The Insider

By Lee Hudson
May 2, 2013 at 3:44 PM

The Marine Corps helicopter squadron responsible for carrying the president has received its first MV-22 Osprey at Marine Corps Base Quantico, VA, according to a service statement.

Marine Helicopter Squadron One will be assigned a total of 12 Ospreys at Quantico. The MV-22s will conduct presidential support missions, carrying presidential support staff and news media representatives traveling with the president. However, Ospreys are not slated to carry the president.

V-22 fight operations at HMX-1 began on April 26, but flights carrying presidential support staff and media representatives will not begin until later this year.

By John Liang
May 2, 2013 at 2:49 PM

The Pentagon this past week released the quarterly report of the Special Inspector General for Afghanistan Reconstruction.

The April 30 report describes "two major oversight concerns," it states: "One relates to the decision to provide more reconstruction dollars through the Afghan national budget as 'direct assistance' and the other relates to security."

Over the past 11 years, the United States has spent nearly $93 billion "to build Afghan security forces, improve governance, and foster economic development in Afghanistan," according to the report.

The effort is "the most costly rebuilding of a single country in U.S. history," and "depends on the degree to which U.S. assistance can" do the following:

• build Afghan security forces capable of preventing extremists from re-establishing strongholds in Afghanistan

• strengthen the capacity of the Afghan government to hold credible presidential elections in 2014, peacefully transfer political power, and provide essential services through the rule of law

• develop the foundation for a viable economy despite anticipated reductions in foreign aid

• improve Afghan institutions’ ability to manage and account for U.S. and other donor funds delivered directly through the Afghan national budget.

View the full report.

By John Liang
May 1, 2013 at 7:03 PM

A new Standard & Poor's Ratings Services report released today finds that defense contractors face uncertain prospects:

The defense sector . . . will likely face greater turbulence amid weaker demand and the triggering of sequestration (significant, across-the-board budget cuts) in March 2013. Standard & Poor's expects the U.S. defense budget to be flat or decline in the next several years because of efforts to reduce the huge federal budget deficit, the wind-down of operations in Afghanistan, and proposed changes to U.S. military strategy. Austerity measures will similarly cut into European defense budgets.

Regarding those budget cuts, InsideDefense.com reported yesterday that Defense Secretary Chuck Hagel had met with senior Pentagon leaders responsible for drafting options to cut $500 billion from planned military spending over a decade, participating for the first time in a meeting of the Strategic Choices and Management Review he commissioned in March.

The group is due to complete its work next month. Further:

One of the scenarios under consideration, according to senior Pentagon officials, factors in the cuts over the next decade required by the 2011 Budget Control Act, which calls for cutting military spending by approximately $500 billion unless Congress and the White House agree on a long-term plan to reduce the deficit by $1.2 trillion.

During the one-hour meeting, at least one senior service official bluntly voiced concern that the process for considering how to reduce the Pentagon's spending plans is being driven by arbitrary budget cuts with no link to strategy, according to sources familiar with the closed-door proceedings.

View the full story

By Christopher J. Castelli
April 30, 2013 at 8:55 PM

Sen. John McCain (R-AZ) has sent Navy Secretary Ray Mabus a letter seeking answers about the service's 30-year shipbuilding plan. The April 26 letter questions the likelihood the Navy will be able to achieve its plan "given the steep drop in defense spending to include the current law impacting funding levels, known as sequestration."

McCain presses Mabus to answer six questions about the shipbuilding plan by May 3. Among other things, McCain wants to know when the Navy will get around to sending lawmakers the complete plan as opposed to a handful of chart excerpted from the plan. The senator's questions also touch on planned ship retirements, funding level assumptions for shipbuilding, construction costs and the potential for a "back-up plan" prepared in light of fiscal uncertainty.

"I have serious concerns with our shipbuilding plan and look forward to your timely response," writes McCain.

