WEBVTT

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Hey everybody , please , seated .

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Thanks for coming I used to do things

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like this without this , but at 65 I'm

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getting a little forgetful , so I got

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it here . Anyway , um , I'm here to

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give an introduction , um , for

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Secretary Heeth who today is gonna talk

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about , um , how he's gonna lead us in

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the transformation of the Pentagon ,

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how we , how we do things there . Um ,

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I'd also , um , Uh ,

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I'd like to thank our great president ,

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President Trump , for giving me the

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opportunity to serve our great nation .

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I mean he's incredible . Change agent

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and all the amazing things he's doing

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so quickly and , uh , in that spirit .

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Um , He has set the tone for all of us

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and our secretary from day one ,

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has set such a great tone , a tone of

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warrior ethos . Um , launching our

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goals . To transform our department

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from the Department of Defense to the

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Department of War . To

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really substantially improve our

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readiness , our fighting capabilities .

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Our culture All of our

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capabilities . And to really be

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exceptional . Now

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Servicemen under the secretary's

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leadership are really driving towards

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that goal and now it's time . For the

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Pentagon . For our civilian employees

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and for our contractors to do the same ,

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to take on . This fight was a wartime

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philosophy , the same culture and

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urgency . Both on acquisition

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programming and capabilities . It's

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super really important for our success .

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We're in the fight of our lives . We're

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against competition . That's never been

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stronger , who are advancing rapidly ,

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who are advancing urgently and already

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have possessed great capabilities . We

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simply got to do better . On our side

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of it

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secretary will talk today about this

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transformation . Um

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He has set the tone of a changed

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culture in the Pentagon . It's through

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his , quite frankly inspirational

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leadership that's enabled us civilians

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to really be able to do something

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different , to change , to be better ,

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and that's our job . It has to come

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from the Pentagon , our people , as

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well as the contractors . Um , The

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Pentagon is run well . Leadership is

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solid . The culture is good , the

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teamwork and partnership is , is

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exceptional , but . We do

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things In the very old manner in a slow

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manner and bureaucratic manner , and we

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must change that . Similarly , our

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contractors often mirror us with some

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of the same issues and problems . Um ,

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our contractors need to change and do

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better . The contracts that contractors

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are willing to change with us . Will

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prosper and grow . Those who don't

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and resist it will be gone .

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I think that um . I

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can't emphasize how much and how

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important it is . For us not to

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fall behind .

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I'm 65 years old , so I've seen a few

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things . And I can tell you After

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that experience , it's an absolute

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honor to serve underneath working for

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the secretary . It's an honor to serve

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under his command and I think he's

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setting the tone as you'll hear today

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for the changes that we need to make

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and that we will make and we will

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succeed with . Our military

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All of our service people , everyone

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around it , Americans need us at the

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Pentagon and our civilians and our

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contractors to do better . We can't

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fail , we can't make excuses , we must

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succeed . Let's get at it . With that ,

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Mr . Secretary , can you please come

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and . Speak to us . Thank you ,

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sir . Thank you . Please take your

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seats .

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Well , members of Congress , Deputy

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Secretary Feinberg , this would not

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happen without you , without him ,

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without he's led , without what he's

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led . Today is not possible and the

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reforms you're gonna hear about today

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are not possible . Mr . Chairman ,

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members of the Joint Chiefs ,

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secretaries of our military departments .

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Under Secretary Duffy as well , without

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what has happened at ANS , this is not

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possible either . Acquisition

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professionals , corporate leaders ,

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distinguished officials from the

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Department of War , defense , industry

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officials , good afternoon and welcome .

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A lot of you came a long way for this ,

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uh , and we are grateful that you took

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the time to be here with us right now .

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We think this topic is that important

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for the future of our nation . Today

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I'd like to talk to you about an

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adversary that poses a threat , a very

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serious threat . To the United States

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of America . This adversary is one of

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the world's last bastions of central

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planning . It governs by dictating in

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five-year plans . From a single capital ,

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it attempts to impose its demands

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across time zones , continent

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continents , oceans , and beyond . With

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brutal consistency , it stifles free

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thought . And crushes new ideas . It

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disrupts the defense of the United

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States and places the lives of our men

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and women in uniform at risk .

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Perhaps this sounds like the former

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Soviet Union , but that enemy is long

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gone . The foe I'm talking about is

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more subtle and implacable . You may

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think I'm describing one of the last

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decrepit dictators of the world , but

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their day too is almost certainly

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passed , and they cannot match the size

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and strength of this adversary , nor am

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I talking about . The Chinese Communist

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Party . The adversary I'm talking

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about is much closer to home . It's the

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Pentagon bureaucracy . Not the people ,

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but the process , not the civilians ,

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but the system , not the men and women

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in uniform , but the uniformity of

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thought and action that is too often

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imposed on them . In the Pentagon ,

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despite this era of scarce resources

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taxed by mountain mounting threats ,

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money disappears into the duplicative

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duties and bloated bureaucracy , not

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because of greed . But because of

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gridlock . Innovation is stifled not by

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ill intent but by institutional inertia .

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Just as we must transform America's

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military capability to meet changing

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threats , we must transform the way

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department works and what it works on .

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We must build a department where each

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of the dedicated people here .

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Especially the true entrepreneurs and

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innovators from our industrial base ,

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can apply their immense talents to

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defend America where they have the

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resources , access , information , and

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freedom to perform . Our challenge

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is to transform not just the way we

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deter and defend . But the way we

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conduct our daily business . The

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modernization of the Department of

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Defense is a matter of immense urgency .

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In fact , it's not an exaggeration to

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say that it's a matter of life and

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death , ultimately of every American .

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Now , I'm gonna let you in on a little

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secret . The speech so far is not my

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own . Those words are

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practically verbatim . From a speech

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given by Secretary of Defense Donald

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Rumsfeld . On September 10th .

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2001 . A near

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carbon copy . 24 years later .

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Now , the world changed the day after

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he gave that speech on 9/11 .

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And the wars in Iraq and Afghanistan

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began . As a result , Secretary

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Rumsfeld never quite had the full

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opportunity to implement many of his

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reforms . To quote him or paraphrase

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him again , we went to war with the

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army we had . Not the army he or we

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wanted . Today , the need for Pentagon

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transformation , not just reform , is

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even more urgent than it was when

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Secretary Rumsfeld spoke those words

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nearly a quarter century ago . And his

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words are just as true now as they were

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then . The threat environment we face

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is advanced and multifaceted .

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Technology is evolving at an

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accelerated pace . The information

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landscape has become increasingly

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segmented and personal . And exploited

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by our enemies . Many of our

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adversaries , as you know , don't wear

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uniforms and use civilians as human

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shields . Our enemies . Often activate

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under the threshold of armed conflict ,

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the gray zone , and intend to destroy

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us from within . The world seems

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smaller and more familiar , yet at the

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same time , more complex . As

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I alluded to in my Quantico speech a

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few weeks ago , today we're undertaking

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a department-wide transformation of

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requirements , acquisition , and

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foreign military sales , addressing a

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core function of what we do at the War

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Department , identifying what our war

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fighters need . How we buy those

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capabilities and then how we share

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those capabilities with our allies and

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partners , all in service of decisively

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winning any war that we must wage .

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For too long , our department has been

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hampered by a bureaucracy bogged down

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by burdensome and inefficient processes ,

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paralyzed by impossible risk thresholds

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and distracted by agendas that have

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nothing to do with war fighting .

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Naturally , such a system gives rise to

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a certain culture within the

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organization and people adapt to that

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culture in order to thrive within it .

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The institution shapes the individuals

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as much as the individuals shape the

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institution . It becomes mutually

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reinforcing and over time , the

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prevailing pattern becomes more and

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more entrenched , risk-averse , and

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immovable . To the point that the whole

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psychology of the department is stuck

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in a system in which process , not

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outcomes matter the most .

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Previous administrations have tried and

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failed to address these issues seeking

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to go around the process rather than

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confront it head on , leaving our

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military and our industrial base weaker

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as a result . The department's

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perverse process has in turn fostered a

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culture in today's defense industrial

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base that makes it unlike any other

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American market , uniquely tailored to

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the Pentagon . In the worst way .

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Unstable demand signals , uncertain

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projections , and volatile customer

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base has caused the defense industry to

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adapt , adopt , excuse me , the same

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entrenched , risk-averse , and

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lethargic culture that we have in

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government . The result an absence of

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urgency , a fear of innovation , and a

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fundamental lack of trust between the

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military customer and our limited ,

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more limited than it should be defense

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industrial base . What's worse , the

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defense industry financially benefits

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from our backwards culture . Schedule

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overruns , huge order backlogs , and

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two predictable cost increases become

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the norm . Our military and our

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taxpayers need a defense industrial

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base that they can count on to scale

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with urgency in a crisis , not one that

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is content to wait for money before

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taking urgent action . This relates to

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the whole industrial base and most

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importantly to the large primes that we

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do business with today . These large

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defense primes need to change to focus

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on speed and volume and vest their own

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capital to get there . If we do that ,

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the department of war is , of course ,

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big time supportive of profits . We are

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capitalists after all . But if they do

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not , those big ones will fade away .

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We've all heard this sort of talk

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before , transformation . Of our

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acquisition process is a war of

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attrition . A war that we intend to

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win . Day by day , week by

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week , month by month , year by year ,

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I'm telling you , Feinberg and Duffy

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won't stop . It is , it's been

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the department's fault for far too long

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that we're in this predicament . And it

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will take a focused and sustained

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effort to succeed and succeed , we must .

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We will no longer ignore the plank in

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our own eye . The goal of this speech

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is not to name and shame people or

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companies or departments . Many of you .

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have done important and patriotic work

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for our nation and this department for

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years . Many in for decades , but

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rather , I wanted the opportunity to

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look you , my fellow patriots ,

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straight in the eye . And tell you how

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important you are . You will determine

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whether we deliver for our war fighters .

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You will determine whether we win our

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next war . Either you , our companies ,

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our industries , our defense industrial

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base deliver or we fail . It is

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literally life or death .

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Every dollar squandered on redundancy ,

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bureaucracy , and waste is a dollar

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that could be used to outfit and supply

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the war fodder . We must wage an

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all-out campaign to streamline the

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Pentagon's process to unshackle our

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people from unproductive work and to

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shift our resources from the

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bureaucracy to the battlefield .

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Our objective is simple . Transformed

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the entire acquisition system to

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operate on a wartime footing . To

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rapidly accelerate the fielding of

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capabilities and focus on results , our

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objective is to build , rebuild the

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arsenal of freedom .

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American industry and its innovative

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spirit are begging to be unleashed to

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solve our most complex and dangerous

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warfighting problems . We need to get

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out of our own way , out of your way

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and enter into real partnership with

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you rather than overprescribe and

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decelerate your natural progress . In

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turn , industry needs to perceive

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business with the department of war

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from the perspective of growth . And

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assume risk to partner with the United

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States . Speed and a focus on

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outcomes are fundamental to successful

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deterrence . Our war fighters require

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the depth of capabilities to deter any

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aggression and if necessary ,

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decisively defeat any enemy that dares

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to challenge America . We are not ,

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we're talking here about transformation .

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Not toothless reform . And we're

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seeking it fast . Now , some will say

16:13.900 --> 16:16.067
that any effort to reform the Pentagon

16:16.067 --> 16:18.178
bureaucracy is punishment for real or

16:18.178 --> 16:20.179
perceived slights . We think that's

16:20.179 --> 16:22.590
nonsense . I'm not here to punish .

16:22.630 --> 16:24.869
We're here to liberate . I'm not here

16:24.869 --> 16:26.710
to reform , but to transform and

16:26.710 --> 16:28.669
empower . We mean to save the

16:28.669 --> 16:31.309
bureaucracy from itself .

16:33.109 --> 16:35.220
Because the chairman and I talk about

16:35.220 --> 16:38.400
this all the time . This is a 1939

16:38.400 --> 16:41.919
moment . Or hopefully a 1981

16:41.919 --> 16:45.700
moment . A moment of mounting urgency .

16:46.090 --> 16:48.840
Enemies gather , threats grow , you

16:48.840 --> 16:52.619
feel it , I feel it . If we are going

16:52.619 --> 16:55.260
to prevent and avoid war , which is

16:55.260 --> 16:59.010
what we all want , we must prepare now .

17:00.590 --> 17:02.923
Our adversaries are not sitting idly by ,

17:02.923 --> 17:04.829
they're moving fast . They're

17:04.829 --> 17:06.496
developing and delivering new

17:06.496 --> 17:08.607
capabilities at a rate that should be

17:08.607 --> 17:10.551
sobering to every American , every

17:10.551 --> 17:12.773
American , especially those who work in

17:12.773 --> 17:14.551
the Pentagon and in the defense

17:14.551 --> 17:16.662
industrial base . Their ambitions and

17:16.662 --> 17:19.079
intentions are bold . Their actions

17:19.079 --> 17:21.760
speak volumes and frankly , At times

17:21.760 --> 17:24.839
we've been too slow to respond .

17:26.520 --> 17:28.687
But before we get too far along , when

17:28.687 --> 17:30.687
it comes to transformation , let me

17:30.687 --> 17:30.640
give some credit where credit is due .

17:31.550 --> 17:33.739
President Trump has led on this ,

17:33.750 --> 17:35.750
issued 4 executive orders directing

17:35.750 --> 17:38.028
transformation and defense acquisition ,

17:38.028 --> 17:39.972
spurring innovation of the defense

17:39.972 --> 17:42.390
industrial base in particular , and the

17:42.390 --> 17:44.557
entire federal procurement process and

17:44.557 --> 17:46.557
foreign military sales in general .

