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tv   Defense News With Vago Muradian  ABC  September 13, 2015 11:00am-11:31am EDT

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[captioning performed by the national captioning institut ich is responsible for its caption n content and accuracy. visit ncicap.org] to "defense new." i am vago muradian. the pentagon continues to face fiscal uncertaininty. for congress left town for recess, both chahambers pushed measures that would increas defense spending by increasing supplemental wartime spending to more than $90 billion. president obama said he would veto that fundamental funding loophole. congress return to capitol hill last week and they remain at an impasse. without a deal, dod's race budget wouldrop i-35 billion by $35 billion.
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once again, washington is talking about a shutdown. most analysts predict congress will opt forget to inning resolutions that wouould span throrough the presidential continuing- resolutions that would span ththrough the presidential election. onheides of the annual conduct confererence in washington, i asked him whether the pentagon was working on contingency plans instead of letting congress to the cutting in a worst-case scenario. >> what we want toto have happen at ththedget approved right level for nationonal security. many people recognize that's a fact. we arere working as hard as we n ensure that happens. we have inhe past looked at what w would have to happen in earlier yearsnder bca level funding. not where we want to go.
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we are going to do everything we can to avoid thahat. vago: there's an overwhelmg sense in washington that it will go to a full year continuingng resolution. abouto us a little bit what happenss if it is a full-year continuing resolution. an f that happenens, what are ee programs and other source of release you willll seek from congress -- reliefs he will seek from congress? >> we don't want that to happen. i i understand the idea that a year-lonong cr as possle. we are hoping congress will work th out somehow and come some kind of a compromise. but that doesn't look like it's going to be e case. incrcreasingly it is looking lie let's make the supplemental accounts so large that it's unacceptable for the president
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he's alread said, i'm going to to that. if you're going to end up in thisosition, what t will be the impact of a full-year cr on acquisition programs and how do you mitigate that? >> we are still trying t to dig our way out of thehe hole we put ourselves in 2013 asas a resultf sequestration being implemented. we also have a number of things we need to get on with in terms of rates of production irease, moving to the next page of a gram lifecycles -- program lifee cycles. i understand it's an easier route than some ways p politicay but the consequences of that are very severe. vago:: can you give us an exampe of where you tnk the impt will be the largest? >> i can't give you specifics. it's too early to do that. we need to say congress move forward. the bills,roceed with those are n going to go
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anywhere as far as i can tell, and we will have to sit down and hopefully come to an agreement ababout a centl path forward. vago: thehere was a recent high-profile snafu regarding costs. the report to congress on nuclear programs, ten-year costs would be about $3 billi. this year's reportrt, the number was $58 billion. that sparked a lot of f concernn overseeing thes program very intently. more broadly, how did this mistake happen? are there multiple cost estimates this program? are yoyou convinced this is limited to the bomomber? far as i know, this is a unique problem that t was brough about by different offes doing estimates. i don't know the exact details.
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the production about the bomber hahas not chand through l of this. the number the air force is using now is a carrot number. vago: -- the currentnt number. , to use a word you are familiar with. 550: you are convinceded that is still the unit costarget? [indisiscernible] >> it's been a driver for the design work that has gonen so far. vago: are you sisfied that despite the cost cap, your aircraft will deliver the performance ththat will std the test of time? >> i believe s so. 'm taking a very detatailed look at the aircrcraft and design. both c competitors will go to gt a very goosolution out of this. vago: innation is a top priority for the administration.
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yet senator mccain this week has iced concern that the department is looking at cross purposes, its new commercial acquisitition regations may actually make it harder to attract that degree of innovation in silicon valley and elwhere. how do y you respond -- together twoixing thinings. the acisition of c commercial tetechnologies and bringinthose into defense programs is about idenentifying those programss ad fifinding a path for them be included in defense programs. the recent exchange is on commercial parks, parks built to us as commcial. thenen we have to make a determination n as to whether ty are mmercial or not.
