Transcripts For CSPAN3 U.S. Navy Secretary Nominee Testifies At Confirmation Hearing 20170721

I would like to acknowledge the tragedy in mississippi yesterday. The 16 Service Members who lost their lives in a marine corp kc130 from cheery point, north carolina, reminds us that these brave men and women put themselves in harms way at home and abroad in service to our nation. Were all keeping their families in our at theirs and prayers. Mr. Spencer, we thank you for joining us this morning. We have also welcome your family and friends who are with us today. As is our tradition at the beginning of your testimony, we invite you to introduce those joining you. It is standard for this committee to ask questions in order to exercise its jar sight responsibilities. Its important that committees of the congress be able to receive testimony, briefings, and other communications of information. So can i ask you the standard questions we ask every nominee before this committee. Do you adhere to applicable laws and registrations governing conflicts of interest . I have. Will you ensure that your staff complies with deadlines established for requested communications, including questions for the record and hearings. I will. Will you cooperate with providing witnesses and briefings in response to congressional request . I will. Will they be protected . They will. You agree to affirm and testify upon request before this committee . I do. Do you agree to provide documents, including copies of electronic forms of communication in a timely manner when requested by a duly constituted committee . I do. Have you assumed any duties or undertaken any actions which would appear to presume the outcome of the confirmation process . I have not. Thank you. The next secretary of the navy will assume this role during a time of immense importance for u. S. Sea power. I note the presence of one of our most distinguished members and dear friend of every member of the committee, republican and democrat, and perhaps it would be more convenient for us to hear from senator warner before i proceed with my Opening Statement. Senator warner, you are recognized. Thank you, mr. Chairman. Senator reed, and members of the committee, particularly mr. Nelson and mr. Bricker. It is a very humbling experience for me to appear here on behalf of this distinguished nominee. If i ever reflect on this great committee, i just think about the mavrls traditions established for the entirety of the senate throughout its long existence. And i say to the new members of the committee, i wish you well. Im confident as you pursue your careers in life, that you will always look back on your membership on this committee as a very special privilege. After all, the function of this committee is to provide care for the men and women of the armed forces of the United States together with their families. Now, i know this chairman is thankful for me to be brief, and i will be. On my left is mr. Spencer, his lovely wife. And they will be a magnificent team, in my humble judgment, to serve america and the people of the marine corp. Mrs. Spencer has a very interesting and broad career. Hes quite adept and knowledgeable on all aspects of finance. Not only domestically here in our country but globally. Together with his other achievements in life, youve got all the papers before you, may i point out that he served on the department of defense business board for some six years. During his interest in National Security for those years. And then he was the chairman of the marine corp heritage foundation. So hes kept all of his prioriti priorities. I would like to say that he achieved something that i always wanted to achieve. Our distinguished chairman got the navy wings of gold, and he got the marine corp wings of gold. Spent one whole tour as a pilot of a helicopter. He did his wing time, im sure, before he got there. He loved the marine corp, and he loved the military life, and he looked forward to that day when he might be able to return and become more active. And this is one of the most interesting and wonderful positions in our entire establishment of the federal government, secretary of the navy. So i would like to say that im not a stranger to the proceedings were undertaking, but there is an aspect of this particular confirmation proceedings that i had never encountered before. On his own initiative, he reached out and counselled with ten secretaries of navy to ask of them what they thought of challenges of today, how best he might be able to fulfill those challeng challenges, and we have us today will ball was one of them. John dalton, richard danzic, gordon england, john okeefe, jim webb, don winter, and yours truly. I want to be very careful in my summary, having talked to all of them about this moment write sort of represent the gang. We do not wish to be p presumptuo presumptuous. We believe this fine man and his lovely wife are most worthy of being here today and being given the opportunity to appear before you as you perform your constitutional duty of advise and consent. So with that, i conclude my remarks. Semper phi my good friend. Youre on your own. Senator warner, you bring unique credentials to this body, having served as both secretary of the navy and chairman of this committee, and the members on both sides6 of the aisle take words with the utmost seriousness. We thank you for your return. Thank you for your leadership. Thank you for the many years that you spent with me, helping me in life. Responsibilities as a member of this committee. We thank you, sir. I thank you, mr. Chairman, and for our long personal friendship. And i recall so well when i became under secretary of the navy, prior to being secretary, how your father, then commander in chief of all forces in the pacific, together with your extraordinary mother reached out to help me as a very young man as i took on these responsibilities in 1969, many years ago. Thank you very much. Thank you, senator warner. The next secretary of the navy will assume this role during a time of immense importance for u. S. Sea power, some of the greatest challenges of the future will be in the maritime domain, and its critical that our navy and marine corp are ready to fight. The president has brought responsibility for all affairs of the navy, including the manning and maintaining of naval forces. As we heard last movanth, the forces face shortfalls and the need to grow and modernize. We look forward to knowing how you would address the challenges with more than 15 billion in readiness shortfalls and unfunded priorities. Plans to achieve what leaders say we need and delivering acquisitions ac programs and capability. The sad truth is in recent years, we have not given our sailors and marines what they need to succeed. As weve asked them, we have failed in our responsibility to provide them with the necessary resources, training, and equipment. This puts their lives in greater danger every day, and we can waste no time in reversing the course. The readiness, building capacity, and modernizing to regain the technical advantage of our naval forces but require a clear vision and strong leadership from the next navy secretary. Mr. Spencer, i look forward to discussing your plans to approach these demands if confirmed. This committee is grateful for your Prior Service as well as your willingness to serve again. As part of the department of defense business board, youve demonstrated your dedication to this nation. Im confidence your experience leading large complex operations and businesses has repaired you to take on this role, if you are confirmed. In closing, this committee honors the sacrifice of all of our sailors and marines. Mr. Spencer, we look forward to hearing your testimony about how you plan to lead the department of the navy during this crucial time. Thank you very much, mr. Chairman. Let me join you in welcoming mr. Spencer to the committee. Let me thank your family for the support they provide you. Senator warner, your example continues to inspire this committee. Well get there eventually, to your level, but were trying. Let me assure you. I, too, want to join the chairman in recommending and paying tribute to Service Members and their families. We are saddened by the loss of life during the recent incident on the uss fitzgerald and last evening with the crashing of the kc130 marine corp tanker. This serves as a reminder our Service Member go through daily. Mr. Spencer, if youre confirmed with this position, you will be faced with a number of Critical Issues that confront the department of the navy. The navy and marine corp have had to deal with deployment and high operating tempos. The next sector is managing improvements in the force and the structure will be critical. It seems to me the secretary of the navy should focus on readiness of the existing forces. For example, it seems very short sided to me for the navy to allow the diving certifications to expire and then have to tie that boat to a pier for more than a year when commanders have a demand. Theres increased need for platforms like the boise. While readiness is very important, there are other challenges that face our navy. For many years, weve expressed the concern for the fleet and the size of ships were building each year. The chief Naval Operations released an assessment. Numbers alone are not enough. This past may, the cno released the titles the future of the navy in which he said more platforms are necessary but not sufficient. The navy must incorporate new ting and concepts. I echo the statement, but you may face this obstacle. Years ago the chain of command was changed. The service secretary, however, plays a Critical Role in the budget and requirement decisions that drive the program. As procurement funding begins, the secretary of the navy will play an integral role in guiding this program. The challenges that the navy faces are furs exacerbated by the constraints impose bed i the budget control act. This will limit the navys ability to confront the threats to our country. I look forward to hearing your testimony on how we can modernize our fleet and improve our course efficiency. Mr. Chairman, thank you for calling this hearing. I look forward to supporting this nomination and working with mr. Spencer in the future. Mr. Spencer, welcome. As i mentioned earlier, if you would like to introduce members of your family who are here today, please proceed so we can interrogate you as quickly as possible. Thank you, senator. First i would like to thank senator warner for his eloquent introduction and his unending service to our country. I would also like to thank secretary mad mattis. I would like to introduce polly and my children who are here with me today. I would like to reflect for a minute the navymarine corp team was struck last night with a tragedy. 