A closed hearing to examine low-cost munitions; to be immediately followed by an open hearing at 11:00 a.m. in SD-G50

Defense Posture and Global ThreatsSenate Armed Services · 2026-03-24 · 119th Congress
The Senate Armed Services Committee held this open hearing as a follow-on to a closed session examining the Department of War's efforts to develop and scale low-cost munitions alongside traditional "exquisite" weapons systems. Begins at 0:30:09
Transcript
Highlights

Title

Balancing low-cost and exquisite munitions production

Purpose

The Senate Armed Services Committee held this open hearing as a follow-on to a closed session examining the Department of War's efforts to develop and scale low-cost munitions alongside traditional "exquisite" weapons systems. Senior acquisition officials from the Joint Staff, Navy, Army, and Air Force testified on industrial base strategy, new-entrant contracting, and the balance between low-cost and high-cost munitions production. The hearing followed the closed session and resumed with witness statements. Begins at0:30:09

Who spoke

Chair Roger Wicker (R-MS)0:30:09: Opened the open session and directed witnesses to summarize their closed-session testimony0:30:09; pressed repeatedly on the 97%/3% split between exquisite and low-cost munitions funding in the November 2025 Munitions Acceleration Council plan, asking what mix and timeline would be appropriate0:42:590:44:360:46:23; asked how Ukraine's rapid weapons iteration compares to U.S. practices1:08:41.

Sen. Jack Reed (D-RI), Ranking Member0:30:00: Submitted his opening statement for the record0:30:00; raised concerns about the Department's $1 billion equity investment in L3Harris to spin off its solid rocket motor business, questioning whether it would inhibit competition given L3Harris is one of only two qualified solid rocket motor providers0:50:160:51:13; asked about workforce shortages as a chokepoint in munitions production0:56:36.

Lt. Gen. Whitney (Joint Staff, J9)0:30:39: Described his role overseeing resources and assessment on the Joint Staff supporting the Chairman and Vice Chairman0:30:39; said low-cost and exquisite munitions form a "high-low mix" and both are needed0:31:07; on the L3Harris deal, said it was a $5 billion total investment with $4 billion from L3Harris and $1 billion in government equity funding, part of a broader industrial-base framework0:51:28; declined to project a target percentage mix, saying he lacked a "crystal ball"0:44:49.

Vice Adm. Okano (Navy)0:31:38: Said the Navy needs "deeper magazines" now to compete0:31:38, outlined a three-phase strategy to stabilize, diversify, and scale the industrial base0:32:21; said equity is an appropriate financial tool for capital-intensive solid rocket motor production so companies aren't debt-burdened0:52:24; said four destroyers currently carry low-cost munitions with eight more being installed0:45:41; cited a 155mm artillery round cost of about $30–$60 per round, without data on China's cost1:06:31.

Lt. Gen. Lozano (Army)0:36:18: Described Army efforts to bring nontraditional companies into acquisition using Other Transaction Agreements0:37:28; highlighted the company Zone Five (formerly referenced as "custodian" in captions) building the Blackbeard low-cost cruise missile system in New Mexico0:37:53; said multiple solid rocket motor companies are emerging that should sustain competition despite the L3Harris deal0:53:24; said directed energy, electronic warfare, and high-power microwave systems all have roles in layered and homeland defense0:58:200:59:32; cited a $160,000 per-round cost for Hellfire-equivalent production, without China comparison data1:07:08.

Brig. Gen. Lyons (Air Force)0:40:10: Outlined three Air Force priorities: worldwide operational support, sustaining active production lines, and executing both exquisite and affordable-mass munitions programs0:40:40; said Zone Five's cruise missile went from contract to flight prototype in 16 months versus a typical five-to-ten years, crediting fast requirements and open systems architecture0:46:570:47:19; described the APKWS rocket motor's success against drones in Europe and plans to scale production0:59:451:01:01; described the "pelletized" cruise missile program in development for 14 months, with Air National Guard involvement in testing being explored1:02:05; on Ukraine, said their product iteration cycle of days is far faster than U.S. processes and drew a parallel to lessons from IED countermeasures in Iraq/Afghanistan that were "thrown in the trashcan" after the threat receded1:09:531:11:08.

