The Insider

By Tony Bertuca
March 19, 2018 at 3:17 PM

The North American Free Trade Agreement is a "core aspect" of U.S. national security and President Trump should continue to honor it, according to a letter from 10 former chiefs of U.S. Northern and Southern commands.

"Without NAFTA, cooperation with our North American neighbors will be less likely, weakening our ability to confront security challenges," the March 15 letter states. "And in a broader sense, recommitting to NAFTA would reassure Canada and Mexico and also our allies globally that they can continue to depend on U.S. commitments, particularly as China becomes increasingly assertive."

The letter was released by the Americas Society/Council of the Americas and signed by retired Gens. Bantz Craddock, Douglas Fraser, James Hill, Barry McCaffrey, Victor Renuart, Charles Wilhelm, along with retired Adms. William Gortney, Timothy Keating, James Stavridis and James Winnefeld.

"As you negotiate to update NAFTA, we encourage you, as former Commanders of U.S. NORTHERN Command and U.S. SOUTHERN Command, to strengthen U.S. commitment to the agreement itself," the letter states. "Mr. President, NAFTA is far more than a trade agreement -- it is a core aspect of our national security. We respectfully ask you to update and strengthen the agreement on a mutually beneficial basis, while ensuring it remains a part of the U.S. strategic arsenal for many years to come."

Trump recently exempted Canada and Mexico from new tariffs on steel and aluminum, with the caveat that their status would be reviewed after NAFTA is renegotiated.

By John Liang
March 19, 2018 at 2:23 PM

CACI wants to top General Dynamics' muiltibillion-dollar bid for CSRA, a Navy study into potential savings in aircraft carrier purchases and more highlight this Monday INSIDER Daily Digest.

Looks like General Dymanics isn't CSRA's only corporate suitor:

CACI wants to buy CSRA, offering larger bid than General Dynamics

CACI International has thrown its hat into the ring in the chase to purchase CSRA, offering more money per share than General Dynamics’ multibillion-dollar bid.

The Navy is looking at how much money it could save by purchasing two aircraft carriers at the same time:

Geurts: Navy issues RFP to analyze savings in two-ship carrier buy

The Navy is taking the first concrete step toward a two-ship carrier purchase by releasing a request for proposals today to Huntington Ingalls Industries' Newport News Shipbuilding to analyze the potential cost savings.

The Air Force recently posted a notice on Federal Business Opportunities stating the Air Force Life Cycle Management Center plans to award General Atomics a sole-source contract to develop an air-to-air missile aviation simulator capability for the MQ-9 Reaper:

USAF mulls adding air-to-air missiles, deployable launch capability to MQ-9

An Air Force spokesman says the possibility of adding air-to-air missiles to the MQ-9 Reaper is still predecisional, following a notice of a pending contract award to General Atomics for a system simulating that capability.

An Army battalion is participating in "follow-on assessments" of advanced networking waveforms beyond those in use today as part of the service's mobile ad-hoc network:

Gallagher: CFT assessing 'integrated tactical network'

The cross-functional team dedicated to modernizing the Army network is evaluating waveform improvements with a view to potential fielding across the Army, according to its director.

An Army cross-functional team has been focused on two key areas: developing a maneuver short-range air defense capability and integrating the Terminal High Altitude Area Defense and Patriot missile defense systems:

Air and missile defense CFT pursuing 'layered and tiered approach'

The cross-functional team focused on air and missile defense modernization has concentrated its early efforts on two urgent requirements, but its director is eyeing longer-range objectives for the next phase of the team's operation.

The Marine Corps is harvesting logistics ideas from enlisted personnel and university graduate students:

Marine Corps to implement logistics idea from enlisted, grad students

Following what Marine Corps organizers said was a first-of-its-kind engagement with graduate students, the service intends to act on ideas from its recent hybrid logistics symposium as quickly as this summer.

U.S. and Israeli military personnel are conducting missile defense drills in Israel this week:

U.S. Army, Israeli air defenders to conduct live-fire mission as part of BMD exercise

U.S. Army and Israeli air defense forces plan to conduct live-fire missile defense missions this week in Israel, the culminating event of a major bilateral exercise that is working through the challenges of creating a single air picture with the aim of integrating the two nations' respective ballistic missile defense systems.

