Defense News: Navy League Sea, Air, and Space Symposium – Sea Service Chiefs Leadership Panel

Source: United States Navy

(Applause.)

FRANCIS ROSE:  Gentlemen.

Welcome to all of you.  Please have a seat, gentlemen.  It’s great to see people anywhere in person – (laughs) – at this point in time.  Thank you all for coming.  I see a lot of familiar faces in the audience and I see just a lot of people that have a lot of questions.  And so we will get underway in just a moment and we will have an opportunity for all of you folks to talk to my colleagues on the panel.

We’ll begin, gentlemen, with a few opening remarks from each of you.  We’ll start with General Berger, Admiral Gilday, Admiral Schultz, and then I’ve written down a few things I’d like to discuss.  Commandant Berger?

GENERAL DAVID BERGER:  Sir, first, thanks for the Navy League’s organizing this event.  Not easy, I’m sure, coming out of COVID to assemble a crowd like this and pull it off.  They did so.  I’m really grateful that the three of us have a chance to chat with the folks that we work with every week.

We were down, several of us – in fact, all of us were down in Tampa on Friday for change of command and retirement for General McKenzie, and a couple of us were talking about the volume of documents and information that’s come out in the last two or three weeks.  It’s never even paced, in other words.  In the last couple weeks, the combination of a National Defense Strategy, national – or, the Global Posture Review, Nuclear Posture Review, and the budget all in a few weeks’ time.  Struck, you know, a couple of us as that’s a lot of information.  We work on, of course, those things for six months, so it’s – none of it is new to us, but if I were on the receiving end of all that, trying to stitch that together in a – in a short span of time.

What I think – you know, a couple of takeaways from my perspective.  Although it all seemed to be released all at the same time, of course it was developed in parallel.  For us, the reason I bring that up is I think it is – it’s very clear to me that this is a strategy-driven budget; that you can draw connecting files between the last National Defense Strategy and this current one and the budget that supports them that it’s – that it is a threat-informed, strategy-driven budget.  Working backwards, in other words, is helpful, or forwards – either way.

For us, this is our third year of a long-term effort of force design in the Marine Corps.  So a look through the lens of the last – this strategy and the previous strategy should inform those who are wondering, you know, what is the basis for it and where are we going.  It’s all apparent, I think, if you lay it all out on the table and look at it all in one whole picture.

A couple of things I would – I would say to add.  Last year, we published a talent management plan that’s a parallel plan to force design, and this year we’ll do one for training and education.  So all of them – those three put together – is the cardinal direction for the Marine Corps.

All that said, I’ll just finish up before the CNO takes over.  There is a – there is a scope and a scale to that change in the Marine Corps, but probably worthwhile also thinking about what will not change.  And I think my fault sometimes for not explaining the things that will not change.  So the core, the ethos:  our expeditionary role as a naval service.  The level of discipline, the combined arms, and Marine Air-Ground Task Force sort of approach to warfare that we have, and maneuver warfare is our underpinning kind of doctrine.  All those things don’t change.  But we have to match the cardinal – the character-of-warfare changes that are happening.

So I look forward to the questions.  It’s a great venue and I’m really happy to be up here with my partners here.

MR. ROSE:  Commandant, thank you very much.

Chief?

ADMIRAL MICHAEL M. GILDAY:  Thanks, sir.  I’d like to thank the Navy League as we begin this session this morning.  This looks like a full house, standing room only.  It’s good to see everybody back here in person.  This is a great opportunity for the three of us to talk about where we’re headed as a maritime force.

I think it’s worth pointing out upfront – because I know that we’re going to talk about our proposed budgets and what has influenced our thinking with respect to how they were constructed.  It’s easy, and some do take a look at those budgets in and of themselves for a particular fiscal year.  And I think – with respect for the Navy, I think you have to go back seven or eight years and take a look at the journey that we’ve been on with respect to understanding how we would not only compete or campaign, but also deter and potentially fight a near-peer competitor – which is a significant change from what we did after the fall of the wall for the period of almost two decades.

And so the Navy’s journey with distributed maritime operations really began with the understanding that we were going to fight as a fleet under, above, and on the sea, and that would be driven by a fleet commander – and not just whether it’s a(n) amphibious ready group or a carrier strike group.  So it was thinking about how we would operate across the physical domains, across the virtual domains, and perhaps even transnationally against a given peer competitor.

So that journey has influenced us because, I would argue, in order to resource a fleet you have to understand how you’re going to use the fleet, how you’re going to fight the fleet.  And so that journey has been incredibly important for us in terms of looking at ourselves and understanding how we’re going to both – how we’re going to operate, train, and then potentially fight.

I think as you take a look at our budget proposals, they are consistent, as the commandant said, with the strategic guidance that the secretary of defense has given us in the NDS that’s about to drop.  And I’d just make three points about that.

I think, first, it’s important to think about the pacing threat.  He’s been clear it’s China.  And so, given everything that’s going on in the world right now, in Europe, I think the three of us would still say keep your eye on China.

The second is his talk about deterrence.  And I think what that boils down to is fielding and investing in a combat-credible force that can deter.

And then his last point, really, is about campaigning or how – the means by which – the ways by which you exercise the joint force on a day-to-day basis to deter using that combat-credible force.

And so I think if you take a look at the investments that we’re making and the force that we are fielding in this decade during this FYDP of the next five years; and then, if you think about with respect to the three of us the transition period between, let’s say, 2028 and 2032, whether it’s – whether it’s laws or whether it is LAUs or whether it is unmanned, whether it’s DDG(X), those transitions we’re making to a force design that’ll really, we hope, come alive in the 2030s for all of us.

And so, again, this is an evolutionary process for all of us.  I think our budgets – our budget proposals and what we’re fielding reflect that.

I look forward to the questions and answers today as we get deeper into this so that we’re able to peel back – peel back into the specifics.

MR. ROSE:  Sir, thank you very much.

ADM. GILDAY:  You’re welcome.

MR. ROSE:  Commandant Schultz?

ADMIRAL KARL SCHULTZ:  Yeah, Francis, thank you.  And I just want to echo on the CNO and the CMC’s words to the Navy League.  I think there’s 1,800-plus folks here eight months after we did this last time and 2,500 young men and women students here for STEM yesterday, so this is a great opportunity.

About 15 months ago, the CNO, the CMC, and I signed out “Advantage at Sea,” the Tri-Service Maritime Strategy, and I think we’ve found the Coast Guard linked in here with the naval forces unlike never before.  The timing with the ’22 budget, you know, penned a couple weeks ago by the president, ’23 budget on the Hill on the 28th I think is very opportune.

You know, from a Coast Guard perspective, almost four years ago, when my leadership team sort of took over, we talked about a Coast Guard that was ready, relevant and responsive.  And we’ve been on a readiness narrative incessantly for the last four years.  I think the last few budget cycles, I think that narrative is being heard.  We’re a Coast Guard that has unprecedented demand on our services, both domestically and internationally, globally.  And I’ll maybe just split the world into those two genres a bit, just to chat about it.

Domestically, you know, we all know about 95 percent of all the goods commodities in this nation come by sea.  We’ve seen the supply-chain pressures here in the past year.  It’s about 30 million jobs tied to the waterfront, the maritime industry; about $5.5 trillion of annual economic activity.

So we are busy at home.  We’re busy building out a cyber force to ride the backbone of the .mil domain with our DOD colleagues.  And really that regulatory function here, as we think through cyber and the shipping industry, the vulnerability to ports, you look just at LA-LB, Los Angeles-Long Beach.  Forty percent of the goods in this nation come through that one port.  So cyber protection is critically important there.

Sort of going to the away game, an increasingly global Coast Guard across the world, I don’t think we’ve ever been in higher demand with the numbered fleet commanders.  We’ve got new vessels operating in the Indo-Pacific.  We’ve sailed National Security Cutters over there for Phil Davidson, now Admiral Aquilino, on an increasing basis.  And when we send a ship there, you know, it is under the tactical control of the fleet commander.  We’re excited; burgeoning opportunities in the Arctic.  I think recent world events even put more clarity on the criticality of the Arctic.

When you can run commercial cargoes out of Shanghai, up across the northern sea route, and knock off 11, 12, 13 days versus the Suez, that will be an attractive option in the future.  And, you know, the largest territory holder for the Arctic is Russia, and they’ve got a fleet of multi-dozen icebreakers.  We’ve got a 45-year-old heavy breaker, medium breaker.  We’re building new ships.  There’s a good emerging story there.  But we have not been under higher demand, I think, in my 39 years in the Coast Guard.

So very excited to be here today.  We’re in our most prolific shipbuilding period since the Second World War.  So we’re going to finish up the last two National Security Cutters.  We’re going to award a phase two on OPCs and take delivery of that ship a year and a half or so down the road, probably splash the first hull of the Argus here sometime this calendar year; going to award a contract for Waterways Commerce Cutters.  We’ve funded through 64 Fast Response Cutters.  The Congress just put two more in the ’22 budget for us; and a lot of good things going on with aviation.

So Francis, at the risk of being long, I would just tell you, very excited about working with the commandant, the CNO, here under the umbrella of the tri-service strategy, putting the Coast Guard into the fight as a part of the joint team, not by law but I think from a contribution standpoint to the numbered fleets.

Thank you.

MR. ROSE:  Commandant, thank you very much.

All three of you referenced the transitions or changes that your services are going through and what warfighting looks like, what defense looks like.  And CNO, you used the ’28 to ’32 timeframe.  I’ll start with you, Chief.  How does the budget request that just came out fit to that?  You addressed it a little bit, but if you would describe that in a little more detail, please.

ADM. GILDAY:  I think it’s important to think about the Navy across at least three domains – under, above and on the sea; to also think about the investments we’re making in the information-warfare area, which would include cyber in space, so the virtual battlefield as well; and then, lastly, the human weapon system, the investments that we’re making in our sailors and civilians that are absolutely critical to moving forward in this key decade.

So if I take a look at under the sea, the investments we’re making – I’m very proud of the investments in undersea warfare we’re making with our fielding Virginia Block IV and Block V submarines; Block Vs, mid-decade, or actually by 2028 we’ll have hypersonics.  So we’ll have that capability fielded from our most stealthy strike platforms under the sea.

There’s an article in this month’s proceedings from Admiral Wyman Howard.  He’s the commander of Naval Special Warfare Command in Coronado, California.  And he talks about the Navy’s commandos pivoting back to their roots as frogmen.  It’s an interesting piece to read.  And it talks about how we’re leveraging those skill sets, not just in the counterterrorism fight but also under the sea in that critical domain where we need to keep overmatch against our adversaries.

And lastly with respect to the undersea, the investments we’re making in AI are proving to be very, very useful against an increasingly sophisticated adversary, and also the investments we’re making in an advanced weapon under the sea.

On the surface, similarly, we’ll be fielding the Constellation-class frigate.  We just christened our first Flight III DDG with an enhanced weapon system and radar combat system last week down in Pascagoula, Mississippi.  We’ll field hypersonics on Zumwalt by mid-decade.

We’re making investments in SM-6 Block I Bravo and Maritime Strike Tomahawk.  This budget tries to maximize those domestic production lines so that we’re putting weapons in magazines; of course, readiness being our number one priority.

Above the sea, we continue to make investments in the F-35 and also upgrades to our existing Super Hornet fleet.  We’re in our second F-35 deployment right now, so our second integrated wing.  By mid-decade, half of our wings will be integrated with fourth- and fifth-gen aircraft.  By later on in this decade, they’ll all be integrated.  That’s a substantial capability over our adversary; the weapons that we’re investing in – LRASM, JASSM-ER – again, maxing out domestic production lines; and then, lastly, the MQ-25 onboard our carriers, A, as an autonomous vehicle in a refueling role frees up two or three strike fighters from that role and gives us more of a combat punch, extends range of our airwing in conjunction with those longer-range weapons.

In the human weapon system, the investments we’re making in ready, relevant learning and live virtual constructive training are significant; in fact, groundbreaking.

And then, lastly, in terms of space cyber and that domain, we’ve just started our Maritime Space Officer Corps.  We are making investments in a float targeting cells that are groundbreaking in terms of what they deliver a fleet commander in terms of being able to create effects downrange.

So all of that – all of that moves from this FYDB into the next with a bigger transition into unmanned and automated.

MR. ROSE:  Thank you, Chief.

General Berger, same question: How does what we saw last week fit with where you want the force to be in the – I assume 2030 is your target date, sir?

GEN. BERGER:  Target date – just to be clear, I think all of us have to have a force that’s ready now.  We can’t take our forces off the field for five or six years, reshape them and then put them back out on the playing field.  So it’s not a now or then.  As the CNO and others said, it’s now and then.

This is the third year into our force-design effort.  But as CNO did, we would not have been able to even begin that effort if it hadn’t been for the hard work that General Neller and the Congress did to rebuild our readiness for four years before he and I changed out or we would not be on the path that we’re on.  So he took four years to rebuild us from the Iraq-Afghanistan conflict into a ready force and then started the modernization.  This is then third – you could say the fourth year into that effort.

The approach that we took, based on where we were, was if you’re going to match the speed of the change of the character of war, meaning the threats, technology, everything that’s involved in the operating environment we’re going to face in the future, then if you’re going to accelerate, then you have to divest of some platforms.  You have to adjust your force structure.  You have to do things up front that will create the resources and then pour them back into the force.

This is the third year in which Congress and this administration has allowed us to keep those resources and pour them back in.  Those – of course, all those changes are not without risk.  The risk is that you have to be ready now, which we are.  So you have to retain the crisis-response capability – responsibility that the Marine Corps has, but also be ready four, five, six years into the future.

I think General McKenzie really captured it on Friday.  He said I’m a combatant commander.  I have to be ready this afternoon.  I really don’t have a vested interest five, six, seven years into the future.  And he acknowledged that the service chiefs have both.  We have to give them the forces, the capabilities, now and five years, six years from now.  None of us – just to go back to your start point, none of us have a belief that we can wait until ’28 or ’30 or ’31.  The capabilities, the forces that we’re fielding now, are now – ’22, ’23, ’24.  It’s on a very rapid pace.

The last part of that, I would say, in order to move at that speed, you have to learn at that speed, which means a lot of experimentation, a lot of wargaming, a lot of trial and error, and the mechanisms to feed it back into your force-development process to make adjustments along the way, which we have.

So we have an aim point that’s out 10 years out.  But we have, inside the Marine Corps, the ability to turn what we’re learning, even from what’s happening in Ukraine, the exercises that we’re doing in Norway, what forces – what the forces are doing in the Indo-Pacific – you have to be able to plug that back into your learning process and make adjustments on – as you go, which this budget allows us to do, keep that momentum going.

MR. ROSE:  Commandant Berger, thank you.

Commandant Schultz, same question.  You referred to the away game.  And it sounds like the tempo is faster, in addition to the force being more dispersed than it’s ever been before.  How does your budget request feed that, sir?

GEN. SCHULTZ:  Yeah.  Thanks, Francis.

I would tell you, just for a little context, sort of 2011 Budget Control Act and sequestration in ’13, we had a tough seven, eight years that followed that.  We lost about 10 percent of purchasing power in our operations – support operation and maintenance budget.  And I think we have turned the corner.  In 2018, when it was the 12 percent plus-up for DOD, we were sort of outside of that sitting in DHS.  But last few budget cycles, I think we’ve sort of turned the corner; ’22 put us on about a 7 percent uptick; ’23 builds on that.

So I think the conversation about what kind of nation does the Coast Guard need is sort of now walking into the resource arena.  I think 3 to 5 percent outyear growth, we could continue to deliver that Coast Guard.

Where we’re challenged, Francis, to be frank, is critical infrastructure.  We’re a, you know, 232-year-old Coast Guard come this August, and we’ve been patching roofs and other things.  So as we cite new cutters, as we, you know, deal with – most of our infrastructure investment is where we’ve been whacked by hurricanes.  You know, the folks that are in the Great Lakes are praying for hurricanes to come up there so they can get some new infrastructure.  That’s not a good model to have here.

So we’re really working hard to have a conversation about the readiness of the Coast Guard.  We’ve made progress.  Now it’s sort of to get ready, we’ve got to continue on a trajectory and we’ve got to get after some of this baggage we carry.  I think – I talked about readiness before, but, you know, I talked about a relevant, responsive Coast Guard, the people thing.  We’re going to push this Ready Workforce 2030.  It’s at the printers now.

But it’s really how we think through finding sufficient young men and women to be recruited into the service.  How do we train them, modernize ready learning for us, and how do we retain them?  You know, we have the highest retention across the services, but we’ve got to do better there.  And I think there’s a piece, ’23 budget, where the numbers aren’t big proportionately to the whole budget.  There’s money in there for people.

