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The first operational unit of a developing passive sensing and targeting system designed by L3Harris for use on Navy surface ships is expected to be installed aboard an Arleigh Burke-class destroyer in 2027 and integrated with the vessel's Aegis Combat System, according to company executives.

L3Harris was selected by the Navy to build this system -- the Shipboard Panoramic Electro-Optic/Infrared (SPEIR) -- in 2022, receiving an initial $205 million award with a potential value of up to $593 million if all options are exercised.

The program completed its critical design review in March 2024 and is now expected to deliver a “demonstration asset” later this year to begin testing with the Navy, according to Jon Rambeau, president of integrated mission systems at L3Harris.

The passive system uses electro-optic and infrared (EO/IR) imagery sensors and is designed to complement the active radar systems already used on surface ships, Rambeau told reporters ahead of the Navy League's annual Sea-Air-Space conference.

“This is really designed to complement the active radar systems that are onboard surface ships, so that they can operate ‘lights out,’ and turn that radar off when they don't want to be exposed and identify themselves as a target, and instead use a passive system that doesn't emit any energy to be able to do long-range detection, categorization and tracking of targets,” he said.

In addition to this “lights out” application, Rambeau said SPEIR will improve upon existing systems by providing a longer-range detection capability and by using artificial intelligence to identify and classify targets.

“You may not get the range of a SPY radar, but you will get a very long-range, accurate EO/IR that will give you a visual picture of what it is out there with a fairly high resolution in many cases,” he said. “It should be able, with the AI capability, to start working through a catalog of known assets to categorize and prioritize threats.”

To date, the program has successfully completed six software build reviews and three design verification test events at the Naval Surface Warfare Center Crane Division in Indiana and at the Directed Energy Systems Integration Laboratory (DESIL) in California, an L3Harris spokesperson told Inside Defense.

L3Harris is currently procuring materials to support engineering development model unit builds in 2025 and the start of system level environmental and functional qualification testing in late 2025, the spokesperson said.

The Pentagon's innovation arm announced today the launch of its anticipated digital marketplace for pre-approved commercial manufacturing companies to partner with commercial defense technology vendors.

The announcement marks one of the first flagship initiatives out of the Defense Innovation Unit’s Blue Manufacturing program, the Blue Manufacturing Marketplace, aimed at establishing “a pre-vetted catalog of trusted advanced manufacturing companies capable of scaling defense technology production,” DIU said.

The initial cohort will identify trusted manufacturing partners across six categories for department needs, according to DIU. That includes parts production for large and small-format metal additives, composite or ceramic additives and automated metal machining and forming. It would also include partners enabling automated and advanced post-processing and 3D-printed tooling.

The announcement comes just under a month after Liz Young McNally, DIU’s deputy director of commercial operations, teased its arrival to attendees at the Reagan National Security Innovation Base Summit in early March.

Young McNally described the process of building the marketplace, in which manufacturing companies would submit applications, DIU would vet them and after the manufacturers were in the system, the marketplace would enable a matching function so defense technology vendors could better find them.

“In the short term,” DIU said in the release, “a successful Marketplace will enable technology companies to seamlessly identify and work with trusted manufacturing entities. Longer-term success will enable the DOD and USG to have a stronger U.S. and partner based supply chain for scaling needed technologies.”

The marketplace is meant to be an evolving solution, DIU and Young McNally have pointed out.

“We’re going to iterate as we go,” she said in early March.

The DIU release echoed that sentiment, saying the organization plans to continue building out other areas in advanced manufacturing in the coming year.

This Thursday INSIDER Daily Digest has news on repair facilities in the Indo-Pacific region, the Army's nascent tethered surveillance program and more.

The first GENUS regional repair element will be housed within the Support Center Pacific at Kadena Air Base, Japan and operated by the Oklahoma City Air Logistics Complex:

First Air Force GENUS nodes to stand up in Japan in three to five years

The Air Force Sustainment Center is finalizing plans with Japan to establish the first Regional Repair Facility via the Global Enterprise Network for Universal Sustainment in the next three to five years, Inside Defense has learned, but a pilot program could arrive in as soon as one year.