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has been a contentious issue for years and wewe tried to stre right balancece. the recentecollection was put out to provide bett guidance to make these decisions about commerci parks. we are going to take the comments and revise. vago: it t may be an apples and oranges comparison. >> we are mixing different things together here. always been n concerned about revealing data on the cost of their parts because they do sell themem commercialllly. we have tried to strike the right balance on that. as we are trying to do things in a commercial way, which we suort, we are under intense criticism if we pay high market for these parts. we are trying to get the right lance. i don't think we will ever get it perfect. speaking of senator
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mccain, in his versionon of senatorion reform -- mccain has gone from more dramatic cnge. at the core of it, o one of the key elements is to shift acquisition authority from your office that was created. f fmer service chiefs have commented that they ink that's right, there is elective clalarity and they do't have enouginfluence over the syst. how can the current system be improved short if demoting your function? >> we have been working hardo improve it for yes now. the latest version of our annual repoport was released. it shows steadand good prprogress. i thk we're moving in the right direction. it''s difficult to chanange an enrprise so vast.
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is of the things it requires consistency direction, and we have provided th. you also h have to stayy with things until you start to see results. 'm encouraged by the progress we are making. one of the concerns i have about making the specific provision, the senate version, is it wouldd and our abity to do that. my wor with those programs is relatively limited. it makeses the decisioion to cmt large bodies of resources to the nextxt phase of acquisition. other than that, programs are managed by the services. the service chief part of wha is in the sesenate bill, i'm supportive. ey should be more involved on the rerequirementside,ore vedeveping the tra-offs we make. we are comomfortable with the ll -- language of the ndaa. we a happy with most of the provisions from the ndadaa. vago: ultimatately the
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requirements fununction resis in the services. >> i it resides in the services. what i look at when i look at requirements is executed ability, are they technically feasible and pctical, and are they goi to be withihin reasonable cost bounds. those are the two things i focus on. i genenerally defer to the services. vago: cing up, the acquisition services. vago: cing up, the acquisition chief on somehow it felt like everything was moving in slow motioion. if i didn't react, things could houave gotten messy in a hurry. i mean just got that sweet ride with a great rate from navy federal. i was not about to let anything happen to her. just looking out for my wingman. he's still in training.
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vago welcome back for more of our conversati with the pentagon acquisiti chief. when the dod seasons on a new id, that idea becomes a buzzword grid a decade ago it was trans-nation and today i i's innovation. >> if i thought the department was not doing enough to control risk -- i made a comment to you i thought we were not taking enough risk. a lot of innovation is about doing that. are trying to open ourselves up to sources of innovation we don't normly tap. that is why we are interested in silicon valleyey and some of the other commercial centers. you have t to lk at everything
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with an eye towards s what is realistic and practical. -- you can commit relatively small amounts of resources to experimentation. but if you don't go through that process -- vago: getting to the point where people are comfortable failing. >> up to a point. we don't want to fail on major commitment on a ltibillion-dollaprogram. we should be reasonably confident that will be in a secure double program and deliver as we expect to. the thing to do beforore that, u should be willing to take risks, and you u should be willing to fail. the program is an example of trying to do a lot of work up &dont so when we commit to a we are reasonably y confident. vago: long-range research and
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development plan, that remains highly cssified. how are you sharing some of the findings and ideas with other commercial industry that you need to harvest in order to get there? how much of this stuffff are you able to share with people to draw them out? >> we can share our problems to a certain level. we can't ways get technical details. some of the problems are ptty obvious. once you get further into solving a problem, you can get into classssified pretty quickl. then reach out to the commercial, high-tech industry we a are doing through the diux unit. it's one of the many things s we are doing to y to reach out t nontraditional sources. a good example of this, as i recently asked the people to put onon their list of things if they're interested in help on
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magnetic id's in afghanistan. there are other things like that that we can let ople know about the problem, they can think about it, come up with new ideas. vago: you used to spend a lot of time with those folks. are they as engaged and excited about this initiative as you guysad hoped they would be? >> there's a lot of excitement about this. there's a certain amount -- being from missouri -- think the leadership we have put in place at diux is the right leadership to make the connections, undstand the opportunities, and help people. and to help with the flow of business. there's a lot of impatience in plplaces like silicon valley to move forward, not at the normal government's pace. we have waways in which we can flow research money in particular to companies fairly quicy and use ose through diux to make those technolies more available. vago: what are the core elements
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of better buying power, and wha are your thoughts about what better buying power is going to look like? >> when i think about 4.0 -- give me another year. i i met 3.0. --i'm at 3.0. the include things like fordability assessmentbefore you start programs, maximizing competition in competitive environments. the idea that we don't just except iis our job to spend whatever budget has been appropriated, we try toave money whatever -- in whatever way we can. the e focus in.0 is on innovation and technology and technical excellence, bringing us back to the reasons why we are doing this in the first place, which is to give our war fighters dominance in the battlefield. earlier versionsad that.
