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[applause] and why we read all this weekend that the Reagan National Defense Forum for those of you in the audience if you had a chance to see on television if you were watching it a suggest you shouldnt have a life you should be inside watching television. [laughter] with those timely topics thanks for asking me to come to address this group. And with that 4,000pound knapsack on his back he was smiling happily. There are Interesting Times we are living in with a chinese fortune cookie. And to those that you can into were the endorsers of National Security and forceful advocates for a strong Navy Marine Corps team. And to address my thoughts on how we take this institution Going Forward to have an update right now is starting to be a good weekend the pentagon which doesnt mean that will stay on the same trajectory but certainly is a nice day today because this war in the new undersecretary of the navy. Tomorrow i can swear in the assistant secretary and we are making a frame that will carry the organization for word in a positive trajectory. And addressing the topic of National Security that we are a commercial nation. And from the u. S. That we benefit from those sea lanes that are open for commerce we our protector of those to provide security and not only for ourselves but for our allies. It is all in our best interest. But the argument is always the freedom of the seas to support the open and robust trade among nations. And with the purpose of the freedom arabesque and they United States Navy Marine Corps team is fully deployed with the globalization stability. And with the reassurance of our allies whether the green suits or the great ships and the our harbour and presence provided stability. And then the longer end the shorebird gets better the navy and Marine Corps Team that it is easy enough to say it is a challenge to do but i must be blunt we have readiness issues with the navy and marine corps we are getting at them but we have a ways to go back yet despite the challenges i am confident we can successfully tackle every single issue and utilize the aid of outstanding problem solvers and tasks some problems offers from outside the organization those under the microscope right now and rightfully so the comprehensive review is an example that leadership in problemsolving will be done with focus it has given a deeper insight to redress the shortfalls that we see. My strategic readiness review is still forthcoming but were looking at everything and i mean everything. To house the joint Chiefs Organization into Goldwater Nichols and as you are well aware there is a multitude of obstacles in our path including those that are merging with over some to refresh your memory with the budget control act continuing resolutions have taken a toll of readiness in mean in cycles costing time and resources that we cannot buy back. The infrastructure needed to grow and support and repair the fleet is showing signs of strain and are woefully underfunded those technological leaps push for those affordable capabilities in the hands of adversaries and a number of these adversaries have begun demonstrating renewed egressions that we have not seen in some time these points are simply the basis for the environment in which we operate so how do we maintain our invented . Focus on the mission with the three parameters of people and capabilities and the process people are the greatest asset we dont win without them we need to keep the winters that we have and recruit and train and empower the subject Matter Experts to hold these people accountable vehicles in ships and planes are just chunks of metal they cannot do much without the human interface they need sailors and marines to bring them to life and the sons and daughters are the best in the world what they do. They are all volunteers given of themselves knowing that we can enjoy the freedom sometimes taken for granted. They are hearing their reenforcing message every single day that they are our warriors and that is their job. They deserve the right gear and legal platforms to deliver the fight a man dedicated to ensuring that our people, the war fighters get the capabilities that they need. I am also dedicated to ensuring a hour Service Members in the teammates received the best training because welltrained people employed the gear to distract capabilities in the most efficient and effective manners you must foster that environment for sailors and marines are given the choice and a career path to keep them in the organization. To insure that our people have a professional and Educational Opportunities they need to grow as leaders and critical thinkers that families and loved ones are taken care of their intrusting as with the lives of their husbands and wives and brothers and sisters and daughters in sending the were fighters over the horizon any to be sure their loved ones are taking care of a home so they can focus toward the mission when they can focus on the mission that theyre able to effectively apply were fighting capabilities were ever and whenever needed which based my second priority given the right capabilities into the hands of the sailors and marines for you all know they are the best in class and deserve the