Defense Business Briefing -- August 2, 2022

Welcome to today's Defense Business Briefing, your weekly roundup of the latest defense industry news.

This week's top story

FLRAA delay will cut into Bell profits, CEO says

The Army's multimonth delay in announcing the winner of the competition to replace the Black Hawk helicopter will result in a decrease in annual profits for Bell, according to its parent company's CEO.

News & notes

Northrop Grumman 'positioned as a competitor' for NGAD, CEO says

Northrop Grumman is poised to compete for the Air Force's secretive Next Generation Air Dominance system, CEO Kathy Warden said during the company's July 28 second-quarter earnings call.

General Dynamics expects combat vehicle 'inflection point' in 2024

The U.S. Army's multibillion-dollar light tank program and expected growth in European defense spending should begin to lift revenues in General Dynamics' combat vehicle segment around 2024, according to a company executive.

MDA competition for GMD futures fails to draw more than single bid, $3.2 billion for Northrop

The Missile Defense Agency, after nearly four years of market research and analysis on how best to inject competition into the nearly billion-dollar-a-year effort to sustain, maintain and improve the Ground-based Midcourse Defense system, managed to draw only a single proposal for a major new GMD Futures contract -- handing Northrop Grumman a $3.2 billion prize.

Eyeing Ukraine's war, lawmakers seek assessment on precision-munition surge options

Lawmakers want an independent assessment of the domestic, precision-munition industrial base, particularly any gap limitations on the Pentagon's capacity to replenish nearly two-dozen "critical" weapon systems in the event of a fight against Russia or China that extends more than six months.

Boeing logs further losses for fixed-price defense contracts

Boeing suffered further losses on several fixed-price defense contracts, with the largest charge for the company stemming from deliveries of the MQ-25 Stingray air refueling drone, the company announced in its July 27 second-quarter earnings call.

Air Force CIO lays out goals to work more closely with industry partners

The Air Force hopes to build tighter ties with companies to field needed software capabilities and updates more quickly, according to Air Force Chief Information Officer Lauren Knausenberger.

Appointments & promotions

GDIT names Yee GM of Army sector

Garrett Yee has joined General Dynamics Information Technology as the vice president and general manager of the company's Army sector, executives announced.

Booz Allen's head of defense business to retire

Booz Allen Hamilton's defense business will see a new leader in the coming months, executives announced during the company’s earnings call.  

What's happening

The week ahead

Senior military officials speak at a variety of conferences this week.

For Inside Defense subscribers

Senate appropriators want big increase for Abrams funding

A Senate committee is seeking to nearly double funding for the Army to procure upgraded Abrams tanks in fiscal year 2023, bringing the total for the upgrades closer to the levels the program received in FY-22 and tracking closely with an Army request for additional funds. 

Following norm-breaking PEO selection, JPO AQ precedent intact

Although the F-35 Joint Program Office has broken norms in its selection of a new director, officials are still adhering to a key precedent when it comes to acquisition oversight of the Defense Department's largest procurement effort.