The Army's new tethered surveillance program aims to improve the service's ability to monitor and respond to threats in complex operational environments through long-dwell, multisensor aerostat systems:

Army rolls out $4.2 billion aerostat project to boost battlefield surveillance

The Army is prepared to commit as much as $4.2 billion over the next decade to modernize its tethered surveillance capabilities, awarding a multivendor contract to 10 firms to develop and deliver upgraded versions of its Persistent Surveillance Systems-Tethered (PSS-T).

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

Pentagon plans to include operational technology, Internet of Things in next stage of zero-trust adoption

The Pentagon is setting zero-trust implementation goals for operational technology and the Internet of Things, according to acting Chief Information Officer Katie Arrington and program manager Randy Resnick, who provided updates at a symposium on the Defense Department's efforts to meet a fiscal year 2027 deadline for adopting zero trust.

Pentagon acting CIO Arrington outlines aggressive approach to zero-trust planning

Katie Arrington is committed in her new role as acting chief information officer at the Pentagon to taking an aggressive approach to implementing zero trust across the Defense Department through enforcing high standards for budget priorities and working to change the acquisition landscape.

At least one senator is warning of the adverse effects a trade war would have on the U.S. shipbuilding industrial base:

Senators cite shipbuilding costs amid bipartisan push to cancel Canada tariffs

United States shipbuilding is at risk under President Trump's tariffs on Canadian steel and aluminum, according to Sen. Tim Kaine (D-VA), who is leading a bipartisan push in the Senate to end a 25% tariff levied on the majority of Canadian goods.

Rep. Clay Higgins (R-LA), a vocal supporter of his home state's military installations, during a hearing this week spotlighted the aging F-15C fleet currently flown by the Louisiana Air National Guard and questioned why the Air Force would send the latest air superiority fighters abroad when domestic bases are still flying decades-old aircraft:

Higgins presses for F-15EX fighters to defend U.S. homeland instead of overseas bases

A Louisiana lawmaker challenged the Air Force's plan to deploy next-generation F-15EX fighter jets to Japan, arguing the most advanced variant of the twin-engine aircraft should instead be stationed on U.S. soil -- specifically at the 159th Fighter Wing based at Naval Air Station Joint Reserve Base New Orleans.

The Army has awarded an other transaction agreement to the Ohio-based engineering firm 3dB Labs to build a prototype of the Spectrum Situational Awareness System, according to a press release the service put out today.

The $6.1 million OTA was awarded through the Consortium for Command, Control and Communications in Cyberspace, and it spans a 14-month performance period where 3dB Labs will build and demonstrate the capability, designed to modernize how the Army uses the electromagnetic spectrum, according to the release.

“S2AS directly enhances the survivability and effectiveness of our soldiers on the battlefield,” Ken Strayer, project manager for Electronic Warfare and Cyber, said in a statement. “By integrating feedback from Transformation in Contact (TiC) units, including Electronic Warfare Soldiers and Spectrum Managers, we’re ensuring the system is specifically tailored to meet their operational needs.”

The Army requested $9.3 million for S2AS, a new start program, in fiscal year 2025. After passing the Pentagon’s first-ever yearlong continuing resolution last month, congressional appropriators suggested cutting that figure in half in project level adjustment tables sent by House Appropriations Committee Chairman Ken Calvert (R-CA) and Senate Appropriations Committee Chairman Mitch McConnell (R-KY).

The system will be an integral part of the Army’s Next Generation Command and Control effort, as it will allow commanders to spot themselves on the electromagnetic spectrum and adjust as needed to “allow them to reposition or mask their own capabilities or limit their [electromagnetic] signature,” Strayer said back in December.

“They can maintain the ability to communicate while also picking up any unknown things going on in the environment that may be impacting the Army’s ability to communicate,” he said.

S2AS has a “flexible, modular architecture” designed for deployment in both the hands of soldiers or on vehicles, depending on the mission, according to the release. The program is on schedule with an operational demonstration planned for FY-26 and the first unit issued in FY-27.

“Modernizing spectrum awareness capabilities will enhance commanders’ ability to visualize and control the electromagnetic environment, enabling more effective decision making and improving protection to win the fight for spectrum dominance,” Maj. Cedric Harris, assistant product manager for electronic warfare integration, said in a statement.

This Tuesday INSIDER Daily Digest has news on the Golden Dome missile defense system, Defense Secretary Pete Hegseth directing "the realignment of the Defense Department's civilian workforce" and more.