17:46.890 --> 17:49.112
That's because the president recognizes

17:49.112 --> 17:52.619
one simple fact . America's military is

17:52.619 --> 17:56.109
the greatest in the world by far . And

17:56.109 --> 17:58.959
we must keep it that way . Our

17:58.959 --> 18:01.181
commander in chief is leading the way ,

18:01.181 --> 18:03.292
affording us , this is what is so key

18:03.292 --> 18:05.459
in any effort like this , affording us

18:05.459 --> 18:08.859
the top cover to do big , hard and

18:08.859 --> 18:12.810
necessary things quickly . Members of

18:12.810 --> 18:14.949
the House and Senate Armed Services

18:14.949 --> 18:18.670
Committee on a bipartisan basis have

18:18.670 --> 18:20.781
advanced proposals to reform Pentagon

18:20.781 --> 18:23.869
procurement through the SED Act and the

18:23.869 --> 18:26.040
forged Act through their close

18:26.040 --> 18:28.151
collaboration and extensive exchanges

18:28.151 --> 18:30.151
with Congress . Much of what we are

18:30.151 --> 18:32.430
planning and announcing directly

18:32.430 --> 18:34.597
reflects the insights and reform ideas

18:34.597 --> 18:36.652
that have emerged from those ongoing

18:36.652 --> 18:38.597
partnerships . Many of the changes

18:38.597 --> 18:40.819
we're implementing today are the direct

18:40.819 --> 18:42.486
result of those congressional

18:42.486 --> 18:44.541
engagements , and we look forward to

18:44.541 --> 18:46.708
continuing this vital collaboration as

18:46.708 --> 18:48.763
we transform the department . So I'm

18:48.763 --> 18:50.708
going to thank Chairman Wicker and

18:50.708 --> 18:52.900
Chairman Rogers , especially for their

18:52.900 --> 18:55.339
leadership on these issues .

18:57.500 --> 18:59.611
Together these executive orders , the

18:59.611 --> 19:01.833
congressional reforms , and the efforts

19:01.833 --> 19:03.556
by the services and department

19:03.556 --> 19:05.722
leadership , many of which are already

19:05.722 --> 19:07.444
underway , will enable 5 broad

19:07.444 --> 19:09.229
transformations . One , inspire

19:09.229 --> 19:11.859
American industry to become a wartime

19:11.859 --> 19:14.130
industrial base that focuses on speed

19:14.130 --> 19:17.180
and volume through reliable demand and

19:17.180 --> 19:19.699
adaptable business practices for

19:19.699 --> 19:22.032
current partners and new entrants alike .

19:22.699 --> 19:24.866
2 , unleash the defense industrial and

19:24.866 --> 19:27.530
government workforces by incentivizing

19:28.199 --> 19:31.900
progress over process . 3 , bias new

19:31.900 --> 19:34.067
acquisition and requirements processes

19:34.067 --> 19:36.359
for speed , flexibility and efficiency .

19:37.109 --> 19:38.810
And 4 , championing technical

19:38.810 --> 19:40.921
excellence and higher risk thresholds

19:41.140 --> 19:42.890
to accelerate high performance

19:43.260 --> 19:47.180
production . And 5 , provoke war speed .

19:48.270 --> 19:51.579
Or warp speed By procuring rapidly and

19:51.579 --> 19:53.939
sustaining readily , cost effectively

19:53.939 --> 19:56.540
as the default , not the exception . So

19:56.540 --> 19:58.770
in short , those are broad principles .

19:59.339 --> 20:03.160
We mean to increase acquisition risk in

20:03.160 --> 20:05.939
order to decrease operational risk .

20:06.699 --> 20:09.369
Let me say that again . We mean to

20:09.369 --> 20:12.969
increase acquisition risk in order to

20:12.969 --> 20:16.709
decrease operational risk . By

20:16.709 --> 20:19.060
taking greater calculated risk and how

20:19.060 --> 20:21.390
we build , buy , and maintain our

20:21.390 --> 20:24.109
systems , we will gain speed to more

20:24.109 --> 20:26.109
quickly provide capabilities to the

20:26.109 --> 20:29.069
battlefield . An 85% solution in the

20:29.069 --> 20:31.060
hands of our armed forces today is

20:31.630 --> 20:33.797
infinitely better than an unachievable

20:33.797 --> 20:36.229
100% solution efforts effortly

20:37.109 --> 20:38.887
endlessly undergoing testing or

20:38.887 --> 20:40.849
awaiting additional technological

20:40.849 --> 20:43.260
development . These are of no use to

20:43.260 --> 20:46.449
troops in harm's way . So to the men

20:46.660 --> 20:48.900
and women of this department , both

20:48.900 --> 20:51.219
military and civilians who work on

20:51.219 --> 20:53.819
acquisition and our industry partners ,

20:53.900 --> 20:56.180
let me say this , you are not our

20:56.180 --> 20:58.236
enemies in this effort , but you are

20:58.236 --> 21:00.459
our allies . You are . Obi-Wan Kenobi ,

21:00.500 --> 21:04.349
you are our only hope . I

21:04.349 --> 21:06.516
hear this , I hear the frustrations of

21:06.516 --> 21:08.293
the senseless bureaucracy , the

21:08.293 --> 21:10.516
constraints . I hear it every day . You

21:10.516 --> 21:12.738
know there is waste , you know there is

21:12.738 --> 21:14.849
abuse , you know there are outdated ,

21:14.849 --> 21:16.905
useless , and silly regulations that

21:16.905 --> 21:19.810
squander taxpayer money . You also have ,

21:19.819 --> 21:22.041
have ideas to help us defend the United

21:22.041 --> 21:25.339
States better . To reform our processes

21:25.339 --> 21:27.506
for the better , to make our processes

21:27.506 --> 21:29.728
more responsive to the needs of the war

21:29.728 --> 21:31.900
fighter . As we move forward , we need

21:31.900 --> 21:34.122
your help and your help as we transform

21:34.122 --> 21:36.233
this effort . As I said at Quantico ,

21:36.619 --> 21:39.369
consider yourself hereby Liberated

21:40.540 --> 21:42.920
In transforming the acquisition process

21:42.920 --> 21:45.400
within the Pentagon , we will build on

21:45.400 --> 21:47.400
the tenets of restoring the warrior

21:47.400 --> 21:49.400
ethos , rebuilding the military and

21:49.400 --> 21:51.567
re-establishing deterrence . We cannot

21:51.567 --> 21:54.040
achieve the last two without infusing

21:54.040 --> 21:56.207
the first throughout the acquisition's

21:56.207 --> 21:58.373
ecosystem , including the boardrooms ,

21:58.373 --> 22:00.599
the labs , and the factories of our

22:00.599 --> 22:03.709
indispensable industry partners . The

22:03.709 --> 22:05.709
first step in achieving the warrior

22:05.709 --> 22:07.820
ethos , as I emphasized at Quantico ,

22:07.820 --> 22:09.931
requires that we expect the same from

22:09.931 --> 22:12.459
our partners . It's imperative that

22:12.459 --> 22:15.479
industry focus on hiring and promoting

22:15.479 --> 22:19.280
individuals based on merit . And not

22:19.489 --> 22:22.540
on some garbage ideological standard .

22:23.130 --> 22:26.479
DEI has failed at every level of every

22:26.479 --> 22:29.030
organization . In our system of

22:29.030 --> 22:31.390
acquisition , we all serve the men and

22:31.390 --> 22:33.612
women in uniform and are accountable to

22:33.612 --> 22:35.859
the American taxpayer , but we all have

22:36.189 --> 22:37.911
a specific role . The Pentagon

22:37.911 --> 22:40.022
establishes expectations and outcomes

22:40.022 --> 22:42.280
and accountability . Industry provides

22:42.280 --> 22:44.391
the talent , the innovation , and the

22:44.391 --> 22:47.199
agility . And the capacity that allows

22:47.199 --> 22:50.199
us to meet our goals . As with our

22:50.199 --> 22:52.255
warriors , the performance standards

22:52.255 --> 22:54.255
that industry needs to meet must be

22:54.255 --> 22:56.520
high and unwavering . Tolerance for

22:56.520 --> 22:59.270
underperformance and failure , low ,

22:59.800 --> 23:01.790
and the imperative for continuous

23:01.790 --> 23:05.619
improvement . Relentless . To achieve

23:05.619 --> 23:08.459
these goals , it's paramount that human

23:08.459 --> 23:10.939
capital decisions across the entire

23:10.939 --> 23:13.161
warfighting acquisitions enterprise are

23:13.161 --> 23:16.800
predicated upon merit . And optimally

23:16.800 --> 23:18.856
enable the recruitment , retention ,

23:18.856 --> 23:21.079
and mobility of America's our nation's

23:21.079 --> 23:24.410
best talent . Just as I told the

23:24.410 --> 23:28.219
uniform ranks , personnel . Is policy

23:29.290 --> 23:32.060
So too in acquisition . Human capital

23:32.060 --> 23:34.393
decisions focused on hiring , promoting ,

23:34.393 --> 23:36.393
rewarding , and accountability will

23:36.393 --> 23:38.282
directly determine the success of

23:38.282 --> 23:39.893
acquisitions reform and more

23:39.893 --> 23:41.949
importantly , whether or not we save

23:41.949 --> 23:44.116
our republic . That's how important it

23:44.116 --> 23:44.739
is . Mhm

23:48.650 --> 23:50.859
The time for half measures , it's been

23:50.859 --> 23:53.339
over for decades , as Secretary

23:53.339 --> 23:56.569
Rumsfeld's speech reminds us . We're

23:56.569 --> 23:58.347
taking bold and swift action to

23:58.347 --> 24:00.402
transform requirements development ,

24:00.402 --> 24:02.625
overhaul our acquisitions process , and

24:02.625 --> 24:04.680
enhance foreign military sales . But

24:04.680 --> 24:06.736
we're not just doing this in silos .

24:06.849 --> 24:09.089
The development of this transformation

24:09.089 --> 24:11.369
has prioritized civil military

24:11.369 --> 24:14.010
collaboration at every step . Ensuring

24:14.010 --> 24:16.177
both our civilian and military leaders

24:16.177 --> 24:18.650
across the services and the joint staff

24:18.650 --> 24:20.872
directly contributed to the development

24:20.872 --> 24:23.039
of the coordination of this overhaul .

24:23.039 --> 24:25.569
This was not OSW sitting in a room

24:25.569 --> 24:27.180
thinking up ideas . This was

24:27.180 --> 24:29.347
collaborative across the Pentagon with

24:29.347 --> 24:31.347
the services and the joint staff to

24:31.347 --> 24:33.625
figure out how we can make this happen .

24:33.625 --> 24:35.847
This is a team effort at the Pentagon .

24:36.050 --> 24:38.650
Not a hostile takeover . Here are the

24:38.650 --> 24:41.349
five overarching transformative pillars

24:41.349 --> 24:43.390
that form the foundation on the

24:43.390 --> 24:46.050
procurement process . First , we will

24:46.050 --> 24:48.449
stabilize demand signals . We will

24:48.449 --> 24:50.939
award companies bigger , longer

24:50.939 --> 24:53.469
contracts for proven systems , so those

24:53.469 --> 24:55.191
companies will be confident in

24:55.191 --> 24:57.302
investing more to grow the industrial

24:57.302 --> 24:59.630
base that supplies our weapon systems

24:59.630 --> 25:03.030
more and faster . Second , we will

25:03.030 --> 25:04.829
prioritize the purchase of

25:04.829 --> 25:07.750
industry-driven solutions , commercial

25:07.750 --> 25:10.469
solutions first , that meet our needs

25:10.469 --> 25:12.910
faster , even if that means bids do not

25:12.910 --> 25:15.760
meet every requirement . It means that

25:15.760 --> 25:17.890
we will be open to buying the 85%

25:17.890 --> 25:20.112
solution and iterate together over time

25:20.112 --> 25:22.310
to achieve the 100% solution . It also

25:22.310 --> 25:24.869
means there will be no non-compliant

25:24.869 --> 25:28.300
bids . Third , we will empower our

25:28.300 --> 25:30.244
program leaders with the control ,

25:30.244 --> 25:32.244
expertise , and authority to direct

25:32.244 --> 25:35.020
program outcomes , to move money and

25:35.020 --> 25:37.242
quickly adjust the priority of required

25:37.242 --> 25:39.780
system performance to deliver on time

25:39.780 --> 25:43.670
and under budget . Fourth , we will

25:43.670 --> 25:45.949
inject urgency and excellence into the

25:45.949 --> 25:49.229
dib . The Department of War will only

25:49.229 --> 25:51.451
do business with industry partners that

25:51.451 --> 25:54.349
share our priority of speed and volume

25:54.349 --> 25:56.869
above all else , who are willing to

25:56.869 --> 25:58.869
surge American manufacturing at the

25:58.869 --> 26:01.270
speed of ingenuity to deliver rapidly

26:01.270 --> 26:04.109
and reliably for our war fighters , and

26:04.109 --> 26:07.680
5th . Regulatory reform . We will

26:07.680 --> 26:10.119
remove excessive and burdensome FAR and

26:10.119 --> 26:12.286
DFA's rules , reporting requirements ,

26:12.319 --> 26:14.160
accounting standards , excessive

26:14.160 --> 26:16.216
testing oversight , excessively long

26:16.216 --> 26:18.271
studies and analysis , anything that

26:18.479 --> 26:21.040
unnecessarily slows down government

26:21.040 --> 26:24.849
contracts will be eliminated . So the

26:24.849 --> 26:27.459
bottom line is this . These changes

26:27.459 --> 26:30.229
will move us from the current prime

26:30.229 --> 26:32.699
contractor dominated system defined by

26:32.699 --> 26:35.290
limited competition , vendor lock ,

26:35.660 --> 26:38.170
cost plus contracts , stressed budgets ,

26:38.500 --> 26:42.199
and frustrating protests . To a future

26:42.199 --> 26:44.366
powered by a dynamic vendor space that

26:44.366 --> 26:46.366
accelerates production by combining

26:46.366 --> 26:49.150
investment at a commercial pace with

26:49.150 --> 26:52.000
the uniquely American ability to scale

26:52.000 --> 26:55.109
quickly . Taken together , we will

26:55.109 --> 26:57.109
rebuild the defense industrial base

26:57.109 --> 26:59.550
into a new arsenal of freedom .

