Activeization of the defense strategy. As highlighted earlier this year, the army confront environments that are increasingly competitive and volatile. They threaten our interests and those of our allies. In light of these, the army has achieved commendable progress on readiness and form over last couple of years, but the threat remains significant in the budget remains finite. Theres much more work to the and we are ready to provide a class research. As many of you in the audience exclusively focused on National Security and foreign policy. Except nopartisan and funds. This seeks to remote on a bipartisan basis and understanding National Security strategies and a range of other government capabilities max 8, itso secure citizens, allies and reserving piece. Experts were closely on a number and financial power and center on Cyber Technology innovation with the goal of integrating all tools of American Power to achieve Better Outcomes for america than and for our allies. [inaudible] , it providesrnal original and accurate reporting on ongoing conflicts as well as professional developer for activeduty military personnel. By h. R. Mcmaster reserves as chair. It is led by the senior director who will monitor todays session. He served as National Security armedr for members of the services and Relations Committee for years and activeduty officer. The board of advisors includes panetti. Leon a , we encourage you to visit our website. We invite all of you to join in the conversation today which will be live streams and recorded. I look for to this conversation and many more to come again, thank you for being here and now i ask that you silence or cell phones and we return we turn it over to brad. Welcome all of you in the audience and tuning in online. Thank you for being here. And there are grateful that you spend time with us today. Will be a 30y minute discussion and then open up to questions or it with that, lets get started. [inaudible] , undersecretary of her ony and principal as matters relating to management improving development of the budget. Wife served and his in the army, including duringent to afghanistan Operation Iraqi freedom. It will focus to make sure our war fighters have everything they need. We were actually texting with texting us he was from italy. Excited to have young men like that in our formation. Great opportunity, nice to see you. Great opportunity for us and. Till transitioning just over a week ago, [inaudible] are extra narrowly last extraordinarily blessed. Engineering background, he was the g1. Theres not a portfolio across the army that he did not have extraordinary depth, combat operations, but also operating and maintaining complex weapon systems. At this time, still having troops in over 40 countries, we have nobody finer. We are very excited about that and i have the confirmation ross anxiously awaiting. From a transition standpoint, we are very blessed. Weve had a lot of time to experience with each other, so we are managing a unique position. A lot of movement in the army corps door. With that, we have worked hard on remaining focus on priorities that we sit. Remaining focus on priorities that we set. At theaking a hard look types of things that Taylor Wimpey fabric. We are a people position. We have been very focused on our priorities and have been on a unique journey. We have conducted one of the most extraordinary restructuring changes in over 40 years with restructuring our modernization enterprise. Commandchieve unity of under one roof. Over two years ago, we started looking at how we conduct modernization and to take to reduce the expand time, the time to experiment with a prototype system . Historically, it it would take us about 20 years to fill the capability. To field an0 years organization handles over one million people. Like having a kid that there is a 90 mile per hour fastball until 39. Process,ent down this we knew we had to lock in its investment property, look at all the stakeholders and see how they are spread across different organizations or across the department of the army. We look to ourselves and said how do we produce the times and . How do we make a decision . Tor time, he realized we had put an organization be leading this effort, and fourstar stary a four entergy. With all the problems we had, particularly with the armys requirementshe definition and sticking with requirements. You have to make a remind very. Uickly and stick with it you had to have the same kind of you want it,ere if you have to wait for to come later. , acosts money, you lose time constant fluctuation. Communitypowered the through different policy changes and directives. We need an organization that will help us and work sidebyside in the development of capabilities. Aviation platforms, network, we refer to as standing across the individual soldier. These portfolios have couple. Inutes efforts across 31 systems investment portfolios that are going to have 80 of the budget , weas we continue to unfold will have over half of the procurement dollars and we crest. Ver that 50 mark along with the organizational construct, we went through a and then inercises the 19 fiscal year 20 and as we head to the 21, there has been shift in ships investing in our future. If you look, theres about 50 billion across the budget. The army has made a massive change in the way we are doing business and putting dollars towards investing in the future. As we head into the fall, we know we have a budget deal on the table. The fiscal 2021 deal is also great. We recognize there will potentially be continued resolution of the process the specific. It is important that we get that done in the early fall. Within the resolutions, they create uncertainty, a lot more conservatism and the Business World fluctuation from investing , it creates mass confusion, so we will work hard with congress to try to get this deal done and what will eventually happen is you will see four budgets in a row where the army is very specific about what it wants. The challenge is you will see a lot