The Insider

World leaders blame Russia for nerve agent attack
By Tony Bertuca
March 15, 2018 at 10:10 AM

The United States, France, Germany and the United Kingdom believe Russia is responsible for the recent nerve agent attack against an ex-Russian spy and his daughter, according to a joint statement.

"We, the leaders of France, Germany, the United States and the United Kingdom, abhor the attack that took place against Sergei and Yulia Skripal in Salisbury, United Kingdom, on March 4, 2018," the statement reads. "A British police officer who was also exposed in the attack remains seriously ill, and the lives of many innocent British citizens have been threatened."

The statement notes the use of the "military-grade nerve agent, of a type developed by Russia" is the first offensive use of a nerve agent in Europe since World War II.

"The United Kingdom thoroughly briefed its allies that it was highly likely that Russia was responsible for the attack," according to the statement. "We share the United Kingdom's assessment that there is no plausible alternative explanation, and note that Russia's failure to address the legitimate request by the government of the United Kingdom further underlines Russia's responsibility. We call on Russia to address all questions related to the attack in Salisbury."

In particular, the statement calls on Russia to "provide full and complete disclosure" of its chemical weapons program.

"It is an assault on the United Kingdom's sovereignty and any such use by a state party is a clear violation of the Chemical Weapons Convention and a breach of international law," the statement reads. "It threatens the security of us all."

The statement comes one day after the U.K. expelled 23 Russian diplomats and suspended high-level contact with Moscow.

Though there is no mention of alleged Russian meddling in the 2016 U.S. presidential election, the statement notes that Russia has shown "a pattern of earlier irresponsible Russian behavior."

Inside the Pentagon highlights
By Tony Bertuca
March 15, 2018 at 9:52 AM

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

1. The United States has a "healthy," but tenuous lead over China in artificial intelligence and quantum computing, according to the head of the Intelligence Advanced Research Projects Activity.

Full story: Intel research chief wants to maintain 'healthy' U.S. lead over China in AI race

2. Architects of the Joint Enterprise Defense Infrastructure program envision a future where data moves freely between Defense Department users in a single cloud environment, enabling innovations like machine learning and artificial intelligence, but questions persist about the efficacy of their plan and the fate of other DOD cloud programs.

Full story: Pentagon plans multibillion-dollar bet on single cloud

3. The Missile Defense Agency's top unfunded requirement in fiscal year 2019 is a new space-based network of sensors to track enemy long-range ballistic missiles during the midcourse of flight, giving the Missile Defense Tracking System -- a program launched in FY-18 but curiously zeroed in MDA's FY-19 budget request -- a potential new path to funding.

Full story: MDA's top unfunded FY-19 requirement is new space-based sensor network project

The INSIDER daily digest -- March 14, 2018
By John Liang
March 14, 2018 at 2:00 PM

This Wednesday INSIDER Daily Digest highlights a speech by the head of the Intelligence Advanced Research Projects Activity, the Missile Defense Agency's unfunded priority list and more.

The head of IARPA this morning said the United States has a tendency to be "alarmist" when it comes to other nations' technological advancements:

Intel research chief wants to maintain 'healthy' U.S. lead over China in AI race

The United States has a "healthy," but tenuous lead over China in artificial intelligence and quantum computing, according to the head of the Intelligence Advanced Research Projects Activity.

The Missile Defense Agency recently provided Congress a list of unfunded requirements -- only the second time MDA has provided such a list -- in an eight-page report, including five projects that require $100 million or more:

MDA eyes space-based sensors, speed-of-light weapons, and more in $1.2 billion wish list

The Missile Defense Agency has provided Congress a $1.2 billion wish list to finance 16 projects that were not included in the agency's $9.9 billion fiscal year 2019 budget request, including bolstering missile defense in South Korea as well as additional investments in new technologies such as speed-of-light weapons, space-based sensors and new warhead development.

Document: MDA's FY-19 unfunded priorities list


The office of the director of national intelligence is leading the "Trusted Workforce 2.0" initiative along with the Office of Personnel Management and other government agencies:

Intel community begins new initiative to reform security clearance process

U.S. intelligence agencies and other government partners are undertaking a landmark initiative this week to overhaul the security clearance background investigations process, as the Defense Department prepares its proposal to take responsibility for DOD-specific investigations.

