAL TO OUR SUCCESS. UNFORTUNATELY, DUE TO OVERALL BUDGET CONSTRAINTS IN THE DEPARTMENT, WE HAVE NOT BEEN ABLE TO APPLY THIS FUNDING TO ADDRESS PRESSING RECAPITALIZATION AND INFRASTRUCTURE REQUIREMENTS AS INTENDED.

RECAPITALIZATION IS THE BUILDING BLOCK FOR ACTIVITIES SUCH AS MANUFACTURING PROCESS IMPROVEMENTS, PERSONNEL RECRUITMENT AND RETENTION, AND OUR ABILITY TO TEAM WITH THE NATIONAL LABORATORIES. WITHOUT RECAPITALIZATION, OUR ABILITY TO MEET OUR MISSION IN THE FUTURE WILL BE SEVERELY JEOPARDIZED.

AS A CASE IN POINT, THE WORKLOAD AND MISSION AT MY FM&T KANSAS CITY PLANT ARE EXPANDING. THROUGH RECONFIGURATION OF THE COMPLEX, WE'VE ADDED NEW PRODUCT LINES AND INCORPORATED NEW TECHNOLOGIES INTO THE PLANT. OUR PRODUCTION VOLUME HAS TRIPLED SINCE 1995.

IN 1996 OUR PRODUCTION DELIVERIES INCLUDED THE FOLLOWING: TELEMETRY ASSEMBLIES FOR SURVEILLANCE TESTING OF EVERY SYSTEM IN THE STOCKPILE; OVER 700 PRODUCTS, SUCH AS RADARS, FIRESETS, AND ANTENNAS FOR THE B83 STOCKPILE IMPROVEMENT PROGRAM; ALMOST 200 KITS FOR THE B61 ALT 335 QUALITY IMPROVEMENT PROGRAM; THE FIRST FOUR PRODUCTION UNITS FOR THE B61-11 PROGRAM; APPROXIMATELY 1100 PIECES OF HARDWARE FOR AT400 CONTAINERS USED TO STORE PLUTONIUM PITS; AND, AS A NEW ASSIGNMENT THROUGH RECONFIGURATION, OVER 300 RESERVOIRS FOR DELIVERY TO THE SAVANNAH RIVER PLANT. IN ADDITION TO MANUFACTURING PRODUCTS, ALLIEDSIGNAL, FM&T PROVIDED NUMEROUS SCHEDULING AND LOGISTICS SERVICES TO THE ENTIRE NUCLEAR WEAPONS COMPLEX. WE'VE MET PRODUCTION SCHEDULES WITH THE HIGHEST LEVELS OF QUALITY, RELIABILITY, AND EFFICIENCY. WE ARE A KEY PART OF THE OVERALL DOE WEAPONS COMPLEX TEAM.

TO CONTINUE OUR HIGH PERFORMANCE AND BE A VIABLE MEMBER OF THE NUCLEAR WEAPONS COMPLEX, WE NEED TO ADDRESS THE VERY BASICS, SUCH AS REPLACING WORN OUT EQUIPMENT, TO THE VERY COMPLICATED, SUCH AS ENSURING THAT OUR INFORMATION SYSTEMS AND PROCESS MODELING TOOLS ARE INTEGRATED WITH THE SYSTEMS AT THE NATIONAL LABORATORIES. FURTHER, WE MUST ACQUIRE EQUIPMENT AND DEVELOP PROCESSES THAT ARE APPROPRIATE FOR FUTURE MATERIALS AND TECHNOLOGIES -- SUCH AS MICROMACHINING CAPABILITIES. DEVELOPMENT AND IMPLEMENTATION OF ADVANCED MANUFACTURING TECHNOLOGY IS ESSENTIAL TO ACHIEVE REQUIRED EFFICIENCIES.

WE WILL ALSO NEED SKILLED PEOPLE. WITHOUT CONTINUOUS INVESTMENT IN INFRASTRUCTURE, ADVANCED MANUFACTURING TECHNOLOGIES, AND OPERATIONS AT THE PLANTS, WE WILL NOT BE ABLE TO RECRUIT AND RETAIN THE PERSONNEL REQUIRED TO MANAGE AND OPERATE THIS CRITICAL PLANT.

I HAVE A CADRE OF HIGHLY SKILLED AND EXPERTLY TRAINED EMPLOYEES AT FM&T. WE HAVE STEADILY REDUCED THIS WORK FORCE WHILE IMPROVING EFFICIENCIES, ACHIEVING WORLD CLASS SAFETY STATISTICS AND SUPPLYING OVER 50,000 SUBASSEMBLIES, ASSEMBLIES, AND COMPONENTS A YEAR, WITH 99.6 PERCENT ON-TIME DELIVERY. HOWEVER, WE ARE CLOSE TO A CRITICAL DROP-OFF POINT BELOW WHICH FURTHER REDUCTIONS CANNOT BE MADE WITHOUT JEOPARDIZING CAPABILITY, QUALITY, AND RELIABILITY. IN FACT, BECAUSE OF BUDGET REDUCTIONS IN FY1998, WE ARE PLANNING FOR A SIGNIFICANT LAYOFF AT THE END OF THE YEAR. WE HAVE ALREADY SIGNIFICANTLY INCREASED PLANT EFFICIENCIES; HOWEVER, ACHIEVING FURTHER INCREASES IN PLANT EFFICIENCY WILL ONLY BE POSSIBLE NOW BY PHYSICALLY DOWNSIZING FACILITIES AND CONSOLIDATING OUR MANUFACTURING PROCESSES AS PLANNED UNDER THE SSMPEIS.

