[House Hearing, 115 Congress] [From the U.S. Government Publishing Office] [H.A.S.C. No. 115-29] MILITARY PILOT SHORTAGE __________ HEARING BEFORE THE SUBCOMMITTEE ON MILITARY PERSONNEL OF THE COMMITTEE ON ARMED SERVICES HOUSE OF REPRESENTATIVES ONE HUNDRED FIFTEENTH CONGRESS FIRST SESSION __________ HEARING HELD MARCH 29, 2017 [GRAPHIC NOT AVAILABLE IN TIFF FORMAT] __________ U.S. GOVERNMENT PUBLISHING OFFICE 25-095 PDF WASHINGTON : 2017 ---------------------------------------------------------------------------------------- For sale by the Superintendent of Documents, U.S. Government Publishing Office, http://bookstore.gpo.gov. For more information, contact the GPO Customer Contact Center, U.S. Government Publishing Office. Phone 202-512-1800, or 866-512-1800 (toll-free). E-mail, [email protected]. SUBCOMMITTEE ON MILITARY PERSONNEL MIKE COFFMAN, Colorado, Chairman WALTER B. JONES, North Carolina JACKIE SPEIER, California BRAD R. WENSTRUP, Ohio, Vice Chair ROBERT A. BRADY, Pennsylvania STEVE RUSSELL, Oklahoma NIKI TSONGAS, Massachusetts DON BACON, Nebraska RUBEN GALLEGO, Arizona MARTHA McSALLY, Arizona CAROL SHEA-PORTER, New Hampshire RALPH LEE ABRAHAM, Louisiana JACKY ROSEN, Nevada TRENT KELLY, Mississippi Dave Giachetti, Professional Staff Member Craig Greene, Professional Staff Member Danielle Steitz, Clerk C O N T E N T S ---------- Page STATEMENTS PRESENTED BY MEMBERS OF CONGRESS Coffman, Hon. Mike, a Representative from Colorado, Chairman, Subcommittee on Military Personnel............................. 1 Speier, Hon. Jackie, a Representative from California, Ranking Member, Subcommittee on Military Personnel..................... 2 WITNESSES Brilakis, LtGen Mark A., USMC, Deputy Commandant for Manpower and Reserve Affairs, United States Marine Corps.................... 3 Burke, VADM Robert P., USN, Chief of Naval Personnel, United States Navy.................................................... 3 Grosso, Lt Gen Gina M., USAF, Deputy Chief of Staff for Manpower and Personnel Services, United States Air Force................ 5 Peterson, MG Erik C., USA, Director, Army Aviation, United States Army........................................................... 6 APPENDIX Prepared Statements: Brilakis, LtGen Mark A....................................... 32 Burke, VADM Robert P......................................... 38 Coffman, Hon. Mike........................................... 31 Grosso, Lt Gen Gina M........................................ 46 Peterson, MG Erik C.......................................... 58 Documents Submitted for the Record: [There were no Documents submitted.] Witness Responses to Questions Asked During the Hearing: [There were no Questions submitted during the hearing.] Questions Submitted by Members Post Hearing: Ms. Rosen.................................................... 71 Ms. Speier................................................... 69 MILITARY PILOT SHORTAGE ---------- House of Representatives, Committee on Armed Services, Subcommittee on Military Personnel, Washington, DC, Wednesday, March 29, 2017. The subcommittee met, pursuant to call, at 2:00 p.m., in room 2118, Rayburn House Office Building, Hon. Mike Coffman (chairman of the subcommittee) presiding. OPENING STATEMENT OF HON. MIKE COFFMAN, A REPRESENTATIVE FROM COLORADO, CHAIRMAN, SUBCOMMITTEE ON MILITARY PERSONNEL Mr. Coffman. The hearing comes to order. I want to welcome everyone to the Military Personnel Subcommittee hearing on the shortage of pilots in the military services. Today, we will hear from the services on their progress toward increasing the retention of military pilots, both officers and warrant officers. We know that pilot demand is increasing in the commercial sector, and the demand to hire qualified military pilots is higher than the available pool of candidates. This demand has led to a shortage of pilots across the services, with the problem being particularly acute in the United States Air Force, with a deficit at this point of over 1,000 total pilots. And we are here today to hear from the armed services on their plans to stem the exit of pilots from the military. We know we cannot buy our way out of this problem since the military cannot compete with the potential salaries and, in some cases, the lifestyle of the commercial airlines. So we must make sure the services are using all the levers in their control, from an increase in bonuses to changes in the assignment system to changes in promotion to incentives, these pilots--to incentivize these pilots to remain in the military. The Military Personnel Subcommittee will take every opportunity to thoroughly review and discuss the way forward to stop the outflow of military pilots. I look forward to hearing from the witnesses to understand the scope of the pilot retention problem and to assess the proposed resolutions for the services in increasing retention. Before I introduce our panel, let me offer Ranking Member Speier an opportunity to make opening remarks. Representative Speier. [The prepared statement of Mr. Coffman can be found in the Appendix on page 31.] STATEMENT OF HON. JACKIE SPEIER, A REPRESENTATIVE FROM CALIFORNIA, RANKING MEMBER, SUBCOMMITTEE ON MILITARY PERSONNEL Ms. Speier. Mr. Chairman, thank you. And thank you to our witnesses who are here today. The Armed Services Committee has been receiving quite a bit of testimony over the last few months on the issue of readiness. There remains some debate on the severity of the readiness crisis or even whether it exists at all. For the most part, the solutions being considered by the administration and Congress involve vast funding increases so that the Department can buy new equipment and end strength. The shortage of military pilots does, of course, have a direct impact on readiness. So the reaction to the shortage has typically been along the same veins: to throw more money at the problem in the form of cash retention bonuses. But without addressing the root causes, this will do little to stem the departure of valuable experienced military pilots. As the witnesses and several members of the subcommittee are well aware, our service members are not in it for the money. Military pilots serve for love of country and for love of flying. There are many reasons besides money that military pilots leave the service for the private sector, including family concerns and a desire for more stability, too few flying hours, and too many assigned tasks unrelated to flying. Today, I am interested in hearing how each of the services are working to identify these root causes and how you use that analysis and the authorities Congress has provided to better target nonmonetary incentives as well as monetary in order to increase retention. I am also interested to hear what joint initiatives you may be undertaking together across services. It costs millions of dollars and years of training to produce just a single aviator. I am not telling you something you don't already know. We therefore need to ensure we are thinking broadly and creatively about how best to retain the skilled aviators the Nation needs. Thank you, and I look forward to your testimony. Mr. Coffman. Thank you, Ms. Speier. We will give each witness the opportunity to present his or her testimony and each member an opportunity to question the witnesses for 5 minutes. We would also respectfully remind the witnesses to summarize, to the greatest extent possible, the high points of your written testimony in 5 minutes or less. Your written comments and statements will be made part of the hearing record. Let me welcome our panel: Lieutenant General Mark A. Brilakis, Deputy Commandant for Manpower and Reserve Affairs, United States Marine Corps; Vice Admiral Robert P. Burke, [Deputy] Chief of Naval Operations; Lieutenant General Gina M. Grosso, Deputy Chief of Staff for Manpower and Personnel Services, United States Air Force; Major General Erik C. Peterson, United States Army, Director, Army Aviation. With that, General Brilakis, you are recognized for 5 minutes. STATEMENT OF LTGEN MARK A. BRILAKIS, USMC, DEPUTY COMMANDANT FOR MANPOWER AND RESERVE AFFAIRS, UNITED STATES MARINE CORPS General Brilakis. Thank you, Mr. Chairman. Chairman Coffman, Ranking Member Speier, and distinguished members of the subcommittee, I appreciate the opportunity to appear before you today to provide an overview of the Marine Corps inventory of pilots and aviators. Since the first Marine aviator flew in 1912, our pilots, like all marines, have answered the Nation's call, faithfully serving the American people and maintaining a first-class standard of military excellence. Today, Marine aviation is providing critical support to combat operations, and the Marine Corps is and will continue to be our Nation's expeditionary force in readiness. Aviators and our aviation maintenance personnel are critical to our ability to meet the continued and increasing operational commitments, operational tempo, and challenging deployment-to-dwell ratios. While the Marine Corps does not currently have a shortage of aviation personnel, we are experiencing a shortage of trained aviators, particularly in specific platforms, and gaps in the necessary qualifications of our enlisted maintenance personnel. This is in large part exacerbated by current readiness issues with our aircraft. Addressing these issues is one of mine and the Deputy Commandant for Aviation's highest priorities. Aviation readiness in the form of Ready Basic Aircraft and the resources to operate them throughout the year is the single most important factor in alleviating our aviation manpower challenges and contributing to retention. Our responsibility to train and to retain the best aviators and maintainers for our Corps is an operational imperative for us. We vigorously attack the accession and retention of all our Marine occupational fields, and doing so for the aviation field is particularly important due to the time and expense required to train these marines. We will continue to closely monitor the trends of our aviators, and we will take action should we begin to see a retention problem so that your Corps remains the most ready when the Nation is the least ready. Thank you for the opportunity to present this testimony. [The prepared statement of General Brilakis can be found in the Appendix on page 32.] Mr. Coffman. Vice Admiral Burke, you are now recognized for 5 minutes. STATEMENT OF VADM ROBERT P. BURKE, USN, CHIEF OF NAVAL PERSONNEL, UNITED STATES NAVY Admiral Burke. Thank you, Chairman Coffman, Ranking Member Speier, and distinguished members of the subcommittee for this opportunity to discuss the status of naval aviation retention. I am honored to represent the men and women of the United States Navy. Naval aviation today is strong, the most capable maritime air force in the world, and our deployed units are ready to respond to any challenge. It is made up of more than 190,000 military and Navy civilian personnel, including 10,250 Navy pilots and naval flight officers, who safely and effectively maintain, operate, and train with approximately 3,700 aircraft in support of worldwide carrier-based and expeditionary missions, to include combat operations. On any given day, two to five of our nine carrier air wings are deployed, returning from a deployment, or preparing to deploy. Our ability to sustain this effort depends upon a number of factors, among the most critical of which is our people. So I am here today to outline the current risks and projected manning challenges facing naval aviation and what we must do to sustain peak combat readiness. Our ability to attract and retain the very best young men and women our Nation has to offer is central to maintaining aviation personnel readiness. A number of factors are making this challenge increasingly complex, including an improving economy with low unemployment and increasing opportunity for employment in the private sector, particularly within the commercial airline industry. Additionally, naval aviators have expressed dissatisfaction with the quality of service, resulting from readiness challenges associated with limited aircraft availability and reduced flying hours while not deployed, which have inhibited timely attainment of tactical qualifications and subsequent career progression. Those who wear the cloth of this Nation do not do so for the money but rather to be part of something bigger than themselves. Historically, we have also been able to positively influence retention behavior by providing a fair compensation package, but more importantly, we provide an enticement few other employers can offer: a call to service. However, the allure of service is diminished when readiness shortfalls inhibit sailors' ability to get the job done. Today, aviation depots struggle to get our airplanes through maintenance periods on time. These delays impact the time sailors have to train and hone their skills prior to deployment. Such