NOT FOR PUBLICATION UNTIL RELEASED BY THE HOUSE ARMED SERVICES COMMITTEE STATEMENT OF ADMIRAL JOHN M RICHARDSON CHIEF OF NAVAL OPERATIONS BEFORE THE HOUSE ARMED SERVICES COMMITTEE ON FISCAL YEAR 2020 NAVY BUDGET 10 APRIL 2019 NOT FOR PUBLICATION UNTIL RELEASED BY THE HOUSE ARMED SERVICES COMMITTEE Chairman Smith Ranking Member Thornberry and distinguished members of the committee thank you for the opportunity to testify today on the Navy’s Fiscal Year 2020 budget To place this budget in its appropriate tactical operational and strategic context we must understand what America stands for in the world so we don’t forget it or worse take it for granted the U S Navy’s unique and historic connection to those core tenets the challenges to those principles and our national interests by competitors like China and Russia—and our Navy’s response and the investments made in the President’s FY-20 Budget to deliver operate sustain and maintain a Navy that is bigger better and more ready to sail anywhere and do anything in defense of our country We Are a Maritime Nation—We Rely on Freedom of the Seas Our first President George Washington best captured the value a Navy provides to the American people when he said “It follows then as certain as that night succeeds the day that without a decisive naval force we can do nothing definitive and with it everything honorable and glorious ” Over 600 000 active and reserve Sailors and Navy civilians—alongside our partners in the Congress academia industry and around the world—devote much of their lives to designing producing and operating a “decisive” naval force Our decisive naval force operates around the world defends our national interests stands ready to fight if called upon and de-escalates tensions on our terms The President’s FY-20 Budget delivers and sustains this decisive force and the investments contained therein will keep our Navy on a true course and making best speed to as our oath declares “support and defend the Constitution of the United States and the country whose course it directs ” Our founding values as well as our livelihoods and collective national security are tied to the world’s oceans The seas are a prime facilitator of our prosperity as a people But prosperity does not and cannot exist in a vacuum It is the result of secure and orderly conditions that enable the flow of goods and services access to markets via open oceans and critical waterways and the ability to move unimpeded across the seas 1 The seas present both challenges and opportunities—and the rapid changes in the maritime environment are stark and profound More than 90 percent of all international trade travels by sea—60 percent of that by value sails in containerized vessels In recent years approximately 735 million containers were shipped worldwide annually If placed end-to-end those containers would encircle the globe at the Equator more than 11 times Beyond the numbers on trade the global economy’s reliance on the seas for resources—rare earth minerals for advanced technology energy or aquaculture—increase their economic and strategic importance The seabed also plays host to 287 undersea fiber-optic cables through which 99 percent of global internet traffic passes fueling the modern economy Each of these developments serve to make the seas even more congested—and more vital 2 Challenges to the United States and the International Order Despite the United States’ persistent work over two centuries to keep the seas open to every nation and every mariner there are those who seek to upend this free and open order and stem the tide that has steadily lifted all boats As discussed in the 2018 National Defense Strategy NDS China and Russia are deploying all elements of their national power to achieve their global ambitions China and Russia seek to accumulate power at America’s expense and may imperil the diplomatic economic and military bonds that link the United States to its allies and partners And these actions are not only directed at the United States China and Russia are working to redefine the norms of the entire international system on terms more favorable to themselves China and Russia are determined to replace the current free and open world order with an insular system They are attempting to impose unilateral rules re-draw territorial boundaries and redefine exclusive economic zones so they can regulate who comes and who goes who sails through and who sails around These countries’ actions are undermining international security This behavior breeds distrust and harms our most vital national interests 3 China’s Belt and Road Initiative in particular is blending diplomatic economic military and social elements of its national power in an attempt to create its own globally decisive naval force China’s modus operandi preys off nations’ financial vulnerabilities They contract to build commercial ports promise to upgrade domestic facilities and invest in national infrastructure projects Slowly as the belt tightens these commercial ports transition to dual uses doubling as military bases that dot strategic waterways Then the belt is cinched as China leverages debt to gain control and access In the final analysis these unfavorable deals strangle a nation’s sovereignty—like an anaconda enwrapping its next meal Scenes like this are expanding westward from China through Sri Lanka