27:01.040 --> 27:02.984
What we're doing today marks a new

27:02.984 --> 27:05.151
horizon for how we acquire and deliver

27:05.151 --> 27:07.096
war fighting capabilities . We are

27:07.096 --> 27:09.349
prioritizing speed , flexibility ,

27:09.660 --> 27:11.549
competition , and calculated risk

27:11.549 --> 27:13.400
taking . We will buy commercial

27:13.400 --> 27:15.178
solutions to the maximum extent

27:15.178 --> 27:17.959
possible , practicable , and we will

27:17.959 --> 27:20.181
ensure our systems can produce at scale

27:20.181 --> 27:22.348
and relentlessly focused on delivering

27:22.348 --> 27:24.181
modern lethal weapons to our war

27:24.181 --> 27:26.949
fighters . End of story . To fix this

27:26.949 --> 27:29.369
entire process . We need to fix the

27:29.369 --> 27:32.250
heart of it all , which is requirements .

27:33.479 --> 27:35.949
For decades , our requirements process

27:36.359 --> 27:38.581
under the name , and you know it well ,

27:38.839 --> 27:40.599
Joint Capabilities Integration

27:40.599 --> 27:43.790
Development System or JSIDS . Has

27:43.790 --> 27:45.734
become an inefficient bureaucratic

27:45.734 --> 27:47.957
system in need of a complete overhaul .

27:48.839 --> 27:52.439
Which is why today at my direction we

27:52.439 --> 27:54.328
are transforming the department's

27:54.328 --> 27:56.050
process for joint requirements

27:56.050 --> 27:57.719
determination . Revisioning

27:57.719 --> 27:59.941
re-envisioning the requirements process

27:59.941 --> 28:03.000
is a decisive step in rebuilding the

28:03.000 --> 28:04.889
nation that once led the world in

28:04.889 --> 28:06.790
turning ideas into combat power ,

28:07.119 --> 28:10.910
thoughts into lethality . I'm canceling ,

28:11.109 --> 28:14.170
Jay Sis . Which moved at the speed of

28:14.170 --> 28:17.599
paperwork , not war . To put it plainly ,

28:17.760 --> 28:19.439
Jason's became a years-long

28:19.439 --> 28:21.439
bureaucratic anchor that dragged us

28:21.439 --> 28:23.670
dragged us down while our adversaries

28:23.670 --> 28:26.400
surged ahead with purpose and precision .

28:27.540 --> 28:29.780
JSIDS was focused on defining systems

28:29.780 --> 28:31.836
requirements , staffing them through

28:31.836 --> 28:33.947
countless oversight boards , and then

28:33.947 --> 28:36.058
locking them down , while threats and

28:36.058 --> 28:38.739
technologies continued to evolve . To

28:38.739 --> 28:40.961
validate requirements documents , JSIDs

28:40.961 --> 28:44.489
often took over 300 days . Yes ,

28:44.869 --> 28:47.739
300 days to close , close to 1 whole

28:47.739 --> 28:51.300
year just to approve a single

28:51.300 --> 28:54.280
document . By the time it got stamped ,

28:54.729 --> 28:57.500
and it probably was stamped . The

28:57.500 --> 28:59.222
threat had changed and the war

28:59.222 --> 29:01.599
fighters' needs had shifted . The

29:01.599 --> 29:03.710
process was so complicated that there

29:03.710 --> 29:06.719
is a 400-page manual , instruction

29:06.719 --> 29:09.160
manual just to understand it , imposing

29:09.160 --> 29:11.493
endless templates and layers for review .

29:12.510 --> 29:14.550
JIDDS had dozens of reviewers and

29:14.550 --> 29:16.829
sign-offs and hundreds of comments to

29:16.829 --> 29:18.885
approve a single document . It's its

29:18.885 --> 29:21.107
own ecosystem , most of , most of which

29:21.107 --> 29:24.310
added little to no value . We tried to

29:24.310 --> 29:26.032
please everyone , so we chased

29:26.032 --> 29:27.921
consensus instead of clarity . It

29:27.921 --> 29:30.199
became a go along to get along process .

29:31.109 --> 29:33.410
The result , overspecified requirements

29:33.410 --> 29:35.859
that satisfy everyone and serve no one .

29:36.300 --> 29:40.050
A process built to serve the

29:40.050 --> 29:43.099
process . Our industry partners know

29:43.099 --> 29:45.321
the biggest obstacle isn't technology ,

29:45.321 --> 29:47.432
it's our processes . Requirements are

29:47.432 --> 29:49.655
unclear or overly prescriptive and even

29:49.655 --> 29:52.420
contradict themselves , like that last

29:52.420 --> 29:56.040
sentence . They're either so rigid that

29:56.040 --> 29:58.280
they strangle innovation or so vague

29:58.280 --> 30:00.479
that nobody knows what done actually

30:00.479 --> 30:03.219
looks like . Contractors waste time

30:03.219 --> 30:05.339
guessing instead of building . The

30:05.339 --> 30:07.979
result caused overruns , frustration on

30:07.979 --> 30:11.260
both sides and delayed delivery to the

30:11.260 --> 30:14.439
warfighter . What industry is asking

30:14.439 --> 30:18.199
for is simple . Clear , stable

30:18.199 --> 30:20.550
problem statements provided early

30:20.550 --> 30:22.550
enough to plan , hire and train the

30:22.550 --> 30:24.979
workforce , and then invest in capital

30:24.979 --> 30:27.859
modernization . We rarely engage

30:27.859 --> 30:29.910
innovators early and when we do the

30:29.910 --> 30:32.390
process tries to retrofit their ideas

30:32.390 --> 30:35.599
into outdated formats . Existing

30:35.599 --> 30:37.655
industry partners who understand the

30:37.655 --> 30:39.877
cumbersome process don't even bother to

30:39.877 --> 30:42.099
innovate . They know there is no upside

30:42.439 --> 30:45.199
to innovation . Rigid standards and

30:45.199 --> 30:47.209
archaic templates choke the agility

30:47.209 --> 30:50.209
that we need . That's why innovation

30:50.209 --> 30:52.660
groups exist to bypass JIDs entirely .

30:53.479 --> 30:56.410
And deliver faster . The lesson is

30:56.410 --> 30:58.577
obvious . If we want innovation and we

30:58.577 --> 31:00.410
desperately do , we must build a

31:00.410 --> 31:02.410
requirement system that welcomes it

31:02.410 --> 31:05.079
instead of smothers it . You can catch

31:05.079 --> 31:07.301
a glimpse of where we're moving when it

31:07.301 --> 31:09.357
comes to our commitment to acquiring

31:09.357 --> 31:11.635
critical munitions and the Golden Dome .

31:12.939 --> 31:14.969
Secretary Gates , for example ,

31:15.099 --> 31:17.155
circumvented the Pentagon process to

31:17.155 --> 31:19.210
quickly develop and field the MRAP .

31:19.210 --> 31:21.321
Now , we're already moving at wartime

31:21.321 --> 31:23.488
speed on both of those Golden Dome and

31:23.488 --> 31:25.449
munitions working outside the slow

31:25.449 --> 31:27.500
bureaucratic process .

31:29.069 --> 31:31.599
But we shouldn't have to go outside the

31:31.599 --> 31:34.560
process to make it work . Urgent needs

31:34.560 --> 31:36.727
are met by circumventing it . We can't

31:36.727 --> 31:38.727
rely on that . Instead , the entire

31:38.727 --> 31:40.616
process must move at the speed of

31:40.616 --> 31:43.719
critical munitions , Golden Dome , and

31:43.719 --> 31:46.530
the MRAP . In short , we can't continue

31:46.530 --> 31:49.770
making big promises we can't keep . The

31:49.770 --> 31:51.881
people who define what we need aren't

31:51.881 --> 31:53.937
linked to the people who control the

31:53.937 --> 31:55.714
money or build the systems . So

31:55.714 --> 31:57.770
requirements move forward on paper ,

31:57.770 --> 31:59.780
but the funding and execution don't

31:59.780 --> 32:02.170
follow . By the way , folks are

32:02.170 --> 32:04.281
watching this on Fox , their eyes are

32:04.281 --> 32:06.540
rolling over . You're , but everyone in

32:06.540 --> 32:09.849
this room understands exactly . What

32:10.140 --> 32:14.030
I'm talking about . The result

32:14.030 --> 32:15.974
plans without resources , programs

32:15.974 --> 32:17.863
without liftoff , and warfighters

32:17.863 --> 32:19.863
waving for capabilities that arrive

32:19.863 --> 32:21.989
late or never arrive at all . No

32:21.989 --> 32:24.156
feedback loop , no shared priorities ,

32:24.156 --> 32:26.670
and no accountability . Until we

32:26.670 --> 32:28.670
connect need , money , and delivery

32:28.670 --> 32:31.339
under one roof , we keep producing wish

32:31.339 --> 32:34.489
lists instead of weapons . President

32:34.489 --> 32:36.322
Trump recognized the reality and

32:36.322 --> 32:38.969
challenged our department to adopt a

32:38.969 --> 32:40.858
wartime mindset , to confront the

32:40.858 --> 32:43.010
bloated and inefficient bureaucracy .

32:43.930 --> 32:46.041
And that is why today at my direction

32:46.041 --> 32:48.208
we are undertaking a series of actions

32:48.208 --> 32:50.152
that immediately and fundamentally

32:50.152 --> 32:52.410
change how we develop requirements . To

32:52.410 --> 32:54.577
get capabilities into the hands of our

32:54.577 --> 32:58.089
warfighters at speed . We're ending a

32:58.089 --> 33:00.200
system that was built for paperwork ,

33:00.250 --> 33:02.689
not mission . JIDs is dead and it was

33:02.689 --> 33:04.856
slow and bloated and disconnected from

33:04.856 --> 33:07.420
reality and we will do better . I'm

33:07.420 --> 33:09.253
directing the Joint Requirements

33:09.253 --> 33:11.253
Oversight Council , the JOC to stop

33:11.253 --> 33:13.420
validating service requirements and to

33:13.420 --> 33:15.587
kill the paperwork culture that buries

33:15.587 --> 33:17.864
ideas before they ever reach the field .

33:18.189 --> 33:20.189
In its place , we're building a new

33:20.189 --> 33:22.245
model focused on speed , alignment ,

33:22.245 --> 33:24.510
and action . We're also reorienting the

33:24.510 --> 33:26.566
JOC to start identifying and ranking

33:26.566 --> 33:29.109
the joint forces toughest problems ,

33:29.550 --> 33:32.750
what we call joint operational problems .

33:33.050 --> 33:35.469
The problems will drive the priorities

33:35.469 --> 33:38.689
for the entire department . That is why

33:38.689 --> 33:40.911
today at my direction we're standing up

33:40.911 --> 33:43.459
3 new decision forums in place of JSIDS .

33:44.339 --> 33:46.228
The first is the Requirements and

33:46.228 --> 33:49.400
Resourcing Alignment Board , or RRAB ,

33:49.810 --> 33:51.754
a new decision forum co-led by the

33:51.754 --> 33:54.420
Deputy Secretary of War and the Vice

33:54.420 --> 33:56.531
Chairman of the Joint Chiefs of Staff

33:56.531 --> 33:58.890
to tie money directly to those top war

33:58.890 --> 34:01.089
fighting priorities . We will ensure

34:01.089 --> 34:03.770
the joint forces top problems are

34:03.770 --> 34:06.290
funded . We're also creating the

34:06.290 --> 34:08.449
Mission Engineering and integration

34:08.449 --> 34:12.050
Activity , or MEIA to bring the best

34:12.050 --> 34:14.050
minds , government , industry , and

34:14.050 --> 34:16.889
labs together early to experiment ,

34:16.969 --> 34:18.969
integrate , iterate , and prototype

34:18.969 --> 34:20.913
solutions instead of watching good

34:20.913 --> 34:23.025
ideas die at the hands of a worthless

34:23.025 --> 34:25.136
process . And to make sure good ideas

34:25.136 --> 34:27.239
don't die in the infamous valley of

34:27.239 --> 34:29.879
death , we're establishing the Joint

34:29.879 --> 34:33.120
Acceleration Reserve or JAR , a funding

34:33.120 --> 34:35.879
pool set aside to move promising

34:35.879 --> 34:37.969
solutions straight into the fight .

34:39.360 --> 34:41.416
Finally , each military service will

34:41.416 --> 34:43.582
review and reform its own requirements

34:43.582 --> 34:45.693
process , cutting red tape , engaging

34:45.693 --> 34:47.471
industry earlier , and aligning

34:47.471 --> 34:49.527
internal priorities to the new joint

34:49.527 --> 34:52.729
system . So what do we believe this new

34:52.729 --> 34:56.469
process will achieve ? Speed replaces

34:56.469 --> 34:58.989
process , money follows need , joint

34:58.989 --> 35:01.669
problems drive action , experimentation

35:01.669 --> 35:03.891
accelerates delivery , and the services

35:03.891 --> 35:06.360
move faster and smarter .