How do we create a Coast Guard that looks more like the nation we serve?  How do we get after health, mental health?  How do we get after some of the challenges that our Coast Guard families and our service families are realizing?  This is going to be a tough PCS season.  You know, housing costs – as I transition, I look out there and say, boy, this is just a tough place even to find how you uproot and go somewhere.

So I would tell you, budgetarily, Francis, we’re having the right conversation.  The ’23 budget on the Hill puts some monies out there for the Atlantic partnership.  It talks about the Arctic, talks about the Coast Guard in the Indo-Pacific.  That’s sort of forward-leaning.  We generally go do things for a few years and then we have a conversation about what do you want to pay for us to continue to do it.

I think it’s very encouraging that the administration, the Hill, is embracing the fact that, hey, a ready Coast Guard that can do some unique things, given all our authorities, needs to be funded properly.  So I’m actually quite encouraged.  The piece that really keeps me up at night a little bit is just this infrastructure challenge we put forward.  That is going to be a hot baton handoff to my successor to continue to message into that.  I’ll be messaging to that in my budget hearings in the coming week, sir.

MR. ROSE:  Thank you, Commandant Schultz.

You’ve all mentioned, at one level or another, the new National Defense Strategy, the classified version transmitted to Congress and the unclassified version coming.  And the fact sheet from the department says the department will advance our goals through three primary ways: Integrated deterrence, campaigning, and actions that build enduring advantages.

CNO, you referred to China.  And no one is surprised by that.  But what we’re seeing in Ukraine strikes me as informing the way that we all should be thinking about each of those three elements.

Commandant Schultz, you are interacting with Russia in the Arctic on ongoing, I imagine almost daily basis.  What do you learn?  What do you take from what is happening in the world broadly, especially given what you’re trying to do for the United States in the Arctic?

ADM. SCHULTZ:  Yeah, Francis, I would tell you, currently, because of what’s going on and, you know, the unjust acts in Ukraine by Russia’s – you know, the Arctic Coast Guard Forum, the Arctic Council, where Russia holds a chair, you know, I was supposed to have met with them in April, and that’s obviously on hold for very obvious reasons.

But, you know, a pragmatic relationship with Russia in the Arctic, a pragmatic relationship with China on, you know, operations – you know, international fishing, U.N. sanctions against illegal fishing – you know, we need to have a pragmatic relationship; our proximity with the 17th district based out of Juneau, Alaska on the maritime boundary line.

We still work functionally, pragmatically.  But I think it’s a stress period.  I think, you know, how does that play forward going – that’s something we have to think about.  But in the Arctic, you know, like I said, it’s inarguable, Russia has a lot of clear Arctic interests, and they’re deriving about a quarter of their GDP from the Arctic.

So what does 20 years down the road – you know, are we looking at freedom-of-navigation operations potentially in the Arctic?  And as we build out a fleet of a minimum of three Polar Security Cutters that are on a good budgetary trajectory, that needs to really be a conversation about six-plus heavy breakers.  And we need to have a conversation about some medium capabilities.

We need to be teamed up with Mike’s team in the Arctic and, you know, the Marines and the Navy, you know, back from Trident Juncture to the recent operation.  I think the Arctic is absolutely an area of increasing geostrategic importance.  And I think recent weeks – you know, the month-plus of events now – just put a point on that.  We need to really be thinking into that with more strategic, you know, clarity than ever before.

MR. ROSE:  Thank you, Commandant.

Commandant Berger, I’m curious about the three elements that I mentioned of the National Defense Strategy, and directly in reference to Force Design 2030.  You’re aware of the controversy about it in some quarters.  How does what you envision and the Corps envisions through that Force Design 2030 get you to fulfilling the vision of the National Defense Strategy and a greater deterrence campaign building enduring advantages, sir?

GEN. BERGER:  For those of us seated up here, this is – and a few others in the audience – this is the second time in my career we’ve had a pacing challenge.  I think for the first decade or so it was the Soviet Union.  And I remember, as a lieutenant and a captain, that you had cards like this.  You had to study their formations.  You had to study all their weapon systems.  We knew their tactics.  We knew their leaders.  And that arguably helped us in 1990 and ’91 and beyond.  So this is not déjà vu.  It’s a different framework.  But still for us it’s the second time we’ve had a pacing challenge.

For the Marine Corps, fitting into the National Defense Strategy in an ends-ways-means sort of way, we are – in terms of campaigning, you need – the nation needs a force forward persistently, I would argue, that is also expeditionary and has a forcible-entry capability.  Why?  Because that’s your first opportunity to deter.

In other words, having a Coast Guard-Navy-Marine Corps presence, and I would argue Special Operations as well, forward all the time, not fighting their way in but forward all the time, gives the secretary a better picture of what’s in front of him.  You’re already in places they want to be.  If they want to extend beyond the South China Sea if you’re the PLAN or Iraq or Russia, if you want to extend your fence line further and we’re already there, it makes it much more difficult.

But it has to be credible, the way that these two gentlemen point out.  The campaigning part is part of the deterrence part.  It’s not campaigning for campaigning’s sake.  You’re doing it with a purpose in mind, that you’re posturing the force all the time to be ready to respond in a crisis, but your positional advantage gives you a deterrent capability.  It alters the thinking of the threat.  And Admiral Paparo, who’s sitting right here, probably better suited than me to come up here and tell you how he’s using – he and Admiral Aquilino are using those forces in the Indo-Pacific forward all the time, rather than fight your way in.  You have a better picture.  You can respond to crisis faster.

MR. ROSE:  CNO, one of the elements of those three components is conversation about your force structure.  The number for a long time was 355 ships.  The most recent number that I believe I heard was 500, including unmanned.  What does that look like today?  How does the budget get you to that?  And how does that structure in, and then what those ships are, fit into those three components of the NDS, sir?

ADM. GILDAY:  Yeah.  If I could, before I answer that directly, if I could just add on to something that General Berger just talked about with respect to campaigning.  The deterrence piece is really important, fundamentally important, because it’s a cornerstone of the secretary’s strategy.  But I also think, in a world of gray-zone competition, I also think our presence forward allows us to be in the way and to expose malign behavior by China.

Think about how important it was for the United States, and the world really, with respect to Russia’s activity into Ukraine.  We took away his strategic surprise.  We took away his operational and tactical surprise.  We pulled a rug out from under Vladimir Putin with respect his ability to use false flag operations as a pretext to cross the border and invade Ukraine.

And so, our ability to do that on a day-to-day basis in the Western Pacific, I would argue, is critically important, and you can’t do that virtually.  You have to be there to assure allies and partners, to see that activity, to expose it, and so that’s another element of why a forward force, I think, is critically important, in conjunction with General Berger’s comments about being ready to support the fight tonight and to make President Xi think twice about whether or not he’s going to make a malicious move.

With respect to the size of the force, so the Navy’s priorities are and have been steady for the past three to five years.  Readiness, modernization, and capacity – in that order.  I think that those priorities have served us exceedingly well.  Why?  Because we need a ready capable lethal force more than we need a bigger force that’s less ready, less lethal, and less capable.  In other words, we can’t have a Navy or a Marine Corps larger than one we can sustain.  That’s important.  So, let’s keep it real with respect to what we’re going to field out there.

So, if you take a look at our investments, right, we are trying to do divest of those given our topline and given the fact that we can only have so many ready ships that are manned properly, that are trained properly, that have ammunition in their magazines, that have the proper maintenance.  In order to do that, we’ve had to make some very difficult decisions about divesting of some platforms.  It’s more than just a numbers game.  It is a capabilities and a numbers game about fielding a combat-credible force that can deter.

If we want to talk just about capability and you want a force that can’t – that’s ineffective, take a look at the 125 BTGs that Vladimir Putin has positioned around Ukraine.  That’s not the force that any of us want.  And so, the investment strategy – if we want to flip that and make capacity king, you’ll end up with a force like that because you’ll pay for it with people, with ammunition, with training, and with maintenance.

We’re maxing out the production lines of all of our long-range weapons with high speed in this budget – whether they’re advanced-capability torpedoes, SM-6 1-Bravo, Maritime Strike Tomahawk, JASSM-ER, LRASM.  In all three domains we’re maxing out – trying to max out those production lines.  We are trying to make sure that the fleet today is ready to go, and 70 percent of that fleet we’re going to have 10 years from now.

So, the investments that we’re making in hypersonics to deliver that capability by mid-decade as well as the critical R&D in microwave and laser technology that gives us an enhanced capability to defend that fleet have become indirectly important.  I personally think they’re on the right path.  That path is not popular with everybody in this room – it’s certainly not on the Hill – but I believe it’s a responsible path.  And I think it both fields a force today that’s ready to go and it invests in a force mid-century and beyond – mid-decade and beyond that will serve us well.

MR. ROSE:  Chief, thank you very much.

We have some time for some questions from the audience.  I now need glasses to see the audience and the microphones.

Microphone people, can you raise your hands, please?  Terrific.

If you would like to pose a question, the microphone will come to you, just raise your hand, and I’ll ask you to state your name, the organization that you’re with, and then direct your one question – (laughter) – one question to one or more of the speakers.

Q:  Hello.  John Conrad with gCaptain and a U.S. merchant mariner.

Last time we faced this issue, John Lehman was secretary of the Navy, and he was a hedge fund manager.  I just got back from the biggest shipping conference with finance people, and Admiral Schultz had many representatives there.  There was not a single naval officer.  The PLA is using credit default swaps and coded capital in order to use the financial instruments with the commercial fleet to push a shipbuilding plan for their Navy.  There are four flags behind you, but only three service chiefs.

Where is the commandant of the U.S. Merchant Marine, and when we are we going to put our people into shipyards in Korea and China to learn those lessons of efficiency and finance that are commercial?

Thank you.

MR. ROSE:  Would any of you like to take that question?  (Laughter.)

ADM. SCHULTZ:  I guess I heard my service mentioned.  I think from a Coast Guard perspective – back to my initial entry comment about the global maritime commerce, the importance of that – you know, when you think about the largest navy in the world, the largest coast guard in the world – China’s Coast Guard is more than 200 ships.  The China government will have more icebreakers than the United States government because of their wherewithal in their shipbuilding.  So, I think there’s a lot to think through in that case.

Obviously, you know, need to sit down with Secretary Buttigieg and – you know, as they seat their MARAD administrator.  I think your points are fair.  I think we have to sort of think about the whole of government response and a pacing threat of China.  I think absolutely it’s all stakeholders at the table and think about this through a very comprehensive lens, maybe more – arguably more so than we have in the past.

So, I think your point is fair, and it’s something we all need to, sort of, take for consideration.

MR. ROSE:  I lost a bet.  I bet a colleague of mine at work that the first question would be about Force Design 2030 and I lost big.  (Laughter.)

Who’s next?

Q:  Good morning, gentlemen.  My name is –

MR. ROSE:  Sir.

Q:  Good morning.  My name is Reid McAllister (sp). 

I have a question about being agile in acquisition, agile in requirements, and agile in our budgeting.  And what is it that we’re going to do with continuing resolutions always hampering us?  How are you preparing for a means for us to be more agile as we’re finding greater capability coming against us in order to get after our adversaries?  Because they tend to be – appearing to be turning inside of our diameter.  And what are we going to do to get more agile in that area?

Thank you.

MR. ROSE:  Thank you, sir.

CNO?

ADM. GILDAY:  Sure.

I think it’s difficult to take a look at that across the entire United States Navy.  Let me give you a couple of examples of things that I think are going well that we can learn from and things that we are trying to become more agile.

First of all, I think with respect to our large platform – submarines and ships, as an example – I think predictability and stability for industry and for the United States Navy is critically important.  I think that we’re achieving that with respect to submarine build rates, right?  They’re predictable out to 2037 – a boomer a year and two fast-attack subs.  That allows industry to plan their investments in infrastructure and their workforce, and they have a set headlights that goes out 15 years or more.  It allows the repair side of the house – whether it’s a public yards or whether it’s a private yards in Connecticut and Hampton Roads, VA – to understand what that demand signal looks like and to plan for that.

So, I think that predictability and stability there are really important.  I would like to have that in the surface force.  And so, as we take a look at our major investment lines – Flight III DDGs, FFG-62, potentially DDG(X) by the end of the decade, right – I want to be able to count on two or three of those types of ships a year with plenty of overlap between Flight III DDGs and DDG(X).  We’re pushing out great capability to the United States Navy and for the nation.  At the same time, we’re giving a nice feather predictable plan for industry so that we’re not taking high technical risk.

I think driving down technical risk in shipbuilding programs is really important, and I think the example that I gave of comparing the submarine build with the surface build is an important one that we can learn from. 

With respect to agility, what we’re doing now with unmanned is exactly where we want to go with (destructive ?) technology.  So, instead of fielding unmanned in the same kind of deliberative long lead time frames that we have for those larger platforms – we’re experimenting with the Fleet CTF 59 in the Middle East right now.  Last year – last month, the largest unmanned exercise in the world – a hundred different platforms, 10 different countries, dozens of vendors – taking a look at how we can connect software AI with a variety of platforms to enhance maritime domain awareness.

In other words, to both sense and make sense of the environment we’re around in a much – in a way that we can deliver capability to the warfighter, whether they’re ashore like the Marines or whether they’re afloat like the Navy and the Coast Guard – at the same time, taking a look at problems outside the FYDP, large unmanned vessels as an example that provide us that floating arsenal – or will provide us that floating arsenal of weapons.  It doesn’t necessarily have to be completely unmanned.  It will be minimally manned for a while.  It just needs to be evolutionary.

But land-based prototyping that we used successfully with Colombia and DDG-51s, where we take an engineering plant and we run the hell out of it, so that we understand that it’s reliable and capable, before we scale it and put it on a large unmanned vessel.  Same type of idea. 

And I would tell you that Project Overmatch, which most of you are familiar with, is also getting after the C2 challenges that we need to resolve before we scale in a big kind of way with unmanned.

So, that experimentation that’s ongoing with small unmanned and the prototyping that’s the kind of agility we need to deliver stuff quickly in a critical decade.

I took a lot of time, and I apologize for –

MR. ROSE:  No, no.

ADM. GILDAY:  – maybe you’re happy I just, you know – that filibuster burned up like five minutes.  (Laughter.)

MR. ROSE:  No.  (Laughs.)

Commandant Schultz, you talked about some of the platforms that you’re bringing online and the timelines and so on.  What do you – regarding the question about agility and acquisition, agility, and requirements, what have you learned from those?  And what have you learned from maybe some of the things in the past that didn’t work the way you wanted them to that’s put you on this trajectory to be more agile in acquisition and requirements and so on?

ADM. SCHULTZ:  Yeah, well thanks, Francis.

I think Mike was spot-on.  I think for us – smaller service, you know, stable, predictable funding is critical.  We’ve sort of been in the good spot in that in recent years.  I think for us locking in requirements – we don’t build ships that frequently, and we’re in a period of prolific shipbuilding.  It’s important that we have those locked on.  I think as we’re, you know, moving the design forward in the Polar Security Cutter, that’s been a little bit of a delay.  That’s a complicated ship, a lot of foreign pieces in that, but we’re excited to hopefully start cutting steal.

I think the piece that’s interesting, you know, that’s outside of the Coast Guard control, outside the naval control is, you know, for us when you get a budget halfway into the fiscal year, you know, that’s challenging, and it used to be you didn’t get a budget, you know, 90 days in the first quarter.  You know, when we go out and compete for ship repair work, you know, the scale of our shipyard repair is much more than a navy combatant coming in.  Sometimes it could be for the same places.

So, if you’re making decisions as the Coast Guard, you’re making decisions as a ship repair industry, you might wait for the Navy contract.  So, for us we got a little bit of two-year monies.  We need to expand that.  We need to go back to Congress and double down on that.  I do worry a little bit, as we buildout, the ninth or 10th and the 11th National Security Cutter or a fleet of 25 Offshore Patrol Cutters, which is, you know, a 4,500-plus ton ship – big ships.  We’re going to be competing for these same shipyards, and we need to think through that a bit.

You know, only in Washington can you have a continuing resolution that expires on a Friday, you pass it on a Thursday, you’re still five-and-a-half years in and that’s still a budget success, but you’re halfway through the fiscal year.

So, we got to get, I think, a little more clarity as a nation about the importance of getting a budget at the start of the fiscal year, to the extent that’s not just a delusional dream here.  It impacts a smaller service like the Coast Guard, I think, exponentially so.  I know it affects Mike, you know, and the ship repair industry, shipbuilding as well.

