WEBVTT 00:00.639 --> 00:02.806 Hi everyone , thank you for joining us 00:02.806 --> 00:05.960 in this defense . Innovation board 00:05.960 --> 00:07.904 public meeting . My name is Doctor 00:07.904 --> 00:10.071 Marina Theodotu and I'm the designated 00:10.071 --> 00:11.849 federal officer for the Defense 00:11.849 --> 00:13.960 Innovation Board . Today's meeting is 00:13.960 --> 00:16.059 being live streamed and recorded to 00:16.059 --> 00:18.170 allow members of the public to attend 00:18.170 --> 00:20.448 the meeting virtually or view it later . 00:21.000 --> 00:23.120 Thank you to the Defense Media Agency 00:23.120 --> 00:25.719 for providing their expert support and 00:25.719 --> 00:27.775 to my team and all involved to bring 00:27.775 --> 00:30.780 this event here today . The board will 00:30.780 --> 00:33.049 now convene in its public session . 00:33.340 --> 00:35.284 First , I would like to make a few 00:35.284 --> 00:37.396 procedural announcements . This board 00:37.396 --> 00:39.500 is a discretionary independent board 00:39.500 --> 00:42.180 operated under the Federal Advisory 00:42.180 --> 00:44.013 Committee Act and the government 00:44.013 --> 00:47.139 Sunshine Act . Today's meeting was 00:47.139 --> 00:49.028 announced in the Federal Register 00:49.028 --> 00:51.759 notice posted on January 13th . There 00:51.759 --> 00:53.981 have been no significant changes in the 00:53.981 --> 00:56.119 agenda , and , uh , the meeting's 00:56.119 --> 00:57.990 agenda is posted on the Federal 00:57.990 --> 01:00.400 register notice due to time 01:00.400 --> 01:02.233 restrictions , the board did not 01:02.233 --> 01:04.456 receive any written comments from the . 01:04.638 --> 01:06.749 Citizens , uh , for the board members 01:06.749 --> 01:10.069 in advance of today's meetings and now 01:10.069 --> 01:11.902 I would like to welcome back the 01:11.902 --> 01:14.308 Defense Innovation Board and I would 01:14.308 --> 01:16.308 like to turn it over to our Defense 01:16.308 --> 01:18.141 Innovation board chair Mr . Mike 01:18.141 --> 01:20.588 Bloomberg , sir , over to you , Marina , 01:20.668 --> 01:22.890 thank you and thank you to everyone who 01:22.890 --> 01:25.001 is watching . Thanks for joining us . 01:25.360 --> 01:27.527 This meeting of the Defense Innovation 01:27.527 --> 01:30.680 Board , otherwise known as the DIB , is 01:30.680 --> 01:33.680 the culmination of 2.5 years of good 01:33.680 --> 01:35.680 work together , and I just want to 01:35.680 --> 01:37.680 thank all the members that are here 01:37.680 --> 01:39.902 with us and those that couldn't be here 01:39.902 --> 01:42.013 today for the time and attention that 01:42.013 --> 01:44.069 they've contributed to this big team 01:44.069 --> 01:46.650 effort . I know I speak for everyone 01:46.650 --> 01:49.449 when I say it's an honor to serve . We 01:49.449 --> 01:51.671 have had the good fortune to meet a lot 01:51.671 --> 01:53.782 of impressive talented people working 01:53.782 --> 01:56.730 on incredibly complex challenges every 01:56.730 --> 01:59.569 single day . Their commitment really is 01:59.569 --> 02:02.680 inspiring to see , and our mission has 02:02.680 --> 02:04.847 been to support them in every way that 02:04.847 --> 02:08.100 we can . By the numbers , our board has 02:08.100 --> 02:11.910 met with almost 750 leaders from 02:11.910 --> 02:14.580 up and down the ranks in every military 02:14.580 --> 02:16.580 branch , the defense department , 02:16.830 --> 02:19.710 universities , and business . We've 02:19.710 --> 02:22.910 issued more than 150 independent 02:22.910 --> 02:24.830 recommendations tailored to eight 02:24.830 --> 02:27.110 specific challenges that Secretary 02:27.110 --> 02:30.059 Austin directed us to study in depth . 02:30.470 --> 02:33.639 And by the end of 2024 , the department 02:33.639 --> 02:36.690 had implemented 40% of our initial 02:36.690 --> 02:39.250 recommendations with hopefully more to 02:39.250 --> 02:41.710 follow . The department really has come 02:41.710 --> 02:43.990 a long way in recent years on 02:43.990 --> 02:46.490 modernizing its data practices , 02:46.509 --> 02:48.740 procurement incentives , and working 02:48.740 --> 02:50.907 more closely with the private sector , 02:51.190 --> 02:53.357 but I think it's also fair to say that 02:53.357 --> 02:55.949 there's always more work to do , and 02:55.949 --> 02:57.893 everyone in senior leadership that 02:57.893 --> 03:00.080 we've talked with would agree . So 03:00.080 --> 03:02.024 today we'll talk about some of the 03:02.024 --> 03:04.191 department's most urgent priorities in 03:04.191 --> 03:06.600 the context of our two newest reports . 03:06.880 --> 03:10.119 The reports are called a pathway to 03:10.119 --> 03:13.690 scaling unmanned Weapons Systems , and 03:13.690 --> 03:16.479 the second one is scaling 03:16.479 --> 03:18.960 non-traditional defense innovation . 03:20.190 --> 03:22.550 Mac Thornberry is ready to tell us 03:22.550 --> 03:25.300 about the former and Gilda Barberino , 03:25.500 --> 03:28.139 the latter . uh , Mac will speak first 03:28.139 --> 03:30.250 and then the other board members will 03:30.250 --> 03:32.472 have a chance to comment before we hold 03:32.472 --> 03:34.639 a vote . Uh , we will then hold a vote 03:34.639 --> 03:36.806 and try the same thing with Gilda . So 03:36.806 --> 03:40.149 Mac , you're up . Thank you Mr . 