15 marines, one sailor perished. I would like us to keep their families in our thoughts and prayers as we conduct our business today. Thank you, mr. Chairman, members of this committee. 36 years ago to the month, i was driving in california. My trustee steed at that time was a beige 1968vw bug that carried me out of the gates for the last times aended a tour with squadron 161. Headed to the Pacific Coast highway, i could tell you that the thought of me sitting before this group being considered as secretary of the navy was not to be found even in the most remote parts of my mind. However, during those 36 years, i was educated in financial and operational management, increasing as scopes aprogressed through my career. The leadership skills developed in the marine corp continued to grow. I was respectful of industrial science. The journey has, i believe, provided me with the knowledge and the skill set to tackle the issues at hand. It truly is a great honor for me to appear before you to seek the confirmation as secretary of the navy. The honor to be here today is magnified by the current state of play today which is nothing less than a perfect storm. Weve been at war for the past 16 years with the operational tempo of the various conflicts in which we are engaged, denying us the needed time and resources for modernization and maintenance. Add to that the commanders who are facing continually,nn evolv threats the secretariat and the senators and members of congress that is grounded in transparency and accountability. Thank you. And i look forward to your questions. Thank you, mr. Spencer. I was just on a trip with several of my colleagues, senator warren, senator purdue, senator graham, senator whi whitehouse. The fourth of july n an outsi kabul and outside f kabul. There were a number of events that we do with them for fourth of july. We do a town hall meeting with a large number of men and women who are in uniform. Senator graham, as happens once every decade, asked an astute question. He asked how many in the room were there for more than the first time in afghanistan. The majority raised their hand. He said how many have been here more than twice . The majority raised their hands. He said, how many have been here three times . A significant number raised their hands. In other words, to me it was something that was a graphic demonstration of the incredible burden that our active duty military has been bearing over the last 15 or 16 years. Theyre brave. Theyre proud. Theyre the best, maybe, weve had in a long, long time. But theyre not fully equipped, and theyre not fully trained, and theyre not given the authority and responsibility that they need in order to win this conflict. The fact is, in afghanistan, were not winning. Were not winning. No less than our military commander in afghanistan will tell you that as a fact. That has to be turned around. We cannot ask these young men and women to keep going over there with a strategy that in order to defend. They have to have a mission from somebody in the white house on the National Security council staff. Im exaggerating a bit, but the fact is that if you ask any of these young men and women who have been there and there and there, they will tell you that they can win this fight but theyve got to have both the equipment and the authority to do so. Its not that theyre not well led. They are. Its not that theyre not capable. They are. But it is a dont lose strategy, which is epitomized by the former president s speech at west point where he said were going to surge and were going to increase the number of troops there, and were going to win. And, by the way, were leaving on a certain date. Youre in baghdad and you hear that, its obvious. Theres two Nuclear Submarines that have been sitting at the pier for over a year because of lack of spare parts. 60 of our f16s are grounded. The list goes on and on and on and on. Its got to do with the budget control act, one of the greatest acts thats ever enacted by the congress of the United States. How serious do you think the problem is, and what do you think we need to do . Senator, i believe its probably one of the most serious issues that were facing right now for National Security. The budget control act has wreaked havoc with our readiness, the impact on the lives of our sailors and marines. Doing the office calls that ive had with you all, i find great comfort and excitement in the fact that everyone is leaning in on this issue. Theres a lot of heavy lifting that has to be done. Theres the a lot of cheese moving that has to be done. We have to streamline processes and address capabilities. I believe that is number one on the issue. If you look at my priorities, they are people, capabilities, and process. To address these and provide apply the resources that we have for the down payment on readiness and move forward into building out the fleet. Well, on your third one, the process, probably the greatest source of frustration to members of this committee on both sides is the continued cost overruns associated with acquisition. A few years ago, in 2013, i asked the former chief of operations who was responsible for the 2 billion overrun cost and he said he didnt know. I ask the former chief of staff about the overruns. He didnt think anyone had been fired. What . What are we going to do about this now . Two years in a row now weve held people accountability. Weve taken a number of measures to hold people responsible. How is it we reached a point where you can have a 2 billion cost overrun on an Aircraft Carrier, one ship. One ship. 2 billion cost overrun, and no one is responsible . Senator, my career has been steep in accountability. I can tell you the accountability starts right here. The way we address this is through Behavioral Management. You reward positive events and you have other tools at your disposal to take care of people or projects that are not performing. And you make this very transparent. Im going to be coming before you all asking for resources, but i also have to have my deck clean to make sure those resources and the treasures of the american taxpayer are put forth in a fiduciarily prudent manner. Do you know of anyone who has been fired from their job because of cost overruns . Not yet, senator. Senator reed . Thank you very much, mr. Chairman. Thank you, mr. Spencer, again, for your service already and your service to the navy. You spoke about the critical nature of the triad and the navy is the leading edge of that with the colombia class program. The top Modernization Priority has been brought up. I assume you feel the same way. Most definitely. And one of the things we want to do is make sure that program stays on schedule and on budget or below budget. Theres been a remarkable job done with the virginia class, keeping them ahead of schedule with each new boat and making sure the budget is there. I know you want that same tradition with colombia. Most definitely. Thank you. As i mentioned before, not only do we need more ships, we need new operational concepts and new technology. I wonder if youve given any thoughts on your discussions with the former secretary or the cno about what areas you see that you could collaborate with the cno on. I have, senator, starting out with the acquisition process itself, i think if you heard what i laid out in my priorities, we now have, i believe, when we did a study at the defense business board, 32 plus layers of people needed to sign off. That did not involver9d major platforms. We have to allow the people who have the education and intelligence to make acquisitions and to face off problems to provide the solutions. And they have to know and be responsible for the outcome and be accountable for it. I think thats one of the biggest steps forward we make right off the bat. Are there any technologies that youre giving your extensive experience. Anything you think could be sort of break the mold and a leap ahead approach . Most definitely, senator. People have asked what do you think about the 355ship navy . I said, it is a great goal to have. I cant tell you what the construct of that would be sitting here today because i think unmanned boats below the wat water, on the watt e and in the air, is something were just beginning to chip away at. Theres another part of the technology, to operate more efficiently. One of the major constraints going back to