[Senate Hearing 117-955]
[From the U.S. Government Publishing Office]





                                



                                                        S. Hrg. 117-955
 
     THE DEPARTMENT OF DEFENSE'S POSTURE FOR SUPPORT AND FOSTERING 
                               INNOVATION

=======================================================================

                                HEARING

                               before the

                            SUBCOMMITTEE ON
                   EMERGING THREATS AND CAPABILITIES

                                 of the

                      COMMITTEE ON ARMED SERVICES
                          UNITED STATES SENATE

                    ONE HUNDRED SEVENTEENTH CONGRESS

                             SECOND SESSION

                               __________

                             APRIL 6, 2022

                               __________

         Printed for the use of the Committee on Armed Services
         
         
         
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                      COMMITTEE ON ARMED SERVICES

 JACK REED, Rhode Island, Chairman        JAMES M. INHOFE, Oklahoma
JEANNE SHAHEEN, New Hampshire             ROGER F. WICKER, Mississippi
KIRSTEN E. GILLIBRAND, New York           DEB FISCHER, Nebraska
RICHARD BLUMENTHAL, Connecticut           TOM COTTON, Arkansas
MAZIE K. HIRONO, Hawaii                   MIKE ROUNDS, South Dakota
TIM KAINE, Virginia                       JONI ERNST, Iowa
ANGUS S. KING, Jr., Maine                 THOM TILLIS, North Carolina
ELIZABETH WARREN, Massachusetts           DAN SULLIVAN, Alaska
GARY C. PETERS, Michigan                  KEVIN CRAMER, North Dakota
JOE MANCHIN III, West Virginia            RICK SCOTT, Florida
TAMMY DUCKWORTH, Illinois                 MARSHA BLACKBURN, Tennessee
JACKY ROSEN, Nevada                       JOSH HAWLEY, 
                                          TOMMY TUBERVILLE, Alabama
MARK KELLY, Arizona                  
                                    
               Elizabeth L. King, Staff Director  
                            
               John D. Wason, Minority Staff Director     
                                     
                                     
                                     
                                     
                                     
                                     
                                     
                                     
 
            



           Subcommittee on Emerging Threats and Capabilities

   MARK KELLY, Arizona, Chairman
JEANNE SHAHEEN, New Hampshire
KIRSTEN E. GILLIBRAND, New York
TIM KAINE, Virginia
ELIZABETH WARREN, Massachusetts
GARY C. PETERS, Michigan             JONI ERNST, Iowa, Chairman
                                     DEB FISCHER, Nebraska
                                     KEVIN CRAMER, North Dakota
                                     RICK SCOTT, Florida
                                     MARSHA BLACKBURN, Tennessee
                                     TOMMY TUBERVILLE, Alabama

                                  (ii)

  


                         C O N T E N T S



                             April 6, 2022

                                                                   Page

The Department of Defense's Posture for Support and Fostering 
  Innovation                                                          1

                           Members Statements

Statement of Senator Mark Kelly..................................     1

Statement of Senator Joni Ernst..................................     3

                          Witnesses Statements

Shyu, The Honorable Heidi, Under Secretary of Defense for             3
  Research and Engineering.
Tompkins, Dr. Stefanie, Director, Defense Advanced Research          11
  Projects Agency.
Brown, Michael, Director, Defense Innovation Unit................    18

Questions for the Record.........................................    43

                                 (iii)


     THE DEPARTMENT OF DEFENSE'S POSTURE FOR SUPPORT AND FOSTERING 
                               INNOVATION

                              ----------                              


                        WEDNESDAY, APRIL 6, 2022

                  United States Senate,    
                   Subcommittee on Emerging
                          Threats and Capabilities,
                               Committee on Armed Services,
                                                    Washington, DC.
    The Committee met, pursuant to notice, at 2:30 p.m. in room 
SR-222, Russell Senate Office Building, Senator Mark Kelly 
(Chairman of the Subcommittee) presiding.
    Committee Members present: Kelly, Kaine, Peters, Ernst, 
Fischer, Scott, and Tuberville.

            OPENING STATEMENT OF SENATOR MARK KELLY

    Senator Kelly. Good afternoon, everyone. The Emerging 
Threats Subcommittee meets this afternoon to receive testimony 
today, and I would like to welcome our witnesses, Mr. Michael 
Brown, Director of the Defense Innovation Unit (DIU); Dr. 
Stefanie Tompkins, Director of DARPA, the Defense Advanced 
Research Projects Agency; and Ms. Heidi Shyu, the Under 
Secretary of Defense for Research and Engineering. Thank you 
all for being here today. I really appreciate you taking the 
time to do this.
    We are going to hear today from leaders who are working to 
support defense and national security innovation, to ensure 
that the United States retains its technological superiority 
and maintains its competitive edge over potential adversaries 
like China in the technological market space.
    This is also a good opportunity for our witnesses to 
discuss how the recently released fiscal year 2023 defense 
budget request supports investments that advance the 
innovations needed to make the U.S. military more effective, 
more lethal, and more capable than those of our potential 
adversaries.
    I would like to welcome again our witnesses who will help 
shed light on these topics today, and I want to take this 
opportunity to again thank you, not only for being here but for 
your service to our nation. I know all of you share my goal of 
leveraging innovation to put the most advanced and effective 
technologies in the hands of our servicemembers and creating a 
vibrant innovation ecosystem that allows our military to stay 
more adaptive and more effective than our adversaries.
    It is no secret the United States is in a competition with 
China, who seeks to dominate the national security as well as 
the commercial technology space. To date, our technological 
superiority has been enough to maintain our advantage despite 
the ambitions and methodical progress of China.
    While the United States continues to enjoy an advantage in 
areas like advanced combat aircraft, missiles, nuclear and 
space technologies, and land and naval power, it is critical 
that we continue to show the Chinese Government and all our 
competitors that starting a conflict or challenging us is 
simply not in their best interest. Continuing to advance our 
technological capability is central to that deterrence, as it 
removes any doubt about our ability to prevail in any head-to-
head conflict, if provoked.
    It is also important to remember that our national 
investments in science and technology research ultimately 
benefit not just the Department of Defense but also the broader 
American public. Technologies funded by the DOD science and 
technology program over the past century have helped produce 
the Internet, the Global Positioning System (GPS), smartphones, 
advanced materials, and even medical advances that have 
improved Americans' prosperity, security, and quality of life. 
Most recently, Department of Defense (DOD) investments in 
medical research have resulted in the vaccines and therapeutics 
being used to address the COVID pandemic today.
    I also want to emphasize that the innovation ecosystems 
that the Defense Department supports work best when they 
leverage state, local, and Federal assets and investments 
holistically, in addition to the broader academic and 
commercial entities needed to power effective public-private 
partnerships. My home state of Arizona is leading on this 
front. Our universities are driving innovation in critical 
fields, from advanced semiconductors and hypersonics to quantum 
computing, and applying advanced data analytics to military 
challenges like managing complex supply chains and improving 
operational planning. They are working side-by-side with our 
military as they do this.
    These ties can help us accelerate our defense research 
programs. We need to foster them, and we need to ensure that we 
are attracting and retaining the talented personnel and 
investing in the testing infrastructure, including in Arizona, 
that makes all this progress possible.
    While innovation is something we have historically done 
better than anyone, we now face an immense threat to our 
technological superiority. China has been making significant 
advancements in cutting-edge technologies, like 
microelectronics and hypersonics, as it seeks to erode our 
military and economic advantages. They do so through not only 
dual-use investments but also through corporate coercion, 
espionage, and their connections between government and 
industry that would not be conceivable or acceptable in any 
democratic country.
    That is why we must take a strategic approach across all 
technologies as we are doing now with our plan to boost 
domestic microchip manufacturing, to bring more of that 
capability back to America. That will create jobs, it will 
reduce our reliance on foreign sources, and also mean that we 
are doing breakthrough research here at home.
    So I hope that in this hearing we can examine how DOD, 
DARPA, and the Defense Innovation Unit (DIU) are using the 
resources and authorities they have been given to help us win 
the global technological competition against adversaries like 
China, by making advancements in key emerging technology areas, 
including artificial intelligence, autonomy, microelectronics, 
5G technologies, and hypersonics. I would also like to ask the 
witnesses to address any challenges that they are facing in 
trying to achieve that goal and give us insights and 
recommendations on what this subcommittee can do to best 
support them as they embark on writing our annual defense 
authorization.
    I will now turn to the Ranking Member, Senator Ernst, for 
any opening comments that she has.

                STATEMENT OF SENATOR JONI ERNST

    Senator Ernst. Great. Thank you, Mr. Chair, and good 
afternoon to everyone. I want to thank all of our witnesses for 
being here today.
    Every one of us in this room agree that increased 
innovation to deliver lethal capabilities to the warfighter 
must be a priority of the Department of Defense. It is not up 
for debate. The questions and policy choices I am interested in 
deliberating concern the mechanics of identifying, screening, 
prototyping, and ultimately delivering technology to the 
warfighter.
    The President's Budget promises record levels of investment 
in research, testing, development, and evaluation. Will the 
Department translate those dollars into combat capability more 
quickly, or will projects with bigger price tags continue to 
die in the valley of death? Barriers like over-classification, 
continued embrace of exquisite hardware over agile service 
contracts, and risk aversion to using authorities like the 
middle tier of acquisition are too high. No budget number can 
clear them. China is moving quickly and aggressively to adopt 
emerging technology for their warfighters, and we cannot let 
the capabilities we provide our soldiers fall behind.
    Today I hope you all can help ease my concerns and we can 
go forward with a commitment to field all necessary systems 
more quickly and effectively.
    Thank you very much to our witnesses. Thank you, Mr. Chair.
    Senator Kelly. Thank you, Senator Ernst. Now I welcome any 
opening remarks from our witnesses, beginning with Secretary 
Shyu.

   STATEMENT OF THE HONORABLE HEIDI SHYU, UNDER SECRETARY OF 
              DEFENSE FOR RESEARCH AND ENGINEERING

    Ms. Shyu. Chairman Kelly, Ranking Member Ernst, and 
Senators of the subcommittee, thank you for inviting us to 
represent the Department of Defense at this hearing on 
accelerating innovation for the warfighter. I am honored and 
proud to be the Under Secretary of Defense for Research and 
Engineering and the Department's Chief Technology Officer.
    I look forward to this testimony as this is the first time 
I have been to the Senate since my confirmation, and I thank 
you for your support during that process. It is an honor to be 
back working at the Department of Defense.
    On behalf of the Secretary, the Under Secretary of Defense 
Research and Engineering (R&E) sets the technology and 
innovation strategy for the Department. The position oversees 
the Defense Advanced Research Project Agency, DARPA, the 
Missile Defense Agency, the Space Development Agency, the Test 
Resource Management Center, and the Defense Innovation Unit, 
DIU. I am pleased to testify with the directors of DARPA and 
DIU by my side today.
    As the Under Secretary, my responsibility is to ensure an 
enduring technological advantage for the United States 
military. We will accomplish this goal by building and 
implementing the Department's technology strategy. As directed 
by Congress and in alignment with the National Defense 
Strategy, the forthcoming National Defense Science and 
Technology Strategy will provide guidance to the Department on 
near-term challenges and ensure that our nation remains the 
global leader in technology far into the future. The challenges 
are vast, from rising nations to rising sea levels.
    In my written testimony I describe the specific critical 
technology areas and how the Department is working faster and 
more collaboratively across prototyping and experimentation. 
Today I want to briefly highlight two areas where the 
Department must work closely with Congress to ensure an 
enduring advantage, first, building a strong foundation for 
science, and secondly, updating how the Department does 
business to better reflect today's world.
    Every strong structure needs to stand on a solid 
foundation. To ensure this country retains our edge and fuels 
future technologies as capabilities, we must make a commitment 
to science and technology, particularly in the basic research. 
We must attract the best people. We must supply the necessary 
infrastructure for research and development (R&D). We must 
rapidly prototype and perform joint experimentation and 
collaborate across the technology ecosystem.
    If we expect the Department to attract the world's best and 
brightest to produce state-of-the-art technologies, we must 
modernize our laboratory and test ranges. The future of the 
Department depends on talented people, and we are committed to 
developing this talent. The Department has invested in a 
variety of workforce educational and research programs, ranging 
from K-12 robotic systems to Science, Technology, Engineering 
and Mathematics (STEM) scholarship and social science research. 
As the strategic competition increases so must our attention to 
Science and Technology (S&T).
    I know many of you on this subcommittee feel the same way, 
and I look forward to working with you to strengthen our S&T, 
its supporting infrastructure, and the workforce.
    In my remaining time I want to discuss how the Department 
must innovate in pace with the technological change and keeping 
with the demands of national defense strategy. Historically, 
the Department has been a leader in R&D. We still are, but the 
growth of private sector R&D has exploded over the last 50 
years.
    As seen in Ukraine, novel commercial technologies paired 
with conventional weapons, can change the nature of conflict. 
The Department's processes, ranging from programming to 
experimentation to collaboration should be updated to reflect 
the dynamic landscape of today and anticipate the needs of 
tomorrow. Our Nation's private sector is our competitive 
advantage, and we must focus on improving how the government 
and private sector work together.
    I am committed to working with you to ensure the Department 
can move as quickly as possible as it engages with the private 
sector and the whole innovation ecosystem to rapidly transition 
technology through fieldable capability.
    Thank you for having us here today. We will all look 
forward to your questions.
    [The prepared statement of Ms. Heidi Shyu follows:]

