The Insider

By John Liang
March 18, 2024 at 2:18 PM

This Monday INSIDER Daily Digest has news on the possibility of lawmakers breaking the budget caps set by a two-year spending deal, plus coverage from the SATELLITE 2024 Conference and more.

The Senate Armed Services Committee's top Democrat is open to breaking a GOP-championed spending cap if it means getting more money for Ukraine and other needs:

Reed says he's open to revisiting budget caps if Ukraine supp fails in House

Senate Armed Services Committee Chairman Jack Reed (D-RI) said today that he would be open to possibly breaking the budget caps set by a two-year spending deal if House Republicans fail to pass a supplemental spending package to aid Ukraine and replenish U.S. weapons that have been transferred there.

The head of the Space Development Agency spoke this morning at the annual SATELLITE Conference:

Tournear: Planning for failure to deorbit could save SDA money

The Space Development Agency isn't interested in on-orbit refueling for its satellites, but it could drive down costs if it plans to contract with deorbiting services to mitigate risks on satellites at the end of their service lives, according to SDA Director Derek Tournear.

Army Maj. Gen. Mark Bennett, the service's budget director, spoke this morning during an Associated of the United States Army breakfast:

Army official: In the absence of supplemental, reprogramming 'an option' for ammo buys

The Army would be willing to consider a reprogramming request to help replenish its critical munitions stockpile in the event Congress doesn't pass the $95 billion supplemental spending package that's currently stalled, according to a service official.

Maj. Gen. Michael Greiner, deputy assistant secretary for the Air Force's budget, spoke last week about munitions spending:

Air Force official: Planned munitions spending in FY-25 will 'probably change'

Lawmakers have yet to agree on a fiscal year 2024 appropriations bill, threatening to undo a significant amount of the Air Force's planned multiyear missile procurement for FY-25, according to a top service official.

The Missile Defense Agency's fiscal year 2025 budget request seeks $218 million and proposes a $694 million reduction between FY-25 and FY-28 for the Glide Phase Interceptor project compared to the same period in the Pentagon’s FY-24 budget proposal:

MDA to pick GPI winner soon; leverage investment from Japan in planned co-development

The Pentagon is sharpening its plan for a clean-sheet hypersonic defense weapon system, revealing decisions to soon pick a winner in a Raytheon-versus-Northrop Grumman contest, trimming near-term funding by nearly $700 million that is expected to be offset by co-development investments from Japan and delaying fielding by a year to 2035.

By Tony Bertuca
March 18, 2024 at 5:00 AM

Senior defense officials are scheduled to speak at several congressional committee hearings this week. Meanwhile, Congress has until midnight Friday to avert a partial government shutdown.

Monday

Senior officials from the Space Force and National Reconnaissance Office speak at the Satellite 2024 Conference & Exhibition, which runs through Thursday.

The Association of the United States Army hosts senior service officials for a discussion on the budget.

Tuesday

The Atlantic Council hosts a discussion with Gen. Laura Richardson, chief of U.S. Southern Command.

DefenseOne hosts a discussion on the state of the Marine Corps.

Wednesday

The House Armed Services Committee holds a hearing on U.S. Indo-Pacific Command.

The House Armed Services intelligence and special operations subcommittee holds a hearing on U.S. Special Operations Command.

The Senate Armed Services Committee holds a hearing with the Planning, Programming, Budgeting and Execution Reform Commission.

The Ronald Reagan Presidential Foundation and Institutes hosts its National Security Innovation Base Summit.

The Center for Strategic and International Studies hosts a discussion on U.S. defense industrial cooperation with Japan.

AFCEA Northern Virginia hosts its Space Force IT Day conference.

Thursday

The House Armed Services Committee holds a hearing on the Middle East and Africa.

The House Armed Services strategic forces subcommittee holds a hearing on U.S. strategic force posture.

DefenseOne hosts a discussion on the state of the Army.

Friday

The House Armed Services cyber, information technology and innovation subcommittee holds a hearing on artificial intelligence.

Part of the federal government, including the Defense Department, will experience a lapse in appropriations if Congress does not send a funding bill to be signed into law by President Biden before midnight.

By John Liang
March 15, 2024 at 1:25 PM

This Friday INSIDER Daily Digest has news on funding for the Marine Corps' CH-53K heavy-lift helicopter program, the Chief Digital and Artificial Intelligence Office's large language model maturity model effort and more.

