SECURITY COOPERATION 2002

 

OPENING REMARKS

 

WELCOME:

 

·        Welcome to Security Cooperation 2002.  Glad you could join us.  Today and tomorrow, we expect over 400 attendees representing the Department of Defense, State Department, industry, at least 30 countries, and representatives from media.

 

·        It promises to be a very good conference.  Today we have 4 presentations focused “inside the ball park” – directed to those who work inside the security cooperation business.  Tomorrow, we have a great line-up of speakers, starting off with the President of Sikorsky Aircraft, the Ambassador from Bahrain, the Deputy Under Secretary of Defense for Acquisition and Technology, and the Deputy Secretary of State.

 

SOME THOUGHTS TO OPEN:

 

·        It has been a very busy year since we held Security Cooperation 2001, two weeks after 9/11.

 

·        Security Cooperation has grown in many ways since then and come to play a very important part in the War on Terrorism.  We have dramatically expanded the level of cooperation with a long list of countries – of partners in that war:  certainly Afghanistan, but also Pakistan, the Central Asian Republics, and India, just to name a few.

 

·        Foreign Military Financing increased from $3.6B in 2002, to $4.1B in 2003.  I expect it will grow significantly in 2004.

 

·        The term Security Cooperation itself is no longer “owned” by the Defense Security Cooperation Agency.  The Secretary of Defense now uses it to describe an even bigger set of political-military activities, including the regional engagement work of the Combatant Commanders.

 

·        In sum, Security Cooperation has become a major set of tools in the Secretary’s tool bag for waging and winning the War on Terrorism.

·        Looking back on the last year, there have been a number of challenges and accomplishments.

 

CHALLENGES: 

 

·        To meet the challenges, we have had to become more agile, more flexible, and we have certainly had to learn how to speed up processes that were not designed for speed.

 

·        By and large, we are meeting those challenges.  Often because good people figure out ways to overcome bureaucratic hurdles.

 

·        Let me give you one example:  training and equipping the Afghan national Army.  That’s a sizeable body of work.  There are big political and military policy issues that have to get sorted out by USDP and State first.  Then JCS and CENTCOM have to determine what that army should look like, and how it should be equipped.  Then someone has to find the money to pay for it and get congressional approval.

 

·        Think back to last October, consider what Afghanistan looked like then, what has happened since, and where we are now.  We’re making progress.  Never as fast as we would like, but making progress.

 

·        One of the reasons we are making progress is the great teamwork of the folks in State Department’s Political Military Affairs Department headed by Linc Bloomfield.  Greg Suchan, Turk Maggi and a host of people there are making things happen.  They deserve a huge amount of credit.  While I’m at it, State Legislative has been fearless engaging Congress, explaining what, why, and when.  My hat’s off to them.

 

THE BUSINESS OF SECURITY COOPERATION:

 

·        Let me shift gears now from the broad view, to the nuts and bolts of the security cooperation business.

 

·        Last year we rolled out 10 reinvention initiatives at SC 2001.  We have spent enormous amounts of time and energy implementing them.  We’re making progress.  Enough progress that Defense News saw fit to editorialize, it is possible to bring about change in Washington.

THE WAY AHEAD:

 

·        Let me tell you where we are going in the next 12 months.

 

·        We will continue our transition from reinvention to a climate of continuous improvement through a concentrated business process reengineering effort.  Fred Beauchamp and Glen Lazarus will tell you more about that in a moment.

 

·        We will drive down the number of open FMS cases through use of the accelerated case closure procedures and detailed coordinated case closure reviews, and return unneeded customer funds.  We are going to carefully study the pros and cons of moving away from lots of small cases to more open, blanket order cases.

 

·        We will make the web-based Portal system a success.  You can view a demonstration of this capability while you are here at the conference.  This innovation will help our customers, and reduce the workload out in the commands.  Freda Lodge and Tom Sippel will tell you more this afternoon.

 

·        We will complete the DSAMS training module in a little over a year and close out the three other training legacy systems.

 

·        We will continue development of the Case Execution Management Information System (CEMIS) with an eye toward source selection in late 2004 or early 2005.

 

·        We will institutionalize performance-based management by implementing Performance-Based Budgeting and Performance-based costing in fiscal year 03.

 

·        We will move aggressively to ensure our internal processes are CFO-compliant.

 

·        And we will build the first security assistance POM.  A demonstration of one of our programming tools is available for your review out in the lobby.

 

 

 

CONCLUSION:

 

·        In and of themselves, none of these initiatives are glamorous.  But taken together they add up to increased support for our war fighters through cooperation with all of our coalition partners engaged in the global war on terrorism.

 

·        This is important work.  To those of you from the Army, Navy, Air Force, DSCA, and the combatant commands, thank you for the hard work and what you’ve done.

 

·        To the State Department team, thank you for the great support.

 

·        To U.S. industry, your technology leads the world.  Equally important, your spirit of teamwork with us across the board can’t be beat – thank you.

 

·        To our coalition partners here today, thank you for your great support.  This is a common fight.  Together, we will win it.

 

·        We’re glad you have joined us for SC 2002 and look forward to these next two days.