mr. tillotson, we're get to you on some questions on this. mr. dodaro first for you or whoever on your team, how has d.o.d. commercial satellite procurement strategy changed over the past decade? >> they've become more reliant on purchasing commercial satellite services. >> has, was d.o.d. procurement policy willfully ignored, in your opinion? >> well it definitely wasn't followed. i'll leave it at that. >> and has d.o.d. or was d.o.d. procurement policy effectively communicated to the various components? >> i'll ask mr. francis to respond to that. who led the work. >> mr. hurd, my understanding is it was effectively communicated. there's a couple of things that get in the way. the two agencies that enforce the procurement policy for sat com is the defense intelligence security agency, disa and the u.s. strategic command. while they have authority, they don't necessarily have enforcement powers, so there's some weaknesses there. and then the funding for satellite communications actually is done through the supplemental budget. so the incentives a

mr. tillotson, we'll get to you on some questions on this. mr. dodaro, first for you or whoever on your team, how has dod commercial satellite procurement strategy changed over the past decade? >> they have become more reliant on purchasing commercial satellite services. >> has, was dod procurement policy willfully ignored in your opinion. >> it definitely wasn't followed. i will leave it at that. >> and has dod or was dod procurement policy effectively communicated to the various components? >> i will ask mr. francis to respond to that who led the work. >> mr. hurd, my understanding it was effectively communicated. there is a couple of things that get in the way. the two agencies that enforce the procurement policy for satcom is the defense intelligence security agency, disa, and u.s. strategic command. while they have authority, they don't necessarily have enforcement powers. so there are some weaknesses there. and then the funding for satellite communications actually is done through the supplemental budget. so the incentives are not as strong

mr. tillotson you could tell us what is happening here. >> certainly. let me address all of through your issues. on the inventory. i agree with mr. dodaro. it is not as it should be. it is part of the broader audit part and the folks meeting this afternoon to talk about the progress that include inventory. it is an area -- >> inventory we cannot audit. >> right. we agree. on the issue of acquisition reform, mr. kindle has movaled moved out with the new guidance to put the new procedures in place. i would respond to mr. dodaro's remarks about strategic portfolio management. we agree. and the deputy security of defense over the last three years led a strategic portfolio review on an annual bases. not only are they done within the military departments but comes to a departmental level where the vice chairman, secretary of defense, and the heads of the security it do a review in plans and week rationalize investments going forward. >> we have a bill dealing with property disposal and management. how many people in the audience own property? would you have th

mr. tillotson, let me share a concern that i have. we want to always give our fighting men and women the resources that they need. and yet what i heard today was a less than robust implementation of some of the gao reports as it relates to your particular area. i also heard you saying we are making progress and all the. what i don't want to do is see that 40% of what you would that really has no impact come substantial impact in terms of a bottom line to intimate it year after year and the 60% that would actually make very systemic changes continue to get rolled over. that's what i'm seeing. that's what i'm reading. is that we are making limited progress as it relates to that. and what happens is that makes t very difficult on someone who is trying to make those appropriation decisions on giving you the tools that you need, and yet we hear about gross inefficiency. so it is incumbent upon you to help prioritize the recommendations that gao is making on an annual basis and say we're going to ever do these companies these have the most

mr. david tillotson, chief management officer at united states department of defense. and dr. patrick conway. doctor, you've got -- you've got a title here. acting principle director -- acting principal deputy administrator, deputy chief administrator for innovation equality and chief medical officer at centers for medicare and medicaid services at the united states department of health and human services. so, i thank you, again, for all of your good work and being here. pursuant to committee rules, all witnesses are to be sworn before they testify. those on the panel as well as those that accompanied mr mr. dodaro, if you would all rise and raise your right hand.

mr. tillotson, i was surprised to see that d.o.d. does not agree with most of gao's recommendations, like, for example, according to the gao, and i quote, "dvm o.d. does not plan to designate the deputy secretary of defense on an appropriate delegate responsibility for overseeing portfolio management as we recommend it." why is d.o.d. not planning to implement gao's recommendation? >> so the department actually agrees with the gao on the intent to move in the direction of the strategic portfolio management and to do a better job of it. so, in fact, we're not in disagreement with the direction gao is suggesting. in fact, i would also state that over the last three years the deputy secretary of defense and the vice chairman have conducted strategic portfolio reviews across families of weapon systems with this very outcome in mind that the gao is suggesting of, how do i make a more rational investment decision? i think the key here has been that the department recognizes that the military departments tend to bring forward individual pie

mr. tillotson, i was surprised to see that d.o.d. was not agree with most of gao's recommendations, for example, according to the gao, and i quote "d.o.d. does not plan to designate the deputy secretary of defense when an appropriate delegate responsibility for overseeing portfolio management as we recommended." why is d.o.d. not planning to implement gao's recommendations? >> the department actually agrees with the gao on the intent to move in the direction stroof t.j. i can portfolio management and do a better job of it. so we're not in disagreement with the direction gao is suggesting. i would also suggest that over the last three years the deputy secretary of defense has conducted portfolio reviews across weapons system with the outcome in mind that the gao is suggesting of how to make a more rational investment decision. i think the key here has been that the department recognizes that the military departments tend to bring forward individual piece parts and as a result we needed to integrate this at a department wide level. tha

mr. tillotson,