The Navy's FY-25 budget request aims to purchase up to 321 engines from FY-25 to FY-29 for the King Stallion heavy-lift helicopter program:

Navy looks to enter five-year block buy for CH-53K engines

The Navy's fiscal year 2025 budget request looks to enter into a multiyear procurement contract for CH-53K helicopter engines in a five-year deal expected to save approximately $125 million, according to budget documents.

Large language model maturity models, which are trained artificial intelligence systems that use algorithms to analyze data sets and create responses based on their intended design, can transform industries:

CDAO's LLM maturity model will be ready for evaluation next month

The Chief Digital and Artificial Intelligence Office intends to release its large language model maturity model, which aims to help industry and the Defense Department determine what LLMs are truly capable of and if they can achieve their intended purposes, for evaluation within the next month.

Just over $910 million is being requested for fiscal year 2025 to fund Strategic Capabilities Office programs specifically aimed at the Pacific Deterrence Initiative, a $9.9 billion pot of regionally focused money that covers everything from missile defense to installation construction to rapid prototyping:

DOD's classified tech office eyes Pacific theater weapons gaps

The Pentagon's secretive Strategic Capabilities Office wants to spend about $1 billion managing 20 classified prototyping programs focused on developing new weapons technology to aid U.S. Indo-Pacific Command in its mission to counter China's increasingly modernized military, according to recently released budget documents.

Document: DOD's FY-25 Pacific Deterrence Initiative budget justification book

The Space Warfighting Analysis Center determined there are gaps in protected SATCOM capabilities, leading to more funding in the Space Force's FY-25 budget request:

Space Force seeking $248 million for assured SATCOM new start

The Space Force is requesting $248 million for an assured satellite communications new start Protected Tactical SATCOM-Global, which the service calls a "key and enabling capability" of its force design, according to fiscal year 2025 budget request documents released this week.

Our colleagues at Inside Cybersecurity have the latest on industry's responses to the Pentagon's new Cybersecurity Maturity Model Certification program rule:

Wireless group seeks clarity on CMMC exemption for telecom providers, role of harmonization to address other agency requirements

Wireless group CTIA supports the Defense Department's decision to create an exemption for telecommunications providers under the Cybersecurity Maturity Model Certification program, while asking for more guidance on the trigger for applicability in the response to a proposed rule on implementation.

By John Liang
March 14, 2024 at 2:04 PM

This Thursday INSIDER Daily Digest has news on the Air Force's KC-46A aerial refueling tanker program, plus cruise missile defense and more.

The KC-46A Pegasus' Remote Vision System 2.0 is experiencing some "schedule pressure":

KC-46A RVS 2.0 awaits FAA certification, 'likely' delayed until 2026

The KC-46A Pegasus' Remote Vision System 2.0 will "likely" arrive in 2026, slipping past its proposed arrival date of October 2025, Air Force acquisition head Andrew Hunter told lawmakers Tuesday.

Defense Secretary Lloyd Austin approved a new homeland cruise missile defense policy on Sept. 14, a previously unreported development, completing a tasking set by the 2022 National Defense Strategy to update the policy:

DOD sets new domestic air defense policy as NORAD braces for Chinese military patrols

The U.S. military has adopted new policy guidance for air and cruise missile defense of the homeland just as North American Aerospace and Defense Command top brass are bracing for Chinese military aircraft this year for the first time to penetrate NORAD's air defense identification zone.

The Army also has cruise missile defense plans:

Army launching new effort to develop defensive system for cruise missiles, UAVs

The Army plans to fund a new effort to develop a cannon using a hypervelocity projectile designed to counter, in part, cruise missiles and drones, according to fiscal year 2025 budget documents released Monday.

In June 2023, Navy Secretary Carlos Del Toro approved a new acquisition plan for MQ-25, one that delayed milestone C production certification to the third quarter of 2025 and included reprogramming money from aircraft procurement to research, development, test and evaluation in fiscal years 2023 and 2024:

With MQ-25 reprogramming approved, Navy awaits Congress' budget maneuvers

Funding to resolve the Navy's MQ-25 Stingray uncrewed aircraft system's obsolescence issues may be available soon now that Congress has approved a service reprogramming request, the Navy announced Monday.

