1 00:00:00,240 --> 00:00:01,150 This is good . 2 00:00:05,140 --> 00:00:06,973 Okay . Good morning , ladies and 3 00:00:06,973 --> 00:00:09,140 gentlemen . Thanks for being here this 4 00:00:09,140 --> 00:00:11,610 morning . Those in person and those 5 00:00:11,620 --> 00:00:14,430 virtually on the phone and watching 6 00:00:14,430 --> 00:00:16,652 online this morning . Undersecretary of 7 00:00:16,652 --> 00:00:18,763 Defense Ellen Lord is here to provide 8 00:00:18,763 --> 00:00:20,708 an update on how the department is 9 00:00:20,708 --> 00:00:22,763 supporting the interagency effort to 10 00:00:22,763 --> 00:00:24,819 partner with the defense industry to 11 00:00:24,819 --> 00:00:26,986 mitigate Cove it 19 impacts to provide 12 00:00:26,986 --> 00:00:29,208 an opening statement . And then we will 13 00:00:29,208 --> 00:00:31,097 go into Q and a using the list of 14 00:00:31,097 --> 00:00:33,152 reporters that I have in the room as 15 00:00:33,152 --> 00:00:32,980 well as that was styled in ma'am over 16 00:00:32,980 --> 00:00:34,970 to you . Thank you , Mike . Good 17 00:00:34,970 --> 00:00:37,192 morning , ladies and gentlemen . And we 18 00:00:37,192 --> 00:00:39,520 really appreciate you joining us today 19 00:00:39,520 --> 00:00:41,409 for an update on the department's 20 00:00:41,409 --> 00:00:43,750 continued efforts to mitigate impacts 21 00:00:43,750 --> 00:00:47,380 from Cove in 19 . I want to start by 22 00:00:47,390 --> 00:00:50,210 offering my sincere it sincerest 23 00:00:50,210 --> 00:00:53,400 condolences to the families of the 27 . 24 00:00:53,410 --> 00:00:56,900 We have lost a d o d to Cove in 19 . 25 00:00:58,140 --> 00:01:01,140 As Secretary Esper has consistently 26 00:01:01,140 --> 00:01:04,270 said since January are top priorities 27 00:01:04,270 --> 00:01:06,770 remain protecting our three million 28 00:01:06,770 --> 00:01:09,370 service members , their families and 29 00:01:09,380 --> 00:01:11,560 all of our government civilians and 30 00:01:11,560 --> 00:01:14,550 defense contractor personnel , while 31 00:01:14,550 --> 00:01:16,410 continuing our national security 32 00:01:16,410 --> 00:01:18,500 missions and helping the American 33 00:01:18,500 --> 00:01:22,120 people confront this crisis . Today , 34 00:01:22,130 --> 00:01:24,940 more than 60,000 service members , 35 00:01:25,170 --> 00:01:28,130 including 44,000 National Guardsmen , 36 00:01:28,470 --> 00:01:32,280 5000 reservists and 4000 healthcare 37 00:01:32,280 --> 00:01:34,390 professionals representing all 38 00:01:34,390 --> 00:01:36,680 components are currently deployed 39 00:01:36,680 --> 00:01:39,680 across the United States . We honor 40 00:01:39,800 --> 00:01:42,370 their continued sacrifice and selfless 41 00:01:42,370 --> 00:01:44,990 service to protect the American people . 42 00:01:45,810 --> 00:01:47,870 The department , particularly the 43 00:01:47,870 --> 00:01:50,710 Defense Logistics Agency or D L . A , 44 00:01:51,000 --> 00:01:53,190 is continuing to closely coordinate 45 00:01:53,190 --> 00:01:55,110 with the military services toe 46 00:01:55,120 --> 00:01:57,500 understand requirements and priorities 47 00:01:57,650 --> 00:02:01,060 to protect the force specifically , to 48 00:02:01,060 --> 00:02:03,460 protect the force , de L . A has 49 00:02:03,460 --> 00:02:07,100 procured over 5.9 million N 50 00:02:07,100 --> 00:02:09,430 95 respirator masks , 51 00:02:10,140 --> 00:02:13,600 14.2 billion non medical and 52 00:02:13,600 --> 00:02:17,180 surgical masts , 92.2 53 00:02:17,180 --> 00:02:21,090 million exam gloves , 2.4 million 54 00:02:21,100 --> 00:02:24,930 isolation and surgical gowns , and 8000 55 00:02:24,930 --> 00:02:28,760 ventilators . Delivery of over five 56 00:02:28,770 --> 00:02:32,010 million nonmedical cloth face coverings 57 00:02:32,190 --> 00:02:34,600 toe our military services combatant 58 00:02:34,600 --> 00:02:37,540 commands . U S Coast Guard and several 59 00:02:37,540 --> 00:02:41,240 federal agencies has begun the Defense 60 00:02:41,250 --> 00:02:43,472 Threat Reduction Agency , or Dittrich , 61 00:02:43,720 --> 00:02:46,430 and the Joint Rap Rapid Acquisition 62 00:02:46,430 --> 00:02:48,860 Cell or the J . Iraq continued a 63 00:02:48,860 --> 00:02:52,060 partner with the Joint Staff Transcom 64 00:02:52,070 --> 00:02:54,910 and the Air Force to execute a joint 65 00:02:54,920 --> 00:02:58,360 urgent operational need to safely 66 00:02:58,360 --> 00:03:00,950 transport Cove in 19 patients from 67 00:03:00,960 --> 00:03:03,900 overseas locations to the United States . 68 00:03:04,070 --> 00:03:06,610 We're fully committed to the safety of 69 00:03:06,610 --> 00:03:09,330 our aircrew medical support staff and 70 00:03:09,330 --> 00:03:11,380 patients drawing these missions . 71 00:03:12,510 --> 00:03:15,050 Currently , the Air Force employs the 72 00:03:15,050 --> 00:03:17,570 transportation isolation system 73 00:03:17,850 --> 00:03:20,430 developed by Detroit during the Ebola 74 00:03:20,430 --> 00:03:24,200 outbreak in 2014 which allows 75 00:03:24,210 --> 00:03:26,890 eight or so patients to be safely 76 00:03:26,890 --> 00:03:29,830 transported . The new technology will 77 00:03:29,830 --> 00:03:32,470 enable air transport of significantly 78 00:03:32,470 --> 00:03:35,350 more patients in isolation , bringing 79 00:03:35,350 --> 00:03:37,850 greater responsiveness to those in need . 80 00:03:39,340 --> 00:03:42,000 D . O d remains closely partnered with 81 00:03:42,000 --> 00:03:45,220 FEMA and H H s , providing all made 82 00:03:45,230 --> 00:03:48,880 almost $800 million in lifesaving 83 00:03:48,880 --> 00:03:51,170 supplies and equipment to service 84 00:03:51,170 --> 00:03:53,430 members and federal agencies in the 85 00:03:53,430 --> 00:03:55,541 nation's whole of government approach 86 00:03:55,541 --> 00:03:59,420 to the Corona virus pandemic . Moving 87 00:03:59,420 --> 00:04:01,620 to the defense Industrial base , we 88 00:04:01,620 --> 00:04:03,787 continue to carefully and methodically 89 00:04:03,787 --> 00:04:06,410 track the state of the dib through 90 00:04:06,590 --> 00:04:08,860 Defense Contracting Management Agency , 91 00:04:08,860 --> 00:04:11,780 or DCM A and D L . A . Who both 92 00:04:11,790 --> 00:04:14,600 produced daily reports documenting 93 00:04:14,830 --> 00:04:17,510 operational status . Out of the 94 00:04:17,510 --> 00:04:21,370 10,509 companies , DCM A Tracks 95 00:04:21,680 --> 00:04:25,550 93 or closed down 13 from last week , 96 00:04:26,310 --> 00:04:30,190 with 141 companies having closed and 97 00:04:30,190 --> 00:04:33,820 re opened up very significantly , 73 98 00:04:33,830 --> 00:04:36,810 from last week's number of 68 . This is 99 00:04:36,810 --> 00:04:40,150 the first time we have seen re opening 100 00:04:40,150 --> 00:04:42,670 numbers larger than the number of 101 00:04:42,680 --> 00:04:44,800 closures out of the 102 00:04:44,800 --> 00:04:48,670 11,413 companies . Delay tracks 103 00:04:48,890 --> 00:04:52,710 437 or closed with 237 104 00:04:52,710 --> 00:04:55,390 having closed and reopened up almost 105 00:04:55,390 --> 00:04:57,420 100 companies from last week . 106 00:04:58,240 --> 00:05:00,510 Domestically . While we have seen some 107 00:05:00,510 --> 00:05:02,950 minor improvements , we continue to see 108 00:05:02,950 --> 00:05:05,440 the greatest impacts in the aviation 109 00:05:05,440 --> 00:05:08,170 supply chain shipbuilding and small 110 00:05:08,170 --> 00:05:11,170 space launch . Last week , I spoke 111 00:05:11,170 --> 00:05:13,170 about the impacts on the industrial 112 00:05:13,170 --> 00:05:15,530 base by several international pockets 113 00:05:15,530 --> 00:05:19,470 of closure on Mexico . While I won't 114 00:05:19,480 --> 00:05:21,670 provide any numbers , we have seen 115 00:05:21,670 --> 00:05:24,290 positive results . I am thankful to our 116 00:05:24,290 --> 00:05:26,800 U S ambassador in Mexico and to the 117 00:05:26,800 --> 00:05:28,990 government of Mexico who has taken 118 00:05:28,990 --> 00:05:31,990 great strides to evaluate firms and 119 00:05:31,990 --> 00:05:34,290 their contribution to U . S national 120 00:05:34,290 --> 00:05:37,240 security requirements . I have ongoing 121 00:05:37,240 --> 00:05:39,370 conversations with our U S ambassador 122 00:05:39,370 --> 00:05:42,940 to Mexico , US corporate CEOs , 123 00:05:43,250 --> 00:05:45,740 members of the House and Senate as well 124 00:05:45,740 --> 00:05:47,518 as other officials in the State 125 00:05:47,518 --> 00:05:49,860 Department over the past two weeks , 126 00:05:50,050 --> 00:05:51,780 toe highlight key companies 127 00:05:51,860 --> 00:05:54,090 constraining our domestic defence 128 00:05:54,090 --> 00:05:57,120 supply chain in order to catalyze re 129 00:05:57,120 --> 00:05:59,490 openings in Mexico . We appreciate 130 00:05:59,490 --> 00:06:02,190 Mexico's ongoing positive response . 131 00:06:02,840 --> 00:06:05,450 We're also watching India very closely . 