Modernization of the Organic Industrial Base

[Gavel sounds.] The subcommittee will come to order. Today, the Tactical Air and Land Forces Subcommittee will meet to receive testimony on the modernization of the Army's organic industrial base. I want to welcome our witnesses: the Honorable Brent Ingraham, Assistant Secretary of the Army for Acquisition, Logistics, and Technology; and Lieutenant General Chris Mohan, Commanding General of the Army Materiel Command. We appreciate you being here today and for your service to our nation. We look forward to your testimony. The Army's organic industrial base, or OIB, consists of 23 depots, arsenals, and ammunition plants. These facilities are critical to our national security, providing the necessary capabilities to manufacture, reset, and maintain the Army's equipment. However, many of these facilities were built during World War II and require significant modernization to meet the demands of the 21st century. The Army has developed a 15-year OIB modernization plan, and today we will discuss the progress of that plan and the challenges that remain. Before we begin, I would like to recognize the ranking member, Mr. Norcross, for any opening remarks he may have.

Thank you, Mr. Chairman. And I want to thank our witnesses for being here today. The organic industrial base is the backbone of our military readiness. As we have seen with the ongoing conflict in Ukraine, the ability to rapidly surge production and maintain equipment is vital. We must ensure that our OIB has the modern tools, technology, and workforce it needs to support our soldiers. I am particularly interested in hearing about how the Army is integrating new technologies like additive manufacturing and robotics into its modernization efforts, and how it is addressing workforce recruitment and retention challenges. I look forward to the discussion. Thank you, Mr. Chairman. I yield back.

Thank you, Mr. Norcross. Secretary Ingraham, we will now recognize you for your opening statement.

Chairman Wittman, Ranking Member Norcross, and distinguished members of the subcommittee, thank you for the opportunity to discuss the modernization of the Army's organic industrial base. The OIB is a strategic national asset. It provides the Army with the unique capability to manufacture and repair equipment that the private sector cannot or will not produce. To ensure the OIB remains ready to support the Army of 2030 and beyond, we are executing a comprehensive modernization strategy. This strategy focuses on three key pillars: facilities and infrastructure, processes and technology, and our most important asset, our people. We are investing billions of dollars over the next 15 years to upgrade our facilities, implement advanced manufacturing techniques, and recruit and train a highly skilled workforce. We are also working closely with our industry partners to ensure a resilient and responsive supply chain. I want to thank this subcommittee for its continued support and investment in the OIB. Your leadership is essential to our success. I look forward to your questions.

Thank you, Mr. Secretary. General Mohan, you are recognized.

Chairman Wittman, Ranking Member Norcross, members of the subcommittee, it is an honor to be here today representing the men and women of the Army Materiel Command. As the commander of AMC, I see firsthand the incredible work being done across our 23 OIB sites. From the production of 155mm artillery shells at Scranton to the overhaul of Abrams tanks at Anniston, our workforce is dedicated to providing our soldiers with the best equipment in the world. However, as the Chairman noted, many of our facilities are aging. Modernization is not just about new buildings; it is about transforming how we do business. We are implementing data-driven decision-making, optimizing our supply chains, and adopting industry best practices. We are also focused on improving the quality of life for our workforce and ensuring they have the tools and training they need to succeed in a high-tech environment. The modernization of the OIB is a long-term commitment, but it is one that we must make to ensure our Army remains the most capable fighting force on earth. Thank you for your support, and I look forward to your questions.

Thank you, General Mohan. We will now move to member questions. I will recognize myself for five minutes. Secretary Ingraham, let's start with the 15-year modernization plan. Can you give us an update on where we stand in year two of that plan?

Yes, Mr. Chairman. We are currently in the early stages of implementation, but we are making steady progress. In fiscal year 2024, we have allocated over $1.5 billion for OIB modernization projects. This includes major infrastructure upgrades at several of our ammunition plants and depots. We are also seeing the first fruits of our investments in advanced manufacturing, with new robotic welding and 3D printing capabilities coming online. One of our biggest challenges is balancing the need for modernization with the ongoing requirement to support current operations, including our support for Ukraine. We have to modernize while we are still running the engine, so to speak.

General Mohan, to that point, how are you managing the surge in production for munitions like the 155mm shells while also trying to modernize those same production lines?

