WEBVTT 00:00.820 --> 00:02.910 - Okay, thank you for coming. 00:02.910 --> 00:05.610 I'm Hank Giffin on the East Coast, Vice-President, 00:05.610 --> 00:08.720 one of the two for the Surface Navy Association, 00:08.720 --> 00:11.500 and I'd like to first introduce Admiral Moore, 00:11.500 --> 00:13.590 and then we're gonna do an award, 00:13.590 --> 00:16.520 one of the Surface Navy Association's really, really 00:16.520 --> 00:18.330 difficult awards to win, and I'll go into that 00:18.330 --> 00:21.290 in a second, and then we'll kick off the panel. 00:21.290 --> 00:24.730 So, first of all, Vice-Admiral Thomas Moore, 00:24.730 --> 00:26.650 who's dad was my DESRON commander, 00:26.650 --> 00:28.830 and he was a fantastic leader 00:28.830 --> 00:32.332 and he ranked me very highly and so that's why I made flag. 00:32.332 --> 00:35.010 (audience laughing) 00:35.010 --> 00:37.038 And I didn't kiss his ass either. 00:37.038 --> 00:38.610 (audience laughing) 00:38.610 --> 00:39.560 He wouldn't let me. 00:40.610 --> 00:43.900 So, anyway, Admiral Moore is a second-generation 00:43.900 --> 00:45.230 naval officer, obviously. 00:45.230 --> 00:47.590 He graduated from the Naval Academy in 1981. 00:47.590 --> 00:49.910 He served on four ships in 13 years 00:49.910 --> 00:52.470 as a surface nuclear-trained officer. 00:52.470 --> 00:55.380 In 1994 he went to a lateral transfer 00:55.380 --> 00:57.320 to the engineering duty officer. 00:57.320 --> 01:00.610 Corps, he served in SupShips, OPNAV, 01:00.610 --> 01:03.820 major program manager for inservice aircraft carriers 01:03.820 --> 01:07.670 and PEO Aircraft Carriers for five years. 01:07.670 --> 01:11.498 Wow, thank goodness guys like you will do that work 01:11.498 --> 01:12.331 because that's tough. 01:12.331 --> 01:15.510 And then in June 2016, he became the NAVSEA Commander 01:15.510 --> 01:18.433 and he's done a fantastic job, very, very, 01:19.440 --> 01:21.610 just the kind of leader that we've needed in NAVSEA, 01:21.610 --> 01:23.320 and we're all very proud of that. 01:23.320 --> 01:26.330 So with that, I will kick off the award 01:26.330 --> 01:29.400 and we're supposed to have Captain Shank here 01:30.290 --> 01:31.763 as well from Adobe. 01:33.070 --> 01:34.460 Okay, we'll go without him. 01:34.460 --> 01:39.340 All right, so this is the Captain Raymond Komorowski 01:39.340 --> 01:43.470 Photo Award, do you have that in the back to put up? 01:43.470 --> 01:47.120 It's the one of the Coast Guard cutter going 01:47.120 --> 01:49.550 through the Panama Canal, it looks like a painting, 01:49.550 --> 01:52.060 it doesn't look like a photo, it's just amazing. 01:52.060 --> 01:55.960 But it's the first place "Ship" and Grand Prize Winner, 01:55.960 --> 01:58.550 is Captain Mark Gordon from the Coast Guard. 01:58.550 --> 02:01.210 It depicts the Coast Guard Cutter Hamilton, 02:01.210 --> 02:06.210 WMSL-753 northward bound in the Panama Canal 02:06.330 --> 02:09.210 crossing under the Centennial Bridge. 02:09.210 --> 02:13.390 So here's the beautiful plaque, and it basically reads 02:16.182 --> 02:17.015 The purpose of this award is 02:17.015 --> 02:18.650 to recognize pictorial representation 02:18.650 --> 02:19.930 of the professional activities 02:19.930 --> 02:22.060 and life of the diverse elements 02:22.060 --> 02:24.140 of the surface warfare community 02:24.140 --> 02:26.420 and their contribution to naval warfare. 02:26.420 --> 02:29.120 They educate the citizens of the United States 02:29.120 --> 02:32.070 as to the purpose of surface warfare and its achievements 02:32.070 --> 02:35.480 to provide archival material and to reinforce interest 02:35.480 --> 02:37.380 in surface warfare professionalism. 02:37.380 --> 02:39.620 It's signed by Vice-Admiral Rich Hunt, 02:39.620 --> 02:41.730 who is the president of SNA. 02:41.730 --> 02:43.691 Congratulations Captain. 02:43.691 --> 02:46.379 (audience applause) 02:46.379 --> 02:47.212 - Congratulations. 02:47.212 --> 02:48.212 - Thank you sir. 02:48.212 --> 02:49.045 - Photo? 02:56.860 --> 02:58.571 - And he gets a check. 02:58.571 --> 03:00.055 - All right, even better. 03:00.055 --> 03:02.108 - What's my share of that? 03:02.108 --> 03:05.511 - You only get 10% of that check. 03:05.511 --> 03:06.344 Very good. 03:06.344 --> 03:08.210 Now we'll move, bring this panel on 03:08.210 --> 03:10.140 and do the introductions. 03:10.140 --> 03:11.750 I think they're all mic'd up, I hope. 03:11.750 --> 03:12.603 - Congrats. 03:22.960 --> 03:24.580 - You can sit anywhere you want. 03:24.580 --> 03:25.480 Just grab a chair. 03:34.580 --> 03:36.620 This is a little bit different format than the other 03:36.620 --> 03:38.140 three or four years where we sat behind a table, 03:38.140 --> 03:40.433 I kind of feel like Oprah Winfrey sitting up here. 03:40.433 --> 03:41.570 (audience laughing) 03:41.570 --> 03:43.380 The other thing is, these are probably the most comfortable 03:43.380 --> 03:46.570 chairs I've ever sat in, and I may be flying 03:46.570 --> 03:48.900 to San Diego when I finish this afternoon, 03:48.900 --> 03:51.030 and the seat that I'm actually sitting in will actually 03:51.030 --> 03:52.643 have someone next to me. 03:54.512 --> 03:56.740 And so I'm gonna get used to the room here. 03:56.740 --> 04:00.800 We are, great to be here, this is a panel discussion 04:00.800 --> 04:03.083 on building the future fleet, 04:04.490 --> 04:07.402 which is appropriate we take a look at what the CNOs 04:07.402 --> 04:09.760 of FRAGO is, and one of its three lines of efforts 04:09.760 --> 04:11.500 obviously talks about building the future fleet. 04:11.500 --> 04:13.300 So, I think we're gonna have a round, 04:13.300 --> 04:15.770 a nice robust discussion here. 04:15.770 --> 04:19.850 I'm gonna let the panelists talk for about five to seven 04:19.850 --> 04:21.880 minutes max and then I'm gonna give them a hook 04:21.880 --> 04:26.660 because the idea is to allow an interchange. 04:26.660 --> 04:28.440 They're gonna talk about what's on their plate, 04:28.440 --> 04:31.850 big picture things, we'll open up the floor to questions, 04:31.850 --> 04:34.240 and ask some questions, I have several questions 04:34.240 --> 04:38.200 I've already written down that I think will engender 04:38.200 --> 04:39.653 a robust discussion. 04:40.760 --> 04:44.170 We have the usual suspects from NAVSEA, 04:44.170 --> 04:46.010 Bill Galinis who's PEO Ships, 04:46.010 --> 04:49.043 Casey Moton is PEO USC, 04:50.830 --> 04:53.120 Doug Small, who's at POI WS, 04:53.120 --> 04:55.920 and privileged again to have the Coast Guard. 04:55.920 --> 04:59.492 You will notice down at the end that we've got 04:59.492 --> 05:02.221 somebody out of uniform here, one of the things 05:02.221 --> 05:04.870 that I thought this year would make this a little bit 05:04.870 --> 05:06.493 different and interesting was, 05:07.531 --> 05:09.130 and to recognize the importance of the partnership 05:09.130 --> 05:11.500 that we have with industry is that we would have 05:11.500 --> 05:13.460 industry sit on the panel with us. 05:13.460 --> 05:15.620 And you'll see in the afternoon panel, as well. 05:15.620 --> 05:18.890 Last year, the main panel, we were able to get 05:18.890 --> 05:20.640 the Thai Commander, we gonna be privileged to have 05:20.640 --> 05:22.360 Admiral Kitchfer sit in again. 05:22.360 --> 05:23.580 We'll have an industry rep here too, 05:23.580 --> 05:25.880 so just to give you a different perspective 05:27.494 --> 05:29.260 on what industry's seeing on the challenges 05:29.260 --> 05:32.370 and I think that will be interesting discussion 05:32.370 --> 05:35.620 for all of us, so Matt Paxton, we're certainly grateful 05:35.620 --> 05:36.640 to have each of you here. 05:36.640 --> 05:39.893 So, to the panel, we're just gonna move left to right, 05:41.172 --> 05:42.673 but I won't introduce you, just introduce yourself. 05:42.673 --> 05:44.270 You get about five to seven minutes, 05:44.270 --> 05:47.393 I'll be timing, a little clock down there, 05:48.235 --> 05:50.410 the key is to talk about what's on your plate, 05:50.410 --> 05:52.520 big picture issues, and then when we finish, 05:52.520 --> 05:54.430 again, we'll open up the floor to questions 05:54.430 --> 05:55.620 and I've got some other things 05:55.620 --> 05:56.780 as the moderator going forward. 05:56.780 --> 05:59.410 So, over to you Doug. 05:59.410 --> 06:01.000 - All right, good morning. 06:01.000 --> 06:01.833 (audience response) 06:01.833 --> 06:02.790 I think I'll stand. 06:02.790 --> 06:05.150 So thanks, thanks for being here 06:05.150 --> 06:06.730 and I'm privileged to be here. 06:06.730 --> 06:08.710 I'm Rear Admiral Doug Schofield, 06:08.710 --> 06:11.000 I'm the Coast Guard's Director of Acquisition Programs 06:11.000 --> 06:12.800 and Program Executive Officer. 06:12.800 --> 06:15.990 So I'm gonna highlight a little bit about my portfolio. 06:15.990 --> 06:17.490 I'm very excited to be here. 06:17.490 --> 06:20.620 As you've heard, or know, I've got ships as old 06:20.620 --> 06:25.540 as 80-plus years old, Coast Guard Cutter Eagle 06:25.540 --> 06:27.730 and operational cutters doing missions, 06:27.730 --> 06:30.300 straight missions, older than 70-years-old. 06:30.300 --> 06:33.350 So I've got a big job, I'm very privileged 06:33.350 --> 06:35.780 to work with industry and our operational partners 06:35.780 --> 06:38.450 because it's all about bringing capability to the field 06:38.450 --> 06:40.760 and then enhancing those capabilities 06:40.760 --> 06:42.340 that I have to keep running. 06:42.340 --> 06:46.220 So, we should have a slide, to show my portfolio, 06:46.220 --> 06:50.490 hopefully, but if we don't, if we can't get that up, 06:50.490 --> 06:52.940 I'll talk about some of my platforms. 06:52.940 --> 06:56.430 First, recently awarded a contract to, 06:56.430 --> 07:00.490 in the upper left-hand corner, our 47 motor lifeboats. 07:00.490 --> 07:02.896 These are our big search-and-rescue platforms 07:02.896 --> 07:07.450 on our East Coast and West Coast of the U.S. 07:07.450 --> 07:10.440 We have a contract up to 107 boats, 07:10.440 --> 07:12.210 to do a service life extension. 07:12.210 --> 07:14.620 Really this is a re-powering, some instructional 07:14.620 --> 07:17.520 enhancements and electronic upgrades on these boats. 07:17.520 --> 07:20.560 Very critical to our near-shore operations, 07:20.560 --> 07:24.100 very great asset, I'm excited to work that contract 07:24.100 --> 07:26.140 and get those capabilities back out to the field 07:26.140 --> 07:29.350 more reliable, and be able to keep this going 07:29.350 --> 07:30.650 for many years to come. 07:30.650 --> 07:33.840 Upper right, cutter boats, we have both Legacy 07:33.840 --> 07:36.810 cutter boats and our new acquisition cutter boats. 07:36.810 --> 07:39.230 We have long-range interceptors over-the-horizon 07:39.230 --> 07:42.140 boats, these are boats that can go 150 miles-plus, 07:42.140 --> 07:44.750 long-range communications, and do multi-missions 07:44.750 --> 07:47.160 off our main cutter fleet. 07:47.160 --> 07:50.140 Great interoperability, common communication suite, 07:50.140 --> 07:53.051 both DoD, Coast Guard and DHS, 07:53.051 --> 07:55.350 so very important to us overall. 07:55.350 --> 07:56.920 We continue to recapitalize those, 07:56.920 --> 07:59.110 we're looking for our fifth generation 07:59.110 --> 08:00.290 over-the-horizon boat, 08:00.290 --> 08:03.040 third generation long-range interceptor coming up soon. 08:04.210 --> 08:06.763 Middle left, national security cutter. 08:08.123 --> 08:11.330 We are under contract for 11 boats currently, 08:11.330 --> 08:13.453 we delivered our eighth this past year. 08:14.470 --> 08:17.080 Great capability out to the fleet, been working 08:17.080 --> 08:21.440 very importantly, this is really a fully interoperable 08:21.440 --> 08:23.800 DoD platform, we've been working a lot with the Navy, 08:23.800 --> 08:26.200 and our partnerships are stronger than ever 08:26.200 --> 08:27.660 with that platform. 08:27.660 --> 08:32.280 Middle, looking shortly to work a waterways commerce 08:32.280 --> 08:34.740 cutter, our inland river and construction tenors 08:34.740 --> 08:38.320 near coast, I have 35 boats right now, 08:38.320 --> 08:42.770 oldest built in 1944, we've overhauled her too many times, 08:42.770 --> 08:44.370 we need to replace her. 08:44.370 --> 08:48.040 Cutter Smilax in North Carolina is part of those boats. 08:48.040 --> 08:50.650 But very important mission, a lot of folks don't realize 08:50.650 --> 08:53.690 how important that mission is for the inland rivers 08:53.690 --> 08:56.950 and coastal waterways, but very, very critical. 08:56.950 --> 08:58.600 Polar security cutter, next one to the right, 08:58.600 --> 09:01.640 we have a contract up to three polar security cutters. 09:01.640 --> 09:04.260 This is the real partnership with the Navy, 09:04.260 --> 09:06.800 I'm very proud, Mr. Matt Sermon's running around here, 09:06.800 --> 09:10.370 he and I together, we're brothers to deliver a great 09:10.370 --> 09:13.650 United States capability in the latest heavy icebreaker 09:13.650 --> 09:15.360 to the fleet. 09:15.360 --> 09:17.490 This is a gonna be a great platform, 09:17.490 --> 09:19.380 great mission set for us. 09:19.380 --> 09:22.640 Lower left-hand corner, our largest off-shore cutter 09:22.640 --> 09:25.200 fleet in size, off-shore patrol cutter, 09:25.200 --> 09:27.420 got a contract, we're currently building the first hull 09:27.420 --> 09:30.420 right now, this is, we're looking to build a fleet 09:30.420 --> 09:33.810 of 25 of these, this is 70% of our coverage off-shore, 09:33.810 --> 09:36.320 very important cutter class for us. 09:36.320 --> 09:39.670 Middle, Polar Star, we're doing a Polar Star built 09:39.670 --> 09:43.410 in the 70's, our only operational heavy icebreaker 09:43.410 --> 09:45.690 currently, she's actually down breaking out ice 09:45.690 --> 09:48.200 at McMurdo Station as we speak. 09:48.200 --> 09:51.550 Great mission, hard part for us is keeping her running. 09:51.550 --> 09:54.870 She goes out, does the mission at McMurdo, comes home, 09:54.870 --> 09:56.690 we take her out of the water and dock her. 09:56.690 --> 09:59.020 I need to do some upgrades, and so I'm working 09:59.020 --> 10:01.620 with our systemic community in hand, 10:01.620 --> 10:05.020 I'm working on some electrical upgrades, 10:05.020 --> 10:08.010 control system upgrades, and some major system upgrades 10:08.010 --> 10:11.000 for obsolescence and other reasons on her, 10:11.000 --> 10:12.876 and it's a multi-year contract, 10:12.876 --> 10:14.730 and we're very excited to get that contract out here 10:14.730 --> 10:15.850 in the near future. 10:15.850 --> 10:17.440 Last one is fast response cutter. 10:17.440 --> 10:20.500 Our patrol boats program a record of 58, 10:20.500 --> 10:24.490 Congress has also given us funding appropriations 10:24.490 --> 10:28.760 for four to continue our operations in southwest Asia, 10:28.760 --> 10:32.440 working with Navy there and doing our normal 10:32.440 --> 10:34.990 law enforcement operations in the Persian Gulf. 10:34.990 --> 10:38.510 So great capability for us, really much more robust 10:38.510 --> 10:41.340 sea-keeping and boat launch and recovery, 10:41.340 --> 10:45.870 with over-the-horizon boats, on those and a great C5I suite. 10:45.870 --> 10:49.184 So looking forward to questions today, thank you. 10:49.184 --> 10:50.227 - Thank you Doug. 10:50.227 --> 10:53.750 (audience applause) 10:53.750 --> 10:56.200 I will say that I know Matt Sermon, 10:56.200 --> 10:57.410 and if you two are brothers, 10:57.410 --> 10:59.300 you're brothers from a different mother, so 11:01.940 --> 11:03.320 Sorry about that. 11:04.340 --> 11:06.107 Okay, Doug Small, over to you. 11:07.287 --> 11:10.620 - So, first I'd just like to continue with Admiral Moore's 11:11.530 --> 11:13.430 description of the talk show format, 11:13.430 --> 11:16.250 but he missed the opportunity, by the way, to say, 11:16.250 --> 11:20.123 and you get a ship, and you get a ship, and you get a ship. 11:20.123 --> 11:22.040 (audience laughing) 11:22.040 --> 11:24.244 - [Admiral] And you get a radar, and you get a radar, 11:24.244 --> 11:25.911 and you get a radar. 