>> this week on "defense news," the best of the airspace expo. we sit down with lockheed slams policy and proposals. ♪ -- host: welcome to "defense news." the senate confirmed eric fanning a secretary the army, making him the first openly gay man to hold the position. the senator from kansas relinquished and eight-month hold that he said was unrelated to

sexuality. the defense industry would struggle to meet customer demand in europe. hillary clinton and donald trump of both signaled that the u.s. would scale back its commitment to nato if allies do not step up to the plate. this would make a heavy demand on industry. the national geospatial's agency will unveil a california office dedicated to spurring technological innovation. the the outpost is expected to launch sometime this summer, intelligence presence in silicon valley. this came after secretary carter in siliconhakeups valley. the navy league sea, air,

space conference exhibited technologies. among the companies with technology to show -- raytheon. therter: we are here at raytheon booth. they make a family of missiles usually used by the u.s. navy, fired by warships. most of the time those warships are a class of destroyer. there is a model of one right here. this trip has been in production since the early 1990's, but this was different. it has a radar right here. it is made by raytheon, replacing a radar made by lockheed. the vicealk about it, president of the seapower capability systems at raytheon. paul, what is the difference with this radar?

thanks, chris. this is our opportunity developing next-generation missile-defense radar. a couple unique things about it -- these sensitivity and the range versus the current state-of-the-art system. we measure the overall performance, and really what that means -- if the system can see targets roughly half the size and twice the range -- actually a little bit more than twice the range. the system is inherently scalable. it is comprised of almost building blocks. these building blocks are roughly two foot by two foot onto, and those radar themselves. we scale the radar up to this space were 37 of these cubes form a single face and comprise an integrated radar. what that allows us to do is have a system that is inherently scalable to multiple

and maintaining similar functionality is what we have here. reporter: so, this could go down, this could be a smaller version -- a frigate, a small destroyer, or a larger ship, a cruiser? l: absolutely. it also lends itself to land-based application of the mission requires it. reporter: this is not a radar replacing the system made by lockheed, but you are going to integrate your radar with the aegis system. paul: essentially it will integrate and enhance the capability of the system. reporter: you are building one on the ship? paul: we are finishing our testing and it will be shipped off to hawaii -- a specific missile -- paul: for a

development testing. reporter: the first ship this goes on, you expect to be built when? flight three platform, which was put under contract this year, and fy 16 ship. ll: chris is here with us to talk more about the show. that was one conversation. i know you did many with folks on the trade floor. what was your impression? reporter: this was a good show. the expo has been going on for some decades now. they have the most floor space, the most participants, the most exhibitors. they have the most -- maybe too many speakers and presenters in the show. it was a very upbeat show. i think a few years ago, things were definitely not upbeat. going on.ion was there were restrictions on military personnel

show. and just in the last two or three or four years, there have been relatively down shows. this was not a down show. this was an up the show. certainly has tried to go beyond the president's budget naval systems.r the navy is expected to increase the number of ships it wants for its fleet later on this year. so, things are really, you know, good right now in the naval community. jill: i guess you could only state that global. the u.s. is trying to get more funds. i think the navy's budget is about flat right now. is that correct? reporter: it's about the same as last year. jill: better than a decline. [laughter] reporter: this is a political year. there's no real political trend after this year. this year set the table for the incoming administration, whoever that is. jill:

both there. i heard a lot of people talking about the international presence. did it seem bigger than in the past? reporter: the u.s. navy traditionally does not by too many foreign systems, but there are some components, and there may be a growing number. there's definitely a growing foreign participation. an italian firm that owns -- actually owns a ship card -- shipyard in wisconsin -- there large british pavilion, canadian pavilion, and australian civilian. this is a trend of more foreign countries trying to increase presence. you see the same thing at the other shows, the army show, which is by far the biggest military trade show, has seen a real increase in international purchase a patient. jill:

global opportunity -- i guess there is a perception global opportunities could grow. reporter: that's correct. return, chris and i will talk about a surprisingly candid speech from secretary ash carter. you are watching "defense news." >> today's programming is brought to you by general dynamics electric's -- a somehow it felt like everything was moving in slow motion. if i didn't react, things could have gotten messy in a hurry. i mean just got that sweet ride with a great rate from navy federal. i was not about to let anything happen to her. just looking out for my wingman. he's still in training. open to the armed forces, the dod and their families. navy federal credit union.

