WEBVTT

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(majestic music)

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- Good morning everyone, please, please.

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This is clapping for you all, clapping for you all.

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(audience applauding)

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Well thank you Larry.

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We've come a long way since the joint staff

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and it's a real pleasure to be here.

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And thank you, Secretary Peters,

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I appreciate your service to AFA and to the Air Force.

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I for one have been a member,

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and I know Larry has checked this fact, since 1985,

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when my squadron commander ordered me to be.

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So I just encourage all of you who are not members

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to join this great organization.

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So I want to say a few more thank yous

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before we get started.

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Our chief, General Golfein,

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and it is hard to see, I see you right there.

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I learn from you every day.

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It's a real honor to stand beside you,

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and I'm really proud to serve with you.

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So thank you for everything.

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I want to give a shout out to Chief Wright,

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our new Chief Master Sergeant of the Air Force.

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I thought your comments on character yesterday were spot on,

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I look forward to working with you.

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Matchcom commanders and Hawk.

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I think, Hawk, I think I can say this,

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I'm the only secretary to have served

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working for you in uniform.

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We'll miss you, and Dizz and I look forward to

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a lot of great times in your retirement, so thank you.

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To our joint partners out there,

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and our international partners,

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thank you for being here, allies, civic leaders,

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and particularly the airmen who are here.

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Thank you for showing your blue uniform today

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or to this conference,

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it's really important that you're here.

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And thank you for all that you do.

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And thank you for your service and for all your families do.

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Thanks to many mentors I've seen

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over the course of the couple days I've been here.

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Too many to mention.

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General Jumper is here, I want to say thank you.

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General Welsh is here,

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thank you for being one of my mentors.

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General Winmar is here, thank you.

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And I particularly want to thank, before I get started,

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our industry partners.

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Because it's you who have developed

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the world's most capable and best equipped air force.

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You bring us the solutions we need.

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And Chief, I will accept the marble.

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So I want to get started with

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what is really a walk across the Air Force,

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from a business perspective.

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I want to talk about the year that we've just completed,

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2016, and some of the accomplishments.

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I want to talk about where we are currently

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in the business of the Air Force,

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and I want to give you a look forward

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for the rest of 2017.

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So as you're all aware,

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we're waiting for our candidate

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for Secretary of the Air Force

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to come through the confirmation process.

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And let me paint a little picture

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of the Pentagon right now and what the atmosphere is like.

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There's really a feeling of change in the air.

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We've got an incredible leader at the helm

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in Secretary Mattis,

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it's a real honor to work for Secretary Mattis.

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He's included the service secretaries

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in his twice per week staff meeting,

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which seems like maybe a small thing,

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but it's incredibly important,

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because we get to hear first hand commander's intent.

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And we're saving hours across the Air Force of spin

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by understanding exactly where

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the Secretary of Defense is headed.

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And at the President's request,

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he's initiated several quick turn reviews.

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The most comprehensive one will determine

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the new defense strategy and the force planning construct.

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Other topics under review will include

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Presidential airlift, the F-35 program,

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readiness, DOD organizational efficiencies,

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and our nuclear posture.

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But the most fundamental review is the one on strategy.

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This review will set the assumptions

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for sizing and shaping the Air Force for the future

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to help meet the nation's objectives.

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It will establish what we call a force planning construct.

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This determines the number, the size,

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the timelines, and the conditions of the conflicts

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we're expected to prepare for.

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And it will shape the capability investments

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for the FY '19 through '23 budget cycle.

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It'll help answer questions like,

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ready for what, where, and how soon?

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We're going to participate heavily in the review

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and ensure that our concerns about the threat environment

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are well represented.

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While we've been assured that there's

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no preconceived position going in,

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I seriously doubt any new strategy

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will be any less demanding than the current framework

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of defeat, deny, plus homeland defense,

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all underpinned by a strong strategic deterrence.

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You heard General Golfein describe

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the four plus one challenges we're facing.

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And since we're already short in meeting today's demands,

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I can say with confidence,

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the United States Air Force must grow.

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Our top focus is in strength.

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We need to increase the number of people we have.

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More people will mean improved operational readiness.

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Our airmen and civilians are our very best asset.

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They've been meeting the mission daily

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in undermanned and overstressed units.

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We expect to close out the FY '17 year

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with 320,000 active duty members,

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but we need to increase the number

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to at least 350,000 over time.

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Just to fill our existing units to 100 percent.

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And we may need to grow beyond that number in the future.

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Depending on this national strategy that we're working,

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the defense strategy.

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Our most acute shortfalls are in maintainers,

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pilots, acquisition, and contracting personnel,

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cyber experts, and software coders, just to name a few.

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We need more reserve component and more civilians too.

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Our civilian manning has decreased since Desert Storm

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from 262,000 to 182,000 now.

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Our civilians are critical members of the team.

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92 percent of them are in the field,

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at depos, on the flight line, or in hospitals.

