Secretary Stackley, in your opinion, what is the incentive for the contractor to negotiate price reductions with the Navy in good faith?

Based on the current performance of the ship and modules, are you comfortable with the LCS comprising one-third of the Navy's surface combatant fleet by 2027?

The Navy reported an estimated $4.8 billion in savings associated with early retirement of the seven CGs and two LSDs.

Thank you, Mr. Chairman.

What can we do to prevent this kind of cost overrun, which I can tell you in my constituents' minds is unacceptable when we have a terribly damaged economy in my home State of Arizona.

But the budget request, Admiral Myers, is $10.9 billion. Is that correct?

You are either not going to get your new assault vessel or you are not going to get the amphibious ships or the amphibious ships will not be the level of readiness that you need.

A $3 billion lesson.

Let me close by expressing my concern for Marine Corps readiness.

Just as a comment, Mr. Chairman, is it not true that with all this equipment coming back from Afghanistan, the load on these depots is dramatically increased?

When you look at the costs of the high speed in the water issue, in retrospect, it is just nonsense.

It is nice to see you again, General.

This places the Marine Corps at serious risk in their ability to respond to near-term contingency operations.

I think it might motivate Members of Congress and the American people to understand how devastating the effects would be.

I hope that we would make the American people aware of the effects of another, I believe, $52 billion reduction in defense spending.

Secretary Hagel plans to announce this afternoon that DOD will furlough about 800,000 civilian employees to pay for the budget cuts under sequestration for 11 days.

I look forward to the testimony of the witnesses.

The current fiscal situation has caused the Department of the Navy to assume significant risk in shipbuilding programs needed by the Marine Corps to accomplish their missions.