The Insider

Inside the Army highlights
By Courtney McBride
March 5, 2018 at 9:58 AM

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

1. Following delays in "characterization" of the non-developmental active protection systems for Bradley and Stryker, the effort would receive $42.3 million in fiscal year 2019 research, development, test and evaluation funding that was not planned for last year.

Full story: Iron Fist, Iron Curtain time lines adjusted from FY-19 request

2. The Army's effort to provide an interim short-range air defense capability to Europe is proceeding as planned, according to service officials.

Full story: M-SHORAD efforts progressing, but funding challenges persist

3. The Army's Rapid Equipping Force has been touted as a potential model for efforts to expedite acquisition, but its outgoing director highlighted the challenges inherent in that approach.

Full story: Retiring REF director warns against one-size-fits-all approach

4. House Armed Services Committee Chairman Mac Thornberry (R-TX) said Feb. 28 he is confident Congress will honor a bipartisan budget commitment to spend $716 billion on defense in fiscal year 2019, but added that lawmakers will likely grapple over a variety of "adjustments" in funding to specific programs, like shipbuilding.

Full story: Thornberry: Congress to make 'adjustments' to Trump's FY-19 defense budget

Inside the Navy highlights
By Lee Hudson
March 5, 2018 at 9:56 AM

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

1. The F-35 joint program office and Lockheed Martin will hold a "Consideration Summit" in a few months to discuss software deficiencies and make sure the government does not pay for the same product twice.

Full Story: JPO, Lockheed to meet this spring to discuss F-35 software deficiencies

2. The Navy is proposing a new three-year, consolidated contract to buy F/A-18E/F Super Hornet aircraft, a $3.7 billion deal that locks in orders through 2021, as a hedge against the F-35 Joint Strike Fighter taking longer than planned to be fielded.

Full Story: While waiting for F-35C, Navy seeks new $3.7B, three-year Super Hornet deal

3. An influential Republican senator unveiled legislation last week to improve the Navy's surface force readiness that includes language providing new authorities for the service's acquisition executive.

Full Story: Wicker bill aims to improve surface fleet readiness

The week ahead
By Tony Bertuca
March 5, 2018 at 5:15 AM

A slew of appearances by senior Pentagon and Capitol Hill officials are scheduled for this week at a variety of conferences and congressional hearings.

Monday

Booz Allen Hamilton executives are slated to present at a Raymond James conference in Orlando, FL.

Tuesday

The McAleese/Credit Suisse Defense Programs Conference begins in Washington featuring a variety of senior officials from the military and Capitol Hill.

The House Armed Services seapower and projection forces subcommittee holds a hearing on the Navy's fiscal year 2019 budget request.

The House Armed Services readiness subcommittee holds a hearing on Marine Corps readiness.

The Senate Armed Services Committee holds a hearing on worldwide threats.

The Senate Armed Services seapower subcommittee holds a hearing on Navy and Marine Corps aviation.

The House Armed Services Committee holds a hearing with the chief of U.S. Africa Command.

AeroVironment executives are set to discuss the company's quarterly earnings.

The Armed Forces Communications and Electronics Association's Army Signal Conference begins in Springfield, VA.

Wednesday

The Pentagon's Cloud Executive Steering Group hosts an industry day for the Joint Enterprise Defense Infrastructure Cloud.

The House Armed Services Committee holds a hearing on military service acquisition reform.

The House Armed Services tactical air and land subcommittee holds a hearing on the F-35 Joint Strike Fighter.

The House Armed Services strategic forces subcommittee holds a hearing on U.S. strategic forces posture and the FY-19 budget request.

The Senate Budget Committee will hold a hearing on the Pentagon's ongoing audit.

The National Defense Industrial Association begins its Cyber-Enabled Emerging Technologies Symposium in Tysons Corner, VA.

The House Appropriations defense subcommittee holds a hearing on the FY-19 Navy and Marine Corps budget.

Thursday

The House Armed Services Committee holds a hearing on mobility and U.S. Transportation Command posture.

The Senate Armed Services Committee holds a hearing with the chief of U.S. European Command.

NDIA holds its Expeditionary Warfare Division Annual Meeting in Arlington, VA.

Air Force to release FY-17 acquisition report soon
By Rachel Cohen
March 5, 2018 at 5:10 AM

The Air Force plans to release a report in the next few weeks detailing how its acquisition programs fared in 2017, service spokeswoman Ann Stefanek confirmed Friday.

At the Air Force Association's winter conference in Orlando, FL, service Secretary Heather Wilson told reporters Feb. 22 she asked for the program-by-program report. A follow-up study in a year could look at FY-18 acquisition as well, she said.