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They're serving proudly in many critical positions.

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But we also need more aircraft.

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Since Desert Storm, we reduced our aircraft inventory

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from 8,600 to 5,500.

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But in a fight, quantity has a quality all of its own.

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And as Chairman Dunford recently said,

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we do not want a fair fight.

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The aircraft we have on the ramp are too old.

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Secretary Peters pointed this out yesterday,

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when he mentioned that the average age

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of our aircraft is 27 years.

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We need to revitalize the fleet.

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We need newer aircraft, newer fighters,

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newer tankers, newer bombers, and we need more RPA.

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But the Air Force provides much more

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than conventional power.

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We also provide a large portion

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of the nation's nuclear deterrence.

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In order to provide robust, reliable,

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flexible, and survivable strategic capabilities,

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we need to upgrade our legacy bomber platforms.

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We need to recapitalize our ICBMs,

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a critical strategic deterrent.

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They're aging out, and we need to replace them.

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General Golfein foot stomped the values

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of these missiles yesterday in his comments.

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And we must ensure the B-21 bomber program

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proceeds intact and on schedule.

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With its extended range, stealth, and mixed payload,

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the B-21 will be able to achieve

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combatant commander's desired effects

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for the most difficult targets.

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Meanwhile, space is no longer a benign environment.

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Adversaries continue to develop capabilities

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to deny our advantage.

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We must build a resilient space architecture.

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Our installations also need attention.

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We fight from our bases,

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but our bases are vulnerable to power outages

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and cyber attack.

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We generate air power from our bases,

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but based on tight budgets,

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we've underfunded our facilities for several years.

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We need new investment to make our bases

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more resilient to the wide array of threats we're facing.

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We also need to enhance capabilities.

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Our adversaries are increasingly lethal

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at greater distance, and with more precision.

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They're procuring more and more capable air defenses,

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EW assets, and aircraft.

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They're procuring intelligence platforms,

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cyberspace and counterspace assets.

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Our adversaries are also stealing

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our intellectual baselines,

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and they're planning against critical points of failure

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in our defense industrial base.

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But we're watching.

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And we're working with the inter agency on this.

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And I hope to partner more closely with industry

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to address these vulnerabilities.

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Given the growing threat,

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we need to remember every day

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that our biggest threat is complacency about the threat.

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We need to invest in ways to counter

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the capabilities of potential adversaries,

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and we need to be ready with capable forces

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when we're called.

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In short, we need to work together

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to strengthen and rebuild the total Air Force.

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Our force is ready to fight and win today.

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But airmen need time,

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and they need available platforms to train

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for full spectrum missions.

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So the Air Force has been working with OSD

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to submit an FY '17 amended budget proposal.

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The submission is consistent with the FY '17

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unfunded priority list on the Hill,

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and it follows the president and the Sec Def's

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rebuilding the force guidance.

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It'll fill gaps

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and it'll accelerate our readiness to recovery.

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I'm gonna talk a little bit more about that later.

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But now I want to reflect on the past year,

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from the business side of things.

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In 2016 and early 2017,

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after a thorough analysis of options,

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we announced several significant basing decisions.

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Joint base McGuire and Travis were identified

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as preferred locations for KC-46 main operating bases.

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Joint base Fort Worth, Texas,

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was announced as the preferred location

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for the first reserve F-35 location.

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Holloman was announced as the preferred location

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for the interim F-16 FTU.

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And finally, we announced that Shaw Air Force Base

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would be the preferred location for MQ9,

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mission control element operations.

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We also released several major requests to industry.

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I'm gonna call these RFP's,

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request for proposals, in short hand,

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and there are a few.

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For our new training aircraft,

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after 18 months of development

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and extensive industry engagement on TX,

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we had 800 questions and 1300 suggestions.

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We released an RFP in December.

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The TX program replaces our T-38s,

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and it's critical for us for future training.

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We also released a draft RFP for the UH-1N replacement.

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Recapitalizing this fleet will improve our ability

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to meet strategic and homeland defense missions.

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We engaged in a robust dialogue with industry,

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to continue the acquisitions strategy development,

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and the engagement has proven very fruitful.

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As a result of the insights we've learned,

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we've adjusted the timing of the final RFP to this summer,

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and we look forward to those proposals.

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On the J-stars,

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an engineering and manufacturing development RFP

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was released for three aircraft

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with options for low rate initial production.

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J-stars is an important asset

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for battle management C2 and ground tracking intelligence.

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We also issued an RFP for C1-30H upgrades,

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to ensure full fleet compliance

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with US and foreign air traffic mandates.

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And finally, we also released RFPs

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on the ground based strategic deterrent

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and long range standoff weapon,

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in support of our nuclear enterprise.

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And after overcoming a few challenges,

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our KC-46 tanker program is progressing well.

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We exercised contract options for aircraft lots one and two,

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for 19 aircraft total.

