The Honorable Daniel R. Coats Nominee for the Position of Director of National Intelligence Statement for the Record February 28, 2017 Chairman Burr, Vice Chairman Warner, Members of the Committee – I am honored to appear before you as the nominee for the position of Director of National Intelligence. It was a great privilege of mine to have served on the Senate Select Committee on Intelligence, and to see up close the great work done by all of the Members and staff. I’ll admit, however, the view is a little bit different down here than it was up there. I’d like to begin by thanking President Trump for nominating me for the position of Director of National Intelligence – I am humbled by his confidence in me, and will work tirelessly to lead the world’s finest intelligence enterprise. I would also like to thank Vice President Pence, my Indiana colleague and someone I’m honored to call my friend, for his support. I’m proud to have worked with him for so long, and deeply appreciate his faith in me. Senator Chambliss, thank you for being here to introduce me today. We served together in the Senate, and I particularly enjoyed working alongside you in your leadership role of this Committee. I’m honored by your kind introduction and presence here today, and for the friendship you and your wife, Julianne, have provided to my wife, Marsha, and me over the years – Saxby, thank you. I’d also like to acknowledge the work of the previous DNI, Jim Clapper, and his Principal Deputy, Stephanie O’Sullivan. Their stewardship of the Intelligence Community over the past years has been commendable, and their guidance in helping me prepare for this position has been invaluable. They left in place an experienced and great team who have been instrumental in providing a smooth transition for the ODNI and the IC. Also, I want to recognize my fellow Hoosiers who elected me to the House and Senate over the past years. I have always done my best to represent them, and am honored by the confidence they put in me time and again. While I’ll always be a Hoosier at heart, if confirmed as the next Director of National Intelligence, I will represent the dedicated men and women of the ODNI and the broader IC to the best of my ability. 1 Finally, and saving the best for last, I would like to thank my wife Marsha and children Laura, Lisa, and Andrew. Together my three children have produced 10 perfect grandchildren. My career in public service is a direct reflection of their enduring support and love. Without their encouragement, I wouldn’t be sitting before you today. It has been a long road of public service that has brought me here before you. After 34 years of service in the House, Senate, and as US Ambassador to Germany, I was ready to make a transition and planned to move on to a new chapter of my lifelong journey back home again in Indiana. But as I have learned over those 34 years, life doesn’t always work out that way. When called upon to consider this position, I first consulted my most important advisor – my wife, Marsha – as I examined the responsibilities of such a significant Office. As a former teacher and family therapist, Marsha understands me and the importance of public service. She is the rock that provides stability and wise counsel, shoulder to shoulder with me in every aspect of my life. While I am no longer retiring from public service, what I AM retiring is my policy hat – a hat I wore proudly for years as I represented the views of my constituents, offered policy proposals, and cast votes in Committee and on the floor. Just as this government transitions to new leadership, I too hope to transition to the role of principal intelligence advisor to the President. In this new role, it will be my responsibility to present the President, senior policymakers throughout the Administration, and you the Congress, with the best and most objective, nonpolitical, and timely intelligence as you consider policies and the future of our great Nation. The President and I have discussed my potential role as his principal intelligence advisor, and we both recognize that this position is frequently the bearer of unpleasant news. But if confirmed, my responsibility would be to provide him with the most accurate and objective intelligence possible. In my various conversations with many of you prior to this hearing, I was asked about how I see my role as the DNI. Those that know me know that I’m an avid sports fan—never more avid than this past year as I celebrated the seemingly impossible accomplishment of the Chicago Cubs winning the World Series. So allow me to compare how I see my role as the DNI using, well not a baseball but rather a football analogy. On a football team, the players are guided by a variety of coaches. There’s a coach for the offense, one for the defense, one for special teams, one each for offensive and defensive linemen, one for quarterbacks, and several others. 2 But every team has a head coach – that leader who walks the sidelines and, while not dictating to each coach how to do their specific job, pulls each of those specialists together to form a seamless and focused team. I see the role of the Director of National Intelligence as analogous to this head coach role for the Intelligence Community – integrating the IC and leveraging all of the expertise in our Community. We have immense talent resident in the many agencies across the IC, and each one contributes unique capabilities or expertise that is necessary for the team as a whole to be successful.        