AILow-cost munitions strategy and industrial base scaling for the Pentagon

Defense Posture and Global ThreatsSenate Armed Services Subcommittee on Cybersecurity · 2026-03-24 · 119th Congress
The Senate Armed Services Subcommittee on Cybersecurity (sitting as the full committee's format for this session) held an open hearing following a closed session to examine how the Department of Defense is scaling production of low-cost, high-volume munitions alongside traditional "exquisite" weapons systems. Begins at 0:30:09
Transcript
Highlights

Title

Low-cost munitions strategy and industrial base scaling for the Pentagon

Purpose

The Senate Armed Services Subcommittee on Cybersecurity (sitting as the full committee's format for this session) held an open hearing following a closed session to examine how the Department of Defense is scaling production of low-cost, high-volume munitions alongside traditional "exquisite" weapons systems. Witnesses from the Joint Staff, Navy, Army, and Air Force testified on acquisition strategy, industrial base investment, new nontraditional contractors, and lessons from Ukraine's rapid weapons iteration. Begins at0:30:09

Who spoke

Chair Roger Wicker (R-MS)0:30:09: Opened the hearing, noting a prior closed session; pressed witnesses on the November 2025 Munitions Acceleration Council plan allocating roughly 97% of funds to exquisite munitions versus 3% to low-cost alternatives, asking what the right mix should be0:42:59; asked how Ukraine is complementing exquisite weaponry with low-cost systems1:08:41.

Sen. Jack Reed (D-RI), Ranking Member0:30:00: Submitted his opening statement for the record0:30:00; raised concerns about DoD's roughly $1 billion equity investment in L3Harris's solid rocket motor spinoff potentially inhibiting competition, since L3Harris is one of only two qualified solid rocket motor providers0:50:16; asked about workforce skill shortages as a chokepoint in munitions production0:56:36.

Lt. Gen. Jason Whitney, Joint Staff (J9)0:30:39: Described his role overseeing resources and assessment on the Joint Staff0:30:39; said he lacked "a crystal ball" to project the right exquisite/low-cost mix0:44:49; characterized the L3Harris deal as a $5 billion total investment with $4 billion from L3Harris and about $1 billion in government funding0:51:28; called Ukrainian innovation "out of this world"0:59:35.

Vice Adm. Brendan Okano0:31:38: Said the Navy needs "deeper magazines" and needs them "now"0:31:38; argued for stabilizing existing production lines via multiyear procurement while bringing on new entrants, citing four destroyers now equipped with low-cost counter-UAS munitions and eight more being installed0:45:19; defended the L3Harris equity investment as an appropriate financing tool for a capital-intensive industry with no real commercial market0:52:24; said 155mm artillery rounds currently cost the U.S. about $30 to $60 each but he could not compare that to China's costs1:06:31.

Lt. Gen. Christopher Lozano, Army0:36:18: Described Army efforts to bring nontraditional companies into munitions acquisition, highlighting Castelion's Blackbeard low-cost long-range strike system, built with the company's own capital and now constructing a New Mexico production facility0:37:53; said the Army currently produces Hellfire missiles for about $160,000 per round and does not know China's equivalent cost1:07:08; discussed directed energy, high-power microwave, and electronic warfare as complementary layered-defense tools, including for homeland base defense0:58:20.

Brig. Gen. Matthew Lyons, Air Force0:40:10: Detailed the Air Force's low-cost munitions portfolio, including the Extended Range Attack Munition and Family of Affordable Mass Munitions cruise missiles, noting Zone 5's contract-to-first-flight timeline of 16 months versus five to ten years for traditional programs0:46:57; described the APKWS air-to-air counter-drone weapon costing $5,000 to $1 million per engagement against one-way attack drones1:00:08; said Russia reportedly makes artillery shells for roughly 8% of U.S. cost and China's missile equivalents cost 5-10% of U.S. cost, attributing the gap to process rather than capability [after Sen. Sheehy's comments, 1:07:27]; described learning from Ukrainian front-line visits that rapid product iteration is critical, sometimes occurring "in a couple of days"1:09:53.

Sen. Ted Budd (R-NC)0:57:48: Asked about the highest-return directed energy technologies (lasers vs. high-power microwaves)0:57:48; asked about scaling the APKWS counter-drone weapon and the role of North Carolina Air National Guard C-17s in testing1:01:53.

Sen. Tim Sheehy (R-MT)1:03:04: Raised range access as a persistent bottleneck for contractors testing new weapons systems1:03:04; asked Vice Adm. Okano about sustaining torpedo production given recent combat use1:05:41; argued the U.S. cost disadvantage versus China and Russia stems from acquisition process rather than capability gaps, invoking "amateurs talk tactics, experts talk logistics, this is economic warfare"1:07:42; recounted IED countermeasure iteration lessons from Iraq and Afghanistan that he said the Pentagon abandoned after the threat receded1:11:08.

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

Key moments

Chair Wicker highlighted that the November 2025 Munitions Acceleration Council plan allocates about 97% of funds to exquisite munitions and only 3% to low-cost alternatives, and pressed all four witnesses for a target ratio; none would commit to a specific number0:42:590:44:490:50:04.

Sen. Reed challenged the roughly $1 billion DoD equity investment in L3Harris's solid rocket motor spinoff, warning it could inhibit competition since L3Harris is one of only two qualified providers0:50:16; Lt. Gen. Whitney clarified it is a $5 billion total investment, $4 billion from L3Harris itself0:51:28.

Brig. Gen. Lyons described the Zone 5 low-cost cruise missile program going from contract to flying prototype in 16 months versus a traditional five-to-ten-year timeline, after evaluating over 100 companies, narrowing to 17 viable and four flown0:46:570:47:19.

Sen. Sheehy stated Russia produces artillery shells for roughly 8% of U.S. cost and China produces equivalent missiles for 5-10% of U.S. cost, arguing the gap stems from acquisition process, not capability or material cost, calling it "economic warfare"1:07:191:08:05.

Brig. Gen. Lyons said the Air Force's APKWS counter-drone weapon, costing $5,000 to $1 million, achieved recent combat success against one-way attack drones after insights gathered from a fall 2024 trip to Europe1:00:08.

Vice Adm. Okano said four Navy destroyers currently deploy low-cost counter-UAS munitions with eight more being installed, and described new low-cost torpedo variants (a low-cost Mark 54 and the "Raptor," a low-cost Mark 48) now in testing0:46:091:06:00.

In an exchange on lessons from Ukraine, Sen. Sheehy recounted that U.S. forces once iterated IED countermeasures daily during Iraq/Afghanistan but "promptly wadded up the organization and threw it in the trashcan" once the threat receded, urging the Pentagon not to relearn lessons the hard way1:11:081:11:36.

Lt. Gen. Lozano said the Army is requesting budget flexibility from appropriators to buy munitions as needs change dynamically, rather than being bound to two-year-old budget requests1:15:05.

Vice Adm. Okano said the Navy is moving about 70% of systems command personnel into Program Executive Offices to align them with mission rather than compliance1:18:20.

The Army's Lt. Gen. Lozano confirmed multiple solid rocket motor companies are emerging in the market space, and Brig. Gen. Lyons said conversations about expanding beyond the L3Harris arrangement to other suppliers are ongoing but unresolved0:53:240:54:59.

Metadata

Official titleHearings to examine enterprise security and information technology operations of Department of Defense networks and systems; to be immediately followed by a closed session at 3:45 p.m., in SVC-217.
CommitteeSenate Armed Services Subcommittee on Cybersecurity
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 338086