The Army intends to buy 230 Precision Strike Missiles in FY-25, 296 in FY-26, 268 in FY-28 and 234 in FY-29, according to budget justification documents that were released Monday:

Army increasing PrSM purchase in FY-25

The Army plans to accelerate its purchase of the Precision Strike Missile (PrSM) for fiscal year 2025 as well as in future years -- a move service officials say reflects an urgent need for the weapon.

The Air Force is now targeting the second quarter of 2028 for initial operational capability, instead of 2027:

T-7 milestone C projection slips another four months; now fielded by 2028

The Air Force is pushing the milestone C decision for the T-7 Red Hawk training jet back by four months, from February to May 2025, according to justification documents attached to the fiscal year 2025 budget request.

Last but by no means least, our colleagues at Inside Cybersecurity have the latest on the Pentagon's Cybersecurity Maturity Model Certification program:

Small business advocacy office identifies areas for more guidance in CMMC proposed rulemaking

The Office of Advocacy at the Small Business Administration has outlined four areas of concern in the Pentagon's proposed rule to implement the Cybersecurity Maturity Model Certification program.

By Georgina DiNardo
March 14, 2024 at 11:54 AM

Defense Secretary Lloyd Austin announced today that Radha Plumb will take up the role of chief digital and artificial intelligence officer, assuming duties on April 8.

Plumb, currently the defense deputy under secretary for acquisition and sustainment, has previously worked on Defense Department acquisition projects, like strengthening a national security industrial base and bolstering supply chains.

“There is no doubt that Dr. Plumb's technical expertise and strategic acumen will enhance the CDAO's innovative efforts, and help accelerate the DOD's adoption of data, analytics, and AI to generate decision advantage from the boardroom to the battlefield,” Austin said in a statement about the appointment.

Craig Martell, the current chief digital and AI officer, will be stepping down from the position. Martell was the inaugural CDAO, holding the position since April 2022 when CDAO first appointed someone to lead their mission in modernizing DOD to innovative changes amid an evolving technology environment.

“Craig and the entire CDAO team had a monumental task of bringing together the diverse talents and cultures of four organizations to advance data, AI and analytics for our national security, and deliver tangible results in a short time,” Austin wrote. “Dr. Martell and the CDAO team have delivered on those goals and his work will have a lasting impact on how the Department approaches every data and AI driven task.”

Austin did not provide a reason for Martell’s leaving.

By Shelley K. Mesch
March 13, 2024 at 3:49 PM

The Air Force awarded BlackSky Geospatial Solutions up to $23.7 million for work on Global Moving Target Engagement -- one of service Secretary Frank Kendall's seven Operational Imperatives -- according to a Defense Department notice.

BlackSky, a space-based intelligence firm that provides on-demand imagery, analytics and monitoring, will perform research and development around Ground Moving Target Engagement, with work expected to be complete by June 15, 2028. The service awarded BlackSky $3.5 million at the time the contract was signed.

“BlackSky’s software-first, AI approach will add depth and scale to commercial space-based moving target detection, tracking and identification at machine speed,” said Brian E. O’Toole, BlackSky CEO, in a news release today.

“Achieving moving target engagement at scale in a challenging operational environment” is the fourth imperative on Kendall’s list of priorities to maintain advantage over the pacing challenge, which is China.

Under the contract, BlackSky will use its Spectra tasking and analytics platform to apply machine learning techniques to tasking, multi-intelligence collection, direct downlink and tipping and cueing.

The system “has been optimized to perform in resource-limited environments and will demonstrate the ability to fuse information in a hybrid setting from multiple government ISR and commercial data sources,” O’Toole said.

By Shelley K. Mesch
March 13, 2024 at 1:51 PM

The Air Force plans to cut in half its purchase of MH-139A Grey Wolf helicopters as a way to meet budget caps for its fiscal year 2025 request.

In previous budget requests, the service specified it would procure 74 Grey Wolves to replace the UH-1N Huey helos that have “significant capability gaps.” That buy would now be reduced to 36, according to justification documents released with the budget request Monday.

The cut is primarily a result of the Fiscal Responsibility Act, that limits overall defense spending to $895 billion for FY-25, Air Force acquisition chief Andrew Hunter told reporters yesterday.

“It’s about the overall budget of the Air Force,” he said, “and what we’re able to afford and what we’re not able to afford.”

The service will place all the helicopters it’s buying at U.S. Global Strike Command nuclear sites, Hunter said. Other locations that would have received the new helicopters will now do without.