11:26.950 --> 11:29.690 - So I'm Doug Small, I have the privilege 11:29.690 --> 11:34.010 with Ms. Jill Bower to lead the nation's surface 11:34.010 --> 11:37.250 combat systems acquisition engineering and technical 11:37.250 --> 11:39.490 organization, PEO IWS. 11:39.490 --> 11:43.210 Our primary focus, like any of us, is on developing 11:43.210 --> 11:47.990 that work force to make sure that we are always the finest 11:47.990 --> 11:50.053 combat systems organization in the world. 11:52.180 --> 11:56.570 For the purposes of this panel, beyond our current focus 11:56.570 --> 12:01.000 of obviously the current fleet, ASIBO 1.0 Fight Tonight 12:01.000 --> 12:05.060 on time delivery, never lose sight of that. 12:05.060 --> 12:08.100 We're constantly driving towards delivering lethality 12:08.100 --> 12:09.713 at a speed of relevance. 12:11.890 --> 12:14.660 Hopefully we'll talk about it, but the ships of today, 12:14.660 --> 12:17.500 our job is to make sure that the ships of today 12:17.500 --> 12:22.260 and tomorrow are much more capable by themselves 12:22.260 --> 12:23.670 and absolutely together 12:23.670 --> 12:25.750 than their quantities would indicate. 12:25.750 --> 12:30.610 And that's how they make each ship that much more powerful 12:30.610 --> 12:32.420 in conjuncture with every other one. 12:32.420 --> 12:37.420 So we have a dizzying array of projects from obviously 12:37.790 --> 12:41.210 the missiles we're procuring, just went to multi-year 12:41.210 --> 12:43.700 procurement on Saturn missile six, we're going to get 12:43.700 --> 12:47.770 those out there in amazing quantities. 12:47.770 --> 12:52.580 Electronic warfare systems, our goal is to, 12:52.580 --> 12:56.680 and we're about half-way there, basically detect anything 12:56.680 --> 13:01.350 that's emitted, and then jam it, with the goal of basically 13:01.350 --> 13:05.189 what we want to make sure is that any would-be adversary 13:05.189 --> 13:08.223 sees what we want them to see, period. 13:10.320 --> 13:13.953 Laser systems are being installed, lasers are here to stay, 13:15.440 --> 13:18.920 we're already making installations on some ships 13:18.920 --> 13:22.350 of a smaller, lower-powered system. 13:22.350 --> 13:24.730 We're certainly helping, O & R's been putting out some 13:24.730 --> 13:27.530 higher power lasers and we're well on the path 13:27.530 --> 13:31.337 to integrating lasers as a war-fighting capability 13:31.337 --> 13:33.940 on our ships. 13:33.940 --> 13:37.410 Sensors, I know there's been a lot of discussion 13:37.410 --> 13:40.874 on the SPY-6 and a lot of the other types of capabilities 13:40.874 --> 13:44.610 that are being delivered 13:44.610 --> 13:46.160 with Aegis Baseline 10, 13:46.160 --> 13:48.673 what an incredible capability that's gonna be. 13:50.300 --> 13:53.420 And then really pushing hard on integrated fire control, 13:53.420 --> 13:57.190 but the way you get to lethality of speed is let's use 13:57.190 --> 13:59.960 the stuff that we already have and make sure we can use 13:59.960 --> 14:03.280 any sensor to deliver any effect at any range 14:03.280 --> 14:04.113 that we need to. 14:04.113 --> 14:06.360 And so we've been pushing really hard on that. 14:06.360 --> 14:11.130 And a lot of the stuff has been, we've talked a lot 14:11.130 --> 14:13.640 about combat systems virtualization and a lot 14:13.640 --> 14:15.810 of the tools that we're bringing that commercial industry 14:15.810 --> 14:18.400 does like platform and infrastructure as a service, 14:18.400 --> 14:21.830 and the speed that that's gonna unleash for us, 14:21.830 --> 14:25.710 our push is toward what we call continuous delivery. 14:25.710 --> 14:28.710 We want to make sure that we have the systems in place 14:28.710 --> 14:31.250 so it's not a technical challenge to be able to deliver 14:31.250 --> 14:33.440 whatever capability it is that we need 14:33.440 --> 14:34.763 well before we need it. 14:35.890 --> 14:37.700 And then there's a whole host of other things 14:37.700 --> 14:40.030 that will help in shipbuilding and everything else 14:40.030 --> 14:43.610 when you don't have that sort of dedicated processing. 14:43.610 --> 14:46.330 So continuous delivery, continuous ATO, 14:46.330 --> 14:50.240 so we're not constantly doing RMF paperwork 14:50.240 --> 14:51.670 for Admiral Moore, 14:51.670 --> 14:54.470 taking up all of his time, and just really a push 14:54.470 --> 14:57.023 towards speed, this is all taking on what's in 14:57.023 --> 14:58.490 that commercial industry. 14:58.490 --> 15:01.510 So with that, I look forward to your questions 15:01.510 --> 15:06.070 and I'm hopeful we'll get into some of the other stuff. 15:06.070 --> 15:07.820 We'll talk about ships too I think. 15:10.040 --> 15:10.873 That's it for me. 15:10.873 --> 15:12.413 - Admiral Moton, over to you. 15:12.413 --> 15:15.350 - All right, good morning, I'm Admiral Casey Moton, 15:15.350 --> 15:17.523 PEO, unmanned and small combatants. 15:18.380 --> 15:21.470 Very happy to be here as well to talk about our portfolio, 15:21.470 --> 15:24.551 I'm just glad it's Oprah Winfrey and not Jerry Springer. 15:24.551 --> 15:25.384 (audience laughing) 15:25.384 --> 15:28.260 otherwise we'd have a PEO smackdown up here, Admiral Small, 15:28.260 --> 15:32.803 right, but you know I'm glad for that format. 15:33.710 --> 15:38.090 So PEO USC, I have seven program offices at work for me 15:38.090 --> 15:41.800 but I really think of it in terms of four lines of effort. 15:41.800 --> 15:45.730 So, and I'll talk about, I'll talk about these so, 15:45.730 --> 15:48.863 LCS, all things LCS, our first line of effort. 15:50.030 --> 15:53.350 Frigate, the new frigate, unmanned as well, 15:53.350 --> 15:55.570 we'll talk about that, and of course, the fourth line 15:55.570 --> 15:58.230 of effort is mine warfare, both mine countermeasures 15:58.230 --> 16:00.940 and offensive mining as well. 16:00.940 --> 16:03.120 So that's what we do in PEO USC. 16:03.120 --> 16:05.150 Think I'll hit the first three mostly today, 16:05.150 --> 16:07.630 although if there's questions, I can certainly touch on 16:07.630 --> 16:09.840 a little bit more on mine warfare. 16:09.840 --> 16:14.840 So, in terms of those, the importance of what USC 16:15.390 --> 16:18.210 is developing to the fleet, if you think about 16:18.210 --> 16:20.330 distributed maritime operations, if you think about 16:20.330 --> 16:23.040 the future service combatant force, 16:23.040 --> 16:24.910 PEO USC is producing 16:25.850 --> 16:28.203 there's five legs, right, 16:29.840 --> 16:32.950 Flight III and the LSC for large combatants 16:32.950 --> 16:36.480 and small combatants, medium unmanned, large unmanned, 16:36.480 --> 16:38.950 and integrated combat system, so PEO USC, 16:38.950 --> 16:40.980 we're producing three of those legs, 16:40.980 --> 16:42.990 so a critical part of the game 16:42.990 --> 16:44.940 of bringing the capability to the Navy. 16:46.230 --> 16:49.623 First line of effort for LCS, a key part of that, 16:50.786 --> 16:53.830 the status there, it's really actually an exciting time. 16:53.830 --> 16:55.680 I came in as PEO at an exciting time. 16:56.570 --> 17:01.570 From terms of production, all 35 ships, all 35 LCSs 17:01.628 --> 17:03.110 that we're gonna build are under contract. 17:03.110 --> 17:05.410 19 of those are delivered. 17:05.410 --> 17:07.470 We're at a pretty blistering pace, 17:07.470 --> 17:09.470 five ships we're gonna deliver in FY 20, 17:10.437 --> 17:12.660 and our LCS ship building program office, 17:12.660 --> 17:13.493 as far as I can tell, 17:13.493 --> 17:16.220 is pretty much sea trial to sea trial to sea trial. 17:16.220 --> 17:18.733 I mean, they are really in that production mode. 17:19.810 --> 17:23.170 Ships are doing well, trial scores are coming in well, 17:23.170 --> 17:25.930 production hours for the ships we're building now 17:25.930 --> 17:28.760 are 30% down from where we were at the start 17:28.760 --> 17:30.250 of block buy. 17:30.250 --> 17:33.100 And the schedules have really stabilized and predictable. 17:35.183 --> 17:37.240 Just a lot of great work. 17:37.240 --> 17:39.220 The other thing about LCS of course, this is the 17:39.220 --> 17:42.207 building panel, so I'm focusing on production, 17:42.207 --> 17:44.720 but if you walk the waterfront either in Mayport 17:44.720 --> 17:47.790 or San Diego, there's a lot of LCSs at the pier, 17:47.790 --> 17:50.430 and so a lot of what Admiral Brown has talked this week 17:50.430 --> 17:53.750 about mainstreaming LCS, we're a key player in that 17:53.750 --> 17:57.170 and are really excited to see those ships being used 17:57.170 --> 18:01.930 and to flesh out issues, and three ships deployed 18:01.930 --> 18:05.720 right now, the opportunity to support those ships 18:05.720 --> 18:07.730 but also the opportunity to roll lessons learned 18:07.730 --> 18:10.430 back into the program has been pretty exciting for us. 18:12.080 --> 18:15.170 LCS mission modules, a lot of success there, 18:15.170 --> 18:18.190 so surface, we're basically done. 18:18.190 --> 18:22.870 The Hellfire is deployed on LCS-7, the Detroit, 18:22.870 --> 18:26.010 right now, down at Fourth Fleet, 18:26.010 --> 18:28.060 tested off the LCS-6, 18:28.060 --> 18:30.360 on the Independence-variant earlier this year. 18:31.373 --> 18:36.373 ASW, we have the packages installed on the USS Fort Worth 18:36.490 --> 18:38.930 right now, we go to IOT & E this year, 18:38.930 --> 18:41.940 testing has already started, actually have deployed 18:41.940 --> 18:44.993 the BDS off of the Fort Worth. 18:45.880 --> 18:49.450 And then MCM, the aviation systems were certified, 18:49.450 --> 18:52.290 have been tested on both variants and we're moving rapidly 18:52.290 --> 18:55.930 towards the IOT & E, all of the systems right now, 18:55.930 --> 18:56.910 are in test. 18:56.910 --> 19:00.100 So Nightfish went OA, and Milestone CE 19:00.100 --> 19:03.363 and U.S., the USV, all the systems are in test. 19:05.340 --> 19:09.480 That's LCS, next FFGX, so solid path for this 19:09.480 --> 19:13.210 multi-mission frigate, or as I like call it, 19:13.210 --> 19:16.430 we don't call it that enough, it's an Aegis frigate. 19:16.430 --> 19:20.170 And we are part of that Aegis weapon system. 19:20.170 --> 19:22.740 We have bids at hand on frigate headed towards 19:22.740 --> 19:27.170 milestone B, and we're on path for contract award 19:27.170 --> 19:30.020 this year, so a lot of great things happening in frigate. 19:31.260 --> 19:34.363 Unmanned, a lot of discussion here, but unmanned, 19:35.270 --> 19:39.870 very early stages, we are doing a lot of things here, 19:39.870 --> 19:43.460 foundational efforts, so beyond just the craft, 19:43.460 --> 19:45.690 the enabling technology that we're doing, 19:45.690 --> 19:47.703 the unmanned maritime architecture, 19:48.930 --> 19:52.880 just really key to our unmanned efforts, prototypes, 19:52.880 --> 19:55.520 the efforts we've done with the two Overlord vessels 19:55.520 --> 19:58.870 that we have under the OSD SCO program, 19:58.870 --> 20:01.050 have really paid a lot of dividends. 20:01.050 --> 20:04.230 Sea Hunter, really successful on this, 20:04.230 --> 20:06.403 now transition actually to PO USC, 20:07.530 --> 20:10.550 NUSV, which is gonna be our distributing sensing 20:10.550 --> 20:14.270 platform, we have bids in hand for the FY 19 vessel 20:14.270 --> 20:15.783 are in source selection there. 20:16.700 --> 20:19.775 LUSV, now this is one that there's obviously been 20:19.775 --> 20:22.970 a lot of discussion, a lot of back and forth, 20:22.970 --> 20:25.210 with the Congress, which I think is pretty healthy, 20:25.210 --> 20:28.810 I read some history of Naval aviation and it may not 20:28.810 --> 20:30.660 surprise you to know that when we first started 20:30.660 --> 20:32.820 in Naval aviation, it wasn't like okay, 20:32.820 --> 20:34.690 we're just gonna start a production line, 20:34.690 --> 20:36.300 and immediately start building, 20:36.300 --> 20:37.630 there was a lot of back-and-forth, 20:37.630 --> 20:39.780 a lot of testing, a lot of prototypes. 20:39.780 --> 20:43.610 So we have a lot of discussion going on there, 20:43.610 --> 20:47.650 but the key pieces are prototypes where we received funds 20:47.650 --> 20:50.660 for two more prototypes, which is key to us testing 20:50.660 --> 20:52.450 reliability and autonomy. 20:52.450 --> 20:54.580 We're gonna start our conceptual design, 20:54.580 --> 20:56.420 and we know we're having a robust discussion 20:56.420 --> 21:01.080 with the Congress and others about the weapons capacity 21:01.080 --> 21:03.430 for LUSV, and I think that that's healthy 21:03.430 --> 21:05.785 and that's gonna continue, and I'm confident that we're 21:05.785 --> 21:07.020 going to move forward with a good plan. 21:07.020 --> 21:09.100 And then just the last thing, organizationally, 21:09.100 --> 21:12.807 the SURF DEVRON has stood up, has already done great things 21:12.807 --> 21:15.570 has now taken custody of Sea Hunter out there, 21:15.570 --> 21:18.850 so very early in the stages of unmanned 21:18.850 --> 21:21.060 but I think we're doing all the right things 21:21.060 --> 21:23.980 in terms of prototyping, getting us set up organizationally, 21:23.980 --> 21:27.450 just really healthy and I think we're still on a good track. 21:27.450 --> 21:30.480 So, I'm proud to be at PEO USC, we're doing great things 21:30.480 --> 21:33.160 and proud to be part of this team that's building 21:33.160 --> 21:34.530 this great Navy of ours. 21:34.530 --> 21:35.930 Thank you. 21:35.930 --> 21:37.320 - Okay, Admiral Galinis. 21:37.320 --> 21:38.153 - Sir, thank you. 21:38.153 --> 21:40.530 Hey, good morning everybody, it's a real privilege 21:40.530 --> 21:42.980 to be here, I'm Bill Galinis, 21:42.980 --> 21:46.710 and along with Matt Sermon and Lisa Ridoca, 21:46.710 --> 21:50.520 have the privilege of leading PEO Ships 21:50.520 --> 21:52.480 and working with our industry counterparts. 21:52.480 --> 21:55.240 This time last year I think Matt and Lisa were just 21:55.240 --> 21:58.650 coming into their positions as our executive directors, 21:58.650 --> 22:00.660 and so they've just finished their first year, 22:00.660 --> 22:03.740 and again, very grateful to have them on board. 22:03.740 --> 22:07.010 Just real quickly, kind of around the portfolio, 22:07.010 --> 22:09.010 let me start with the DDG-51 class, 22:09.010 --> 22:12.517 which again continues to make great strides. 22:12.517 --> 22:14.920 The ship is in stable production, we're building 22:14.920 --> 22:19.180 Flight IIA ships right now, in both shipyards, 22:19.180 --> 22:23.180 we're gonna deliver 119 here early next year, 22:23.180 --> 22:26.050 and then 118 up at Bath, probably a little bit later 22:26.050 --> 22:28.850 in the year, so again, both yards stable production 22:28.850 --> 22:30.470 on the Flight IIA. 22:30.470 --> 22:33.120 The Flight III program, '20's a big year 22:33.120 --> 22:34.773 for the Flight III program. 22:36.330 --> 22:39.710 We're really heavily into the integration efforts, 22:39.710 --> 22:42.950 the land-based integration efforts at Philadelphia 22:42.950 --> 22:45.320 where we're delivering a lot of the power components, 22:45.320 --> 22:48.070 that's everything from generators to switch gears, 22:48.070 --> 22:52.620 and switchboards and then at the Combat System 22:52.620 --> 22:55.800 Engineering Development Center in Morristown, 22:55.800 --> 22:59.290 a lot of the radar and a lot of the combat system 22:59.290 --> 23:00.530 components are coming together, 23:00.530 --> 23:03.470 so a big year from that perspective. 23:03.470 --> 23:06.470 We laid the keel for the first Flight III ship 23:06.470 --> 23:10.700 on the Gulf Coast at Ingalls last November. 23:10.700 --> 23:13.280 That ship is now about 30% complete, 23:13.280 --> 23:16.270 and you know the production work is going very well 23:16.270 --> 23:19.650 down there on the first Flight III on the Gulf Coast. 23:19.650 --> 23:22.010 We'll lay the keel for the second Flight III 23:22.010 --> 23:23.910 up in Bath later this year. 23:23.910 --> 23:26.671 So again, the DDG-51 program continues 23:26.671 --> 23:28.657 to make good progress. 