“We have a fairly well-positioned and growing counterintelligence activity across the organizations,” the official said, adding that the shift to DoD has created “what is arguably the single largest security-focused agency in the federal government.”

The Navy’s data is spread all over the place, but a $100 million effort by the Navy aims to change all that within two years.

“We’re spending a lot of money in this area right now, but we don’t understand where we’re spending it” says Navy undersecretary Thomas Modly.

Even as one official warned that budget pressures would squeeze the budget, another said the nation must expand the defense industrial base to build a 355-ship Navy.

The Navy is going wobbly on its 355 ship fleet, but Capitol Hill doesn’t want to hear it.

Adm. Zukunft says he doesn’t want to return to the old culture of “martyrdom” when the service prided itself on doing more with less even as it ran its equipment and people into the ground.