The Insider

By Tony Bertuca
March 14, 2025 at 2:23 PM

The Senate voted 59-40 today to confirm billionaire financier Stephen Feinberg as deputy defense secretary.

Feinberg, the co-founder, co-CEO and chief investment officer for global investment and private equity firm Cerberus Capital Management, has promised to establish a "war room" to review Pentagon spending in detail to ensure it is aligned to compete with China.

“I don't believe in the Department of Defense any of our leaders fully understands our cost structure,” he said during his confirmation hearing last month. “We're going to go over every program, every cost, line by line with an army of people until it's done, 24/7. We're going to understand where our costs are, why we don't have an audit, where the financial problems are and then we're going to come up with a plan to fix it. It's a big task, it's a big war room. But I think the Pentagon will support it and I think the people will be excited to see it as well.”

Feinberg also said during his Feb. 25 hearing that he believes large defense companies have become too consolidated via mergers and acquisitions.

“I think we need to bring in new companies,” he said.

Feinberg has said he wants to “sponsor” companies like General Motors and Ford so they could win Pentagon contracts and bring their large manufacturing capacity to the defense industrial base.

“We’ve got to make it easier for them,” he said. “I would go to our big manufacturing companies, give them a shot on new programs if we think their capabilities can meet it, and let them figure out a way under FAR to give them a shot without a widescale competition with all our big defense companies, which, by the way, are too consolidated."

By John Liang
March 14, 2025 at 1:49 PM

This Friday INSIDER Daily Digest has news on the Pentagon's Office of Net Assessment, plus the looming continuing resolution that's due for a vote in the Senate sometime this afternoon or evening and more.

We start off with news on the Defense Department's Office of Net Assessment, which was created by President Richard Nixon in 1973 to serve as an internal think tank for the Pentagon:

Hegseth to restructure Office of Net Assessment

Defense Secretary Pete Hegseth has ordered the disestablishment of the Pentagon's storied Office of Net Assessment with the intent to "rebuild it."

The stopgap continuing resolution is now before the Senate, where it needs 60 votes to pass to avert a partial government shutdown starting just after midnight tonight. Here's our coverage so far:

Smith: Marine Corps modernization continues to be undercut by CRs

The lack of fiscal year 2025 spending legislation continues to undercut Marine Corps modernization efforts, according to Commandant Gen. Eric Smith, who listed aviation modernization efforts and the procurement of ship-killing missiles as priority areas at risk under Congress' current string of stopgap funding patches.

Republican CR would cut Pentagon buying power; lawmakers eye reconciliation for more

The GOP's yearlong continuing resolution that narrowly passed the House this week includes a variety of features -- like the authority to start some new programs and reallocate a greater amount of money during the fiscal year than previously allowed -- that were enough to win the support of defense advocates, though it amounts to a multibillion-dollar cut in military spending because it doesn't keep pace with inflation.

A new Defense Department inspector general's report determines "whether the Army effectively transitioned the Lower Tier Air and Missile Defense Sensor (LTAMDS) program from the rapid prototyping pathway to the major capability acquisition pathway":

IG flags oversight gaps in middle-tier acquisition policy after LTAMDS goes off track

The Defense Department's inspector general has identified significant gaps in oversight for some weapon system acquisition programs, warning these shortfalls could lead to cost overruns and delays beyond the purview of Congress and Pentagon leaders with oversight responsibilities.

Document: DOD IG report on LTAMDS

House Homeland Security Committee Chairman Mark Green (R-TN) as well as Reps. Jen Kiggans (R-VA) and Don Davis (D-NC) this week introduced legislation that would create a commission to investigate the current condition of the U.S. maritime industry:

New bill would create commission to study maritime industrial base

A new bill introduced by a bipartisan group of lawmakers would establish a national commission on the maritime industrial base, following previous congressional and executive moves to bolster national shipbuilding efforts.