the age of steam is fuel. Energy efficiency from an operational standpoint is critical. Are you going to continue . Theyve done Amazing Things with alternate fuel. I believe, if confirmed, my responsibilities as the secretary of the navy, is to explore any and all areas to fuel sources. That goes across the board for technologies also. Weve all indicated i dont know what the right word is, a discomfort of the budget control act. I think its reached a point now where our complaints are important, but do you think it would be helpful if the president made a major address to the country and a major proposal of how to resolve this . I believe we all have to come together as a country to address this. It is devastating, what it is doing to us. If you look back at when it was created, it was a bluff card to bring everybody together and all of a sudden the bluff was called and bca was put in place. I look forward to working with all of you and do what we can to educate the voters on whats going on with the bca and how its affecting us. The bully pulpit is one major one. I think we need some direction, some guidance, not just an exhortation to do better, but its a plan to get it done. Agreed. As i said in my comments, i look forward to working with you. Thank you, senator. Whatever happened to the 1968 beige volkswagen . Senator, i wish i had kept it. It would probably be worth more than the car im driving now. You know, one of the things ive been proud of our uniformed is for the first time, at least in my years ive spent here both in the house and senate, theyre talking about the threat thats so real out there. You and i talked by the way, thank you for the time you gave not just me but everyone ive talked to has had a long visit with you. We all know pretty much where youre coming from. I mentioned this to you in my office. The first time that ive seen the uniforms come out and talk about this unprecedented threat that were facing right now and why its a threat and we when we talk about this, we dont have the credibility of someone in uniform. It goes all the way up to the secretary level. Im sure youre going to be talking about that and not shy away from the reality that the level of threat we have, the news reports that north korea successfully tested an icbn, capable of reaching the United States. Coupled with the Nuclear Program now poses an imminent threat to the United States. In one of our hearings, we had general stewart saying going so far as to say its not a matter of if. Its a matter of when. I would hope that you would elaborate as much as some of the rest of them are. Were not going to get the attention. Were all talking about sequestration. Were talking the about the problems that were having. We remember 1964, 52 of the entire budget was defending america. Its been steadily going down since that time. Its going to take a resurgence of people at the top, letting them know times are not the way they used to be. Right now we have mentally deficient individual running the country that is totally unpredictable. Weve had hearing after hearing. And thats the one thing that the top people in the military say. That its totally unpredictable. The subcommittee we had in january, going back to january, the admiral moran said it would take years to pay this down. He wrote our highest priority is to address the fleet. Is there anything you want to say about that now that hasnt already been said in response to the question from my predecessors . Well, senator, i will tell you that shying away from issues at hand is not something i do well. If i am confirmed, i truly believe the whole focus of my work would be the pointed end of the spear. Were going to stand up and make sure not only working you all here in this chamber but going out into america and letting americans know what the real issue is. Okay. I would like to ask you the question on shift guards and depos. The navys recent aviation Readiness Challenges have been well documented. As the chairman said, we have 62 of our f18s that are unavailable due to maintenance problems. How do we solve this . Were looking into the future, and were looking right now at a problem thats there today. Do you have any ideas . Also, i want to mention the whole idea of maintaining an organic capability remember when i was first elected . We talked about arbitrary, 50 50. I thought surely we can do better, but, no. Were at 50 50. I think its worked pretty well. What do you think about our depos . Its a balancing act, i believe, that we have to address. When it comes to industrial capability, i can separate aviation and shipbuilding. I will address shipbuilding first where we have lesser numbers of providers. I dont say we glad hand people at all, but industrial science says that the most efficient way to produce is to have a clear line of sight to resources. In this chamber, i believe we can address that. We have to work outside the chamber, i think, to work with some of our providers to make sure theyre providing us the best longterm sustainable relationship we can have to deliver equipment in the most cost effective, quick manner that we can. And lastly, i would just say that you addressed the 355ship issue. Im sure youre giving some thought to what would be the appropriate personnel industry for a fleet of 355. Looking into the future, i would assume you would be starting to address that now while were addressing the great threat that currently faces us. Yes, senator. If we take the full gamut of whats available to us to tackle the 355ship goal, we should be thinking outside of the box. We should be thinking about bringing things out of the Ready Reserve and ways to construct better, faster, cheap it. Well be looking at a fridayt down the road. There will be some numbers that have to be adjusted Going Forward. Sure. Im looking forward to working with you. Thank you, senator. Thank you, mr. Chairman. Mr. Spencer, welcome to the committee. I think you will be pleased to know an amendment was known as the king cotton amendment that calls for the unconditional repeal of the budget control act. So this committee is on record and i think in following up on senator reeds questions, it would be very helpful if you could in your capacity as secretary, assuming youre confirmed, to work with the administration to impress upon them the importance of this issue and the really Critical Role it is playing in undermining the readiness of our forces. I commend that to you as a suggestion. You use a term disruptive technology, and later on you mentioned in your work on the business of department of defense board, that there were 32 layers of the process, how do you correlate that having to go through 32 layers of approval . It dies early, probably on layer two. So you have to address, as i call it, the Behavioral Management of how were going to think and act in our actions. If, in fact, you provide people the latitude to make decisions and the span of control actually expands and hierarchy contracts. In following up on the chairmans questions and his concern about this issue, i would urge you to get together with your colleagues and step back and really look at the acquisition process in a fresh way, given the imperative of technological information in a speedy way and think about how do we get on a war footing when we were making destroyers, one every two weeks and airplanes, one every 15 minutes, as we were during world war ii. How do we get a sense of urgency into this process . I think you would be a great person to lead that, given your experience. Senator, my analogy ive been using in talks prior to this meeting is that were looking at october of 1957, and sputnik has just flown over our head. The production gaps are shrinking compared to our one on one competitors. We need to get a sense of urgency, get on the forward foot and use all Resources Available to us. Thats what make this is job exciting, in my eyes. And president kennedy saying we need to have goals and this is what were going to achieve. A different line of question. Do you have any idea that retention rate in the navy, what our loss rate is of these highly trained sailors and marines . I dont know the exact number, but i know its a concern. It seems to me that might be an area of rich usefulness to investigate because if we can retain someone rather than recruiting and training new people, that would be saving taxpayer dollar, and it would also be retaining the expertise that we need. I give that to you as an area of focus. As i stated in my Opening Statement, the Human Capital segment of our budget is the most expensive and the most valuable. We have to work and extract the best practices and how we can keep people and make navy and every pilot we can retain is one we dont have to spend a Million Dollars to train. As weve had multiple hearings before this committee on the f35, on other programs, one of the things that comes through is trying to build things before theyre fully designed and before the design is mature and tested. We just proved a 15ship multiyear for the ddg flight three, which the navy wants. We want. Everybody wants. The question is is that design fully mature . Not one has yet been built. I hope thats an area that you will look at in your work. Representing the state that builds these ships, want them built as soon as possible, but i also dont want to repeat the mistake weve seen with the ford and the f35. Senator, on behalf of the navy, i would like to thank your efforts, senator collins efforts, everyones efforts in this building. If you would allow me the time to spool up and get up to speed on the direct