The unique access of our human intelligence sources and the detailed analysis from the Central Intelligence Agency and the Defense Intelligence Agency; The signals intelligence expertise of the National Security Agency is second to none; The geospatial mastery demonstrated by the National Geospatial Intelligence Agency; The acquisition proficiency of our satellite specialists at the National Reconnaissance Office; The force multiplier the intelligence elements of the Armed Services bring to this team effort; The domestic counterterrorism and counterintelligence work done by the Federal Bureau of Investigation; And the specialized skills of the IC elements resident within the Departments of State, Treasury, Justice, Homeland Security, and Energy. Like a head coach, I see it as my job to pull all of these team members together under the same game plan to produce the best coordinated and integrated intelligence. To make the whole greater than the sum of the parts. Given the complicated threat environment that we face today in this country and around the world, now more than ever, the IC must work as a team. Seamless. The threats that we face today are more challenging, dynamic, and geographically diffuse than ever before. Allow me to address, in no particular order, what I see as some of the most challenging issues we currently face:   Clearly the rising cyber threat must be highlighted. Cyberspace is both a resource and a liability; an increasingly connected world creates tremendous opportunities, but also many vulnerabilities. Not unrelated, I would also highlight the threat of radical Islamic terrorism, which continues to be a significant threat to the United States and its allies abroad. They’re spreading their message of fear and hate through cyber space, and mobilizing to venues beyond their self-described caliphate. 3    China’s continued regional activism, including its disputed territorial claims in the East and South China Seas, is troubling, and will be a long-term challenge. Russia’s assertiveness in global affairs is something I look upon with great concern, which we need to address with eyes wide open and a healthy degree of skepticism. And North Korea’s nuclear ambitions and, quite frankly, provocations, are something the intelligence community needs to be laser-focused on. The list continues with a diverse set of challenges—including those in Iran, Syria, Afghanistan, and other hot spots around the world. In order to address these threats, I will bring my many years of experience in how to execute on a plan, and bring together teams of people toward a common goal. As Ambassador to Germany from 2001 to 2005, I oversaw the activity of nearly two dozen agencies at the American embassy. I trust that my experiences coordinating and integrating that many different departments and agencies, overseeing their activities, leveraging their strengths, and bringing them together under a single strategy will serve me well as DNI. As a Member of Congress in both the House and Senate, I have always had a keen interest in ensuring we are responsible stewards of taxpayer dollars. In evaluating federal programs, I always made a point to ask questions about what works, what doesn’t work, and why. I also believed it was important to assess how we establish priorities. We must ask ourselves: in a time of tightened budgets, what programs are truly essential, and which may no longer be necessary, or of lower priority? How does each program support our overall goal or strategy? And is it duplicative of another effort? I will be looking to ask the IC these and many more questions if confirmed as the DNI. And in the vein of efficiency, there has been much discussion about the role of the DNI, and the Office of the DNI. Let me share with you what I have learned in preparation for this opportunity. Over the past 12 years since its inception, the ODNI has been tasked with a variety of responsibilities – in statute, in Executive Orders, and in Presidential Memoranda, along with recommendations coming from the 9/11 Commission and Silberman/Robb Commission on Weapons of Mass Destruction. The people supporting these directives are hardworking folks from all across the IC. Of note, a significant portion of the ODNI’s workforce is on rotation from other IC agencies. ODNI was established to counter the pre-9/11 stove-piping by individual intelligence agencies, and ensure collaboration and integration across the intelligence elements. 4 ODNI brings together talent from across the Community to integrate intelligence and does its best to connect all dots – not just specific dots from specific agencies and specialties. In keeping with my earlier football analogy, you can’t play a complete game with just a star quarterback and wide receiver—well maybe the New England Patriots can. But even the Pats need a strong offensive line, a stout defense, agile special teams, and a talented place kicker – along with many other players. Not every player on a football team is going to be the MVP, but they are a team nonetheless, and everyone on the field plays a critical role. And when we win, we win as a team. I’ve also been asked about the size of the Office of the DNI, and whether it’s too large. As I looked at the many requirements of the Office reflected in various laws, orders, and recommendations, I’ve been impressed by the Office’s responsiveness to these many tasks within reasonable resources. Recent commentary on the size of the ODNI doesn’t mesh well with what I’ve seen first-hand, and I believe it does a disservice to this committee and your efforts to keep the size of the ODNI in check. That said, and as I discussed earlier, I believe every government agency must constantly review its operations, and I’ll be taking a look at not only the Office of the DNI, but the entire IC, and at how we can do things most efficiently and effectively. Much has been made publicly about the role of our Intelligence enterprise, and how it will fare in the future. And I am encouraged by what I see. With the leadership team in place at the IC agencies, I know that this Community will continue as the world class intelligence enterprise that it is today. Before going to questions, I’d like to share with you the early goals that, if confirmed, I will share with the IC. I intend to push the IC to be the best it can be, and not accept the status quo when it comes to the challenges facing our nation. I intend to ask the IC to be innovative in its approach to hard problems and the solutions to solve them. I intend to be a champion for the hardworking men and women of the IC – to be there for them the way they are here for all of us. Every day, the men and women of the IC are working tirelessly on the front lines – often times in shadows, often times in very dangerous situations – with the common goal of keeping America safe and secure. 5 I also intend to work with all of you to ensure that the IC has the support it needs to tackle whatever the opposing teams bring our way, and to ensure that the Congress and this Committee have access to the information they need to conduct their oversight responsibilities. I am honored by the opportunity to be here with you today, and I thank you for your consideration of my nomination. And with that, I look forward to answering your questions. # 6