Mr. Chairman, thank you.  Let me join you in welcoming Mr. Spencer to the Committee.  Thank you for your willingness to serve as Secretary of the Navy.  I also want to thank your family for their support.  Let me also recognize Senator Warner.  Senator, your example continues to inspire this committee. 

I would also like to join the Chairman in taking this opportunity to pay tribute to service members and their families in the Navy and Marine Corps.  We are saddened by the loss of life during the recent accident on the USS Fitzgerald and the crash last evening of the KC-130 Marine Corps tanker.  Our prayers go out to the crews and families of those two units.  These accidents serves as a humbling reminder of the perils that our service members endure daily, whether they are deployed to combat zones or conducting routine operations.

Mr. Spencer, if you are confirmed for this position, you will be faced with a number of critical issues that confront the Department of the Navy.

The Navy and Marine Corps have historically had to deal with the day-to-day strains of deployment and high operating tempos.  With concerns about supporting the readiness of our deployed and non-deployed forces, the next Secretary's efforts in managing improvements in the force and its supporting structure will be critical. 

As a first priority, it seems to me that the Secretary of the Navy should focus on improving readiness of the existing forces.  For example, it seems very shortsighted to me for the Navy to have allowed the diving certifications for the USS Boise to expire and then have to tie that boat to a pier for more than a year when combatant commander demands for submarine services are unmet.  Our global threat environment dictates an increased need for advanced platforms, like the Boise, to be utilized for our national security instead of docked due to administrative shortcomings.

While readiness is very important, the next Secretary must also confront other challenges that face our Navy.  For a number of years, many of us have expressed concern about the size of the Navy fleet and the number of ships we are building each year.  Last December, the Chief of Naval Operations (CNO) released an updated Force Structure Assessment which recommended a total fleet of 355 ships. 

However, as challenging as it may be to increase the number of ships in the fleet, numbers alone are not enough.  This past May, the CNO released a paper titled “The Future Navy,” in which he said, in part: “more platforms are necessary but not sufficient.  The Navy must also incorporate new technologies and new operational concepts.”  I echo the CNO’s sentiments about modernizing our fleet and operational concepts, but it is a goal that you’ll find faces many obstacles.

By implementing the Packard Commission recommendations, Congress and the Department took the Service Secretaries out of the chain of command for major defense acquisition programs.  The Service Secretary, however, plays a critical role in the budget and requirements decisions that drive the acquisition programs.  As we begin procurement funding for the Columbia-class program this year, I believe that the Secretary of the Navy will play an integral role in guiding this critical program.

The challenges that the Navy faces are further exacerbated by the budgetary constraints imposed by the Budget Control Act.  Left unaddressed, these challenges will limit the Navy’s ability to field, train, and equip a modern Navy required to confront the global threats our country faces.

I look forward to hearing your testimony today on how we can modernize our fleet and improve the cost-efficiency of our acquisition process in order to rebuild our Navy.

Mr. Chairman, thank you for calling this hearing.  I look forward to supporting this nomination and working with Mr. Spencer in the future.