of prototypes this all. The armyeadership and in particular, we have to communicate that as long as we can learn from the prototypes, we can continue to progress and bring new capability and the system. [inaudible] over time, we think we will have a lot of success on the prototype and indie budget the budget deal, we will have the funding to create these prototypes and that is going to be the window where we can start buying capability and Start Testing them at larger scale. That is really the Tipping Point i believe of how we will be successful. Thisimportant as we face modernization for modernization effort. A lot of it is the operation concept. Arm[inaudible] how will that change the operating model of the army over time . A lot of it is material and the a lot is the doctoral concept that we put into the formations. All these pizza get her so that the team operates as one. The material will. Hange the structure over time this is an extraordinary time for the army. We are going to learn a lot about ourselves and we learn from all of you and communicate from where we are trying to go. It helps us from the approach and adjust over time. We appreciate the time to be here and look forward to conversation. Obviously the army is going leadershipig transition. Undere confirmed to the the secretary. Support. Unanimous im wondering how you transition tom active secretary undersecretary . To thes very difficult ,ay you approach each day taking hold of certain portfolios that drive the budget the way youears, you hit it day three times. Do have to adjust you have to adjust. He has already made the adjustment very quickly. It is making that adjustment and checking yourself and editing yourself each a in how you. Pproach each meeting it is a big adjustment. A big member of the board. Ends his regards the Commission Found in its report that the u. S. [inaudible] much tonal security and win a war against china and russia. A lot of americans that hear that might be startled by that. Might view that as fear mongering and undue alarm this. You agree with that . Ofre do we stand in terms defeating china and russia in a war . Ntional i think it would fundamentally change our life, but that we would win. If the Energy Behind the National Security space, it is very spoke refocused. I think we are trying to live and breathe that at the army. And have recognized this you can see by the way we have invested in the way we have organized. We are putting our soldier to the wheel to make sure we can say head of pace. It seems to me that the central challenges is perhaps on do we shift to focus competition with china and with iran andst terrorism . Focus on the competition, but also address the persistent interest in the middle east . Clearhave to be very while trying to achieve. Where do we compete worldwide . Be as aggressive with , but dollar that we invest it is where can you take risks . , about 2000 ofroveryear, we are 60 where we need to be worldwide. We still need a lot of people. The challenge with that is weak have to continue to grow and have units ready. Fixed on what you can invest in. You use the word ruthless earlier and we will continue to be. We are going to have to continue thatrograms of the are not of the highest property. Thate going to continue and that is the reform effort and the general potus on were going to keep doing that. The general put us on and we are going to keep doing that. [inaudible] baiting the largest a focusnt moving from on counterterrorism, counterinsurgency. As you lead the army, how do you think about that adjustment . Are there practices we learn that apply to the rays on conflict with china and russia . Counterinsurgency operation is not going away. Fordemand will remain decades to come. Under general millies leadership, we focused on institutionalizing the hard Lessons Learned that you referenced into organizations that will assist worldwide. These are second command ties for them. We are institutionalizing those behaviors and trying to protect the large formation we had to break up to support these missions and focus on their readiness against their competitors. That where they do their larger collective work going from individuals. In deterring role additional aggression by moscow, where do you see it playing in the pacific in terms of anna china . Between theuse possibilities and what we have today and how we can that gap . Gap . W we can close that advise and assist will be critical with allied partners throughout the region. We are going to work on Foreign Military sale throughout the warfare,d electronic theres a lot of capabilities loudwe bring forward and a and a lot of formations. Only units that have been assigned, but conducting exercises. The work that general brown has done over the last two years has. Een remarkable we have increased our presence and will do more in the future. This is something i always like to focus on, that in 20162017, the army was ,onfronting a readiness crisis largely due to continuing resolutions. The arms out of control, yet they were victims are it order your there were victims. What are your concerns . Im notere is one place as worried, i think if you were to go to the highest levels of is truly, it remarkable. Get an infusion of funding. The other is focused and leadership. They all understand the metrics. They are laser focused and do what they need to do. Im very proud of the gains that have been made. You have to stay laser from. The key for us is the sustainability overtime. Flat ands could be ,ependent upon where things go the challenges we face with trade and others, it is difficult. Funding is a key variable. Every time we do work with congress, it is critical. Are the things you hope to see and one of the consequences if you dont get those in the final bill . Made tough choices this week. We made some very big, hard choices to include. [inaudible]id we are walking away from the bradley and introduce the next combat vehicle. We have halted for the conventional force. [no audio] places where we will get Additional