             Prepared Statement by The Honorable Heidi Shyu
    Chairman Kelly, Ranking Member Ernst, and subcommittee Members 
thank you for inviting the Department of Defense to provide testimony 
for the Senate Armed Services Committee hearing on accelerating 
innovation for the warfighter. I'm honored and proud to be the 
Department of Defense's Under Secretary of Defense for Research and 
Engineering (USD(R&E)) and Chief Technology Officer (CTO). I am pleased 
and appreciate the opportunity to discuss these important topics. I 
look forward to this testimony as this is the first time I have been 
back to the Senate since my confirmation. Thank you for confirming me 
to this role; it is an honor to be back at the Department of Defense.
    On behalf of the Secretary of Defense, the USD(R&E) sets the 
technology and innovation strategy for the Department of Defense, and 
oversees the Defense Advanced Research Projects Agency (DARPA), the 
Missile Defense Agency (MDA), Space Development Agency (SDA) and 
Defense Innovation Unit (DIU). I am pleased to have the Directors of 
DARPA and DIU by my side today. The Department's goal is to provide the 
United States military with an enduring advantage through our 
technology strategy. The long-term strategy will be laid out in the 
forthcoming National Defense Science and Technology Strategy, as 
directed by the Fiscal Year (FY) 2022 National Defense Authorization 
Act (NDAA). In order to be effective, the Department must recognize 
both immediate challenges and be prepared to conduct long-term planning 
and strategies for an increasingly complex environment.
    As can be seen by the Russian invasion of Ukraine, technology 
changes the nature of conflict and battle. Alongside the familiar 
tanks, ships, and aircraft, there are new hypersonic weapons and 
unmanned platforms that must be considered now and in future conflicts. 
Strategic competitors to the United States are rapidly developing 
state-of-the-art technologies and fielding new emerging threats. Many 
of these technologies, such as unmanned aerial systems, are available 
in the commercial market and are being proliferated worldwide. As the 
character of war continues to evolve, we must anticipate and be able to 
defend, fight, and counter any emerging threats and maintain our 
overmatch.
    The Department performs technology horizon scanning to understand 
where strategic competitors are active and to understand what is state-
of-the-art in the commercial sector. This information allows for 
better-informed decisions and allows the department to assess 
opportunities that can be harvested from our Nation's commercial and 
defense innovation ecosystem to accelerate technology adoption, and 
collaborate with our Allies and Partners to develop interoperable 
systems.
    In order to build an enduring advantage for the United States, we 
must first build a strong foundation. This includes an expansive basic 
and advanced research portfolio, state-of-the-art laboratories, diverse 
set of testing facilities and ranges, and the best and brightest 
workforce. This foundation is the innovation engine that will allow us 
to continually develop and produce the breakthrough next-generation 
technology and provide disruptive capabilities expeditiously to our 
military. Department efforts to strengthen this foundation also rely on 
a strong national technological ecosystem and industrial base. 
Congressional efforts to support long-term U.S. leadership in advanced 
technologies, in particular the Creating Helpful Incentives for the 
Production of Semiconductors (CHIPS) for America Act and the broader 
Bipartisan Innovation Act, are inextricably linked to Department's 
ability to successfully build enduring United States advantages in 
applications of technology for national security. Second, we must make 
informed choices about which critical technologies are important to the 
Department. To that end, the Department has identified Critical 
Technology Areas (CTA) that are essential to supporting the National 
Defense Strategy and the mission of the joint force to build an 
enduring full-spectrum advantage for the United States.
           building a foundation for research and development
    The United States' share of international technology innovation (as 
measured by patents, public and private sector funding, and number of 
students graduating with technical and scientific degrees) is 
decreasing, while the Department's need for a strong technical base is 
becoming increasingly urgent. We must do all that we can to maintain 
our advantage in science and technology (S&T), especially in an era of 
strategic competition. The people, processes, and infrastructure that 
enable the creation of innovative technologies are essential components 
to a strong foundation.
Basic Research
    The Department's investments in S&T are underpinned by early-stage 
basic research. Investments in basic research will provide us with the 
seeds to harvest technology far into the future in ways that we cannot 
even imagine today. We have demonstrated time and again that basic 
research yields transformational capabilities for warfighters and often 
wider commercial use. Many technologies we benefit from today--lasers, 
the Internet, GPS, microelectronics, lithium-ion batteries, and 
artificial intelligence--all exist thanks to the Department's 
investments in basic research.
    Take for instance our Vannevar Bush Faculty Fellowship (VBFF), the 
Department's most prestigious single-investigator award, supporting 
basic research with the potential for transformative impact. Professor 
Tresa Pollock, one of our 50 active Fellows, is working on making 3D-
printed materials more resilient for battlefield use. Dr. Pollock's 
research team has developed and licensed a 3D-printable, high strength, 
defect resistant, superalloy that overcomes the issue of cracking under 
stress and could prove useful in hypersonics development. Since 2015, 
20 percent of VBFF fellows have started new companies creating new job 
opportunities.
    The Department's interest in basic research is not limited to only 
the STEM fields. The Minerva Research Initiative supports social 
science research that can improve the Department's basic understanding 
of the social, cultural, behavioral, and political forces that shape 
the world. In February, the Department awarded $28.7 million in grants 
to 17 research projects, covering everything from team cognition for 
space missions to the social impacts of climate change and how best to 
combat propaganda distributed by the PRC.
    A healthy investment in basic research is one of the Department's 
best tools against technological surprise. Strong open research 
collaborations between United States DOD funded researchers and the 
international science community is one of the best ways to understand 
the emerging state of the science. Putting barriers in the way of 
international collaboration does us a grave disservice.
Applied Research and Advanced Development
    Our Applied Research and Advanced Development is supported by the 
Department's robust research and innovation ecosystem. R&E works hand 
in glove with the Service labs, DARPA, Federally Funded Research and 
Development Centers (FFDRCs), and 14 University Affiliated Research 
Centers (UARCs) across the country, defense and commercial companies, 
specializing in fields as varied as nanotechnology, AI and autonomy, 
electronic warfare, lasers, unmanned platforms, just to name a few. The 
Department benefits tremendously from strong partnerships across the 
broad technology ecosystem. The weapons systems and platforms that we 
have developed from precision strike to UAVs to integrated air and 
missile defense are highly sought after worldwide. We must accelerate 
the development of critical technologies to enable us to operate in a 
denied environment.
Laboratory and Test Infrastructure
    The Department's labs and test infrastructure are the proving 
grounds of our most important discoveries. They are a foundational 
element in our ability to generate new ideas, test innovative new 
technologies, and sustain and modernize existing DOD systems. The 
Department's S&T laboratories engage in activities ranging from basic 
research to defense system acquisition support, to direct operational 
support of deployed warfighters. These laboratories are comprised of 
dozens of facilities across 22 states and employ tens of thousands of 
scientists and engineers, both civilian and military. The Department's 
laboratories execute a substantial fraction of the Department's S&T 
accounts, particularly in RDT&E Budget Activities (BA) 02 (Applied 
Research) and 03 (Advanced Technology Development), also known as BA 
6.2 and BA 6.3.
    To develop and test new emerging capabilities rapidly, we must 
modernize our laboratories and test infrastructures. One of the 
Department's Innovation Steering Group's primary lines of effort is to 
assess the state of our laboratories and test infrastructures. While 
existing systems continue to serve us well in testing legacy hardware, 
the Department must anticipate and fund new testing and evaluation 
environments to support emerging technology development.
    Funding lab and test infrastructure has been a recurring budget 
challenge for the Department and thanks are in order to Congress for 
the support in this area. The relative plateau of Military Construction 
(MILCON) budgets over the past decade has resulted in degraded 
facilities and a continual necessity for maintenance and repair work. 
This raises significant concerns about the performance, reliability, 
and long-term viability of the Department's lab and test 
infrastructure. Following congressional direction, the Department has 
submitted an infrastructure requirements report coincident with the 
President's Budget Request since 2017. The Department has taken 
advantage of funds for infrastructure construction, maintenance, and 
repair through a variety of sources and authorizations provided by 
Congress over the last decade, totaling approximately $890 million. The 
Department looks forward to working with Congress through the 
development of spend plans for the use of military construction funds 
and on ways to address the recurring challenges with lab and test 
infrastructure in the future
Education, STEM and Talent Programs
    The Department is committed to cultivating the next generation of 
top-notch researchers, engineers, and innovators. The Department is 
engaged in a number of programs to promote and foster STEM education 
from pre-K all the way through to doctoral programs and beyond.
    R&E oversees the Science, Mathematics, and Research for 
Transformation (SMART) Scholarship-for-Service program. In this 
program, undergraduate or graduate school scholars in select STEM 
fields receive a full tuition scholarship and internships at DOD 
laboratories. Upon graduation, scholars return to their respective 
Department facility and work there for a period equal to the amount of 
time they received the scholarship. In the past year, 416 SMART 
Scholarship recipients started work at Department laboratories or 
facilities.
    R&E also oversees the Department's STEM Office, which recently 
awarded $6 million to Arizona State University (ASU), Boston University 
(BU), and the University of California, Santa Barbara (UCSB) to develop 
K-12 biotech programs with teacher support. ASU's online curriculum is 
supported by their students and is targeted at reaching under-
represented minorities and rural areas in Arizona. BU's program for 
local students includes internships and opportunities at Boston labs. 
UCSB is also developing a master's degree biotech program and will 
pilot with local minority serving community colleges.
    While much of the Department's investments in STEM education are 
academic, the Department is also focused on exciting STEM opportunities 
outside of the classroom to grow our future pipeline. Since 2009, DOD 
STEM has sponsored teams in the For Inspiration and Recognition of 
Science and Technology (FIRST) K-12 robotics competition. This season, 
Department scientists and engineers are expected to provide more than 
300,000 mentorship hours to over a 1,000 teams. The Department also 
held ten 5-day STEM-focused summer camps with 1,200 junior high 
students at laboratories, engineering centers, and academic and 
educational partners. The Army's Educational Outreach Program educates 
approximately 3,500 students in grades 5 through 12 through its Gains 
in the Education of Math and Science (GEMS) program. GEMS aims to 
interest students in STEM who might not otherwise have considered the 
career path.
    Part of building out a talent pipeline for the next generation is 
ensuring that we are tapping into all of the incredible talent our 
Nation has to offer. That's why the Department's R&D community has long 
made concerted efforts to reach out to under-represented communities.
    A key part of these efforts is the Department's long-standing 
relationship with Historically Black Colleges and Universities (HBCUs) 
and Minority Institutions (MIs). The Department has continued to create 
and expand partnerships with HBCUs and MIs to stimulate research and 
innovation leading to the development of technologies critical to 
national security. Specifically, we recently established two new 
Centers of Excellence at HBCUs, representing a $15 million investment. 
West Virginia's Morgan State University, in partnership with Johns
    Hopkins and Development Command (DEVCOM) Army Research Lab, 
established a Center for Advanced Electro-Photonics with 2D Materials. 
North Carolina A&T, in partnership with Wake Forest, established a 
Center for Biotechnology that will develop technology for the detection 
and monitoring of chemical and biological threat agents. These new 
centers join nine other Department established centers at HBCUs and 
MIs.
    Thank you for the authorities that allow the Department to focus 
efforts and investment in STEM development at HBCUs and MIs.
     critical technologies to support the national defense strategy
    The Department's CTAs support the National Defense Strategy and 
address the needs of the joint force. In February, R&E identified 14 
CTAs, grouped into three categories, each of which require a different 
approach to develop. These three categories are: Seed Areas of Emerging 
Opportunity (biotechnology, quantum science, Future Generation Wireless 
Technology (FutureG), and advanced materials), Effective Commercial 
Adoption Areas (Trusted AI & autonomy, integrated network systems-of-
systems, microelectronics, space technology, renewable energy 
generation and storage, advanced computing and software, human-machine 
interfaces), and Defense-Specific Technologies (directed energy, 
hypersonics, integrated sensing and cyber). Early pioneering work in 
seed areas by our national and international research laboratories and 
world-renowned academics can revolutionize our capabilities in future 
conflicts. Effective commercial technology adoption areas can be pulled 
into the Department to rapidly enhance our capabilities. Defense 
Specific Technologies are areas where the DOD must take a lead in the 
R&D to ensure leap-ahead capabilities development.
    While this testimony will not address all the CTAs in depth, I'd 
like to provide some recent updates.
5G and FutureG
    To date, 5G has awarded more than 65 contracts to include over 100 
companies. We are actively experimenting with seven 5G use cases to 
address key warfighting needs in dynamic spectrum sharing, smart 
warehouse and logistics, augmented reality for enhanced warfighter 
training and distributed command and control. The 5G/FutureG Initiative 
demonstrates the benefits of open 5G systems to create smart 
warehouses. In May 2021, we prototyped and demonstrated an Open Radio 
Access Network (Open RAN) in Arlington, Virginia. Immediately afterward 
it was set up as a testbed in a military warehouse in Albany, Georgia 
to enable breakthrough warehouses logistics capabilities.
Biotechnology
    Through our Tri-Service Biotechnology for a Resilient Supply Chain 
(T-BRSC) program we are exploring the potential to generate high-
density, high-performance fuels. Starting this year, T-BRSC will be the 
largest technologically advanced non-medical biotechnology program for 
the Department. The capability to create novel energy independence, not 
derived from fossil fuels, would be revolutionary.
    DARPA last year demonstrated a bio-cement helicopter landing pad in 
48 hours in Guam. This novel approach, when mature, may result in a 
significantly smaller logistics footprint and enable rapid use in 
austere environment.
Microelectronics
    Seventy percent of the world's microelectronics are manufactured in 
Asia contributing to supply chain vulnerabilities like those we have 
seen during the COVID-19 pandemic. In keeping with Section 9903(b) of 
the FY 2021 NDAA legislation, which directs the Department to establish 
a National Network for Microelectronics Research and Development 
(NNMRD) and to expand the global leadership in microelectronics, we 
have led a cross functional team that has matured the Microelectronics 
Commons concept. We are prepared to implement the Commons in three 
stages. First, create ``Lab-to-Fab'' testing and prototyping hubs to 
build a network focused on maturing microelectronics technologies based 
on the latest research ideas. Second, we want to provide broad access 
to these prototyping hubs, through augmented academic facilities (i.e., 
a local semiconductor company or a FFRDC). Finally, we want to increase 
microelectronics education and training of students at local colleges 
and universities, creating a talent pipeline for an engineering 
workforce to bolster the domestic semiconductor economy.
    We recognize that in order for the Microelectronics Commons to have 
an impact, it must be closely coupled and connected to interagency R&D, 
education, and workforce efforts and feed into the whole-of-government 
microelectronics activities. R&E actively participates in several 
interagency coordination efforts and DARPA co-chairs the Subcommittee 
for Microelectronics Leadership under the National Science and 
Technology Council to ensure the Department's efforts fully leverage 
both synergistic and complementary efforts from across the Federal 
Government.
Hypersonics
    We are accelerating plans for rapid development and transition of 
hypersonic weapons to enable fielding of operational prototypes in 
quantity from land, sea, and air by the mid-2020s.
    My office is engaging directly with the Joint Staff, Combatant 
Commands, and Military Services to ensure that the hypersonic 
technologies the Department is developing are integrally linked to 
enhancing warfighter needs.
    Additionally, we are engaging with academia through the Joint 
Hypersonics Transition Office (JHTO) that established the University 
Consortium of Applied Hypersonics (UCAH) in October 2020. This office 
is a new way of leveraging university expertise to support the 
Department's most pressing science and technology hypersonics needs. 
The JHTO also is developing a pipeline of talented individuals who will 
make up the hypersonics workforce of the future.
              working faster and increasing collaboration
    Innovating in a way that will maintain the Department's technical 
advantage depends on increasing our collaboration across the technology 
ecosystem and rapidly performing experimentation, testing, and 
fielding. Commercial technologies are evolving faster than ever before, 
creating potential new asymmetric threats.
    In 2021, through the ISG, the Department created the Rapid Defense 
Experimentation Reserve (RDER), a continuous campaign of joint 
iterative experimentation to close joint warfighting capability gaps. 
We have worked closely with the Joint Staff, Combatant Commanders, the 
Services, with participation from our Allies and Partners, to formulate 
a series of joint experimentation in a highly contested environment 
with the intent to rapidly transition the new capabilities.
    The ISG is the principal forum that advises Department leadership 
and drives DOD-wide strategy, policy, programmatic, cultural, and 
budgetary change in the areas of science, technology, technology 
transition, and innovation. This year, OUSD(R&E) announced the first of 
several sprints with the RDER program.
    OUSD(R&E) funds Joint Capability Technology Demonstration (JCTD) 
programs that intends to meet a single specific capability shortfall 
defined by a Component Commander since a single Service will not 
provision funding to solve a joint problem. For example, R&E funded a 
National Capital Region's Integrated Air Defense System to extend the 
detection range of a specific target that met the NORTHCOM's need.
    OUSD(R&E) also develops and fund Rapid Prototype Programs which 
demonstrates a specific capability that's not addressed by a single 
Service. For example, Southern Cross Integrated Flight Research 
Experiment (SCIFIRE) is maturing solid rocket motor for an air-
breathing hypersonic cruise missile.
    OUSD(R&E)'s Advanced Capabilities' Defense Modernization & 
Prototyping (DM&P) program focuses on funding and transitioning 
innovative technologies from small businesses and non-traditional 
performers.
Collaboration with the Private Sector
    Private sector investment in technology has never been greater than 
it is today. However, many critical technology areas are not attractive 
to the private sector due to the expensive costs associated with 
initial investment. To ensure that the private sector pursues the 
technologies needed for national defense, the Department is increasing 
its leadership engagement and collaboration with the private sector. 
DIU, along with other Innovation Centers across the Department, engage 
with commercial industry to accelerate innovative solutions to solve 
military problems.
    COVID-19 induced supply chain disruptions over the past few years 
have laid bare the importance of domestic manufacturing to our national 
and economic security. Catching up with manufacturing growth abroad, 
however, will depend on our development of leap ahead technologies like 
robotics, additive manufacturing, and biotechnology. The Department's 
Manufacturing Technology program (ManTech) is working to encourage and 
support this sort of innovation in the United States manufacturing 
ecosystem.
    ManTech oversees 9 Manufacturing Innovation Institutes (MIIs). 
These public-private partnerships specialize in exciting fields like 
photonics or advanced fabrics and work to create workforce education 
pathways. Lightweight Innovations For Tomorrow (LIFT) has an innovative 
training and credentialing program that provides a curriculum to Active 
Duty soldiers, enabling them to earn credentials in high demand 
manufacturing fields. MIIs are transforming how universities and 
community colleges educate and how companies identify skills needed for 
industries of the future. These curriculum and workforce programs have 
helped more than 30,000 learners to date, and we were proud to welcome 
President Biden to the Advanced Robotics for Manufacturing (ARM) 
Institute in January.
    Despite the Department's enormous contribution to the economy and 
creation of game changing technologies, it is still a challenge for a 
small business or startup to work with the DOD. We are committed to 
doing more to help small businesses and making it easier to work with 
the DOD and to bridge the valley-of-death.
    The Department's Small Business Innovation Research (SBIR)/Small 
Business Technology Transfer (STTR) programs allow the DOD to support 
innovative small businesses to develop breakthrough technologies and 
capabilities that we need.
    We have upgraded our SBIR/STTR Innovation Portal, making it easier 
to engage and participate with the Department. We are engaging with the 
small business community to understand the challenges that they face 
and are working to systemically tear down obstacles.
    We are also focused on improving how the Department engages with 
the private sector to ensure that defense needs will be addressed by 
dual-use technologies. Increasing private sector investments in 
technology is advantageous for the Department so that we can purchase 
that technology commercially as it becomes available, supporting both 
defense and commercial needs. The Department is exploring additional 
ways to take a more active role in the commercial technology sector to 
ensure that defense objectives will be addressed.
                 collaboration with allies and partners
    Collaboration with Allies and Partners may significantly increase 
the speed in which we can develop interoperable technologies benefiting 
both nations. Many existing multilateral and bilateral agreements serve 
as a platform for increased collaboration, such as The Technical 
Cooperation Program (TTCP) with our ``Five Eyes'' Allies (Australia, 
Canada, New Zealand, United Kingdom, and United States), and the North 
Atlantic Treaty Organization (NATO) Science and Technology 
Organization. We are also looking to expand international R&D defense 
collaboration with other Allies and Partners based on shared defense 
interests and technology priorities.
    The Department supports NATO's efforts to leverage centers of 
innovation to meet NATO's operational requirements. NATO's Defense 
Innovation Accelerator for the North Atlantic (DIANA) seeks to 
accelerate the development of dual-use emerging and disruptive 
technology through innovation. DIANA's focus on multi-sector 
participation will highlight innovative entrepreneurs from small start-
ups, mid-sized companies and academic institutions that can solve 
critical defense and security challenges.
    The AUKUS (Australia, United Kingdom, United States) defense pact 
is a new area of opportunity that is already showing success. Last 
year, President Biden, along with Prime Minister Morrison and Prime 
Minster Johnson, announced the creation of an enhanced trilateral 
security partnership among our three nations. To meet the challenges of 
the twenty-first century, AUKUS will fortify longstanding bilateral 
ties while strengthening the security and defense interests in the 
Indo-Pacific region by evolving advanced capabilities collectively.
    Working closely with our Allies and Partners, the Foreign 
Comparative Testing (FCT) Program enhances our Nation's military's 
capabilities. FCT is locating, assessing, and fielding mature foreign 
developed technology products to meet emerging defense requirements. 
For example, our soldiers utilize a palm-sized unmanned aerial vehicle 
(UAV) from Norway that enables enhanced battlefield surveillance and 
reconnaissance, a long-range missile from Israel that's improving 
standoff lethality and survivability against enemy air defense systems. 
Our sailors will utilize a mobile coastal defense rocket system from 
the Republic of Korea, providing a counter swarm capability against 
maritime attack craft.
                               conclusion
    In order to provide the United States with the long-term capability 
to develop and rapidly field the most innovative technologies to 
maintain overmatch, it is essential to have a solid R&D foundation 
consisting of a broad base of basic and applied research, rapid 
prototyping capability, continuous joint experimentation and testing, 
state-of-the-art lab and test infrastructure, rapid ability to 
transition to fielding, and a highly-talented workforce. The objective 
of increased collaboration across our technology ecosystem is to 
accelerate the timeline in which emerging technologies can 
revolutionize our warfighting capabilities. Implementing these concepts 
through the National Defense Science and Technology strategy will build 
a technological enduring advantage for the United States Military. 
Thank you for the invitation to testify in your Committee, and I look 
forward to the discussion.