"One of the things we'll look at is other transactional authorities, experimentation, prototyping, speed to acquisition, all kinds of stuff," Wilson said.

Stefanek told Inside Defense March 2 the report would summarize major programs and highlight their priorities.

Since her confirmation last May, Wilson has announced multiple new deep-dives into Air Force processes, including a "zero-based review" that studies programs, budgets and manpower to decide how to craft the most cost-effective FY-20 program objective memorandum and future years defense program. Those recommendations are expected out in mid-March.

The Air Force is also working through a yearlong science-and-technology enterprise study to build deeper connections with industry and academia, assess how to maintain the service's technological advantage and where to invest research and development funds. Wilson described that plan at AFA's fall conference last year.

In-Q-Tel executive nominated for deputy research and engineering post
By Tony Bertuca
March 2, 2018 at 3:15 PM

Lisa Porter, who most recently served as executive vice president and director of In-Q-Tel Labs, has been nominated to be deputy under secretary of defense for research and engineering, according to a White House announcement.

Before joining In-Q-Tel Labs, Porter was the president of Teledyne Scientific & Imaging. Prior to that, she was the first director of the Intelligence Advanced Research Projects Activity in the Office of the Director of National Intelligence.

If confirmed, Porter would be deputy to former NASA chief Mike Griffin, who recently assumed his role as under secretary of defense for research and engineering.

The INSIDER daily digest -- March 2, 2018
By John Liang
March 2, 2018 at 2:18 PM

The Air Force's FY-19 unfunded priorities list, the Navy hedging its bets against the Joint Strike Fighter and more highlight this Friday INSIDER Daily Digest.

Inside Defense goes through the Air Force's FY-19 unfunded priorities list:

Air Force's $1.8 billion UFR would expand space, nuclear programs

The Air Force's $1.8 billion, fiscal year 2019 unfunded requirements list includes boosts for the service's space, nuclear and military construction portfolios, but its largest request is an additional $800 million for a classified program.

Document: Air Force's FY-19 unfunded priorities list


The Navy is putting forth a new three-year, $3.7 billion consolidated contract to buy Super Hornets as a hedge against the Joint Strike Fighter's fielding taking longer than planned:

While waiting for F-35C, Navy seeks new $3.7 billion, three-year Super Hornet deal

The Navy is proposing a new three-year, consolidated contract to buy F/A-18E/F Super Hornet aircraft, a $3.7 billion deal that locks in orders through 2021, as a hedge against the F-35 Joint Strike Fighter taking longer than planned to be fielded.

As in fiscal year 2018, the Air Force again seeks to hit maximum production levels for some munitions in FY-19, with an even greater boost projected for certain programs over the next five years:

Industry aims to streamline weapons production as quantities grow

Executives at the Air Force's top weapons suppliers say they are looking for new ways to streamline munitions production as demand grows and the service focuses on more advanced adversaries.

The head of Air Force Special Operations Command spoke recently at an industry event in Florida:

AFSOC chief says software patches resolving AC-130J gun issues

Air Force Special Operations Command patched software problems discovered with the AC-130J Ghostrider's 30 mm gun, which were described in the director of operational test and evaluation's latest annual report, according to the head of AFSOC.

AFSOC chief says service's focus on S&T could bode well for AC-130J laser

Air Force Special Operations Command chief Lt. Gen. Brad Webb is optimistic that service leaders' focus on science and technology will help propel an initiative to field a laser on the new AC-130J Ghostrider gunship, he told reporters at a recent conference.

In an interview with Inside Defense this week, a senior Forcepoint exec said he also sees opportunity to expand the company's work with critical infrastructure:

Chief of Forcepoint's governments unit seeks growth in critical infrastructure

The head of Forcepoint's global governments unit is seeking to grow the company's longstanding work in cross-domain and insider threat work, while also building its more traditional cybersecurity business in critical networks and other areas.

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The Defense Advanced Research Projects Agency recently organized a team to identify how DOD should approach modernization:

DARPA proposes 'mission-focused' approach for new modernization strategy

The Defense Advanced Research Projects Agency is briefing senior Defense Department leadership on its proposal for a modernization strategy focused on missions rather than capabilities, according to its director.

In April, the Air Force will obligate seed money from its FY-18 budget to establish a Stand-In Attack Weapon office at Eglin Air Force Base, FL:

Air Force creating new Stand-In Attack Weapon program, pledges $657M in new plan

The Air Force next month will stand up a program office for the Stand-In Attack Weapon as part of a new $657 million, five-year campaign to bolster the punch of the F-35 Joint Strike Fighter and B-21 bomber when operating in contested environments, giving the stealthy aircraft new armament to knock out sophisticated enemy air defenses.

