The Insider

By Thomas Duffy
November 13, 2025 at 2:17 PM

We begin this Thursday INSIDER Daily Digest with the government re-opening, the Army stands up a new directorate, defense industry newcomers like Secretary Pete Hegseth’s acquisition reform moves, and news from the world of vertical takeoff aviation.

The Navy’s No. 1 program is left out of the recently passed funding bill:

Shutdown-ending CR funds shipbuilding but omits Columbia

A stopgap spending measure that will fund the federal government through Jan. 30 contains about $1.1 billion in cost to complete funding for Navy shipbuilding accounts but lacks previously requested support for the service’s top-priority Columbia-class submarine program.

The Army is trying to get technology to its soldiers much faster:

Army pushing acquisition to the front lines with new Global Tactical Edge directorate

The Army is creating a new Global Tactical Edge Acquisition Directorate to accelerate how battlefield technology reaches soldiers, part of a broader push to shorten the cycle between innovation and large-scale procurement and a major overhaul of the service’s acquisition enterprise unveiled today.

Defense industry newbies are bullish on DOD’s defense acquisition transformation:

New defense entrants see promise in Hegseth’s ‘acquisition transformation’ plan

Startups and scaleups in the defense industry are saying Defense Secretary Pete Hegseth’s plan to “transform” the defense acquisition ecosystem signals the Pentagon is ready to act like a rational buyer and open the market to new industrial base players.

A new electric vertical takeoff aircraft has taken flight:

Joby logs first flight of hybrid VTOL aircraft

Joby Aviation flew its autonomous hybrid electric vertical takeoff and landing demonstrator for the first time last week, the company announced today, completing the feat roughly three months after it initially revealed the aircraft’s concept.

By Vanessa Montalbano
November 13, 2025 at 11:15 AM

Joby Aviation flew its autonomous hybrid electric vertical takeoff and landing demonstrator for the first time last week, the company announced today, completing the feat roughly three months after it initially revealed the aircraft’s concept.

The unmanned platform will be produced by Joby primarily for commercial applications, but a militarized version -- equipped for contested logistics, teaming operations with manned aircraft and low-altitude support -- will also be available through an agreement with L3Harris. The two firms are planning to begin government mission flight demonstrations using the hybrid VTOL aircraft in 2026, Joby said in a news release.

“It’s imperative that we find ways to deliver new technology into the hands of American troops more quickly and cost-efficiently than we have in the past,” JoeBen Bevirt, Joby founder and CEO, said in a statement. “Our vertical integration puts us in a unique position to deliver on this goal, moving from concept to demonstration -- and from demonstration to deployment -- at a pace that is unprecedented in today’s aerospace and defense industry.”

The demonstrator first flew on Nov. 7 at Joby’s Marina, CA facility using the company’s autonomy stack, dubbed SuperPilot. It also integrates a gas turbine powertrain into Joby’s all-electric air taxi platform. These add-on capabilities allow the demonstrator aircraft to fly with a greater range and payload capacity, Joby said in the news release.

Joby previously collaborated with the Air Force via the AFWERX Agility Prime program on its fully electric vertical takeoff and landing aircraft for autonomous cargo missions. Most recently, Joby in July participated in the Air Force’s large-scale REFORPAC exercise in the Indo-Pacific, logging more than 7,000 miles of unmanned missions across over 40 flight hours, according to the news release.

By Tony Bertuca
November 13, 2025 at 10:01 AM

The longest government shutdown in U.S. history ended last night with the passage of a stopgap continuing resolution that extends federal funding through Jan. 30 and includes carve-out money for the E-7 Wedgetail aircraft and Navy shipbuilding.

The House passed the CR by a vote of 222-209, with six Democrats crossing the aisle in support of the bill and only two Republicans voting against it. The Senate passed the bill on Nov. 10 by a 60-40 vote, with seven Democrats and one independent supporting it and only one Republican opposing it.

President Trump signed the CR into law shortly after the House passed it, bringing the 43-day shutdown to an end.