Document: Save Our Shipyards Act of 2025

By Shelley K. Mesch
March 14, 2025 at 10:57 AM

The Air Force Scientific Advisory Board is set to meet March 27 and 28 to collaborate on studies ordered by the previous service secretary for fiscal year 2025, according to a notice in the Federal Register today.

The meeting, held at Joint Base Andrews, MD, will be closed to the public as the board will discuss classified matters.

The board will discuss its four ongoing studies: space-based battle management, command, control and communication; autonomy for military systems; implementing reoptimization for great power competition; and quantum systems.

By Dominic Minadeo
March 13, 2025 at 2:53 PM

The Army is turning to industry for prototype proposals for an autonomous system to integrate into its Robotic Combat Vehicle, according to a special notice the service put out today.

The intent is to survey companies for an “Autonomous Mobility Solution” for the RCV and potentially other future robotic vehicles. The request comes out of the office for Future Battle Platforms within the Ground Combat Systems program executive office.

The RCV “is a groundbreaking advancement in the field of ground maneuver warfare,” the release says. “To align with Army requirements, an autonomous solution for ground mobility is required.”

The service defines ground mobility autonomy as a vehicle that can move around without a human directly operating it; the capability is needed to lighten the “cognitive load” for soldiers who are carrying out missions with RCVs -- and drive down the amount of “human interventions.”

But right now the Army has to contend with the fact that autonomous technology is “not that great,” Maj. Gen. Glenn Dean, GCS program executive officer, said last fall, because it still requires a lot of human involvement.

The service will release the request for prototype proposals under the Detroit Arsenal Innovation Other Transaction Agreement, an OTA that launched in September 2023 between Army Contracting Command and the National Advanced Mobility Consortium. Its purpose is to research and develop ground vehicle prototyping projects.

ACC at Detroit Arsenal in Warren, MI, has an active request for information with NAMC, with responses due April 14.

The prototyping project should last exactly one year, according to the release, but it’s not clear when it will begin. The Army is aiming for a follow-on production effort after the prototyping wraps up.

By John Liang
March 13, 2025 at 2:17 PM

This Thursday INSIDER Daily Digest has news on the effects of a possible yearlong continuing resolution on the Air Force, plus coverage of a Senate hearing on military readiness and more.

We start off with news on the effects of a possible, yearlong continuing resolution on at least one service's budget:

Yearlong CR without anomalies could cost Air Force up to $14 billion

If Congress reaches a deal on a yearlong continuing resolution to keep the government running through September, the Air Force's foundational accounts could see a blow as high as $14 billion, a top service official told lawmakers yesterday.

House Armed Services Committee Chairman Mike Rogers (R-AL) and Ranking Member Adam Smith (D-WA) sent letters to the leaders of every military service on Feb. 14 asking them to "identify infrastructure, programs or processes which are no longer relevant to [the] National Defense Strategy or are not producing the intended effects." DOD has since responded:

DOD tells lawmakers to wait for list of proposed budget cuts

The Pentagon is telling the House Armed Services Committee that it cannot provide senior lawmakers with lists they requested identifying potential cuts to defense programs, but to instead wait for the rollout of the Trump administration's fiscal year 2026 budget request, according to a letter obtained by Inside Defense.

We also have news on Army electric vehicles that is now available for all to read:

Army chief moves to foil Biden-era electric vehicle test plan

A Biden-era plan to test electric Infantry Squad Vehicles is in jeopardy as Army Chief of Staff Gen. Randy George contends the capability is not suitable for battle, while new political opposition has emerged in the White House and Pentagon to initiatives adjacent to clean energy or climate change.

Some Defense Innovation Unit news:

DIU announces 18 awardees under quantum sensing project

The Defense Innovation Unit is set to field and test quantum sensing systems for military applications, awarding Other Transaction Agreements to 18 vendors under its Transition of Quantum Sensing program, according to an announcement.

More coverage from last week's AFA Warfare symposium in Colorado:

NGAD decision not final, but officials want a new manned fighter

DENVER -- The Air Force needs a Next Generation Air Dominance penetrating fighter jet to maintain survivability and lethality in a contested Indo-Pacific environment, top service leaders said last week.

