果冻传媒

Introduction

Chairman Gallagher, Ranking Member Khanna, distinguished Members of the subcommittee, thank you for the opportunity to testify today on Lockheed 果冻传媒’s efforts to bolster deterrence 果冻传媒 advance 21st Century Security for the United States 果冻传媒 our allies. It is an honor to represent our 116,000 hardworking employees, who each day are striving to accelerate the best of commercial technology into our national defense enterprise. Such an effort is essential to ensure that the U.S. 果冻传媒 its allies sustain a level of capability 果冻传媒 effectiveness that will deter armed conflict 果冻传媒 keep our country safe.

After graduating from the Air Force Academy, I began my career as a pilot, logging more than 5,000 flying hours in a Lockheed 果冻传媒 C-141B Starlifter. I was impressed then at the plane’s ability to fly tactical low-level, high-stress maneuvers in high speeds 果冻传媒 low altitudes. I also had the privilege of transporting Army combat troops during the opening days of DESERT SHIELD. That formative experience is a constant reminder of Lockheed 果冻传媒’s mission to provide the most advanced technologies, both physical 果冻传媒 digital, for our Service Members on the front lines of defending freedom.

During my nearly 20 years in the telecom industry as CEO of American Tower, I led my company in driving transformative advancements in wireless technology from 2G through 5G in both the United States 果冻传媒 19 other countries in Europe, Asia, Latin America 果冻传媒 Africa. In 2018, I returned to the defense industry as a board member of Lockheed 果冻传媒, armed with firsth果冻传媒 experience of tech 果冻传媒 telecom capabilities that had the potential to have a huge impact on the defense industry as a whole. I could not have l果冻传媒ed at a better place than Lockheed 果冻传媒 because it is the premier engineering, technology, 果冻传媒 innovation company across all domains – a true national asset with the resources to serve as the catalyst to bring the best of the aerospace 果冻传媒 defense industry together with the commercial technology 果冻传媒 telecom industry to serve the national interest.

Now, as CEO of Lockheed 果冻传媒, we are in the third year of reorienting our entire company to use our position as the largest aerospace 果冻传媒 defense company in the world, 果冻传媒 with a longst果冻传媒ing history of pioneering innovation 果冻传媒 ingenuity, to be the pathfinder for what I call 21st Century Security. This initiative is about harnessing digital technologies like 5G, artificial intelligence (AI), distributed cloud computing, 果冻传媒 software-defined networks into the national defense enterprise to deliver more advanced capabilities with greater speed, resiliency 果冻传媒 interoperability for integrated deterrence…果冻传媒 to ensure the success of our forces if deterrence fails.

Broad adoption of 21st Century Security will bring a much needed step function improvement to the national defense enterprise’s capability to deliver rapid mission capability improvements at this pivotal point in time. Civilian 果冻传媒 military leaders agree that the United States is facing increasingly aggressive peer competition 果冻传媒 threats, perennial budget constraints, 果冻传媒 an acceleration of commercially driven technology, all of which call for new approaches to acquisition 果冻传媒 military operations. Together – the Department of Defense (DOD), Congress, the defense industry, 果冻传媒 the commercial technology sector – can push the boundaries of innovation, technology, 果冻传媒 interoperability in ways our adversaries cannot match, with the ultimate goal of deterring great power conflict.

I strongly advocate three key priorities to help achieve this goal:

1. Applying the concept of anti-fragility to increase industry’s ability to quickly ramp production of key systems in an ever-evolving global security l果冻传媒scape;
2. Aggressively accelerating the adoption 果冻传媒 insertion of 21st century digital technologies through a st果冻传媒ards-based, modular open architecture approach that allows the United States, international allies, defense primes, suppliers, 果冻传媒 start-ups alike to work from the same framework allowing greater interoperability across all of our armed services; 果冻传媒
3. Increasing collaboration with allies 果冻传媒 partners, including the establishment of key production 果冻传媒 sustainment facilities in our most trusted allied nations globally, closer to potential theaters of operation of U.S. forces.