Senior defense officials spoke at a number of forums hosted by the Missile Defense Advocacy Alliance:

After suffering a bruising critique, MDA publicly lobbies for role to lead Golden Dome

A senior Missile Defense Agency official today pushed back against recent criticism that the organization lacks the agility and structure to lead the Trump administration's ambitious "Golden Dome" missile defense initiative, casting MDA as uniquely equipped to integrate and deliver a homeland shield against modern missile threats.

VCSO: Boost-phase intercept may be technically feasible, but cost remains the rub

The Pentagon’s No. 2 space officer says advances in technology may have made space-based, boost-phase missile interception technically feasible, a shift from decades of skepticism -- though he cautioned that the real hurdle may lie in cost and organizational complexity.

The Missile Defense Agency recently published a Multiple Authority Announcement, a planned five-year initiative that consolidates traditional and nontraditional acquisition pathways under a single contracting vehicle and will serve as a gateway for future solicitations focused on what it hopes to be breakthrough defense capabilities:

Pentagon unveils broad acquisition framework in prelude to Golden Dome launch

The Missile Defense Agency has unveiled a comprehensive new framework to streamline its acquisition of next-generation missile defense technologies, consolidating a broad range of contracting authorities under a single umbrella -- a move that comes as the Pentagon seeks assistance from non-traditional suppliers for its Golden Dome project.

In a March 28 memo, Defense Secretary Pete Hegseth directs "the realignment of the Defense Department's civilian workforce":

Hegseth seeks plans to 'right-size DOD'

Senior Pentagon officials have until April 11 to submit new proposals to cut, consolidate and restructure the Defense Department, including U.S. combatant commands, according to a new memo from Defense Secretary Pete Hegseth.

Document: Hegseth memo on 'workforce acceleration & recapitalization initiative'

The Senate Armed Services Committee held a hearing last week to consider the nominations of Troy Meink to be Air Force secretary, Michael Duffey to be under secretary of defense for acquisition and sustainment and Emil Michael to be under secretary of defense for research and engineering:

DOD acquisition nominee prioritizes speed, incentives for risk-taking

Michael Duffey, nominated to be under secretary of defense for acquisition and sustainment, told the Senate Armed Services Committee on Thursday that he believes wars of the future will be “won on the factory floor” just as much as on the battlefield.

Pentagon nominee for acquisition chief to consider CMMC impact on businesses if confirmed

Michael Duffey, nominee for under secretary of defense for acquisition and sustainment, weighed in on the future of the Pentagon's Cybersecurity Maturity Model Certification program ahead of his recent Senate Armed Services Committee confirmation hearing.

SECAF nominee commits to increasing number of aircraft in fleet, fielding younger platforms

Troy Meink, President Trump's nominee to be the next Air Force secretary, today committed to adding more aircraft to the service’s aging inventory, telling lawmakers the current fleet is the oldest and smallest in the Air Force’s history.

Document: Meink, Duffey, Michael, Bass nomination APQs

PrSM is designed to replace the Army Tactical Missile System, and Increment One has a baseline range of 400 kilometers:

Army awards nearly $5B contract for Precision Strike Missiles

The Army awarded prime contractor Lockheed Martin a $4.9 billion contract to produce more Precision Strike Missiles last week, the Pentagon announced Friday.

As part of an indefinite delivery, indefinite quantity contract for National Security Space Launch Phase 3 Lane 1, two new companies will be able to compete for upcoming launch missions over the next four years:

Rocket Lab, Stoke Space join Space Force NSSL roster with $5.6B IDIQ ceiling

The Space Force awarded Rocket Lab and Stoke Space contracts of up to $5.6 billion to join the roster of launch providers available to the service for future missions.

The Office of Strategic Capital received requests totaling $8.9 billion for its inaugural loan program targeting domestic manufacturing capabilities, highlighting "the critical need for federal financing to scale domestic manufacturing of technologies vital to national and economic security," the Defense Department said in a release today.

The $8.9 billion requested comes from 200 Part 1 Applications to OSC’s inaugural loan program -- a value “which significantly exceeds” the $984 million in credit available per a September Notice of Funds Availability, DOD said.

Manufacturers who applied spanned “various sizes, growth stages, and sectors” across 38 states, according to DOD.

“OSC has been engaging directly with existing applicants,” according to its website. Part 2 of the application is invitation-only, the September NOFA stated.

The strategic capital office “expects to approve financing and deploy capital to selected applicants later this year,” DOD said.