Ellen M. Lord, undersecretary of defense for acquisition and sustainment, updates reporters on COVID-19 and other current topics from the Pentagon, August 20, 2020.
Transcript
And with that, I will turn over to the Lord. Thank you. Good morning, ladies and gentlemen. I’d like to talk to you about a new report that was recently delivered to Congress. And then I’d also like to provide a few updates on our cove in 19 response as well as some other department business. Yesterday, we sent the f Y 19 nd a Section 868 report to Congress. It’s titled Implementation of Defense Science Board Report Recommendations, Design and Acquisition of software for Defense Systems. The report provides a summary of initiatives and actions that have been implemented in response to the February 2018 Defense Science Board report. Additionally, several attachments are included with report which our policy and guidance documents that we’ve developed over the last year to enable program managers and pios to adopt modern software development practices. This work is embodied in documents and links included in folders for those of you here today in person And for those of you on the phone, we will email you after the briefing. I would like to highlight five areas. One the software acquisition pathway. This policy is a component of the adaptive acquisition framework. Our goal with this pathway is to simplify the acquisition model toe enable continuous integration and delivery of software capabilities to support the war fighter. The pilot programs for Be A eight software and digital technology funding are the second area with the comptroller. We’re working on another significant Pathfinder program for the creation of budget activity eight, or we call it be a eight under the Research, Technology Development and Engineering title, with congressional approval in F y. 21 nd a. This would consolidate funding for a small number off ongoing programs under a single appropriation or color of money for software and digital technology. This pilot effort will evaluate the efficacy of a single funding category for software and digital technology. Three. The D. O. D Enterprise def. SEC Ops Reference Design. This was first introduced in the 2019 digital modernization strategy. The department outlined numerous goals and objectives to improve information technology to increase our military advantage across all spectrums. One of the goals identified was to pursue the use of software development, DEV Security, SEC and Operations Ops, where def. SEC ops as a software development methodology. The use of this commercial best practice will support the department’s efforts to be massively responsive toe emerging software capability, needs and threats, as well as to ensure better utilization off cloud environments and artificial intelligence for the development of enterprise def SEC up offerings This is a joint effort off the chief information officer A. N s. And the service is focused on bringing automated software, tools, services and standards to D O D programs so that programs concretely eight deploy and operate software applications in a secure, flexible an interoperable banner on a much faster pace, which is responsive. Toe Warfighter needs five. The software Workforce Working Group Progress started in 2019. This is an example of collaboration with the services we’re currently working across government agencies to establish a software civilian career field with Oak PM and working on an innovative training and workforce development initiative. So changing subjects a bit here on Tuesday of this week, I visited Tinker Air Force Base and was able to discuss Air Force software initiatives with the 76 Software engineering Group, part of the Air Force Sustainment Center Software Enterprise. The group provides D o. D. With capabilities for operational flight programs support jet engine test and training and simulation systems. Jordan Gillis, R. A S t for sustainment and R D. O d chief housing officer, joined me during the visit to discuss the military privatized housing initiative with both residents and housing provider. Senator Inhofe joined us for a military housing discussion as well is a wide ranging dialogue on other Tinker Tinker initiatives. While there, I was also able to tour multiple de po activities with a particular focus on the F 35 engine or the F 1 35 their maintenance and repair activities. Next week, I plan to visit the F 35 joint simulation environment, or JSC, at the Pax River Naval Air Station. Moving on to other business. I think many of you are tracking section 889 B of the F Y 2019 National Defense Authorization Act and D A and the recent waiver granted by O. D. And I. Section 889 b prohibits the federal government from procuring any equipment, system or service produced by Wall Way Technologies company ZTE Corporation and three other Chinese companies. This interim rule, published on July 9, is located on the Federal Register website and went into effect Thursday, August 13. We fully support the intent of the prohibition and we’re working to ensure the rule results in the removal of these products from our supply chain. Defense Acquisition University posted a continuous learning training module on August 8. It targets the acquisition community covering requirements described in the far implementation. Guidance, Exceptions and waiver process