By John Liang
March 19, 2018 at 11:48 AM

Jeanne Callahan has been named Huntington Ingalls Industries' corporate vice president for internal audit and Chip Wasson has been named corporate vice president for corporate strategy, the company announced today.

Both will report to Chris Kastner, executive vice president for business management and the company's chief financial officer.

Callahan has worked as the director of business management, contracts and government compliance since HII was formed in 2011. In her new position, she will be responsible for maintaining an effective internal audit program that provides independent and objective evaluation of company processes and control systems.

Callahan began her career as an associate auditor at Newport News Shipbuilding in 1991, and was promoted to manager for strategic planning in 1997. She worked in cost and financial planning, treasury, operations finance, and contracts before being promoted to director for contracts administration in 2007. Callahan earned a bachelor's degree in commerce from the University of Virginia and an MBA at the College of William and Mary.

Wasson previously served as director of corporate strategy. He joined HII in January 2017 and has been responsible for evaluating and pursuing business development initiatives and potential acquisition opportunities, according to the company statement. In his new position, he will be responsible for business strategy and development, including the development and integration of strategic planning efforts, as well as the analysis and entrance into new adjacent markets.

Wasson earned a bachelor's degree in economics from the U.S. Naval Academy and an MBA from Vanderbilt University.

By Lee Hudson
March 19, 2018 at 9:53 AM

Some must-reads from this week's issue of Inside the Navy:

1. The Navy revealed last week the Columbia-class ballistic submarine test program is delayed because of a manufacturing defect.

Full Story: Columbia-class test program delayed due to manufacturing defect

2. The Navy's next generation contracting vehicle for services contracts has refined its work requirements in two key ways that analysts believe will help it create greater competition among contractors.

Full Story: Analysts: Seaport-e to Next Gen changes will be better competition

3. The general in charge of Air Force Materiel Command told reporters March 14 the service is working closely with the F-35 joint program office and prime contractor Lockheed Martin to stand up an organic software depot capability as soon as possible, but discussions around intellectual property have been delaying that process.

Full Story: Intellectual property issues delay standup of organic F-35 software depots

4. When the Navy was testing the F-35B Joint Strike Fighter's ability to take off and land on amphibious assault ships, the service discovered a significant -- and costly -- list of problems.

Full Story: Navy's integration approach balancing speed and capability

By Courtney McBride
March 19, 2018 at 8:22 AM

Some must-reads from this week's edition of Inside the Army:

1. The cross-functional team dedicated to modernizing the Army network is evaluating waveform improvements with a view to potential fielding across the Army, according to its director.

Full story: Gallagher: CFT assessing 'integrated tactical network'

2. The cross-functional team focused on air and missile defense modernization has concentrated its early efforts on two urgent requirements, but its director is eyeing longer-range objectives for the next phase of the team's operation.

Full story: Air and missile defense CFT pursuing 'layered and tiered approach'

3. The Army is close to finishing the first phase of its plan for a new unmanned aircraft system, called Next-Generation Tactical UAS Technology Demonstrator (NGTUAS-TD), which is expected to be runway-independent and perform better than currently fielded UASs.

Full story: Official: New generation of UAS will not be fixed-wing

4. The Army plans to develop prototypes for one robotic combat vehicle and one optionally manned fighting vehicle, according to the Next Generation Combat Vehicle cross-functional team's director.

Full story: CFT director: NGCV prototypes will offer two capabilities

By Tony Bertuca
March 19, 2018 at 5:00 AM

The week ahead features a variety of congressional hearings, think-tank events and industry conferences with senior Pentagon officials. Meanwhile, a continuing resolution to keep the federal government funded expires Friday.

Tuesday

The House Armed Services Committee holds a 10 a.m. acquisition reform hearing with the military service secretaries.

The House Armed Services seapower and projection forces subcommittee holds a hearing on the submarine industrial base.

The House Armed Services Committee holds a hearing on Navy readiness.

The Senate Armed Services Committee holds a hearing on U.S. Strategic Command.

The Senate Armed Services seapower subcommittee holds a hearing on Marine Corps ground modernization.

The House Appropriations energy and water development and related agencies subcommittee holds a hearing on the National Nuclear Security Administration.

