WEBVTT - Army Secretary Daniel Driscoll Talks Military Test Ranges

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio news. This is a really

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<v Speaker 1>big deal. It was a couple of months ago I

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<v Speaker 1>was out at one of our test ranges, and what

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<v Speaker 1>I heard was that industry on average was having to

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<v Speaker 1>wait between twelve and eighteen months sometimes from the moment

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<v Speaker 1>they wanted to get on our test range until we

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<v Speaker 1>could give them access. And fundamentally, the problem with this

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<v Speaker 1>is if you think of these innovative companies, if you

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<v Speaker 1>think of the primes, everyone needs to be able to

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<v Speaker 1>test their product and they need to be able to

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<v Speaker 1>learn from that, and the innovation loop that comes from

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<v Speaker 1>actually using your thing in the real world is makes

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<v Speaker 1>all the difference. And so when we slow things down

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<v Speaker 1>in the innovation loop by twelve or eighteen months at

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<v Speaker 1>a time, that is just bad for soldiers, it's bad

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<v Speaker 1>for taxpayers, and it's bad for companies. And so what

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<v Speaker 1>we're announcing today is basically a new front door to

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<v Speaker 1>access all of the US Armies or many of the

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<v Speaker 1>US Armies ranges were layering into international partners. We're going

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<v Speaker 1>to give concierge access and we are going to aspire

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<v Speaker 1>to get these companies onto our range within thirty days.

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<v Speaker 1>Every single time.

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<v Speaker 2>So then after they're on that range, I think a

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<v Speaker 2>lot of these companies are probably wondering how quickly can

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<v Speaker 2>they get into business with the US Army? If you

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<v Speaker 2>like what you see, how do those purchases.

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<v Speaker 1>Work from there?

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<v Speaker 2>What sort of timeline are you eyeing for that?

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<v Speaker 1>So under President Trump, what we've been able to do

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<v Speaker 1>is we've been able to reallocate dollars we already had,

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<v Speaker 1>and so we created almost a seven hundred and fifty

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<v Speaker 1>million dollar venturelike model that has allowed us to get

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<v Speaker 1>industry on contracts sometimes in under thirty days. That is unbelievable.

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<v Speaker 1>I mean, I think if you looked historically, the fastest

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<v Speaker 1>time I had heard anyone ever referenced was like nine months,

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<v Speaker 1>but on average it could be up to two years sometimes.

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<v Speaker 1>And so our commitment to industry is we know that

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<v Speaker 1>they need dollars from the US Army in order to

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<v Speaker 1>continue their innovation. We know that if we're asking them

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<v Speaker 1>to come out and spend time with soldiers, get their

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<v Speaker 1>products in the dirt and the mud, and to innovate,

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<v Speaker 1>we have got to be there for them on the

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<v Speaker 1>other side with actual hard dollars.

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<v Speaker 2>How are current conflicts highlighting the need for initiatives like

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<v Speaker 2>this and for the US Army to scale. Is there

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<v Speaker 2>a new urgency here?

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<v Speaker 1>I think if you look at what's occurring in Ukraine,

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<v Speaker 1>they have this existential risk to their nation that allows

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<v Speaker 1>them to innovate very quickly. You would never want to

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<v Speaker 1>have that risk as a nation. So what we're trying

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<v Speaker 1>to do is synthetically create the conditions for innovation that

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<v Speaker 1>can get as close to matching that environment as possible.

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<v Speaker 1>And so one of the things we're doing here at

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<v Speaker 1>Camp Gradling at September is we're creating an electronic warfare

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<v Speaker 1>in a ew environment that is as close to what

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<v Speaker 1>Ukraine has as we can create. We're inviting in small, medium,

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<v Speaker 1>and large businesses from across our country. We're having soldiers

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<v Speaker 1>come down. We are trying to empower these incredible American

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<v Speaker 1>innovators to do what they do best, which is to

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<v Speaker 1>outinnovate the rest of the world.

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<v Speaker 2>So the Army lives off of annual budgets, right, how

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<v Speaker 2>do you ensure that you're able to scale and grow

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<v Speaker 2>initiatives like this? And what is I think it's fair

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<v Speaker 2>to say pretty unpredictable funding cycle and how much weight

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<v Speaker 2>maybe does that put on the sixty seven billion dollar

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<v Speaker 2>fundamental supplemental package in terms of what the Army needs

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<v Speaker 2>to get done.