35:07.870 --> 35:10.360
Take contested logistics , for example .

35:10.669 --> 35:12.558
When we fight our ability to move

35:12.558 --> 35:14.780
weapons , supplies , and reinforcements

35:14.780 --> 35:16.725
to the front lines and back , it's

35:16.725 --> 35:18.725
critical . We can stay in the fight

35:18.725 --> 35:20.836
only as long as our logistics sustain

35:20.836 --> 35:22.891
us . Our adversaries know this , and

35:22.891 --> 35:24.947
they will attack our supply routes ,

35:24.947 --> 35:26.780
ports , airfields , depots , and

35:26.780 --> 35:29.002
information systems in order to disrupt

35:29.002 --> 35:31.113
us . We must be able to fight in this

35:31.113 --> 35:33.002
contested environment , and these

35:33.002 --> 35:35.225
reforms will ensure that we can . We'll

35:35.225 --> 35:37.391
start by elevating contested logistics

35:37.391 --> 35:39.239
as a key prioritized operational

35:39.239 --> 35:41.461
problem . We're gonna work side by side

35:41.461 --> 35:43.572
with our industry partners to come up

35:43.572 --> 35:45.461
with innovative solutions through

35:45.461 --> 35:47.572
experimentation and rapid prototyping

35:47.572 --> 35:49.739
and ensure that it's properly funded .

35:49.739 --> 35:51.517
Logistics will be prioritized ,

35:51.517 --> 35:54.149
integrated , and delivered as quickly

35:54.149 --> 35:56.870
and as long as our war fighters need it .

35:57.100 --> 35:59.044
See , we're moving from process to

35:59.044 --> 36:00.767
purpose and for paper to power

36:00.767 --> 36:02.822
projection . And this is not a minor

36:02.822 --> 36:04.489
requirements reform . It is a

36:04.489 --> 36:06.600
transformation . A change that allows

36:06.600 --> 36:08.949
us to outpace our adversaries and

36:08.949 --> 36:12.030
restore deterrence , field capabilities

36:12.030 --> 36:14.086
quickly and welcome new entrants , a

36:14.086 --> 36:16.086
chance to achieve President Trump's

36:16.086 --> 36:18.899
vision of peace through strength .

36:19.229 --> 36:21.173
Every leader , every program , and

36:21.173 --> 36:24.100
every dollar will face one simple test .

36:24.709 --> 36:27.510
Are we delivering real capability to

36:27.510 --> 36:30.070
the war fighter fast faster than we

36:30.070 --> 36:32.750
were before ? If the answer is no , we

36:32.750 --> 36:35.850
will adapt . We will not stop and we

36:35.850 --> 36:39.350
will not back down . That was

36:39.350 --> 36:43.000
requirements onto acquisitions . Hand

36:43.000 --> 36:44.611
in hand with requirements is

36:44.611 --> 36:47.629
acquisitions transformation . Which is

36:47.629 --> 36:49.540
why today at my direction , the

36:49.540 --> 36:51.484
Department of War will immediately

36:51.484 --> 36:53.429
begin implementing a comprehensive

36:53.429 --> 36:55.484
overhaul of our acquisition system .

36:56.699 --> 36:58.921
President Trump did not send us here to

36:58.921 --> 37:01.989
nibble at the edges . He sent us here

37:01.989 --> 37:04.760
to fix it . And that's exactly what we

37:04.760 --> 37:07.080
plan to do . As mentioned earlier ,

37:07.199 --> 37:09.143
President Trump's executive orders

37:09.143 --> 37:11.088
direct the department to modernize

37:11.088 --> 37:13.310
acquisition for speed , flexibility and

37:13.310 --> 37:15.750
efficiency , to revitalize the defense

37:15.750 --> 37:17.917
industrial base and leverage America's

37:17.917 --> 37:20.199
commercial innovation , to incentivize

37:20.199 --> 37:23.000
our acquisitions workforce , encourage

37:23.000 --> 37:26.600
risk taking . And cut red tape ,

37:27.050 --> 37:29.340
promoting efficiency and enhancing

37:29.689 --> 37:32.949
competition . That is why today at my

37:32.949 --> 37:34.949
direction , the defense acquisition

37:34.949 --> 37:38.530
system as you know it is dead . It's

37:38.530 --> 37:41.639
now the warfighting acquisition system .

37:42.129 --> 37:44.129
And this isn't just a name change ,

37:44.129 --> 37:46.351
it's a fundamental shift in how we view

37:46.351 --> 37:49.379
and practice acquisition . General Omar

37:49.379 --> 37:52.540
Bradley once noted that amateurs talk

37:52.540 --> 37:55.260
about tactics , but professionals study

37:55.260 --> 37:57.427
logistics and of course , he's right .

37:58.139 --> 38:01.159
Wars are won and lost not only by

38:01.159 --> 38:03.103
warriors on the battlefield but by

38:03.103 --> 38:05.270
acquisition and industry professionals

38:05.270 --> 38:07.326
who shaped the fight years before it

38:07.326 --> 38:09.659
ever takes place . That's all of us and

38:09.659 --> 38:12.459
all of you . Acquisition is a war

38:12.459 --> 38:14.620
fighting function and it must enable

38:14.620 --> 38:16.889
and encourage continuous adaptation and

38:16.889 --> 38:18.667
improvement of our war fighting

38:18.667 --> 38:20.979
capability . We need acquisition and

38:20.979 --> 38:23.540
industry to be as strong and fast as

38:23.540 --> 38:26.469
our war fighters . The war fighting

38:26.469 --> 38:28.525
acquisition system will dramatically

38:28.525 --> 38:30.691
shorten timelines , improve and expand

38:30.691 --> 38:32.691
the defense industrial base , boost

38:32.691 --> 38:34.802
competition , and empower acquisition

38:34.802 --> 38:36.636
officials to take risks and make

38:36.636 --> 38:38.580
trade-offs . We're leaving the old

38:38.969 --> 38:41.489
failed process behind and we'll instead

38:41.489 --> 38:43.209
embrace a new agile and

38:43.209 --> 38:45.889
results-oriented approach . What used

38:45.889 --> 38:47.945
to take sometimes when you add it up

38:47.945 --> 38:49.945
with requirements 3 to 8 years , we

38:49.945 --> 38:52.360
believe can happen within a year .

38:53.919 --> 38:56.560
That old approach had 3 systemic

38:56.560 --> 38:58.600
challenges . First , fragmented

38:58.600 --> 39:00.711
accountability where no single leader

39:00.711 --> 39:02.822
could make trade-offs between speed ,

39:02.822 --> 39:04.767
performance , and cost . No one to

39:04.767 --> 39:06.767
charge . Second , broken incentives

39:06.767 --> 39:09.429
that reward compliance with rules and

39:09.429 --> 39:11.909
regulations , ignoring scheduled delays

39:11.909 --> 39:14.429
and cost overruns , resulting in our

39:14.429 --> 39:16.629
war fighters operating with old

39:16.629 --> 39:20.370
unreliable legacy systems . And

39:20.370 --> 39:22.203
third , a chaotic requirements ,

39:22.203 --> 39:24.314
budgeting and contracting environment

39:24.314 --> 39:25.981
that disincentivized industry

39:25.981 --> 39:27.981
investment , leading to constrained

39:27.981 --> 39:30.750
capacity that cannot surge or adapt

39:30.750 --> 39:33.250
quickly without government intervention

39:33.250 --> 39:36.090
and of course more and more funding .

39:37.429 --> 39:40.040
The core principle of the acquisitions

39:40.040 --> 39:42.320
transformation we are unveiling today

39:42.320 --> 39:45.360
is simple . Place accountable decision

39:45.360 --> 39:47.800
makers as close as possible to the

39:47.800 --> 39:50.389
program execution . Eliminate the

39:50.389 --> 39:52.556
layers of bureaucracy that hinder them

39:52.830 --> 39:54.552
and then empower them with the

39:54.552 --> 39:56.608
authorities and flexibility to drive

39:56.608 --> 39:58.800
timely delivery . Eliminating the

39:58.800 --> 40:00.800
layers of bureaucracy mean every

40:00.800 --> 40:03.022
program , every process , every board ,

40:03.022 --> 40:04.911
and every review must justify its

40:04.911 --> 40:07.022
existence by demonstrating value in a

40:07.022 --> 40:09.280
timely manner of capabilities to the

40:09.280 --> 40:12.290
warfighter . Those that are of low or

40:12.290 --> 40:14.401
no value will be eliminated so we can

40:14.401 --> 40:16.401
continue to accelerate our speed of

40:16.401 --> 40:18.969
delivery to the Warriors . Here's what

40:18.969 --> 40:21.310
you can expect today at my direction ,

40:21.330 --> 40:23.439
we are transforming and reorganizing

40:23.439 --> 40:26.209
the existing program executive offices

40:26.209 --> 40:29.969
or PEOs into portfolio acquisition

40:29.969 --> 40:33.610
executives or PAEs . The

40:33.610 --> 40:35.889
acquisition chain of authority will run

40:35.889 --> 40:38.929
directly from the program manager to

40:38.929 --> 40:42.810
the PAE . Each PAE will be will be

40:42.810 --> 40:45.629
the single accountable official for

40:45.629 --> 40:47.979
portfolio outcomes and have the

40:47.979 --> 40:49.812
authority to act without running

40:49.812 --> 40:51.590
through months or even years of

40:51.590 --> 40:53.590
approval chains and they'll be held

40:53.590 --> 40:56.719
accountable to deliver results . Now ,

40:56.729 --> 40:59.610
these PAEs will be empowered with the

40:59.610 --> 41:01.832
authorities to make decisions on cost ,

41:02.209 --> 41:04.320
schedule , and performance trade-offs

41:04.320 --> 41:06.729
that prioritize time to field and

41:06.729 --> 41:09.610
mission outcomes . That means less time

41:09.610 --> 41:11.959
identifying what our war fighters need ,

41:12.189 --> 41:15.110
releasing solicitations to industry and

41:15.110 --> 41:17.310
finalizing contracts to get production

41:17.310 --> 41:20.389
running at scale . Our warfighters , as

41:20.389 --> 41:22.500
you know , can't wait decades for the

41:22.500 --> 41:24.667
tools they need to deter and fight our

41:24.667 --> 41:27.379
wars and to win them . The current pace

41:27.379 --> 41:29.101
of technological innovation is

41:29.101 --> 41:31.268
unprecedented . The services deal with

41:31.268 --> 41:33.435
it every day . By the time we feel new

41:33.435 --> 41:35.657
capabilities , they need to be upgraded

41:35.657 --> 41:37.435
and then upgraded repeatedly to

41:37.435 --> 41:39.490
maintain edge over our adversaries ,

41:39.490 --> 41:41.601
and it's not just software that needs

41:41.601 --> 41:43.601
regular updating , but the critical

41:43.601 --> 41:45.657
components as well . By the time the

41:45.657 --> 41:47.323
time to make those updates in

41:47.323 --> 41:49.490
production , let alone putting them in

41:49.490 --> 41:51.490
contract , is delaying schedules by

41:51.490 --> 41:53.929
years . Everyone in here knows it ,

41:54.270 --> 41:57.459
years . And we're done with that status

41:57.459 --> 42:00.229
quo . Which is why today at my

42:00.229 --> 42:02.396
direction , the Department of War will

42:02.396 --> 42:04.618
issue guidance within the next 180 days

42:04.618 --> 42:07.189
for portfolio acquisition executives to

42:07.189 --> 42:09.070
implement several game changing

42:09.070 --> 42:12.669
practices . We will establish adaptable

42:12.669 --> 42:14.558
test approaches that enable rapid

42:14.558 --> 42:17.149
certification , evaluate multi-track

42:17.149 --> 42:19.260
acquisition strategies to allow third

42:19.260 --> 42:21.750
party surge manufacturing capability .

42:22.510 --> 42:25.010
Or capacity , excuse me , maintain a

42:25.010 --> 42:27.177
standard to carry at least 2 qualified

42:27.177 --> 42:29.232
sources through initial production .

42:29.500 --> 42:31.611
And lastly , we will establish module

42:31.611 --> 42:34.770
level competition through modular open

42:34.770 --> 42:37.739
systems approach . The Department's

42:37.739 --> 42:40.500
Office of Acquisition and excuse me ,

42:40.729 --> 42:42.951
the Department's Office of Research and

42:42.951 --> 42:45.007
Engineering led by Undersecretary of

42:45.007 --> 42:47.062
War Emil Michael , along with , uh ,

42:47.300 --> 42:50.090
Mike Duffy will issue these revised

42:50.090 --> 42:53.629
guidelines , ANS and R&E . No more

42:53.629 --> 42:55.518
standing by and talking about the

42:55.518 --> 42:57.462
benefits of modular capabilities .

42:57.959 --> 43:00.909
We're making this a reality . Portfolio

43:00.909 --> 43:03.229
acquisition executives will now have

43:03.229 --> 43:06.159
the authority to enact the modular open

43:06.159 --> 43:08.669
system approach , a technique that

43:08.669 --> 43:10.891
commercial industry has been practicing

43:10.891 --> 43:12.891
and using for years . Imagine being

43:12.891 --> 43:14.891
able to swap parts or software of a

43:14.891 --> 43:17.058
critical munition without needing to ,

43:17.058 --> 43:19.225
I don't know , completely redesign the

43:19.225 --> 43:21.447
missile . It's common sense , but we're

43:21.447 --> 43:23.510
not doing it . Updating our lethal

43:23.510 --> 43:25.949
capabilities in real time should be the

43:25.949 --> 43:28.116
norm , not waiting years to redesign ,

43:28.189 --> 43:30.411
produce , and feel the platform just to

43:30.411 --> 43:32.578
have it just in time for it to undergo

43:32.578 --> 43:34.689
another round of updates . Around the

43:34.689 --> 43:36.633
clock software updates should be a

43:36.633 --> 43:38.800
given , just like on your smartphone .

