[PPT] - T HE SPI RI T OF INNOVAT ION DE F E NSE HOME L AND SE PowerPoint Presentation

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DE F E NSE HOME L AND SE CURIT Y SUST AINME NT & SUPPORT ME DICAL INST RUME NT AT ION COMME RCIAL AVIAT ION

T HE SPI RI T OF INNOVAT

ION

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SLIDE 2 E lb it Syste ms o f Ame ric a Pro prie ta ry Info rma tio n

Sta te o f Glo b a l Se c urity a nd T

hre a ts

F

uture T re nds a nd Re q uire me nts fo r De fe nse T e c hno lo g y

Outlo o k fo r De fe nse Spe nding a nd the Budg e t
T

rump Administra tio n a nd De fe nse

K

e y Na tio na l Se c urity Pro g ra ms

AGE NDA

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ST AT E OF GL OBAL SE CURI T Y & T HRE AT S

SLIDE 4

GL OBAL SE CURIT Y: A F UL L SPE CT RUM OF T HRE AT S

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SLIDE 5

SE VE RAL CONF L ICT ING MACRO F ACT ORS ARE IN PL AY…

So urc e : RSAdviso rs

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SLIDE 6

NAT IONAL SE CURIT Y ST RAT E GY – 4 +1 F RAME WORK… IN 5 DOMAINS Russia China Nor th Kor e a Ir an + Global Viole nt E xtr e mism L AND, SE A, AIR, SPACE , AND CYBE RSPACE

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SLIDE 7

T HE AME RICAN WAY OF WAR IS CHANGING… .

Co unte r lo w o b se rva b le c a pa b ilitie s
Offe nsive c yb e r a nd a da ptive E

W

Glo b a l te rro r ne two rks & sle e pe r c e lls
Adva nc e d ta c tic a l b a llistic missile s

L e ve ra g e US Ge og ra phic Isola tion 1 Proje c t F

rc e from

Se c ure Ove rse a s Ba se s 2 Build a nd L e ve ra g e Allie d Coa litions 3 E sta blish Air, Ma ritime a nd C4ISR Supre ma c y 4 Re ly on T e c hnic a l Ove rma tc h in Ke y Are a s 5 … is be ing sig nific a ntly de g ra de d by a dve rsa ry improve me nts in:

I

SR a nd spa c e c a pa b ilitie s

Anti-Ac c e ss Are a De nia l (A2AD)
Na vig a tio n wa rfa re / c o unte r GPS
Adva nc e d SAM

Ho w the U.S. c o unte r s the se de ve lo pme nts will have a majo r lo ng te r m impac t o n the addr e ssable mar ke t fo r supplie r s

So urc e : RSAdviso rs

T he “Ame ric a n Wa y of Winning a Wa r” sinc e 1945 …

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SLIDE 8

F UT URE T RE NDS AND RE QUI RE ME NT S F OR DE F E NSE T E CHNOL OGY

SLIDE 9

DoD PRIORIT IE S CHANGE D POST

2011

□ Buying Po we r and Buying Hab its o f o ur c usto me r c ha ng e d □ U.S. milita ry prio ritie s c ha ng e d, pro c ure me nt re q uire me nts c ha ng e d □ Shift to Asia -Pa c ific stra te g y no t fully re a lize d. . .b a c k to E

uro pe ?

□ T

e c hno lo g y a dva nc ing ra pidly – o ur a dve rsa rie s a re le ve ra g ing it, to o

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SLIDE 10

DoD BUDGE T – SE QUE ST RAT ION RE L IE F

□ Do D Budg e t F

Y16 g ro ws fo r the first time sinc e 2010

□ Budg e ts > se q ue ste r, b ut < le ve ls ne e de d fo r ke y pro g ra ms □ Budg e ts fo r lo we r-prio rity pro g ra ms re ma in a t risk □ T

rump Administra tio n sig na ling a n e nd to se q ue stra tio n

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SLIDE 11

Susta ine d Slo w E c o no mic Gro wth Ma ssive a nd Gro wing Na tio na l De b t

≤

L a c k o f Po litic a l Co nse nsus Cha ng ing US Wa rfig hting Do c trine

F ac to rs shaping the b usine ss c limate will influe nc e what/ho w the USG b uys fro m supplie rs