best in class. They deserve that in a timely manner to that end i directed my acquisition teams to back despite the research with that acquisition process and a the advantages are diminishing you can be sure there are some countries and on stage actors working hard to bridge these gaps that is why my goal is to never send our troops into a fair fight i learned increasing competition to have a process in place to compete and win and stay ahead of the competition at all times when you take your hand off the throttle begins to close it is bad enough when you dont win but the stakes are much much higher. I can assure i assure you that adversaries and i just treading water but they are catching up quickly spending the money to develop those legal capabilities and they have a path that is much more expeditious and ours but if youre not, we will answer this challenge and must respond on all fronts internal research and development to a accelerated learning to partner with industry to get the capability of our people and the talking about true partnerships pro based upon the concept of shared risk to yield a shared benefits. The u. S. Government cannot be the only entity that takes the majority of risk we must come back to a true understanding of partnership with the Industrial Base to have a sustainable acquisition process not just what grinds down to the lowest common denominator this is a partnership to provide industry a clear line of sight and we must provide them a clear line of sight to resources to invest in the Necessary Research and development to provide solutions to our challenges that we have the Navy Marine Corps are immense there is no relief in sight to have all the resources that we need. We must leverage every single aspect that we have with internal end extern all partnerships all while making sure we dont squander the resources of taxpayers. A component of the partnership shows of the responsible customer to industry and we have room to improve upon. We can start focusing on process to meet the threats of today and tomorrow we must reform process now and talking about this for decades were starting to move the needle seeing this come to fruition in the near future sometimes that means to meet a common goal to strict to struck a partnership beginning that acquisition process where recombine best practices the navy knows how to build ships so does the coast guard were teaming up to see how we can provide the best solution for the Sister Service the navy will benefit, the coast guard and the taxpayer will benefit we have success working with congress to lower cost we have a long way to go we appreciate the past congressional authorities those to effectively with those programs to ensure the help of the Industrial Base that the end of the day provide capabilities and also appreciate the bipartisan congressional advocacy to define the 355 ship navy not just the ships but every asset across the board we will work diligently to implement that decision with the resources provided by congress grow the fleets of the United States navy. Expanding the free to above the sea and in the air we must ensure the health of the Defense Industry and work force are in place with Large Capital investments need to be made to date to build the plane of tomorrow and with the fleet the way that we should so those that have these assets and future years have the capability. I cannot tell you exactly what the maritime people look like in 25 years but i can tell you it will not exist unless we get serious about providing funding needed to build those capabilities today. We cannot buy back time if we dont invest for the future, we will be in a corner tough to extract ourselves but the bottom line is urgency as a battle cry in addition were reaching out to Industry Partners i know wherever there is a challenge someone else has certainly almost addressed it and to have insights on what works were looking for a the best practices of people who live gone through similar situations i found out just by reaching out and talking about our issues has amazing feedback outside the building with some of the most unlikeliest places you could imagine you will see the forthcoming in the Strategic Review we will rollout in a weekend at half we have already reached out to Industry Leaders to learn how they have improved safety and i am truly confident after seeing what they have contributed from their valuable insight as he moved down the road to work towards sustainable readiness. To reaching our goal, the budget control act and continuing resolutions we have seen, and will continue to be incredibly harmful unless we address this as soon as possible. Crs have cost the department of the navy roughly 4 billion. Since 2011, we have put 4 billion in a trash can, put lighter fluid on top of it and burned it. 4 billion, as you know, youre all doing the math or youre snoozing, i couldnt tell if youre thinking 4 billion is enough buy a squadron of f35, to destroyers. 