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Additionally, in January we awarded lot three,

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for another 15.

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And while we're talking about good news,

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I want to mention these milestones.

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In August, we declared the F-35 IOC.

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This will enable us to cross into the future

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with our partners.

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Airmen, both pilots and maintainers,

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are raving about F-35's performance.

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It's a force multiplier.

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We reached another important milestone

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when we were granted relief on our RPA op Tempo.

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Last year, the Secretary of Defense agreed

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to limit the cats to 60,

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and with this relief, General Carlyle was able

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to execute a get well plan,

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to reduce stress on crews and grow capability.

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Also, the B-21 team formally approved

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a program management baseline,

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and then integrated schedule, set forth by industry,

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and we announced the name "raider,"

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honoring the historic Doolittle Raiders.

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For our space enterprise,

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we successfully completed 13 launches.

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Eight were national security space,

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three were commercial, and two were civil.

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We recently launched the wide band global satcom WGS-8.

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We also launched the twelfth

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and final GPS 3F satellite in February,

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and additionally, we awarded a contract to SpaceX

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for the GPS 3 launch service,

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making it the first competitive contract award

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for a national security space launch service

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in over a decade.

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So as we look forward to 2017,

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we're facing many challenges.

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We're still not certain about

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the budget top line for the fight up,

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and we'll be working with OSD over the next several months

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to reload the FY '18 to '22 budget

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in preparation for submitting it

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to the Hill early this summer.

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The chief of my job is to ask for what we need,

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and then prioritize the funding we receive.

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So what are our investment priorities?

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What basing decisions are we making this year?

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What are the major program milestones?

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So let's start with investment.

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Our highest investment priority is improving readiness.

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And as I mentioned earlier,

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our top piece of this, among many requirements,

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is to increase in strength.

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At the same time, we must modernize our aging inventory,

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across all major weapons systems, with urgency.

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This includes acquiring new systems

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and upgrading existing systems

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to become more lethal and more survivable.

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I already talked about F-35, B-21, and KC-46

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as top priority acquisition.

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As we look at our core capabilities,

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we know we have gaps.

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We're investing heavily in upgrades to existing platforms

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and new systems to increase performance

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in multiple areas from targeting

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to communications to power to survivability.

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You'll see these priorities in our FY '17 budget request

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and amended request.

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Those requests include critical pilot production,

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especially fighter pilots.

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We're about 1500 pilots short across the total Air Force.

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And close to 1000 of those are active duty

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fighter pilot requirements.

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This is a national level crisis.

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We've also requested fourth and fifth gen aircraft mods,

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weapons systems cyber resiliency,

15:48.861 --> 15:51.278
and readiness infrastructure.

15:51.531 --> 15:54.236
Our FY '17 base budget and OCO request

15:54.236 --> 15:57.153
that's already on the Hill includes

15:57.251 --> 16:00.084
43 F-35s, 24 MQ-9s, and 15 KC-46s.

16:03.360 --> 16:05.443
We're seeking more F-35s.

16:06.169 --> 16:09.940
It's in our unfunded priority list on the Hill,

16:09.940 --> 16:12.384
and we'll be working together with Congress

16:12.384 --> 16:14.634
and the department on that.

16:15.258 --> 16:18.638
Third, we need to invest in leap ahead technologies,

16:18.638 --> 16:22.121
including new ways to compile, store, and use data

16:22.121 --> 16:24.389
to give us combat advantage.

16:24.389 --> 16:25.848
We've asked for additional funds

16:25.848 --> 16:28.599
to accelerate prototyping of key technologies.

16:28.599 --> 16:31.240
These funds will begin to address our concerns,

16:31.240 --> 16:33.452
but we also need to continue to find ways

16:33.452 --> 16:35.836
to do things smarter and better.

16:35.836 --> 16:39.169
For one thing, we need to help industry.

16:40.139 --> 16:42.079
You're our problem solvers.

16:42.079 --> 16:44.960
We need to help you better understand our requirements,

16:44.960 --> 16:49.127
the what and why behind our requirements documents.

16:50.391 --> 16:51.879
Here are some of the other ways

16:51.879 --> 16:53.267
we're trying to do things smarter,

16:53.267 --> 16:54.745
given our tight budget.

16:54.745 --> 16:57.685
We're focusing on expert capability analysis,

16:57.685 --> 16:59.510
to keep requirements affordable,

16:59.510 --> 17:01.785
while still asking for what we need.

17:01.785 --> 17:04.685
That's finding the knee in the curve on cost.

17:04.685 --> 17:06.542
And we've saved millions last year

17:06.542 --> 17:08.875
in leveraging cost analysis.

17:09.836 --> 17:11.651
We're investing in open systems architectures

17:11.651 --> 17:14.900
to make it easier to refresh and replace capabilities,

17:14.900 --> 17:16.863
and to standardize wherever possible

17:16.863 --> 17:19.616
the system interfaces and connections.