By John Liang
April 30, 2013 at 5:08 PM

Rep. Mike Turner (R-OH) and 15 other House Armed Services Committee members are urging House Appropriations defense subcommittee Chairman Bill Young (R-FL) to include $250 million in funding in the fiscal year 2014 defense spending bill for the East Coast missile defense site.

In a letter sent today, the lawmakers write:

Specifically, in light of the recent cancellation of the SM-3 Block IIB program, it is incumbent upon the Congress, in the absence of aggressive action by the President, to deploy an East Coast site to defend the United States from the rising threat of ballistic missile development from the Islamic Republic of Iran.

By John Liang
April 29, 2013 at 4:05 PM

A new Congressional Research Service report looks at the Defense Department's use of multiyear procurement and block buy contracting.

The April 25 report -- originally obtained by Secrecy News -- finds that potential issues for lawmakers "include whether to use MYP and BBC in the future more frequently, less frequently, or about as frequently as they are currently used, and whether to create a permanent statute to govern the use of BBC, analogous to the permanent statute that governs the use of MYP." Further:

Compared with estimated costs under annual contracting, estimated savings for programs being proposed for MYP have ranged from less than 5% to more than 15%, depending on the particulars of the program in question, with many estimates falling in the range of 5% to 10%. In practice, actual savings from using MYP rather than annual contracting can be difficult to observe or verify because of cost growth during the execution of the contract due to changes in the program independent of the use of MYP rather than annual contracting.

View the full report.

By Christopher J. Castelli
April 26, 2013 at 10:04 PM

Deborah Lee James, Science Applications International Corp.'s executive vice president for communications and government affairs, appears to be the frontrunner to succeed outgoing Air Force Secretary Michael Donley, two former senior service officials tell InsideDefense.com.

James' resume includes a decade of experience working as a staffer on the House Armed Services Committee -- where she focused on military personnel and NATO issues -- and a five-year stint as assistant secretary of defense for Reserve affairs.

"James has served in senior homeland and national security management, policy and program positions in government and the private sector for more than 25 years," her SAIC bio states. "Most recently at SAIC she was a business unit general manager for a team of 2,900 employees specializing in command, control, communications and computers as well as aviation support services for the U.S. military."

Defense Secretary Chuck Hagel today praised Donley. "Mike has been an invaluable adviser during my first two months as Secretary of Defense and has been an outstanding leader of the Air Force for nearly five years," Hagel said in a statement.

By John Liang
April 26, 2013 at 6:08 PM

Air Force Space Command chief Gen. William Shelton at a House hearing this week outlined the activities of the Joint Functional Component Command for Space.

The Joint Space Operations Center (JSpOC) "is the avenue through which JFCC SPACE commands and controls space forces and it is the epicenter of the space situational awareness mission," Shelton said in his prepared testimony, adding: "The JSpOC is also the means by which JFCC SPACE coordinates space situational awareness with other agencies." Further:

To support national security space operations in an increasingly challenged environment, the JSpOC collects and processes data from a worldwide network of radar and optical sensors, as well as a dedicated space surveillance satellite. Each day the JSpOC creates and disseminates over 200,000 sensor taskings, which result in nearly 500,000 observations for processing. JSpOC operators use this data to maintain a very accurate catalog for more than 23,000 objects and to perform over 1,000 satellite collision avoidance screenings daily. These operations form the basis of the United States' space situational awareness capability, which is then shared with other operators in the national security, civil and commercial sector of space operations.

InsideDefense.com reported earlier today that Defense Department leadership is reviewing internal procedures related to entering into lease agreements with Chinese satellite service providers, following the recent discovery that the United States has been leasing satellite services from a Chinese company:

Doug Loverro, deputy assistant secretary of defense for space policy, testified April 25 at a hearing of the House Armed Services strategic forces subcommittee that upon entering his current role about a month ago, he learned of DOD leases with a Chinese satellite service provider that were issued early last year through a joint urgent operational needs statement to support "warfighter needs."

"The warfighter needed [satellite communication] support in his area of operations. He went to the Defense Information Systems Agency to request that support," Loverro said.

