Pennant. He will take remarks and then well have about 10 to 15 minutes for questions. If you have questions i would ask you to limit to one in a followup. With that thank you. Good afternoon. I appreciate the opportunity to brief you on the president s request for Missile Defense agencies 2018 budget. The Agency Requests to continue the development of reliable increasingly capable for our nation deployed forces, allies and international partners. The fiscal year 2018 Missile Defense will support the deployment and of accept sores and command control management Communication System for bmds. A priority remains the delivery of greater Missile Defense capacity for the war fighter which includes investment and advanced technology and future capabilities. Next chart. Mda remains committed to delivering, expantding and sustaining our homeland Missile Defenses and requests 1. 5 billion for the ground based program. Today we have in place 36 ground based intercepters on track to expand the fleet to 44 by the end of this year. This bucket also funds flight and system ground testing over Homeland Defenses and enhances a stockpile and expands the gba battle space. Fire control and kill Vehicle Software to improve capabilities which is the ability to between lethal and nonlethal projects. We request 358 million to complete the design, purchase critical components and initiate subsystem testing. This radar which we will project will be available in 2020 is a critical sensor that will improve discrimination while supporting a more efficient use. Mda requests 131 million for the radar which provides precision tracking capabilities and participates in flight tests. Responding to the request the fy 18 Program Includes funds to include the time to 330 days in order to expand Contingency Operations for defense of the homeland. This budget request includes 28 million for refurbishment. The senators and alternatives conducted by the Department Found that a next near term critical step in the pacific is to deploy a radar in the pacific. They plan 5 million for a study to assess appropriate tracking and discrimination sensor to support the defense of the United States against immerging missile threats from iran. Finally we are requesting for the enhanced Homeland Defense radar hawaii to conduct source selection activities. We plan for the delivery of this radar by 2023. Next chart. Moving now to regional defenses. It is 1. 7 billion which includes the fleet. Mda will procure missiles for deployment on land and later in poland. Along with associated hardware and support costst. It will bring missiles to 287 missiles by the end of the 2018. Mda will procure six which youll support Operational Testing and our commitments or epaa. Beginning it will upgrades hardware and software. The president s budget request for the terminal High Altitude is 797 million. It will allow us to support the maintenance and upkeep as well as all training devices. Limited irbms and Ballistic Missile threats and armys battle command system planning process. Mda requested a total of 524 million to support the radar fleet which includes support for up kbraded Early Warning radars and 12 radars which includes radars in japan, turkey, israel and the u. S. Central command. It supports to give improved ability to discriminate. We will also transition continues long standing support to include procurement and weapons system and the arrow weapons improvements. Epa phase 3 is expected to be and requests a total of 90 million. Phase 3 will consist of upgraded version with a new variant to block 2 a. Next chart. Developing technology for integration to defeat future threats. The Investment Strategies balances the need to address the most dangerous current threats with the need to position the u. S. To threats developing in the future. Mda requesting 259 million for the mokv. They have accelerated Risk Reduction and Product Development phases in the 2025 time frame. We are requesting 75 million for defense. A program to established. The fy18 plan will begin to current assets and to find requirements and architecture for future demonstrations. The directed energy request is 54 million will ch will allow to continue the scaling of a low power laser demonstrator. Additionally they request 52 million for space efforts. This will fund space tracking and surveillance systems. Sdss consists of two satellites which pro vietds Risk Reduction data for tracking and surveillance consolation. We request for Battle Management or c 2 bmc. It allows c to for multiple radars, uewrs and bmds infrared or opir. Well complete testing of 8. 