Space operations center for coalition partners to open this summer
By Rachel Cohen
March 2, 2018 at 11:30 AM

The Air Force will open its Coalition Space Operations Center this summer at Vandenberg Air Force Base, CA, to complement the National Space Defense Center, a service official said at an Air Force Association event today.

Allies and partner countries can use the CSpOC as a forum to build joint space warfighting expertise even if their capabilities are less mature than those of the United States, according to Maj. Gen. Joseph Guastella, Air Force Space Command's director of integrated air, space, cyberspace and intelligence, surveillance and reconnaissance operations.

"We're using examples from warfighting in the air domain and we're bringing it to space," he said. "It's real, it's happening, OK, and that's something that we're very excited about."

U.S. Strategic Command Chief Gen. John Hyten announced the CSpOC initiative Dec. 2 at the Reagan National Defense Forum. Coalition partners cannot participate in the NSDC because it presents classified information from the intelligence community.

"The center will bring together our allies, the commercial sector and the intelligence community to create unity of effort in the space domain," spokeswoman Maj. Meghan Liemburg-Archer told Inside Defense last year.

Guastella also noted the Air Force has more work to do to improve classified information-sharing with its partners, among other interoperability challenges, but suggested organizations like the CSpOC are still valuable tools to enable a joint force.

Inside the Air Force highlights
By John Liang
March 2, 2018 at 10:12 AM

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

1. The head of the F-35 Joint Strike Fighter program told reporters this week that while negotiations with prime contractor Lockheed Martin for the next lot of low-rate initial production jets is progressing, he has been disappointed with a lack of collaboration with the company to significantly lower the aircraft's unit cost.

Full story: F-35 PEO: Lack of collaboration from Lockheed slowing Lot 11 negotiations

2. Officials at the Air Force's top weapons suppliers say they are looking for new ways to streamline munitions production as demand grows and the service focuses on more advanced adversaries.

Full story: Industry aims to streamline weapons production as quantities grow

3. A new small launch procurement line in the Air Force's fiscal year 2019 budget request may indicate the service is positioning itself to respond to anticipated growth in the small satellite market.

Full story: New small launch procurement effort shows USAF response to growing market

4. ORLANDO, FL -- Sikorsky is working toward the maiden flight of its HH-60W Combat Rescue Helicopter as it begins assembling the fleet's first aircraft in anticipation of the start of low-rate production in fiscal year 2019.

Full story: Sikorsky looks to first CRH flight this year with LRIP on tap

State approves Javelin missile sale to Ukraine
By Justin Doubleday
March 1, 2018 at 4:59 PM

The State Department has approved a sale of Javelin anti-tank missiles to Ukraine, marking the potential first sale of defensive weapons to Kiev since it began battling Russian-backed separatists in 2014.

The proposed sale is worth $47 million and involves 210 Javelin missiles and 37 Javelin command launch units, according to a March 1 statement from the Defense Security Cooperation Agency. The Raytheon/Lockheed Martin Javelin Joint Venture would be the prime contractor on the sale.

"This proposed sale will contribute to the foreign policy and national security of the United States by improving the security of Ukraine," DSCA states. "The Javelin system will help Ukraine build its long-term defense capacity to defend its sovereignty and territorial integrity in order to meet its national defense requirements."

Russia invaded Ukraine in 2014, annexing Crimea, and is charged by Western leaders with providing significant military support to rebels in the eastern part of the country.

Since the latter stages of the Obama administration, congressional defense authorizers have called on the United States to provide defensive lethal assistance to Ukraine.

In August, Defense Secretary Jim Mattis said he and Secretary of State Rex Tillerson were reviewing the issue of supplying Ukraine with lethal aide. Noting the United States had provided Ukraine with $750 million in non-lethal assistance since 2015, Mattis downplayed the idea that providing Ukraine with weapons like anti-tank missiles and anti-aircraft systems would damage relations with Russia.

"Defensive weapons are not provocative unless you're an aggressor, and, clearly, Ukraine is not an aggressor since it's their own territory where the fighting is happening," he said.

Vectrus, Engility report sales declines
By Marjorie Censer
March 1, 2018 at 4:54 PM

Vectrus said today its 2017 sales reached $1.1 billion, down about 6 percent from the prior year.

The contractor attributed the decline to "lower activity in our Middle East programs," including a $121 million reduction in a Kuwait contract and a $33 million decline in Afghanistan work.

However, Vectrus said it saw boosts in its European and U.S. work.

The contractor also reported 2017 profit of nearly $60 million, more than double the $24 million it recorded in 2016. Vectrus noted it received a significant boost from the recent tax legislation.

