Navy, marine corps. And the coast guard. Today represents our second dialogue for 2017. And we look forward to welcome you back for additional events in the year, we would also like to thank in a special way Lockheed Martin and huntington industry for their support in making this event really the series possible. And before we get underway for big events like this we like to make a brief announcement safety announcement we dont expect my difficulties but should there be anything as a we want to make sure that you know weve got exits right here in the become on both sides and stairs down the front and both myself and Anthony Belle in the back will be your responsible officers to kind of directout in right way just incase anything should come up. Just look for one of us. And so for our forral introduction to get us started ill turn things over to chief executive officer of the u. S. Naval institute, and were happy to have him here and ton part of us and rks thank i. Thank you. Well welcome those ho dont me pete, and cisc proud to bring you this maritime dialogue series continuation in our thiferred year and as mentioned special recognition to sponsors huntington industry and Lockheed Martin. For making this event possible, ill introduce our speaker for today. A 1981 graduate of the academy also holds degrees to George Washington university and a naiflt Nuclear Engineering degree from m. I. T. L after serving 13 years as a Nuclear Warfare officer he made it to the community there he served in mostly focused on repuling, complex, overhauls of Aircraft Carriers. Each command included Major Program manager for in Service Aircraft carriers and Program Executive officer for submarines peo subs. Finally last year in june tom moore assumed command as command in nfc and i point out theres over 75,000 uniformed and civilian employees it is entirely responsible for the contracting and supervision of all navy ship and sub shipbuilding and responsible for the maintenance and the systems that go on those ships directly. So we welcome admirable tom moore who controls one quarter of the navys budget. [applause] thanks pete. Im reminded of that by the way you have one quarter of the budget thats not necessarily a good thing. So good morning, and thank you for the invite this morning. Before i get started to last night was a big might for the navy. Couple of things. One, my band carriers played live down at the water front, and then see what was the other thing that went on last night, oh, yeah other thing is we delivered the ford, and [laughter] to the navy so a big night having worked on general ford for most of the past ten years just came back from a very successful acceptance trial and survey and navy accepted delivery of the ford last night. So you heard it here first. So thanks for the opportunity to come talk this morning. The theme that was given was the maintenance challenge and how to reset the fleet and so what i would like to do is talk about this and kind of in the context of talking about where theyre headed to size of lee and then talk about what were doing to grow the size of the fleet on new Construction Side within importantly talk about, you know, how the maintenance side of the of that equation fits in. Its not, you know as we were talking before hand, its not its not high either. You have to do both. And so sometimes we tend to forget about that having been a ship holder for most of the lhasa years but also having spent three years with that fleet readiness im well aware that you have to do both you have to maintain what youve got and you have to continue to build Going Forward. So if you havent already read red paper get a copy its a good read and like to read if it is short with pictures in it so it is great for command master chief. Lips do not get tired when they read it. And white paper talks about importantly up front that what the current security environment is. And he makes three key points and these three koa points are applicable when youre talking new construction or maintenance on the house and three key points are time matters. Has to be a sense of urgency in some of the things were getting after today, and that plies to across the board. To getting submarine out on time and design ships quickly to get them built quicker second thing is that pace is exponential and threats were facing today, the line thats going on in the near competitors say russia, china, the pace theyre changing the ability is growing and we have to keep up with that pace. As they like to say kind of like we went into half had time in the Football Game in 2,000 up about 283, and kind of pop the champagne and said game sofer and, in fact, referee are said half had time is over, ready to start the second half and well get there when we get there and kind of strolled out midway through the Third Quarter only it find score is 2824 so that capability gap between us u and competitor is closed an something thats a keen interest to us here on the navy side of the house in terms of what the capability that we need Going Forward so theres a lot of discussion going on today about what is it that navy that we need and or not necessarily what does navy we need in 2040 but in the 2020s but we tab whats the navy we need today. And were trying to take a little bit of a lead angle and figuring out what is it that navy we need probably in the mid20s and go make decisions based on kind of that navy that we need in the 2020s. And theres been a number of recent studies some done by the navy some done by independent groups about what is it and what should it look like and they have kind of varying concern knickses of ships and stuff, but at the end they all came to the same conclusion that we need a bigger navy than