3,000 harpoon missiles. Think about this. 2,000ing a tick cal tom ahack missiles. Enough tomahawk missiles, enough to buy is the capacity we need. Instead that was lost because of inefficiency of the ways of the continuing resolution. Each member of our allvolunteer force makes a promise to protect our nation from harm if called and to give their full measure to do. So its time for our nation and congress to coop the same promise to the keep the same promise to them as secretary mattis, our nation can afford survival and another continuing resolution is a broken promise and another chip away at our ability to survive inch closing i want to thank you for the opportunity to stand in front of you and ill stop bloviating and takeĀ¢ from the floor because that is where we find the most interesting things to talk about so open the mics. [applause] good e. Marks mr. Secretary. Im lieutenant roger missile. Group six now. My question is, at the Reagan National Defense Forum, kennedy heighten says when he was growing up he aspired to be the colonel Program Director and not the general because he had the responsibility and authority to deliver products and processes to the war fighter. He also said that when the lieutenants and captains want to be the colonels again, thats when were going to have things right mitchell question is, how do you as secretary plan to fix the bureaucracy that war fighters at the deck flight deal with day in and day out, whether in the fleet or pentagon to ensure our ensigns and jgs grow up wanting to be commanders and captains and not necessarily admirals and secretaries. Its a timely question. Theres a couple of things going on here. I wont say its an alarming rate but the fact that theres one or two of these events shocked me completely. There are officers that are asking not to take command. They would rather take another path than take command. When i was in the marine corps the ultimate goal i had immediately from front of the was to become a captain and take command. We are doing something terribly wrong if in fact theres more than one person who wants to check that box and say, id rather not take command. Addressing in the Strategic Review, i told you we were looking at d atm a. He have to provide and will provide the environment for our enlisted and our officers to have challenging career and provide them the educational environment to progress, and will it take moving cheese . Yes, its going to take moving cheese. Will we be able to do it in four years . I dont know put well set sail to try to do it. We have to do it. One example that someone asked me this weekend was, will, give me some context for this. Said heres a fine example. When i flew the battle frog, you couldnt tune up on an fm frequency to an army frequency. I mean, we were talk talk about a center of exlens, such a center of excellence we couldnt speak to anyone else because we didnt think they were that excellent. Just kidding. We had to prime me pump to join, and what i mean by that is everyone we had this set up to downtown command, joint is now in our dna. Everyone does joint. Can we now say, okay, we have the understand offing joint at an early dna stage and now dont have to have as many joint billets as we have right now . But providing the environment and tools to extract the betts from our people is something we have to do very valid question and were focusing on it. Mr. Secretary, norman palmer. On the people issue, today i believe the navy is short 3,000 enlisted men and women, of course. In that context the economy is improving, unmomentum up up employment is down looking at submarines, the last 2530. Theres been no reduction in crew requirements. How are we going man a neat of more than 275 ships . Another timely question. Should use you guys as my red team. Ill answer that question by backing into something else. I think it was 2010, secretary gates asked ity lull brought to by michael bear into secretary gatestoget an assignment what the defense about might be working on, and he turned around and all of a sudden since i was sitting there with my mouth shut issue was assigned with modernizing military retirement, addressing the commissary issue and department of defense education, and he asked his chief of staff to go out and get mr. Spencer a kevlar vest and sent him on his way. One thing we did do, if your remember, we simply started the discussion, which is what the defense business board does so well, we started the discussion on military retirement. Now as you all well know we have the blended retirement system think brs, and a couple of people have say, smarty, now youre the secretary of the navy and you have to live with this. The allows people walk out the door more easily and walk out with some assets. I say, you know what . Good on us, because game on. We are going to have to work to make it more advantageous and more challenging and more desirable to be in the naval enterprise than be wooed out the door by competition. Not going to win 100 or the time but well make an effort by the changed we are talking about here to make those people want to stay. That is part one. Part two, which is the question you asked with the economy bubbling along as it is, how are we going to find these people . Three weeks ago i got a update on how we are recruiting. Both navy and marine corps, two separate pots are doing well. If we had a surge right now, there might be some problems. The economy is strong. To grow 3,000, i think we would easily be able to do that. Do we also have to address manning, et