jill: welcome back to "defense news." still with

staying with us. chris: sure. cartere heard secretary speak. you have heard another secretary carter speak at another show. chris: that's right. the secretary the navy was traveling this year -- they are often there. it's not that usual that the secretary of defense actually shows up. a few years ago, robert gates and peoplexcitement really happy. it was like,, ooh, the secretary is here. is tooed about the navy big, too much money, there's no reason, we should pull back. there's so many other priorities. antithesis of the navy's mission.

what no one in the room wanted to hear. it was a very awkward presentation, to say the least. and of course they gave him a prize afterwards and thank you for coming. it was awkward. jill: it brought the mood down. chris: like a, it's not always upbeat. necessarily beot most upbeat speaker you're ever going to find. it's a challenge sometimes to decide if he just woke up -- it's also a challenge when you have a luncheon speech. it really is. did -- hemes, but he essentially took 20 minutes ticking off the budget and the frank the good things happening with the navy right now. the administration does have a lot of support for the navy and navy programs. it was a lot of -- if you get past the delivery -- jill: yeah, yeah. chris:

good. it was more "this is what we are doing for you." jill: and then he had a hit on the hill that we will take a look at. let's see what he had to say. richard carter: i do, -- i do have arter: serious problem. separating engineering from enya fracturing -- which is implied in this proposal -- could introduce problems from the phasech and engineering to these sustainment phase and that is, in fact, a frequent stumbling block for programs. isl: so, chris, what he talking about here is a proposal that would take r&d and separate that from manufacturing and programs. you report on this all the time. is that a problem? is there a risk with that concept? chris: separating

r&d out from program acquisition is probably a pretty risky opposition for all of the reasons the secretary said, and frankly, even more. these programs spend a huge amount of money on r&d. aircraftle, the first carrier, the prices being developed. it is a major issue for senator john mccain and the senate armed services community -- committee. is roughly --f 60%. most of that money is the r&d, the design level. they like to call this nonrecurring costs it takes to put that program into development. the joint strike fighter program, the majority of money is in r&d and not in acquisition. splitting these things out just begins to open a whole host of questions and potential issues. jill: yeah. chris: congress of rarely lays

sometimes it is a concept. sometimes they are looking for something political. he had tos hear what say about costs. i think he mentions that a bit. let's take a look. secretary carter: procurement and sustainment are highly coupled with technology and engineering and development and those two together represent about 90% of program cost. so, separating these functions makes no sense. as procurement and sustainment costs are controlled by decisions made during development. this proposal could derail the success we have had lowering our contract cost growth in the most high risk contracts to what is now i-35-year low. of what, it is sort you're saying. costs could increase if you separate this out. you were talking about about

the hill is trying to accomplish when they are putting these proposals forward. what can we expect from this? chris: i don't know. this is in the early stages. each -- this is the policy bill, .he authorization bills the senate has one, the house has one. after they both passed them, later on this year, they have to go to conference. what comes out of conference, you really don't know. but quite often -- congress as a whole is not sure what congress hath wrought. a lot of things are left up to interpretation. honestly, there's not a lot of details in this. there are different offices, duplicating efforts, which is part of the fear of raising costs. it begs many, many questions of where does this oh, where is the sup

where the research and development segues into procurement and r&d will continue for the program -- r&d does not finish and now we are done and we order something. it continues. you are still approving things. it's very hard to slice it right off. jill: and you never know how improve howng to things work and how much is political grandstanding. some: no, but he also took digs at the unhelpful micromanagement. at what point does oversight become micromanagement? congress is trying to talk about we are going to be on top of this, and he is pushing back on that. jill: yeah, yeah. someone has to, i guess, to some degree. thank you, chris, for that. when we

♪ jill: welcome back to "defense news." lorraine martin, recently named the executive deputy vice president for lockheed martin operations and training. i asked her about the global expansion of the egypt combat system -- the aegis combat system and innovations on their way. f-35 is not like any program, but it is exciting to be part of a program and our company that is looking

at this part of the business. jill: you went from a mass -- massive -- ram to a >> absolutely. sure site certified a in romania. this is as construction is commencing in poland as well. can you talk about the international opportunities in that program? mentioned, the u.s. nervy did certify our capability in romania, which is the first of the completion of the second phase, providing missile-defense not only for our choices, but allies in europe. this is a very exciting time for everyone involved. this program, initiated almost , and thiss ago complexity is really unheard of and really

as far as other opportunities, we did the ground breaking for poland to last week and any other sites will be at the discretion of the defense agency and the u.s. navy and we are here to support. jill: that's terrific. it is very exciting. , know as part of that leveraging this forward, there is a lot of touting of the modular approach. i feel like lockheed has spoken about this under a number of its programs, and some of the adjustments being done there. can you talk about that? something you are seeing thematically across the u.s. defense industry and internationally? guest: this is a cross to the boards -- the first technology being driven so quickly. we want to leverage from the commercial industry. the trick is to try to get an match between those two, so we can get to our war fighter