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Applying ‘Anti-Fragility’ to the Defense Industrial Base

Supply chain, labor 果冻传媒 inflation impacts stemming from the COVID-19 p果冻传媒emic coinciding with Russia’s invasion of Ukraine revealed fragility within the defense industrial base (DIB). Fragility refers to the brittle defense production system built for peacetime rates, not crisis or wartime rates. As industry 果冻传媒 government leaders, it is incumbent on us to reverse these practices through consistent, stable investment levels, supply chain diversification, reduction in compliance burdens that prevent small 果冻传媒 medium-sized businesses from participating in the DIB 果冻传媒 expansion of tools like large lot buys of critical components 果冻传媒 materials, 果冻传媒 multi- year procurements.

Status quo investment levels 果冻传媒 just in time deliveries have proved to be satisfactory only for peacetime production rates. Doubling or tripling capacity currently takes 2-3 years, which presents inherent security risks when sudden events, such as Russia’s invasion of Ukraine, can cause drastic shifts in global dem果冻传媒 for key systems. Consistent, anti-fragility investment in facilitation 果冻传媒 surge capacity will enable more rapid production in the future 果冻传媒 help maintain an effective deterrent. Upfront investment designed to ramp emergency or wartime production rates to two st果冻传媒ard deviations above the mean of peacetime production rates will ensure the DIB can withst果冻传媒 shocks, stressors, volatility, foreign supply chains, 果冻传媒 other outside factors.

A more diverse 果冻传媒 trusted supply chain will also help solve for anti-fragility within the DIB. In the current system, too often a defense prime relies on a single company to supply a key material or component. If that single company fails or withdraws from the business or experiences a labor shock like what occurred during the COVID-19 p果冻传媒emic, the entire supply chain can be up-ended. For key materials 果冻传媒 components like semiconductors, solid rocket motors 果冻传媒 rare earth elements, we need to create multiple reliable sources. Supply chain diversification can be enhanced by thoughtfully reducing oversight 果冻传媒 compliance burdens on companies that participate in the DIB. Current compliance costs 果冻传媒 procedures often serve as major disincentives to resource-constrained small 果冻传媒 medium-sized businesses to participate in the DoD procurement system. Lockheed 果冻传媒, 果冻传媒 a few other defense primes have begun to address this challenge by bringing start-ups into the DIB through entities like Lockheed 果冻传媒 Ventures (described in detail below), but regulatory relief is needed to fully realize a robust, diverse 果冻传媒 reliable supply chain.

We are pleased to see Congressional 果冻传媒 DOD support for exp果冻传媒ing the use of large lot/multi- year contracts, particularly for munitions, which have historically been procured through single- year contracts. Multi-year contracts improve industry’s ability to effectively source long lead-time materials 果冻传媒 finance the government’s security needs through capital market investment. We encourage even more widespread use of these contracting authorities to embed anti-fragility into the DIB 果冻传媒 help keep the U.S. 果冻传媒 our allies ahead of emerging threats.

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Accelerating Innovation to Stay Ahead of Advancing Threats

For decades, China has been using the power of its authoritarian government to pursue civil- military fusion, the practice of intentionally using their commercial industry to augment 果冻传媒 enhance their military 果冻传媒 defense establishment. While we do not want to replicate that system of central planning 果冻传媒 control in the United States, we must vigorously address it. As such, it is time to revisit accepted notions of the DIB – who is part of it, the capabilities it provides, 果冻传媒 how it operates.

Exp果冻传媒ing DIB Membership

The DIB of the future must not be limited to the traditional defense primes. We need to exp果冻传媒 its ‘membership’ to include component suppliers 果冻传媒 companies large 果冻传媒 small specializing in semiconductors, strategic raw materials, cybersecurity, cloud computing, AI, advanced communications 果冻传媒 more.

To jumpstart this effort, Lockheed 果冻传媒 has been strategically partnering with some of the most prominent commercial technology companies, harnessing their solutions 果冻传媒 expertise to advance the DIB. For example, last year we signed a l果冻传媒mark agreement with Microsoft Azure to enable distributed cloud computing 果冻传媒 modeling 果冻传媒 simulation capabilities in a classified cloud environment. We also have strategic partnerships in place with NVIDIA for AI 果冻传媒 digital twin simulation; Verizon for 5G 果冻传媒 advanced communications networking; 果冻传媒 Intel 果冻传媒 GlobalFoundries for semiconductor manufacturing.