Meanwhile, Engility said today its sales in 2017 reached $1.9 billion, down about 7 percent from 2016.

The company recorded a $35 million loss for the year, more than the nearly $11 million loss it reported in 2016.

Engility said this year's loss included $80 million in tax expenses, including $60 million related to remeasuring the company's deferred tax assets following the new tax legislation.

Dugle named chair of Engility board
By Marjorie Censer
March 1, 2018 at 4:01 PM

Engility said today Lynn Dugle, the company's chief executive, has been elected chairwoman of its board of directors.

She takes over from Peter Marino and David Savner, who were co-chairs and will continue to serve on the board.

Dugle joined the board in February 2015, before becoming CEO in March 2016.

Navy seeks to spend $75M in FY-19 on Littoral Combat Ship oversight and management
By Lee Hudson
March 1, 2018 at 3:59 PM

The Navy set aside $75 million in its other procurement account in the fiscal year 2019 budget request for oversight and management of the Littoral Combat Ship program, according to a service spokeswoman.

"The 'Other' category costs are primarily 'fixed' costs associated with the LCS program as a whole, not attributable entirely to the procurement of one LCS in FY 2019," Navy spokeswoman Lt. Lauren Chatmas wrote in a statement to Inside Defense.

These efforts include design products for new construction and systems engineering management, acceptance test and evaluation, government integration, certification oversight, contract administration and acquisition reporting requirements, according to Chatmas.

The Navy budgeted for one LCS in FY-19, a move that has come under fire from Congress and industry as service officials previously advocated for funding three LCSs per year.

Rear Adm. Brian Luther, deputy assistant secretary of the Navy for budget, said last month the one LCS in FY-19 fulfills the service's 32-ship requirement. The ship is a "sufficient bridge" to the new guided missile frigate replacement program, he added.

Pentagon projects calm in face of Putin's nuclear weapons claims
By Tony Bertuca
March 1, 2018 at 3:56 PM

The Pentagon is unsurprised by Russian President Vladimir Putin's recent claims of new technological breakthroughs in nuclear weapons capabilities, according to a senior Defense Department official who discussed the government's latest Nuclear Posture Review in Washington today.

Under Secretary of Defense for Policy John Rood, who spoke at the Center for Strategic and International Studies, said Putin's state-of-the-nation speech Thursday night in Moscow was "noteworthy," but consistent with others in the past.

"I was not surprised by much of the content of that," he said. "While President Putin certainly gave a very full-throated explanation, there are elements of his comments that have been present for some time in different comments that he and others have made before. Nonetheless, it is concerning."

Dana White, the Defense Department's chief spokeswoman, delivered a similar message at the Pentagon.

"We're not surprised by the statements," she said. "The American people should rest assured we are fully prepared."

In his speech, Putin said Russia has new weapons including a nuclear-powered cruise missile, a nuclear-powered underwater drone and a new hypersonic missile unmatched by any nation in the world and render NATO missile defense efforts "useless."

Rood said the new National Security Strategy and National Defense Strategy are clear about entering the United States into an "era of great power competition" with Russia and China. Recommendations in the Nuclear Posture Review to develop low-yield, submarine-launched ballistic missiles and to reestablish a submarine-launched cruise missile program, he said, have been "animated" by Russia's nuclear posture.

"We're in an era of great power competition again," he said. "Our concern about Russia's capabilities, our concern about Russia's direction . . . predated President Putin's speech yesterday. It doesn't mean I welcome it, but I think it's broadly consistent with things that the Russian government's said in the past."

Some critics of the NPR worry that its SLBM and SLCM recommendations could spark a new arms race or increase the likelihood of miscalculation, but Rood said there is nothing in the Pentagon's plans that increases the number of U.S. nuclear weapons.

Referencing former Defense Secretary Ash Carter, Rood said: "If there is an arms race underway, the United States is clearly not a participant."

Marines request additional $236M for infrastructure improvements
By Lee Hudson
March 1, 2018 at 2:57 PM

The Marine Corps is seeking an additional $235.9 million for infrastructure improvements in its fiscal year 2019 unfunded priorities list.

The bulk of the request -- $71.7 million -- would fund an area mess hall and consolidated warehouse at Marine Corps Base Camp Pendleton, CA. Another $51.3 million would be set aside for the 2nd Radio Battalion Complex at Marine Corps Base Camp Lejeune, NC.

"Our Infrastructure Reset Strategy is focused on optimizing and modernizing our bases and stations," according to a letter accompanying the list from Marine Corps Commandant Gen. Robert Neller. "Its intent is to provide Marine Corps installations that are data-driven power projection platforms, capable of adapting ready training venues to the evolving operating environment while maintaining a high quality of life for our Marines, Sailors, and their families, all at an economically sustainable rate."