    Senator Kelly. Thank you, Secretary Shyu. Dr. Tompkins?

STATEMENT OF DR. STEFANIE TOMPKINS, DIRECTOR, DEFENSE ADVANCED 
                    RESEARCH PROJECTS AGENCY

    Dr. Tompkins. Thank you, Chairman Kelly and Members of the 
Subcommittee. I echo Secretary Shyu's thanks for the 
opportunity to testify today, and I thank you very much for the 
committee's strong support of DARPA over many years.
    It is great to be here with my colleagues. As you know, our 
organizations work together constantly to advance national 
security, and we are part of a really extraordinary science and 
technology ecosystem that extends far beyond just the 
Department of Defense.
    Within that ecosystem, DARPA has a unique role. Our mission 
is to create technological surprise. We do this by making 
pivotal investments in technologies that we believe have the 
potential to completely transform national security. We have 
been delivering on the mission for over 60 years. We brought to 
the DOD, and to the Nation, game-changers like precision-guided 
munitions, and the Javelin missile, by the way, stealth 
aircraft, unmanned aerial vehicles (UAVs), the internet, 
miniaturized GPS receivers, and as you mentioned, Mr. Chairman, 
most recently, MRNA vaccines.
    We are extraordinarily lucky in that we are able to work 
extremely quickly. We do not just tolerate but we embrace risk, 
and we constantly seek what we call DARPA-scale impact. One of 
our program managers once joked, ``If you didn't invent the 
internet, you only get a B.'' Now I should add that that 
program manager was working on MRNA vaccines at the time, so I 
think in retrospect he probably earned an A.
    But that is the past, and so you should ask what we are 
working on today. Imagine a world where a soldier's basic 
needs, things like food, water, fuel, or medicine are made 
right on the spot from waste material, say from plastic, or 
even just from the air, completely independent of vulnerable 
supply chains. Imagine a world where both our electronics and 
our software are completely secure by design and thus 
unhackable. Imagine a world in which all of our military 
systems, which today have a lot of trouble interoperating, can 
seamlessly communicate and work together to provide inherently 
joint capabilities to our military commanders. Those are some 
of the futures that DARPA seeks to make real.
    We are also working to transition technology faster than 
ever. It is a very dynamic world, and as we have all discussed 
and observed, quite volatile. So we are creating new ways to do 
testing, faster than real time and with the assistance of 
artificial intelligence (AI), to explore thousands of use cases 
and missions.
    We are transitioning technology not just through programs 
of record but through new commercialization initiatives, 
through new partnerships with the Combatant Commands (COCOMs), 
or with organizations such as DIU or other parts of the R&E 
enterprise, or through rapid DevOp cycles in order to get 
software directly into the hands of users.
    In addition to the futuristic versions that I shared a 
minute ago, we also work closely with the military services to 
de-risk nearer-term technology. For example, as has been very 
recently reported in the press, DARPA, in partnership with the 
U.S. Air Force, recently completed a second successful flight 
test of our Hypersonic-Air breathing Concept, known as HAWC. 
This test set the U.S. record for scramjet endurance, and we 
believe it is an inflection point on a path to reclaiming U.S. 
leadership in hypersonic weapons.
    In my written testimony you will see many more examples of 
DARPA portfolios and programs. I ask you please to remember 
that some of those will fail. If they do not, it means we are 
not trying hard enough and we are not taking enough risk. But 
some of those will succeed, and in doing so may fundamentally 
transform our nation and strengthen our national security in 
ways that we can only begin to imagine.
    I thank you again for your support to DARPA over many, many 
years, and I look forward to working with you and others in 
Congress to ensure the security and resilience of our great 
nation, and as Secretary Shyu mentioned, looking forward to 
answering your questions.
    [The prepared statement of Dr. Stefanie Tompkins follows:]

              Prepared Statement by Dr. Stefanie Tompkins
    Chairman Kelly, Ranking Member Ernst and Members of the 
Subcommittee, thank you for the opportunity to testify before you 
today. I am Stefanie Tompkins, Director of the Defense Advanced 
Research Projects Agency, DARPA. It is a pleasure to be here with my 
colleagues, Ms. Heidi Shyu, from the office of the Undersecretary for 
Research and Engineering (USD(R&E)), and Mr. Michael Brown, Director of 
the Defense Innovation Unit (DIU). Our organizations work together 
every day to advance national security through new technology. DARPA 
plays a particular role in both the DOD and the broader U.S. technology 
ecosystem. That role is to anticipate, create, and demonstrate 
breakthrough technologies that are outside and beyond conventional 
approaches--technologies that hold the potential for extraordinary 
advances in national security capabilities.
    For more than 60 years, DARPA has held to a singular and enduring 
mission: to create technological surprise. We do this by making pivotal 
investments in breakthrough technologies for national security. Working 
with innovators inside and outside government, DARPA has repeatedly 
delivered on our mission, transforming revolutionary concepts and 
seeming impossibilities into practical capabilities. The results have 
included game-changing military capabilities like precision weapons, 
stealth technology, and unmanned aerial vehicles, as well as icons of 
modern civilian society such as the internet, automated voice 
recognition and language translation, miniaturized GPS receivers, and, 
just a decade ago, mRNA-based vaccines. Today, DARPA's role has never 
been more vital. From being front and center in our Nation's fight 
against the COVID-19 virus, to defensive as well as offensive 
hypersonics technologies, state of-the-art artificial intelligence, 
quantum technologies, and directed energy solutions, DARPA is 
delivering on our most pressing security needs.
    DARPA creates and executes programs that rely on and inspire an 
innovation ecosystem of academic, industry, and government partners. 
Efforts to strengthen the U.S. technological ecosystem as a whole, such 
as the Bipartisan Innovation Act, would therefore significantly enable 
DARPA's efforts to provide game-changing technical solutions. We work 
with national security leaders and the Nation's military services to 
understand today's hardest challenges and anticipate tomorrow's, and 
demonstrate transformational technology solutions for both.
    We work quickly, embrace risk, and seek what we call ``DARPA-scale 
impact''. One of our program managers once joked, ``if you didn't 
invent the internet, you get a B''. In recent years, with the 
democratization and acceleration of technological advances around the 
world, we have increased our emphasis on rapid prototyping and on 
faster and lower-cost methods of designing, building, and testing 
technology not just in controlled settings but in the complex, dynamic, 
messy real-world environments in which they must ultimately succeed. 
Today, I will focus my testimony on examples of DARPA portfolios and 
programs in various stages of development and transition. Please 
remember: some of these may fail. But some will succeed, and in doing 
so may fundamentally transform our ability to defend the homeland, 
deter adversaries, increase global stability, and lay the foundations 
for continued technological surprise.
                          ``ai next'' campaign
    DARPA has been a leader in artificial intelligence since the 1960s. 
The agency played key roles in realizing the first and second waves of 
AI (first rule-based, then statistical-learning-based), and now we are 
working to realize the third wave, which can be described as contextual 
adaptation. To better define a path forward, DARPA announced in 
September 2018 a multi-year investment of over $2 billion in new and 
existing programs called the ``AI Next'' campaign.
    Currently, DARPA is pursuing more than 39 programs that are 
exploring ways to advance the state-of-the-art in AI, pushing towards 
third wave contextual reasoning capabilities. In addition, more than 60 
active programs are applying AI in some capacity, from sharing 
electromagnetic spectrum bandwidth to detecting and patching cyber 
vulnerabilities.
    Under the AI Next campaign, key areas being explored include 
improving the robustness and reliability of AI systems; enhancing the 
security and resiliency of machine learning and AI technologies; 
reducing power, data, and performance inefficiencies; and pioneering 
the next generation of AI algorithms and applications, such as 
``explainability'' and commonsense reasoning.
    DARPA also has a quick-turn funding mechanism called Artificial 
Intelligence Exploration (AIE) that allows the agency to test the 
feasibility of AI concepts by rapidly developing prototypes. AIE 
opportunities are released on a rolling basis from across DARPA's 
portfolio, providing awards within 90 days of up to $1 million each for 
18-month periods of performance. During these periods of performance, 
we investigate very high-risk, high-reward topics to assess feasibility 
and clarify whether the area is ready for increased investment. To 
date, we have made 244 contract awards for more than 37 AIE topics, and 
launched at least 2 significant research investments based on the AIE 
research results.
                 applying ai (example): cbrne detection
    A representative example of our AI Next campaign is the SIGMA+ 
program, which seeks to alert authorities when there is a chemical, 
biological, radiological, nuclear, or explosive (CBRNE) attack in a US 
city or on a military base. Last year, in collaboration with the 
Indianapolis Metropolitan Police Department (IMPD), we concluded a 
three-month pilot study focused on early detection and interdiction of 
CBRNE threats. For the pilot, researchers integrated highly sensitive 
chemical and biological sensors into several IMPD vehicles and 
characterized the real-world environmental background data over a large 
part of the Indianapolis metropolitan region. Researchers then used AI-
supported algorithms to detect chemical simulants against that 
background.
    Knowing the naturally occurring chemical and biological backgrounds 
in an area allows customization of both sensors and algorithms to 
minimize false positives and maximize detections of threats. During the 
Indianapolis pilot study, nuisance alarms were suppressed by 75%.
    The Indianapolis pilot study and field testing marked the first 
time DARPA was able to demonstrate comprehensive SIGMA+ sensor 
technology in a law-enforcement vehicle, including air sampling, power, 
and a user interface that provided real-time analysis of potential 
threats via a tablet. The ultimate goal is to outfit a citywide fleet 
of law enforcement and other public service vehicles to enable a 
continuously refreshed mobile network that can detect CBRN threats with 
low false-alarm rates across a city and region. Next steps for SIGMA+ 
include testing in other metropolitan regions and developing 
operational procedures to integrate sensors into real-world use.
       advancing ai (example): machine learning with limited data
    Much has been written about how the commercial world has harvested 
and created large sets of labeled data for training machine learning 
(ML) models. Unfortunately, when we try to use these models on DOD and 
Intelligence Community alert problems, they fail. This is because 
military-relevant data collections are often degraded and noisy--we are 
collecting images and audio non-cooperatively, we are processing 
seized/degraded media, or our sensors are different than commercial 
sensors. DARPA's Learning With Less Labeling program is developing new 
learning algorithms that require much less information to train or 
update ML models with increased accuracy.
    The approach we take in Learning with Less Labeling (LwLL) is to 
generalize the machine learning objective. It turns out that many 
machine learning algorithms boil down to an optimization problem. The 
research goal is to use a million times fewer images than today's 
standard practice to train a system, and require roughly 100 labeled 
examples to adapt a system instead of the millions needed today.
    In the context of identifying objects in images, LwLL researchers 
have already demonstrated and benchmarked, using real-world examples, a 
new technique that requires 1000x less labeled data than conventional 
ML with only 10% degradation in accuracy. This early breakthrough is 
promising and is already being shared with DOD transition partners, 
while the program continues to advance towards its ultimate goal of 
demonstrating a 1,000,000x reduction in labeled data required.
                           assault breaker ii
    Modern warfare is becoming less about singular platform and weapon 
capabilities, and more about combinations of systems that can be 
rapidly developed and composed into more effective warfighting 
constructs. DARPA's Assault Breaker II (ABII) initiative seeks to 
change fundamentally the way the military thinks about designing, 
buying, and deploying future systems.
    First, the ABII program addresses several challenges posed by our 
strategic competitors. Patterned after the original Assault Breaker 
program in the late 1970's, a memorandum of agreement was signed by 
DARPA and the vice chiefs of all five Services to establish a joint 
service team creating technology solutions for these critical 
challenges. Interacting closely with the intelligence, military 
operator, and technology communities, the team's first objective is to 
design warfighting operational constructs based on new and emerging 
technologies and capabilities.
    The program's second objective is to develop an advanced modeling 
and simulation environment to support analysis of true cross-domain, 
cross-service warfighting constructs. Finally, the program is tying 
modeling and simulation into an interactive experiment environment to 
support exploration of highly complex, interdependent approaches that 
characterize the future of warfighting.
    ABII seeks to organize this evolution in warfighting and act as a 
conduit both to communicate technology solutions to the services as 
well as articulate critical challenges to the technology development 
community in a manner where they can appreciate the larger picture. 
ABII will serve as a technical baseline for multi-domain operations 
moving forward.
                   electronics resurgence initiative
    In June 2017, DARPA announced the Electronics Resurgence Initiative 
(ERI) as a bold response to several technical and economic trends in 
the microelectronics sector. Among these trends, the rapid increase in 
the cost and complexity of advanced microelectronics design and 
manufacture is challenging a half-century of progress under Moore's 
Law, which holds that the number of transistors per silicon chip 
doubles every year. Meanwhile, non-market foreign forces are working to 
shift the electronics innovation engine overseas, while cost-driven 
foundry consolidation has limited DOD access to leading-edge 
electronics, challenging U.S. economic and security advantages. 
Moreover, highly publicized challenges to the Nation's digital backbone 
are fostering a new appreciation for electronics security--a longtime 
defense concern.
    Building on the tradition of other successful government-industry 
partnerships, ERI is forging forward-looking collaborations among the 
commercial electronics community, defense industrial base, university 
researchers, and the DOD to address these challenges. There is 
significant historical precedent to suggest the viability of this 
approach, as each wave of modern electronics development has benefited 
from the combination of defense-funded academic research and commercial 
sector investment.
    Given today's cost, complexity, and security challenges, it is 
critical that the nation collaboratively innovate on the next 
generation of electronics advancement. DARPA is advancing research in 
four key areas--3D heterogeneous integration, new materials and 
devices, specialized functions, and design and security--each of which 
have been central to ERI since its inception. Leveraging 3D 
heterogeneous integration, the next wave should support continuing 
electronics progress despite challenges to traditional silicon scaling. 
This integration will enable innovators both to add new materials and 
devices to the silicon foundation and create specialized functions 
precisely designed to meet the diverse needs of the commercial and 
defense sectors. To manage the complexity of working in three 
dimensions, the next wave will also demand new architectures and design 
tools that address rising design costs, enable rapid system upgrades, 
and make security integration a primary design concern.
    A major component of ERI is the JUMP Initiative. In late December 
2021, DARPA announced its participation in a new public-private 
partnership with the Semiconductor Research Corporation (SRC) and a 
consortium of companies in the commercial semiconductor industry and 
the defense industrial base called the Joint University 
Microelectronics Program 2.0 (JUMP 2.0). The program supports high-
risk, high-payoff university research that addresses existing and 
emerging challenges in information and communication technologies. JUMP 
2.0 builds off an earlier iteration of the SRC-led collaboration that 
was formed in 2018 to support university research centers focused on 
maintaining U.S. microelectronics innovation. The targeted efforts of 
ERI play a critical role in the U.S. microelectronics ecosystem and 
support the whole-of-government efforts underway to ensure continued 
leadership in this important area.
                                 cyber
    In addition to addressing threats in the physical world, DARPA is 
also intensely focused on threats in the virtual world. To further this 
area of research, last year, DARPA conducted its first bug bounty 
program--the Finding Exploits to Thwart Tampering (FETT) Bug Bounty--to 
evaluate hardware protections in development on the System Security 
Integration Through Hardware and firmware (SSITH) program. SSITH 
explored hardware security architectures and tools that protect 
electronic systems against common classes of hardware vulnerabilities 
exploited through software, with the goal of breaking the endless cycle 
of software patch-and-pray.
    Through FETT, hundreds of cybersecurity researchers and reverse 
engineers had virtual access to secure SSITH processors in order to 
detect weaknesses and vulnerabilities. Key to this effort was the 
development of a scalable, virtualized platform for remotely testing 
and evaluating the processor prototypes. The platform is a first-of-
its-kind infrastructure that provides a means of virtually 
crowdsourcing the analysis of future processor technologies.
    After rigorous testing and evaluation, researchers have proven that 
SSITH concepts provide robust hardware safeguards against known common 
weakness enumeration (CWE) classes of hardware vulnerabilities. The 
program is now focused on transitioning and converting the proven 
concepts from lab discoveries to practical application. For instance, 
SSITH successfully worked with Arm Ltd to incorporate SSITH protections 
into Arm's microcontroller-class and high-performance processor product 
lines. Over 20 billion Arm processors are made each year, and are used 
widely within DOD weapon systems.
                           long range effects
    The ability to field hypersonic systems ranks high on the DOD's 
list of priority technologies, due in part to the pace of research by 
peer adversaries. Hypersonic flight at velocities of more than five 
times the speed of sound offers major strategic advantages, especially 
for conducting military operations from longer ranges, with shorter 
response times, and enhanced effectiveness compared to current military 
systems.
    Last year, DARPA, in partnership with the U.S. Air Force, completed 
a free flight test of its Hypersonic Air-breathing Weapon Concept 
(HAWC). The missile was released from an aircraft seconds before its 
scramjet (supersonic combustion ramjet) engine kicked on.
    The HAWC vehicle operates best in the lower atmosphere, where speed 
and maneuverability make it difficult to detect in a timely way. It 
could strike targets much more quickly than subsonic missiles and has 
significant kinetic energy even without high explosives. The test 
brings us one step closer to transitioning HAWC to a program of record 
that offers next generation capability to the U.S military.
                      distributed complex systems
    For several years now, DARPA has been spearheading the ``Mosaic'' 
construct of future warfare. The Mosaic concept posits that using less 
expensive systems brought together on demand as the conflict unfolds 
could facilitate the creation of ``effects webs,'' enabling diverse, 
agile applications--from a kinetic engagement in a remote desert 
setting, to multiple small strike teams operating in a bustling 
megacity, or an information operation to counter an adversary spreading 
false information in a population threatening friendly forces and 
strategic objectives. Mosaics, therefore, can be rapidly tailored to 
accommodate available resources, adapt to dynamic threats, and be 
resilient to losses and attrition.
    One program resulting from the Mosaic concept is STITCHES, or 
System of Systems (SoS) Technology Integration Tool Chain for 
Heterogeneous Electronic Systems. STITCHES is an open-source approach 
to allowing interoperability between systems that have complimentary 
functions but were not designed to be implemented together. Recently, 
the DOD evaluated STITCHES, determining it enables Joint All Domain 
Command and Control (JADC2) interoperability. By pushing message 
translation to the edge, joint interoperability could be achieved via a 
federated point-to-point solution that scales linearly vice the 
traditional quadratic complexity scaling. As the number of systems and 
domains increases, this linear scaling offers a dramatic decrease in 
complexity and cost while increasing speed of interpretation and 
adaptability. STITCHES enables not just data translation but also in-
line synchronization, and functions that are traditionally achieved by 
changing system software or physical gateways.
                 warfighter protection and performance
    Spinal cord injury disrupts the connection between brain and body, 
causing devastating loss of physiological function to the wounded 
warfighter. In addition to paralysis, servicemembers living with these 
injuries exhibit increased long-term morbidity due to factors such as 
respiratory and cardiovascular complications. Bridging the Gap Plus 
(BG+), a new DARPA program that combines neurotechnology, artificial 
intelligence, and biological sensors, opens the possibility of 
overcoming the worst effects of spinal cord injuries by promoting 
healing at the wound site and interfacing with the nervous system at 
points around the body to restore natural functions such as breathing, 
bowel and bladder control, movement, touch, and proprioception that can 
be lost when the spinal cord is damaged.
    BG+ encompasses two research thrusts aimed at developing and 
integrating technologies for injury stabilization, regenerative 
therapy, and functional restoration to support patients during all 
phases of spinal cord injury--acute, sub-acute, and chronic. DARPA's 
focus is on improving healing outcomes during the acute and sub-acute 
phases of injury (approximately the first 2 days to two weeks after 
injury), and on restoring lost function in the chronic phase of injury.
    DARPA created BG+ as a five-year program, scheduled to conclude 
with clinical demonstrations in human patients. Just this February, BG+ 
researchers demonstrated a minimally invasive approach to restore bowel 
function in cats, which avoids the pitfalls of traditional surgical 
approaches that can leave patients with irreversible nerve damage. This 
functionality will be incorporated into a user-controlled, integrated 
visceral function restoration system to give veterans and others with 
paralysis a useable long-term solution.
                              gray warfare
    The U.S. is engaged with its adversaries in an asymmetric, 
continual, war of weaponized influence narratives. Adversaries exploit 
misinformation delivered via influence messaging: blogs, tweets, and 
other online multimedia content. Analysts require effective tools for 
continual sensemaking of the vast, noisy, adaptive information 
environment to identify geopolitical influence campaigns.
    Today, detection and sensemaking of adversary influence campaigns 
is largely manual and ad hoc. With current tools, it is difficult to 
connect messages over time and across multiple platforms to track 
evolving campaigns, and analysts must manually sift through a high 
volume of messages to find those with relevant influence agenda and 
then gauge which ones are gaining traction and with whom.
    The INCAS program began in 2021 to address these challenges. If 
successful, INCAS will provide analysts with the ability to detect, 
characterize, and track geopolitical influence campaigns across 
multiple languages and platforms with confidence. INCAS addresses the 
increasingly complex world of information warfare, building upon and 
adding to previous DARPA successes with our programs in Media Forensics 
and Semantic Forensics, which detect manipulated imagery and 
information.
                        climate and environment
    Sea level rise and wave-induced flooding during storm events 
threaten sustainability of the more than 1,700 Department of Defense 
(DOD) managed military installations in coastal areas worldwide. 
Despite previous efforts to implement storm mitigation solutions, 
damage due to storm surge and flooding continues to impact military 
infrastructure. Current DOD coastal protection measures, including 
bulkhead and coastal seawalls, may reflect wave energy, exacerbate 
flooding, create downstream sediment loss, and restrict water exchange. 
To protect DOD personnel and infrastructure, DARPA has established the 
Reefense program, which aims to develop novel hybrid biological and 
engineered reef-mimicking structures to mitigate wave and storm damage 
and reduce the ecological impact of current coastal protection 
measures.
    As part of the Reefense program, custom wave-attenuating base 
structures will promote coral or oyster settlement and growth, which 
will enable the structures to be self-sustaining and address the 
infrastructure-related impacts of sea level rise over time. Program 
performers are employing recent innovations in materials science, 
hydrodynamic modeling, and adaptive biology to optimize these 
structures for responding to a changing environment.
    Reefense takes the novel approach of integrating structural 
engineering, reef health, and adaptive biology to create reef-like 
ecological systems. These structures will help significantly reduce 
infrastructure maintenance costs, promote ecosystem health, and 
strengthen DOD's ability to maintain its infrastructure and military 
readiness.
               modeling, simulation, and experimentation
    Following recent successful experimentation with Marines at Camp 
Lejeune, North Carolina, DARPA's Prototype Resilient Operations Testbed 
for Expeditionary Urban Scenarios (PROTEUS) program will transition to 
the Marine Corps Warfighting Laboratory (MCWL) in Quantico, Virginia.
    PROTEUS comprises a suite of visual software training and 
experimentation tools that enables Marines from squad to battalion 
level to explore and develop novel multidomain fighting concepts. The 
tools allow Marines to integrate emerging capabilities and learn how to 
effectively employ them in realistic expeditionary combat scenarios.
    DARPA launched PROTEUS in 2017 and recently completed a five-day 
capstone demonstration with 1st Battalion, 2nd Marines at Camp Lejeune, 
where Marines rapidly explored and assessed future infantry battalion 
task organizations, force packages, and tactics. PROTEUS provided 
unique insights in support of the Marine Corps' Force Design 2030, the 
Service's plan for organizing, training, and equipping Marines for 
future challenges.
    Using the PROTEUS software, Marines were able to visualize and 
manipulate their electromagnetic footprint, apply logistics support 
automation, and obtain quantitative analytics on the effectiveness of 
force packages and tactics in real time. PROTEUS brings the power of 
multi-domain force package and CONOPS (concept of operations) 
development to the platoon, company, and battalion.
          transition and business/countering foreign influence
    Over the past two years, DARPA's Embedded Entrepreneurship 
Initiative (EEI) has helped more than 50 pre-seed stage research teams 
raise over $275 million in U.S. investment, spin out a dozen new 
companies, establish numerous joint development agreements with 
corporate partners, and commission multiple manufacturing facilities. 
In early 2021, DARPA launched an expansion of EEI with the goal of 
accelerating 150 DARPA-backed technologies out of the lab and into 
products that promise to fundamentally change the way we live, work, 
and fight. EEI augments technical research teams with critical 
entrepreneurial expertise, top-tier commercialization mentors, and 
connections to investors, effectively countering aggressive adversary-
nation investors by building stronger companies that have the ability 
to attract U.S. capital.
    EEI provides catalytic funding, mentorship, and investor and 
corporate connections for select DARPA researchers. Resources include: 
an average of $250,000 in non-dilutive funding to hire a seasoned 
entrepreneur or business executive for one to two years with the goal 
of developing a robust go-to-market strategy for both defense and 
commercial markets; dedicated commercialization mentors with extensive 
private sector experience; and engagement with DARPA's private sector 
Transition Working Group comprising over 100 top-tier U.S. investors 
and corporations key to scaling and supply chain development.
    DARPA-funded scientists and engineers are an invaluable resource 
for national competitiveness. Supporting these researchers with 
tailored business expertise to advance their innovations for public and 
military use is critical to obtaining the full benefit from taxpayer 
funded R&D investments.
                 foundations of technological surprise
    One of the classic models of technology development begins with 
basic or early-stage applied research that uncovers a new principle or 
phenomenon, which innovators then apply and develop into a new 
capability. This model cannot account for the origin of all of the 
technologies DARPA has had a hand in, but it applies to many of them. 
DARPA's job is to change what's possible--to do the fundamental 
research, the proof of principle, and the early stages of technology 
development that take ``impossible'' ideas through ``implausible'' and 
then to, surprisingly, ``possible'' or even ``likely.'' No other DOD 
agency has the mission of working on projects with such a high 
possibility of producing truly revolutionary new capabilities--or such 
a high possibility of failure.
    A particularly timely and relevant example has to do with quantum 
computing. Several DARPA programs explore aspects of quantum 
computation to determine which approach offers the most promise for 
substantial practical advantage. Of note, the Quantum Benchmarking (QB) 
program seeks to bring rigor to the fledgling quantum computing 
marketplace with the introduction of insightful benchmarking. There is 
much potential that quantum computing may make possible--in diverse 
markets such as pharmaceuticals, battery catalysis, and machine 
learning--but it is also possible that there is limited value of any 
sort in quantum computing beyond the commonly discussed application of 
unlocking encrypted data.
    QB was started in 2021 with the goal of developing key quantum 
computing metrics, making those metrics testable, and estimating the 
required quantum and classical resources needed to reach critical 
performance thresholds. Coming up with effective metrics for large 
quantum computers is no simple task. Current quantum computing research 
is heavily siloed in companies and institutions, who often keep their 
work confidential, and existing metrics (such as the number of 
interacting qubits in a system) may not be relevant to actual computing 
performance on many applications. If successful, QB will accelerate the 
development of quantum computing across multiple domains, or illuminate 
its lack of utility in those same domains.
                               conclusion
    From DARPA's perspective, the technological future is enormously 
attractive, bright with opportunities, but also fraught with the 
potential for technological surprise from our adversaries. For more 
than 60 years, the men and women of DARPA have taken very seriously our 
unique mission to prevent such surprises by creating our own.
    One year after returning to DARPA, it is clear to me that we are 
stronger and more committed to that mission than ever. I look forward 
to working with the members of this subcommittee and others in the 
Legislative and Executive branches to ensure that the United States 
maintains its lead in the investigation and development of powerful 
technologies, in addition to their safe and responsible application in 
support of a more stable, secure, and sustainable world.