The Grey Wolves, made by Boeing and Leonardo, will primarily patrol nuclear silos. The program entered low-rate initial production a year ago after the companies and Air Force came to an agreement on the technical data package to support long-term organic sustainment.

By John Liang
March 13, 2024 at 1:34 PM

This Wednesday INSIDER Daily Digest has news on the F-35 Joint Strike Fighter program, plus missile defense funding and more.

The F-35 Joint Strike Fighter has, at long last, reached an important milestone:

F-35 reaches full-rate production benchmark

The F-35 Lightning II Joint Strike Fighter today received approval to enter milestone C, or full-rate production, marking a final step for what has become one of the Defense Department's most cost-intensive and delayed programs.

Missile defense funding news:

NGI funding slashed in FY-25; announcement on early downselect appears imminent

The Defense Department is poised for a major announcement on the Next Generation Interceptor competition -- likely picking a winner in the two-way race between Lockheed Martin and Northrop Grumman much earlier than planned -- in the wake of a steep funding cut to the project in the Pentagon's fiscal year 2025 budget request.

MDA seeks $465M for new Guam command center, initial radar and launcher site

The Missile Defense Agency wants to build on Guam a new facility to house a state-of-the-art command center the size of New York's Guggenheim Museum to control a new 360-degree enhanced integrated air and missile defense to shield the U.S. territory from Chinese cruise, ballistic and hypersonic missile threats.

Document: MDA's FY-25 budget overview, justification books

The Space Force's top uniformed officer made some news this week:

Space Force seeks to fund on-orbit refueling, servicing research

The Space Force is planning to begin funding on-orbit servicing to increase the potential life and maneuverability of military satellites, according to Chief of Space Operations Gen. Chance Saltzman.

Delivery of the Navy's next-generation frigate has been delayed:

Navy budget reflects delays in Constellation-class frigate program

The lead ship in the Constellation-class frigate program, FFG-62, is now expected to deliver in December 2027, according to the Navy's fiscal year 2025 budget documents, a 15-month delay compared to the September 2026 date listed in the prior year's budget.

Ukraine will be getting more U.S. military aid soon:

DOD preps $300M aid package for Ukraine; warns of $10B deficit in replenishment funds

The Defense Department, tapping savings from several Army contracts covering ammunition and the Joint Light Tactical Vehicle, is preparing to make a $300 million weapons transfer to Ukraine even as Congress remains stalled over a proposed supplemental appropriation needed to replenish U.S. stocks.

The Air Force's fiscal year 2026 budget -- which the service is working on now -- is expected to include any costs associated with the new Reoptimization for Great Power Competition strategy:

Air Force predicts 'continued decline' in future year budget requests

While the fiscal year 2025 budget request includes what Air Force Secretary Frank Kendall called "tough decisions" to balance procurement and research, development, test and evaluation funds, the service's real budgetary challenges will come in future years.

Cybersecurity news:

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.

By Georgina DiNardo
March 13, 2024 at 12:49 PM

The Defense Innovation Unit, in partnership with the Air Force Research Laboratory and NavalX, opened a new Joint Defense Innovation workspace in Austin, TX last week intended to further relationships with technology companies and lower barriers between government and industry collaboration.

“Catalyzing the [Defense Department's] innovation entities into a community of impact provides an opportunity for greater synergy and impact, from the local to a national level,” DIU Director Doug Beck said in a statement.

“I’m thrilled by the teamwork and partnership represented by this step in building our presence together here in Austin,” he said.

The workspace, launched March 8, aims to act as the “front door to DOD” for the innovation community, allowing fresh talent and ideas to integrate into national security objectives, according to DIU.

"This new space is a testament to the strong collaboration happening across the DOD's innovation organizations," said Col. Elliott Leigh, director of AFWERX and Air Force chief commercialization officer.

The space was unveiled in a ribbon-cutting ceremony at Austin’s South by Southwest 2024 conference and festival.

Capt. Casey Plew, director of NavalX, said Austin was picked for the new space due to its “strategically important innovation ecosystem,” that specifically allows for innovative solutions to Navy and Marine Corps issues.

The workspace is situated at the Capital Factory, which is near government innovation centers like the Army Applications Laboratory, according to DIU.

Joshua Baer, founder and CEO of Capital Factory, noted DIU launched the first Austin-based outpost in 2016.