issue at hand, i look forward to coming back to you with a granular answer. Thank you very much. Thank you. Thank you, mr. Chair. Thank you, mr. Spencer for your system. I would like to start with asking you yes or no questions. Do you commit to combatting Sexual Assault and retaliation in the navy and the marine corp . Most definitely. Will you provide me with advance notice to changes to the gender integration policy be considered . I will. Do you commit to holding an unbiassed and transparent approach through the acquisition process . I do. Thank you. I appreciate the time that you took some time last month to sit down and visit with me about the needs of the navy and the marine corp. One thing i was very encouraged about was the fact that you said in order to move the needle, were going to have to perspire a little bit. I dont want to speak for other members in congress, but i will say that i think here on this committee were ready to perspire a little bit and get things moving. So, if you could, if youre confirmed, how do you envision the departments relationship with congress, and what is your plan to enhance that road trip, and how do we Work Together to move that needle . Senator, from the time i left the marine corp and entered the private sector, i have reported to either, quote unquote, my bosses and as i progressed in my career, i reported to a board of trustees or board of directors, or an executive committee. Thats the way ive been trained. It works the best. Its been proven to work the best. I look to you as the board of directors. You are my, quote unquote, partners, senior partners. And i look to you for guidance and direction. Were going to have to Work Together in lock step to tackle the problem that we have. Were going to be asking for a tremendous amount of resources, and were going to be moving a lot of cheese and trying to streamline an organization all simultaneously. We might fall off the bicycle every now and then. I will be completely transparent and tell you when weve fallen off the bicycle and hopefully tell you before we do, but i want to manage in an open and transparent manner. I appreciate that very much. As you know, we did talk a little bit about this, but im sure you know our air crews continue to experience Physiological Episodes. Yet we still havent found a fix for that. A few weeks ago the air force announced it was testing sensors for the f35 alpha that actually monitor pilots inhale and exhale gases and automatically activate emergency oxygen if at least a problem. This is something ive recommended to both the air force and the navy. Leaders in past hearings. So im very hearings. I am pleased they are finally taking action. If you are confirmed, do you commit to finding solutions to this problem and how would you ensure these solutions are shared across aircraft and Service Branches so that we dont repeatedly see the same costly problems undermining our war fighting capabilities . I will commit to you, senator. It will be a top priority. To address the second part of your study, one of the things that came readily apparent, at least in my career on the board, was the building is an amazing problem solving machine. Some of the problems that result from the problem solving is knowing when the sunsets the solution or they dont share the solution amongst the building, its fairly siloed. I believe working with my fellow Service Secretaries, if confirmed, that is one of our key issues to share best practices. Very good. Finally, in my remaining time, we have talked a little bit about the number of ships and i guess im not so concerned about the number of ships, just ensure the platforms are doing what they should be doing. But the types of ships are important as well in making sure we have an optimal navy and a navy that will support our marine corps. We know that the marine corps has been playing a Critical Role, most often in an infantry type role. We see them in the desert frequently. Amphibious ships seem to be an afterthought. Can you explain what your direction might be in making sure amphibious ships are included in the discussion when it comes to the ships we have . Most definitely. If you look at what they are, its our Forward Deployed force and to affect that forward deployment in the most effective manner, we have to have the amphibious ships for the marine corps. Thank you for your time. Thank you mr. Chair. Thank you mr. Chair. Thank you mr. Spen sor, i aplaid you for your nomination. You are very qualified for the position. I look forward to supporting you. I look forward to working together with you. Before i ask you a question or two, i just want to put on the record the concern i have as secretary of the navy, you will set a tone and one of the tones you have to set is everybody that comes before us is scrupulously candid in answering questions. At the most recent hearing of the cpower subcommittee, a hearing we held in the last couple weeks, i asked the admiral a question, there was a bloomberg article about the president s budging coming for a second lcs. The article that came out in the 19th or 20th of june said the funding was going to come through a 325 billion reduction of funding for Aircraft Carrier overhaul. I asked the admiral this question in that public hearing, im a big lds fan but part of the funding is going to be reducing aircraft overhaul by 300 million, is that accurate . If so, why is that a good idea. He said i wont speculate what will be in it, but what you cited is inaccurate, not a source coming out of aircraft overhaul. Are you familiar with the bloomberg piece he referenced . Correct, that was the testimony to me. I was surprised a week after the hearing to get the president s budget submission june 29 and 325 billion, 325 million is being moved from Aircraft Carrier reactor to support a second lcs. I think thats exactly the question i asked him. He told me the money wasnt coming from that and the article was inaccurate. I have yet to get an explanation why he testified to that. We are all big boys on this committee. We are big boys and girls. We are used to getting answers, some we like and some we dont like, but we depend on getting candid answers. I hope that will be a tone you will set as secretary of the navy for all witnesses that appear before the committee, they would not try to hide the ball or play games with us, they would endeavor to answer the questions we have. Senator, in my eyes, we cant afford to do that. That will be the tone set at the top. Thank you. Thank you for that. If that is at the top, that message will be very clear, im sure. 355 ship navy, i want to ask you about this. We did an amendment in the ndaa process that this Committee Supports it. I think it would be a good thing. You talked of grappling with the ship mix. Two aspects of what it would mean. 355 ships is a number. Surface under water, manned unmanned, theres a lot of work to determine if it were 355 what the right ship mix would be, correct . Correct. The second issue is not just about shipbuilding to the extent we are talking ships and personnel and Aircraft Carriers and air wings. Talk about so we can think about what this commitment might mean down the road for our committee as authorizers. What are the bigger questions in addition to the numbers of ships we are going to have to grapple with together with you if we try to reach that goal . Senator, to address the second of my priorities, which is capability, i agree with you. 355 is a good number for people to focus on. Do we know exactly what the mix is . I think since we are talking about a decade, we might not know and we shouldnt know because we have evolving technologies. What i will tell you is, whether its a 355 ship or not, what we want to get our head around is can we have a capacity number but have a capability that is greater than that . So, have the capability of a 355 that might be a 300ship navy. Im speculating, but thats the concept i would like to work with you all on, where we go for capabilities. Thats where the punch is. If, in fact, technologies allow us to have different platforms, some we dont know of that will develop in five years, keep our eyes and ears open and i look forward to working with the chamber on those issues. Thank you very much. Thanks, mr. Chair. Mr. Spencer, congratulations on your nomination. Thank you for am septembering the call of duty once again. I want to associate myself with the remarks of senator king on the budget control act. It must be repealed. It is not worked. It is not resuring spending and will not in the future. I think we all know exactly what will happen if it goes forward. Well have a continuing resolution in september. Well have some twoyear budget that doesnt restrain spending in november. Then well have one in december, then one in december, 2018 then started over again in 2019 and 2020. All for a bill that no one from senator fisher to my right and senator o donnelly voted for. It is not the constitution. My question, just to be clear, is can you build a 350ship navy if the budget control act remains in force . No. Thank you for that. The president s budget request sufficient to build that 350ship navy, if the budget control act is repealed . It would depend on the time line. You would be giving the future secretary of the navy as a goal. Thank you. I have to say, mr. Spencer, the welfare of sailors and marines is of concern to me. Your predecessor is questionable on matters that left him as one of the most unpopular Service Secretaries in the modern era. To go through those decisions, he politicized the naming of u. S. Navy