challenges are further exacerbated by low stocks of critical spare parts and an aging shore infrastructure. While our first team on deployment is always ready, our bench, the depth of our forces at home, is thin and is growing increasingly frustrated. Additionally, operational tempo, uncertain deployment schedules, excessive administrative burdens, and quality-of-life issues for sailors' families, including late permanent change of station orders and limited housing options, especially in non-fleet concentration areas, adversely affect individuals' decisions to stay Navy. Restoring short-term fleet readiness will require sufficient and predictable funding, which will allow our pilots to fly the hours needed to maintain optimum proficiency and ensure our ability to conduct timely maintenance on our airframes. It would also enable the Navy to restore stocks of necessary parts, return more aircraft to operational status, and better prepare them to remain deployed, as required. Finally, it would allow our pilots to do what they want to do, which is to fly. We will continue to aggressively pursue resolution of aviator retention challenges through effective and responsible use of available resources and refinements to our plans and processes for recruiting, developing, retaining, and addressing the quality of service needs of our aviators. We welcome your assistance, look forward to working with you to address the challenges we face, and we appreciate your continued support for initiatives designed to help us achieve optimum personnel readiness, improve quality of service, and retain the best and brightest young men and women this Nation has to offer. Thank you, and I look forward to your questions. [The prepared statement of Admiral Burke can be found in the Appendix on page 38.] Mr. Coffman. Thank you, Vice Admiral Burke. Lieutenant General Grosso, you are now recognized for 5 minutes. STATEMENT OF LT GEN GINA M. GROSSO, USAF, DEPUTY CHIEF OF STAFF FOR MANPOWER AND PERSONNEL SERVICES, UNITED STATES AIR FORCE General Grosso. Thank you, Chairman Coffman, Ranking Member Speier, and distinguished members of the subcommittee for the opportunity to discuss the status of the Air Force pilot shortages and our efforts to address it. America's Air Force has been globally engaged for the last 26 years in combat operations. During that time, we have provided air dominance through global vigilance, global reach, and global power for our joint force. Make no mistake: your Air Force is always there. However, being always there comes at a cost to equipment, infrastructure, and, most importantly, our airmen. And we are now at a decision point. Sustained global commitments and recent funding cuts affect capacity and capability for a full- spectrum fight against a near-peer adversary. Compounding this issue, an upcoming surge of mandatory retirements for airline pilots and an increasing market for global commerce is causing the civilian aviation industry to begin hiring at unprecedented rates. This confluence of circumstances has birthed a national aircrew crisis. This crisis is the result of multiple factors: high operational tempo over the last 26 years, a demand for our pilots from the commercial industry, and cultural issues that affect the quality of life and service for our airmen. As we closed fiscal year 2016, the total force, including our Active, Guard, and Reserve Components, was short 1,555 pilots across all mission areas. Of this amount, the total force was short 1,211 fighter pilots. It should be noted that the cost to train a fifth-generation fighter pilot to prepare him or her for their first operational squadron is approximately $11 million. A 1,200 fighter pilot shortage amounts to a $12 billion capital loss for the United States Air Force. Civilian aviation companies are actively recruiting the world-class experience of our rated airmen because Air Force pilots are highly attractive with their diverse experience and quality aviation training. Outpacing RAND's 2016 study, major airlines hired more than 4,100 pilots last year, and they increased the salary of their pilot force by an average of 17 percent. These annual hiring levels are expected to continue for the next 10 to 15 years. Civilian job prospects are not the sole reason the Air Force is losing talent. A 2015 exit survey revealed additional influences to leave include too many duties unrelated to flying, inability to maintain work-life balance, and availability of civilian jobs, in that order. The Air Force's plan to address these shortfalls is three- pronged: reduce requirements, increase production, and increase retention. The Air Force reduced the number of pilots filling operational planning positions in order to prioritize manning at flying squadrons. We also are leveraging our total force partners to bolster staff and operational planning positions, deployments, and in pilot training units, as appropriate. The Air Force recognizes the need to increase pilot production and will expand undergraduate pilot training to maximum capacity at 1,400 pilots a year. Future increases in throughput will require additional manpower, infrastructure, operations, and maintenance resources. From a retention perspective, the Air Force is implementing many nonmonetary programs to strengthen the culture and improve the quality of life and service for our airmen. For example, we reduced additional duties, eliminated non-mission-essential training courses, and outsourced select routine administrative tasks and operational squadrons, just to name a few. All of these efforts give time back to our aviators so they can focus on their primary duty: flying. We are also grateful for your support to authorize an increase in the aviation bonus to $35,000 a year, the first increase in 18 years. Through a tiered business case analysis, we will identify areas of greatest need to retain pilots in exchange for a commitment beyond their initial service commitment. We are also considering incentives for hard-to-fill assignments, when many airmen choose to separate from service in lieu of accepting the assignment. The Air Force is committed to a holistic strategy to maintain our pilot inventory as we face external and internal challenges. While we aggressively pursue creative means to respond to the demands on our pilots, our attention will be focused on developing an agile set of solutions. We will not hesitate to seek your support for revised or new authorities and resources, as appropriate. We appreciate your support as we address the competition for our talented aviators and move out on bold and innovative solutions. Thank you for your time today on this important matter. I look forward to your questions. [The prepared statement of General Grosso can be found in the Appendix on page 46.] Mr. Coffman. Lieutenant General Grosso, thank you so much for your testimony. Major General Peterson, you are now recognized for 5 minutes. STATEMENT OF MG ERIK C. PETERSON, USA, DIRECTOR, ARMY AVIATION, UNITED STATES ARMY General Peterson. Chairman Coffman, Ranking Member Speier, and distinguished members of the subcommittee, I appreciate the opportunity to discuss Army Aviation pilot shortages and our mitigation strategy. Army Aviation is an asymmetric advantage for our joint air- ground team, providing the reach, protection, lethality, and situational understanding required to win. At the foundation are our highly trained Army Aviation professionals. The pilot component of our Total Army aviation force consists of 14,000 rated aviators across the Regular Army, the Army National Guard, and the Army Reserve. Several years of sustained fiscal constraints have required the Army to make difficult resourcing choices. Out of necessity, we have prioritized short-term readiness over long- term recruiting and training. We simply could not afford to train the number of new pilots we need to sustain a healthy force, a growing challenge that is masked by relatively healthy current aggregate strength. Specifically, we have accumulated a shortage of 731 Regular Army aviation warrant officers across year groups 2010 through 2017. We are temporarily sustaining acceptable aggregate pilot manning by relying on senior aviation warrant officers to fill junior positions, over 25 percent of which are retirement eligible. We are addressing these challenges and we will build long- term readiness through three lines of effort: retention, training throughput, and accessions. Retention of experienced pilots is key to mitigating 7 years of constrained training throughput. Although overall Army retention is healthy, we have seen a recent increase in Army Aviation warrant officer attrition from 7 to 9 percent annually. Given growing commercial demand, we expect this trend to continue unless addressed. In anticipation, we are formalizing targeted incentives that encourage pilots to continue their Army aviation careers and to retain those who achieve advanced qualifications. Additionally, we are correcting the accumulated deficit in our training throughput by fully resourcing our flight school. Fully resourcing our flight school is not a quick fix, and it must be phased in over several years. It will require consistent funding at increased levels to be successful. We are also increasing our aviation warrant officer accessions in concert with the increased throughput of our pilot training. Over the next 3 years, we will increase our Regular Army aviation warrant officer accession training throughput by nearly 170 students annually. In summary, we are addressing our pilot manning challenges while simultaneously meeting our enduring requirements. We currently have the sufficient authorities to implement our pilot retention, training throughput, and accessions increase. However, sustained, predictable, on-time funding, and relief from the Budget Control Act are vital to any enduring solution that we attempt to apply. Mr. Chairman, Ranking Member, distinguished members of the committee, thank you for your enduring support of our Army and your shared commitment to our Nation's defense. [The prepared statement of General Peterson can be found in the Appendix on page 58.] Mr. Coffman. Thank you, Major General Peterson. I wish to thank--oh. I won't do that again. So, if we look at the biggest reason on the demand side of this equation, I think it is two factors, and I don't know which one is dominant. So one factor is you have got an aging population of pilots on the civil aviation side, and that might have been aggravated by the fact that they increased the retirement age for pilots and so--and now we are hitting that increased retirement age. And so we are seeing some significant retirements. So that is obviously part of the demand side. But a significant part of the demand side too, I would think, is that, in response to an aviation accident--I am trying to remember what year it was. I think it was in New York State. General Grosso. 2012, I think. Mr. Coffman. 2012? There were--the reaction to that was to plus-up the number of hours required to, I believe, 1,500 flight hours---- General Grosso. Yes, sir. Mr. Coffman [continuing]. For the civilian airlines, FAA [Federal Aviation Administration] requirement. And so the quickest way to get that is to look at the military, because that is very hard to get on the civilian side. And so--and I don't know if that--if the FAA needs to revisit that number, if that was an overreaction to that accident or not, but that does seem excessive. So that is on the demand side. And then--so, on the supply side, I believe, I know, Lieutenant General Grosso, you briefed me on a retention bonus structure that you want to put forward. Do you want to tell the subcommittee about that? And before you do, let me just preface it by saying that I really think that, within the National Defense Authorization Act [NDAA], there really needs to be an econometric reevaluation of that number on an annual basis that will adjust accordingly. This situation is not going to last forever. It is demand-and-supply curve, and eventually that demand is going to be satiated at some level. General Grosso. General Grosso. Thank you, Chairman Coffman. Sir, you are correct. In accordance with the guidance we received in the 2017 authorization act, we did come up with a business model to understand where our greatest need was. And this model is the model we use to give all special and incentive pays across every skill set in the Air Force, which is about $927 million across the Air Force, but it has four factors: manning, retention, replacement costs, and replacement time. And manning is weighted at 40 percent, retention at 40 percent, replacement cost at 10 percent, and replacement time at 10 percent. And basically you put all these numbers together, and you get rank ordering. And based on the increase in the bonus, which you gave us in the 2017 NDAA as well, we looked at the greatest need, and