Pakistan Djibouti and now to our NATO treaty allies Greece and Italy The U S Navy Responding to Challenges Around the World The U S Navy is responding to this changing security dynamic by playing to our strengths deploying all around the globe regularly enforcing common principles strengthening the conditions that have enabled mutual prosperity and protecting our national interests As you read these words more than 60 000 Sailors are deployed on board nearly 100 ships and 4 submarines to enforce a free and open order that enables this unprecedented flow of goods and services As the National Defense Strategy makes clear the U S Navy will compete aggressively to shape our modern maritime environment ensuring that order and security continue to underpin our prosperity We do so by harnessing the myriad forces at play—the increasing use of the maritime domain the rise of global information systems and the role of data-driven decision-making and the increasing rate of technological creation and adoption We remain committed to challenging excessive maritime claims strengthening relationships with allies and partners and upholding time-tested values How can we maintain this worldwide posture and compete given these strategic realities How must we invest in order to build sustain organize and strengthen ourselves so that we can continue harnessing the global maneuver power inherent in naval forces The answers lie in the President’s FY-20 Budget PB-20 a submission firmly rooted in addressing Great Power Competition and moving boldly and swiftly into the future Importantly the single most effective way to maintain the strategic momentum started in FY17 is to enact the President’s FY-20 Budget prior to the start of the fiscal year This funding 5 will help us fulfill our responsibilities in the National Defense Strategy by building the Navy the Nation Needs a balanced force that will increase America’s naval power and safeguard our economic diplomatic and military interests around the world A Bigger Better More Ready Navy PB-20 seeks $160 billion for the U S Navy For perspective this request represents approximately three percent of the federal budget According to the Congressional Budget Office this investment represents approximately half of the amount currently expended on servicing the national debt and one-third of current expenditures on Medicaid This budget request preserves our industrial base and establishes an aggressive forwardlooking competitive posture Our industrial partners are counting on us for consistent and continuous commitments Absent this behavior we may perpetuate rather than end the “boom-and-bust” cycles we have experienced in the past Coincident with this aim to steadily grow the force and preserve our industrial base is the responsibility to “own” the additional inventory when it arrives PB-20 embraces future capabilities while judiciously stewarding our current force The guiding principle of our budget request is to balance naval power across its many dimensions Naval power is not a choice between increased capacity or better capability—it is a combination of both Naval power is not a choice between readiness and modernization—it requires a balance of both Naval power is not a choice between more complex stand-alone technologies or networked systems—it is achieved through both The talent to operate and sustain a larger and more lethal force is not a choice between more people or better training—it must draw from both Bigger An ongoing force structure assessment will conclude by the end of 2019 While data-driven analysis may ultimately change the details of our long-term fleet architecture all force structure analyses agree in one respect we must build a bigger Navy 6 To increase America’s naval power we will build more platforms like ships submarines and aircraft and expand our special operations forces In 2018 Congress made a 355-ship Navy the law of the land and this increased capacity will strengthen our ability to prevail in any warfighting contingencies meet demand signals from Combatant Commanders expand global influence and support American prosperity by safeguarding access to critical markets waterways and chokepoints The FY-20 budget requests nearly $24 billion in ship construction accounts to fund one nuclear-powered aircraft carrier three fast attack submarines three large surface combatants one small surface combatant two combat logistics force ships and two auxiliary support ships Expanded across the Future Years Defense Program FYDP PB-20 funds construction of 55 battle force ships to achieve a 301-ship Navy in FY-20 and a 314-ship Navy in FY-24 Along with class-wide service life extensions this puts us on pace to reach a 355-ship Navy in FY-34 approximately 20 years sooner than PB-19 The Annual Long Range Plan for Construction of Naval Vessels also referred to as the “Thirty Year Shipbuilding Plan” accompanies this budget request There is no more existential imperative than deterring a nuclear attack on the homeland PB20 fully funds the COLUMBIA-class ballistic missile submarine program to do just that Fully funding this request now will ensure that the lead ship’s construction commences on time in FY-21 delivers in 2028 and conducts its first alert patrol in CY 2030 The COLUMBIA-class will guarantee continuity of the most survivable leg of the strategic