MR. ROSE:  Thank you, sir.

Commandant Berger, how is agility and requirements and acquisition in the – and the other elements impact in the Corps?  How are you thinking about those issues and applying them, sir?

GEN. BERGER:  The first part I would say in answer to the question – out of time to think of course, which is always helpful – (laughter) – but I think the best thing we could do, relatively, to speed up our acquisition is actually find a way to convince the PRC to adopt our acquisition process.  (Laughter.)  That would be huge – (laughter, applause) – if we could just do that.

But I think – you know, all that aside, a couple of things.  First, the Marine Corps benefitted from some really brilliant moves 30 years ago to put acquisition, and requirements, and manpower, and training, and education all at the same base in Quantico, Virginia, which is not far from the Pentagon.  So, they can collaborate at speed.  We’ve been able to do that for decades.  It’s just a huge advantage, really great foresight.

Second, I would say – and again, a great question for Admiral Paparo or others to validate or not, I think you have to actually get something in the field and demonstrate it as early as you can rather than take two or three years to develop it and work on it and engineer it.  Last summer, Admiral Aquilino pressed really hard to get a demonstration of the NEMISIS system for us, which took a lot of coordination between the Navy and the Marine Corps in Hawaii to pull off, but in the end, very early on in the process of something you actually show what it can do.

I think that’s the confidence builder sometimes that Congress and others need to see it.  It’s also great because – the second half of that is – as the other two gentlemen know, is you’re putting things in the hands of operators early.  They’re going to give you feedback on that system and say that’s in the wrong place.  It needs to be moved over here.  Or that’s not functional, I need it bigger or smaller.  So, I think you have to demonstrate it.

We have to get it into the field as quickly as possible for both of those reasons, to build confidence in that – in those resources, but also to get it into the hands of operators so that the feedback – we’re not waiting two or three years for feedback, we can make the changes early on.

MR. ROSE:  Thank you, sir.

We have one more audience question.  I saw a hand in the back there.

Q:  Good morning.

MR. ROSE:  There you go.

Q:  Yep, over here.  Megan Eckstein with Fox News.

MR. ROSE:  Hi.

Q:  Hi.

I wanted to ask about beginning to change your operations to reflect things like campaigning forward and distributed operations.  As you try to do those things with today’s fleet, are you looking at different force generation models or different ways of employing today’s ships and forces?

ADM. GILDAY:  If I take a look at the operating concepts of our fleets forward, they’re signed by not only the fleet commander – the numbered fleet commander, but also the numbered Neff commander, and so these are integrated warfighting concepts that we are now using on a day-to-day basis, right.

With respect to campaigning and the JTF concept that Admiral Aquilino is exercising out there in Hawaii with Admiral Paparo, acting almost as a de-facto JTF commander supported by the other services – it’s caused us to think hard quickly about how we integrate our forces, how we integrate our naval forces better.

I’ll tell you, besides that NEMISIS firing those two missiles – which I was fortunate enough to be in the range and watch, which was awesome – right now our deputy commander – right now, our Joint Force Maritime Component Commander in Naples, Italy, which has some 30 ships under their command right now, the deputy commander is a Marine officer – a Marine general officer, and that staff – our JFMCC staff is infused with Marines from European – from MARFOR Europe.  I would say the same thing for Admiral Paparo’s staff on Hawaii as – the same thing with the Admiral Koehler’s Third Fleet staff in San Diego.  We are working together with those MEFs.  Operationally, we’re testing stuff.  We’re doing experimentation.  We’re operating together.  That’s where you’re seeing the preponderance of the Navy-Marine Corps integration going on, is at that level.  We’re quite honestly, probably most important for today, and what we’re learning from it, that’ll inform what we’re resourcing tomorrow.

GEN. BERGER:  I’ll just add – we are – to answer the question, we are talking about the process we use right now for Global Force Management and the process we use right now to assess readiness, both of which we need to upgrade, we need to bring into – a way that’s much more helpful to the secretary.  And he has the tools that he has now, but we can do a better job of portraying the risk for him.  Because a combatant commander is going to ask for this and say, if I don’t get it, I can’t articulate the risk.  The onus is on us for not countering that but to say, if you do that here’s the impact on long-term readiness and the impact on risk long-term to force generation and force development, so that the secretary has the complete picture and can make the right calls.  He makes them right now with the information that he has, but I think we can do better.

It’s just an evolutionary process, in other words.  It’s about understanding risk globally, managing that risk, and giving the secretary, the senior decision-makers, as accurate a picture as can, so they get – they can make all the right calls all the time.

MR. ROSE:  Commandant Berger, thank you for that.

I want to give you and the CNO a chance to correct me in a moment – to answer the questions I didn’t ask you.

But Commandant Schultz, I want to start with you because this will probably be the last chance that I have to talk to you while you’re still the commandant.  You’re transitioning out shortly.  What will you take away primarily from your service?  You all have talked in the various times I’ve spoken to you over the years about leaving the service better than you found it.  How do you believe that you’ve done over the time that you’ve been the commandant and your entire career, sir?

ADM. SCHULTZ:  Yeah, thanks, Francis.

I wasn’t expecting that.  You know, as I reflect back, I think all the senior military leaders, all the service leaders, you know, it’s been an interesting time here.  So, I’m an 18-22 guy, the four years, and we’ve had some challenging periods.  You know, from a Coast Guard standpoint I never expected to stand in front of 55,000 people and explain why they weren’t getting paid for a little bit, you know?  And you stand the watch, we’ve stood tough.  You’re resilient.  Our families are phenomenal.  I think I reflect back on just how resilient the military family has been in recent years, and I think we talk about an environment where, you know, 75 percent of America’s youths 18-26 are ineligible to serve, so 25 percent are, and then within there, you know, a decrease in number have a propensity to serve – 9, 10, 11 percent.  And we’re all out there trying to encourage these bright young men and women to come forward and wear the cloth of our nation and serve.

So, we have invested heavily in our people, and we’ve got a lot of work left to do.  When I talk about readiness, there is a clear people piece, and we talked about this Ready Workforce 2030.  It’s about more portability, permeability. We’re striving to be a Coast Guard reflective of the nation, and we’ve got to go recruit different places.  We kicked off in 2020 what we called the tech revolution.  I announced that – I do an annual state of the Coast Guard.

And you know, these bright young men and women that want to serve, you know, they don’t want to have more mobility on their personal device than you give them at their desk or in their job, so we have worked very hard to put some mobility out in our people’s hands.  We’re looking at data.  You know, AI and data analytics, I think that’s how we move forward and make the best decisions.

I think the shipbuilding we’ve maintained pace.  I think – as I reflect back, just – at the risk of getting long-winded – I think we’ve managed a service – we’ve all managed our services through some pretty challenging pandemic periods – you know, sending a National Security Cutter or a DDG, Marines on an amphib downrange, N-95s, away from families in an uncertain environment in the first months of COVID.  You know, we’ve been as busy as we’ve ever been in the last 24 months, so I’m excited that we did that safely.  We tried to attenuate the risk and the stress on the families, and then we constantly went back to our four-year plan.  We’ve had a four- year strategic plan about a ready Coast Guard.

You know, I reflect on the last five or six years, from Hurricane Matthew in ’16 – which was a one-off storm after a decade of no storms – to ’17, ’18, you know, 20 being a record Atlantic-based in hurricane season.  Your Coasties have stood the watch here throughout those storm seasons, you know.  Fifty percent of our reserve force has activated almost each of the last couple years – whether it’s vaccination sites, whether it’s hurricane response, whether it’s part of allies’ welcome.  So, I think I’m – I reflect back on the men and women that are serving their nation.  You know, 60 percent retention, the Coast Guard.  We need to go continue to find them, and I think it’s continually, despite some of the challenges, it’s going back to a plan that delivers that Coast Guard that the nation needs.

And I mentioned domestic before, so I won’t rehash that – really increasingly global.  I think when you roll up – and my predecessor used this term.  He called it – it’s an era of Coast Guards across the globe.  Most of the maritime forces tend to look more like the United States Coast Guard than they do the United States Navy.  They just don’t have the wherewithal.  So, they’re interested in their sovereign waters.  They’re interested in illegal fishery in their sovereign waters that detracts from their own economics.  The African continent will have 25 percent of the world’s population here, you know, in the next 25 years.  Food sustainment and IUU fishing – there’s some burgeoning opportunities.

And I think we’ve positioned the Coast Guard – we, being the leadership team, the men and women of the service – to be relevant there.  You know, I think it’s – the Coast Guard as this unique instrument in national security.  It’s trusted access.  It goes – is able to go some places where maybe it can’t send a gray hull or an amphib with Marines onboard, but you can get the Coast Guards in there.  We can partner at a different level.

MR. ROSE:  Mm-hmm.

ADM. SCHULTZ:  I think, Francis, that’s what I’d reflect on and say.  I think that’s been the work of this team here that I’m most proud of in recent years.

MR. ROSE:  Not bad for a question you weren’t expecting, sir.  (Laughter.)

ADM. SCHULTZ:  Thank you.  (Laughs.)

MR. ROSE:  Commandant Berger, what should I have asked you that I didn’t, sir?

GEN. BERGER:  First, I thought you were going to say I was winding down my tour – (laughter) –

MR. ROSE:  No.  No, sir, I don’t know anything about that.  (Laughter.)

GEN. BERGER:  Really.  (Laughs.)  Sure.

ADM SCHULTZ:  I was supposed to tell you that, Dave.  (Inaudible) – asked me to tell you this.

GEN. BERGER:  (Laughs.)

MR. ROSE:  (Laughs.)  I don’t know anything about that.

GEN. BERGER:  I would say – we grade – I think – the service chief gets graded in two different time frames.  We have to give the combatant commanders what they need.  Not always everything they want, but what they need now.  Grading our homework, do they have the capabilities?  Are we organizing the force right?  Are we training the force right?  The way the commandant spoke about are they the right people?  Are we brining in and retaining the right people today, right now?  We are. 

And I think the ongoing operations – the conflict in Ukraine, for me, validates actually the last couple NDSs in that you need a really strong land force to deter Russia in Europe.  We all play a supporting role in that – the air and naval marine elements play a supporting role, but you need a really strong land force in land Europe to deter Russia from just expanding beyond where they are in Ukraine.  I counter that to, I think, INDOPACOM, where it’s very much a maritime theater and you need a very strong Navy-Marine Corps team backed up with a supporting role from the Army.  But that’s the value of the joint force, right?  Knowing what you have and applying it to the environment that’s in front of you.

I think grading our homework, though, probably equally valid to look at it five, six, seven years into the future.  That’s the only time you’re really going to know whether the service chief did their homework – made the hard decisions, got rid of stuff that they had to get rid of, put the resources into the right places.  You can’t grade it in the near-term, in other words.

I think it’s too early to tell.  But you would want to go down the same checklist:  do they have the right people five, six, seven, eight years from now?  Are they trained as well as they should be trained?  Do they have the right capabilities to overmatch the threat, not an even fight but like others posit that you have a clear tactical to operational advantage?  And can they stitch it altogether in a combined arms, in a joint way, that makes it really tough for an adversary – as the CNO points out – to take the next step?

So, I think you can’t really grade a service chief’s homework – the second-half – until years down the road, and then you’ll know – then you’ll know whether they organized, trained, and equipped that force to do what it needed to do in the future because the future’s – there’s a lot of unknowns there.  We have to make a lot of assumptions and make hard decisions.

MR. ROSE:  Thank you, Commandant.

CNO?

ADM. GILDAY:  I think I’ll take the opportunity to talk about industry for just a moment, and the first point I’d make for those small companies that are looking for – to find a door that actually you can push open and inform us, educate us, about things that we’re not even thinking about, that you’ve been working on.  NavalX is that door to push on, and NavalX has introduced extraordinary opportunities to us in the areas of unmanned, of AI, and cutting-edge software.  So, please continue to use NavalX to get to us.

And the other thing is, we’d appreciate your feedback on how we can improve and make that door swing open even easier and faster.

I’ve spent a lot of time going around to shipyards, visiting production lines for aircraft, and a common issue right now is workforce – and attracting and recruiting that talent and retaining it.  I’m struck by the apprenticeship programs that you offer in private industry.  They are extraordinary.  And I would offer this thought to you, as you try to attract talent, think about the hundred thousand Ukrainians and the 124,000 Afghans that are either coming to this country or have already set foot on our shores and reaching out to them and find a path to attract them into those apprenticeship programs.  You offer well-paying jobs with a career of advancement that’ll allow them to send their kids to college and to buy a home.  Think about how powerful that would be to somebody emigrating to this country that wants to give back.  I’d leave that thought with you as something to consider here as you leave the conference this week.

MR. ROSE:  Chief, thank you very much.

ADM. GILDAY:  Yeah.

MR. ROSE:  Commandant, Commandant, thank you very much for joining us today.

I want to thank the Navy League for inviting me to be a part of this.

MCPON, thank you very much for the great invitation.

Julia Simpson is here somewhere, who’s done just a wonderful job to put all this together.

Thank all of you for your attention.  It’s great to be back in person.  Enjoy the rest of the conference.  Thank you very much.  (Applause.)

ANNOUNCER:  Thank you for joining us. Our next sessions begin at 11:30 a.m. and the exhibit hall will be open until five p.m.

Defense News: CNO Media Availability After the Christening of the Future Jack H. Lucas (DDG 125)

Source: United States Navy

(Crosstalk)

Q:  I wanted to ask, transitioning to Flight III we’re also seeing a lot of cruiser retirements coming up.  Can these ships take over the air defense commander roles from the cruisers?

ADM. GILDAY:  Yeah, they can.  And so we do that now – we do that now with the Flight IIs  and we can certainly do it with the Flight IIIs.  I think, importantly, with the Flight IIIs we’re also leading the way in the transition with DDG(X) towards the end of this decade.  And so I expect Flight III DDGs, along with DDG(X), to be around for decades and decades.  And, certainly, that air missile and defense commander role is going to be right – a core mission for them throughout that timeframe. 

Q:  And just a quick follow up.  You mentioned DDG(X) and the transition.  How many of these Flight IIIs do you still need?

ADM. GILDAY:  As many as we can build, quite frankly.  We just see the demand for destroyers increasing, and for the surface Navy in general is on the increase.  And so, you know, I’ve said publicly that, you know, we need a high number of small surface combatants as well as large surface combatants.  There’s going to be a definite role for these – for these Flight IIIs in the – in the future.  I’m very certain of that, very confident of that. 

Q:  Thank you.

ADM. GILDAY:  You’re welcome. 

(Crosstalk)

Q:  So, in your opinion, what makes these destroyers set the standard for the following ships to come?

ADM. GILDAY:  So Ingalls has been building these destroyers for decades, 40 years now this class of ship.  This is the 75th DDG hull that we’ve christened.  And so they know what they’re doing.

HII – Huntington Ingalls Industries and Huntington Ingalls Shipbuilding – I consider them to be world class with respect to shipbuilding.  And the only reason why they can be world class, besides the exquisite technology that they have down here, is the fact that the team that builds these ships, they’re like Olympic athletes.  They’re like gold-medal Olympic athletes.  And so this is a shipyard that really does set the pace.  If the United States Navy is the pacing threat in the world with respect to navies, I consider this shipyard to be pacing many others with respect to the quality of the ships that they produce.

Q:  And could you talk again about the valor and the quality of the people who will be serving on this ship?

ADM. GILDAY:  Absolutely.  So we’re very proud of our sailors, and the sailors actually bring the ship to life, right?  And in this case, Jack H. Lucas was a Marine Medal of Honor winner, and we are christening this ship on the celebration of the battle that he helped win, and that’s the battle for Iwo Jima.  And, of course, all are familiar with the – with the flag raising at – on Mount Suribachi.

So that kind of fighting spirit, that determination, that indestructible nature of Jack Lucas; that the sailors on this ship, I believe, are going to embody Jack’s spirit, and so they’re going to bring this ship alive when she sails about a year from now and she joins the fleet.  So I look forward to that.  And I look forward to coming back, seeing this crew on this ship, because I know that they’re going to be among the best in the fleet.

Defense News: SECNAV Speaks with Media at McAleese Defense Programs Conference

Source: United States Navy

Reporter: About the shipbuilding plan, are you only going to give like a number for the 10 years out and then give, again give a range for this year, 30 year shipbuilding plan?

SECNAV: Yeah, I spoke very clearly actually about what was done last year. But you’re gonna have to wait till we actually released a shipbuilding plan to see what we’re going to do this year.