cetera . Yes, we do. If you look at the lcs, which id like to stop right now and talk about the lcs. Its time for a conversation change on the lcs. I was an atrocious acquisition process according to everybody who wants to comment on it, and you can take either side of the argument. Id like to find someone on the pro side. The fact of the matter is were now getting feedback from the complete, from the commanders actually using this platforms and its good feedback. That vessel vs. Talk to toured for a more efficient crew. For legacy platforms . Well be limit but we train hasp the capabilities of the asset wes have to possibly lighten the load in that regard. We have challenges. My only other point to the personnel question is we had to be very careful with personnel. They are the most expensive asset we have. When you truly compute the lifestyle life cycle cost of a member, its tough. 50 of my budget is benefits and personnel that it cant touch, and its increasing. I dont complain about it. What i have to do is make sure we are getting the betts efficiencies and effectiveness out of the great people who serve and thats the way we have to look at this, take this on as a positive challenge, and i believe it is a positive challenge. Lieutenant chris okeefe, 25 days left in the navy. Thank you for your sauer. I have three sisterinlaws in law, wife ask a brotherinlaw in the navy as sell. As we listen, we see conversations happening and we dont see the inquiries happening at our level, nor explore asia of explorations of solutions at our level and theres an element of cynicism is that rights to step in when theres that saydo gap. Are you digging down to kind of get down to ensure that the feedback that actually exists at the lower level is reaching the higher levels up filter . Theres an opportunity for partnership, not a confrontational way but people are interesting in collaborating. One thing that dish want to make sure everyone understands how the comprehensive review, the cno my review, the cr and the sr. The cr oreck immediacy of the cr was the seventh fleet because thats where the issuesed, plane and simple. Those programs underway right now and that is getting gettinge Christmas Tree lights to line up on green for all certifications. Theres some immediate tactical things we are starting to do. Having the conversation is definitely what we have to do, my whole concept of people that i said earlier is, who better to find a solution to a problem than the person facing off on the problem. Someone the other do day asked me what my job is as secretary of the navy. In a simple sense, it is wearing the title tin hat to man, equiptrain, and devil, but my true job is to clear maneuvering paths for those people with solutions for problems. We have to engage in the conversation. The Strategic Review is going to be just that, more of the co is out there tactically now working youll see it start in the seventh fleet and has, obviously, overlays for the whole fleet and marine corps, by the way. Not just a navy issue. If i was to birching up an example of how were attacking this on a different way, one of the people who ended up contributing some incredible insights to us was bing. Not aviation safety. This was boeing by selfadmission, they were the kings of making aircraft, and knowing how to produce them, and the way you go from ten a month to 15 a month is make the people work faster, and harder, and all of a sudden their industrial accident rate started increasing dramatically, and they said, woo, stop. And they did quite a big review, and they brought a couple of people on from the outside, and they did a multitude of immediate tactic cal tactical changes how people worked on the floor but here is a cultural shipment rarely see the word safety in a boeing plant. The word is respect, and the concept is, john, i respect you, what are you doing on my floor without your safety glasses on . If you get hurt, youre off the team and youre not producing. I need you to produce. I respect you. Meese put your safety glasses on. Having been an aviation Safety Officer in the marine corps our concept back then was the bigger you painted the safety sign, the more you were all into safety. There was no correlation how you role it out. Thats the kind of change were talking and the kind of conversation we need have. But i agree with you 100 , we have little time to let this languish of the shelf. The and can do nieced to tighter. Good morning, mar sect,ty headquarters marine corps at the pentagon. Thank you. My previous job was out in seventh fleet, and so the incidences that have happened hit close to home. My question is, having worked in the portion of scheduling in seventh fleet, how do we expect to meet the operational tempo in seventh fleet and also meet our readiness metrics, because the schedule is so hectic and changing but we also want to be a responsible partner to tower japanese allies and our own sailors and getting them ready for the fight. Not lost on anyone in this crowd, the Navy Marine Corps team is an organization that is biased for information. Sitting around and waiting is not something that we enjoy doing. Also, this organization finds it hard to reach into the bag to find the word no. I cant do. That but we have to