is reporting requirements and how the rules will be enforced. The waiver was granted, tempted temporarily by OD and I. It’s Onley in effect until September 30th in order to provide time to review the full details off the rule implementation using additional information from D. O. D. The waiver covers items that are considered low risk to national security, such as food, clothing, maintenance services, construction materials that are not electronic and numerous other items that OD and I has identified as commodities low risk commodities. The waiver received is not for our major weapons systems or any support activity related to them. The short term waiver is important so that end of fiscal year activity will not be impacted. We are balancing warfighter readiness and completing end of year purchases to avoid issues with expiring funds with rule implementation for the next 45 days. D. O. D is not seeking a broader waiver request at this time As we eliminate Chinese telecommunications equipment from our supply chain. We know that there are challenges for industry partners, but we’re pleased to see the defense industrial base stepping up sparkly. This is the right thing for our national security. We’re pleased to see the efforts of our major crimes in being proactive to eliminate the prohibited equipment, and we continue to remain in constant dialogue. We will keep you updated as we move forward. So now turning Teoh an update on our response to Cove in 19. I remain very proud of all the work done by those in a N s. Since the outbreak, D. O. D is partnered with HHS to invest nearly $630 million in expanding the domestic industrial base for medical resource suppliers. Some examples of our efforts in this area include 200 and $79 million to increase N 95 respirator, masked production by nearly 100 million units per month by January 2021 $127 million to increase production off swabs by 65 million units per month for testing hits. $138 million to advance syringe technology and production of over 45 million units per month in support of the US vaccine development strategy. $22.4 million to increase domestic glove manufacturing by 450 million units annually and $35 million to increase domestic manufacturing. Off Cove IT testing kits by 10 million tests per month by 20 21. February 2021 through assisted acquisition. D. O. D Continues to support HHS efforts. Toe lead the interagency in replenishment of the strategic national stockpile and distribution of supplies to states, territories and nursing homes to respond to the krona virus outbreak to support domestic industrial base. Expansion for critical medical resource is D. O. D. Recently solicited input from industry through our commercial solutions opening in the areas of N 95 surgical masks, PPE pharmaceuticals and screening and diagnostic capabilities. The Joint Acquisition Task Force, or JAD if is reviewing the responses and will continue working with HHS to determine the areas off most effective government investment to support on shoring of domestic manufacturing for medical resource is we are also working to transition current Jad if operations into an enduring policy and oversight office within the A. N s joint rapid acquisition cell that will facilitate current and future d o d acquisition support to inter agency partners. So thank you for allowing me discuss these issues with you. And I welcome your questions. All right, we will start on the phone If we could go to Tony Ca Paseo of Bloomberg Highness, Lord on the joint strike fighters Joint simulation environment visit you’re taking How concerned are you? Given the delay in the testing until December that the threshold date for full rate production march of 2021 will have to be delayed. And how serious are the issues down there with the simulation environment? Is it all cope it related, or are there technical issues also that are delaying things? So I am confident that we’re going to meet the march date. We have the entire government industry team of focused on that There have been setbacks within the JSC from cove it it is a very close working environment. The team very quickly moved out to follow all CDC guidelines. To make sure we had a safe working environment, they readjusted. We have operations there at least six days a week, if not seven days a week and almost 24 hours. So cove. It has been significant. We’re also working through just the technical maturation off simulating these threats, and it’s an iterative process. The reason I am going there next week with Bob Beeler, our director of OT any, is to understand exactly where we are. Make sure the team has all the resource is they need, and I look forward to continued progress. Great. We’ll come back to the room, um, Barbara for the u. A e. I know you haven’t traveled in the region late last year. Talked about that publicly, can you? As thoroughly as possible, bring us up to date where it stands right now to the best of your understanding, is selling the F 35 to the U. A. E. Currently actively on the table? Is the department involved in the discussions that your Kushner had with EU aid? Did you provide technical experts technical parts of that briefing? What’s your sense of what’s next on all of this. So I need to defer all the questions on F 35 sales to the U. A. E. To the State Department. However, I will say I have spent quite a bit of time in the