17:19.616 --> 17:22.307
We want to be able to plug and play.

17:22.307 --> 17:24.851
To do this, we need to own the technical baseline

17:24.851 --> 17:26.351
wherever possible.

17:26.516 --> 17:29.299
This practice will help ensure airmen can fully utilize

17:29.299 --> 17:33.132
all the information gathered by our platforms.

17:33.210 --> 17:35.793
The FY '17 NDAA placed emphasis

17:36.243 --> 17:40.002
on implementing modular open system approaches.

17:40.002 --> 17:42.481
We're taking a hard look at exactly where

17:42.481 --> 17:44.305
and how we can do that.

17:44.305 --> 17:47.253
This will allow us to upgrade and refresh technology

17:47.253 --> 17:48.836
better and cheaper.

17:49.289 --> 17:51.040
We'll continue to leverage

17:51.040 --> 17:53.691
flexible contract vehicles where we can.

17:53.691 --> 17:56.290
Such as other transaction authorities.

17:56.290 --> 17:58.423
This creates more agile acquisition,

17:58.423 --> 18:00.329
and it opens the door more broadly

18:00.329 --> 18:02.412
to all industry partners.

18:02.477 --> 18:04.605
We're stronger when we make it easy

18:04.605 --> 18:07.228
for a wide range of bidders to compete.

18:07.228 --> 18:10.381
So we have multiple options for solutions.

18:10.381 --> 18:12.307
In addition, we need to explore

18:12.307 --> 18:15.033
off the shelf technologies where it makes sense.

18:15.033 --> 18:17.311
For example, we're going to explore our options

18:17.311 --> 18:19.154
for light attack aircraft,

18:19.154 --> 18:21.484
bringing that into our inventory mix.

18:21.484 --> 18:25.484
We want to see if there's a business case there.

18:26.103 --> 18:30.133
We need to look at whether adding a low price platform

18:30.133 --> 18:34.084
that can be used in permissive environments makes sense.

18:34.084 --> 18:36.309
This concept could free up higher cost,

18:36.309 --> 18:38.246
higher performance platforms

18:38.246 --> 18:40.056
from doing low threat missions,

18:40.056 --> 18:41.918
which would allow us time to prepare

18:41.918 --> 18:45.328
for more complex threats with those assets.

18:45.328 --> 18:47.919
It could also help us better absorb new pilots

18:47.919 --> 18:51.810
and be useful as we work with allies and partners.

18:51.810 --> 18:54.029
A low cost, light attack platform

18:54.029 --> 18:56.947
has the potential to greatly reduce operating costs

18:56.947 --> 19:00.297
while still meeting combatant commander's demands.

19:00.297 --> 19:04.297
Another approach focuses squarely on the future.

19:04.913 --> 19:07.028
We want to increase and improve

19:07.028 --> 19:10.040
the use of experimentation and prototyping as pathways

19:10.040 --> 19:13.375
to identify new operational concepts and capabilities.

19:13.375 --> 19:14.723
But as we do that,

19:14.723 --> 19:17.179
we must ensure these initiatives can be rapidly

19:17.179 --> 19:19.083
and affordably fielded.

19:19.083 --> 19:21.338
Our adaptive engine transition program

19:21.338 --> 19:22.838
is a good example.

19:22.953 --> 19:25.083
This work will help reduce risk

19:25.083 --> 19:27.989
to engineering and manufacturing development.

19:27.989 --> 19:29.449
The program is on track

19:29.449 --> 19:32.111
to improve fuel efficiency by 25 percent

19:32.111 --> 19:33.998
while yielding 10 percent more thrust

19:33.998 --> 19:36.002
for multiple aircraft applications.

19:36.002 --> 19:39.624
It'll save money so we can reinvest in other areas.

19:39.624 --> 19:42.069
Another leap ahead technology we're prioritizing

19:42.069 --> 19:43.319
is hypersonics.

19:43.821 --> 19:46.881
Once weaponized, it will be a game changer.

19:46.881 --> 19:49.083
Hypersonic technology will enable us

19:49.083 --> 19:52.489
to better engage in highly contested environments.

19:52.489 --> 19:55.901
Speed matters, especially when we need to stand off.

19:55.901 --> 19:57.681
Hypersonic weapons will allow us

19:57.681 --> 20:00.098
to more effectively address short dwell targets

20:00.098 --> 20:03.165
that pop out from cover and then operate

20:03.165 --> 20:04.998
and then quickly hide.

20:06.309 --> 20:09.473
So we're building on the success of the X-51,

20:09.473 --> 20:11.591
and investing in foundational technologies

20:11.591 --> 20:14.845
necessary to successfully demonstrate a weapon.

20:14.845 --> 20:17.309
We're doing this by teaming our AFRL,

20:17.309 --> 20:19.910
our Air Force Research Lab, and DARPA,

20:19.910 --> 20:22.621
with industry partners to mature two approaches

20:22.621 --> 20:24.508
to deliver these effects.