It is a significant challenge, Chairman. We have seen a massive increase in demand for 155mm ammunition. To meet this demand, we are working 24/7 at many of our plants. At the same time, we are installing new, more efficient production lines. For example, at the Scranton Army Ammunition Plant, we are replacing 1950s-era machinery with modern, automated equipment. This will not only increase our capacity but also improve safety and quality. We are using a phased approach to minimize disruptions to production. It requires very close coordination between our program managers, the plant operators, and our industry partners.

Thank you. My time is expiring. I now recognize the ranking member, Mr. Norcross, for five minutes.

Thank you, Chairman. Secretary Ingraham, I want to follow up on the workforce issue. We know that many of the skilled tradespeople in the OIB are reaching retirement age. What is the Army doing to attract the next generation of workers?

That is a top priority for us, Mr. Norcross. We are taking a multi-pronged approach. First, we are expanding our apprenticeship and internship programs to create a pipeline of talent. We are also partnering with local community colleges and vocational schools to align their curricula with the skills we need. Second, we are looking at our compensation and benefits packages to ensure we are competitive with the private sector. Third, we are investing in the workplace environment itself. Modernizing our facilities makes them more attractive places to work. We are also using direct hire authorities provided by Congress to speed up the hiring process. It is a tough labor market, but we are seeing some success in our recruitment efforts.

General Mohan, how are you using technology to help bridge the skills gap? For example, are you using augmented reality or other tools for training?

Yes, absolutely. We are increasingly using augmented reality and virtual reality for maintenance training. This allows new workers to practice complex tasks in a safe, controlled environment before they ever touch a piece of equipment. We are also implementing digital twins of our production lines, which allows us to simulate changes and identify potential problems before they occur. These technologies not only help with training but also make the work more efficient and accurate. We are also looking at how we can use robotics to take over some of the more repetitive or dangerous tasks, allowing our human workers to focus on higher-value work.

Thank you. I yield back.

Thank you, Mr. Norcross. I now recognize Mr. McCormick for five minutes.

Thank you, Mr. Chairman. Secretary Ingraham, I want to talk about the supply chain. We've seen how vulnerable our supply chains can be, especially for critical components and raw materials. How is the Army working to secure the OIB's supply chain?

Supply chain resiliency is a major focus of our modernization strategy. We are conducting deep-dive assessments of our critical supply chains to identify vulnerabilities, such as single points of failure or reliance on foreign sources. We are working to diversify our supplier base and, where possible, bring production back to the United States. We are also using the Defense Production Act to prioritize orders and invest in domestic production capacity for critical materials. Additionally, we are working with our allies and partners to create more resilient international supply chains. It's a complex challenge that requires constant monitoring and proactive management.

General Mohan, what role does the OIB play in providing surge capacity during a conflict? And how do we ensure that capacity is there when we need it?

The OIB is our primary source of surge capacity. During peacetime, we maintain a warm base of production that can be rapidly scaled up in the event of a conflict. This requires us to maintain excess capacity and to have the necessary tooling and workforce in place. Our modernization plan is designed to increase this surge capacity by making our production lines more flexible and efficient. We are also working to improve our visibility into the entire industrial base, both organic and commercial, so we can better anticipate and respond to surges in demand. The conflict in Ukraine has been a real-world test of our surge capabilities, and we are learning valuable lessons that we are incorporating into our planning.

Thank you. I yield back.

Thank you, Mr. McCormick. I now recognize Mr. Courtney for five minutes.

Thank you, Mr. Chairman. Secretary Ingraham, I'm interested in the role of additive manufacturing, or 3D printing, in the OIB. How is the Army using this technology to reduce lead times and costs for spare parts?

Additive manufacturing is a game-changer for the OIB. It allows us to produce parts on demand, which can significantly reduce lead times, especially for older equipment where the original manufacturer may no longer be in business. We have established several additive manufacturing centers of excellence across the OIB, and we are working to qualify more parts for 3D printing. This not only saves time and money but also reduces the need to maintain large inventories of spare parts. We are also exploring the use of mobile additive manufacturing units that can be deployed to the field to provide on-site repair capabilities for our soldiers.

General Mohan, can you give us an example of how additive manufacturing has been used to support a specific weapon system?

