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Ladies and gentlemen , welcome to Panel 

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eight . Invigorating the innovation 

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ecosystem competing in the 21st century . 

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Please welcome Lauren Williams of 

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Defense one and our distinguished 

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panelists . 

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All right , good afternoon , thank you 

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all for joining us . I'm going to start 

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this panel by addressing you the 

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audience first . We're going to do 

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something different and make this 

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interactive so please if you have 

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questions , submit them through the app 

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and I'm gonna take them throughout . 

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Also we have a polling question if you 

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could answer which part of the national 

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security industrial base needs the most 

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investment and we'll get the 

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conversation started and address your 

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answer throughout . So we've heard a 

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lot today about china being the pacing 

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threat for the Defense Department . I'm 

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really interested from each of the 

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panelists . Does the current makeup of 

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the industrial base actually , is it 

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sufficient to meet this challenge both 

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with technological capabilities and 

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workforce congressman ? I'll start with 

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you . Thank you . Listen , I think the 

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component parts are absolutely there 

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for us to have the capability and 

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capacity necessary to counter the 

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chinese but I think the issue is speed . 

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Can we get what is there today in the 

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hands of the war fighter in time for it 

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to have relevance in relation to the 

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threat that we face from china ? I 

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think we have to look at ways to do 

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things differently . I think we have to 

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look at how do we encourage those 

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emerging technology companies , those 

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startups to take what is pretty 

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exciting things that are going on there 

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and get that into a scope that's 

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applicable and usable for the military 

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do that in a shorter period of time ? I 

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think that we can do that . I think we 

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have to go think with a sense of 

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urgency . I think we have to do things 

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at the speed of reality . Listen , we 

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understand that pentagon is a great 

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organization , but there are two speeds , 

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the speed of the pentagon and the speed 

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of reality . Let's make sure that we're 

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doing things with the speed of reality . 

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And I believe I believe that we can do 

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that . I really am enthused in the 

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things that I hear and the things that 

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I see with what's happening in the 

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realm of technology . I know that our 

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war fighters are airmen , our sailors , 

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our marines , our soldiers and for that 

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matter , even our coast guardsmen have 

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the ability to solve those problems . 

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If we give them the tools necessary to 

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really be successful in that realm and 

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make no mistake about it . No matter 

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the threats that we face from china , 

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we can counter those threats . We can 

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give our members of the military that 

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tactical superiority , that superiority 

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to where they're not in a fair fight to 

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make sure that we prevail and remember , 

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it's not just about prevailing in 

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combat , but it's how do we have 

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significant capability and capacity to 

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deter adversaries like china because I 

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argue the real strength of the United 

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States military is to make anyone out 

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there think I don't want to engage them 

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because I know what the outcome will be 

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and it will not be good for the 

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adversary General Brown , what are your 

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thoughts ? Um , I do think we have the 

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capability and and aspects of the 

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capacity , but I agreed to 

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Representative Whitman that we do have 

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to have a sense of urgency as I came in 

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as a chief . I wrote , accelerate 

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change or lose and I wrote that for a 

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reason because I thought there's areas 

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that we need to move forward on . One 

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of the key words I put in a change to 

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lose is the word of collaboration 

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because the Department of Defense 

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cannot do this by ourself . We've got 

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to work very closely with Congress . 

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We've got to work very closely with 

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industry to bring all these pieces 

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together so we can all move with a 

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sense of urgency . Um , we have done 

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this before . Our nation has come 

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together in times of crisis to be able 

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to provide capability . Um , I've 

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watched this during the course of 

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events in Ukraine some things we've 

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been able to move very fast on certain 

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areas we want to do is not wait till 

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there's a crisis to actually move at a 

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pace with a sense of urgency . We've 

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got to do some things crisis like ahead 

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of a crisis . So we're better posture 

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and prepared to move forward and 

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keeping with that theme of lessons 

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learned from Ukraine , what can you 

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tell us ? Um that has been learned that 

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will kind of just absolutely change how 

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the Defense Department interacts with 

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the industry . I don't know if it's 

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absolutely changed because what we'll 

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do is we'll do it and then we'll go 

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back to our regularly scheduled program . 

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Um , but I have seen areas where we can 

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come very closely together with 

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industry and be creative . And one 

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examples I've been sharing here 

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recently is uh , the harm missile and 

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anti radiation missile I've flown with 

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in F sixteen's . We've been able to put 

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on a MIG 29 If someone had asked us 

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before the Ukraine events to put a harm 

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missile and make 29 . We talk ourselves 

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out of it too hard to do . Can't do 

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that too much policy were able to , you 

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know , crisis to be able to figure out 

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how to get things done . Um , so there 

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are ways that we can work with industry 

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and those that actually build the 

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systems to figure out how do we get 

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into the details to move forward in 

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certain areas um , because of 

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a need in driving a sense of 

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urgency . So there , I mean , that's 

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one opportunity , um , we've done other 

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things like low cost 30 m that we were 

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building to put on our own ranges for 

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our own training that we gave to the 

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Ukrainians that they use to confuse the 

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Russians . I mean , so there's 

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opportunities like that . A number of 

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opportunities that we were able to to 

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do that . We've got to continue to work 

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on uh with our industry partners . Yeah . 

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Thanks Lauren . Um first of all thanks , 

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it's great to be here on this panel . 

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Um I think we need to start by 

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debunking the myth that these 

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technologies are only experimental , 

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that they're not proven that they need 

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to be tested in my mind . Um These 

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technologies , particularly when you 

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think about ai as a tool for the 

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department , these are global scale 

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proven technologies that technology 

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companies use each and every day . 

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They're just not necessarily applied at 

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scale for the department . And so when 

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I think about things that the 

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department can do to really encourage 

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the innovation ecosystem and the 

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broader defense industrial base to 

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work on these very interesting yet 

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challenging mission use cases for the 

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department . I think there are at least 

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three things and there are probably 

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many more that we could be doing . Um 

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the first and importantly , I think the 

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department needs a more modern approach 

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to compliance . Um the compliance of 

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separation uh creates 

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cost slowdown and increases the 

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overall timeline with which these 

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technologies can be deployed . So 

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that's one and I think we can use much 

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greater software focus software defined 

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networks to ensure compliance . That 

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the department needs . The second thing 

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is that we need to focus more on 

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application rather than experimentation . 

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It is true to say that these 

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technologies have not been applied been 

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necessarily applied and I think that's 

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where we need to focus our time and 

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energy applying these technologies to 

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use cases rather than getting stuck in 

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the R . And D . Pipeline around 

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experimentation and and believing that 

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they are not necessarily applicable . 

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And then the last thing and Secretary 

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Xu and I were talking a little bit 

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about this before we came on stage , I 

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think there's an opportunity to think 

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about modular systems and modular 

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building rather than the large Big Bang 

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theory of a program of record . At the 

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end of the day , software is going to 

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power the department and the power of 

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the department's response , kinetic or 

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non kinetic response . And the idea of 

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building modular early and integrating 

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with the use of software I think is a 

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very powerful concept . Yeah . Love to 

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jump into this dialogue . So one of the 

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key things that we initiated last year 

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and this is something the depths active 

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and Vice chairman strongly pushed for 

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is the raider activity , which is the 

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rapid defense experimentation reserve . 

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Okay , this is where we literally work 

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hand in glove with the joint staff to 

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understand what are the joint 

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warfighting capability that they desire 

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to have because in any conflict with 

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fighting in joint war and we fight with 

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our coalition partners , right ? We 

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don't fight within a single service . 

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Okay , so literally what we've done is 

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gone to three different sprints . Okay , 

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each Sprint focus on specific scenario 

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which um some of the scenario is not 

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going to surprise you where it's 

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located in the pacific . Right , Okay . 

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Uh , so each one of these sprints , we 

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look for ideas are their items that's 

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out there . That's a prototype trl 

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level four or five . That's good enough 

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for us to experiment with a , in a 

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contested environment . So if it works 

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in a lab that's really great . But 

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sometimes it doesn't quite work in a 

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contested environment . So we're taking 

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it to a contested environment to test 

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things out and then it's a joint staff 

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in , in conjunction with the co 

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coms and the services to say , hey , 

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this proved utility . I'm 

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working very closely with my partner , 

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Dr Bill a plan on a N . S . I said , 

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how can we then rapidly feel this 

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capability ? It doesn't have to be 100% 

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solution which takes a decade . Right . 

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But if it's a 70 80% solution is good 

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enough to solve a problem that we have 

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within a joint warfighting concept , 

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let's push it out in terms of Cape . So 

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we're absolutely doing that as soon as 

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we get an appropriation . Okay , so 

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that's one thing we're waiting . Okay , 

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please give that to us the way we need 

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to get it done . Okay . But , but 

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that's exactly what we're doing on that 

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side in terms of looking for innovative 

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ideas and I want to thank 

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representative calvert for giving us 

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$100 million dollars of absence . This 

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is the accelerate the fielding and 

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procurement of innovative technology . 

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This is what we're looking to small 

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companies as well as nontraditional . 

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Do they have a solution to solve a 

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problem that we have right that we can 

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help bridge the valley of death ? 

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Namely they've already proved out the 

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technology exactly that you said and 

275
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the services , I love it , I want it . 

276
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But usually once you prove it out , 

277
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they say I'm gonna put it in the palm 

278
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or that's a 22 to 3 years later process . 

279
00:11:15,050 --> 00:11:17,360
Right ? And then small companies can't 

280
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just sit there totally their thumb for 

281
00:11:19,527 --> 00:11:21,760
two or three years until our contract 

282
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gets in place , right until we get get 

283
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a budget . So literally what we've done , 

284
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we helped 10 companies to accelerate 

285
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capability development , compress that 

286
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by two years . So that's fantastic . 

287
00:11:34,870 --> 00:11:37,810
And now with with secretary of defense 

288
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announcing his office strategic capital , 

289
00:11:40,550 --> 00:11:43,740
we will again help small companies to 

290
00:11:43,740 --> 00:11:45,851
figure out if they need to ramp up in 

291
00:11:45,851 --> 00:11:48,180
production to help them with a capital 

292
00:11:48,190 --> 00:11:50,360
to ramp up production . So we're all 

293
00:11:50,360 --> 00:11:53,220
for innovating and um demonstrating 

294
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critical capability that's needed and 

295
00:11:55,360 --> 00:11:58,140
move at the speed of relevance . Can I 

296
00:11:58,140 --> 00:12:01,830
add one more thing . One more 

297
00:12:01,830 --> 00:12:05,510
thing that I'm doing is I have roped in 

298
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all the F F R D C you arcs to be 

299
00:12:09,460 --> 00:12:12,400
the extension of my technical arm , 

300
00:12:12,410 --> 00:12:14,640
right ? I collaborate with them . I 

301
00:12:14,640 --> 00:12:18,220
have quarterly meetings with all the C 

302
00:12:18,220 --> 00:12:21,430
E O . S of FFR DCs have quarterly 

303
00:12:21,430 --> 00:12:24,480
meeting with Ceo of york university 

304
00:12:24,480 --> 00:12:26,591
affiliated research and I'm sorry for 

305
00:12:26,591 --> 00:12:28,813
all the acronyms . Okay . But literally 

306
00:12:28,813 --> 00:12:30,869
what they're doing is helping me out 

307
00:12:30,869 --> 00:12:33,420
and build the technical underpinning of 

308
00:12:33,430 --> 00:12:37,210
what we're uh strategic , strategically 

309
00:12:37,220 --> 00:12:40,460
thrusting . We're developing physics 

310
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based modeling simulation that's tied 

311
00:12:43,290 --> 00:12:45,710
into a campaign level modeling and 

312
00:12:45,710 --> 00:12:48,520
simulation . So I know the outcome 

313
00:12:48,700 --> 00:12:52,690
technology , A VS . B versus C versus D , 

314
00:12:52,700 --> 00:12:54,950
which one makes a difference in the 

315
00:12:54,960 --> 00:12:57,600
outcome of the mission , then it tells 

316
00:12:57,600 --> 00:13:00,520
me where to invest money in . We're 

317
00:13:00,520 --> 00:13:04,080
standing up , a highly classified war 

318
00:13:04,080 --> 00:13:07,660
room will be inside a skiff 

319
00:13:07,670 --> 00:13:10,670
so I can lay out what is the red cape 

320
00:13:10,680 --> 00:13:13,970
doing . And then I'm able to lay out 

321
00:13:13,980 --> 00:13:16,650
what we are doing and then help me to 

322
00:13:16,650 --> 00:13:19,350
steer investment strategy 

323
00:13:19,360 --> 00:13:23,120
towards leap ahead technologies . So 

324
00:13:23,120 --> 00:13:25,200
that's exactly the path I'm on . 

