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tv   Defense News with Vago Muradian  ABC  May 17, 2015 9:00am-9:31am EDT

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♪ vago: welcocomeo "defense news." i'm go muradia. a new initiate by the uso to help troops and families transition to civilian life, but worst, deputy defense record terry last year launched an effort to develop ways to keep the u.s. military ahead of adversaries that are fielding incrcreasingly sophistated weapons. this new strategy would develop new u.s. technologies as well as operational concepts to defeat or offset these foreigign advantages. for e example, china, rusussia, and a ran on investing heavily in missiles too keep u.s. forces far from their shores. with long-range missiles, cyber electronicarfare or swarming
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tactics and systs. joining meme today -- twtwo analysts workingg on optptions to help develop a key strategy. bob isith the center for strategic and budgetary assessment. welcome back. full disclosure i know i have participated in some of the discussions you guys are going about doing the serious work here. talk to us a little bit about the complexity city about the specific sets s of challengeges that we face.. folks are being g more open about some of the things we are facing specifically in our abilility to operarate around e world. bob: he's tryiying to o restore u.s. convtion protectionn capability, and we essentially face for core problems. ports and airfields are increasingly vulnerable to attack, and we rely on those bases to project power. second is surface combatants including aircraft carriers, are increasingly subject to being
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tracked and targeted an extensive rangeses. third, network and defenses make it difficult for non-stetealth aircraft to operate, and forth spac is no longer safe. you look at thoseour big challenges we face and weeed to think about how we project power differently, and that is what he is trying to do in this effort. go: that is the third obsessed ready. nuclear weapons was the first. precision and data revolution was the second in the 1970's. then, you ve a slightly different waway of looking at it right cap one of the ways is the technological challenges. he is shooting at big betas he develops the strategy. ben: he is. one of thehings that is happening is a large pool of demand for innovation. there are a lot of folks around the pentagon asking what we are offsetting. that is usually an issue of them
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saying they do not like what bob has chosen to offset, rather than a lack of clarity on bob's part. the challenge is not just how we address these principal probls but how we address other issues in the cyber domain, human capital, especially with costs across the board. vago: you've also been talking about hedging strategy. walk us through what you are talking about. ben: it's a simple concept. i agree with the focus on the pencil challenges that we just laid out, but in addition we have multiple other issues we need to address, so rather than focusing on a pool ofig bets, we need to spread that risk over a more balaed pool, andnd that is establishing or reestablishing a higher mix so that we invest in lower-cost but still capable systems. bob: i think that's right. i think the big challenge is that the services -- service has
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had a lot of momentum and bureaucracy, so institutional reasons stay on the path they are on. trying to change that supertanker at the department of defense is very challenging, anand i think that's one of the bibig challenges they face. vago: you guys were here a couple of months ago. but what is the update on the defense innovation initiative, the long-range research and development signed -- what is an update as to where all these different pieces are? there was a sort of major address at carlisle barracks focung on a major issue. we saw dr. carter go out to silicon valley and make his pitch. what is the status of all of this activity that is going on? bob: i would say it's a work in progress. they have establishshed a series of mechanisms to try to work on these big ideas. as you mentioned, there's the long-range r&d planning program that is kind of theechnology
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piece. also, the deputy secretary of work launched an effort to reinvigorate wargaming and all these efforts are working together to try to figure out the technologies and new operational concepts to offset these adversarial investments and disruptive technologies what hopefully, will be seen in the next budget. not mucuch time in this administration left, and i think the next big thing to look for is what is folded into the budget next fall. ben: i think what we've really seen as the execution of the planan is intended, and i think he has s been successful in that. number of allies s have become very interested this. we are also seeing regional partners throughout asia wondering how they fit into this regime which will be challenging. i think once the department of
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defense figures out where it wants to go, it will move out weekly. the other important factor is we've had secretary carter arrive, someone equaually synced in the military history, and i think they've established a very good division of labor. the speech at stanton was, i think, an excellent initial statement of intent, and focusing down on specific operational challenges and capability investments. it's a good talents. vago: what is going t to be the yardstick for success here in many respects as you look at it? how do we know we have succeeded? some people look at this and say we are so all -- far in the whole, ththat we may actually be in a hole too deep to dig out of. bob: it takes a decade or more to really realize these things. that's the first thing to accept.
