[captioning performed by the national captioning institute, which is r responsible for its captioion ntent d curacy visit ncicap. Org] vago welcome to defse news. Improving amphibian power worldwide. And, how the navys balancing costs and requirerements as it develops a newew summary. First, the United States seems to remain ahead of increasingly tech savvy adversaries. A new dot dod Cyber Strategy makes it clear that t United States w will use all means at its disposal to respond to cyberattacks. Cacarter calleon technology to improvNational Security. To bridge the cultural divide, carter wants a new office in Silicon Valley to facilitate cooperation with a pentagon tat remains slow moving. Carter at launched a new prprogram to develop cyber protections. S. Here to discuss former pentagon industrial chi steve government, now with the atlaic council. Thankou for joining us. Steve, wide using carters initiatives e so important and does it really mark why you think carters initiatives are so important, and does it really mark a change in h how the pentagon does business . Steve thehe fact that the pentagon that the secretary uses onene of his early days a and tenure to put his personalal stamp on this initiive, that he thinks engaging Silicon Valley is important, i think isis quite a g deal and one that has significance both fofor its audience in silicon valle but also for the Acquisition Management and the people whoo Pay Attention to what the leleadership tearsrs about. One of the thigs he drdrove home at his lecturet stanford was how was attracted to National Securit byn i found it rereally profound. It hearkened back ton era en he entered the defense sector. He was at stanford and he was asked to work on natatural National Security problems. This lk betwn academia and e departme of defense is something i think he is keenly interested in restoringng. Vago talk to us a littl about how wall street is reacting to this. We do view this as a Key Initiative to for dr. Cartrter. How should companies be responding to his message . Byro it has been crickets very quiuiet. Companies e reportinmarch quarter results. I thinu e seei se strategic chanange. A commercial cber technology that can bridge so of these gaps between defense and commercial is one manifestation. Thene ve the wholeles a sex whole spacex ve into launch, which has changed the way this whole business has been run. Vavago steteve, give us your sense on thihis. Part of what dr. Is s trying to do is drive culturere change, which he has talked abo over and over again. Tracting the best talent to the department is sothg he discussed as deputy as well. What is it going to be likeo drive this cultu change, and do the spacex cooperation with the air force mark a path on how you can harness some of this . Steve inthink when y talk about the nd to drive culture change, i cnot help but recall what i felt was one of the most interesting partsts of better buying power. One point secretary carter unched in 2010, the quote i recallim s saying at that t time for year five yeyears ago, ii dont do culture. I think whahe learnedn that job anas d deputy, and that he brings to his tenure asas secretary, is t that you have to do culture i if you want to change the system. I think the symbolism of this was important becau it t is part of the foundation of changing the culture. The Pentagon Acquisition is to change peoples sense of whats important. That mayound soft, but i think it is imptant. Vago think one of the things he was trying a copy at the time was to mamake more clear ruless to move the process along much more quickl obviouslsly, somof those ngerrange skills. Byron, talk to us about spacex. Byn i thinknk it is imptant to recognize that this i is not st about cyber there is a broader range of technologies thacommercial is really dving at this point. It is not just cybyber. Space launch has alreadseen this cnge, but there is a lot going on in the commercial world that i i think the deparartment o of dedefense has to look at longinglyy and try to tap into and bring ininto address their mission. Vago he paradigm of buyi th most of the coverage of these events have e featured was the idea of t the pentagon buying frommall startp, venture finanancto Silicon Valley firms venture financed Silicon Valley firirms. Marketing back to spacex, the most interti thin i he seen was a panel a couple of weeks ago on space launch. On theanel was the ceeo of united launch alliance, the president ofof s spacex, a Senior Executive fromom aeroj, a senio executive from blue origin. On the stage was the old space indust, a couple of new pieces ofof the space indusustry, a a ki of variety and competiti amonghem,m, i think, is what we are really trying to engage. E. Vago talk tos about one of the Key Takeaways from a podcast ash did onn the kind of companies he wants to compete in this space. Steve there was an andriys s and podcast that secretary carter did. I think was and driys reeson podcacasted that secretary carter did. I think he wanants to see ese Companies Deal dirtly with the artment, department, not an intermedry. Vago guy thank you for joining us. Coming up, h how t the mares willl use new ships to project power worldwe. 