325
00:13:26,300 --> 00:13:29,250
So yeah , let me just add in a little 

326
00:13:29,250 --> 00:13:31,450
bit , I think I'll just weave in 

327
00:13:31,450 --> 00:13:33,339
several of the thought process is 

328
00:13:33,339 --> 00:13:35,506
because I think there are relevant and 

329
00:13:35,506 --> 00:13:38,260
absolutely right . Uh the T7 a trainer 

330
00:13:38,270 --> 00:13:41,890
uh that we have it boing we went 

331
00:13:41,900 --> 00:13:44,330
from a computer screen to first flight 

332
00:13:44,330 --> 00:13:47,230
in 36 months . Uh this platform was 

333
00:13:47,230 --> 00:13:49,510
delivered and developed with our 

334
00:13:49,510 --> 00:13:53,020
partner in Sweden saab um another piece 

335
00:13:53,020 --> 00:13:55,242
of the example and I'm gonna just throw 

336
00:13:55,242 --> 00:13:57,550
a little picture for you . Um and it is 

337
00:13:57,560 --> 00:14:00,400
um was built with using model based 

338
00:14:00,400 --> 00:14:02,400
engineering techniques to full size 

339
00:14:02,400 --> 00:14:05,130
determined assembly um and all kinds of 

340
00:14:05,130 --> 00:14:08,100
other um current generation and next 

341
00:14:08,100 --> 00:14:10,520
generation capabilities that allow us 

342
00:14:10,520 --> 00:14:13,490
to field capability in an agile way , 

343
00:14:13,500 --> 00:14:16,150
uh and support a really dynamic 

344
00:14:16,160 --> 00:14:18,610
environment that we're in . Um This is 

345
00:14:18,610 --> 00:14:20,499
just one example , there are many 

346
00:14:20,499 --> 00:14:22,610
examples very similar to this that we 

347
00:14:22,610 --> 00:14:24,499
and our partners in industry have 

348
00:14:24,499 --> 00:14:26,721
delivered recently . We need to do that 

349
00:14:26,721 --> 00:14:28,943
like 1000 times . Um we need to do that 

350
00:14:28,943 --> 00:14:31,950
over and over and over again across uh 

351
00:14:31,960 --> 00:14:34,310
from seabed to space on many different 

352
00:14:34,310 --> 00:14:36,940
platforms . And not only does that take 

353
00:14:36,940 --> 00:14:38,662
us as the , you know , defense 

354
00:14:38,662 --> 00:14:40,884
industrial based companies working well 

355
00:14:40,884 --> 00:14:43,107
within our own four walls , it requires 

356
00:14:43,107 --> 00:14:45,218
partnerships and we've already talked 

357
00:14:45,218 --> 00:14:47,384
about this conference , the importance 

358
00:14:47,384 --> 00:14:49,329
of our partners around the world , 

359
00:14:49,329 --> 00:14:51,551
leveraging that capability and capacity 

360
00:14:51,551 --> 00:14:53,551
from partners around the world . We 

361
00:14:53,551 --> 00:14:55,607
have worked in Australia in progress 

362
00:14:55,607 --> 00:14:58,280
and in other parts that we all have to 

363
00:14:58,290 --> 00:15:01,260
take advantage of and then uh the 

364
00:15:01,270 --> 00:15:03,270
emergent , what I call the emergent 

365
00:15:03,270 --> 00:15:06,480
defense tech supply chain , being able 

366
00:15:06,480 --> 00:15:08,424
to work with them and we have work 

367
00:15:08,424 --> 00:15:10,480
going on there as well to be able to 

368
00:15:10,480 --> 00:15:12,480
ingest uh capabilities that they're 

369
00:15:12,480 --> 00:15:14,800
delivering on the commercial side , um 

370
00:15:14,810 --> 00:15:17,850
and make dual use work even faster . Um 

371
00:15:17,850 --> 00:15:20,128
and there are examples of that as well . 

372
00:15:20,128 --> 00:15:22,239
So if you think about this whole idea 

373
00:15:22,239 --> 00:15:24,350
of seeing the partnership ecosystem , 

374
00:15:24,350 --> 00:15:27,200
both from a company , traditional 

375
00:15:27,200 --> 00:15:29,930
emergent global perspective and then 

376
00:15:29,930 --> 00:15:32,590
working at an agile pace to deliver 

377
00:15:32,590 --> 00:15:34,880
capability at a pace , we've never done 

378
00:15:34,880 --> 00:15:37,290
before , I think the whole system has 

379
00:15:37,290 --> 00:15:39,380
got to get working toward that 

380
00:15:39,380 --> 00:15:41,436
objective and we have examples where 

381
00:15:41,436 --> 00:15:43,658
we've done it already , we just need to 

382
00:15:43,658 --> 00:15:46,300
do it more . One of the things I wanted 

383
00:15:46,310 --> 00:15:49,710
to get after with that opening question 

384
00:15:49,720 --> 00:15:53,360
was whether the relationship 

385
00:15:53,370 --> 00:15:56,580
that the Defense Department has with 

386
00:15:56,840 --> 00:15:59,740
not only existing contractors , prime 

387
00:15:59,740 --> 00:16:02,620
contractors like Boeing like google , 

388
00:16:02,620 --> 00:16:04,630
but also start up . So when we talk 

389
00:16:04,630 --> 00:16:06,700
about innovation , that's often 

390
00:16:06,710 --> 00:16:09,080
referencing these small companies that 

391
00:16:09,080 --> 00:16:12,260
just have ideas , um , they don't 

392
00:16:12,260 --> 00:16:15,360
necessarily have the capital to really 

393
00:16:15,370 --> 00:16:18,360
invest and scale them . So I'm 

394
00:16:18,360 --> 00:16:20,820
wondering if the current state of that 

395
00:16:20,820 --> 00:16:24,290
relationship is actually sustainable 

396
00:16:24,300 --> 00:16:27,030
and how each of , from each of your 

397
00:16:27,040 --> 00:16:30,430
perspective , respective , um , 

398
00:16:30,440 --> 00:16:33,510
podiums , how do you get after that 

399
00:16:35,310 --> 00:16:37,680
all to state ? I was in Silicon Valley 

400
00:16:37,680 --> 00:16:39,902
this past week and met with a number of 

401
00:16:39,902 --> 00:16:42,124
companies and met with a number of uh , 

402
00:16:42,124 --> 00:16:44,970
uh , venture capitalist . I do see that 

403
00:16:44,970 --> 00:16:47,590
there's opportunity um , to , to do 

404
00:16:47,590 --> 00:16:51,590
this and I do see a coalescing of focus 

405
00:16:51,600 --> 00:16:55,520
based on current events in the interest 

406
00:16:55,520 --> 00:16:58,730
of national security at the same time . 

407
00:16:58,740 --> 00:17:00,851
What we've got to do is actually pick 

408
00:17:00,851 --> 00:17:02,796
some winners and get some of these 

409
00:17:02,796 --> 00:17:05,780
small companies to a point where we go , 

410
00:17:05,790 --> 00:17:09,180
you know , they show that we've taken a 

411
00:17:09,180 --> 00:17:11,440
small company to be able to go execute 

412
00:17:11,450 --> 00:17:13,617
and there's been examples of companies 

413
00:17:13,617 --> 00:17:15,950
that have done things in the commercial , 

414
00:17:15,950 --> 00:17:18,283
start small and move forward . You know , 

415
00:17:18,283 --> 00:17:21,110
um , out over time , like SpaceX and in 

416
00:17:21,110 --> 00:17:23,277
video and others that have done this . 

417
00:17:23,277 --> 00:17:25,443
But we've got to actually look at some 

418
00:17:25,443 --> 00:17:27,554
of the ones that are doing today that 

419
00:17:27,554 --> 00:17:29,721
we're gonna need in the future and how 

420
00:17:29,721 --> 00:17:31,832
we align and bring them forward . And 

421
00:17:31,832 --> 00:17:31,450
sometimes it's gonna take some 

422
00:17:31,460 --> 00:17:33,860
nurturing . We just can't use a natural 

423
00:17:33,860 --> 00:17:35,971
system that we have , we actually got 

424
00:17:35,971 --> 00:17:38,082
to do , you know , kind of hand walks 

425
00:17:38,082 --> 00:17:40,027
like hands walking a staff package 

426
00:17:40,027 --> 00:17:42,082
through the pentagon to make sure it 

427
00:17:42,082 --> 00:17:41,660
gets done . We've got to actually do 

428
00:17:41,660 --> 00:17:44,400
that aspect to walk it through . And 

429
00:17:44,400 --> 00:17:46,567
then once we've done that we build the 

430
00:17:46,567 --> 00:17:48,511
uh habit pattern of doing things a 

431
00:17:48,511 --> 00:17:50,511
little bit differently . Um and use 

432
00:17:50,511 --> 00:17:52,789
that as an approach to to move forward , 

433
00:17:52,789 --> 00:17:55,011
Lauren I , you know , I think it's fair 

434
00:17:55,011 --> 00:17:58,460
to say that the speed with which 

435
00:17:58,470 --> 00:18:01,920
um the small incubation 

436
00:18:01,920 --> 00:18:04,800
companies get to market with something 

437
00:18:04,800 --> 00:18:06,980
that is commercially relevant and 

438
00:18:06,990 --> 00:18:09,157
applicable to D . O . D . Has been too 

439
00:18:09,157 --> 00:18:12,910
slow . But I would also say that 

440
00:18:12,920 --> 00:18:15,530
since the in stan she ation of D I U D 

441
00:18:15,530 --> 00:18:19,020
I U X in 2015 , 2016 , if you look 

442
00:18:19,030 --> 00:18:22,110
at the focus of the innovation 

443
00:18:22,110 --> 00:18:24,090
ecosystem , on the aerospace and 

444
00:18:24,090 --> 00:18:27,850
defense community has been significant . 

445
00:18:27,860 --> 00:18:30,530
Aerospace and defense market . In fact , 

446
00:18:30,540 --> 00:18:32,762
recent numbers that were provided to me 

447
00:18:32,762 --> 00:18:35,380
by my friend rashaw would suggest to 

448
00:18:35,380 --> 00:18:39,220
you that um there's been no greater 

449
00:18:39,220 --> 00:18:42,640
time than right now when the investment 

450
00:18:42,640 --> 00:18:44,418
community VC community has been 

451
00:18:44,418 --> 00:18:46,540
investing in the innovation ecosystem 

452
00:18:46,540 --> 00:18:48,484
in companies that are specifically 

453
00:18:48,484 --> 00:18:50,429
focused on aerospace and defense , 

454
00:18:50,429 --> 00:18:53,200
that's huge and that is the secretary 

455
00:18:53,200 --> 00:18:55,190
shoes point . We need to get that 

456
00:18:55,190 --> 00:18:58,500
capital working for us . It is for fair , 

457
00:18:58,510 --> 00:19:01,200
however , to say that those companies 

458
00:19:01,200 --> 00:19:04,250
have not been able to get to a scaled 

459
00:19:04,250 --> 00:19:06,417
program inside the department and that 

460
00:19:06,417 --> 00:19:08,583
I think General Brown is what you were 

461
00:19:08,583 --> 00:19:10,806
referring to . How do we pick a few and 

462
00:19:10,806 --> 00:19:12,917
then apply them ? And this is where I 

463
00:19:12,917 --> 00:19:15,083
think the idea of a modular concept is 

464
00:19:15,083 --> 00:19:17,400
so important . Rather than trying to go 

465
00:19:17,400 --> 00:19:19,511
to the Big Bang a program of record , 

466
00:19:19,511 --> 00:19:21,733
we need to pick a few , get put them in 

467
00:19:21,733 --> 00:19:23,622
the hands of soldiers , sailors , 

468
00:19:23,622 --> 00:19:25,733
airmen , marines to test them to test 

469
00:19:25,733 --> 00:19:27,844
them in comte tested environments and 

470
00:19:27,844 --> 00:19:29,678
non contested environments . The 

471
00:19:29,678 --> 00:19:31,622
examples of what we learned in the 

472
00:19:31,622 --> 00:19:33,289
Ukraine around how commercial 

473
00:19:33,289 --> 00:19:35,260
technologies can really help in a 

474
00:19:35,260 --> 00:19:37,204
contested environment . Those same 

475
00:19:37,204 --> 00:19:39,510
lessons can be applied today to the 

476
00:19:39,510 --> 00:19:41,621
innovation ecosystem and I think it's 

477
00:19:41,621 --> 00:19:43,843
very much akin to what you're trying to 

478
00:19:43,843 --> 00:19:46,010
do . Um , Secretary you know , Karen , 

479
00:19:46,010 --> 00:19:48,260
I um , I spent six years as Chief 

480
00:19:48,260 --> 00:19:50,371
information Officer for bowing before 

481
00:19:50,400 --> 00:19:52,400
running our services business now , 

482
00:19:52,400 --> 00:19:54,400
defense business , I spent a lot of 

483
00:19:54,400 --> 00:19:56,400
time in Silicon Valley and um , the 

484
00:19:56,400 --> 00:19:58,700
small startup early stage companies are 

485
00:19:58,700 --> 00:20:00,756
product companies , they work on the 

486
00:20:00,756 --> 00:20:02,890
basis of processes that are about 

487
00:20:02,890 --> 00:20:05,710
delivering product on a consistent 

488
00:20:05,720 --> 00:20:08,580
ongoing basis . Our industry is , is 

489
00:20:08,580 --> 00:20:11,050
really designed around programs and 

490
00:20:11,060 --> 00:20:13,660
there is not a natural coming together 

491
00:20:13,670 --> 00:20:16,020
of those two approaches and we've got 

492
00:20:16,020 --> 00:20:18,070
to figure out how to solve . And I 

493
00:20:18,070 --> 00:20:20,310
think that companies like ours who 

494
00:20:20,310 --> 00:20:22,480
understand how to execute as a 

495
00:20:22,480 --> 00:20:24,940
development and contracting with 

496
00:20:24,940 --> 00:20:27,390
Department Defense and others have got 

497
00:20:27,390 --> 00:20:29,612
to take a real strong , you know , lead 

498
00:20:29,612 --> 00:20:32,070
and and pull through um , a lot of 

499
00:20:32,070 --> 00:20:34,490
these capabilities and today it is , 

500
00:20:34,500 --> 00:20:36,167
you know , you're right , the 

501
00:20:36,167 --> 00:20:38,222
investment in defense tech from a VC 

502
00:20:38,222 --> 00:20:40,389
perspective is significantly higher in 

503
00:20:40,389 --> 00:20:42,611
general than general VC investment . So 

504
00:20:42,611 --> 00:20:44,833
there is a lot of opportunity out there 

505
00:20:44,833 --> 00:20:47,056
and it's essentially a field of daisies 

506
00:20:47,056 --> 00:20:49,167
right now , uh , that if we don't get 

507
00:20:49,167 --> 00:20:51,333
our arms around , um , and get focused 

508
00:20:51,333 --> 00:20:53,222
on on the right things , will not 

509
00:20:53,222 --> 00:20:55,222
service well with regard to getting 

510
00:20:55,222 --> 00:20:57,000
focused and taking advantage of 

511
00:20:57,000 --> 00:20:59,930
bringing those , what I consider to be 

512
00:20:59,940 --> 00:21:03,370
a real great product capabilities into 

513
00:21:03,380 --> 00:21:06,270
um , big industrial capabilities and 

514
00:21:06,270 --> 00:21:08,550
programs that can get fielded very 

515
00:21:08,550 --> 00:21:10,772
quickly . Do you feel like , you know , 

516
00:21:10,772 --> 00:21:13,570
I'm sorry Lauren , I'm taking , I just 

517
00:21:13,580 --> 00:21:15,802
feel like there's a follow up , there , 

518
00:21:15,802 --> 00:21:18,000
is there something that needs to be 

519
00:21:18,000 --> 00:21:20,660
done to incent a Boeing or the large O 

520
00:21:20,660 --> 00:21:22,800
E M s to really pull through these 

521
00:21:22,810 --> 00:21:24,810
smaller product companies and these 

522
00:21:24,940 --> 00:21:26,530
tested , you know , sort of 

523
00:21:26,530 --> 00:21:28,363
technologies that may not have a 

524
00:21:28,363 --> 00:21:30,641
platform ? Yeah , I think we , we just , 

525
00:21:30,641 --> 00:21:32,697
I think if you think about the , the 

526
00:21:32,697 --> 00:21:34,641
agile methodology at large , it is 

527
00:21:34,641 --> 00:21:36,697
about bringing everyone to the table 

528
00:21:36,697 --> 00:21:39,030
and the way that this works really well , 

529
00:21:39,030 --> 00:21:41,252
is if we have a war fighter , a defense 

530
00:21:41,252 --> 00:21:43,308
company and an emerging tech company 

531
00:21:43,308 --> 00:21:45,474
all together trying to solve a problem 

532
00:21:45,474 --> 00:21:47,700
and a big big , big big tech company , 

533
00:21:47,710 --> 00:21:49,821
we can bring them along too . Right . 

