At Hearing, Navy Secretary Nominee Agrees with Warren that Defense Contractors’ Greed Impacts Navy’s Readiness
“We waste taxpayer dollars, delay missions. We actually put people at risk because we are not permitting basic right-to-repair. Technical data needs to be a “must have” in acquisition contracts for the Navy.”
Washington, D.C. – At a hearing of the Senate Armed Services Committee, U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Armed Services Subcommittee on Personnel, questioned Mr. John Phelan, the nominee to be Secretary of the Navy, about his views on ensuring the Navy’s right to repair its own equipment – one of Senator Warren’s priorities.
Mr. Phelan agreed that examples of defense contractor restrictions on crucial repairs “do not make sense,” that the resulting delays and cost are an inefficient use of taxpayer dollars, and that they risk the Navy’s readiness. However, Mr. Phelan stopped short of committing to using his tenure as Secretary of the Navy to advance the Navy’s right to repair its own equipment.
Mr. Phelan said military contracts, which often include restrictions on what technical data the Navy can access to maintain and repair equipment, “really need to be reviewed,” and said he intends to focus on reviewing contracts if confirmed.
Senator Warren highlighted existing bipartisan support on the Armed Services Committee for addressing repair restrictions and called for acquisition contracts to include access to the necessary technical data that will allow servicemembers to repair military equipment faster, more easily, and more cost-effectively.
Transcript: Hearing to Consider the Nomination of Mr. John C. Phelan to be Secretary of the Navy
Senate Committee on Armed Services
February 27, 2025
Senator Elizabeth Warren: Thank you, Mr. Chairman. So, congratulations on your nomination Mr. Phelan. Let’s talk about efficiency at the Defense Department.
Last year, the Navy asked for $260 billion to buy everything from ships to night vision goggles. One reason it costs so much? Big defense contractors slip restrictions into their contracts that deny sailors access to technical data they need to maintain or repair equipment, even equipment that the Navy owns.
So, I want to give you an example. The Navy's Littoral Combat Ships are designed to operate close to shore, to hunt mines, and to sink submarines. But this ship has been bogged down with maintenance issues. And when something breaks, sailors are not allowed to make repairs themselves because Lockheed Martin and General Dynamics don't let them have access to the necessary data and materials. So what does the Navy do? The Navy has to fly contractors out to these ships, which Pro Publica found adds "millions of dollars in travel costs and often delays missions."
So, Mr. Phelan, these kinds of extra costs and delays to fly contractors to the Pacific to fix minor repairs, are they an efficient use of taxpayer dollars?
Mr. John C. Phelan, nominee for Secretary of the Navy: Does not sound like it to me, Senator.
Senator Warren: I’m glad to hear that. Let me give you another example. The Government Accountability Office found that fuel tank level indicators were improperly calibrated on the USS Fort Lauderdale built by Huntington Ingalls. Now, it seems like an easy fix, right? You just go in and recalibrate these things. Uh uh. The Navy’s technicians were denied the information they needed to do that so every time they had to recalibrate the indicators, the Navy had to fly out one of the contractor’s technicians.
Mr. Phelan, does not being able to maintain important ship parts put the Navy's readiness at risk?
Mr. Phelan: It sounds like it, Senator. And I think, as I mentioned earlier, these contracts are something that really need to be reviewed and better understood. And I think that, if confirmed, that is something I intend to do, is focus on that.
Senator Warren: And I appreciate that Mr. Phelan. But I want to see more than just reviewed here. Sailors need to be able to rely on their equipment. That means being able to maintain their own equipment. But, from fiber-optic navigation lights to cranes that deploy search and rescue boats, sailors do not have the right to repair their own equipment thanks to defense contractors who want to squeeze more money out of the military. Many people on this committee, both sides, Democrats and Republicans, understand the risk here. Chairman Wicker released a report last year showing DoD "consistently underperforms in procuring data rights,” and pointed to the lack of technical data as a factor that "inevitably leads to reduced training and readiness."
Mr. Phelan, can we count on you to advance the Navy's right to repair its own equipment?
Mr. Phelan: Thank you for the question, Senator. I know this is an issue very important to you. As I said, it is something that I intend to study and look at. What I’d commit to you is let me come back to you and look at this and understand it because it is a complicated issue. I am in agreement with – a lot of the examples you have given do not make sense to me but I am not up to speed enough yet to give you that answer. But I will come back and see you and commit to that and look at this.
Senator Warren: And I appreciate that, but I just want to say right now: this makes me uneasy. Because, there is so much pressure to continue to let these defense contractors take advantage of our service members.
We waste taxpayer dollars, delay missions. We actually put people at risk because we are not permitting basic right to repair. Technical data needs to be a “must have” in acquisition contracts for the Navy. My Servicemembers Right to Repair Act would make sure that the Navy and every other part of our military have fair access to the data rights and to the other materials that servicemembers need to be able to repair their own equipment and keep themselves safe. Military right-to-repair has bipartisan support here in the Senate. I want to work with the administration, I want to work with my colleagues, and I want to work with you. We owe it to our taxpayers and we owe it to the men and women in the field to get this straightened out. What’s happening right now is fundamentally wrong and we can put a stop to it. I apologize for going over, Mr. Chairman.
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