ships, made strange changes to the navy uniform that caused revolt among female soldiers and talked about combat effectiveness of mixed gender. He dumped the navys ratelings titles, some of which like gunnery mate that have been around 200 years. Tries to have expensive fuel at the cost of 28 to the gallon and questioned the integrity of marines that dared disagree with the policies. Itis unfortunate that you have inherited the legacy and going to make it somewhat hard to restore the credibility of the secretary. Do you think making these kind of changes is going to enhance the navys ability to deter war and, if necessary, fight and win war . Senator, i testified before this committee, i believe in 2015 that it was my belief that the department of defense specifically individual services was not to be a pitri dish for social expeerms. Policy should be at the d. O. D. Level, then deployed. We have to Work Together, including all Service People to make sure they are given what they need, whether it be spiritually, whether that be psychologically, whether it be materialistically to fight forward so readiness is the key. Thank you for that answer. I agree. I think every sailor and marine you will have serving under your leadership is our foremost priority is to deter adversaries and fight the wars where necessary. I want to turn to a particular matter in the time i have left. The navy revoked the license of a contractor they have used to do base security for civilian vendors. The change was sudden to me after incidents of shootings and terrorist attacks on military insulations. The navy is fixing something that is broken. Could you please review the contract in plan for base access and get back to me about why the navy took this action and what the plans for security Going Forward are . If confirmed, i will. I dont want you to do anything to presume confirmation. Thank you, mr. Spencer for your willingness to serve our country. Thank you, senator. Thank you mr. Chairman. Mr. Spencer, welcome to the committee. Its an honor for me as the newest member to get to be here with senator warren. It was a pleasure. I want to thank you for your willingness to serve and add my condolences to the family that is suffered the tragic loss of the 15 marines and sailors yesterday. I, too, enjoyed the time we spent together in my office. I appreciate your comments on the need to keep a robust, Industrial Base, active to achieve the 355ship navy. We have to have consistent work flow through our navy yards. There are many others around the country who are facing the same situation. Let me ask you one question about testimony that the admiral gave to the Sea Committee two weeks ago, i believe. We must increase the procurement of helicopters like the sea hawk to meet the larger presence. Do you share this view and can you commit to the committee if confirmed, you will take a close look at the helicopter structure . I know helicopters are of particular interest to you given your previous service. Senator, i will commit. We have to look at all resources necessary to fight the wars. Yes. Thank you very much. I would like to wish you the best, really, in the time i have as you take on this critical position, assuming your confirmation. I appreciate your previous comments on sequestration budget caps. I share the concerns of the chairman and my colleagues on the committee about the disastrous way we went about things. I certainly wasnt here like most colleagues when the budget act was passed. Well do our job, i hope, to correct that for you Going Forward. So, i want to thank you for your service and i look forward to working with you once you are confirmed. Thank you. Thank you, senator. Thank you mr. Chairman. Thank you for your service to our country. I did appreciate the opportunity to sit down and visit with you in our office. I find the opportunity to visit in advance very, very helpful. I would like you to share a Little Information about the state of our depose. In particular, i have heard the effectiveness of depot level aviation is inconsistent across the services. If confirmed, will you commit to exchanging such best practices with other services . Senator, again, right in the wheelhouse. We have to share best practices. If confirmed, the mantle that you will hear from the navy is working with other Service Secretaries to find out where they are extracting the best efficiencies and if we are doing something with great efficiency, we will share with others, too. Right now, you have responsibilities for the service of the aviation assets. Some depots seem to have a better handle on how they are doing it than others. Most certainly, there are different approaches to having this being done. I think it would be beneficial for the Different Services to have established a best practices approach in those areas they have similar responsibilities and opportunities. I appreciate your willingness to move forward in that and in that type of a process. So, thank you for that. In 2010, as part of the defense advisory board, you proposed the closure of d. O. D. Commissaries in the United States under the banner of saving taxpayers a billion dollars per year. As you know, this measure was never adopted. What was the biggest lesson that you learned about your experience with the restructure proposal . It was an interesting proposal. I mean it was an interesting study and never became a formal proposal but ended up in the washington post. What we were working under the banner there was something that t they quote as quicker and faster. The retirees that were equal or better at a more efficient price, why not look at it . We had a solution provided by a major lodgistic company that is in the soft good business. It was a fascinating experience for me to find out how the Building Works and the society work that is is the d. O. D. You have to pace yourself in certain areas, but, again, when it comes to if im confirmed, i will look everywhere in the navy under every rock to find efficiencies. When i share we have to work lock step with the Armed Service committee, theres going to be big boulders we have to move. Is the difference between finding efficiencies and reducing benefits . I want to walk in this a little bit. In light of the 2010 recommendation to restructure the department of defense commissary benefits in the United States, what will be your philosophy regarding personnel benefits should you be confirmed by this committee . Senator, a learning lesson that will give you insight into my thoughts if confirmed as secretary was more our study on modernization of the military retirement system. When we rolled that program out or study out, there was quite a bit of feedback. One of the veteran Service Organizations was nice enough to public my home email and home phone and i took 127 phone calls. It was fascinating. Once you got through anger and frustration and you started talking to people and you came with the following approach. You have 1 to spend on your benefits. Your retirement cost 60 cents, health care 40 cents, commissary 15 cents, moral and welfare 15 cents, where do you want to spend your dollars . If we provide a value association for the benefit received and understand from Service Members what they value, i think we can come to good conclusions without erosion in benefit performance. One last question, do you agree the f35c and the fifth generation capabilities are needed for the air wing now and in the future . Yes. Thank you. Thank you, mr. Chairman. Thank you, mr. Chair. Mr. Spencer, thank you. Im sure if you had a fitbit on for the past couple weeks, you put on dozens of miles because i have seen you all over the building. I appreciate you being so accessible. I want to follow up on the f35 question. In your responses to questions for the record, there was a question asked about directing a reassessment the department of navy total Program Procurement for the f35s. Im not sure what precisely was thought about in terms of a reassessment, but you said review. In response to senator rounds question, you do believe its a very important part of our arsenal. Can you talk about what it would actually yield . When it comes to a critical weapons platform, there ought to be continual focus on the aircraft and weapons, whatever the case may be. When we make a decision to buy,itis not autopilot. This is a continuely ongoing attention to the acquisition and the process itself. Thank you. I want to go to another response that related to barack. I think you said you thought it made sense for us to consider another round. Can you think of anything, in particular, that relates to you that it would yield . Senator, from my, i dont want to call them briefings, but my knowledge gathering in the last couple months, i believe the navy is in good shape when it comes to utilization of assets. If we grow to a 355ship navy, you cant give away waterfront property. Its very expensive to get back. In the same token, i believe we should continuely review the value of assets and return on investments and infrastructure as a case of being. Thank you. My final question, you mentioned in response to some of senator ernst questions, you view us as a kind of board of directors. I like that analogy. I have used it myself here. We know senior managers, particularly in board meetings, the best ones come in and are very direct and forthright with respect to board policies or actions that are making your job more difficult. I want to tie that into the perspiring line of questioning, too. When confirmed or if confirmed, i intend to support your nomination. What things do