Reporter: So what do you think Congress’s reaction is going to be when you’re going to only give him a range again?

SECNAV: Well, we’ll have to see we’re actually when we release the shipbuilding plan and how Congress responds to anything that we actually release. The question I got earlier in the audience was about, my answer spoke about the FY22 budget and how it was handled, and I thought it was handled well, that you’re going to have to wait to see our reaction when we released the President’s FY 23 budget.

Reporter: Hello Sir. I wanted to ask you about unmanned systems, specifically, the Navy has been, you know, in a bit of a messaging battle with Congress these past few years on, you know, proving the technology against funding it. I wanted to hear your take on that issue. How has the Navy changed its messaging, and how should it change it going forward? If you want to convince Congress to fund unmanned at the rate the Navy says it’s needed?

SECNAV: Well, I think, you know, Department of the Navy has responsibility to be able to prove that the technology that Congress is going to invest in actually works right, and it meets what we need to address the threat that lies ahead, right. So it’s important to assess these technologies to pilot the technologies to make sure they fit within our concept of operations, to prove them and to figure out the man to unmanned interaction that has to take place with regards to the technologies. And I think at that point, basically, you receive additional funding to take it to a higher acquisition level. Before we make that investment. I think that’s the responsible thing to do. I think our Congress understands that and so I don’t see it as a fight between Congress and the Department of the Navy. I think we’re sort of, you know, aligned in our thinking about what has to be done.

Reporter: Continuing on unmanned systems, you mentioned in your speech, that part of the fluctuation, in the range of the shipbuilding plan is built in for those unmanned systems. I was wondering if you could maybe discuss a little bit more how you are balancing that range with you don’t really know exactly where unmanned systems are going with Congress’s desire to have specific numbers?

SECNAV: Well, I think that there are some in Congress that want to have very specific numbers, and there are some in Congress that are quite comfortable actually talking about a range of numbers. At least that’s my impression of what took place last year as well too. And so you know, when you take a look at the numbers of unmanned platforms, small or large, that might be needed in the Department of the Navy, it’s really hard to predict the exact number, you know 20 or 30 years out, and so I think it’s a viable option to what was done in the Presidential budget, the FY22 budget to take that approach basically.

Reporter: Going into frigates, how likely do you think it is that the Navy might end up using a second shipyard to develop Frigates faster, especially if you ever decide to go beyond 20?

SECNAV: Well, I think we’ll have to look at that issue in years to come. Obviously, the more competition we have to build any particular platform, the better off we are as well. So we have this initial 20 Frigates we are looking at, as we continue to look beyond those 20 it may be necessary to bring on a second shipyard. I really don’t know the exact answer to that yet but we are going to be assessing that very closely in the years to come.

Reporter: So we keep talking about the importance of personnel and how they are our strategic advantage but right now we currently have 4,600 Active Duty sailors who can’t deploy because they’re not fully vaccinated. So how does that play into continuing to have a strategic edge, we have so many sailors who can’t fulfill the mission of the Navy.

SECNAV: Actually, when you compare it to the whole of the Navy and the entire manpower, the Navy and the Marine Corps, it’s actually not that great, a larger number. And it’s incredibly important for all our sailors and our Marines to be properly vaccinated because this is an issue of combat readiness. We simply cannot put the lives of our other sailors who are vaccinated at risk.

Reporter: Sorry if I’m asking you a repeat question. CNO mentioned doing another force structure assessment coming up for FY24 lawmakers and have been pretty insistent that they want some more long range guidance in the upcoming FY23 budget cycle and I just wondered what we could reasonably expect in 23, even knowing that you have another FSA coming up.

 SECNAV: I think we’ll be very clear about what the Department of the Navy actually needs, both in the Marine Corps and the Navy in the President’s FY23 Presidential budget.

Reporter: But I mean, looking out forward or are you really projecting until you do another FSA?

SECNAV: In FY24 we are going to be conducting another force assessment. The last force assessment was done several years ago so we are going to be implementing that in 24 as well to keep looking ahead as to what we need. Thank you so much. Have a great day. Bye.

Defense News: WEST 2022 Luncheon Town Hall

Source: United States Navy

Below is a transcript of their discussion:

VICE ADMIRAL PETER H. DALY (RET.):  Thank you very much for that nice introduction.

OK.  Well, here we are at the town hall.  I’d like to just make very short introductions because our distinguished panel doesn’t need much more than just a few words to appreciate what we’ve got here.  But I need to say that Admiral Karl Schultz, U.S. Coast Guard, is an academy grad and career cutterman.  He’s commanded at all operational levels from WPBs from patrol boats to commander, Atlantic Area.  Admiral Schultz became the 26th commandant of the Coast Guard on 1 June, 2018.  Welcome, Admiral Schultz.

ADMIRAL KARL L. SCHULTZ:  Thank you, Peter.

VICE ADM. DALY:  General Dave Berger is a Tulane University graduate and career infantry officer.  He commanded all operational levels including combat, from rifle platoon commander to commanding a Marine expeditionary force.  And General Berger became the 38th commandant of the Marine Corps on 11 July, 2019.  Welcome.

AUDIENCE MEMBER:  Oorah!  (Laughter.)

VICE ADM. DALY:  And Admiral Mike Gilday, U.S. Naval Academy graduate, career surface warfare officer, has commanded at all operational levels including combat from ship command to fleet command, and Admiral Gilday became the 32nd chief of naval operations on 22 August, 2019. 

Let’s welcome our panel.  (Applause.)

So within the conference theme, we’ve been talking about committing to capabilities and are we doing it rapidly enough, so I’d like to just kick off by talking about the fact that in recent months we’ve had the build-up of the Russian forces on the Ukraine, which is a peaking event this week, all while China has sortied repeatedly into the Air Defense Identification Zone at Taiwan.  We’ve seen North Korea and Iran misbehave and flex their muscles.  The diversity of the tactics being employed by these players is almost as diverse as the players themselves, so with that in mind I wanted to just have each of the chiefs lead off and tell us where is your focus, what are your thoughts about the current state of competition, and how is your service preparing for these challenges now and in the future? 

And I’ll start with Admiral Schultz.

ADM. SCHULTZ:  Well, thank you, Peter, and, you know, great question; we could probably chat all day on that.  I would tell you, from a Coast Guard standpoint, our focus has and continues to be on the readiness of the Coast Guard.  You know, we’re an organization that eclipsed $13 billion.  I think we pack a lot of punch in that.  Homeland game, which is really about, you know, enabling the commerce of our country, where 95 percent of our commodities come here and then, really, an increasing game across the globe here, supporting the combatant commanders, supporting the CNO’s numbered fleets.  We’ve been keenly focused, when you think about this competitive lens, looking through great-power competition, and I think about looking at that through the whole-of-government approach.  I think the Coast Guard has a unique brand.  I think we’re a unique instrument of national security because we’re an armed force, yet we’re an organization with law enforcement experience.

I think a lot of the world’s, you know, less-than-full deepwater navies start to look a lot more like coast guards, so I think we bring a brand, we bring the ability to think through some of the same challenges.  They’re thinking about their economic prosperity, their exclusive economic zones.  I think of this increasing global challenge called IEUF – illegal, unregulated, and unreported fishing – and, you know, these are three or four major nation states that are fishing, depleting the waters along coastal regions.  It’s an ecological and environmental issue; it destabilizes the economies of coastal states.

I think we’re uniquely positioned, Peter – and just, really, in closing up, I would tell you, I sort of think about – and I think it’s really sort of that Jim Mattis conversation where you go from zero to 180 degrees.  You know, he talks about cooperate where you can, compete where you must.  And the lethal wedge, the conflict wedge – you know, we’re written into the war plans.  That zero to 150, which sort of my loose interpretation – I’ll call that cooperate and compete.  I think the Coast Guard brings something really unique to that.  So we are positioning our force to be ready to support the numbered fleets and the COCOMs and then really focus on our domestic game.  We’ve been busy, but I think we’re moving the ball down field here and I’m proud of the men and women of the Coast Guard.

VICE ADM. DALY:  Thank you, sir.

Next I’ll tee it up to Admiral Gilday to talk about that question and specifically the future, and maybe you could also lean in a little bit because I know you’ve just recently completed your navigational plan.

ADMIRAL MICHAEL M. GILDAY:  So to kind of tie into what Karl just talked about, you would expect the Navy and the Marine Corps and the Coast Guard to be forward right now, so for the Navy we’ve got a hundred players on the field today and they’re spread from almost 30 ships in the EUCOM AOR to nearly that many out in the western Pacific, Fifth Fleet, down in Fourth Fleet, so fairly busy.  I think one big theme over the past couple years for the three of us is that we’re more integrated and not less, that we tend to find ourselves working together, integrating together.  It’s interesting, I just got an updated copy of our Seventh Fleet commander’s operational CONOPs, and it wasn’t just signed by him but it was also signed by the three MEF commanders, so just an example of that kind of integration. 

With respect to looking forward, we’re going through another force structure assessment right now.  But based on the hard work that we’ve done over the past five or six years in really thinking about how we would fight, how we would fight differently in terms of in a distributive fashion, across a wide, vast ocean like the Pacific, in terms of integrating all domains simultaneously, and thinking about what the future fleet looks like, we spent time taking a look at a couple of different force structure assessments in 2019 and 2020.  As I mentioned, we have another one under way.  The one that I’ve based my best advice on is the one that finished up in 2020 that we did along with the Marine Corps, but it was actually led by OSD, and I found that to be an important stakeholder in that process because this wasn’t just Marine Corps-speak or Navy-speak or the Department of the Navy-speak, but it was much more broadly supported by OSD.

And so based on that, based on large-scale exercises like we did last summer, leveraging live, virtual, construct, based on the integrated battle problem that we just did over in Fifth Fleet with some 100 unmanned platforms over the past few weeks, I’ve concluded, consistent with the analysis, that we need a naval force of over 500 ships.  And my view on carrier aviation remains unchanged; I think we need 12 carriers.  I think we need a strong amphibious force to include probably nine big-deck amphibs and another 19 or 20 to support them, perhaps 30 or so or more smaller amphibious ships to leverage maritime littoral regiments and the punch that they’re going to provide from places inside, close inside the fight, to 60 destroyers and probably 50 frigates, 70 attack submarines, and a dozen guided missile – or ballistic missile submarines, to about a hundred support ships and probably, looking into the future, 150 unmanned.

We’re doing a lot of work inside the FDYP now.  I mentioned some of the innovative stuff we’re doing out in Seventh Fleet, some of the stuff we’re doing with the Coast Guard in Fifth Fleet and Seventh Fleet to look at things differently, but I think that kind of naval force, that kind of distributed force is consistent with the analysis we see from the Joint Staff and OSD with the Joint Warfighting Concept.  I think it speaks to the vulnerabilities that we hear called out by the Joint Staff and the chairman in his risk assessment.

So in the long term, I’m sighted on a bigger, more capable Navy, working our way through that with respect to budgets, but certainly not taking our eye off the ball with respect to requirements and how we do things differently, because the future is now in terms of wringing more capability out of the force that we have.

VICE ADM. DALY:  Thank you. 

Next I’ll go to General Berger with that same question.  Sir.

GENERAL DAVID H. BERGER:  You rattled off four or five, I think, challenges that are ongoing right now.  I think listening to you, this is the strength of the U.S. military, first of all.  We work with so many nations and we work inside the U.S. military on a higher level than anybody else.  That is not a strength we should take for granted.  We can handle four or five challenges, in other words, because we have partnerships around the world through all three of our services that were built over decades.  That’s really powerful.  But we also operate as a naval force, as a joint force on a level no one else is anywhere close.  We should stop sometimes and think, in other words, how far we’ve come and why that’s so important. 

The second part, I think – not second part but the second thought is, as Admiral Winnefeld highlighted over lunch, it’s also good to remind ourselves the military isn’t always the first tool and the biggest tool to use.  In the four or five you mentioned, we’re not in the lead.  We’re the credible aspect of deterrence and response, but it doesn’t mean we’re in front all the time, but we have to be in a posture that, if things go sideways, we can react quickly, which is why – I mean, the Air Force can deploy great distances; they should.  We’re forward all the time, have to be. 

Third part I would say, listening to your question, is, out of those four or five, there’s no way you’re going to predict which one might boil over, or a sixth or a seventh.  So the ability of – (audio break).  I think it was important 10 years ago.  Now I think, what if we can’t get to a crisis in time and someone else does, one of our adversaries gets there before we do and it’s a natural disaster, humanitarian assistance, and we’re not there?  The ability to respond to a crisis quickly matters in terms of global prestige, so the Marine Corps and the Navy has to focus on having the ability to respond to the crisis maybe we didn’t see coming or couldn’t forecast.  We have to retain that. 

VICE ADM. DALY:  Thank you. 

So for readiness, you know, there’s – it’s ever been thus that there’s the tension between ready today versus buying the future force, and each of you has a message that this is a challenge that you need to take on, and my question is, is your message being heard and are each of you balancing those demands for modernizing and achieving the service of tomorrow?

Admiral Schultz.

ADM. SCHULTZ:  Yeah, Pete, I started my answer to the previous question with readiness.  I think for us, our capital programs have been on a pretty good trajectory for the good part of a decade and we’ve got to maintain momentum; we need predictable, stable funding.  That’s not always, you know, the case in Washington, but we’ve been more stable there than we have been on the operating and support side of the Coast Guard budget.  Recent years I think we sort of started to penetrate that.  We’re having a conversation inside our own department, Department of Homeland Security, which is obviously unique here amongst the armed forces up on stage, and then within the administration, past and current, that, you know, we really need to start funding the Coast Guard that the nation needs.  I don’t think the demand on our service, at least in my 39 years, has been higher both at home and abroad.  So I think we’re having the right conversations.  We’re seeing some ownership of the readiness needs of the service.

That said, you know, the piece that really hasn’t been attenuated is infrastructure.  We’ve got a lot of old infrastructure.  We’re seeing some issues with resilience of infrastructure and the changing ecological, you know, climate environment we’re in.  So we’ve got to keep our foot on the gas.  You know, if you said if there’s a trade-off between modernizing and readiness, I’d say in our service I’m not offering that maneuver space yet.  I’m saying we need to continue the momentum on our capitalization programs, recap programs, and we need to keep pressing in on the readiness piece.  That’s the human part of that.  We’ve talked a lot about ships and capabilities.  We really need to focus on the recruit, train, and retain of our – you know, our Coast Guardsmen, and then, really, we need to press in on some of the infrastructure.

We do pretty well getting money for places where we’re putting new ships.  We’re getting, you know, well – as we site platforms in Alaska, Charleston.  But we’ve got to get after some of that lagging infrastructure challenge.  And we’re leaving operational hours on the table.  So if I’ve got the equivalent of three major cutters that aren’t down-range operating because I don’t have sustainment money, that’s the readiness conversation.

So we’re going to keep our foot on the gas and we’re going to really try to position the service to be the Coast Guard the nation needs, both on the home front and in support of the combatant commanders across the globe.

VICE ADM. DALY:  Thank you.  You just said you didn’t necessarily accept the trade-off, like one – it’s either one or the other.

ADM. SCHULTZ:  Right.

VICE ADM. DALY:  You’re saying it’s one and the other.

ADM. SCHULTZ:  It’s the same conversation.  For me, it’s a ready Coast Guard and we’ve got to sort of ameliorate the three buckets there.

VICE ADM. DALY:  So for the Navy, at the force structure numbers that you just mentioned, CNO, it strikes me that this – you know, there’s been a lot of talk recently about divesting to invest, and I understand that’s been prohibited now, but it’s still, no matter what label you put on it, it’s been discussed of, do you give up to get?  And it strikes me that we couldn’t even hope to get to the force structure numbers that you’ve just talked about as a result of those DOD-level studies in 2021 and now this force structure assessment, the way it’s shaping up.  It seems like you’ve got to keep what you’ve got, at least a lot of what you’ve got, and build for the future.

ADM. GILDAY:  Yeah, I’ll talk about that for a second.  So if we just understand what divest to invest really meant with respect to the Navy, it really comes down to funding priorities, and so those have remained.  The Columbia Class SSBN, readiness, modernization, and then capacity in that order.  And so the way that divest to invest has been incorrectly categorized in one’s mind is that as you divest of older platforms or legacy platforms that no longer provide the lethality that you need, given the threat that we face, if you look at them on the left-hand side of the equal sign, and then on the right-hand side of the equal sign, what people have characterized as I see stuff going away but I don’t see the size of the fleet growing.  Based on the priorities that I just outlined, you won’t, not unless the top line goes up, because I won’t sacrifice the readiness of the fleet and the modernization of 70 percent of that fleet that’s going to exist in 10 years at the expense of building capacity.  In other words, I won’t have a Navy bigger than the one we can sustain.