we stair-stepped it down to match the weapons systems that were most in need in accordance with your direction. And we will do this every single year. So the program we come out with this year could look different than the program we come out with next year because, to your point, the environment may change, and people that choose to come and go will change. Mr. Coffman. Is the bonus structure the same across the board? Are you--do you mirror the Air Force, or do you all have your own structure that you are looking at? General Brilakis. General Brilakis. Sir, thank you. And, first of all, thank you to the Congress for the authorities in the NDAA. Since 2011, the Marine Corps has not paid a retention bonus to pilots. Our inventories were solid, and attrition was not a challenge. Now, what we did, we came down from 202,000, and we have arrived at 182,000. In doing that, in leveraging all the authorities that you gave us, the priority was to reduce numbers of marines. And we saw an unequal reduction. And our retention, which is ideally about 91 percent for aviators, in the officer community, fell down to 86 and 87 percent. So we lost some aviators. We have made that up through accessions. And our challenge right now is I have got about 500, just over 500 officers still in the training pipeline, more than I need. Mr. Coffman. Okay. General Brilakis. Okay? This year, the Commandant, because, in addition to reducing the size of the force, we are introducing new type/model/series into the inventory, the F-35, we are continuing the MV-22, the new versions of the Cobra and Huey, et cetera, the Commandant is going forward requesting from the Secretary of the Navy and the Secretary of Defense authority to pay a retention bonus in three communities: F-35; F-18, because the legacy platforms are our most challenged platform right now; and then the V-22. F-35 and V-22 are currently growing communities, and we don't want to be caught short in those aviation communities. When we came down in the reduction, what we found is we are a bit imbalanced. We have got more majors and lieutenant colonels than is preferred. We have fewer company-grade officers than we really need to be flying in our tactical squadrons. And so we want to make sure that we have the opportunity and leverage to maintain those young officers as they come out of their required commitment to us and capture them for that extra bit of time before we have got them by the throat. Mr. Coffman. Thank you, General Brilakis. Ms. Speier, you are now recognized. Ms. Speier. Thank you, Mr. Chairman. Thank you all for your service to our country. General Grosso, the $35,000 bonus, I am presuming that that is not going to be a check that is presented to the airman on day one. General Grosso. That is correct, ma'am. Aviators in the Air Force have a 10-year pilot service commitment. So that is when they graduate from the undergraduate pilot training. So that training takes a year, and after that year, they have a 10-year commitment. So it is typically at the 11th year of service that an airman would be offered some form of bonus should we need it. Ms. Speier. But is that $35,000 given in a lump sum, or is it given per year based on the number of years that the aviator would continue to serve? General Grosso. So it can be a range of options. And every year we look at this differently. This year we are proposing to offer contracts for a year, 2 years, 5 years, 9 years, and 13 years, and you can take some of that up front, and some of it will be anniversary payments. Ms. Speier. So no one aviator is going to get a $35,000 check, or will they? General Grosso. It would--if they took it for a year, yes, ma'am, they would. And they would--they would owe us an additional year Active Duty service commitment. Ms. Speier. So, conceivably, an aviator would stay a total of 2 years and get a $35,000 bonus in day one? What happens if they decide to just quit? Do you claw that back? General Grosso. Yes, ma'am. Yes. You must recoup. And the thinking on the 1 year was because of the work that we are doing on the culture piece, those things take time. And we have to build trust with our airmen, because after significant long periods of conflict where we took our eye off the ball a little bit, we have talked about putting resources back in the squadron. One of our chief's primary goals is to revitalize the squadron, and we think that is getting traction, but that will take time. And we have gotten feedback from airmen they--if they--they are going to give us a year, basically. So they are going to take it for a year and see if we really mean what we say with some of these quality of life and quality of service, and then that gives them a chance to relook and take--in another year say, ``Hey, are we doing better? Is my family in a good place? Did you do what you say you are going to, Air Force?'' And then, next year, they will go into a new--we will look at the environment; we will look at what our retention patterns look like. Ms. Speier. Okay. I am trying to get another question in. I particularly wanted to talk about nonmonetary inducements. And I noted that, in the report, there was a reference made to 260 days away during deployment for some of these aviators and 110 days away even when you are on home temporary duty. So those are long stretches away. And in your actual statement, General Grosso, there is a chart here that shows that actually the ranking of the lure of civilian jobs is much lower than additional duties, which was at 37 percent, and maintaining work-life balance and meeting family commitments, which was at 31 percent. Availability of civilian jobs was at 24 percent. So I think the lure of commercial airline jobs, while it does have some allure, I think addressing those top two would be significant. So, to each of you, I would like to ask the question in a minute 36, what, if anything, you are doing to try and address the nonmonetary issues. General Brilakis. Thank you, Ranking Member Speier. We did a survey about 18 months ago, and talking to our enlisted force and our officers on those issues of most importance to them. Flying hours is the number one concern. They want more time in the cockpit. They want more time in the back. Number two was the parts available to get those aircraft up so they could do that flying. And then the last--the third issue, which was of most concern to them, was the cycle, the tight cycle. As you know, the Marine Corps is on about a 1-to-2 ratio for deployment to dwell, and that is a very tight cycle. So three concerns: one, they want more time to fly; they want more parts to fix; and they would like a little bit more time at home. Ms. Speier. Okay. Admiral Burke. Admiral Burke. Yes, ma'am. Similar situation for the Navy as the Marine Corps. It is flying time first. Again, they are getting plenty of it while they are deployed. Our deployment lengths had ramped up considerably as our force size went down over the course of 15 years, while our, you know, number of ships at sea on any given day remained the same. That is starting to come under control now. The things like PCS [permanent change of station] move lead times shrank down as we used PCS funding as a means of making our top-line budget come within under control. So families were getting a month, month and a half of lead time to move in the summer going to non-fleet concentration areas where it was difficult to find housing and things of that nature. And then just other sort of normal quality-of-service types of things, administrative distractions, career flexibility. We have really been using the tremendous flexibility that you gave us with the Career Intermission Program to good effect, particularly in the aviation community. We have had 13 aviators in, and 9 have come through it. In fact---- Ms. Speier. Okay. My time has expired. Let's see if we can---- Mr. Coffman. Go ahead. Admiral Burke. Sir, we just had a female O-4, was one of our top helicopters pilots that would have gotten out. We were able to convince her to take advantage of the Career Intermission Program so that she could get out. She was married to a naval aviator as well. And she got out, started a family. Just finished her intermission. Came back in, did her department head tour, did absolutely phenomenally, last week screened for commanding officer. So another success story there. But it is things like that where we have to add the career flexibility while our pilots are out of the cockpit to do life things and come back in and reenter the cockpit and be competitive in their careers. Mr. Coffman. Mr. Russell, you are now recognized for 5 minutes. General Grosso. Ma'am, we also have done--I would put it-- -- Ms. Speier. Actually, maybe you could fold your answers into responses. Mr. Coffman. We can come back to that. Ms. Speier. Oh. We will come back to that question. Mr. Coffman. Mr. Russell, you are recognized for 5 minutes. Mr. Russell. Thank you, Mr. Chairman. And I appreciate all of the things that you do. A couple of the questions--it is bonus question time. How much does American Airlines offer bonuses up to their pilots, for regional pilots? Bueller? Anyone? It is $35,000. Interesting figure. And so, you know, once again, we go in this chasing around that the $35,000 is some astronomical figure, when the reality is that is competitive to what the airlines are providing to very junior pilots in the course of their careers. And, you know, the phrase that comes to mind is nothing's too good for the troops, and nothing's what they get, you know. So I applaud, you General Grosso, for putting together the proposals for the bonuses. They do retain. And, General Peterson, if I may, because of your extensive background in 160th SOAR [Special Operations Aviation Regiment], you are a very unique pilot with a very unique background. If you don't have the types of pilots in our special ops aviation community, what impact does that have on the missions that our Rangers and our special operations forces [SOF] community do that we rely so heavily on for most of our missions? Could you speak to that for a little bit? General Peterson. Without the retention of hand-selected and then exceptionally highly trained aircraft commanders, pilots, and command--air mission commanders, one, we would not be able to accomplish the complex missions in support of our elite SOF ground forces that our Nation asks us to do. The physical skill, the planning ability, the judgment, the maturity, and the leadership would not be present, and we would not have the ability to accumulate and grow that in support of the missions that they are asked for. Further, we would not be able to sustain those capabilities over time. Those same leaders that are selected and are retained at some cost and investment are also the mentors and teachers for the next generation. So they serve to accomplish their missions today, but they also grow the next generation that our Nation will rely upon. Mr. Russell. Well, I can tell you from my own experiences, even as a combat infantryman, without helicopters to have conveyed us to a location, we would have had a lot less options on how to get to the enemy. And even without the United States Air Force, our paratroopers would have no delivery capability of any length to get to or even logistics or emergency supply parts or any number of things. So, really, this pilot shortage goes beyond just having, you know, somebody with the flight suit and standing next to the aircraft with a cool picture. It literally is everything that our military relies on no matter what their capacity is. And yet a typical warrant--you are talking about the aging of the warrant population. Even a W4, what are they making? $60,000 a year? I am not sure what it would be today. Anybody have an idea of what that would be? General Peterson. It would be closer to $80,000 a year. Mr. Russell. 