03:40.160 --> 03:42.389 Chairman , and I , I would say first 03:42.389 --> 03:44.639 off , I really appreciate the 03:44.639 --> 03:46.750 opportunity to work with Sue Gordon , 03:46.839 --> 03:48.950 Charles Phillips , and Admiral Mullen 03:48.950 --> 03:52.750 on this study as well as the staff 03:52.750 --> 03:56.160 and a draft special government employee 03:56.160 --> 03:59.729 Hannah Jones . I , I think it's clear 03:59.729 --> 04:02.929 to all of us that unmanned systems have 04:03.169 --> 04:07.050 and are changing warfare . We use them 04:07.119 --> 04:09.008 successfully in the fight against 04:09.008 --> 04:11.119 terrorists to try to prevent , uh , a 04:11.119 --> 04:14.160 recurrence of 9/11 . But what we're 04:14.160 --> 04:16.829 seeing in Ukraine , in the Middle East , 04:17.160 --> 04:20.429 and what we think a potential conflict 04:20.429 --> 04:23.320 in Asia might look like is of a 04:23.320 --> 04:26.609 different order . Uh , it means we have 04:26.609 --> 04:30.209 to build far more of these systems than 04:30.209 --> 04:33.170 most of us can even imagine , and we 04:33.170 --> 04:35.529 can't wait till the conflict starts to 04:35.529 --> 04:38.519 go do it , uh , then it's , it's too 04:38.519 --> 04:40.463 late . And , and the other thing I 04:40.463 --> 04:42.630 think a lot of people don't realize is 04:42.630 --> 04:45.619 we're we will have them need them in 04:45.619 --> 04:47.899 every domain of warfare . Everybody 04:47.899 --> 04:50.220 talks about drones , but it's also true 04:50.220 --> 04:53.329 on the land and and in and under , 04:53.339 --> 04:55.395 under the sea . The department knows 04:55.395 --> 04:59.380 this in August of 2023 , the deputy 04:59.380 --> 05:01.720 secretary announced the replicator 05:01.720 --> 05:04.089 program and as part of this study we've 05:04.089 --> 05:06.179 talked with that team about what 05:06.179 --> 05:08.500 they've learned . We've talked with 05:08.500 --> 05:11.179 folks with firsthand knowledge of 05:11.179 --> 05:13.619 what's happening in Ukraine as as you 05:13.619 --> 05:15.675 mentioned , we've talked with uh the 05:15.675 --> 05:18.660 services commanders , industry , and 05:18.660 --> 05:21.529 we've also looked at other studies on , 05:21.649 --> 05:25.579 on this topic just to to summarize our 05:25.579 --> 05:27.801 recommendations , I think I can boil it 05:27.801 --> 05:30.100 down to 5 things . Number one , we need 05:30.100 --> 05:32.339 to buy a lot of something and just get 05:32.339 --> 05:34.339 going . Uh , there's a bit of a 05:34.339 --> 05:38.299 catch-22 that uh the military needs to 05:38.299 --> 05:40.299 have a lot of something in order to 05:40.299 --> 05:42.899 experiment and war game in order to 05:42.899 --> 05:45.059 know what they need , but they've got 05:45.059 --> 05:47.619 to have enough of them to use in the 05:47.619 --> 05:50.000 war games and , and we're at somewhat 05:50.000 --> 05:52.529 of of an impasse we can't wait for the 05:52.529 --> 05:55.100 perfect thing . Uh , we've got a 05:55.100 --> 05:57.380 breakthrough and buy a bunch of 05:57.380 --> 06:00.269 something so the military can focus on 06:00.269 --> 06:03.049 what they need . We had a number of 06:03.049 --> 06:05.049 people tell us the long pole in the 06:05.049 --> 06:08.100 tent's not the technology . It's the 06:08.100 --> 06:10.079 doctrine , the organization , the 06:10.079 --> 06:12.429 training , the tactics , those are the 06:12.429 --> 06:15.549 things that the military can help can 06:15.549 --> 06:18.950 develop if it has enough systems , 06:19.109 --> 06:21.540 enough drones or whatever system it is 06:21.540 --> 06:24.739 in in order to work with . Secondly , 06:25.029 --> 06:27.196 there needs to be money on the table . 06:27.279 --> 06:29.720 Industry is not gonna invest based on a 06:29.720 --> 06:32.670 press release . There's got to be money 06:32.670 --> 06:35.459 there and it needs to be flexible so 06:35.459 --> 06:39.100 that if the program manager pursues a 06:39.100 --> 06:41.156 course and decides that it's not the 06:41.156 --> 06:43.200 right thing , he or she can swiftly 06:43.200 --> 06:45.309 change to another course and there's 06:45.309 --> 06:47.790 all sorts of details about the lack of 06:47.790 --> 06:51.109 flexibility and funding , but it is 06:51.109 --> 06:54.440 essential for I think any . Area of 06:54.440 --> 06:57.920 warfare that relies on technology that 06:57.920 --> 07:00.679 is changing to have that flexibility 07:00.679 --> 07:02.901 it's something that the department will 07:02.901 --> 07:04.901 have to work with the congress on . 07:04.901 --> 07:07.068 Third , somebody needs to be empowered 07:07.068 --> 07:09.179 to drive the issue . As I mentioned , 07:09.179 --> 07:11.290 the deputy secretary has been driving 07:11.290 --> 07:13.290 replicator , but you can't have the 07:13.290 --> 07:15.709 deputy secretary involved at that level 07:15.709 --> 07:18.070 in every program . We have some 07:18.070 --> 07:20.014 suggestions on some organizational 07:20.014 --> 07:22.459 changes . Uh , there may be some others , 07:22.750 --> 07:24.806 but , but the key point I think Mr . 