132 00:06:05,770 --> 00:06:07,630 India has mandated closure of 133 00:06:07,640 --> 00:06:09,990 businesses which is impacting defense 134 00:06:09,990 --> 00:06:12,310 sector primes . India is a major 135 00:06:12,310 --> 00:06:14,570 defence partner and we hope they can 136 00:06:14,570 --> 00:06:17,080 all stay safe while transitioning back 137 00:06:17,220 --> 00:06:20,130 toe on operational status . Our 138 00:06:20,140 --> 00:06:22,040 acquisition and sustainment team 139 00:06:22,050 --> 00:06:23,994 remains focused on partnering with 140 00:06:23,994 --> 00:06:27,260 industry to maintain readiness and Dr 141 00:06:27,380 --> 00:06:30,370 Modernization . Gen . Santos and our 142 00:06:30,370 --> 00:06:33,210 Industrial Policy team continue to lead 143 00:06:33,210 --> 00:06:36,390 multiple industry calls every week with 144 00:06:36,400 --> 00:06:40,310 18 industrial associations . I am proud 145 00:06:40,310 --> 00:06:42,730 of the department's responsiveness in 146 00:06:42,730 --> 00:06:45,220 addressing defense industry concerns 147 00:06:45,510 --> 00:06:47,750 that are outlined during these calls . 148 00:06:48,510 --> 00:06:50,480 Mr . Kim Harrington , director of 149 00:06:50,490 --> 00:06:53,030 defense pricing and contracting , has 150 00:06:53,040 --> 00:06:55,860 issued 22 defense pricing and costs 151 00:06:55,860 --> 00:06:58,570 memos aggressively responding to 152 00:06:58,580 --> 00:07:01,980 industry needs and impacts . The memos 153 00:07:01,980 --> 00:07:03,702 include guidance for increased 154 00:07:03,702 --> 00:07:06,020 telecommuting , increased progress 155 00:07:06,020 --> 00:07:08,640 payment rates , acquisition timeline 156 00:07:08,650 --> 00:07:11,220 impacts , reimbursement for those 157 00:07:11,220 --> 00:07:15,060 prevented from working and MAWR . An 158 00:07:15,070 --> 00:07:18,210 update on the $3 billion of increased 159 00:07:18,210 --> 00:07:20,810 cash flow due to increasing or 160 00:07:20,810 --> 00:07:24,030 increased progress payment rates . This 161 00:07:24,030 --> 00:07:27,790 week we processed over $1.2 162 00:07:27,790 --> 00:07:30,360 billion in invoices at the higher 163 00:07:30,360 --> 00:07:32,950 progress payment rate . We have spoken 164 00:07:32,950 --> 00:07:35,320 with each of our major prime companies 165 00:07:35,380 --> 00:07:37,850 and they have each confirmed their 166 00:07:37,850 --> 00:07:40,390 detailed plans toe work with their 167 00:07:40,390 --> 00:07:42,890 supply chains to accelerate payments 168 00:07:43,040 --> 00:07:45,300 and to identify distressed companies 169 00:07:45,300 --> 00:07:47,850 and small businesses . I want to 170 00:07:47,850 --> 00:07:50,017 particularly commend Lockheed Martin , 171 00:07:50,017 --> 00:07:52,840 who publicly committed toe accelerating 172 00:07:52,840 --> 00:07:56,650 $450 million to their supply chain , 173 00:07:57,040 --> 00:08:00,110 again focusing on distressed and small 174 00:08:00,110 --> 00:08:03,100 businesses who need it most . The 175 00:08:03,100 --> 00:08:05,230 department's Office of Small Business 176 00:08:05,230 --> 00:08:07,870 Programs continues to aggressively 177 00:08:07,870 --> 00:08:11,580 partner and engage Amy Murray's team 178 00:08:11,590 --> 00:08:14,310 hosted two business Webinars earlier 179 00:08:14,310 --> 00:08:16,620 this month that focused on available 180 00:08:16,620 --> 00:08:19,010 relief efforts and cybersecurity . 181 00:08:19,630 --> 00:08:22,390 Yesterday she held a foreign investment , 182 00:08:22,390 --> 00:08:25,610 Webinar , attended by 300 companies to 183 00:08:25,610 --> 00:08:28,160 help inform small businesses about 184 00:08:28,170 --> 00:08:30,300 adversarial foreign investment 185 00:08:30,790 --> 00:08:33,010 regulations in place to counter that 186 00:08:33,020 --> 00:08:35,700 capital and the tools available to 187 00:08:35,710 --> 00:08:38,250 industry to help protect themselves , 188 00:08:39,340 --> 00:08:42,030 we see positive results off the Small 189 00:08:42,030 --> 00:08:43,974 Business Administration's industry 190 00:08:43,974 --> 00:08:46,930 relief efforts . Over 350 billion and 191 00:08:46,940 --> 00:08:48,940 allocated funds have been loaned to 192 00:08:48,940 --> 00:08:51,300 small businesses across the country on 193 00:08:51,300 --> 00:08:53,760 While we don't have the exact breakdown 194 00:08:53,770 --> 00:08:56,210 of business industries , I know that a 195 00:08:56,210 --> 00:08:58,730 significant portion went to companies 196 00:08:58,740 --> 00:09:00,980 in the defense sector and that we will 197 00:09:00,980 --> 00:09:03,760 continue to see innovation from this 198 00:09:03,760 --> 00:09:07,020 critical group of businesses . As you 199 00:09:07,020 --> 00:09:10,160 know , an additional $310 billion in 200 00:09:10,160 --> 00:09:12,580 funds were released Monday morning as 201 00:09:12,580 --> 00:09:14,690 part of the small business bill . I 202 00:09:14,690 --> 00:09:17,970 encourage our small defense businesses 203 00:09:18,400 --> 00:09:22,300 to reach out and apply if needed . If 204 00:09:22,300 --> 00:09:24,380 you are a small business , who needs 205 00:09:24,380 --> 00:09:28,000 help , please reach out to Amy and our 206 00:09:28,000 --> 00:09:30,570 team . She has personally helped 207 00:09:30,580 --> 00:09:33,770 connect multiple companies with banks 208 00:09:33,770 --> 00:09:36,990 willing to provide loans . Lastly , on 209 00:09:36,990 --> 00:09:39,110 the dib , we continue to assess the 210 00:09:39,110 --> 00:09:42,490 impact of a potential three months slow 211 00:09:42,490 --> 00:09:45,400 down too many programs due to Cove in 212 00:09:45,400 --> 00:09:49,230 19 . I intentionally used the words 213 00:09:49,240 --> 00:09:52,940 slowdown and impact , and I am not 214 00:09:52,940 --> 00:09:55,840 saying the word delay , which carries a 215 00:09:55,840 --> 00:09:58,870 very different connotation . I won't 216 00:09:58,870 --> 00:10:01,710 discuss any program specifically , but 217 00:10:01,710 --> 00:10:04,130 we have seen inefficiencies across many 218 00:10:04,130 --> 00:10:07,530 programs . Cove in 19 is temporarily 219 00:10:07,530 --> 00:10:09,920 shutting down defense manufacturing 220 00:10:09,920 --> 00:10:12,190 facilities and production lines , 221 00:10:12,580 --> 00:10:14,730 disrupting supply chains and 222 00:10:14,730 --> 00:10:17,740 distressing the financial stability of 223 00:10:17,740 --> 00:10:20,740 the company's D . O . D . Relies on to 224 00:10:20,740 --> 00:10:24,270 protect the nation D . O . D continues 225 00:10:24,270 --> 00:10:27,070 to partner with industry . To do 226 00:10:27,080 --> 00:10:29,940 everything possible to keep programs on 227 00:10:29,940 --> 00:10:32,560 schedule and to minimize the cost and 228 00:10:32,560 --> 00:10:35,240 schedule impacts . This is obviously a 229 00:10:35,240 --> 00:10:37,840 dynamic situation , and the overall 230 00:10:37,850 --> 00:10:39,890 impacts are being assessed on an 231 00:10:39,890 --> 00:10:43,420 ongoing basis . I stress that we 232 00:10:43,430 --> 00:10:46,920 expect our defense industrial base to 233 00:10:46,920 --> 00:10:50,210 follow CDC guidelines for worker safety . 234 00:10:51,840 --> 00:10:54,700 I remain very proud of D . L . A D . C . 235 00:10:54,700 --> 00:10:56,990 M . A . The Defense Threat Reduction 236 00:10:56,990 --> 00:10:59,090 Agency , Dutra , the Defense 237 00:10:59,100 --> 00:11:01,940 Acquisition , University de AU and the 238 00:11:01,940 --> 00:11:04,510 Joint Acquisition Task Force , or Jad 239 00:11:04,510 --> 00:11:06,620 If , and the entire department's 240 00:11:06,630 --> 00:11:08,690 efforts to support the whole of 241 00:11:08,700 --> 00:11:11,160 government . An interagency battle 242 00:11:11,170 --> 00:11:14,970 against Cove in 19 weather in uniform 243 00:11:15,240 --> 00:11:18,230 or as civilians were all joined in the 244 00:11:18,230 --> 00:11:21,830 fight against Cove in 19 the JAT , if 245 00:11:21,830 --> 00:11:24,560 serves as our overarching framework for 246 00:11:24,570 --> 00:11:26,800 acquisition support to the whole of 247 00:11:26,810 --> 00:11:28,921 government efforts under the National 248 00:11:28,921 --> 00:11:32,340 Response Coordination Centre , or NRCC , 249 00:11:32,740 --> 00:11:35,310 up to the White House led the White 250 00:11:35,310 --> 00:11:37,430 House task force led by the vice 251 00:11:37,430 --> 00:11:40,780 president . While HHS and FEMA have 252 00:11:40,790 --> 00:11:43,000 both the field infrastructure and 253 00:11:43,000 --> 00:11:45,290 medical knowledge toe lead Our Nations 254 00:11:45,290 --> 00:11:48,630 Cove in 19 efforts , D . O . D . Brings 255 00:11:48,630 --> 00:11:50,890 the breath and depth of acquisition 256 00:11:50,890 --> 00:11:54,530 expertise toe underpin the interagency 257 00:11:54,760 --> 00:11:56,930 to contract and provide program 258 00:11:56,930 --> 00:11:59,080 management . And industrial expansion 259 00:11:59,090 --> 00:12:02,340 for health and medical Resource is , I 260 00:12:02,340 --> 00:12:04,451 want to give you insight into how the 261 00:12:04,451 --> 00:12:07,530 Jad if is organized and focused . Stacy 262 00:12:07,530 --> 00:12:10,310 Cummings as the JAT . If director works 263 00:12:10,310 --> 00:12:12,850 with all the service agency and joint 264 00:12:12,850 --> 00:12:15,190 staff , Jad if Leeds and has both 265 00:12:15,200 --> 00:12:18,080 functional and product leads the JAT . 