23 in support of bmd engage on remote functionality and we will continue development of c 2 bmc to support integration of long range discrimination radar by 2021 to support a robust home land defense capability. We are defending 410 million for the trargts program and 306 million to conduct 23 ground tests and including critical operational flight tests one of which will involve phase 3 architecture. Next chart. In summary it helps maintain commitments to the war fighter and to the nation to push forward with improvements to regional defenses. Well take a few questions. [ inaudible question ] how is that being laid out . They identified the need for additional sensor coverage to enhance the defense of hawaii. Let me be clear hawaii is defended now with the current system. As we see the threat continue to grow they identified the need for additional sensor on the hawaiian islands. We have 21 million requested to begin the request for information from contractors. So no plan to go under the radar if you put together another or anything like that . The study that it is not a sufficient radar for that need. This will probably be a radar. Again, we have to do the study. It will probably not be quite the study but definitely more than antpy2. And with the defense plan russia and china have demonstrated these capabilities, why did it take so long to respond and start this program . We have been looking at the generic threat factor for some time. It was just language start a pr been doing studies in that area for a while. Also, why is iran now fairly prominently in your budget request, is it a new threat that you expect to be operational soon or Something Like that. Iran has always been part of our original charter, both north korea and charter have been part of the Missile Defense agencys charter. Take back there, first. Sir, its a small piece of the budget but got a lot of excitement and interest around it. You hear things about a long endurance, uav but that clearly not what youre buying now. Youre buying these more as a testing step towards that . Yes, so our low power laser demonstrator is in fact a stepping stone to that. One of the things is looking at the platform, which we would not develop, we would either lease or have a platform that we would use for testing. And our focus is actually on the laser itself, scaling the laser up in power, reducing the size and making it more efficient so it could be on an air borne platform. Thats what were doing is the demonstration of that, thats correct. The budget for the integration transition plan. And what is the thinking right now in terms of boeings contract expires at the end of 18 you guys say signal industry you want to bring it in house. How much money is in the budget for that plan . I dont know offhand. Ill have to get back to you on exact numbers for the transition. The boeing ill be clear, the boeing contract is not going away at the end of fy 18. It continues. I thought you were looking to transition in house . There are portions of that effort that were looking at a lead system integrator thats bringing the entire system together. Were looking at competing that portion of the effort. Hypersonic, thats actually a new program. What are you going to be upgrading with new algorithms to counter potential threats . Sm 6, which symptomstems. What the capabilities are that those systems may have and if theres software we can put into that. To get back to your question about the lead system integrator. I believe we have i have to get the exact number for you but its about 37 million starting in fy 18. To begin a transition to do the computation for that. To complete the lead system integrator part only. Boeing will still be prominent in the effort, but in the Ballistic Missile program, but just the lead system integrator portion of that. That would be open to a competition. Yes. Okay, i didnt realize that. Hi, i wanted to ask about the atlantic radar study that you mentioned. Yes, maam. Can you elaborate a little on what youre looking at, is it location, type of radar, have you ruled anything out at this point in terms of the type of radar youre looking for . This is a study and part of the ballistic Missile Defense review which is ongoing down will inform the results of that as well. With the atlantic radar, how exactly where exactly are you thinking about putting this . Is this a new requirement thats come up recently . This is just a study were doing in the Ballistic Missile review. You had an intercept test that was due to come up fairly shortly which would inform some budgetary decisions. Do you know if that test is due to happen soon or when thats expected to happen . Were coordinating the resources associated with that test and when those resources are available well conduct that test. You have a joint Development Program for the aegis sm block 2 a with japan. I notice the funds are going dramatically down and seeming to be phased out. Is it just the natural end of the program . Yes, were completing the cooperative program with japan in fy 18 is the last funding, 60 million for that. That missile is going into production and were starting to produce that and japan will be buying some of those rounds as well. Thank you. Expanding it to 330 days out of the year, was that a recent urgent requirement from pacom in response to the north korea threat . Its a calm bnz. We have had originally budgets for 120 days and in the last few years we have been operating closer to 200 to 220 days. And were recognizing we need to put that in the budget. Two months ago they said we need no. No. One more thing. The aegis