43:39.489 --> 43:41.600
To improve performance and critically

43:41.600 --> 43:43.545
protect our infrastructure against

43:43.545 --> 43:46.550
rapidly evolving cyber threats . It's

43:46.550 --> 43:48.772
all about empowering innovation and not

43:48.772 --> 43:51.070
stifling it . It's about defense , the

43:51.070 --> 43:53.292
defense industry , leveraging practices

43:53.292 --> 43:55.181
the commercial sector has already

43:55.181 --> 43:57.840
perfected . Things like computer aided

43:57.840 --> 44:00.520
design . Digital processes , building

44:00.520 --> 44:03.919
virtual models and 3 3D printing . We

44:03.919 --> 44:06.086
will break down monolithic systems and

44:06.086 --> 44:08.086
build a future where our technology

44:08.086 --> 44:11.389
adapts to the threat in real near time .

44:15.949 --> 44:18.239
Contracting officers will be embedded

44:18.239 --> 44:20.590
within program teams and accountable to

44:20.590 --> 44:22.757
program leaders , shoulder to shoulder

44:22.757 --> 44:24.812
with our engineers , operators , and

44:24.812 --> 44:26.979
warfighters , the ultimate end users .

44:28.139 --> 44:30.530
Who can provide critical real-world

44:30.530 --> 44:32.363
user feedback to the engineers .

44:32.459 --> 44:34.626
Contracting officers' performance will

44:34.626 --> 44:36.681
be judged not on mindless compliance

44:36.939 --> 44:39.217
with thousands of pages of regulations ,

44:39.217 --> 44:43.100
but on mission outcomes . The portfolio

44:43.100 --> 44:46.080
chain of command are the ones in charge .

44:46.610 --> 44:48.943
They're responsible for mission success .

44:48.943 --> 44:50.888
If the mission is not successful ,

44:50.888 --> 44:52.943
there will be real consequences . We

44:52.943 --> 44:55.166
will ensure accountability by extending

44:55.166 --> 44:56.999
PAE tenure to be longer than the

44:56.999 --> 45:00.399
current PEO service times . We will

45:00.399 --> 45:02.399
leverage taxpayer dollars in a more

45:02.399 --> 45:04.621
accountable , flexible , and deliberate

45:04.621 --> 45:06.732
manner to maximize their value across

45:06.732 --> 45:09.239
capability portfolios . We will shift

45:09.239 --> 45:11.560
funding within portfolios authorized

45:11.560 --> 45:14.239
boundaries swiftly and decisively to

45:14.239 --> 45:17.270
maximize mission outcomes . If one

45:17.270 --> 45:19.520
program is faltering , funding will be

45:19.520 --> 45:21.298
shifted within the portfolio to

45:21.298 --> 45:23.520
accelerate or scale a higher priority .

45:23.770 --> 45:26.080
If a new or more promising technology

45:26.080 --> 45:28.530
emerges , we will seize the opportunity

45:28.530 --> 45:30.570
and not be held back by artificial

45:30.570 --> 45:32.792
constraints and funding boundaries that

45:32.792 --> 45:35.014
take months or even years to overcome .

45:35.969 --> 45:38.239
And we will partner with Congress at

45:38.239 --> 45:40.719
every step of the way for seeking

45:40.719 --> 45:42.959
maximum flexibility empowered by

45:42.959 --> 45:45.409
transparency . Instead of each program

45:45.409 --> 45:47.353
acquiring its own infrastructure ,

45:47.353 --> 45:49.260
portfolios will invest in common

45:49.260 --> 45:51.739
platforms , interfaces , and test

45:51.739 --> 45:54.020
ranges . No more endless delays or

45:54.020 --> 45:56.179
bureaucratic gridlock , no more

45:56.179 --> 45:58.290
customized acquisition pathways . The

45:58.290 --> 46:00.401
battlefield doesn't work that way and

46:00.401 --> 46:02.068
neither should our capability

46:02.068 --> 46:04.780
development . Programs will be

46:05.189 --> 46:08.189
scheduled driven . With fixed delivery

46:08.189 --> 46:10.479
cycles that embrace learning through

46:10.479 --> 46:13.040
iterative development . Our combatant

46:13.040 --> 46:14.818
commanders will get operational

46:14.818 --> 46:18.199
capabilities years earlier on mature

46:18.199 --> 46:20.310
technologies before the threat window

46:20.310 --> 46:23.489
actually closes . We will require rapid

46:23.489 --> 46:25.489
fielding dates with clear goals for

46:25.489 --> 46:27.530
unit cost ceilings and reasonable

46:27.530 --> 46:30.489
mission effectiveness standards . All

46:30.489 --> 46:33.520
other attributes must remain tradable .

46:34.469 --> 46:36.691
We will be agile and respond to rapidly

46:36.691 --> 46:38.525
changing threats and battlefield

46:38.525 --> 46:42.310
conditions , empowering the PAE to

46:42.310 --> 46:44.088
seek deviations , waivers , and

46:44.088 --> 46:46.088
delegation authorities to deliver a

46:46.088 --> 46:48.260
highly responsive acquisition

46:48.260 --> 46:50.340
capability . We will eliminate

46:50.340 --> 46:52.340
unnecessary technical standards and

46:52.340 --> 46:54.562
compliance requirements that add little

46:54.562 --> 46:56.620
or no value to fielding lethal

46:56.620 --> 46:59.709
capabilities . We will create lean

46:59.709 --> 47:01.969
technical advisory processes to inform

47:01.969 --> 47:04.409
accelerated decision making . We want

47:04.409 --> 47:07.649
technical rigor without sacrificing

47:07.649 --> 47:09.889
speed . Technical rigor will only come

47:09.889 --> 47:12.350
from people most engaged in the program ,

47:12.770 --> 47:14.881
and they should have a large voice in

47:14.881 --> 47:17.389
the process . No more lengthy ,

47:17.649 --> 47:19.969
inefficient reviews by people who are

47:19.969 --> 47:23.409
out of the loop and add nothing but

47:23.409 --> 47:26.350
time to the process . We will focus on

47:26.350 --> 47:28.517
the operational problems that material

47:28.517 --> 47:30.683
solutions are intended to address . We

47:30.683 --> 47:33.469
will prefer alternate proposals or

47:33.469 --> 47:35.413
solutions that deviate from stated

47:35.413 --> 47:37.302
requirements but more effectively

47:37.302 --> 47:39.239
achieve operational objectives .

47:39.550 --> 47:41.459
Evaluation criteria will focus on

47:41.459 --> 47:43.379
mission effectiveness , not

47:45.270 --> 47:47.919
specification compliance . We're not

47:47.919 --> 47:50.520
just buying something . We're solving

47:50.520 --> 47:52.679
life and death problems for our

47:52.679 --> 47:54.909
warfighters . We're not building for

47:54.909 --> 47:56.687
peacetime . We are pivoting the

47:56.687 --> 47:58.798
Pentagon and our industrial base to a

47:58.798 --> 48:02.219
wartime footing . Building for victory ,

48:02.870 --> 48:06.399
should our adversaries . F A FO .

48:09.370 --> 48:11.679
That's why today at my direction , the

48:11.679 --> 48:13.846
Department of War is delivering a plan

48:13.846 --> 48:15.919
to streamline test and evaluation

48:15.919 --> 48:18.439
requirements . Testing early and often

48:18.439 --> 48:20.399
is essential at certain stages of

48:20.399 --> 48:22.566
development , but testing for the sake

48:22.566 --> 48:25.479
of testing inhibits progress and delays

48:25.479 --> 48:28.080
delivery . We will shine a light on

48:28.080 --> 48:30.191
performance standards as well , which

48:30.191 --> 48:32.191
is why today at my direction we are

48:32.191 --> 48:34.191
mandating portfolio scorecards with

48:34.191 --> 48:36.302
primary performance measures focusing

48:36.302 --> 48:38.590
on what truly matters . The time it

48:38.590 --> 48:40.949
takes to put weapons in the hands of

48:40.949 --> 48:43.750
our men and women who use it if and

48:43.750 --> 48:47.100
when necessary . We'll also continue to

48:47.100 --> 48:49.211
focus on operational availability and

48:49.211 --> 48:51.433
mission capability rates of our current

48:51.433 --> 48:53.489
weapon systems . Far too many of our

48:53.489 --> 48:55.433
systems are not available to fight

48:55.433 --> 48:57.580
right now as they languish in depots

48:57.580 --> 48:59.247
and shipyards for repairs and

48:59.247 --> 49:01.620
maintenance or wait years for parts in

49:01.620 --> 49:03.780
the prime contractor to repair the

49:03.780 --> 49:06.750
system . We will maximize the number of

49:06.750 --> 49:08.917
weapons systems that are available for

49:08.917 --> 49:10.972
conflict . The faster we can deliver

49:10.972 --> 49:13.389
modern weapon systems , the faster we

49:13.389 --> 49:16.469
can retire decades old legacy systems .

49:17.399 --> 49:19.510
We will tailor other measures to each

49:19.510 --> 49:21.949
portfolio's specific needs . No hiding ,

49:22.030 --> 49:25.010
no excuses . Results will be clear and

49:25.010 --> 49:27.010
drive improvement , and everyone is

49:27.010 --> 49:29.679
responsible for raising opportunities

49:29.929 --> 49:33.709
for improvement . Speed and volume

49:33.979 --> 49:37.100
will rule . We will foster competition ,

49:37.189 --> 49:38.967
embrace modularity , and pursue

49:38.967 --> 49:41.219
multi-source procurements at every

49:41.219 --> 49:43.459
opportunity , moving fast to contract ,

49:43.629 --> 49:45.949
test , scale , and deploy when a

49:45.949 --> 49:49.919
solution is clear . We will strive to

49:49.919 --> 49:52.030
maintain at least 2 qualified sources

49:52.030 --> 49:54.199
for critical program components . We

49:54.199 --> 49:56.255
will minimize getting ourselves into

49:56.255 --> 49:57.977
single source situations where

49:57.977 --> 50:00.143
contractors have monopoly power over a

50:00.143 --> 50:02.889
key war fighting capability . We will

50:02.889 --> 50:05.056
enable third party integration without

50:05.056 --> 50:08.409
prime contractor bottlenecks . Success

50:08.409 --> 50:10.353
will be measured by the ability of

50:10.353 --> 50:12.379
qualified vendors to independently

50:12.379 --> 50:14.860
develop , test , and integrate replace

50:14.860 --> 50:17.419
me , replacement modules at the

50:17.419 --> 50:19.530
component level throughout the system

50:20.020 --> 50:23.389
life cycle . There's no more

50:23.389 --> 50:26.320
complacency and no more monopolies . To

50:26.320 --> 50:28.360
make competition easier , we will

50:28.360 --> 50:31.040
increase incentives for component level

50:31.040 --> 50:33.330
competition . This is about more than

50:33.330 --> 50:35.441
optics . It's about delivering better

50:35.441 --> 50:37.919
components at lower cost . Multi-track

50:37.919 --> 50:40.449
acquisition is the future . Now , I'm

50:40.449 --> 50:42.671
not talking about two sources that were

50:42.671 --> 50:44.893
bought out by the same prime to get the

50:44.893 --> 50:47.830
illusion of choice . We're talking

50:47.830 --> 50:50.669
about meaningful choice , where quality

50:50.669 --> 50:52.830
and speed matter and where prices go

50:52.830 --> 50:56.360
down . Moreover , today at my

50:56.360 --> 50:58.360
direction , commercial products and

50:58.360 --> 51:00.527
offerings will be the default policy .

51:01.459 --> 51:03.403
We will enhance the presumption of

51:03.403 --> 51:06.419
commerciality . Within 90 days , we

51:06.419 --> 51:08.363
will issue guidance that demands a

51:08.363 --> 51:10.197
commercial first and alternative

51:10.197 --> 51:13.129
proposals policy to enhance flexibility .

51:14.179 --> 51:16.419
We will harness more of America's

51:16.419 --> 51:18.419
innovative companies to focus their

51:18.419 --> 51:20.489
talent and their technologies on our

51:20.489 --> 51:22.600
toughest national security problems .

51:22.600 --> 51:24.711
We're leaving too much on the cutting

51:24.711 --> 51:26.767
room floor . We want them to deliver

51:26.767 --> 51:28.933
novel solutions to our war fighters so

51:28.933 --> 51:31.156
that they can , we have an overwhelming

51:31.156 --> 51:33.267
advantage in future wars . Our goal ,

51:33.267 --> 51:35.433
as you know , is to never enter a fair

51:35.433 --> 51:37.709
fight . The bottom line is we're buying

51:37.709 --> 51:39.989
solutions , not specifications . We

51:39.989 --> 51:42.659
will evaluate results , not paperwork .

51:43.229 --> 51:45.469
If a better solution exists outside the

51:45.469 --> 51:47.636
traditional channels , we will find it

51:47.636 --> 51:49.889
and we will acquire it . And that is

51:49.889 --> 51:51.833
why as part of this transformation

51:51.833 --> 51:53.729
today at my direction , we are

51:53.729 --> 51:56.659
establishing the wartime production

51:56.659 --> 52:00.159
unit or WPU at the Department of War .