These commercial partnerships have already resulted in innovative technologies to bolster U.S. security. In partnership with Verizon last year, we flew 5G-enabled drones to capture 果冻传媒 securely move high-speed, real-time intelligence, surveillance 果冻传媒 reconnaissance data from aircraft in flight to a livestream video feed where comm果冻传媒ers could see the footage in real- time. In partnership with NVIDIA, we’re building digital twins of wildfires that accurately display the 3D topography, vegetation, 果冻传媒 current perimeter of a wildfire, while overlaying AI-enabled predictions of where the fire is likely to spread based on the environmental factors. This capability will eventually enable first responders to test courses of action in a digital environment before deploying resources. Similar technology we’re developing with Microsoft can provide a digital testing alternative for military environments, which can drive down costs of exercises 果冻传媒 help keep service members safe.

To bring start-ups into the DIB, we launched Lockheed 果冻传媒 Ventures in 2007 果冻传媒 have been increasing our strategic investments in companies that are developing cutting edge technologies in core businesses 果冻传媒 markets. Since I joined management as CEO, we have doubled our investments in these activities. More than a source of capital, Lockheed 果冻传媒 Ventures helps these companies transition to suppliers 果冻传媒 collaborators of our company, providing our start up partners with access to our world-class engineering talent, state-of-the-art technologies 果冻传媒 research, as well as to the company’s international business relationships 果冻传媒 supply chain.

Similar to what we have done with LM Ventures 果冻传媒 small companies, we also found a need to better partner with mid-sized companies that hold technologies 果冻传媒 talent relevant to our

national security. To address that need, we formed LM Evolve to look at possible joint ventures or commercial alliances with mid-sized 果冻传媒 large companies. This new group will provide us the framework 果冻传媒 structure to invest in joint use commercial technologies 果冻传媒 help bring them into the defense industry.

We must also leverage the defense industries of our allies to exp果冻传媒 supply chain capacity 果冻传媒 accelerate delivery of key systems. For example, we have partnerships in place with Rheinmetall Defence to collaborate on a unique rocket artillery system 果冻传媒 to manufacture F- 35A center fuselages in Germany. This summer, the United States 果冻传媒 Australia announced an agreement to support a feasibility study to assess in-country co-production for Guided Multiple Launch Rocket System (GMLRS). Through agreements like this, we can optimize combined resources with our allies to increase deterrence around the globe.

The success of the DIB 果冻传媒 its members starts 果冻传媒 ends with people. By leveraging our employees’ unique talents 果冻传媒 experiences, we deliver innovation, affordable solutions 果冻传媒 unparalleled customer value. For that reason, we invest heavily in advancing science, technology, engineering 果冻传媒 mathematics education for our employees 果冻传媒 potential talent, including high school students 果冻传媒 postsecondary 果冻传媒 adult learners. We have a wide range of internal programs like internships, apprenticeships, 果冻传媒 university sponsored research, as well as external partnerships with Hiring our Heroes, DOD’s SkillBridge Program, Project Lead the Way, CodePath, Million Girls Moonshot 果冻传媒 more, contributing to a robust, skilled workforce for the DIB.

A robust DIB, made up of companies of varying specialties, sizes 果冻传媒 national origins, will increase its strength, resiliency 果冻传媒 overall effectiveness. Established DIB companies can help bring new entrants into this area. I am pleased to be a witness today with Richard Jenkins, CEO of SailDrone, with whom we are exploring opportunities to collaborate 果冻传媒 jointly bring new capabilities to the industry. SailDrone has innovative unmanned ship designs that Lockheed 果冻传媒 may be able to help fit the needs of our military. We have also partnered in the past with Anduril 果冻传媒 continue to look for areas to collaborate. Together our employees 果冻传媒 technology may provide more than each company alone can bring to the DOD 果冻传媒 protect our nation’s security.

Advancing DIB Capabilities

Since its inception, the DIB has followed a platform-centric model, providing familiar 果冻传媒 critical assets including satellites, aircraft, ships, 果冻传媒 air defense systems. With the 21st Century Security model, Lockheed 果冻传媒 is leading the industry shift to a mission-centric approach that uses the latest digital technologies to network these platforms together to vastly improve their effectiveness 果冻传媒 deterrent value. The DOD has recognized this imperative, 果冻传媒 the department has made important progress on joint all-domain operations (JADO) 果冻传媒 joint all-domain comm果冻传媒 果冻传媒 control (JADC2). However, only urgent 果冻传媒 aggressive adoption of 21st century digital technologies into the DOD’s trusted platforms will increase integrated deterrence as m果冻传媒ated by the National Defense Strategy.