So urc e : RSAdviso rs a na lysis

CHANGE + DISRUPT ION = OPPORT UNIT IE S T O E XPL OIT

Co mple x Se c urity E nviro nme nt Ra pid T e c hno lo g y Gro wth & Spre a d

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SLIDE 12

2017- 2021: DoD RE QUIRE ME NT S ARE / WIL L BE DIF F E RE NT

Co unte r Chine se , Russia n And I ra nia n A2AD Cha lle ng e Se c ure b a ttle ne two rks a nd C3I a g a inst c yb e r/ E MS T hre a t Mitig a te tyra nny o f dista nc e a nd time in strike , I SR, mo b ility De ve lo p disruptive CONOPS a nd Stra te g ie s fo r pre ssuring e ne my L e ve ra g e a na lytic s a nd pro c e ssing to e nha nc e inte llig e nc e fusio n Ac q uire impro ve d c a pa b ility mo re q uic kly a nd c he a ply

U.S. De fe nse Prio ritie s

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SLIDE 13

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E lb it Syste ms o f Ame ric a Pro prie ta ry Info rma tio n

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2017- 2021: DoD RE QUIRE ME NT S ARE / WIL L BE DIF F E RE NT

□

E xte nding life time s o f ma jo r pro g ra ms via te c h re fre sh a nd upg ra de s

□

I n-so urc ing R&D a nd a dva nc e d c o nc e pt de mo nstra tio n wo rk

□

Mo re re lia nc e o n c o ntra c to r funde d e a rly de ve lo pme nt

□

I nc re a se d re lia nc e o n ne two rking & inte g ra tio n to de live r c a pa b ility

□

Ope n syste ms a rc hite c ture s

□

Co nve rg e nc e o f RF a nd c yb e r func tio na litie s, syste ms a nd CONOPS

□

I nc re a se d se c urity re q uire me nts (b o th te c hnic a l & re g ula to ry) Co unte r Chine se , Russia n And I ta lia n Aza d Cha lle ng e Se c ure b a ttle ne two rks a nd C3I a g a inst c yb e r/ E MS T hre a t Mitig a te tyra nny o f dista nc e a nd time in strike , I SR, mo b ility De ve lo p disruptive CONOPS & Stra te g ie s fo r pre ssuring e ne my L e ve ra g e a na lytic s & pro c e ssing to e nha nc e inte llig e nc e fusio n Ac q uire impro ve d c a pa b ility mo re q uic kly a nd c he a ply US De fe nse Pr ior itie s Pr ior itie s for Sour c ing

□ E

xte nding life time s o f ma jo r pro g ra ms via te c h re fre sh a nd upg ra de s

□ I

n-so urc ing R&D a nd a dva nc e d c o nc e pt de mo nstra tio n wo rk

□ Mo re re lia nc e o n c o ntra c to r funde d e a rly de ve lo pme nt □ I

nc re a se d re lia nc e o n ne two rking & inte g ra tio n to de live r c a pa b ility

□ Ope n syste ms a rc hite c ture s □ Co nve rg e nc e o f RF

a nd c yb e r func tio na litie s, syste ms a nd CONOPS

□ I

nc re a se d se c urity re q uire me nts (b o th te c hnic a l & re g ula to ry)

U.S. re spo nse is c e ntra l to suc c e e ding in six c ritic a l prio ritie s
Will, in turn, drive inc re a se d funding in “fa st stre a m” se c to rs

SLIDE 14

“F AST ST RE AM” SE CT ORS

So urc e : RSAdviso rs

T hr e at Dr ive r s of F ast Str e ams:

Ne a r-Pe e r’ s g e o g ra phic e xpa nsio n
Cyb e r do ma in
Hig h-e nd kine tic a nd no n-kine tic e ffe c ts
T

ra nsna tio na l te rro r ne two rks

Ope ra tio ns in urb a n “me g a c e nte rs”
Spa c e c o ntro l

T e c hnologic al Dr ive r s of F ast Str e ams:

Co nve rg e nc e a c ro ss E

MS a nd c yb e r do ma in

Co mme rc ia l I

T a nd ne two rking a dva nc e s

Adva nc e d mic ro e le c tro nic s
Auto no my
Disa g g re g a tio n
Bio lo g ic a l e nha nc e me nt a nd mo dific a tio n

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SLIDE 15

F UT URE WAY OF WAR – C2 F USION

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SLIDE 16

OUT L OOK F OR DE F E NSE SPE NDI NG & T HE BUDGE T

SLIDE 17

HIST ORICAL L OOK AT T HE DoD BUDGE T

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SLIDE 18

OR… DoD BASE BUDGE T AUT HORIT Y AND WAR F UNDING (F Y78 – F Y21)

F Y17$ in Billions T ODAY

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SLIDE 19

T HE OVE RAL L OUT L OOK F OR A&D BUSINE SS IS POSIT IVE

197.46 205.86 219.03 224.86 229.32 233.55 135.32 135.26 137.88 140.1 143.41 146.72 110.73 102.56 115.27 116.05 118.61 124.17 68.77 71.39 75.16 75.04 71.25 71.99 58.63 58.79

100 200 300 400 500 600 700 F Y16 F Y17 F Y18 F Y19 F Y20 F Y21

DoD Budg e t Authority (Disc re tiona ry)

(F Y17$ in Billions)

O&M MIL PE RS Pr

c

R&D MilCon & Othe r OCO

$585 $570 $565 $557 $583 $580 Note $54B inc re a se a bove BCA c a ps for F Y18 is just $18B a bove Pre side nt Oba ma ’s pla ns for the sa me ye a r PB18 Assumptions

No Se que stra tion/ BCA
DoD inc re a se pa rtia lly offse t by

re duc tions in dome stic spe nding

E

xc e pt DHS (“the Wa ll”) Va ria ble s

De bt c e iling inc re a se ?
SASC/ HASC to offe r la rg e r ba se

budg e t

$640B vs $603B
OCO to supple me nt ba se ?

We e xpe c t inve stme nt funding (Pr

c + R&D) to e xc e e d F

Y17 le ve ls onc e OCO funds ar e alloc ate d and Congr e ssional plus- ups ar e made

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SLIDE 20

T RUMP ADMINIST RAT ION AND AE ROSPACE & DE F E NSE SE CT OR

Administr ation position Implic ation for 2017- 2021 F

c us on U.S. Jobs
Str

e ngthe n or ganic US- te c hnology/ manufac tur ing

Re - e xamination of global supply c hains (?)

“Ame r ic a F ir st” postur e

Inc r

e ase d diffic ulty ac c e ssing se nsitive data

Inc r

e ase d c ybe r / data pr

te c tion r

e quir e me nts

Ne e d str
nge r

solutions for F OCI mitigation

CF

IUS mor e c halle nging (?) E mphasis on ne w/ e xisting platfor ms and fle e ts

L

e gac y/ e xisting platfor m c apability upgr ade s

Ne w platfor

m spir al/ inc r e me ntal upgr ade s

Compatibility be twe e n le gac y/ 5th Ge n platfor

ms DoD AT L r e or ganization

Inc r

e ase d loc al c apabilitie s (e .g., r apid pr

totyping)

Ac quisition agility/ fle xibility

Pr
ximity of de sign to c ustome r

DoD r e sour c e foc us for ne xt 6 months: c ounte r

ISIS and inc r

e asing r e adine ss

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SLIDE 21

Ke y Na tio na l Se c urity

A ERO SPA C E PRO G RA MS

I MPROVI NG SE NT I ME NT I N DE F E NSE SPE NDI NG I S I NCRE ASI NG F ORE CAST E D PRODUCT I ON OF AT T RACT I VE AI RCRAF T PROGRAMS