534
00:21:49,821 --> 00:21:51,766
So actually one of the companies I 

535
00:21:51,766 --> 00:21:53,877
visited look on , we actually had two 

536
00:21:53,877 --> 00:21:56,130
of the primes actually working with a 

537
00:21:56,130 --> 00:21:58,000
small company and so the more we 

538
00:21:58,000 --> 00:22:00,370
actually spend time together , we can 

539
00:22:00,380 --> 00:22:02,547
quit talking past each other and start 

540
00:22:02,547 --> 00:22:04,602
talking to each other and getting in 

541
00:22:04,602 --> 00:22:06,769
the same room to move things forward . 

542
00:22:06,769 --> 00:22:08,824
And I think that's the real value of 

543
00:22:08,824 --> 00:22:10,936
building relationships and for all of 

544
00:22:10,936 --> 00:22:10,750
us that are here , particularly this 

545
00:22:10,750 --> 00:22:12,639
panel to have an interest in this 

546
00:22:12,639 --> 00:22:14,639
particular topic , the more time we 

547
00:22:14,639 --> 00:22:16,861
spend together , the more we'll be able 

548
00:22:16,861 --> 00:22:16,440
to move this , move this forward and 

549
00:22:16,450 --> 00:22:18,506
figure out where the friction points 

550
00:22:18,506 --> 00:22:20,561
are . I think there are three things 

551
00:22:20,561 --> 00:22:22,561
that have to happen in order to get 

552
00:22:22,561 --> 00:22:24,394
startups and emerging technology 

553
00:22:24,394 --> 00:22:27,420
companies to scale in the realm of the 

554
00:22:27,420 --> 00:22:29,720
national Defense Business fear first of 

555
00:22:29,720 --> 00:22:33,360
all is for years D . I , you play the 

556
00:22:33,360 --> 00:22:35,360
role as the mentor . So if you're a 

557
00:22:35,360 --> 00:22:37,471
small startup company , they were out 

558
00:22:37,471 --> 00:22:39,582
there kind of looking around saying , 

559
00:22:39,582 --> 00:22:39,110
hey , what's out there , who's doing 

560
00:22:39,110 --> 00:22:41,277
what ? And they were the mentor said , 

561
00:22:41,277 --> 00:22:43,499
they said , hey , are you interested in 

562
00:22:43,499 --> 00:22:45,666
being able to take your technology and 

563
00:22:45,666 --> 00:22:47,888
let's help you mold it to where you can 

564
00:22:47,888 --> 00:22:49,943
get into the process in the pentagon 

565
00:22:49,943 --> 00:22:52,166
whether it was an O . T . A . Or or mid 

566
00:22:52,166 --> 00:22:54,221
tier acquisition , whatever the case 

567
00:22:54,221 --> 00:22:56,388
may be to help them along , it used to 

568
00:22:56,388 --> 00:22:58,610
be the D . I . You operated right under 

569
00:22:58,610 --> 00:23:00,832
the Secretary of defense . So really on 

570
00:23:00,832 --> 00:23:03,054
almost on a daily basis . The Secretary 

571
00:23:03,054 --> 00:23:05,110
of Defense knew what was emerging in 

572
00:23:05,110 --> 00:23:07,332
the in the in the small business sector 

573
00:23:07,332 --> 00:23:09,320
there . What was the Department of 

574
00:23:09,320 --> 00:23:11,542
Defense needing to be aware of in order 

575
00:23:11,542 --> 00:23:14,360
to solve these problems And also how 

576
00:23:14,360 --> 00:23:16,490
did we connect that with the war 

577
00:23:16,490 --> 00:23:18,850
fighter ? So I think D . I . U . Needs 

578
00:23:18,850 --> 00:23:20,739
to be back under the Secretary of 

579
00:23:20,739 --> 00:23:23,990
Defense . Second of all is today as we 

580
00:23:23,990 --> 00:23:26,900
speak , phase three companies are 

581
00:23:26,900 --> 00:23:30,580
limited to no more than 50% VC 

582
00:23:30,590 --> 00:23:34,190
money . Now if private capital is 

583
00:23:34,190 --> 00:23:36,190
flowing to these companies then the 

584
00:23:36,190 --> 00:23:38,357
private capital folks are saying , hey 

585
00:23:38,357 --> 00:23:40,357
listen this is where we think we're 

586
00:23:40,357 --> 00:23:40,060
going to get a return on investment . 

587
00:23:40,070 --> 00:23:43,790
Why wouldn't we as a nation want to 

588
00:23:43,790 --> 00:23:46,380
say let's follow that demand signal and 

589
00:23:46,380 --> 00:23:48,547
make sure that we are following public 

590
00:23:48,547 --> 00:23:50,658
dollars with private dollars that are 

591
00:23:50,658 --> 00:23:52,880
being invested there . That's kind of a 

592
00:23:52,880 --> 00:23:52,530
signal . You know , we always talk 

593
00:23:52,530 --> 00:23:54,752
about demand signal coming from D . O . 

594
00:23:54,752 --> 00:23:56,863
D . To the private sector . This is a 

595
00:23:56,863 --> 00:23:59,086
private sector signal coming to D . O . 

596
00:23:59,086 --> 00:24:01,308
D . Going by the way , this is where we 

597
00:24:01,308 --> 00:24:01,280
think an investment's gonna make a 

598
00:24:01,280 --> 00:24:03,450
return . So we ought to do is we ought 

599
00:24:03,450 --> 00:24:06,540
to remove the 50% VC cap for phase 

600
00:24:06,540 --> 00:24:09,500
three . And then thirdly is we have to 

601
00:24:09,500 --> 00:24:11,990
be mindful too of how these small 

602
00:24:11,990 --> 00:24:14,230
companies see what's going on . And put 

603
00:24:14,230 --> 00:24:16,286
it in perspective of what happens in 

604
00:24:16,286 --> 00:24:19,120
china . Now , if these sorts of 

605
00:24:19,120 --> 00:24:22,540
concepts start in china , you know how 

606
00:24:22,540 --> 00:24:25,360
they start , this is exactly how they 

607
00:24:25,360 --> 00:24:28,720
start . China starts with this 

608
00:24:28,730 --> 00:24:31,430
blank sheet of paper and they just go 

609
00:24:31,430 --> 00:24:33,652
to work , they say , okay , what what's 

610
00:24:33,652 --> 00:24:35,819
the problem ? How do we solve it ? How 

611
00:24:35,819 --> 00:24:35,450
do we put together all the 

612
00:24:35,450 --> 00:24:37,672
opportunities out there out there ? How 

613
00:24:37,672 --> 00:24:39,728
do we put dollars in the right place 

614
00:24:39,820 --> 00:24:43,420
now for a small startup ? In D . O . 

615
00:24:43,420 --> 00:24:47,090
D . This is this is the flow 

616
00:24:47,090 --> 00:24:49,090
chart , this is seriously , this is 

617
00:24:49,090 --> 00:24:51,312
this is the acquisition flow chart . So 

618
00:24:51,312 --> 00:24:53,257
think about it , if you're a small 

619
00:24:53,257 --> 00:24:55,479
startup and you look at it and go now , 

620
00:24:55,479 --> 00:24:57,646
how do I navigate that , you know , no 

621
00:24:57,646 --> 00:24:59,812
wonder the small startups and emerging 

622
00:24:59,812 --> 00:24:59,510
technology companies are looking at and 

623
00:24:59,510 --> 00:25:01,343
go , man , I'm not interested in 

624
00:25:01,343 --> 00:25:03,399
getting anywhere near that . And why 

625
00:25:03,399 --> 00:25:05,399
are the chinese outpacing us in the 

626
00:25:05,399 --> 00:25:07,288
development of new technology and 

627
00:25:07,288 --> 00:25:09,343
getting it in the hands of their war 

628
00:25:09,343 --> 00:25:11,454
fighters because they start with this 

629
00:25:11,454 --> 00:25:13,560
and we start with this , we got now 

630
00:25:13,560 --> 00:25:15,560
listen , our our our start is never 

631
00:25:15,560 --> 00:25:17,782
going to be this , but our star has got 

632
00:25:17,782 --> 00:25:19,727
to be something that's a whole lot 

633
00:25:19,727 --> 00:25:23,060
simpler than this . So I will say that 

634
00:25:23,070 --> 00:25:25,950
in terms of uh starting out looking at 

635
00:25:25,950 --> 00:25:28,770
Silicon Valley and other innovative 

636
00:25:28,770 --> 00:25:31,530
small company D . I . You certainly was 

637
00:25:31,530 --> 00:25:34,350
in the forefront , Okay , in the 2015 

638
00:25:34,350 --> 00:25:36,990
timeframe it's a function of time . 

639
00:25:36,990 --> 00:25:39,530
What has happened now , every single 

640
00:25:39,530 --> 00:25:42,160
service has opened up their door to 

641
00:25:42,170 --> 00:25:45,130
also look for innovative small 

642
00:25:45,130 --> 00:25:47,130
companies solution to solve their 

643
00:25:47,130 --> 00:25:50,180
problems . So now we have a innovation 

644
00:25:50,190 --> 00:25:54,140
ecosystem that I can tell you . Um 

645
00:25:55,670 --> 00:25:58,130
in addition to what D . I . U . Is 

646
00:25:58,130 --> 00:26:01,030
doing . Uh There's army rapid 

647
00:26:01,030 --> 00:26:03,290
capability and critical technology 

648
00:26:03,290 --> 00:26:05,890
Office fund a small company to develop 

649
00:26:05,890 --> 00:26:07,834
a piece of software companies here 

650
00:26:07,834 --> 00:26:11,470
actually at the uh but the software 

651
00:26:12,250 --> 00:26:15,710
will be able to detect cyber intrusion 

652
00:26:15,720 --> 00:26:19,130
into if somebody's tinkering with your 

653
00:26:19,140 --> 00:26:21,340
engine , you'll be able to know that . 

654
00:26:21,350 --> 00:26:25,220
So literally so via armies , minimal 

655
00:26:25,220 --> 00:26:26,942
investment , they demonstrated 

656
00:26:26,942 --> 00:26:30,030
capability on striker right now they're 

657
00:26:30,030 --> 00:26:32,500
deploying the software on airborne 

658
00:26:32,500 --> 00:26:35,590
platforms as well . So what I don't 

659
00:26:35,590 --> 00:26:37,600
want to happen is restrict to say 

660
00:26:37,610 --> 00:26:39,610
innovation can only come out of one 

661
00:26:39,610 --> 00:26:41,540
organization , it has to be an 

662
00:26:41,550 --> 00:26:44,070
ecosystem and allow every single 

663
00:26:44,070 --> 00:26:45,792
service to look for innovative 

664
00:26:45,792 --> 00:26:48,330
solutions . Right ? So that's the path 

665
00:26:48,330 --> 00:26:52,120
that we're on . Okay . And uh 

666
00:26:52,790 --> 00:26:56,720
we are enhancing the availability of 

667
00:26:56,730 --> 00:26:58,619
any of the services to search for 

668
00:26:58,619 --> 00:27:01,540
solution as well as Special Ops guys 

669
00:27:01,550 --> 00:27:03,790
who worked very closely small companies 

670
00:27:03,800 --> 00:27:07,450
to look for solutions . Uh 

671
00:27:07,460 --> 00:27:10,300
Yeah that is the acquisition pain 

672
00:27:10,300 --> 00:27:13,960
points . So I 

673
00:27:14,520 --> 00:27:17,600
I will emphasize one of the things 

674
00:27:17,610 --> 00:27:21,500
so I've had I have had a sequence of 

675
00:27:21,510 --> 00:27:23,830
of meetings , a roundtable discussion 

676
00:27:23,830 --> 00:27:25,990
with small companies , ceo s a small 

677
00:27:25,990 --> 00:27:29,000
company on a monthly basis . I heard 

678
00:27:29,000 --> 00:27:31,410
their pain points . And what I ended up 

679
00:27:31,410 --> 00:27:33,632
doing is creating a spreadsheet because 

680
00:27:33,632 --> 00:27:35,577
engineer you create spreadsheets , 

681
00:27:35,577 --> 00:27:37,632
right ? Of all these pain points , I 

682
00:27:37,632 --> 00:27:39,790
have pages of stuff and I categorized 

683
00:27:39,790 --> 00:27:41,957
it and then I shared it with depths of 

684
00:27:41,957 --> 00:27:44,179
death . I said here's the pain points I 

685
00:27:44,179 --> 00:27:46,346
have heard from small company in terms 

686
00:27:46,346 --> 00:27:48,790
of dealing with the D . O . D . And she 

687
00:27:48,790 --> 00:27:50,870
said this is great , let's go tackle 

688
00:27:50,880 --> 00:27:53,040
this . Right then . She wrote in 

689
00:27:53,050 --> 00:27:56,190
acquisition sustainment , the C . I . O . 