23:28.657 --> 23:32.500 DDG-1000, again, three ship program as I mentioned, 23:32.500 --> 23:34.723 I don't think it's any secret, you know, 23:34.723 --> 23:37.210 the combat system activation availability 23:37.210 --> 23:42.210 for DDG-1000 was hard and to the credit of BAE 23:42.449 --> 23:44.480 and the Navy Waterfront team in San Diego, 23:44.480 --> 23:46.997 we got through that early last year 23:46.997 --> 23:49.930 and the ship is now well into the combat system 23:49.930 --> 23:54.730 test effort, well over 60% of that, but again, 23:54.730 --> 23:56.840 working through a first-time integration 23:56.840 --> 23:59.800 of a complex combat system, the hardware and the software 23:59.800 --> 24:02.383 on the ship, really for the first time, 24:02.383 --> 24:05.660 really kind of gives you some insight to the dividends 24:05.660 --> 24:07.800 of doing a lot of the land-based integration work 24:07.800 --> 24:10.420 that we're doing on the 51 and that's quite frankly 24:10.420 --> 24:12.380 envisioned for the large surface combatant, 24:12.380 --> 24:13.650 when we get to that piece. 24:13.650 --> 24:16.890 That being said, the team continues to make good progress. 24:16.890 --> 24:19.199 The ship was underway quite a bit last year, 24:19.199 --> 24:23.160 in 2019, if you heard Captain Smith talk yesterday 24:23.160 --> 24:26.030 along with the CEO from 1000, they talked a lot about 24:26.030 --> 24:26.973 what the ship did. 24:27.830 --> 24:32.303 We're on track to deliver 1000 this spring. 24:33.220 --> 24:36.530 The challenges continue to be with the combat system 24:36.530 --> 24:39.430 test effort in getting through that integration piece, 24:39.430 --> 24:42.580 but the team continues to make good progress there. 24:42.580 --> 24:45.750 1001, going through her combat system activation 24:45.750 --> 24:49.610 availability in San Diego, and again, night and day 24:49.610 --> 24:53.300 from 1000 to 1001, and the team has done an absolutely 24:53.300 --> 24:55.615 tremendous job of rolling a lot of lessons learned 24:55.615 --> 24:57.610 and we're on track to complete that avail 24:57.610 --> 24:59.000 again early this spring. 24:59.000 --> 25:02.330 We'll get her back to sea and start lighting off 25:02.330 --> 25:05.200 and testing her combat system as well. 25:05.200 --> 25:07.720 And then 1002 is kind of 25:07.720 --> 25:09.670 in the final stages of construction. 25:09.670 --> 25:12.790 We expect to take her to trials later this year 25:12.790 --> 25:15.185 with the delivery most likely probably in early 25:15.185 --> 25:16.887 calendar year 2021. 25:18.030 --> 25:20.700 So again, that's a platform that continues to make 25:20.700 --> 25:24.460 good progress, brings a lot of capability to the Navy. 25:24.460 --> 25:26.730 It's providing Navy leadership, I'll say, with a lot 25:26.730 --> 25:30.330 of options in terms of potential future capability 25:30.330 --> 25:31.163 and mission sets. 25:31.163 --> 25:34.400 I think everybody knows a few years ago, 25:34.400 --> 25:39.400 we changed the mission set for that platform 25:39.740 --> 25:41.690 from a land attack destroyer 25:41.690 --> 25:43.350 to a surface strike mission, 25:43.350 --> 25:47.130 and we're incorporating that capability on that platform 25:47.130 --> 25:48.340 as we go forward. 25:48.340 --> 25:52.800 On the amphibious ship side, the LPD 17 class, 25:52.800 --> 25:55.530 we've completely transitioned now to the Flight II, 25:55.530 --> 26:00.530 so LPD 28 and 29 in construction on the Gulf Coast, 26:00.640 --> 26:05.250 30 is on contract and getting ready to start construction, 26:05.250 --> 26:10.250 LPD 30 is the first absolutely true Flight II baseline ship. 26:10.684 --> 26:12.928 You know 28 and 29, we kind of refer to those ships 26:12.928 --> 26:15.680 as transition ships as we'll be making that transition 26:15.680 --> 26:19.390 from the Flight I's to the Flight II's and we're getting 26:19.390 --> 26:22.340 ready right now to, we're in the contracting phase 26:22.340 --> 26:26.420 for LPD 31 with Ingalls at this point, 26:26.420 --> 26:28.700 and we're working through that. 26:28.700 --> 26:33.650 On the large deck amphib side, LHA7 Tripoli completed 26:33.650 --> 26:36.100 a very successful acceptance trial late last fall 26:36.100 --> 26:38.110 in the October timeframe. 26:38.110 --> 26:42.060 The ship performed very well and we're on track 26:42.060 --> 26:44.803 to deliver that ship here early this year. 26:45.765 --> 26:48.360 And the big game changer for that, what that ship 26:48.360 --> 26:51.074 really brings to the fleet, that will be the first 26:51.074 --> 26:53.280 amphib designed and built 26:53.280 --> 26:56.820 with the joint strike fighter capability included. 26:56.820 --> 26:59.840 And that really is a game changer. 26:59.840 --> 27:04.840 America LHA-6 arrived in Japan late last year. 27:05.750 --> 27:07.410 She was back-fitted with the joint strike fighter 27:07.410 --> 27:10.080 after ship delivery, so 7's the first one 27:10.080 --> 27:12.790 that will be delivered with that full capability, 27:12.790 --> 27:16.410 and we'll see that now on the follow-on ships. 27:16.410 --> 27:20.470 LHA-8 is in construction and doing very well, 27:20.470 --> 27:23.140 and we expect this year we'll start the contracting 27:23.140 --> 27:26.050 approach, or the contracting process rather, 27:26.050 --> 27:29.470 for LHA-9, so we're moving forward on that. 27:29.470 --> 27:32.760 On the Expeditionary and the Sealift side 27:32.760 --> 27:36.010 of the portfolio, again, a lot of tremendous progress, 27:36.010 --> 27:37.600 I think when we were here last year, 27:37.600 --> 27:41.020 we're talking about ESB-5 and some of the challenges 27:41.020 --> 27:44.360 with that coming out of the graving dock casualty 27:44.360 --> 27:45.430 in San Diego. 27:45.430 --> 27:48.620 I will tell you that NASSCO and the Navy Waterfront Team 27:48.620 --> 27:51.470 just did an absolute phenomenal job recovering from that 27:51.470 --> 27:54.010 and we took the ship on trials last year 27:54.010 --> 27:57.430 and performed superbly, just absolutely superb performance. 27:57.430 --> 27:59.560 And we delivered the ship in November 28:00.440 --> 28:03.710 and she's going through her post-delivery efforts now. 28:03.710 --> 28:08.710 On her sister ship, ESP-4, the Woody Williams, 28:09.164 --> 28:13.120 she is finishing up her post shakedown availability 28:13.120 --> 28:14.463 in Norfolk right now. 28:15.420 --> 28:16.970 And again, a lot of great capabilities, 28:16.970 --> 28:19.530 she will deploy later this year to the 6th Fleet, 28:19.530 --> 28:22.740 AOR, working with the Military Sealift Command 28:22.740 --> 28:24.630 and Surfland on that effort, 28:24.630 --> 28:26.560 a lot of good work going on there. 28:26.560 --> 28:28.410 One of the things we're able to do this year 28:28.410 --> 28:30.810 on that platform, on the Woody Williams, 28:30.810 --> 28:32.240 work with Admiral Moton and his team, 28:32.240 --> 28:35.850 was demonstrate a mine warfare capability of integrating 28:35.850 --> 28:39.080 the littoral combat ship mine warfare package 28:39.080 --> 28:41.270 onto Woody Williams and demonstrate a mission set 28:41.270 --> 28:44.210 which was a very successful demonstration. 28:44.210 --> 28:46.720 So, you know, as we get these ships into the fleet 28:46.720 --> 28:51.720 and the polar, the U.S.S. Polar is in the 5th Fleet 28:52.030 --> 28:54.960 right now, and just doing tremendous things. 28:54.960 --> 28:58.480 You know, we're on a path to commission these ships, 28:58.480 --> 29:02.000 they were initially envisioned to be USNS ships, 29:02.000 --> 29:03.280 we're getting ready to commission, 29:03.280 --> 29:04.390 we've already commissioned Polar, 29:04.390 --> 29:06.100 we're going to commission Woody Williams 29:06.100 --> 29:08.660 here in another couple of weeks or so, 29:08.660 --> 29:11.016 and then five will be commissioned, 29:11.016 --> 29:13.020 the Miguel Keith will be commissioned at some point 29:13.020 --> 29:14.930 in the near future. 29:14.930 --> 29:16.960 The Expeditionary Fast Transport ships, 29:16.960 --> 29:19.195 we're making a shift on this, we've talked previously 29:19.195 --> 29:22.560 about high speed medical transport capability 29:22.560 --> 29:25.860 to those platforms, so we've delivered 12 of these ships, 29:25.860 --> 29:27.783 13's in construction right now. 29:29.010 --> 29:32.820 We're gonna contract for an engineering change proposal 29:32.820 --> 29:37.160 on 14, EPF-14 which is under contract with Austal right now 29:37.160 --> 29:39.950 to bring in this medical transport capability 29:39.950 --> 29:42.950 to that platform so when they build that one 29:42.950 --> 29:45.260 will incorporate that in with the build sequence 29:45.260 --> 29:48.970 and then as we contract for EPF-15 this year, 29:48.970 --> 29:51.780 that will have that medical transport capability 29:51.780 --> 29:53.220 as part of the base contract. 29:53.220 --> 29:57.630 So again, they continue to make good progress there. 29:57.630 --> 30:01.540 The Sealift Program, you know '19 was, I'll call it 30:01.540 --> 30:03.450 a little bit of a transition year for us. 30:03.450 --> 30:06.407 You know, as we kind of reevaluate our requirements 30:06.407 --> 30:09.760 and the costs of the ships, the initial cost estimates, 30:09.760 --> 30:13.660 we're coming in higher, we kind of work with, 30:13.660 --> 30:16.290 we've got four shipyards right now under contract 30:16.290 --> 30:18.940 doing studies and really kind of starting with almost 30:18.940 --> 30:22.160 like a baseline, think of a vehicle transport ship, 30:22.160 --> 30:24.630 a commercial car-carrying transport ship, 30:24.630 --> 30:27.450 and then build it up from that baseline set of requirements, 30:27.450 --> 30:29.610 to incorporate some of the unique requirements 30:29.610 --> 30:33.570 that we need for the Navy and the DoD mission. 30:33.570 --> 30:36.830 So think of things like how do we handle ammunition, 30:36.830 --> 30:40.520 some of the heavier cargo that we carry like tanks 30:40.520 --> 30:43.210 and things like that, and what that brings to that ship. 30:43.210 --> 30:47.040 So, and we met with all four teams just before 30:47.040 --> 30:49.470 last December, just before the end of the year, 30:49.470 --> 30:51.150 they're really making good progress there. 30:51.150 --> 30:55.830 So we're, so that program continues to go forward. 30:55.830 --> 31:00.340 We're also working with N-97 on what the recapitalization 31:00.340 --> 31:02.630 of the submarine tenders look like as well. 31:02.630 --> 31:05.820 So, a lot of good work going on there. 31:05.820 --> 31:10.769 In our auxiliary and special mission purpose ships, 31:10.769 --> 31:14.920 we continue to recapitalize the TAO class, 31:14.920 --> 31:18.320 the first two ships are under construction right now 31:18.320 --> 31:21.653 at NASSCO making good progress, 31:23.928 --> 31:25.000 and those will continue, 31:25.000 --> 31:28.350 we're still a little ways away before taking those to trial. 31:28.350 --> 31:30.270 And then we're also, we've got a number of different 31:30.270 --> 31:34.140 auxiliary platforms that we're working with the OPNAV 31:34.140 --> 31:39.140 team on, a new T-AGOS design, we've got some industry 31:39.320 --> 31:41.670 studies planned to start this year. 31:41.670 --> 31:44.990 Another TAG ship, the oceanographic ship for the Navy, 31:44.990 --> 31:49.190 kind of a follow-on designed from TAG-6, this is TAG-67, 31:49.190 --> 31:52.660 so follow-on from TAG-66. 31:52.660 --> 31:55.270 And then we're also recapitalizing our, 31:55.270 --> 32:00.270 our cable laying and cable repair ships. 32:00.460 --> 32:02.740 So those programs are also. 32:02.740 --> 32:05.960 In addition to that, there's a lot of foreign military 32:05.960 --> 32:10.770 sales work going on across the enterprise. 32:10.770 --> 32:13.500 The last platform I just want to touch on briefly, 32:13.500 --> 32:15.073 the large surface combatant. 32:16.093 --> 32:20.800 We had a very good meeting with Navy leadership, 32:20.800 --> 32:24.620 again right before the Christmas holiday there, 32:24.620 --> 32:27.459 we're going to continue to refine the requirements on that. 32:27.459 --> 32:29.590 You know we got some work to do again to bring the cost 32:29.590 --> 32:32.380 down, looking at the capabilities that we want 32:32.380 --> 32:36.920 to bring into that, so think bigger, longer-range weapons, 32:36.920 --> 32:41.500 more computing power, more electrical power on that ship, 32:41.500 --> 32:44.670 so the team has really done a good job looking 32:44.670 --> 32:47.410 at what we're starting this year, 32:47.410 --> 32:50.300 we were funded to do some system integration work, 32:50.300 --> 32:54.270 so the electric ships program office within PEO Ships 32:54.270 --> 32:57.180 working with CO-5, we're putting together, 32:57.180 --> 32:59.560 we've got a pretty good plan on how we want 32:59.560 --> 33:02.500 to try to really start recapitalizing a little bit 33:02.500 --> 33:07.050 some of the test elements that we have up in Philadelphia 33:07.050 --> 33:09.710 to establish an integrated propulsion plant, 33:09.710 --> 33:13.080 an electric propulsion plant test facility up there, 33:13.080 --> 33:16.080 so that work is going on, we'll see more progress 33:16.080 --> 33:19.460 on that as we get deeper into 2020. 33:19.460 --> 33:22.990 So we continue to work that program. 33:22.990 --> 33:25.550 And, with that, I'll turn it over. 33:25.550 --> 33:27.130 - Okay. 33:27.130 --> 33:29.010 All right, Matt Paxton. 33:29.010 --> 33:30.930 - Well Admiral, thank you so much. 33:30.930 --> 33:32.930 It's an honor for Prime Industry to be part of 33:32.930 --> 33:36.080 this family, as the lone civilian up here, 33:36.080 --> 33:37.480 I'm gonna make my comments brief. 33:37.480 --> 33:39.610 I got three quick slides, I just want to give 33:39.610 --> 33:44.610 some background on the trade association I represent. 33:44.650 --> 33:45.910 I'm Matthew Paxton, 33:45.910 --> 33:47.860 President of the Shipbuilders Council of America. 33:47.860 --> 33:48.823 Next slide please. 33:50.071 --> 33:53.910 So, our membership consists of 40 shipyard companies 33:53.910 --> 33:56.740 that own and operate about 83 shipyard facilities 33:56.740 --> 33:58.510 across the United States. 33:58.510 --> 34:01.720 We have 105 supplier companies. 34:01.720 --> 34:04.460 They represent the supply chain of the shipyard industry 34:04.460 --> 34:06.110 and they're really, really integral 34:06.110 --> 34:08.320 to what our trade association does. 34:08.320 --> 34:11.620 In addition we work very closely in strategic partnership 34:11.620 --> 34:13.640 with our ship repair associations. 34:13.640 --> 34:16.700 So we work with all the home ports on ship repair issues, 34:16.700 --> 34:20.160 in fact, we were meeting yesterday on maintenance 34:20.160 --> 34:22.000 and modernization issues for the Navy. 34:22.000 --> 34:23.820 So that's the make-up of the Trade Association. 34:23.820 --> 34:24.723 Next slide please. 34:25.940 --> 34:27.690 I put this slide up here because a lot of my 34:27.690 --> 34:29.408 Board of Directors are in this room. 34:29.408 --> 34:31.510 (audience laughing) 34:31.510 --> 34:32.523 They're watching me. 34:33.560 --> 34:36.920 But I point my Board of Directors out because 34:36.920 --> 34:39.040 the diversity of which this Board is, 34:39.040 --> 34:40.820 but also because they're active. 34:40.820 --> 34:43.120 You'll notice we have three supplier companies 34:43.120 --> 34:47.620 on our Board, and that's the wisdom of our active Board 34:47.620 --> 34:50.370 that said listen, our supply chain is absolutely 34:50.370 --> 34:53.600 critical, we need their inputs at the highest level 34:53.600 --> 34:54.770 of the trade association. 34:54.770 --> 34:57.880 So we have three supplier companies that sit on our Board. 34:57.880 --> 34:58.803 Next slide please. 35:00.020 --> 35:03.360 So beyond Navy shipbuilding, which we care tremendously 35:03.360 --> 35:06.400 about and are active in obviously, we build other 35:06.400 --> 35:09.540 shipyard programs, and our shipyards compete vigorously 35:09.540 --> 35:11.470 in these other government shipbuilding programs. 