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SLIDE 22

CLRF-IC

F/A-18 KC-46

FUTURE VERTICAL LIFT (Photo AMRDEC VizLab)

F-15 F-35 M1 ABRAMS

LIGHT ATTACK A/C

SUBMARINES CH-53K BOEING T-X LOCKHEED MARTIN T-X

L ARGE DE F E NSE PROGRAMS DRI VE

GROWT H

□

E a rly “T rump Bump” will b e o n e xisting pro g ra ms

□

T

p 100 pro g ra ms

c o nsume > $400B

ve r F

YDP w/ T

p

30 c o nsuming 75%

□

K e y = b e o n e xisting a nd le ve ra g e to future pro g ra ms

SLIDE 23

F

35 L

ightning II Pr

duc tion

Proc ure me nt Sc he dule

□ F

35 b uild ra te is pro je c te d to g ro w dra ma tic a lly o ve r the ne xt de c a de a s the

pro g ra m ra mps up

□ Co st pe r a irc ra ft de c re a sing – inc re a se d pro duc tio n pe r ye a r will c o ntinue to drive

do wn c o st

□ T

rump ne g o tia tio ns with L

c khe e d Ma rtin o n the he e ls o f Do D ne g o tia tio ns

□ I

nte rna tio na l sa le s pro je c te d to inc re a se

F

35 L

IGHT NING II

122 157 219 253 280 293 316 349 372 393 2016 2017E 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F

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SLIDE 24

KC- 46A Pe gasus Pr

duc tion

U.S. DoD Proc ure me nt Sc he dule

□ K

C-46 pro g ra m is c urre ntly tra nsitio ning fro m de ve lo pme nt to pro duc tio n a nd is sc he dule d to re pla c e ~40% o f e xisting ta nke rs

□ Suc c e ssfully c o mple te d b o o m e nve lo pe te sting in Q4 2016 with 5 a irc ra ft unde rg o ing

flig ht te sting

□ K

C-Y a nd K C-Z fo llo w-o ns T BD – K C-135s re ma in in fo rc e

KC- 46 PE GASUS

22 29 36 36 36 35 38 40 40 40 2016 2017E 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F

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SLIDE 25

T

X T

r aine r Pr

duc tion

□ T

he T

X T

ra ine r is the pre mie r ne xt g e ne ra tio n tra ining syste m, de sig ne d to me e t e vo lving re q uire me nts a nd te c hno lo g ie s

□ 350 a irc ra ft initia lly fo re c a ste d b y the USAF

– 1000+ po ssib le

□ L

ng -te rm pro g ra m

□ Winne r c o uld pla y in the USAF

L ig ht Atta c k Airc ra ft pro g ra m

T

X T

RAINE R

2 3 1 1 8 21 36 2017E 2018F 2019F 2020F 2021F 2022F 2023F 2024F 2025F

F

re c a ste d Produc tion Sc he dule

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SLIDE 26

F / A - 18 Supe r Hor ne t Pr

duc tion
F

/ A-18 Supe r Ho rne t is re c e iving re juve na te d inte re st b o th do me stic a lly a nd inte rna tio na lly

Re la tive ly a ttra c tive c o st a nd still stro ng pe rfo rma nc e pro file
USN ha s b e e n suc c e ssful in g e tting “a dds” to Do D’ s b udg e t
T

rump ne g o tia tio ns with Bo e ing will b e a fa c to r

Po te ntial ne w

rde rs fro m

Kuwait, Canada and the U.S., re spe c tive ly

F

re c a ste d Produc tion Sc he dule

F / A- 18 Supe r Hor ne t

25 51 12 18 40 2016 2017E - 2025F Kuwait Canada U.S. Current Orders

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SLIDE 27

QUE ST I ONS AND DI SCUSSI ON