690
00:27:56,200 --> 00:27:59,400
The the SAP co officer special 

691
00:27:59,410 --> 00:28:03,350
Programs office uh C . D . A . O . I . 

692
00:28:03,350 --> 00:28:05,550
N . S . All the organizations she said 

693
00:28:05,550 --> 00:28:08,200
let's look at how we can collectively 

694
00:28:08,210 --> 00:28:10,350
tackle this problem because it isn't 

695
00:28:10,350 --> 00:28:12,128
one organization that can solve 

696
00:28:12,128 --> 00:28:15,320
everything . So under depths of death , 

697
00:28:15,330 --> 00:28:18,920
constant pressure on all of us 

698
00:28:18,930 --> 00:28:20,960
to work these problems . She has 

699
00:28:20,960 --> 00:28:23,182
mentally meetings with us by the way to 

700
00:28:23,182 --> 00:28:25,404
make sure we're progressing on it . And 

701
00:28:25,404 --> 00:28:29,160
she literally defined okay uh I . N . 

702
00:28:29,160 --> 00:28:33,150
S . With uh C . I . O . Your job 

703
00:28:33,150 --> 00:28:36,860
is to simplify the security uh 

704
00:28:36,870 --> 00:28:39,037
aspect of it namely why does it take a 

705
00:28:39,037 --> 00:28:41,314
year to get a secret clearance ? Right . 

706
00:28:41,314 --> 00:28:43,203
Why does it take so long to get a 

707
00:28:43,203 --> 00:28:45,426
facility clearance ? So they're working 

708
00:28:45,426 --> 00:28:48,230
on that aspect of it ? Okay um A and S . 

709
00:28:48,240 --> 00:28:50,770
Is working on the workforce . 

710
00:28:50,780 --> 00:28:52,960
Innovation , workforce . How do we 

711
00:28:52,960 --> 00:28:56,390
sustain our workforce and and what I'm 

712
00:28:56,390 --> 00:28:58,520
working on is bridging the Valley of 

713
00:28:58,520 --> 00:29:00,970
Death , which ties into what we're 

714
00:29:00,970 --> 00:29:03,580
doing on strategic capital , we have a 

715
00:29:03,580 --> 00:29:05,636
bunch of initiatives that we've laid 

716
00:29:05,636 --> 00:29:08,040
out , we just presented to everybody 

717
00:29:08,050 --> 00:29:11,170
through a D mag and things we need to 

718
00:29:11,170 --> 00:29:14,390
do is simplify our acquisition , uh , 

719
00:29:14,400 --> 00:29:16,690
simplify our contracting so we can more 

720
00:29:16,690 --> 00:29:19,370
small company much quicker . Right ? 

721
00:29:19,380 --> 00:29:21,770
Rather than taking many , many months 

722
00:29:21,770 --> 00:29:23,980
to go through contracting . So we're 

723
00:29:23,990 --> 00:29:27,080
absolutely are trying to tackle a lot 

724
00:29:27,080 --> 00:29:30,410
of these acquisitions pain points . And 

725
00:29:30,410 --> 00:29:32,632
by the way , you know that that chart , 

726
00:29:32,632 --> 00:29:34,743
which is very interesting . Thank you 

727
00:29:34,743 --> 00:29:36,966
congressman . We're talking a lot about 

728
00:29:36,966 --> 00:29:36,780
the small companies in the Silicon 

729
00:29:36,780 --> 00:29:38,613
Valley . We have people that are 

730
00:29:38,613 --> 00:29:41,390
experts and not have to navigate that 

731
00:29:41,390 --> 00:29:43,501
chart and I would much rather than be 

732
00:29:43,501 --> 00:29:45,612
working on innovating than navigating 

733
00:29:45,612 --> 00:29:47,668
that chart , I think it's not just a 

734
00:29:47,668 --> 00:29:49,834
problem for them . It's it's uh , it's 

735
00:29:49,834 --> 00:29:52,001
something we all need to work together 

736
00:29:52,001 --> 00:29:54,168
for . Sure . Yeah . Secretary , Sure . 

737
00:29:54,168 --> 00:29:56,390
You mentioned the magic word , which is 

738
00:29:56,390 --> 00:29:59,190
workforce and according to our poll , 

739
00:29:59,200 --> 00:30:02,650
our audience thinks that investment in 

740
00:30:02,650 --> 00:30:05,840
the workforce , um , is one of the 

741
00:30:05,840 --> 00:30:08,420
areas that needs to that needs 

742
00:30:08,420 --> 00:30:10,310
improvement . Can you talk more 

743
00:30:10,310 --> 00:30:12,960
specifically about how you're 

744
00:30:12,960 --> 00:30:15,071
addressing that , particularly in the 

745
00:30:15,071 --> 00:30:17,016
stem area and then The rest of the 

746
00:30:17,016 --> 00:30:18,904
panelists . I'd love to hear your 

747
00:30:18,904 --> 00:30:21,182
thoughts . Yes , certainly in my world , 

748
00:30:21,182 --> 00:30:23,127
I'm trying to attract top talent , 

749
00:30:23,127 --> 00:30:25,293
right . One of the things that we have 

750
00:30:25,293 --> 00:30:27,630
done is we created this smart 

751
00:30:27,640 --> 00:30:30,140
scholarship program and the smart 

752
00:30:30,140 --> 00:30:32,196
scholarship programs , I'm gonna pay 

753
00:30:32,196 --> 00:30:34,418
for your undergraduate degree , right , 

754
00:30:34,418 --> 00:30:36,650
if I pay four years of your degree in 

755
00:30:36,650 --> 00:30:39,570
one of the 21 stem fields of interest 

756
00:30:39,570 --> 00:30:42,940
to the d . o . d . You spent four years 

757
00:30:42,950 --> 00:30:45,117
working in one of our D . O . D . Labs 

758
00:30:45,117 --> 00:30:47,172
afterward . Okay . If I pay for your 

759
00:30:47,172 --> 00:30:49,339
PhD , maybe you have to spend a little 

760
00:30:49,339 --> 00:30:51,561
more time depending how long you finish 

761
00:30:51,561 --> 00:30:53,617
your PhD . Right ? So , so literally 

762
00:30:53,617 --> 00:30:55,783
this is exactly what we're doing . And 

763
00:30:55,783 --> 00:30:59,750
last year we funded 482 smart scholars . 

764
00:30:59,760 --> 00:31:01,704
Alright . And this year we want to 

765
00:31:01,704 --> 00:31:03,760
increase that again . So again , the 

766
00:31:03,760 --> 00:31:05,871
stem workforce that we built is going 

767
00:31:05,871 --> 00:31:07,982
to benefit the D . O . D . Okay . The 

768
00:31:07,982 --> 00:31:11,270
other thing we did is we created stem 

769
00:31:11,270 --> 00:31:13,640
camps with you in high school students . 

770
00:31:14,330 --> 00:31:16,700
Look , you know , I'm a geek , right ? 

771
00:31:16,710 --> 00:31:19,100
So I can , I would have loved this as a 

772
00:31:19,100 --> 00:31:21,211
junior high school student to spend a 

773
00:31:21,211 --> 00:31:25,200
week in a lab as a camp . Right ? So we 

774
00:31:25,200 --> 00:31:28,390
did that for 1200 junior high school 

775
00:31:28,390 --> 00:31:31,450
student , 10 stem camps , it was 

776
00:31:31,450 --> 00:31:35,330
highly successful and the kids loved it . 

777
00:31:35,980 --> 00:31:39,890
Half the kids were basically , 

778
00:31:39,900 --> 00:31:42,960
um , sons and daughters of our active 

779
00:31:42,960 --> 00:31:45,210
service members , Right ? This is a 

780
00:31:45,210 --> 00:31:47,970
great way to innovate them to go into 

781
00:31:47,970 --> 00:31:50,770
stem . So we fund a lot of those 

782
00:31:50,770 --> 00:31:52,659
activities to make sure we have a 

783
00:31:52,659 --> 00:31:55,910
steady pipeline of stem talent into the 

784
00:31:55,910 --> 00:31:59,450
workforce , Having a strong workforce 

785
00:31:59,460 --> 00:32:02,160
is incredibly important , right ? 

786
00:32:02,160 --> 00:32:04,327
There's absolutely no doubt about it . 

787
00:32:04,327 --> 00:32:06,271
I would say one other thing that's 

788
00:32:06,271 --> 00:32:08,438
painful for me if he's candid with you 

789
00:32:08,438 --> 00:32:11,190
guys , you know , I have to attract top 

790
00:32:11,190 --> 00:32:14,620
S and T talent , but the salary in the 

791
00:32:14,620 --> 00:32:16,620
government is going to be less than 

792
00:32:16,620 --> 00:32:18,920
half of what you can pay a google , 

793
00:32:18,930 --> 00:32:22,330
right ? And yet you're expecting me to 

794
00:32:22,340 --> 00:32:24,810
attract the , the highest caliber 

795
00:32:24,810 --> 00:32:28,020
talent . So these caps , these are all 

796
00:32:28,020 --> 00:32:30,960
the handcuffs that I have , um that's 

797
00:32:30,960 --> 00:32:34,750
all my ankles and my and my wrist 

798
00:32:34,760 --> 00:32:36,816
and you're asking me to hurry up and 

799
00:32:36,816 --> 00:32:38,871
race and beat china , just wanted to 

800
00:32:38,871 --> 00:32:41,250
let you know this , okay , we do hear 

801
00:32:41,250 --> 00:32:43,417
that a lot and I appreciate you saying 

802
00:32:43,417 --> 00:32:45,639
that we hear it a lot at google and I'm 

803
00:32:45,639 --> 00:32:47,639
sure all of my colleagues and other 

804
00:32:47,639 --> 00:32:49,861
technology companies would say the same 

805
00:32:49,861 --> 00:32:49,120
thing , it's about compensation 

806
00:32:49,120 --> 00:32:52,050
compensation and I would argue that 

807
00:32:52,060 --> 00:32:54,740
sure it matters , but that working on 

808
00:32:54,740 --> 00:32:58,050
really , really hard problems is also 

809
00:32:58,060 --> 00:33:00,500
of equal importance and it's how you 

810
00:33:00,500 --> 00:33:03,890
put your talent to work on those on 

811
00:33:03,890 --> 00:33:06,112
those problems that matters even more . 

812
00:33:06,390 --> 00:33:09,510
And um you know , there was a seminal 

813
00:33:09,510 --> 00:33:13,090
study in 2008 , Mackenzie did it about 

814
00:33:13,100 --> 00:33:15,700
the responsibility of leaders in 

815
00:33:15,700 --> 00:33:18,340
creating an environment for innovation 

816
00:33:18,350 --> 00:33:21,680
and ideation and the incubation of 

817
00:33:21,690 --> 00:33:24,160
technology and what it said that 

818
00:33:24,160 --> 00:33:26,430
leaders can do beyond anything else , 

819
00:33:26,430 --> 00:33:28,650
paying people , developing people is 

820
00:33:28,650 --> 00:33:32,330
creating a culture , Creating a 

821
00:33:32,330 --> 00:33:35,520
culture that celebrates 

822
00:33:35,530 --> 00:33:38,170
ideation and innovation and gives them 

823
00:33:38,170 --> 00:33:41,090
opportunities immediately on day one of 

824
00:33:41,090 --> 00:33:43,860
working in that kind of environment . 

825
00:33:43,870 --> 00:33:46,610
You know , Google is privileged to be a 

826
00:33:46,620 --> 00:33:50,190
cloud native company only 24 years old . 

827
00:33:50,190 --> 00:33:52,134
When I look at what the company is 

828
00:33:52,134 --> 00:33:54,079
achieved in 24 years , it's pretty 

829
00:33:54,079 --> 00:33:56,023
astounding . But I do think it's a 

830
00:33:56,023 --> 00:33:58,450
credit to the culture that was created , 

831
00:33:58,670 --> 00:34:02,150
You know , 24 years ago , it was about 

832
00:34:02,160 --> 00:34:04,770
taking risks and trying things rather 

833
00:34:04,770 --> 00:34:07,790
than about failure . It was , it is 

834
00:34:07,790 --> 00:34:09,901
about , I should say it still is this 

835
00:34:09,901 --> 00:34:12,490
way , it is about this idea of 

836
00:34:12,490 --> 00:34:16,130
curiosity and not um 

837
00:34:16,140 --> 00:34:19,360
organizational boundaries being curious , 

838
00:34:19,370 --> 00:34:21,740
enabling people to work across the 

839
00:34:21,740 --> 00:34:24,610
entity across the organization . We 

840
00:34:24,610 --> 00:34:26,950
have these 20% projects which are 

841
00:34:26,950 --> 00:34:30,410
amazing where any googler can say they 

842
00:34:30,410 --> 00:34:32,650
want to work for 20% of their time on 

843
00:34:32,650 --> 00:34:34,761
some interesting project and they can 

844
00:34:34,761 --> 00:34:37,730
immediately be applied to that hard 

845
00:34:37,740 --> 00:34:40,810
problem . So I think , I think that yes , 

846
00:34:40,820 --> 00:34:43,270
roles matter of compensation matters , 

847
00:34:43,270 --> 00:34:45,590
we are not naive to not believe that . 

