Securing the Supply Chain: The Defense Production Act in Focus

Defense Posture and Global ThreatsHouse Financial Services Subcommittee on National Security, Illicit Finance, and International Financial Institutions · 2025-08-13 · 119th Congress
The House Financial Services Subcommittee on National Security, Illicit Finance, and International Financial Institutions held this field hearing at Wright-Patterson Air Force Base to examine the Defense Production Act (DPA) ahead of its expiration in September and to gather input on modernizing its Title 1, Title 3, and Title 7 authorities. Begins at 0:12:23
Transcript
Highlights

Title

Reauthorizing the Defense Production Act to secure the defense supply chain

Purpose

The House Financial Services Subcommittee on National Security, Illicit Finance, and International Financial Institutions held this field hearing at Wright-Patterson Air Force Base to examine the Defense Production Act (DPA) ahead of its expiration in September and to gather input on modernizing its Title 1, Title 3, and Title 7 authorities. Two panels testified: DoD and Air Force Research Laboratory officials described current DPA execution and funding, while defense manufacturers described their experience seeking Title 3 investment for expanding rocket motor, artillery, and additive-manufactured jet engine production. Begins at0:12:23

Who spoke

Subcommittee Chairman Warren Davidson (R-OH)0:12:23: Opened the hearing, explained Wright-Patterson's role in executing DPA Title 30:13:11, and called for streamlining the process and expanding funding flexibility to modernize DPA0:15:23.

Chairman French Hill (R-AR), Full Committee Chairman0:16:19: Said America faces one of the most dangerous global threat environments and DPA must be modernized for 21st-century threats0:16:45; later pressed on whether "everything gets a priority" undermines Title 1 prioritization0:33:22 and on ship-repair capacity0:55:05.

Jeffrey Frankston, Acting Deputy Assistant Secretary of Defense for Industrial Base Resilience0:18:04: Testified DPA is "not a Cold War relic," citing $2.8 billion awarded to 194 projects under Title 3 in FY2020–2024 and over $500 million more in FY250:21:21; described the DX rating as DoD's highest Title 1 priority tier0:35:14 and said ship-building/ship-repair capacity is his top surge concern0:55:26.

Dr. Charles Ormsby, Acting Director, Materials and Manufacturing Directorate, AFRL0:23:15: Described the Executive Agent Program Office's 109 technical investment agreements and six funding sources0:25:42; cited a gallium nitride project with 3x yield improvement and 76% cost reduction0:26:25 and a nickel-production project pure enough for the Smithsonian0:26:55.

Vice Chairman Bill Huizenga (R-MI)0:38:18: Asked how Frankston's office coordinates with CFIUS reviews0:38:57 and how CARES Act, IRA, and conflict-related supplemental funds differ in purpose and expiration0:41:19; later probed chip and microelectronics production gaps1:02:39.

Rep. Tim Moore (R-NC)0:43:49: Asked about copper smelting/refining vulnerabilities, noting China controls roughly 50% of global smelting capacity0:45:05, and about domestic textile supply under the Berry Amendment0:47:59; later asked about repurposing CARES/IRA funds toward current shortfalls1:07:03.

Robert Faxon, Chairman of the Board, Consolidated Boring Inc.1:17:21: Testified his companies make components for the GBU-57 bunker buster and rocket motor cases for SM-3/SM-6 missiles, and that demand for large rocket motor cases (~3,000/year) far exceeds current capacity of 350–4001:19:44; urged multi-year, predictable Title 3 funding and DPA-funded material buffer stock given multi-month lead times2:01:02.

Gordon Follin, Chief Product Officer, Beehive Industries1:22:57: Said Beehive's additively-manufactured jet engines are 25% more efficient and less than half the cost of conventional engines, scalable to over 10,000 a year within three years1:25:06; noted Beehive's cost share is 50–80% of program value and it has invested over $300 million to date1:47:00.

Chairman Davidson (second round, panel 2)1:28:31: Asked how DPA could fund flexible commercial/defense "factories of the future" to build surge capacity1:28:52, and how Title 3 cost-sharing attracts outside capital1:31:36.

Chairman Hill (panel 2)1:33:37: Pressed Faxon on balancing multi-year funding commitments against risk of government "picking winners"1:33:52, and asked Follin about accelerating OTA contracting tools1:52:42 and allied industrial-base alignment1:54:53.

Vice Chairman Huizenga (panel 2)1:38:46: Raised concerns about "central planning" critiques of DPA investment1:38:46 and asked Follin about ramp timelines and flexibility to fail and adapt1:40:00; discussed AUKUS submarine capacity and high-temperature alloy needs like titanium and rhenium1:56:101:59:32.

Rep. Moore (panel 2)1:44:48: Asked how procurement could better serve small and mid-sized manufacturers1:44:48 and about balancing additive manufacturing with conventional casting/forging capacity1:50:31.

Key moments

Frankston: DoD Title 3 investments totaled about $2.8 billion for 194 projects from FY2020–2024, plus over $500 million in FY25 and $88 million in recipient cost shares0:21:21.

Ormsby: a Title 3 project achieved a three-fold yield improvement and 76% cost reduction in gallium nitride microwave circuits, and another produced nickel pure enough to be placed in the Smithsonian0:26:250:26:55.

Frankston: DoD co-leads roughly 6% of all CFIUS reviews and referred more than 75 non-notified transactions in the past year0:22:18.

Moore and Ormsby discussed that China controls about 50% of global copper-smelting capacity even though copper is DoD's second most utilized material0:44:590:45:20.

Faxon: combined annual demand for MK72, MK104, and GMLRS rocket motor cases is about 3,000 units, versus current AFM capacity of only 350–4001:19:44.

Follin: rebuilding stockpiles with existing manufacturing methods would take more than 13 years and $430 billion per DoD estimates, versus additive manufacturing scaling to 10,000+ engines/year within three years at under 20% of conventional cost1:25:06.

Follin: it costs Ukraine roughly 50 times more to shoot down a Russian drone than it costs Russia to launch it, and interceptor production (~2,000/year) trails Russian drone output (~6,000/year)1:24:18.

Faxon proposed DPA-funded raw-material buffer stock to bridge multi-month lead times before a new factory can run, calling it a smart one-time use of funds2:01:02.

Follin said Beehive's Title 3 cost share runs 50–80% and recommended reducing cost-share requirements and using OTAs to make Title 3 more accessible to small/non-traditional defense firms1:46:35.

Chairman Hill and Faxon debated the tension between DPA's multi-year investment needs and the risk of government "picking winners," with Faxon arguing ramp-ups of this scale don't fit normal 10% business-growth cycles1:34:411:35:16.

Metadata

CommitteeHouse Financial Services Subcommittee on National Security, Illicit Finance, and International Financial Institutions
Chamber / CongressHouse · 119th Congress
Date2025-08-13
TypeHearing
Witnesses
Mr. Gordon Follin — Chief Product Officer, Beehive Industries
Dr. Charles Ormsby — Acting Director, Materials and Manufacturing Directorate, Air Force Research Laboratory
Mr. Jeffrey Frankston — Acting Deputy Assistant Secretary of Defense for Industrial Base Resilience, Office of Assistant Secretary of Defense for Industrial Base Policy
Mr. Robert Faxon — Chairman of the Board, Consolidated Boring Inc.
Videoyoutube
Transcript334 caption blocks · 19,058 words · 2:05:28 runtime
EventCongress.gov 118552