07:24.806 --> 07:26.861 Chairman is the department has moved 07:26.861 --> 07:29.834 fast . In the past when it had to with 07:29.834 --> 07:33.174 the warp speed , uh , program to 07:33.174 --> 07:36.855 develop vaccines with JO when we had 07:36.855 --> 07:39.244 service members getting blown up in in 07:39.244 --> 07:42.364 Iraq and Afghanistan , uh , with , with , 07:42.375 --> 07:44.174 uh , and , and the MRAT program 07:44.174 --> 07:46.734 similarly so it can move fast you gotta 07:46.734 --> 07:48.894 have somebody though that pushes it . 07:49.329 --> 07:51.440 Fourth , there are a number of supply 07:51.440 --> 07:53.496 chain issues , uh , when it comes to 07:53.496 --> 07:56.010 making a large number of drones that 07:56.010 --> 07:58.177 the department's gonna have to address 07:58.177 --> 08:00.232 and 5th , they're gonna have to work 08:00.232 --> 08:02.399 hand in glove with industry , not just 08:02.399 --> 08:05.820 day by day but hour by hour . 08:06.329 --> 08:10.250 The speed of delivery has got to be a 08:10.250 --> 08:13.970 crucial factor in deciding which 08:13.970 --> 08:16.489 contract which companies to to contract 08:16.489 --> 08:18.950 with . I would say , Mr . Chairman , 08:19.040 --> 08:21.679 you sum it all up , our most important 08:21.679 --> 08:25.200 recommendation is to act . Do 08:25.200 --> 08:28.709 something with the urgency that the 08:28.709 --> 08:30.799 geopolitical situation and the 08:30.799 --> 08:33.979 advancing technologies demand . And in 08:33.979 --> 08:36.929 that sense I think in a lot of ways the 08:36.939 --> 08:39.299 the message of this study on unmanned 08:39.299 --> 08:41.739 systems is consistent and , and in some 08:41.739 --> 08:44.138 ways the same as the message that we've 08:44.138 --> 08:46.448 given in other studies over the last 08:46.448 --> 08:49.179 2.5 years . We're too rigid , too 08:49.179 --> 08:52.448 bureaucratic , and most of all too slow 08:52.658 --> 08:55.379 in supporting our war fighters with the 08:55.379 --> 08:58.578 best technology that our nation can 08:58.578 --> 09:00.800 produce . Lots of people are doing good 09:00.800 --> 09:04.200 things . But incremental steps are not 09:04.200 --> 09:07.890 going to deter . Uh , or and prevent or 09:07.890 --> 09:10.280 if necessary prevail in a great power 09:10.390 --> 09:13.169 war as with the other studies that 09:13.169 --> 09:15.400 we've done , we found that it's not 09:15.400 --> 09:18.409 really a technology problem but it's in 09:18.409 --> 09:21.450 people , processes and organizational 09:21.450 --> 09:23.729 behavior problem and the good news of 09:23.729 --> 09:25.840 that is those are things we can solve 09:25.840 --> 09:27.369 for and we hope we do . 09:29.549 --> 09:32.049 Mac , thank you and thank you for your 09:32.049 --> 09:34.216 committee and all the work that you've 09:34.216 --> 09:35.993 done , not just now but in your 09:35.993 --> 09:38.216 previous career . Uh , we're gonna have 09:38.216 --> 09:40.216 a vote on the recommendations and I 09:40.216 --> 09:43.049 will call each member as name and they 09:43.049 --> 09:46.659 will say yeah or nay Gilda 09:46.659 --> 09:50.359 Barbarabino Sue Gordon . 09:51.489 --> 09:52.700 Charles Phillips , 09:58.349 --> 10:00.405 Will Roper , there is a third that I 10:00.405 --> 10:00.330 didn't know , but uh it's good that 10:00.330 --> 10:02.441 I've learned that now . I should have 10:02.441 --> 10:06.250 asked Ryan Swan , and here's the 10:06.250 --> 10:08.640 tricky one , Mac Thornberry , 10:09.969 --> 10:11.969 uh , great , great , I think that 10:11.969 --> 10:14.789 concludes the first study and now Gild , 10:14.849 --> 10:16.849 it's your turn to tell us about the 10:16.849 --> 10:19.570 second study . Please go ahead . Thank 10:19.570 --> 10:22.130 you Mr . Chairman and my thanks also to 10:22.130 --> 10:24.186 other members of the study committee 10:24.186 --> 10:26.530 Mary Meeker , Will Roper , and Ryan 10:26.530 --> 10:28.960 Swan and thanks also to this , uh , 10:28.969 --> 10:31.191 staff who provided excellent support to 10:31.191 --> 10:34.010 us . We were tasked to provide outcome 10:34.010 --> 10:35.899 driven recommendations on scaling 10:35.899 --> 10:38.250 non-traditional defense innovation . We 10:38.250 --> 10:41.049 met with over 200 stakeholders to 10:41.049 --> 10:44.609 include DOD leaders , industry experts , 10:44.809 --> 10:48.260 war fighters , and academics . We had a 10:48.260 --> 10:50.659 number of key findings which I'll share 10:50.659 --> 10:53.549 with you . First , despite the 10:53.549 --> 10:55.859 competition with China and conflicts in 10:55.859 --> 10:58.380 Ukraine and the Middle East , the DOD 10:58.380 --> 11:00.929 still lacks the ability to rapidly test , 11:01.260 --> 11:04.500 procure , and field emerging capability 11:04.500 --> 11:06.700 within months or weeks and without 11:06.700 --> 11:09.770 aggressive action , our war fighters 11:09.770 --> 11:11.900 are on track to risk defeat on the 11:11.900 --> 11:15.289 battlefield . We strongly urge 11:15.289 --> 11:17.233 immediately amplifying the urgency 11:17.233 --> 11:20.140 level , taking a significant portion of 11:20.140 --> 11:22.029 research , development , test and 11:22.029 --> 11:24.580 evaluation investment out of the 11:24.580 --> 11:26.636 planning , programming , budgeting , 11:26.636 --> 11:29.219 and execution process and placing it 11:29.219 --> 11:31.552 within a system of flexible procurement . 