848
00:34:45,600 --> 00:34:47,822
But I think equally as important as the 

849
00:34:47,822 --> 00:34:49,822
role in leadership and creating the 

850
00:34:49,822 --> 00:34:52,044
right kind of environment for people to 

851
00:34:52,044 --> 00:34:54,044
really flourish . And I think too , 

852
00:34:54,044 --> 00:34:56,156
that there's I think too that there's 

853
00:34:56,156 --> 00:34:59,260
there's another another dimension to 

854
00:34:59,260 --> 00:35:01,482
this that we ought to be thinking about 

855
00:35:01,482 --> 00:35:04,380
and that is the value of practical 

856
00:35:04,380 --> 00:35:06,269
knowledge and what happens in the 

857
00:35:06,269 --> 00:35:09,030
military is something that is of great 

858
00:35:09,030 --> 00:35:11,252
value on the private sector aside . And 

859
00:35:11,252 --> 00:35:13,308
the question is is how do you always 

860
00:35:13,308 --> 00:35:15,363
cross pollinate that ? So how do you 

861
00:35:15,363 --> 00:35:17,474
encourage folks that have maybe had a 

862
00:35:17,474 --> 00:35:19,474
military career to at some point go 

863
00:35:19,474 --> 00:35:21,530
into the private sector . And how do 

864
00:35:21,530 --> 00:35:23,474
you encourage folks in the private 

865
00:35:23,474 --> 00:35:23,120
sector to look at it and go , well , 

866
00:35:23,120 --> 00:35:24,898
maybe I have an opportunity the 

867
00:35:24,898 --> 00:35:26,953
military . And I think there are two 

868
00:35:26,953 --> 00:35:29,176
ways to do that first of all is to look 

869
00:35:29,176 --> 00:35:31,398
at within the military and see if there 

870
00:35:31,398 --> 00:35:33,287
can't be more formalized exchange 

871
00:35:33,287 --> 00:35:35,287
program and there's a little bit of 

872
00:35:35,287 --> 00:35:37,176
that within professional military 

873
00:35:37,176 --> 00:35:37,010
education . But I would argue at a 

874
00:35:37,010 --> 00:35:39,540
higher level to say , why don't we do a 

875
00:35:39,540 --> 00:35:42,940
time of being able to have a military 

876
00:35:42,940 --> 00:35:45,970
member uh do a sabbatical to say 

877
00:35:45,970 --> 00:35:47,914
instead of going to school , which 

878
00:35:47,914 --> 00:35:50,026
sometimes they're allowed to do is to 

879
00:35:50,026 --> 00:35:49,570
say , listen , I want to go and spend 

880
00:35:49,570 --> 00:35:51,626
two years working at google so I can 

881
00:35:51,626 --> 00:35:53,626
understand what happens in google . 

882
00:35:53,626 --> 00:35:55,737
What happens with that mindset , What 

883
00:35:55,737 --> 00:35:57,903
happens in that culture and then bring 

884
00:35:57,903 --> 00:36:00,126
that back to the military to be able to 

885
00:36:00,126 --> 00:36:02,237
do those things . Another element two 

886
00:36:02,237 --> 00:36:04,403
is for the private sector to say maybe 

887
00:36:04,403 --> 00:36:04,190
there additional things that we ought 

888
00:36:04,190 --> 00:36:06,690
to do to encourage our employees to 

889
00:36:06,690 --> 00:36:09,390
become members of the Reserve , of the 

890
00:36:09,390 --> 00:36:11,557
Air Force Reserve , the Army Reserve . 

891
00:36:11,557 --> 00:36:13,779
And make sure that there's a formalized 

892
00:36:13,779 --> 00:36:13,460
program there where the company says , 

893
00:36:13,460 --> 00:36:15,627
hey listen , we want to make sure each 

894
00:36:15,627 --> 00:36:17,682
year our goal is to have X number of 

895
00:36:17,682 --> 00:36:19,770
our employees , sign up and become 

896
00:36:19,770 --> 00:36:21,937
members of the Reserve and think about 

897
00:36:21,937 --> 00:36:24,103
that . The reserve would be in perfect 

898
00:36:24,103 --> 00:36:25,992
position to put them into a cyber 

899
00:36:25,992 --> 00:36:27,881
security role to put them into an 

900
00:36:27,881 --> 00:36:30,048
intelligence roll where they could use 

901
00:36:30,048 --> 00:36:32,214
even more effectively their experience 

902
00:36:32,214 --> 00:36:34,437
in the private sector in what they need 

903
00:36:34,437 --> 00:36:36,603
in the military and that it's informed 

904
00:36:36,603 --> 00:36:38,881
on what is happening in the real world . 

905
00:36:38,881 --> 00:36:40,826
I think if you do more of that , I 

906
00:36:40,826 --> 00:36:43,048
think there's a great opportunity there 

907
00:36:43,048 --> 00:36:45,103
that is somewhat unrealized and what 

908
00:36:45,103 --> 00:36:47,310
can happen in workforce . And looking 

909
00:36:47,310 --> 00:36:49,366
at how do we do more in a formalized 

910
00:36:49,366 --> 00:36:51,330
way with an exchange between the 

911
00:36:51,330 --> 00:36:53,940
military and especially the tech sector . 

912
00:36:53,950 --> 00:36:55,894
So let me jump right on that one . 

913
00:36:55,894 --> 00:36:58,172
Since uh this has been high on my list . 

914
00:36:58,172 --> 00:37:00,650
Um We do have education with industry 

915
00:37:00,660 --> 00:37:02,716
but I've also talked about education 

916
00:37:02,716 --> 00:37:04,882
with D . O . D . And so I've been able 

917
00:37:04,882 --> 00:37:07,049
to work very closely with google to uh 

918
00:37:07,049 --> 00:37:09,160
identify three people . They're gonna 

919
00:37:09,160 --> 00:37:11,216
come work with the Department of the 

920
00:37:11,216 --> 00:37:13,382
Air Force . Um But I've given a bit of 

921
00:37:13,382 --> 00:37:15,604
criteria that we gotta make sure we put 

922
00:37:15,604 --> 00:37:17,660
them in a meaningful place . So they 

923
00:37:17,660 --> 00:37:19,882
crush their spirit . You know they have 

924
00:37:19,882 --> 00:37:21,827
to work that work that charge , he 

925
00:37:21,827 --> 00:37:25,380
showed . Uh But you know short periods 

926
00:37:25,380 --> 00:37:27,324
of time where they can come in and 

927
00:37:27,324 --> 00:37:29,491
learn a bit more about D . O . D . And 

928
00:37:29,491 --> 00:37:29,480
the key part if you bring them in young 

929
00:37:29,480 --> 00:37:31,591
enough they build a relationship with 

930
00:37:31,591 --> 00:37:33,758
some of our young officers and N . C . 

931
00:37:33,758 --> 00:37:35,813
O . S . And they continue to grow up 

932
00:37:35,813 --> 00:37:38,036
and then they'll be us one day and they 

933
00:37:38,036 --> 00:37:40,147
were able to help break the culture . 

934
00:37:40,147 --> 00:37:42,313
So that's that's one aspect that we're 

935
00:37:42,313 --> 00:37:42,150
trying to get done . And we're looking 

936
00:37:42,150 --> 00:37:43,920
to broaden it with other other 

937
00:37:43,920 --> 00:37:46,840
companies as well . Um The other thing 

938
00:37:46,840 --> 00:37:49,300
I'm also looking at is when we do put 

939
00:37:49,310 --> 00:37:51,810
in our our talent to education with 

940
00:37:51,810 --> 00:37:53,866
industry how we bring them back into 

941
00:37:53,866 --> 00:37:55,866
the force because it will do is you 

942
00:37:55,866 --> 00:37:57,977
know sometimes it's considered a good 

943
00:37:57,977 --> 00:38:00,100
deal and so they're you know they're 

944
00:38:00,110 --> 00:38:03,240
functional um manager will come back 

945
00:38:03,240 --> 00:38:05,296
and say well now it's time for a bad 

946
00:38:05,296 --> 00:38:07,462
deal now we actually take advantage of 

947
00:38:07,462 --> 00:38:09,684
that good deal they had and put them in 

948
00:38:09,684 --> 00:38:11,851
the right job when they come back into 

949
00:38:11,851 --> 00:38:14,073
back into the pentagon or whatever part 

950
00:38:14,073 --> 00:38:16,296
of the Air force . Uh And those are the 

951
00:38:16,296 --> 00:38:18,351
areas that I'm focused on . The last 

952
00:38:18,351 --> 00:38:18,020
thing that I'm also trying to do is 

953
00:38:18,020 --> 00:38:20,180
actually have some nontraditional 

954
00:38:20,180 --> 00:38:22,670
career paths within the within our Air 

955
00:38:22,670 --> 00:38:24,726
force . For those that actually have 

956
00:38:24,726 --> 00:38:26,892
these special skills love what they're 

957
00:38:26,892 --> 00:38:28,892
doing and if I can leave them where 

958
00:38:28,892 --> 00:38:30,948
they are um continue to promote them 

959
00:38:30,948 --> 00:38:33,003
and allow them to move forward until 

960
00:38:33,003 --> 00:38:35,226
your last point I had a chance with the 

961
00:38:35,226 --> 00:38:37,448
D . I . U . This week and they showed a 

962
00:38:37,448 --> 00:38:39,670
program with me called Big Eagle . It's 

963
00:38:39,670 --> 00:38:41,892
the same kind of thing where you have a 

964
00:38:41,892 --> 00:38:44,003
reservist uh that has a skill set but 

965
00:38:44,003 --> 00:38:46,530
how where we place them within the Air 

966
00:38:46,530 --> 00:38:48,308
Force because of their civilian 

967
00:38:48,308 --> 00:38:50,308
background and how they can connect 

968
00:38:50,308 --> 00:38:52,419
with industry but your points another 

969
00:38:52,419 --> 00:38:54,586
great great one that have uh those are 

970
00:38:54,586 --> 00:38:56,752
out in the private sector to come join 

971
00:38:56,752 --> 00:38:58,830
the reserves were hiring so 

972
00:38:58,840 --> 00:39:01,520
well . 

973
00:39:02,630 --> 00:39:05,750
I want to pivot real fast to an an 

974
00:39:05,750 --> 00:39:08,170
audience question . Last year the 

975
00:39:08,180 --> 00:39:10,013
congress created a commission on 

976
00:39:10,013 --> 00:39:12,450
reforming the pentagon's budget process . 

977
00:39:12,460 --> 00:39:14,682
What potential reforms would you put on 

978
00:39:14,682 --> 00:39:16,460
the table for that commission's 

979
00:39:16,460 --> 00:39:18,516
consideration in order to accelerate 

980
00:39:18,516 --> 00:39:20,780
innovation in these tough operational 

981
00:39:20,780 --> 00:39:24,310
problems ? So maybe I can 

982
00:39:24,320 --> 00:39:26,930
pipe in a little bit . Uh so this is 

983
00:39:26,930 --> 00:39:29,470
the PPB commission you're talking about 

984
00:39:29,470 --> 00:39:31,540
which thank you , thank you guys for 

985
00:39:31,540 --> 00:39:34,540
standing that up commission . Okay . We 

986
00:39:34,540 --> 00:39:36,707
have all kinds of issues that we could 

987
00:39:36,707 --> 00:39:39,320
need help on I think in the race 

988
00:39:39,330 --> 00:39:42,680
against china we handcuff ourselves in 

989
00:39:42,680 --> 00:39:44,513
terms of processes and rules and 

990
00:39:44,513 --> 00:39:46,736
regulations . Right ? We have colors of 

991
00:39:46,736 --> 00:39:49,180
money which of course you segment our R . 

992
00:39:49,180 --> 00:39:51,880
D . T . Nd then we segment procurement 

993
00:39:51,890 --> 00:39:55,210
then we segment operations and 

994
00:39:55,210 --> 00:39:57,321
maintenance money . It's an arbitrary 

995
00:39:57,321 --> 00:39:59,960
divide of money . That's one thing . 

996
00:39:59,970 --> 00:40:02,820
Okay , the other thing is we have this 

997
00:40:02,820 --> 00:40:06,560
culture of users or losers right ? If 

998
00:40:06,560 --> 00:40:08,671
you don't spend your money but end of 

999
00:40:08,671 --> 00:40:10,893
the year you're gonna lose the budget . 

1000
00:40:10,893 --> 00:40:13,171
So one of the things we have asked for , 

1001
00:40:13,171 --> 00:40:15,530
especially in terms of funding 

1002
00:40:15,530 --> 00:40:18,710
university research , can we alleviate 

1003
00:40:18,710 --> 00:40:20,543
that ? So work very closely with 

1004
00:40:20,543 --> 00:40:22,760
controller with O . M . B . Two to to 

1005
00:40:22,760 --> 00:40:25,480
change that process . So because the 

1006
00:40:25,480 --> 00:40:27,630
academic cycles not necessarily fits 

1007
00:40:27,630 --> 00:40:30,630
well in within our with our fiscal 

1008
00:40:30,630 --> 00:40:32,630
cycle . Right ? So there's a lot of 

1009
00:40:32,630 --> 00:40:36,140
these things that we can help to change 

1010
00:40:36,150 --> 00:40:38,940
the processes to help us move faster 

1011
00:40:39,220 --> 00:40:42,480
and please don't give us crs every year 

1012
00:40:42,490 --> 00:40:45,850
that could also help . 