20:24.508 --> 20:28.322
Tactical boost glide and SCRAM jet powered cruise.

20:28.322 --> 20:30.552
We're working to reduce program risk,

20:30.552 --> 20:32.025
but we need to move more quickly,

20:32.025 --> 20:35.079
and we're pushing to accelerate the prototype.

20:35.079 --> 20:37.350
We also need to advance our C2.

20:37.350 --> 20:40.853
General Golfein's focus on multi domain command and control

20:40.853 --> 20:42.603
is exquisitely timed.

20:43.020 --> 20:46.019
Our multi domain operations are manpower intensive

20:46.019 --> 20:48.705
and require extensive coordination.

20:48.705 --> 20:51.500
As you've heard here at AFA this week,

20:51.500 --> 20:54.346
we need our C2 systems to operate seamlessly

20:54.346 --> 20:55.679
and dynamically.

20:56.199 --> 21:00.116
And the key to getting there is all about data.

21:00.346 --> 21:02.143
It's about getting credible data

21:02.143 --> 21:04.086
and using automation to quickly analyze

21:04.086 --> 21:06.560
and apply it to decision making.

21:06.560 --> 21:09.039
We need to integrate multiple sources of data

21:09.039 --> 21:11.678
instantly without much human intervention.

21:11.678 --> 21:15.062
We need tools to quickly assess and analyze

21:15.062 --> 21:17.097
enormous amounts of information,

21:17.097 --> 21:19.659
allowing airmen to spend time thinking and doing,

21:19.659 --> 21:21.285
rather than searching, reading,

21:21.285 --> 21:23.268
and attempting to evaluate.

21:23.268 --> 21:25.134
Investment in this area is critical

21:25.134 --> 21:26.972
to future combat success.

21:26.972 --> 21:30.370
However, I also appreciated Lottie Cass's comments

21:30.370 --> 21:32.021
in the panel yesterday.

21:32.021 --> 21:33.552
She cautioned about the risks

21:33.552 --> 21:36.765
of automatically integrating large amounts of data.

21:36.765 --> 21:40.932
We must find ways to verify that the data is correct.

21:41.434 --> 21:43.724
And we need to safeguard against deception

21:43.724 --> 21:46.474
and manipulation of ground truth.

21:46.738 --> 21:49.613
In the Desert Storm era, there was a big debate

21:49.613 --> 21:52.385
about providing sensor to shooter information,

21:52.385 --> 21:55.230
raw data directly into the cockpit.

21:55.230 --> 21:57.098
I was an intelligence analyst,

21:57.098 --> 21:59.675
and I spent hours with my intel team,

21:59.675 --> 22:02.670
poring through and verifying intelligence sources

22:02.670 --> 22:05.248
and analyzing raw data to characterize it

22:05.248 --> 22:07.134
and correlate it to enemy systems

22:07.134 --> 22:09.750
and give pilots the threat lay out.

22:09.750 --> 22:12.818
That was what the enemy had and where it was.

22:12.818 --> 22:15.319
We built thousands of lines of data manually

22:15.319 --> 22:17.271
and did tactical orders of battle

22:17.271 --> 22:19.175
for targeting and planning.

22:19.175 --> 22:20.961
We put our names on it,

22:20.961 --> 22:25.128
and we put appropriate caveats where we had gaps and doubts.

22:25.318 --> 22:27.709
So we've come a long way in data fusion since then

22:27.709 --> 22:30.501
and we don't want to go back to all that manual work.

22:30.501 --> 22:32.073
But we need to make sure

22:32.073 --> 22:34.195
that the data we're using is credible,

22:34.195 --> 22:36.484
or it won't be operationally useful.

22:36.484 --> 22:40.651
We're also investing in other technology priorities.

22:41.595 --> 22:43.948
So what follows is a bit of a laundry list,

22:43.948 --> 22:46.062
but it's all very important.

22:46.062 --> 22:47.522
We're accelerating investments

22:47.522 --> 22:49.808
in directed energy applications.

22:49.808 --> 22:51.261
Autonomous learning systems are also important,

22:51.261 --> 22:54.428
so that our computers learn and adapt.

22:55.289 --> 22:59.091
We're investing in human machine collaboration techniques,

22:59.091 --> 23:01.237
and additive manufacturing is an area

23:01.237 --> 23:03.782
that may provide leap ahead opportunities

23:03.782 --> 23:06.663
for expeditionary operations and weapons systems,

23:06.663 --> 23:10.035
as well as facilities construction and spare parts.

23:10.035 --> 23:12.346
Not to mention future medical application

23:12.346 --> 23:14.679
which benefits our warriors.

23:14.903 --> 23:18.514
Our investments are critical to our future success.

23:18.514 --> 23:20.814
So now I want to look a little at basing,

23:20.814 --> 23:24.303
what are our basing priorities for the remainder of 2017?