The measure includes, among many other provisions, new funding for the E-7 Wedgetail aircraft development program and more than $1 billion for Navy shipbuilding with much of the funding -- more than $500 million -- going toward the Virginia-class submarine.

The debate over government spending is far from over, however, as most Democrats opposed the CR because it failed to extend health‑care subsidies under the Affordable Care Act (ACA) and offered no guarantee of relief for low‑income Americans facing insurance premium hikes.

Looking ahead, lawmakers will need to negotiate a comprehensive funding bill -- possibly another yearlong CR -- and Democrats are signaling that future funding talks will hinge on including ACA subsidies, which Republicans have opposed.

By Abby Shepherd
November 13, 2025 at 9:00 AM

The Marine Corps has selected AI company Virtualitics to improve predictive maintenance for its MV-22 Osprey squadron, according to a company announcement today.

Virtualitics will provide its Integrated Readiness Optimization AI application for the Marine Corps’ 2nd Marine Aircraft Wing, which includes Ospreys. The IRO-Mx product can help maintain performance of critical assets and delivers asset risk assessments and operational planning resource analysis, according to the company. By using predictive technology to accelerate maintenance, aircraft availability could be further sustained.

“At Virtualitics, our mission is to empower commanders with AI insights they can trust,” CEO Michael Amori stated. “This partnership with 2D MAW shows how explainable AI solutions are transforming aviation sustainment, helping the Marine Corps maintain fleet readiness, reduce downtime, and strengthen mission success at speed and scale.”

This is not the first time Virtualitics has partnered with the Defense Department. In 2022, Air Force Global Strike Command worked with the company on predictive maintenance for bombers and missile weapon systems.

The integration of predictive maintenance technology for the MV-22 Osprey squadron comes as the aircraft has experienced a series of crashes in recent years and subsequent groundings. In April, V-22 joint program office manager Col. Robert Hurst said the fleet will have unrestricted flight operations by the end of next year.

“Supporting the Osprey community is an incredible honor,” Virtualitics Chief Revenue Officer Rob Bocek said. “The MV-22 is one of the most versatile and critical utility assets in modern warfare, and helping its crews sustain operational readiness with trusted AI is exactly what our mission is about. By delivering AI to the warfighter, at the edge, where decisions matter most, we’re advancing how the Department of War prepares, responds, and maintains superiority in every domain.”

By Thomas Duffy
November 12, 2025 at 12:32 PM

Today’s INSIDER Daily Digest starts with the Senate providing help to an Air Force aircraft program, the Navy secretary talking shipbuilding, the Army decides who will be responsible for the defense of Guam, and the signing of an industry MOU.

The Senate has identified millions for the Air Force’s early warning aircraft program:

Senate CR orders continued E-7A Wedgetail development

The Senate-passed continuing resolution would order the Air Force to continue the E-7A Wedgetail program with up to $400 million.

The Navy secretary wants to see shipbuilders spend more of their own money:

Phelan looks to inject more competition into shipbuilding

Integrating more competition “into the arena” of shipbuilding is essential, Navy Secretary John Phelan said today, highlighting some of his frustrations with defense primes -- contractors he says should invest more of their own capital in the shipbuilding process.

Who will handle Guam’s defense has been decided:

RCCTO delegates Guam Defense System JPO responsibility to Army PEO missiles & space

The Army’s new Rapid Capabilities and Critical Technologies Office director, Lt. Gen. Frank Lozano, has delegated responsibility for the Guam Defense System Joint Program Office to the Integrated Fires Directorate in the service’s program executive office for missiles and space, according to an Army official.

An MOU has been signed for a new solid rocket motor facility:

Raytheon, Avio to establish SRM facility

RTX’s Raytheon has signed a memorandum of understanding with propulsion technology company Avio to help the later company establish a solid rocket motor production facility within the United States, according to a Monday announcement.

