that are cost efficient. we will maintain our efforts to reduce dependance on foreign oil. these efforts have made us better war fighters. by deploying to afghanistan with solar blankets to charge radios, the marine patrol dropped 700 pounds of batteries from their packs and decreased the need for risky resupply missions. using less fuel can mean fewer feel conv fuel convoys. that can save lives. we all know the reality of a volatile global oil market. every time the cost of a barrel of oil goes up $1, it costs the department of the navy $31 million in extra fuel costs. these price spikes have to be paid for out of our operational funds. that means that our sailors and marines are forced to train less

and fly less. for these reasons, we have to be relentless in the energy goals to make us a more effective fighting force and military and nation more energy independent. as much as we have focused on our fleets, assets of ships, aircraft and vehicles and submarines, they don't fly, sail, drive or dive, without the uniform of the men and women and their families. they have taken care of us. they have kept the faith with us. we owe them no less. the commitment to the sailors and marines is there whether they serve four years or 40. it begins a moment they raise their hand and take the oath to defend our country. it continues through the training and education that spans their career. it reaches out to their loved ones because it is not just an individual who serves, but the entire family. it supports or wounded warriors with recovery, rehabilitation

and reintegration. it continues with transition services with the jobs and the gi bill for continued education. the list goes on and on and on as it should. our commitment to our sailors and marines can never waiver. it can never end. for 236 years, from sail to steam to nuclear, from the "uss constitution" to the "uss carl vincent from tripoli to tripoli, we protected our nation and protected our power and protected our freedom of the seas." in the coming years, the plans to execute the strategy will ensure the naval heritage per

certi >> thank you, mr. secretary. we will now call on admiral green. >> thank you, mr. chairman. chairman levin and ranking member mccain appear before you. because of the active and reserve sailors and civilians and families, the navy and the marine corps remain a vital part of our national security. i'm honored to serve and lead the navy in these challenging times. i thank you for your continued support. i would like to address three points. the navy's response to the nation's security, our enduring tennets and security decisions and how these shaped the budget submission. today, our navy is the force. our global fleet operates from

u.s. basis and places around the world to deter aggression and respond to crises and when needed and called upon, to win our nation's wars. if you refer to a chart that i provided in front of you, you can see that on any given day, we have about 50,000 sailors and 145 ships under way with about 100 of the ships deployed overseas. these ships and sailors allow us to influence events abroad because they ensure access to what i refer to the maritime crossroads. these are areas where shipping lanes and our security interests intersect. they indicated on the chart. we can remain forward in the areas because of the facilities and support from nearby allies and partners. they are combating piracy and supporting afghanistan operations and maintaining a

presence. these forces rely on facilities in bahrain. we have facilities or places in singapore, the republican of korea and japan. they will be joined next spring by the first combat ship "the freedom," which will deploy to operate with the forward stationing. the lessons learned will help stabilize design and understand the concepts of our mission packages. we are collaboratla collaborati marine corps to darwin, australia. in the indian ocean, we depend on the airfield there for ship repair and logistic support. around the horn of africa, we depend on the airfield and

jabooti. in europe, we rely on spain and italy and greece to sustain our forces forward in support of our allies. in our hemisphere, guantanamo bay will be important as traffic through the canal and traffic increases. when i assumed the watch as chief naval operations, i established three key tenets. they are a clear and ambiguous direction. we are fighting this first. operate forward and to be ready. we're fighting first. that means the navy have to be ready to fight today while building the ability to win tomorrow. this is our mission and all of our efforts must be grounded in the fundamental responsibility. iran's rhetoric highlights the need for us to have fully war fighting ability. in our 2013 budget submission,

we have funding toward weapons and tactical systems rapidly going to the fleet in this area. this includes prototypes to improve our forces. operate forward. we have an offshore operation to win in an era of uncertainty. our budget submission establishes our forward posture. these include placing forward deployed naval force destroyers in spain and forward station in combat ships in singapore and patrol costs in bahrain. one ship that is operating from an overseas location can provide the same presence from the continental united states. be ready. we harness the talent and force to be ready to fight and responsely use our resources.