266 00:12:18,080 --> 00:12:22,050 If product lines are ventilators and 95 267 00:12:22,060 --> 00:12:25,200 masks , screening and diagnostics , 268 00:12:25,560 --> 00:12:29,300 PPE pharmaceuticals and syringes 269 00:12:30,340 --> 00:12:32,560 and the Jatt , a functional leads our 270 00:12:32,680 --> 00:12:35,330 supply chain , visibility additive 271 00:12:35,340 --> 00:12:38,100 manufacturing and the industry portal . 272 00:12:38,990 --> 00:12:41,500 The department and HHS have signed an 273 00:12:41,510 --> 00:12:44,050 interagency agreement that establishes 274 00:12:44,050 --> 00:12:46,272 a framework by which the D . O . D will 275 00:12:46,272 --> 00:12:48,570 provide acquisition assistance on 276 00:12:48,570 --> 00:12:51,250 behalf of HHS and their Cares Act 277 00:12:51,250 --> 00:12:53,670 authorities . I'm excited to say that 278 00:12:53,670 --> 00:12:55,670 we are already working on our first 279 00:12:55,670 --> 00:12:57,781 project together , and I look forward 280 00:12:57,781 --> 00:13:00,003 to expanding our partnership to deliver 281 00:13:00,003 --> 00:13:02,114 Medical Resource is in support of our 282 00:13:02,114 --> 00:13:04,530 national mission . To date , the 283 00:13:04,530 --> 00:13:07,090 department has leveraged 8000 284 00:13:07,090 --> 00:13:09,790 contracting actions in response to Cove 285 00:13:09,790 --> 00:13:13,270 in 19 totaling over $1.7 286 00:13:13,270 --> 00:13:16,460 billion we anticipate reaching $2 287 00:13:16,460 --> 00:13:19,400 billion by the end of this week . This 288 00:13:19,400 --> 00:13:22,090 includes $700 million in medical 289 00:13:22,090 --> 00:13:24,330 construction for the mobile military 290 00:13:24,330 --> 00:13:26,860 medical hospitals . Medical equipment , 291 00:13:27,090 --> 00:13:30,000 lab equipment and testing remain high 292 00:13:30,000 --> 00:13:33,350 priorities . DeLay remains an 293 00:13:33,350 --> 00:13:36,360 invaluable resource to HHS , FEMA and 294 00:13:36,360 --> 00:13:39,680 the nation . Since February 1st , DeLay 295 00:13:39,680 --> 00:13:43,610 has executed 5000 and 26 contract 296 00:13:43,620 --> 00:13:47,130 actions valued at $837 297 00:13:47,130 --> 00:13:51,050 million including 688 million dollars 298 00:13:51,050 --> 00:13:53,680 directly supporting FEMA and HHS 299 00:13:53,680 --> 00:13:57,240 requirements . An update on the 60 300 00:13:57,240 --> 00:14:00,090 Patel Memorial Institute Critical Care 301 00:14:00,330 --> 00:14:02,790 Contamination systems , which allow 302 00:14:02,790 --> 00:14:05,330 medical professionals to reuse masks up 303 00:14:05,330 --> 00:14:07,620 to 20 times , reducing the nation's 304 00:14:07,620 --> 00:14:10,560 need for new inventory . Eight units 305 00:14:10,570 --> 00:14:12,810 are operational in the cities of New 306 00:14:12,810 --> 00:14:15,630 York . Columbus , Ohio . Boston , 307 00:14:15,770 --> 00:14:18,610 Chicago and Tacoma . Edison , New 308 00:14:18,610 --> 00:14:20,777 Jersey , and New Haven , Connecticut . 309 00:14:20,940 --> 00:14:23,520 14 units are setting up and should be 310 00:14:23,520 --> 00:14:26,220 operational soon in cities from coast 311 00:14:26,220 --> 00:14:29,350 to coast , including Miami , 312 00:14:29,840 --> 00:14:32,780 Denver and Burbank , California The 313 00:14:32,780 --> 00:14:34,891 remaining units are being prioritised 314 00:14:34,891 --> 00:14:38,040 for delivery . We have provided 20 315 00:14:38,050 --> 00:14:41,600 million N 95 masks to HHS in 316 00:14:41,600 --> 00:14:44,220 FEMA , and all have been delivered to 317 00:14:44,220 --> 00:14:46,690 the states of California , Georgia , 318 00:14:46,920 --> 00:14:49,960 Florida , Illinois , Maryland , New 319 00:14:49,960 --> 00:14:52,500 York , New Jersey , Pennsylvania , 320 00:14:52,640 --> 00:14:56,460 Texas and West Virginia . With 321 00:14:56,750 --> 00:14:59,420 the USNS Comfort departing New York 322 00:14:59,420 --> 00:15:01,500 City , the department remains fully 323 00:15:01,500 --> 00:15:03,722 committed to supporting New York City . 324 00:15:03,730 --> 00:15:06,180 We continue to put support New York 325 00:15:06,180 --> 00:15:08,500 City with doctors and nurses who are 326 00:15:08,500 --> 00:15:11,120 embedded and supporting 11 New York 327 00:15:11,120 --> 00:15:14,730 City hospitals . Detroit is providing 328 00:15:14,730 --> 00:15:17,620 Cove in 19 modeling support to D O D . 329 00:15:17,870 --> 00:15:20,490 Interagency and international partners . 330 00:15:20,800 --> 00:15:23,022 They're modeling is focused on the rate 331 00:15:23,022 --> 00:15:25,740 of increase or decrease of the spread 332 00:15:26,020 --> 00:15:28,780 status around D O D . Installations . 333 00:15:29,110 --> 00:15:32,370 Impact on the dib in a 2 to 3 weeks 334 00:15:32,440 --> 00:15:35,120 future projection . They have provided 335 00:15:35,120 --> 00:15:37,360 this analysis to combatant commanders 336 00:15:37,390 --> 00:15:39,580 and U S government inter agency 337 00:15:39,580 --> 00:15:42,100 partners . They're currently modelling 338 00:15:42,100 --> 00:15:44,720 specific nations in Europe based on a 339 00:15:44,720 --> 00:15:47,720 request from NATO , the Pentagon's 340 00:15:47,720 --> 00:15:50,340 Chemical and biological defense program , 341 00:15:50,350 --> 00:15:54,210 or CBD . P continues to pay to 342 00:15:54,210 --> 00:15:57,410 play a key role in executing the D . O 343 00:15:57,410 --> 00:15:59,890 D . Strategy for countering weapons of 344 00:15:59,890 --> 00:16:02,380 mass destruction . Continues to support 345 00:16:02,390 --> 00:16:06,190 Army labs , Defense Health Agency , HHS 346 00:16:06,200 --> 00:16:08,990 and FEMA Cove it 19 Countermeasures 347 00:16:09,130 --> 00:16:12,660 like testing vaccines , masks , a mask , 348 00:16:12,660 --> 00:16:15,180 filters and screening machines . This 349 00:16:15,180 --> 00:16:19,090 includes over $150 million of CBD 350 00:16:19,090 --> 00:16:22,420 P investment in diagnostics , vaccines , 351 00:16:22,590 --> 00:16:25,180 therapeutics and modeling capabilities . 352 00:16:26,840 --> 00:16:28,750 The department's DP A Title three 353 00:16:28,750 --> 00:16:31,370 Investment in response to Cove in 19 354 00:16:31,410 --> 00:16:33,950 remains on increasing manufacturing 355 00:16:33,950 --> 00:16:37,250 capacity and throughput . The D . O . D 356 00:16:37,250 --> 00:16:40,250 continues to use DP A title three for 357 00:16:40,250 --> 00:16:43,230 Did Brazil V In SI and Security as we 358 00:16:43,230 --> 00:16:46,210 always have , as well as medical and 359 00:16:46,210 --> 00:16:48,970 health care . Resource is with HHS and 360 00:16:48,970 --> 00:16:51,740 FEMA Coordination . Last night we 361 00:16:51,740 --> 00:16:55,400 announced a $75.5 million Defense 362 00:16:55,400 --> 00:16:57,980 Production Act Title three contract 363 00:16:58,030 --> 00:17:00,280 with Puritan medical products , who 364 00:17:00,280 --> 00:17:02,336 will be able to double its output of 365 00:17:02,336 --> 00:17:05,190 swabs to 40 million per month starting 366 00:17:05,190 --> 00:17:08,180 in May . Puritan is security of 367 00:17:08,180 --> 00:17:10,347 facility in Pittsfield , Maine , where 368 00:17:10,347 --> 00:17:12,680 it will create a manufacturing facility . 369 00:17:12,800 --> 00:17:15,870 Puritan will add 150 people to their 370 00:17:15,870 --> 00:17:18,760 current 500 person workforce to staff . 371 00:17:18,760 --> 00:17:21,470 The new factory , Puritan has already 372 00:17:21,470 --> 00:17:23,850 placed orders for material parts are 373 00:17:23,850 --> 00:17:26,310 being machined , and 40 new machines 374 00:17:26,310 --> 00:17:28,950 need to produce the swaps on order . 375 00:17:29,540 --> 00:17:31,940 This investment is critical in allowing 376 00:17:31,940 --> 00:17:34,210 Americans to be tested and helped 377 00:17:34,210 --> 00:17:37,120 reopen the economy . The increased 378 00:17:37,120 --> 00:17:38,953 production will ensure the U . S 379 00:17:38,953 --> 00:17:41,460 government gets dedicated long term 380 00:17:41,470 --> 00:17:44,080 industrial capacity to help meet the 381 00:17:44,080 --> 00:17:47,030 needs of the nation . The current DP a 382 00:17:47,030 --> 00:17:49,252 title three medical and health resource 383 00:17:49,252 --> 00:17:51,650 is priorities and the critical DP A 384 00:17:51,650 --> 00:17:53,960 title . Three defense sectors have not 385 00:17:53,970 --> 00:17:56,200 changed since I briefed you last 386 00:17:57,230 --> 00:17:59,650 enclosing . The department continues to 387 00:17:59,650 --> 00:18:01,770 do everything we can to support our 388 00:18:01,770 --> 00:18:04,210 military members , their families , 389 00:18:04,520 --> 00:18:06,670 defense contractors and our fellow 390 00:18:06,670 --> 00:18:09,400 citizens . I want to say a heart felt 391 00:18:09,400 --> 00:18:12,850 thank you to both O . M . B and the NSC . 