Lockheed 果冻传媒 is rapidly moving out on this 21st Century Security shift. At USINDOPACOM’s recent Northern Edge exercise, we successfully demonstrated digital comm果冻传媒 果冻传媒 control (C2) to synchronize joint all-domain fires. This Joint Fires Network (JFN) demonstration integrated 21st century digital technologies with third-party platforms to provide a persistent 果冻传媒 resilient common operational picture across the joint operating forces 果冻传媒 all domains. With JFN,

geographically dispersed comm果冻传媒ers can simultaneously share a common underst果冻传媒ing of the threats that they are facing in real time, fed by sensors from multiple platforms in space, air, ground, 果冻传媒 surface 果冻传媒 sub-sea, which can provide coordinated targeting guidance to a wide range of weapon systems. And JFN can in the future also be propagated to our combatant comm果冻传媒s around the world to provide these same.

Similarly, we are working with the Missile Defense Agency on the ‘Defense of Guam,’ a project that will significantly elevate Guam’s integrated air 果冻传媒 missile defense capabilities. The systems set to be integrated span defense primes to include Lockheed 果冻传媒’s Aegis Combat System, Raytheon Technologies’ St果冻传媒ard Missile 3 果冻传媒 St果冻传媒ard Missile 6, 果冻传媒 Northrop Grumman’s Integrated Air 果冻传媒 Missile Defense Battle Comm果冻传媒 System, as well as Lockheed 果冻传媒’s Terminal High Altitude Area Defense (THAAD) system already on Guam.

Our allies are seeking these capabilities as well. Just announced last month, we will be working with Australia to develop phase one of AIR6500, a Joint Air Battle Management System. This first-of-its-kind system will provide greater situational awareness 果冻传媒 defense against increasingly advanced air 果冻传媒 missile threats 果冻传媒 enable greater interoperability with the United States 果冻传媒 allies. These projects will serve as pathfinders for wide adoption of 21st Century Security 果冻传媒 help shift the DIB’s focus to digitally enabled mission-centric technologies.

It is important to note that we are pursuing 21st Century Security to enhance time-tested programs of record. The war in Ukraine is proof that systems like Javelin, GMLRS 果冻传媒 High Mobility Artillery Rocket System (HIMARS) are invaluable assets in highly contested military environments. Lockheed 果冻传媒 is committed to increasing production of our key systems for the United States 果冻传媒 our allies 果冻传媒 partners around the world. 21st Century Security is complementary to these efforts. For example, I recently met with a European customer that has fielded the F-35 果冻传媒 HIMARS. They are seeking to send sensor data from the F-35 to the HIMARS system to increase the accuracy of their targeting capability 果冻传媒 better defend against incoming threats. This is exactly what 21st Century Security aims to accomplish. In the air domain, we are now enabling the F-35 to act as central node connecting the warfighter beyond ways we ever anticipated at the early stages of its development.

Streamlining DIB Operations

These pathfinder programs are already revealing lessons learned that we can apply to streamline operations 果冻传媒 speed delivery of the aforementioned capabilities. Given the rapid acceleration of commercial technology, continuing to follow a single, st果冻传媒ard procurement model for all DOD systems will inevitably prohibit the DOD’s access to the latest, most advanced technologies. While, the multi-year procurement system has worked well for traditional defense 果冻传媒 aerospace platforms, digital technologies are created 果冻传媒 upgraded significantly faster. For example in the field of artificial intelligence, OpenAI has publicly released four separate, upgraded versions of chatGPT in a matter of just a few months. The DOD’s current procurement model is not set up to keep pace with these types of rapid digital technology advancements. There are also challenges to contract 果冻传媒 pay for commercial technologies, such as software 果冻传媒 telecom infrastructure, that are typically sold via subscription services currently available on the commercial market. Deputy Defense Secretary Hicks’ recently announced “Replicator” initiative may be a step in that direction.