80? Okay. So $80,000. And yet it takes $11 million to train a pilot to their first combat mission. Now, you know, I am not a mathematics major or a rocket scientist, but, you know, $11 million or $35,000. Let's see, retain them a couple more years or not. It seems like a good investment because when we don't do it, much like the cliff that we had with our air traffic controllers in the 1980s, when President Reagan said, ``Okay, fine, you want to protest; we will just hire a bunch of new ones,'' and they did, but then they all left in one shot. And 25 percent of the pilot force just in the Army, not only are you losing your most experienced warriors as they go out of the cockpits and out of the service, but you don't readily replace them, and then you are not going to have the incentive to bring them in. And so I just want to say, for the record, I applaud what you do. We have to fix the problem. We can't ignore it and we can't say: ``Hey, you know, we will give you some busted up, you know, Army relief service furniture or something in your quarters, and that will be a good incentive for you.'' We have to do better. So, with that, I am out of time. And thank you, Mr. Chairman. Mr. Coffman. Thank you, Mr. Russell. Mr. Gallego, you are now recognized for 5 minutes. Mr. Gallego. Thank you, Mr. Chairman. This is really for all the witnesses. So better data is obviously critical in shaping the response to the emerging pilot shortage we have in the military. Have we undertaken a comprehensive survey to better understand the pilot attitudes, whether it is across the services or each individual services or within each individual MOS [military occupational specialty], or whatever it is called on the officer level, and the factors that drive their decisions to either renew their commitments to serve or to pursue other careers with commercial airlines or just outside the military altogether? And we can just start from left to right with Lieutenant General Brilakis. General Brilakis. Thank you very much, Representative Gallego. As I said earlier, about 18 months ago, we pursued a specific survey to take a look at both officer and enlisted attitudes. We got good information from that. We are working on a longitudinal set of surveys that will cover a marine either from their first enlistment all the way through a 30-year career. It allows us to go in and take a look at attitudes on retention and separation, et cetera. So we believe that that will provide us better information in the future. The specific targeted survey that we did gave us really great feedback. It is not about money. It is not necessarily about jobs. It is about doing what they came into the Marine Corps to do, which is to fly airplanes, fix airplanes, and then serve those aircraft. On the officer side, our challenge is the number of Ready Basic Aircraft. It has been an issue. We have worked hard through it. And having those aircraft available to get that flight time, get the marine--get the pilots those hours per month that are necessary. On the enlisted side, it is the same thing. It is the satisfaction of seeing an aircraft you are responsible for actually take off loaded with bombs to go do the mission. And so those are the things we are working on as well. On our enlisted side, we are looking at--we do bonus for retention, but we are also looking to--seeking to capture experience, to retain it into--in the squadrons, and that is another initiative we are bringing forward this year. But you are absolutely right. Data is important. And we have specific data for right now, but we are working on having better data for the future. Mr. Gallego. Thank you. Admiral Burke. Yes, sir. We do the exact same approach in the Navy, looking at everything from things that will inform our entire portfolio of Sailor 2025 efforts, which is aimed at everything under the nonmonetary aspect of things, everything from how we do detailing and assignments processes, to evaluations and fitness reports, to promotion boards and promotion policies, all the way down to, you know, our physical fitness programs and health and wellness things. But in addition to looking at all that data and our family services and spousal employment and all those sorts of aspects, I mean, we have a very good pulse on exactly where we stand with retention at our critical points. We target our retention bonuses for our naval aviators at the two critical points, which are department head, which is at the lieutenant commander level for naval aviators, and then at the post-command level after they have had O-5 or commander command. And we vary the rate at which we pay the bonuses by the type, model, and series of aircraft. And that is really largely a reflection of what their opportunities, how their job skills might translate into the outside job markets. And we know exactly how many have committed, because the contract lengths are designed to obligate them through that critical career milestone. So we have a very good indicator at all times of how many we have committed. And we talk to them almost on a weekly basis, how many are on the fence, how many are likely to say yes, and how many are definitely going to say no. So we keep a pulse of that all the time, and that helps inform our force management, if that answers your question. General Grosso. We do, sir. We have--there is a survey you will see in the written statement, which is a retention survey that goes to the entire force every other year, and that is the data that Ranking Member Speier pointed out. But we also have exit surveys, and an exit survey is a person that has told us they are going to leave. They have established what we call the date of separation. And so that gives you sort of more real- time thinking. And that--from our pilots, the data is about the same. Maintaining work-life balance is the number one reason, and that is 45 percent. Availability of civilian jobs is 28 percent. And the potential to leave your family. And if you think about an aviator, over their 12 years of commitment, in a 1-to-3 dwell, every 3 years, they have deployed 180 days. And they come back, because they are not proficient in the high-end fight, they go on TDY [temporary duty] a lot to get proficient again. So, when you are forcing the--sort of looking at their options, in the structure of the civilian airline industry, there is an incentive to get in early. So I realize I am out of time, but---- Mr. Coffman. Go ahead, please, General Grosso. Go ahead and finish. General Grosso. So the way the civilian industry is structured, it is a sort of first-in/move-up system. So, as you are at the 12-year point and you are looking back on a very busy life and things that we need do better on quality of service, which we are looking on, they say, ``Gosh, should I get out and start my line number''--many of them affiliate in the Reserve Component--so that they can start that successful second career for their family. And that is why that 12-year point is very important from a civilian hiring. And we know, we have data going back 30 years, that as airline hiring goes up, retention goes down, and we can correlate that. Mr. Coffman. Mr. Bacon, you are now recognized for 5 minutes. Mr. Bacon. Thank you, Mr. Chairman. I appreciate all four of you being here today again for subcommittee. Grateful to you. What I would like to ask those who are doing the bonus, do we have some data that shows that it is actually effective, that it is a good return on investment, because we know how many people sign up for the bonus, but how do we know how many of those would have signed up anyway to stay in? Do we have some data that shows that this does bring a sizeable number over? And the genesis of my concern is a lot of the reasons people are getting out has very little to do with the money itself; it is more about the other factors that were mentioned here. So just curious, can we correlate the number of folks that take the bonus by percentage or that said that that was the main reason why they stayed in? General Grosso. I can't correlate it that way, but what I can tell you, we did look: people that don't take the bonus, 96 percent separate. So we do know that people that don't take the bonus separate, and we do know that about two-thirds of them go to the airlines. So one-third don't. But to your point, there is no question that you are paying some people to stay. So we think--I think all of us would agree, one-third, one-third, one-third, but because it is such a precious resource and because we invest so much money to make them, we think the tradeoff is worth it. Mr. Bacon. But we are not really too sure how many of those who sign up for the bonus would have stayed in anyway. General Grosso. No. You are correct. Mr. Bacon. Okay. Admiral Burke. Similar situation for the Navy. You just-- you get to the point where, for some individuals, it could be economic, right. Exactly right. General Peterson. With respect to the Army, sir, we are not applying the bonus at this point to our overall forces. We have used it as a targeted incentive in our special operations community only. And we feel like we have very good return on investment and trends with that very small population, but we are anticipating employing some of these incentives beginning in fiscal year 2018. Mr. Bacon. Okay. And I know you are not doing the bonus, I don't believe, on the Marine side, right? General Brilakis. No, sir. This year for--in fiscal year 2018, we will, for the first time since 2011, we will offer a retention bonus in three communities, because those are the communities where we believe we have some concerns. But to your point, statistically, analytically, et cetera, there is really not a whole lot of connection between paying a bonus and guaranteeing retention. Mr. Bacon. It seems to me that we could get that data with a little bit of research and asking the right questions, because I think it would help make the case better that this is a good investment, seeing direct correlation of more people signing up. Just my thoughts. Thanks, Mr. Chairman. I yield back. Mr. Coffman. Thank you, Mr. Bacon. Let's see. Mr. Abraham, you are now recognized for 5 minutes. Dr. Abraham. Thank you, Mr. Chairman. By trade, I am a physician, and when I refer a patient to a heart surgeon, I hopefully always send them to the best, because they actually hold a life in their hands, much as your aviators do. The difference is they also hold the life in their hand while, by the way, dodging bullets. So it is a whole different dynamic on the level of our--not only our military aviators, but our military personnel in all. The other aspect is the intellectual knowledge base of an aviator that has been in service for 10 to 11 years is phenomenal, and I would compare that to a top tier executive level in a company as IBM, one of the big ones. And when they give them bonuses, they are not talking thousands; they are talking millions of retention bonuses to keep that intellectual property in place. Major General Peterson, I will ask you the question first. How does a CR [continuing resolution] for the remainder of fiscal year 2017 affect pilot shortage? General Peterson. In the very straight, simple terms, sir, it stops our initiatives to mitigate this. We will not be able to increase the throughput in our flight school with respect to investments in additional instructor pilots, contract instructor pilots, contract maintenance, as well as sustained additional airframes for the school. So it will essentially defer this problem another year until we have the requisite funding that has been budgeted for by the Army to implement these incentives. And then we will get closer to that cliff that we discussed about with the top-heavy population, the disproportionate top-heavy retirement eligible population. Dr. Abraham. If we carry that forward with an imposition of sequestration in 2018, what does that do for your readiness? General Peterson, I will start with you. General Peterson. In addition to exacerbating the pilot readiness challenge that we have, we will suffer readiness hurdles. With respect to airframe material readiness, very significant and important modernization programs will either be halted or slowed, to include the CH-47 Block 2, the Improved Turbine Engine Program, the Future Vertical Lift initiative and program. Probably the most salient and important is that we will slow or defer very important protection and countermeasures initiatives that are underway right now. Dr. Abraham. Other comments on the CR 2017, how will it affect each of y'all's services? If you don't mind going down the line. General Brilakis. Sir, if I--yeah. Real quickly, sir, very similar to General Peterson. We won't be able to execute the bonuses that we would like to. Our retention season actually begins in July. So that will be impacted. The funds that are available to do that won't be available. We will by the summertime have to basically idle 24 flying squadrons. Dr. Abraham. Wow. General Brilakis. And then on top of that, with the lack of spares and repair parts, we are going to take a step backwards on the readiness efforts that we have done to bring back the number of Ready Basic Aircraft that are available for our pilots to fly. Dr. Abraham. Admiral Burke. Admiral Burke. For the Navy, we would be forced to reduce flight hours across all Navy aviation; 15 to 20 percent reduction in fleet replacement training squadrons. Those are the training squadrons. One-third of our junior aviators would not be able to complete basic qualifications and certifications. So squadrons going forward would be 20 to 30 percent undermanned, and that would pay forward for several years. I would be forced to cut accessions by a thousand going forward in April. That would translate directly to gapped billets at sea and ashore, including ultimately pilots, instructors, and aviation maintenance folks. And then there would be impacts to PCS fundings, which