11:32.320 --> 11:34.376 We need to significantly enhance the 11:34.376 --> 11:36.719 acquisition system's risk tolerance for 11:36.719 --> 11:40.070 failure , enforce existing authorities 11:40.359 --> 11:42.799 and contract mechanisms for 11:42.799 --> 11:44.559 non-traditional vendors , and 11:44.559 --> 11:46.840 incentivize the DOD contracting 11:46.840 --> 11:49.880 workforce to place larger bets on new 11:49.880 --> 11:52.039 market participants through a mix of 11:52.039 --> 11:54.880 both critical acquisition targets and 11:54.880 --> 11:58.590 open topic based pathways . Our 11:58.590 --> 12:01.219 overarching recommendation . Is to 12:01.219 --> 12:03.539 address the immediate imperatives of 12:03.539 --> 12:05.969 focused organizational structure , 12:06.219 --> 12:09.270 cultural optimization , and dedicated 12:09.270 --> 12:11.460 capital required for leveraging 12:11.460 --> 12:15.039 non-traditional vendor capabilities at 12:15.039 --> 12:18.340 scale . Among our key 12:18.340 --> 12:21.270 recommendations one , Congress and the 12:21.270 --> 12:24.229 DOD should expand DIU into a 12:24.229 --> 12:27.630 cross-service Sherpa office , a fully 12:27.630 --> 12:29.950 staffed and resourced front door to the 12:29.950 --> 12:32.700 DOD market for commercial industry 12:32.989 --> 12:35.700 that's capable of providing entry to 12:35.700 --> 12:39.150 exit support to non-trad traditional 12:39.150 --> 12:42.830 vendors at scale . 2 , 12:43.450 --> 12:46.200 train the DOD acquisition workforce on 12:46.200 --> 12:48.859 relational contracting , and that's 12:48.859 --> 12:50.780 including training for program 12:50.780 --> 12:54.159 executive offices and balanced proposal 12:54.159 --> 12:57.419 process pricing . We should eliminate 12:57.419 --> 12:59.739 burdensome , confusing or lengthy 12:59.739 --> 13:02.320 contracting . For example , eliminate 13:02.320 --> 13:04.539 the defense contract audit authority 13:04.539 --> 13:07.059 audits and accounting reviews for firm 13:07.059 --> 13:09.460 fixed price contracts that are under 2 13:09.460 --> 13:12.099 million . We should require the PEOs to 13:12.099 --> 13:15.289 justify contracts with market research 13:15.289 --> 13:17.011 in accordance with the Federal 13:17.219 --> 13:21.099 Acquisition Streamlining Act . And we 13:21.099 --> 13:23.429 should maintain clarity on trade-offs 13:23.429 --> 13:25.650 across cost schedule and performance . 13:26.250 --> 13:28.700 Establish a non-traditional vendor 13:28.700 --> 13:30.644 investment review committee that's 13:30.644 --> 13:34.140 overseen by OSD Office of Cost 13:34.140 --> 13:37.979 assessment and Program evaluation . We 13:37.979 --> 13:40.820 should commit to procuring and fielding 13:40.820 --> 13:44.099 5 to 10 game changing capabilities 13:44.739 --> 13:48.609 inside 2027 . And 13:48.619 --> 13:51.020 embrace a minimum variable product 13:51.020 --> 13:54.460 mindset to prevent Chinese overmatch we 13:54.460 --> 13:56.627 could organize , for example , a first 13:56.627 --> 13:59.020 breakfast with DOD , Congress , 13:59.489 --> 14:01.545 industry , and investment leaders to 14:01.545 --> 14:04.140 commit to these procurements and grant 14:04.140 --> 14:06.820 the Office of Strategic Capital equity 14:06.820 --> 14:09.289 funding Authority . We should 14:09.289 --> 14:11.330 streamline security clearance 14:11.330 --> 14:13.163 requirements for non-traditional 14:13.163 --> 14:15.108 vendors , including establishing a 14:15.108 --> 14:17.369 central credentialing authority and 14:17.369 --> 14:19.650 allowing vendors greater access to 14:19.650 --> 14:23.450 utilize skiffs . We could implement an 14:23.450 --> 14:26.679 ex post instead of ex ante 14:27.159 --> 14:30.489 approach to risk in IT , cloud and 14:30.489 --> 14:33.530 network security that is allow vendors 14:33.530 --> 14:35.809 to compete on performance innovation 14:35.809 --> 14:38.929 price and create a walk up to 14:38.929 --> 14:42.570 compliance and male vendors on the back 14:42.570 --> 14:45.289 end with liability instead of requiring 14:45.289 --> 14:48.039 approvals on the front end . We could 14:48.039 --> 14:50.150 create a senior leader tracking group 14:50.150 --> 14:53.320 for recent ATODOD CIO 14:53.320 --> 14:57.030 reciprocity changes and adopt the 14:57.030 --> 15:00.260 Federal risk and authorization 15:00.630 --> 15:03.190 management program . We could also 15:03.190 --> 15:05.619 establish the Rapid Innovation Fund , 15:05.909 --> 15:07.789 which is now known as the Rapid 15:07.789 --> 15:10.380 Integrated Scalable Enterprise program , 15:10.789 --> 15:14.229 as a stopgap DOD SBIR 15:14.229 --> 15:18.030 STTR Phase 3 fund while working 15:18.030 --> 15:20.619 with Congress to investigate options 15:20.710 --> 15:23.909 for a permanent phase 3 program using a 15:23.909 --> 15:27.080 variety of sources , either additional 15:27.080 --> 15:30.109 appropriations or pooled funds from 15:30.109 --> 15:33.549 existing programs . And finally we 15:33.549 --> 15:36.700 could establish dedicated oasis funds 15:36.909 --> 15:39.510 within each service complementing the 15:39.510 --> 15:43.030 permanent SBIR STTR phase 3 15:43.030 --> 15:45.780 fund with an additional funding vehicle 15:46.109 --> 15:49.309 for promising non-traditional vendors 15:49.590 --> 15:53.469 leverage decoorized in the fiscal year 15:53.469 --> 15:56.700 contingency readiness funds instead of 15:56.700 --> 15:59.390 separate appropriations or taxing 15:59.390 --> 16:02.250 existing service programs . Thank you 16:02.500 --> 16:04.739 Gilda thank you and thanks to all of 16:04.739 --> 16:07.219 those that worked with you . I will now 16:07.219 --> 16:10.489 vote on the recommendations , and each 16:10.489 --> 16:13.460 member will say yeah or nay , assuming 16:13.460 --> 16:15.793 they are authorized to vote in this one . 