23:24.303 --> 23:27.321
We expect to have a few announcements.

23:27.321 --> 23:28.654
The MQ-9 basing,

23:29.965 --> 23:33.965
a final basing decision on the interim F-16 FTU,

23:34.422 --> 23:38.589
preferred locations for two additional F-35 guard locations,

23:38.854 --> 23:41.339
and finally, we'll announce the preferred location

23:41.339 --> 23:45.119
for battlefield airmen training consolidation.

23:45.119 --> 23:46.912
Meanwhile, we're looking for ways

23:46.912 --> 23:48.541
to partner with communities,

23:48.541 --> 23:51.921
to free up resources to build a more lethal force.

23:51.921 --> 23:54.139
We currently have 56 installations

23:54.139 --> 23:55.891
in communities in our program,

23:55.891 --> 23:58.368
working together on a wide range of initiatives,

23:58.368 --> 24:00.916
seeking to build on shared services,

24:00.916 --> 24:04.428
from trash removal to small arms firing ranges.

24:04.428 --> 24:07.266
We're investing in energy resiliency for our bases

24:07.266 --> 24:09.864
to ensure we can operate when power is interrupted,

24:09.864 --> 24:12.281
for natural or other reasons.

24:12.404 --> 24:14.599
For example, we're investing in cheaper,

24:14.599 --> 24:16.992
cleaner sources of power for our bases,

24:16.992 --> 24:20.792
and we're also investing in physical hardening overseas.

24:20.792 --> 24:23.179
Additionally, we're reviewing business practices

24:23.179 --> 24:26.448
to see where automation and robotics can free up manpower

24:26.448 --> 24:29.588
and improve performance at our installations.

24:29.588 --> 24:32.042
In fact, we now have 76 pharmacies

24:32.042 --> 24:35.125
using robotic systems to fill prescriptions,

24:35.125 --> 24:36.464
with fewer errors,

24:36.464 --> 24:39.244
which allowed us to repurpose manpower

24:39.244 --> 24:41.327
to other important tasks.

24:41.730 --> 24:44.297
Finally, as we look to this coming year,

24:44.297 --> 24:46.504
our expected milestones include

24:46.504 --> 24:49.919
the first aircraft delivery of KC-46 this fall

24:49.919 --> 24:51.836
at McConnell and Altus.

24:52.287 --> 24:55.704
Awarding our GBSD, LRSO and TX contracts.

24:57.569 --> 25:00.368
We'll release an RFP for C-130 upgrades

25:00.368 --> 25:03.395
to address aircraft avionics modernization

25:03.395 --> 25:07.228
and ensure fleet viability well into the future.

25:07.228 --> 25:10.825
So I want to switch gears, and talk about space.

25:10.825 --> 25:13.831
The Air Force has been our nation's space steward

25:13.831 --> 25:15.331
for over 50 years.

25:16.038 --> 25:18.933
It's a responsibility we take seriously.

25:18.933 --> 25:22.228
We're still the pre-eminent nation in space.

25:22.228 --> 25:25.050
But more and more nations and commercial interests

25:25.050 --> 25:28.901
seek to capitalize on the advantages provided by space.

25:28.901 --> 25:32.568
In fact, there's a space gold rush underway.

25:33.035 --> 25:35.028
Because of this, we need to update

25:35.028 --> 25:36.998
our national space policy to reflect

25:36.998 --> 25:39.410
the rapidly changing space environment,

25:39.410 --> 25:42.559
and we need to treat it as a war fighting domain.

25:42.559 --> 25:44.396
It's no longer a benign environment

25:44.396 --> 25:47.952
for government and commercial assets to operate.

25:47.952 --> 25:49.609
We need to build a resilient

25:49.609 --> 25:52.553
and operationally effective architecture.

25:52.553 --> 25:56.239
We have a lot of interest from Congress on space

25:56.239 --> 25:59.834
and questions about whether we're organized for success.

25:59.834 --> 26:02.330
The GAO produced a report saying,

26:02.330 --> 26:06.086
"60 different stakeholders can say no on space issues."

26:06.086 --> 26:07.893
Believe me, the chief and I know,

26:07.893 --> 26:12.060
there are many people that can say no on space issues.

26:12.813 --> 26:14.646
But 2017, in the NDAA,

26:15.311 --> 26:19.144
congress directed DOD to offer recommendations

26:19.818 --> 26:22.052
on how to improve the leadership,

26:22.052 --> 26:24.850
organization, and management of the enterprise.

26:24.850 --> 26:27.185
We're working to answer their questions.

26:27.185 --> 26:29.978
To be clear, we want to streamline decision making

26:29.978 --> 26:32.682
as quickly as possible across all fronts,

26:32.682 --> 26:34.271
including acquisition.

26:34.271 --> 26:36.581
We just can't afford to wait.

26:36.581 --> 26:38.499
And fortunately, we're in the middle

26:38.499 --> 26:40.416
of a space renaissance.