you think you have to come before this board of directors and say we have to change as a matter of policy, as a matter of consistency. We know sequestration has to go away. Where do you think you are likely to put us out of our comfort zone . You were spared because i forgot to bring the 680 page my guess is, as we go through that, some of those few hundred pages is because we told you all to do things a certain way . How are you going to help us streamline the resources for the right purposes for d. O. D. And within the navy . Senator, when i originally said we are going to Work Together, thats a fine example. Lets take acquisition. If, in fact, we have a large platform weapons program, one of the things i might propose is that we have the Program Executive and the Program Manager stay in place for the first generation of production. Have their job depend on it . Have your job depend upon it. Also, that flies in the face of up and out. We are going to have to adjust some situations here on how we promote people and if we are going to expect this out of them. Yes, coming to you with various situations that you can help us with and clear maneuvering is appreciated. I look forward to the confirmation of coming back here and coming up with the list of things to do dichfferently for your job to be easier to achieve. I look forward to it if confirmed. Thank you. Thank you, mr. Chairman and to the witness for being here. I want to join my colleagues in offering my deepest condolences of the families and loved ones of the Service Members who died in the crash of the transport and refueling aircraft. Our thoughts are with him and the entire navy and marine corps family. Now, mr. Spencer, in recent years, there have been a number of reports of Workplace Safety violations at the private shipyard that is the navy relies on to build its fleet. In fact, according to federal labor statistics, Shipyard Workers face an injury and illness rate that is roughly 80 higher than the construction industry, generally. The list of reported injuries and violations that these workers are exposed to is bone chilling. Amputation, e llect cushion. The nation is spending hundreds of billions of dollars where their injured and maimed. A Navy Spokesman responded to those concerns by saying, and im going to quote the spokesman, we are not the overlords of private shipyards when it comes to Workplace Safety. Do you agree with this attitude . No. I cant, senator. I truly believe that as we go forward in todays environment and talking about, in the case of shipbuilding, amping up the production and the throughput, we have to have a sustainable environment. That does not support a sustainable environment. I would hope it is a whole of government solution. I believe osha is involved. We look forward to making sure we are stewards of good resources. Good. Do i hear you saying, if confirmed, you will look into how the navy tracks and monitors workplace violations at the shipyards it is doing business with . Yes, senator. Good. We are talking growing the fleet to a 355ship navy, which would result in considerably more volume at many shipyards. I think the least we can do is make sure American Workers who are employed in those shipyards and building those ships are afforded reasonable protections Going Forward. I concur, senator. Thank you. Another question, the navy operates on the front lines of the threats of Climate Change, including rising sea levels, intense storms, higher temperatures. The navy long recognized the risks posed by Climate Change. Back in 2010, the Navy Released a Climate Change road map, which observed and im going to quote here, Climate Change is a National Security challenge with strategic implications for the navy. It is affecting and will continue to affect u. S. Military installations and access to Natural Resources worldwide. It will affect the type, scope and location of future navy missions. Mr. Spencer, do you believe that climate is changing and that Climate Change will continue to affect the navys installations emissions . Senator, the navy, from my briefings to date is totally aware of rising water issues, storm issues, et cetera. We must protect our infrastructure. I will work hard to make sure we are keeping an eye on that. Without the infrastructure, we lose readiness. I take that as a yes . All about readiness. Good. If confirmed, under your leadership, will the navy prepare for Climate Change . I think this is where you were going with readiness. In repairing ourselves and preparing for the crises and insecurity that Climate Change will exasperate around the world . Yes, senator. In its Farewell Speech in front of sailors and marines, secretary mavis said if we fail to act on Climate Change, instability around the globe will intensify and our basis risk being lost. I think he is right. I will be counting on you, mr. Spencer, where the secretary left off and ensure we adapt to this threat and we are ready. Thank you, senator. Thank you. Thank you, mr. Chairman. Thank you mr. Chairman and mr. Spencer. Congratulations to you and your family. Appreciate your desire to serve your country, again. I want to get back to the issue that i think was lost by the last secretary of the navy and i want to associate my concerns that senator cotton raised about your predecessor who took his eye off the ball on many things, readiness, but particularly training. To that list, senator cotton mentioned the previous secretary of the Navy Integrated boot camp in two weeks. He said have this done in two weeks. The most ridiculous order i have seen as a member of this committee by anyone in the military. So, i want to get a sense of your view on training, on hard, rigorous training. Theres been a lot of focus on korea in the last several months and members of this committee, myself included. Have you read the book, this kind of war . I have not. I think thats something i have an extra copy, i would love for you to take a look at. Its about the korean war and our lack of training and our lack of readiness. What it did to the men and women in the marines and army who had to go fight. Its a really, really dire situation. As described in the book, thousands of americans were killed in the summer of 1950 because they werent trained or ready to fight. Can you give me a sense of philosophy on training sailors and marines . In the last month we have had accidents at sea, a lot of talk and concern about what happened with the refueling tanker just yesterday. What is your view on how we should be training our marines and sailors . Senator, its my point of view and, if confirmed, the tone will be set from the secretarys office that we are all here for one purpose and thats the end of the sphere. All urgency, all focus whether a dental hygienist, motor pool, whether pilot, whether flag officer, we are all here to attain the goal and the goal is to deliver the fight. We have to train. Its mandatory. The crs, the bca really cut into training. I think we are seeing the impact of that, unfortunately. We need to turn it around and correct it immediately. Im looking forward to your confirmation. This Committee Puts forward issues and areas of focus that dont relate to training. If you see that happens as too much, count me as a supporter to get back to what you are talking about, which is serious, hard training for our men and women to come home, if and when they have to go to war. You and i had a good discussion about an issue thats taken up a lot of time in the committee with regard to our strategy and whether its a new Arctic Strategy the secretary of defense put forward or admiral put out a book on power and the section on Arctic Strategy. Are you familiar with the d. O. D. s Arctic Strategy . I have read it. It talks about phonops. The admiral said its true we dont have the capacity or capability to conduct them in the arctic. We have a strategy that says we need to do something and the cno of the navy saying we dont have the means to actually do it. There are two areas i would like to get your commitment to work with if confirmed. As we look at a 355ship navy, to ensure we have the capability to conduct phonops in the arctic, can you take a hard look at the issue of ice hardening our ships, which, at a sea power subcommittee two weeks ago, the navy indicated they are not looking at that issue at all. Senator, when it comes to one of my priorities, you heard me talk about capabilities and that falls squarely underneath that. Two weeks ago, this committee and the ndaa put forward language that authorizes the procurement of up to six ice breakers. Right now, the United States has two, one is broken. If you go out to seattle where thor home based, they are coast guard ice breakers. I recommend you do it. We have men and women in the u. S. Coast guard deploying on ship that is were commissioned over 40 years ago and barely seaworthy. So, theres been a bit of a back and forth and you and i have discussed this between who is responsible, the coast guard or the navy . Can i get your commitment to take a hard look at the navy and coast forwards cooperation to enable our country to procure ice breakers, which is cno of the navy said its absolutely in the National Interest of the United States to have more than one ice breaker. The russians have 40. They are building 13 more, several of which are nuclear powered. Can i get your commitment to work with the coast guard and this committee on that important task . Most definitely, senator. If im not mistaken, you all have provided money for the navy to provide support for the coast guard in the next exploration of