16:15.793 --> 16:18.049 You can vote on this one . I can't wait 16:18.049 --> 16:21.059 to see what you do first Gilda 16:21.059 --> 16:24.770 Barrabino , uh , Sue Gordon , 16:25.619 --> 16:29.580 Charles Phillips , Will Roper , Loudon . 16:30.489 --> 16:34.330 Ryan Swan Mac Thornberry . Well , that 16:34.330 --> 16:36.719 concludes the second study for today , 16:36.770 --> 16:38.826 and , uh , Marina , would you please 16:38.826 --> 16:41.048 share any public comments that we might 16:41.048 --> 16:43.214 have received ? Absolutely , thank you 16:43.214 --> 16:45.159 so much , uh , Mr . Chair . So the 16:45.159 --> 16:47.270 board always welcomes public comments 16:47.270 --> 16:49.159 and questions and feedback to the 16:49.159 --> 16:52.380 studies and uh in this particular case 16:52.380 --> 16:55.440 uh we haven't received any uh 16:55.900 --> 16:58.460 pertinent or direct feedback for our 16:58.460 --> 17:01.299 two studies however , the board has uh 17:01.299 --> 17:03.410 been uh over the last 2.5 years has . 17:03.410 --> 17:05.104 In receiving a number of 17:05.104 --> 17:07.326 recommendations and we'll be we've been 17:07.326 --> 17:09.964 fielding those back to the board so the 17:09.964 --> 17:12.125 Defense Innovation board always is 17:12.125 --> 17:14.069 listening and always welcomes your 17:14.069 --> 17:16.915 feedback and uh perspectives because we 17:16.915 --> 17:19.515 do share those with the chair and uh 17:19.714 --> 17:21.844 the members for their consideration . 17:23.910 --> 17:26.890 And with that , let me just say that 17:27.439 --> 17:29.439 um we have a wonderful country . We 17:29.439 --> 17:31.550 have a great military . The world's a 17:31.550 --> 17:33.939 dangerous place . We need to have to 17:33.939 --> 17:36.819 make sure that our military has the 17:36.819 --> 17:39.050 assets that they need , as the training 17:39.050 --> 17:42.060 that they need , has the spirit and the 17:42.060 --> 17:44.393 understanding and support of the public . 17:44.479 --> 17:48.020 And God help us all if we don't have it , 17:48.310 --> 17:51.319 but it's been an honor for all of us to 17:51.319 --> 17:55.000 serve and to get what we think is a 17:55.589 --> 17:58.229 program that can be implemented . Not 17:58.229 --> 18:00.285 everything has to be done the way we 18:00.285 --> 18:02.229 thought , but at least it will get 18:02.229 --> 18:04.340 everybody to think and to take action 18:04.340 --> 18:06.507 rather than just to sit around , and I 18:06.507 --> 18:08.562 think that's really one of the key . 18:08.562 --> 18:10.618 The world is changing very rapidly . 18:10.618 --> 18:12.785 And if we don't do something , there's 18:12.785 --> 18:15.007 an awful lot of dangers that everything 18:15.007 --> 18:17.680 that we've built in the last 250 years 18:17.680 --> 18:20.359 can be thrown away . Um , 18:21.569 --> 18:23.849 Time to take a break . Yes , I think 18:23.849 --> 18:25.738 that's a , uh , that we're at the 18:25.738 --> 18:28.071 juncture . We'll take a brief pause and , 18:28.071 --> 18:30.016 uh , we'll be back , uh , with the 18:30.016 --> 18:32.016 deputy secretary and her comments . 18:32.016 --> 18:33.905 Thank you . Thank you . Thank you 18:33.905 --> 18:37.170 everybody for listening . Well thank 18:37.170 --> 18:39.910 you . We are now glad to be joined by a 18:39.910 --> 18:42.077 leader who knows the issues that we've 18:42.077 --> 18:44.079 been discussing as well as anyone . 18:44.660 --> 18:48.449 Kathleen Hicks is the deputy defense 18:48.449 --> 18:50.671 secretary , and together with Secretary 18:50.671 --> 18:52.782 Austin , she has run the department's 18:52.782 --> 18:55.130 innovation portfolio for the past 4 18:55.130 --> 18:58.170 years , most notably its replicator 18:58.170 --> 19:00.880 Unmanned Systems Initiative , and her 19:00.880 --> 19:03.047 council and partnership have been very 19:03.047 --> 19:05.102 helpful to our board . Of course she 19:05.102 --> 19:07.269 and her team are busy sprinting to the 19:07.269 --> 19:09.290 finish line , so we certainly 19:09.290 --> 19:11.512 appreciate her taking the time to say a 19:11.512 --> 19:13.346 few words to us today and Deputy 19:13.346 --> 19:15.568 Secretary Hicks , it is good to see you 19:15.568 --> 19:17.623 and thank you for doing this and the 19:17.623 --> 19:19.790 floor is all yours . Great , thank you 19:19.790 --> 19:21.846 very much , Mike . It's great to see 19:21.846 --> 19:23.901 you and the whole Defense innovation 19:23.901 --> 19:26.123 board . Thank you all for the very hard 19:26.123 --> 19:28.123 work that you've put forward on the 19:28.123 --> 19:30.346 studies that you were published today . 19:30.346 --> 19:32.401 Delivering innovations at scale with 19:32.401 --> 19:34.512 speed is so important as you've heard 19:34.512 --> 19:36.623 me emphasize before , innovation is a 19:36.623 --> 19:38.734 never ending imperative for DOD , but 19:38.734 --> 19:40.957 I'm really deeply proud of the progress 19:40.957 --> 19:43.179 that we've made over the past 4 years , 19:43.179 --> 19:45.123 substantially lowering barriers to 19:45.123 --> 19:47.290 innovation across the DOD enterprise . 