26:40.699 --> 26:43.198
The US commercial industry is driving innovation

26:43.198 --> 26:46.233
in areas such as launch, satellite communications,

26:46.233 --> 26:47.816
and remote sensing.

26:48.455 --> 26:51.197
And through space command's space enterprise vision,

26:51.197 --> 26:53.835
the Air Force in collaboration with the NRO

26:53.835 --> 26:56.839
is developing new tactics, techniques, and procedures

26:56.839 --> 26:59.376
to enhance our space situational awareness

26:59.376 --> 27:01.293
and improve overall C2.

27:02.451 --> 27:04.802
As we prepare to answer our congressional tasker

27:04.802 --> 27:06.201
on space governance,

27:06.201 --> 27:09.312
you'll see us streamline acquisition processes.

27:09.312 --> 27:13.479
You'll see us implement our new NDAA '16 authorities

27:13.849 --> 27:15.481
to make milestone decisions on

27:15.481 --> 27:19.648
major defense acquisition programs within the Air Force.

27:20.467 --> 27:24.359
But as in all war fighting domains, people are the key.

27:24.359 --> 27:27.625
We want to attract and retain space talent.

27:27.625 --> 27:30.135
Let me highlight an important space related initiative,

27:30.135 --> 27:31.784
and I think you've heard a little bit about it

27:31.784 --> 27:33.561
in the last several days.

27:33.561 --> 27:35.682
Thanks to a partnership with AFA,

27:35.682 --> 27:38.371
we have a program called "stellar explorers"

27:38.371 --> 27:39.932
that's offering a challenging

27:39.932 --> 27:42.849
space design competition for students.

27:42.849 --> 27:45.272
We've had a steady increase in participation

27:45.272 --> 27:48.701
as it flourishes into a national level program.

27:48.701 --> 27:51.368
It's grown from 27 teams in 2015

27:53.385 --> 27:56.385
to 125 in 2016, including 30 states.

27:58.261 --> 28:00.283
We're excited to announce the Air Force

28:00.283 --> 28:03.206
will provide scholarships to each of the students

28:03.206 --> 28:06.299
comprising the first, second, and third place winners,

28:06.299 --> 28:09.336
and we're happy to hear United Launch Alliance

28:09.336 --> 28:12.253
will match the scholarship amounts.

28:12.985 --> 28:16.949
Now I want to touch a little on data and cyberspace.

28:16.949 --> 28:19.389
This is a major focus for the year.

28:19.389 --> 28:21.757
Our core missions increasingly rely

28:21.757 --> 28:23.238
on cyberspace capabilities,

28:23.238 --> 28:24.872
which are delivered and protected

28:24.872 --> 28:27.363
by world class Air Force workforce.

28:27.363 --> 28:30.211
A workforce we need to grow and retain.

28:30.211 --> 28:33.878
Challenges remain, but 2016 was a good year.

28:34.252 --> 28:37.410
We stood up a chief information security office.

28:37.410 --> 28:40.430
We cut the ribbon on the Air Force's cyber proving ground,

28:40.430 --> 28:44.205
and we've deployed an in point security and management tool

28:44.205 --> 28:48.363
faster than any other enterprise has done to date.

28:48.363 --> 28:51.020
The Air Force's HR talent management suite,

28:51.020 --> 28:53.875
called MYPERS, was moved to the cloud,

28:53.875 --> 28:56.845
in a tremendous partnership with industry.

28:56.845 --> 28:59.246
And we've stood up an Air Force digital service,

28:59.246 --> 29:02.048
in coordination with DOD's digital service.

29:02.048 --> 29:05.714
This small team of civilians, they're software geniuses,

29:05.714 --> 29:07.809
and they're acting as the pros from Dover,

29:07.809 --> 29:09.793
bringing their Silicon Valley experience

29:09.793 --> 29:13.531
to help us with our complex software development programs.

29:13.531 --> 29:16.779
They're bringing us best practices from outside of DOD

29:16.779 --> 29:20.035
to improve areas where we haven't been successful.

29:20.035 --> 29:22.083
Our landmark will continue to be

29:22.083 --> 29:25.001
the transformation of our communications squadrons

29:25.001 --> 29:27.213
and the cyber squadron initiative.

29:27.213 --> 29:30.827
This effort fundamentally changes our workforce

29:30.827 --> 29:34.994
from IT service providers to mission assurance airmen.

29:35.256 --> 29:37.163
And it provides wing commanders

29:37.163 --> 29:39.457
a defense cyber operations capability

29:39.457 --> 29:42.521
to mitigate risk to their wings missions.

29:42.521 --> 29:44.251
We also recently commissioned

29:44.251 --> 29:47.618
a cyber resiliency office for weapons systems.

29:47.618 --> 29:49.961
Their mission is to press cyber security

29:49.961 --> 29:53.720
and resiliency into our weapons systems and platforms.