Of the Air Force's 50 top-priority programs, a new report shows nine exceeded their original cost baseline, and 10 are over their current cost baseline:

Air Force publishes new acquisition overview of major programs in FY-17

The Air Force on Tuesday released a new report directed by service Secretary Heather Wilson to offer an overview of how the service handled its 465 programs of record in fiscal year 2017 and summarizing plans for FY-18 and FY-19.

Document: Air Force 2017 annual report on acquisition


Army Secretary Mark Esper told reporters this week the service is still working through the specifics of Army Futures Command:

Esper: Leaders pursuing 'deliberate process' on Army Futures Command

Army senior leaders intend to announce later this month the composition, but not the location or leadership of the new command intended to consolidate the service’s modernization efforts.

Sen. Warner urges White House to prioritize security clearance reform
By Justin Doubleday
March 14, 2018 at 12:27 PM

Senate Intelligence Committee Vice Chairman Mark Warner (D-VA) sent a letter to the White House today urging officials there to make security clearance reform one of their top priorities.

"We write to request that you personally apply the utmost priority to personnel security clearance reform to ensure we can recruit and retain a trusted workforce for our nation’s national security and public safety missions," Warner wrote in a letter on behalf of the Intelligence Committee to White House Chief of Staff John Kelly and National Security Adviser Lt. Gen. H.R. McMaster.

Warner highlighted how the Government Accountability Office earlier this year added the personnel security clearance process to its "high-risk" list, while Director of National Intelligence Dan Coats recently stated the process is "broken."

Warner noted the background investigations backlog for people seeking security clearances is more than 700,000, while the costs to conduct investigations has doubled in the last three years and wait times to receive a clearance far exceed federal standards.

"We need a 'whole-of-government' approach to tackling this challenge -- by harnessing the power of modern technology, instituting processes like 'continuous evaluation,' ensuring adequate funding, and ensuring uniform standards," Warner wrote. "These things require the administration’s top officials to treat security clearance as an urgent priority."

Last week, government officials and industry representatives testified in front of the intelligence committee on the effects of the background investigations backlog and efforts to reform security clearances.

The office of the director of national intelligence, in concert with other government agencies, is embarking on an initiative to reform and modernize the clearance process called "Trusted Workforce 2.0," according to Brian Dunbar, the assistant director of the special security directorate within the national counterintelligence and security center.

"We look forward to conceptualizing, implementing and ultimately accomplishing the revolutionary change required across the clearance enterprise," Dunbar said during the March 7 hearing. He said the Trusted Workforce 2.0 initiative would kick off this week at the Intelligence Community Campus in Bethesda, MD.

Smith advocating for base flexibility short of BRAC
By Justin Doubleday
March 14, 2018 at 11:22 AM

House Armed Services Committee Ranking Member Adam Smith (D-WA) says he'll advocate for giving the Defense Department more flexibility to close facilities and move assets this year, after the Pentagon neglected to request a Base Realignment and Closure round as part of its fiscal year 2019 budget.

"Collectively most people have surrendered on getting another BRAC round anytime soon," Smith said during an appearance today at the CATO Institute in Washington. "What we're going to try to do instead is at least create some flexibility in terms of how the Pentagon can move assets and shut down some facilities."

DOD's latest budget request abandoned a BRAC request, despite Defense Secretary Jim Mattis telling lawmakers in October "the time is now" for another round.

Smith has advocated for BRAC in the past, but most members oppose the process due to concerns it could drain their districts of jobs.

"Base closure does not have to be the catastrophe for the community that many people have portrayed it," Smith said.

"It's worse actually than just base closures," he continued. "The military is significantly hamstrung right now in their ability to move assets. Basically members of Congress seem to think that anything moved out of their district is the most egregious act ever committed and they will fight to the death to prevent it."

Smith said he understands why lawmakers are afraid of losing potentially tens of thousands of jobs due to a base closure, but he argues even minor changes to installations are too highly restricted.

"It drives me crazy when it's not significant, you still have to be a pain in the ass for no good reason," he said.

Despite the absence of BRAC in the Pentagon's FY-19 budget request, Smith said he will seek to include language in the FY-19 defense authorization bill that gives officials the flexibility to move military assets without fear of congressional interference.

"Personally that's what I'm going to advocate in the NDAA this year is to get some language in there to give people like the [U.S.] Transportation Commander greater flexibility," Smith said.