52:01.260 --> 52:03.427
This new unit has been redesigned from

52:03.427 --> 52:05.219
the existing joint production

52:05.219 --> 52:07.979
acceleration cell and will focus on

52:07.979 --> 52:10.459
transforming how we accelerate the

52:10.459 --> 52:12.515
delivery of critical capabilities to

52:12.515 --> 52:15.050
our war fighters . We will accomplish

52:15.050 --> 52:17.340
this by leveraging a dedicated deal

52:17.340 --> 52:20.040
team empowered to forging

52:20.040 --> 52:21.984
groundbreaking business deals that

52:21.984 --> 52:24.040
revolutionized production capacity .

52:24.040 --> 52:26.489
And completely overhaul contract

52:26.489 --> 52:29.560
execution . The deal team will

52:29.560 --> 52:31.919
reinforce our contracting workforce ,

52:32.250 --> 52:34.083
enabling them to work with newly

52:34.083 --> 52:36.199
empowered PAEs to negotiate with

52:36.199 --> 52:38.439
vendors based on a broader perspective

52:38.719 --> 52:40.886
of the vendor's total book of business

52:40.886 --> 52:42.775
within the department rather than

52:42.775 --> 52:44.941
through the lens of a single program ,

52:44.941 --> 52:47.850
creating leverage and incentives not

52:47.850 --> 52:50.850
previously applied . This deal team

52:50.850 --> 52:52.906
will craft financial incentives that

52:52.906 --> 52:54.628
drive contractor performance ,

52:54.628 --> 52:56.810
demanding on-time delivery of the

52:56.810 --> 52:58.866
weapons our war fighters desperately

52:58.866 --> 53:01.570
need . It's about faster negotiations ,

53:01.770 --> 53:03.826
better results , and a commitment to

53:03.826 --> 53:05.937
complete transparency and cooperation

53:06.169 --> 53:08.391
between the government and our industry

53:08.391 --> 53:11.189
partners . The wartime production unit

53:11.189 --> 53:13.860
will manage and execute direct support

53:13.860 --> 53:16.120
for our top acquisition production

53:16.120 --> 53:18.510
priorities . To ensure that we have the

53:18.510 --> 53:21.739
best minds in the business . We will

53:21.739 --> 53:23.961
bring in a wide variety of the nation's

53:23.961 --> 53:26.350
most talented experts to advise on

53:26.350 --> 53:29.590
industrial production optimization . We

53:29.590 --> 53:31.701
have already been doing this . We are

53:31.701 --> 53:33.701
doing it , and it's been led by the

53:33.701 --> 53:36.260
deputy secretary of war and the results

53:36.260 --> 53:38.427
thus far have been fantastic . We plan

53:38.427 --> 53:41.820
to scale it and scale it quickly . Many

53:41.820 --> 53:44.042
talented talented operators are already

53:44.042 --> 53:46.050
on board at the Pentagon . Former

53:46.050 --> 53:48.272
industry executives who are serving our

53:48.272 --> 53:50.494
country to drive success . We call them

53:50.494 --> 53:52.717
business operators for national defense

53:52.717 --> 53:54.828
or bond . I encourage those listening

53:54.828 --> 53:56.994
who are interested to reach out if you

53:56.994 --> 53:59.050
have the skills to contribute to the

53:59.050 --> 54:00.939
defense industrial renewal we are

54:00.939 --> 54:04.219
embarking on . This may seem like an

54:04.219 --> 54:06.899
obvious change , but it's new for our

54:06.899 --> 54:08.899
department to empower world-class

54:08.899 --> 54:11.330
operators to help drive necessary

54:11.330 --> 54:13.620
change from the Pentagon to industry .

54:15.060 --> 54:17.338
This initiative is not a pilot program .

54:17.360 --> 54:19.527
It's a fundamental shift in how we arm

54:19.527 --> 54:22.719
our war fighters . We are committed to

54:22.719 --> 54:25.560
dominating the modern battlefield . And

54:25.560 --> 54:27.671
that domination starts with a wartime

54:27.671 --> 54:30.120
industrial base focused on execution .

54:31.000 --> 54:33.409
And operational success .

54:36.120 --> 54:38.120
As you know , everyone in this room

54:38.120 --> 54:40.489
knows , building the arsenal of freedom

54:40.489 --> 54:43.290
will not happen overnight . And it will

54:43.290 --> 54:45.290
require considerable investment and

54:45.290 --> 54:47.234
resolve to expand the department's

54:47.234 --> 54:49.457
buying power . As you're all familiar ,

54:49.457 --> 54:51.879
the cycle of annual budgets limits the

54:51.879 --> 54:53.879
department from providing long-term

54:53.879 --> 54:56.046
demand signals to industry . However ,

54:56.060 --> 54:58.060
there's a world of opportunity with

54:58.060 --> 55:00.116
alternative investment strategies to

55:00.116 --> 55:02.780
expand our industrial base . And that

55:02.780 --> 55:04.739
is why today at my direction , the

55:04.739 --> 55:06.683
Department of War will publish new

55:06.683 --> 55:08.906
guidance to ensure that there are clear

55:08.906 --> 55:11.017
incentives for contractors to deliver

55:11.017 --> 55:13.183
on time , increase production capacity

55:13.183 --> 55:15.239
and have the demand signal needed to

55:15.239 --> 55:18.340
attract private investment . We will

55:18.340 --> 55:20.229
encourage and accelerate creative

55:20.229 --> 55:22.284
strategies in investment contracting

55:22.284 --> 55:24.396
and procurement to scale production ,

55:24.396 --> 55:26.618
expanding the DIB with new entrants and

55:26.618 --> 55:28.729
incentivizing companies to spend more

55:28.729 --> 55:30.673
of their own capital to revitalize

55:30.673 --> 55:33.189
ourIB and supply our warriors . We will

55:33.189 --> 55:35.300
drive strategies that create stable ,

55:35.629 --> 55:37.860
clear and consistent demand signals for

55:37.860 --> 55:40.082
industry to invest and scale production

55:40.082 --> 55:43.280
of lethal capabilities . This includes

55:43.280 --> 55:45.224
partnering with Congress to secure

55:45.224 --> 55:46.780
legislative authorities and

55:46.780 --> 55:48.891
appropriations , flexible flexibility

55:48.891 --> 55:50.947
needed to make the department a more

55:50.947 --> 55:52.891
predictable partner for industry .

55:52.959 --> 55:54.737
Enhanced multi-year procurement

55:54.737 --> 55:56.626
authorities , guaranteed purchase

55:56.626 --> 55:58.919
orders , and stable funding mechanisms

55:58.919 --> 56:00.697
that will be the foundation for

56:00.697 --> 56:03.239
unleashing unprecedented private sector

56:03.239 --> 56:05.159
investment in defense production

56:05.159 --> 56:08.590
capacity . This will build on the great

56:08.590 --> 56:11.120
work already done to improve the PPB&E

56:11.120 --> 56:14.399
process . And how Cape and Comptroller

56:14.399 --> 56:18.149
interact with Congress . We

56:18.149 --> 56:20.949
commit to doing our part , but industry

56:20.949 --> 56:22.893
also needs to be willing to invest

56:22.893 --> 56:25.116
their own dollars to meet the long-term

56:25.116 --> 56:27.110
demand signals provided to them .

56:27.989 --> 56:30.260
Industry must use capital expenditures

56:30.260 --> 56:32.739
to upgrade facilities , upskill their

56:32.739 --> 56:35.810
workforce , and expand capacity .

56:36.840 --> 56:40.399
If they don't , we are prepared . To

56:40.399 --> 56:43.030
fully employ and leverage the many

56:43.030 --> 56:45.141
authorities provided to the president

56:45.560 --> 56:47.616
which ensure that the department can

56:47.616 --> 56:50.550
secure from industry anything and

56:50.550 --> 56:52.989
everything that is required to fight

56:53.120 --> 56:57.050
and win our nation's wars . Our

56:57.050 --> 56:59.719
national security comes first .

57:00.879 --> 57:03.310
You , our friends among industry , must

57:03.310 --> 57:05.477
realize that we appreciate your need .

57:06.129 --> 57:08.570
To make a good margin and a profit as

57:08.570 --> 57:11.290
capitalists . But you must invest in

57:11.290 --> 57:13.068
yourselves rather than saddling

57:13.068 --> 57:16.280
taxpayers with every cost . For those

57:16.280 --> 57:18.502
who come along with us , this will be a

57:18.502 --> 57:21.000
great growth opportunity and you will

57:21.000 --> 57:24.280
benefit . To industry not willing to

57:24.280 --> 57:26.391
assume risk in order to work with the

57:26.391 --> 57:28.613
military ? We may have to wish you well

57:28.613 --> 57:31.179
in your future endeavors . Which would

57:31.179 --> 57:33.123
probably be outside the Pentagon .

57:33.939 --> 57:36.161
We're going to make defense contracting

57:36.161 --> 57:38.272
competitive again . And those who are

57:38.272 --> 57:40.439
too comfortable with the status quo to

57:40.439 --> 57:42.550
compete are not going to be welcome .

57:42.790 --> 57:44.846
To the majority of American industry

57:44.846 --> 57:47.070
who enjoy steady demand signals , to

57:47.070 --> 57:49.237
the major manufacturers who have built

57:49.237 --> 57:50.959
our country and our incredible

57:50.959 --> 57:53.181
exquisite systems , to those of you who

57:53.181 --> 57:55.348
are not in this room today because you

57:55.348 --> 57:57.403
don't currently do business with the

57:57.403 --> 57:59.570
Pentagon , the Department of War wants

57:59.570 --> 58:02.629
any and all of you to be a part of our

58:02.629 --> 58:05.699
industrial base . We want all comers

58:06.030 --> 58:08.363
who are prepared to go at wartime speed .

58:09.239 --> 58:11.017
We're committed to being better

58:11.017 --> 58:12.850
customers , and this acquisition

58:12.850 --> 58:14.628
transformation demonstrates our

58:14.628 --> 58:16.689
commitment . The deputy secretary of

58:16.689 --> 58:18.856
war has already reached out to many of

58:18.856 --> 58:21.120
you to gauge your interest . We , we ,

58:21.370 --> 58:23.481
I've talked to a lot of folks . We've

58:23.481 --> 58:25.537
never had a deputy like this man who

58:25.537 --> 58:27.314
has the business background and

58:27.314 --> 58:29.148
experience that he has and we're

58:29.148 --> 58:31.092
leveraging the hell out of it . On

58:31.092 --> 58:32.926
behalf of the department and our

58:32.926 --> 58:35.148
country , I encourage you to answer his

58:35.148 --> 58:37.037
call when it comes . None of this

58:37.037 --> 58:39.259
transformative effort would be possible

58:39.259 --> 58:41.092
without a massive culture change

58:41.092 --> 58:43.148
amongst our acquisitions workforce .

58:44.560 --> 58:47.300
The defense acquisition University is

58:47.300 --> 58:50.389
obsolete . It must become an incubator

58:50.389 --> 58:52.810
of acquisition excellence and urgency .

58:53.060 --> 58:55.080
That is why today at my direction ,

58:55.139 --> 58:57.306
we're immediately transforming it into

58:57.306 --> 58:59.699
a competency-based educational

58:59.699 --> 59:01.588
institution named the Warfighting

59:01.588 --> 59:04.469
Acquisition University . It will be the

59:04.469 --> 59:06.629
launching pad of our acquisition

59:06.629 --> 59:09.060
workforce imbued with a transformative

59:09.629 --> 59:11.949
and warrior mindset . The same warrior

59:11.949 --> 59:14.979
ethos I invoked in Quantico must extend

59:14.979 --> 59:17.750
across the acquisition's ecosystem to

59:17.750 --> 59:20.083
contracting officers , program managers ,

59:20.083 --> 59:22.139
systems engineers , and requirements

59:22.139 --> 59:24.750
developers . The patriotic men and

59:24.750 --> 59:27.439
women . In this audience , who

59:27.439 --> 59:29.840
architect , develop and procure the

59:29.840 --> 59:31.919
world's most lethal and capable

59:31.919 --> 59:34.229
technology must be unleashed to deliver

59:34.639 --> 59:36.750
the arsenal of freedom faster than we

59:36.750 --> 59:40.080
ever have before . The warfighting

59:40.080 --> 59:42.360
acquisition University will prioritize

59:42.360 --> 59:44.600
cohort-based programs combining

59:44.600 --> 59:46.822
experimental and project-based learning

59:46.822 --> 59:49.520
on real portfolio challenges , industry

59:49.520 --> 59:52.429
government exchanges . And case method

59:52.429 --> 59:54.373
instruction that develops critical

59:54.373 --> 59:56.596
thinking and rapid decision making . No

59:56.596 --> 59:58.707
more sitting in classrooms , learning

59:58.707 --> 01:00:01.500
about failed processes of the past .

01:00:03.209 --> 01:00:05.689
Our acquisition system is only as good

01:00:05.689 --> 01:00:09.370
as our workforce . Trust me , I

01:00:09.370 --> 01:00:11.203
understand the challenges of the

01:00:11.203 --> 01:00:13.250
workforce . Portfolios and programs

01:00:13.250 --> 01:00:15.370
can't succeed when leaders rotate out

01:00:15.370 --> 01:00:17.889
every 2 years . Greater stability

01:00:17.889 --> 01:00:20.222
ensures deeper insights into technology ,

01:00:20.222 --> 01:00:21.945
relationships with companies ,

01:00:21.945 --> 01:00:23.500
personnel development , and

01:00:23.500 --> 01:00:25.556
accountability to deliver outcomes .