Certainly. One great example is the M1 Abrams tank. We have used 3D printing to produce several components for the Abrams, including brackets and housings that were previously difficult and expensive to source. By printing these parts ourselves, we have been able to get tanks back into the field much faster. We are also using additive manufacturing to create custom tools and fixtures for our maintenance and repair operations. This has improved the efficiency and safety of our workforce. As the technology continues to mature, we expect to see even more applications across all of our weapon systems.

Thank you. I yield back.

Thank you, Mr. Courtney. I now recognize Mr. Gimenez for five minutes.

Thank you, Mr. Chairman. Secretary Ingraham, I want to talk about the cost of modernization. $1.5 billion a year is a lot of money, but is it enough to meet the goals of the 15-year plan?

That's a fair question, Mr. Gimenez. The 15-year plan is an ambitious one, and it will require sustained investment over a long period. While $1.5 billion is a significant amount, we are constantly reviewing our requirements and adjusting our funding requests as needed. We are also looking for ways to be more efficient with the resources we have, such as by using public-private partnerships and other innovative acquisition strategies. The key is to have a predictable and stable funding stream so we can plan and execute these large-scale projects effectively. We appreciate the support of Congress in providing that stability.

General Mohan, how are you measuring the success of the modernization efforts? What metrics are you using to track progress?

We use a variety of metrics to track our progress. These include things like production throughput, lead times, quality rates, and facility condition indices. We also track our progress against specific milestones in the 15-year plan. For example, we track the number of facilities that have been upgraded and the number of new technologies that have been implemented. We also look at workforce metrics, such as recruitment and retention rates and training completion rates. Ultimately, the most important metric is the readiness of our units in the field. If our soldiers have the equipment they need, when they need it, then we know our modernization efforts are succeeding.

Thank you. I yield back.

Thank you, Mr. Gimenez. I now recognize Mr. Davis for five minutes.

Thank you, Mr. Chairman. Secretary Ingraham, I'm concerned about the environmental impact of our OIB facilities. Many of these older plants have significant environmental challenges. How is the modernization plan addressing these issues?

Environmental stewardship is a key component of our modernization strategy. As we upgrade our facilities, we are incorporating modern environmental controls and sustainable practices. This includes things like improving energy efficiency, reducing water consumption, and minimizing waste. We are also working to remediate legacy environmental issues at our older sites. For example, at several of our ammunition plants, we are replacing old, inefficient coal-fired power plants with cleaner energy sources. We are committed to being good neighbors and protecting the environment in the communities where we operate.

General Mohan, how are you working with local communities to address their concerns about the OIB facilities?

We take our relationship with our local communities very seriously. Each of our OIB sites has a dedicated community relations program. We regularly meet with local leaders and residents to discuss our operations and any concerns they may have. We also participate in local events and support community initiatives. We want to be transparent about what we are doing and to ensure that our operations are safe and sustainable. Our workforce lives in these communities, so we have a personal stake in their well-being. We believe that a strong relationship with our local communities is essential to the long-term success of the OIB.

Thank you. I yield back.

Thank you, Mr. Davis. I now recognize Mr. Finstad for five minutes.

Thank you, Mr. Chairman. Secretary Ingraham, I want to talk about the role of small businesses in the OIB supply chain. How is the Army working to increase opportunities for small businesses to participate in the modernization effort?

Small businesses are vital to the OIB and to our national economy. We are committed to providing them with opportunities to compete for our contracts. We have a robust small business program that includes outreach events, training, and mentorship. We also set aside a portion of our contracts specifically for small businesses. In our modernization efforts, we are looking for small businesses that can provide innovative technologies and services. For example, many of the companies providing additive manufacturing and robotics solutions are small businesses. We believe that a diverse and competitive supplier base is essential to our success.

General Mohan, what are some of the challenges that small businesses face when trying to work with the OIB, and how are you helping them overcome those challenges?

One of the biggest challenges for small businesses is navigating the complex federal acquisition process. We are working to simplify our processes and make it easier for small businesses to find and bid on opportunities. We are also providing more information about our future requirements so they can better plan and invest. Another challenge is meeting our rigorous quality and security standards. We provide technical assistance and training to help small businesses meet these standards. We also encourage our large prime contractors to partner with small businesses. We believe that by working together, we can create a more resilient and innovative industrial base.