deterrent triad into the 2080s This budget also procures 373 fixed and rotary wing aircraft including 84 Block 3 F A-18E F Super Hornets 226 unmanned systems and over 17 000 weapons and munitions across the FYDP The recently approved block buy of two GERALD R FORD-class aircraft carriers CVNs 80 and 81 saves American taxpayers approximately $4 billion It also maintains our trajectory towards the requirement of 12 more survivable and powerful aircraft carriers and it gives our industrial partners much-needed predictability It also represents an investment in future technologies that solidifies the nuclear-powered aircraft carrier as a centerpiece of national defense through the rest of the century Finally PB-20 funds an additional 5 100 Sailors in FY-20 and 18 600 over the FYDP on top of FY-19 end strength levels to recruit man maintain operate and fight these added ships submarines and aircraft Filling gapped billets at sea remains our top manning priority and we are committed to operating safely effectively and sustainably over time as the battle force grows Better To increase America’s naval power we will build a better fleet—one that is more capable agile networked and resilient across all of our naval platforms This means fielding state-ofthe-art systems and continually modernizing legacy equipment In addition to other modernization efforts the FY-20 budget includes $18 billion for research and development— an increase of $1 4 billion over FY-19 enacted levels 7 For example PB-20 includes $4 billion across the FYDP to modernize 19 guided missile destroyers This includes critical upgrades to AEGIS Baseline 9 enabling them to simultaneously perform Integrated Air and Missile Defense IAMD and Ballistic Missile Defense BMD operations As well improvements to Naval Integrated Fire Control Counter Air NIFC-CA will allow networked ships to share identification targeting and fire control data PB-20 funds 160 F A-18E F Super Hornet Service Life Modifications SLM across the FYDP equipping these aircraft with more lethality at greater ranges improved signatures and advanced networks The budget also increases investments in long-range offensive ship- sub- and air-launched weapon systems including Tomahawk Land Attack and Maritime Strike missile Long-Range Anti-Ship Missile LRASM Standard Missile SM 6 Joint Standoff Weapon Extended Range JSOW-ER Harpoon Block II as well as investments in Conventional Prompt Strike hypersonics The budget augments investments for acoustic superiority modernization by requesting $93 million in FY-20 $633 million across the FYDP to improve submarine quieting and sensor performance To deliver capability faster we are also leveraging accelerated acquisition and rapid prototyping by investing $1 3 billion in FY-20 $4 billion across the FYDP for the Navy Laser family of systems SM-2 6 weapons MQ-25 Stingray carrier-based unmanned aerial system and Unmanned Underwater Vehicles 8 The FY-20 budget builds on the progress made in FY-19 by pursuing near-term Naval Tactical Grid development and investing $50 million in FY-20 $236 million across the FYDP for the newly-established Digital Warfare Office to design and implement a comprehensive operational architecture to support emerging Distributed Maritime Operations concepts The Navy will also invest $440 million in FY-20 and more than $2 billion across the FYDP to fund Fleet and industrial base cyber security and hardening of ship hull mechanical and electrical systems among others As these investments indicate the Navy is focused on controlling the high-end fight Nuclearpowered aircraft carriers are and will continue to be central to this effort FORD was designed to deliver more capability for today’s airwing and to provide growth opportunity for tomorrow’s airwing—more lethal systems and increased power generation FORD is also proving more cost effective with a 30 percent higher sortie rate with a 20 percent smaller crew than her NIMITZ-class predecessors This translates into $4B savings over the life of the FORD class when compared to NIMITZ class in other words more naval power for less cost FORD is innovation on a grand scale offering a host of new technologies that will greatly improve the combat power of strike groups As with naval innovations of the past we didn’t get everything right on the first try We have learned with each test and most of the new systems are now operating And we will continue to learn iterate and improve the second FORD-class ship is being built with 18 percent fewer man hours Despite this aggressive approach to adopt new technologies FORD was delivered with less lead-ship cost growth than several other ship classes FORD and her successors will set a new standard for afloat performance and combat power projection well into the second half of the century We are also making tough calls about the capabilities we need to tackle future challenges PB-20 removes funding for USS HARRY S TRUMAN’s CVN 75 Refueling and Complex Overhaul RCOH —$3 4 billion over the FYDP We are applying the funds from the RCOH decision to field cost-imposing advanced technologies faster In parallel we continue to validate this decision through a rigorous program of studies wargames and experimentation to analytically validate the best way forward We remain postured to respond to what our studies show us and to adjust pace in-stride