392 00:18:13,070 --> 00:18:14,792 They have been instrumental in 393 00:18:14,792 --> 00:18:16,800 supporting department efforts which 394 00:18:16,800 --> 00:18:19,220 would not have been successful without 395 00:18:19,220 --> 00:18:21,930 their partnership . I remain extremely 396 00:18:21,930 --> 00:18:24,700 proud of the selfless effort of the 397 00:18:24,700 --> 00:18:27,150 Department of Defense personnel who 398 00:18:27,150 --> 00:18:29,650 continue to do everything they can to 399 00:18:29,650 --> 00:18:32,700 help provide medical masks , test kits , 400 00:18:32,970 --> 00:18:35,860 medicine and meals to support Americans , 401 00:18:35,860 --> 00:18:39,750 military medical , emergency services 402 00:18:39,760 --> 00:18:41,960 and law enforcement personnel 403 00:18:42,480 --> 00:18:44,670 professionals who are on the front 404 00:18:44,670 --> 00:18:47,660 lines and need the most . I'd be very 405 00:18:47,660 --> 00:18:49,827 happy to answer your questions . Thank 406 00:18:49,827 --> 00:18:51,938 you , thinking , man . We're going to 407 00:18:51,938 --> 00:18:54,271 start in the room , ma'am . Over to you . 408 00:18:54,271 --> 00:18:56,604 Our cop with McClatchy , Secretary Lord , 409 00:18:56,604 --> 00:18:58,660 The last time you were in here , you 410 00:18:58,660 --> 00:19:00,882 talked about the three and 95 contracts 411 00:19:00,882 --> 00:19:03,710 that have been signed 133 million today . 412 00:19:03,720 --> 00:19:05,942 Besides the deity press release on it , 413 00:19:05,942 --> 00:19:08,053 there's no documentation that I could 414 00:19:08,053 --> 00:19:10,276 find on what types of units were sold . 415 00:19:10,330 --> 00:19:12,386 What price point was allowed for the 416 00:19:12,386 --> 00:19:14,552 government and I just bring this up is 417 00:19:14,552 --> 00:19:16,497 an example of how are you going to 418 00:19:16,497 --> 00:19:18,552 provide accountability in the larger 419 00:19:18,552 --> 00:19:20,719 sense ? With so much money being spent 420 00:19:20,719 --> 00:19:22,774 in such a rapid fashion to make sure 421 00:19:22,774 --> 00:19:24,830 these master actually delivered that 422 00:19:24,830 --> 00:19:26,997 the government is getting a reasonable 423 00:19:26,997 --> 00:19:29,219 price point in looking out for taxpayer 424 00:19:29,219 --> 00:19:31,330 money . Okay , So , just to clarify a 425 00:19:31,330 --> 00:19:34,260 point here , H h s had put 426 00:19:34,430 --> 00:19:38,240 several manufacturers on contract for 427 00:19:38,250 --> 00:19:42,010 N 95 masks . What ? The JAT if did in 428 00:19:42,010 --> 00:19:45,590 supporting HHS in FEMA was to 429 00:19:45,600 --> 00:19:49,560 execute DP A title three contracts to 430 00:19:49,560 --> 00:19:52,400 increase both the capacity and the 431 00:19:52,400 --> 00:19:55,140 through throughput off three companies 432 00:19:55,150 --> 00:19:57,700 who already had contracts to 433 00:19:57,700 --> 00:20:01,680 manufacture the N 95 masks . So we 434 00:20:01,680 --> 00:20:05,420 have absolute traceability as to the 435 00:20:05,430 --> 00:20:08,520 actual amount those companies were put 436 00:20:08,530 --> 00:20:11,200 on contract for They were three M , 437 00:20:11,210 --> 00:20:15,170 Honeywell and O and M halyard . And 438 00:20:15,180 --> 00:20:18,520 what we did was issue contracts that 439 00:20:18,530 --> 00:20:21,130 hold the companies accountable to a 440 00:20:21,130 --> 00:20:24,460 specific increase in mask 441 00:20:24,470 --> 00:20:28,110 manufacturing in a given amount of time . 442 00:20:28,280 --> 00:20:31,070 So we had their baseline manufacturing 443 00:20:31,070 --> 00:20:34,150 capacity . We had details on what , 444 00:20:34,160 --> 00:20:36,680 exactly all the money would they 445 00:20:36,690 --> 00:20:38,912 received through the title three action 446 00:20:38,912 --> 00:20:41,500 was four , and we make sure they buy 447 00:20:41,500 --> 00:20:43,333 that equipment , do the facility 448 00:20:43,333 --> 00:20:45,200 improvements , perhaps train the 449 00:20:45,200 --> 00:20:47,367 workforce was part of some of that , I 450 00:20:47,367 --> 00:20:49,870 believe , and then we monitor to make 451 00:20:49,870 --> 00:20:52,600 sure that they have the output 452 00:20:53,220 --> 00:20:56,620 required by that contract . But three 453 00:20:56,630 --> 00:20:58,930 makes masks that range , you know , 454 00:20:59,270 --> 00:21:01,710 unit price from 86 cents or maybe 60 455 00:21:01,710 --> 00:21:04,150 cents a unit to as much as $3 . I mean , 456 00:21:04,440 --> 00:21:06,551 how is the taxpayers supposed to know 457 00:21:06,551 --> 00:21:09,240 which mask they're producing ? And no , 458 00:21:09,240 --> 00:21:11,462 that those master actually delivered to 459 00:21:11,462 --> 00:21:14,760 a location that needs them . HHS has 460 00:21:14,760 --> 00:21:18,420 the contract for the manufacturing and 461 00:21:18,420 --> 00:21:21,230 FEMA does the distribution based on 462 00:21:21,230 --> 00:21:23,790 priority . So I'm sure that HHS and 463 00:21:23,790 --> 00:21:25,950 FEMA could provide you that detail 464 00:21:26,340 --> 00:21:30,130 station on this . Okay , Tony ca Paseo 465 00:21:30,140 --> 00:21:32,307 going to you on the phone . Hi there , 466 00:21:32,307 --> 00:21:34,418 Miss Lord , can you hear me ? Yes , I 467 00:21:34,418 --> 00:21:36,620 can . Tony . Two quick questions under 468 00:21:36,630 --> 00:21:39,520 DP A Have you a designated any programs 469 00:21:39,530 --> 00:21:41,760 under the as a D X category for 470 00:21:42,180 --> 00:21:44,660 priority prioritization of components 471 00:21:45,340 --> 00:21:48,810 and delivery . So they're 472 00:21:48,810 --> 00:21:52,010 probably two pieces to that answer , 473 00:21:52,010 --> 00:21:54,440 Tony Off . Four . As you recall , 474 00:21:54,440 --> 00:21:56,500 there's an executive order that was 475 00:21:56,500 --> 00:22:00,270 issued in March that gives HHS the 476 00:22:00,270 --> 00:22:03,290 ability to rate contracts with deep ass 477 00:22:03,290 --> 00:22:05,980 ratings . Under DP A title one 478 00:22:06,490 --> 00:22:10,250 HHS has moved out and put some d o 479 00:22:10,260 --> 00:22:13,560 ratings on contracts . We have a 480 00:22:13,560 --> 00:22:17,100 process inside of d o d . To 481 00:22:17,100 --> 00:22:20,170 work up through our system and then 482 00:22:20,170 --> 00:22:23,690 reach out to HHS . If we wanted to put 483 00:22:23,690 --> 00:22:27,590 a dio or D X rating on any medical or 484 00:22:27,590 --> 00:22:29,870 health care resource is up to this 485 00:22:29,870 --> 00:22:32,890 point in time . We have not done so for 486 00:22:32,900 --> 00:22:36,350 either Dio or DX ratings . We 487 00:22:36,360 --> 00:22:39,820 continually look at DX ratings 488 00:22:40,060 --> 00:22:43,410 for our defense industrial base that we 489 00:22:43,410 --> 00:22:46,530 ourselves have the ability to dio . I 490 00:22:46,530 --> 00:22:49,920 am not aware of any recent DX ratings 491 00:22:50,200 --> 00:22:53,740 in terms of accelerating something for 492 00:22:53,990 --> 00:22:56,046 Cove it that still is in the defense 493 00:22:56,046 --> 00:22:58,470 industrial base . However , I know 494 00:22:58,470 --> 00:23:00,581 there are a number under discussion , 495 00:23:00,581 --> 00:23:02,850 but I will take an action working with 496 00:23:02,850 --> 00:23:05,360 Mike to go back and just make sure that 497 00:23:05,360 --> 00:23:07,650 I'm giving you a current , accurate and 498 00:23:07,650 --> 00:23:09,920 complete answer on that one . Okay , 499 00:23:09,930 --> 00:23:11,986 cookie on progress payments . Do you 500 00:23:11,986 --> 00:23:14,380 see the $3 billion that you've already 501 00:23:14,580 --> 00:23:16,802 accelerated to see that increasing , or 502 00:23:16,802 --> 00:23:19,220 is that going to be the ceiling ? Right 503 00:23:19,220 --> 00:23:22,900 now ? We project $3 billion as a 504 00:23:22,900 --> 00:23:25,970 ceiling because we looked at out stunts 505 00:23:25,980 --> 00:23:28,520 outstanding contracts . We had about 506 00:23:28,520 --> 00:23:31,700 1400 of them that would receive 507 00:23:31,700 --> 00:23:34,060 progress payments if you were called D . 