region over the years in this role actively talking about F 16 upgrades. That has been an ongoing discussion that DSC A and Air Force have worked on. But I need to ask you to go back to the State Department. Moving back to the phone you, Scott Macedonia Federal News. Hi, Thanks for doing this. Um, I was just curious about the jet of becoming permanent roll with that. Continue that as it continues in its permanent roll with it. Only work in a medical capacity, Or would you expand that work on other weapons systems? Another rapid capabilities for anything? A point of clarification. What we’re doing is we’re taking all of our learnings from what we’ve done with the JAT if and we are reducing that toe, a playbook that can respond to any type of federal emergency where acquisition and sustainment support is needed so it could support another pan deck pandemic. But it could respond to other types of federal disasters as well. We stood up the joint rapid acquisition cell years ago to support the war fighter down range, and in fact, I chair bi weekly meetings with our forces both in Iraq and Afghanistan, where we have a secure VTC and we talked to those down range those that Centcom and so forth and talk about what are those urgent needs? We have a mechanism, a framework, a small staff that supports that. It’s a great effort that reaches out to the services and all different components within OSD. What we’re looking to do is to have that core group be ready to be stand up and support federal emergencies, augmented as we have augmented the JAT if we actually are looking at transitioning what the John F. Has been doing back to HHS and FEMA later this fall so that they can develop the enduring capability to make to take care of their medical supply chain. So a lot of act a lot of conversation going on right now with Secretary a czar to enable that we will be dispersing those individuals that have specifically been working on the JAT. If later this fall back to other functions. But we will maintain the capability to rapidly reconstitute the capability if needed. Next question. Tony uber Tuka inside defense. Yes, Miss Lord, Thank you very much for doing this. Um, my question goes to, Ah, the white paper the Pentagon sent to Congress identifying $11 billion costs that came from Cove it impacting around 100 6000 jobs. Can you tell us why the defense contractors need that funding now as supplemental emergency Fund? Because there’s debate in Congress about it and some senior Democrats have likened it to a blank check to defense contractors. What do you make of that assertion? And why did this money? I need to go to defense contractors. Well, I don’t write blank checks. What? This is, um, is work that our acquisition group has done working with our entire supply chain toe understand the one time costs that were incurred. Do Teoh employees being on sick leave because of cove it not being able to come to work because they worked either at government installations that were shut down or their own work areas were shut down and they couldn’t tell a work for instance, if they were doing classified work, it pertains to the one time cost of rearranging manufacturing floors to make sure that those businesses were in compliance with CDC guidelines. It talks about going through and doing deep cleanings to allow workforce to come back. What we are looking for is the one time cost, and this is very, very clearly delineated as to what is allowable and what is not allowable are. DPC team has outlined this and put guidance out so that that money does not come out of the, um services and the actual hardware being delivered to the warfighter so that we do not incur a hit to readiness. Our number one obligation is to make sure we stand ready. We do not want to impact readiness and our modernization efforts. So this is for a very clearly defined period of time. And we are looking at getting past that so it doesn’t eat in to the budgets. We have to basically produced services, um, and weapons systems for the warfighter. Right? Uh, moving on if we could get and Mike Stone from Reuters. Thanks very much. Uh, thanks for doing, Miss Lord. During your tenure, you’ve been able to move out quickly within at 35 sales. Poland. That was a very rapid sale process. Given what you learned from the Poland case, if you had to do that case again from a standing start, how fast do you think you could get one l away we’re talking about in general here, I believe. And I will say that Secretary Esper has is a key initiative, um, defense, trade, modernization, Because we want to support our partners and allies with US equipment for a variety of reasons, one to be interoperable. And secondly, to support our domestic defense industrial base to make up for the lumpiness, if you will in US acquisition. We also want to deny our adversaries, such as Russia the ability to generate revenue and develop interoperability across the globe as well. I think the Poland effort really shows what happens when all the agencies such as DSC A and other D o D components work very closely with State Department on DSO fourth. So I think the six month timeframe is a very good bogey. All right. Uh, Lee Hudson Aviation Weekly. Thanks for doing this. Um, I was hoping You could give us more detail about how today’s announced that that five ball US configurations are available to the U. S. Government