35:11.470 --> 35:15.530 Obviously, we build every class of Coast Guard vessel, 35:15.530 --> 35:20.530 we work on Army watercraft, we work on NOAH ships, 35:22.230 --> 35:25.780 but the one program we really want to see get kick-started 35:25.780 --> 35:28.690 is recapitalization of the training ships 35:28.690 --> 35:30.300 for our maritime academies. 35:30.300 --> 35:33.000 We heard Administrator Buzby talk a little bit about 35:33.000 --> 35:34.770 this earlier today, but we really need to get on 35:34.770 --> 35:37.070 to the business of building the national security 35:37.070 --> 35:38.590 multi-mission vessel. 35:38.590 --> 35:40.670 It's a game changer in what we can do with our 35:40.670 --> 35:42.670 merchant mariners, so we really want to see that 35:42.670 --> 35:44.170 program go forward. 35:44.170 --> 35:45.950 And the last thing I'd point out is this. 35:45.950 --> 35:47.980 It's really really critical. 35:47.980 --> 35:50.980 Our Board fully supports the Jones Act. 35:50.980 --> 35:53.130 We need to have that commercial-industrial base. 35:53.130 --> 35:56.760 If we don't have that to help support the supply chain, 35:56.760 --> 35:59.400 to help support what we're doing in our Navy shipyards, 35:59.400 --> 36:01.310 building our Coast Guard assets, almost every one 36:01.310 --> 36:04.370 of our shipyards that is building a Coast Guard asset, 36:04.370 --> 36:06.300 cut their teeth on commercial work. 36:06.300 --> 36:08.730 So we really need to maintain that industrial base. 36:08.730 --> 36:11.780 So on behalf of private industry, I'm grateful to be here, 36:11.780 --> 36:13.420 Admiral, and I look forward to discussion. 36:13.420 --> 36:15.540 - Yeah, thanks Matt, appreciate it. 36:15.540 --> 36:17.640 - Okay, so we're in the section where you can 36:17.640 --> 36:19.370 come up and ask questions. 36:19.370 --> 36:23.090 While the first person's trying to get up to the mic, 36:23.090 --> 36:25.450 I'll get us started with a couple of questions. 36:25.450 --> 36:28.070 Thanks for those remarks Matt, I think we'll stay 36:28.070 --> 36:30.460 with one of the things you talked about there, 36:30.460 --> 36:33.450 you mentioned supply industrial base, 36:33.450 --> 36:36.995 second tier, third tier below the prime shipholders, 36:36.995 --> 36:38.100 I think it's a challenge for all, 36:38.100 --> 36:40.080 I'm gonna throw this question out to everybody 36:40.080 --> 36:43.280 on the panel, as we try and grow the size 36:43.280 --> 36:46.560 of the force to 355, we tend to focus a lot 36:46.560 --> 36:49.060 of our efforts on the Tier One builders, 36:49.060 --> 36:52.210 but clearly we've got some challenges on supply base 36:52.210 --> 36:55.540 as well, so I'd like you to discuss some examples 36:55.540 --> 36:57.660 and recommendations, some things that we should be 36:57.660 --> 37:01.518 achieving to ensure we've got a more robust supply chain 37:01.518 --> 37:03.668 supporting the ship building going forward. 37:04.620 --> 37:06.070 - I'll start it off, Admiral. 37:08.235 --> 37:10.540 You know we obviously care greatly about Navy ship building. 37:10.540 --> 37:12.120 That's why we're here today. 37:12.120 --> 37:14.220 But if I was looking out there tell you what I thought 37:14.220 --> 37:15.173 was concerning me, 37:15.173 --> 37:18.230 I would say it's large commercial vessel construction. 37:18.230 --> 37:22.660 And what if another shipyard were to go away. 37:22.660 --> 37:25.140 We need to have as much competition as we possibly can 37:25.140 --> 37:29.730 so we need to see, as an industry, we're very proud 37:29.730 --> 37:32.220 of the fact that we've built out the tanker fleet 37:32.220 --> 37:33.720 at the height of the oil boom. 37:34.580 --> 37:37.340 Immediately we had to pivot and start building tankers 37:37.340 --> 37:39.050 for that oil market and we did it, 37:39.050 --> 37:41.520 and we built that market out successfully. 37:41.520 --> 37:44.010 Right now our shipyards are completing the build-out 37:44.010 --> 37:47.070 of the railroads and container ships of the non-contiguous 37:47.070 --> 37:50.650 fleets, we heard Admiral Buzby talk about this earlier, 37:50.650 --> 37:53.840 we have 99 ships, large ocean-going ships in the commercial 37:53.840 --> 37:56.640 fleet, it's really important that we maintain that 37:56.640 --> 37:59.160 commercial-industrial base, if that were to go away, 37:59.160 --> 38:01.010 it becomes harder and harder to justify hey, 38:01.010 --> 38:02.350 we got to build things here. 38:02.350 --> 38:05.170 So the one thing I would say to this panel, 38:05.170 --> 38:08.430 we do think recapitalization of the auxiliary fleet 38:08.430 --> 38:13.060 is critical, the CHAMP ship is not a $1.2 billion ship, 38:13.060 --> 38:17.040 it can become a much, much cost-effective ship if we have 38:17.040 --> 38:20.250 serious production, if we get the requirements right, 38:20.250 --> 38:23.480 and we have a long horizon to build that ship out. 38:23.480 --> 38:25.720 I think the industrial base will step up and there will be 38:25.720 --> 38:27.293 some yards that might not be building Navy ships, 38:27.293 --> 38:29.070 that will jump in and compete 38:29.070 --> 38:31.958 for that auxiliary recapitalization. 38:31.958 --> 38:35.168 - Thanks, anybody else on supply chain management? 38:35.168 --> 38:36.010 - Yes sir, I'll take. 38:36.010 --> 38:39.630 So one of the things we've done in PEO Ships is, 38:39.630 --> 38:42.596 again working with our shipyard, 38:42.596 --> 38:45.163 the major shipyards that we have contracts with. 38:46.140 --> 38:49.923 Looking into some of the major system components 38:49.923 --> 38:54.010 and equipment suppliers is where we have seen 38:54.010 --> 38:58.670 areas to potentially improve them, have been able 38:58.670 --> 39:01.590 to actually make some, I'll say a limited amount 39:01.590 --> 39:06.017 of investment, to improve through-put in the capacity 39:06.017 --> 39:08.220 for some of these suppliers. 39:08.220 --> 39:09.913 But I will tell you, with this effort, 39:09.913 --> 39:13.450 it's kind of demonstrated to us, 39:13.450 --> 39:15.310 is we probably need to do, 39:15.310 --> 39:17.810 I'll say a better job of working with the shipyards. 39:17.810 --> 39:20.810 So the shipyards generally have the contracts in place 39:20.810 --> 39:22.940 with the supply chain. 39:22.940 --> 39:25.620 We generally work through the shipyards, 39:25.620 --> 39:27.910 but there's probably a little bit more that we can do 39:27.910 --> 39:31.330 maybe in terms of strengthening the supply chain 39:31.330 --> 39:33.450 and really getting a better assessment of where 39:33.450 --> 39:34.680 some of our challenge areas are. 39:34.680 --> 39:37.030 The submarine community has done, I think, 39:37.030 --> 39:40.677 a pretty good job of this, you know, PEO Subs 39:40.677 --> 39:44.710 started under Mike Javley, now Scott Papano, 39:44.710 --> 39:46.700 and Dave Goggins have kind of taken that on. 39:46.700 --> 39:49.100 They've done a really good job kind of looking across 39:49.100 --> 39:50.660 the submarine supply base. 39:50.660 --> 39:53.170 We're kind of leveraging that and working 39:53.170 --> 39:55.390 with Secretary Geurts and Desmond ships 39:55.390 --> 39:58.650 in particular to kind of expand that focus 39:58.650 --> 39:59.980 a little bit within PEO Ships. 39:59.980 --> 40:02.940 So that's an effort we really, we kind of started 40:02.940 --> 40:06.070 a little bit in 2019, we've got some more plans 40:06.070 --> 40:07.570 for that in 2020. 40:07.570 --> 40:08.960 - Okay, thanks. 40:08.960 --> 40:12.690 - Just to briefly add on that, so first of all, 40:12.690 --> 40:15.030 we're involved in that effort, so with a couple 40:15.030 --> 40:16.660 of key shipbuilding programs. 40:16.660 --> 40:18.640 We're gonna work closely obviously with PEO Ships, 40:18.640 --> 40:21.750 so that it's a holistic look, and have done that 40:21.750 --> 40:24.490 in the past, and part of the RDA efforts 40:24.490 --> 40:26.550 that Admiral Galinis mentioned as well. 40:26.550 --> 40:28.880 I mean just for a frigate, this was a pretty interesting 40:28.880 --> 40:33.610 discussion that we had as part of the authorization 40:33.610 --> 40:37.300 appropriations process this year and the domestic sourcing 40:37.300 --> 40:38.960 provisions for frigate. 40:38.960 --> 40:41.610 I think we said all along that we were very supportive 40:41.610 --> 40:44.780 of the policy of moving to the more robust domestic 40:44.780 --> 40:47.440 base, we wanted to do it in such a way that we were able 40:47.440 --> 40:52.440 to keep frigate on-track so that because of its importance. 40:52.950 --> 40:56.500 I think where we ended up was a pretty good way 40:56.500 --> 41:00.610 of doing that as far as we do have a set limit 41:00.610 --> 41:02.690 with the 11th frigate, but we have a requirement 41:02.690 --> 41:05.030 to look at accelerating which we take very seriously. 41:05.030 --> 41:09.170 So, I think frigate was at a good place but we've got 41:09.170 --> 41:10.757 more work to do there that we sign up. 41:10.757 --> 41:13.520 And I guess the last thing I'll say is the conversations 41:13.520 --> 41:18.520 with the shipbuilders for sure, but with, 41:20.000 --> 41:22.150 obviously not on contractual matters, but talking 41:22.150 --> 41:24.930 to the suppliers has been really helpful to me, 41:24.930 --> 41:26.810 individual companies. 41:26.810 --> 41:31.280 I had a pretty robust discussion a month or so ago 41:31.280 --> 41:34.800 with the American Shipbuilding Suppliers Association 41:34.800 --> 41:36.520 which was really interesting. 41:36.520 --> 41:37.743 I got a lot of great feedback from them. 41:37.743 --> 41:40.850 I think they heard my perspective so just having 41:40.850 --> 41:43.300 that conversation I think is a key piece as well. 41:44.410 --> 41:45.870 - Okay. 41:45.870 --> 41:47.970 Let me, I think the first person that was brave enough 41:47.970 --> 41:51.254 to stand up is over here by the podium, so sir, over to you. 41:51.254 --> 41:54.754 (audience member off mic) 41:56.990 --> 41:59.220 - All right I'll just use my swell voice. 41:59.220 --> 42:00.053 - It's on now. 42:01.010 --> 42:02.510 - Good, now I'm yelling in it. 42:03.880 --> 42:05.910 So Tom Weatherall, General Dynamics NASSCO, 42:05.910 --> 42:06.803 this is for Matt. 42:08.160 --> 42:10.900 Last year the 30 year shipbuilding plan 42:10.900 --> 42:12.623 in the auxiliary section, 42:14.930 --> 42:18.060 Navy indicated that their reason for delaying 42:18.060 --> 42:20.220 the start of the Sealift Program 42:20.220 --> 42:25.220 beyond the congressionally mandated date was the result 42:25.430 --> 42:29.130 of quote the struggling commercial shipbuilding industry 42:29.130 --> 42:33.740 unquote, and I'm wondering if you might give us 42:33.740 --> 42:37.990 your perspective on that and tell us specifically 42:37.990 --> 42:39.593 how the SCA reacted to it. 42:40.800 --> 42:41.850 - Well thank you Tom. 42:43.220 --> 42:45.720 First of all, we know there's healthy competition 42:45.720 --> 42:49.160 for every SEN dollar, and we are grateful for the last 42:49.160 --> 42:52.200 several years of robust funding that's gone 42:52.200 --> 42:53.330 to the SEN account. 42:53.330 --> 42:55.890 We find it discouraging that auxiliary ships 42:55.890 --> 42:57.780 are always one year outside the fitup. 42:57.780 --> 42:59.630 We would like to see us to get on to the business 42:59.630 --> 43:00.463 of doing that. 43:00.463 --> 43:03.550 I understand how difficult it is with the scarce dollars 43:03.550 --> 43:07.010 and some of the assets that we have to recapitalize. 43:07.010 --> 43:11.520 I would say private industry is proud, 43:11.520 --> 43:14.670 proud of what we do across the waterfront. 43:14.670 --> 43:17.490 I think NASSCO's a great example of the hustle 43:17.490 --> 43:19.470 that can go on sometimes where you're out there 43:19.470 --> 43:21.990 hustling for commercial work and you went a month 43:21.990 --> 43:24.370 without Navy work, and you're able to bridge that gap 43:24.370 --> 43:25.420 with commercial work. 43:25.420 --> 43:28.020 So I think that's kind of the message that we want 43:28.020 --> 43:31.010 to bring from the private sector is that we benchmark 43:31.010 --> 43:32.990 ourselves against international standards, 43:32.990 --> 43:35.170 we're not sitting here idly by saying hey 43:35.170 --> 43:38.030 we're gonna get a contract and make good. 43:38.030 --> 43:40.098 We're trying to improve, we're the country 43:40.098 --> 43:42.760 that build the first LNT-powered container ship. 43:42.760 --> 43:45.300 That happened here because of our innovation. 43:45.300 --> 43:49.130 So I think we do have struggles across the waterfront 43:49.130 --> 43:50.880 in some of the industrial base aspects, 43:50.880 --> 43:54.740 there are pinch-points, but I do think we are doing 43:54.740 --> 43:58.340 everything we can under the auspices of the Jones Act, 43:58.340 --> 44:00.730 under the auspices of the government shipbuilding programs 44:00.730 --> 44:02.280 that we compete vigorously for. 44:03.260 --> 44:05.800 We gave up the cost differential subsidy in the 1980's 44:05.800 --> 44:10.420 and ceded a lot of territory to the international market. 44:10.420 --> 44:13.620 Asian shipyards did not own 90% of the market share 44:13.620 --> 44:14.460 in the 1980's. 44:14.460 --> 44:15.640 They do now. 44:15.640 --> 44:19.540 And so we, as a fundamental matter, have to look at 44:19.540 --> 44:22.760 do we want to make shipbuilding in our ship industrial 44:22.760 --> 44:24.750 base a national prerogative, a national priority, 44:24.750 --> 44:26.530 I think we do when it comes to Navy shipbuilding, 44:26.530 --> 44:28.840 I think we do when it comes to Coast Guard shipbuilding. 44:28.840 --> 44:31.470 I think we need to make that a larger statement 44:31.470 --> 44:33.870 when we go out to the commercial side of things. 44:35.940 --> 44:36.773 - Mark. 44:36.773 --> 44:38.310 - [Mark] Good morning, Admiral. 44:38.310 --> 44:41.890 This is somewhat tangentially tied in to the 44:41.890 --> 44:45.710 industrial base, but one of the ways historically 44:45.710 --> 44:49.100 to broaden that industrial base as well as to build 44:49.100 --> 44:51.290 partnerships and alliances to have robust foreign 44:51.290 --> 44:53.260 military sales programs. 44:53.260 --> 44:56.150 Admiral Moton, you've got multi-mission surface 44:56.150 --> 45:00.420 combatant program, that with our Saudi partners, 45:00.420 --> 45:03.180 if I could just ask kind of in a line, 45:03.180 --> 45:05.870 Admiral Small, Admiral Moton, Admiral Galinis, 45:05.870 --> 45:10.430 what of your emerging programs in each of your PEOs 45:10.430 --> 45:15.430 do you see as having the best potential for foreign 45:15.440 --> 45:18.720 military sales partnership programs and FMS cases, 45:18.720 --> 45:22.010 and in the case of Admiral Moton, with multi-mission 45:22.010 --> 45:24.630 surface combatant, do you see additional potential 45:24.630 --> 45:27.043 partner nations signing up for that? 45:29.870 --> 45:32.757 - Okay, you want to go first? 45:32.757 --> 45:36.366 - I mean, we take our international, 45:36.366 --> 45:41.366 deepening those partnerships, very, very seriously 45:42.510 --> 45:45.440 and we, our view is we want to be able, 45:45.440 --> 45:47.640 when our Navies work together, we don't want them 45:47.640 --> 45:52.640 to be interoperable, we want them to be integrated. 45:53.630 --> 45:57.720 And so we take the approach of basically everything 45:57.720 --> 46:00.510 that we're working on, we want to be able to share 46:00.510 --> 46:02.853 with our partners, and that's, 46:03.700 --> 46:06.440 so certainly standard missile has a long history 46:06.440 --> 46:10.490 of, there's a lot of international interest in that, 46:10.490 --> 46:12.780 the Nex variant of standard missiles, same thing, 46:12.780 --> 46:14.270 we're working on that. 46:14.270 --> 46:18.620 Aegis, we have Aegis suites around the world, 46:18.620 --> 46:23.250 those are Navies that you know, operate seamlessly 46:23.250 --> 46:26.073 together, so the more we can continue to do that, 46:26.940 --> 46:30.623 so Aegis is one we're constantly working. 46:33.394 --> 46:35.320 It's really about everything. 