The Association of the United States Army hosts a hot topic discussion on installation management.

Wednesday

The House Armed Services tactical air and land forces subcommittee holds a hearing on ground force modernization.

The House Armed Services military personnel subcommittee holds a hearing on military personnel posture.

The Senate Armed Services strategic forces subcommittee holds a hearing on missile defense policies.

The Senate Armed Services seapower subcommittee holds a hearing on Navy shipbuilding.

Booz Allen Hamilton's annual directed energy summit begins.

The Association of the United States Army hosts a discussion on close combat lethality.

The Atlantic Council hosts a discussion with the Army secretary.

Thursday

The House Armed Services strategic forces subcommittee holds a hearing on the nuclear forces budget and atomic energy defense activities.

The House Armed Services emerging threats and capabilities subcommittee holds a hearing on countering weapons of mass destruction.

The Senate Armed Services Committee holds a hearing on atomic energy defense programs.

The Association of the United States Army hosts a breakfast featuring the director of the Army National Guard.

By John Liang
March 16, 2018 at 2:40 PM

The Defense Information Systems Agency announced this week that 20 contracts have been awarded for its multibillion-dollar ENCORE III information technology suite.

"The long-awaited follow-on vehicle to ENCORE II provides services ranging from engineering development to full sustainment under a suite of not-to-exceed multiple award indefinite delivery/indefinite quantity (ID/IQ) contracts," DISA said in a statement.

The contract holds a current ceiling of $17.5 billion.

The ENCORE III contract was originally awarded on Nov. 2, 2017. The following Nov. 14, however, saw DISA issue a stop-work order due to a receipt of protests against the award. The stop-work order was rescinded effective Feb. 28, and the contract's base period was changed from Nov. 2, 2017 through Nov. 1, 2022 to March 12, 2018 through March 11, 2023 with five option years through March 11, 2028.

The multiple-award ENCORE III IT services contract is intended to help the Pentagon and other government agencies migrate to a new joint information network. Defense contractors, however, in 2016 opposed the program's lowest-price, technically acceptable approach, which remained a feature of ENCORE III, despite pre-award protests sustained by the Government Accountability Office in August 2016.

The 20 contractors include 22nd Century Technologies, Inc.; AASKI Technology, Inc.; Ace Info Solutions, Inc.; ActioNet, Inc.; AECOM XNet, LLC; Booz Allen Hamilton; CACI; CSRA; ECS Federal; General Dynamics; IAP C4ISR; IndraSoft; Leidos; ManTech; NES Associates; NetCentrics Corp.; Next Tier Concepts; Phacil; Qbase; and Solers.

By John Liang
March 16, 2018 at 1:51 PM

Army readiness, the Committee on Foreign Investment in the United States, the Defense Innovation Unit Experimental and a slew of Air Force news highlight this Friday INSIDER Daily Digest.

The Army's chief of staff testified before House appropriators this week:

Milley: Army on 'glide path' to readiness recovery by FY-22

After years of declining readiness due to end-strength reductions and high operational tempo, the Army is now "significantly more combat-ready" today than it was less than three years ago, according to its chief of staff.

Document: House appropriators' hearing on the Army's FY-19 budget


News on the Committee on Foreign Investment in the United States:

Congress weighs foreign investment against national security as Trump blocks $117B deal

On the heels of President Trump's executive order to block Singapore-based Broadcom's $117 billion bid to buy U.S. chip maker Qualcomm, the Pentagon's top industrial base official urged lawmakers Thursday to further expand the authority of the powerful and secretive government committee that helped kill the deal.

An official from the Defense Innovation Unit Experimental explained a recent billion-dollar cloud agreement:

DIUx: 'Misunderstanding' over scaled-back cloud agreement

A Defense Innovation Unit Experimental representative says there are misconceptions surrounding a nearly $1 billion cloud agreement DIUx awarded that was later reduced to just $65 million.

The Pentagon recently launched a Mobility Capabilities and Requirements Study led by the cost assessment and program evaluation office and U.S. Transportation Command:

DOD launches new mobility capability and requirements study to influence FY-20 POM

The Defense Department has commenced a sweeping new mobility study, an assessment that aims to consider the precise number of aerial refueling tankers, cargo aircraft and supply ships needed to support the Trump administration's National Defense Strategy and drive any related new investment decisions in the military's fiscal year 2020 spending plan.