Read the full story.

By John Liang
April 25, 2013 at 10:06 PM

House Armed Services Committee Chairman Buck McKeon (R-CA) has released his panel's mark-up schedule for the fiscal year 2014 defense authorization bill:

Wednesday, May 22, 2013

10:30 AM -- Subcommittee on Strategic Forces Mark-up (Room 2212)

12:00 PM -- Subcommittee on Intelligence, Emerging Threats and Capabilities Mark-up (Room 2118)

1:30 PM -- Subcommittee on Seapower and Projection Forces Mark-up (Room 2212)

3:30 PM -- Subcommittee on Military Personnel Mark-up (Room 2118)

Thursday, May 23, 2013

9:00 AM -- Subcommittee on Tactical Air and Land Forces Mark-up (Room 2118)

10:30 AM -- Subcommittee on Readiness Mark-up (Room 2212)

Wednesday, June 5, 2013

10:00 AM -- Full Committee Mark-up (Room 2118)

By John Liang
April 25, 2013 at 4:08 PM

Defense Secretary Chuck Hagel earlier today visited "an air base in Southwest Asia," where he met with troops and answered a question about how the Air Force will go about transitioning from Southwest Asia to the Pacific. According to the Pentagon transcript, this is what he said:

Well, the larger context of your question was regarding our rebalancing of our focus with our assets around the world.  As you noticed and noted in your comments, we are unwinding our -- our major combat presence in Afghanistan and we have unwound our presence in Iraq.  And we have made the assessment -- and I think correctly -- that -- and, by the way, these assessments are constantly changing based on the world, based on dangers, based on assets, based on interest, based on allies.  And so the world is not static; I don't have to remind any of you.  It changes hour to hour, minute to minute.

So our job in the Department of Defense, a leader's job, President Obama's job, all of your jobs, is to protect our country and to assure our interest in the world, and security is the anchor to that.  So that policy, as we rebalance our focus, has rebalanced more assets to the Asia Pacific, which I think is exactly right.

All our services, including the Air Force, will continue to have a very, very, very significant role in that.  How can it be otherwise?  We will -- we will shift in varying ways presence in operations, depending on what the threat is, depending on how we want to project power, and that is all part of a continual assessment.

So the Air Force in particular, the question you asked about, will continue to play an important role, if for no other reason than projection of power.  And I think where we want to continue to go -- Secretary Gates talked about this, Secretary Panetta talked about it -- is a flexible, agile military.

The threats are shifted.  Ten years ago, I don't think very many people in this room would have talked much about cyber warfare or -- or the cyber threat.  Even five years ago, it was a different world.  Obviously, non-state actors, Islamic fundamentalism, terrorists, the coordination of those terrorists, interests that go below the surface, these are not coming all or mainly from state threats, from nation-state threats.  Most of these threats are coming from non-state actors.

And so that is shifting not only our balance of assets, but our -- our strategic interests and the strategies that protect those strategic interests and the tactics then that employ those -- those strategies.  So our Air Force, our Navy, our Marines, our Army, Coast Guard, all remain -- will continue to remain vital parts of our security interests.

You may be spending more time in the Pacific.  Not a bad assignment.

By John Liang
April 24, 2013 at 7:49 PM

Air Force Lt. Gen. Christopher Bogdan, F-35 Lightning II program executive officer, this afternoon was on Capitol Hill for a Senate Armed Services airland subcommittee hearing on tactical aircraft programs.

In his prepared testimony, Bogdan had this to say about sequestration's impact on F-35 testing:

Furloughing my government civilians will have immediate negative consequences. As one example, due to the reduction in personnel and base operating support, my test and evaluation program will be reduced from currently operating on a six-day a week schedule with extended hours to one that will likely be limited to four days a week and only right hours a day.  I estimate that this could reduce the F-35 flight test program's productivity by nearly one-third, significantly slowing the program's forward momentum.

View his full testimony.

