Acquisition reforms tos Bead Technology and systems delopment, and defense to Speed Technology and systems development, and the d defense secretary has gone to Silicon Valley to enga minds. We met with the assistant secretary of defense for resear and engineering. Next month schaefer is headingg to paris for a new job as the head of natos office of collaboration support area diaspora dod is trying to achieve and how it fits into the support of collaboration support. I asked how dod is trying to achieve this and how it fits into the broader goals. Schaeffer all strategies become hollow in less you have the engine to make it work. The engine in this case are the dod laboratories we have a today who can take some of these great products. We have seen a number of search efforts that are taking in the very best of these smsmall companies that secretary carter is reaching out to. But there are some areas where we dont see every company. I really applaud the idea of reaching out to Silicon Valley and other hightech areas austin, boston minneapolis. Even after we discover some of these technologies, someone has to integrate those parts into the hole. That is where our dod laboratories, especially research and development in the army and the navy do incredibly well. They take very us pieces and integre them into a capability. I think there is a great synergy between what secretary carter and others were trying to do with the Defense Initiative. A longrange r D Planning Program with our laboratories. The laboratories will be the engine that makes it work. Vago what is the role of the Defense Industry in the broader structure . Schaeffer i think there is a tremendous role. Ultimately, when we have a solution the Defense Industry will make the final product. It is a bunch of overlapping circles. We want the small innovator. We need the Dod Laboratory to work on innovation and we need industry to manufacture on a broad scale. Vago there are seven Core Technology areas as well as the llrdp. Schaeffer both the defens Innovation Initiative as well as secretary hagels initiative that has been fully embraced by secretary carter is looking at different lines of effort trying to get enhancement of how we think about wargames. One part of the Defense Initiative is a longrange r d program. Both othese efforts are going to be rolled out, roughly, in june and july. There seem to be some things emerging. Greater use of autonomy, greater use ofs dollar lower use of smaller, lower cost systems. There are a couple of things to think about. We are building more complex systems that are very expensive. In other countries, notably iran they have small, swarming boats. None of them are great by themselves but they have over 100. I think we have to look at cost versus quantity to give capability. Vago dr. Carter went to Silicon Valley to help make the department both a tract Silicon Valley and the technology a tract Silicon Valley and attract Silicon Valley and the techlogy community, but also to change the culture of defense. What is the best way to try to do this . To bring these ideas into a system that can be very ponderous, in which you have spent a lot of your career and complained about the ponderous nature . Schaeffer i think we have made some headway. I would do it through research and development of prototypes. One of the things thatlows our system down is a god series of regulations. We are trying to is a god awful series of regulations. We can cut and a normas amount of time in an enormous amount of time if we do prototyping up front. We are starting to see some really neat things coming out. We have within t the air force and tarp of the highspeed advanced weapon prototype. The army has a helicopter prototype. None of these are going to be final systems but we are learning a lot about how to build fast by doing s p. Vago do you have all the authority you think you need, or does the department have the authority, if it just used it more effectively . Schaeffer congress has been very good out wking with us. The only complaint i have right now is ththe length of time in the budget cycle. I wish i had a little more money that did not have an end date. We have to have flexible money to go along with flexibility. We have some programs, but we have to work better with congress to make them comfortable since they hold the power of the purse. Vago what would you scrap to make the system overall more efficient and effective . Schaeffer i would say layers of bureaucracy. If you take a look at a Program Manager building the system, he has to do 30 to 40 documents most of which are developed by a Cottage Industry and never read. Let the Program Manager focus on technical risks. You need an acquisition strategy. Beyond that, it is not clear ywhat you need. I think if you get rid of the bureaucracy, it will go much faster. Vago your job is to be the cooperation chief in paris. Not a bad g. You have spoken repeatedly about foreign systems and not having to reinvent the wheel. If there is a foreign system available out there, lets adopt it. What do you see us some of the richest areas where the United States could benefit from capabilities that have already been developed . Schaeffer we want to be able to Share Technology broadly. I look at some of the Electronic Warfare systems coming out of italy. Some othe undersea systems coming out of the u. K. I e tremendous opportunity. There are little projects. Estonia and latvia have incredible Cyber Defense capability. They have it for reasons i cannot talk about but they have the capabilities. We need to work with those and adopt those capabilities through nato. I see movement in that directioion. Nato is thinking very seriously now about where they are going to go now that the russians have become more aggressive. I see tremendous opportunity. Really stems from interrupt ability and being able to use things from x, y, z on a project. Interface so we can use the best technology of any of our allieies. Vago for more of our interview without scschaeffer, go to defensenews. S. Com. Vago four yearsrs, the nav has been opening thehe architectures