Depot Modernization and Optimization Hearing
House Armed Services Committee
Subcommittee on Readiness
October 28th, 2021 at 11 AM EDT
Witnesses:
● Mr. Steven J. Morani, Acting Assistant Secretary of Defense for Sustainment in the Office of the Assistant Secretary of Defense
● Mr. Frederick J. Stefany, Acting Assistant Secretary of the Navy Research, Development, and Acquisition for the Department of the Navy
● Ms. Karen Saunders, Senior Official Performing the Duties of Acting Assistant Secretary of the Army Acquisition, Logistics, and Technology for the Department of the Army
On Thursday October 28th, 2021 the House Subcommittee on Readiness met to conduct a hearing on Depot Modernization and Optimization. The goal of the hearing was to discuss necessary plans and procedures for military depots to improve infrastructure given the National Defense Authorization Act for Fiscal Year 2022’s $900 million increase for organic industrial base recapitalization.
Led by Representative John Garamendi (D-CA-03), Chairman of the House Subcommittee on Readiness, the hearing commenced with opening remarks regarding the importance of repairing depot infrastructure. Citing that half of all industrial base facilities, including the Navy’s four public shipyards, are in poor condition, Representative Garamendi outlined the need for the depots to make immediate reparative actions.
Mr. Frederick J. Stefany, Acting Assistant Secretary of the Navy Research, Development, and Acquisition for the Department of the Navy, held similar feelings about the urgency for infrastructure improvements within his own department.
Mr. Stefany shared that the improvement goals of the Navy included 3 key points: modernizing aging facilities and equipment, upgrading facilities to support future platforms, and optimizing workflow and processes to support current platforms. In an effort to accomplish major milestones within the areas outlined, Mr. Stefany mentioned the Navy’s progress thus far following the Shipyard Infrastructure Optimization Plan (SIOP).
By following the Shipyard Infrastructure Optimization Plan (SIOP), Mr. Stefany shared the Navy’s current agenda to build and expand dry docks. Given that it has been 70 years since the last new dry dock was constructed, Mr. Stefany noted that the deficiency in dry docks is a pressing matter. Mr. Stefany made known that without sufficient dry docks, difficulties supporting new ship classes would be inflated.
Later on in the hearing, Representative Blake Moore (R-UT-01) addressed concerns about depot sustainability. Despite a Congressional requirement that the Department of Defense must reinvest a minimum of 6% of depot workload revenue back into the depots, Representative Moore noted that facility conditions have worsened.
Mr. Stefany addressed Representative Moore’s concerns about whether or not a 6% depot workload revenue reinvestment minimum was enough regarding the needs of the Navy and Marine Corps. While citing the issues as requiring further investigation, Mr. Stefany claimed that the Navy and Marine Corps will be reinvesting over the 6% minimum to catch up in areas that the Department has fallen behind in. Mr. Stefany concluded his input stating that the reinvestments will be put toward fleet readiness centers and SIOP.
As the hearing concluded, Representative Garamendi gave the closing remarks.
For a recording of the full subcommittee hearing, please visit the Subcommittee on Readiness’ hearing page here.