Sanders asks Mattis to 'crack down' on waste and abuse of defense contractors
By Thomas Duffy
March 14, 2018 at 10:36 AM

Sen. Bernie Sanders (I-VT), the ranking member on the Senate Budget Committee, is asking Defense Secretary Jim Mattis to "crack down" on what Sanders sees as "widespread waste and abuse of private defense contractors."

In a March 14 letter to Mattis, Sanders asks that three issues be investigated: "1) the excessive compensation of defense contractors; 2) the widespread misconduct and fraud in the defense contracting industry; and, 3) massive cost overruns in the acquisition budget."

Sanders points out to Mattis that the CEOs of Lockheed Martin and Raytheon were each paid over $20 million in compensation last year. That is about 100 times more than Mattis' salary, Sanders said. He is asking Mattis for a list of recommendations "on reducing excessive defense contractor compensation" and what, if anything, the Defense Department is doing to address the issue.

Contractor fraud is another target for Sanders. In his letter, Sanders said that since 1995 Boeing, Lockheed and United Technologies "have paid nearly $3 billion in fines or related settlements for fraud or misconduct.

"Yet, those three companies received about $800 billion in defense contracts over the past 18 years," Sanders continued.

He is asking Mattis for DOD's strategy "to prevent future fraud so that defense contractors cannot continue to fleece American taxpayers?"

Finally, Sanders wants answers from Mattis on how DOD plans to control the cost of acquisition programs.

"What is the Pentagon doing to hold defense contractors accountable for the significant cost overruns that American taxpayers have been forced to pay?" Sanders wrote.

Trump's 'Space Force' comments contradict Pentagon, but may align with OMB
By Courtney Albon
March 14, 2018 at 9:44 AM

President Trump's comments this week in support of a "Space Force" appear to be a departure from the Defense Department's and his own administration's stance on recent congressional proposals, however they may align with a recent report from the Office of Management and Budget on space organizational reform that found merit in the creation of a separate space service. 

During a March 13 speech at Marine Corps Air Station Miramar, CA, in which he was discussing space as a warfighting domain, Trump said, in what appeared to be an off-the-cuff statement, "We may even have a Space Force, develop another one, a Space Force. We have the Air Force, we'll have the Space Force."

Congress has proposed creating a separate Space Corps that would report to the Air Force, and DOD leaders have strongly opposed the idea, saying it adds bureaucracy and would harm efforts to better integrate space with other operating domains.

However, as Inside Defense previously reported, the White House's Office of Management and Budget has indicated it may be supportive of major space organizational reform. In a December report signed by director Mick Mulvaney, OMB states that as the space domain becomes increasingly contested, it is "not only prudent but also necessary to consider significant organizational options, like a Space Force."

"There are many key differences between the air and space domains that raise doubts that the organization models should be the same," the report states. "A clean organizational slate would allow a DOD space culture to germinate in a way best fitting these unique features and likely speed the integration of non-Air Force space forces."

Congress fell short of dictating the creation of a separate space service in the Fiscal Year 2018 National Defense Authorization Act; however, lawmakers did direct DOD to create a plan to transition to that construct. House Armed Services strategic forces subcommittee Chairman Mike Rogers (R-AL) has led the effort and has said he expects the transition will occur within three to five years. 

Gilday: Navy will establish Information Warfare Training Group 
By Justin Katz
March 13, 2018 at 4:47 PM

The Navy this month will stand up a new command designed to advance information warfare readiness and warfighting capabilities including cyberspace operations, according to a top cybersecurity admiral. 

"Together with U.S. Naval Information Forces, we will be realigning several of our operational commands to stand up an Information Warfare Training Group later this month," according to written testimony submitted today by Vice Adm. Michael Gilday, U.S. Fleet Cyber Command chief, to the Senate Armed Services cybersecurity subcommittee.

The command will advance cyberspace operations readiness and capabilities through training, assessments and certification assistance "for type commanders in order to prepare afloat and ashore activities to face the challenges of a dynamic threat environment," he said.

Gilday testified today alongside Maj. Gen. Loretta Reynolds, Marine Forces Cyberspace Command chief, and their counterparts in the Army and Air Force.

Additionally, Gilday said that all 40 of the Navy's Cyber Mission Force teams achieved full operational capability last October, one year ahead of schedule. Similarly, Reynolds, in her written testimony to the subcommittee, said 13 various Marine Corps cybersecurity teams also achieved FOC in January.