By Dominic Minadeo
November 11, 2025 at 2:48 PM

The Army is surveying vendors interested in refurbishing earlier models of its Multiple Launch Rocket System (MLRS) vehicles to turn them into upgraded M270A2s, according to a recently posted notice.

The service is targeting companies that can recapitalize less capable M270A0 and M270A1 variants into M270A2 MLRS launchers over a six-year period, starting in fiscal year 2027 and ending in FY-32.

The Army wants companies that have the resources and planning to successfully scale “under a performance-based service acquisition contract,” the notice says.

The enhancements include an improved armored cab and common fire control system, as well as an upgraded M993A2 carrier vehicle, according to the Army.

Upgrades to MLRS launcher vehicles first kicked off in 2017 when the Army began recapitalizing 160 obsolete M270A0s to the M270A2 versions; following that, the service put out a requirement to refurbish 184 M270A1s to the M270A2, according to FY-26 budget books.

The service has requested $243.5 million for MLRS modifications in FY-26 which would yield 23 upgraded MLRS launcher vehicles, the budget books say. The Army has an end goal of 344 upgraded launchers.

Lockheed Martin has been in charge of overhauling the M270s in a partnership with Red River Army Depot, TX, according to the company. It is also refurbishing M270s for the United Kingdom and Italy.

“The modernization effort includes both cooperative and foreign military sales partners who are actively upgrading their M270 MLRS launcher capabilities to the M270A2 configuration to achieve operational and production synergy alongside the U.S. Army,” the sources sought notice says.

Companies are asked to reply to questions detailing their previous experience, technical expertise and ability to hit the service’s requirements. Questions sent to the Army were not returned at the time of publication.

Replies to the sources sought notice are due Nov. 20.

By Abby Shepherd
November 11, 2025 at 1:41 PM

The Navy has awarded shipbuilder General Dynamics National Steel and Shipbuilding Co. a $1.7 billion contract for the construction of John Lewis-class fleet replenishment oilers T-AO-215 and T-AO-216, the company announced Monday.

The award is part of a multiship contract for eight ships, TAO-214 through 221, announced in September 2024. This $6.75 billion block-buy contract is expected to save about $491 million compared to single-year contracts, according to Tom Rivers, executive director for amphibious, auxiliary and sealift ships in the Navy’s Program Executive Office for ships.

NASSCO was awarded a contract for the first six ships in the John Lewis-class in 2016, with four ships delivered to the Navy so far. The Navy plans to procure 20 of these ships in total.

"The T-AO program holds significant importance to the men and women of NASSCO and is one we take great pride in -- it’s the longest running Navy production series in NASSCO history," NASSCO President Dave Carver stated. “The timely funding for these two ships will act to stabilize the workforce by sustaining an important backlog and prevent future layoffs. Our entire NASSCO team is honored to continue to support the critical national security mission of the U.S. Navy.”

By Thomas Duffy
November 11, 2025 at 12:12 PM

This midweek INSIDER Daily Digest starts with a look at the Army’s plan to purchase one million drones, the Air Force wants to improve its ability to hit targets deep underground, a Defense Department official came out and talked about DOD’s new acquisition plan, and a new counter-air program is in the works.

The Army really wants to improve how it obtains drones:

Flexible procurement models eyed for Army's push to buy 1 million drones

The Army is preparing to tap a mix of flexible procurement authorities in an effort to generate a "predictable demand signal" and fully leverage the capacity of the U.S. industrial base as it pursues an ambitious plan to buy 1 million drones over the next two to three years, according to a service official.

The Air Force wants to up its bunker-busting game:

Air Force looking into new bunker-buster bomb tailkit

The Air Force is looking to develop a new bunker buster bomb tailkit, according to a recent request for information.

A senior DOD official discussed the department’s new acquisition reform plan:

DOD acquisition shake-up prizes speed, raising questions for defense industry

The Defense Department is overhauling its acquisition system to prioritize speed and transform its relationship with defense contractors, particularly the largest ones. But questions over cost, competition and government leverage are likely to shadow the effort as policies roll out in the coming months.