1013
00:40:46,830 --> 00:40:49,010
I guess one thing I would add just to 

1014
00:40:49,010 --> 00:40:50,899
that is there are things we could 

1015
00:40:50,899 --> 00:40:52,899
change , but I also believe there's 

1016
00:40:52,899 --> 00:40:54,843
there's cases where we do have the 

1017
00:40:54,843 --> 00:40:57,310
authority to actually do things faster 

1018
00:40:57,320 --> 00:40:59,209
that we just don't have the habit 

1019
00:40:59,209 --> 00:41:01,431
pattern of doing . And so what we gotta 

1020
00:41:01,431 --> 00:41:03,653
do is challenge ourselves in some cases 

1021
00:41:03,653 --> 00:41:05,764
to to really figure out if we already 

1022
00:41:05,764 --> 00:41:07,820
have the authorities , why aren't we 

1023
00:41:07,820 --> 00:41:09,931
using them before we start asking ? I 

1024
00:41:09,931 --> 00:41:09,130
mean we need to probably look at some 

1025
00:41:09,130 --> 00:41:11,130
more authorities and some different 

1026
00:41:11,130 --> 00:41:13,186
approaches , but there's some things 

1027
00:41:13,186 --> 00:41:15,297
that I think we do have that we , you 

1028
00:41:15,297 --> 00:41:14,740
have a habit pattern , we've done this 

1029
00:41:14,750 --> 00:41:16,917
a certain way all the time . We got to 

1030
00:41:16,917 --> 00:41:19,083
break that habit pattern and take full 

1031
00:41:19,083 --> 00:41:21,194
advantage of all the tools we have to 

1032
00:41:21,194 --> 00:41:23,361
move faster in certain areas . I think 

1033
00:41:23,361 --> 00:41:25,361
that's a great point . What you see 

1034
00:41:25,361 --> 00:41:28,310
today is a structure that puts 

1035
00:41:28,320 --> 00:41:30,860
everything towards the concept of the 

1036
00:41:30,860 --> 00:41:33,027
requirement . So if you have a company 

1037
00:41:33,027 --> 00:41:35,193
that says , hey , I got a great idea , 

1038
00:41:35,193 --> 00:41:37,304
I can do it less expensively and some 

1039
00:41:37,304 --> 00:41:39,527
of the pentagon goes well , I'd love to 

1040
00:41:39,527 --> 00:41:39,290
do that . But guess what ? I don't have 

1041
00:41:39,290 --> 00:41:41,512
a requirement to do that . So we're not 

1042
00:41:41,512 --> 00:41:43,820
going to do that . And there are other 

1043
00:41:43,820 --> 00:41:46,500
avenues O T A . S , other transaction 

1044
00:41:46,500 --> 00:41:48,740
authorities , MTs , middle tier 

1045
00:41:48,750 --> 00:41:50,750
authorities , all those things are 

1046
00:41:50,750 --> 00:41:52,917
there . But the problem is is they are 

1047
00:41:52,917 --> 00:41:55,330
the exception rather than the rule . So 

1048
00:41:55,330 --> 00:41:57,552
I think what we have to do is to reform 

1049
00:41:57,552 --> 00:41:59,608
the processes in the pentagon to say 

1050
00:41:59,608 --> 00:42:02,510
all of these efforts , whether it's 

1051
00:42:02,520 --> 00:42:04,750
requirement driven where there's O . T 

1052
00:42:04,750 --> 00:42:06,861
A . S or M . T A . S all exist on the 

1053
00:42:06,861 --> 00:42:08,917
level playing field . So if somebody 

1054
00:42:08,917 --> 00:42:11,139
comes in in a windshield , they look at 

1055
00:42:11,139 --> 00:42:13,361
it and go , there's equal access to all 

1056
00:42:13,361 --> 00:42:12,560
of these . Now , a lot of times they're 

1057
00:42:12,560 --> 00:42:14,504
told that . So someone says , well 

1058
00:42:14,504 --> 00:42:16,616
there's not a requirement but you can 

1059
00:42:16,616 --> 00:42:18,727
pursue an O . T A . And if it's a new 

1060
00:42:18,727 --> 00:42:20,893
company to go well what's an O . T . A 

1061
00:42:20,893 --> 00:42:23,004
and how do I go about doing that ? So 

1062
00:42:23,004 --> 00:42:22,820
we have to simplify the process so that 

1063
00:42:22,820 --> 00:42:24,876
folks know very easily this is how I 

1064
00:42:24,876 --> 00:42:27,230
navigated and this is how I can get in 

1065
00:42:27,240 --> 00:42:30,130
to make sure that I can do business in 

1066
00:42:30,130 --> 00:42:32,019
the pentagon . I think that those 

1067
00:42:32,019 --> 00:42:35,750
things are incredibly important and 

1068
00:42:35,760 --> 00:42:38,330
as we looked at the acquisition process 

1069
00:42:38,330 --> 00:42:41,360
there , the simpler that we can make it , 

1070
00:42:41,370 --> 00:42:44,750
the more basic it is to a connection 

1071
00:42:44,750 --> 00:42:48,270
between the capability that a company 

1072
00:42:48,270 --> 00:42:51,680
has and the capacity that they have and 

1073
00:42:51,680 --> 00:42:53,680
the quicker we can get it . General 

1074
00:42:53,680 --> 00:42:55,902
Brown , as you said , the speed element 

1075
00:42:55,902 --> 00:42:57,680
of that is critical . How do we 

1076
00:42:57,680 --> 00:42:59,902
increase the speed ? How do we simplify 

1077
00:42:59,902 --> 00:43:01,847
the process if we do that all of a 

1078
00:43:01,847 --> 00:43:03,902
sudden , the innovation and creation 

1079
00:43:03,902 --> 00:43:05,847
that we long for that needs to get 

1080
00:43:05,847 --> 00:43:05,250
there . That needs to get in the hands 

1081
00:43:05,250 --> 00:43:07,900
of the war . Fighter gets there faster 

1082
00:43:07,910 --> 00:43:10,188
and in the closing element of that too . 

1083
00:43:10,188 --> 00:43:13,230
Is that as we bring those companies in 

1084
00:43:13,230 --> 00:43:15,341
and it's been mentioned here before , 

1085
00:43:15,341 --> 00:43:16,897
but I don't think it can be 

1086
00:43:16,897 --> 00:43:18,841
overemphasizing . That is as we're 

1087
00:43:18,841 --> 00:43:20,952
developing this technology , it needs 

1088
00:43:20,952 --> 00:43:23,174
to be a ground up development . So it's 

1089
00:43:23,174 --> 00:43:25,270
great to have the Joint Chiefs and 

1090
00:43:25,270 --> 00:43:27,270
others look at this and go , yeah , 

1091
00:43:27,270 --> 00:43:28,937
that would be a great , great 

1092
00:43:28,937 --> 00:43:31,048
opportunity for that technology to be 

1093
00:43:31,048 --> 00:43:33,360
applied . But it has to start with that 

1094
00:43:33,900 --> 00:43:36,670
Marine Lance corporal with that army 

1095
00:43:36,670 --> 00:43:39,120
private , with that third class airman , 

1096
00:43:39,120 --> 00:43:41,280
with that third class seaman and work 

1097
00:43:41,280 --> 00:43:43,447
from there on up . Because let me tell 

1098
00:43:43,447 --> 00:43:45,670
you , those individuals are incredibly 

1099
00:43:45,670 --> 00:43:47,726
talented , incredibly insightful and 

1100
00:43:47,726 --> 00:43:50,350
they know what will work and they see 

1101
00:43:50,350 --> 00:43:52,572
it each and every day and what we learn 

1102
00:43:52,572 --> 00:43:54,840
from them is invaluable . If we have a 

1103
00:43:54,840 --> 00:43:56,896
system that's from the bottom up and 

1104
00:43:56,896 --> 00:43:59,140
assures that what comes from there is 

1105
00:43:59,140 --> 00:44:01,630
what guides our technology and we make 

1106
00:44:01,630 --> 00:44:04,260
it simpler for those companies that say 

1107
00:44:04,260 --> 00:44:06,204
we've got a great idea , have them 

1108
00:44:06,204 --> 00:44:08,260
start with folks there at the ground 

1109
00:44:08,260 --> 00:44:10,316
level and then have a quick and easy 

1110
00:44:10,316 --> 00:44:12,482
pathway for them to get there . We can 

1111
00:44:12,482 --> 00:44:14,593
do things at the speed of relevance , 

1112
00:44:14,593 --> 00:44:16,927
at the speed of reality and congressman , 

1113
00:44:16,927 --> 00:44:19,410
I think we have a great example of a 

1114
00:44:19,410 --> 00:44:22,080
place we could start obviously 

1115
00:44:22,090 --> 00:44:24,490
necessity is born out of crisis often 

1116
00:44:24,490 --> 00:44:27,340
times . And with the war in Ukraine 

1117
00:44:27,350 --> 00:44:30,100
many commercial companies as well as 

1118
00:44:30,100 --> 00:44:32,156
commercial companies from within the 

1119
00:44:32,156 --> 00:44:34,100
defense industrial base as well as 

1120
00:44:34,100 --> 00:44:36,310
defense itself brought great 

1121
00:44:36,310 --> 00:44:39,350
technologies to bear um in Ukraine for 

1122
00:44:39,350 --> 00:44:42,510
the Ukrainian people . Um google 

1123
00:44:42,510 --> 00:44:46,100
brought its network , it's um , to , to 

1124
00:44:46,100 --> 00:44:48,770
help secure networks across Ukraine . 

1125
00:44:48,780 --> 00:44:51,970
We brought google maps to help make 

1126
00:44:51,970 --> 00:44:53,970
sure we could help the humanitarian 

1127
00:44:53,970 --> 00:44:57,340
crisis in the Ukraine we were able to 

1128
00:44:57,340 --> 00:44:59,670
using our networks protect from cyber 

1129
00:44:59,670 --> 00:45:03,550
attacks as well as to inst an she ate 

1130
00:45:03,560 --> 00:45:07,540
no kidding um capabilities to ensure 

1131
00:45:07,540 --> 00:45:10,800
the safety of um uh 

1132
00:45:10,810 --> 00:45:14,130
credit accredited news sources . So 

1133
00:45:14,140 --> 00:45:16,251
these are , and I know that there are 

1134
00:45:16,251 --> 00:45:18,362
many other companies that are in this 

1135
00:45:18,362 --> 00:45:20,307
audience state that also did great 

1136
00:45:20,307 --> 00:45:22,029
things and all I know did some 

1137
00:45:22,029 --> 00:45:21,690
wonderful things around drone 

1138
00:45:21,690 --> 00:45:24,680
technology um in Ukraine and I think 

1139
00:45:24,680 --> 00:45:27,210
this is a great example of where out of 

1140
00:45:27,210 --> 00:45:29,380
this crisis we were able to bring 

1141
00:45:29,380 --> 00:45:31,547
commercial technologies and apply them 

1142
00:45:31,547 --> 00:45:33,713
and the soldier , sailor airman marine 

1143
00:45:33,713 --> 00:45:35,824
on the ground to your point used them 

1144
00:45:35,824 --> 00:45:38,030
and they worked and so now how do we 

1145
00:45:38,030 --> 00:45:40,870
learn from that ? Ellen Lord is on the 

1146
00:45:40,870 --> 00:45:42,814
PBB a commission , we were talking 

1147
00:45:42,814 --> 00:45:45,037
about this last night , how do we learn 

1148
00:45:45,037 --> 00:45:46,703
learn from those products and 

1149
00:45:46,703 --> 00:45:48,648
capabilities and technologies that 

1150
00:45:48,648 --> 00:45:50,820
worked in Ukraine and get them into , 

1151
00:45:50,870 --> 00:45:53,230
you know , the the acquisition system 

1152
00:45:53,240 --> 00:45:55,296
faster . I don't I don't I'm not I'm 

1153
00:45:55,296 --> 00:45:57,462
not I'm not asking you that question , 

1154
00:45:57,462 --> 00:45:59,920
but I wonder what we can do around that . 

1155
00:45:59,930 --> 00:46:02,097
Karen , I think your example is a good 

1156
00:46:02,097 --> 00:46:04,319
one . And at the risk of talking myself 

1157
00:46:04,319 --> 00:46:06,430
into a partnership with google on the 

1158
00:46:06,430 --> 00:46:09,950
stage , if you think about what you 

1159
00:46:09,950 --> 00:46:11,950
just described and the capabilities 

1160
00:46:11,950 --> 00:46:13,839
that you all delivered to support 

1161
00:46:13,839 --> 00:46:15,870
Ukraine , uh many of the Defense , 

1162
00:46:15,870 --> 00:46:17,926
industrial based companies delivered 

1163
00:46:17,926 --> 00:46:20,148
capabilities as well that we won't talk 

1164
00:46:20,148 --> 00:46:22,314
about on the stage . But you know , if 

1165
00:46:22,314 --> 00:46:24,481
you think you're the right hand on the 

1166
00:46:24,481 --> 00:46:24,470
left hand , I'm not sure the right hand 

1167
00:46:24,470 --> 00:46:26,581
knew what all the left hand was doing 

1168
00:46:26,581 --> 00:46:29,610
and how does the future operate much 

1169
00:46:29,610 --> 00:46:32,360
more efficiently and with more agility 

1170
00:46:32,370 --> 00:46:34,314
and that we actually know what the 

1171
00:46:34,314 --> 00:46:36,148
right left hand are doing and we 

1172
00:46:36,148 --> 00:46:38,203
recombined all those capabilities to 

1173
00:46:38,203 --> 00:46:40,370
field um you know , things that really 

1174
00:46:40,370 --> 00:46:43,160
matter going forward . So just a good 

1175
00:46:43,160 --> 00:46:46,370
thought process for us all , Secretary 

1176
00:46:46,370 --> 00:46:49,050
Xu , your your office stood up the 

1177
00:46:49,050 --> 00:46:52,160
Office of Strategic Capital this week 

1178
00:46:52,170 --> 00:46:54,660
and I'm interested in combining a 

1179
00:46:54,670 --> 00:46:56,781
couple of questions from the audience 

1180
00:46:56,781 --> 00:46:58,837
in my own , how much is appropriated 

1181
00:46:58,837 --> 00:47:00,850
for this office and how will it be 

1182
00:47:00,850 --> 00:47:03,550
different in terms of being able to 

1183
00:47:03,560 --> 00:47:05,782
solve some of the investment challenges 

1184
00:47:05,782 --> 00:47:07,860
in these emerging technology areas ? 