this is more than completing required maintenance and ensuring parts and supplies are available. being ready profici profici proficiet. number one, we are will remain ready to meet our challenges today. consi consistent with the guidance, we will focus our war fighting in the asia pacific and the middle east. we will sustain the nation's survival deterrent. we will build a relevant future force. our navy will evolve to the maritime force and our ship building and aircraft investments will form the foundation in the fleet. in developing our aircraft and ship procurements plans, we

focused on three approaches. to sustain production of the platforms, including early bird class destroyers and submarines and super hornets. we move platforms to the fleet such as the literal combat ship and ford aircraft carrier. to improve the ability of the platforms through weapons and sensors and unmanned vehicles, including the fire scout and the fire-x. new pay loads will help ensure the power despite threats to the access. they will also enable or continue dominance in the under sea domain and support our goal in cyberspace. developing the future force, we

will have jointness. we will have the requirements and make costs the arguments for new systems. we will enable and support our sailors, civilians and families. i'm extremely proud of our people. we have a professional and moral obligation to lead and train and equipped and motivate them. our personnel programs deliver a high return on investment. we fully fund our programs for stress and support our families and eliminate the use of synthetic drugs such as spice and prevent suicides and sexual assaults. i support the compensation reforms in the defense department's 2013 budget submission, which i believe manages the cost of the overall force. in closing, your navy will continue to be critical to our nation's security and prosperity by assuring access to the global commons and being at the frontline of the efforts in war and peace. i assure the committee and the congress and the american people

that we will focus on war fighting first, operate forward and we will be ready. i want to thank the committee staff. those that sit behind you, mr. chairman, for their assistance with budget articulation as we work through the submission. i thank the committee for support to the sailors and families. >> thank you, admiral. general amos. >> general levin and senator mccain and the members, as we sit here in the chamber, more than 27,000 soldiers are around the world shaping strategic environments and ensuring the seas. over the past year, the presence in crises response in the marines working with our most important joint venture with the navy, has created opportunities and provided decisions for our nation's leaders. your marines were first on the

scene to provide assistance and disaster relief. the first to fly air strikes over libya. over tunisia and yemen and bahrain. your corps continued to conduct sustained combat and missions and operations in afghanistan. having just returned last month from visiting many of the nearly 19,000 marines and sailors dereplid deployed there, i can tell you their moral remained strong. there is a spirit displayed in all that they do. their best interests and needs of all of our forces in combat made my number one priority. history has shown it is impossible to predict where and when and how america's interests will be threatened.

regardless of the strain on the ability to reduce forces today, crises requiring military intervention will continue tomorrow and in the years to come. as a maritime nation dependent on the ideas, america requires security both at home and abroad to maintain a strong economy, to access overseas markets and to assure our allies. the united states marine corps is our nation's risk mitigator. a certain force during uncertain times. one that will be the most ready when the nation is the least ready. there is a cost to maintaining this ability, but it is nominal in the context of the defense budget and provides true value to the american taxpayer. this fiscal year, i'm asking

congress for 30.8 billion dollar $30.8 billion. your support will provide operations around the world and provide resources for sailors and marines and families. it will replace equipment that is worn out. it will posture our forces for the future. when the nation pays the sticker price, it buys the ability to respond to crises anywhere in the world through deployed and forces. this same force can be reinforced quickly to inject power and joint access anywhere in the world in the event of a major contingency. no other force possesses the flexibility and the organic sustainment to provide such ability. our nation begins to direct its intention to the challenges of the post afghanistan world, a world where the middle east and