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on now we are focusing more getting new ideas, new capabilities into the hands of or fighters. long-ran r&d planning exercise was part of 3.0, is part of 3.0. vago: one of the elements you admitted in draft 3.0 that would be controversial was the notion that the pentagon should exercise greater oversight over iran. the research and development dollars that the industry spends that you are reimbursed. your mtra is always, show me data. companies you felt that were using your money to close systems, sometim the buydown -- and thereams were some ceo's who were comfortable with that and some ceo's who had problems. kennedy told us, it's his money and he can put strictures on it if he les. but you backed away y from that. why did you back ay from that? >> i would not put it that way.
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the fundamental queuestion was, improve the communication about r&d. about 20 years ago we cut inindustry loose to do whatevere wanted to do without much governmentnt supervision. in previous decades we had supervised very intensely r&d by companies. i did not want to compose bureaucracy. i also want to ensure that history is doing meaningful work, that the technology -- not merely establishing positions that can be used to hang onto market she later. what i ended up doing -- you mentioned experimentation, this toustry will beequired grieve government on its
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projects before it starts them and brief government on the briefts afterwards -- government on its projects before it starts them and brief government on the results afterwards. our next step -- we will experiment with that. a ye or twtwo down the road we will reevaluate itit. va:or more of our interview with secretary kendall, go to defensens.com.
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vago: on monday the air force
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association convenes its annual air and space conference and tradeshow. this year air chiefs from across the pacific will join their worst leaders and industry at the three-day event -- air force leaders and industry at the three-day event. thanks so much for joining us. >> i'm very glad to be here vago: this is one of the foundational events of the year. for thishthe big theme year's air and space 2015 conference and tradeshow? guest: reinventing aerospace nation. this gets all segments of society together to talk about l things air and space and including cyberspspace. our civil, our military, government agencies, and our industry partners, all across the spectrum, it's very exciting. va: what are some of the things and importanaddresses you think we will see over the course of the three days of this
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conference that supports that theme? guest: if you think back to the days of world war ii, the early days of our test programs, our race to the moon, graham, there's excitement across american society. we want to reinvigorate that and have tt conversation and talk about where we are going in the future. speaking of security challenges around the globe, tensions are running high because of china and the pacific. this i an opportunity where the air force is also hosting a major air chiefs conference talk about how many participants we would have. i want to follow-up with the not insignificanchallenges that go with planning and executing. vago: we have the pacific air chiefs with us, general lori robertson of the pacific air forces commander will be hosting them. they have a lot of events that will happen over the course of several weeks in the united states. the highlight will be spending three days with us.