The INSIDER daily digest -- March 1, 2018
By John Liang
March 1, 2018 at 2:06 PM

Air Force small launch services, the Joint Strike Fighter and more highlight this Thursday INSIDER Daily Digest.

The Air Force's budget request includes $192 million across the future years defense program to buy small launch services through the Rocket Systems Launch Program:

New small launch procurement effort shows USAF response to growing market

A new small launch procurement line in the Air Force's fiscal year 2019 budget request may indicate the service is positioning itself to respond to anticipated growth in the small satellite market.

The F-35 joint program office and Lockheed have been negotiating the 11th low-rate initial production lot for about six months and the government is aiming to reduce the jet's unit cost:

F-35 PEO: Lack of collaboration from Lockheed slowing Lot 11 negotiations

The head of the F-35 Joint Strike Fighter program told reporters this week that while negotiations with prime contractor Lockheed Martin for the next lot of low-rate initial production jets is progressing, he has been disappointed with a lack of collaboration from the company to significantly lower the aircraft's unit cost.

The nominee tapped to lead U.S. Cyber Command and the National Security Agency testified before Congress this morning:

Nominee to lead CYBERCOM cites private-sector vulnerabilities as top threat

Cyber vulnerabilities among contractors in the defense industrial base pose a top threat to U.S. national security and require a new, "comprehensive" approach, according to the nominee tapped to lead U.S. Cyber Command and the National Security Agency.

Document: Senate CYBERCOM, NNSA nomination hearing


Eric DeMarco, Kratos' chief executive, says the divestiture of part of the company is intended to focus the contractor on high-tech defense products and systems, including drones, satellite communications and missile defense:

Kratos to sell public safety and security system integration business

Kratos Defense & Security Solutions said Wednesday it has agreed to sell its public safety and security system integration business for $69 million to Securitas Electronic Security.

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DARPA Director Steven Walker says while the Defense Department got a big boost for hypersonics technology development in its fiscal year 2019 budget, most of the dollars are going toward flight tests and developing operational prototypes:

DARPA director calls for national infrastructure plan for hypersonic technology

The head of the Defense Advanced Research Projects Agency wants a national infrastructure plan for hypersonic weapon testing, as he says China has nearly twice the number of facilities as the United States.

The Missile Defense Agency's FY-19 budget request notes that details about ballistic missile defense tests -- previously included as part of budget justification material provided to Congress -- are now only available in a classified document: the Integrated Master Test Plan:

DOD now treating missile defense flight test plans -- once public -- as classified

The Pentagon -- citing a need to "safeguard critical defense information" -- will no longer provide advance information about Ballistic Missile Defense System tests, a policy change that departs with a long-standing practice of routinely publishing both test schedules and test objectives.

Lawmakers will have to engage in some horsetrading if they want to increase funding for certain DOD programs:

Thornberry: Congress set to make 'adjustments' to Trump's FY-19 defense budget

House Armed Services Committee Chairman Mac Thornberry (R-TX) said yesterday he is confident Congress will honor a bipartisan budget commitment to spend $716 billion on defense in fiscal year 2019, but added that lawmakers will likely grapple over a variety of "adjustments" in funding to specific programs, like shipbuilding.

F-35 Program Executive Officer Vice Adm. Mat Winter said this week the Joint Strike Fighter's Block 3F deficiency database contains roughly 200 deficiencies:

Winter: JPO, Lockheed Martin will meet this spring to discuss F-35 software deficiencies

The F-35 joint program office and Lockheed Martin will hold a "Consideration Summit" in a few months to discuss software deficiencies and make sure the government does not pay for the same product twice.

The head of STRATCOM says MDA has a concept to develop a space-based sensor layer for tracking ballistic missiles in the midcourse phase of flight, but "we're struggling to get started with it":

Hyten: DOD taking 'way too long' to develop space-based sensor for missile defense

The Pentagon is moving too slowly in its pursuit of a space-based sensor system for missile defense, the head of U.S. Strategic Command argued today, as the Missile Defense Agency's latest budget forecasts plans to spend billions more on ground-based radars instead.

It's not clear whether the Air Force's Space Rapid Capabilities Office will be able to maintain the level of funding it's been receiving:

Budget boost for new space RCO not sustained across FYDP

The Air Force's Space Rapid Capabilities Office received a nearly $300 million increase in the service's fiscal year 2019 budget request, but, as one analyst pointed out this week, it's unclear whether that funding will be sustained in the coming years.