Thank you. I yield back.

Thank you, Mr. Finstad. I now recognize Mr. Sorensen for five minutes.

Thank you, Mr. Chairman. Secretary Ingraham, I'm interested in the Rock Island Arsenal, which is in my district. Can you give us an update on the modernization projects underway there?

Rock Island Arsenal is a critical part of the OIB, and it is a major focus of our modernization efforts. We are currently investing in several projects at Rock Island, including upgrades to the foundry and the machining facilities. We are also implementing new advanced manufacturing capabilities, such as large-scale 3D printing. These investments will ensure that Rock Island remains a world-class center for the production of artillery and other critical equipment. We are also working to improve the infrastructure at the arsenal, including the roads and utilities. Rock Island has a long and proud history, and we are committed to its future.

General Mohan, how is the workforce at Rock Island adapting to these new technologies?

The workforce at Rock Island is doing an outstanding job. They are highly skilled and dedicated, and they have embraced the new technologies we are implementing. We are providing them with the training they need to operate and maintain the new equipment. We are also seeing a lot of innovation coming from the workforce itself. They are finding new and better ways to use the technology to improve our processes. The culture at Rock Island is one of continuous improvement, and that is essential for our modernization efforts to succeed. We are very proud of the work being done there.

Thank you. I yield back.

Thank you, Mr. Sorensen. I now recognize Mr. Schmidt for five minutes. ...and the workforce. And I think that's a critical part of this. We talk about the facilities, we talk about the equipment, but the people are what make it happen. General Mohan, I'll start with you. Can you talk about the Army's strategy for recruiting and retaining the specialized workforce needed for these modernized facilities?

Yes, sir. Thank you for that question. It is our number one priority. We can have the best machines in the world, but if we don't have the skilled artisans to run them, we're not going to be successful. We've implemented several programs. One is our apprenticeship program, where we're partnering with local community colleges and technical schools to create a pipeline of talent. We're also looking at targeted recruitment bonuses for high-demand skills like high-end welding and CNC machining. But retention is just as important. We're looking at career progression models and ensuring that our wage scales remain competitive with the private sector in those specific geographic regions.

Thank you. Mr. Ingraham, from the OSD perspective, how are we looking at the industrial base workforce across the entire enterprise, not just the Army, to ensure we're not competing against ourselves for the same limited pool of talent?

Chairman, that's a great point. We have the National Defense Industrial Strategy, and a key pillar of that is workforce development. We are working across the services to identify those critical skill gaps. We're also engaging with the Department of Labor and the Department of Education to look at national-level programs. We want to make sure that we are growing the pie, not just fighting over the existing pieces. This includes promoting STEM education and vocational training at earlier stages to build that long-term interest in defense manufacturing.

Thank you. I now recognize the Ranking Member, Mr. Norcross, for his questions.

Thank you, Mr. Chairman. General Mohan, I want to go back to the 15-year plan. We've seen in the past where modernization efforts get started and then funding gets diverted to other immediate operational needs. How are we ensuring that this 15-year plan has the 'stick-to-itiveness' to actually reach completion? What kind of guardrails are in place to protect this funding over the long haul?

Ranking Member, that is a concern we share. The way we've structured this is by breaking it into manageable phases with clear milestones. By showing incremental progress and the resulting increase in readiness and decrease in maintenance costs, we build the case for continued investment. We're also working closely with Army leadership to ensure this remains a top priority in the POM process. The visibility that this committee provides is also a huge help in maintaining that momentum. When we can show that a new facility at Watervliet or Scranton is producing more efficiently, it makes the argument for the next phase much stronger.

I appreciate that. Mr. Ingraham, regarding the supply chain, we've seen vulnerabilities, especially with sub-tier suppliers. How is the modernization of the organic base helping to mitigate some of those risks in the broader commercial supply chain?

The organic industrial base serves as a critical backstop. When a private sector supplier fails or leaves the market, the OIB often has the unique capability to step in. By modernizing our facilities, we increase our capacity to take on that work if necessary. Furthermore, by adopting modern digital engineering and manufacturing standards in our organic plants, we make it easier to integrate with and support our private sector partners. We're creating a more resilient ecosystem where the organic and commercial sides are more interchangeable and supportive of one another.