we had today and all around the 340, 350 ships so clearly size of the fleet does matter Going Forwards and capable that have fleet is going to importantly as well. So how do we get there from here . So one of the things when we talk about the sizes of the fleet and ill get questions often about hey you know 18 budget dpght add a bunch of new ships. What happened . And we were never going to be able to turn that around overnight, i think what youre going to see and a little bit more in the the later in our mark is 18th budgets holds what we have on new Construction Side but makes significant investment on parking lot house which if you listen to the chief testimony back in february, is saying the first dollar we ought to get goes to readiness thats what youre seeing in the 18 budget. Now we spend a lot of time talking about what is strategy of the future and future white navy paper and it is it all that goes to what navies strategy is Going Forward. And it is easy to say having been in washington, d. C. Now since 1999 i tell people im on my 18th palm which is kind of hard to imagine. And if i had a dollar every time someone said you know what we need to build strategy first, and then strategy will drive the budget. And you know in the world that we live in that sounds great but reality of it is you dont want a budget completely driving your strategy but you cant ignore that question live in a fiscally constrained environment but what we like to say is it is a reenforced strategy and i think thats the reality of where we are today. So were going to increase the build of the ships that we have today and think Industrial Base can probably build over next 7 years facing capacity what question of 29 more ships than we have in original 23 ship plan. Weve got to get more capable for that dollar and figure out where the know and curve is to get them to work on this stuff and then we have to figure out how to innovate and what exactly were going to work on in the new Construction Side of the house so were going to continue to build thats a going to continue to build what we have today. And that is job going discussion on lcs and that is still kind of turning arranged inside pentagon and owe answers in the white house and see things going on in that particular area. As we head further out and heard me talk about this and and future service what the replacement is thats going to be quickly important as well. Kind of a new buzz word inside the pentagon is swap. Space weight and power. And if youve heard me talk about before, as we go build the future navy, while i cant tell you exactly what it is going to look like but one things important as we build a platform is to make sure platforms have enough space, weight, and power to adapt to future threats were kind of in an age of electric ships and did 1,000 and carriers are prime examples of kind of building in space weight, and power into the platform so that you can dapght and go forward. And interestingly you know you have the class around today in serving well. As weve gone and theyre beginning to build flight 3a and provide more spies and more power many that Going Forward. And those ships are kind of unique in their able to stay around. It was interesting my First Department on u uss cunningham and probably got rid of them at the 25 point and didnt do maintenance on them if anybody served on ddg knows that they were tough to maintain. But reality is we didnt spend my money on maintenance side so at the a 25year point a lot of people think we ought to get rid of these things because theyre rust buckets. The reality of it is that we really got rid are of a lot of those ships because from a Comment System standpoint theyre obsolete so fast forward to today, with the board class today and take a look at open architecture and radar and vertical launch, and now you have a platform that can stand around, stay around a lot longer so now question of to kind of shift the thought process now we have a system that is not obsolete so back over to maintenance side of the house and now it if you want to get more service line as a whole you have to do the maintenance on it. And you know admiral daily and i when i became back in 2008 and force command we reached this epiphany with not spent my money doing maintenance on our Service Ships for about ten years and woke up one morning and found out oh, my goodness failing and we dont have ships that can get to their expected service life. And you know in hindsight it doesnt tack a Rocket Scientist to figure out if you dont have maintenance you cant expect ships to get to where they need to go to and gone along happily saying you know whatnot safing maintenance and to do other things its working. And reality of it we were consuming service life of the ships that were built and eventually it caught up to us. And spent better part of last probably eight to nine years digging ourselves out of their hole particularly as it relates to service, you know, private and Service Ships. So one of the key components i think of getting out to the size of the fleet that we need is going to be looking at taking ddg and what we have today and extending the service life of these ships. Most of them are in 35 year range so were taking a pretty close look at what would it tack to get them out another five, ten years. And reality they have for a steel hall if you do the maintenance, you can get the service life out much longer. And with todays open architecture and vertical launch theres greater tonight for us to make investment relatively small investment to keep the ships around longer than we have today and people will say we have never gone past 35 year and i will point out routinely take Aircraft Carrier to 50 years ep reason we