The Air Force will push for personnel reform instead of trying to tackle additional organizational shifts:

Nearly 80K await Air Force security clearances as SECAF requests reforms

Air Force Secretary Heather Wilson has a message for Congress this week: Stop reorganizing the Defense Department and focus on personnel reform.

More news from today's Inside the Air Force:

Air Force to retire fourth JSTARS as lawmakers question plan to defund recap

The Air Force plans to retire a fourth E-8C Joint Surveillance Target Attack Radar System in fiscal year 2021, after its latest budget request revealed a plan to retire three of the 16-aircraft fleet in FY-19.

Document: House hearing on Air Force airborne ISR programs


Pawlikowski: Light-attack experiment a success, but Air Force needs buy plan

The head of Air Force Materiel Command said this week she counts the service's ongoing light-attack experimentation effort as a success, but that the challenge will be in readying its acquisition enterprise to rapidly procure the aircraft.

Air Force report shows GBSD reentry vehicle draft RFP slated for late FY-18

The Air Force plans to release a draft request for proposals for the Mark 21A nuclear reentry vehicle in late fiscal year 2018, according to a new acquisition report published this week.

Document: Air Force 2017 annual report on acquisition


Air Force focusing prototyping work on design approaches, not just capabilities

The Air Force's new acquisition executive is encouraging lawmakers to "take an active interest" in prototyping as a means of maturing and fielding new capabilities faster.

Air Force awards $640 million in launch contracts to ULA, SpaceX

The Air Force this week awarded contracts worth more than $640 million to SpaceX and the United Launch Alliance for five future national security space missions.

Air Force still studying options for short-term laser demo on mobility aircraft

The Air Force will continue fleshing out a path to add lasers to mobility aircraft after considering demonstrating a laser weapon on a range of those platforms last year, one of the service's research chiefs said this week.

News on Army manned and unmanned combat vehicles:

CFT director: NGCV prototypes will offer two capabilities

The Army plans to develop prototypes for one robotic combat vehicle and one optionally manned fighting vehicle, according to the Next Generation Combat Vehicle cross-functional team's director.

The chief of U.S. European Command was on Capitol Hill this week:

EUCOM chief wants to bolster forces in Europe

The head of U.S. European Command is calling for additional forces on the continent, including some permanently assigned units, preferably fires and aviation brigades.

By John Liang
March 16, 2018 at 10:19 AM

A year after buying Sotera Defense Solutions, KeyW's chief executive said this week that the integration of that company is now complete.

"KeyW is now the unified, focused and diversified company we have always intended it to be," Bill Weber said in a statement announcing the company's quarterly and year-end earnings. "We entered 2018 with a more competitive cost structure in place, and the ability to pursue contracts that neither company could have competitively bid on its own before the acquisition. Our business development engine continues the robust pace we began at the start of our turnaround, and the right management team is in place to take this company to the next level and beyond. Moreover, KeyW achieved its goal of generating 2017 awards of greater than one times revenue -- and in doing so, 2018 revenue exposed to recompete risk is negligible. 2018 is an execution year for KeyW, and we are looking forward to what lies ahead."

KeyW reported $127 million in revenues during the fourth quarter, up 84 percent from the previous one. "The increase was primarily attributable to contracts acquired through the acquisition of Sotera," the company said.

The Sotera purchase also helped full-year 2017 revenues, which increased 53.3 percent compared to the 2016, according to the statement.

By Rachel Cohen
March 16, 2018 at 9:42 AM

Some must-reads from this week's issue of Inside the Air Force:

1. The Air Force expects to adjust its plans to begin retiring KC-10s in fiscal year 2019 due to forecasted delays in the delivery of the first KC-46 tankers.

Full story: Air Force may shift KC-10 retirement plans due to projected KC-46 delay

2. The general in charge of Air Force Materiel Command told reporters Wednesday the service is working closely with the F-35 joint program office and prime contractor Lockheed Martin to stand up an organic software depot capability as soon as possible, but discussions around intellectual property have delayed that process.