01:00:25.556 --> 01:00:27.667
And that is why today at my direction

01:00:27.667 --> 01:00:29.778
the department is developing policies

01:00:29.778 --> 01:00:31.889
to create blended career paths of key

01:00:31.889 --> 01:00:33.949
portfolio and program officials

01:00:34.239 --> 01:00:36.239
extending their tenure by requiring

01:00:36.239 --> 01:00:39.000
4-year minimum terms with 2-year

01:00:39.000 --> 01:00:42.000
extensions and tying their incentives

01:00:42.000 --> 01:00:44.760
to competition . Capability delivery

01:00:44.760 --> 01:00:48.080
time and mission outcomes . This will

01:00:48.080 --> 01:00:50.136
ensure accountability for strategies

01:00:50.136 --> 01:00:51.802
and decisions with continuous

01:00:51.802 --> 01:00:54.919
improvement throughout execution phases .

01:00:56.760 --> 01:00:58.927
Again , we're not just making tweaks .

01:00:58.927 --> 01:01:01.149
We're fundamentally changing the way we

01:01:01.149 --> 01:01:03.719
do business . These are not just words .

01:01:04.080 --> 01:01:06.247
We've already done a great deal of the

01:01:06.247 --> 01:01:08.719
work . In fact , the new acquisition

01:01:08.719 --> 01:01:11.669
transformation strategy . is being

01:01:11.669 --> 01:01:14.030
released today and for many of you in

01:01:14.030 --> 01:01:16.590
this room , it's hitting your inboxes

01:01:16.590 --> 01:01:18.909
right now , as are all of the

01:01:18.909 --> 01:01:21.187
directives that we're announcing today .

01:01:21.187 --> 01:01:23.187
You will have them before you leave

01:01:23.187 --> 01:01:25.076
this room . It's a great read . I

01:01:25.076 --> 01:01:28.850
encourage you to check it out . I read

01:01:28.850 --> 01:01:30.739
more than the executive summary .

01:01:32.790 --> 01:01:36.020
Speed to delivery is now our organizing

01:01:36.020 --> 01:01:39.129
principle . It is the decisive factor

01:01:39.129 --> 01:01:40.796
in maintaining deterrence and

01:01:40.796 --> 01:01:42.620
warfighting advantage . If our

01:01:42.620 --> 01:01:44.979
warfighters die or our country loses

01:01:44.979 --> 01:01:47.035
because we took too long to get them

01:01:47.035 --> 01:01:50.409
what we needed , we have failed . It is

01:01:50.600 --> 01:01:54.040
that simple . That is the

01:01:54.040 --> 01:01:56.800
business we are in . And we talked to a

01:01:56.800 --> 01:01:58.856
lot of people that have been in this

01:01:58.856 --> 01:02:01.022
building a long time . The , the , the

01:02:01.022 --> 01:02:03.159
sense of that urgency has slipped too

01:02:03.159 --> 01:02:05.610
much . And when you look at what we

01:02:05.610 --> 01:02:07.443
face , we have to recapture it .

01:02:08.449 --> 01:02:10.879
Finally , foreign military sales .

01:02:12.020 --> 01:02:13.687
Transforming requirements and

01:02:13.687 --> 01:02:16.219
acquisition alone , not enough . We

01:02:16.219 --> 01:02:17.886
must also improve the way our

01:02:17.886 --> 01:02:19.830
department and the industrial base

01:02:19.830 --> 01:02:22.052
supports weapon sales to our allies and

01:02:22.052 --> 01:02:24.679
our partners . This is a top priority

01:02:24.679 --> 01:02:26.457
for my team in partnership with

01:02:26.457 --> 01:02:28.623
Secretary Rubio and Secretary Lutman .

01:02:29.129 --> 01:02:31.073
Thanks to the efforts of President

01:02:31.073 --> 01:02:33.073
Trump , we have reached an all-time

01:02:33.073 --> 01:02:35.129
high in our foreign military sales .

01:02:35.370 --> 01:02:37.540
President Trump is securing deal after

01:02:37.540 --> 01:02:40.229
deal to bring cold hard cash to

01:02:40.229 --> 01:02:42.300
American manufacturers , but our

01:02:42.300 --> 01:02:44.459
processes are too slow and our

01:02:44.459 --> 01:02:46.939
industrial base is too inefficient to

01:02:46.939 --> 01:02:49.050
keep up and deliver on time to our

01:02:49.050 --> 01:02:51.500
allies and partners . Believe me , I

01:02:51.500 --> 01:02:53.770
hear about this on every foreign trip

01:02:53.770 --> 01:02:55.929
and every conversation I have with

01:02:55.929 --> 01:02:58.060
every president , prime minister and

01:02:58.060 --> 01:03:00.530
minister of defense is what is wrong

01:03:00.530 --> 01:03:02.659
with your foreign military sales ? We

01:03:02.659 --> 01:03:06.590
ordered it in 2014 . It's 2025 and

01:03:06.590 --> 01:03:09.889
it's scheduled to deliver in 2032 . And

01:03:09.939 --> 01:03:12.050
I sit there going , I don't know what

01:03:12.050 --> 01:03:14.669
the hell . But we didn't , we didn't

01:03:14.669 --> 01:03:17.409
break it , but we're gonna fix it . Not

01:03:17.409 --> 01:03:19.409
only are foreign military sales and

01:03:19.409 --> 01:03:21.520
defense commercial sales important to

01:03:21.520 --> 01:03:23.465
our American industrial base , but

01:03:23.465 --> 01:03:25.631
they're also critical to our strategic

01:03:25.631 --> 01:03:27.853
vision on the global landscape . Burden

01:03:27.853 --> 01:03:29.687
sharing has been a key pillar of

01:03:29.687 --> 01:03:31.909
President Trump's and the Department of

01:03:31.909 --> 01:03:34.131
War's agenda , and to accomplish this ,

01:03:34.131 --> 01:03:36.242
our allies and partners must be armed

01:03:36.242 --> 01:03:38.298
with the best and most interoperable

01:03:38.298 --> 01:03:40.465
weapons systems in the world . Foreign

01:03:40.465 --> 01:03:42.687
military sales allow our warfighters to

01:03:42.687 --> 01:03:44.687
stand shoulder to shoulder with our

01:03:44.687 --> 01:03:46.959
allies to face dangerous global

01:03:46.959 --> 01:03:49.409
challenges . We're solving it .

01:03:49.939 --> 01:03:51.717
Hundreds of billions of dollars

01:03:51.717 --> 01:03:53.883
annually in foreign military sales and

01:03:53.883 --> 01:03:55.495
defense commercial sales for

01:03:55.495 --> 01:03:57.439
American-made weapons systems will

01:03:57.439 --> 01:03:59.899
provide our companies with the fuel to

01:03:59.899 --> 01:04:01.955
invest in new manufacturing plants ,

01:04:01.955 --> 01:04:04.121
hire engineers , and source components

01:04:04.121 --> 01:04:05.899
and materials from thousands of

01:04:05.899 --> 01:04:09.080
subcontractors and suppliers . More

01:04:09.080 --> 01:04:11.159
effective FMS and DCS will help

01:04:11.159 --> 01:04:13.215
revitalize the industrial base , you

01:04:13.215 --> 01:04:15.239
know this , create tens , if not

01:04:15.239 --> 01:04:17.689
hundreds of thousands of American jobs ,

01:04:18.080 --> 01:04:20.247
lower the cost of deterrence to the US

01:04:20.247 --> 01:04:22.800
taxpayer , and accelerate capability

01:04:22.800 --> 01:04:25.110
delivery to our partners that want to

01:04:25.110 --> 01:04:27.277
buy American made . They don't want to

01:04:27.277 --> 01:04:29.332
buy Russian , they don't want to buy

01:04:29.332 --> 01:04:29.310
Italian , they don't want to buy French .

01:04:29.600 --> 01:04:31.656
They want to buy American , but they

01:04:31.656 --> 01:04:33.878
don't want to wait a decade for it . So

01:04:33.878 --> 01:04:35.959
what's been the issue ? Red tape ,

01:04:36.040 --> 01:04:38.262
inefficiency , and a lack of investment

01:04:38.262 --> 01:04:40.373
in our defense industrial base . Well

01:04:40.373 --> 01:04:42.540
we're sitting on a massive opportunity

01:04:42.540 --> 01:04:44.596
to supercharge our defense sales and

01:04:44.596 --> 01:04:46.484
industrial might to add the surge

01:04:46.484 --> 01:04:48.707
capacity we need to increase volume for

01:04:48.707 --> 01:04:50.596
American stocks . The key lies in

01:04:50.596 --> 01:04:52.818
cracking the code on process efficiency

01:04:52.818 --> 01:04:55.320
and aligning sales with our efforts to

01:04:55.320 --> 01:04:57.598
revitalize the defense industrial base .

01:04:58.489 --> 01:05:00.600
We need to eliminate the backlogs and

01:05:00.600 --> 01:05:02.711
strengthen the critical supply chains

01:05:02.711 --> 01:05:04.767
that contribute to delivery delays .

01:05:04.800 --> 01:05:06.967
When we promise to supply our partners

01:05:06.967 --> 01:05:09.022
with critical capabilities , we must

01:05:09.022 --> 01:05:11.250
deliver on time every time . Our

01:05:11.250 --> 01:05:13.417
success ensures their ability to fight

01:05:13.417 --> 01:05:15.750
and win , and we can and must do better .

01:05:16.540 --> 01:05:18.762
We're taking decisive action to resolve

01:05:18.762 --> 01:05:20.984
it . We've worked to bake exportability

01:05:20.984 --> 01:05:23.040
into the acquisition life cycle from

01:05:23.040 --> 01:05:24.969
the very beginning . And we're

01:05:24.969 --> 01:05:26.913
investing heavily in making that a

01:05:26.913 --> 01:05:28.929
reality . We're modernizing our IT

01:05:28.929 --> 01:05:30.651
systems and establishing clear

01:05:30.651 --> 01:05:32.762
performance metrics to track progress

01:05:32.762 --> 01:05:36.179
and identify bottlenecks . At the

01:05:36.179 --> 01:05:37.957
operational level , some of our

01:05:37.957 --> 01:05:39.735
combatant commands I've seen it

01:05:39.735 --> 01:05:41.957
firsthand , have similarly begun moving

01:05:41.957 --> 01:05:43.568
out to remove FMS processing

01:05:43.568 --> 01:05:45.790
efficiencies at the tip of the spear in

01:05:45.790 --> 01:05:49.590
theater . But the next step

01:05:50.219 --> 01:05:52.441
is a crucial one , and that's why today

01:05:52.441 --> 01:05:54.441
at my direction , I'm directing the

01:05:54.441 --> 01:05:56.899
realignment of operational control of

01:05:56.899 --> 01:05:58.899
Defense Security Cooperation Agency

01:05:58.899 --> 01:06:01.540
DISCA and the Defense Technology

01:06:01.540 --> 01:06:05.020
Security Administration DTSA , removing

01:06:05.020 --> 01:06:07.187
it from under the Secretary of War for

01:06:07.187 --> 01:06:09.469
Policy to the Undersecretary of war for

01:06:09.469 --> 01:06:12.060
acquisition and sustainment . So from

01:06:12.060 --> 01:06:15.790
policy to ANS . Now you might ask

01:06:15.790 --> 01:06:17.568
yourself , how does an internal

01:06:17.568 --> 01:06:19.623
department of war shift in reporting

01:06:19.623 --> 01:06:21.623
structures make any difference ? It

01:06:21.623 --> 01:06:23.846
makes a huge difference . In delivering

01:06:23.846 --> 01:06:25.901
defense articles and services to our

01:06:25.901 --> 01:06:27.957
allies and partners , it's a complex

01:06:27.957 --> 01:06:30.068
process and success demands a unified

01:06:30.068 --> 01:06:32.234
approach across the entire acquisition

01:06:32.234 --> 01:06:34.234
life cycle . From the first dollars

01:06:34.234 --> 01:06:36.290
invested in research and development

01:06:36.290 --> 01:06:38.290
all the way through maintenance and

01:06:38.290 --> 01:06:40.123
delivery of spare parts . When a

01:06:40.123 --> 01:06:41.957
foreign partner or ally needs to

01:06:41.957 --> 01:06:43.846
acquire a new capability from the

01:06:43.846 --> 01:06:46.012
United States , we need to ensure that

01:06:46.012 --> 01:06:47.957
the department's own processes are

01:06:47.957 --> 01:06:50.012
efficient , effective , and prime to

01:06:50.012 --> 01:06:52.123
rapidly review those capabilities for

01:06:52.123 --> 01:06:54.290
transfer or place them on contract and

01:06:54.290 --> 01:06:56.699
then delivered as quickly as possible

01:06:57.090 --> 01:07:00.330
without impeding deliveries to the US

01:07:00.330 --> 01:07:03.540
war fighter . By planning against a

01:07:03.540 --> 01:07:06.100
total aggregated picture of global

01:07:06.100 --> 01:07:08.260
demand against our industrial might ,

01:07:08.739 --> 01:07:10.879
we can achieve breakthrough results ,

01:07:11.179 --> 01:07:12.901
rapidly equipping our allies ,

01:07:13.060 --> 01:07:15.139
bolstering global stability , and

01:07:15.139 --> 01:07:17.340
projecting American strength . That's

01:07:17.340 --> 01:07:19.284
exactly what this realignment gets

01:07:19.284 --> 01:07:22.649
after . By aligning DSA and DTSA under

01:07:22.649 --> 01:07:25.219
ANS , we provide leadership focus and

01:07:25.219 --> 01:07:27.552
establish clear lines of accountability .

01:07:27.899 --> 01:07:30.010
We're better integrating FMS with our

01:07:30.010 --> 01:07:32.177
war fighter acquisition system and our

01:07:32.177 --> 01:07:34.288
defense industrial based activities .