19:47.640 --> 19:49.869 From the boardroom to the battle space 19:50.400 --> 19:53.079 from day one we focused on the urgency 19:53.079 --> 19:55.910 to innovate and enabled DOD to deliver 19:56.199 --> 19:58.839 using a clear and comprehensive war 19:58.839 --> 20:01.479 fighter centric approach supporting 20:01.479 --> 20:03.680 game changing initiatives , assuming 20:03.680 --> 20:05.989 risk and investing in the workforce . 20:08.229 --> 20:10.709 Innovation adoption is fundamentally a 20:10.709 --> 20:13.069 change management problem . That's why 20:13.069 --> 20:15.400 we've employed an effective theory of 20:15.400 --> 20:17.567 change , building trust and confidence 20:17.567 --> 20:19.344 across the defense enterprise , 20:19.469 --> 20:21.260 demonstrating what's possible , 20:21.469 --> 20:24.060 rewarding game changers , and promoting 20:24.060 --> 20:26.150 the best ideas and success through 20:26.150 --> 20:29.550 teamwork . For instance , DOD's Rapid 20:29.550 --> 20:31.494 Defense Experimentation Reserve or 20:31.494 --> 20:34.849 radar initiative begun in October 2021 . 20:35.130 --> 20:37.019 Competitive advantage Pathfinders 20:37.019 --> 20:39.849 established in April of 2022 , and the 20:39.849 --> 20:41.738 replicator initiative launched in 20:41.738 --> 20:44.910 August of 2023 . They all show how 20:44.910 --> 20:47.089 we've realized the benefits of focused 20:47.089 --> 20:49.170 senior leader attention on improving 20:49.170 --> 20:51.479 process to accelerate the development 20:51.479 --> 20:53.650 and fielding of innovative solutions 20:53.650 --> 20:57.510 that address war fighter needs . To be 20:57.510 --> 20:59.630 clear , these were all pathfinders , 20:59.750 --> 21:01.750 not the sum total of the changes we 21:01.750 --> 21:04.589 have pursued or seek in launching , 21:04.910 --> 21:07.189 developing , and executing radar , cap , 21:07.199 --> 21:10.109 and replicator . DOD leaders took on 21:10.109 --> 21:13.150 risk to show others what is necessary 21:13.150 --> 21:15.317 to unleash what is possible within the 21:15.317 --> 21:17.539 defense enterprise and with the private 21:17.539 --> 21:20.300 sector . Beyond those three examples 21:20.300 --> 21:22.290 we've elevated and resourced 21:22.290 --> 21:24.012 organizations like the Defense 21:24.012 --> 21:25.679 Innovation Unit and Strategic 21:25.679 --> 21:27.901 Capabilities Office , which are scaling 21:27.901 --> 21:30.068 our capacity for rapid prototyping and 21:30.068 --> 21:32.068 fielding , working closely with the 21:32.068 --> 21:34.500 services and cocoms . We've ignited a 21:34.500 --> 21:36.722 culture shift in combatant commands and 21:36.722 --> 21:39.099 military services and in our research 21:39.099 --> 21:42.089 and engineering enterprise . For 21:42.089 --> 21:44.060 example , by supporting innovation 21:44.060 --> 21:46.329 leaders in CEO into Paycom and 21:46.329 --> 21:48.369 elsewhere who are getting after 21:48.369 --> 21:50.480 combined joint all domain command and 21:50.480 --> 21:52.920 control by accelerating the Marine 21:52.920 --> 21:55.290 Corps's force design to deliver agility , 21:55.329 --> 21:57.420 innovation and technological 21:57.420 --> 22:00.449 advancement and in 2027 rather than the 22:00.449 --> 22:03.010 previously planned 2030 . And by 22:03.010 --> 22:04.843 creating the Office of Strategic 22:04.843 --> 22:06.930 Capital , which has already begun 22:06.930 --> 22:08.930 accepting applications for loans to 22:08.930 --> 22:11.810 accelerate commercialization and scale 22:11.810 --> 22:13.921 production of critical technologies . 22:14.839 --> 22:16.506 You can also see the progress 22:16.506 --> 22:19.380 monetarily . Over the last 4 years , at 22:19.380 --> 22:23.040 least 375 billion 22:23.040 --> 22:24.619 DOD dollars have gone to 22:24.619 --> 22:27.020 non-traditional defense companies from 22:27.020 --> 22:28.964 commercial firms to venture-backed 22:28.964 --> 22:32.060 defense tech startups and scale-ups , 22:32.449 --> 22:34.782 because , as you've heard me say before , 22:34.782 --> 22:36.949 staying ahead in strategic competition 22:36.979 --> 22:38.900 requires DOD to work better with 22:38.900 --> 22:41.449 newcomers to our mission who have game 22:41.449 --> 22:43.616 changing technologies that can benefit 22:43.616 --> 22:46.209 the warfighter . In all , when we look 22:46.209 --> 22:48.829 across 4 annual defense budgets and 22:48.829 --> 22:50.940 multiple supplemental funding bills . 22:51.560 --> 22:53.219 Adding up all our capability 22:53.219 --> 22:55.550 investments for R&D plus procurement , 22:55.880 --> 22:58.349 the real dollar total is over 22:58.349 --> 23:02.040 $1.2 trillion even after controlling 23:02.040 --> 23:04.560 for inflation , that's more than DOD 23:04.560 --> 23:07.359 invested in those areas across any four 23:07.359 --> 23:11.280 year period during the Cold War . Money 23:11.280 --> 23:13.169 matters , but at the same time we 23:13.169 --> 23:15.336 cannot achieve the level of innovation 23:15.336 --> 23:17.224 we need without talented people . 