The INSIDER daily digest -- March 13, 2018
By Thomas Duffy
March 13, 2018 at 3:15 PM

This Tuesday INSIDER starts with a request from the Missile Defense Agency for more money, a combatant commander giving his opinion on Russia's Middle East posture, two service secretaries making public appearances and a new Navy services contract approach.

The Missile Defense Agency has needs beyond its most recent budget request:

MDA's top unfunded FY-19 requirement is new space-based sensor network project

The Missile Defense Agency's top unfunded requirement in fiscal year 2019 is a new space-based network of sensors to track enemy long-range ballistic missiles during the midcourse of flight, giving the Missile Defense Tracking System -- a program launched in FY-18 but curiously zeroed in MDA's FY-19 budget request -- a potential new path to funding.

The U.S. Central Command chief has views on Russia:

Votel warns of Russian influence in Middle East

Gen. Joseph Votel, chief of U.S. Central Command, said today that Russia plays the role of both “arsonist and firefighter” in the Middle East by fueling conflict in Syria and then posturing itself as a peacemaker.

The Army secretary talked about the service's future:

Esper: NDS reshaping Army's priorities in new era

Guided by the new National Defense Strategy, the Army is “opening up the aperture for high-intensity conflict,” while continuing operations around the world, says Secretary Mark Esper.

The Air Force may get a new S&T approach:

Wilson: Service secretaries seeking ‘complementary’ S&T efforts, including one Navy-USAF project

Air Force Secretary Heather Wilson said this week the civilian heads of each service are looking at ways to approach science and technology efforts as a joint force, among other initiatives to become a more integrated and prepared military.

A big Navy services contract is getting a new look:

Analysts: SeaPort-e to Next Gen changes will better competition

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.

Raytheon names Brown to board
By Tony Bertuca
March 13, 2018 at 1:33 PM

Raytheon has selected Adriane Brown to serve on its board of directors, according to a company statement.

Brown was previously president and chief operating officer of Intellectual Ventures, LLC. Before that, she was senior vice president of energy strategy at Honeywell International Inc.

"Adriane is an accomplished executive who brings a wealth of business and technology expertise to our board," said Thomas Kennedy, Raytheon's chairman and CEO. "She has broad international experience across a variety of industries and we welcome her insights as we continue to position Raytheon as a global defense and cybersecurity leader."

Votel warns of Russian influence in Middle East
By Tony Bertuca
March 13, 2018 at 12:16 PM

Gen. Joseph Votel, chief of U.S. Central Command, said today that Russia plays the role of both “arsonist and firefighter” in the Middle East by fueling conflict in Syria and then posturing itself as a peacemaker.

“Moscow continues to advocate for alternate diplomatic initiatives to Western-led political negotiations in Syria and Afghan-led peace processes in Afghanistan, attempting to thwart the [United Nations'] role and limit the advance of American influence,” he said in written remarks for the Senate Armed Services Committee.

Votel said Moscow has also “exaggerated” the presence of the Islamic State of Iraq and the Syria in Afghanistan.

“While the Coalition and the Afghans are the only forces actively fighting ISIS there, Russia has used familiar propaganda techniques to brand ISIS’s presence as a U.S./NATO failure,” Votel said.

Russia is also trying to strengthen its ties to Iran, he said.

“Russia and Iran are both trying to bolster a brutal regime in Syria, limit U.S. military influence in Iraq and Afghanistan, and fracture the longstanding U.S.-Turkey strategic partnership,” he said.

Meanwhile, Defense Secretary Jim Mattis has crafted new a National Defense Strategy that returns the United States to “great power” competition with Russia and China.

The INSIDER daily digest -- March 12, 2018
By Thomas Duffy
March 12, 2018 at 2:38 PM

Today's INSIDER starts the week off with a look at how the Navy tries to balance technology development and speed of fielding, the Pentagon pulling the curtain around information that had been public, the Navy's LCS program, and a new review on space surveillance.

The Navy is working its way through introducing new technologies to the fleet:

Navy's integration approach balancing speed and capability

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.

The Army is putting money behind its cross-functional teams:

G-8: CFTs, modernization priorities to see major funding gains in FY-20

The Army's fiscal year 2019 budget submission includes some funding to support the work of the cross-functional teams pursuing modernization priorities, but more meaningful gains are slated for FY-20, according to the service's deputy chief of staff (G-8).