508 00:23:34,060 --> 00:23:36,230 C M . A . Did a block changed all of 509 00:23:36,230 --> 00:23:40,160 those contracts and we approximate a $3 510 00:23:40,160 --> 00:23:43,040 billion impact off most companies being 511 00:23:43,040 --> 00:23:45,930 moved from 80 to 90% in terms of 512 00:23:45,930 --> 00:23:47,930 progress payments and , of course , 513 00:23:47,930 --> 00:23:50,670 small business going from 90 to 95 we 514 00:23:50,670 --> 00:23:52,726 have already seen . I think I quoted 515 00:23:52,726 --> 00:23:55,170 about $1.2 billion of that being 516 00:23:55,180 --> 00:23:57,180 invoiced , and we think the balance 517 00:23:57,180 --> 00:23:59,680 will be in the next week or two . Thank 518 00:23:59,680 --> 00:24:01,791 you Were gonna go back in the room to 519 00:24:01,791 --> 00:24:04,013 Ryan Browne , CNN . Man , thank you for 520 00:24:04,013 --> 00:24:05,958 doing this . You mentioned a three 521 00:24:05,958 --> 00:24:09,310 month slowdown projection potential , 522 00:24:10,620 --> 00:24:12,842 but supposed to delay . What is driving 523 00:24:12,842 --> 00:24:15,600 the three month assessment is that the 524 00:24:15,610 --> 00:24:18,480 current rate of the pandemic spread or 525 00:24:18,480 --> 00:24:20,591 is that is that gonna be re evaluated 526 00:24:20,591 --> 00:24:22,480 constantly ? What is kind of your 527 00:24:22,640 --> 00:24:24,751 methodology behind Looking at a three 528 00:24:24,751 --> 00:24:28,070 month period , it was looking at what 529 00:24:28,070 --> 00:24:31,160 we had in our modeling and also what we 530 00:24:31,160 --> 00:24:34,760 were experiencing again . We work at 531 00:24:34,770 --> 00:24:37,670 overlaying the geographic locations of 532 00:24:37,670 --> 00:24:40,100 our defense industrial base with where 533 00:24:40,100 --> 00:24:43,580 Covic outbreaks are . So that was our 534 00:24:43,580 --> 00:24:46,200 best projection about a month ago . We 535 00:24:46,200 --> 00:24:49,500 will continue to assess . We have many 536 00:24:49,500 --> 00:24:53,060 companies that planned well and had 537 00:24:53,060 --> 00:24:55,640 resiliency that are working through 538 00:24:55,640 --> 00:24:58,320 this with minimal impact . Others have 539 00:24:58,330 --> 00:25:00,990 more significant impact . So we 540 00:25:00,990 --> 00:25:02,879 continue to look at that . But it 541 00:25:02,879 --> 00:25:05,640 really is on a case by case basis . At 542 00:25:05,640 --> 00:25:08,280 this point , we envision it being about 543 00:25:08,290 --> 00:25:10,590 three months for the most significant 544 00:25:10,600 --> 00:25:12,760 impact . We are working very hard . 545 00:25:12,760 --> 00:25:14,816 It's the reason , obviously , we are 546 00:25:14,816 --> 00:25:17,690 engaging with industry and inter agency 547 00:25:17,690 --> 00:25:20,170 to do everything we can to support our 548 00:25:20,170 --> 00:25:22,290 defense industrial base . We think 549 00:25:22,290 --> 00:25:24,457 we're learning how to work in this new 550 00:25:24,457 --> 00:25:27,460 environment and get back up to rate , 551 00:25:27,470 --> 00:25:29,950 if you will , in areas where we didn't . 552 00:25:29,960 --> 00:25:31,793 But right now , that is our best 553 00:25:31,793 --> 00:25:33,516 estimate . And we're working . 554 00:25:33,516 --> 00:25:35,600 Obviously , the minimise impacts . 555 00:25:36,040 --> 00:25:38,318 Thank you . We're gonna go to the line . 556 00:25:38,318 --> 00:25:39,850 Erin Meta , are you up ? 557 00:25:43,020 --> 00:25:45,720 Even I could make it . Come on . Uh , 558 00:25:45,730 --> 00:25:48,670 man appreciate you doing this . They 559 00:25:48,680 --> 00:25:51,013 found something you mentioned last time . 560 00:25:51,013 --> 00:25:53,200 Also this time , both that you 561 00:25:53,200 --> 00:25:55,144 appreciate blocked efforts to push 562 00:25:55,144 --> 00:25:58,000 Marty down this Jane last time you kind 563 00:25:58,000 --> 00:26:00,820 of specifically were similar . Publican 564 00:26:00,820 --> 00:26:03,650 absent from other major crimes does not 565 00:26:03,930 --> 00:26:06,800 not happening . I've seen . Are you 566 00:26:06,800 --> 00:26:08,911 concerned that these companies aren't 567 00:26:08,911 --> 00:26:11,133 making his efforts ? And would you like 568 00:26:11,133 --> 00:26:13,360 some companies begin to publicly say 569 00:26:13,360 --> 00:26:15,138 what that money and how they're 570 00:26:15,138 --> 00:26:18,040 supporting the last ? I believe that 571 00:26:18,040 --> 00:26:20,280 the major primes are flowing down . 572 00:26:20,280 --> 00:26:22,780 They've committed , but I always like 573 00:26:22,780 --> 00:26:25,980 to trust yet verify . So I encourage 574 00:26:25,990 --> 00:26:28,150 all of those companies to be as 575 00:26:28,150 --> 00:26:30,700 transparent and forthcoming as they can 576 00:26:30,700 --> 00:26:33,000 be because we have a responsibility to 577 00:26:33,000 --> 00:26:35,860 the taxpayer as well as to the mid 578 00:26:35,860 --> 00:26:38,000 tears and the small companies to make 579 00:26:38,000 --> 00:26:41,630 sure actions we take at the prime level 580 00:26:41,710 --> 00:26:43,860 do go down all the way through the 581 00:26:43,860 --> 00:26:47,860 chain . However , I need to rely on 582 00:26:47,860 --> 00:26:51,250 CEOs of major primes to come forth with 583 00:26:51,250 --> 00:26:55,130 that data . Feel the 584 00:26:55,140 --> 00:26:57,710 companies are being transparent with 585 00:26:57,710 --> 00:26:59,766 you . It's the American public about 586 00:26:59,766 --> 00:27:01,654 how that money is being spent . I 587 00:27:01,654 --> 00:27:05,080 believe they are . All right , we're 588 00:27:05,080 --> 00:27:07,191 gonna go back in the room to ah Lucas 589 00:27:07,191 --> 00:27:09,660 with Fox . How much longer you be 590 00:27:09,670 --> 00:27:13,120 cranking out the masks ? Cranky . How 591 00:27:13,120 --> 00:27:15,342 much longer are we going to be cranking 592 00:27:15,342 --> 00:27:17,390 out the masks for a very large long 593 00:27:17,390 --> 00:27:19,334 time ? Because we have a couple of 594 00:27:19,334 --> 00:27:21,446 objectives here . We have more than a 595 00:27:21,446 --> 00:27:23,501 couple . Actually , we have multiple 596 00:27:23,501 --> 00:27:26,550 one . We need to take care of the 597 00:27:26,550 --> 00:27:29,160 demand we have right now that started 598 00:27:29,160 --> 00:27:31,900 with medical personnel . But we need 599 00:27:31,900 --> 00:27:34,011 the country to get back to work , and 600 00:27:34,011 --> 00:27:36,510 that is going to require some PPE that 601 00:27:36,510 --> 00:27:39,080 includes masks . So number one we have 602 00:27:39,080 --> 00:27:42,380 to bridge beyond non medical personnel . 603 00:27:42,380 --> 00:27:45,200 PPE and masks are very significant . We 604 00:27:45,200 --> 00:27:48,970 then have to refill the national 605 00:27:48,970 --> 00:27:52,520 stockpile very , very important to us . 606 00:27:52,790 --> 00:27:55,030 And then we need to look forward to 607 00:27:55,030 --> 00:27:57,610 what the data is telling us that there 608 00:27:57,610 --> 00:28:00,400 may well be another significant 609 00:28:00,410 --> 00:28:02,670 outbreak this fall . We want to be 610 00:28:02,670 --> 00:28:05,160 prepared for that . And then finally , 611 00:28:05,160 --> 00:28:08,590 we need to be prepared as a nation 612 00:28:08,960 --> 00:28:12,130 to look at any further pandemics that 613 00:28:12,130 --> 00:28:15,610 might come along . So we see this as an 614 00:28:15,620 --> 00:28:18,560 ongoing issue both within the Defense 615 00:28:18,560 --> 00:28:21,690 Department , because we need to not 616 00:28:21,700 --> 00:28:24,790 only support the nation with everything 617 00:28:24,790 --> 00:28:27,250 we're doing with HHS and FEMA , but we 618 00:28:27,250 --> 00:28:29,350 have our primary mission here of 619 00:28:29,350 --> 00:28:31,620 national security , and we have to be 620 00:28:31,620 --> 00:28:34,130 ready to go ahead and do that . Do you 621 00:28:34,130 --> 00:28:36,241 see the Pentagon battling Cove it for 622 00:28:36,241 --> 00:28:38,900 the next six months or a year ? I think 623 00:28:38,900 --> 00:28:41,910 the nation is going to be battling Cove 624 00:28:41,910 --> 00:28:44,750 it for six months or a year , and I 625 00:28:44,750 --> 00:28:48,460 again look to d o . D 626 00:28:48,620 --> 00:28:51,380 as the support in times of national 627 00:28:51,380 --> 00:28:54,640 emergency to FEMA and HHS when it to 628 00:28:54,640 --> 00:28:57,220 pandemic and again they have the 629 00:28:57,230 --> 00:28:59,850 infrastructure . They have the overall 630 00:28:59,850 --> 00:29:03,620 mission . Yet we have a capability 631 00:29:03,760 --> 00:29:07,290 to surge are 140,000 acquisition 632 00:29:07,450 --> 00:29:10,120 professionals to provide the 633 00:29:10,120 --> 00:29:12,660 contracting the program management 634 00:29:12,660 --> 00:29:15,850 support to really energize 635 00:29:15,860 --> 00:29:19,120 theme medical , industrial base and 636 00:29:19,130 --> 00:29:21,297 Obviously we've learned that we've had 637 00:29:21,297 --> 00:29:23,570 fragility in it on a number of fronts . 638 00:29:23,640 --> 00:29:26,730 We were overly dependent on foreign 639 00:29:26,730 --> 00:29:28,897 sources . We still have the air bridge 640 00:29:28,897 --> 00:29:31,500 working to bring all kinds of medical 641 00:29:31,500 --> 00:29:33,722 resource is back to the United States . 