Thank you. I yield back, Mr. Chairman.

Thank you. I now recognize Mr. McCormick for five minutes.

Thank you, Chairman. General, I want to talk about the technology side. We hear a lot about 'Industry 4.0'—robotics, AI, additive manufacturing. How much of that is actually being integrated into the current modernization projects? Are we just replacing old machines with newer versions of the same thing, or are we fundamentally changing the way we manufacture and maintain equipment?

Congressman, it's definitely the latter. We are not just 'paving the cow path.' For example, at our ammunition plants, we are moving toward highly automated lines that use sensors and data analytics to predict maintenance needs before a breakdown occurs. In our depots, we are using additive manufacturing to produce parts that are no longer in production by the original equipment manufacturers. This saves months of lead time. We are also implementing digital twins of our facilities to optimize workflow and layout before we even move a piece of equipment. It is a fundamental shift in our industrial operations.

That's encouraging to hear. Follow-up on the additive manufacturing: how are we handling the intellectual property issues with the original manufacturers when we start printing our own parts in the organic base?

That is a complex area, Congressman. We are working very hard on our data rights strategy. When we buy new systems now, we are much more aggressive about securing the technical data packages up front. For legacy systems, we often have to negotiate with the OEMs. In some cases, we're looking at licensing agreements where we pay a fee to print the part. Our goal is to have the right to sustain the equipment throughout its lifecycle, and having the digital data to support additive manufacturing is a key part of that negotiation.

Thank you. I yield back.

Thank you. I now recognize Mr. Courtney for five minutes.

Thank you, Mr. Chairman. I want to focus on the energy resilience of these facilities. Many of our organic industrial base sites are quite old and were not built with modern energy efficiency or security in mind. General Mohan, as part of the modernization, are we looking at microgrids or on-site power generation to ensure these plants can keep running even if the local civilian grid goes down?

Yes, sir, absolutely. Energy resilience is a key component of the master plans for each site. We are looking at a variety of solutions, including microgrids, battery storage, and in some cases, renewable energy sources like solar arrays. We've seen from recent events how vulnerable the grid can be, and for a facility like a munitions plant, a power flicker can be more than just an inconvenience; it can be a safety hazard and cause significant production delays. So, hardening our energy infrastructure is a major part of the modernization effort.

And Mr. Ingraham, is there a coordinated effort at the OSD level to share best practices for energy resilience across the different services' industrial bases?

Yes, there is. The Office of the Assistant Secretary of Defense for Energy, Installations, and Environment works closely with us. We have a community of practice where the Army, Navy, and Air Force share what's working and what isn't. We're also looking at innovative financing models, like Energy Savings Performance Contracts, to help fund some of these improvements. It's a high priority because operational energy is a critical vulnerability that we must address.

Thank you. I yield back.

...and the workforce. And so, as we look at the modernization of the OIB, how are we ensuring that we're not just modernizing the equipment, but we're also modernizing the training and the skill sets of the workforce that's going to be operating that equipment?

Congressman, that's a great question. It's a multi-pronged approach. First, as we bring in new equipment, we're working with the OEMs to ensure that the training packages are part of that procurement. But more importantly, we're looking at how we can use technology like augmented reality and virtual reality to provide real-time training on the shop floor. We're also partnering with local community colleges and technical schools to ensure that the pipeline of talent coming into our facilities has the foundational skills needed for a modern manufacturing environment.

And if I could add to that, sir, we're also looking at our internal apprenticeship programs. We have a long history of apprenticeships in the OIB, but we're updating those curricula to include things like robotics, additive manufacturing, and data analytics. We want our workforce to be as high-tech as the platforms they're maintaining.

Thank you. I think that's critical. If we have the best machines in the world but don't have the people who know how to run them or fix them, we're still in a tough spot. I yield back, Mr. Chairman.

The gentleman yields back. I now recognize the gentleman from Kansas, Mr. Schmidt, for five minutes.

Thank you, Mr. Chairman. General Mohan, I want to follow up on some of the comments regarding the supply chain. We've seen significant disruptions over the last few years. How is the Army Materiel Command working to identify vulnerabilities deeper in the supply chain, beyond just the tier one suppliers, to ensure that a shortage of a small component doesn't halt production of a major system?