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you will not have a tremendous matterhange over the next year or two, but t a big m metric c for me would be gaining some consensus on what is the problem, what is the operational challenge we are trying to offset, and then some initial down payments on new technologies or concepts for dealing with it. to me, that would be success in is coming year. ben: i totally age. we will see this posited inertia and budgetary changes made, and we can offset the conditions for ongoing innovation over the coming decade. go: folks haven'in that sea of looking at china and what ina is doing, but it's a ch broader problethat just china. bob: a absolutely. you mention of the proliferation of missile technology, and that is mucbroader than china. this is a bigr pictcture issue than that. i think e challenge we face, too, is in doing this, it meanss there will be winners, but when
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youu have a planning fense budg, that interfax a means -- that ipso facto means t there will be losers. it's going to be hard.. ben: when we think about this gio strategically, china is part of a global system which means there are multiple instrumements we have with which to engage with them. hopefully, there will never be a kinetic military one. and we look at smaller, more isolated states that could soon have this capability it's a much more diffilt political as well as military probl to deal with. vago: the kd of leaders that are animat, strategic, do yoyou sense that -- sent that there is a groundswell where people see this lynch point in history, and they are coalescing our own in track double problems and yoyou
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need broader structural change. is there a genuine sense that real change is needed? bob: i certainly h hope so. i think we are headed in that direction, and i think the selections for those leadersp positions are excellent. i am cauously optimistic. vago last word? ben: we are definitely playing th the a-teaeam at this point from a a civilian leaeadership perspective, and now we have a grgroup of people which have all been selected both in terms of their military functction, if that's ground combat or air transportation, and ththen also their ability to engage with civilian leaeadership, if that's at the departmenent of energy come to department t of state -- it alalso shows that our senior leadership have picked these people f a very specific reason, and that's a good ink. vago: tnks for r joining us. we appreciate it. comiming up, building the world's bestuclear a attack submararines. you'reatching "defen
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vago: america's closest defense partnership is between newport news shipbuilding and general namicslectric boat tbuild the nation's viinia class nuclear attack submarines. they are 50/50 ptners, sharing nstruction of two said to year. as t the first chip, uss virginia was commissioned in 2004, 12 more have bebeenuilt, 11 of whichre in service, and nine more are under construction at the wport news yard in virgin. theavy plans to build 48 the ships, each of which cost more than $2 billion and is expected to operate for mo than 30 years wiwithout refueling. while electric boat s started dedesign program to devep new ballistic missiles, a top program fofor the e day become the ouook for cooperation on the program is unclelear. we went down to newport news where we met withth jim hughes the mpany'vice presidentr submines.
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i asked about investments the prrams makingg and how they are cutting the e cost for virgininia class production. >> using a broader team d just cost and elelectric boats,s, it really is the underpinning to the suess of the program starting witthe navy, our suppliers, the shiuilders, and, really, it started wi a fundamental set of stable reququirements. the navy has done a really good job of having stable requirements throughout the prprogram, a good c change management process, willing to vestst in thihings like design for affofordability,o, consequtly, we have hope thathe shipyards at ourur suppliers continuous imovement programs that go on day today. we either invest in opportunities, or we'd designed for portability and investments like was done from block to to block three. as you come e down the learning curve, there's soso much you cacan take outrom both praractice and doing things slightly better. as you get on the part of the curve where we are, you hahave t to make a depth functn c changes so i it's teamwo investment,
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quite frankly. vago: what are some of those step function changes? wewe just toed the facily with the irreplaceable bob meyerr who oversees your production of submarines h here. for example in an investment of platforms thaallow access to the enre hall, talko about whatre some of the changes yothink are coming down the pike r the program. >> it sets up where we are coming down the pike by talking about what we havave done. tools, training, facilities -- those are the concert things yoyou absolutely need to invest in. the supplement to module outfitting facility we invested in about a year and lf goes the latest large step unction we have made on the program imarily for focusing on the bowels of ththe submarine. yoyou might have seen our integrated facility where we will take three crcrews at a time have them house right next to a