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 for more than aecade, the e marinene corpsps has been working on a plan toreate more amphibious o options. We met with marine Major General bob walsh, the Navy Director of exposition expedition warfare at the recent trade show outside washington. I aske how the marines were improving ththeir amphibious war fighting skills. Even during a rack and afghanistan, we always h had marine uninits deployingng with h our amphibious ready groups. We always have that Knowledge Base out there, but its like any organization. When your focus is not on it you start to lapse in what you shld be doing in innovative ways. Saw ourselves coming out of iraq a a afghastan pututting a lot ofof focus on gegetting back to our merit tom maritime routes. We focused on reorganizing reequippingng. Could see it in aot of f the documents s coming out, things liketrategy 21, a lot of large exercises onn theast coast and west coastst, those things have taken a lot of f focus. A lot of our colleges and universities are putti emphasis on rentegrating these services. Vago its goodhat you say that because you are the war chief for the entire navy. Y. Youre nottooking at ththe marine pieiece or r the vy pieiece. What are things you are dog to get sharprper in the game . Istarts with ccepts,s, developing conceptpts. Bringing newapabilitieforces you into new concepts and how you e going to use them. A neshipike the bideck of the america, bring tse in. How aryou ing toto use those . You have pretty good procesesses througthe war colllleges, quantico, u. Mare forces. Inging thosese together and developing concepts lookingg at wargaming and exercis, i think ose aree the kind of tings that blt t buildlding blocks to bring new capapabilities. Vavago you have muiple classes of ships coming on but to i want to talk about. First, the multilanding platforms, as well as a new amphibious staging base that is going toe entering service next month. Tell us how these are very different looking g ships from folks those folks normally associate wi amphibious warfarare. One of the e things in the common outlookok was how do we getet the most out of the capababily we have today its waysood to look k over the hawaiis and over the horizon at w what we can develop. Whatan we do with what we have today . Reorganizing, repurpose thi repurpose thing the pabilities we have rit now. We have a ship with a lot ofof real estate, a lotot ofoom. How can we use that differerently in the future t than what it is design to do rightht now . To be ableo get car go off of an lms are, a largrge cargrgo based cargo off an lmsmsr, a large cargo based s ship. Putting flight deck on it, turning it into a floing aging base repurpose thing it in a different way to be able to relieve some of the pressure is exactly what we e lookoking at doing. Vago youre looking at a fundamentally new design. The current amphibious fororce was really dictated inin the mid196060s. All most all of your equipment is bigger and heavier now than it was. What are some of the chaes i the requirements and the fufundamtal capabilities s thes new shships are going to have. Wjustent through a really long pcess the nior leadersrship i invold between the, don, the secretatary we hadim pcess r reviews on three or four different occaonons. Its not typal to o have that kind of senioreadership p early on. We talked about this new normal opatinenvinment we are in today. What whave reall seen with r amphibious ships is tha they are operating in an aggrated manner. Stead of goioing o with a standard three ships only staying togher, the lsd that we areepways tied to the other two ships certainly to the hague deck bibig deck, we arare going tstart splitting ships in these aggregated means ande need t have ships that can operate in anndependent fashion. We looked at what are the capabiliti we ally need. If youre goingng to opoperate independently, you need commandandcontrol capability that allows you to operate in an independent mannnner. The other pipiece that was a key component was aviation capabililities. With our 2 22s and how imimportanant they areo the force, being able to o have aviation capability on t the shihip. Ththey h a landing platform, but it was not able to operate a maintenancee deck, dit have a hangar. That was another piece we felt was important. As we went through the process we looked at the ships that we available to us, and we started lookinat thehe 17 class that we have right now, a a wondnderful ship. Loo at th and said the shipip is very capable, but too costly. We loed at it could we go to an alternaerve of that ship, andnd alteativee hold . That derivativeou have some cocosting capability trades. We looked at it said and said it wou be modera cost with moderate risk. It w a clean design. From the keel up, w what would it look l like . Thougught that would have moderate cost but very h high risk. That is why we decided to g with the derivative. Vago very briefly, uss amererica isis a very differenamphibious shship. Yoyou have been operating it out there. What a some of the lessons you will be learning ababout w to destroy it to it in the future . That ship and its sister ship do not have a well deck. Theyey areery focused on aviation. 1. 3 million gallonons of fuel as opposed d to just over 30000 th we have today. A lomore hangar space. A lot re opportunity for ordnance. We see t these marrying oseys in the future, with thehe joint Strike Fighter bringing in the fifth geneneration capabilityty we are goining to have. Thesese arere goingng to be new capabilities we have never seen befo. They arere goingng to operarate complete different when we lk aut notust marines going to sre but in support of theallast force. How is it going to wowork with carriers, cruisers, destroyers . Vago up next, getting the requirements right for the navys top priority program, ago t navysop program is a neclass of Ballistic Missile submbmares. It the navy wants to buil12 nenew submarines, each of which will carry 16 trident clear ps controlling costs is a top priority. We metith the dirtor of undersea warfare at the navy leagues recent c airspace conferenence a and tradeshow. I asked how the navy was making tradeoffs to save moneney that wont cost future headaes gigiven the subs will be in service for decad. We a are working very hard to be sure that we are ot ewards of the ameran dollar, but at the same time, i have to be able to loo you in the eye and every american i