29:53.720 --> 29:56.327
We'll continue to work to close gaps in cyber,

29:56.327 --> 29:59.526
and prepare for data resource management.

29:59.526 --> 30:02.970
And we'll continue to encourage an enterprise view for IT,

30:02.970 --> 30:05.521
with emphasis on governance, budget,

30:05.521 --> 30:08.104
and centralized responsibility.

30:08.841 --> 30:10.674
So I've covered a lot,

30:10.819 --> 30:12.909
but the most important aspect of our Air Force

30:12.909 --> 30:15.696
is our airmen, and they deserve the spotlight

30:15.696 --> 30:17.863
as we enter our 70th year.

30:18.567 --> 30:20.839
Our people on active duty, civilians,

30:20.839 --> 30:22.810
and in the guard and reserve

30:22.810 --> 30:25.850
are incredibly talented and dedicated.

30:25.850 --> 30:28.694
They are what makes the United States Air Force great.

30:28.694 --> 30:31.222
The chief and I are committed to taking care of them.

30:31.222 --> 30:33.649
We highly value each person's contributions

30:33.649 --> 30:35.111
to the Air Force team,

30:35.111 --> 30:36.995
and we respect their needs.

30:36.995 --> 30:39.364
Their quality of life is important.

30:39.364 --> 30:41.090
We ask a lot from our people,

30:41.090 --> 30:43.261
and we're dedicated to taking care of them

30:43.261 --> 30:44.844
and their families.

30:45.275 --> 30:47.656
Finally I want to highlight an important program

30:47.656 --> 30:50.266
the chief and I are working to improve.

30:50.266 --> 30:52.353
In 2012 the Air Force centralized

30:52.353 --> 30:53.863
the Wounded Warrior Program

30:53.863 --> 30:55.914
within the Air Force personnel center,

30:55.914 --> 30:57.366
and we learned a lot.

30:57.366 --> 30:59.136
We learned valuable lessons from airmen

30:59.136 --> 31:01.566
with physical and invisible wounds.

31:01.566 --> 31:03.782
We've done well, but we need to do more

31:03.782 --> 31:05.949
for our greatest resource.

31:06.264 --> 31:08.689
Treating invisible wounds is our sacred duty,

31:08.689 --> 31:12.106
just as it is to treat the wounds we see.

31:12.383 --> 31:14.450
We need to better understand the barriers

31:14.450 --> 31:17.300
that are preventing airmen from getting help early.

31:17.300 --> 31:19.267
We offer a wide range of services,

31:19.267 --> 31:20.984
but we need to integrate them

31:20.984 --> 31:23.407
so they're accessible to all airmen.

31:23.407 --> 31:26.107
We're now looking at ways to address the gaps

31:26.107 --> 31:28.602
we've identified in care for wounded airmen,

31:28.602 --> 31:30.965
no matter whether they've had one tour

31:30.965 --> 31:32.247
or a full career.

31:32.247 --> 31:35.060
And where possible, we will champion efforts

31:35.060 --> 31:37.310
to get airmen back to duty.

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The needs are particularly urgent

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for our battlefield airmen.

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We need them.

31:43.494 --> 31:45.176
And we need each of you,

31:45.176 --> 31:48.250
our active guard, reserve, and civilian airmen.

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Some of you are here today.

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We also need our international partners.

31:52.919 --> 31:55.579
And we need our industry partners.

31:55.579 --> 31:57.934
It's you who have provided the intellectual

31:57.934 --> 31:59.580
and the technological magic

31:59.580 --> 32:02.498
that's produced the world's greatest air force.

32:02.498 --> 32:04.841
We look forward to celebrating our 70th birthday

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with all of you.

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Thanks for everything you do for us.

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And what I want to do is show a very short video

32:11.729 --> 32:14.979
on the 70th birthday breaking barriers.

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Thank you very much.

32:16.329 --> 32:18.827
I look forward to working with all of you.

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(audience applauding)

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(majestic music)

33:20.219 --> 33:23.386
(audience applauding)

33:27.400 --> 33:29.180
- Thank you so much, Madame Secretary,

33:29.180 --> 33:30.834
for that great presentation,

33:30.834 --> 33:32.686
and really inspiring video.

33:32.686 --> 33:35.659
I want to thank Secretary Disbrow for a great presentation,

33:35.659 --> 33:38.076
thank you all for being here.

33:38.256 --> 33:40.083
I know you all will join me

33:40.083 --> 33:42.333
and certainly agree with me

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that regardless with what happens in terms of

33:46.522 --> 33:48.056
future confirmations,

33:48.056 --> 33:51.643
the Air Force is in good hands with Secretary Disbrow.

33:51.643 --> 33:53.284
So thank you all so much.

33:53.284 --> 33:56.451
(audience applauding)

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- Okay, if you would just sort of break in place,

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and we'll reset the stage for the next panel.

34:15.986 --> 34:17.653
Thank you very much.