the ice breaker thach. That is supportive. Thank you. On behalf of the chairman, mr. Wicker. Thank you, i have been in and out and it seems you are doing well. I think i intend to join a Unanimous Committee in supporting your confirmation. Let me say two things. Please know, as our future secretary of the navy, that this committee is serious about helping you and helping President Trump get to the 355ship fleet. We have had, over time, since i was in the house of representatives, goals we never got to. It was 308, it was 313. Here we are at 276 ships in our fleet. We have language in the d. O. D. Bill and our house counter parts have language in the ndaa over there indicated to show you we are serious. Frankly, we think we got you the money this first year to get us on the path to 355 ships. So, please know that we are serious about this and we want to be your teammates there. Let me ask you my one question about the Physiological Episodes that are occurring to our pilots, particularly our training pilots in the t45. The three undergraduate Pilot Training bases. I have learned more in the last four or five months about apox ya than probably is wise for someone of my educational attainment. I have learned there are many types of high pox ya but the problem with the training planes and the three Pilot Training stations is the his toxic high pox ya and try as we might with the best minds in the navy and federal government, we havent gotten to a correct diagnosis. The best i have heard is that we can maybe patch together a half way of a solution here and with a bit of a solution there and get us back to flying at the correct altitudes to train these men and women to do the hard work that is expected of them. You already testified and answered to senator ernsts question. We put something in the bill that i want to draw your attention to and i hope it stays in the bill and is signed by the president and it basically says while we are putting the best minds of the government at work, the navy and d. O. D. Can, if they want to, not forced to, but can if they want to, implement a prize competition. You come from the private sector, sir. All we are doing is saying after the best minds we have in the federal government have tried and so far havent found the exact diagnosis of what the problem is that causes this, we could offer a prize to anyone in the country, anyone on the face of the globe for that mather and you dont pay the money unless you get a solution. I would just urge you to i would urge my colleagues, lets keep that in the bill and treat it seriously and i would urge you, after you are confirmed and if we dont get to a solution to certainly hope we get to a solution quickly. If we dont, take this provision seriously and lets unleash the brain power of the entire country and entire globe to try to get to the solution. So, whatever thoughts you might have on that statement in one minute, i would be happy to hear. Senator, very exciting chapter one of thinking outside the box. Thats fantastic to hear and excites me that those tools and authority would be available to us. Thank you. Thank you, mr. Chairman. Yield back. Thank you. Congratulations, mr. Spencer. Its a real honor. I appreciate you being willing to serve. I keep hearing from Junior Officers in particular security clearance backlog. Everybody is asking you to look at everything. Could you look at that issue . It is taking a long time to get security clearance and jobs not filled and people not able to do the job adequately without security clearance. If you need more help from the committee or more money, let us know. Having been a product of going through that, i know exactly i dont know whats going on out there. Is the policy of the Trump Administration to deny north korea the ability to hit the American Homeland with a nuclear tip icbm, do you agree with that policy . Yes. One of the challenges for the navy is how they would avoid that if it came about. Do you agree with that . Yes. When you look at the structure and number of ships, its got to be based on threats. When you look at the world from a navy point of view, how would you say the world is in terms of a threat metrics for the navy . Is there a need for more ships . Definitely. The threats we are facing now from the four plus one, however you want to define it is one of the more complex the country faced. We need the capacity. Would you say it is a more challenging time for the navy . I would say it is. It is a bad idea for congress to cut the navys budget . Really bad idea, senator. Sequestration is an idea that needs to be set aside . Yes, senator. Okay. In terms of how the military services work, about 50 of all cost or personnel costs, do you understand that . Yes, senator. We have done on this committee pretty Creative Things to lower personnel cost but support the force. We want to d fair and generous to those who serve and retire. We have to look at everything including personnel cost to have a sustainable budget, do you agree with that . Totally senator. Trak hair is a part of the budget that is grog exponentially. The health care for the military Service Members and they family and everybody gets that. On the retiree part, we havent had a premium adjust in the of significance since 1995. Are you willing to work to make it generous, but more sustainable. Yes, senator. How do you view that part of the budget over time . Thats one of our biggest problems. The personnel problem is growing at an unsustainable rate. We owe our uniform members and retirees the best we can offer. We have to think of different ways to deliver just as good if not better service. A navy s. E. A. L. Is one of the finest members of the force anywhere, a very elite group of war fighters. You have people in the cyber arena. Do you agree Cyber Threats to the military are growing, not lessening . Exponentially, senator. How do we keep the navy s. E. A. L. On track for a 20 or 30 year field when they can leave and make more as a contractor . How do we attract the best minds in the cyber arena, they can go to silicon valley, how do we do that . You dont have to give me a complete answer, but think about that. The competition for these really high skilled war fighters is amiss. Any thoughts on that . Senator, again, my priorities being people, capacity and process. People are number one. We have to take every single best practice we can find from within the government from the private sector to address the situation you mentioned whether it be a s. E. A. L. Or cyber expert. We have to find a way to allow people in the cyber field to leave and come back. I believe they have to be refreshed in their own community. I look forward to working with you all to think outside the box on how we can do this. Finally, Sexual Harassment and abuse of Service Members. We have spent a lot of time trying to change the law and culture. What is your view of that situation and where do you want to take the navy when it comes to Sexual Harassment and assault . Senator, one is too many. Lets know the job of the Navy Marine Corps team is to inflict pain to the enemy, unsustainable pain to the enemy. When i see we are sustaining pain upon ourselves, it must be stopped. Thank you, mr. Chairman. Mr. Spencer, thank you for being here. Thank you for your willingness to serve. Let me say at the outset that all of us are grieving and lifting up in our prayers the 15 marines and sailors who were killed last night in the c130 crash in mississippi. We certainly want the men and women of the navy and the marines to know we are standing with them as they are grieving those losses. I want to ask you initially about moral in the navy and thats been a concern raised by a number of observers. What is your sense of the current state of moral and what needs to be done to improve that . Senator, the Navy Marine Corps team is bias for action. No is a tough word to pull out of the vocabulary. In my opening comments, we talked about how they have been continuely engaged and stretched thin. They will never let us down. That being said, we need to make sure we are paying attention to their needs, whether it be changing the pcs move notification time out to where it was at six months versus one month to more sweeping needs and benefits and compensation to deliver a better product. As i view my job, defined biotite l x, if confirmed, this is a focus that has to be addressed. Moral is the barometer. As of yesterday, the navy reported they have 276 deployable battleships. With a third of them under way for deployment or training. Do you believe we currently have sufficient capacity to meet the strategic requirements we placed on the navy . There might be two answers to that, senator. Let me say that with the assets that we have right now, we are managing the best, in my overview that we can. It comes down to risk management. Are we addressing every risk and prioritizing them with asset and capability, we could do a better job. What is the current deployment ratio of the navy and how does that need to be improved, given shipbuilding and fleet growth is a years Long Initiative . If we could, again, i go back to the industrial science when it comes to productivity, if we could have a clear sight to funding and resources, i believe well have a much more efficient flow through on maintenance, whether it be aviation, whether it be sea craft. This will fit into adjusting the dwell time back to a normalized rate. I think thats what we really have to focus. Again, that goes back to your original question, where is moral when we have to adjust both. How do you plan to rapidly