The Air Force has a new plan to defeat airborne missiles:

Air Force looking to develop Counter-Air Missile Program

The Air Force is looking to build a system to defeat airborne missiles, starting with ground-to-air capabilities that could later expand to air-to-air capabilities, according to a recent notice.

By Shelley K. Mesch
November 11, 2025 at 11:06 AM

The Air Force is looking to develop a new bunker buster bomb tailkit, according to a recent request for information.

The Air Force Life Cycle Management Center is conducting market research to assess technologies for a Large Caliber Penetrator requirement, the notice states. The focus of the information request is to identify potential vendors to mature tailkit designs, development and flight testing.

AFLCMC is requesting white papers that address tailkit guidance, navigation and control; integration; test; and cost and schedule. Respondents can include information for all categories or focus on the tailkit or test parts of the development process.

Responses are due by Dec. 15.

The service in September awarded Applied Research Associates a contract to design and build a prototype for the Next Generation Penetrator bomb.

The service most recently used a bunker buster -- the GBU-57 Massive Ordnance Penetrator -- in the strikes against Iran’s nuclear enrichment facilities in June.

The service is asking for $70.4 million in fiscal year 2026 to modify the MOP's smart fuse and other research, development, test and evaluation efforts for the bomb.

By Shelley K. Mesch
November 10, 2025 at 4:28 PM

The Air Force is looking to build a system to defeat airborne missiles, starting with ground-to-air capabilities that could later expand to air-to-air capabilities, according to a recent notice.

The Counter-Air Missile Program aims to develop and demonstrate “an affordable, open system, modular, and highly producible ground-launched capability,” the request for white papers states. “Ground-launch efforts will serve as a risk reduction effort expediting missile design maturation and evaluation for future affordable air-to-air missile capabilities.”

The program is starting with money from the $150 billion reconciliation package passed over the summer, as the government has “identified a need” for such capabilities as a future part of the Affordable Mass Munitions portfolio.

The CAMP prototype should use systems with high technology readiness levels to be able to complete a first flight test within nine months to demonstrate vehicle ground-launch, range and speed, according to the post.

The Air Force is prioritizing “affordability and producibility” over exquisite capabilities and wants deliveries of 1,000 to 3,500 all-up rounds per year for less than $500,000 each in full-rate production.

The air-to-air system will be part of CAMP’s phase 2, but the Air Force is currently requesting white papers relating to the phase 1 ground-to-air system. Submissions are due Dec. 2.

By John Liang
November 10, 2025 at 1:08 PM

This Monday INSIDER Daily Digest has news on a major defense acquisition reform initiative announced late last week, plus an Army next-generation network prototype system and more.

Defense Secretary Pete Hegseth late last week announced a major acquisition reform initiative:

Hegseth warns defense companies to get on board with major acquisition transformation

Defense Secretary Pete Hegseth, in an address at the National War College that directed an ambitious overhaul of the Pentagon's infamously bureaucratic acquisition system, told senior executives from the world's largest defense companies that they will "fade away" if they do not move faster, deliver at greater scale and "assume risk."

Document: DOD's acquisition transformation strategy

Document: DOD memo on joint requirements reform

Document: DOD memo on arms transfer and security cooperation enterprise

The Ivy Sting event series is designed to progressively add elements and test out the Army’s Next Generation Command and Control prototype:

Ivy Sting series grows NGC2 complexity

As the 4th Infantry Division gears its next-generation network prototype toward validation testing at Project Convergence Capstone 6 next summer, it's quickly turning up the complexity through the Army's Ivy Sting event series, senior leaders told reporters last week.

The new Theater Information Advantage Detachment (TIAD), based at Ft. Shafter, HI, folds civil affairs, cyber, electronic warfare, information operations, intelligence, psychological operations and public affairs into a single 65-soldier team:

Army looks to dominate Pacific information space with first-of-its kind detachment

The Army today turned on its first-ever detachment dedicated to shaping the narrative in the Indo-Pacific region.