    Senator Kelly. Thank you, Dr. Tompkins. Mr. Brown.

 STATEMENT OF MICHAEL BROWN, DIRECTOR, DEFENSE INNOVATION UNIT

    Mr. Brown. Chairman Kelly and Members of this Subcommittee, 
thank you for inviting my colleagues and me to speak on behalf 
of innovation at the Department. Today I would like to speak to 
one of the most urgent challenges to bolster our nation's 
defense--speeding the adoption of commercial technology to our 
warfighters, which Secretary Shyu talked to.
    In an era where the Chinese Government has stolen plans for 
our weapons and studied our way of fighting, advances in 
commercial technology offer a way to achieve surprise rapidly. 
Under Secretary Shyu recently released a list of 14 critical 
technologies for national security. Eleven of the 14, 80 
percent, are commercial. Not having an effective approach to 
adopting commercial technology is a glaring weakness in 
modernizing DOD.
    Since 2015, DIU has transitioned 43 commercial solutions to 
service partners, 8 in the first half of this fiscal year 
alone. As one example, DIU successfully prototyped synthetic 
aperture radar satellites which can see through clouds and at 
night, and provided the world imagery of Russian forces in and 
around Ukraine. This enabled us to predict the invasion and 
prove undeniably what was happening without revealing 
classified sources. Today, the National Reconnaissance Office 
(NRO) is providing this capability as part of security 
assistance to Ukraine.
    These 43 transitions encourage more DOD mission partners to 
initiate more modernization projects. In the last fiscal year, 
DIU started a record 37 projects, double our historical 
average. Additionally, last year companies competing for DIU 
contracts increased 40 percent and represented 47 states, the 
District of Columbia, and 17 countries. In total, DIU has 
introduced 100 new vendors to DOD.
    DIU's successes, however, are less than 1 percent of DOD's 
procurement budget. In part, this is because commercial 
technologies are different than defense technologies. First, 
they are supplied in massive unit volumes, sometimes in the 
millions, often led by consumers. Second, commercial 
technologies evolve at faster speeds than defense technologies, 
refreshed in 12- to 18-month cycles. Third, commercial 
technologies are not service specific, so we often do not know 
where to buy them. Lastly, we do not control the spread of 
commercial technologies. Dangerously, they are available 
through our adversaries as soon as they are available to us. No 
wonder, then, that we need a different way to assess and buy 
these commercial technologies.
    So DOD must become what I call a fast follower to gain 
rapid access to technologies and maintain at least 
technological parity with adversaries. For this, DOD requires a 
rethink of the three elements of how we bring capabilities to 
the Department. Number one, requirements, where commercial 
technology negates the need for detailed specifications. Number 
two, acquisition, where DIU's use of non-consortium Other 
Transaction Authorities (OTAs) in a largely commercial process 
we invented called Commercial Solutions Opening (CSO) can be 
more broadly applied throughout the Department. Number three, 
budgeting, where new commercial solutions enter the market 
faster than our 2- to 3-year budget cycle.
    Despite acquisition reform there has been almost no reform 
of the requirements or budgeting processes. Here are my 
recommendations.
    First, establish dedicated organizations or homes for each 
of the commercial technologies, which can focus our expertise 
and which are not and do not need to be service-specific. 
Paired with a stable budget, this becomes a capability of 
record, not a program of record, where the need for the 
capability is ongoing. DOD can then assess vendors on a more 
continuous basis and refresh with a frequency that matches 
commercial cycles. In doing so, DOD can furnish these 
capabilities to warfighters in a year rather than in a decade.
    Second, eliminate the requirements process for commercial 
technologies, replacing it with a rapid validation of needs. We 
do not need to develop detailed requirements for products the 
commercial market already builds. In fact, detailed 
requirements limit the creative problem-solving of companies 
and limit the number of companies competing.
    Third, apply the best practices of commercial procurement 
that we have learned, more widely apply consortia OTAs and 
CSOs, thereby maximizing competition while minimizing 
opportunity costs for vendors to participate. Importantly, if a 
vendor successfully prototypes a solution there is no required 
recompete and DOD can scale the solution immediately, 
eliminating one of the valleys of death caused by waiting for 
the budget cycle to catch up.
    Finally, source commercial technologies from allies, and 
sell proven solutions to allied militaries, which present 
excellent export opportunities for U.S. companies. The easiest 
form of collaboration with allies is with commercial 
technology, which is unclassified and enables interoperability.
    At DOD we continue in a business-as-usual fashion at our 
peril. We must reform requirements and budgeting while more 
broadly adopting OTAs to better assess and fuel commercial 
technologies. I ask Congress to allow for more flexibility in 
the appropriations process beyond programs to budget for 
capabilities like small drones or satellite imagery, which we 
know we will need for decades to come. Maintaining our 
military's technological superiority requires us not only to 
develop defense technologies like hypersonics but of equal 
importance, fast follow the innovations of our vibrant 
commercial technology sector. There is a reason the U.S. 
innovation ecosystem is the envy of the world, and we need to 
make this the envy of the military.
    Senators, thank you very much for your time today, and with 
my colleagues I look forward to answering your questions.
    [The prepared statement of Mr. Brown follows:]