46:35.320 --> 46:39.170 Electronic warfare, we work together with many nations 46:39.170 --> 46:42.100 and it's not just FMS, there's plenty of DCS, 46:42.100 --> 46:45.120 we have a lot of cooperative development activities, 46:45.120 --> 46:47.450 at the highest levels of technology 46:48.400 --> 46:52.010 across the, certainly with Five Eyes and the rest 46:52.010 --> 46:54.300 of our friends and allies around the world. 46:54.300 --> 46:59.300 So, we have a very healthy FMS and cooperative portfolio. 47:05.190 --> 47:09.477 - So, first you're first question as you mentioned 47:09.477 --> 47:13.470 we have four multi-mission service combatants 47:13.470 --> 47:16.883 under contract right now for the Saudi Arabian Navy. 47:17.830 --> 47:20.520 Under contract with Lockheed Martin, 47:20.520 --> 47:22.820 Fincantieri Marinette Marine is their builder. 47:24.210 --> 47:27.980 We've cut steel, we're into production, independentized 47:27.980 --> 47:30.560 that contract back December, that's going well. 47:30.560 --> 47:32.950 You asked me directly about the potential 47:32.950 --> 47:37.540 for additional there, from additional countries. 47:37.540 --> 47:41.380 We've had some interest from a couple of other countries 47:41.380 --> 47:44.120 that have asked for some input, I don't think frankly 47:44.120 --> 47:46.730 any of those requests are at the stage yet 47:46.730 --> 47:50.700 where I'm ready to name names, so I won't do that, 47:50.700 --> 47:52.360 but we have had some additional interest 47:52.360 --> 47:54.270 that we're looking at. 47:54.270 --> 47:57.863 As far as future capability, you know, 48:00.160 --> 48:02.560 there's a pretty broad frigate market out there, 48:03.490 --> 48:07.120 we'll see what happens, our focus in PEO USC 48:07.120 --> 48:10.030 on frigate right now is, the conceptual design 48:10.030 --> 48:14.510 is done so we are focused on being ready to start that. 48:14.510 --> 48:18.300 DeDelmozado and Mazdo will be and with that source 48:18.300 --> 48:21.570 selection, so certainly for the future, 48:21.570 --> 48:24.293 there is probably likely to be some discussions there. 48:25.220 --> 48:28.430 And our ability to have sort of set up an ability 48:28.430 --> 48:33.210 to do that kind of FMS work I think is an advantage. 48:33.210 --> 48:36.550 On the last piece I wanted to mention was unmanned. 48:36.550 --> 48:39.910 So there is a lot of interest on unmanned, 48:39.910 --> 48:42.740 both on the USV side and the UUB side 48:43.640 --> 48:45.730 from multiple countries. 48:45.730 --> 48:48.363 We work very closely with our close allies, 48:51.991 --> 48:55.250 we are a working on, the broader Navy is working on 48:55.250 --> 48:58.600 the policy document that's going to govern release 48:58.600 --> 49:01.930 of things unmanned, that's something that's in progress 49:01.930 --> 49:04.403 right now, so we're getting set up for that. 49:06.360 --> 49:09.760 And we also are doing a lot of cooperative research 49:09.760 --> 49:12.440 and development, we participated, we were one of the lead 49:12.440 --> 49:16.840 participants in NATO ran an unmanned exercise this year 49:16.840 --> 49:19.410 a few months ago in Portugal that was really effective. 49:19.410 --> 49:21.550 Multiple unmanned vessels from different countries 49:21.550 --> 49:23.030 integrated so... 49:23.030 --> 49:25.460 I think there's definitely future in unmanned, 49:25.460 --> 49:27.790 all the way from, probably more likely on the smaller 49:27.790 --> 49:32.590 craft, but a broad interest based on the questions 49:32.590 --> 49:33.540 that we're getting. 49:34.637 --> 49:36.837 So I think there's a lot of potential there. 49:38.160 --> 49:41.240 - Yeah, I'll start with some of the work that we do 49:41.240 --> 49:44.900 in our foreign military sales organization already 49:44.900 --> 49:47.550 with the Navy International Program Office with NIPO. 49:48.463 --> 49:50.650 So we do a lot of work, principally in kind of 49:50.650 --> 49:53.190 obviously the smaller boats, these are patrol boat 49:53.190 --> 49:57.680 sized, but we'll get the requirements from foreign 49:57.680 --> 50:00.900 countries and we'll contract directly with shipyards 50:00.900 --> 50:02.950 here in the United States, again, probably more 50:02.950 --> 50:05.510 on the smaller size, patrol boat size. 50:05.510 --> 50:08.770 You know, I would say occasionally we get questions 50:08.770 --> 50:11.557 on some of our larger platforms but I can't say 50:11.557 --> 50:14.730 there've been any consistent or any consistent interest 50:14.730 --> 50:19.730 in platforms like an LBD or some of the larger ships 50:20.030 --> 50:21.775 that we're building. 50:21.775 --> 50:26.700 The other area potentially, some of the commercial-based 50:26.700 --> 50:31.700 auxiliary Sealift ships, the Navy again, so we've had 50:31.890 --> 50:34.420 again a couple of inquiries, we're still obviously 50:34.420 --> 50:37.810 very, very early in the Sealift recapitalization effort 50:37.810 --> 50:41.770 but depending on how that shakes out there might 50:41.770 --> 50:42.920 be some interest there. 50:43.770 --> 50:45.632 Our principle interface with other countries 50:45.632 --> 50:47.150 and everything is really through our Foreign Military 50:47.150 --> 50:51.080 Sales Organization on the patrol boat size boats 50:51.080 --> 50:52.300 that we build for them. 50:52.300 --> 50:53.480 - [Audience Member] Thank you, John Harper 50:53.480 --> 50:55.170 with National Defense Magazine. 50:55.170 --> 50:58.640 Admiral Galinis, you mentioned the DDG-1000. 50:58.640 --> 51:01.330 Can you flesh out or provide more details 51:01.330 --> 51:03.340 about some of the changes that are being made 51:03.340 --> 51:05.750 to accommodate that surface strike mission 51:08.320 --> 51:11.051 and just from a production perspective, 51:11.051 --> 51:11.884 if Navy leadership and Congress decided to buy more 51:14.336 --> 51:18.293 than three DDG-1000's, would that be feasible 51:18.293 --> 51:20.328 from an industrial base or program perspective? 51:20.328 --> 51:21.522 - So, let me, I'll start with the last part 51:21.522 --> 51:22.355 of your question first, 51:22.355 --> 51:24.400 which is a follow on DDG-1000. 51:24.400 --> 51:25.960 I would tell you right now there's no plan 51:25.960 --> 51:28.483 to extend the class beyond the three ships 51:28.483 --> 51:32.590 that we either delivered or have in construction right now. 51:32.590 --> 51:37.590 And then, in terms of the strike piece, you know, 51:38.290 --> 51:42.361 we're looking at some new weapon systems, okay, 51:42.361 --> 51:47.361 SM-6, advanced versions of Tomahawk, some mission 51:47.670 --> 51:51.230 planning capability to improve mission planning capability 51:51.230 --> 51:53.640 on the ship, those are the principle areas that get us 51:53.640 --> 51:57.520 to that strike variant, if you will, 51:57.520 --> 51:58.723 or that new mission set. 52:00.350 --> 52:02.120 The other thing that I would add again, 52:02.120 --> 52:05.723 just the size of the ship, 52:06.590 --> 52:08.330 we've done a lot of testing on the hull form, 52:08.330 --> 52:11.230 there was some early concerns about how the ship 52:11.230 --> 52:12.740 would handle in heavy weather. 52:12.740 --> 52:14.860 I would tell you we're more than half-way through 52:14.860 --> 52:18.760 that testing, that's going very well, so that platform, 52:18.760 --> 52:22.102 the size of the platform, the electric plant that it has, 52:22.102 --> 52:25.810 it does provide a lot of options I think for Navy leadership 52:25.810 --> 52:28.760 as we kind of think our way through that a little bit more. 52:29.689 --> 52:32.140 - [Audience Member] What are you plans for integrating 52:32.140 --> 52:35.723 directed energy (muffled)? 52:37.352 --> 52:39.418 - I probably couldn't touch on that too much. 52:39.418 --> 52:44.010 I mean, again, it gets back to some of the options 52:44.010 --> 52:47.683 that the ship design, the power architecture provide, 52:50.320 --> 52:52.010 it's possible we could put something on there, 52:52.010 --> 52:55.393 but I don't want to talk about that right now. 52:56.466 --> 52:57.410 - Yeah, we're going to operate this panel 52:57.410 --> 52:59.810 under the premise of make news but not new news 52:59.810 --> 53:01.355 here today, so 53:01.355 --> 53:02.627 (audience laughing) 53:02.627 --> 53:04.850 as much as possible, I learned a lesson from Sean's 53:04.850 --> 53:05.810 tactic a couple years ago. 53:05.810 --> 53:06.820 Doug, please. 53:06.820 --> 53:08.940 - I just wanted to follow up on the surface strike thing. 53:08.940 --> 53:12.020 So our ability to deliver that type of capability 53:12.020 --> 53:15.230 to Zumwalt is really part of the larger strategy 53:15.230 --> 53:20.230 the Navy has of making our missile systems more offensive, 53:20.530 --> 53:25.150 and so the fact that we have an offensive strike capability 53:25.150 --> 53:29.030 in missiles that fit within the inherently modular 53:29.030 --> 53:31.790 launchers on Zumwalt allows us to bring that capability. 53:31.790 --> 53:35.600 So it's not a huge stretch I guess is the point. 53:35.600 --> 53:40.100 It's really about as these ships get operated 53:40.100 --> 53:42.260 more and more we learn about all of these incredible 53:42.260 --> 53:47.260 capabilities, there's a lot of flexibility and modularity 53:47.780 --> 53:50.180 for us to be able to take on missions like that. 53:51.780 --> 53:52.613 Hope that helps. 53:55.990 --> 53:58.450 - So Vice Admiral Moore, I'm Francis Spencer 53:58.450 --> 54:00.490 and I'm with Philadelphia Gear. 54:00.490 --> 54:03.890 Appreciate a point that you raised at the beginning 54:03.890 --> 54:07.410 of the Q & A about major component suppliers 54:07.410 --> 54:10.470 and the health of the overall industrial base. 54:10.470 --> 54:14.020 In the main reduction gear market, we are fortunate 54:14.020 --> 54:17.440 to be owned by a Fortune 500 corporation, 54:17.440 --> 54:21.160 the Timpkin Company, our company, Philadelphia Gear 54:21.160 --> 54:25.200 is stable, well-funded, but the production 54:25.200 --> 54:28.750 of our product does depend upon a large universe 54:28.750 --> 54:31.090 of suppliers within the domestic market 54:31.090 --> 54:34.552 and they are not all blessed with the same degree 54:34.552 --> 54:37.610 of financial resources. 54:37.610 --> 54:39.220 I know that's something that Under-Secretary 54:39.220 --> 54:42.250 of Defense Lord has expressed a concern about, 54:42.250 --> 54:46.040 national capabilities that are occasionally 54:46.040 --> 54:49.170 in limited supply, things like suppliers of large ring 54:49.170 --> 54:52.510 forgings, things like heat-treating for large 54:52.510 --> 54:55.760 metallic components, and the way that you keep 54:55.760 --> 55:00.760 that healthy is by having an order book that those 55:01.480 --> 55:05.000 companies that are one tier below us can depend upon 55:05.000 --> 55:07.360 and that does depend on shipbuilding. 55:07.360 --> 55:10.420 Appreciate you bringing it up and I would ask 55:10.420 --> 55:14.450 Admiral Moton and Admiral Galinis what your thoughts are 55:14.450 --> 55:18.560 on the source selection processes for future shipbuilding 55:18.560 --> 55:23.560 programs and how much emphasis is placed on price 55:23.790 --> 55:26.320 versus other factors in source selection 55:26.320 --> 55:29.600 and what the implications are for the industrial base. 55:29.600 --> 55:30.433 Thank you. 55:32.511 --> 55:33.761 - You go first. 55:37.310 --> 55:40.734 - You know, from my perspective, because this was a topic 55:40.734 --> 55:43.910 of discussion on Frigate Day. 55:43.910 --> 55:46.870 First of all, every source selection is different. 55:46.870 --> 55:51.210 So there's not a stock answer that I'm going to give you 55:51.210 --> 55:53.500 how I think the criteria should weigh out, 55:53.500 --> 55:56.540 it's all carefully considered based on the requirement 55:58.993 --> 56:01.070 and the potential industrial base and all that, right. 56:01.070 --> 56:03.460 So if you're looking for I think we should do that, 56:03.460 --> 56:04.923 I will not do that, right? 56:06.689 --> 56:11.440 So should we consider domestic industrial base 56:11.440 --> 56:13.400 as part of source selection I think is kind of 56:13.400 --> 56:15.360 part of the question you're asking. 56:15.360 --> 56:18.563 I personally think it's an idea worth looking at. 56:21.797 --> 56:24.580 I'm definitely not ready to set any new policy here today, 56:24.580 --> 56:29.580 have a war, but in terms of, we had the goal, 56:29.990 --> 56:32.580 we set it and set it for frigate and we have the goal 56:32.580 --> 56:34.940 of increasing the domestic industrial base 56:34.940 --> 56:37.460 and I personally think that we could look at all ways 56:37.460 --> 56:39.820 to do that, and there's the analysis and things 56:39.820 --> 56:41.500 that we talked about. 56:41.500 --> 56:43.810 If there's things that we need to look at potentially 56:43.810 --> 56:48.060 in how we set up our solicitations, 56:48.060 --> 56:50.760 I absolutely think we should look at that. 56:50.760 --> 56:52.880 But beyond that, I think that's a little bit more 56:52.880 --> 56:54.030 of a future discussion. 56:55.220 --> 56:58.520 - I would just add, so first off you comment on price. 56:58.520 --> 57:01.490 Price will always be a factor, okay, 57:01.490 --> 57:03.910 but it's not always the only factor 57:03.910 --> 57:07.920 and you know as we get deeper into, 57:07.920 --> 57:10.840 like in PEO Ships right now, many of our product lines 57:10.840 --> 57:12.610 are fairly stable. 57:12.610 --> 57:17.570 And the way to solidify the industrial base a little bit 57:17.570 --> 57:22.570 is by providing a consistent demand signal. 57:23.320 --> 57:25.560 So we can do that through some of the contracting 57:25.560 --> 57:29.130 strategies that we implement, so think the DDG-51 57:29.130 --> 57:30.390 multi-year procurement, 57:30.390 --> 57:33.210 so that was for 10 ships with an option ship 57:33.210 --> 57:34.710 in each one of the five years. 57:35.610 --> 57:37.410 We're looking at that same type of approach 57:37.410 --> 57:40.543 within the amphib portfolio right now. 57:41.960 --> 57:45.040 But that consistent demand signal to the industrial base 57:45.040 --> 57:48.140 I think helps get at what you're talking about. 57:48.140 --> 57:51.350 The other piece to this that I think is important 57:51.350 --> 57:54.830 that frankly we perhaps don't always take the best 57:54.830 --> 57:57.520 advantage of is the use of advance procurement money, 57:57.520 --> 58:00.380 whether it's for a single ship buy, okay, 58:00.380 --> 58:03.160 we can buy the long lead material and get that going 58:03.160 --> 58:04.920 again to help stabilize that industrial base 58:04.920 --> 58:08.241 or the ESVOQ type funding. 58:08.241 --> 58:10.830 So there's a couple of different mechanisms out there 58:10.830 --> 58:14.330 we can use I think to help from a contracting standpoint 58:14.330 --> 58:18.370 that will help with the industrial base. 58:18.370 --> 58:20.020 - So while we're on the industrial base, Matt, 58:20.020 --> 58:22.537 anything from industry's perspective, 58:22.537 --> 58:24.570 want to add on top of that? 58:24.570 --> 58:28.720 - Well, Admiral Galinis hit it with block buys, 58:28.720 --> 58:31.030 advanced procurement, multi-year contracts, 58:31.030 --> 58:33.260 all those things, any acquisition strategy 58:33.260 --> 58:36.060 that can give us the horizons to know that we 58:36.060 --> 58:38.480 can invest in our facilities, into human capital, 58:38.480 --> 58:41.480 all that stuff, is powerful for the industrial base. 58:41.480 --> 58:44.053 I would say thank God sequestration is done. 58:45.040 --> 58:48.750 A decade of budget uncertainty has wreaked havoc 58:48.750 --> 58:50.640 across the industry. 58:50.640 --> 58:53.470 And so from an industrial base standpoint, 58:53.470 --> 58:56.570 living with a blunt instrument like that was very difficult. 58:56.570 --> 58:59.930 I would say from an industrial base, the one thing that's 58:59.930 --> 59:02.810 of huge concern is workforce development. 59:02.810 --> 59:06.080 Our shipyards pride themselves on training programs 59:06.080 --> 59:09.380 and apprenticeship programs that are state-of-the-art, 59:09.380 --> 59:11.230 but there's no guarantee that shipyard worker 59:11.230 --> 59:12.700 will end up in that shipyard. 