in the eye and let them ow that we are building the t ant were needed to contribute to returns. We have the bomrs, the icbms, the sea bass leg, and right now the marine force provides a little o over 50 of that triad. Under the new start treaty, which comes s into force in 2018 the e summary in force will be 70 the accountable nuclearar warheads submamarine force will be 70 of the accountable nuclear warheads. And this forceill be in contntrol until the 20 80s. So we have to get that right in terms of cost, but at the same time, ensuring you have the right requirements. Go whaare some of the core requirements that have to be in that s . You guys traded d apart that some people thought would be necessary to operate. What are some of the court capabilities as far as youre concerned . Thehe biggest thing you have to worry about as far as new construction is stealth. Elements ostealth have to be baked d in at birthth. To go in and change the e entire propulsion plan because you have come up with sothing or realize youre not stealthy enough, that would be very cosost prohibite. Ththat is the biggest area w we spend a lot on. We are putting some new technology into that. At the s same time, to be sure we get that balance there are numerous other aspects of the program being pulledthrough fr ohio. For example, the Missile System itself is not a new w missile syststem. It is a d5 missisile system with a life extension. The strategic weapons system at controls the ssiles is being pulled through fromm ohio. All of our fire control and sonar Imaging Systems and periscopes Electronic Warfare systems, all the compuputers, if you will all that stuff is being pulled through and leveraged. There is tremendous synergy and cost savings w when you have that leraged off multiple submari platforms anand pipes, and that is when we get a lot t of cost savings. Vago thevirginia class is coming online. The Los Angeles Class is still the backbone. Those numbers are going to decrease as the replacement comess on. You have already traded d a few off those ay t to get some resources for the longterm program. Talk to usus a little bit about how you make some of these decisions on which r requirements you are not, givin given that two thirds of the requirents are things you cannot meet bause you have higher pority missions . Ita ve delicate balance, and you are absolutely right. We a only meeting about six he 5 of our comombatants 65 of our combat and requirements. The minimum needed is 48, and we are going to drop b below that, into the 20s. We hav to watch that vevery closely. I think i mannedystems wilbe part of ththe future in order Unmanned Systems will be parof the future in order toto help fill in some of tt gap. Thats why we put a lot o of emphasis on thehe virginia payload, which is part of the block ththree ss. Vagogo starts with north dakotota. It does, and johnarner is right behind. John warner will be going on sea trialsater this week, so we are very excxcited about that. It kind of segue into the block five, which will have the virginia payloload module, ich is similar to the virginia payload tubes, similar diameter but it is a module of four insteadd of ju thewo in the valve on the block threes. Vago and you guys want that it will revolutionize how you use e boats. You hahave a lot of internal storage for manned underwater vehicles for special operations payload, but one of t the chlenges has beenow to get that payload in and ouout of the whole of the summary and smoothly, given ththat it is a ve delicate evolution ut ofhe hall of hull of the submarine smooly, given that it is a very d delicate evolution. The you is a referce to the fact thathey can help with different payloads. The e large diameteter unmanned undersea vehicle would be onef those. The foowon to the current seal delivery vehicle, whichch is a Shallow Water combat summer civil, somay we hope t that will also be on the as well combat submersible, somedaday we hope that will be on there as well. Those are two o great examplples of payloads. E arm willxtend out of that tubehe 87 inchiameter tu extend up, and then a little platform will, on t vertical and allow what ever is sitting on that platform too then deploy itself, get underway, and go do what it does. Thisis is huge foror the submarine force. You u are talking about if you take an indition, a submarine being in two placeces at once. That is real force m multiplier. Ain, we onlyly meet 6 65 of our mand nowow, so this the kind thing thawill r really hehelp usus to fulfill our r requirementsts. Go on this weeks money minute feature, jeanteack tells us how to take your business to the next level. Jeette thank you. If your business g growth is at a standstill there may be several faors as tohy. Only you as the Business Owner will really know. But you may want to takake a look atat your cash flow. According to a Small Business association, cash flow i is lifeblood. This is s because withthout knowingg your cost and expenses, you wont know what incomeme you need to makake future investments in your business. To g get a sense of f if you have your business sh flo under control, ask yourself, what is my cash bance right now . What is going in, what is going out . And then, what do i expect my cash balance to be six mont from now . If you cannot answer these questions, cash flow may be the reason your business isnt growing. Thats. There a are things u can do. Talk to a financial expert about options. There are lines of credit and business credicards whwhich can he with manang your cash flowow. Vago thanks very much. We wilsee you next week. If you havevago he send a perful signal andnveileled a new ststrategy to deter Cyber Attacks by making it cleaear amererica would usese all. Means in its power to deter attack dod is to deter attack. As potential aersararies nararrow the war figigh