Support for congress is on housing. We are looking hard. What we can do to to continue to perform better. I guess i have to hit would again, we are doing very well. The Leadership Team is working very hard across the army to communicate with every jurisdiction particular and countless briefings to ensure we do it we are trying to do. We saw ways were trying to mitigate challenges like these sales and others, and we got a lot of support, so we are pretty blessed. As i saw, often service will want to divest something to clear budget space for an important modernization priority. Perhaps that aircraft in that system is based on a particular state or district and congress will want to intervene. Receiving calls from constituents and that sort of thing. If appropriate, what would you in to those constituents terms of consequences if the army is not able to invest the sequences and you dont have the money to modernize and get ready for great competition and potential conflict . That is a rough conversation. There is tremendous opportunity coming because of all of these investment decisions. From toplinelift to support this ambition. There is so much to go around maintain theset other systems. There is opportunity that is states that have been affected also have vast opportunity to win new businesses. In many cases, these are decisions by the leadership and there is a recognition they have the talent, the production lines, and positions in place. It is just developing new products. If you think of 186 of these types of things, we narrow it down to about one or two. We are back and forth with congress. Weaver we work very hard to communicate with them. Process everyed a monday night where we have a ceo and sit there with a Leadership Team and have dinner. Realize wele, you have gone through 25 or 30 companies in the process and keep having more sessions like this. Communication helps a lot. More opportunity lies. These are all great companies. They see where the opportunity is and make the adjustment. Mr. Bowman you will not have the money you need to modernize, and that could have consequences in the next conflict. It is important for americans to understand that. What in addition to discussions in the Conference Committee programs, i am curious your perspective on at what topline funding number with the army be able to unable to defend the National Defense strategy . Mr. Mccarthy if we hold flat, we have 182 billion. That includes boko. The outay flat in years, our buying power starts to reduce. That is where secretary mattis and the general testified close to two years or a year and a half ago. Pluslked about real growth inflation. That is when they say real growth, be required across this. That is where you see aggressive efforts on reform. If we cannot achieve a topline of that magnitude, we will have to find ways to clawback 10, 15 billion a year in the department of defense to be able to finance readiness and modernization of in particular because we will start to stall out. In the armys case, where. Erforming the analysis the 31 that i referenced before are starting to really look like they have the makings of insisting we want to bring in the formation where you take the develope and capability. We will need more money. To scale it and its relevant timeframe to be able to deploy with them. As you look at fiscal year 22, it is amazing. On 21 internally. We do budgets every day. When we look at that, the choices the department of the army will have to make from 2226, we will have to find more money for modernization effort under current assumptions of being flat. I dont have the number today because we have not performed enough rigor against it. But the type of reform behavior will be necessary under flat conditions. The National DefenseStrategy Commission i referenced earlier, a group of bipartisan effort experts said they believe dod need 34 Realty Growth to implement the National Defense energy. It seems to me to be tough to do that under a flat budget. To get one additional dollar under the president s budget request, where would you spend that . Probably the modernization portfolio. We are yielding a lot of so fors in particular, general command, we were able to reduce the requirements process which was taking a 57 years. He can crank out fully loaded, requirement documents to the doctor who will release and are he to vendors in about 18 months or less for complex license systems. Reduced the spending time it takes to make a decision and turned to the contractor and say, develop the helicopter, armored vehicle, machine gun, and reducing this span of time is the speed of the order for business. Reducing the cycle time to achieve a sale, that is great for American Business and great for us because we will get it sooner. We dont spend millions of dollars talking to ourselves and moving paperback if trying to make up our mind. The speed at which we can bring these capabilities forward will help us change. Between the work the general commanders doing, that is how we will transform the earth. Mr. Bowman last question from me before we go to the audience. The National Security strategy and the National Defense strategy and the Army Statement from earlier this year all emphasize the importance of allies and partners. China, one part i think of his taiwan. It is a bit specific. Would be interested in any update you might provide and if there might be a way to deepen and strengthen the exercise because giving them weapons is one thing. Mr. Mccarthy they are part of the exercise. Aprons ing in abrams sale, which i want. Mr. Bowman i welcome questions from the audience. Please stand up. Right here. Tom from heritage foundation. Want to talk about recruiting for the moment. 2018 missed the mark, though it was an aggressive mark. Up. Y how 2019 is shaping the army is taking new approaches to recruiting but im interested in your forecast and how the year will end. And if you project difficulties, are there any solutions for the whole of society or a whole of government approach .