                  Prepared Statement by Michael Brown
    Chairman Kelly, Ranking Member Ernst, and distinguished Members of 
this Subcommittee, thank you for inviting me to testify on behalf of 
the Defense Innovation Unit (DIU). I'm Michael Brown, and I have been 
Director of DIU since September 2018. I appreciate the opportunity to 
speak about the urgent necessity of accelerating innovation--and 
specifically commercial technology--for our warfighters.
                              introduction
    The Department now acknowledges the People's Republic of China 
(PRC) as a pacing challenge. In previous eras, the United States 
maintained decisive military advantage over its adversaries due, in 
large part, to superior technology capability. The Department of 
Defense (DOD) harnessed technical resources across the spectrum of 
American industry, national laboratories, and universities and used its 
purchasing power to shape technical specifications and standards for 
resulting technologies. This strategy ultimately conferred the U.S. 
military with superior advantages in the first offset (nuclear weapons 
and nuclear deterrence technology) and second offset (night vision, 
laser-guided bombs, stealth and jamming technologies as well as space-
based military communications and navigation).
    The threat matrix the United States faces today is significantly 
more diverse and acute than in previous eras. While the DOD continues 
to develop offensive and defensive capabilities around nuclear weapons 
and conventional military platforms, as the NDS highlights, dual-use 
emerging technologies will change the character of warfare going 
forward. The private sector is pioneering the development of most of 
these advanced dual-use technologies by leveraging software, open 
source data sets, and advanced processing speed--all primarily for 
commercial use. Many technologies that were previously only available 
to nation-states have now become democratized and available to any 
consumer or adversary.
                               background
    I came to the Defense Innovation Unit (then Defense Innovation Unit 
Experimental) nearly 6 years ago as a Presidential Innovation Fellow 
charged with understanding the character, quantity, and quality of PRC 
investments in the U.S. technology ecosystem. At that time, largely 
ungoverned by the Committee on Foreign Investment in the United States 
(CFIUS) or existing export controls--investments into U.S. startups 
were fair game for adversarial nation-states. In fact, we discovered 
that the PRC is pursuing a deliberate and robust technology transfer 
strategy, which still includes investing in early stage dual-use 
technologies, gathering intellectual property, and strategically 
identifying and poaching talent from U.S. companies and academic 
institutions. The key finding of our work was that PRC-backed 
investment firms in 2016 2018 were investing at a level approaching 20 
percent of all U.S. venture-backed deals. By sponsoring investments in 
emerging technologies--from artificial intelligence and machine 
learning to additive manufacturing, biotechnology, and quantum 
sciences--the PRC is learning at the same pace, if not faster, than the 
U.S. national security apparatus. From an economic competitiveness 
perspective, this is obviously worrying; however, there are now well 
documented reports \1\ pointing to an even more troubling fact: the 
People's Liberation Army (PLA) is rapidly integrating dual-use 
technologies developed in the commercial sector into warfighting 
concepts to achieve asymmetric advantage over the United States.
---------------------------------------------------------------------------
    \1\ Military and Security Developments Involving The People's 
Republic of China (2020), Office of Secretary of Defense, Department of 
Defense, pg. 25; Military and Security Developments Involving The 
People's Republic of China (2021), Office of Secretary of Defense, 
Department of Defense 24-29.
---------------------------------------------------------------------------
    In response, the United States' first actions were defensive--to 
close loopholes and strengthen our defenses. Congress made that 
possible by passing the Foreign Investment Risk Review Modernization 
Act (FIRRMA) and the Export Control Reform Act (ECRA) in 2018. Even 
implementation of these new authorities has not fully prevented the 
illegal transfer of critical technologies. The United States must 
continue whole-of-government efforts to protect critical U.S. 
technology, know-how, and talent, and to raise awareness regarding the 
PRC's lever aging of foreign investment to enable its military 
capabilities.
    My focus today is to discuss the progress we are making on 
offensive in running faster. Overarching and foundational investments, 
such as the CHIPS Act as well as the broader Bipartisan Innovation Act, 
are necessary to maintain long-term U.S. leadership in the technologies 
that will be the drivers of innovation in the coming decades. However, 
by themselves these measures will also be insufficient to ensure the 
United States can translate technological leadership into national 
security advantage. The Department of Defense (DOD) needs to outpace 
our adversaries in identifying, integrating, and deploying commercial 
technologies into current warfighting concepts and creating new 
concepts. In an era where the PRC has stolen plans for our exquisite 
weapons platforms and carefully studied our way of fighting, advances 
in commercial technology offer a unique opportunity to achieve surprise 
rapidly. Despite its importance, DOD does not currently have a 
systematic or effective approach to rapidly access and leverage 
commercial technologies at scale. My first boss at DIU, Michael 
Griffin, the first Under Secretary for Research and Engineering, 
developed a list of ten critical technologies for national security: 
eight of those ten were commercial. My current boss, Heidi Shyu, just 
released her own list of 14 critical technologies for national 
security: 11 of the 14 technologies are commercial. Not having an 
effective approach to rapidly adopt commercial technology is a glaring 
weakness in modernizing DOD. Technologies such as advanced 
communications, AI software, small drones, synthetic aperture radar 
(SAR) satellite imagery and many others can be rapidly purchased from 
credible commercial vendors to deliver novel capabilities at a fraction 
of the cost today. However, the Pentagon does not deliver these 
capabilities at scale or at the speed of relevance to our warfighters 
on the ground today.
                        diu mission and results
    DIU is the singular OSD entity embedded in U.S. innovation hubs 
regularly engaging with U.S. technologists, entrepreneurs, academics 
and investors. The PRC has already copied us with its own Defense 
Innovation Unit and also compels PRC companies to support the PLA 
through its military-civil fusion strategy. Rather than compel 
suppliers to work with the military, in the United States, DIU must 
streamline working with the Pentagon, so we can access more suppliers 
than the traditional defense contractors, whose business it is to 
accommodate whatever process and timespan DOD dictates. One-third of 
the DIU suppliers on contract are first-time vendors, representing 100 
new companies that DOD can now access. While DIU has achieved no table 
successes, the Department and the Services must allocate orders of 
magnitude more of their budgets to non-traditional vendors in the 
startup technology ecosystem in order to solidify national security as 
a priority for entrepreneurs, technologists and investors.
    DIU is a joint DOD organization focused on accelerating the 
adoption of commercial technology throughout the Services, Combatant 
Commands (CCMDs), defense agencies, and other components and growing 
the national security innovation base. DIU partners with organizations 
across the DOD and the interagency to rapidly prototype, field, and 
scale commercial solutions that can save lives, lead to new operational 
concepts, increase efficiencies, and save taxpayer dollars. Through 
DIU's core operations and its components--the National Security 
Innovation Network (NSIN) and the National Security Innovation Capital 
Initiative (NSIC)--DIU cultivates talent, invests in emerging 
technology companies, and connects military challenges with existing 
commercial solutions. As just one example, DIU's work with SAR 
satellites, which can see through clouds and at night, are now 
providing commercial imagery of Russian forces on the Ukrainian border. 
This capability enabled the United States to predict the invasion, 
share with the world what was happening without revealing classified 
sources, and expose the Russian lies about de-escalation.
    The investment DOD made in DIU 6\1/2\ years ago is bearing fruit. 
Since 2015, DIU transitioned 35 successfully-prototyped commercial 
solutions to Service partners. A successful transition means the 
prototype demonstrated success in a military environment, a production 
contract is in place, and a budget exists to scale capability to 
warfighters. DIU achieves this through follow-on, multi-year 
contracts--Production-Other Transaction (OT), Indefinite Delivery / 
Indefinite Quantity (IDIQ), FAR-based contract, and listings on the GSA 
schedule.
    The 35 transitions represent $3.5 billion in contract ceiling 
(8$100 million average contract ceiling per transition) and led to 
additional DOD revenue opportunities for these new vendors via 
contracts not led by DIU. The largest example is the vendor Anduril 
with a $1 billion follow-on contract from U.S. Special Operations 
Command (USSOCOM). This momentum in production contracts is 
accelerating, with contract ceiling totals growing substantially year-
over-year. In fiscal year 2021 alone, DIU's eight transitions 
represented $1.75 billion in contract ceiling--four times more than 
fiscal year 2020 and 50 percent of the cumulative total contract 
ceiling awarded since 2015. The $218 million average in contract 
ceiling per transition in fiscal year 2021 is six times that of the 
prior year. In the first five months of fiscal year 2022, DIU 
facilitated the successful transition of an additional four 
capabilities.
    The ability to convert a successful prototype into a production 
contract is generating greater demand from DOD mission partners to 
initiate more projects. For example, in fiscal year 2021, DIU started 
are cord 37 new projects, which is 50 percent of the total projects 
underway and double DIU's six-year average. Meaningful revenue outcomes 
and an increasing number of projects encourages more private companies 
to participate in solicitations--fiscal year 2021 saw a 40 percent 
increase in the average number of companies competing for a DIU 
contract. DIU has seen companies from 47 states, D.C. and more than a 
dozen countries compete for contracts. Growing DIU's capacity to lead 
projects will increase successful transitions and open up avenues to 
more contracts across DOD--all providing the positive economic 
incentive to sustain continued investment from venture capitalists and 
other private capital sources.
    This past year, NSIN expanded DOD's reach as it integrated 4,566 
individuals and 180 early-stage ventures into DOD through programs with 
its 71 university partners and directly supported the launch of 20 
dual-use ventures from DOD labs.
    NSIC, which addresses the shortfall of trusted private capital for 
dual-use hardware startups, received its first appropriation from 
Congress of $15 million. With those funds, NSIC supported nine 
companies including products involving new battery chemistries and form 
actors, quantum sensors, and hypersonic engines.
        diu challenges and relevance of commercial technologies
    DIU's successes represent well less than 1 percent of the overall 
DOD procurement budget. To modernize faster, DOD requires an order of 
magnitude increase in its adoption of commercial technologies. DOD is 
not leveraging the commercial sector broadly enough or fast enough in 
its modernization efforts. Commercial technologies have non-trivial 
differences from strictly defense-technologies. First, commercial 
technologies are supplied in massive unit volumes--sometimes in the 
millions--often led by the consumer as is the case with small drones. 
Second, in addition to larger volumes, commercial technologies evolve 
at a much faster speed than defense technologies with products 
refreshed on 12 to 18 month cycles instead of decades. As a result, DOD 
needs to move much faster in assessing and fielding these technologies. 
Third, commercial technologies such as AI software or commercial 
satellite imagery are not Service-specific. We do not need special 
versions for the Navy or the Air Force (even though at DOD we often try 
to create these) and, in fact, creating special versions by Service 
makes it more difficult and costly for commercial suppliers to do 
business with DOD. Fourth, since DOD does not control the global 
diffusion of these technologies, our lack of adopting these quickly 
creates an asymmetric disadvantage if our adversaries adopt them more 
rapidly.
    These differences are extremely relevant for conflicts we may face 
in the next decade where our adversaries effectively employ commercial 
technologies. For example, when United States troops were stationed in 
Iraq, ISIS sent small drones, which can be purchased on e-commerce 
platforms like Amazon, with grenades to kill American soldiers in 
Mosul. Countries such as Azerbaijan and Ukraine are quickly adapting 
commercial technology in new ways to gain an edge on the battlefield. 
Azerbaijan saw significant battlefield success in the 2020 fighting in 
and around Nagorno-Karabakh due, in part, to its use of commercial 
drones. The DOD must add new capabilities like these in 1 to 2 years 
rather than 1 to 2 decades. However, this will not happen if we apply 
the same processes designed to cultivate defense-specific technologies 
such as hypersonics and directed energy--technologies with no existing 
commercial market--to dual-use technologies that are rapidly evolving 
in the commercial sector. DOD must reform its sequential requirements, 
acquisition and budgeting methods to adapt to an environment where 
industry leads technology development and which prioritizes speed. The 
current sequential process lags commercial product cycles and delivers 
technology several generations behind which would be the equivalent of 
supplying flip-phones and fax machines to our warfighters today. While 
the Pentagon prides itself on following voluminous and well-specified 
DOD processes, the result is that in commercially advanced technologies 
such as advanced communications, artificial intelligence and machine 
learning, cyber and autonomous systems, we will be placing outdated, 
overpriced technology in the hands of our warfighters.
                         fast follower strategy
    For commercial technologies that DOD does not invent, DOD must 
become a ``Fast Follower'' to gain rapid access to these technologies 
to maintain at least technological parity with adversaries. This 
requires are-think of the 3 elements of how DOD operates:

      Requirements, where commercial technology negates the 
need for the time-consuming process of detailed specification of 
solutions;

      Acquisition, where some of the new adaptive acquisition 
frameworks (for urgent capability or middle tier) can be adapted for 
commercial technology and simplify the buying process;

      Budgeting, where new commercial solutions enter the 
market on a faster cycle than the 2\1/2\ year defense budget cycle and 
much faster than the refresh rate of traditional defense technologies, 
which can be 40 years or more for major platforms.

    There has been so much reform of acquisition practices in the past 
few decades but almost no reform of either the requirements or the 
budgeting processes; we are encouraged by the establishment of the 
Commission on Planning, Programming, Budgeting, and Execution Reform in 
the Fiscal Year 2022 NDAA and hope the Commissioners will take on the 
requirements and budgeting processes, which are the greatest obstacles 
to increased use of commercial technology to modernize DOD. Key tenets 
of a Fast Follower Strategy include:

    1.  Dedicate Organizations for Commercial Capabilities and Supply 
Them with a Consistent Budget. DOD needs to establish dedicated 
organizations for each of the commercial technologies (e.g., drones and 
counter-drones, digital wearables and satellite imagery) which are not 
and do not need to be Service-specific. Today, it is not clear where in 
DOD these non-Service-specific technologies like small drones should be 
assessed and procured. With clarity of where the technology can be 
assessed and purchased, these dedicated organizations also need a 
stable budget for that capability. This is different from a program of 
record, which reflects a rigid requirement and often a single vendor. 
This is a ``capability of record'' where the need for the capability is 
on going such as for small drones. With that ongoing budget, DOD can 
assess capability on a more continuous basis, choose the best vendor at 
a point in time and refresh that capability with a frequency that 
matches commercial product cycles. Assigning an ongoing capability 
budget to these assigned organizations also signals demand to private 
industry and avoids duplication across DOD. In fact, this allows DOD to 
adapt to rapidly evolving threats and procure solutions that were not 
even available when the DOD budget was created more than 2 years 
earlier.

    2.  Eliminate the Requirements Process for these Commercial 
Technologies and replace this with a much more rapid validation of 
needs. Again, we do not need to develop detailed requirements for 
products the commercial market already builds and, in fact, these 
requirements limit both creative problem solving from the commercial 
sector and the number of competitors.

    3.  Apply the Best Practices of Commercial Procurement: More widely 
apply non-consortia Other Transaction Authority (OTA) through 
Commercial Solutions Openings (CSOs), which maximizes competition while 
minimizing the opportunity costs of vendors to participate. DIU 
exclusively uses this method and experienced an average of 43 vendors 
participating in each of 27 competitions last year. Critically, if a 
vendor successfully prototypes a solution, there is no required re-
compete at the end of the prototyping period, and DOD can immediately 
scale up the solution across the joint force. If Congress approves a 
budget supporting ``capabilities of record'' then we eliminate the DOD-
unique valley of death which unfolds when we ask successful vendors to 
wait for the POM cycle to catch up--a process that can take up to 2 
years and be death for a small company focused on cash flow.

    4.  Coordination with Allies: Source commercial technology from 
allies and sell proven solutions to allied militaries. Prevailing in 
the competition with the PRC requires more collaboration with allies 
and partners. The easiest form of collaboration is with commercial 
technologies which are unclassified and are, therefore, easily 
shareable and present excellent export opportunities for vendors.
    This Fast Follower Strategy has several key benefits--maximizing 
competition through open assessments of solutions from multiple 
vendors; reducing costs by leveraging higher volumes of the commercial 
market; increasing speed and transparency of the acquisition process; 
and minimizing the opportunity cost for vendors which encourages 
participation in future competitions.
                               conclusion
    After a career as a high tech executive and CEO of two Silicon 
Valley-based companies, I have now had an in-depth immersion into how 
the military assesses and fields capability. DIU and similar innovation 
offices will not succeed unless DOD scales these efforts. As Eric 
Schmidt in his role as the Chair of the Defense Innovation Board said 
repeatedly, ``The DOD does not have an innovation problem, it has an 
innovation adoption problem.'' DOD has not yet established a 
complementary process to the one Secretary McNamara put in place in the 
1960s for defense technologies. This means we do not have an effective 
process for the adoption of commercial technology, which represents 11 
of the 14 critical technologies for national security. The Fast 
Follower Strategy is a common sense adaptation of how technology is 
adopted in the commercial world.
    At DOD, we continue in a ``business as usual'' fashion at our 
peril. The PRC and Russia compel their private companies to work 
together closely with their militaries to gain experience with new 
technologies and concepts. From drone swarming to anti-satellite 
weapons programs, Russia and the PRC have studied our capabilities 
carefully and are rapidly modernizing its own military capabilities 
with a priority both on asymmetry designed to neutralize U.S. overmatch 
and accessing innovations in its commercial sector. The PLA is 
currently utilizing commercially-derived AI technologies to power drone 
swarms and underwater autonomous vehicles; the PLA is drawing from 
leading private companies for sophisticated ISR, information and 
electronic warfare solutions, and AR/VR for training, among others. \2\
---------------------------------------------------------------------------
    \2\ Military and Security Developments Involving The People's 
Republic of China (2021), Office of Secretary of Defense, Department of 
Defense, pg. 26-27, 148-149.
---------------------------------------------------------------------------
    The U.S. military will enjoy neither a time nor technology 
advantage if the PLA or Russian Armed Forces achieve more agility in 
adopting commercial technology. Imagine how well our forces will defend 
against PLA swarms of drones if we have not experimented with this 
concept. Imagine if we do not support more non-traditional suppliers of 
satellites or quantum sensors such that these technologies do not 
remain competitive in the U.S. and go the way of solar panels or small 
drones--controlled by the PRC.
    The industrial base for defense continues to shrink--yet we have 
the power to change this. Supporting new dual-use technologies can 
create whole new industries based on biotechnology, resilient and 
greener energy, or construction of a space superhighway of satellites, 
space logistics and manufacturing as well as a multi-orbit 
transportation system. Otherwise, we cede to the PRC not only military 
advantage but the economic prosperity that comes with these new 
industries. The high technology economy of the U.S. is the envy of the 
world and based on technologies like the internet or GPS, which DARPA 
pioneered decades ago.
    In my view, we cannot be complacent and must demand that DOD reform 
its Requirements and Budgeting processes--while more broadly adopting 
Other Transaction Authority to better assess, procure, and field 
commercial technology. I would ask for Congress' support by allowing 
for more flexibility in the appropriations process and providing 
consistent funding for commercial capabilities we know we need for 
decades to come. Maintaining our military's technological superiority 
requires us not only to continue to develop defense technologies like 
hypersonics or directed energy but equally important to fast follow the 
innovations of our vibrant commercial technology sector.