01:07:34.288 --> 01:07:36.343
What you get is stronger cohesion of

01:07:36.343 --> 01:07:38.899
our acquisition , security cooperation ,

01:07:39.250 --> 01:07:42.600
and technology security enterprise . US

01:07:42.600 --> 01:07:44.656
operational and industrial readiness

01:07:44.656 --> 01:07:47.010
are maximized and interoperability with

01:07:47.010 --> 01:07:49.177
allies is increased . And if it's done

01:07:49.177 --> 01:07:51.066
well , continued year over year ,

01:07:51.066 --> 01:07:53.370
growth in sales of American-made

01:07:53.370 --> 01:07:56.570
systems will skyrocket . You should all

01:07:56.570 --> 01:08:00.010
love that . Starting today , we will

01:08:00.010 --> 01:08:02.232
now manage our defense sales enterprise

01:08:02.232 --> 01:08:04.288
with a single integrated vision from

01:08:04.288 --> 01:08:06.454
initial planning to contract execution

01:08:06.689 --> 01:08:09.550
to delivery . And it was staggering

01:08:09.550 --> 01:08:11.772
when we try to get our arms around just

01:08:11.772 --> 01:08:13.883
one particular system and who we were

01:08:13.883 --> 01:08:16.050
giving it to , how many we were giving

01:08:16.050 --> 01:08:18.161
it to them and when we were giving it

01:08:18.161 --> 01:08:20.328
to them . It was a multi-week exercise

01:08:20.328 --> 01:08:22.217
just to understand that sys not a

01:08:22.217 --> 01:08:24.430
complex system . That system , who it

01:08:24.430 --> 01:08:26.652
was going to , how long it would take ,

01:08:26.652 --> 01:08:28.874
how it traded off of ours , we had , we

01:08:28.874 --> 01:08:30.986
had no idea . So half of this is just

01:08:30.986 --> 01:08:33.152
totally understanding that process top

01:08:33.152 --> 01:08:35.152
to bottom . At the end of the day ,

01:08:35.152 --> 01:08:37.263
unifying defense sales under a single

01:08:37.263 --> 01:08:39.374
roof in the Defense Department of War

01:08:40.829 --> 01:08:42.996
ensures that we aren't making promises

01:08:42.996 --> 01:08:45.789
that we can't keep and that our allies

01:08:45.789 --> 01:08:48.011
receive the capabilities they need when

01:08:48.011 --> 01:08:50.219
they need them . But this is just the

01:08:50.219 --> 01:08:52.386
beginning of transforming our approach

01:08:52.386 --> 01:08:54.608
to defense sales . There's much more to

01:08:54.608 --> 01:08:56.938
come in the months ahead because this

01:08:56.938 --> 01:08:59.619
is about more than selling weapons .

01:08:59.979 --> 01:09:01.923
It's about building partnerships ,

01:09:01.923 --> 01:09:04.818
strengthening our industrial base , and

01:09:04.818 --> 01:09:06.874
ensuring that American made military

01:09:06.874 --> 01:09:09.338
equipment remains the gold standard for

01:09:09.338 --> 01:09:11.409
defense around the world .

01:09:13.839 --> 01:09:16.790
We believe that What we've announced

01:09:16.790 --> 01:09:19.589
today is a total transformation of how

01:09:19.589 --> 01:09:21.756
we do business at the War Department .

01:09:21.839 --> 01:09:25.040
Not simple reform , but a fundamental

01:09:25.040 --> 01:09:27.430
shift in how the War Department

01:09:27.430 --> 01:09:30.959
operates . This transformation is , as

01:09:30.959 --> 01:09:33.640
I stated earlier , a war of

01:09:33.640 --> 01:09:37.509
bureaucratic attrition . And it is one

01:09:37.509 --> 01:09:40.890
that we intend to win . This is not a

01:09:40.890 --> 01:09:43.720
speech . This is not a fire and forget .

01:09:44.049 --> 01:09:46.490
This is the beginning of an unrelenting

01:09:46.490 --> 01:09:49.129
onslaught to change the way we do

01:09:49.129 --> 01:09:51.169
business and to change the way the

01:09:51.169 --> 01:09:53.129
bureaucracy responds . We will not

01:09:53.129 --> 01:09:55.185
relent and we probably won't sleep .

01:09:55.959 --> 01:09:58.270
Because we believe it's that important

01:09:58.520 --> 01:10:00.520
for our war fighters in the field .

01:10:01.500 --> 01:10:03.500
We're moving away from a culture of

01:10:03.500 --> 01:10:05.389
bureaucracy and risk aversion and

01:10:05.389 --> 01:10:07.222
embracing a culture of agility ,

01:10:07.222 --> 01:10:09.310
innovation , and results . We will

01:10:09.310 --> 01:10:11.549
revitalize our defense industrial base

01:10:11.549 --> 01:10:14.029
by changing how we do business with our

01:10:14.029 --> 01:10:16.251
current defense contractors , fostering

01:10:16.251 --> 01:10:18.307
competition and embracing commercial

01:10:18.307 --> 01:10:20.362
solutions . By the way , some of our

01:10:20.362 --> 01:10:22.585
services have already done . Great work

01:10:22.585 --> 01:10:25.009
in these spaces . So this is not to say

01:10:25.009 --> 01:10:27.370
there hasn't been a running start with

01:10:27.370 --> 01:10:29.703
some of our services on this and I want ,

01:10:29.703 --> 01:10:31.759
I want to acknowledge that . This is

01:10:31.759 --> 01:10:33.759
building on top of that , frankly ,

01:10:33.759 --> 01:10:35.814
taking some of those lessons learned

01:10:35.814 --> 01:10:37.981
and accelerating into what we're doing

01:10:37.981 --> 01:10:40.037
department wide . We will reform our

01:10:40.037 --> 01:10:42.259
requirements process to ensure that our

01:10:42.259 --> 01:10:44.370
warfighters get the capabilities they

01:10:44.370 --> 01:10:46.537
need when they need them . And they're

01:10:46.537 --> 01:10:48.814
not bogged down by bureaucratic delays .

01:10:48.814 --> 01:10:48.500
We'll modernize our acquisitions

01:10:48.500 --> 01:10:50.799
process to shorten timelines , send

01:10:50.799 --> 01:10:53.049
consistent demand signals , and empower

01:10:53.049 --> 01:10:54.993
our acquisitions officials to make

01:10:54.993 --> 01:10:57.640
swift , informed decisions , not

01:10:57.640 --> 01:10:59.109
handcuffed by the process

01:10:59.520 --> 01:11:01.464
accountability to make decisions ,

01:11:01.464 --> 01:11:03.409
slashing the barriers to entry for

01:11:03.409 --> 01:11:05.409
companies in the defense industrial

01:11:05.409 --> 01:11:07.464
base to encourage rapid innovation ,

01:11:07.464 --> 01:11:09.799
competition , and expansion . And we're

01:11:09.799 --> 01:11:12.021
slashing the barriers to innovation for

01:11:12.021 --> 01:11:14.319
companies already in the dib to empower

01:11:14.319 --> 01:11:16.430
them to grow within the Pentagon .

01:11:17.379 --> 01:11:19.601
We're making it easier to do business ,

01:11:19.689 --> 01:11:21.856
not just for defense contractors , but

01:11:21.856 --> 01:11:24.569
for commercial companies . We're

01:11:24.569 --> 01:11:26.402
leveraging the untapped American

01:11:26.402 --> 01:11:28.402
manufacturing base to new heights .

01:11:29.200 --> 01:11:31.959
Small , mid , and large businesses

01:11:31.959 --> 01:11:35.189
alike all welcome . And we're

01:11:35.189 --> 01:11:37.356
instilling a culture of accountability

01:11:37.356 --> 01:11:39.411
tied to results , not process . More

01:11:39.411 --> 01:11:41.245
jobs , faster delivery of lethal

01:11:41.245 --> 01:11:43.356
capabilities , and an industrial base

01:11:43.356 --> 01:11:45.819
that can surge if called upon . It's

01:11:45.819 --> 01:11:48.339
not just a pipe dream , we're driving

01:11:48.339 --> 01:11:50.850
toward that pace . We won't do

01:11:50.850 --> 01:11:53.089
incremental improvements . This is

01:11:53.089 --> 01:11:55.330
about fundamentally reshaping our

01:11:55.330 --> 01:11:57.490
approach from concept to delivery .

01:11:58.439 --> 01:12:00.606
We're injecting speed and agility into

01:12:00.606 --> 01:12:02.550
every facet , ensuring that we can

01:12:02.550 --> 01:12:04.606
outpace our adversaries and maintain

01:12:04.606 --> 01:12:06.717
our technological edge in places like

01:12:06.717 --> 01:12:08.950
AI , cyber and space . It's not about

01:12:08.950 --> 01:12:11.006
building a military that is not only

01:12:11.006 --> 01:12:13.228
strong , but it's how to be adaptable ,

01:12:13.228 --> 01:12:15.006
resilient and ready to meet any

01:12:15.006 --> 01:12:17.069
challenge with a magazine depth that

01:12:17.069 --> 01:12:19.750
makes sure that any fight we choose or

01:12:19.750 --> 01:12:22.069
that which is thrust upon us is an

01:12:22.069 --> 01:12:24.013
unfair battle . So much of this is

01:12:24.013 --> 01:12:26.479
about magazine depth . Not just about

01:12:26.479 --> 01:12:28.646
what we can make , it's how much of it

01:12:28.646 --> 01:12:30.646
can we make and how quickly and how

01:12:30.646 --> 01:12:33.330
quickly can we deliver it . We're not

01:12:33.330 --> 01:12:35.663
just building a stronger military today ,

01:12:35.663 --> 01:12:37.497
we are laying the foundation for

01:12:37.497 --> 01:12:39.649
continued dominance in the decades to

01:12:39.649 --> 01:12:43.270
come . We intend to build a dynamic and

01:12:43.270 --> 01:12:45.270
responsive system that can adapt to

01:12:45.270 --> 01:12:47.159
emerging threats and leverage new

01:12:47.159 --> 01:12:49.259
technologies . We're ensuring that

01:12:49.259 --> 01:12:51.426
future generations of warfighters have

01:12:51.426 --> 01:12:53.660
the tools and the capabilities to

01:12:53.660 --> 01:12:57.040
defend our nation . The War Department

01:12:57.529 --> 01:13:00.330
will be ready . When the time comes .

01:13:01.359 --> 01:13:04.500
We will have and we will be the arsenal

01:13:04.500 --> 01:13:06.810
for freedom . The world is watching .

01:13:07.220 --> 01:13:09.164
Our adversaries are watching . Our

01:13:09.164 --> 01:13:11.387
allies are watching . We must show them

01:13:11.387 --> 01:13:13.553
that America is back stronger and more

01:13:13.553 --> 01:13:16.009
determined than ever to defend our

01:13:16.009 --> 01:13:19.060
interests and uphold freedom . Our war

01:13:19.060 --> 01:13:21.060
fighters are depending on us and we

01:13:21.620 --> 01:13:25.419
cannot fail . Let there be no

01:13:25.419 --> 01:13:27.475
question , the 2.1 million Americans

01:13:27.475 --> 01:13:29.580
who wear our nation's cloth , active

01:13:29.580 --> 01:13:31.802
guard and reserve , and the hundreds of

01:13:31.802 --> 01:13:33.913
thousands who support them in suits .

01:13:34.200 --> 01:13:37.140
In coveralls , in welding helmets .

01:13:37.859 --> 01:13:40.470
They comprise the finest military in

01:13:40.470 --> 01:13:43.259
the history of the world , no doubt .

01:13:44.060 --> 01:13:45.949
They stand ready to face down any

01:13:45.949 --> 01:13:48.060
threat anytime , anywhere . President

01:13:48.060 --> 01:13:50.060
Trump says it all the time and he's

01:13:50.060 --> 01:13:52.171
completely right . We have the best ,

01:13:52.171 --> 01:13:54.393
strongest , most lethal military in the

01:13:54.393 --> 01:13:58.310
world . Our job is to liberate them

01:13:58.310 --> 01:14:00.229
from any antiquated systems and

01:14:00.229 --> 01:14:02.229
incentives of the past , delivering

01:14:02.229 --> 01:14:04.509
them the military of the future at

01:14:04.509 --> 01:14:07.609
speed . We know the threat . I know the

01:14:07.609 --> 01:14:09.776
threat , you know the threat . We know

01:14:09.776 --> 01:14:11.942
the environment . This is our moment .

01:14:11.942 --> 01:14:14.120
May we leave here with a renewed sense

01:14:14.120 --> 01:14:16.870
of purpose ? And a shared commitment to

01:14:16.870 --> 01:14:18.814
action . Because you're definitely

01:14:18.814 --> 01:14:20.370
leaving with a fold inbox .

01:14:22.589 --> 01:14:25.729
If we must , we will go to war with the

01:14:25.729 --> 01:14:28.450
military and equipment we have . And we

01:14:28.450 --> 01:14:31.029
will win . We have the best and the

01:14:31.029 --> 01:14:33.589
strongest . But today , let's build on

01:14:33.589 --> 01:14:35.750
the vision of what Secretary Rumsfeld

01:14:35.750 --> 01:14:38.660
aspired to in his September 10th ,

01:14:38.830 --> 01:14:42.689
2001 speech . Building the military we

01:14:42.689 --> 01:14:45.839
want . And the military we need .

01:14:47.160 --> 01:14:50.620
The arsenal of freedom . That , my

01:14:50.620 --> 01:14:53.890
friends , is what we owe our warriors ,

01:14:54.180 --> 01:14:58.169
present and future . So thank you all

01:14:58.379 --> 01:15:01.339
for what you do . May God bless you and

01:15:01.339 --> 01:15:03.339
may God continue to bless our great

01:15:03.339 --> 01:15:04.390
republic . Thank you .