If the Navy – I’ve talked about requirements in answer to the previous question.  If people agree that we need a larger, more capable Navy, then we obviously need more resources to actually grow it.  I would say it will be interesting – hopefully we get a budget for ’22 here soon and if we get that budget for ’22, take a look at – you can see some of that evidence in the NDAA that was passed by the Congress and signed by the president.  You saw the NDAA’s – reflected in the NDAA a commitment for more funding for the Navy and the Marine Corps.  Watch the ’22 budget and watch where that money drops, and then watch the ’23 budget that the president proposes to Congress, watch that budget proposal, and watch how the Navy and the Marine Corps fare.  I think that answers some of the question on whether or not the approach that we have on how to fight, as well as our view of the future and also our prioritization, whether that matches up to both what inside the building, how OSD sees it and the secretary of Defense, but as well as the Congress.

VICE ADM. DALY:  Thank you.  So for Commandant Berger, same question but maybe also it strikes me that you’ve done a lot to make some hard choices and also expect that you’re going to be able to put those resources to work in other, more modernized applications for the Marine Corps.  Please, I’d like to get your view on this about the tension between ready versus future – ready now versus future modernization.

GEN. BERGER:  I’ll try to get at both parts pretty quickly.  First, to answer your first question on readiness:  No, I don’t think we’re where we need to be in terms of the right discussion on readiness.  Ready for what, when is not a bad place to start that discussion, but right now, too elementary.  It’s counting things.  How many of these do you have available this afternoon?  In other words, like availability equals readiness.  It’s not – that’s not enough of an answer.  We owe the secretary, the chairman a much deeper discussion of, ready for what?  Do you have the capabilities to achieve an overmatch over the adversary you think you’re going to face?  That’s a different question than, how many do you have ready this afternoon?  That’s not enough – that’s not enough fidelity for him to make great decisions.  So we have to change the discussion. 

There is a readiness relationship, as you highlight, to the future as well, because we cannot fall behind, but the Marine Corps is a different organization than the Navy.  So when the CNO and I talk about readiness and modernization, we’re coming at it from different vantage points, both of which complement each other.  We have divested of things that we believe will have a lesser impact in the future, taking some risk in order to move quicker.  That’s not a gamble.  I think the existential threat is not moving fast enough.

VICE ADM. DALY:  I agree.

OK, I’d like to just shift quickly just to people for a second because over the last year corporate America has experienced what some people call the great resignation, where everybody – there seems to be more people leaving and it’s like the NHL Expansion Draft, there’s a lot of players moving around.  And as millions of people have left their jobs and found new ones, I’d like to just ask you:  How are your services faring in the competition for talent?  And what have you done to work on retention?  Admiral Schultz.

ADM. SCHULTZ:  So, Pete, I think we find ourselves in a competitive environment.  You know, we go out and try to find our – what we call our ETAP (ph).  Our target for ’22 is 4,200 young men and women to enlist in our ranks.  About 600 of those are reservists; 3,600 active duty.  We have not hit that mark in recent years.

I’ll tell you, the caliber of the men and women that are finding their way to the Coast Guard are top notch.  The sufficiency in numbers, when I look in – across America, and about 25 percent of Americans are eligible to serve when you take all the factors that make them ineligible out of equation, and you look at the propensity to serve – who grew up in a house or they know somebody in the military, had an uncle – that’s down around 11, 12 percent.  So it’s a competitive environment.  You know, for us, we don’t have the deepest pockets so I don’t throw a lot of bonuses young men and women’s ways, but we’re getting great young men and women when we’re getting them.

So we’ve got to – we’re putting some mobility in our recruiters’ hands.  We probably got to get to some different communities.  Our goal is to – in that enlisted workforce, we’re striving to bring 35 percent women in.  We’re striving to bring 35 percent underrepresented Americans in.  So it’s not just finding humans.  We’re trying to broaden, you know, the Coast Guard to look more like the nation we serve.

We got some real bright spots.  Our Coast Guard Academy is 40 percent women and marching towards 50 (percent) and doing great things.  We’ve closed – we’ve done some studies in the last three years.  We did a holistic women’s retention study.  We’ve closed – (audio break) – graduation or commissioning, and we’ve closed those gaps sufficiently.  So I think we’re on a good track.

We have really, Peter – just to wrap up, really dialed in our retention, too.  We have the highest retention in the armed services.  We’re trying to even get that higher.  But it’s a – it’s a tricky environment.  I think all the uniformed services don’t quite know the impacts of this blended retirement system that hit the four-year anniversary here on 1 January.  So I think, you know, what our – what’s our ability to take care of our sailors’ medical needs?  What’s our ability to take care of our soldiers’, sailors’, airmen’s, Coast Guardsmen’s, you know, working spouses?  We’ve aligned tour lengths with dual-membered Coast Guard folks and we’ve guaranteed people co-location at the 04 and below level and E6 and below level, and I think those things are starting to mine some positive results for us.

VICE ADM. DALY:  Thank you.

CNO, will you take that one?

ADM. GILDAY:  So 2020 was an opportunity for us.  We were going to pivot away from or more towards online/virtual recruiting, and then COVID caused us to put our foot on the accelerator.  So we changed all of our recruiting districts.  We actually changed our focus from – you know, from face to face to virtual because we needed to.

We found that worked out really effectively.  In the past year, we brought on some 39,000 sailors.  We met all of our – all of our goals.  We’ve shifted our marketing from TV to online.  We have showed the American public or tried to show – the demographic that we’re trying to recruit from, we’ve tried to show them what sailors are doing day to day, real life.  And so that’s been fairly effective for us and that outreach is really important.

I was on the USS Anchorage yesterday and I met with Marines and sailors, and one of the things I always ask is, you know, what led you to the Navy.  And it’s not unusual to get an answer where somebody says, well, you know, the Navy recruiter called me back first or the Marine Corps recruiter called me back first.  So they live in that digital/virtual world right now, and that touch, that connection, the way we do it, how we do it is really, really important.

We’ve also leveraged e-teams, gaming, that community as well.  When people express an interest, we follow up and connect them with somebody that can educate them more on the service.

In terms of – in terms of retention, Task Force One Navy that we stood up after the George Floyd incident, one of the ways it really helped us was to take a look at more deeply within each community how we attract and recruit talent – I talked a little bit about that – but also how we retain talent.  And that came down to talent management.  And we are still in the process of my getting briefs from every community lead on how they manage talent, and taking a look at not just diversity in terms of race and ethnicity, but also in terms of experience, thinking about that much more broadly, so that we can take care of people, put them in the driver’s seat in terms of – put them – put them more in the driver’s seat in terms of making a decision for them and their family in terms of what they’re going to do next and how they can contribute more fully to the Navy.

ADM. DALY:  Thank you.  I know, Commandant Berger, you’ve done a ton of work in this area.  And I’d like to ask you kind of just a little twist on this question.  How are you doing it, and how do you think you’re doing?

GEN. BERGER:  I won’t ask, but I think if you asked in this room how many Marines in here have served on recruiting duty, probably one out of four would raise their hand.  So first step, you got to put the very best people in your service on recruiting if it’s that important.  And it is to us.  We have phenomenal aircraft.  We have great ships.  We have – we have the best of the best.  None of that is as important as the people, for the three of us – nowhere even close.  The people are the most important part, all – hands down.  Everything else is on another level.  There’s Lieutenant Winfield (sp) sitting there having lunch with me.  He’s going out on recruiting duty.  It’s going to be hard.  He’s going to work his backside off.  It’s going to be really hard. 

That said, though, every – and I’ve been on recruiting duty.  It’s not a – we shouldn’t look at this resignation as a – as a big negative challenge.  Oh my God, we’re going to fail.  Heck no.  I look at it like if they’re leaving their jobs, perfect.  That’s an opportunity.  You want to travel?  You want a challenge?  You want to be a part of a unit that would push you?  You want to join something bigger than yourself?  I mean, you – this is an opportunity for us.  Fine, they’re unhappy with their jobs.  Perfect.  Our recruiters are going to be right there.  That lieutenant’s going to be, like, sorry your previous corporation didn’t work out.  What are you interested in doing – you know, he’s going to start to work on them.  It’s a good thing.

This is – I say that, though.  I would agree with my teammates.  It is a competitive talent market to pull from, no question.  Last part for the Marine Corps is the retention.  We have to rebalance recruiting and retention.  We have always been a very young force, where we recruit them and four years later push most of them out the back door.  We can’t do that going forward, for a lot of reasons but we’re not – we’re not giving up on the high school graduate.  None of us are.  But we have to reach a better balance in our force if we’re actually going to operate the way we think we’re going to operate.  We need some more maturity, some Marines who can make decisions without detailed guidance from above.  They’ve got to be able to operate independently.  And they will.

ADM. DALY:  What about the ability, General Berger, to bring people in?  Are we too wedded to that industrial model where, you know, you bring them in at the bottom and there’s just – you know, there’s only one way?  And I think you’ve done some good thinking on this, but this idea of how can we insert talent at different levels in the military scheme?

GEN. BERGER:  First of all, take no credit for great thinking.  This was – we’ve been doing this for 70 years.  It’s how we get doctors.  That’s how we get lawyers.  We bring them in at a certain – we’ve been doing this for a long time.  Congress gave us the authority two years ago to expand that into technical areas that we’re critically short of.  In other words, they boxed it in.  These aren’t going to be ships’ captains and platoon commanders.  They’re going to be in the specialties that we’re short of and we’re building.  They gave us the latitude to bring them all the way through O-6.  Give them credit, in other words, for their education and give them credit for their work experience.  I don’t know many we’ll bring in.  I don’t know.  But it’s either that or you’re going to have a gap at that talent level in that unit for six, seven years, until you can raise that one up.

ADM. DALY:  I’d like to throw that open to Admiral Schultz and Admiral Gilday.  Same question, about you got the authority but making it happen, where do you assess you’re at?

ADM. SCHULTZ:  Pete, I’m going to sign out a document in the coming weeks here, Ready Workforce 2030.  And it’s really about more permeability.  It’s really about ready, modern learning and how we’re going to have to train folks differently.  You know, there’s still schoolhouse training.  There’s a lot of benefit.  Leadership training needs to be sort of in the mosh pit of leadership and life.  But there’s other things where we put everybody through the same model we did 100 years ago.  You know, there are some folks that already have those skills.  Can we shorten their course? 

I think for us, it’s more back and forth between Reserve and active duty.  I got a young cyber professional, we invest a lot of money in them, you know, they might see opportunities outside the fence line for more money.  They want to go out to the West Coast, Silicon Valley, maybe I let them go.  Maybe I figure out a way where they don’t have to come back one weekend a month and drill in the Reserves.  They come back one time a year, go work at the fort or go work at the Coast Guard Cyber Bridge.  And then we just got to take a different approach here.

And I think we’re leaning in hard.  Ready Workforce ’30 for us is going to capture some of that different agility, different flexibility.  But I think you’re absolutely right, we’ve got – we’re working on some of those same authorities, where you bring people in at different levels.  We do it today, but in specialty areas.  I think we’re going to have to do that writ large across more aspects of the force.

ADM. DALY:  One of the – one of the things about the military, in my view – and this is just my view – is that there was an equality – it was truly a meritocracy.  And, you know, you got a lineal number and, you know, you could shade it one way or the other, maybe get advanced on a list, maybe get really select here or there.  But there was an equality to it and a meritocracy aspect.  Do you think that doing what you’re talking about – and then I’ll flip it over to Admiral Gilday, does some of this threaten the people who are saying, well, I stayed with the whole program the whole way?

ADM. SCHULTZ:  You know, three and a half years, I think a term I’ve heard a lot, particularly from our assignment men and women, is fair.  It’s not fair.  I say, you know, fair’s a very difficult world when you want to get different outcomes.  I think you don’t want to be unfair, but you need to think and act differently.  And let me – I’ll punt that to the CNO.

ADM. GILDAY:  I don’t think you sacrifice meritocracy at all.  I’ll give you three or four examples of areas where I think there’s opportunity we can take advantage of now:  cyber engineers, cyber warrant officers.  New rating with respect to robotics and unmanned is an area where we can bring in people who are more experienced.  More of what we do now, particularly with those high-tech areas, is in a DevSecOps type of – type of environment.  And that so you can leverage people who have done this same kind of thing out in industry, and with great success.

I don’t think that young people look at it through that same – through that same kind of, you know, hierarchical lens.  I think that they’re more open minded, more mature, and accepting of doing things differently.  I think – I think – you know, to your point about meritocracy, it matters.  I mean, that’s a really important thing out in the fleet, right?  For every leader it’s your technical – it’s your technical competency, your skill at what you do.  It’s also your character.  Those are two critical parts of leadership.  If you don’t have that, you’re not much of a – you know, it’s not much of a –

GEN. BERGER:  It’ll make us better too.  I agree with the CNO.  There’s people in this room who have been working in a field for six, seven, eight, years, right?  And if they came into any of our services, they’re going to bring with them a different way of looking at a problem.  That’s healthy.  That’s good.  Because they’re going to – they’re going to look at some challenge we’re working on, they’re going, why are you doing it that way?  Well, because that’s the way we’ve always done it.  And they’re going to go, not where I come from.  We would never do it that way.  I think – I agree, it’s not a challenge to meritocracy.  In fact, they’re going to bring a different perspective that’s really healthy.  It’s good.

ADM. DALY:  Thank you.  For the audience, please get ready.  This’ll be the last question I’ll key up up here.  I’ll ask the chiefs what they would like to see from industry.  Because of the nature of the audience we have here today that seems like a good question.  But in the meantime just be ready, because after this we’ll start to open it up.

So I’ll flip – I think I’ll flip first, and this time to General Berger, and say:  Are there things that you would like to message to a predominantly industry audience about how you would like them to support you, and things that you’d like to see for the Marines in general?

GEN. BERGER:  Yes.  But they probably aren’t in the areas that most people would think of right off the bat.  We were talking yesterday morning when we were flying here – for example, the amphibious ships that we deploy on, right, they have a flight deck and they have a well deck.  I’m just using this as an example.  We build LHA pads all over the place so that the pilots can practice takeoff and landing before they go on a ship.  But we don’t have anything like that for a well deck.  We don’t have a well deck simulator.  Why not? 

Industry, in other words, I think can help us get the reps and sets that our Marines and sailors need to make the time when they do embark much more productive.  So we need help with the simulators, the things that will get Marines touch time.  Then we move onto the decision-making part.  But you don’t want to waste a unit’s time.  So before you ever do the first field exercise, like other people have said, you want, like, 70, 80, 90 practice sessions just force on force mentally.  But we need help from industry on how to develop leaders that can make decisions with agility, speed, before they take their unit into the field.

Last part, though, I think we have to change – being self-critical – we have to change the way that we view this.  I heard something this morning on a talk that probably most of us have thought about before, but this person captured it so concisely.  They said:  We shouldn’t confuse failing with being a failure.  Holy cow.  I just pause, you know, play it back again.  Should not confusing failure with being – should not confusing failing with being a failure.  We need industry’s help, in other words, of trying things, the way that both of them have spoken.  And some of them are going to be dead ends.  Those are not personal failures.  That means we found out something, shift over here, and go.

ADM. DALY:  So, for CNO, would you take that one?

ADM. GILDAY:  So many interdependencies there it’s difficult to just answer that one way, you know, looking at industry.  I think of, as an example, these big, capital assets that we build called ships.  And so earlier I talked – to answer the first question – I talked about a pretty broad requirement, right?  And you know, over 500 ships, that’s quite a lift.  What do we owe industry with respect to that requirement?  I think as an example our shipbuilding plan is a roadmap.  And that roadmap has to be fairly clear for both the Congress and industry. 

And I think that what we owe industry in that roadmap, as an example, are those clear transition points on when we’re going to shift, you know, to higher numbers of smaller ships like frigates, smaller numbers of bigger ships like destroyers, when we intend to double down on unmanned so that they can begin to take a look at their workforce, their own infrastructure, so that they can plan five years and 10 years out.  Right now that planning horizon for them is probably a year or two.  Particularly, you know, right now we’re in what could potentially be – hopefully not – a year-long CR.  But the ’22 budget is only a one-year look ahead.