    Senator Kelly. Thank you, Mr. Brown, and thank you all for 
your testimony. I will begin our first 5-minute round of 
questions, and then we will go in, I think, the order of folks 
as they arrived. This question will be for all three of you.
    Promoting innovation is a critical task for DOD as we look 
to outpace countries like China. It is a full contact sport 
that requires attention and coordination across many offices 
and activities. It also requires considering not just the 
technical aspects of innovation like research and development 
but also a holistic focus on non-technical aspects, like 
workforce shaping, concept development, and wargaming, that are 
needed to accept and absorb these technological innovations 
into the military.
    So starting with Secretary Shyu, what work has R&E been 
doing to invest in key emerging technology areas to address our 
warfighting needs, and how are those investments being used to 
shore up risks within the defense industrial base for emerging 
technology areas like hypersonics and microelectronics?
    Ms. Shyu. So a couple of things I would like to talk about. 
Actually, several things I would like to talk about, and I will 
talk fast, is you have heard that we have initiated the RDER 
concept, the Rapid Defense Experimentation Reserve. This is a 
campaign of joint experimentation focused on solving the 
critical joint warfighting capability gaps. This is where we 
are going out to the services as well as to industry and the 
smaller companies to understand what prototypes do they have, 
that they have already developed that they can bring to us, and 
we can test in a contested, joint environment, to understand 
the utility of the prototype that they have developed.
    What we want to do is leverage the opportunity to do these 
sprints, twice per year, to close the capability gaps, and have 
the Joint Staff as well as the COCOMs and the services to 
evaluate how well did these prototypes close the capability 
gaps and prove their utility. We want to be able to rapidly go 
into rapid fielding, or mid-tier acquisition, or leave behind 
the capabilities, or doing a design modification to enable 
different capabilities to be added to it, and come to the next 
sprint to demonstrate it out.
    This could accelerate the capability from innovators all 
the way to fielding. This is exactly what we are doing, and 
fiscal year 2023 is our very first sprint.
    Senator Kelly. Thank you. Dr. Tompkins?
    Dr. Tompkins. I will add on a little bit to this, in the 
sense that what I will talk about I think dovetails into the 
RDER program that Secretary Shyu just mentioned. We are 
developing new ways of doing testing and evaluation, which is 
not just for testing and evaluating new technologies but also 
the concepts themselves. So when we have the ability to use 
modeling and simulation in order to go through thousands of 
potential cases and different combinations of decisions and 
different combinations of circumstances, but at the same time 
building in new technological capabilities, it really allows us 
to figure out how to prioritize our investments, and then we 
take that, combine it with person-in-the-loop actual evaluation 
as these technologies are being developed, and live testing, in 
real time, feeding back and forth with the modeling and 
simulation. I think we dramatically accelerate our ability to 
look at specific needs, where the technology gaps might be, and 
what needs to be developed to fill those.
    That overall capability is something that will be 
transitioned to the Test Resource Management Center under Ms. 
Shyu's organization, and we anticipate working with RDER funds, 
for example, in order to test out very specific subsets of 
these concepts.
    Senator Kelly. Sometimes some testing is really, really 
hard to do, and you can do, through computational fluid 
dynamics and other methods, get at least the starting points 
you need of a test program. So it is good to see that you are 
doubling down on those efforts.
    I am going to come back to Mr. Brown here on this question 
here in the second round, but for now let me defer to my 
colleague, Senator Fischer, for 5 minutes of questions.
    Senator Fischer. Thank you, Mr. Chairman, and welcome to 
all of you today. It is good to see you.
    Secretary Shyu, you were serving as the Assistant Secretary 
of the Army for Acquisition, Logistics, and Technology during 
the Third Offset Strategy, and many believe that the Third 
Offset was unable to really satisfy Congress' questions about 
some very basic elements that the strategy had, and also that 
it delivered few tangible innovations from it.
    Could you tell us, what are some of the relevant lessons 
you learned from that process, and are there challenges you 
think it revealed about attempting any kind of large-scale 
change within the Department?
    Ms. Shyu. Senator Fischer, the Third Offset really 
highlighted, in a highly contested environment, what are the 
things we need to do differently. I can tell you, as an 
offshoot of that, was born ABII, Assault Breaker II. This is an 
activity that the Defense Science Board initiated, and DARPA 
has taken over whole-heartedly. What we need to do is come 
brief you in a classified setting to let you know of all the 
things we are doing under that particular activity. I think you 
would be incredibly impressed. We will be more than happy to 
follow up and come brief you.
    Senator Fischer. Okay. I know that RAND published a study 
on that last year, I think, and was saying that the Department 
was alerted to some of the erosion that we were seeing in U.S. 
technologies with regard to Russia and China. Is that what you 
are referring to?
    Ms. Shyu. Let's see. I am trying to talk unclassified.
    Senator Fischer. Okay. Well, we will wait then. We will 
wait then.
    Ms. Shyu. Yes. It basically highlights, in a highly 
contested environment, how can we conduct the fight. We will be 
more than happy to brief you at a highly classified level.
    Senator Fischer. Okay. Thank you.
    Mr. Brown, your organization, the DIU, was one of the few 
tangible outcomes that saw in Congress from the Third Offset, 
and I realize that this does predate your time there with the 
organization. But do you have a view on this?
    Mr. Brown. To be more specific, a view on----
    Senator Fischer. The Third Offset Strategy and results that 
you have possibly seen.
    Mr. Brown. Well I would just say that as Chairman Kelly 
remarked, we are in a state where we are losing our 
technological edge, so I think what we are doing to reinvest 
everything from basic research, as well as we can do to 
stimulate that in the private sector, is exactly the strategy 
that we need to have to regain that. We may never gain the same 
level of offset or advantage that our adversaries do not have, 
but we have to make sure we are investing at the level where at 
least technological parity in many areas and exceeding what 
China can do in some.
    So while Dr. Tompkins is inventing the future----
    Senator Fischer. No, that is good. Thank you.
    Mr. Brown.--we need to rely on the innovation in the 
commercial sector to bring that capability forward more 
quickly.
    Senator Fischer. Okay. That is good.
    Secretary Shyu, Secretary Austin, he has talked about 
prioritizing hypersonics, and if watch any discussions on this 
committee, on the Senate Armed Services Committee, or in the 
Senate itself, you will know that this is an area of interest. 
I know that you have stressed the importance of making them 
affordable, and Secretary Kendall has also emphasized the 
tradeoff between the cost and the capability that is provided 
on them.
    Is there a consensus view within the Department about what 
role hypersonic weapons will play and what technologies we 
should be pursuing?
    Ms. Shyu. Absolutely. Thank you for bringing this up. This 
is certainly one of the critical technologies we are looking 
at.
    I just want to highlight that the Army is going to be 
fielding hypersonic weapons to an entire brigade next year. The 
Army and the Navy together develop a common glide body. Navy 
will be fielding theirs on the Zumwalt DDG in fiscal year 2025. 
Air Force has developed a hypersonic weapon that is flying on 
B-52--they are still in testing--but they are initiating a 
program that will go on fighter aircraft. In addition, we are 
working with the Australians in developing a hypersonic cruise 
missile. So there are many activities ongoing, in addition to 
what DARPA is doing, pushing the envelope on the next 
generation.
    I want to add one more thing. I think it is important to 
understand that we also have a university consortium of 80 
universities working with small companies and large primes in 
developing the next-generation technology that we will be able 
to insert into our hypersonics programs. So we are progressing 
very rapidly.
    The other thing that I think is very important to 
understand, we are really not in a horse race. You cannot think 
about this as a horse race. If you have 10, should I have 11? 
That is really not the right way of looking at this 
perspective, because we are developing multiple different 
strategies. Once again I will be more than happy to come and 
brief you at a higher classification level.
    Senator Fischer. Thank you very much. Thank you, Mr. 
Chairman.
    Senator Kelly. Senator Tuberville.
    Senator Tuberville. Thank you, Mr. Chairman. Thanks for 
being here today in this testimony. Talking about that Dr. 
Tompkins, I am from Auburn, Alabama. We have a pretty good 
university there, and we are proud of it.
    You know, we do a lot of research on hypersonics and 
assured position navigation timing, cybersecurity. What stands 
apart for us is that our Auburn labs are 100 percent U.S. 
citizens, and that engineering student can conduct classified 
research for all national security. There does not have to be 
any hands tied. So we are proud of that.
    Do you feel like we are investing enough in academic 
research at our universities to help with hypersonics and all 
these other basic researches that we are doing? Are we 
investing enough in that or are we depending too much on our 
technology industry?
    Dr. Tompkins. The broader question of investment in the 
ecosystem is something I definitely should defer to Secretary 
Shyu on. But we work very, very strongly within this entire 
ecosystem, and we do not look just, for example, at companies 
or at government labs or at universities. We look at how they 
are trading off with each other.
    I think there are certainly areas in which we could invest 
not necessarily more in quantity but think more creative about 
how we can connect students, faculty members and others into 
these more restricted research ecosystems without penalizing 
them in terms of their ability to, say, get their degrees 
quickly or their ability to actually publish on research. There 
is a lot of opportunity for creativity in that space.
    From my perspective, it is less about sort of the volume of 
the dollars as to how effective we are able to deploy them, and 
I think there are some definite opportunities to be more 
creative.
    Senator Tuberville. Thank you.
    Mr. Brown, I am glad to hear you talk about the commercial 
technology industry. I do not think we could survive. That is 
what we have over everybody else in the world. In Alabama, we 
have over 600 defense contractors. Most of them are on their 
own. A lot of them are small. I am very concerned about them 
being able to handle cybersecurity with the little money that 
they have, compared to the big boys, so to speak. They need to 
be protected as well as the others.
    You can go from working on the hypersonic missile, you can 
go next door to somebody who working on a new tank, and next 
door to somebody working on the new lander for National 
Aeronautics and Space Administration (NASA). You can do it all. 
But a lot of them are small industries. How do we protect those 
small industries, because a lot of them cannot turn their 
computers on without China trying to steal everything that they 
have got. It is a tough road for some of them.
    Mr. Brown. Senator, I could not agree more. The industry I 
came from before being at Defense was cybersecurity, and it is 
an escalating problem for us, the soft underbelly, are the 
small businesses that cannot afford to invest there. I think we 
need some help with some basic tools and hygiene, and I think 
Cybersecurity and Infrastructure Security Agency (CISA), at the 
Department of Homeland Security, has been moving forward at a 
great pace here.
    What I think we have to do is make sure that we can provide 
some help with the basics for the small businesses, which is 
often hygiene, about making sure you have patched your 
software, et cetera. That kind of help, which is available both 
from the Federal Bureau of Investigations (FBI) as well as the 
Department of Homeland Security (DHS), is what we need to make 
sure we are doing enough to educate those companies and making 
sure they are implemented. That is how we help the small 
businesses, I believe.
    Senator Tuberville. Yes. You know, I do not know how many 
hundreds of thousands we are short on cybersecurity, and I will 
invite all three of you to come to Huntsville. They just 
started, 2 years ago, a program where they will take you in the 
9th grade, full tuition, come live there, go to school, and by 
the time you are a 12th-grader, you are far and beyond what is 
going on in terms of cyber in our universities. I think that is 
the thing of the future, bypassing universities and start 
training these kids in high school. It is an amazing thing that 
is going on.
    Just real quick, the Employee Stock Ownership Plans 
(ESOPS), the businesses that are owned by the employees, can 
you give a rundown, Mr. Brown, of what you know about those and 
how good they are? A lot of them, are they making it? Are they 
able to survive with employee-owned companies?
    Mr. Brown. So I do not have a strong point of view about 
this, because I have not----
    Senator Tuberville. Have you dealt with them before?
    Mr. Brown. I mean, many companies have implemented that, 
and I think the idea of having employees have skin in the game 
through incentive is a good one. It has been used in Silicon 
Valley, of course, maybe not with an ESOP program but with 
stock options, for years. So I think that is a good incentive 
system.
    Senator Tuberville. Yes. I think it is an edge for us in 
defense, especially.
    Thank you very much. Thank you, Mr. Chairman.
    Senator Kelly. Senator Scott will be recognized for 5 
minutes.
    Senator Scott. Thank you, Chairman. Thanks for being here. 
How many people work in each of your units? How many people 
work in your area, Secretary Shyu? Do you know?
    Ms. Shyu. I do not have that exact number but I can 
certainly get back to you.

    Ms. Shyu. The Office of the Under Secretary of Defense for 
Research and Engineering (OUSD(R&E)) is currently comprised of 
1,202 personnel across the entire organization. The specific 
personnel categories are broken out in the table below. It is 
important to note that the Intergovernmental Personnel 
Appointment Act (IPA) appointees, detailees (DTL), and 
contractor personnel (CTR) numbers fluctuate regularity based 
on mission requirements.

------------------------------------------------------------------------
              Personnel Category                            #
------------------------------------------------------------------------
Civilian......................................                      186
------------------------------------------------------------------------
Military......................................                      103
------------------------------------------------------------------------
IPA...........................................                       28
------------------------------------------------------------------------
DTL...........................................                       84
------------------------------------------------------------------------
CTR/FFRDC.....................................                      801
------------------------------------------------------------------------
    Total.....................................                    1,202
------------------------------------------------------------------------


    Senator Scott. Do you know, Dr. Tompkins?
    Dr. Tompkins. Within DARPA we have just under about 200 
government employees, and we certainly have contractor support.
    Senator Scott. Mr. Brown?
    Mr. Brown. We are 200 in total, which includes 20 Active 
Duty military, about 24 civilians, and the rest are contractors 
and reservists.
    Senator Scott. Okay. How many projects do each of your 
units work on each year?
    Dr. Tompkins. We start about 50 new programs a year, but we 
also end 50. We end about that many. So it means that we have 
about 250, approximately, active programs.
    Mr. Brown. We started 37 last year and we have 75 underway.
    Senator Scott. Okay. Secretary Shyu?
    Ms. Shyu. Yes. I cannot tell you because we cover across 
the entire DOD. I know just within AI alone there are more than 
700 programs.

    Ms. Shyu. The OUSD(R&E) has 49 different program element 
lines under its direct purview, and each of funding Program 
Element line is able to fund multiple programmatic efforts. 
Additionally, as the Chief Technology Officer of the Department 
of Defense, I have the core responsibility for advancing 
technology and innovation across the entire Department and the 
Department's science and technology programs. Considering 
artificial intelligence as an example, my organization makes 
substantive contributions to over 700 artificial intelligence 
related programs within the Department.