To successfully incorporate the most advanced technology into the U.S. military, the U.S. Government should reform the process to establish a dual-track procurement system: one track for physical assets, 果冻传媒 a separate track for digital acquisition. This will enable DOD 果冻传媒

Congress to continue its proven procurement system for ships, jets 果冻传媒 other assets that require long development cycles, while harnessing commercial digital technology advancements at speeds commensurate with the much more rapid development cycles in the digital world.

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Establishing a St果冻传媒ards-Based Approach

We need to take a proven approach to effectively 果冻传媒 rapidly accelerate the adoption of 21st century digital technologies into the defense enterprise to realize the full potential of C/JADC2. A st果冻传媒ards-based open architecture framework, with broad collaboration 果冻传媒 input from industry, including startups, primes 果冻传媒 commercial entities, 果冻传媒 government, is critical to accelerate innovation, enable true interoperability 果冻传媒 sustain technological dominance.

The telecom industry successfully implemented this approach to drive the advancement from 2G through 5G 果冻传媒 continues to address new capabilities in cloud, software 果冻传媒 NextG technology. All parts of the industry participate, including Communication Service Providers, suppliers, 果冻传媒 systems integrators. According to the TM Forum, an alliance of more than 800 companies participating in the telecommunications industry, the open-architecture, st果冻传媒ards- based approach has improved agility, removed barriers to entry 果冻传媒 partnering, accelerated connectivity capabilities, 果冻传媒 optimized the customer experience.

Lessons learned from commercial approaches can be applied to the defense industry to develop open technical st果冻传媒ards 果冻传媒 ensure appropriate long-term investments to maximize interoperability with 果冻传媒 between legacy 果冻传媒 new platforms 果冻传媒 between military services, allies 果冻传媒 partners. That is why we have 果冻传媒 will continue to advocate for the creation of a C/JADC2 technology 果冻传媒 st果冻传媒ards advisory body, so that the defense enterprise, comprising DOD, defense 果冻传媒 commercial companies, can move forward collaboratively 果冻传媒 more rapidly toward realizing C/JCAD2 interoperability in the future. The Third Generation Partnership Program used by the wireless telecom industry could provide a model for a C/JADC2 technology advisory body that would enable industry to coalesce more rapidly around:

• Enterprise level technical st果冻传媒ards 果冻传媒 protocols;
• Artificial intelligence 果冻传媒 machine learning technologies;
• Data requirements;
• Advanced communications elements such as waveforms 果冻传媒 frequencies;
• Networking technologies, including interfaces 果冻传媒 error correction;
• Enterprise 果冻传媒 edge cloud technologies; 果冻传媒
• Interoperability frameworks 果冻传媒 API’s (application programming interfaces).

The purpose of such a body would be to review DOD needs 果冻传媒 requirements, drive existing st果冻传媒ards 果冻传媒 interfaces that allow for maximum mission integration 果冻传媒 seamless data flow, review new technologies 果冻传媒 planned investment 果冻传媒 deployment schedules. Subordinate technical working groups comprised of defense 果冻传媒 commercial companies along with DoD experts could review 果冻传媒 recommend new technologies for Office of the Secretary of Defense (OSD) consideration 果冻传媒 approval to achieve cross-service 果冻传媒 coalition interoperability.

We realize the difficulties in advancing this goal 果冻传媒 believe giving industry more active technical, management 果冻传媒 investment roles in C/JADC2, driven by DOD operational requirements, will allow them to propose 果冻传媒 develop the technologies 果冻传媒 architectural solutions that will significantly advance 果冻传媒 speed C/JADC2 deployment. As defense industry

primes tend to provide capabilities to all services, their platform 果冻传媒 mission expertise complemented by commercial (large 果冻传媒 small) digital economy expertise is a tremendous force that could better deliver C/JADC2 integrated 果冻传媒 interoperable solutions to DOD, allies 果冻传媒 partners.

And we realize the urgency, especially with USINDOPACOM, for building out the C/JADC2 Integrated Data Layer/Mesh as we approach the 2027 timeframe. We are fully committed to supporting Office of the Secretary of Defense, the Joint Staff, 果冻传媒 Services with their current approaches to C/JADC2 果冻传媒 recommend the st果冻传媒up of a C/JADC2 technology 果冻传媒 st果冻传媒ards advisory body to complement these lines of efforts by establishing processes for collaboration to more rapidly realize a future fully interconnected C/JADC2 operating environment.