So that’s an example where we really need to help them.  But there are other examples, and I’ll give you a couple, where industry by leveraging the Congress, forces us to buy things that we don’t necessarily need in a – or, that’s excess to need, perhaps – in a decade where we’re trying to move with a sense of urgency away from stuff that isn’t going to make us more lethal, that isn’t going to help us deter a fight with China.  And so in those instances, I would ask industry to hear our pleas to move away from those legacy platforms onto something else.  Think about what other production lines you could shift to.  Perhaps some of those are production lines that affect not just the Navy, but perhaps it’s an Air Force program, or perhaps it’s an Army program. 

That’s where we could really use help.  This is a tough decade for us in a very difficult and challenging budget environment where for most of us our buying power has been static since 2010.  And so when we’re trying to shift from legacy stuff, we’re serious about that shift.  And we feel like it’s – we feel like we’re doing it because it’s a warfighting imperative, and not because we’re picking on a particular program.

ADM. SCHULTZ:  Yeah, Pete, obviously I – this morning I visited what we call our Blue Technology Center of Expertise over at UC San Diego at Scripps Institute.  And, you know, that’s a place where we established a small footprint, just a couple folks there, but they are working in the blue tech sector, and they’re talking about the ideas, and where do we roll those?  Up the coast a big we’ve got a couple – a small Coast Guard at DIU, Defense Innovation University.  And I think we’re starting to really work with industry and say, what are those solutions?  You know, MDA, maritime domain awareness.  Here in Southern California, Captain Tim Barelli is in the audience.  You know, he’s got different threat vectors that come in here, and there’s gaps in what we see, what we understand.

You know, pivoting to, you know, the large capital assets that the CNO was just talking about, you know, we’re in the most prolific shipbuilding period since the Second World War.  So we’ve taken nine of 11 national security cutters, we’ll christen the 10th here around 1 June – or, 4 June.  We’re building offshore patrol cutters.  That’s a fleet of 25 ships at the end of the day.  We’re marching out about 48 ships into a 64-ship fleet of fast response cutters.  I think for industry, you know, in an organization like the Coast Guard, that’s smaller and does a lot of our ship sustainment on our own force, it’s thinking it through the sustainment piece.  So the great capital assets, fantastic.  But, you know, what’s the sustainability look like and can we sustain those ships?

We tend to be a commercial off-the-shelf-type organization.  Not a lot of bleeding edge technologies.  We’re looking for proven technologies and the sustainment piece on that.  But I think for industry it’s keep the lines of dialogue open.  We’re going to be awarding phase two of the offshore patrol cutter contract here in the coming months.  We’re going to award a contract on what we call the Waterways Commerce Cutter.  That’s a fleet of 30 vessels, three different derivatives, to work the coastal and inland waterways of the nation.  So we’re excited where we’re at.  I think our dialogue with industry has been good.  I think the transparency, keep that coming.  That’s been very productive for us.

GEN. BERGER:  Can I just add one – I know we’re going to go to questions.  But one of the things I’ve learned in the past three years especially is I think I looked at industry as manufacturing.  I’ve learned, there’s a lot of organizations here who think and have – they have organizations in their organizations that are thinking.  We should tap into that more.  In other words, between us and them we can probably get to a better concept before we build the thing.  But I think I wasn’t aware of it, and then I probably undervalued it.  Now I’m more – that’s the first place, now, I go.  It’s, like, what are you guys thinking?  Not what are you building; what are you thinking?  Because they have tremendous minds.  We need to tap into that.

ADM. GILDAY:  If I could just add real quick just a couple of points.  One is that, you know, obviously most of the best R&D is going on in industry.  And so where in the past you asked us what our requirements are, you’re generating requirements that we can’t even think of yet I think, to the commandant’s point.  And so we really need those insights.  I think that, you know, if you look for silver linings with respect to COVID, I think it is – I think that the relationships between industry and the services are a lot less opaque because of COVID.  Supply chain dependencies are an example, where we’ve really had to gain insights from you, and you from us, on where those critical vulnerabilities lie.

The last thing I’d say is that I just use the area of unmanned as an example, where we are sprinting inside the FYDP to break down, to find – to break down, or to get better solutions against limiting factors, let’s say, that might be an engineering plant and an unmanned surface platform.  Or it might be integrating payloads on a – on an unmanned ariel vehicle.  But helping us inside the FYDP experiment, turn fast, DevSecOps kind of – kind of solution set, where we can then outside the FYDP, when we prove that something works as an informed customer, then double down in an informed way and scale it, right, in a way that we’re really going to be benefit not just the Navy, but maybe the Coast Guard benefits from it, maybe the Marine Corps, and vice versa.

ADM. DALY:  OK.  Let’s open it up to the first question.

Q:  Hey, thank you all very much for your comments this afternoon.  Very much appreciated by myself and I’m sure all of us.  Dixon Smith.  Prior Navy guy.

We talked a little bit earlier about the workforce on the uniformed side.  And I think in general we’ve got career development, management, mentoring down reasonably well.  I’d like to ask a question on the civilian side.  I reflect back to my time.  I probably didn’t know – I know I didn’t know the things I needed to know about the civilian workforce.  And so my question to the panel is, where are – where do you think we are right now with career development – the same three things – career development, management, and mentorship on the civilian workforce for where we need to go for the skillsets and the talents they bring?  Because it is one team, one fight.  Thank you.

ADM. DALY:  Thank you.  Maybe throw that to – who wants to take that one on first?

ADM. GILDAY:  So I’d say – I’d say that we can do a lot better.  Some of the things that we talked about with respect to retaining talent on the uniformed side, that we’re really putting a shoulder into, obviously many of those types of ideas are easily translatable on the civilian side.  And I personally think I can do better job at paying closer attention to that, getting feedback, and improving things.  It’s an area where we have leadership development plans for the – for civilian sailors.  I’m not sure we’re putting money behind those programs.

ADM. SCHULTZ:  And I would add, Dixon, you know, for us we’re about 9,000-plus civilians.  One thing we can do is hire quicker.  You know, we normally average about a 10 percent lapse rate.  We’re about 15 percent right now.  We should be bringing civilians on board in, you know, 120-130 says.  I think we’re north of 150-60 days.  So we get folks interested, we court them in the process, and then, you know, something else comes along.  And they really want to be on the team, but we can’t act quick enough.  And we’ve got to put more human resource people against that problem set.  And we’ve identified that.  We’ve got act here.

And we’ve got to put the resources where our rhetoric is so that you want to be on the team, let’s not let someone else come around because you just got tired of waiting to join our team a little bit.  So there’s some opportunities for us.  And then we got to look at – one of the things when we started my tenure, back in June of 2018, was we wanted to have a couple things.  For us, it was professional development for our civilian workforce.  We just took that for granted that they sort of solved that.  And I think it’s going to be a little bit more flexibility here in this post-pandemic era as well on what does work look like. 

We still want to have the civilians in the mosh pit.  They do tremendous mentoring, particularly for our mid-grade junior officers.  And when they’re in a headquarters environment most of those men and women never met a civilian employee.  But when they work alongside of one, there’s tremendous growth for – I think on both sides of the equation.  But I think our uniform folks really win that equation.  So we got some things to figure out here as we sort of emerge out of COVID-19 as well, hopefully in the coming months.

ADM. DALY:  General Berger, anything on that?

GEN. BERGER:  If you question is driven by is it going to be sort of on the same parallel as the uniformed side, is it going to be more challenging going forward, I’d say absolutely yes.  And we have – I agree with the commandant of the Coast Guard.  We haven’t taken our civilian workforce for granted, but we also didn’t have a career development with the resource behind it that would incentivize someone to stay.  And I think going forward, if the trends stay the same, people are going to be much more transient between jobs than they were 20 years ago. 

So if we’re going to keep the good ones working in the government, we can’t take them for granted any longer.  And it can’t be, well, get your own development/education on your own, and just let me know how it’s going.  No, we actually have to treat individual on a path, which, again, I don’t think we ever took them for granted, but it’s going to have to be a lot more deliberate and intentional if they’re going to retain the talent that we all know we have to.

ADM. DALY:  You know, just hearing Dixon Smith’s question reminds me – Dixon is a former chief of Naval Installations Command – Navy Installations Command.  Just a quick – a quick answer question.  When we did – when the country did the infrastructure bill, did the military get a chance to put projects into the – what’s Admiral Schultz’s – the mosh pit?  Did you get a chance to put in on that?

GEN. BERGER:  Yeah, absolutely.  We came out not a little bit shy of a half-million dollars of money for the Coast Guard there for some things that normally we would be trying to build into out-year budgets.  So there was conversations there –

ADM. DALY:  We got a bite?

GEN. BERGER:  We got a bite of that, absolutely.  There was some good advocacy on the Hill for that too.

ADM. GILDAY:  You bet we’d try to take advantage of that.  It didn’t – it didn’t quite pan out.  Where there was a lot of interest was in the SIOP program.  So for those of you who may not be aware, it’s reinvesting in our public shipyards that do all that important work on our nuclear-power ships.  And so we are renovating 97-year-old drydocks in all four of those facilities.  So that was an area that there was interest.  But I think there was a political dynamic there where those projects were better left in the defense budget at the end of the day.  But definitely interest from the Congress, yeah.

GEN. BERGER:  Same.

ADM. DALY:  Thank you. 

OK, next up.

Q:  Brent Sadler from the Heritage Foundation, again.  Thank you, gentlemen, for your time today.

The question is really for you, CNO.  I really appreciate you sharing the numbers for where you see the future fleet.  But I might have missed it, I’m kind of curious as to what your targeted timeline is for that?  And maybe if you could share some of the math that went behind that, where forward presence fits.

ADM. GILDAY:  Sure.  Yeah.  So with respect to that work, it was 2040.  And 2040, with respect to the requirement, informed by Joint War Fighting Concept, the Joint Military Net Assessment that the J-8 does on the Joint Staff, with respect to taking a look at 13 of 15 key areas against potential aggressors.  So that type of work informed it.  Now, as I mentioned, the Shipbuilding Plan is really the roadmap with respect to resourcing.  But I think the way that we’re – the way that we intend to fight has matured pretty well. 

As we – every single strike group and ARG that gets underway to deploy or is returning is doing a fleet battle problem to test part of that.  We’ve transitioned to a fleet-centric Navy, right?  Instead of just carrier strike groups and ARGs, we’re going to fight as a fleet, lockstep with the Marine Corps.  And so that’s what’s informed that view.  We feel that we have a pretty good understanding of how we’re going to fight.  We think it’s very consistent with the Joint Warfighting Concept and the new strategy that the secretary of defense is going to roll out fairly shortly.

ADM. DALY:  OK.  Next up.

Q:  Thank you.  Lieutenant Commander Ian Starr, U.S. Coast Guard.

The nation’s shipyard and ship repair capabilities may not be strong enough to return ships quickly to the fight if war breaks out in the Indo-Pacific.  As a Coast Guard officer who recently served up in the Bering, I can attest to that difficulty of getting logistical support and parts, on a good day, up there.  My question is:  Are our nation’s facilities robust enough to handle the next fight?  And if not, what needs to change?  Thank you.

ADM. GILDAY:  Well, so I think the answer to that is likely not.  I don’t know if – we can’t expect excess capacity to just exist out there that’s going to be sitting there idle.  There are some bright spots.  So I just mentioned the reinvestment in the public shipyards.  In terms of the private shipyards, I give an example of a path that we’re on.  In 2019, in terms of delay days coming out of private shipyards, we were at over 7,000, about 7,700.  Right now, in terms of delay days out of private yards we’re at about 2,500, OK?  Our goal is to drive that down to zero.  So there is capacity there that we need to – that we need to take advantage of.  There are processes that need to be fixed.

That reduction in – that reduction in delay days, one would think that we just lathered the process with more money in terms of driving those numbers down.  That’s not the case.  You know, based on a substantial amount of data we understood that nearly 30 percent of that delay was due to bad forecasting and planning upfront.  And anybody that’s served on a ship, that won’t stun you.  So there’s – I think that we’re headed in the right direction.  And I don’t mean to paint too rosy a picture.  We have work to do.  I think that – again, that opaqueness that has probably existed between the United States Navy and private yards is getting a lot better.  But we have a long way to go, and none of us are satisfied with where we currently stand.

ADM. SCHULTZ:  And if I could just jump onto that, so for the smaller service competing, you know, we’ve been under a continuing resolution about 43 percent of the last eight, nine years.  And we just got some recent, couple year ago, multiyear authority, two-year authority for ship repair work.  But that’s a small percentage of our budget.  So we have essentially stopped, you know, contracting for ship repair work 1 September through December.  We’re almost into part of the second quarter.  This is one of those consequences of a continuing resolution every year.  That is painful for the Coast Guard.

And then we’re competing in some of those contract shipyard availabilities with the Navy, who’s coming in with bigger ships, deeper pockets, bigger contracts.  So they’re sort of holding out for us.  We’re finding it very competitive.  I would tell you, I’m concerned about the capacity.  Where we go in we’re getting good work, but it’s a smaller part of the calendar year, or we’re contracting that work.  And if there’s bigger, you know, contracts that are coming from the Navy, you know, you might hold off a little bit.  And then we also compete with the commercial sector.  And everybody wants the Coast Guard work.  They go to their members of Congress.  And then when we sort of push the work that way there’s some commercial stuff that’s actually more lucrative.  So I would tell you, I’m concerned about it.  We’re meeting our needs, but it’s barely.  And it’s a lot of juggling of schedules and stuff.

ADM. DALY:  Just to insert here is that we had a gentleman get up, I believe it was yesterday, and say that he is the last supplier for about 300 NSNs, Navy stock numbers, that would cripple about five to seven different platforms.  So related to Ian’s question is the question of it’s not just the strength and capacity but the industrial base.  And just a quick – I’d throw it over to you to tell us, is there something – is there a piece of that puzzle that bears on this?

ADM. GILDAY:  In terms of – could you clarify that a little?

ADM. DALY:  Well, just a – you know, you have the repair capacity, but do we have the industrial base that feeds it.

ADM. GILDAY:  Parts, yeah.  Yeah, yeah.  I would say that there are likely – there are likely issues that were brought up yesterday.  I also think that we need to be more self-sufficient, right?  So can we leverage additive manufacturing, right, in a way that could be a game-changer out there at sea?  And let’s say a vessel I spent some time yesterday on, an ESB – for anybody that hasn’t gone on one, they’re almost the size of an aircraft carrier.  They’re just huge, with all kinds of space.  And your mind’s eye can just kind of run with the possibilities of a ship like that.  And so I think we shouldn’t self-limit in terms of trying to fix our own problems with respect to some of that stuff.  I don’t think we’ll ever fix all of them, right, particularly with ships that we’re trying to get 30 years out of.

ADM. DALY:  Thanks.  Commandant Berger, do you have anything on the industrial base issue on the Marines side?

GEN. BERGER:  There is clearly much more attention being played on the whole supply chain – (audio break) – points, the single points of failure, the fragility, where those.  Knowing where they are now we can diversify, it won’t turn around in a year.  But the point you highlighted, and the capacity of the shipyards goes beyond into the parts, we are learning where those single points of failure are.  That’s not healthy. 

ADM. SCHULTZ:  You know, as an anecdote, Pete, on our 45-year-old heavy icebreaker we have to figure out sometimes how we find the part on eBay and get that into a vendor we can legally buy that part from.  So, you know, we live on some of that on our oldest platforms, some very creative contracting work to buy the parts we need here.

ADM. DALY:  That’s a tenuous chain.

ADM. SCHULTZ:  I probably just got myself in the acquisitions jail here a little bit here when I leave today.  (Laughter.)

GEN. BERGER:  Can we go back to the room?

ADM. DALY:  OK.  Next question.  Thank you, Ian.

Q:  Good afternoon, gentlemen.  My name is Lieutenant Junior Grade Ben Barsom (ph). 

My question is for all three of you, but particularly for Admiral Gilday, because I’m sort of most plugged into the surface warfare community.  The honorable Robert Work recently published an article in Proceedings entitled, “A Slavish Devotion to Forward Presence Has Nearly Broken the Navy.”  In this spirit of the preservation of the force, aspects that that article raises – I’m thinking about low morale, high op tempo, and burnout, even down to mental health and suicide – how does the conversation we’ve been having all week about the crisis at hand and the ramp up that’s going to be required to address it fit into the effect it’s going to have on our force?

ADM. GILDAY:  So I’ll just speak to the behavior I’ve seen from this administration, the secretary of defense, since they came on board in early ’21.  There is definitely a sensitivity to the readiness piece.  Our opinions are asked directly when we have to move forces around the globe, and if we have to extend the force what the potential effect is on readiness, what the potential effect is on a ship that’s been in deployment for, let’s say, eight months.  Our opinions are being sought.  What we have tried to do is to leverage – is to leverage the new paradigm that was really put into place in 2018 when Secretary Mattis signed the ’18 NDS.  And that was to flip the model from a demand-based model to a supply-based model.