come to a balance. We have to start weighing in a new word which is sustainable. We have to have sustainable readiness and sustainable operational tempo. You heard me, i think, earlier when we taj about the Strategic Review, addressing how the vice chiefs task us. The fact of the matter remains, its somewhat arithematic. Only have so much capacity to do the task wes can do. It is hooks law. We can stretch thing but youll reach a tension point where the object cannot go back it to roger form, and thats original form and thats what peer dealing with. Keep spreading the may necessary thinner and thinner you dont get mayonnaise on the toast. We would like to fill all tasks that were required to do, but this where is we have to work in teamwork to increase our capacity to fill the bill. Were in a on the backside of the power curve but were coming over the peak, but we have work to do. Ill be the first one to admit this and this what were working on right now. Mr. Secretary, the leonard scandal keeps reverb rating throughout the active and retired ranks. In your time here have you been able to glean any systemic causes of this scandal that kind of keeps grabbing more and more leadership or do you view it as a failure of seventh fleet leadership or Navy Leadership at that time and filtered down. Curious your take on this whole issue. Yeah. My take right now is that the pig is through the python. We have processed through and were seeing you saw that i issued a secretary of the navy letter last week, and i think were going to were seeing the process do it job. To answer your question, yeah, im concerned. Im concerned across the board. When i see packages come across my desk asking for exceptions on retirement, seeing actions that were unbecoming of an officer or enlisted personbut yet the board of inquiry says, let them go with full let he or she go with ruffles and flourishes issue have a problem with that. We have to make sure every decision we make when were making a decision for the naval enterprise, supports and enhances the brand equity of the organization. We have a thrust given to us by the american tax care and the american citizen. If taxpayer and the american citizen. If that corrodes or goes offcenter, i cant imagine what the path is to bring it back on center. One message we are getting out to the Navy Marine Corps team is when youre making decisions, whether in uniform or at home going down to 7eleven to pick up a quart of milk, think about the decision your making and what does to your organization. Its that simple in some ways but its that expansive, because in todays world with todays media, everything you do represents the United States marine corps and the United States navy, and we have to get that message through. It is something we are definitely focusing on, and the message is loud and clear. The irony not lost on anyone in the room this quite frustrating when you cross the line from leadership to undo command influence and its something that we have to really work on and its something we have to tell the american spock they understand and we dont have some people in the middle interpreting it for them. Yes, sir. Coast guard reserve retired. We have been at war my entire career, if you go back to 1990. We have some of the best people we spend a lot of time and money, as you have skated, into training, yet they leave early and we lose them. Given the costs, given the ramifications of losing that expertise and not having it available to bus, why are we continually decreasing the reserve side and why have we not further looked at the congressional retired receive, letting that door swing both ways so as you say, we get the best from both worlds. They can go out, go to corporate, learn something, and come back with maybe some ideas outside the box without being detrimental their career. We need really change that. I love softball questions or statements. Thats not just the Navy Marine Corps team. Thats coming down from secretary mattis. The citizen soldiery, the reserved, or an absolute integral part of the war fighting nature we have. The institution has proven itself the last 16 years, seemlessly. As we go forward and we look at the challenges we have, and lets address all of them count but ill address cyber as an obvious problem were looking at. You really do have to have a resolving door, and the reserve component fitsing this argument to a t fits this argument to a t. I youre going to happen with cyber you have to remain current. Id love for the door to swing so our experts can go back out into the private sector and become current and then come back in. You can overlay that to almost every single talent we have, whether the coast guard, marine corps and or the navy and that is being addressed as we speak, starting with cyber but no reason thats not a best practice to put down to every single mos or. With the allvolunteer army seems to be theres continued Multigenerational Families interest the military, and the question is about any of the separation from our general population. What are your thoughts . A lot of thoughts there. Hailing from wyoming, im a Firm Believer that everybody ought to serve their country in some capacity. It doesnt have to be in department of defense. It can be in the