Congressman, that is a top priority for us. We've stood up a supply chain risk management cell that uses advanced data analytics to map our supply chains down to the third and fourth tiers. We're looking for single points of failure, foreign influence, and financial instability among our sub-tier suppliers. When we identify a risk, we work with our primary contractors to find alternative sources or, in some cases, we look at bringing that capability in-house through additive manufacturing or other organic means. It's about visibility and proactive mitigation rather than just reacting when a part doesn't show up.

And Mr. Ingraham, from an acquisition perspective, are we changing how we write contracts to incentivize that kind of supply chain transparency from our major defense contractors?

Yes, sir. We are increasingly including requirements for supply chain illumination in our major programs. We want our partners to show us where their components are coming from. We're also looking at multi-year procurement authorities, which provide the stability that sub-tier suppliers need to invest in their own capacity and workforce. When a small machine shop knows there's a five-year demand signal, they're much more likely to stay in the defense industrial base rather than moving to commercial work.

Thank you. I appreciate those answers. Mr. Chairman, I yield back.

The gentleman yields back. I now recognize the gentleman from Illinois, Mr. Sorensen.

Thank you, Mr. Chairman. I want to talk about the Rock Island Arsenal, which is in my district. It's a vital part of our organic industrial base. General Mohan, can you speak to the specific modernization efforts planned for the Rock Island Arsenal and how those investments will improve its readiness to support the joint force?

Certainly, Congressman. Rock Island is our center of excellence for additive manufacturing and foundry operations. We're investing heavily there in new 3D printing capabilities that allow us to produce parts that are no longer in production or have long lead times. We're also modernizing the factory floor with automated guided vehicles and improved digital backbone to better integrate the various shops. These investments are directly linked to reducing backlogs and increasing the velocity of our repair and manufacturing cycles.

That's great to hear. And follow-up for Mr. Ingraham: how are we ensuring that the innovations happening at places like Rock Island are being shared across the entire OIB so we're not reinventing the wheel at every depot and arsenal?

We have a formal OIB modernization working group that meets regularly to share best practices and lessons learned. When Rock Island develops a new process for additive manufacturing, that data is shared with Letterkenny, Anniston, and our other facilities. We're also creating a common digital thread so that a design created at one location can be seamlessly executed at another. It's about creating an integrated network of facilities rather than a collection of independent islands.

Thank you. I yield back.

The gentleman yields back. I now recognize the gentleman from Minnesota, Mr. Finstad.

Thank you, Mr. Chairman. I'd like to focus on the role of small businesses in the OIB modernization. Often, the most innovative solutions come from small, agile companies, but they often struggle with the 'valley of death' between a successful pilot and a full-scale contract. Mr. Ingraham, what steps is the Army taking to make it easier for small businesses to contribute to OIB modernization?

Congressman, you've hit on a very important point. We're using Other Transaction Authorities, or OTAs, much more frequently to lower the barrier to entry for non-traditional defense contractors. We're also hosting 'industry days' specifically focused on OIB challenges to give small businesses a clear understanding of our needs. Additionally, we're working to streamline our internal processes so that once a technology is proven, we can move to a production contract more quickly. We recognize that for a small business, time is money, and a long delay can be fatal.

General Mohan, from an operational standpoint, how do you integrate these small business innovations into the day-to-day workflow of a large depot like Anniston or Red River?

We use what we call 'innovation labs' at several of our facilities. These are dedicated spaces where small businesses can bring their tech, plug it into our systems, and test it in a real-world environment without disrupting the main production lines. If it works, we then look at how to scale it. This 'try before you buy' approach allows us to move faster and gives the small business immediate feedback from the actual users on the shop floor.

Thank you. I yield back, Mr. Chairman.

The gentleman yields back. I now recognize the gentleman from North Carolina, Mr. Davis.

Thank you, Mr. Chairman. I want to touch on the environmental and energy aspects of modernization. As we upgrade these facilities, many of which are quite old, what opportunities are we taking to improve energy efficiency and reduce the environmental footprint of our OIB operations?