59:12.700 --> 59:16.270 Highly skilled work set can be hired away. 59:16.270 --> 59:18.080 But if you've lived with years of layoffs, 59:18.080 --> 59:20.150 those guys exit the industry. 59:20.150 --> 59:21.790 So those men and women, 59:21.790 --> 59:23.590 we need to train the next generation. 59:23.590 --> 59:26.440 So workforce development's highly critical. 59:26.440 --> 59:28.830 I would say one last thing on that, sir, 59:28.830 --> 59:31.000 we shop, probably as a shipyard industry, 59:31.000 --> 59:33.740 we need to work towards a national credential, 59:33.740 --> 59:36.410 national standard so our shipyard workers 59:36.410 --> 59:40.110 can go from one home port to the other and not wait 59:40.110 --> 59:42.310 three weeks to get recertified or retrained. 59:43.170 --> 59:45.680 They can jump off the plane and go right to work. 59:45.680 --> 59:49.080 That's some things in industry I know we're working on. 59:49.080 --> 59:51.600 People like Mitch Walden who have worked on our 59:51.600 --> 59:54.010 workforce development committee has said we have 59:54.010 --> 59:54.843 to get this right. 59:54.843 --> 59:56.770 We as an industry have to come and say, this is what 59:56.770 --> 01:00:00.260 we need, and so we're working on that day and night. 01:00:00.260 --> 01:00:03.340 - I would offer up to you come talk to us at NAVSEA 01:00:03.340 --> 01:00:06.780 because we've had a concerted effort during my time 01:00:06.780 --> 01:00:08.860 to try and do the exact same thing with our public 01:00:08.860 --> 01:00:12.010 shipyards which is, if you're a welder at one yard, 01:00:12.010 --> 01:00:14.100 we've found when you got to the other yard 01:00:14.100 --> 01:00:15.700 you had to go through a two-week training period, 01:00:15.700 --> 01:00:18.150 and I think the question is if you're a certified 01:00:18.150 --> 01:00:20.870 nuclear welder at Puget, why aren't you a certified 01:00:20.870 --> 01:00:21.910 nuclear welder at Norfolk. 01:00:21.910 --> 01:00:23.530 So we've tried to streamline those processes. 01:00:23.530 --> 01:00:26.618 I think that's, I'm encouraged that you're talking 01:00:26.618 --> 01:00:28.874 about that on a national level, and I think NAVSEA 01:00:28.874 --> 01:00:29.900 would be willing to sit down and talk to you 01:00:29.900 --> 01:00:32.313 about what we're trying to do in that particular area. 01:00:32.313 --> 01:00:33.994 - We've heard a lot about that and I think that's right, 01:00:33.994 --> 01:00:35.473 the public yards are ahead of us on that. 01:00:35.473 --> 01:00:37.310 We need to get to it. 01:00:37.310 --> 01:00:38.143 Thank you sir. 01:00:38.143 --> 01:00:41.003 - From the Coast Guard perspective, industrial base, 01:00:41.003 --> 01:00:41.836 would you like to talk to some of this? 01:00:41.836 --> 01:00:43.037 - Yes sir. 01:00:43.037 --> 01:00:45.840 So I think, I do appreciate the SCA's efforts 01:00:45.840 --> 01:00:47.610 on the credentialing, because for the smaller 01:00:47.610 --> 01:00:49.310 shipyards, smaller business side, I think that's 01:00:49.310 --> 01:00:51.180 really important, particularly when industry 01:00:51.180 --> 01:00:53.952 needs to partner to meet the demands. 01:00:53.952 --> 01:00:56.590 So I think that really will help that certainly 01:00:56.590 --> 01:00:59.600 in the performance time and the cost ultimately. 01:00:59.600 --> 01:01:02.580 So I think that's a real plus. 01:01:02.580 --> 01:01:06.100 A lot of my acquisitions are the smaller business side 01:01:06.100 --> 01:01:08.980 and that gets tricky. 01:01:08.980 --> 01:01:10.970 Obviously we need to continue to do better 01:01:10.970 --> 01:01:15.330 on the forecasting side and I think we're trying 01:01:15.330 --> 01:01:18.380 to do that as well as also across government, 01:01:18.380 --> 01:01:21.170 making sure that we look across portfolios 01:01:21.170 --> 01:01:23.540 to ensure that we're not injecting too much 01:01:25.110 --> 01:01:29.450 contracting need and build-out at the same time 01:01:29.450 --> 01:01:33.100 across government, so I'm very proud our partnership 01:01:33.100 --> 01:01:37.440 with the Navy has never been stronger and I really 01:01:37.440 --> 01:01:39.770 appreciate that commitment from the team. 01:01:39.770 --> 01:01:41.500 We've had a lot of discussions on that. 01:01:41.500 --> 01:01:44.770 We know both in shipbuilding and ship repair 01:01:44.770 --> 01:01:47.823 in that industrial base is common to both, 01:01:47.823 --> 01:01:48.990 we've got to continue to look at that, sir, 01:01:48.990 --> 01:01:53.360 and it's very valuable to all of us down there. 01:01:53.360 --> 01:01:54.200 - Yeah, thanks. 01:01:54.200 --> 01:01:55.680 One of the great things about being a moderator 01:01:55.680 --> 01:01:57.963 is you can talk about being asked questions, 01:02:00.617 --> 01:02:02.060 so we would say this whole discussion 01:02:02.060 --> 01:02:04.960 on the industrial base out there is critically important. 01:02:04.960 --> 01:02:08.120 If anybody's ever read Freedom's Forge, about what happened 01:02:08.120 --> 01:02:10.210 in World War II, I think there's this nostalgic view 01:02:10.210 --> 01:02:14.020 that somehow World War II happened and we went (snap) 01:02:14.020 --> 01:02:16.610 and all of the sudden we magically started building 01:02:16.610 --> 01:02:18.880 liberty ships and tanks. 01:02:18.880 --> 01:02:21.320 If you read the book you're gonna find out 01:02:21.320 --> 01:02:23.920 it really took us three or four years to ramp up 01:02:25.070 --> 01:02:27.090 and the industrial might of the United States 01:02:27.090 --> 01:02:29.400 so in the era of great power competition is we're trying 01:02:29.400 --> 01:02:31.120 to get to the 355 ships. 01:02:31.120 --> 01:02:32.750 Anything we can do to support the industrial base 01:02:32.750 --> 01:02:34.620 I think is important because if we actually get 01:02:34.620 --> 01:02:36.840 into a time of war if anybody thinks that we're 01:02:36.840 --> 01:02:39.810 going to overnight accelerate the rate of shipbuilding, 01:02:39.810 --> 01:02:42.220 they've got another think coming. 01:02:42.220 --> 01:02:43.660 Good questions. 01:02:43.660 --> 01:02:45.530 - [Audience Member] Hi, Justin Katz, Inside Defense. 01:02:45.530 --> 01:02:48.260 Admiral Galinis, I wanted to ask you about CHAMP, 01:02:48.260 --> 01:02:50.220 the future auxiliary vessel. 01:02:50.220 --> 01:02:53.460 So not too long ago the CBO put out a report 01:02:53.460 --> 01:02:56.520 that essentially said the Navy's estimate of CHAMP 01:02:56.520 --> 01:03:00.350 was about 50% higher than what CBO would have guessed, 01:03:00.350 --> 01:03:02.910 or would have estimated, and the Navy's estimate 01:03:02.910 --> 01:03:05.573 was in the $1.1, $1.2 billion range. 01:03:06.720 --> 01:03:09.240 You know, I know you have four shipyards right now 01:03:09.240 --> 01:03:11.030 that are working to drive that number down, 01:03:11.030 --> 01:03:12.550 but I'm wondering if you could comment at least 01:03:12.550 --> 01:03:16.720 at a high level, what do you think drove the Navy 01:03:16.720 --> 01:03:20.120 to come to such a different starting point than the CBO? 01:03:20.120 --> 01:03:23.810 I mean that's a $500 million delta for a single ship, 01:03:23.810 --> 01:03:27.640 or single ship class that is not that far out in the future. 01:03:27.640 --> 01:03:30.700 - Yeah, so I'll give you a couple of thoughts. 01:03:30.700 --> 01:03:35.700 So, number one, CHAMP is a Common Hull Multipurpose 01:03:36.110 --> 01:03:41.110 Platform, but whenever you try to take a single-hull 01:03:41.410 --> 01:03:44.770 form and spread it across a number of different 01:03:44.770 --> 01:03:47.600 mission areas, it's clearly not optimized 01:03:47.600 --> 01:03:49.490 for any one particular area, right? 01:03:49.490 --> 01:03:53.360 So I think that drove a little bit of cost, 01:03:53.360 --> 01:03:56.620 and I tell you, again, working with the shipyards, 01:03:56.620 --> 01:03:59.870 we got a lot of good feedback from industry on this. 01:03:59.870 --> 01:04:04.870 And first it was hey, our concept was one hull form 01:04:05.940 --> 01:04:09.030 across four or five different mission areas, 01:04:09.030 --> 01:04:12.000 we modified that as we needed. 01:04:12.000 --> 01:04:14.080 Industry came back and said, hey, you probably want 01:04:14.080 --> 01:04:15.654 to look at two different hull forms. 01:04:15.654 --> 01:04:18.970 So we did that, and we were still coming in high. 01:04:18.970 --> 01:04:21.040 So that was one thing, was the common hull 01:04:21.040 --> 01:04:24.500 that was probably not optimized for specific mission sets. 01:04:24.500 --> 01:04:25.670 The other thing I would just tell you 01:04:25.670 --> 01:04:27.660 is I think we had requirements 01:04:27.660 --> 01:04:30.530 in there that were probably a little bit above 01:04:30.530 --> 01:04:33.630 what we really needed, and so as I mentioned, 01:04:33.630 --> 01:04:36.450 what the team really did and a lot of credit 01:04:36.450 --> 01:04:40.000 to our Expeditionary and Sealift Program Office, 01:04:40.000 --> 01:04:45.000 PMS 385, Scot Searles and his team, is they went back 01:04:45.050 --> 01:04:48.000 and they looked, okay, from a ground up approach 01:04:48.000 --> 01:04:50.470 which is kind of what CBO really kind of talked about 01:04:50.470 --> 01:04:51.303 in the report. 01:04:52.270 --> 01:04:55.840 Let's start with a commercial ship and then let's add in 01:04:55.840 --> 01:04:59.190 the specific military unique requirements that we need. 01:04:59.190 --> 01:05:02.203 And so I talk about weapons handling capability, 01:05:03.050 --> 01:05:05.310 heavier loads in some cases, and different cranes 01:05:05.310 --> 01:05:06.450 and stuff like that. 01:05:06.450 --> 01:05:10.020 But as we did that, and I'll tell you what the shipyards 01:05:10.020 --> 01:05:13.610 are coming in with now are some pretty innovative concepts 01:05:13.610 --> 01:05:17.310 on how they would get there and bring that price down 01:05:17.310 --> 01:05:21.987 below kind of, I'll say $500 million dollars threshold. 01:05:21.987 --> 01:05:24.560 I think the team's on a good path. 01:05:24.560 --> 01:05:26.600 The other part of that, I didn't mention this, 01:05:26.600 --> 01:05:29.410 and Admiral Buzby stepped out, but we're doing a lot 01:05:29.410 --> 01:05:33.340 of work with MarAd on the buy used, so again, 01:05:33.340 --> 01:05:35.400 that's a little bit different approach to what 01:05:35.400 --> 01:05:38.020 we've taken in the past, we kind of work with them. 01:05:38.020 --> 01:05:39.700 MarAd's got a lot of experience in that area, 01:05:39.700 --> 01:05:41.340 so we'll work with them on that. 01:05:41.340 --> 01:05:44.440 But those are just a couple of thoughts on what drove 01:05:44.440 --> 01:05:46.880 the initial price of the Sealift. 01:05:46.880 --> 01:05:48.378 - [Justin] Thank you. 01:05:48.378 --> 01:05:51.750 - [Audience Member] Admiral Moton, could you comment 01:05:51.750 --> 01:05:54.300 on the testing that you've done with the variable 01:05:54.300 --> 01:05:56.600 depth sonar and the progress you've made there. 01:05:56.600 --> 01:05:59.083 Is it performing to your expectations, 01:06:00.150 --> 01:06:02.622 any details you can provide on that. 01:06:02.622 --> 01:06:03.980 And Admiral Galinis, could you elaborate 01:06:03.980 --> 01:06:07.300 on what your plan is for the T-AGOS competition 01:06:07.300 --> 01:06:11.163 and how that's gonna map out over the next year please? 01:06:13.310 --> 01:06:17.640 - Sure, let me hit the VDS briefly. 01:06:17.640 --> 01:06:21.993 So the testing off of Fort Worth is actually just commenced. 01:06:23.544 --> 01:06:25.530 We're kind of what we're calling the hydrodynamic 01:06:25.530 --> 01:06:28.410 integration phase right now, so it's been less 01:06:28.410 --> 01:06:31.680 about, so far it's been less about finding submarines 01:06:31.680 --> 01:06:34.630 and more about making sure that everything operates 01:06:34.630 --> 01:06:37.027 as it's supposed to be, so we're probably a little bit 01:06:37.027 --> 01:06:39.940 premature to answer you questions specifically 01:06:39.940 --> 01:06:42.614 on that piece, but we have already tested the sonar 01:06:42.614 --> 01:06:46.010 off of a white ship experimental and had excellent 01:06:46.010 --> 01:06:49.600 results several years ago, actually back when I had 01:06:49.600 --> 01:06:51.803 the program, we had done testing back then. 01:06:52.730 --> 01:06:54.380 So, which was successful, 01:06:54.380 --> 01:06:57.990 so overall I think, certainly working closely 01:06:57.990 --> 01:07:01.330 with the PIWS, I think the VDS is going to bring 01:07:01.330 --> 01:07:04.463 game-changing ASW capability to the platform. 01:07:05.380 --> 01:07:08.110 And we're really looking forward to it. 01:07:08.110 --> 01:07:09.800 - Did you want to add anything Doug? 01:07:09.800 --> 01:07:11.405 - Just concur. 01:07:11.405 --> 01:07:12.763 (audience laughing) - Concur, okay, good. 01:07:14.130 --> 01:07:17.732 - So on the T-AGOS, so what I would tell you on the T-AGOS, 01:07:17.732 --> 01:07:22.360 you know, we envision a SWATH platform so, excuse me, 01:07:22.360 --> 01:07:25.720 a ship that has to operate in a heavy sea state 01:07:25.720 --> 01:07:29.200 at a increased speed, ship speed, 01:07:29.200 --> 01:07:31.840 above what the current T-AGOS ships operate at. 01:07:31.840 --> 01:07:35.520 And so that requirement, high speed, heavy sea state, 01:07:35.520 --> 01:07:37.290 those are kind the driving requirements. 01:07:37.290 --> 01:07:40.513 We have an initial design that has been developed 01:07:40.513 --> 01:07:44.440 by the Navy that we're gonna use to work with industry. 01:07:44.440 --> 01:07:48.660 We expect to release the R&P industry studies this year 01:07:48.660 --> 01:07:52.280 and we'll work to kind of mature the concepts 01:07:52.280 --> 01:07:53.493 that we have right now. 01:07:54.390 --> 01:07:57.100 We're also, we've gotten some other I'll say 01:07:57.100 --> 01:08:00.550 unsolicited kind of inputs from industry we're evaluating 01:08:00.550 --> 01:08:04.260 and looking at, but that's kind of the basic concept 01:08:04.260 --> 01:08:06.073 for T-AGOS, at least for 2020. 01:08:08.026 --> 01:08:09.980 - [John] Thank you, John Harbor again. 01:08:09.980 --> 01:08:13.410 Admiral Moton, there's obviously a lot of interest 01:08:13.410 --> 01:08:15.400 in unmanned systems. 01:08:15.400 --> 01:08:19.100 Can you talk about how far away we are from seeing 01:08:19.100 --> 01:08:22.350 large numbers of UUVs or USVs deployed, 01:08:22.350 --> 01:08:24.040 and what are some of the challenges that need to be 01:08:24.040 --> 01:08:25.940 worked through before that can happen? 01:08:27.890 --> 01:08:29.994 - That's my whole day job you want me to talk about. 01:08:29.994 --> 01:08:32.430 (audience laughing) 01:08:32.430 --> 01:08:34.980 So a little bit different situations. 01:08:34.980 --> 01:08:38.770 First of all, our UUVs, a few years ahead 01:08:38.770 --> 01:08:40.843 of where we are on USVs. 01:08:40.843 --> 01:08:44.280 If you want to talk about large numbers of UUVs deployed, 01:08:44.280 --> 01:08:46.730 I encourage you to go down to Stennis and to visit 01:08:46.730 --> 01:08:48.343 the Naval Oceanography Command. 01:08:50.320 --> 01:08:54.170 There is, UUVs are already out there and operating. 01:08:54.170 --> 01:08:59.170 So, where we are of course I think in POU, taking 01:08:59.520 --> 01:09:02.290 it the next step is obviously for combat capability 01:09:02.290 --> 01:09:06.925 for UUVs and also much larger, in terms of our extra large 01:09:06.925 --> 01:09:11.925 UUV for our pier-launched capability all the way down 01:09:13.570 --> 01:09:17.920 to Razorback which is going to be torpedo tube 01:09:18.840 --> 01:09:21.210 launch and recovery, it turns every submarine 01:09:21.210 --> 01:09:23.170 into a UUV platform. 01:09:23.170 --> 01:09:25.230 Pretty sure that's as much submarine talk as I should 01:09:25.230 --> 01:09:28.330 be doing in this room right now here at SNA. 01:09:28.330 --> 01:09:30.730 That's the UUV piece. 01:09:30.730 --> 01:09:35.730 For the USVs, first of all, we are, again, 01:09:36.117 --> 01:09:38.410 one of the first things I did, I read the history 01:09:38.410 --> 01:09:40.850 of early naval aviation, and we're kind of in that stage 01:09:40.850 --> 01:09:44.120 of where we have prototypes out there. 