The latest cyber defense news from our colleagues at Inside Cybersecurity:

National Defense ISAC publishes guide on using virtual desktops to support reaching compliance with CMMC requirements

The National Defense Information Sharing and Analysis Center has released a guide to help contractors meet requirements for the Pentagon’s Cybersecurity Maturity Model Certification program by using virtual desktop infrastructure.

Former cyber officials highlight evolving challenges at CISA, ongoing policy discussions in new essay collection

A project focused on security and tech policy has released a six-volume essay collection reviewing the current state of play at the Cybersecurity and Infrastructure Security Agency and its future, with sections from former CISA officials Jeff Greene and David Mussington and other cyber luminaries.

By Theresa Maher
November 10, 2025 at 11:24 AM

The Defense Innovation Unit is looking for responsive manufacturing technology prototypes that can churn out dual-use space systems on demand at commercial scale, citing an existing domestic space supply chain likely incapable of meeting wartime demand.

That technology should use adaptive production methods including but not limited to AI, 3D printing, software-defined manufacturing, automated molding, computer numerical control and design for manufacturing to yield hundreds of systems per month or thousands per year, DIU said in a commercial solutions opening published last week.

The CSO calls for companies across several roles to apply:

  • Defense contractors with experience successfully executing Defense Department contracts for system-level production units.
  • Companies with experience in scaling design-to-production output, such as smart factories and agile supply chains.
  • Entities that have developed “disruptive technologies” or manufacturing capabilities -- like robotics or AI algorithms -- supporting economies of scale.

DIU said it will form teams among the companies down-selected to best meet its goal to create a resilient, responsive domestic space supply chain capable of on-demand production at scale.

Submissions are due by Nov. 21, the CSO states.

Companies must have an established production capability to meet the hundreds-per-month or thousands-per-year production rates, collaborate digitally through all prototype phases and be able to source components rapidly.

Ideal solutions should be designed for autonomous operation, cost-effective at scale and commercially viable independent of the DIU solicitation’s use case.

Companies awarded with a prototype Other Transaction (OT) agreement from the solicitation may also receive a direct award for a follow-on production contract. That follow-on could be larger than the OT agreement and may be subject to use by multiple DOD components, DIU said.

By John Liang
November 7, 2025 at 1:31 PM

This Friday INSIDER Daily Digest has news on Army manned and unmanned rotorcraft drive systems, lawmakers working on the defense policy bill, the work of the Pentagon cost assessment and program evaluation office and more.

In a broad agency announcement issued this week, the Technology Development Directorate within Army Combat Capabilities Development Command's Aviation and Missile Center announces it is interested in the "development and demonstration of rotorcraft engine and drive system technologies" as part of the Supplemental Power, Efficient Engines and Drives (SPEED) program":

Army BAA calls for R&D into manned and unmanned rotorcraft drive systems

The Army has issued a broad agency announcement for research and development into manned and unmanned drive systems within rotorcraft engines, such as corrosion-resistant gearbox housings, lubrication systems as well as artificial intelligence and machine learning for "drive system prognostics."

Document: Army BAA for R&D into manned and unmanned rotorcraft drive systems

The House Armed Services Committee's top Democrat spoke this week at an Atlantic Council panel:

Smith signals movement on defense bill, highlights focus on acquisition reform

The annual defense authorization bill is moving forward, with House and Senate staff working to reconcile their respective legislation since late August, according to House Armed Services Committee Ranking Member Adam Smith (D-WA).

Michael Payne was on Capitol Hill this week testifying on his nomination to be director of cost assessment and program evaluation:

GOP senators press nominee on cost assessment shop's 'biases' as amphib debate continues

Republicans on the Senate Armed Services Committee today called on President Trump's nominee for director of the Pentagon's cost assessment and program evaluation office to scale back some of CAPE's activities, asserting that it has become focused on advocacy over analysis.