would cause delays in issuing orders and quality of service and quality of life, as we have discussed earlier. And then, similar to what General Brilakis laid out, we would have to stop bonus payments on most critical skills. So it would impact retention of, you know, experienced and specialized sailors, including aviation officers and aviation maintenance rates. Dr. Abraham. General, real quick. General Grosso. I echo--I mean, very much like the other services, it would have a devastating impact on our readiness, and we would have to stop flying, which has all the other negative consequences of trying to keep these aviators in the force. Dr. Abraham. Thank you, Mr. Chairman. Well, just one comment. You know, it is my understanding that now it is difficult not only to maintain just currency but certainly to maintain readiness. And those are two different numbers of flight hours, I understand that; to be able to just to fly the plane but to be able to fly and fight are two completely separate and distinct issues. Thank you, Mr. Chairman, for the indulgence. Mr. Coffman. Dr. Wenstrup, you are now recognized for 5 minutes. Dr. Wenstrup. Thank you, Mr. Chairman. Thank you all for being here today. One question. What is tougher right now, recruitment, initial recruitment, or retention? What do you have the most trouble with? If we can go down the line. General Brilakis. Sir, fortunately, neither is a problem. Admiral Burke. Navy overall recruiting is good. We just made our 120th consecutive month of meeting our recruiting mission. We are seeing beginnings of fraying at the edges. Overall, retention is good, although we are seeing individual specific areas, such as aviation officers, nuclear rates, special operations forces, and information warfare, you know, cryptological types of rates--we are having individual retention challenges there, but we are able to manage those with the authorities we have right now. General Grosso. We have no issue recruiting talented people to be aviators. Our sole issue is retention, and we are not retaining enough to sustain the force. General Peterson. We are not facing challenges with recruiting either. However, that recruiting pool is artificially restrained because of our throughput challenges due to tough fiscal decisions. We are seeing leading indicators of impending retention challenges based on the retirement eligibility of our force as well as the increase in commercial demand. Dr. Wenstrup. And I just have another point of curiosity, I guess. You are getting exit information, exit surveys. On the exit survey, do you ask them why they joined to begin with, or do you know that on entry? I imagine the entry reason is pretty much the same for everybody, to be honest with you, for many reasons, wanting to serve, et cetera, but on their exit, do you ask them why they joined? And I am just curious what changed for them to want to leave. General Brilakis. So what our experience--I commanded the recruiting force for a couple of years. So we had the opportunity to kind of watch that. And you are right. I mean, the American youth join the service in general for a number of predictable reasons. Why they join each different service, again, some predictable reasons. Why they leave, sometimes it is the opportunity to remain in the Marine Corps. We only retain about 27 percent of every year's cohort because two-thirds of our force is in the operating forces and about one-third is in the supporting establishment. And it is a young force; it is a fighting force. When I answered your question, I was talking about the aviation enterprise, aviation maintainers, et cetera. We have some retention issues in the cyber force and some of the high- demand, low-density MOSes. Some of the reasons folks leave those is because there are opportunities on the outside. I mean, I can take a cyber marine who is getting paid maybe $55,000 a year; he is leaving and picking up a job for about $190,000 plus. Those are challenges that--I don't think you are going to give us enough money to throw at those particular problems, but why they come and why they go have been pretty much standard across the board. The thing that is amazing right now is, with the employment rate as low as it is, we are still finding good people who want to serve. Dr. Wenstrup. That is good to hear. Good Americans. I am referring more to aviation than anything else. Admiral. Admiral Burke. I think a lot of people--well, now that you have changed the question to be specific to aviation, I mean, they join for the adventure and to be that part of something bigger than themselves. And I think they find that here and they are generally very happy with it. Why they leave, I mean, all the reasons we talked about earlier, but then there is the family separation thing. We ask a lot of our folks, and it is not for everyone. Dr. Wenstrup. I am guessing a lot, when they enter, are younger, for one, and possibly single at the time. Admiral Burke. They grow up and mature, and things change. Dr. Wenstrup. Yeah. General. General Grosso. Yes, I would agree with that. They are just at different points in their life. And I think you make decisions depending on your situation 12 years later, which is very different than when you joined. Dr. Wenstrup. Right. General Peterson. Although I can presume that trends are probably the same, I am not aware of any specific question that we are asking on an exit survey that would substantiate that. Dr. Wenstrup. All right. Thank you. I yield back. Mr. Coffman. Mr. Kelly, you are now recognized for 5 minutes. Mr. Kelly. Thank you, Mr. Chairman. And, General Peterson, I am going to start with you real quick and talk about ARI [Aviation Restructure Initiative]. And they asked about--or they were going to get UH-72 Lakotas to modernize and enhance pilot training at Fort Rucker, where they train our aviation pilots in the Army. The goal was to retire the older fleet and create a more relevant, safer, and cost- effective training. Could you update us on how the modernization of helicopter pilot training is progressing, to include observations from the initial pilot training classes on the Lakota trainer? General Peterson. Our modernization efforts are slowed a bit right now, just partially due to fiscal decisions on our fielding plans for the Lakota as well as some ongoing litigation. The Lakota is proving to be an exceptionally reliable and very beneficial trainer. It is too early to comprehensively substantiate the full benefit. What we do know is that the use of a more complex aircraft in initial pilot training, a twin-engine aircraft with essentially a modern glass cockpit, is translating very well to the assimilation of skills in the combat aircraft that the initial-entry aviators transition into for their subsequent training phases. And we are looking forward to substantiating that and objectively documenting that as we get to the pure fleet. At this point, we are roughly half-and-half, with respect to the very early phases, with our legacy fleet training aircraft and the Lakota. Mr. Kelly. And we have talked about--I am not going to put you on the spot, but the bottom line is there is a lawsuit that is slowing that down. And that definitely has an impact on not going forward and replacing with something, that has an impact on our training and readiness and the ability to train our new pilots. Would that be correct, General Peterson? General Peterson. It does. But, again, we are compensating with the extension of the legacy aircraft, which was proven in past years, sir. Mr. Kelly. And this is for Lieutenant General Grosso. One question that I have, the $35,000 bonus, it amazes me that anyone questions that. After 5 years in service, that 11- year captain that gets out or a warrant officer, that 11-year person at that time that is critical, when they go to the airlines 5 years later, they are probably at the airline making double what a U.S. Army major or a U.S. Air Force major or a WO3 would be making at that point. Would be that correct? General Grosso. The data we have right now is very quickly you will get to $160,000 a year, so probably. I haven't really done the math, but I think that is correct. Mr. Kelly. Yeah, quite a bit. And that is not for the 20- year guys. I know. I have missed every bonus I have ever been offered because I was too old to get it and been in too long when it became critical. But that is those 11- and 12-year people at that critical stage, that midlevel management, that is when that $35,000 is applied, that critical point in their career. Is that correct? General Grosso. That is correct. Mr. Kelly. And this is for all three of you all. And I don't know if you have experienced it, but there are some things you can't replicate--you know, the CTCs [Combat Training Centers] in the military and the Army or your Red Flags in the Air Force or those things. But does anything replicate combat experience other than combat experience? General Brilakis. I think it is relative to the combat experience you have gotten. If you are doing low-level counterinsurgency operation, you are getting a much better overall training experience at Red Flag or at the Fighter Weapons School or at WTI [Weapons and Tactics Instructor]. That is all high-end stuff against simulated high-threat IADS [integrated air defense systems]. But, I mean, combat is combat. Mr. Kelly. And, again, those things are great, and I have done many of those things, but it still doesn't replicate. And then I guess the final question that I would have is, it is not just the flying experience that you lose, it is also that command experience, that leadership, that management. So a brand-new flight trainee coming out of Columbus Air Force Base in my district does not have the same skills as that major who has been an operations officer for a squadron. Would that be correct, Lieutenant General Grosso? General Grosso. Yes, sir, it would. Mr. Kelly. And so, just taking out the flying side of that, you can't replicate that leadership experience at those critical levels, midlevel management, whether you are talking about maintenance in the NCO [noncommissioned officer] level or warrant officers who were WO3s or majors or senior captains. You can't replicate that anywhere, can you? General Grosso. No, you can't. It takes 10 years to make it. Mr. Kelly. And if you get out, you can't get back in and start over at the same spot, can you? General Grosso. Well, we do have programs to bring people in that have separated. But it is challenging because we don't have enough capacity to train them again. Mr. Kelly. Yes, ma'am. I yield back, Mr. Chairman. Mr. Coffman. Thank you, Mr. Kelly. Let's see. Colonel Martha McSally, United States Air Force, retired A-10 pilot, you are now recognized for 5 minutes. Ms. McSally. Thank you, Mr. Chairman. Thanks, all of you, for your testimony. I think you have talked about it at some level, but some of the conversations I have had with some of the leadership in the services is about it not being a win-lose and a finite pie when we are looking at this as a nation. We have requirements for our airlines, and a good, strong, growing economy and airline industry is good. We have requirements for our military. And if we are looking at this as a finite pie and win-lose, in the end, we are not going to be able to compete, probably, with quality of life and, you know, resources, and especially at a time where pilots are not flying and, because of sequestration, they are doing more ``queep'' and all the stuff that drives you crazy, right, and impact on the family. So what are you all thinking innovatively about turning this into a win-win, to partner with the airlines for individuals to be able to fly in the military and maybe have seasons of flying with the airlines and then come back for a 3- year tour later on and then go back to the airlines, so that we are partnering together and we are all winning as opposed to competing with each other? General Grosso. So, ma'am, our chief is meeting with the senior executives in the airline industry, and we are looking at just that. And based on the authorities that Congress has already given us with the Career Intermission Program, we are going to see if we can get, to your point, a win-win and get some predictability for the airmen, who may want to start their line number early, and get predictability for the Air Force and how can we get a better win-win. And we are also starting to look at can we allow aviators to fly part-time on their own. So I think those are just two ideas, and there are, I think, many more ways to think about this, for the Nation to get a win-win between the military and the private sector. Ms. McSally. Yeah, I totally agree. And when you think about the bonus and people at that 12-year point, you know, taking the bonus, in the past, maybe you get somebody inching towards the 13, 14, with the old retirement system, even