pacific take center stage, the marine corps will be mindful of the traditional friction points in other regions and prepared to respond to them, there as needed. the strategic guidance reflects we rebalance and reset for the future. we have a solid plan to do so and begun our execution already. we will train our marines in the complex and challenging world of the 21st century. in doing so, we will not deviate from the five principles important to the continued success of your nation's corps. one, we will recruit high-quality people. two, a high state of readiness. three, we will balance capacity. we will ensure the infrastructure is properly cared for and five, we will be responsible stewards of our

equipment. as we execute a pivot, i have a priority to keep faith with those who have served war. with plans, ever mindful of the economy in which we live, we built a quality force that meets the needs of our nation. by the end of fiscal year 2016, we will be stream lined. this force will be complimented by the reserve component that remains a strong 39,600. our emerging marine corps will be on open miezed. it will be enhanced by special operators. all necessary on the modern battle field. to build down the marine corps from the strength of 202,000, i will need the assistance of

congress for the resources necessary to execute and drawdown at a measured and responsible rate of approximately 5,000 marines each year. a rate that guards against the precipitous reduction that will be harmful to our force. as we continue to work with the names's leadership and my partners, you have my assurance that your corps will be faithful in a rn readiness. thank you for the opportunity to appear before you. i look forward to your questions. >> thank you so much, general. let's start with the seven-minute round. first let me ask each of you, starting with you secretary, admiral and general. the department of defense created a new strategy of 2013 defense budget request that each

of you have an opportunity to provide input into the strategy and in your view, does the request support the strategy and do you support the request? secretary? >> senator, thanks. the answer to all of your questions is yes. >> admiral? >> yes, sir, to all questions. >> yes, sir. >> in terms of the marines on okinawa and guam and asia pacific, i think you are very much aware of the issues there. senators mccain and weber and i have been voicing concerns and others have as well about some of the issues that are involved there. including the road map realignment agreement and the build up on guam. some of the changes considered in the current plan. the fy '12 national defense authorization act contains a

statutory provision that would block the expenditure of funds on guam until a number of conditions are met. first is submission to the committee of the marine corps laydown and master plan of the construction of the facilities of infrastructure necessary to implement that preferred laydown. another requirement is the secretary of defense submit an independent assessment of the force posture in east asia and in the pacific region. secretary, i assume you are familiar with that statutory requirement? >> yes, i am. >> and secretary, do you know if an independent entity has been selected yet to conduct that statutory assessment? >> senator, to my understanding, the department of defense has

selected someone. i don't know if the contract has been but my understanding is that the final date required by the ndaa for submission by the committee the plan is to have the report to you by that date. >> if you can let us know for the record if that contract has been signed and with whom we'd appreciate it. general, as the united states and japan reconsider the plan for the marines on okinawa, are you comfortable with the new plans for the lay down and the composition of marines that are being considered for guam and okinawa? >> chairman, i am. as much as we know today. as you're aware, both our government and the government of japan is the high -- at the highest levels are still working through the issues. as much as i know today and what

i have heard, i am comfortable, sir. >> thank you. general, do you need any special authorities or legislation to ensure that the reductions which you talked about when they're made that we're able to take care of our people? >> chairman, are you talking about the draw down? >> yes. >> sir, i do need your help. >> any special authorities you need? >> not authorities. >> any help you can need, let us know, would you? >> yes, sir. >> if you know right now, you can comment on that. but if not -- >> i was going to make a comment. when the budget was submitted, it dropped 20,000 marines in one year. as i said in my opening statement, as we look back on this thing and plan a year and half ago how we'd draw the marine corps down responsibly, that number is executable at about 5,000 a year without some precipitous action and drop w h with -- with some significant impact on our families.