642 00:29:33,740 --> 00:29:37,060 So we need to make sure that we have 643 00:29:37,060 --> 00:29:39,890 security and resiliency in our medical 644 00:29:39,900 --> 00:29:42,810 industrial base . And we can help 645 00:29:42,860 --> 00:29:46,430 HHS to make sure that we have both the 646 00:29:46,430 --> 00:29:49,170 capacity and throughput that we need 647 00:29:49,260 --> 00:29:52,510 not only now , but in the future . So 648 00:29:52,510 --> 00:29:54,677 the Defense Department could help with 649 00:29:54,677 --> 00:29:57,030 this with that were there to support 650 00:29:57,040 --> 00:30:00,270 and provide our opposition expertise . 651 00:30:00,400 --> 00:30:04,350 But we will stand down once we do have 652 00:30:04,610 --> 00:30:08,400 the capacity . The capability Onda 653 00:30:08,400 --> 00:30:11,650 volume Coming out off that industrial 654 00:30:11,650 --> 00:30:15,280 base for medical resource is that we 655 00:30:15,280 --> 00:30:18,890 want to be robust and self sustaining . 656 00:30:19,220 --> 00:30:21,276 Finally spoke glowingly about Mexico 657 00:30:21,276 --> 00:30:23,331 earlier . Would you like to see more 658 00:30:23,331 --> 00:30:25,220 manufacturing shift from China to 659 00:30:25,220 --> 00:30:28,770 Mexico ? What I would like to 660 00:30:28,770 --> 00:30:32,160 see is the U . S . Have the capacity 661 00:30:32,170 --> 00:30:34,750 and throughput to take care of 662 00:30:34,750 --> 00:30:37,080 ourselves in times of need . 663 00:30:38,300 --> 00:30:42,260 We at this point have some national 664 00:30:42,260 --> 00:30:46,090 security issues with china . Um , I 665 00:30:46,250 --> 00:30:47,972 I'm not gonna comment on other 666 00:30:47,972 --> 00:30:50,083 countries , but I think we have found 667 00:30:50,083 --> 00:30:53,740 that our dependency on China is more 668 00:30:53,750 --> 00:30:56,740 than we need it to be . And we're gonna 669 00:30:56,740 --> 00:30:59,550 go to Courtney Q . B because Lucas is 670 00:30:59,550 --> 00:31:01,383 gonna ask eight questions . So , 671 00:31:01,383 --> 00:31:04,940 Kourtney over to you . Hey , it's 672 00:31:04,940 --> 00:31:07,107 Courtney . Hubie . I have to apologize 673 00:31:07,107 --> 00:31:09,162 in advance because my kids have been 674 00:31:09,162 --> 00:31:11,273 screaming during this entire briefing 675 00:31:11,273 --> 00:31:11,100 that we've addressed this already , 676 00:31:11,100 --> 00:31:12,989 just calmly and in all the second 677 00:31:12,989 --> 00:31:16,290 Transcript . But yesterday , um , uh , 678 00:31:16,380 --> 00:31:18,324 Adam Smith , chairman of the House 679 00:31:18,324 --> 00:31:20,730 Armed Services , said that he believes 680 00:31:20,730 --> 00:31:22,910 that D . O . D needs to be doing more 681 00:31:23,190 --> 00:31:26,650 to take money that's in the GOP budget 682 00:31:26,650 --> 00:31:29,890 already and provide it for making more 683 00:31:29,890 --> 00:31:32,520 PPE . So what I'm true 684 00:31:33,570 --> 00:31:36,100 sexual ward is if there's some way to 685 00:31:36,100 --> 00:31:38,156 do that , to take on obligated funds 686 00:31:38,460 --> 00:31:40,500 and use it in some way to make more 687 00:31:40,500 --> 00:31:44,230 peopie . And do you think the OD are 688 00:31:44,230 --> 00:31:46,341 there areas ? Dude , you can be doing 689 00:31:46,341 --> 00:31:48,850 more in producing PP . Thanks , 690 00:31:50,970 --> 00:31:54,000 So certainly Courtney . Well , I think 691 00:31:54,010 --> 00:31:55,732 your question seems to focus , 692 00:31:55,732 --> 00:31:59,310 particularly on P p E and the comments 693 00:31:59,310 --> 00:32:01,660 that Chairman Smith made yesterday 694 00:32:01,680 --> 00:32:05,500 about taking some of D . O D's budget 695 00:32:05,510 --> 00:32:08,290 and perhaps redirecting it towards 696 00:32:08,290 --> 00:32:11,060 needs for call of it . We do have 697 00:32:11,060 --> 00:32:13,530 constraints in terms of what we can do 698 00:32:13,540 --> 00:32:17,410 in terms of reprogramming . Congress is 699 00:32:17,410 --> 00:32:21,230 fairly strict about appropriating money 700 00:32:21,240 --> 00:32:24,610 with specific authorizations for its 701 00:32:24,620 --> 00:32:28,370 use . So that being said , there is the 702 00:32:28,370 --> 00:32:31,910 potential , um , potentially to use 703 00:32:31,910 --> 00:32:34,460 some of our own M money for that . 704 00:32:34,470 --> 00:32:38,450 However , we do have pretty significant 705 00:32:38,450 --> 00:32:41,510 needs in terms of readiness and 706 00:32:41,510 --> 00:32:45,210 modernization in order to perform our 707 00:32:45,210 --> 00:32:47,790 primary mission , which is national 708 00:32:47,790 --> 00:32:50,600 security . So we will look at that . 709 00:32:50,640 --> 00:32:53,140 However , I am not sure that we have 710 00:32:53,150 --> 00:32:56,570 the fiscal flexibility Teoh 711 00:32:56,740 --> 00:33:00,620 encompass all off the new demands we 712 00:33:00,620 --> 00:33:04,620 have and the inefficiencies that we are 713 00:33:04,620 --> 00:33:06,680 seeing and perhaps may see in the 714 00:33:06,680 --> 00:33:10,250 future . But I respect what Chairman 715 00:33:10,250 --> 00:33:13,090 Smith is saying and we will obviously 716 00:33:13,090 --> 00:33:16,220 do our best . However , I will say that 717 00:33:16,220 --> 00:33:19,670 we continue toe look at gaps in funding 718 00:33:19,670 --> 00:33:23,070 we have for specific issues . We 719 00:33:23,070 --> 00:33:26,200 continue toe work with O M B on that 720 00:33:26,210 --> 00:33:28,170 and we will continue to talk to 721 00:33:28,170 --> 00:33:31,560 Congress about what we assess as our 722 00:33:31,560 --> 00:33:34,650 needs to really carry out our missions . 723 00:33:36,840 --> 00:33:39,610 Thank you . Okay , we're gonna go to 724 00:33:39,610 --> 00:33:40,770 Tony Burr Tuka . 725 00:33:44,760 --> 00:33:46,927 Hello , man . Thank you for being with 726 00:33:46,927 --> 00:33:49,770 us . Um could you please define for us 727 00:33:49,930 --> 00:33:51,874 in greater detail . The difference 728 00:33:51,874 --> 00:33:54,097 between what ? What you view a slowdown 729 00:33:54,500 --> 00:33:56,970 is and what a delay is . 730 00:33:58,720 --> 00:34:00,831 Was the question Tony that difference 731 00:34:00,831 --> 00:34:04,410 between a slow down in a delay ? Yes , 732 00:34:04,510 --> 00:34:06,732 the difference between a slowdown and a 733 00:34:06,732 --> 00:34:10,610 delay . So what we're seeing as 734 00:34:10,620 --> 00:34:14,530 a result of illness or inability to 735 00:34:14,530 --> 00:34:18,460 travel , we see efficiency issues . 736 00:34:18,630 --> 00:34:22,420 So we are not physically able to 737 00:34:22,420 --> 00:34:24,850 get contractors , sometimes 738 00:34:25,580 --> 00:34:29,430 overseas , to conduct inspections 739 00:34:29,430 --> 00:34:32,830 of aircraft , for instance . So we 740 00:34:32,830 --> 00:34:36,550 have somewhat of a slowdown in our 741 00:34:36,560 --> 00:34:39,560 ability to accomplish tasks . Were 742 00:34:39,560 --> 00:34:43,340 finding work around for that versus 743 00:34:43,340 --> 00:34:45,610 just saying We're delaying doing 744 00:34:45,610 --> 00:34:49,200 something . We do not look at delaying 745 00:34:49,200 --> 00:34:52,110 things . We're looking at working 746 00:34:52,110 --> 00:34:55,160 through the issues , which sometimes 747 00:34:55,170 --> 00:34:58,340 cannot be executed with the same 748 00:34:58,350 --> 00:35:00,960 efficiency we previously had . 749 00:35:02,990 --> 00:35:06,360 And when we last asked you about your 750 00:35:06,360 --> 00:35:09,570 you if you could get closer to you're 751 00:35:10,820 --> 00:35:12,987 when when we left ask you about this . 752 00:35:12,987 --> 00:35:15,500 You mentioned that the department said , 753 00:35:15,510 --> 00:35:17,288 you know it's going to cost you 754 00:35:17,288 --> 00:35:19,510 something to figure out how to mitigate 755 00:35:19,510 --> 00:35:21,288 the slowdown , how to reimburse 756 00:35:21,288 --> 00:35:23,454 contractors in accordance with 36 10 . 757 00:35:23,454 --> 00:35:25,454 I was wondering if you had any more 758 00:35:25,454 --> 00:35:27,621 detail on that or had a sense of , you 759 00:35:27,621 --> 00:35:29,454 know , when you would try to . I 760 00:35:29,454 --> 00:35:31,500 understand how much the department 761 00:35:31,500 --> 00:35:33,960 would have to redirect to take care of 762 00:35:33,960 --> 00:35:37,480 that . So we're working through the 763 00:35:37,480 --> 00:35:40,450 mechanics of tracing those 764 00:35:40,460 --> 00:35:42,850 inefficiencies with different 765 00:35:42,850 --> 00:35:46,730 contractors . There is a lot of 766 00:35:46,740 --> 00:35:49,710 financial detail here in terms of 767 00:35:49,710 --> 00:35:52,390 different cost accounting systems and 768 00:35:52,390 --> 00:35:54,640 how labor is accounted for , whether it 769 00:35:54,650 --> 00:35:57,540 be direct or indirect , how overhead is 770 00:35:57,540 --> 00:36:00,260 spread , what is typically taken in 771 00:36:00,260 --> 00:36:03,390 terms of sick leave and so forth . We 772 00:36:03,400 --> 00:36:06,630 are working through all of that now so 773 00:36:06,630 --> 00:36:09,330 that we have the transparency in terms 774 00:36:09,330 --> 00:36:12,430 of cost accounting and then beginning 775 00:36:12,430 --> 00:36:14,780 toe work on a contract by contract 776 00:36:14,790 --> 00:36:18,120 basis . What ? Those cove it 777 00:36:19,070 --> 00:36:22,660 related inefficiencies were . So we're 778 00:36:22,660 --> 00:36:25,590 still in the methodology of how to do 779 00:36:25,590 --> 00:36:28,690 that ? We've done some 780 00:36:28,690 --> 00:36:32,030 calculations of a worst case . We 781 00:36:32,030 --> 00:36:35,440 talked about that last time , so we got 782 00:36:35,440 --> 00:36:37,740 together here . So what we're doing now 783 00:36:37,880 --> 00:36:40,850 is talking with O . M . B and getting 784 00:36:40,850 --> 00:36:43,017 ready to talk to Congress about that . 