including reversing the CVN 75 decision if needed Ready To increase America’s naval power we will build a ready fleet This means steaming days to exercise at sea flying hours to train in the air sufficient quantities of ammunition and spares and the resources to conduct emergent and planned maintenance—not only for today but also for the future as the Fleet grows in size And it’s not just about buying more parts PB-20 includes $23 million in FY-20 $66 million across the FYDP to research and develop additive manufacturing AM capabilities Among other AM goals—such as expanding this capability at sea to additional ships and beginning to network AM across the enterprise—we intend to produce 1 000 unique end-use components for Fleet installation and 9 operation by the end of 2019 Readiness—both materiel and training proficiency—transforms our Navy’s potential power into actual power The knowledge and efficiency gained from the Department of Defense-wide audit will ensure that we do so as effectively as possible The FY-20 budget continues the readiness and wholeness commitments we made in FY-17 FY-18 and FY-19 by funding ship and aviation readiness and enabler accounts The FY-20 budget increases maritime and aviation spares funding compared to FY-19 Additionally the FY-20 budget stabilizes and incentivizes the industrial base by funding 62 ship availabilities in public and private shipyards shifting two attack submarine availabilities to private yards and infusing $546 million in FY-20 for naval shipyard infrastructure optimization Finally the budget includes capital investments of 12 percent in public shipyard depot facilities and 10 percent in Fleet Readiness Centers exceeding the six percent legislative requirement and underscoring our commitment to increase our capacity to maintain and modernize our fleet These investments will help on-time maintenance execution—aircraft and ship availabilities— which in turn gives our Sailors the time they need at sea to build proficiency and confidence not simply to operate safely but to prevail at the high-end of maritime conflict Recognizing the inherent link between readiness and lethality we continue to modernize our logistics capabilities to better refuel rearm resupply revive and repair operational forces At sea we are prioritizing the recapitalization of auxiliaries and sealift capabilities to sustain the Fleet’s enduring global posture and support mobility of the Joint Force PB-20 includes an 10 initial $8 million research and development investment in the Common Hull Auxiliary Multimission Platform CHAMP for concept design Ashore we recognize that readiness is an enabler for force projection in addition to investing in our shipyards PB-20 increases investment in facilities sustainment restoration and modernization FSRM to $3 1 billion from 80 to 87 percent of the sustainment requirement Of course ships aircraft and weapons are not by themselves sufficient to respond to today’s complex challenges The readiness of these platforms and systems depends on talented and well-trained Sailors led by commanders of competence and character Our Sailors are the glue that binds our Navy team together This is our Polaris It is also why we established the College of Leadership and Ethics at the U S Naval War College in April 2018 Just as we have done throughout our history we will continue to develop and empower leaders who are driven to build winning teams The FY-20 budget continues our generational transformation of the Navy’s manpower and personnel systems We are investing $235 million in a modern cloud-based personnel and pay system while creating an expanded assignment marketplace and increasing career flexibility For example we are exercising the authorities granted to us in the reform of the Defense Officer Personnel Management Act DOPMA to make better use of investments in training and increase career opportunities and flexibility for our officer corps These initiatives leverage state-of-the art practices to put more control into the hands of our Sailors This 11 includes more transparency regarding their career options The Sailor 2025 suite of programs will make today’s burdensome and time-consuming process for executing orders— from updating pay and benefits to finding new housing and moving household goods—as easy as scanning a Quick Response QR code on a smartphone Not only will this make the frequent relocations associated with military service easier for Sailors and their families it will minimize distractions so they can focus on warfighting And we continue to tackle the recommendations listed in the Comprehensive Review CR and Strategic Readiness Review SRR PB-20 assigns the highest funding priority to CR SRR-related investments—$346 million in FY-20 and $1 1 billion over the FYDP— including construction of new Mariner Skills Training Program centers and simulators and programmatic commitments for the Next Generation Surface Search Radar Additionally we remain committed to assessing our ships and crews understanding the impact of fatigue and other human factors filling personnel gaps for ships on deployment or in sustainment and dedicating time to maintain our forward-deployed Fleet As of February 2019 20 of the 111 recommendations remain to be adjudicated While we are on track to begin implementation of these remaining items by the end of the