and how that’s related to the GP. A title three investment from July’s that supported the small US industrial days. Okay, so the blue US, as it’s called, goes back a couple years. There’s been an initiative, especially between A and S and the army. D I You has facilitated a lot of this, but we looked at the fact that basically D j I from China had decimated our industrial base for small U A. V s quad copters and so forth through pricing that was sub costs and so forth. So what we wanted to do was come up with government standards that clearly indicated what waas acceptable in terms of design and performance to meet department needs. We’ve come up with that blueprint, if you will, through a Siri’s of different fly offs and different efforts. And now we have a Siris of companies that can produce this so that we at the d. O d. And hopefully more broadly commercially can support our domestic industrial base. So I will go back and look at that particular investment we had with the DP A title three. Because I cannot recall specifically what part of this that enabled. And Lee will take that one. Jessica will get back to you on that. But I will tell you that I think this was a fantastic initiative that leverage the S and T community. It leveraged our operators, and it leveraged. Our ability is a department to reach out to the commercial industrial base to say yes, you can do work with D o D. And we want you to do work with us. We want to be fast. We want to be inexpensive, and we want to be responsive to the warfighter needs. Okay, uh, Jeff from task and purpose. Thank you. Um, regardless of what happens in November, uh, Pentagon budget cuts are likely. So I’m wondering, how much would the Defense Department say if it canceled the F 35 program? Thank you. That is an impossible question to answer at this moment because there is war fighting capability required to meet our oh, plans. And, um, we way we have attack air mix to be able to do that. So if you canceled the F 35. The question is what back fills for that capability that costs something as well. I think as you know, we’re in the midst of developing our budget request right now. And the question of the mix of 4th, 5th and 6th Gen aircraft is one that is being debated right now, right? And we have time for one more question. So let’s go to Jackson Barrett of Fed Scoop. Hi. Thank you. Could you provide date on the cybersecurity maturity model certification? Will. Do you have any anticipated delays? Have you executed the no cost contract with the cement? See accreditation body yet? So we are moving forward very crisply with CMM. See, we think it’s absolutely critical to make sure Defense Industrial Base has the cybersecurity technology required to understand truly how cyber secure we are. I will double check, but I believe we have executed that contract. But I will talk with Katie Harrington and Jessica could get back to you later this afternoon, and I don’t anticipate any delays just to be very clear on that, sure, we’ll go back to the room since I was a quick answer. Thank you for taking my question you had mentioned earlier in regards to Kobe the different amounts of money that you’re using for distribution. My understanding was that the military won’t necessarily be distributing the different supplies. So is a lot of that money going to contractors to distribute the syringes in the masks or kind of house that funding being elevated? The money I was talking about this twofold. One is assisted acquisition to HHS Toe actually put PPE Pharmaceuticals other things on contract. And then there’s a separate amount that we have used Cares Act, funding and DP a Title three to invest in increased capacity and throughput so that we have greater ability to generate domestically all of these different items. When you talk about distribution, that’s a separate and distinct question. Right now, we have not put money into distribution, so to speak. Right now, we are under discussions as to how and if D o. D. Is part of vaccine distribution. Um, but we are assisting, I think is, you know, we have Admiral pull love check working with HHS and FEMA on the supply chain. A large part of what he does is look at the demand signal generated by the states and local areas. And we’ve put this control tower into place where we assist HHS and FEMA with analyzing the demand signal and helping to determine where to distribute where the greatest need is. So it’s almost like a typical E r P system you would have in a manufacturing plant. We continue toe of. I advise and assist on the mechanism to do that. I want to follow up on something you just said. Is there any way you can bring us up to date on what the thinking is right now about D. O D’s role potential role in future vaccine distribution in that logistical effort to do it? Have you come have you That’s under discussion right now? So no conclusions points there under discussion. If there’s no not the answers, but the questions you’re asking yourself, what will the distribution pattern be and what will be the mechanisms for that in terms of how it is distributed by what means and so forth, so under whose direction and whose resource is pretty much thought that the military, the department would have to take a leading role in distribution since since it would be such a significant effort unclear right now. Thanks, everybody. Thank you