Defense Business Briefing -- Feb. 6, 2024

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

This week's top story

Two contractors remain as ARV competition moves toward EMD phase

As the Marine Corps moves its Advanced Reconnaissance Vehicle program toward the engineering and manufacturing development phase and narrows in on requirements for a family of six vehicle variants, two companies remain standing in the prototyping competition that will decide the maker of this next-generation family of vehicles.

News & notes

Boeing defense unit still bleeding money, but 'poised to improve'

A senior Boeing executive said the company's defense business is "poised to improve" after recording huge losses, yet fell short of announcing a blueprint for 2024 during the company's year-end earnings call.

HII hiring, revenue climbed in fourth quarter

Shipbuilder HII made progress with hiring in 2023 -- bringing in over 6,900 craft personnel -- and set a goal of hiring approximately 6,000 more in 2024, according to a fourth-quarter earnings call with investors.

Oshkosh Defense earnings increase by 11% despite JLTV production drawdown

Oshkosh Defense earnings increased by 11% even as the company draws down domestic production of the Joint Light Tactical Vehicle, company leaders said during their fourth-quarter earnings call.

BAE Systems Buys Malloy Aeronautics

BAE Systems announced it has acquired British drone company Malloy Aeronautics.

Bipartisan Senate supplemental bill tags $35B for U.S. defense industry

A new supplemental security spending bill that emerged from the Senate over the weekend after months of bipartisan negotiations injects $35 billion into the U.S. defense industrial base, focusing on new weapons for Ukraine, Israel and Taiwan, as well as replenishing U.S. stocks and adding $2.44 billion to cover the latest military actions in and around the Red Sea against Iran-backed militants.

Major coalition asks for CMMC proposed rule 60-day extension amid notable increase in stakeholder feedback requests from agencies

A coalition representing major defense associations and government contractors is asking the Defense Department to extend the comment period for a proposed rule to implement the Pentagon's cyber certification program, in a new letter highlighting three public comment periods for cyber rulemakings that closed last week.

DOE releases guide to help maturity model stakeholders understand Pentagon's CMMC program

The Energy Department has published a guide comparing its voluntary maturity model for developing cybersecurity plans to the Pentagon's upcoming program for defense contractors who are handling sensitive government data on nonfederal systems.

CMMC accreditation body plans to release updated draft assessment process guide for comment

The accreditation body behind the Pentagon's Cybersecurity Maturity Model Certification program plans to release a new draft of its assessment process guide, known as "the CAP," for public comment before the Defense Department completes its rulemaking efforts to finalize the program, according to CEO Matthew Travis.

DPAI awards $192.5 million to increase domestic critical chemicals production

The Defense Department has awarded seven companies contracts totaling $192.5 million in efforts to generate critical chemicals domestic manufacturing capabilities.

Upcoming DIU summit aims to scale commercial tech for INDOPACOM

A senior Defense Innovation Unit official said an upcoming industry summit will be an opportunity to focus on scaling commercial technologies for use by the Defense Department, specifically focusing on U.S. Indo-Pacific Command.

DOD releases new list of 'Chinese military companies' connected to U.S.

The Defense Department has released an updated list of "Chinese military companies" operating directly or indirectly in the United States.

What's happening

The week ahead

Senior defense officials are scheduled to speak at several events this week, including the acquisition chiefs of two military services.

For Inside Defense subscribers

Bush suggests maintaining larger ammo stockpiles could be helpful during largescale conflicts

Ukraine's war with Russia has shown how the U.S. defense industrial base would benefit from maintaining larger stockpiles of ammunition during instances of largescale conflicts, Army acquisition chief Doug Bush suggested Monday.

Rep. Waltz: U.S. must focus on shipbuilding to contend with China's naval 'overmatch'

A decline in American shipbuilding coupled with China's rise as a maritime powerhouse could soon become a crisis for United States security and economics, according to Rep. Michael Waltz (R-FL), who is leading a growing group of lawmakers calling for more aggressive action to bolster U.S. industry.