Sen. Ted Budd (R-NC)0:57:48: Asked about the highest-return directed energy technology (lasers vs. high-power microwaves)0:57:48; asked about scaling counter-UAS air-to-air weapons and North Carolina's C-17 Air National Guard role in pelletized munitions testing0:59:451:01:53.

Sen. Tim Sheehy (R-MT)1:03:04: Raised range access as a persistent bottleneck for contractors testing new weapons systems1:03:04; asked about torpedo industrial base capacity given recent use1:05:41; pressed on cost comparisons with China and Russia, citing information that Russia produces artillery shells for roughly 8% of the U.S. cost and China produces missiles for 5–10% of U.S. cost, arguing the gap stems from process, not capability or materials1:07:191:07:42; warned "economic warfare" logistics costs could hurt the U.S. in a prolonged conflict1:08:36.

Sen. Deb Fischer (R-NE)1:12:38: Asked witnesses to identify key acquisition barriers to increasing weapons production1:12:41; pressed Brig. Gen. Lyons, as a new acquisition executive, on how to change department culture to move faster and embrace commercially available technology1:17:31.

Key moments

Wicker highlighted that the November 2025 Munitions Acceleration Council plan allocates roughly 97% of funds to exquisite high-cost munitions and only 3% to low-cost alternatives, and pressed all four witnesses for a target ratio; none would commit to a specific number, with Lt. Gen. Whitney saying he had no "crystal ball" and Brig. Gen. Lyons saying only that the low-cost share "needs to be greater than zero"0:42:590:44:490:50:04.

Sen. Reed challenged the Department's $1 billion equity investment in L3Harris's solid rocket motor spinoff, questioning whether it would block market entry for other companies given L3Harris is one of only two qualified providers0:50:16; Vice Adm. Okano defended equity as necessary for a highly capital-intensive industry with no real commercial market0:52:24.

Brig. Gen. Lyons detailed how Zone Five went from contract award to flying prototype in four months and full production readiness for the extended-range attack munition in 14 months, versus a typical five-to-ten-year timeline, crediting streamlined requirements, open systems architecture, and design for scale from day one0:47:190:41:56.

Sen. Sheehy cited figures suggesting Russia produces artillery shells for about 8% of U.S. cost and China produces equivalent missiles for 5–10% of U.S. cost, arguing the gap reflects U.S. acquisition process inefficiency rather than capability differences1:07:42.

Vice Adm. Okano cited a $30–$60 per-round cost for 155mm artillery shells and Lt. Gen. Lozano cited $160,000 per round for Hellfire-equivalent production, but both said they lacked data on Chinese or Russian equivalent costs1:06:311:07:08.

Brig. Gen. Lyons said Air Force integration of the APKWS air-to-air weapon (costing $5,000 to $1 million to defeat a one-way attack drone) onto F-15s and F-16s followed insight gathered from a fall 2024 trip to Europe on the drone threat1:00:081:00:40.

Discussing Ukraine, Brig. Gen. Lyons said Ukrainian forces iterate weapons designs in "a couple of days," much faster than U.S. processes, and Sen. Sheehy connected this to earlier U.S. success rapidly countering IEDs in Iraq and Afghanistan — an organizational capability he said was dismantled once the threat receded1:10:191:11:08.

Lt. Gen. Lozano said the Army is requesting budget flexibility from appropriators to buy munitions as needs change dynamically, rather than being bound to prior-year budget requests, and cited funding-line consolidation as a parallel reform1:15:05.

Vice Adm. Okano said the Navy is moving about 70% of systems command personnel into Portfolio Acquisition Executive structures to be "mission-aligned" rather than "compliance-aligned"1:18:20.

Sen. Sheehy and Brig. Gen. Lyons both said range access for testing is a longstanding bottleneck across contractors and services, with Lyons noting some tests originally scheduled for October 2026 were completed a month earlier due to leadership prioritization1:03:361:05:13.

Metadata

CommitteeSenate Armed Services
Chamber / CongressSenate · 119th Congress
Date2026-03-24
TypeMeeting
Witnesses
(none listed in event metadata)
Videosenate-isvp
Transcript157 caption blocks · 7,088 words · 1:21:39 runtime
EventCongress.gov 338080