1185
00:47:07,870 --> 00:47:11,630
Yeah , I will say we our intention is 

1186
00:47:11,640 --> 00:47:14,440
not to become a gigantic fund . Okay . 

1187
00:47:14,450 --> 00:47:17,690
Our intent in terms of uh , funding 

1188
00:47:17,700 --> 00:47:20,440
folks , it's very unlike raider . Okay , 

1189
00:47:20,450 --> 00:47:22,450
raider , we put a chunk of money in 

1190
00:47:22,450 --> 00:47:25,310
there for the , for the experimentation . 

1191
00:47:25,320 --> 00:47:28,480
Okay . The purpose of Office of 

1192
00:47:28,480 --> 00:47:30,630
Strategic capital is really to work 

1193
00:47:30,630 --> 00:47:33,690
with uh , our 

1194
00:47:33,700 --> 00:47:37,470
investors in terms of uh , the venture 

1195
00:47:37,470 --> 00:47:40,010
capital area , there's no need for us 

1196
00:47:40,010 --> 00:47:43,310
to duplicate a fund . Okay , so we're 

1197
00:47:43,310 --> 00:47:45,600
working with the venture capital folks 

1198
00:47:45,600 --> 00:47:47,660
to say , hey , there's some critical 

1199
00:47:47,660 --> 00:47:51,200
technologies that we want to make sure 

1200
00:47:51,210 --> 00:47:54,380
that we as a nation keep . So there's 

1201
00:47:54,380 --> 00:47:57,600
no adversary capital that's investing 

1202
00:47:57,600 --> 00:48:00,580
there in product , it's stolen . Right ? 

1203
00:48:00,590 --> 00:48:03,950
So , so one piece is that the other 

1204
00:48:03,960 --> 00:48:06,770
aspect of what we're trying to solve is 

1205
00:48:06,780 --> 00:48:09,130
is working very closely and 

1206
00:48:09,130 --> 00:48:11,250
collaboratively with a small business 

1207
00:48:11,250 --> 00:48:15,030
association . We can then leverage 

1208
00:48:15,040 --> 00:48:18,700
um , the capability that already exists 

1209
00:48:18,710 --> 00:48:22,380
in terms of , uh , in terms of 

1210
00:48:22,390 --> 00:48:26,180
leveraging um , funds or creating 

1211
00:48:26,180 --> 00:48:29,160
funds . I mean , right now , SPA small 

1212
00:48:29,160 --> 00:48:32,090
business over 300 funds that's 

1213
00:48:32,090 --> 00:48:34,140
available to help small companies . 

1214
00:48:34,150 --> 00:48:36,150
Right ? So we want to leverage that 

1215
00:48:36,150 --> 00:48:38,200
type of debt and equity that's 

1216
00:48:38,200 --> 00:48:41,680
available , perhaps to also provide a 

1217
00:48:41,680 --> 00:48:44,560
small company who needs to capitalize 

1218
00:48:44,570 --> 00:48:46,940
to get into production , to help them 

1219
00:48:46,940 --> 00:48:49,440
to get some guarantee loans . So , 

1220
00:48:49,450 --> 00:48:51,450
these are some of the concept we're 

1221
00:48:51,450 --> 00:48:53,820
exploring , but the fund that we're 

1222
00:48:53,820 --> 00:48:57,710
asking for is for manpower to stand 

1223
00:48:57,710 --> 00:48:59,920
up the office . So it's a very small 

1224
00:48:59,920 --> 00:49:03,380
chunk of money to stand up this office , 

1225
00:49:04,140 --> 00:49:06,730
Can you say how much , you know , 

1226
00:49:06,740 --> 00:49:10,180
because it's not nice budget 

1227
00:49:10,180 --> 00:49:12,170
yet ? I can't tell you , 

1228
00:49:13,760 --> 00:49:16,340
General Brown , I'm interested in any 

1229
00:49:16,340 --> 00:49:18,396
initial thoughts you have on how the 

1230
00:49:18,396 --> 00:49:20,618
Air Force might work with this office . 

1231
00:49:20,618 --> 00:49:22,784
I know the Air Force has f works where 

1232
00:49:22,784 --> 00:49:25,007
a lot of those investments take place . 

1233
00:49:25,007 --> 00:49:27,118
But since this is new , what are your 

1234
00:49:27,118 --> 00:49:28,896
kind of off the company sees an 

1235
00:49:28,896 --> 00:49:30,896
opportunity ? And , you know , it's 

1236
00:49:30,896 --> 00:49:33,007
just announced , You know , I've only 

1237
00:49:33,007 --> 00:49:35,062
read the some of the press reports , 

1238
00:49:35,062 --> 00:49:37,340
haven't had a brief associated with it , 

1239
00:49:37,340 --> 00:49:39,451
but some very uh nation understanding 

1240
00:49:39,451 --> 00:49:42,130
of what the opportunity may be . But 

1241
00:49:42,130 --> 00:49:44,260
the key point there is having capital 

1242
00:49:44,270 --> 00:49:46,326
to support these small companies and 

1243
00:49:46,326 --> 00:49:49,460
grow beyond uh you know , are the 

1244
00:49:49,460 --> 00:49:51,760
symbols that we already do . Uh They 

1245
00:49:51,760 --> 00:49:54,038
also take up on what that meant . Said , 

1246
00:49:54,038 --> 00:49:56,038
you know , if he sees putting money 

1247
00:49:56,038 --> 00:49:58,371
against it , don't put a cap against it . 

1248
00:49:58,371 --> 00:50:00,649
And so look at opportunities of how we , 

1249
00:50:00,649 --> 00:50:02,760
you know , make sure that these small 

1250
00:50:02,760 --> 00:50:04,593
companies don't have to wait the 

1251
00:50:04,593 --> 00:50:04,410
typical two years to get into something 

1252
00:50:04,410 --> 00:50:06,521
particularly have a capability we are 

1253
00:50:06,521 --> 00:50:08,940
highly interested in . Um because it's 

1254
00:50:08,940 --> 00:50:11,051
not only the small company , but also 

1255
00:50:11,051 --> 00:50:13,384
to figure out how best to help it scale , 

1256
00:50:13,384 --> 00:50:15,329
particularly , you know , as we're 

1257
00:50:15,329 --> 00:50:17,384
gonna bring it into the Air Force or 

1258
00:50:17,384 --> 00:50:17,220
within the department because that's 

1259
00:50:17,220 --> 00:50:19,276
another piece of this puzzle that we 

1260
00:50:19,276 --> 00:50:21,609
don't often talk about great technology , 

1261
00:50:21,609 --> 00:50:23,664
great idea or we're gonna be able to 

1262
00:50:23,664 --> 00:50:27,040
scale it . Um And that's another aspect 

1263
00:50:27,050 --> 00:50:28,994
and I think this is where thinking 

1264
00:50:28,994 --> 00:50:32,900
through this um is one area the last 

1265
00:50:32,900 --> 00:50:35,011
thing I hit on is because I was as it 

1266
00:50:35,011 --> 00:50:36,844
was in Silicon Valley , this was 

1267
00:50:36,844 --> 00:50:39,380
announced uh some of the people are 

1268
00:50:39,380 --> 00:50:41,491
talking to said , don't only focus on 

1269
00:50:41,491 --> 00:50:43,658
the software side of this . We need to 

1270
00:50:43,658 --> 00:50:43,450
focus on some of the hardware 

1271
00:50:43,460 --> 00:50:45,127
particularly just think about 

1272
00:50:45,127 --> 00:50:47,182
semiconductors . And I learned a lot 

1273
00:50:47,182 --> 00:50:49,238
this past week on semiconductors and 

1274
00:50:49,238 --> 00:50:51,460
artificial intelligence uh more so than 

1275
00:50:51,460 --> 00:50:53,627
I had in the past and we really got to 

1276
00:50:53,627 --> 00:50:55,793
think about the all the things we need 

1277
00:50:55,793 --> 00:50:58,016
to do to bring the capability forward . 

1278
00:50:58,016 --> 00:50:57,880
There are small companies doing this 

1279
00:50:57,880 --> 00:50:59,713
but there's also large companies 

1280
00:50:59,713 --> 00:51:01,880
they're doing this as well . But build 

1281
00:51:01,880 --> 00:51:04,340
upon what Ted said left on the right 

1282
00:51:04,340 --> 00:51:06,630
hand , left and right foot , we all 

1283
00:51:06,630 --> 00:51:08,741
need to know what everybody's doing . 

1284
00:51:08,741 --> 00:51:10,852
And that's the challenge whether it's 

1285
00:51:10,852 --> 00:51:12,574
between companies or levels of 

1286
00:51:12,574 --> 00:51:14,574
classification as well . And that's 

1287
00:51:14,574 --> 00:51:16,630
another thing , another challenge we 

1288
00:51:16,630 --> 00:51:18,630
have that we got to work through as 

1289
00:51:18,630 --> 00:51:20,463
well . And I think the Office of 

1290
00:51:20,463 --> 00:51:22,130
Strategic Capital needs to be 

1291
00:51:22,130 --> 00:51:24,352
complementary to the Defense Innovation 

1292
00:51:24,352 --> 00:51:26,460
unit . So and an app that I think is 

1293
00:51:26,470 --> 00:51:28,526
had a good first start , I think the 

1294
00:51:28,526 --> 00:51:30,637
100 million that was there . It was a 

1295
00:51:30,637 --> 00:51:32,748
good first start . The question is is 

1296
00:51:32,748 --> 00:51:34,414
how do we make sure as we are 

1297
00:51:34,414 --> 00:51:36,637
allocating dollars there that we indeed 

1298
00:51:36,637 --> 00:51:38,859
get the dollars to the amount that make 

1299
00:51:38,859 --> 00:51:41,081
sure that these companies can take that 

1300
00:51:41,081 --> 00:51:43,026
leap to scalability . And listen I 

1301
00:51:43,026 --> 00:51:45,160
understand with the 100 million and 

1302
00:51:45,170 --> 00:51:47,281
split amongst 10 10 companies as I've 

1303
00:51:47,281 --> 00:51:49,337
talked to them some of them and said 

1304
00:51:49,337 --> 00:51:51,448
hey listen we could maybe get there a 

1305
00:51:51,448 --> 00:51:51,400
little bit faster if we had some more . 

1306
00:51:51,400 --> 00:51:53,511
So from our standpoint , what we have 

1307
00:51:53,511 --> 00:51:55,800
to look at is how do we enable outfit , 

1308
00:51:55,810 --> 00:51:58,040
How do we make sure too that we elevate 

1309
00:51:58,040 --> 00:52:00,151
the function of D . I . U . How do we 

1310
00:52:00,151 --> 00:52:01,984
make sure too that the officer a 

1311
00:52:01,984 --> 00:52:03,873
strategic capital is working as a 

1312
00:52:03,873 --> 00:52:06,040
compliment in that because they're now 

1313
00:52:06,040 --> 00:52:08,207
they're kind of all these moving parts 

1314
00:52:08,207 --> 00:52:10,096
that they have outfit D . I . U . 

1315
00:52:10,096 --> 00:52:12,151
Officer strategic capital . So let's 

1316
00:52:12,151 --> 00:52:12,060
make sure that they're not conflicting 

1317
00:52:12,060 --> 00:52:14,480
with each other or not taking away from 

1318
00:52:14,480 --> 00:52:16,647
one effort to another . I look at them 

1319
00:52:16,647 --> 00:52:19,420
as complementary efforts but we have to 

1320
00:52:19,420 --> 00:52:21,587
be very careful to make sure that they 

1321
00:52:21,587 --> 00:52:23,531
don't take away from other efforts 

1322
00:52:23,531 --> 00:52:25,142
because if they do what that 

1323
00:52:25,142 --> 00:52:27,142
duplication is really going to make 

1324
00:52:27,142 --> 00:52:29,253
things difficult . Yeah certainly not 

1325
00:52:29,253 --> 00:52:31,253
the intention to duplicate at all . 

1326
00:52:31,253 --> 00:52:33,476
It's really to help the small companies 

1327
00:52:33,476 --> 00:52:36,050
looking at multiple avenues that we 

1328
00:52:36,050 --> 00:52:37,994
have in terms of helping out small 

1329
00:52:37,994 --> 00:52:41,370
companies to scale up get into 

1330
00:52:41,370 --> 00:52:44,710
production right ? And in that same 

1331
00:52:44,710 --> 00:52:46,710
vein I'm interested in the industry 

1332
00:52:46,710 --> 00:52:48,932
perspective there on how important this 

1333
00:52:48,932 --> 00:52:50,821
venture capital , venture capital 

1334
00:52:50,821 --> 00:52:53,560
investment is actually scaling these 

1335
00:52:53,560 --> 00:52:55,890
capabilities . I mean my , from my 

1336
00:52:55,890 --> 00:52:58,500
perspective , you know , seeding the 

1337
00:52:58,500 --> 00:53:00,722
innovation economy is good for everyone 

1338
00:53:00,722 --> 00:53:04,300
and um , and that is one of the , I 

1339
00:53:04,300 --> 00:53:06,522
think strategic differentiators that we 

1340
00:53:06,522 --> 00:53:08,522
have as a country and its allies is 

1341
00:53:08,522 --> 00:53:10,633
that we we have diversity to leverage 

1342
00:53:10,633 --> 00:53:12,689
and if you don't see the diversity , 

1343
00:53:12,689 --> 00:53:15,022
you don't get the value out of it . Now , 

1344
00:53:15,022 --> 00:53:16,856
the trick is seating it and then 

1345
00:53:16,856 --> 00:53:18,967
finding the pathway to get to scale . 