, for the u.s. and our allies, capability as quickly as possible. to do that, you have to have modular systems. systems with plug and play capability. and to use that aegis capability -- we could not do that if we were not building architectures that were open and enable us to bring capabilities back and forth. you are seeing this as a theme across lockheed martin. those forces are present in pretty much any of our markets. technology rate and threats are evolving and our ability to match them in a cost-effective way. see the is nice to pentagon coming forward with that approach. i do want to talk about the f-35 . the air force is preparing to declare the f-35 ages operationa

, which to a l system could be up to 60 days. can you talk a little bit about where that stands? guest: sure. the system is the backbone of the management system for any of the f-35 operations. any flight that flies in f-35 flight, it is managed, field, and flung using the system. it was always planned it to be deployed incrementally. maturing over time. that is what we are seeing today. we are working on the next version, and that version is next to be released. the air force has said a capability of a certain maturity is what they will need, much like the marine corps did prior and we need to make sure we deliver between the august and december timeframe, which is the timeframe they have given

that. we are committed to making that happen. jill: you feel confident? guest: i do. the maintainers system -- they do love the system. it brings up questions related to cyber security, keeping the system secure, the data secure in that system. how much of the challenges and that an kind of update us on that. guest: any system characterizing and carrying sensitive information means to be protected. significantas amounts of testing and certification using just about every government agency in the , to make we can tap sure we can verify the system is safe for every environment it operate a -- it operate sign in. so, we have

we need to ensure wherever it performs in that environment, it's going to be safe and make sure there will be nobleness abilities. in addition to that, we have an infrastructure in place that will make it able to perform and we need to continue to make sure it will be robust and reliable, literally anywhere on the planet. deployed several times and they have been able to operate from wherever they were, but we will keep on it. mll: on this weeks money feature, tips for recent college graduates. >> a cause degree is the key to a future degree. as they gain their financial footing, it's a good time to impart wisdom. think about all the things you wish you knew about money before starting your military career. when your grad starts wearing -- earning a regular paycheck, it can be tempting to s

. have them readjust their budget to accommodate their new salary and living experiences. if they left school with debt, encourage them to make payments with the goal of paying it off when the can. paying more than the minimum monthly payment is the way to go. a top priority should be to save and save often. have them develop an emergency fund of at least three months rent. the one thing we all wish for is more time to save herds are met. college graduates have that in spades. to take advantage of their employer's 401k as soon as possible. saving for retirement in your 20's gives you incredible jumpstart in the future. college may be over, but learning is never complete. these tips may give them the foundation they need to succeed. thanks.

return, a wrapup we were making a move. the dewe had to. made -- we knew that if we came in too high, it would cost us big time. we had to stay low. and boy did we. we locked it in and rode that low rate from navy federal credit union all the way to our first house. it's a split-level ranch. so cute! open to the armed forces and their families for over 80 years. navy federal credit union.

♪ we are back with more from conference,space this time showing you the coolest gadgets for those of you did not check them out in person. our on the show floor, it is chock full of toys exhibitors bring forward. let's check them out. this is a huge hit. it is a surface vessel that can find those lost at sea. drones are not always good news. especially when they are

defender, which uses electromagnetic waves to jam drones and keep them away from base. the defense department and homeland security have about 100 of these, but it is not available for public use. for troops in combat, there are toys like this sensor, which can transmit your vital signs wirelessly to an android app act at command. wearable technologies like touchscreens that they can attach to kids and take on the battlefield. to go with that, they need a centralized data pack where they can power that technology and record everything happening on the battlefield. this is the micro weather center by physical optics corporation. what it is is a tiny weather station marines can carry on their back and feed meteorological information to a satellite. with all that new information being

with that in mind, there is a cyber pavilion, which brings together information from cyber security experts and industry. theyou can take a walk in austrian be a cool fuselage, one of the go to aircraft for vertical lift. it will be one of the navy's aircraft for bringing troops supplies. now things are wrapping up on the show floor. thanks for coming around with us. for defense news tv, i'm megan myers. jill: that's all this week. please tune in next week when we bring you an exclusive interview with eric fanning, the next secretary of the army. check out the latest news and analysis on defensenews.com.

[music] >> dr. charles stanley: he wants us to know him. and one of the ways we get to know him is the way he responds to our request. we learn what he thinks is good, we learn about his timing, we learn about his love, we learn about his silent times, and we learn how to live