of its once proprietary closed stems that were difficult and expensive toto upgrade. The gogoal has been to sft to a more open or plugandplay architecture so that subsystems and components c be easily swapped or exchanged. Weecently met th nick girton anand i asked him to explain how he is getting this pluganday approacho the navy. Nick better buying power has been a big help for several years now. We have been doing open systems architecture for navy systems for 15 yea in some cases. It has been a mamaturing process. We a are trying to figure out how we get more and more programs to adopt those practices. How doe change ourr architectu . W did we change our business relationships . How do we chanange our culture . All of that makes our buying pracce more open with more innovation and more competition. Vago some of those have bn very challenging bureaucracies. It is human nature that you want to have a proprietary system with the customer coming back to u, not having the opportunity to break away from you. Some of the proprietary flagship products you have, whether onon submarines or surface ships, have proven to be challenging. How are youoing this in an equitable way where ultimately you ask the customer what they want . Ninick we need to open those systems up as s they are bng ilt, breaking open into existing products s is very challenging. There are things we can do about that. We can dlare the architecte we have and open the interfaces so that we can choose the technology. I am really focused o on new contracts. How do we get innovation opportunities into w business lationships . We put out things like guguidebooksor Program Managers on how to do architecture in their contracts. That way, industry knows what we are looking r, and they can bring ushat environmnment, that ace to do innovation a and put in new p products regardless of where they come from. W want to exercise competitive alternatives regardless of source. We have a strong discussion about how we get traditional supplierers to bring iovation to our components. That is where intellectual property strategies become important. Vago l let me ask you about that. One of the more controversial aspects o of better buying power 3. 0 is the push to gain earlier input int intellectual property decisions and efforts that are done by the companies. What is your thinking about the boundaries and lines between what is intellectual property and data rights that arere the rightful place of the ntractor . What are the rights o of the customer as well . . Ckck we have a lot of friends in the intellecal properties space. A handful of government attorneys are involved in helping us through the process. We have some very powererful rights to intellectual property. We can share things among vevendors. The q question weeed to ask ourselves is when is it in our best interest to share formation. We really want the arctecture to be open how the intnterfaces wo. How do we geget capabilitieies from other sourcesnd put them into mitary productcts . Then, allow industry to innovatee on the other side of those in the other sidede of those interfaces. We have a more granular look how we getet innovation. Thats something we havent donene in the past. In the 1990s, when we were tryingo get more government inuence on how indudustry was developing systems, we allowed that trade space to happen at the contractorite. Of coue, they are going to do human nature stuff, just like you re saying. We need to start being smarter more granular buyers of these things. Vago does that mean, in many cases, to unwind systems to more individually compete . Nick i believe we should be th business integratoras well as technology integrarators so that we develoa finer edge to build systemswe have a better appreciation of th requiremen to do the specifications so that we can establish those boundaries at industry will innovate on the other side of without it having to be the whole system. That is where we have the next lelevel of maturity that we are veve excited about. Vago we have a lot of requiremenents for the process that we have tried to ststreamline. But we still have been a normans amount of uploaded requirements. What do we need and enormous amount of uploadeded requirements. What we need to do . Nick we need to focus on technical architectuture and get wn to the nunuts and bolts off what is haening. For areas that they are opening up and getting intoo detailed technical discussions withh the system architecturefor things ke unmanned aviation, a system being built by poc. Submarines are great exemplars. How do we take advantage of those activitities and make that a more consistent technical practice so that we can build a stronger business practice . Vago everybody wantso attract major commercicial firms. The problem is they dont like the intellectual property they have to hand over. R. What are some of the things you think need to be done to attract some of the most cting edge cocompanies . Mimick first nick first, we have to send d a strong message that we are not going to overreachn ip. When we e put sailors in harms way on aircraft, ships, on the ground, that we n take carare of them where they are with organic capability. Whenen it comes the innovation space, whats going g on under the hood, we havave to send a strong messagage that it is ok to innovate, ok to invest, and on the other side, we are going to leave you alone, but we are not going to do that blindly. Vago up next what i stood outside, assessing the situation. I knew it could rough in there but how rough . There was no way to know for sure. Hey guys. Daddy, its pink but hey. A new house its a blank canvas. And we got a great one thanks to a really low Mortgage Rate from Navy Federal Credit union. Pink so shes a princess. You got a problem with that . Oorah oorah open to the armed forces and their families for over 80 years. Navy federal credit union. Vago to imimprove care for woundeded warriors, the pentagon in 2000 eighght created ththe Office Warrior care policy to coordidinate the recovery rehabibilitation and reintegration r when did Service Members