01:09:44.120 --> 01:09:48.850 We've had the two vessels from under the OSD SCO 01:09:48.850 --> 01:09:53.110 program that we manage for them out there operating 01:09:53.110 --> 01:09:55.270 and those have been primarily focused on, 01:09:55.270 --> 01:09:58.210 you ask me what's important is these things. 01:09:58.210 --> 01:10:02.810 They've been focused on HM&E autonomy and reliability, 01:10:02.810 --> 01:10:06.350 which has been really the biggest reason for the Phase I 01:10:06.350 --> 01:10:08.120 of that SCO program. 01:10:08.120 --> 01:10:11.770 Mission autonomy, and then navigational autonomy. 01:10:11.770 --> 01:10:14.870 I would tell you at least on some of the navigational 01:10:14.870 --> 01:10:16.780 autonomy that we are not, 01:10:16.780 --> 01:10:19.990 the U.S. Navy is not necessarily in the lead. 01:10:19.990 --> 01:10:22.930 There are commercial companies out there around the world 01:10:22.930 --> 01:10:27.690 that are doing optionally manned, optionally unmanned 01:10:27.690 --> 01:10:30.380 vessels with some degree of autonomy quite a bit. 01:10:30.380 --> 01:10:35.370 So the testing that we did in SCO so far has gone 01:10:35.370 --> 01:10:40.370 really well and we have done numerous unmanned autonomous 01:10:42.000 --> 01:10:44.400 transits in the Gulf of Mexico. 01:10:44.400 --> 01:10:47.630 Sea Hunter, which was under O&R and is now, 01:10:47.630 --> 01:10:51.290 has transitioned to us, has been out to Pearl and back 01:10:51.290 --> 01:10:54.210 on the way back from Pearl, it didn't have to be boarded 01:10:54.210 --> 01:10:56.393 at all until it got to San Diego. 01:10:58.170 --> 01:11:00.350 So, the prototypes have been successful, 01:11:00.350 --> 01:11:04.400 and that's where my focus is is on getting more prototypes 01:11:04.400 --> 01:11:05.830 in the next few years, 01:11:05.830 --> 01:11:07.710 and then the other thing that we're moving into 01:11:07.710 --> 01:11:11.390 with Phase II of the Overlord Program is integration 01:11:11.390 --> 01:11:13.720 with the C4I capabilities, 01:11:13.720 --> 01:11:16.220 integration with combat system payload. 01:11:16.220 --> 01:11:19.980 So in a nutshell, that's probably a good snapshot 01:11:19.980 --> 01:11:21.753 of the challenges of unmanned. 01:11:23.340 --> 01:11:24.890 We'll get through our prototypes, we're doing 01:11:24.890 --> 01:11:26.950 our enabling capabilities, 01:11:26.950 --> 01:11:28.223 the last piece I would just mention that I sort of 01:11:28.223 --> 01:11:31.020 said in my intro is we're doing what I sort of call 01:11:31.020 --> 01:11:34.830 foundational things so from an acquisition standpoint 01:11:34.830 --> 01:11:37.560 really we have been taking the lead in what's called 01:11:37.560 --> 01:11:40.420 the unmanned maritime autonomy architecture, UMAA, 01:11:40.420 --> 01:11:45.050 working with industry on a system that's going to have 01:11:45.050 --> 01:11:48.930 open interfaces between pieces of autonomy software, 01:11:48.930 --> 01:11:51.400 allows each company to do their own pieces 01:11:51.400 --> 01:11:53.690 of autonomy kit which we can then integrate, 01:11:53.690 --> 01:11:56.700 so we're doing a lot of those kind of things 01:11:56.700 --> 01:11:58.810 which are, if you think about it, is exactly the stuff 01:11:58.810 --> 01:12:01.693 we should be doing at the start of an unmanned program. 01:12:02.580 --> 01:12:03.880 That's my snapshot. 01:12:03.880 --> 01:12:05.770 - [John] So given the need to do all of that work 01:12:05.770 --> 01:12:08.890 do you think it's maybe five or 10 years before 01:12:08.890 --> 01:12:11.270 we're going to see large numbers of these systems 01:12:11.270 --> 01:12:15.063 deployed or is it a shorter or longer horizon for that? 01:12:15.900 --> 01:12:18.000 - Well, again, UUVs, I think you're already out there, 01:12:18.000 --> 01:12:21.260 in terms of the combat capability. 01:12:21.260 --> 01:12:24.700 We're in sort of fit-up time frames for getting 01:12:24.700 --> 01:12:25.913 capability out there. 01:12:26.880 --> 01:12:30.930 On medium, what's in PV20 in the medium USV, 01:12:30.930 --> 01:12:34.560 we have one prototype in '19, then we have another one 01:12:34.560 --> 01:12:37.940 in 2023, that's what's in PV20. 01:12:37.940 --> 01:12:40.810 We're still talking fit-up time frames for that, 01:12:40.810 --> 01:12:42.950 those start to deliver. 01:12:42.950 --> 01:12:46.860 For LUSV, with the prototypes are all moving now, 01:12:46.860 --> 01:12:50.600 when are we going to transition to proto of record 01:12:51.750 --> 01:12:56.220 sort of procurement of full-up capability there. 01:12:56.220 --> 01:13:00.410 That's something that frankly because of our discussions 01:13:00.410 --> 01:13:03.400 with Congress and industry, we are making some adjustments 01:13:03.400 --> 01:13:05.450 there and I think when PV21 comes 01:13:05.450 --> 01:13:06.500 you'll see some adjustments. 01:13:06.500 --> 01:13:11.500 But it's not, this is not 15 years out, 01:13:12.323 --> 01:13:15.290 this is end of fit-up, a little bit beyond fit-up, 01:13:15.290 --> 01:13:16.920 is when those numbers are going to be out there, 01:13:16.920 --> 01:13:20.463 but for the industry folks, I've cautioned, 01:13:21.375 --> 01:13:24.270 you are sitting here in 2020 thinking that unmanned 01:13:24.270 --> 01:13:27.530 is your lifeline to having a steady industrial base, 01:13:27.530 --> 01:13:30.230 we need to get through the prototype phase first. 01:13:30.230 --> 01:13:32.030 And that's where my focus is. 01:13:32.030 --> 01:13:33.090 - [John] Thank you. 01:13:33.090 --> 01:13:36.010 - If I could just add on to supporting Casey 01:13:36.010 --> 01:13:37.970 on the combat systems side. 01:13:37.970 --> 01:13:40.400 A lot of the work that we've been doing certainly 01:13:40.400 --> 01:13:43.770 in the virtualized combat systems, all of our major 01:13:43.770 --> 01:13:46.280 sensors, weapons, everything are inherently modular 01:13:46.280 --> 01:13:48.890 and scalable, so we've been working sort of in parallel 01:13:48.890 --> 01:13:51.730 so that when we do get out there and experiment, 01:13:51.730 --> 01:13:56.470 he can have a choice of packages, whatever the Navy wants 01:13:56.470 --> 01:13:59.030 in terms of combat capability, we'll be there 01:13:59.030 --> 01:14:01.610 to be able to provide that sort of in stride 01:14:01.610 --> 01:14:03.693 with the production. 01:14:05.890 --> 01:14:08.820 - [Robby] Robby Harris here, a former Naval person. 01:14:08.820 --> 01:14:11.830 Question concerns DDG-1000. 01:14:11.830 --> 01:14:15.650 My friend, Mark Vandroth, just reminded me DDG-1000 01:14:15.650 --> 01:14:20.090 was authorized and appropriated in the year 2005. 01:14:20.090 --> 01:14:21.433 It's now 2020. 01:14:22.520 --> 01:14:26.030 Now some have explained that, that it's 15 years 01:14:26.030 --> 01:14:29.930 and it's still not a full upground, that DDG-1000 01:14:29.930 --> 01:14:33.990 shares several things in common with the forward class 01:14:33.990 --> 01:14:38.260 aircraft carrier and the Boeing 787 airplane. 01:14:38.260 --> 01:14:41.820 Namely there were multiple, simultaneous technology 01:14:41.820 --> 01:14:44.293 revolutions in the same platform. 01:14:45.774 --> 01:14:49.690 I direct this question across the panel. 01:14:49.690 --> 01:14:52.060 Do you agree that that is partially the reason 01:14:52.060 --> 01:14:55.710 of why it's taken so long to make the DDG-1000 01:14:55.710 --> 01:14:56.943 a full upground? 01:14:58.116 --> 01:15:00.123 - Yes sir, so great question. 01:15:01.010 --> 01:15:04.440 And I would tell you, kind of the difference 01:15:04.440 --> 01:15:08.840 between evolutionary versus revolutionary ship design. 01:15:08.840 --> 01:15:13.130 And I would argue that our most successful programs 01:15:13.130 --> 01:15:16.810 have been more on the evolutionary approach 01:15:16.810 --> 01:15:18.460 than they have the revolutionary. 01:15:19.770 --> 01:15:22.440 But that's not to say that we shouldn't look 01:15:22.440 --> 01:15:25.280 at revolutionary technologies to incorporate 01:15:25.280 --> 01:15:29.120 into our programs, and I would argue, 01:15:29.120 --> 01:15:32.727 offer the integration of the Aegis combat system 01:15:32.727 --> 01:15:36.330 into what at the time was a 963 hull form 01:15:36.330 --> 01:15:37.540 that then became a cruiser 01:15:37.540 --> 01:15:40.670 and then eventually migrated on to the DDG-51. 01:15:40.670 --> 01:15:44.694 That was a game-changing capability that we 01:15:44.694 --> 01:15:47.273 brought to the fleet at that time. 01:15:48.450 --> 01:15:51.840 The challenge on 1000, there were I want to say 01:15:51.840 --> 01:15:56.210 10 different technology subsets if you will 01:15:56.210 --> 01:16:00.150 trying to integrate those into one ship class 01:16:00.150 --> 01:16:01.723 and frankly it was hard. 01:16:02.965 --> 01:16:07.610 The technology in some cases was not fully mature. 01:16:07.610 --> 01:16:10.030 I think most folks in this room would argue 01:16:11.650 --> 01:16:15.520 integration is really the hard part when you come 01:16:15.520 --> 01:16:17.140 right down to it, 01:16:17.140 --> 01:16:19.010 as you bring all these technologies together. 01:16:19.010 --> 01:16:21.760 And that's really where we're struggling. 01:16:21.760 --> 01:16:24.210 As I mentioned, as we go through the combat systems 01:16:24.210 --> 01:16:27.120 testing right now, we're bringing hardware and software 01:16:27.120 --> 01:16:29.120 together for the first time on the ship. 01:16:30.100 --> 01:16:33.280 That's generally not a recipe for success 01:16:33.280 --> 01:16:35.910 and so that's kind of where, I mean the team's doing 01:16:35.910 --> 01:16:38.000 a great job and we're gonna get through this. 01:16:38.000 --> 01:16:41.030 But it generally does take a little bit longer 01:16:41.030 --> 01:16:43.200 when you compare that maybe to the Aegis model 01:16:43.200 --> 01:16:45.390 where we bring the hardware and the software, 01:16:45.390 --> 01:16:48.560 I mean even today, we bring the hardware and the software 01:16:48.560 --> 01:16:51.860 together for each ship before we send that ship set 01:16:51.860 --> 01:16:54.453 to the shipyard to be fully integrated. 01:16:55.580 --> 01:16:58.873 As we start talking about like the large surface combatant, 01:16:59.730 --> 01:17:01.570 a lot of these lessons learned, 01:17:01.570 --> 01:17:03.800 the shore-based integration piece, 01:17:03.800 --> 01:17:06.987 and some of the fundamental work that's going on 01:17:06.987 --> 01:17:08.550 that will start this year up in Philadelphia 01:17:08.550 --> 01:17:11.125 for like the integrated propulsion plant 01:17:11.125 --> 01:17:12.570 to the electric drive to eventually migrating 01:17:12.570 --> 01:17:16.610 to an integrated electric plant that then brings in 01:17:16.610 --> 01:17:19.710 an energy storage capability and the control systems 01:17:19.710 --> 01:17:22.051 that that requires, and the thermal management piece 01:17:22.051 --> 01:17:26.900 that is needed, so I think you're exactly right, 01:17:26.900 --> 01:17:30.040 it's a number of technologies that really kind of 01:17:30.040 --> 01:17:31.847 drove us to that. 01:17:31.847 --> 01:17:32.790 - [Robby] Thank you very much. 01:17:32.790 --> 01:17:36.610 - Yeah, I would add, I think you're right, 01:17:36.610 --> 01:17:38.740 and we've got to be careful about trying to inject 01:17:38.740 --> 01:17:42.710 too much technology at once and learn some of that lesson. 01:17:42.710 --> 01:17:45.800 But I would tell you that when I was PEO Carriers 01:17:45.800 --> 01:17:47.960 I used to carry around three newspaper articles 01:17:47.960 --> 01:17:50.770 from the Washington Post and they had three headlines, 01:17:50.770 --> 01:17:53.850 one the Navy's Billion Dollar Blackhole, 01:17:53.850 --> 01:17:56.270 the second headline was Building a Cadillac 01:17:56.270 --> 01:17:59.030 When We Only Needed a Volkswagen, and the third headline 01:17:59.030 --> 01:18:01.440 was The Navy's Acquisition Nightmare. 01:18:01.440 --> 01:18:03.170 And I would carry that with me when I'd go talk 01:18:03.170 --> 01:18:04.880 to people because people would not only give me 01:18:04.880 --> 01:18:08.060 this kind of little smirk, yep, you're talking 01:18:08.060 --> 01:18:10.560 about the Ford-class carrier, and then I would say, 01:18:10.560 --> 01:18:12.160 hey, by the way, 70 ships later, 01:18:12.160 --> 01:18:14.283 DDG-51's doing pretty well. 01:18:15.690 --> 01:18:20.270 My point being is we are building second 01:18:20.270 --> 01:18:22.370 and third generation technology to stay ahead 01:18:22.370 --> 01:18:25.100 of the threat and do we always get it right 01:18:25.100 --> 01:18:26.020 the first time, no, 01:18:26.020 --> 01:18:27.400 and in fact I think history would tell us 01:18:27.400 --> 01:18:30.510 on most first-to-class, everything we have challenges 01:18:30.510 --> 01:18:33.410 whether it's Joint Strike Five or Super Hornet that can go 01:18:34.639 --> 01:18:35.670 F-14, ship porting problems. 01:18:35.670 --> 01:18:38.470 But the thing that I would like to tell everybody 01:18:38.470 --> 01:18:42.400 is we've got the best industrial capability in the world 01:18:42.400 --> 01:18:45.320 and we've got the best engineers on the Navy side 01:18:45.320 --> 01:18:47.530 of that house, supporting that. 01:18:47.530 --> 01:18:49.840 And at the end of the day, we always make it work 01:18:49.840 --> 01:18:53.750 and when we do it's, they are just magnificent platforms 01:18:53.750 --> 01:18:57.140 that serve this country well for a long period of time. 01:18:57.140 --> 01:19:00.340 And I would tell you that's what's gonna happen with Ford. 01:19:00.340 --> 01:19:02.540 We made the decision to limit the DDG-1000 out 01:19:02.540 --> 01:19:06.690 to three ships but we're gonna learn a lot from DDG-1000 01:19:06.690 --> 01:19:09.610 as well just like we learned from Sea Wolf that is going 01:19:09.610 --> 01:19:13.020 to be a powerful contributor to the next generation 01:19:13.020 --> 01:19:14.020 surface fleet out there. 01:19:14.020 --> 01:19:17.140 So I don't want anybody to be left with the fact 01:19:17.140 --> 01:19:20.150 that we're gonna walk away from these 01:19:20.150 --> 01:19:22.970 as complete disasters, they've had their challenges, 01:19:22.970 --> 01:19:24.270 I think we've learned from those things, 01:19:24.270 --> 01:19:27.270 but I will tell you, I'm bullish on, certainly on Ford, 01:19:27.270 --> 01:19:29.610 and I think we're gonna look back and be thankful 01:19:29.610 --> 01:19:31.623 that we built DDG-1000 as well. 01:19:33.090 --> 01:19:36.940 - And I would just say too, yes, we can talk about 01:19:36.940 --> 01:19:41.920 in 2005, but the program was conceived and then authorized 01:19:41.920 --> 01:19:45.950 and appropriated when the world was a different place. 01:19:45.950 --> 01:19:48.840 Naval strategy was a lot different when we conceived 01:19:48.840 --> 01:19:53.290 of a stealthy ship with a long-range gun being a primary 01:19:53.290 --> 01:19:54.870 battery for the U.S. Navy. 01:19:54.870 --> 01:19:56.330 The world has completely changed. 01:19:56.330 --> 01:19:59.750 Now we are in an era of competition on the high seas. 01:19:59.750 --> 01:20:04.750 So the Navy made the good decision to go back to the DDG-51 01:20:05.330 --> 01:20:07.640 and get the Flight III out there to handle that. 01:20:07.640 --> 01:20:11.210 In the meantime, programmatically, you know there's 01:20:11.210 --> 01:20:14.070 a lot of decisions that were made to get the three ships 01:20:14.070 --> 01:20:14.903 that we have. 01:20:14.903 --> 01:20:17.500 We will absolutely and are learning from those ships 01:20:17.500 --> 01:20:20.763 and taking those lessons forward into not just 01:20:20.763 --> 01:20:24.310 the DDG-51 program but certainly any of the future stuff 01:20:24.310 --> 01:20:25.640 we're doing as well. 01:20:25.640 --> 01:20:28.619 As well as, as we operate those ships, we're learning 01:20:28.619 --> 01:20:33.328 a lot of things that may have been somebody's idea 01:20:33.328 --> 01:20:36.350 for how the capability might be utilized some day. 01:20:36.350 --> 01:20:38.610 Now that sailors are out there doing it, we're learning 01:20:38.610 --> 01:20:42.040 a lot more, so thankfully of those technologies 01:20:42.040 --> 01:20:43.720 that we did bring to bear, there was some inherent 01:20:43.720 --> 01:20:45.790 modularity and scalability in there that we are 01:20:45.790 --> 01:20:48.570 going to absolutely be able to take advantage of. 01:20:48.570 --> 01:20:51.040 - [Audience Member] Just a footnote on the point 01:20:51.040 --> 01:20:53.210 about how the world has changed. 