This hearing of the Subcommittee on Readiness and Management Support will come to order.

The subcommittee meets today to discuss the health of the Department of Defense industrial base and their crucial role in providing readiness to the warfighter.

 We are joined this afternoon by:

• Lt. Gen. Larry Wyche, deputy commanding General of Army Materiel Command;
• Vice Adm. Paul Grosklags, commander of Naval Air Systems Command;
• Vice Adm. Thomas Moore, commander of Naval Sea Systems Command
• Lt. Gen. Michael G. Dana, deputy commandant of Marine Corps Installations and Logistics
• Lt. Gen. Lee K. Levy, commander of Air Force Sustainment Center.

 I thank the witness for agreeing to testify today and for their continued service to this nation. I also thank the ranking member, Sen. Kaine, for his leadership and partnership on this issue—together we are focused on our defense industrial base…shipyards, depots, arsenals and ammunition plants…and what they contribute to our readiness and our national security.

 Just last month, this subcommittee received testimony from the service vice chiefs on the current readiness of our armed forces. We heard details about how each of our services is not ready to respond to the next global contingency. It is obvious that we need more personnel, increased training, and modernized equipment, but we must also maintain the equipment we currently have.

 To do that, we must remember that our organic depots, shipyards, arsenals and ammunition plants are not just another tool in the tool belt. They are critical national security assets.

 In his written statement, Lt. Gen. Wyche describes the organic industrial base as our national security insurance policy. Our organic industrial base and its civilian workforce put weapon systems into the hands of our warfighters and enable them to deter our enemies and win wars. The services have testified over the last few years that the current weapon systems are some of the oldest in the history of our military, but just because they are old does not mean they are obsolete.

 Despite increased maintenance required for our aging weapons systems, our depots have been able to decrease days in depot by increasing efficiencies and streamlining processes. Sustainment costs account for greater than 70 percent of the life-cycle costs of a weapon system, so any efficiencies gained can decrease costs and reduce the burden on the taxpayer. These costs, however, must be factored into the larger acquisition strategy from the inception of the program, not at the start of production, which is why we must increase collaboration between the Department, the individual services, and both organic and private industry. 

In recent weeks, the department, as well as the military services rolled out their FY17 request for additional appropriations. I am concerned that, in some respects, it does not do enough to address the sustainment backlogs that are directly affecting readiness.

We must continue to invest in our depots, shipyards, arsenals and ammunition plants to include working and partnering with industry. Thank you again for our witnesses appearing today.