Defense Business Briefing -- March 12, 2024

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

This week's top story

Del Toro: U.S. shipbuilding stands to benefit from foreign investment

The United States shipbuilding industry could benefit from foreign investment, Navy Secretary Carlos Del Toro said today, indicating a "cash infusion" from an international shipbuilder could boost production capacity, drive down prices and inject competition into the domestic market.

News & notes

DOD announces new 'strategic capital' investment strategy

The Defense Department's fledgling Office of Strategic Capital has released its first investment strategy intended to "catalyze" private investment in technology industries deemed critical to national security.

Raven: FY-25 budget's investment strategy will get Navy to two Virginia submarines per year by FY-28

A proposed multibillion-dollar spending plan for the submarine industrial base within the Navy’s fiscal year 2025 budget request, combined with a pending supplemental spending package, are expected to improve Virginia-class submarine production to a rate of two vessels per year by FY-28, according to senior Navy officials.

Pentagon issues final rule to expand defense industrial base cyber program eligibility

The Defense Department has finalized a rulemaking to expand eligibility requirements for its defense industrial base information sharing program.

American Gas Association urges DOD to consider potential regulatory overlap with CMMC program and other cyber policies

The American Gas Association is asking the Defense Department to consider potential avenues where contractors and subcontractors can use cyber policies at other agencies to fulfill requirements under the Cybersecurity Maturity Model Certification program.

Tech group encourages Pentagon to expand CMMC program beyond DOD when finalized

The Information Technology Industry Council sees an opportunity for the Pentagon's Cybersecurity Maturity Model Certification program to become a standard across the federal government, according to a filing from the trade association on the first CMMC proposed rule.

PSC seeks information from DOD on CMMC program costs, implementation needs

The Professional Services Council is calling for the Defense Department to do further analysis on potential costs for contractors and their suppliers to comply with the Cybersecurity Maturity Model Certification program before finalizing proposed regulations.

What's happening

The week ahead

The White House is scheduled to submit the fiscal year 2025 defense budget request to Congress this week. Senior defense officials will also testify on Capitol Hill.

For Inside Defense subscribers

Senior DOD officials say 'out-year' growth needed to get 'back on track'

Deputy Defense Secretary Kathleen Hicks said today that the Pentagon's plan for fiscal year 2025 has found a "smart, responsible" way to absorb billions in cuts stemming from a two-year congressional deal but stressed that growth will be needed in the coming years to counter Chinese military modernization.

Army implementing modern software development practices across the force with new policy

The Army is instituting a new policy that will ensure modern software development practices are used across the service, with the goal of cutting through red tape. The service will use approaches such as agile and lean practices to develop software quickly and iteratively in a way that allows it to be refined as needed in response to changing needs on the battlefield.