Full story: Pawlikowski: IP issues delaying stand up of organic F-35 software depots

3. The Air Force plans to divest a fourth E-8C Joint Surveillance Target Attack Radar System in fiscal year 2021, and a congressional hearing this week revealed the Advanced Battle Management System concept won't reach full operational capability until 2042 -- nearly two decades after the legacy JSTARS fleet retires.

Full story: USAF to retire fourth JSTARS as lawmakers question plan to defund recap

By John Liang
March 15, 2018 at 1:25 PM

The Air Force's KC-46 tanker, the Army's science and technology budget and more highlight this Thursday INSIDER Daily Digest.

The Air Force announced earlier this month that after a recent schedule risk assessment with KC-46 prime contractor Boeing, it expects initial tanker deliveries will come at the end of this year rather than this spring:

Air Force may shift KC-10 retirement plans due to projected KC-46 delay

The Air Force expects to adjust its plans to begin retiring KC-10s in fiscal year 2019 due to forecasted delays in the delivery of the first KC-46 tankers.

Army Deputy Assistant Secretary for Research and Technology Thomas Russell testified before the House Armed Services emerging threats and capabilities subcommittee this week on the service's fiscal year 2019 S&T budget request:

Army retooling S&T investment portfolio

The Army is adjusting its science and technology portfolio to invest in mid- and far-term efforts, demonstrating a new focus on deterring strategic competitors, according to the deputy assistant secretary of the Army for research and technology.

Document: House hearing on DOD S&T programs


The Pentagon has been hosting weekly meetings involving representatives from 40 organizations around DOD to discuss their AI activities and what more they may need:

Pentagon working on artificial intelligence strategy

The Pentagon is working on an artificial intelligence strategy aimed at aligning various efforts across the Defense Department and outpacing China.

Keep an eye out for an upcoming contract for the Joint Air-to-Surface Standoff Missile program:

Lot 16 JASSM-ER contract due this month as service looks to full operational capability by 2019

The Air Force plans to award a Lot 16 contract for the extended-range variant of Lockheed Martin's Joint Air-to-Surface Standoff Missile this month, the service said in recent budget and acquisition documents.

Document: Air Force 2017 annual report on acquisition


The Air Force and Navy will share responsibility for F-35 software production, which includes sustainment of existing software and continuous development of new capability:

Pawlikowski: IP issues delaying stand up of organic F-35 software depots

The general in charge of Air Force Materiel Command told reporters Wednesday the service is working closely with the F-35 joint program office and prime contractor Lockheed Martin to stand up an organic software depot capability as soon as possible, but discussions around intellectual property have been delaying that process.

The Export Administration Act of 1979 lapsed in 2001; since then, emergency presidential authority under the International Emergency Economic Powers Act has been used to ensure that executive agencies can continue to administer the export-control system:

House Foreign Affairs leaders push export-control bill

The chairman and ranking member of the House Foreign Affairs Committee used a Wednesday hearing on export controls to push their bill to establish a permanent statutory basis for regulating dual-use and military exports licensed by the Commerce Department, and to modernize the export-control regime.

By Lee Hudson
March 15, 2018 at 1:07 PM

The Navy revealed yesterday the Columbia-class ballistic submarine test program is delayed because of a manufacturing defect.

Adm. James Caldwell, naval nuclear propulsion program director, said some of the components for the preproduction motor were not properly insulated.

"What we discovered was the sub-tier vendor did not properly flow down requirements to the manufacturer," he said during a Senate Armed Services strategic forces subcommittee hearing.

The service will conduct full integration testing at a facility in Philadelphia, PA, using preproduction components for end-to-end testing, he said.

"We will take what we learned from that and roll that into the final design that will go into the first ship," Caldwell said. "While we lost some time on the preproduction motor we still have been able to shorten some test bands and doing some work in parallel."

Caldwell reiterated the Columbia-class test program still has a nine-month margin, but the delay inserts more risk into the program and puts pressure on the schedule.

Another challenge the Navy is facing with the multibillion-dollar Columbia-class program is manufacturing the length of the ship. The Columbia-class submarines are slightly larger than the legacy Ohio-class subs.

"We knew this was going to be a challenge to get to its 40-year life and will require the use of new materials," he said.

In 2010, the service decided to prove out the design by manufacturing a technology and demonstration core to use at a reactor prototype and training site in New York. The test core is nearly complete and Caldwell plans to begin building the first core for use on the Columbia next year.