The Defense Department has decided to classify missile defense tests notifications:

Pentagon now classifying once-public test report on BMDS operational effectiveness

The Pentagon's top weapons tester -- citing operational security concerns -- has drawn the curtain on a key public report that characterizes the operational effectiveness, suitability and survivability of the Ballistic Missile Defense System, a $165 billion project to defend against North Korean and Iranian threats.

Two members of Congress are upset with the Navy:

Navy did not notify Congress of EA-18G physiological episode

The Navy never notified Congress of the most recent physiological episode where a pilot and crew member were exposed to freezing temperatures and were forced to land their EA-18G Growler using a smart watch.

A Navy official told Congress the LCS build plan supports the industrial base:

Navy acquisition executive: FY-19 LCS request will not 'threaten' frigate competition

Despite push back from Congress and industry, the Navy does not believe the fiscal year 2019 budget request, which calls for only one Littoral Combat Ship, will "threaten" the future frigate competition, according to the Navy's top acquisition official.

A new review of space capabilities is in the offing:

Air Force-MDA conducting review to produce 'fully integrated' FY-20 space surveillance plan

The Air Force and Missile Defense Agency are conducting a joint review of space capabilities with plans to provide the Office of the Secretary of Defense a coordinated fiscal year 2020 spending request that reflects agreed upon priorities of requirements and programs, according to a senior military officer.

Navy did not notify Congress of EA-18G physiological episode
By Lee Hudson
March 12, 2018 at 12:00 PM

The Navy never notified Congress of the most recent physiological episode where a pilot and crew member were exposed to freezing temperatures and were forced to land their EA-18G Growler using a smart watch.

The service made no mention of the episode March 7 during a House Armed Services tactical air and land force subcommittee hearing. The incident occurred Jan. 29 and was first reported by Defense News.

“We understand that after a failure of the aircraft’s environmental control system, the aircrew flew 60 miles with a -30 degree cockpit temperature and severely limited visibility,” according to a letter sent to the Navy last week by subcommittee Chairman Mike Turner (R-OH) and Ranking Member Niki Tsongas (D-MA). “We also understand that the pilots were able to land safely using a GPS wristwatch.”

Turner and Tsongas reiterate in the letter they are disappointed Navy officials did not provide an update during the subcommittee hearing.

“As members of the House Armed Services Committee we need to be reassured the Navy continues to treat mitigating PEs as a top priority,” the letter reads. “As such we expect to be kept updated regarding the results of the current mishap investigation related to the January 29th event.”

Navy acquisition executive: FY-19 LCS request will not 'threaten' frigate competition
By Justin Katz
March 12, 2018 at 11:08 AM

Despite push back from Congress and industry, the Navy does not believe the fiscal year 2019 budget request, which calls for only one Littoral Combat Ship, will "threaten" the future frigate competition, according to the Navy's top acquisition official.

Rear Adm. John Neagley, program executive officer for LCS, testified last year that three LCS ships per year is the "right level" from an efficiency standpoint.

"I don't believe [FY-19 request] will threaten the competition itself," Navy acquisition executive Hondo Geurts said at a March 6 House Armed Services seapower and projection forces subcommittee hearing. "But obviously not operating at optimal production rates will cause some concerns to workers and we'll have to spin that workforce back up as we make that transition."

Concern was raised at the hearing by Rep. Bradley Byrne (R-AL), whose home state of Alabama houses LCS builders Lockheed Martin and Austal USA.

The shipbuilders have also issued statements expressing concern about the request.

"Austal is efficiently delivering an average four ships per year to the Navy (two LCS and two Expeditionary Fast Transports)," the company previously told Inside Defense in a statement. "Any reduction in volume would negatively impact the shipbuilding industrial base, including our suppliers (local and national), as well as the ability to efficiently transition to Frigate."

Speaking to reporters after the hearing, Geurts said the LCS in the FY-19 request would be the 33rd ship and above the Navy's requirement.

"We did that knowing that's a little above our requirement, but that it was absolutely critical [to] make sure we had both those yards in a position where they could compete fairly for the frigate," he said. "We believe we're in that position."

Fordyce will run Elbit Systems DC office
By Thomas Duffy
March 12, 2018 at 10:59 AM

Elbit Systems of America, LLC, announced today that Ted Fordyce has been promoted to lead the company's Washington Operations office and serve as the company's principal representative in the greater Washington region.

Fordyce currently serves as vice president of government relations and has been with the company since 2015.

Among his new duties will be acting as the company's liaison to the White House, Congress, Defense Department, Department of Homeland Security and other executive and legislative offices.