post, the department of the interior, but as i used to listen to my father, who was a pt boat commander in the pacific herb said it was fascinating. When harvard met iowa, its when washington met florida, this country had a fabric back then that intertwined tightly and superseded ethical interplay, it was when america was america. Are we getting polarwaysed . Thats the wrong word because only one percent serve and youre right, win that one percent, 40 are legacy. Dont know what i can do as far as the navy alone is concerned. I actually would like to put a footnote on the fact its all volunteer. Its an all recruited service. That he have to watch out when we walk away from the word volunteer and start getting to all recruited because we start encroaching of professionalism. Were getting a dna strain of professional warriors and are we actually taking from the American Public and have a full span of appreciates for what we do . This is a problem. Dont have an answer for this. I have an observation and i share your concerns. On the other hand, if im to be completely selfish, i love the people that were getting, because they understand the commitment, they understand the fan brick, they understand their duty going in the door right away. So, if i was to say a Glass Half Full to that, they certainly are stellar contributors to our effort. John cordle, retired navy captain. Im part over the panel and last night i went to din with my two cohorts, we are all defense contractors. Were all kind of work on the same things, but were coming at it from very difference perspectives and different backgrounds, and then an rpf comes out and we compete against each other and one will win and the other one walks away with nothing. Is there a way to get away role in winner take all prospect of things . As i stated this weekend, im an unapologetic capitalist and free marketeeredle at the same time i have an appreciation for the Industrial Base. In the private sector, it leans more toward winner take all when it comes to competition. You can have a second best product that if you can put lipstick on it, you can sell it. When it comes to the question youre talking about, we have to think about this, because one of the feedback we got we had a panel in california that was fascinating. Wall streets impact on the department of defense. And it was all based on capital and the flow of capital for the Industrial Base and benefits and problems that lie thin, thin, ad two of therein. And 0 two of the feed backs let me back up. Norm augustine was complain about the industrial system and how acquisitions are the process really is quite painful. He said, richard, remember one thing. You are dealing with a capitalist free market environment. They are simply mirroring the system they see and they will capitalize on it. Its human behavior. So we have to change the system we have, and in that the question was, how can you provide compensation for those taking risk . What i mean by that is, you might all attack a solution from different angles and be very frank with you, thats what want. I want the most robust, torqued, tested, idea, competitive produced idea i can get, and only one person probably will win. But that doesnt mean that i shouldnt keep score and if in fact you have a stronger suit somewhere else, with a fulfilling the need of a requirement i have, the considering the ought to be taking place, and im not saying you strip away competition. Im saying this is this isodomon corporate meter all the time, called strategic sources. When you have those around you that provide solutions on a regular basis that you can say, okay, were going to have a sustainable longterm relationship. Youre not going to win every single one but youll be able to have a sustainable, market acceptable return so you can go to the capital markets, assess the capital you need to provide me solutions. [applause] thank you very much. Content is king. Contribution is queen, and she wears the pants in the family and if you think about that, the way i like to think about isis and others is that were in a content war. At 8 00, former msnbc news anchor, great a van susteren with her bark, everything you know about social media without having to call a kid. In social media everybody can join together and do incredible things, and there are stories about what others have done with social media. Social media is not really new. All thats new are these delivery platforms. Smoke signals social media. The party line, the telephone line, social media. Everybody on the block can get on the phone. What is so difference is everything is amplified in of how far you reach and the speed of the communication. Coming up tonight, epa administrator scott pruitt on his agencys pry ores and policies. Then alabama senator Luther Strange delivers his farewell address. After that, a hearing on the Legal Protections for Congressional Staff dealing with Sexual Harassment in the workplace. Epa administrator scott pruitt testified at the house energy and commerce environment subcommittee, saying he wants to restore power to the states and refocus the epas core mission. This is the first hour of the hearing ahead of mr. Pruitt leaving to attend a meetit

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