do that is because we consistently do it maintenance that you have to do on Aircraft Carrier to get to 50 years so we know how to do this. And i think what youre going to see is were going to take a very serious look and taken service life of existing fleet and extending outside to ten years if you do that. And youve soon probably some of the Structure Assessments which gets us to 35 ships around 35 if you keep ships and then build new. We can probably accelerate that to get into 355 proanl about ten to 15 years with a relatively small investment over a 30year period so take a close look at that. One of the things that i have you know king thely pointed out as we go look at the new design and go look at the future service is we should not design a ship with the service life of plan service life of 25 to 30 years. Doesnt make any sense so we ought to go plan service life at 40 plus years for all of our shps and then build in the swap context power in them to adapt them Going Forward so ting thats going to be part of our strategy Going Forward. So last part and thing i wanted to talk about is the maintenance side of the house and kind of resetting the fleet. If you heard the vice chief back in february he talked about the fact that if i have a first collar i get new dollar i needs to go to readiness and good news is that fy18 budget has unpress amount of money and 7 billion dollars to do maintenance on our ships and thats good. We need that. Although as i tell them we have reare sasheses we scdz for. Okay. Now it is over to us to deliver. But it is important to understand when you talk about maintenance that its not just resources and not just about money and add Energy People that cant be the only part of the solution here. Clearly 9. Billion that we get there help us and grow Naval Shipyard and grow to i think thats where we need to be to King King King King king consistently only a third of them deliver on time and on the carrier side of the house but 12 of the 17 that are in maintenance overhall or enactivation are behind so we have to turn that around. And so people will help certainly the capacity piece of that is important. But it is not the only piece of it Going Forward. Now Number One Mission priority is on time delivery of ship and submarine and reason is because of the 235 ships that i have about a third of them any time are under the control even in some availability. To the extent that we dont get them out on time it causes great stress on the force and may have is remembered an article back in january, february you cant remember the exact month where a reporter said that yesterday for the first time did not have an Aircraft Carrier and First Time Since world war i and when you think about it part of that was because we were down to ten carrier and the maintenance available and didnt know for if last eight months took 13 and so it within the lost to me when i came into the job a year ago and now the ability to get job and submarines on time is important to reare set the fleet and to what you need so back to any original comment one we need more people. Clearly but it cant be only about the people. A couple of other things we have to do here so one, i have to add capacity to do the wok and that gets to peoples house. And now figure out new ways to train the work force kids today theyre coming in, theyre different. Learn differently than we learned, and typical timeline to get a train worker Naval Shipyard by the time you get them in the door and down to do something useful it was five years and we have to cut that back. And new training method today looking to have somebody who can turn and do something useful in ships had this two to three years versus five years so question of to think drchghtly about how we train this young men and women coming in today because they learn differently than we do. We have to make investment in shipyards both in private side and public shipyard side in order to get the work done more productively than were getting done today. Many of our shipyards some of them are several hundred had years old a lot of them were designed to build ships. And in the early part of the 20th century and theyre really not set up to handle maintenance the way that should be. We typically are many terribles of Capital Improvement in the yard, we make investment in equipment and replace equipment on order about every 20 to 25 years industry standards is about 10 to 15 years less than that. I have buildings that are over 100 years old you know i cant get worked on. So we better go make an effort to look at from an Industrial Engineering stand point how do question set yards up and willing to make investments in our Naval Shipyards in order to get work done more productively Going Forward. Timely, youve heard probably heard kevin talk about this many years ago. Weve got to take the entire Industrial Base into account here. We do have capacity other place when is we dont have capacity to do in our own yrd and one Shipyard Concept and news on sub marine work going on right now. So we have of challenges ahead of us by i think the good news is from the maintenance side of the house im very encouraged where were headed. We have resources we need and we have a firm strait ji Going Forward and start delivering ship and submarines on time and extend expected life of the service that we have and also be a part of our main strategy. When you combine those two things together and build strategy that we have a path to get to 355 and may be a i believe to get there sooner than we would otherwise get there by just building new so with that i will will conclude my remarks and have a seat here and happy to take any questions that you might have. Well, thank you for those remarks