The Senate Armed Services readiness and management support subcommittee held a hearing this week with the service vice chiefs on military readiness:

Army vice warns of budget challenges to support growth of troop levels

The Army's active-duty end strength is projected to expand by the end of the fiscal year to 10,000 troops more than the service budgeted for in FY-25, Vice Chief of Staff Gen. James Mingus told lawmakers Wednesday.

Air Force 'fully committed' to moving KC-135 recapitalization forward

The Air Force is still "fully committed to tanker recapitalization post the KC-46" Pegasus program, a top service official told lawmakers Wednesday.

Acting CNO: Ship availability sits at 67%, CR will be a setback for combat surge readiness

Naval ship availability is about 67% depending on the day, a senior Navy official told lawmakers Wednesday -- far from the 80% combat-surge readiness goal set in place by former Chief of Naval Operations Lisa Franchetti in a plan to effectively counter China by 2027.

Document: Senate hearing on military readiness

The Space Force will make a certification decision for the Vulcan rocket soon:

ULA completes Vulcan investigation, awaits Space Force certification

United Launch Alliance completed its investigation into the anomaly on its Vulcan rocket in October that delayed National Security Space Launch certification, ULA President Tory Bruno told reporters.

The defense secretary in a recent memo codified the Software Acquisition Pathway as the “preferred pathway for all software development components of business and weapon system programs” for all DOD components and made Commercial Solutions Openings and Other Transactions the default contracting vehicles for acquiring capabilities under SWP:

Industry leaders see promise in Hegseth's new software push, with caveats

Defense Secretary Pete Hegseth's new memo directing the adoption of special contracting pathways for rapid software procurement is a positive sign for the Pentagon acquisition process -- but there are some caveats, industry leaders told Inside Defense.

By Dominic Minadeo
March 13, 2025 at 1:27 PM

A Biden-era plan to test electric Infantry Squad Vehicles is in jeopardy as Army Chief of Staff Gen. Randy George contends the capability is not suitable for battle, while new political opposition has emerged in the White House and Pentagon to initiatives adjacent to clean energy or climate change.

“We are working to try to change this expenditure to deliver hybrid ISVs instead -- which have already proven capable and effective in training,” Col. Dave Butler, communications advisor to George, told Inside Defense.

Read the full story, now available to all.

By Nick Wilson
March 13, 2025 at 11:28 AM

Contractors Saildrone and Palantir Technologies today announced the formation of a new strategic partnership intended to leverage artificial intelligence tools from the latter company for maritime domain awareness applications on the former’s autonomous platforms.

According to a Saildrone announcement, the partnership will “revolutionize maritime intelligence capabilities” by streamlining manufacturing and improving fleet capabilities.

Saildrone makes multiple long-endurance unmanned surface vessels used by the Navy and other U.S. and international agencies largely for intelligence, surveillance and reconnaissance missions. The vessels use “sophisticated and proprietary edge-computing AI/ML algorithms” to detect and track threats including adversary submarines, illegal fishing and drug trafficking, the notice states.

“As demand for Saildrone services surges, the company will integrate Palantir’s sophisticated AI cloud infrastructure to enable rapid scaling across its entire operational spectrum -- from transforming its manufacturing, supply chain, and fleet operations with Warp Speed to enabling AI-powered tasking of autonomous assets in the field,” the announcement states.

By Dan Schere
March 13, 2025 at 11:07 AM

The Army has chosen Boeing to advance to the next phase of the Indirect Fires Protection Capability Increment 2 second interceptor competition, the company announced Wednesday.

The medium-range interceptor is meant to “better protect fixed and forward operating bases against emergent aerial threats,” according to a company press release.

IFPC Increment 2 is meant to defend against cruise missiles and uncrewed aircraft systems. One interceptor variant can employ the AIM-9X Sidewinder missile and the AGM-114L Longbow variant of the Hellfire missile, according to a recent Congressional Research Service report. The AIM-9X guided-missile interceptor was launched during a test of IFPC 2 by the Army last summer, Inside Defense reported.