Further, the Navy is conducting research on how to modify the core used on the Virginia-class attack submarine to allow for the boats to go faster. Caldwell anticipates the modified core will be used on future attack subs and will save the taxpayer $50 million compared to the legacy reactor.

The fiscal year 2019 budget request for naval reactors is $1.79 billion, which is a 21 percent increase over the previous year, according to written testimony submitted to the subcommittee.

"The overall increase to the budget request is primarily driven by the planned funding ramp for two national priority projects -- the refueling overhaul of a research and training reactor in New York, and the construction of the new Naval Spent Fuel Handling Facility in Idaho," the document reads.

By Tony Bertuca
March 15, 2018 at 1:00 PM

The top Democrats on the House Oversight and Government Reform Committee are requesting Defense Secretary Jim Mattis send them any information on the Pentagon's decision to restrict information about the U.S. mission in Afghanistan that was previously unclassified.

"We are writing to express our grave concerns about the rapidly deteriorating security situation in Afghanistan, as well as the alarming escalation of effort by the Department of Defense to retroactively classify information relating to the war in Afghanistan," according to a March 15 letter Reps. Elijah Cummings (D-MD) and Stephen Lynch (D-MA) sent to Mattis.

Specifically, the lawmakers want all documents related to several of DOD's decisions to classify information in reports from the Special Inspector General for Afghanistan Reconstruction between Oct. 30, 2017, and Feb. 26, 2018.

Classified information that was kept out of the reports that was not classified previously includes information of the strength, performance and casualties of Afghan security forces.

The lawmakers also seek information on why DOD has chosen to classify the Trump administration's specific security goals for Afghanistan and the number of U.S. and coalition airstrikes.

The letter asks that Mattis, who is in Afghanistan this week meeting with leaders in Kabul, respond by March 28.

Separately, the Defense Department took criticism for classifying data that show record Taliban gains over local Afghan populations, but reversed the policy, chalking it up to "human error."

By Tony Bertuca
March 15, 2018 at 10:45 AM

A bipartisan team of influential lawmakers from the House Armed Services Committee has sent a letter to President Trump urging him to fully resource State Department activities aimed at protecting the United States from information warfare attacks stemming from Russia and non-state terror groups.

The lawmakers include House Armed Services Committee Chairman Mac Thornberry (R-TX), Reps. Adam Smith (D-WA), the committee's ranking member, Elise Stefanik (R-NY), chairwoman of the emerging threats and capabilities subcommittee, and James Langevin (D-RI), the subcommittee's ranking member.

At issue is $60 million the Defense Department has, at the behest of Congress, made available to the State Department's Global Engagement Center to counter information operations.

The lawmakers note that Trump has yet to name a director for the GEC and the State Department has yet to spend the money that has been made available.

"We are therefore disappointed that to date your administration has not provided adequate resources, including funding and personnel, to the GEC to carry out its mission and, furthermore, that you have not yet appointed a director to lead the agency in this endeavor," the letter states.

Adm. Mike Rogers, the chief of U.S. Cyber Command and the National Security Agency, made headlines last month when he told senators he has received no direction from the White House to combat possible Russian efforts to disrupt future U.S. elections.

Efforts to counter Russian information operations in the United States have become highly politicized as Republicans and Democrats continue to spar over whether the Trump campaign colluded with Russian intelligence operatives.

Meanwhile, Special Counsel Robert Mueller is conducting an independent investigation into alleged Russian interference in the 2016 election and has indicted former Trump campaign manager Paul Manafort.

By Lee Hudson
March 15, 2018 at 10:36 AM

Two naval aviators died yesterday during final approach to Boca Chica Field, FL, in an F/A-18F Super Hornet.

The jet crashed at 4:30 p.m. and search crews recovered the pilot and weapon systems officer -- both had ejected from the aircraft -- from the water roughly one mile east of the runway. The aviators were taken by ambulance to Lower Keys Medical Center where they were pronounced dead, according to a Navy statement.

The F/A-18F is a dual-seated aircraft assigned to the "Black Lions" of Strike Fighter Squadron Two One Three (VFA-213), based at Naval Air Station Oceana, VA and the cause of the mishap is currently under investigation.