    Senator Scott. Okay. All right. If you will get back to me 
and let me know how many people work there.
    Mr. Brown, who, that you deal with in the Defense 
Innovation Unit, is the most friendly to your ideas?
    Mr. Brown. In the Department of Defense?
    Senator Scott. Yes.
    Mr. Brown. We are finding that there is tremendous 
receptivity, demand for what we do among the services. Everyone 
wants to modernize, but I would say the constraints, which are 
dictated by our historical way of developing capability again 
start with requirements, a budgeting process that takes 2 or 3 
years is the biggest inhibitor, which is why you heard my 
opening comments, not about technology but what we need to do 
to change so we can adapt and adopt commercial technology so 
much more quickly. We need Congress' help with that, and we 
need to change some things in the Department, so we can go 
faster. Speed is a very important competitive dimension in the 
race with China.
    Senator Scott. In my business life we always had a sort of 
business plan. So what is you all's business plan for each of 
your units? Like you say, success is tied to what? What would 
be success be, starting with you? What is success? What do you 
feel like your purpose is?
    Ms. Shyu. Success is going to turn a technology into a 
military capability and give us an advantage. That is the 
success we are looking for. But starting from basic research 
all the way to the end, it takes time to actually develop that, 
laser being a perfect example. It has taken decades, but now we 
are actually demonstrating we can shoot down UAVs--unmanned 
airborne vehicles--and we can shoot down cruise missiles. So we 
are showing extraordinary capabilities, and now we are in the 
process of fielding those capabilities.
    Senator Scott. Dr. Tompkins?
    Dr. Tompkins. Our mission is a really unusual one but it is 
very, very much focused on preventing and creating 
technological surprise. So what we try to do is we place many, 
many different bets on technology--high risk, high payoff. For 
us, success is going to be measured at different points in 
time. So at any moment in time we do look at our entire 
portfolio of current and recent programs, and we look for 
transition, through many different paths, into real-world use. 
But we are also always looking back, and what we are often 
finding is that something that we invested in one to 2 decades 
ago has been truly transformative and completely changed 
everything about how the military operates. Those are sort of 
the big bets that we are looking to make, and we are very proud 
of and we tend to think of as our big successes.
    Mr. Brown. So my job is a little easier than my colleagues 
in this. We have a crystal-clear focus, and it really builds on 
what Secretary Shyu said--getting capability in warfighters' 
hands. Because it is commercial technology, we often avoid all 
the classification issues that have come up here already, and 
we try and get that 1 year if it is software, 2 years if it is 
hardware.
    So we measure, from a project start, when did we get that 
in warfighters' hands, which means successfully prototyped, it 
worked technically, production contract in place, and most 
importantly, budget lined up so it can start to scale. All 
three have to be met for a transition. We have done 43 
transitions since we have been around, and that is a 45 percent 
transition rate.
    Senator Scott. So Communist China has clearly decided to be 
an adversary. When you think about your jobs, do you say, ``I 
am doing this because it is going to put our military in a 
better position, and this country in a better position to 
defend?'' and how do you apply that?
    Ms. Shyu. One of the things that we do do is we do a net 
assessment. Namely, we take a look at what is our capability. 
We also take a look at what is the red capability. That informs 
us where we need to go. It informs us what we need to invest in 
to get ahead of the threat. So that is done in step one. So 
investment in a lot of our technology priority areas is 
informed by where we need to head, and I think, if I could come 
in and chat with you at a classified level I can talk about how 
these pieces are literally stitched together to give us an 
asymmetric advantage.
    Senator Scott. Thank you, Chair.
    Senator Kelly. Thank you, Senator Scott.
    We will now go into our second round of questions. I want 
to get back to Mr. Brown for a second. In the beginning of my 
first question we were talking a little bit about non-technical 
aspects, like workforce shaping, concept development, and 
wargaming. I asked Secretary Shyu and Dr. Tompkins to comment 
on investing in key emerging technology areas to address their 
warfighting needs. I think for DIU it is a little bit different 
with the commercial technology.
    But let me ask you this. How often do you see companies out 
there and you identify things--like what percentage would you 
say are actually emerging technologies, and then do you ever 
get to the point where you realize that some company is so far 
out in front of maybe our adversaries that have to consider, do 
we need to classify their intellectual property? Is that ever a 
consideration as DIU identifies commercial activity?
    Mr. Brown. Senator Kelly, the model for DIU is not to set 
our own priorities. So, you know, the time frame that Dr. 
Tompkins has is considerably longer. We are about what can we 
field quickly.
    So our priorities come from mission partners, the services, 
another part of DOD that says, ``We have got an urgent 
problem,'' and then we match that with what is available today. 
So that ends up being different technologies to work on. It is 
a portfolio--one in AI, one in energy, cyber.
    Senator Kelly. But as you are doing that you must come 
across things unexpectedly.
    Mr. Brown. Yes. Most of the times I would say we do not see 
things that need to be classified, and, in fact, in my own 
personal opinion we overclassify things so it makes it more 
difficult to work on. I have not encountered one of those in my 
tenure that I feel like we have got to rush to make this 
classified.
    I think the more innovative it is, it pushes me the 
opposite way, to feel that we need to go faster, because our 
adversaries have access to commercial technology as well. So we 
need to make sure we are including that in warfighting concepts 
and funding that so that we can bring that to our warfighters.
    I think the constraints we talked about earlier that 
inhibit our ability to get the commercial technology more 
quickly adopted just put our warfighters behind us, behind in 
terms of commercial technology and then certainly versus 
adversaries.
    Senator Kelly. Thank you. I want to follow up on Senator 
Fischer's question about hypersonics with Secretary Shyu. She 
was talking a little about cost versus capability, she 
referenced Secretary Kendall's comments about hypersonics, and 
I am a strong believer that we need to catch up in our 
hypersonic missile technology. Secretary Shyu, you talked about 
putting all the parts, I think, together. But really what we 
are looking at is increasing our Pk, probability of kill, on a 
target.
    So as you look at hypersonics do you feel that this is the 
future to increase the probability of destroying a target, or 
do you sometimes consider existing technology, improving that, 
that would give us a higher Pk?
    Ms. Shyu. That is a great discussion in which we actually 
have done analysis in. I think we should come back and brief 
you--once again, it is unfortunate--at the classified level. 
But we can show you the analysis that has been done at a 
campaign level that looks at conventional weapons as well as 
hypersonic weapons, to attack against different types of 
targets. So we have done that analysis. We will be more than 
happy to come and brief you on that. If you can give us an hour 
of your time, we will go down to a Sensitive Compartmental 
Information Facility (SCF) and have a great dialogue.
    Senator Kelly. I will take it, and Senator Ernst, if you 
are ready.
    Senator Ernst. Yes. Thank you so much, and for everyone, 
please, if you identify a technology that is viable for the 
warfighter, and if all of the departments' existing authorities 
are employed, how quickly could that innovation be fielded for 
our warfighters? I would just love to hear from all of you. 
Secretary Shyu?
    Ms. Shyu. Senator Ernst, I think it depends on the 
particular type of technology, because there are some 
technologies, potentially, if it is commercial we can leverage 
it very quickly. If it is something we need to develop, due to 
the type of threat that is demanding us to do that, it may take 
a little longer to develop. But it really depends on the type 
of technology.
    Dr. Tompkins. I have to agree. I can think of examples 
where we have seen things, for example, with traumatic brain 
injuries with warfighters, where we were able to very quickly 
adapt commercial technology. It was not quite what we needed, 
and so within a year of adaptation we were able to then work 
with the military to get those deployed out for soldiers.
    On the other hand, when it is some type of a munition, when 
everybody is all in--so as I think we demonstrated in 
partnership with the Navy when we were working on the Long-
Range Anti-Ship Missile (LRASM)--you can do in single-digit 
numbers of years, but the entire Department has to be working 
together in order to remove any kinds of normal process-based 
obstacles.
    Senator Ernst. Okay. Thank you.
    Mr. Brown. If the technology is commercial and we do not 
have to go through the development part of that, so our goal, 
beyond the goal of getting as many things across the line to 
the warfighter as possible is how fast did we do it. With 
software, the fastest we have done it, from a concept to 
actually implemented by warfighters, it was a piece of software 
for United States Northern Command/North American Aerospace 
Defense Command (NORTHCOM/NORAD), in under a year. But the 
gating time on that is the testing time that we want to take, 
because there are big consequences of making mistakes. So we do 
not want to compromise on that. So 1 year for software, 2 years 
for hardware is the target we are currently trying to beat with 
commercial technology.
    To make sure the business process is friendly for 
commercial companies we try and get them on contract in 90 
days. So that is lightning speed for DOD, but it is commercial 
terms.
    Senator Ernst. Right. No, and thank you. I have spoken with 
a number of leaders in Silicon Valley who have made it clear 
that they could field technologies and weapons systems ready 
for experimentation with DIU in the Nevada Test Bed in the next 
90 days. So I do believe the Department of Defense must move 
toward the pace of private industry, when at all possible, and 
that any steps we can in that direction are very, very 
important. However we can move that direction I think we 
should. I know there is going to be some differences with the 
different types of systems. But we have to be able to field 
systems as rapidly as possible, and I am so concerned that 
sometimes we get so wrapped up in red tape and the budgetary 
cycles, we need to think about innovation and how we field 
quickly.
    So that is my little rant for this period.
    Just in some time that I have remaining, Secretary Shyu, in 
your assessment, what is Silicon Valley and the defense small 
business enterprises' capacity to field prototypes for weapons 
and logistics support equipment if tasked today with, for 
example, developing missile or an Intelligence, Surveillance, 
and Reconnaissance (ISR) prototype, something like that?
    Ms. Shyu. I think there is tremendous capability into 
commercial. I will give you an example in the commercial world. 
Elroy Aircraft. They are strictly a commercial company but they 
have developed a cargo UAV that can fly 300 miles and carry 300 
pounds of payload. So for logistics, this would be fantastic. 
If the Government literally can just buy something commercial 
off the shelf, we do not have to pay for the development. It is 
paid commercially.
    So absolutely, this is exactly where we are teaming up with 
DIU, to look for these types of capabilities that literally we 
can just buy rather than trying to reinvent.
    Senator Ernst. Right, and I think, Dr. Tompkins, that was 
maybe what you were referring to as well, to be able to procure 
something and make minor modifications, where necessary, right? 
Yes.
    Dr. Tompkins. Yes.
    Senator Ernst. Thank you. I yield back. Thank you.
    Senator Kelly. Thank you, Senator Ernst. Senator Kaine.
    Senator Kaine. Thank you, Chair and Ranking. Important 
subcommittee. I want to say hi to Mike Brown, who is an old 
friend, and I would say if you guys ever want to do a really 
good field trip, when you are in Silicon Valley go by DIU, 
because you will really see great things. I had a wonderful 
visit a few years ago and remember it well.
    Secretary Shyu, I want to ask you this question. Now you 
have been in your position for almost a year. Do you think that 
the split of AT&L [the position of the Undersecretary of 
Defense for Acquisition, Technology, and Logistics] into two 
divisions had a positive impact on fostering innovation?
    Ms. Shyu. There are pros and cons.
    Senator Kaine. I am more on the con side myself, I am going 
to say, but I am not doing it every day. So those who do it 
every day certainly have better-informed view than I do.
    Ms. Shyu. I would say on the positive side--I will give you 
both perspectives. On the positive side, I can spend more of my 
time on the research and development on the S&T side. On the 
con side, namely you have got two people that are going to be 
sitting in multiple meetings now, and you have to literally 
link arm-in-arm. There are all those meetings within the 
Pentagon, I have to be linking the arm with A&S. Otherwise, I 
am going to create an island of just S&T that never 
transitions, which is not what I want to do.
    Senator Kaine. Can you give me an example? So how do we 
mitigate the downside of that con? So you do it by linking 
arms. Can you give me an example of a project or something you 
are working where you think it is working well, where you have 
got arms linked and something is being delivered or done that 
you feel good about?
    Ms. Shyu. I am looking forward to Dr. Bill LaPlante's final 
confirmation so we can actually link arms to work on a number 
of these projects together. I can guarantee you, I cannot wait 
until he is on board. There is a whole slew of stuff we want to 
do together.
    Senator Kaine. I guess that would another con of splitting 
them into two is if you get one confirmed and the other is not, 
then you have the one function that is ready to go and then you 
are kind of waiting around to link arms with your colleague on 
the other function.
    Sometimes in this Committee we do this, but we probably do 
it even more when we are thinking about budgets and 
appropriations. We talk about the defense budget and the non-
defense budget, and yet there is so much in the ``non-defense'' 
budget, whether it is the nuclear programs in the Department of 
Energy (DOE) or whether it is National Security Division (NSD) 
programs, where I feel like the distinction between defense and 
non-defense budget is somewhat artificial. Particularly when 
you get into research and science and so many different 
agencies where to do your work really, really well you have to 
have arms linked not only with your colleagues in the Pentagon 
but with the agencies outside the Pentagon.
    Talk a little bit, a year in, how good you feel about the 
stakeholders being at the table together rather than siloed, as 
we are tackling these emerging threats and issues.
    Ms. Shyu. I would say one of the things that we are working 
very closely in the microelectronics area is with the 
Department of Commerce, because we have to. I will tell you on 
a lot of the other things, and hypersonics is an example, we 
are working very closely with the Department of Energy, because 
the common glide body was developed by Sandia, and the 
technology is being transitioned to the services. So we do have 
close collaboration across the different agencies.
    Senator Kaine. That is good, because in this defense versus 
non-defense budget, like Department of Energy, a citizen might 
think that is all like, you know, promoting American energy 
companies. No. Overwhelmingly that is taking care of the basic 
nuclear labs and other research and other assets that lead to 
the construction of the reactors in Lynchburg that get put on a 
train down to Newport News and then put into subs and carriers. 
So all these non-defense agencies, many of them have very 
direct ties.
    Coast Guard is a non-defense agency in the sense that it 
comes up through DHS rather than DOD. Many of the law 
enforcement agencies that are working on drug interdiction in 
the Americas, they come up through the Department of Justice 
(DOJ), not through DOD. But we have to really, really, as you 
say, link arms if we are going to do a good job.
    Those are all the questions that I have for now, but I 
really appreciate the chance to come and encourage fewer silos 
and more arm-linking.
    Senator Kelly. Thank you, Senator Kaine. That is the end of 
Round 2. We will go to a third round of questions. I want to 
maybe start with Dr. Tompkins here, and to follow up on 
something that Senator Ernst mentioned in her opening remarks, 
and that is the valley of death for some of these technologies. 
A recent Government Accountability Office (GAO) report 
highlighted this.
    You know, DOD has struggled to transition some early-stage 
R&D into real acquisition programs, and if we are going to be 
competitive with China and Russia on some of these technologies 
we have got to do a better job of getting across that valley. 
It is very frustrating for folks out there that want to work on 
emerging technologies and get them to DOD, things like 
artificial intelligence and space systems and all kinds of 
stuff.
    Actually, the question is for anybody. Is this a problem 
that any of your organizations can actually quantify in any 
way? Do you have any statistics on it, or some data or 
anecdotes? Do you know how many of the technologies developed 
in your organizations, or in the case of Mr. Brown, commercial 
off-the-shelf just actually do not get to the warfighter?
    Dr. Tompkins. Statistics, as you can imagine, are really 
hard to keep track of, because at any moment in time they might 
change on you. I think the last numbers I saw, where we tracked 
transition across, say, eight different avenues, we were 
tracking about, I think, 23 percent that simply did not go 
anywhere, in the sense that usually for us that means we failed 
because we were trying something really crazy and it did not 
work.
    Senator Kelly. Sometimes that could be the case, it is just 
never going to get there.
    Dr. Tompkins. Right. But for everything else things are 
moving.
    Now, of that, I do not know exactly what percentage 
directly reached the warfighter, because some of them might be 
in a program of record and it is not quite there yet, or it 
might be in another government lab, working through the final 
maturation stages.
    But it is a topic we are very, very concerned about, and 
one of the reasons that we have spent so much more time 
focusing on commercial transition support to companies that 
start up, based on having developed DARPA-funded technologies.
    Mr. Brown. I would like to start by building on what Dr. 
Tompkins said. She has a program, the Embedded Entrepreneurship 
Initiative, for successful companies that are coming out of 
DARPA programs. So she is trying to provide some support there, 
and we are trying to also pull there to make that a premier set 
of companies that we would look to at DIU.
    We have, really, two different arms at DIU. One is an 
investment arm that Congress authorized in the McCain National 
Defense Authorization Act (NDAA), National Security and 
Innovation Capital, to promote private investment in hardware, 
because private industry does a great job supporting software, 
a little bit less for deep tech, and that is a lot of what Dr. 
Tompkins does. So with that we have some money that we can 
provide for those vendors. That helps them get across one or 
two of the valleys of death, maybe getting a company formed, 
maybe scaling up manufacturing. We are going to look to the 
successful DARPA companies as one of the sources there.
    Then, of course, there is DIU itself, where we provide 
revenue for companies who are prototyping or testing with us, 
and we want to have them see production revenue. So we are 
looking at what is the ongoing, recurring revenue that 
stimulates more investment dollars to come in to fund these 
companies that are supporting national security.
    From a percentage standpoint, I would say that 25 to 30 
percent of the projects we work on have some problem getting 
the money in place--the right color of money--getting money in 
the right time frame. This is the link to the budgeting 
process. Because some of the new technologies come up, or 
emerging threats come up within a budget cycle, and then, as we 
know, it is very difficult to move money around. So that is a 
real problem and it frustrates, I would say, 25 to 30 percent 
of the efforts we work on, where we get a company that has 
successfully prototyped but cannot get to the warfighters' hand 
until the budget matches. Frustrating.
    Ms. Shyu. I would like to add onto that, if I may. We have 
talked about the multitude of different ways to do transition, 
from technology. One path is transitioning directly into a 
program of record. Another path is if you are transitioning to 
commercial. Another path would be you have transition to a 
prime contractor who is going to design and develop something 
that ultimately the DOD will buy, and then there is also a 
transition path of software that went directly into the hands 
of the operator.
    There is also another different way of transitioning. You 
can transition to Tier 2, Tier 3, Tier 4 contractor, who may 
design and develop components that go into a prime that 
transitions into the DOD. We have no contractual mechanism to 
track that, ergo, the difficulty in trying to figure out 
exactly which technology you have funded that transition 
directly.
    The other piece, and I want to give you an example, of 
technology takes time to transition. One of the DARPA programs 
that funded is a microwave packaging. It was like a $1.5 
million microwave packaging contract. It spawned an idea, to 
figure out how do I design and develop a very innovative 
architecture for active electronically scanned array, which is 
critical for the next-generation radar system. It developed 
something, you know, a prototype, from internal research and 
development. From that particular effort, when I came on board, 
I looked at that technology, and I said, ``That is really 
innovative.'' It was funded from DARPA, transitioning into 
array technology. I took that technology, matured it, developed 
it into a prototype, which then ultimately helped Raytheon, at 
the time, to win the F-18E/F contract, which it fielded in 
production.
    So you can see the long time frame. It took a decade to get 
there. But ultimately the sealing contract that was provided 
from DARPA spawned off an entire product line which resulted in 
billions of dollars in terms of profit.
    So that is a transition. Nobody probably has a record. I 
knew it because I was involved in it.
    Senator Kelly. Senator Ernst.
    Senator Ernst. Oh, I appreciate it. Secretary, we talked 
yesterday a little bit about the RDER program, as well, which I 
am fascinated by. Does the program address the speed of 
fielding technologies for the warfighter? Do they talk about 
time frames and when they want it fielded? Because with the 32 
technologies you selected for demonstration, can we expect any 
of those technologies to be delivered in 2 years or 5 years? 
Maybe if you could walk me through that, and how you determine 
how long until fielding.
    Ms. Shyu. So the whole intent of RDER is trying to expedite 
the capability into the hands of the warfighter as quickly as 
possible, by closing the joint warfighting capability gaps. So 
we are looking at technology. We can literally demonstrate, in 
2023, 2024, and be able to push it out by 2025. So we are 
trying to compress the timeline, and not wait a decade to push 
the technology out.
    So one of the aspects of being able to accelerate 
capabilities into the hands of the warfighter is once we 
determine, the Joint Staff and the COCOMs determine there is 
operational utility of having this particular protype, I need 
to have a mechanism, a funding mechanism to rapidly transition 
this technology.
    One of the things that we are going to ask for is, is there 
a pot of money that we can ask to transition to mature this so 
I can help the company who produced this, especially if it is a 
small company, to ramp up production. Because if they deliver a 
few prototypes to you, and all of a sudden you saw the powerful 
utility of this and you want to buy 1,000, they cannot flip a 
light switch and give you 1,000 tomorrow. But I would love to 
be able to help them bridge the valley of death and not wait 2 
to 3 years for the Program Objective Memorandum (POM) process, 
the Planning, Programming, Budgeting, and Execution (PPBE) 
process, to catch up to buy this. This is exactly why small 
companies die on the vine.
    Senator Ernst. Right. Thank you. I appreciate that very 
much.
    then, as well, we talked a little bit about special forces 
as well. We have some authorities that they utilize. Does the 
Special Operations Forces Support Agency have the capacity to 
deliver innovation to the warfighter quicker than what we see 
with general DOD timelines?
    Ms. Shyu. Yes because they take mature technology. They are 
not trying to take immature technology and develop very basic 
science. They look at what is the stuff that is out there 
today, that I can literally rapidly buy and field? So their 
timeline is very compressed. They are not trying to develop 
next-generation fighter aircraft. They are looking at, hey, 
what can I get very quickly? It is more like a DIU model.
    Senator Ernst. One thing that we might want to do, too, is 
just look at the existing authorities within their programs and 
see if some of those could be applied, DOD-wide.
    Mr. Brown, did you have some thoughts, as well?
    Mr. Brown. For me it is less about authorities. As I talked 
about in my opening statement, a lot of the authority already 
exists within DOD. We need to change some of our processes. But 
the authority that does not exist Secretary Shyu just talked 
about, the flexibility of moving money, to get it where it is 
needed most. I realize why those things existed historically, 
but now we are in a serious tech competition with China, and 
they are not waiting for our democratic time frames. I like our 
system better than theirs, but we have to figure out how to 
move more quickly.
    Really, from a technology adoption point of view, whether 
it is commercial technology of inventing the next technology, 
it is about having the flexibility to move it where it is 
needed most, in a simpler fashion than we have today. I think 
that is the most critical element we need to attack between 
Congress and the Department to improve our defense.
    Senator Ernst. Yes, thank you, and I think this is a big 
takeaway for me, and I think for a lot of folks as well, is 
that maybe not so much about the authorities but maybe more 
about flexibility, within parameters, of course, because we do 
have to be good stewards of those dollars. But, of course, 
greater flexibility so we can keep pace, I think is really 
great.
    Thank you very much. I appreciate the information.
    Senator Kelly. I would like to talk a little bit about 
microelectronics with the three of you here for the next 5 
minutes. So secure access to microelectronics is a key enabler 
for so many of our technologies, not just for DOD but our 
defense industrial base. Our market share has shrunk in the 
production of these, from upwards of 40 percent to 12 percent 
today, and if we do not do something about it, it is going to 
get below 10, and that is not good. Also the most sophisticated 
foundries for semiconductor chips are now overseas, and this 
creates just a dangerous reliance on foreign sources.
    That is why I have been part of leading this plan on a $52 
billion investment that will support bringing this 
manufacturing capability back to the United States, and it also 
will establish a dedicated microelectronics network within the 
Department that leverages the expertise in our universities and 
in industry. I would like to thank Secretary Shyu for working 
with me on this effort, and I know it will help us overcome 
current challenges in supply chain security and disruptions and 
the problems that this creates for the Department of Defense.
    So I would like our witnesses to address how the paradigm 
for trusted microelectronics needs to change so we can better 
leverage commercial practices and economies of scale. Starting 
with Secretary Shyu, can you begin with what the Department is 
doing to break the outdated, dedicated, trusted foundry model 
that has been used since the early 2000s? You know, we do not 
do most of the technology work the same way that we did 20 
years ago.
    Ms. Shyu. First of all, I want to thank Congress for giving 
us the $52 billion. I think it is absolutely critical for this 
nation to onshore some of these critical capabilities. As we 
have seen during the pandemic, we cannot get our hands on the 
microelectronics. This is a tremendous impact on our industries 
across the board. So thank you very much.
    I would say there are several things that we are doing. The 
Microelectronics Commons is going to be a critical enabler. The 
funding that you have given us is going to fund $400 million 
per year for 5 years to build a lab-to-fab facility that is 
regional. That is going to help the university to create the 
next generation of materials and processing technology, to test 
it out in a regional fabrication facility, and have the ability 
to transition this technology to a production facility. It is 
going to help our entire infrastructure. So that is absolutely 
critical.
    The other piece that we are funding within the Department 
of Defense is the Rapid Assured Microelectronics Prototype 
commercial, namely we are focused on providing a leading-edge 
capability, less than 3 nanometer wafer foundry. That is 
absolutely the state of the art.
    We are building that capability in the U.S., and it is also 
going to strengthen our domestic industry and establish a 
sustainable ecosystem, because we are teaming up with fabulous 
companies as well, who can then design within this commercial 
foundry. What we are looking at is leveraging the state-of-the-
art commercial processes and putting on top of a layer, 
potentially for classified chips that we may need. But 
literally, we are absolutely leveraging the commercial state-
of-the-art foundry.
    Senator Kelly. I cannot stress how important it is that we 
finally get this across the finish line. You mentioned we have 
given you the $52 billion, but we still have some key steps to 
go here. We are close. This is incredibly important to our 
national security. I do not think this can wait months. The 
United States Senate and the House should figure this out this 
week, and if not this week, as soon as possible. We run the 
risk of other countries in Europe making these investments. 
There have been proposals that they have made that 
substantially, I would say, are above the proposals we have 
made here. So time is of the essence on this, and we have to 
get this across the finish line.
    I do have a couple more questions if everybody has a few 
more minutes. I want to talk quickly about some biotechnology 
and genetic data. You know, our ability to leverage 
biotechnology and decode genetic data has grown by orders of 
magnitude over the past three decades. That is why mine and my 
twin brother's DNA is available to everybody online, thanks to 
my former employer. I did allow it--they did ask--but it is 
there.
    Much of that ability right now lies in the private sector, 
and that means competitors like Russia and China can buy these 
and try to exploit sensitive information.
    So maybe we start with Dr. Tompkins here. How concerned are 
you that nefarious actors or near-peer competitors are using 
genetic data for bioweapons or intelligence gathering?
    Dr. Tompkins. That kind of question is one of many that 
tends to keep us up at night, as you can imagine. Obviously, I 
think the kinds of questions you are asking are also very much 
more part of the intel community. We use the information from 
them, however, to think about safety, security, and defense, 
and so what we tend to do is think about how one might very 
quickly chase down and erase some type of customized capability 
like that, as well for accelerating our own innovative 
capabilities, building security from scratch.
    Our program Safe Genes is a good example of that, and we 
are obviously thinking about other defensive kinds of 
capabilities that are less easily discussed in this type of an 
environment.
    Senator Kelly. Does our growing capability or ability to 
decode data offer us any mitigation strategies here against 
bioweapons or other intelligence exploitation? This is for 
anybody, if anybody has a comment on this.
    Dr. Tompkins. One thing I can talk about, it is still a way 
away from being ready for prime time, is specifically looking 
at the epigenome, so not just at the genetics but at sort of 
some of the proteins and things that are hanging off of the 
genetic information. We have several programs exploring how you 
can use information in the epigenome to tell you whether 
somebody has been exposed to weapons of mass terror, weapons of 
mass destruction, precursors, things like that, and also 
exploring ways in which those things might be triggered to 
provide advanced protection.
    Senator Kelly. Any other ways we can guard against 
potential threats in this area?
    Mr. Brown. I will just add a different dimension to this 
from the sciences. This is one of the areas of emerging 
technology where the government can play a role by really 
assisting commercial companies with developing that technology. 
What I mean by that is being more forward-leaning in terms of 
contracts to develop the capability. A capability that exists 
in our commercial sector right now to sequence all pathogens, 
and that could be happening globally, but there is no program 
to make that happen.
    We should be experimenting with these capabilities, funding 
some of these companies, so that the U.S. is on the forefront 
of this technology. I think that is going to be critical. Just 
like it was in the space race in the 1960s versus the Soviets, 
the government was very forward-leaning and developed lots of 
new technology. This is another area where I think we need to 
be forward-learning with the industrial base.
    Senator Kelly. Thank you. The GAO and others have recently 
highlighted the challenges that DOD faces in attracting and 
retaining a highly skilled technical workforce, and I imagine 
for all three of you, I mean, that is the whole ball game, you 
know, having the workforce to do this work. It does not matter 
if it is artificial intelligence or hypersonics or anything, 
for that matter.
    I have spent some time getting up to speed on what China is 
doing here and how we stack up. You know, there is more we need 
to do. So, Secretary Shyu, can you share, what is DOD doing to 
acquire and retain the talented people that we need to develop 
and deploy things like artificial intelligence and other 
emerging technologies?
    Ms. Shyu. You bet. One of the things that the DOD has done 
is create the Smart Scholarship-for-Service Program. Last year 
we funded 416 scholars for their undergraduate and graduate 
degrees, if your field is in one of the 21 STEM areas that we 
are interested in. So these students, their scholarship is 
being paid for, and when they graduate they come and work in 
one of the 101 DOD laboratories.
    We had great success stories so far, and I can tell you, 
out of the 416 SMART scholars, 50 percent of them were women, 
for which I am thrilled, 20 percent were from underrepresented 
minorities. I would say nearly half of these 416 SMART scholars 
are pursuing degrees in computer science, in software, in 
artificial intelligence, which is fabulous. We are leveraging 
those SMART scholarships to support them in growing our bench 
strength.
    If you look at over the years, in the last 2 years, we have 
had 561 scholars that transitioned to their employment after 
they finished their degrees, and 70 percent of the SMART 
scholars, after they finish their service obligation, decided 
to stay with the DOD laboratories. That is a huge success 
story.
    The other thing that we are doing, and beyond doing just 
the scholarship piece, we actually awarded 28 grants, at $82 
million, to develop K-20 education. Again, Arizona State 
University, their curriculum for biotech is targeting minority 
and rural areas in Arizona. You want to increase your bench 
strength in the future.
    The Department, through the National Defense Education 
Program, created 10 STEM summer camps. Literally, we took the 
opportunity to pull in 1,200 junior high school students and 
gave them a week-long STEM camp. They loved it. It was a highly 
successful education program that we have done, getting junior 
high school students interested in science and technology, and 
we want to grow that next year.
    So we are doing a number of things that we can reach down, 
not just at the university level but lower levels as well, to 
encourage them to go into STEM.
    Senator Kelly. Thank you. Dr. Tompkins or Mr. Brown, any 
comments? I think is a good question to end on too, because it 
is so central to everything all of your organizations do.
    Dr. Tompkins. I will offer an example of a type of 
initiative that DARPA specializes in, because it allows us to 
continue to sort of fund projects as part of what we do, and 
that would be the Joint University Microelectronics Program, 
called JUMP. That is nearing the end of a 5-year program 
lifecycle, and we have just announced the start of the call for 
proposals for JUMP 2.0.
    But this is a university-government-industry consortium, 
and it is a model that universities themselves often use on a 
much smaller scale, where you might have a handful of companies 
together paying into the support of students and essentially 
developing the pipeline and research baseline for the workforce 
development.
    In our case, we are talking about 35 universities, over 
1,300 students in the last 3 to 4 years, hundreds of 
researchers across I think about a dozen or two states, where 
that pipeline directly connects U.S. university students to 
U.S. both defense and commercial and sometimes allied nation 
companies in order to significantly build up that workforce.
    We are not necessarily targeting government labs 
specifically but what we are very much doing is trying to 
target that overall U.S. program.
    Senator Kelly. Thank you.
    Mr. Brown. I am going to be the skunk at the party on this 
one. I think what the Department does on fellowships, 
internships, is fantastic, and we need more STEM talent for the 
competition with China. We should contrast that with how 
difficult we make it to bring incredibly qualified people into 
the Department.
    One quick example. At DIU we are very lucky to attract a 
Rhodes Scholar, PhD in computer science from Stanford, who 
wanted to work for us at a government salary. Seven months, 
once we identified that candidate to get him in the door. I do 
not know what we do with that time, and this predates Secretary 
Shyu. It is the administrative process that we have at DOD that 
are--I cannot even explain why it would take that long, for 
what, in the private sector, would have taken seven days, we 
would take seven months to do.
    We cannot attract the best people if we do not recruit them 
and have a better process experience.
    Senator Kelly. Could you find out, and go back and find out 
who we could talk to? Because if we can identify why it takes 
seven months, Senator Ernst and I, we could probably, with some 
help, figure out what we need to do to speed that up.
    Mr. Brown. We would love to tackle that. I hope Secretary 
Shyu will share my enthusiasm for that.
    Dr. Tompkins. If I may add, as I have mentioned several 
times how grateful we are at DARPA for the authorities and 
flexibilities that you have granted to our organizations, we 
can typically hire within a week, Mike. So the problems are 
solvable.
    Senator Kelly. Okay. We need to go to that model.
    Ms. Shyu. Sir, one more final thing. I think it important, 
because you bring them in at the salary level at which 
government pays. You are nowhere competitive against the 
commercial industry, who is going to pay them twice as much or 
three times as much. So that is a disadvantage that we have.
    I can tell you one example. I spoke to an individual with a 
PhD from Stanford. He had two very high-paying offers. I 
literally spoke to him, ``Look, for the sake of national 
defense you need to take a job and work with me, at a much 
lower-level salary that I can pay you. But just think of the 
perspective in the visibility that you will get working with 
me.''
    So, literally, I talk him out of an extremely high-paying 
job to come work for me, and he is coming on board.
    Senator Kelly. Great.
    Ms. Shyu. So yes, it is the authority, the flexibility in 
pay that we do not have, which makes it very onerous in terms 
of trying to attract talent.
    Senator Kelly. Well I want to thank all of our witnesses 
for participating in today's hearing but also for leading your 
agencies and serving our country. I believe, you know, very 
strongly in the work you are doing, and it is important that we 
continue to not get our eye off the ball here, to focus. I am 
convinced, long term, we will out-invent and out-innovate our 
competitors as long as we remain focused on it and you have the 
tools you need. So please, let us know what you need.
    I just look forward to continuing to work with you, and 
this hearing is adjourned. Thank you.
    [Whereupon, at 4:02 p.m., the Subcommittee adjourned.]