short sights you have in romania and poland, it says in here youll initiate an aegis study. Is that related to potential expansion of that capability to other nations . Im not familiar with that. We do have the site in romania which is operational. The site in poland will become operational by the end of calendar year 18. There are ongoing discussions regarding aegis assure applications and other things which is also part of the bmdr thats going on. I think its related more to protection of those sites . So i think i might have had that one wrong there. I see. Okay. That could be. Okay. I wanted to ask an overarching question, sort of this budget comes in advance of the ballistic Missile Defense review. How much of this could be considered a placeholder before changes are afoot . You know, theres certain areas where it was a struggle to figure out whether to invest further before you have some direction from a review . Just curious how you work out a budget in advance of all this. Because changes could be imminent. Theres nothing that we did that would preclude moving forward, for example, the atlantic radar study recognizing that may be something that the bmdr may suggest so we recognize that. And those other types of investments, so we try not to preclude anything in advance of that. And we did that with the thought in mind that the bmdr would potentially inform us as we go forward. So were prepared for that. Okay. The move from 36 to 44 interceptors by september 30th, is that the plan . No. No. Calendar year, 44 by the end of this 2017. Calendar year. How much is that contingent on this next gbi test . If that fails would that derail the movement to 44 temporarily . No. No. We would continue. Were continuing to produce those rounds. Those rounds are essentially for all intents and purposes are essentially almost done. The ce 2s . Ce 2s, yeah. The most advanced version. Yes. Yes. On your schedule you talked about having a second gbi test, budgeting for a second gbi test, would that be fiscal 18 . Right, that would be 18. Two tests in 18 possibly . Not right now. Right now we have one planned in 18. Ftg 11. 15, 15. 15 comes before 11. Gbi math. Okay. All right. Anymore questions . How much have you brought forward for the multiobject kill vehicle . Its said its been accelerated slightly for introduction in 2025, what is that relative to where it was previously . We were looking at the 2030 timeframe. This additional funding increase will bring it to the 2025 time frame. About five years, roughly. Israeli cooperative program, every year you come in with 150 million. 147 million this year. Expanded to 500 million by congress. Where does that money come from . Does it come from other agencies or do you have to shift money resources to pay for that gift . Those funds are appropriated by congress, so theyre the ones that we request, as i said this year were requesting 147 million. Congress determines how that gets financed. If they add, like 300 million does that come out of mda, do you have to shift dollars around . We dont do that. Congress makes all those decisions. I cant tell you where the money comes from. I dont know. Okay, thank you. Thanks, guys. Cspan, where history unfolds daily. In 1979, cspan was created as a Public Service by americas Cable Television companies. And is brought to you today by your cable or satellite provider. Today on capitol hill, hearings continue on the president s 2018 budget proposal. Some of the Department Heads briefing lawmakers on their budget proposals today, include budget director mick mulvaney, john kelly, commerce secretary wilbert ross. And next here on cspan 3 well take you to the Senate Finance committee hearing. Theyre hearing from treasury secretary Steven Mnuchin. Its his third consecutive day testifying on capitol hill. Were live in the room here as the hearing is about to get underway. The treasury secretary yesterday telling lawmakers over in the house that they should vote to increase the governments borrowing authority, the debt limit. And avoid a disastrous economic default before their august recess. The Associated Press reports responding to that testimony within hours the conservative House Freedom caucus said it would oppose such a vote unless certain conditions are met. Again, treasury secretary Steven Mnuchin on the 2018 budget momentarily. On your screen, South Carolina republican senator tim scott, member of the finance committee, theyve gathered this morning to hear from treasury secretary Steven Mnuchin on the 2018 proposed budget from the white house. Which came out on tuesday. Secretary mnuchin, his third day up on capitol hill. He was before the ways and Means Committee yesterday. If youd like to see that hearing its online at cspan. Org. The senate itself is in session today, taking up a judicial nomination. They get underway in 25 minutes, 10 30. Theres the chairman, the house is also in session. Its their last legislative day of the week with a special election underway for the seat, the at large seat in montana to fill the space vacated by ryan zinke when he became interior secretary