Defense Business Briefing -- May 1, 2018

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

This week's top story

Draft guidance could spell trouble for contractors not up to speed on cybersecurity

New draft guidance released by the Defense Department last week lays out how contracting officers can use cybersecurity standards in a procurement action, meaning companies who aren't complying with the security controls could soon be deemed too risky for DOD work.

News & Notes

Raytheon reports higher quarterly sales

Raytheon reported quarterly net sales of $6.3 billion, up 4.5 percent compared to $6 billion in the same quarter the previous year.

Boeing, Northrop Grumman, General Dynamics bullish on rest of 2018

Three of the top five defense contractors each reported higher revenues in the first quarter of 2018, and were bullish over their prospects for the rest of the year.

Oshkosh CEO still bullish over international vehicle sales

Despite the absence of international Mine Resistant Ambush Protected-All Terrain Vehicle sales the previous quarter, Oshkosh's chief executive still has a positive outlook regarding international demand for the company's vehicles.

Lockheed wins $1.4B F-35 logistics services contract

The Pentagon has awarded Lockheed Martin a roughly $1.4 billion cost-plus-incentive-fee contract for F-35 Joint Strike Fighter logistics services.

Mattis wants to keep pressure on Lockheed over F-35 costs

Defense Secretary Jim Mattis has told Congress that Lockheed Martin, the prime contractor for the F-35 Joint Strike Fighter program, is failing to live up to the Pentagon's expectations.

Lockheed exec: Surge in missile demand 'not an aberration'

The 8 percent increase in Lockheed Martin's missile sales during the first quarter of 2018 compared to the same quarter the previous year is "not an aberration," according to a senior company executive.

KBR buys Stinger Ghaffarian Technologies

Government services contractor KBR said this week it has completed the acquisition of Stinger Ghaffarian Technologies.

DOD acquisition chief says companies should design systems with 'exportability' in mind

The Pentagon's acquisition and sustainment chief says the U.S. government is going to step up its advocacy of defense exports under a new conventional arms transfer policy, but she believes companies can do more by designing their systems with "exportability" up front.

Defense Leadership Forum to hold 'Navy contracting summit' in May

The Defense Leadership Forum will hold its annual "Navy Contracting Summit" in Norfolk, VA next month.

AIA makes industrial base recommendations

The Aerospace Industries Association says Congress should repeal statutory budget caps and the Pentagon should embrace a streamlined acquisition system if they are to maintain a healthy defense industrial base.

General Dynamics CEO: Bath Iron Works keeps learning from every ship it builds

With detail design work for Flight III of the Arleigh Burke-class destroyers recently completed, General Dynamics' Bath Iron Works keeps learning from every ship it builds, according to GD's chief executive.

Appointments & Promotions

SAIC gets new VP for IT solutions market segment

Science Applications International Corp. recently announced John Walsh has been recruited to be the company's new Information Technology Solutions Market Segment senior vice president and general manager.

ULA names new COO

United Launch Alliance has named aerospace industry executive John Elbon as its next chief operating officer.

AIA brings on new communications VP

The Aerospace Industries Association has hired Edelman executive Caitlin Hayden as its vice president of communications.

What's happening

The week ahead

The week ahead features appearances from senior Pentagon officials at several think tank and military association events around Washington.

For Inside Defense subscribers

Navarro touts new arms transfer policy as a way to reduce trade reliance on China

Peter Navarro, director of the White House Office of Trade and Manufacturing Policy, said on Tuesday that the administration’s new conventional arms policy is a way for the U.S. To boost exports to markets dominated by countries like China and Russia.

DOD acquisition policy chief pushes to cut procurement time lines

The official charged with setting defense acquisition policies is pushing Congress to streamline requirements that result in lengthy haggling over cost and pricing data so the Defense Department can drastically reduce the time it takes to buy equipment.

Jette calls for shift in contracting practices, discretion with OTAs, reduction in UCAs

Congress has provided the services greater flexibility in contracting, but it is incumbent upon the Army to utilize that flexibility responsibly, according to the assistant secretary of the Army for acquisition, logistics and technology.

Textron's SSC begins on-water testing, preparing for builder's trials

Textron Marine Systems began on-water testing for the ship-to-shore connector earlier this month and is preparing for builder's trials at the end of this month, according to a company official.