23:17.224 --> 23:19.391 Critical outside the box thinkers with 23:19.391 --> 23:21.839 top tier training , and it's important 23:21.839 --> 23:23.959 that we get out of the way of skilled 23:23.959 --> 23:26.359 talented experts because smart , 23:26.439 --> 23:28.780 creative people will go further and 23:28.780 --> 23:30.780 widen the path of what's possible . 23:32.050 --> 23:34.410 Over the last 4 years , top tech talent 23:34.410 --> 23:36.466 from the private sector increasingly 23:36.466 --> 23:39.800 chose to work for and with us , leaving 23:39.800 --> 23:42.160 lucrative jobs at places like Lyft , 23:42.369 --> 23:45.369 Apple , Google AI , and others . We 23:45.369 --> 23:47.313 also created the position of chief 23:47.313 --> 23:49.536 talent management officer and hired the 23:49.536 --> 23:51.969 inaugural CTMO , who was working 23:51.969 --> 23:53.969 closely with leaders throughout the 23:53.969 --> 23:57.079 department . And we continue to invest 23:57.079 --> 23:59.449 in processes to modernize DOD talent 23:59.449 --> 24:01.880 management where we are woefully behind 24:01.880 --> 24:04.479 the private sector . This is especially 24:04.479 --> 24:06.535 necessary for the civilian workforce 24:06.535 --> 24:08.560 and speeding security clearances , 24:08.719 --> 24:10.920 maintaining a short time to hire and 24:10.920 --> 24:12.976 attracting the finest talent are all 24:12.976 --> 24:15.599 important goals we have only started to 24:15.599 --> 24:18.459 advance . Looking ahead , I want to 24:18.459 --> 24:20.829 share 5 key insights for success 24:20.829 --> 24:22.989 because recognizing the bipartisan 24:22.989 --> 24:24.933 consensus around the imperative to 24:24.933 --> 24:27.100 innovate , there is still so much work 24:27.100 --> 24:30.300 to do . First , innovation cannot be 24:30.300 --> 24:32.699 the sole province of any one slice of 24:32.699 --> 24:35.930 DOD or only the executive branch . Just 24:35.930 --> 24:37.763 as there are no silver bullets , 24:37.763 --> 24:39.597 there's no sole owner of defense 24:39.597 --> 24:42.099 innovation . Rather , it must always be 24:42.099 --> 24:44.579 the responsibility of everyone , every 24:44.579 --> 24:47.040 component , every leader . To do 24:47.040 --> 24:48.818 otherwise gives the rest of the 24:48.818 --> 24:51.199 bureaucracy a pass to say it's not my 24:51.199 --> 24:54.069 problem , not my lane , not born here , 24:54.280 --> 24:56.680 and such excuses too often hinder 24:56.680 --> 24:58.902 defense innovation in the first place . 24:59.199 --> 25:01.255 And we must have support in Congress 25:01.255 --> 25:03.369 for new ways of doing business from 25:03.369 --> 25:06.060 authorizers and appropriators alike , 25:06.530 --> 25:09.569 ending the routine , now even casual 25:09.569 --> 25:12.530 use of continuing resolutions , a 25:12.530 --> 25:16.050 highly destructive habit Congress can't 25:16.050 --> 25:18.609 seem to kick is a great place to start . 25:20.020 --> 25:22.380 CR is often challenged the core of my 25:22.380 --> 25:24.102 second insight , which is that 25:24.102 --> 25:27.599 execution is paramount . And it must 25:27.599 --> 25:29.969 occur across the entire delivery chain 25:30.199 --> 25:32.520 that turns vision into capabilities at 25:32.520 --> 25:35.489 scale . It's easy to talk a big game , 25:35.599 --> 25:37.839 but if you do , you have to be ready to 25:37.839 --> 25:40.439 deliver . We knew execution would be 25:40.439 --> 25:42.606 key with replicator . It's where other 25:42.606 --> 25:44.772 innovation visions had stumbled in the 25:44.772 --> 25:46.995 past , so that was part of our thinking 25:46.995 --> 25:50.089 from the very beginning . My third 25:50.089 --> 25:52.890 insight , well-intentioned disruptors 25:52.890 --> 25:55.319 have more allies than they realize . 25:55.890 --> 25:58.001 Sometimes they're hard to find . They 25:58.001 --> 26:00.057 can even be encased in the so-called 26:00.057 --> 26:02.250 frozen middle . You've got to find the 26:02.250 --> 26:04.361 mavericks , thaw them out and embrace 26:04.361 --> 26:06.329 them . Hold them accountable but 26:06.329 --> 26:09.130 embrace them . Then create and align 26:09.130 --> 26:11.930 incentives to build more disruptors 26:11.930 --> 26:13.930 because so much depends on talent . 26:15.479 --> 26:17.760 Make no mistake , DOD will always need 26:17.760 --> 26:20.400 bold change agents from top to bottom 26:20.400 --> 26:22.880 and bottom to top , willing to 26:22.880 --> 26:25.119 challenge the status quo . It takes 26:25.119 --> 26:28.640 leadership at all levels . The 4th 26:28.640 --> 26:30.529 insight is something we can never 26:30.529 --> 26:32.418 forget . Moving fast and breaking 26:32.418 --> 26:34.529 things is necessary to win wars , but 26:34.529 --> 26:37.040 we cannot break the law or oaths to the 26:37.040 --> 26:39.630 Constitution or the public's trust . 