785 00:36:43,017 --> 00:36:46,480 But I do not have any actuals yet to 786 00:36:46,480 --> 00:36:49,110 share with you . We're going to go to 787 00:36:49,110 --> 00:36:49,740 Marcus . 788 00:36:54,930 --> 00:36:58,750 Marcus , are you there ? Yes . Sorry . 789 00:36:58,760 --> 00:37:00,927 Tony and I talked over May I think for 790 00:37:00,927 --> 00:37:02,990 again for doing it . This left two 791 00:37:02,990 --> 00:37:05,520 weeks . There's been the companies have 792 00:37:05,520 --> 00:37:07,790 been all reporting , are earning . Um , 793 00:37:07,860 --> 00:37:09,749 you're really starting to see the 794 00:37:10,300 --> 00:37:12,880 impact of Kobe 19 throughout them . As 795 00:37:12,880 --> 00:37:15,102 you mentioned , the aerospace companies 796 00:37:15,102 --> 00:37:17,310 are , uh , disproportionately hit . 797 00:37:17,320 --> 00:37:19,810 Then they appear defense company there 798 00:37:19,820 --> 00:37:22,110 any specific areas that you're 799 00:37:22,110 --> 00:37:24,810 understaffed in in over the past two 800 00:37:24,810 --> 00:37:26,750 weeks that have come out in these 801 00:37:26,760 --> 00:37:28,740 earnings reports under there , any 802 00:37:29,170 --> 00:37:31,450 additional areas which that happen out 803 00:37:31,760 --> 00:37:33,816 that you might be taking any type of 804 00:37:33,816 --> 00:37:36,550 action . So we're looking at the 805 00:37:36,560 --> 00:37:39,570 earnings reports , but that's a little 806 00:37:39,570 --> 00:37:41,770 bit looking in the rear view mirror . 807 00:37:41,780 --> 00:37:45,640 What we're doing is conducting industry 808 00:37:45,640 --> 00:37:49,550 calls 3 to 5 times a week . We I 809 00:37:49,550 --> 00:37:53,110 am talking to CEOs . I am talking to 810 00:37:53,110 --> 00:37:56,890 members of Congress . We have our D . 811 00:37:56,890 --> 00:38:00,020 C M A reps , which , frankly , is my 812 00:38:00,020 --> 00:38:03,900 best intelligence . We have individual 813 00:38:03,970 --> 00:38:06,730 individually . We have individuals 814 00:38:06,800 --> 00:38:08,960 located both domestically and 815 00:38:08,970 --> 00:38:11,830 internationally , who report back every 816 00:38:11,830 --> 00:38:15,540 day and every morning I have a call 817 00:38:15,540 --> 00:38:17,740 with key members of my staff . We 818 00:38:17,910 --> 00:38:20,470 include the service is a couple times a 819 00:38:20,470 --> 00:38:23,390 week on that , and I literally get 820 00:38:23,400 --> 00:38:27,240 daily updates on what our d . C m a 821 00:38:27,250 --> 00:38:31,070 individuals are seeing , and typically 822 00:38:31,080 --> 00:38:33,760 the most problematical areas we have 823 00:38:33,760 --> 00:38:35,640 now are Some of the smaller 824 00:38:35,640 --> 00:38:38,410 manufacturers who may be from a dollar 825 00:38:38,410 --> 00:38:42,410 volume don't do huge numbers , but they 826 00:38:42,420 --> 00:38:45,580 are providing critical components 827 00:38:45,590 --> 00:38:49,450 across aircraft and 828 00:38:49,730 --> 00:38:53,390 naval sort of applications . That's 829 00:38:53,390 --> 00:38:56,670 where my biggest concern is sort of the 830 00:38:56,670 --> 00:38:59,130 weakest link in the system . So that's 831 00:38:59,130 --> 00:39:01,800 where we're really focused on trying to 832 00:39:01,800 --> 00:39:05,250 bolster . I am concerned that some of 833 00:39:05,250 --> 00:39:09,100 the smaller companies might end up with 834 00:39:09,100 --> 00:39:12,400 some significant financial fragility . 835 00:39:12,540 --> 00:39:15,640 So we are not only working in the 836 00:39:15,650 --> 00:39:18,340 interagency to identify everything that 837 00:39:18,340 --> 00:39:20,400 the U . S government has in terms of 838 00:39:20,400 --> 00:39:23,270 resource is , but we're again looking 839 00:39:23,270 --> 00:39:26,630 back at our trusted capital methodology 840 00:39:26,670 --> 00:39:29,980 and coming up with some ways that we 841 00:39:29,980 --> 00:39:32,000 think are pretty creative , that we 842 00:39:32,000 --> 00:39:35,160 might again bring capital providers 843 00:39:35,160 --> 00:39:39,020 together with companies who are working 844 00:39:39,020 --> 00:39:41,131 in the areas that are critical to the 845 00:39:41,131 --> 00:39:43,076 Department of Defense . So again , 846 00:39:43,076 --> 00:39:44,742 we're trying to develop these 847 00:39:44,742 --> 00:39:48,690 ecosystems to get those companies that 848 00:39:48,690 --> 00:39:52,600 have critical technology and talent and 849 00:39:52,600 --> 00:39:56,560 facilities together with those 850 00:39:56,570 --> 00:39:59,070 investors , whether they be venture 851 00:39:59,070 --> 00:40:01,490 capitalists or family foundations or 852 00:40:01,490 --> 00:40:04,410 whoever they might be to bring the 853 00:40:04,410 --> 00:40:06,800 point of need to the point of relief . 854 00:40:06,800 --> 00:40:09,020 If you will , um , to help us through 855 00:40:09,020 --> 00:40:11,510 this Really quick follow . Are you 856 00:40:11,510 --> 00:40:13,343 expecting any increase emanating 857 00:40:13,343 --> 00:40:15,480 Companies made may be devalued 858 00:40:15,680 --> 00:40:18,730 throughout this period . What I am 859 00:40:18,730 --> 00:40:22,590 concerned about is , um , nefarious 860 00:40:22,600 --> 00:40:25,160 M and A practices . We've talked a lot 861 00:40:25,270 --> 00:40:27,590 with other nations , particularly in 862 00:40:27,590 --> 00:40:29,570 Europe , and we see a lot of shell 863 00:40:29,570 --> 00:40:31,700 companies coming in where the 864 00:40:31,700 --> 00:40:34,240 beneficial owner ends up being one of 865 00:40:34,240 --> 00:40:36,950 our adversaries . I'm particularly 866 00:40:36,950 --> 00:40:39,450 concerned about that . We're talking to 867 00:40:39,450 --> 00:40:42,900 the hill about strengthening some of 868 00:40:42,910 --> 00:40:45,580 our city ist legislation so that we 869 00:40:45,580 --> 00:40:48,520 have statutory tools to intervene there . 870 00:40:48,760 --> 00:40:52,210 I think we have to , regardless of the 871 00:40:52,210 --> 00:40:54,980 volume of m and A right now , we have 872 00:40:54,980 --> 00:40:58,780 to be very , very careful about the 873 00:40:58,790 --> 00:41:00,450 focused effort . Some of our 874 00:41:00,460 --> 00:41:04,350 adversaries have to really undergo 875 00:41:04,350 --> 00:41:06,820 sort of economic warfare with us , 876 00:41:06,820 --> 00:41:09,042 which has been going on for some time . 877 00:41:09,910 --> 00:41:11,632 We're gonna go to Lee Hudson . 878 00:41:15,290 --> 00:41:17,512 Hi . Can you hear me ? Yes . Lee . Good 879 00:41:17,512 --> 00:41:19,820 morning . Oh , great . Good morning . 880 00:41:19,820 --> 00:41:22,210 Thanks for doing this . Um , could you 881 00:41:22,210 --> 00:41:24,480 walk us through how the defense 882 00:41:24,480 --> 00:41:26,870 industrial based company's got to the 883 00:41:26,870 --> 00:41:29,360 point of having mawr reopened than 884 00:41:29,360 --> 00:41:31,850 closed because of Corbyn 19 is just 885 00:41:31,860 --> 00:41:35,730 because of state support ? I think 886 00:41:35,740 --> 00:41:39,690 it's , um , multiple reasons . One 887 00:41:39,700 --> 00:41:43,430 is understanding what state regulations 888 00:41:43,440 --> 00:41:47,360 are . And then I know the governor's 889 00:41:47,370 --> 00:41:50,090 association and individual governors 890 00:41:50,100 --> 00:41:52,460 have worked very closely with us , 891 00:41:52,470 --> 00:41:54,630 often through their congressional 892 00:41:54,630 --> 00:41:57,910 members . Teoh understand what resource 893 00:41:57,910 --> 00:42:01,470 is they have , um , and what 894 00:42:02,590 --> 00:42:05,950 safe operations look like . But I think 895 00:42:05,960 --> 00:42:09,240 a lot of this is actually looking at 896 00:42:09,250 --> 00:42:12,730 geographic locations of companies . And 897 00:42:12,740 --> 00:42:15,090 obviously certain parts of the country 898 00:42:15,500 --> 00:42:19,260 have peaked in terms of cases . And 899 00:42:19,270 --> 00:42:22,530 as a geographic region gets healthier , 900 00:42:22,600 --> 00:42:26,530 so does the industrial base . But also 901 00:42:26,540 --> 00:42:30,470 reopening isn't often as easy as just 902 00:42:30,470 --> 00:42:33,540 flipping the light switches on . Often 903 00:42:33,540 --> 00:42:36,590 there are inspections to be done local 904 00:42:36,600 --> 00:42:40,520 and state certifications , if you will . 