if they didn't necessarily want to stay, they would start to make a decision like, ``Well, I might as well just suck it up and get to 20 now.'' I mean, not everyone is like me, thinking about getting out at 18, the last time that I previously did. Most normal people, I think, as they get closer to 20. Are you concerned about the blended retirement system and that not providing a hook, you know, to bridge them from, say, 13, 14 to 20 now, that they have the option to leave? Is that, do you think, going to be a factor? General Grosso. Well, we are concerned because we really don't know. We do a lot of force modeling, and we know how the old retirement system pulls people. So you are exactly right. But we do have that continuation pay in the new retirement system, and the intent of that is to get people to 20. So we are going to have to be very agile at executing that. Ms. McSally. Any other services? Admiral Burke. I would just add, we thank you for the help in the fiscal year 2017 NDAA that gave us the flexibility of the timing on that continuation period. That was very important to us, because we see that as a component, with existing retention tools that we have. Because, you know, we are going to probably have to modulate those other retention tools, along with that continuation pay, to influence retention behavior. So, together, we think we will be able to influence the behavior that we need to get them to 20 and beyond. Ms. McSally. Great. Thanks. I think, you know, the career intermission is a great first step in a direction of--I just think, in general, the next generation, they want to be able to move in and out of the workforce, go get different experiences. I think we need to open up that revolving door. And when you think about the millions of dollars it takes to bring somebody to become a 10-year pilot, for example--how long does it take to replace a 10-year pilot, right? It is a joke, right? Ten years--many of them got out and didn't go to the airlines. Maybe they, you know, went to start a business of their own or they tried some other--grass is always greener, and now they are realizing they miss the camaraderie, they miss the mission. So I would really urge you to look--and it is challenging to try and find these people--where are the experienced pilots that have left? Maybe they are 2, 3, 5, 8 years out. It doesn't matter. I mean, retraining them, with the experience they have had, and bringing them back even for one assignment is worth the investment if you can find them. Are you doing any initiatives to go find those that are not in the airlines but, you know, working in many different sectors of the economy? General Brilakis. We have a Return to Active Duty Program. It has to be a short MOS. We are looking for the talent. I am not quite sure we ever looked at anybody being away for 6 or 8 years. Still have a PFT [physical fitness test] to get past. But we are open to those opportunities. Ms. McSally. Yeah, I just think it is that kind of, sort of, innovation that we have to be thinking of in order to not say, ``Oh, we have to produce some more pilots,'' and just start at the beginning of, you know, the line again. General Brilakis. Yes, ma'am. We have had conversations with industry as well, similar to what General Grosso discussed. And we are taking a look at the CIP [Career Intermission Program] and how we could fit that into a model that works for us. Admiral Burke. One of the items that we are working on under Sailor 2025 is more permeability between the Active and Reserve Components in the Navy. We are nowhere near as permeable as the Army and Air Force are and would like to get more. But, recently, we brought a number of Reserve Component airline pilots now, but they were former naval aviators, in to help us stand up our remote-pilot Triton project down in Jacksonville. And, you know, they wanted to stay, so we were able to help them out. So, after having gone to the airline industry, they wanted to come back. So there is a little bit of that dynamic as well. Ms. McSally. Great. Thanks. I am out of time. I appreciate it. Mr. Coffman. Thank you, Ms. McSally. Vice Admiral Burke, going back to this retention bonus structure, can you brief the subcommittee in terms of what you are looking at right now in terms of a bonus retention structure? Admiral Burke. Yes, sir. Our current structure right now, we have two main points of concern. So our department head area is the most critical, and that applies for lieutenant commanders. And we pay by type/model/series or community, the type that they are flying. Our most critical needs right now are electronic attack aircraft, strike fighters, and then helicopter mine countermeasures. And those folks are getting the top rates, and we are paying them at--current rate is $25,000 per year. And then, depending on type/model/series, others are less. And they are eligible for that after they finish their initial obligation, which is 8 years after winging. So typical winging occurs at about the 3---- Mr. Coffman. Define ``winging.'' Admiral Burke. Yeah, at 3 years. You get your aviator wings at about the 3-year point after you finish flight school. Mr. Coffman. Okay. Admiral Burke. So it is probably somewhere between 10 and 11 years of commissioned service is when your Active Duty service obligation is over. So they become eligible for this bonus. And this bonus now obligates them for 5 years, which takes them through a department head tour and all the way through. If for some reason they don't select for O-4, they don't make it through their department head tour, we recoup. Mr. Coffman. Oh. Admiral Burke. So, you know, they don't get paid for that which they do not serve. So there is that aspect of it, and then we vary the rates. We put some economic factors in there. We have some economic modeling that we base the rates on. It is not extremely sophisticated. It is the best that we have available to us. We are working to get much more predictive analytics behind it and make it more sophisticated as we go forward. And then our second critical zone is the post command level. So the first command opportunity is at the O-5 for commander level in the Navy, and then we ask them to obligate to the post-command level. There are numerous post-command jobs on aircraft carriers, such as, you know, the operations officers, the air bosses, things like that, that run critical operations on aircraft carriers. And we need them to obligate to stick around a little bit longer. And we structure that bonus to keep them at least through the window where they would make O-6, the theory being that, once they make O-6, they will stick around a little bit longer. So that is a 2-year bonus at $18,000 per year. And both of those have had some positive effect. We are not getting exactly the response we want, so we are going to tweak both of those this year, both in terms of the bands and the numbers a little bit. But we don't expect to make full use of the legislative authority that you have given us, but we are going to move them both a little bit up in each direction. One of the ideas that we are looking at here is something that we did in the surface warfare community last year. We tied merit to the bonuses, as well as need, and early-look screeners for the next milestone. So, in the case of aviators, if you screen early for department head, that is based on a look at your professional performance. The idea would be perhaps they are eligible for the bonus earlier and could get extra payments for it, thereby you are securing a contract with the best talent sooner. Mr. Coffman. Okay. Admiral Burke. So we are looking at structuring something along those lines. But, right now, we are paying for those two specific windows at a fraction of the available authority you have given us. Mr. Coffman. Okay. Major General Peterson, United States Army, what is your approach in terms of retention bonuses going forward? General Peterson. Sir, we are looking at two specific targeted windows at the outset. First is at the cessation of their obligation for flight school, which is the 6-year mark. That will be the first hook for a multiyear commitment subsequent to that. And then at the retirement window, to retain that talent subsequently. It is too early for us to tell the impacts of the blended retirement and the opportunities that may pull that window left to that 15-year mark. But we are looking for those leading indicators. And then, last, we are exploring warrant officer aviation incentives, not tied to merit, but tied to actual, objective qualifications for advanced qualifications and skills, sir. Mr. Coffman. Fair enough. Let me just say one thing to all the services, in that I believe that this situation is temporary, this national shortage of pilots. And my concern is what always seems to happen in government is that there is a response to it and somehow there is a feeling that, once that response is baked in, that it is permanent. And I just want to stress that this is really a temporary solution to a temporary problem. And I fully expect that we will come up--that you will come up with dynamic measures that, as this problem recedes, that these retention bonuses recede. Ms. Speier. Ms. Speier. Thank you, Mr. Chairman. You know, I would also like to point out that I have a friend who did over 30 years at United Airlines as a captain, and, you know, pilots talk. And the United Airlines retirement system went belly up, and instead of getting $150,000 a year in retirement benefits per year, it was reduced to something like $60,000. So that is something to remember, too, in terms of the solid nature of the retirement system that exists in the U.S. Government. So a couple of quick questions, and I won't belabor any of this. General Grosso, there was a time in the not-so-distant past when the Air Force was giving the same bonus out to all pilots regardless of whether there was a particular need in a particular specialty so that, you know, a tanker pilot was getting the same bonus as a fighter pilot. Have you changed that now so that it reflects more in terms of what your need is? General Grosso. Yes, ma'am, we have. And I can give you great detail when you have time. Ms. Speier. Okay. I was kind of alarmed when I heard, in answer to one of my colleagues' questions about the continuing resolution, that we would conceivably be in a position where we offered a bonus to an aviator and then, because we are doing a CR instead of an appropriation, that we end up reneging on that bonus. Is that what happens? General Brilakis. The challenge in the CR, if it wasn't authorized in the previous year, we are not authorized to pay it. And so, if we had planned to a pay a bonus in the fiscal year 2018 timeframe that we weren't paying--and, remember, we are going to be doing a bonus for the first time in 6 years, so it is not in our 2017 budget. It wasn't in our 2016 budget, and so it won't be available to us in this 2017 year budget. And the flexibility, we will have to reprogram--have to go for a specific reprogramming action to free up the dollars to be able to do that. Ms. Speier. But we now have a contract with this aviator to give him this bonus, and we are reneging on it? Or you are saying we are reprogramming dollars so you are able to pay that bonus? General Brilakis. It is about reprogramming money. Ms. Speier. Got it. Okay. I think it is really important not to renege on these bonuses. I think that would be a disaster in the making. I think it was you, General Brilakis, who was talking about parts, was it not? Or was it you, Admiral Burke? General Brilakis. I did, ma'am. I think we both---- Ms. Speier. Okay. So we have been focused on the pilots, but, as you pointed out, if you don't have the parts to fix the planes, the pilot can't fly. And what are we doing about the mechanics? Is there a shortage of mechanics that we should be addressing as well? Could you just---- General Brilakis. So, for our part, on the enlisted maintainer side, our challenge is not necessarily the number, but it is also experience. Your aviation maintenance marine gets his basic training in his field, but on top of that there are additional certifications. Because aircrafters are so critical, and the fact is, every time you go up, we want you to come down in the same way, they have certifications that are required. Those certifications take time, upwards of a year or multiple years to receive all the different certifications so you can sign off on the maintenance. Our challenge has been, in the drawdown, the availability of those marines with those experiences, et cetera. So, on the enlisted side, while we do pay retention bonuses to manage the numbers, we are also pursuing in the beginning of this next retention year what we call an op-4 kicker, an additional payment for marines who are willing to reenlist and then go, in that 4-year reenlistment, 24 months in the squadron, retaining