01:20:53.210 --> 01:20:57.600 Think about the B-52 and when the first B-52 flew 01:20:57.600 --> 01:20:59.203 and how relevant it is today. 01:21:00.796 --> 01:21:01.883 - Sir. 01:21:02.910 --> 01:21:03.970 - [Audience Member] Thank you Admiral. 01:21:03.970 --> 01:21:06.370 This question's for Matt Paxton. 01:21:06.370 --> 01:21:08.660 Matt, I've had a chance to listen to you for the last 01:21:08.660 --> 01:21:13.410 few years as a member of SCA and one of the second items 01:21:13.410 --> 01:21:17.093 you talked about today is the defense of the Jones Act. 01:21:18.260 --> 01:21:20.740 Prior to my attending SCA on a regular basis, 01:21:20.740 --> 01:21:23.550 I don't think I ever really truly appreciated what 01:21:23.550 --> 01:21:25.053 the Jones Act was. 01:21:26.360 --> 01:21:28.563 There were events recently, 01:21:29.460 --> 01:21:32.750 the hurricane through Puerto Rico, 01:21:32.750 --> 01:21:35.020 the sinking of the El Faro, 01:21:35.020 --> 01:21:38.930 and there was a lot of misinformation put into the news 01:21:38.930 --> 01:21:42.360 by a lot of organizations within Washington, D.C., 01:21:42.360 --> 01:21:45.893 that so-called institutes and experts. 01:21:47.460 --> 01:21:50.230 I think it's important for this group to understand 01:21:50.230 --> 01:21:52.340 why we should care about the Jones Act 01:21:53.180 --> 01:21:58.180 and if you could provide a few tidbits of information 01:21:58.870 --> 01:22:02.340 on how the Association went ahead and countered 01:22:02.340 --> 01:22:05.610 some what I would say some false impressions 01:22:05.610 --> 01:22:08.740 or misinformation and we're not talking about 01:22:08.740 --> 01:22:12.420 just small people, but like Senator McCain was 01:22:12.420 --> 01:22:16.760 very anti-Jones Act, for whatever reasons he had. 01:22:16.760 --> 01:22:19.243 But if you could just explain. 01:22:19.243 --> 01:22:21.430 - I thank you for the question appreciate it. 01:22:21.430 --> 01:22:24.430 I think at a time when we talk about border security 01:22:24.430 --> 01:22:28.130 it makes me wonder why we would ever entertain 01:22:28.130 --> 01:22:29.460 repealing the Jones Act. 01:22:29.460 --> 01:22:31.700 It's the eyes and ears on our waterway, 01:22:31.700 --> 01:22:34.173 it's our literal coastal security line. 01:22:35.459 --> 01:22:38.120 After 9/11, I don't know if many people know this, 01:22:38.120 --> 01:22:40.710 but there was a massive Sealift operation 01:22:40.710 --> 01:22:42.550 to get people off Manhattan. 01:22:42.550 --> 01:22:46.590 Those were all U.S. mariners, it was small tugboats 01:22:46.590 --> 01:22:50.340 and ships that went to get our citizeny off the island 01:22:50.340 --> 01:22:52.710 and the fact of the matter is they were manned 01:22:52.710 --> 01:22:57.710 by U.S. men and women who care about this country deeply. 01:22:57.940 --> 01:23:00.470 So I think about the Jones Act the same way I think 01:23:00.470 --> 01:23:03.410 about our exclusive economic zone, why would we give up 01:23:03.410 --> 01:23:05.920 200 miles of exclusive economic zone, we wouldn't. 01:23:05.920 --> 01:23:08.570 And we shouldn't be entertaining giving up the Jones Act 01:23:08.570 --> 01:23:12.030 for some misguided free trade argument. 01:23:12.030 --> 01:23:14.210 There is not free trade when it comes to shipbuilding 01:23:14.210 --> 01:23:18.150 and down to our founding fathers, they saw the wisdom 01:23:18.150 --> 01:23:21.120 in having a cabotage laws to make sure our 01:23:21.120 --> 01:23:25.230 water-borne commerce is ours and our borders are secure. 01:23:25.230 --> 01:23:28.250 So, I'm passionate about the Jones Act, 01:23:28.250 --> 01:23:31.170 I'm passionate about the men and women that serve 01:23:31.170 --> 01:23:35.521 in our coastal waterways and our inland waterways. 01:23:35.521 --> 01:23:39.160 I don't think we'd ever want to have foreign vessels 01:23:39.160 --> 01:23:41.700 moving dangerous cargoes under our bridges, 01:23:41.700 --> 01:23:42.920 next to our stadiums. 01:23:42.920 --> 01:23:45.450 I think that should be kept for us to do. 01:23:45.450 --> 01:23:47.710 Similar ways we treat our airline industries, 01:23:47.710 --> 01:23:50.210 we don't have planes that land in New York 01:23:50.210 --> 01:23:52.630 and then go on to Philadelphia and L.A., 01:23:52.630 --> 01:23:56.980 those are contained for U.S. pilots and crews. 01:23:56.980 --> 01:23:59.730 I think the build requirements are absolutely critical 01:23:59.730 --> 01:24:03.010 because it's the most manipulated industry in the world 01:24:03.010 --> 01:24:05.610 and if we don't maintain some semblance 01:24:05.610 --> 01:24:09.030 of an industrial base here we will lose it rapidly. 01:24:09.030 --> 01:24:12.930 And I would argue proposals like Senator Wicker 01:24:12.930 --> 01:24:15.570 who's proposing energizing shipbuilding act 01:24:15.570 --> 01:24:18.220 which would require a certain amounts of our energy 01:24:18.220 --> 01:24:22.480 resources go on U.S.-built vessels and international 01:24:22.480 --> 01:24:24.120 commerce is something we should be entertaining 01:24:24.120 --> 01:24:25.600 at this point and time. 01:24:25.600 --> 01:24:27.310 Congressman Garamendi has introduced similar 01:24:27.310 --> 01:24:28.810 legislation on the House side. 01:24:28.810 --> 01:24:31.680 I think we are a maritime nation, we are an Arctic 01:24:31.680 --> 01:24:35.880 nation, we should double down on the fact 01:24:35.880 --> 01:24:37.940 that we need an industrial base to build the next 01:24:37.940 --> 01:24:40.510 generation of ships, and autonomous ships, 01:24:40.510 --> 01:24:42.150 and all those things. 01:24:42.150 --> 01:24:44.930 And certainly we're very, very proud of our 01:24:44.930 --> 01:24:47.560 world-class Navy shipbuilders and Coast Guard shipbuilders 01:24:47.560 --> 01:24:48.920 and other governmental shipbuilders, 01:24:48.920 --> 01:24:51.183 but we really need that industrial base 01:24:51.183 --> 01:24:53.080 and I think the Jones Act is the one thing 01:24:53.080 --> 01:24:54.160 that keeps that here. 01:24:54.160 --> 01:24:56.160 If you look outwards, everyone's subsidizing 01:24:56.160 --> 01:24:59.730 this industry and we'll lose that foothold. 01:24:59.730 --> 01:25:02.280 So thank you for the question, I appreciate it. 01:25:02.280 --> 01:25:04.600 - Okay, I think we have time for one, maybe two more 01:25:04.600 --> 01:25:06.600 questions, we'll see how we're doing time-wise. 01:25:06.600 --> 01:25:07.610 So sir, over to you. 01:25:07.610 --> 01:25:08.850 - [Audience Member] Thank you, good morning, gentlemen, 01:25:08.850 --> 01:25:10.410 thank you for sharing your time with us. 01:25:10.410 --> 01:25:12.610 I'm Herbert Tinsley with GAL. 01:25:12.610 --> 01:25:14.860 Question for Admiral Moton. 01:25:14.860 --> 01:25:17.390 After, we've talked about this sort of evolutionary 01:25:17.390 --> 01:25:19.700 perspective on the Ford specifically. 01:25:19.700 --> 01:25:21.860 Wondered in light of that you might talk a bit 01:25:21.860 --> 01:25:26.050 about where you see the LCS going post-2016 program 01:25:26.050 --> 01:25:28.820 review, what challenges do you see, what successes 01:25:28.820 --> 01:25:31.983 do you see in terms of implementation with that assessment. 01:25:33.920 --> 01:25:36.400 - Sure, well I can give my perspective of that, right? 01:25:36.400 --> 01:25:40.790 As I said, the 19 LCSs are delivered. 01:25:40.790 --> 01:25:45.790 So there's 19 of those ships that, our surface force 01:25:46.299 --> 01:25:49.040 should give you their perspective as well on how 01:25:49.040 --> 01:25:49.873 the ships are doing. 01:25:49.873 --> 01:25:52.300 We've got three ships deployed right now 01:25:52.300 --> 01:25:53.713 to the western Pacific. 01:25:55.030 --> 01:25:59.750 One, the Fourth Fleet right now, again Admiral Brown 01:25:59.750 --> 01:26:01.810 has talked a lot about mainstreaming LCS, 01:26:01.810 --> 01:26:04.048 we have LCSs that have been through the, 01:26:04.048 --> 01:26:08.910 their first basic phase, their advanced phase training, 01:26:08.910 --> 01:26:12.450 operating with, in support of carrier strike groups. 01:26:12.450 --> 01:26:17.040 The fleet has taken those ships onboard, 01:26:17.040 --> 01:26:20.490 and is learning how to use them, 01:26:20.490 --> 01:26:24.550 and asking us lots of questions in terms of potential 01:26:24.550 --> 01:26:26.840 capabilities, in terms of lessons learned 01:26:26.840 --> 01:26:29.860 to improvement liability as we get more operating time 01:26:29.860 --> 01:26:30.693 on the ships. 01:26:30.693 --> 01:26:32.570 I mean it's a pretty exciting time. 01:26:32.570 --> 01:26:36.910 From my perspective, there's of course challenges 01:26:36.910 --> 01:26:40.320 that we've had to work through, but from my perspective 01:26:40.320 --> 01:26:42.570 as PEO, I think that the decisions that were made 01:26:42.570 --> 01:26:45.790 in 2016 for LCS were the right decisions 01:26:45.790 --> 01:26:49.840 and we are getting, because we're still able to forward 01:26:49.840 --> 01:26:53.820 deploy those ships and have the multiple crews, 01:26:53.820 --> 01:26:56.050 Admiral Brown talks about we're gonna have 66 crews 01:26:56.050 --> 01:26:57.853 here, think about it, shortly. 01:26:58.730 --> 01:27:00.570 We are getting a lot of capability out of that, 01:27:00.570 --> 01:27:02.540 and it's just beginning. 01:27:02.540 --> 01:27:04.220 The Fourth Fleet's doing things, 01:27:04.220 --> 01:27:07.423 experimental with the use of those ships. 01:27:09.575 --> 01:27:10.408 Just a lot of capability. 01:27:10.408 --> 01:27:15.023 I tell the folks in my program offices that hey, 01:27:15.023 --> 01:27:17.757 when the Fleet says hey, can we put this on a ship, 01:27:17.757 --> 01:27:21.220 can we put this on a ship, and we're working our 01:27:21.220 --> 01:27:23.060 program of record piece which is an important 01:27:23.060 --> 01:27:25.470 getting the mission packages finished, 01:27:25.470 --> 01:27:27.840 but I also tell my folks hey look, we designed 01:27:27.840 --> 01:27:31.490 a fast-service combatant with empty space and a crane. 01:27:31.490 --> 01:27:33.250 So if we didn't think we were gonna get a lot 01:27:33.250 --> 01:27:35.620 of questions about what kind of stuff did we think 01:27:35.620 --> 01:27:39.470 we could put on the ship, then we were fooling ourselves. 01:27:39.470 --> 01:27:42.330 So we're trying to position ourselves to help be able 01:27:42.330 --> 01:27:44.700 to answer those questions in the future. 01:27:44.700 --> 01:27:47.720 Clearly, the biggest thing besides the lessons learned, 01:27:47.720 --> 01:27:51.701 job one for us on the LCS is finish the mission packages. 01:27:51.701 --> 01:27:54.580 And that's what we're really singularly focused 01:27:54.580 --> 01:27:58.200 and are really proud that surface is essentially done 01:27:58.200 --> 01:28:01.393 and moving forward, that ASW, and finishing out MCM. 01:28:02.330 --> 01:28:03.658 - [Herbert] Thank you. 01:28:03.658 --> 01:28:04.610 - I can get one more question. 01:28:04.610 --> 01:28:06.200 - [Audience Member] Yes sir, I just want to say 01:28:06.200 --> 01:28:08.440 thank you to the panel for addressing a lot 01:28:08.440 --> 01:28:11.670 of department issues of today for the United States. 01:28:11.670 --> 01:28:14.830 My particular question is kind of centered on my background 01:28:14.830 --> 01:28:18.110 with Homeland Security and National Target Center. 01:28:18.110 --> 01:28:20.900 I am now the CEO of SE North America, 01:28:20.900 --> 01:28:23.440 and we focus on a lot of things like oil and gas, 01:28:23.440 --> 01:28:26.420 modernization of fleets, and we have to talk 01:28:26.420 --> 01:28:27.860 about cost recovery. 01:28:27.860 --> 01:28:29.890 I haven't heard that spoke about today, 01:28:29.890 --> 01:28:33.200 and my question to the panel is more centered 01:28:33.200 --> 01:28:35.510 on how are we going to focus our objective 01:28:35.510 --> 01:28:39.030 on cost recovery, particularly within the corrosion space 01:28:39.030 --> 01:28:43.610 25% of the budget for O&M was spent on corrosion programs 01:28:43.610 --> 01:28:46.860 in 2010, so how can we get a better cost recovery model 01:28:46.860 --> 01:28:50.030 going forward and kind of hear your thoughts on that. 01:28:50.030 --> 01:28:51.610 - [Admiral Moore] Let me let Admiral Schofield 01:28:51.610 --> 01:28:54.180 field that one as the last answer here. 01:28:54.180 --> 01:28:55.890 - It's a great question. 01:28:55.890 --> 01:29:00.500 We know sustainment drives 70% or so of the life set 01:29:00.500 --> 01:29:03.782 costs of assets so your point's right on. 01:29:03.782 --> 01:29:06.780 Coast Guard we live this, on the corrosion side. 01:29:06.780 --> 01:29:10.340 A lot of it is the technology piece, to start. 01:29:10.340 --> 01:29:14.300 But really it's good partnerships with our operational 01:29:14.300 --> 01:29:18.440 commanders and making sure that they understand 01:29:18.440 --> 01:29:22.080 where the more vulnerable parts of our ships are 01:29:22.080 --> 01:29:24.610 and systems are on that side 01:29:24.610 --> 01:29:28.590 to maintain those systems better downstream. 01:29:28.590 --> 01:29:30.170 That's obviously been a challenge. 01:29:30.170 --> 01:29:32.820 We've got a lot of systems out there, 01:29:32.820 --> 01:29:36.120 particularly now today with our new modeling, 01:29:36.120 --> 01:29:39.360 we try to save a lot of weight with specialized alloys, 01:29:39.360 --> 01:29:41.590 which cause a lot of corrosion issues. 01:29:41.590 --> 01:29:43.950 So we got to continue to watch that, make sure 01:29:43.950 --> 01:29:46.620 we build that into our risk factors in the design 01:29:46.620 --> 01:29:50.600 up front to get that life cycle look on those systems. 01:29:50.600 --> 01:29:53.810 For the overall cost life cycle cost and sustainment. 01:29:53.810 --> 01:29:57.140 The big piece of that, really that cost trade off 01:29:57.140 --> 01:30:00.150 up front, and we continue to do that. 01:30:00.150 --> 01:30:01.950 There has been great technology out there, 01:30:01.950 --> 01:30:04.360 particularly on the scanning side, for hull forms. 01:30:04.360 --> 01:30:06.883 We've done scanning on our current ships. 01:30:07.795 --> 01:30:12.795 Airborne that have thousands of points of analysis, 01:30:13.520 --> 01:30:15.500 computerized that you can use as a basis, 01:30:15.500 --> 01:30:17.793 and then continue to update over the years, 01:30:17.793 --> 01:30:19.770 you can see that degradation on systems 01:30:20.830 --> 01:30:23.640 and you can decide what actions you're gonna take 01:30:23.640 --> 01:30:26.360 based on modeling or other risk factors. 01:30:26.360 --> 01:30:28.000 So that's been a really positive piece 01:30:28.000 --> 01:30:30.320 that industry's brought to us to improve 01:30:30.320 --> 01:30:33.260 and keep our ships 60 years plus out there. 01:30:33.260 --> 01:30:35.480 And other systems out there, aircraft as well. 01:30:35.480 --> 01:30:38.207 Take an aircraft out to 30,000 hours, 01:30:38.207 --> 01:30:41.547 both rotor wing and fixed wing aircraft as well, 01:30:41.547 --> 01:30:43.923 and that's a challenge on that side. 01:30:44.920 --> 01:30:45.753 - [Audience Member] Thank you sir. 01:30:45.753 --> 01:30:48.510 - [Admiral Moore] Well we've 24 seconds left. 01:30:48.510 --> 01:30:50.959 So I think we've managed this pretty well. 01:30:50.959 --> 01:30:52.910 - That's great. 01:30:52.910 --> 01:30:57.910 We really obviously have our shipbuilding in good hands. 01:30:59.894 --> 01:31:01.590 A lot of talented people up on this stage 01:31:01.590 --> 01:31:02.970 and they're obviously doing a great job. 01:31:02.970 --> 01:31:04.320 So let's thank them 01:31:05.252 --> 01:31:08.252 (audience applause) 01:31:11.974 --> 01:31:15.410 there are lunches are available for purchase 01:31:15.410 --> 01:31:16.643 during the break.