905 00:42:40,600 --> 00:42:42,810 So it's working through some of that . 906 00:42:42,890 --> 00:42:45,400 I think all the local and state 907 00:42:45,400 --> 00:42:47,233 governments Justus , the federal 908 00:42:47,233 --> 00:42:50,560 government has learned as we've gone 909 00:42:50,560 --> 00:42:54,210 along and their processes become mawr 910 00:42:54,210 --> 00:42:57,590 effective and efficient . We also I 911 00:42:57,590 --> 00:43:01,260 think , see companies knowing where to 912 00:43:01,260 --> 00:43:04,960 go for support in order to work their 913 00:43:04,960 --> 00:43:07,016 way through the systems . So I think 914 00:43:07,016 --> 00:43:09,570 part of it is a learning curve both for 915 00:43:09,570 --> 00:43:12,650 government and is industry . Part of it 916 00:43:12,660 --> 00:43:16,150 is just geographically where cases have 917 00:43:16,160 --> 00:43:18,380 peaked and where they're diminishing , 918 00:43:18,390 --> 00:43:20,810 and then I think some of it is really 919 00:43:20,810 --> 00:43:24,690 good . Proactive actions to make sure 920 00:43:24,690 --> 00:43:27,680 that the workforce is really complying 921 00:43:27,680 --> 00:43:30,100 with all the CDC regulations . And 922 00:43:30,100 --> 00:43:33,960 perhaps by following very stringent 923 00:43:33,960 --> 00:43:37,200 procedures there mitigating the onset 924 00:43:37,210 --> 00:43:38,920 of illness is Well , 925 00:43:41,670 --> 00:43:43,837 okay , we're gonna go last question to 926 00:43:43,837 --> 00:43:46,059 Doug . Cameron . Doug , are you there ? 927 00:43:50,040 --> 00:43:52,151 I am here , if you can hear me . OK , 928 00:43:52,380 --> 00:43:55,870 Good morning . I find it very , Alain . 929 00:43:55,870 --> 00:43:59,000 Thank you again for for doing this to 930 00:43:59,010 --> 00:44:01,160 really basic ones of the finish off 931 00:44:01,170 --> 00:44:04,340 with , uh , my my obsession with the , 932 00:44:04,350 --> 00:44:07,550 uh , the Treasury loaded program . 933 00:44:07,960 --> 00:44:11,460 Which applications are due tomorrow , 934 00:44:11,760 --> 00:44:15,170 given the various options , you know , 935 00:44:15,170 --> 00:44:17,540 their federal programs , federal 936 00:44:17,540 --> 00:44:19,540 support programs , sort of vestment 937 00:44:19,540 --> 00:44:21,707 weight , credit credits . There's snow 938 00:44:21,707 --> 00:44:23,707 business program . Is the flow down 939 00:44:23,707 --> 00:44:25,873 from the crimes ? What is your sort of 940 00:44:25,873 --> 00:44:27,984 understanding ? Or I can you guide me 941 00:44:27,984 --> 00:44:30,630 as to what that 17 billion is actually 942 00:44:30,640 --> 00:44:33,270 for given you to be working on the X 943 00:44:33,270 --> 00:44:35,620 ray . It's tough to qualify according 944 00:44:35,630 --> 00:44:38,200 to the Treasury climate retired last 945 00:44:38,200 --> 00:44:40,800 week . So who's the 17,000,000,004 ? 946 00:44:41,860 --> 00:44:45,330 Well , the Treasury Department decided 947 00:44:45,340 --> 00:44:49,100 it should be for D X rated companies as 948 00:44:49,100 --> 00:44:52,820 well as top secret facilities . We 949 00:44:52,820 --> 00:44:54,820 have talked with them several times 950 00:44:54,820 --> 00:44:58,560 they have reached out to us . I am 951 00:44:58,560 --> 00:45:01,530 not sure companies with De X rated 952 00:45:01,530 --> 00:45:04,860 contracts are perhaps the ones that 953 00:45:04,860 --> 00:45:08,380 have the most critical needs because 954 00:45:08,390 --> 00:45:11,080 their supply chain is responding to 955 00:45:11,080 --> 00:45:13,550 them . Because of that deep ass rating , 956 00:45:13,690 --> 00:45:17,090 we also typically do not 957 00:45:17,100 --> 00:45:19,910 reveal who top secret facilities are , 958 00:45:20,070 --> 00:45:22,940 so that could be somewhat problematical . 959 00:45:22,990 --> 00:45:26,740 What Treasury is very open to is how 960 00:45:26,740 --> 00:45:29,740 they need to expand this . We're on in 961 00:45:29,740 --> 00:45:32,840 an ongoing dialogue with them . They've 962 00:45:32,840 --> 00:45:35,140 had a little less than 20 companies 963 00:45:35,140 --> 00:45:38,100 reach out to date . We're talking to 964 00:45:38,100 --> 00:45:40,760 them about that . Those companies , 965 00:45:41,000 --> 00:45:43,550 they have also said that D o . D could 966 00:45:43,560 --> 00:45:46,700 indicate companies that we think would 967 00:45:46,700 --> 00:45:50,060 be appropriate for that $17 968 00:45:50,060 --> 00:45:53,730 billion . So the challenge 969 00:45:53,740 --> 00:45:57,270 is that this $17 billion worth of 970 00:45:57,270 --> 00:46:00,310 loans comes with some fairly 971 00:46:00,320 --> 00:46:03,540 invasive , um , kind of 972 00:46:03,680 --> 00:46:07,140 writers on it , and I think companies 973 00:46:07,140 --> 00:46:10,730 have to think very carefully about 974 00:46:10,740 --> 00:46:14,430 whether that makes good business sense 975 00:46:14,430 --> 00:46:18,240 for them . Now . For public companies , 976 00:46:18,250 --> 00:46:21,570 it may not be as interesting as for 977 00:46:21,570 --> 00:46:23,920 private companies , so that's one of 978 00:46:23,920 --> 00:46:27,260 the differentiators I see . But we are 979 00:46:27,270 --> 00:46:30,660 very much in a learning mode on this , 980 00:46:30,670 --> 00:46:33,760 and Secretary Mnuchin is team has been 981 00:46:33,760 --> 00:46:36,670 very open toe ideas and discussions . 982 00:46:36,820 --> 00:46:40,640 So we actually have an industrial base 983 00:46:40,790 --> 00:46:44,220 council meeting tomorrow where OSD 984 00:46:44,220 --> 00:46:47,560 convenes the services and the agencies 985 00:46:47,580 --> 00:46:50,310 and we talk about a number of issues . 986 00:46:50,470 --> 00:46:53,960 This $17 billion Treasury loan is on 987 00:46:53,960 --> 00:46:56,570 the agenda tomorrow to talk about , and 988 00:46:56,570 --> 00:46:59,390 we're going to go back to Treasury with 989 00:46:59,390 --> 00:47:01,730 a list of recommendations . So I'm 990 00:47:01,730 --> 00:47:05,220 hoping that early next week between the 991 00:47:05,220 --> 00:47:07,387 Treasury Department and the Department 992 00:47:07,387 --> 00:47:10,170 of Defense , we can come back with a 993 00:47:10,170 --> 00:47:13,130 little bit more fidelity to the defense 994 00:47:13,130 --> 00:47:16,190 industrial base to better 995 00:47:16,190 --> 00:47:20,050 identify who might most benefit 996 00:47:20,220 --> 00:47:24,020 from this particular money . But we 997 00:47:24,020 --> 00:47:26,960 got to a stage where applications are 998 00:47:26,970 --> 00:47:29,470 Jews from three court tomorrow on your 999 00:47:29,470 --> 00:47:31,581 going over meeting tomorrow about who 1000 00:47:31,581 --> 00:47:34,750 actually should qualify for this on and 1001 00:47:34,760 --> 00:47:36,704 where they're not disagreement but 1002 00:47:36,704 --> 00:47:38,704 ongoing dialogue , as you would say 1003 00:47:38,704 --> 00:47:40,760 about who qualifies . So basically , 1004 00:47:40,760 --> 00:47:42,704 this is going to get pushed back , 1005 00:47:42,704 --> 00:47:44,704 which would also pushed back saying 1006 00:47:44,704 --> 00:47:46,982 when anyone might get the money . Well , 1007 00:47:46,982 --> 00:47:49,380 I'm not so sure about that again . This 1008 00:47:49,380 --> 00:47:52,510 is a Treasury Department program D o D . 1009 00:47:52,510 --> 00:47:56,450 Is supporting . We are giving advice 1010 00:47:56,460 --> 00:48:00,130 on DSA port to treasury . It is up to 1011 00:48:00,130 --> 00:48:02,186 treasury . I'm telling you what they 1012 00:48:02,186 --> 00:48:04,590 had as of yesterday . I'm not sure what 1013 00:48:04,590 --> 00:48:07,820 has transpired since then . Andi , I 1014 00:48:07,820 --> 00:48:10,630 cannot speak for them . But we want to 1015 00:48:10,630 --> 00:48:13,080 support Treasury to make this 1016 00:48:13,220 --> 00:48:16,040 transparent to our defense . Industrial 1017 00:48:16,040 --> 00:48:18,740 base . Aziz . Well , asshole , pay as 1018 00:48:18,740 --> 00:48:22,030 much as we can . Brilliant . Thank you 1019 00:48:22,040 --> 00:48:24,262 so much . Okay , so that's all the time 1020 00:48:24,262 --> 00:48:26,484 we have , ma'am . Any closing remarks ? 1021 00:48:26,484 --> 00:48:28,600 I just appreciate , um , media taking 1022 00:48:28,600 --> 00:48:32,000 the time to listen to our message . And 1023 00:48:32,000 --> 00:48:34,170 we will continue to push out 1024 00:48:34,370 --> 00:48:37,630 information and data as we have it . So 1025 00:48:37,630 --> 00:48:39,630 thank you very much . And be well , 1026 00:48:40,260 --> 00:48:42,260 thanks , everybody , for being here 1027 00:48:42,260 --> 00:48:42,250 taker .