1346
00:53:18,967 --> 00:53:21,189
And I do think that figuring out how we 

1347
00:53:21,189 --> 00:53:22,967
get the whole ecosystem working 

1348
00:53:22,967 --> 00:53:24,967
together , how we get these cogs in 

1349
00:53:24,967 --> 00:53:26,856
line with one another is is we're 

1350
00:53:26,856 --> 00:53:29,189
successful , will come out and you know , 

1351
00:53:29,189 --> 00:53:31,411
we're all obviously really keen to be a 

1352
00:53:31,411 --> 00:53:33,522
part of that , we won't be able to do 

1353
00:53:33,522 --> 00:53:35,578
everything ourselves . Um we are 100 

1354
00:53:35,578 --> 00:53:37,800
were 100 and some odd euro company , We 

1355
00:53:37,800 --> 00:53:39,800
do a lot of amazing things really , 

1356
00:53:39,800 --> 00:53:41,967
really well , but we also know there's 

1357
00:53:41,967 --> 00:53:44,078
a lot of things out there that we can 

1358
00:53:44,078 --> 00:53:46,133
do better and we can partner up with 

1359
00:53:46,133 --> 00:53:48,189
other other players to do so , so we 

1360
00:53:48,189 --> 00:53:50,411
look forward to , to work with it all . 

1361
00:53:50,411 --> 00:53:52,411
I think Ted said it well , the only 

1362
00:53:52,411 --> 00:53:54,522
thing I would add to it is I think it 

1363
00:53:54,522 --> 00:53:56,880
should give us a lot of hope uh that so 

1364
00:53:56,880 --> 00:53:59,720
many young entrepreneurs want to work 

1365
00:53:59,730 --> 00:54:02,500
in this space in aerospace and defense , 

1366
00:54:02,500 --> 00:54:04,520
they are mission driven , purpose 

1367
00:54:04,520 --> 00:54:07,990
focused . And I think seating , you 

1368
00:54:07,990 --> 00:54:10,630
know , the the innovation economy , as 

1369
00:54:10,630 --> 00:54:13,480
ted said , I think it will really rally 

1370
00:54:13,480 --> 00:54:15,591
even more young entrepreneurs to this 

1371
00:54:15,591 --> 00:54:18,370
space . Absolutely . And we'll do a 

1372
00:54:18,370 --> 00:54:22,070
quick wrap up . So what are you what do 

1373
00:54:22,070 --> 00:54:24,500
you expect to see ? We have pacing 

1374
00:54:24,500 --> 00:54:26,500
threat , that's china , we have the 

1375
00:54:26,500 --> 00:54:28,740
ongoing war in Ukraine , we're talking 

1376
00:54:28,740 --> 00:54:31,450
about innovation . So what can we 

1377
00:54:31,450 --> 00:54:34,040
expect to see in terms of new emerging 

1378
00:54:34,040 --> 00:54:35,596
technologies capabilities , 

1379
00:54:35,596 --> 00:54:38,240
partnerships , technology exchanges in 

1380
00:54:38,240 --> 00:54:40,700
the coming year and you can just go 

1381
00:54:40,700 --> 00:54:42,756
down , I'll start with you general . 

1382
00:54:42,756 --> 00:54:44,756
Well , I'm not sure I'm going to be 

1383
00:54:44,756 --> 00:54:46,978
able to tell you what technology , I'll 

1384
00:54:46,978 --> 00:54:49,256
tell you what problems I have to solve . 

1385
00:54:49,256 --> 00:54:51,311
That's I mean that's really what I'm 

1386
00:54:51,311 --> 00:54:53,256
focused on as an operator and as a 

1387
00:54:53,256 --> 00:54:55,478
service chief is to provide operational 

1388
00:54:55,478 --> 00:54:57,700
problems . So those that are working in 

1389
00:54:57,700 --> 00:54:59,644
technology can help us solve those 

1390
00:54:59,644 --> 00:55:01,367
problems . And this is why the 

1391
00:55:01,367 --> 00:55:03,589
collaboration is so important for us to 

1392
00:55:03,589 --> 00:55:03,370
spend time together to share the 

1393
00:55:03,370 --> 00:55:06,290
problem and then turn to uh our our 

1394
00:55:06,290 --> 00:55:08,457
partners in the industry no matter how 

1395
00:55:08,457 --> 00:55:10,457
big or how small the company is and 

1396
00:55:10,457 --> 00:55:12,623
then allow them to help us solve those 

1397
00:55:12,623 --> 00:55:14,790
problems . Yeah , I think , you know , 

1398
00:55:14,790 --> 00:55:17,012
we're focused on some of the really big 

1399
00:55:17,012 --> 00:55:16,690
guys . We've talked about things like 

1400
00:55:16,700 --> 00:55:18,880
advanced autonomy , um , you know , 

1401
00:55:18,880 --> 00:55:20,824
next generation , really important 

1402
00:55:20,824 --> 00:55:22,936
materials , artificial intelligence , 

1403
00:55:22,936 --> 00:55:25,870
great , great , great software needed 

1404
00:55:25,870 --> 00:55:28,730
in everything . Um , and um , and 

1405
00:55:28,730 --> 00:55:31,008
fixing the supply on the hardware side . 

1406
00:55:31,008 --> 00:55:33,770
I think all those capabilities will 

1407
00:55:33,910 --> 00:55:36,570
create the building blocks for the next 

1408
00:55:36,570 --> 00:55:38,626
generation of capabilities that even 

1409
00:55:38,710 --> 00:55:40,766
this emergent innovation economy and 

1410
00:55:40,766 --> 00:55:42,932
the defense tech world will be able to 

1411
00:55:42,932 --> 00:55:44,932
leverage and I think those that the 

1412
00:55:44,932 --> 00:55:47,154
entire ecosystem is really important to 

1413
00:55:47,154 --> 00:55:49,266
all of us . Well , two things . First 

1414
00:55:49,266 --> 00:55:51,488
of all , it sounds like I'm walking out 

1415
00:55:51,488 --> 00:55:51,110
of here with a strategic partnership 

1416
00:55:51,110 --> 00:55:54,610
agreement with Boeing so we'll do 

1417
00:55:54,610 --> 00:55:57,340
that second . The second thing and more 

1418
00:55:57,340 --> 00:56:00,160
importantly obviously is I think using 

1419
00:56:00,160 --> 00:56:01,882
Ai to really power the digital 

1420
00:56:01,882 --> 00:56:03,938
transformation of the department and 

1421
00:56:03,938 --> 00:56:06,160
that's where we are . You know , wholly 

1422
00:56:06,160 --> 00:56:08,327
focused . I want to add one more thing 

1423
00:56:08,327 --> 00:56:10,438
that I forgot to mention a little bit 

1424
00:56:10,438 --> 00:56:14,200
earlier . We are partnering with our 

1425
00:56:14,210 --> 00:56:18,130
allies and international partners . I 

1426
00:56:18,130 --> 00:56:20,730
see Australia sitting in the front as 

1427
00:56:20,730 --> 00:56:23,550
one of outstanding partnership we have 

1428
00:56:23,550 --> 00:56:27,250
with Australia . We created a 

1429
00:56:27,260 --> 00:56:30,180
classified construct in which we can 

1430
00:56:30,190 --> 00:56:33,880
share information . We're collaborating 

1431
00:56:33,890 --> 00:56:36,980
handing fist to deliver 

1432
00:56:36,980 --> 00:56:39,100
capabilities . That's going to be 

1433
00:56:39,110 --> 00:56:42,160
interoperable born , 

1434
00:56:42,170 --> 00:56:44,890
interoperable . Right ? And they are 

1435
00:56:44,890 --> 00:56:48,320
moving really , really fast so we can 

1436
00:56:48,320 --> 00:56:51,010
deliver some of the capabilities a lot 

1437
00:56:51,010 --> 00:56:54,340
faster than just developing on our own . 

1438
00:56:54,350 --> 00:56:57,150
Okay , so I want to thank my Australian 

1439
00:56:57,150 --> 00:56:59,372
partners right here . Okay to give them 

1440
00:56:59,372 --> 00:57:01,428
a shout out but we're doing the same 

1441
00:57:01,428 --> 00:57:03,600
thing looking across other allied 

1442
00:57:03,610 --> 00:57:06,140
partners , See what they have in terms 

1443
00:57:06,140 --> 00:57:09,400
to compliment us not to take away from 

1444
00:57:09,400 --> 00:57:11,610
work but to complement us and 

1445
00:57:11,610 --> 00:57:14,930
accelerate capability in the near term . 

1446
00:57:14,940 --> 00:57:17,051
Okay , a lot of stuff we're doing are 

1447
00:57:17,051 --> 00:57:19,170
classified . So I can't really , I 

1448
00:57:19,170 --> 00:57:21,810
don't want china to find out . I'm not 

1449
00:57:21,810 --> 00:57:23,930
gonna tell you about it , but we're 

1450
00:57:23,930 --> 00:57:26,770
doing some really cool innovative stuff . 

1451
00:57:26,780 --> 00:57:28,669
But and the other point I want to 

1452
00:57:28,669 --> 00:57:31,700
emphasize the focus is you cannot say 

1453
00:57:31,710 --> 00:57:35,290
innovation only comes out of uh 

1454
00:57:35,300 --> 00:57:37,630
commercial company . There's a lot of 

1455
00:57:37,630 --> 00:57:39,686
innovation coming out of our defense 

1456
00:57:39,686 --> 00:57:42,640
industry as well . A lot of stuff are 

1457
00:57:42,650 --> 00:57:44,550
in the other world that you don't 

1458
00:57:44,550 --> 00:57:47,470
necessarily see the details . But 

1459
00:57:48,180 --> 00:57:50,347
There's a lot of innovation coming out 

1460
00:57:50,347 --> 00:57:52,330
of theory as well because the 

1461
00:57:52,340 --> 00:57:55,240
capabilities well you just saw B-21 

1462
00:57:55,250 --> 00:57:58,470
rolled out right ? Uh , there's other 

1463
00:57:58,470 --> 00:58:01,480
stuff that's in development that has 

1464
00:58:01,480 --> 00:58:04,470
significantly even more capabilities , 

1465
00:58:04,480 --> 00:58:08,220
right ? And that's being enabled by our 

1466
00:58:08,220 --> 00:58:10,331
defense industry . So I don't want to 

1467
00:58:10,331 --> 00:58:12,387
just say , hey innovation only comes 

1468
00:58:12,387 --> 00:58:15,710
out of one sector . It is a holistic . 

1469
00:58:15,720 --> 00:58:18,590
Is the defense industry , commercial 

1470
00:58:18,590 --> 00:58:21,280
industry , our international partners 

1471
00:58:21,290 --> 00:58:25,200
and allies . Yeah . I 

1472
00:58:25,200 --> 00:58:27,311
think the single most important thing 

1473
00:58:27,311 --> 00:58:29,478
that we all need to keep in mind . And 

1474
00:58:29,478 --> 00:58:31,478
you heard this theme in common with 

1475
00:58:31,478 --> 00:58:33,644
everybody here on the stage about what 

1476
00:58:33,644 --> 00:58:35,811
is the path forward is the way that we 

1477
00:58:35,811 --> 00:58:37,922
are going to prevail strategically is 

1478
00:58:37,922 --> 00:58:40,570
to make sure in the 

1479
00:58:41,540 --> 00:58:43,540
economically challenged environment 

1480
00:58:43,540 --> 00:58:45,762
we're going to face in years to come is 

1481
00:58:45,762 --> 00:58:48,460
how do we get more per our dollar than 

1482
00:58:48,460 --> 00:58:50,571
the chinese get per their yuan or the 

1483
00:58:50,571 --> 00:58:52,738
Russians get for their ruble and we've 

1484
00:58:52,738 --> 00:58:54,849
shown that we can do that and we will 

1485
00:58:54,849 --> 00:58:56,960
win strategically when we are able to 

1486
00:58:56,960 --> 00:58:59,016
make sure we bring all the things we 

1487
00:58:59,016 --> 00:59:01,238
talk about with innovation and creation 

1488
00:59:01,238 --> 00:59:03,349
and Congress needs to play a critical 

1489
00:59:03,349 --> 00:59:05,516
role there to make sure that we either 

1490
00:59:05,516 --> 00:59:07,738
take away impediments that may be there 

1491
00:59:07,738 --> 00:59:09,960
for the pentagon or for the industry or 

1492
00:59:09,960 --> 00:59:11,849
add things that are tools for the 

1493
00:59:11,849 --> 00:59:14,016
industry or for the for the pentagon . 

1494
00:59:14,016 --> 00:59:16,016
Those things I think are incredibly 

1495
00:59:16,016 --> 00:59:18,182
important . How do we get the most out 

1496
00:59:18,182 --> 00:59:20,238
of those resources ? As Secretary XU 

1497
00:59:20,238 --> 00:59:22,349
said our allies are gonna be critical 

1498
00:59:22,349 --> 00:59:24,571
there Australia obviously an incredibly 

1499
00:59:24,571 --> 00:59:24,470
important one . But there are many , 

1500
00:59:24,470 --> 00:59:26,637
many other ones out there . They bring 

1501
00:59:26,637 --> 00:59:28,692
a significant amount of resources to 

1502
00:59:28,692 --> 00:59:30,748
the table as well as the leverage of 

1503
00:59:30,748 --> 00:59:32,748
private capital folks . That is the 

1504
00:59:32,748 --> 00:59:34,581
path forward and we will prevail 

1505
00:59:34,581 --> 00:59:37,070
because we will do more for our unit of 

1506
00:59:37,070 --> 00:59:39,403
currency than anybody else in the world . 

1507
00:59:39,403 --> 00:59:41,237
We've done it before and we will 

1508
00:59:41,237 --> 00:59:43,237
continue to do it and that's how we 

1509
00:59:43,237 --> 00:59:45,403
will prevail strategically . I want to 

1510
00:59:45,403 --> 00:59:47,570
thank each of you for being here today 

1511
00:59:47,570 --> 00:59:49,737
and thank you for joining us . That is 

1512
00:59:49,737 --> 00:59:49,260
our time