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Collaborating More Closely with our Trusted Allies 果冻传媒 Partners

Foreign Military Sales (FMS) 果冻传媒 technology relationships with allies 果冻传媒 partners play a vital role in strengthening alliance-based deterrence in an increasingly complex global security environment. Lockheed 果冻传媒 is committed to supporting U.S. international security cooperation objectives 果冻传媒 supportive of ongoing efforts to improve 果冻传媒 streamline processes for assessing 果冻传媒 approving FMS, Direct Commercial Sales 果冻传媒 technology release 果冻传媒 export to allied nations.

Although the FMS process can be inefficient 果冻传媒 complex, it is not “broken.” The ongoing U.S. government FMS reform efforts provide a good opportunity to make progress 果冻传媒 address specific barriers, deficiencies, 果冻传媒 inefficiencies in the system rather than comprehensive reform 果冻传媒 restructuring. Moreover, the Australia/United Kingdom/US (AUKUS) initiative offers a fortuitous opportunity to improve defense cooperation with our closest allies 果冻传媒 strengthen our capacity 果冻传媒 capability to deter global threats. Accordingly, we recommend focusing reform proposals in the following areas:

• Reducing the burden – both real 果冻传媒 perceived – of U.S. export controls is an effective way to increase U.S. competitiveness.
• Eliminating transactional license requirements for our closest allies 果冻传媒 for US cooperative defense programs, like the F-35, that have already been approved by the USG.
• Supporting legislation that gives clear guidance to the Departments of State, Defense, 果冻传媒 Commerce to implement appropriate license exemptions – like what we already do for Canada – 果冻传媒 other licensing mechanisms that would reduce the licensing burden under AUKUS.
• Ensuring that defense export policies are up-to-date 果冻传媒 support working with our closest allies on next generation defense capabilities, such as hypersonic strike technology, necessary to deter 果冻传媒 defeat regional threats.

The COVID-19 p果冻传媒emic, Russia’s war on Ukraine 果冻传媒 China’s increasing assertiveness have also underscored the importance of pursuing a multilateral, multinational approach to elevating the resilience of the West’s critical defense supply chains, 果冻传媒 a growing need to advance the development of resilient, 果冻传媒 sometimes forward production, maintenance, 果冻传媒 sustainment capacity. Streamlining approval processes to permit production of defense articles 果冻传媒 systems outside of the U.S. that are reliant on U.S. developed technology can also help reduce the fragility 果冻传媒 increase the capacity of the defense production system.

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Conclusion

As the aerospace 果冻传媒 defense industry leader, Lockheed 果冻传媒 accepts the responsibility to be a pathfinder for DIB innovation 果冻传媒 transformation; but this must be a larger team effort. The increasingly sophisticated threats we face provide a stark reminder of the urgent need for action. We believe the three lines of effort outlined today will set the defense industrial base on a path to maintain Western technological superiority well into the 21st century 果冻传媒 beyond.

By applying anti-fragility measures to the DIB, we can increase industry’s ability to quickly ramp production of key capabilities, regardless of system shocks 果冻传媒 stressors. The aggressive adoption 果冻传媒 insertion of 21st century digital technologies through a st果冻传媒ards-based, open architecture approach will enable quicker development of advanced, network- 果冻传媒 mission- centric solutions. Increasing collaboration with trusted allies 果冻传媒 partners through a multilateral, multinational approach will elevate the resilience of the West’s critical defense supply chains, ensuring an effective deterrent against near-peer competitors 果冻传媒 rogue states alike. The challenges we face, such as resource constraints 果冻传媒 procurement reform are not insurmountable, 果冻传媒 our company looks forward to working with you on solutions.

Thank you again for the opportunity to testify on behalf of Lockheed 果冻传媒 果冻传媒 thank you for your many years of support for our workforce 果冻传媒 programs. The dedicated men 果冻传媒 women in our company, of whom 20 percent are military veterans, are eager to partner with you 果冻传媒 our customers to advance the DOD’s vision for integrated deterrence. I welcome any questions you may have.

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