The Army announced in January 2024 that it would be holding a competition for a second interceptor for IFPC Increment 2, with the plan to make an award in fiscal year 2025. This second interceptor will address “subsonic and supersonic” cruise missile threats, according to the Army. The vendors that are ultimately selected will participate in a technology demonstration during the FY-26 to FY-27 timeframe, the Army said at the time.

Jim Leary, Boeing’s executive director of business development for precision engagement systems said Wednesday that “Our design offers increased magazine depth with a missile that provides enhanced speed to target, greater range and maneuverability for sustained engagement against an evolving threat.”

The Army plans to select companies to advance to the prototype development phase of the competition next year, Boeing stated Wednesday.

By Nick Wilson
March 12, 2025 at 4:41 PM

Federal civilian employees working in shipyard maintenance facilities and depots are exempt from the Trump administration's sweeping federal layoffs, a defense official told Inside Defense today.

Layoffs have begun in other unspecified areas of the Navy’s civilian workforce, the official confirmed. However, shipyard employees working at government facilities including the United States’ four public shipyards are safe from the cuts.

Testifying before Congress today, Adm. James Kilby, the vice chief of naval operations who is currently performing the duties of CNO after Adm. Lisa Franchetti was abruptly fired last month, said public shipyard workers and civilian mariners at Military Sealift Command are also exempt from an otherwise service-wide hiring freeze.

“We are trying to shape this in a manner that allows us to continue the most important work as we work through guidance from the administration,” Kilby told Sen. Mazie Hirono (D-HI) today during a hearing on Defense Department readiness.

In late February, the Pentagon announced plans to cut its civilian workforce by between 5% and 8% -- 35,000 to 56,000 jobs -- starting with the termination of about 5,400 probationary workers.

Lawmakers have previously raised concerns over the impact of these layoffs on ship maintenance, with Sens. Jeanne Shaheen (D-NH) and Susan Collins (R-ME) directly calling on the Navy and Office of Personnel Management to exempt public shipyards from the cuts.

Today, Kilby said ship availability rates sit at about 67% with the Navy still working toward the 80% combat-surge readiness goal established by Franchetti.

The Navy estimates the maritime industrial base -- including both private industry and public maintenance facilities -- will need to hire 25,000 workers each year over the next decade to catch up with ship construction and maintenance demand.

By John Liang
March 12, 2025 at 1:22 PM

This Wednesday INSIDER Daily Digest has news on the possible government shutdown, Navy shipbuilding and more.

With a government shutdown looming, all eyes are on the Senate to see whether a full-year continuing resolution can be passed before midnight Friday:

House passes yearlong CR that favors defense, teeing up Senate debate

The House voted 217-213 today to pass a yearlong continuing resolution that faces an uncertain future in the Senate in advance of Friday night's shutdown deadline.

More coverage from last week's AFA Warfare symposium in Colorado:

Lockheed Martin's tech demo satellite bus ready for launch

DENVER -- Lockheed Martin's self-funded, multimission satellite bus is ready for launch this week, the company said.

(Read our full AFA coverage.)

The House Armed Services seapower and projection forces subcommittee held a hearing this week on the state of U.S. shipbuilding:

Labor is key to resolving shipbuilding woes, experts tell lawmakers

To remedy the state of shipbuilding in the United States, no factor is more important than addressing labor shortages and boosting wages, a naval analyst told lawmakers yesterday.

Document: House hearing on the state of U.S. shipbuilding

The Missile Defense Agency this week published a solicitation that departs from a December 2022 plan that aimed for an exclusive deal with Raytheon for the production and integration of SM-3 Block IB and Block IIA missiles:

MDA exploring options to inject competition into SM-3 production

The Missile Defense Agency is revising its acquisition strategy for the Standard Missile-3 program, replacing a planned seven-year, sole-source procurement deal with a new approach that introduces competitive elements and shifts program priorities.