those capabilities. Because, more often than not, a marine who reenlists has a location option. He may want to go to recruiting duty or at the drill field, because our marines serve across the Marine Corps. This bonus is going to take that experience, hard-won experience, at the senior sergeant staff NCO level, retain it in the squadron in certain numbers, so they can train the next generation in those certification requirements. That is new for us. Ms. Speier. Anyone else have any comments about mechanics? Admiral Burke. We are in good shape, mechanics. Ms. Speier. Okay. Admiral Burke. We just---- Ms. Speier. All right. General Grosso. Ma'am, we are short mechanics. Based on decisions made in the 2014 President's budget, we are ramping up accessions and having no trouble bringing new airmen in. But, obviously, there will be an experience gap. We expect to be balanced in fiscal year 2019. General Peterson. We are reasonably strong with respect to our mechanics. However, we do have experience challenges that have been brought on by force management levels in recent years where mechanics have not deployed with their units and they have been replaced by contractors. We are overcoming that now, but we will not regain that years of experience. Ms. Speier. Mr. Chairman, I want to ask this last question, but I do want everyone to think about it. We are not using aviators in the same way, in all likelihood, that we have used them in past wars. And with the advent of drones, I think we all have to think about the makeup of our forces in terms of the technological advances that have taken place and how we are going to engage in subsequent actions around the world. And, with that, I yield back. Mr. Coffman. Thank you, Ranking Member Speier. Just a very quick point, Major General Peterson. That entire issue with force management levels and leaving maintenance personnel behind so that we don't reach some artificial cap in Afghanistan and use private contractors in their stead was a horrible decision, in my view. And it is something that this subcommittee needs to revisit and make sure that it never occurs again. I wish to thank the witnesses for their testimony this afternoon. This has been very informative. There being no further business, the subcommittee stands adjourned. [Whereupon, at 3:21 p.m., the subcommittee was adjourned.] ======================================================================= A P P E N D I X March 29, 2017 ======================================================================= PREPARED STATEMENTS SUBMITTED FOR THE RECORD March 29, 2017 ======================================================================= [GRAPHICS NOT AVAILABLE IN TIFF FORMAT] ======================================================================= QUESTIONS SUBMITTED BY MEMBERS POST HEARING March 29, 2017 ======================================================================= QUESTIONS SUBMITTED BY MS. SPEIER Ms. Speier. In my opening statement, I discussed the importance of understanding the real reasons that pilots leave the service, which are often non-monetary. If a pilot is not happy with their assignments or deployment schedules, all the money in the world may not be able to keep them in the service. Given these issues, can each of you briefly explain how you are employing non-monetary incentives to retain pilots? General Brilakis. The Marine Corps works individually with officers to try and match their personal preferences with suitable requirements in the operating force which may positively influence an individual's decision to remain, vice resign. Duty station preference, unit preference, time on station waivers, geo-location preference, and assignments outside of their primary occupation are areas we look at to incentivize the retention of aviators, while also filling mission critical requirements. Ms. Speier. In my opening statement, I discussed the importance of understanding the real reasons that pilots leave the service, which are often non-monetary. If a pilot is not happy with their assignments or deployment schedules, all the money in the world may not be able to keep them in the service. Given these issues, can each of you briefly explain how you are employing non-monetary incentives to retain pilots? Admiral Burke. Career exit surveys indicate a number of complex, inter-related factors leading to pilot decisions to leave service, including an improving economy with increasing opportunities for commercial airline industry employment. Aviators also express dissatisfaction in their quality of service due to readiness challenges associated with limited aircraft availability (number of airframes and lack of spare parts), reduced flying hours, timely attainment of tactical qualifications and career progression, frequency of moves, and deployment lengths/time away from family. Non-monetary retention incentives have focused on improving quality of service and work-life balance through increased choice and flexibility in a successful career path. While relatively new, we are seeing progress through initiatives such as the Career Intermission Program (CIP), increased graduate education options, opportunities for Tours with Industry (TWI), the High School Senior Stability initiative, and efforts to incorporate personnel management process changes as part of Sailor 2025. Increasing numbers of aviation officers are taking advantage of CIP, which affords them a one-three year sabbatical for various reasons, such as starting a family, furthering education, or fulfilling other ambitions that might otherwise have caused them to leave the Navy. After intermission, they return to service without harm to their career progression or competitiveness. The intent of TWI is to familiarize a cadre of Sailors with corporate planning, organization, management techniques, innovations, and best practices by placing them with leading private sector corporations for one year. The experience enhances their professional development and better prepares them for follow-on Navy tours, during which their new skills can be leveraged. Under the High School Senior Stability initiative, when a dependent family member enters their junior year of high school, the Sailor may submit a request to remain in the same geographic location to permit the dependent to complete their senior year of high school. Such career broadening measures, aimed at increasing career flexibility, experience and choice, when coupled with judicious applications of monetary incentives, are key to improving aviation retention in the long term. Ms. Speier. Congress increased the aviation bonus from $25,000 to $35,000 in the FY17 NDAA. Vice Admiral Burke and LTG Grosso: does this amount provide enough flexibility to use higher bonuses to retain the most critical skills, while also providing the rest of the pilots with a lower incentive? Admiral Burke. End-strength and pilot production levels are not directly contributing to aviation retention challenges, thus neither is expected to improve near-term retention. While we are accessing and training sufficient numbers of pilots to meet requirements, mid-grade and senior pilots in some communities, such as Strike Fighter (VFA), Electronic Attack (VAQ) and Mine Warfare (HM), are leaving the Navy at higher-than-expected rates, challenging our ability to meet subsequent flying and non-flying assignment requirements. Aviation accessions are based on an annual demand to fill first fleet squadron billets with junior officers who replace incumbents vacating billets for routine tour rotations/progression. Retention rates of aviators after the first tour have historically proven sufficient in the aggregate to meet manning and selectivity requirements for subsequent career milestone billets--such as department head and command--and the many sea shore billets the aviation community fills. Annual aviation accessions of around 1,000-1,100 annually, since 2012, coupled with our ability to train accessions on time, has provided a sustainable model, as long as retention goals were being met. Today's retention challenges, in some communities, are occurring between the 10 and 20-year service points. While end-strength increases may eventually yield larger accession year groups that could equate to larger overall pilot inventories, increasing populations beyond that needed for immediate first fleet squadron billets would take over 10 years. Also, while increasing pilot production could generate more pilots for first fleet sea tours in the near term, creating excess populations in some fleet squadrons, this cadre could still choose to resign at the end of their initial minimum service requirement, prior to serving a critical department head tour, so the increase would not necessarily resolve the retention challenges we face today. Ms. Speier. In my opening statement, I discussed the importance of understanding the real reasons that pilots leave the service, which are often non-monetary. If a pilot is not happy with their assignments or deployment schedules, all the money in the world may not be able to keep them in the service. Given these issues, can each of you briefly explain how you are employing non-monetary incentives to retain pilots? General Grosso. The AF is employing several non-monetary incentives to improve pilot retention, to include increased assignment and development education flexibility, and removing dozens of non-flying additional duties and computer based training modules from their workload. Arguably, the most meaningful non-monetary incentive for pilot retention has been the addition of civilian contractors in flying squadrons to assist with laborious non-flying tasks required for day- to-day flight operations. These individuals allow pilots to spend more time studying, flying, and learning how to be the best in the world at what they do. Although ACC is currently the only MAJCOM to have assigned admin contractors, PACAF, AETC, USAFE, and AFGSC should also have contractors in place by the spring of 2018. Additionally, increasing end-strength numbers will certainly help with the pilot shortage as many of those members will be maintenance personnel tasked with keeping old aircraft flying and flying is what our pilots want to do. Furthermore, AETC's maximum available pilot production is 1,400 per year due to available runways, daylight and training ranges. The Air Force must develop additional training capacity in order to increase production to 1,600 pilots annually, the amount we will need to sustain 60 fighter squadrons and mitigate pending shortfalls in other platforms. Ms. Speier. Congress increased the aviation bonus from $25,000 to $35,000 in the FY17 NDAA. Vice Admiral Burke and LTG Grosso: does this amount provide enough flexibility to use higher bonuses to retain the most critical skills, while also providing the rest of the pilots with a lower incentive? General Grosso. The Air Force appreciates the $35,000 annual cap authorized in the FY17 NDAA. The Air Force will use the FY17 NDAA Aviation Bonus authority and implement using a business case model to identify areas of greatest need. The business case model will be run annually and consider manning levels (current and trend), retention levels (current and trend), timeline for generating replacements, and costs to train/generate replacements. However, based on the RAND study directed by the FY16 NDAA, we believe the $35,000 cap limits the Services' ability to retain pilots in our most critical need area (Fighter Pilots), but also limits the Services' ability to retain aviators in areas of lesser need. The RAND study suggested a higher bonus authority was needed to incentivize the retention levels required to maintain our pilot force. We will analyze the effectiveness of our FY17 Aviation Bonus program under current authorities and then may need additional support in the form of increased authority to include an increased Aviation Bonus ceiling. Ms. Speier. In my opening statement, I discussed the importance of understanding the real reasons that pilots leave the service, which are often non-monetary. If a pilot is not happy with their assignments or deployment schedules, all the money in the world may not be able to keep them in the service. Given these issues, can each of you briefly explain how you are employing non-monetary incentives to retain pilots? General Peterson. Although retention across Army Aviation is not an immediate problem, recent trends indicate the need for increased focus on Aviation Warrant Officer incentives. Retention of highly competent aviators is key to mitigating current personnel shortages while the Army produces additional aviators to fill those shortages. The Army is unique in that the preponderance of our Rated Aviators are Warrant Officers. This allows, by design, the career paths of Aviation Warrant Officers to focus on pilot related duties and advancement through specialized pilot