across the military. Joinining us now is the deputy secretary Deputy Assistant secretary for defense. Weome back. Jim i appreciate the opportuny to come back. Go it has been a very busy year for you. U came to the job toelp transform the office. Walk uthrough thoverall mission and some of the cnges you have been driving to better support woundeded troops. Jim theission of the office is to establish policy that supports servis to enhance the recovery and reintration of Service Members as they go through threhabilitation process that will hopefully lead them to reintegration serces or a Successful Transition to the civilian community. Vagogo what are some the changesou have been working on . Jim most specicifically, we established a strategi roadmap. It establishes parameters and performancebjectives for the next three y years. It allllows us to look at wh we are doing now as well awhat we will be doing inhe future e as the state of our environment changes. Our population is changing. Now we are dealing with a population withnique need weave to have the ability to shift ourr focus to meet those needs. Vagogo f for example jim iwe have an individual that is ing to have longterm care, such as a ncer patient weant to make sure we have the resources to support that care the reintegration and the rehabilitation. Vago what are some of thnext ems on your agenda . What are some of the changes coming . Jim we are enhancing o our operational war Fighter Program which is a federeral program that allows us to partner with proximimately 700 federal agencies and create internships for the militarary. They can reintegrate into the service or transfer into a civilian job that allows thehem to use those skills. Go you are talking aut other agencies. How do you guys coordinate not only with the e v. A. But with private charities and other grgroups trying to help tho woundedd whoho are still in uniform as well as those who transitioion out . Jim we collaborate very well with the v. A. Weave a joint executive committee. Enhances our relationshihip and enhances the suppoport between the dod and the v. A. We are working on c case nagement tt will allow us to seamlelesslyransfer an individuals portfolio into the v. V. A. Stem. That allows the benefits pross to be speded up. Go so it is a more streamlined thing. Jim exactly. Vago we have about 30 seconds left. Talk to usbout how youre trying to coordinate with some of the private charities andll of these other groups. You are looking at this from a very Strategic Perspective whereas some of thes organizations may be have shorter life spans. Jim we have the Natural Resources directory. We have about 1800 resoues we can use to support men and wen as they transisition out. The process of worng wh these organizations, we make sure we ve a vetting processss to ensure e thathe organizations we are working with are ones that wilill supportur wounded warriorsrs as they transition out. Vago have a great hoday. Personal finance expert jeanette mac gives us titips on developing an Investment Strategy. Jeanette it doesnt matterf youre young middleaged approaching retirement, or retired. It is never too late to invest,t, especially if you are worried about outliving your savings. Even if you didnt put enough away for retirement, you still have options to build a nest day. The shorter the horizon, the less risk you want to take. Any Investment Strategy should include maximum contributions to a 401 k for those in your family who may not have a retirement plan, opening an ira makes a lot of sense. Some require you to start making withdrawals at age 70. 5. Investing later in life means Wealth Preservation will take center stage. Talking to a Financial Advisor who can help you form a custom portfolio is really the way go. Creatining one on your ow can invite more risk. Last but not list least, having insurance is critical. Review your health and Life Insurance policies and get supplemental Life Insurance if you need it. Getting a good gauge on your complete finanal picture will set you up for a much happppier retirerement, whenever that mayy be. Vago vago as americaas competitors adopt a novel approaches to confound u. S. Forces, its titime for the pentagon to draw on innovation. Among the most Important Missions of world d war ii was Jimmy Doolittles 1942 raid on japan. Some four months after pearl haor, the legendary aviator led 16 bombers to attack japanese cities. The raid was d dreamed up by a submariner and executed perfectly in total secrecycy. It used available resources and audacity. Evenfter spotting the america carrier task force, japanese leaders didt respond because they concluded u. S. Naval aircraft did not have the range to reach japan. Theyidnt consider that thehe carrier was c carrying longrange army bombers. The raid lififted americas spirits and stunts japanese leaders, who expanded their security zone to defeat further attacks. Americicset up a trap that sank four japanese carriers. That put japann a path to defeat. On this memorial day, salute all who innovated for theirountry. Lets learn from their sacrifices. If you have any comments about this showr suggestns for future coverage, please email me. As you enjoy this memorial day weeken please take the time to remember those who h have made the ultimate sacrifice for their country. I will be back next weekt the same time. Until then, have a gre week. Welcome to world news tonight. Epic floods. Record rain and the fastrising waters. Destroying homes, trucks, even bridges. A First Responder losing his life trying to save others. And tonight, the tornado threat stretching across several states. On the hunt. One suspect behind bars in the torture killings of a washington couple, their son, and housekeeper. The new clues that could point to more suspects. Who are Police Looking for . Stressfree travel . American drivers crowding the highways, setting a tenyear record this memorial day weekend. Well show you a way to beat the traffic. And, crash landing. The holiday spectacle going terribly wrong. The flagwaving skydiver slamming into power lines. All of it caught on camera