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submarinine. have training facilities on ard. cucustom ld time where they can be right tre with a submarine is being produced those kinds of invnvestments are the kinds ofof things s th we are looking for. extras, fifittings, things to ma repetitive jobs mo efficient and effective -- that the level that ware at and the k kinds of investment we arare continuing to make. vago: onene of the key cost control features you guys h have is to puput as many subs a year out as possible. the plan has bn two virginia class book year. originally threeer year, but two per year is where you are but t now the ohio replacement program is coming down as well anand that is a major program, and there are those saying it will go more to one virginia a year and then ohio replplacement. i want to talk about ohio replacement in a minute, but wh happens to your cost in this progrgram if the virginia class goes to one loaded yea split between the two? >>ake at face value, if you
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move from two to one but here, the learng c curve with come down and the economic efficiencies we got they will certainly be step backwards on that. he virginia program is focusused on the learning curve and steps forward and that's back. we sawaw some real efficiencies in our supervision whene went to two per yr with that pruction line pace. without y adjustmemes, there would certainly be some stepep backward in that approach. obviously, you have read in the press the navy is trying to figure o the best way to mitigate that and take advantage across the value ststream of everything t they y are responsible for. vago: one of the adadvantages i as we saw in production, several gments next to each other where you can have common inspecons, common workforce, and good flow control. you were team 50/50 with electric vote on the ohio replacement program. there has not been a lot of talk
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about what newport news' role will be. what role do you ys hope to play in at program? what role do y you expect to play? when n doou expecect to start playing that r role? >> there's a lot t of reason there has not been a lotf talk. you have interviewed thnavy and d talked to them it's a little premature to guuess at that. we will do anything we can to support the na supupport program, bring besest value to that arena, but right n, ere that's going to go andnd how that is going to play out, the navy working through that as we speak. we will just have to see how that goeoes. vavago: the navy yard's tatake the lead in conflict o over all the ships. aircraft carriers and ballistic missilsubmarines take precedence, so there's been a backlog of as much as a year on attack submarine work. the navy wants to have both electric boat anand newport news get to the business ofof those complex overhauls.s. what sort of work do you guys expect to perform?
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whatat is the investment that the what a are you guys going to have to do to get ready for thatat work -- what is t the investment, what are you guys going to have to do to get ready f that work? >> we are e a multiproduct line organization, so dips and peak and valllleys can have an e effect. wherwere heading right n now over the next couple of years, we see an oprtunity om a workload standpoint to be able to help the yards as they are going through significant work. if you have talkedo admiral connor the navy is already looking to put out a solicitation or us for orhauls to do inin our yard. wewe have submitted those bits. we hope to provide best value, and we think it cod be a win-win situation for all of us. vagogo: do you ha to o make a sisignificant invement in new york to handle that? notot in people. our workload really acmmodates that level of work at tt time.
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we d do have to makeomee infrastrtructure investments because we have not done tho in qui a while, t we are willing to make those investments for that return. goext, t uso's new initiative to help troops and 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, it's pink! but hey. a new house it's a blank canvas. and we got a great one thanks to a really low mortgage rate from navy federal credit union. pink so she's a princess. you got a problem with that? oorah oorah open to the armed forces and their families for over0 years. navy federal credit union.
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♪ vago: last week, the uso announced its alliance to help troops and families reintegrate intoivilian life. partners include comfor crew for military kits higher heroes usa, and stronger families. here to tell us about this new initiative is uso's presiden andeo. dr. crouch, thank you f for joining us. dr. crouch: great to be here. vago: how did you come up with this new program?
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you guys are always trying too adapt toto the needs omitary members and their families. how did you come up with the new ogram, and how will it work cap dr. crouch: we are always by their side, when they come into the milita with a deploy from kansas to kandahar. we are looking at the challenge is going or were. we' got aboutne million service people who will be transitioning out over the next veearsand we wanted to b be -- you know, we are focused on that active-duty force, but we wawanted to help them be successful veterans. hehe looked at that and asked what are the things they need. they need three things. they need to reintegrate into their community. they need a plan to do thahat. a need a good job, a career opportunity, and they need a strong family, so we built an alliance with best-of-breed 501(c)(3)'s,harities like ourselves, where we will be able to deliver that capability to them and scale it up across the uso enterprises. we havave 160 centers across the world.