it sends the wrong signal. i'll need some help financially to continue to maintain that ramp at 5,000 a year. >> let us know how we can be helpful. and on the fy 35 b probation, secretary panetta removed the f 35 b, the short takeoff and vertical landing variant. from the probationary status a year earlier than was planned. i think both senator mccain and i have found that we found that action troubling. and it caused secretary gates to put the plane on probation, in -- the testing has not been completed on those fixes. now, i guess the question should go to you, general. i assume you urged the removal of the f 35 b from the probation

list, is that accurate? >> i think urge would be the wrong adjective. i tracked this starting a year ago, i track it very, very carefully. so i have watched kind of the six major thresholds to include weight of the aircraft, very, very carefully over the last year. so i was able to provide my best military advice to the secretary. and in light of those six major thresholds and looking at the program's progression and test and everything, i recommended that he considered removing it from probation. >> all right. secretary, were you involved in the recommendation as well? >> yes, mr. chairman, i was. >> did you recommend that it be removed from probation a year earlier and if so, why? >> i did because of the things that general amos just mentioned. general amos has followed this very carefully. i went out with general amos to the wasp to watch the first on-board ship testing of the

aircraft. and given the gains that have been made in weight reduction, given the progress that had been made on engineering fixes to some issues that have been found earlier, given the fact that the plane was now either meeting or exceeding test points, both in terms of number of test flights or number of test points in each flight, i thought that it was performing at the level it should be, to be treated as a normal acquisition program and not one that was on probation. >> secretary, let me ask you a question about our aegis ballistic missile defense ships. this is fairly new and it's a growing mission for the navy and much of the european phased

adaptive approach to missile approach is going to be based on the aegis bmd capabilities, whether it's at sea or shore. now, i think in your prepared statement, you noticed that the bmd ships took up position in the eastern med trainian to provide bmd for both europe and israel. around let me ask both you and the admiral whether you are confident that the navy's going to be able to continue providing the ships needed to fulfill missile defense missions such as the ones that you mentioned for europe and israel, given the situation with the ships and their ability to be present in eastern med. >> mr. chairman, i do remain confident that we will be able to meet this ballistic missile defense mission with our aegis ships for a couple of reasons.

one is that we are making more ships ballistic missile capable. we have today i believe 24 ships that are that way. that number will be close to 40. secondly, as the cno said in his remarks and also as he's said numerous times by stationing for dvgs in rota, spain, we will be shipso provide the coverage than if they had to transit back and forth. >> admiral, do you want to anything to that? >> yes, sir. it's 15 bmd capable ships available by fy-15 for the european phase adaptive approach. they have to have the right program with the right missile

and we are on track with that budget submission. >> thank you so much. senator mccain? >> thank you, mr. chairman. as you know, mr. secretary, the reason why senator webb, senator levin and others have been concerned about the issue of guam is because the costs have escalated dramatically and at least in one area from $6 billion to $16 billion. there's been slow progress with the japanese. so we decided after senator levin, senator webb and others of us that we needed some outside view, independent view of this situation. we passed the defense authorization bill in december. it's now been 2 1/2 months. how long does it take to let a contract to get an independent assessment, mr. secretary? >> senator, since this contract is not under my purview, since i

don't let this contract -- >> i see. it's somebody else's responsibility. well, i want to tell you for sure that untilt we get that independent assessment, there should be no concrete plans made by the secretary of defense or the defense department until we have a chance to examine an independent assessment and then go through the authorization process for any expenditure of funds that need to be made in order to get this redeployment issue into some kind of sanity and believe me, we acted as is our responsibility because of our intense frustration about the lack of progress on this issue and now 2 1/2 months go by and they haven't let a contract to get an independent assessment by the way and we wanted it to

be completed by the 1st of april, end of march which cannot obviously happen. i'm not going to continue to let you slow walk us on this issue. just put things in perspective on the f-35. again, we started this program in 2001. cost assessments for a couple of thousand aircraft, it was going to be $238 billion. of we have now had additional costs of $150 billion. 1 50 additional billion dollars in costs. block 4 as i understand it, please correct me if i'm wrong, general amos, block 4, 32 aircraft which are 50% complete, which are now $500 million over originally estimated costs. are those figures wrong? >> senator, n'