    [Questions for the record with answers supplied follow:]

            Questions Submitted by Senator Marsha Blackburn
                         hypersonic development
    1. Senator Blackburn. Mr. Brown, what specific challenges do aging 
infrastructure pose to testing modernization?
    Mr. Brown. Aging infrastructure increases test costs, delays test 
schedules, and limits the value of data collected during test events. 
The Department of Defense (DOD) Test Resource Management Center (TRMC) 
is addressing test infrastructure modernization needs through strategic 
planning and targeted investments to deliver both the capabilities 
needed to test developing weapon systems and the throughput required to 
test at the scale and speed necessary to keep pace with rapidly 
advancing technology.

    2. Senator Blackburn. Mr. Brown, how does software advancements 
impact infrastructure in the short- and long-term?
    Mr. Brown. Software advancement enables the Department to more 
efficiently evaluate data collected during test events. As an example, 
the TRMC is developing software solutions that incorporate big data 
analytics to significantly accelerate post-test data analysis.
           defense advanced research projects agency (darpa)
    3. Senator Blackburn. Dr. Tompkins, what has DARPA learned from the 
unmanned UH-60 Black Hawk maiden flight? What challenges arose from the 
unmanned UH-60 Black Hawk maiden flight, and how is DARPA addressing 
them?
    Dr. Tompkins. The successful maiden flight of an uninhabited UH-60 
Black Hawk proved the technology is mature for broader use and that 
this capability is ready for delivery to the Army for follow on 
development. As an Optionally Piloted Vehicle (OPV), a UH-60 Black Hawk 
leverages existing assets to provide wide benefits for force 
multiplication, sustainment, logistics, and operational effectiveness. 
While no significant technical challenges were noted, there is 
currently no follow-on funding for UH-60 Black Hawk autonomy.
                            pathfinder model
    4. Senator Blackburn. Ms. Shyu, what challenges have you identified 
in reviewing the Pathfinder model, and are we maximizing partnerships 
with academia?
    Ms. Shyu The Pathfinder program is a model that the Army is 
currently evaluating that seeks to create greater connectivity between 
the warfighter and academia in order to focus on warfighter challenges. 
I view such models as effective ways to engage users with the 
innovation ecosystem at much earlier stages and look forward to 
understanding and leveraging any lessons learned from the Pathfinder 
program throughout the Department via the Innovation Steering Group 
that I lead for the Deputy Secretary of Defense.
    In addition to programs like Pathfinder, the Department is 
maximizing its partnerships with academia through its basic research 
programs, its Historically Black Colleges and Universities and Minority 
Institution programs, the Small Business Technology Transfer Program, 
and through numerous educational partnership agreements and cooperative 
research and development agreements (CRADAs) between the DOD and 
academic intuitions. The Department values academia both as a hotbed 
for invention and innovation and as the source of a talented science, 
technology, engineering, and mathematics workforce for the Department 
and the nation.
                        recruiting and retention
    5. Senator Blackburn. Dr. Tompkins, what action is necessary to 
better develop, recruit, and retain talent within emerging 
technological expertise?
    Dr. Tompkins. DARPA's mission to engage in high risk research to 
prevent strategic surprise rests on a talented workforce with unique 
expertise. DARPA is grateful to Congress for the direct hiring 
authority that allows us to attract experts in science and engineering 
and hire them in a timely manner. Last year, Congress made two 
additional changes that have strengthened the authority. The 
streamlined pay modification eliminated a burdensome and unnecessary 
two-step process that will decrease administrative load and also reduce 
paperwork errors. The relocation expense changes to the Joint Travel 
Regulations will allow us to provide greater incentives to attract 
program managers who would need to temporarily relocate their families 
while serving at DARPA. These two changes are working well and there 
are no current challenges.

    6. Senator Blackburn. Dr. Tompkins, how is DARPA utilizing 
innovative workforce development, recruitment, and retention techniques 
to collaborate with academia and industries?
    Dr. Tompkins. DARPA takes a multifaceted approach to workforce 
development and recruitment by participating in outreach events across 
the country to reach new performers and program manager candidates.
    For example, DARPA has begun planning DARPA Forward, a large 
outreach effort aimed at discovering and engaging new communities of 
talent and energizing the DARPA innovation ecosystem. DARPA Forward 
will include six regionally-based events across the country culminating 
in a showcase of technology at the Pentagon and on the Hill. Each of 
the events is located on the campus of a public university.
                               innovation
    7. Senator Blackburn. Dr. Tompkins, what is the importance of 
Defense Innovation Unit (DIU) throughout combatant commands?
    Dr. Tompkins. The DIU is an organization that accelerates 
capabilities across the joint force at speed, typically within a two-
year time horizon. As is apparent in the current conflict in Ukraine 
and the pacing China threat, it is critically important to deliver 
capabilities to the combatant commands (CCMDs) at the speed of 
relevance.
    Defense-relevant technologies increasingly originate in the 
commercial technology base, both in the U.S. and abroad. These dual-use 
technologies, including satellite imagery, drones, artificial 
intelligence, and communications tools, provide the CCMDs:
      Additional real-time tools to enable their missions;
      Unclassified opportunities to share information and 
ideas, particularly with allies and partners;
      Foreign partner modernization;
      A strengthened collective defense innovation landscape; 
and
      More robust interoperability among regional allies and 
partners.

    8. Senator Blackburn. Dr. Tompkins, how is DARPA collaborating with 
academia and industries to provide innovate solutions for Space R&D?
    Dr. Tompkins. DARPA is involved with a number of important lines of 
effort related to space. One significant one is DARPA's Blackjack 
program. The Blackjack program plans to launch a satellite 
demonstration of a proliferated low earth orbit (P-LEO) architecture 
leveraging commercial space technology. The Blackjack program aims to 
enable a cost-effective pivot away from large national space system 
satellites to proliferated networked satellites in polar or highly 
inclined low earth orbits. The proliferated architecture will enable 
critical warfighting strategic capabilities including deterrence (via 
numbers), resilience, global constant custody of enemy forces, and, 
most critically, the ability to rapidly introduce new warfighting 
technology to the space domain.
    Additionally, Space-Based Adaptive Communications Node (Space-BACN) 
plans to leverage commercial space communication networks and 
technologies to enable more robust and efficient space-based 
communications. Since proliferated space is nascent, there is no 
standardization of communications or optical intersatellite link (OISL) 
specifications in this domain. Additionally, there is currently no 
means to bridge communications between disparate satellites and network 
constellations such as Starlink, OneWeb, and Blackjack. Space-BACN is a 
multi-standard optical terminal that can be reconfigured on-orbit to 
enable communications across different standards and connect these 
otherwise isolated constellations. The goal of Space-BACN is to enable 
the Government to easily connect to both Government and commercial 
satellites via high speed optical links enabling a ``mega-
constellation'' for space-layer (or space-based) communications.