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the vast differences and all the potential there. i think we have over 10 air chiefs with us. very exciting to have them with us and hear their prison active. vago: what about from a planning perspective? we have a lot of challenges, but we have a very good sff a we have planned all year for this. time in more recent history we've had the united states air force much more excited about planning with us right from the very get-go on the agenda, themes, panels. has brought a lot of excitement to this next week. this aserybody looks at a tradeshow and the geral officers conference, but they are a very powerful family. talk to us abo some of the things going forward for enlisted folks and families in general across the force. guest: we have three or four agendas that go through all the
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days. we have our enlisted track led ib sergeant. we have an airman and families program. in the past it's only been one day. this time we have expanded it to all three days, so we will have a townhall with our air force leadership and thr spouses to talk about thingimpacting airmen and their families. very good program. vago: onene of the challenges a couple years ago when the bget again to take its biggest impact was a concn that major trade shows would take a h. therere appears to be a lot of recovery. walk us throughow you guys are doing and whetr the show is gring and why do you think the show is continuing to grow? doing very well. he goes back to the excitement generated by the air force. besides having our big sponsors , we havetry partners 27 newew vendors, we have over
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100,000 feet of exhibit space jampacked and full. we are turning people aw to come speak to us ding the three days. the excitement is there. people are interested in where we are going in the future. we are happy t to start the conversation. vago: helping you a little bit because the air force has not yet announced a winner. guest: that's true. we're all waiting to see how that will turn out. vago: the whole industry is and the future of the businesss looking at it as well. best of luck next week. we will see youou there. guest: thanks veryry much. vago: on this week's "money minute," a personal finance exrt tells us the difference between identity fraud and theft and how to preventhem. with ththe assistant vice president of digital communications a and navy federl credit union. here to tell us about t mobilele wallets and d why you shld use one. what is a mobilee wallets >> a smart phone apps where you
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can store debit and credit t cad information and use itit to make purchases. instead of pling out your card at a a retailer, you tatap your phone to the point-of-sasale trtransaction d you authenticate to make th transaction. >> why should i use one? a lot of f people think it's jut asasy to swipyour card atat the register. >> the card informations never stored on the device, nor is it given tthe retailerer. it i is much more secure than a normrmal transaction. can anyone who has a mobile device use a mile wallet? >> most of the latest smartphones have the capability or soon will. you might want toheck with your financial institution to make sure they supported. >> thinks are being here. vavago: we will s see you next . if you have any being detected was not an option. if ias recognized the whole operation was blown. the element of surprise was imperative. wow. he won't even recognize you.
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vagogo: thtrouble with major programs like thjoint strike fighter is their past challenges and two obscure their progress. critics of the supersonic jets continue to limit its overbudgetbehi schedule,nd inferioro exting planes. the progm has hadts prlems, but is now on th winning streak. ununder the lieutenant general's watch, jss has methodically adaddress the challees facaced y every complex program andnd gaid tremendous momentum and today ththe program's fielding new capabilies, the unit price is dropping, and jsfs meeting targs in 2012. 120 ts are in e air, prodtion will triple in 2016
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to 100 aircrcraft a year. is a real program cing to estatablish the global l logist, maintenance, and trainin infrastructure vital to the succesof a jet a dozen nations arare counting on. up next, the entire jet'seam mumust focus on developing new operational concepts to unlock the awesomome pentialal of this potent combat stem. will revolutionize air warfare. chalnges remain, butiven enormousus progress to date, i's timeme for peoplto tnk about thprogram's future. visit us at defensenews.com. coveverage of thee asa conferene and tradeshow in washingn, d.c. and the defense and security equipment internaonal
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show in london. interviews about itain's ongoing strategic defensnse of security revw and simon williams, , the chairm of defense and security at clarion events. we are the official tv partner. i will be back next week at the [music] >> dr.>> charles stanley: god's word will last throughout all eternity because of what it is. it is the unfolding revelation of god of himself who is saying to us, here's who i am. here's how i feel toward you. here's what i'll do for you, trust me, follow me, and watch me provide the very best for you. >> male announcer: next on "in touch," "the bible-more than a book." [music]

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