Document: Senate hearing on Payne, Velez-Green, Todd, Dill nominations

The latest cyber defense news from our colleagues at Inside Cybersecurity:

National Defense ISAC publishes guide on using virtual desktops to support reaching compliance with CMMC requirements

The National Defense Information Sharing and Analysis Center has released a guide to help contractors meet requirements for the Pentagon’s Cybersecurity Maturity Model Certification program by using virtual desktop infrastructure.

Former cyber officials highlight evolving challenges at CISA, ongoing policy discussions in new essay collection

A project focused on security and tech policy has released a six-volume essay collection reviewing the current state of play at the Cybersecurity and Infrastructure Security Agency and its future, with sections from former CISA officials Jeff Greene and David Mussington and other cyber luminaries.

By Theresa Maher
November 7, 2025 at 11:17 AM

The Defense Department last night unveiled a new model for how the military builds specialized cyber forces, focusing on a more targeted approach.

When the Pentagon built its initial 133-team cyber mission force in 2018, each military service’s cyber component took a set number of personnel to form teams that would go through standardized training, preparing them to serve as part of U.S. Cyber Command’s “action arm.”

The department said that approach isn’t setting CMF up for success, though.

“While appropriate for other warfighting domains, these traditional models have not met the unique requirements necessary to fight and win in the cyber domain,” DOD said.

A 2019 Government Accountability Office report found that to be the case, as well. GAO concluded Pentagon leaders prioritized building up CMF at the cost of sufficient training and readiness.

The new model -- driven by seven core attributes and three supporting department components -- would integrate CYBERCOM with the military departments to build the cyber force it needs.

“This model fundamentally changes the department’s approach to generating cyber forces, enabling increased lethality in our cyber forces and establishing a warrior ethos built on domain mastery, specialized skills and mission agility,” said Katie Sutton, assistant secretary of defense for cyber policy.

Sutton also said the new model would be well-positioned to help the department achieve its near and long-term goals in the cyber domain.

By John Liang
November 6, 2025 at 1:56 PM

This Thursday INSIDER Daily Digest has news on a Senate hearing to consider the nomination of the next head of the Pentagon's cost assessment and program evaluation office, plus the Air Force's Compass Call aircraft program and more.

Michael Payne, the nominee to head the Pentagon's cost assessment and program evaluation office, was on Capitol Hill this morning:

Sullivan asks CAPE nominee to weigh in on amphib force structure

Sen. Dan Sullivan (R-AK) today asked the Trump administration's nominee for director of cost assessment and program evaluation to examine the Navy and Marine Corps' amphibious warship plans, saying there is daylight between the two services on amphib force structure.

Document: Senate hearing on Payne, Velez-Green, Todd, Dill nominations

The Stimson Center released a new cybersecurity report this week:

Think tank proposes strengthening accountability, international cooperation through cyber deterrence strategy

The United States should expand the range of consequences on threat actors and nation states for cyberattacks and coordinate responses with international allies, according to a recent Stimson Center report.

The Compass Call Mission Crew Simulator has been approved for training and delivered to support interim fielding:

BAE Systems delivers Compass Call mission simulator

BAE Systems has delivered to the Air Force a mission simulator for the EA-37B Compass Call aircraft, the company announced this week.

A Mitchell Institute report released publicly today looks at dynamic space operations:

Mitchell Institute: Dynamic space operations include more than just refueling and maneuver

The Space Force needs to consider a multitude of ideas while pursuing dynamic space operations efforts, including whether or when guardians may conduct missions in space, according to a new Mitchell Institute report.

Senators on both sides of the aisle aren't particularly impressed with the proposed reorganization of the Pentagon's policy shop:

Pentagon's new senior policy leadership shake-up rattles Congress

A new Defense Department reorganization of senior policy leaders and their oversight areas is drawing bipartisan rebukes from senior senators, who say Congress has not been informed of major shifts in officials' responsibilities, including the AUKUS security pact between the U.S., U.K. and Australia.