rebuild the fleet, taking into kor ration the cbos recent analysis that it would take until the year 2035 to reach a 355 ship navy, even with accelerated shipping . Senator, first, i look forwards to working with the cno and the expertise that is involved in the naval organization. That being said, i really think we have to start thinking outside the box, whether we look to the Ready Reserve, whats sitting on the water thats been quote, unquote, moth balled, whether we look at expediting a transition. All of these have to be taken into account to expedite, putting capacity on the water. Talk for a minute about the Ohio Replacement Submarine Program and the columbia class, the countrys second costly acquisition in the country and part of a 1 trillion program to modernize the Nuclear Triad over the next 30 years and the submersible leg of the triad that is responsible for 70 of the nations Forward Deployed Nuclear Warheads and remain a vital part of our National Security. A little over a month ago, it was reported they suffered their first known glitch in the overheating of the prototype motor. Where do you think we are in replacing and upgrading the ohio class submarine and what needs to be done . Senator, i have not received classified briefs on the actual performance glitch you are talking about. As i said in the Opening Statement that i believe the under sea leg of the Nuclear Triad is the most survivalable and probably one of the put it this way, we must address the replacement situation. It is a huge cost, a huge expense, i realize that. We are going to have to work in a whole of industry, a whole of government solution to address this. Thank you. Thank you, mr. Chairman and thank you mr. Spencer for your willingness to take on this new role. The navy instituted something called the accelerated program to allow shipyards to compete with the private sector as im sure you are aware, one of the real challenges we have is many of our skilled workers are aging out and replacing nthem in a tight Work Environment is challenging. The app guarantees engineers hired into the four Public Shipyards at the gs5 or gs7 level will be eligible for a promotion after they complete a training program. Do you think that kind of program is helpful in retaining the work force we need and do you have other ideas of how we can get the workers we need to keep our shipyards up to date . Senator, im not aware, specifically, of the program. I have confirmed i look forward to finding out more about it and sitting down and having a conversation with you about it. I do have firm beliefs on how we are going to have to work as a team both the Industrial Complex and the department of the navy to go forward and fulfill the goal to put capacity on the water. Whether that is what we used to call vocational schools, training schools out in the communities, i have been informed that for a welder, it takes seven years to become a journeyman. Thats an extraordinary amount of time, but its an extraordinary position. We have to fill the pipeline and find any vehicle we can that is beneficial to supply the process. Thank you. Im sure that senator king would join me in inviting you to come to the shipyard to see the a. P. P. Program and hear more about the challenges they are facing. I hope you will be willing to do that. I look forward to doing it if confirmed. Its a great experience. This committee has spent a lot of time on the challenges that russia presented to Eastern Europe and to our allies in europe. Obviously, one of the places where we have seen them be the most aggressive is in the black sea where they have, with increasing frequency buzzed our ships and planes in both the baltic and black sea. Can you talk about what you would do as secretary of the navy to respond to that . Senator, russia is a threat in many ways to the country. We must, and i think every single nae single naval officer and weapons person, whatever, is trained they must protect themselves from lethal force but weigh and restraint. We have to stand strong. We have to have avenues of communication open with our adversaries when it comes to professional actions on the seas. One would hope in the military sector there is professionalism that spreads to all, even our adversaries to have communications in that regard. Do you think that those communications have, so far, been successful . Do we need to establish more channels . I have not been briefed in depth, senator, but on a topical basis, i think we need more channels. Thank you. I was surprised to hear in testimony before this committee, china is looking at a 350ship navy by 2020, given the challenges we are facing as we look at our longterm needs in the navy. Are you concerned as if you become secretary of the navy about what that means for chinas ability to have more control over the South China Sea and other seaways where we might come in conflict . Most definitely, senator. The goal that one of the presentations that i sat through was 2045 is the goal of china to have many things in place. Their ship count in 2020 to be larger than they are now. It all concerns me tremendously. We have to respond in kind to have the capability and capacity to ensure that we are positioned to enforce the Free Shipping lanes for not only ourselves and our interest, but those of our allies. Thank you. Thank you, mr. Chairman. Thanks, mr. Chairman and thank you mr. Spencer for your dedication and service to our nation and your family as well. I was gratified that you mentioned the tragedy last night and our thoughts and prayers being with those families. On june 17th, the navy experienced another tragedy, as you know when the uss fitzgerald was hit by a ship under circumstances that we dont know completely and i understand there is an investigation into the way one of the sailors, technician third class tom winn from connecticut is one of the deceased. I attended a memorial for him last week and his family is still grieving as are the other families who lost loved ones during that incident. The commander of the United States seventh fleet appointed rear admiral to lead a judge advocate manual investigation into the mishap. I would like to know if you are confirmed, will you commit to ensuring a prompt and thorough investigation of the uss Fitzgerald Collision with the cargo ship acx and will you commit to reporting its findings fully to this committee . Senator, prompt, thorough and transparent with expedition. Thank you. Theres been talk about the construction of submarines, the columbia class and virginia attack class, which is required to go from 48 to 66, as you know. And the challenge, as senator shaheen mentioned is not just with the flow of materials, but also the Industrial Base and not only at electric boat in newport news, but the supply chain that they face. I wonder if you have thought about what can be done to provide the kinds of Training Skill Development resources for the suppliers and contractors and all the medium and Small Businesses that are involved in that defense Industrial Base . Senator, im glad the supply chain has been brought up because we definitely have a limited supply of hands and backs to build things, but people, many times, dont focus on the actual supply chain itself. There are many cases out there in the private sector that we can take best practices from. Off the top of my head, we did a study of the defense business board and ibm when sam was there took over when ibm was looking at running out of cash and major American Icon almost going into bankruptcy. How did he do that . He brought everyone in the tent. I would see us, whether through dla, beyond the navy, d. O. D. Acquisition force having to do a whole of team effort in this regard. Finally, let me ask you about the ch53k. As you know rk, it is the replacement for the marine corpss only heavy lift helicopter. It will play an integral role in the United States marine corps for probably decades to come, improving the ca53e superstallion. Will you commit to supporting this Critical Program assuming you are confirmed . Most definitely, senator. And, let me also ask you about the f35, the navy has a variant of it. Whats your view of the f35 . I gain, i have not received classified briefs. In my knowledge gathering, the marine corps is quite excited about what the f35 can deliver as a platform. The navy has its plans to adopt the fifth generation, fourth generation structure within their aviation wing, also. I look forward to finding out more, if confirmed. Will you commit to supporting the plans under way now for acquisition . I do because it doesnt seem like there is going to be a major change, but yes. Thank you. Thank you, mr. Chairman. We thank you for your appearance here. I take it you have completed all of the paperwork, is that correct . That is correct, senator. It will be my intention to move your nomination at the next gathering of the senate Armed Services committee. We look forward to confirming you, clearly before we reach our welldeserved rest of a pause for the month of august. So, we will be moving your nomination quickly to the floor of the senate and hopefully we can get it done to get you to work. Senator reed . Thank you, mr. Spencer. Thank you. We look forward to interrogating you soon. Thank you. Tonight on our companion network cspan a conversation with press secretary Sarah Huckabee sanders she talks about her work on the Trump Campaign and in the trump white house. Heres a brief preview. So, when did you say to yourself, im going to work for donald trump . You know, pretty quickly after my dad got out of the race, even during