That's a key part of our 15-year modernization plan, Congressman. We're looking at everything from LED lighting and high-efficiency HVAC systems to on-site renewable energy generation like solar arrays. Many of our older buildings have very poor insulation and outdated power systems. By modernizing the infrastructure, we're not only saving money on utility bills, but we're also making the facilities more resilient to power outages. We're also looking at closed-loop water systems and better waste management for our industrial processes to reduce our environmental impact.

And Mr. Ingraham, are there specific funding streams or partnerships with the Department of Energy that the Army is leveraging for these green modernization efforts?

Yes, sir. We work closely with the Office of the Assistant Secretary of the Army for Installations, Energy, and Environment. We're also utilizing Energy Savings Performance Contracts, where private companies invest in the upgrades and are paid back through the energy savings over time. This allows us to make these improvements without needing large upfront appropriations. It's a win-win for the taxpayer and the environment.

Thank you. I yield back.

The gentleman yields back. I now recognize the gentleman from Florida, Mr. Gimenez.

Thank you, Mr. Chairman. General Mohan, I'm interested in the data security aspect of a modernized, connected OIB. As we move toward 'smart factories' with more sensors and networked machines, we're also increasing the cyber attack surface. How are we protecting our industrial control systems from foreign adversaries who might want to sabotage our production capabilities?

Congressman, cybersecurity is baked into every aspect of our modernization plan. We're working closely with Army Cyber Command to implement zero-trust architectures and robust monitoring of our industrial networks. We're also ensuring that the equipment we purchase has security features built-in from the start. It's not just about protecting the data; it's about protecting the physical processes. We conduct regular 'red team' exercises to find vulnerabilities before an adversary does. It's a constant battle, but one we are very focused on.

And what about the workforce? Are we training the folks on the shop floor to recognize potential cyber threats, like a suspicious USB drive or an unusual machine behavior?

Absolutely. Cyber hygiene is now a mandatory part of our annual training for all employees. We want every worker to understand that they are a part of our cyber defense. We've also established clear reporting procedures so that if someone sees something out of the ordinary, it gets investigated immediately. A culture of security is just as important as the technical firewalls.

Thank you. I yield back.

The gentleman yields back. I now recognize the gentleman from Connecticut, Mr. Courtney.

Thank you, Mr. Chairman. I'd like to talk about the long-term funding stability for the OIB. We've seen in the past that when budgets get tight, facilities and maintenance are often the first things to be cut. How can we ensure that this 15-year modernization plan stays on track even through different administrations and changing budget priorities?

Congressman, that's the million-dollar question. One way we're addressing this is by clearly linking OIB modernization to operational readiness. We're showing that an investment in a new machine today leads to a faster turnaround for a tank or a helicopter tomorrow. When we can demonstrate that direct impact on the warfighter, it makes the funding much harder to cut. We're also working to institutionalize the OIB modernization plan within the Army's long-term budget process, so it's not seen as a one-off project but as a core requirement.

General Mohan, do you feel you have the necessary authorities to manage these funds flexibly across the different facilities as priorities shift, or are there legislative changes that would help you manage the OIB more like a business?

We've made some progress with the Working Capital Fund, which gives us some flexibility, but more could be done. For example, being able to carry over funds across fiscal years for multi-year modernization projects would be very helpful. Currently, the 'use it or lose it' mentality at the end of the fiscal year can lead to sub-optimal spending. More flexibility in how we manage our capital investment program would allow us to be more strategic and get better value for the taxpayer.

Thank you. I yield back, Mr. Chairman.

The gentleman yields back. I now recognize the gentleman from Georgia, Mr. McCormick.

Thank you, Mr. Chairman. I want to go back to the workforce issue. We're seeing a lot of competition for skilled labor, especially in the Southeast. How is the Army competing with the private sector for these highly skilled technicians and engineers? Are we able to offer competitive wages and benefits, or are we relying solely on the mission to attract talent?

It's a challenge, Congressman. We can't always match the top-tier private sector salaries, but we offer a very competitive total compensation package, including excellent benefits and job security. But you're right, the mission is a huge draw. Many of our employees are veterans or have family members in the service, and they take great pride in knowing that the work they do directly supports the soldier in the field. We're also using recruitment and retention bonuses for high-demand skills, and we're looking at more flexible work arrangements where possible.

Mr. Ingraham, are we looking at ways to use more automation to offset some of these labor shortages? If we can't find enough people, can we use more robots?