“Since then, we’ve tracked more than $500 million in government funding to Texas startups with dual-use technology,” he said. “This expansion will undoubtedly result in new Government funding to protect our future and fuel our economy.”

By Georgina DiNardo
March 12, 2024 at 3:51 PM

The Defense Department announced today that the Military Intelligence Program's topline budget request for fiscal year 2025 is $28.2 billion.

According to the department, this total request reflects the defense secretary’s “strategic priorities.”

This amount is $1.1 billion less than the $29.3 billion MIP budget sought in FY-24.

The MIP budget includes all projects that aim to aid the defense secretary’s intelligence and counterintelligence goals but the department never provides specifics as it covers classified programs.

The Pentagon said, however, that releasing this topline figure “does not jeopardize any classified activities within the MIP.”

By John Liang
March 12, 2024 at 2:01 PM

This Tuesday INSIDER Daily Digest has continuing coverage of the Pentagon's fiscal year 2025 budget request.

The Pentagon, under the Fiscal Responsibility Act that Congress passed in June to appease GOP hardliners threatening to withhold support for raising the federal debt limit, saw a $10 billion cut to its planned FY-25 topline, the brunt of which was mostly borne by the department’s procurement accounts:

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.

The Replicator initiative, which the Pentagon announced in August, aims to field thousands of "attritable" autonomous weapon systems by February-August 2025 to counter the continued growth of the Chinese military:

Hicks says Replicator slated to be funded at $1B between FY-24 and FY-25

Deputy Defense Secretary Kathleen Hicks announced plans to spend around $1 billion on the Replicator initiative over fiscal years 2024 and 2025 during a budget briefing at the Pentagon.

The Army rolled out its FY-25 budget request Monday, which includes $171.7 million for 155mm ammunition and $228.6 million for research and development:

Army official says ammo production would suffer 'critical delays' without base, supplemental funding combination

The Army's goal of producing 100,000 155mm rounds per month by late fiscal year 2025 would be subject to "critical delays" without full appropriations in both FY-24 and FY-25, as well as the pending FY-24 supplemental, according to Army Under Secretary Gabe Camarillo.

The Navy's FY-25 request also looks to provide the submarine industrial base with a total of $11.1 billion across the future years defense program -- an increase of nearly $9 billion over the Navy’s prior-year budget proposed for the FYDP:

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.

The Army plans to evaluate existing artillery systems instead of pursuing a new self-propelled howitzer and make a decision by fiscal year 2025:

Army to hold industry day for new self-propelled howitzer

The Army will hold an industry day on April 3 for a new self-propelled howitzer after ending development of the Extended Range Cannon Artillery system, Under Secretary Gabe Camarillo announced Monday afternoon as the service unveiled its fiscal year 2025 budget request.

Want to view all the budget documents DOD has released so far? Check out Defense Budget Alert.

By John Liang
March 11, 2024 at 3:36 PM

The bulk of this Monday INSIDER Daily Digest has coverage of the Pentagon's fiscal year 2025 budget request.

We start off with DOD's request for modernization as well as research and development funding:

DOD's modernization investments cut in FY-25 budget request

The Pentagon, which had to absorb a $10 billion cut to its previously projected topline thanks to a two-year congressional budget deal, is cutting its requested modernization investment for fiscal year 2025 -- which includes its procurement and research and development accounts -- by $4.3 billion below what it sought in FY-24.

Pentagon R&D budget cut by almost $2B

The Defense Department is seeking $2 billion less in its research and development account for fiscal year 2025 than what it sought for FY-24, according to a defense budget overview released today.

Document: DOD's FY-25 Budget Overview Book

Document: DOD's FY-25 program acquisition cost by weapon system budget book

. . . followed by the Navy:

Navy proposes modest budget request with limited procurement under FY-25 spending caps

The Navy is seeking $257.6 billion in fiscal year 2025 funding -- a modest 0.7% increase over the previous year's request -- in a budget that sees the service procuring fewer new ships and aircraft than expected and pushing the development of next-generation platforms further into the future in order to prioritize near-term readiness.

Document: Navy's FY-25 budget highlights book

. . . and the Army:

Army aircraft, missile procurement up in FY-25 request

Army aircraft and missile procurement both will see slight bumps in the service’s fiscal year 2025 budget request, unveiled Monday afternoon in Pentagon budget materials.