training, with minimal requirements to serve in assignments outside of Aviation. The primary incentive for an Army Aviator to remain in service will always be the opportunity to develop within their craft and seek advanced pilot and leadership positions. The Army encourages and supports this endeavor by offering other incentives to assist the aviator both personally and professionally. Two opportunities available to Aviation Warrant Officers are the Degree Completion Program and Broadening Assignments such as Flight School Instructors and Training Center Observers. Both of these opportunities allow Warrant Officers a break from the high Operational Tempo that is common within Army Aviation units, as well as the opportunity to either complete their educational goals or to develop their tactical and technical warfighting skills. It is also an important goal for the Army to provide not only aviators, but all Soldiers, the ability to be assigned to personally desirable duty stations for a duration that allows predictability for the Soldier and their family. Our human resources personnel carefully manage this important consideration based on Soldier preferences and operational and institutional requirements. As current shortages are mitigated and manning levels improve, the Army will have better capacity to meet these goals. The Army is exploring all options to enhance the current programs available and institute additional programs into policy. There are opportunities within the Degree Completion and Broadening Assignments to expand the current target population providing more access to the programs. The Army will also continue to emphasize assignment stability within its ability to meet our Country's operational requirements. Critical to the success of any current or future program is the health of our current force. Manning shortages limit opportunities for aviators to serve in broadening or educational assignments based on requirements to man aircraft and units in support of Army requirements at home and abroad. Fixing current manning shortages will allow for these opportunities in the future and help to stabilize our Total Force. ______ QUESTIONS SUBMITTED BY MS. ROSEN Ms. Rosen. What parts of the personnel system (for example, assignments or promotions) do you assess must be changed to aid in retention? Admiral Burke. Through Sailor 2025, Navy is pursuing a dynamic set of approximately 45 non-monetary initiatives designed to improve retention across the force. Built on a framework of three pillars--a modernized personnel system, ready relevant learning, and career readiness--Sailor 2025 is a roadmap designed to change our approach to personnel programs by providing Sailors with choice and flexibility. These initiatives target modernizing personnel management and training systems to more-effectively find, recruit, train, and manage the careers of, talented people, thus improving retention and warfighting readiness. For example, we are modernizing Navy's fitness reporting and evaluation system, increasing emphasis on merit-based pay incentives, and continuing efforts to improve the transparency and accessibility of our detailing system/process for Sailors and their families. While existing statutory authorities provide the necessary tools to adequately influence current aviator retention behavior, we continually assess the sufficiency and effectiveness of our efforts to enable efficient retention, and when needed, recommend changes to provide the tools and flexibility needed to meet emerging demand. Ms. Rosen. Will the end-strength increases in the FY 17 NDAA help with the shortage, or are there other physical barriers to increasing pilot production such as school-house size or instructor cadre? Admiral Burke. End-strength and pilot production levels are not directly contributing to aviation retention challenges, thus neither is expected to improve near-term retention. While we are accessing and training sufficient numbers of pilots to meet requirements, mid-grade and senior pilots in some communities, such as Strike Fighter (VFA), Electronic Attack (VAQ) and Mine Warfare (HM), are leaving the Navy at higher-than-expected rates, challenging our ability to meet subsequent flying and non-flying assignment requirements. Aviation accessions are based on an annual demand to fill first fleet squadron billets with junior officers who replace incumbents vacating billets for routine tour rotations/progression. Retention rates of aviators after the first tour have historically proven sufficient in the aggregate to meet manning and selectivity requirements for subsequent career milestone billets--such as department head and command--and the many sea shore billets the aviation community fills. Annual aviation accessions of around 1,000-1,100 annually, since 2012, coupled with our ability to train accessions on time, has provided a sustainable model, as long as retention goals were being met. Today's retention challenges, in some communities, are occurring between the 10 and 20-year service points. While end-strength increases may eventually yield larger accession year groups that could equate to larger overall pilot inventories, increasing populations beyond that needed for immediate first fleet squadron billets would take over 10 years. Also, while increasing pilot production could generate more pilots for first fleet sea tours in the near term, creating excess populations in some fleet squadrons, this cadre could still choose to resign at the end of their initial minimum service requirement, prior to serving a critical department head tour, so the increase would not necessarily resolve the retention challenges we face today. Ms. Rosen. Since flight hours are a motivator for retention, is your aircraft force structure robust and healthy enough to support all of your minimum required pilot flying hours? Will you be able to increase flying time with an increased budget or will it require more airplanes? Admiral Burke. The aircraft force structure is not currently adequate to fulfill the minimum number of required flying hours to establish and maintain optimum aviation readiness. Available funding must be spread over a number of priorities, including depot capacity, readiness accounts--particularly those that buy/sustain the supply of aircraft parts--and procurement. Shortfalls in each of these areas impose risk in meeting both minimum flight hour requirements as well as current and future Global Force Management (GFM) operational commitments. While investments in the President's fiscal year 2017 budget begin to address the gap between strike fighter inventory and GFM demand by fully funding depot capacity, consistent long-term investments will be essential to fully-funding flying hours, enabling depot operations, making readiness and supply accounts whole, and procuring replacement aircraft at a rate that outpaces consumption. Ms. Rosen. I am deeply concerned with how pilot shortfalls are impacting the Air Force service-wide, and am particularly interested to hear how it's affecting Nellis and Creech Air Force Bases. Can you please explain how these shortfalls affect the Air Force's ability to conduct Red Flag, their main combat training exercise, and their ability to maintain UAS crews at Creech and the missions those Airmen fly overseas? General Grosso. Remotely Piloted Aircraft (RPA) crew manning and the impact of pilot shortfalls on Nellis AFB operations are two very distinct and separate challenges. First, with Congressional assistance, the USAF implemented a ``Get Well Plan'' and Continuous Process Improvement Plan (CPIP) to improve RPA crew manning and stabilize RPA operations tempo. As a result, RPA crew manning is rapidly improving and we are on glide path through FY19 to stabilize the enterprise's operations tempo. Second, the fighter pilot shortage is straining our ability to leverage the world-renowned elite training and operational capacity at Nellis AFB. Although we will not compromise the high quality tactical training Red Flag provides the USAF, joint and coalition participants, continued fighter pilot shortages may impact the way we conduct these exercises in the future. However, all exercises and sorties are currently being flown as scheduled. Ms. Rosen. What parts of the personnel system (for example, assignments or promotions) do you assess must be changed to aid in retention? General Grosso. The assignment process is one of the areas within the personnel system we are working to improve. Our pilots are leaving because they are frustrated with the lack of predictability offered under our current process. The Air Force is taking steps to increase the transparency and flexibility of the assignment process to promote family stability. Our Airmen deserve an updated assignment system that can meet manning requirements as well as ensure mission success. Therefore, a beta test is currently underway that could change how we execute assignments. This test involves the use of algorithms to optimize assignments based on the needs of the Air Force and desires of our members and their families--an assignment system for the 21st century. We are also examining alternate career paths for pilots (and other officer career fields) other than the current one-track model. The intent is to investigate the ability to offer more flexibility in how we manage and develop the force, reviewing multiple career progression options such as a technical, non-command track for pilots to allow them to concentrate on flying duties. The Air Force has also reduced additional duties, removed superfluous training courses, and hired contractors in flying squadrons to perform burdensome administrative tasks. All of these efforts allow our pilots to refocus on their primary duty: flying. Ms. Rosen. Will the end-strength increases in the FY 17 NDAA help with the shortage, or are there other physical barriers to increasing pilot production such as school-house size or instructor cadre? General Grosso. Increases in Air Force end-strength will help mitigate the pilot shortage. Two primary factors are required to produce and sustain pilots: maintainers and aircraft. The Air Force is currently more than 3,400 maintainers short. End-strength increases are critical to reducing this shortfall. A healthy maintenance force provides the foundation for operation aircraft which increases sortie production essential for making and seasoning pilots. Additional physical barriers do exist in both school-house size and instructor cadre. Air Education and Training Command (AETC) is currently growing school-house capacity from 1,200 pilots per year to approximately 1,400 pilots per year in 2020. This will be the maximum limit of pilots that can be produced at the current training bases. Air Force pilot production beyond 1,400 will require additional pilot training base to provide the necessary runways and training ranges. Looking further into the future, the Air Force must develop additional training capacity in order to increase production to 1,600 pilots annually, the amount we will need to sustain 60 fighter squadrons and mitigate pending shortfalls in other platforms. As a point of comparison, Major U.S. Airlines hired more than 4,100 pilots in 2016. Lastly, the Air Force needs to ensure a robust instructor pilot cadre to train new pilots. We look forward to working with Congress to develop retention packages that ensures the availability of these critical personnel. Ms. Rosen. Since flight hours are a motivator for retention, is your aircraft force structure robust and healthy enough to support all of your minimum required pilot flying hours? Will you be able to increase flying time with an increased budget or will it require more airplanes? General Grosso. The current pilot flying hours do not support all of the minimum training requirements. The Air Force is executing flying hour programs to the maximum efforts based on current maintenance manning and aircraft force structure. Growing Air Force end-strength which includes assessing additional aircraft maintenance capacity is critical to re-establishing a healthy maintenance foundation and making improvements to flying hour programs. In the fighter community, the current active duty force structure is too small to experience and season the required number of pilots. The Air Force requires additional fighter force structure in order to maintain a healthy fighter pilot inventory with the appropriate experience ratios. As overall pilot production numbers increase, the execution of additional flying hours within the existing training structure quickly become constrained by the limited number of existing training bases. A new basing option may be required in the 2020 timeframe to gain additional increases in production. Lastly, accelerating the acquisition of the next-generation trainer aircraft (T-X) is critical to providing additional pilot production capacity. [all]