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30,000 volunteers. we believe we can help deliver these kind of services to our prosospective vera and ge them a good start. vago: h is this going to work? how do they come to you? how is it to get the services out to them? dr. crouch: we are buildiding this out now. you would come to a uso center and you would be in contact with someone there, t's, from rall.6. they would a assign you somebody to help you build a plan, help you connect with your commity, help you follow up. you may need help in the area of employment or housing or v.a. benefits or whatever. they will coconnect you to those resources in theommunity, d then we hahavepecific partrtners who o ll help in thohose other areaeas. one where we will be able to bring in not only face-to-fa seminars t thahat can help people get prepad for the civilian job life but also we are
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launing a lot of the services online to connect people -- this is a very connected generation. the miennials and o others getting out of the military day -- they are used to doing things online, swe will be building up that capability. they can go to our webtes. they can use our -- all of our centers have conduivity in them. thmeat thing is they can get started before they get out. they may be in kandahar. they can start there, and we can connect them back to a resource here. vago: how is the jobs picture changing f veterans you can is it getting bter in any sense? dr. crouch: i think the pentagon leadership has done a good job. what we see here is complementary.
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they have really put a lot of energy and locus in it, and i give them high marks. on the other side,here'a lot of folks out there that want to hire veterans, and so that's a positive thing. one of the things we are going to be able to do with this through the combinatn of emplplment training but also community reintegration is help connect some ofof those people. it's ahallenge, but i think things are getting bette vago: as you try to adapt to this changing military community out there that is bett connnnected than it has been in the past, better eduted, better informed. dr. crouch: onef the things, in the context of transition 360, we wiwill make a lot services available onle and allow people to get darted or even go through the entire process digitally, if you will, but in addition, we are thinkingng really hard.
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the military is still deploying of places. we want to be there witith them. we just opened a new center in djibouti if you can imagine th. it's a great place to go but we've got troops s there. we are sending -- we are reenactingng -- we are sending entertainment t backnto iraq. so we are adaptingng to whatat the military needs a and t trying to figure out how we can be me expeditionary. we have been n emoying in eastern europe vago: thanks very much. you are lcome back any time to talk t to us. . crouch: great to see you, and thank you. vago: this week's money minute. >> buying a home is probably the single biggest financial decision most people make. the lender you choose is equally as important as the type of loan you get. you will want to get a g great deal and seamless service. good lender will consider all of your actors to find a mortgage that right for you.
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rhaps it iin a sond home or you are an active duty military family who has used up ea eligibility. look for someone who walks you through alall your needs and options, and remember -- you are not reired to close with the lender that preapproved your loan. sometimes it makes sense to see who can offer you e best deal. compare interest rates. even half a percentage point can lower youronthly payment and save you thousands of dollars over the lifef your home loan. lendershould take the time t look over your total asssset portfolio and help you understandnd the full cost of owning your new home. make sure you tked this comp points, origination, underwriting, and document preparation he's upfront. -- make sure youou talkiscount poinints think he is forming a relationship with somemeone you trust and who will be with you every st of the way. vago:
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vago: immiately after he was tapped to become defse secretary, carter focused on his fix to focus on milititary jobs. the r right talent is key. the natation faces nenew and persistent threaeats and budget constrtraints, and carter must read the oanizational,
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cultural intellectual, and programmatic changes to meet them.. it's a tall order, but it also repreresents a grt opptunity. fedefensnse secretaries can affe so much anand so little time many of the nations top posts can filleled, ging cacarter trtruman''s influence over who wil lead forces after his tenure i is. so far, his picks have johohn praise. all four are smart unflappable, strategic, andnd innovative leaders, admed by y their peers and troops alike. those attributes could make them the momost consequenential o of military officers in d decadeses. as they p prepare over the coming nths tassumeme their posts the group needs to map an aggressi agegenda. ththanks for wching. i'm vago muradian. vit us f
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continuing coverarage onationonal and international news i including the welell of cyber dense, and update on thtransport ash in spain n and what it means forhe upupcoming paris social, a the officers tapped to lead the u.s. army and navy. if you have comments about the sh or suggestions for future coverage, please e-ml me.e. i'll be back x week at the sa time. until then, hava great week. [c[captiononing peperformemed byhe natitional c captioning ininstitutute, whicich is responsible f for its captn contntent anand accuracy.]
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morris: this week on >>." "government matters." the data act is new guidance from the office of management and budget. will it create a more data-driven government? >> they felt there were other more pressing security issues. morris: millions of federal workers invest in a savinings plan. lawmakers worry it is a cyber security risk. our fund managers doing enough to keep them safe? >> the government needs to take a more prepared approach to thee internet of things. morris: hackingng cultuture tough innovation. we previewanagement of change 2015. "government matters" starts right now. >> from abc 7 and news channel 8, this is "government matters." morris: 12 viewers around


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