Document: Army's FY-25 budget overview

. . . as well as the Air and Space Force:

Air Force reveals 'constrained' but 'adequate' FY-25 budget, service leaders say

The Air Force is cutting total procurement of F-15EX Eagle II fighter jets by six, from 104 aircraft to 98, according to the service’s fiscal year 2025 proposed budget.

Space Force budget will shrink to meet congressional spending caps

The Space Force did not request an increase in funding for fiscal year 2025 and instead reduced its budget by 2%, even as Air Force Secretary Frank Kendall said he thinks the service needs to move faster.

Document: Air Force's FY-25 budget overview

. . . plus the Missile Defense Agency:

MDA seeking $10.4 billion in FY-25; project that aims to counter North Korea clipped

The Missile Defense Agency is seeking $10.4 billion in fiscal year 2025, a nearly 8% reduction compared to the $11.3 billion the Biden administration planned before House GOP fiscal hawks last year demanded reduced federal spending, with the program to defend against North Korean nuclear missiles taking a $300 million cut.

By Tony Bertuca
March 11, 2024 at 5:00 AM

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.

Monday

The Pentagon is slated to roll out its fiscal year 2025 budget request. Watch Inside Defense for coverage throughout the day.

The Center for Strategic and International Studies hosts a discussion on the AUKUS agreement featuring Army Chief of Staff Gen. Randy George.

Tuesday

The House Armed Services Committee holds a hearing on national security challenges in North and South America.

The House Armed Services strategic forces subcommittee holds a hearing on U.S. and adversary hypersonic capabilities.

The House Armed Services seapower and projection forces subcommittee holds a hearing on the Air Force budget.

The Senate Armed Services Committee holds a hearing on global security challenges and U.S. strategy.

Wednesday

The House Armed Services cyber, information technologies and innovation subcommittee holds a hearing on rapid software innovation.

The Brookings Institution hosts a discussion on nuclear deterrence.

The Association of the United States Army hosts a discussion with the chief of Army Material Command.

By Tony Bertuca
March 8, 2024 at 4:14 PM

The Defense Department has established a new “warfighter senior integration group” to focus on the “urgent and growing threat posed by uncrewed weapon systems,” according to chief Pentagon spokesman Brig. Gen. Pat Ryder.

Ryder told reporters at a press briefing today that the new group will “bring together the department’s senior-most leaders to drive solutions that support our warfighters throughout our combatant commands.”

Establishing the group, Ryder said, will focus the “cross-department attention and speed the threat now demands.” The SIG, he said, intends to “identify needed capabilities and associated solution” to focus on near-term threats posed by drones.

The Pentagon intends to provide additional details about the group’s work in the coming months.

Pentagon acquisition chief Bill LaPlante said Thursday that he predicts a massive surge in counter-drone investments in the coming years, noting that he wants to move about half of the department's approximately 40 counter-drone prototypes into production as soon as possible.

By Vanessa Montalbano
March 8, 2024 at 11:54 AM

Delays in getting the F-35 Joint Strike Fighter reconfigured with Block 4 and Technology Refresh 3 upgrades are inhibiting the Air Force’s ability to “stay competitive,” Air Force Secretary Frank Kendall told reporters yesterday at the annual Washington conference hosted by McAleese and Associates.

“We really need those to stay competitive and we’re going to need them at quantity,” he said. “It’s hurting already.”

Deliveries of TR-3 enabled aircraft were originally scheduled to start in April 2023, but that date has since slipped twice. The Defense Department last year paused acquisition of Lot 15 jets until Lockheed Martin can produce F-35s fully integrated with TR-3, which is needed to support modernized capabilities brought on by Block 4 - - including new sensors and munitions.

Since then, the plane maker has been holding incomplete F-35s in its facilities.

“As we delay acceptance it affects costs in the units that we had expected to replace airplanes,” Kendall said. “We’ve got to carry existing aircraft, generally speaking, for longer than we had planned.”

Plus, the “operational capability impact is significant,” he added.

Asked whether he would consider accepting incomplete versions of the fifth-generation fighter jet, Kendall said he wants “to hold industry responsible for delivering what they promised.”

“My bias, if there is one, is to not accept products that are not what we’ve been promised, but there’s an operational argument that we made that, you know, a better capability as opposed to the current capabilities is a preferred outcome,” he explained.

In January, Lockheed CEO Jim Taiclet told shareholders that the company is anticipating deliveries to start back up in the second quarter of the calendar year, between April and June, or even into the third quarter.