L3Harris CEO Chris Kubasik on Defense Procurement, Wartime Footing, and Innovation

Defense Procurement Overhaul

• 🎯 The Department of Defense's efforts to overhaul the procurement process are long overdue and a significant step in the right direction.
• 🚀 The national security strategy highlights increasing threats, necessitating the entire defense ecosystem to operate on a wartime footing.
• 💡 L3 Harris has undergone a similar transformation, focusing on AI, affordability, accountability, innovation, and speed.

Increasing Defense Capacity

• 🤝 A key focus is the joint investment by the DoD and industry to increase capacity, which is seen as a deterrent in itself.
• 📈 The awarding of multi-year contracts is crucial for establishing long-term agreements with the supply chain and empowering the defense industrial base.

Solid Rocket Motors and Munitions

• 🛠️ L3 Harris has successfully turned around its solid rocket motor business (Aerojet Rocket Dine) by providing leadership, investment, and innovation, now delivering on or ahead of schedule.
• 💰 Significant investments are being made to increase capacity for solid rocket motors and munitions, positioning the company for substantial growth.
• 🚀 The company is well-positioned to support the doubling, tripling, or quadrupling of munitions in the coming years.

Startup Ecosystem and Golden Dome

• 🌱 L3 Harris actively supports and partners with startups and new entrants, holding equity in over 70 venture-backed companies to help them overcome challenges and integrate their technology.
• 🛰️ The Golden Dome initiative presents a huge opportunity, particularly in missile warning and missile tracking satellites, with L3 Harris expecting significant contract awards soon.
• 🎯 The company is also excited about its role in providing large solid rocket motors for programs like PAC-3 and THAAD.

Commercial Business Model in Defense

• 💻 L3 Harris operates as a commercial defense technology company, leveraging its infrastructure, technology, and culture to align with the government's increasing focus on commerciality.
• 📈 The company has a strong track record with its commercial business model, which accounts for about 20% of its revenue, and believes it's the future for the defense industry.