The Army's Integrated Visual Augmentation System is now called Soldier Borne Mission Command:

Prototyping for now-rebranded future IVAS variant will occur in two phases

The Army plans to prototype its next phase of the Integrated Visual Augmentation System in two phases, according to a new request for information posted to sam.gov last week.

By Abby Shepherd
March 11, 2025 at 3:27 PM

As part of a new Australian AUKUS submarine industry strategy, shipbuilder HII has been awarded a $9.6 million (AUD) -- or roughly US$6 million -- contract to deliver a pilot program meant to integrate more Australian suppliers and products into the U.S. industrial base.

The Australian Submarine Supplier Qualification pilot program will be implemented over the next two years and will “accelerate the identification and qualification” of these Australian sources, according to an HII news release.

“This contract represents a significant milestone in building a resilient and globally integrated supply chain for nuclear-powered submarines,” HII CEO Chris Kastner said in a statement. “HII has a long history of working with suppliers to ensure they meet the highest standards in safety, security, and performance. We welcome Australian partners to help build out this critical nuclear shipbuilding capability and ensure the long-term success of AUKUS.”

The new Australian strategy released last week calls for AU$30 billion to be invested in the country’s industrial base and calls for further investment in workforce training and educational programs.

The U.S. has agreed to sell at least three Virginia-class submarines to Australia starting in the early 2030s, yet builders are currently unable to deliver these boats at a two-a-year cadence. Australia has pledged to give $3 billion to the U.S. to aid on-time production and has already delivered $500 million of this.

Elbridge Colby -- the Trump Administration’s pick for under secretary of defense for policy -- told lawmakers at his confirmation hearing last week that he does support AUKUS and called it a “model of the type of cooperation we need to meet the challenges of the 21st century.”

Yet, Colby did bring up concerns related to the U.S. shipbuilding industry’s ability to meet the country’s own force structure goals, as well as the targets to deliver boats to Australia by a certain date. The potential threat posed by China in the Indo-Pacific means the U.S. should be poised to defend itself with its own submarines, he said.

“If we can produce the attack submarines in sufficient number and [at] sufficient speed, then great,” Colby said. “But if we can’t, that becomes a very difficult problem because we don’t want our servicemen and women to be in a weaker position and more vulnerable and God forbid, worse, because they’re not in the right place at the right time.”

By Tony Bertuca
March 11, 2025 at 2:36 PM

The Senate Armed Services Committee has voted to advance the nominations of Stephen Feinberg, whom President Trump has picked to be deputy defense secretary, and John Phelan, who has been tapped to serve as Navy secretary.

The committee released a statement saying the nominations will be reported to the Senate floor for confirmation votes.

By Dan Schere
March 11, 2025 at 2:12 PM

Michael Obadal, currently an executive at Anduril, has been nominated by President Trump to be the Army's next under secretary, according to a nomination posting from Congress.

Obadal’s LinkedIn page lists him as a “senior director” with Anduril for the past two years.

Obadal is an Army veteran who earned a degree in international studies from Virginia Military Institute, then served both overseas and in stateside posts as an attack helicopter officer before joining U.S. Special Operations Command, according to a biography from the Special Operations Warrior Foundation, where he is listed as an ambassador.

He spent 18 years commanding units and task forces throughout Army and Joint Special Operations, according to the bio. Obadal also worked on counterterrorism efforts when he commanded Joint Special Operations Command’s Joint Inter-Agency Task Force for the National Capital Region, and Operation Gallant Phoenix in Jordan.

If confirmed, Obadal would succeed Gabe Camarillo, who served as under secretary during the Biden administration.

Obadal’s nomination follows the Senate confirmation of Trump nominee Dan Driscoll as Army secretary last month.

By John Liang
March 11, 2025 at 1:46 PM

This Tuesday INSIDER Daily Digest has news on the Army's now-rebranded future Integrated Visual Augmentation System, Japan's Hyper Velocity Gliding Projectile program and more.