26:40.000 --> 26:42.400 Those who do cross those lines always 26:42.400 --> 26:44.589 make it 10 times harder for themselves 26:44.589 --> 26:46.756 and the well-intentioned change agents 26:46.756 --> 26:49.760 that come after them . That brings me 26:49.760 --> 26:52.000 to my 5th insight . We can never get 26:52.000 --> 26:54.890 complacent because this is a protracted 26:54.890 --> 26:57.079 campaign . Technology will keep 26:57.079 --> 26:59.689 changing . Today's good habits and best 26:59.689 --> 27:02.239 practices will one day be stale and 27:02.239 --> 27:05.640 outdated . Our global competitors will 27:05.640 --> 27:07.918 continue to advance their capabilities , 27:08.000 --> 27:10.869 especially the PRC . We're in a 27:10.869 --> 27:13.036 generational competition for transient 27:13.036 --> 27:16.199 advantage with a dynamic adversary , so 27:16.199 --> 27:19.189 we must also be constantly learning , 27:19.479 --> 27:21.319 growing , evolving and pushing 27:21.319 --> 27:23.400 ourselves . It's all hands on deck . 27:24.750 --> 27:26.859 The Pentagon may be made of Indiana 27:26.859 --> 27:29.260 limestone , but its processes weren't 27:29.260 --> 27:32.260 meant to calcify for all eternity , nor 27:32.260 --> 27:35.140 be stuck in concrete blocks . I've 27:35.140 --> 27:37.196 heard plenty of salty language in my 27:37.196 --> 27:39.029 days , but the most profound and 27:39.029 --> 27:40.973 damaging seven words I hear in the 27:40.973 --> 27:43.084 Pentagon are this is how we've always 27:43.084 --> 27:45.589 done it . That is simply unacceptable 27:45.589 --> 27:47.869 today . The Defense Innovation Board 27:47.869 --> 27:50.189 has kept UUD accountable on this score , 27:50.199 --> 27:52.310 and I'm confident it will continue to 27:52.310 --> 27:55.969 do so . A final thought America excels 27:55.969 --> 27:58.689 at innovation because of our democratic 27:58.689 --> 28:00.890 system , born of free minds , free 28:00.890 --> 28:04.479 markets and free people . DOD can 28:04.479 --> 28:06.869 only benefit from that as long as our 28:06.869 --> 28:10.119 democracy endures . If we want to keep 28:10.119 --> 28:11.897 changing the world , we have to 28:11.897 --> 28:13.952 strengthen the democratic principles 28:14.030 --> 28:15.819 that make this nation so worth 28:15.819 --> 28:18.069 defending and make changing the world 28:18.069 --> 28:20.750 even possible . When you think about it , 28:20.829 --> 28:23.107 these things are deeply interconnected . 28:23.310 --> 28:26.349 Enforcing contracts and protecting IP 28:26.349 --> 28:28.516 depends on upholding the rule of law . 28:28.670 --> 28:31.150 Hiring a talented workforce depends on 28:31.150 --> 28:33.206 having good schools , universities , 28:33.206 --> 28:35.261 and legal pathways for immigration . 28:35.469 --> 28:37.510 The flourishing of all Americans 28:37.510 --> 28:39.709 depends on ensuring equal rights and 28:39.709 --> 28:42.760 equal opportunity for all . And 28:42.760 --> 28:44.704 starting a business , investing in 28:44.704 --> 28:46.927 others , inventing a product and taking 28:46.927 --> 28:49.239 it to market depends on safeguarding 28:49.239 --> 28:51.128 the institutions that provide the 28:51.128 --> 28:52.959 blanket of liberty under which 28:52.959 --> 28:56.579 Americans do so . Each of you on this 28:56.579 --> 28:58.746 board has contributed to all of that . 28:58.780 --> 29:01.002 I'm grateful to you for it , and I look 29:01.002 --> 29:03.002 forward to the contributions you'll 29:03.002 --> 29:04.947 make in the future just as I'll be 29:04.947 --> 29:07.058 watching for our successors at DOD to 29:07.058 --> 29:09.329 build on our successes with their own . 29:09.579 --> 29:11.746 Thank you very much for your service , 29:11.746 --> 29:14.380 Madam Secretary , thank you so much for 29:14.380 --> 29:16.699 the work that you've done . uh , the 29:16.699 --> 29:19.660 country , uh , hopefully will listen to 29:19.660 --> 29:21.739 what you said and the rest of us and 29:21.739 --> 29:23.780 continue . I did not know about the 29:23.780 --> 29:26.849 Indiana limestone . Always wondered 29:26.849 --> 29:30.050 where it came from , but now I know um 29:30.050 --> 29:32.272 before we wrap up board members , would 29:32.272 --> 29:34.494 you any question you might have for the 29:34.494 --> 29:36.494 deputy secretary or anything else ? 29:37.430 --> 29:39.486 Well thank you uh thank you for your 29:39.486 --> 29:41.597 partnership . Let me once again thank 29:41.597 --> 29:44.430 Lloyd Austin and you and Heidi Shu and 29:44.430 --> 29:47.739 the entire team . So , uh , uh , we'll 29:47.739 --> 29:49.906 continue to look for opportunities and 29:49.906 --> 29:52.239 hopefully you'll still have some impact . 29:52.239 --> 29:54.461 Uh , we have a long ways to go and it's 29:54.461 --> 29:56.406 a very dangerous world out there , 29:56.406 --> 29:58.628 getting more dangerous every single day 29:58.628 --> 30:00.795 and somehow or other we've got to find 30:00.795 --> 30:04.219 a ways to . deal with that and to not 30:04.750 --> 30:06.528 throw in the towel or make some 30:06.528 --> 30:08.694 terrible tragic mistakes which in this 30:08.694 --> 30:11.650 day and age could lead to calamity . Um , 30:11.750 --> 30:13.861 thank you all , Marina thank you very 30:13.861 --> 30:14.861 much . 30:20.709 --> 30:23.180 You wanna do ? Good 30:26.890 --> 30:30.859 Thank you Mr . Chair , and uh with that 30:30.859 --> 30:33.180 we have come to the close of our public 30:33.180 --> 30:35.236 meeting today . We thank you all for 30:35.236 --> 30:37.500 joining us today . A a warm thank you 30:37.500 --> 30:39.500 to all of our board members for all 30:39.500 --> 30:42.369 your great work and uh with that , uh , 30:42.380 --> 30:44.158 we bid you farewell . Thank you 30:44.158 --> 30:45.270 everyone . Thank you all .