AS A RESULT OF BUDGET CUTS WHICH LIMIT OUR ABILITY TO PURSUE NEW TECHNOLOGIES AND ACQUIRE NEW EQUIPMENT, WE ARE CONCERNED ABOUT MORALE ISSUES THROUGHOUT OUR PLANT.

I HAVE AN ADDITIONAL CONCERN ABOUT THE PIPELINE OF NEW TALENT. OF THE 3,452 WORKERS IN MY PLANT, 54 ARE UNDER THE AGE OF 30. THE DEPARTMENT'S PRODUCTION PLANTS ARE ESSENTIALLY THE OPERATIONS SIDE OF THE WEAPONS COMPLEX. I KNOW FROM MY EXPERIENCE IN THE BUSINESS WORLD, THAT IT IS ESSENTIAL FOR SURVIVAL THAT WE RECRUIT NEW TALENT AS WELL AS RETAIN TALENTED AND EXPERIENCED PERSONNEL AND MANAGERS. PROSPECTIVE HIRES, ALONG WITH OUR CURRENT EMPLOYEES, SENSE INSTINCTIVELY THAT THE DEPARTMENT HAS NOT PLACED A HIGH PRIORITY ON THE HEALTH OF THE PRODUCTION PLANTS. OUR PLANTS ARE BECOMING SIGNIFICANTLY LESS ATTRACTIVE WORKPLACES OVER TIME. THIS IS A TREND THAT WE CANNOT ALLOW TO CONTINUE IN THE FUTURE.

I WANT TO STRESS THAT ADDRESSING THESE ISSUES IS A MANAGEABLE PROBLEM. FOR EXAMPLE, FULL FUNDING OF APPROXIMATELY $15 MILLION FOR PROCESS DEVELOPMENT AND APPROXIMATELY $10 MILLION IN ANNUAL RECAPITALIZATION WOULD POSITION THE PLANT FOR MAXIMUM EFFECTIVENESS AND EFFICIENCY AS IT IS DOWNSIZED IN THE FUTURE.

WE ARE ALSO WORKING WITH THE DEPARTMENT TO DETERMINE IF FUNDING TO DOWNSIZE THE PLANT CAN BE ACCELERATED TO HELP ACHIEVE PHYSICAL EFFICIENCIES AND REDUCE MORE QUICKLY THE PRESSURES TO CUT MANPOWER TO MEET BUDGET TARGETS. WE ARE WORKING WITH THE DEPARTMENT TO ENSURE THAT THE SCHEDULED WORKLOAD IS FULLY ATTAINABLE AND WE ARE DEVELOPING ADJUSTMENTS AS APPROPRIATE. FINALLY, THE DOE'S STOCKPILE STEWARDSHIP AND MANAGEMENT PLAN (SO CALLED GREEN BOOK) HAS AT ITS CORE A PROGRAM FOR STOCKPILE LIFE EXTENSION; THE PLANTS ARE A VITAL PART OF THIS PROGRAM.

MR. CHAIRMAN, IN CONCLUSION, WE HAVE UNIQUE EXPERIENCE, CORE STRENGTHS, AND HIGHLY TRAINED, DEDICATED AND CAPABLE WORKERS AT OUR PRODUCTION PLANTS. WE VIEW OURSELVES AS PART OF AN IMPORTANT TEAM WITH AN IMPORTANT MISSION. WE HAVE MANAGEMENT AND FUNDING ISSUES THAT MUST BE ADDRESSED AND NOT OVERLOOKED AS THE BROADER FOCUS OF THE DEPARTMENT EVOLVES AND SHIFTS TO MEET NEW CHALLENGES. THESE ISSUES ARE HIGHLY MANAGEABLE IF ADDRESSED NOW IN A TIMELY FASHION.

MR. CHAIRMAN, I LOOK FORWARD TO WORKING WITH YOU TO PROTECT AND FURTHER DEVELOP THE ASSETS WHICH EXIST AT THE PRODUCTION FACILITIES, AND THROUGHOUT THE WEAPONS COMPLEX AS A WHOLE.

THANK YOU AGAIN FOR THE OPPORTUNITY TO APPEAR BEFORE YOU TODAY. I WOULD BE PLEASED TO ANSWER ANY QUESTIONS YOU MAY HAVE.