The Army's Integrated Visual Augmentation System is now called Soldier Borne Mission Command:

Prototyping for now-rebranded future IVAS variant will occur in two phases

The Army plans to prototype its next phase of the Integrated Visual Augmentation System in two phases, according to a new request for information posted to sam.gov last week.

The Pentagon's Defense Security Cooperation Agency announced this week it had notified Congress of a potential Hyper Velocity Gliding Projectile support services sale, which includes test preparation, transportation and coordination meetings in the U.S. and Japan:

Japan eyes Pentagon assistance with developing advanced long-range strike capability

The State Department has approved a potential $200 million foreign military sale to Japan for support services related to the country's Hyper Velocity Gliding Projectile (HVGP) program, a move that strengthens U.S.-Japan defense ties as Tokyo pushes forward with its next-generation, precision-strike capability.

Coverage of the Army's Tactical Intelligence Targeting Access Node:

Army expects second TITAN delivery this month

The Army will receive its second shipment of the Tactical Intelligence Targeting Access Node before the end of March, according to an email a service spokesperson sent Inside Defense last Friday.

Some Joint Strike Fighter news:

F-35 pilots at Nellis Air Force Base could train on JSE as soon as this month

DENVER -- The Joint Integrated Test and Training Center at Nellis Air Force Base, NV could soon receive a final assessment of its Joint Simulation Environment before the synthetic test system can be officially stood up in the next few weeks, according to a senior Air Force materiel leader.

Tranche 1 Transport Layer satellites will be on the first launch later this year, with launches taking place each month until all 126 Transport Layer, 28 Tracking Layer and four missile defense demonstration satellites are on orbit:

SDA Tranche 1 satellites to begin launching in late summer

The Space Development Agency is now expecting its first operational satellites for the Proliferated Warfighter Space Architecture to launch late this summer, the agency announced, about a year after initially scheduled.

By John Liang
March 10, 2025 at 1:48 PM

This Monday INSIDER Daily Digest has coverage of a new Joint Strike Fighter simulator trainer, space-based missile warning satellites and more.

We start off with continuing coverage of last week's AFA Warfare symposium in Colorado:

F-35 pilots at Nellis Air Force Base could train on JSE as soon as this month

DENVER -- The Joint Integrated Test and Training Center at Nellis Air Force Base, NV could soon receive a final assessment of its Joint Simulation Environment before the synthetic test system can be officially stood up in the next few weeks, a senior Air Force materiel leader said Wednesday.

Next Gen OPIR GEO readying for launch this year, needs ULA's Vulcan rocket certified

DENVER -- The first satellites of the Space Force's program to augment missile warning from geosynchronous Earth orbit will be ready to launch this year, a top official said this week, but they will need the United Launch Alliance's rocket to be certified to launch such a mission.

(Read our full AFA Warfare Symposium coverage)

Some Proliferated Warfighter Space Architecture news:

SDA Tranche 1 satellites to begin launching in late summer

The Space Development Agency is now expecting its first operational satellites for the Proliferated Warfighter Space Architecture to launch late this summer, the agency announced, about a year after initially scheduled.

The Light Marine Air Defense Integrated Systems (L-MADIS) capability, which was developed in-house by the Marine Corps' ground-based air defense program office, consists of a "fighting pair" of Ultra-Light Tactical Vehicles:

Marine Corps using L-MADIS to protect ships from aerial threats as Pentagon continues hunt for low-cost drone defense

The Marine Corps is using a mobile air defense system to protect amphibious warships from drones and other aerial threats, according to a service spokesperson, who told Inside Defense the recently developed capability now deploys with each Marine Expeditionary Unit as part its Low Altitude Air Defense detachment.

In a recent memo, Defense Secretary Pete Hegseth directed "all DOD Components to adopt the Software Acquisition Pathway (SWP) as the preferred pathway for all software development components of business and weapon system programs in the [Defense] Department":

Pentagon moves to streamline and scale new software procurement

The Defense Department is being directed to adopt special contracting pathways for rapidly acquiring software, according to a new memo from Defense Secretary Pete Hegseth.

Document: Hegseth memo on software