fiscal year we will continue to analyze the effectiveness of our new programs and iteratively improve them over the FYDP 12 Finally we remain committed to recruiting and retaining diverse shipmates In a time when evolving artificial intelligence and machine learning are factoring into future military capabilities our Sailors must bring creativity innovation and context to tactical and strategic decisions This potent combination will make us more competitive and operationally effective And it is the diversity of their backgrounds and viewpoints that will catalyze the speed and quality of decisions we need to outperform our adversaries Continuing Our Budgetary Momentum These realities highlight the importance of partnerships and a recognition that together we can do so much more This past year’s on-time budget put our Navy on a steady course making best speed Prior to last year when the FY-19 National Defense Authorization Act NDAA was enacted on August 13 a defense authorization bill had not been enacted prior to the start of the fiscal year since FY-97 the last time a defense appropriation was enacted by October 1 was FY-09 This meant nine years of continuing resolutions that averaged onethird of the fiscal year This uncertain financial footing resulted in fluctuating toplines and interruptions to government operations and services The Navy looks forward to working with the 116th Congress to continue the momentum developed in FY-19 Stable and predictable funding solidifies strategic planning incentivizes our commercial partners strengthens our industrial base safeguards our Sailors and bolsters the interests of your constituents And most importantly stable and predictable funding mitigates operational risk by maximizing our planning and execution time With timely stable and predictable investments the U S Navy will be bigger better and more ready to work every day—in every ocean—to set the conditions that allow Americans and all the citizens of the world to flourish and prosper 13 The Navy’s Connection to American Principles and Power The Navy has always maintained a strong connection to the flourishing and prosperity of the American people President Washington’s phrase—“everything honorable and glorious”— hearkens to American values that are derived from the inalienable rights outlined in the Declaration of Independence “That among these are Life Liberty and the Pursuit of Happiness ” This last value has commonly been understood as the right to materially improve our circumstances The Navy also maintains a deep and historic connection to America’s economic strength the engine that makes our country a global power The Navy was founded to protect vital sea lanes like Gibraltar and combat piracy off the North African coast—a mission to safeguard free movement of trade and free access to markets that continues in earnest today “Honorable and glorious” also characterizes the mission of the United States Navy and the selfless service of more than 600 000 Sailors and civilians and their families The U S Navy is a definitive military force in world events but the Navy also connects with every other element of our national power The Navy is the face of the nation and often the first point of 14 contact between the United States and other peoples U S Navy ships have shuttled American diplomats across all seven seas think of the paddle-wheeled steam frigate USS MISSISSIPPI transporting Commodore Matthew Perry to Japan in the early 1850s the Great White Fleet circumnavigating the globe at the turn of the Twentieth Century and the USS QUINCY CA 71 carrying President Franklin D Roosevelt to Malta in 1945 And our ships have hosted international events of the highest consequence that have shaped the global security environment such as the Japanese surrender aboard the USS MISSOURI BB 63 anchored in Tokyo Bay which formally ended the Second World War The Navy brings sovereign United States territory to the shores of other nations fostering connections to extend American assistance to those who would be our friends and demonstrating resolve to those who may oppose us And ingrained in every mariner is the notion that we will never sail past another mariner in distress We will continue to provide humanitarian assistance and disaster relief to our fellow citizens and neighbors wherever and whenever they are in need Conclusion This hearing comes at a critical time to both our Navy and our nation The challenges we face are varied and are growing more dynamic by the day Let there be no doubt America is a maritime nation and a maritime power Our way of life and our economic prosperity have always been linked to the sea For 243 years—through war and peace uncertainty and stability turmoil and prosperity—the United States Navy has validated founding father Thomas Paine’s maxim that “a Navy when finished is worth more than it cost ” In the competitive environment we face now and in the future we must increase naval power in a balanced approach to meet our national strategic goals The President’s FY-20 Budget ensures that the Navy and the nation can continue to do everything honorable and glorious as Washington intended I am grateful to this committee and to your colleagues in the Congress for starting this important work and we look forward to sailing alongside you to build and deliver the Navy the Nation Needs 15