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<v Speaker 1>So, the quirk of the design of our democratic form

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<v Speaker 1>of government is our funding is annual. It is oftentimes

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<v Speaker 1>continuing resolutions, which means we can't do new starts on

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<v Speaker 1>our spending and that is full stop bad for soldiers,

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<v Speaker 1>that is bad for our national security, and we must

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<v Speaker 1>as a nation fix it. That being said, what we

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<v Speaker 1>have tried to do is just accept that that has

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<v Speaker 1>been the reality. I think eighteen of the last twenty

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<v Speaker 1>one years we've had continuing resolutions. And so what the

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<v Speaker 1>United States Army has been trying to do under Secretary

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<v Speaker 1>of Hexcess leadership is innovate as fast as humanly possible

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<v Speaker 1>with what we do have. And we feel very good

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<v Speaker 1>that working with Congress and Senate and consolidating down some

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<v Speaker 1>of our budget line items, we are getting more flexibility

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<v Speaker 1>than we have had in the last couple of years,

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<v Speaker 1>not as much as we had a couple of decades ago,

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<v Speaker 1>and we are taking that and earning back the trust

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<v Speaker 1>of Congress to give us even more going forward.

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<v Speaker 2>But is that putting any more weight on the supplemental

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<v Speaker 2>funding request the sixty seven billion dollars.

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<v Speaker 1>I think we need the supplemental, we need the reconciliation,

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<v Speaker 1>and we need the budget to be passed on time

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<v Speaker 1>that will lead to the most secure country that the

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<v Speaker 1>United States Army can possibly give it.

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<v Speaker 2>So today is a lot about these low cost interceptors, drones,

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<v Speaker 2>counter drones. Can you talk to me about how you

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<v Speaker 2>assess what that mix should look like when it comes

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<v Speaker 2>to the higher end interceptors in US stockpiles.

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<v Speaker 1>So one of the big takeaways from Ukraine is the

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<v Speaker 1>very first thing you must do is create a data layer.

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<v Speaker 1>And what you want in your data layer is you

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<v Speaker 1>want as many sensors and radars as humanly possible, and

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<v Speaker 1>you want them to be able to fuse into tracks

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<v Speaker 1>and so practically what that means is you want to

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<v Speaker 1>be able to give yourself and your allies as much

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<v Speaker 1>warning as humanly possible. And so with the United States

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<v Speaker 1>Army has been focused on in the last couple of

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<v Speaker 1>months is what we're calling Operation jail Break, which is

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<v Speaker 1>basically we have said we are no longer going to

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<v Speaker 1>allow any sensor, any rate, or any piece of equipment

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<v Speaker 1>that we own to have data that is siloed. All

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<v Speaker 1>of it is getting broken out, and all of it,

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<v Speaker 1>through APIs and SDKs is going to be able to

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<v Speaker 1>share the data and receive data or actions. That is

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<v Speaker 1>step one. Every new thing we're buying is already open source,

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<v Speaker 1>so we're good. So once we have this data layer,

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<v Speaker 1>and anywhere American soldiers exist, we want that data layer

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<v Speaker 1>to be as robust as humilily possible. The next step

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<v Speaker 1>is to layer in effectors or interceptors, and you want

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<v Speaker 1>as wide of a range of options as possible. On

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<v Speaker 1>the cheapest, lowest side, you want a fifty col round

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<v Speaker 1>that might cost a dollar, and you want to be

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<v Speaker 1>able to shoot that at something that's really close. So

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<v Speaker 1>on the highest end, you might want to pack three

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<v Speaker 1>that's now four point two million dollars or four point

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<v Speaker 1>four million dollars a shot. The key to defense, and

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<v Speaker 1>this layered concept is you want as many options as

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<v Speaker 1>humanly possible, all tied into an agentic solution with a

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<v Speaker 1>human in the loop that can choose between the right

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<v Speaker 1>option at any given moment. And so the answer is

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<v Speaker 1>actually there's no one perfect answer. Variability is the key

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<v Speaker 1>to success for conflict going forward.

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<v Speaker 2>In the final minute, that I have you how much

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<v Speaker 2>will initiatives like today compress timelines. Can you give us

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<v Speaker 2>any context on how many years you're looking at when

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<v Speaker 2>it comes to the army building up the stock piles.

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<v Speaker 1>So I think if you take the math of what

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<v Speaker 1>we believe for a lot of these most exquisite interceptors

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<v Speaker 1>and most exquisite offensive weapons, if it was taking twelve

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<v Speaker 1>to eighteen months each time to come to the range,

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<v Speaker 1>and we're consolidating that down to I am saying guarantee,

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<v Speaker 1>but I don't mean we will pay if we miss.

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<v Speaker 1>But that is what we will hold ourselves publicly accountable.

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<v Speaker 1>If you can get to the range every thirty days,

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<v Speaker 1>what we hope to do is cut out at least

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<v Speaker 1>a third of the R and D time, which will

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<v Speaker 1>make a huge difference for soldiers.