Yes, sir. Automation is a key pillar of our modernization strategy. We're looking at robotics for repetitive or dangerous tasks, like painting, welding, and moving heavy materials. This not only helps with labor shortages but also improves safety and quality. However, automation doesn't replace the need for skilled people; it just changes the skills they need. We still need people to program, maintain, and oversee those robotic systems. So it's a shift in the workforce, not a total replacement.

Thank you. I yield back.

The gentleman yields back. I now recognize the Ranking Member, Mr. Norcross.

Thank you, Mr. Chairman. I want to follow up on the 'valley of death' comment. We often see great technology developed in our labs that never makes it to the shop floor. Mr. Ingraham, how are we bridging that gap specifically for OIB modernization? Is there a dedicated 'transition' fund or process to ensure that successful R&D projects actually get implemented in our depots and arsenals?

Ranking Member Norcross, we've established the OIB Modernization Accelerator, which is specifically designed to pull technology through that valley. It provides a dedicated pathway and funding for scaling up proven technologies. We're also involving the depot commanders and shop floor supervisors much earlier in the R&D process. If they have 'skin in the game' and see the value early on, they're much more likely to champion the technology when it's ready for implementation. It's about breaking down the silos between the R&D community and the industrial base.

General Mohan, can you give us an example of a technology that has successfully made that transition recently?

One great example is the use of cold spray technology for part repair. This was developed in our labs and is now being used at several of our depots to repair worn components that previously would have been scrapped. It's saving us millions of dollars and significantly reducing lead times for critical parts. Another is the use of autonomous mobile robots for material handling at our distribution centers. These were piloted, proven, and are now being rolled out across the enterprise. These aren't just 'cool' technologies; they are providing real operational benefits every day.

Thank you. I yield back, Mr. Chairman.

The gentleman yields back. I'll recognize myself for a few follow-up questions. General Mohan, we've talked a lot about the 15-year plan. Can you talk about the 'quick wins' we've seen in the first couple of years? What are some of the immediate improvements that have been made that are already making a difference?

Mr. Chairman, some of the most immediate impacts have come from relatively simple infrastructure upgrades. Replacing old, leaky roofs and outdated HVAC systems has significantly improved the working environment and reduced downtime due to weather or equipment failure. We've also seen great results from our 'lean' initiatives, where we've reorganized shop floors to improve the flow of materials and reduce wasted movement. These don't always require high-tech solutions, but they provide immediate boosts to productivity and morale. We're also seeing the benefits of our initial investments in additive manufacturing, which are already helping us overcome supply chain bottlenecks for low-volume parts.

And Mr. Ingraham, as we look at the next five years of the plan, what are the biggest risks you see to its successful execution? Is it funding, workforce, supply chain, or something else?

I would say it's a combination of funding stability and workforce. If we have a year or two of significant budget cuts or even just flat funding, it will throw the whole 15-year schedule off and likely increase the total cost in the long run. And as we've discussed, finding and keeping the right people is a constant challenge. We can buy all the fancy machines we want, but if we don't have the skilled workforce to operate and maintain them, the plan will fail. So those are the two areas where we need the most consistent support from Congress.

Thank you. I think that's a very fair assessment. Does any other member have any additional questions for our witnesses?

Mr. Chairman, if I could just ask one more. General Mohan, we've seen the impact of the war in Ukraine on our stockpiles. How has that conflict changed your thinking about the surge capacity of the OIB? Are we building in enough 'slack' in the system to handle a sudden, massive increase in demand?

Ranking Member, Ukraine has been a wake-up call for all of us. It has highlighted the need for greater surge capacity, particularly in munitions and certain spare parts. Our modernization plan now includes a much greater focus on 'warm' production lines that can be quickly scaled up. We're also looking at how we can better leverage our commercial partners to provide additional capacity during a crisis. It's not just about having more machines; it's about having the agility to shift production quickly and the supply chain depth to support it. We are definitely incorporating those lessons learned into our long-term strategy.

Thank you. I yield back.

Thank you. I want to thank our witnesses for their testimony today and for their service to our country. This is a critical issue for our national security, and we appreciate your leadership in modernizing our organic industrial base. The committee will continue to work closely with you to ensure you have the resources and authorities you need. With that, this hearing is adjourned. [Gavel sounds.]