Senate Armed Services Committee (SASC) Chairman John McCain (R-Ariz.) put the Trump administration’s nominee for deputy defense secretary on notice that he won’t automatically approve the nomination until he receives more forthright answers to the committee’s questions, including whether the United States should be arming the Ukraine with lethal defensive weapons.
McCain also told Patrick Shanahan, a former top Boeing [BA] executive, that he’s “not overjoyed” that the nominee came from one of the top five defense companies that receive “90 percent” of the Defense Department’s spending.
After various introductions opening remarks, McCain highlighted one of Shanahan’s pre-hearing answers to a committee question about whether the U.S. should be arming the Ukraine with lethal defense weapons defend against Russian aggression in that country.
“Inexplicably, you responded by saying, ‘you’d have to look at the issue,” McCain said. “It’s not satisfactory Mr. Shanahan, would you wish to abridge or amend your statement.”
Shanahan responded that, “Mr. Chairman, I would,” saying, “I support equipping the Ukrainians” with lethal defense weapons. McCain said he’s “glad to hear that” but pointed out that the job of Congress is to “advise and consent,” adding that Shanahan’s earlier written response was, “frankly disappointing to me,” and “still disturbing to me,” especially given his career with a company that provides the U.S. and allied foreign militaries with a lot of weapon systems.
McCain persisted, saying that Shanahan’s original reply that he needs more time to study the issue “Is not a good beginning. Not a good beginning. Do not do that again Mr. Shanahan or I will not take your name up for a vote before this committee. Am I perfectly clear?”
“Very Clear,” Shanahan replied.
McCain asked Shanahan if he hasn’t been aware of Russia’s aggression in the Ukraine and the “thousands of people killed by [Russian President] Vladimir Putin?” Asking again, “Have you missed all that in your duties at one of the major defense corporations in this country?”
Shanahan said he’s “aware of that.”
McCain later suggested his support of Shanahan’s confirmation is still tenuous. Following a round of questions by Sen. Deb Fisher (R-Neb.), the chairman said that, “Mr. Shanahan, you’re not making me happy. We expect straightforward answers and you just ducked basically every question that Senator Fischer asked you.” He pointed to Congress’ advice and consent duties enshrined in the Constitution, saying, “I’m not going to sit here and watch you duck every question and expect that everything is going to go smoothly. It’s not.”
Fischer asked Shanahan to elaborate on potential non-diplomatic options to respond to Russia’s violation of the 1987 Intermediate-Range Nuclear Forces Treaty, having flight-tested and deploying a prohibited cruise missile. In his written reply to earlier questions by the committee, according to Fisher, Shanahan said he understands that there is an ongoing review of potential responses to the violation and that “’I will be keenly interested in making sure these are translated into action.’” He replied to Fisher at the hearing that “I do not” have thoughts on specific options nor any “specific recommendations” for dealing with Russia’s behavior.
Fischer mentioned recent testimony by Gen. Paul Selva, vice chairman of the Joint Chiefs of Staff, who said that Joint Staff’s highest priority is “modernizing and recapitalizing” the nuclear deterrent capabilities of the U.S. and asked if Shanahan agrees. He replied that he hasn’t reviewed the DoD’s priorities but that he understands “the importance of the nuclear deterrent” and will provide Selva with the “proper support.”
At the end of the hearing McCain told Shanahan to consider if he wants to “abridge” some of his written replies to the committee’s pre-hearing questions and delver the answers soon. He said it is the “desire of the committee to recommend you,” but that Congress will stick to its obligations of “advice and consent.”
Shanahan had a 30-year career in the aerospace and defense industry and until recently was Boeing’s senior vice president for Supply Chain and Operations. He also oversaw the company’s 787 passenger plane program, missile defense efforts, and rotorcraft programs during his career at the $95 billion aerospace and defense giant.
“I am concerned that 90 percent of defense spending is in the hands of five corporations of which you represent one,” McCain said near the completion of the hearing. “I have to have confidence that the fox is not going to be put back into the hen house.” Later, he said, “That’s not what our founding fathers had in mind.”
Shanahan said during the hearing that if confirmed, he will recuse himself from all decisions and discussions related to Boeing at the Pentagon. He also said he would divest his stock holdings in the company, except his executive retirement plan, which he is allowed to retain.
The hearing also covered a number of the management responsibilities that the deputy defense secretary is responsible for.
Shanahan said he wants to find ways to speed the acquisition process to save time and money. There needs to be a tolerance for risk in acquisitions, he said, noting that he is a “proponent of failing … failing fast …. and learning quickly,” which results in training people.
“It’s not about the technology, it’s about our people learning how to develop the technology because they know how the users can apply it,” Shanahan told Fischer in response to a question about what she says is risk averse acquisition environment at DoD.
Sen. Elizabeth Warren (D-Mass.) asked Shanahan of his interest in spending on research and development and investing in the DoD’s partnership with non-traditional technology firms to get commercial technology into the hands of warfighters sooner. The Pentagon’s effort here is called Defense Innovation Unit Experimental, or DUIx.
Shanahan said long-term research investments are necessary because future warfighting needs depend “on how well we innovate and integrate new technologies.” He also said the investments in DUIx are the types that need to be made.
He said smaller companies “unlock the creativity of the warfighter,” adding that the small technology firms can “rapidly” react to the warfighter’s desires for certain changes to technologies because these companies have less bureaucracy to deal with and can operate outside of the government’s formal contracting processes.
Shanahan also committed to an audit of the Pentagon’s financial systems that he said will begin in September or October, although he wouldn’t commit to a timeframe for completing it. He said the audit is necessary for providing a cost baseline for all programs, which helps determine if a particular program is proceeding within the right cost frame.
If confirmed, Shanahan would replace Robert “Bob” Work, a holdover from the Obama administration, who has been the deputy defense secretary since April 2014.