Earlier I talked about the fact that the Navy has about 100 players in the field today.  That’s the readiness that we are directed to produce by the secretary of defense.  And then how those 100 players are used, that’s – the secretary of defense makes those decisions based on risk to mission, right, in terms of what’s going on around the world.  And he is advised by the chairman and the Joint Chiefs.  And so I think that process could be a little bit better, but I do think that it’s being – that it’s being used right now in a very responsible way.  We have tried to maintain the seven-month deployments.  It’s been a little bit easier for us after we’ve had these vaccines that have come out for COVID that allowed us to – that allowed us to cut back a little bit on the COMPTUEX-and-go model that we’ve been relying on in 2020.

With respect to the slavish devotion to forward presence, forward is where we need to be.  Forward is where we make a difference.  It’s doing it in a way that, you know, is meaningful.  So it’s presence with a purpose.  We’re not just putting ships out there, right?  I do think that that top-down approach does maintain readiness in a much more responsible way than we have in the past.

ADM. DALY:  CNO, before I go to the others, I just wanted to jump in.  There’s one issue, which is you put people forward and are they ready?  And you seem pretty satisfied that you’re – that 100 players you’re putting on the field are ready.

ADM. GILDAY:  Mmm hmm, yeah.

ADM. DALY:  But, you know, if you go back, like, 10 years, you know, we used to have three carriers forward and then you could do three more in 30, and maybe two more in 90 on the surge.  And we called it six plus two.  That was a shorthand for it.  And there are times more recently where you’re putting the same premium force out there for that 100 men on the field, or 100 people on the field.  But the group behind them is less ready.  Do you feel you’re making progress there?

ADM. GILDAY:  We absolutely have invested more in the surge capacity.  And so what you’re seeing now is the ability to relieve on station, particularly in hot spots, without having to extend ships on station, OK?  And so during the – during the ramp up with Iran in 2020, it became particularly acute when we only had – and China at the same time was a problem.  So we had two carriers out there both locked in position and difficult to get them relieved on time because we just didn’t have that throughput. 

That’s not to say that that surge capacity should really only be used in crisis. It should be used in a situation like today, as an example, where the secretary of defense may need additional forces to flow in order to make a point with Putin with respect to deterrence.  So I think that using the capacity that he’s directed on a day-to-day basis, steady state, it’s important to manage that force.  And I think it’s also important to have a surge force so that we don’t overextend those that are forward.

ADM. DALY:  And thanks.  For Commandant Berger, you’ve – the Marines and your predecessors set up this Special Purpose MAGTF.  You’re looking at the literal regiments.  You’re actually, in my view – maybe I’m reading this wrong – structurally being more forward over time with those elements.  Can you talk about this?  You know, are we going to exhaust ourselves?

GEN. BERGER:  No, structurally being forward but also not Special Purpose MAGTF ashore – stuck ashore, but as a maritime naval – as an expeditionary embarked element, because that’s the strength, right?  You can move it around.  So we have to go back to our roots here, give the nation the advantage that they need. 

There’s one other element.  That’s a great question.  I think sometimes lost though in that discussion is the human – the people part.  It’s easy to say families are stressed, suicides are up.  And all of those are valid concerns.  They have to be.  But nobody joins the Marine Corps to stay home.  So we have to balance – Marines and sailors, they want to deploy.  They want to go do.  So there is an aspect, absolutely, of watching the indicators and where we’re pressing the limits.  But we also – they came in – they came in for a reason.  They want to be forward.  We need them forward.  We just have to balance it against the other indicators you highlighted.

ADM. DALY:  And, for Commandant Schultz, it seems like it’s becoming more of a thing to take, like, an NSC and push it all the way up in the western Pacific, maybe to deal with certain aspects of the China challenge.  And of course, you’ve had those WPBs that are now being replaced, you know, in the Gulf.  How do you see this?  Are we asking the Coast Guard to be too forward?  Or is this the right thing to do?

ADM. SCHULTZ:  Yeah, I’ll tell you what, Peter.  I would tell you, I think asking and pressing the Coast Guard to be forward is absolutely appropriate and the right answer.  What we have to do is we’re going to grow 2,000 sailor billets in the coming years.  You know, in an organization of 42,000, that’s not insignificant.  There’s a lot of different things you can do in the Coast Guard, but 2,000 additional sailors.  Where we’re not winning is, you know, we program our major assets for about 185 days.  So you’re gone half of every year.  You know, when you roll that up, I think that’s probably a pace even beyond, like, what your sailors do.  It’s a lot. 

What we’re losing is in port, you know?  So they’re not finding balance in port.  It’s the extra days, those days when you come back from patrol where you should have some downtime, the chance to go off to school, we’re eating into that.  So we’ve got to – our three-stars are heading up to the what we call the sea duty readiness council.  We’re really looking at what does it take some bring some balance to that?  We’re putting some more mission assurance, more maintainers, wrench turners, some more folks there.  I think when you look across the non-surface community, you know, our reserve force was deployed about 50 percent last year. 

I think that’s a pretty unsustainable rate to have 50 percent of your reserves on watch every day.  Whether that’s disaster response – you know, look, 2020 was the – you didn’t have the big, giant storms like you had in Harvey and Maria previous years, ’17 and stuff.  But we had 20-plus, you know, hurricanes in the Atlantic Basin.  It was a record.  And we got many Reservists deployed there.  We got folks out in COVID vaccine sites.  We’re doing allies welcome with, you know, Afghanis being welcomed to our country and Reserves in that place.  And there’s a high demand there.

So I think writ large we’ve got to focus on, you know, the Coast Guardsman standing the watch, his or her family.  We brought on 13 – and that’s a small number – but 13 new, you know, psychiatrists and, you know, medical, mental health professionals, nurse care managers, behavioral techs.  We’re bringing much more mental health capacity into Coast Guard.  I say much more, not big numbers numerically but from an impact standpoint for us.  We got to do more of that.  We’ve got to support the force we have.  We got to recognize the demands on them.

You know, I think every one of us at PCS, the Coast Guardsmen and Marine and Navy person last year, how many communities do you go into where your housing allowance matches the crazy nature of the housing market right now?  And that’s a stressor on people’s minds.  So we’re working with, you know, our relief organizations, Coast Guard mutual assistance and foundations to sort of bridge some gaps.  But then we got to put a voice into the folks that look at the model rates and things like that to make sure our sailors and their families are navigating, you know, the society we live in and operate in as well, Peter.

ADM. DALY:  Makes sense.

ADM. GILDAY:  If I could just make one follow-on comment.  I really do appreciate the question.  We have a new National Defense Strategy that’s going to drop here in the next month or so.  And to the comments that the commandant of the Marine Corps made a few minutes ago about readiness, I really think this is perhaps an opportunity for us to reexamine the model and see – the strategy is one thing.  The implementation of that strategy is a whole different – is a whole different problem set.  And so I think we’re responsible for taking a close look at how to implement that strategy, and doing it in a way that’s going to be effective.  And whether or not the models that we currently have in place and have had in place for a long time, whether or not they’re sufficient in mastering the strategy and fit for purpose.

ADM. DALY:  OK.  Next up.

Q:  All right.  Thank you.

ADM. DALY:  OK.

Q:  Gentlemen, good afternoon.  Captain Wazowski, Comms Squadron 48.

My question is I want to go back to a document that you’re all very familiar with, which is the Maritime Tri-Service Strategy that was written in December of 2020.  So my question is, since that document was written, what feedback have you all received with regards to its implementation?  And the second part of my question is, as a small unit leader, what advice do you have – because we have a lot of small unit leaders in the audience – on how we can implement your strategy at the tactical level?

ADM. DALY:  I’d like to start with CNO on that one.

ADM. GILDAY:  Sure.  I’ll make a couple of comments on that.  The level of interaction I see at – I mentioned earlier the Seventh Fleet commander and the Third Fleet commander working together, putting together an integrated concept of operations.  We’re seeing that across the operational force at a pretty high drumbeat.  With respect to the Coast Guard, we don’t have to tell a Navy fleet commander twice, hey, could you use a Coast Guard cutter out there to help you?  I think that that is a – that says a lot about the integration across our services.  I think at a headquarters level we probably have a little bit more work to do in terms of making sure that we’re resourcing the spirit of that strategy adequately, leveraging all the best parts and pieces of the Navy and the Marine Corps and the Coast Guard in order to achieve – to achieve objectives that are outlined in the new strategy.

ADM. SCHULTZ:  And I would tell you, I think that document, you know, was at the start.  I think it codified where we were and actually a little bit of aspirational how we think forward.  You know, we just – Mike’s team and my team met earlier in the week for the National Fleet Board.  And we are supposed to participate in that, and then there was a D.C. snow day, and I think we ended up sort of not being able to find it.  But our teams met.  And, you know, some of our higher-end capabilities in the ship are supported by the Navy.  And we’re having great discussions.  I think that document is very helpful.

When you say how do you as future leaders, I think it’s how do you take a world that’s increasingly maritime – we’re talking about free and open oceans, talking about the impact of, you know, the Indo-Pacific on the global scale in terms of trade.  The seas are going to always matter.  And I think how the Marines, how the Coast Guard, how the Navy complement each other, don’t have redundant capabilities but layer in the right capabilities at the right places – if the CNO’s short a missile shooter and it’s not a missile shooter, and we can put a National Security Cutter into a mix to do some things here, boy, that probably makes a lot of sense because, you know, till Michael gets to that fleet of the future in 2040 a little bit, you know, there’s going to be gaps.  And I think that’s the lens that we’re thinking through.  I think future leaders are thinking, you know, sort of creatively into that same – into the same line of thinking there.

ADM. DALY:  General Berger, are you satisfied that the strategy is being implemented and you’re satisfied with the results?

BEN. BERGER:  First of all, if you had the last question congratulations because, like, two people behind you were like, what?  (Laughter.)  If you look at what’s happened in the East China Sea and South China Sea for the past four or five years, we’re doing – we’re working together in some – driven somewhat by the way that the adversary’s operating, where they blur the lines between law enforcement and what we would call Title 10.  OK, they don’t like it when we work together.  It throws them off their game.  That’s a good thing. 

So it’s – in some cases we’re substituting for each other.  But in other cases, we’re actually overmatching them, because this is playing their game, only better.  Because we have decades of doing this.  They’ve been doing it for four or five years.  We have to do this, because if we stay in our own silos we’re not going to match up as well as we could.  So we need to combine our capabilities, our advantages, and then completely overmatch in playing their own game.

ADM. DALY:  So if the panel will put up with it, we’d like to just let this gentleman ask his question.  You’re up.

Q:  Good afternoon, one and all.  My name is Harkins.  I’m a retired Marine sergeant major. 

And I would like to ask each of you a question.  In order not to feel that I am going to ambush anybody, including the audience, I would like to ask the question, and then after I ask my third question if the commandant of the Marine Corps could go back to the Coast Guard for your response, so that there’s not a knee-jerk reaction, if you don’t mind, sir.

My first question goes to the commandant of the Coast Guard.  Yes, you have 42,000.  You have a great number – a number of new ships coming online.  You’re spread out around the world with 42,000.  You’re sending your Coasties out for six months, maybe a longer period of time.  How are you going to continue that momentum?  When the Marine Corps sent us to Vietnam for a year at a time, two and three and four times, we had a lot of problems.  How are you going to overcome those particular problems with only 42,000?  I understand you said that you have a manpower request for 2,000 more.  I may have misunderstood that.  But that’s my question for you.

For the CNO, I have spoken to many of the chiefs and command master chiefs here and police chiefs.  Don’t get upset.  In the Marine Corps, what we do at the rank of gunnery sergeant, which is equivalent to chief, is we start deciding and looking at the individual Marine to find out if he should be a master sergeant, and a master gunnery sergeant, which is an expert in a field.  And we also look at a leadership side, which is called a first sergeant and a sergeant major.  They have collateral duties and they come across quite well.  But sergeant major and the first sergeant are responsible for too the commanding officer, for the moral, discipline, and other aspects of that particular element, that particular command. 

You have command master chief.  As I understand it, there is a problem acquiring command master chiefs.  Many of your chiefs are reluctant to leave their communities, for whatever reason I have no idea.  Can you please tell us how you’re going to overcome that particular problem of command master chiefs, because I served on the USS Ranger, I had a wonderful opportunity to work with a command master chief.  And they, just like a sergeant major or a – just like a sergeant major, they have the responsibility of keeping the commanding officer informed of all different aspects of that particular command, just like a sergeant major does.  Or a first sergeant and a senior chief.

For the commandant of the Marine Corps, my question goes like this, sir:  The Marine Corps for many years, starting with Korea, has become a land army.  And I have always stated that the United States cannot support two land armies.  Vietnam, Korea – Korea, Vietnam, Afghanistan, Iraq, et cetera.  As I remember the mission of the Marine Corps, which has probably changed all these decades, is to secure advanced naval bases.  And I have no problem with that, except that the Navy does not wish to come any closer to shore than 10 to 12 to 15 knots. 

The Marine Corps has to go from that particular direction into the shore to secure that Navy base.  We have amtracs.  Well, the Japanese shot up amtracs on their way to the beaches.  And then when the LSGs got to the beach, they shot them up, just like the Germans did in Normandy.  So that was one aspect.  Now you have the Ospreys.  Great airplane, and I understand it goes up and down, it goes faster, it goes greater speed at greater distances, and so forth.  But if we look back at Afghanistan, when we gave the Afghanistan army while they were fighting the Russians all of those missiles, and the Afghans shot down more helicopters, then the Russians decided they had to do everything by landmass rather than bring in helicopters.  I’m afraid that the Ospreys might be in the same picture.

So going back to the Coast Guard, would you please expound upon –

ADM. SCHULTZ:  Yes, sir.  That was a while ago, my question.  But the question I remember –

ADM. DALY:  Tempo.

ADM. SCHULTZ:  I would tell you, sir, the tempo – your point is a great point.  And what we need to do is – so we’re looking across when we make resource allocations, that’s at the enterprise level.  It’s not just at the fleet level, Atlantic and Pacific.  We pull that up.  So we are not doing this on the back of our folks.  We can be places but in finite capacity.  There’s choices.  And then every solution doesn’t have to look like a Coast Guard cutter in a place.  We can send a disaggregated member of our Deployable Specialized Forces community.  It could be an MSST team.  We have some of our folks here in San Diego we call the Maritime Security Response Teams.  We send – we put some forward Coast Guard attachés in different locations.  And we send trainers.  We send mobile training teams.

So I think when we talk about an increasingly global Coast Guard, it’s not necessarily just Coast Guard cutters plying the world’s waters.  Those are choices.  We’re sending some finite capacity to support the CNO and the Seventh Fleet commander to the Indo-Pacific.  We have a persistent bases in the Arabian Gulf in the Fifth Fleet, 365 days a year, you know, on 14 – almost 17-18 years into that.  But we are very judicious that we schedule our ships 185 days are our major assets.  Sometimes it bleeds a little more than that, but we’re very mindful.  It comes down to, you know, maybe taking some risk domestically to send a ship for a unique opportunity to go up until Black Sea, which we did last April. 

But we are very cautious, sir, to not do this on the backs of our men and women because, honestly, I think every single one of us would tell you the human resource is the talent management, that is probably the toughest challenge is finding those young Americans, I talked about how competitive it was, bringing them in, giving them meaningful work, and then valuing them so they want to stay.  I think that’s where we win or lose.  So we are not looking to do this inside the Coast Guard lifelines on the backs of our people.  We just think we have some unique capabilities that complement the joint force and complement the whole-of-government effort, particularly in this competitive, you know, great power competition model we find ourselves increasingly, you know, kind of living amidst.  So thank you for the question.

ADM. GILDAY:  Sir, I appreciate your question.  If I could summarize, it was about what you perceive to be a waning interest in the command mastery program, is that true?  So I was not aware that that’s a problem, but I’d like to muster all the chiefs that spoke with you up here after this even, so that I can get some quick feedback directly from them.  I have the master chief petty officer of the Navy here.  He’s on the edge of his seat.  He’s very interested in well.  (Laughter.)  So I am honored.  I appreciate.  Thank you for the I&W.

ADM. DALY:  General Berger.

GEN. BERGER:  Sergeant Major, the nation doesn’t need, can’t afford, two land armies.  I agree with 100 percent.  That’s not what we have today.  And that’s – the strength of the Marine Corps is its ability to integrate – to be a combined arms team, to integrate with the Navy, and do things that no other element can do.  We have to capitalize on that.  We were in Iraq and Afghanistan because the nation needed us to be there.  And of course, we’re going to do what the nation needs us to do. 

Right now, the nation needs us to be a naval expeditionary force, a crisis response force.  And everything – if you had a chance to fly on the MV-22 it would change your complete outlook.  And every platform, every capability that we buy, is with – in mind with an overmatch over the threat.  We’re not going to drive it into the threat that you’re talking about and take attrition like that.  No way.  Our tactics are much better than that.

ADM. DALY:  Thank you, Sergeant Major.  

MS.:  Before I recognize this distinguished panel, Admiral Daly and I would like to thank a few groups here.  And to start with, to my right is this amazing staff at the San Diego Convention Center, who’s here before sunrises and well past sunset.  And they’ve done a tremendous in supporting us this week.  So thank you very much.  (Applause.)  We want to thank our industry and academia partners.  We would not be here today without your support and your sponsorships.  And it’s greatly appreciated with our partners here.  In fact, our floor space this year is larger than it was in March of 2020.  So thank you for coming back very much.  

And thank you to our government leaders for all the hard work and the challenges that face you every day.  The four to six that Admiral Daly pointed out at the beginning that you have to face every day.  And we want to especially thank our men and women who continue to serve in uniform to a very grateful nation.  So thank you for your service, and to our government.  (Applause.)  To our – to our tremendous leaders on stage today, you’re facing challenges that are difficult from many angles.  And we appreciate your leadership.  And we all feel safe as a nation because of you.  So on behalf of AFCEA International and the United States Naval Institute, we would like to present you with a token of our gratitude, “The Sailor’s Bookshelf,” by Admiral James Stavridis.  Thank you again for being with us today.

ADM. DALY:  Thank you to our panel.  (Applause.)

Defense News: CNO Gilday Media Availability During WEST 2022

Source: United States Navy

(CROSSTALK)

Q:  So new Nav Plan, ship numbers?  Are you determined to make news here today?

ADM. GILDAY:  So I thought that it wouldn’t be a bad idea to talk about those numbers in terms of what we’ve been planning to.  Those numbers are in the public domain.  And they are consistent with the last shipbuilding plan we put out.  But I think, importantly, the real message I wanted to get out of those numbers is they’re actually grounded on how we’re going to fight.  And so I really do believe we have a good sense of where we’re going with the concept and how we’re going to – how we’re going to get there.

Q:  Just a couple of clarifying questions.

ADM. GILDAY:  Yeah.

Q:  So this is – this is the idea of what the force would look like in 2040?  Is that –

ADM. GILDAY:  So that was the – that was the endpoint was 2040, right.  So –

Q:  All right.  And then – and that seems consistent with the high end of the estimates that were in the last shipbuilding release.

ADM. GILDAY:  Yeah.

Q:  And then when you say frigates, are you just talking about frigates or, you know, where is mine warfare and LCS in that mix too?

ADM. GILDAY:  Yeah.  So LCS was in that mix.  Mine warfare is going to be robotics.  It’s going to air based as well.  And so separate minesweeping units, with the exception of the – you know, the capability we have on LCSs.  But the robotics and the way we’re going with fish in the water, leveraging AI and ML with those assets has been pretty exciting.

Q:  Admiral, on robotics, so Mk18 – things like the Mk18 – family are out there today.

ADM. GILDAY:  Correct.  Exactly.  Exactly.

Q:  Are you envisioning something larger than that?  Like a dedicated MUSV or something that would be a mine ship?

ADM. GILDAY:  So with respect to MUSVs, where my head is on MUSVs is I think that we may be able to leverage small unmanned in higher numbers.  So as an example, the insights we’re gaining right now from exercises like IMX in the Middle East give me a lot more faith in those small, unmanned assets and how we can configure those on a number of vessels – including I spent time on an ESB yesterday, which really had my mind turning in terms of a mothership.  As we begin to get to a point where we – where we deploy unmanned surface, as an example, or unmanned under the sea, as an example, we’re still going to need something out there that’s going to be able to repair them, that’s going to be able to, let’s say, change out payloads.  And so these exercises that we’re doing give us a chance almost at, like, a DevSecOps kind of – kind of framework to try things out, to experiment.  And if things aren’t working, to shift to a better idea.

Q:  Admiral, can you talk about what steps the Navy is taking to fix the maintenance issues that were – that were highlighted in the recent GAO report?  Sailors saying they’re not trained enough, saying that they’re just putting Band-Aids on ships so they can get underway, saying that a lot of their equipment is obsolete.  How is the Navy going to respond to that?

ADM. GILDAY:  So I haven’t read the report that you speak to.  It’s a –

Q:  GAO report.

ADM. GILDAY:  It’s a GAO?  Right.  I just – I just have not read that.  I have not seen that GAO report.  I can tell you that we’re not ignoring maintenance, right?  So I talked earlier about the fact that we’ve come from 7,700 delay days down to just shy of 3,000.  And my goal is to get to zero.  A lot of that is predicated on putting money against a problem instead of deferring the maintenance and walking away from it.  So some of those problems with GAO reports are looking, you know, a year or two years back.  I’m giving you data here and now.  I’m putting money against the problem.  I will tell you that maintenance is funded to executable levels, as are, with respect to training, steaming days and flying hours. 

Q:  The issue seems to be training and also the requirements for op tempo are so high there’s no chance to do actual maintenance, just trying to, as they said, put Band-Aids on the problem.

ADM. GILDAY:  Well, I take exception to the comment about op tempo.  And so we’ve been pretty good over the past 18 months in terms of keeping an eye on op tempo, moving into an environment where 100 percent of crews have the vaccine, as an example.  We’ve been able to stick to those seven-month deployments, by and large.

Q:  So, piggybacking on that, CNO, there was reportedly last year – about the GAO again – regarding LCS and, you know, maintenance issues.  And they noted that the Navy doesn’t own all the technical data on that platform to be able to do – and you know, as a reporter, as an American citizen, it was kind of shocking.  I’ve heard kind of anecdotally that there’s some negotiations to change that.  Can you comment on –

ADM. GILDAY:  So if you take a look at what Admiral Kitchener’s LCS Task Force decided on, it’s exactly that.  It’s pivoting from a contractor-centric model to a sailor-centric model.  That’s where we’re moving towards.  It’s going to take us some time to get there, but when we originally planned the class with 40 sailors, it was definitely contractor centric.  We’ve learned through successive deployments down at Fourth Fleet, as an example, that we need to be much more self-sufficient.  So that model is going to end up – we’ll end up transitioning away from it.  I don’t have the details at the moment, off the top of my head, in terms of timeframe from that.  But that’s where we’re headed towards.

Q:  That’s fascinating, that you’re going to go sailor-centric on a platform that was supposed to be minimally manned.  Is that – is that possible?

ADM. GILDAY:  So we’ve increased the manning, right?  Seventy sailors.  So that manning has increased.  We’re also taking a look at what sustainment models do we need out there during deployment.  Do you use a mothership that provides a mobile maintenance capability?  Forage repairs, those types of things?  And so we’re getting better at that.  At Fourth Fleet we’ve been able to maintain a pretty good op tempo down there with respect to the ships that we have deployed.  And we’re increasing those deployments.  You see LCS out – deployed in numbers out in Seventh Fleet, soon to follow in Fifth Fleet, soon to follow in the Sixth Fleet.

Q:  Is that technical specs ownership question solely limited to LCS, or are there other –

ADM. GILDAY:  No, we’ve had other proprietary issues.  I think it came up on one of the panels yesterday.  I think the panel at the – the cyber panel was an example of a frustration.  We need access to the information.  I mean, so we are really harvesting – we do a lot of data analysis that has gotten us to a point, as an example, where we’ve been able to drive down those maintenance delay days, where we’ve been able to cut gaps at sea from 10,000 to less than 5,000 over the past year.  That’s all being done not by just lathering it with money, but by taking a look at the data and where it’s driving us to find problems that we need to fix.

Q:  Admiral Gilday, a clarification on something you said while you were on stage.  You went through a few numbers of ships.  I was wondering, are those the 2020 FSA numbers, are those new numbers?  Where do they come from?

ADM. GILDAY:  So those are grounded on the 2020 FSNS, but we’re doing another force structure assessment right now that’ll inform the 2024 POM.

Q:  OK.  So those numbers were all from the 2020 –

ADM. GILDAY:  There’s nothing new about those numbers.  They’re being refined by those constant – example, those battle problems we’re doing with every single strike group that’s deploying, the large-scale exercise we did last summer, the unmanned exercise we just did in Fifth Fleet.  So we’re collecting data as we do those exercises, were do those battle problems.  There’s additional analysis that’s going on based on the Joint Warfighting Concept.  And so those numbers will get refined over time.  But I will say this, we haven’t seen a study since 2016 that’s gone – that has – that hasn’t gone below 355.

Q:  But your impending FSA is not going to give you those numbers – (inaudible) –

ADM. GILDAY:  I don’t think they’re going to drop.  I think – again, I think that the warfighting concept, distributed maritime operations, and underneath that LOCE and EABO is nested – I think we’re proving that that’s a good way – that’s a good way to fight.  At least the war games that we’ve done, Global 14 we just finished last summer, was another insightful war game for us in terms of testing that concept.  It’s consistent with the way combatant commanders are looking at the world in the future.  It’s consistent with the way that the Joint Staff and OSD are looking at it.  So I think – I think the way that we’re envisioning the force is going to operate and fight is consistent with the way leadership looks at it.

Q:  Admiral, thank you for doing this.  In you remarks you mentioned being serious about the shift away from legacy platforms, and that it is a warfighting imperative.  I was wondering if you could maybe expand on that.  And what are you specifically looking for?  And which future platforms is the Navy looking to invest in the coming budget?

ADM. GILDAY:  So if I could just talk about legacy for just a second.  So I was talking about cruisers.  And so if you take a look at the beginning of this budget cycle, there was a – there was a – the number seven.  You know, the Navy was going to be forced to keep seven cruisers.  I think in the NDAA we ended up with two.  I wish – I wish the number was zero.  We need to transition from those platforms for a number of reasons.  I talked about the 2,700 delay days that we have right now out of – out of private yards.  More than half of those belong to the cruisers that are in maintenance right now, that are in there for the cruiser upgrades.  Those upgrades are costing us tens of millions of dollars over budget.  Why?  Because of growth work and new work that we didn’t expect with ships that are over 30 years old.

For us to pivot, under the budget line that we have right now, to pivot to a more lethal force, we need to give up some stuff.  And you can’t just look at it through the lens of surface VLS tubes.  So if I take a look at mid-decade, and I take a look at what we’re investing in, right?  If I start with under the sea, we’re delivering Block IV – Virginia Block IV submarines now with an extended-range weapon.  We’ll be on the cusp of delivering Virginia Block Vs.  Block V Virginia-class are going to have hypersonics, right?  They’ve got an increased missile capacity, a VLS capacity.  They’re our most – they’re our most survivable strike platform.  If I take a look at on the surface, right, frigates will be delivering in ’26.  We’re delivering flight three DDGs.  We’re investing in SM-6, we’re investing in maritime strike Tomahawk.  We’ll have hypersonics on Zumwalt in ’25, right, leveraging what the Army’s doing with their mobile hypersonics platform in ’23.  Same weapon system.

If I – if I go to the air domain, just for a second, and I take a look at the integration in fourth and fifth – fourth and fifth-generation fighters, we just finished up a highly successful first deployment with an F-35 squadron on Vinson.  Half of our strike – half of our carrier airwings will be fourth/fifth gen integrated by the middle of the – by the middle of the decade.  LRASM, JASSM extended range, MQ-26 pushing the battlespace out even further.  So you need to look at where that money’s going, right, in terms of modernization, to take the fleet that we have now and make it even more powerful.  And I – it’s difficult for us to do that under a – under a top line that’s been fairly static for a while.

COMMANDER COURTNEY HILLSON:  We have time for one more question.  Megan, did you have one?

Q:  Yes.  Hi.  You were talking about sort of getting requirements from industry for things you may not have thought of yet.  There’s obviously a lot of opportunities to do that on smaller things, where you hold, like, an ANTX in terms of these ideas.  But when you look at the bigger platforms, such as ships, I mean, I know there’s a lot of ideas on how to evolve, you know, production lines to maybe meet your future needs.  And I just wonder if there’s any discussion of maybe having, you know, more opportunities to pitch new and different ideas to kind of develop your platforms –

ADM. GILDAY:  So I’ll give you an example where we have to get better.  It’s in aircraft production, right?  And so how long has it taken us to get the F-35 fielded?  About 30 years, right?  We can’t do that with sixth gen.  And so it’s not just the technology in those platforms, it’s the way you produce those platforms that have to change.  If you go to some of the shipyards, and the way that they are introducing new technologies, where you’re in a workspace that’s the size of a football field, but there’s only six workers in there because everything’s done robotically, it’s very, very impressive.  And so I think those are examples.  I think that industry is taking a look way downfield.  Directed energy is another example of where we could – where we could use a lot of focus in order – game changing technologies in terms of fleet survivability.

Sam, you had one follow up?

Q:  Just the personnel side.  If you’re talking about a fleet this big, you know, that’s a lot of people.

ADM. GILDAY:  It sure is.

Q:  That’s a lot of training.  That’s a lot of sailors.  The recruiting pool is always going down.  How – where is that in the calculus?

ADM. GILDAY:  So as we take a look at – so, that shipbuilding plan being a roadmap to build that fleet of 500 – so the 500 is a requirement.  That’s what I say we need based on the analysis that’s grounded on the way we’re going to fight.  Whether or not we’re going to get that 500, everything – we’re not going to get it unless everything else comes with it.  So my priorities of readiness, modernization, and then capacity – I think that’s a pretty good model for CNOs follow, because if we don’t what we’re going to end up doing – give you an example.  Back during sequestration, we flipped that model.  And we kept the production lines of ships going, right?  And at the time, we thought that was a really important thing to do. 

Well, when your top line’s fairly static, the way you pay for those ships, where can you get the money quick?  People, right.  And so what do you see climbing pretty rapidly?  Gaps at sea.  You stop buying – you stop buying the weapons that you need to fill magazines.  You stop buying the parts you need to fill storerooms.  So the second and third-order effects of flipping that model are significant on the – on the readiness of the current fleet.  And, you know, as we’ve talked about here today, as you see in the news, they got to be ready to go.

Q:  Can I just ask one current events question?  I know you’ve got to go.

ADM. GILDAY:  Sure.

Q:  So right now, in the Mediterranean, you have an aircraft carrier.  They’re operating with two other aircraft carriers, the French, the Charles de Gaulle, and the Cavour.  The Russians have arrayed three carrier-killing ships in a triangle formation around you.  The Project 1164s, the Slavas.  What do you make of that disposition?  That’s an interesting disposition for those three ships.  One’s in – one’s near Crete, one’s near Syria, one’s in the Black Sea.

ADM. GILDAY:  We operate in and around the Russians and the Chinese all the time.  And so this is nothing new.  I would say that given this current situation the chance for miscalculation is greater.  And so that’s why we train to a very high standard, right?  A very high standard, so that when we find our ships in situations like this that COs make the right moves, that we act in a way that’s not provocative, that we communicate very clearly that we’re not cowboys out there.  So our intention is to be responsible professionals out there at sea. 

To give an example, recently in the Fifth Fleet AOR we had a patrol boat that was up in the northern gulf.  It came point to point with an Iranian IRGCN vessel at night.  Their lights were out, their guns were uncovered.  That took a CO – you know, he handled that the right way to deescalate the situation, and at the same time make sure that his crew was safe, and at the same time make sure that he wasn’t putting himself in a position of disadvantage against a potential adversary.  That is – that takes a lot of training, in order to get a CO with the right judgement level to make those right calls.  So –

Q:  While you were on stage, President Biden said he thinks Mr. Putin’s made his decision, and he expects an invasion to begin in a day or three.  Are you – can you determine where it is?

ADM. GILDAY:  I stand behind everything – so I don’t have operational control.  The Truman right now – the Truman is forward deployed in the EUCOM AOR.  And for the foreseeable future, as far as I know, is going to stay there.

CMDR. HILLSON:  That’s all the time we have.

ADM. GILDAY:  You need to be forward to be relevant.  So they’re in the right – Truman’s in the right place.

Q:  CNO.

Q:  Thank you, sir.

Q:  Thanks for your time.

Q:  Thank you.