By John Liang
April 24, 2013 at 7:34 PM

The 8 percent funding cut brought about by sequestration is "not a death blow" for the Defense Advanced Research Projects Agency, but it has been "quite corrosive," according to DARPA Director Arati Prabhakar.

Speaking to reporters at the Pentagon this afternoon, Prabhakar said her agency has done its best to prioritize what efforts to scale back as a result of the sequestration cuts. But as a decade of two wars comes to an end, now is "a particularly important time" for the agency "to step back" and look at where DARPA needs to go in the future.

Prabhakar said her agency foresees three trends in the near future: An extended period where the United States will face a wide variety of different threats; new technologies will continue to play a role -- both for the United States and its potential adversaries; and fiscal constraints could portend a "fundamental shift" in how the United States allocates its national security resources.

DARPA will be looking to make systems more adaptable and will seek "ideas that can invert the cost equation," where adversaries are forced to spend more money on technology than the United States does, according to Prabhakar.

DARPA this afternoon released a 2013 framework document on "Driving Technological Surprise."

By Jen Judson
April 23, 2013 at 8:24 PM

Jim Thomas, the director of studies at the Center for Strategic and Budgetary Assessments, argues in a new essay -- published in the latest edition of Foreign Affairs -- that as the Defense Department shifts its attention to the Asia Pacific region, the Army can burnish its case for a greater role by focusing more on land-based missile systems and less on its ground expeditionary forces:

As the U.S. military's most labor-intensive force, the army is most affected by the rapid rise in personnel costs, which have shot up by nearly 50 percent over the past decade. Given these strategic and budgetary headwinds, the conventional wisdom holds that the army will bear the brunt of the defense cuts -- and that it will decline precipitously in relevance.

The conventional wisdom, however, will prevail only if the army fails to adapt to its changing circumstances. Since the 1990s, the United States' rivals have dramatically increased their capacity to deny Washington the ability to project military power into critical regions. To date, the air force and the navy have led the U.S. response. But the army should also contribute to this effort, most critically with land-based missile forces that can defend U.S. allies and hinder adversaries from projecting power themselves. The army should thus shift its focus away from traditional ground expeditionary forces -- mechanized armor, infantry, and short-range artillery -- and toward land-based missile systems stationed in critical regions. By doing so, it can retain its relevance in U.S. defense strategy.

By Maggie Ybarra
April 23, 2013 at 6:41 PM

The Air Force has hired a principal deputy assistant secretary for acquisition.

Air Force Secretary Michael Donley told reporters today that the service has chosen William LaPlante to fill a position that has been vacant since David Van Buren left the post in early 2012.

LaPlante brings with him a “broad range of experience” in intelligence, surveillance and reconnaissance, sensors and communications, Donley said. He also has Defense Science Board experience, Donley added.

LaPlante, who does missile defense work for MITRE Corporation, will start working for the Air Force on May 6, he said, adding,“We look forward to getting him on board."

Donley said he will retain service acquisition executive authority “for the time being.”

By John Liang
April 23, 2013 at 4:32 PM

The House Foreign Affairs Committee will hold a hearing tomorrow on export control reform.

In a committee statement issued this morning, panel Chairman Ed Royce (R-CA) said:

The U.S. has long maintained a system of strategic export controls, restricting the commercial export of both arms and "dual-use" items in order to advance our national security, foreign policy, and economic interests. Over the years, the system has become out of step with our own national security requirements, the pace of technological innovation, and the nature of the global economy. There is widespread agreement that our export control system needs fundamental reform. This hearing will examine the agenda for advancing export control reform, including implementation of current Obama Administration proposals and prospects for additional reforms in the future. The Committee, with broad jurisdiction over U.S. export controls, will seek to strike the right balance among U.S. national security, American jobs and economic growth, and the health of the defense industrial base.

In August 2009, President Obama directed a broad-based interagency review of the U.S. export control system, resulting in the Export Control Reform Initiative, according to the committee statement, which adds:

That plan took shape in April 2010 with a proposal to fundamentally restructure the system by ultimately creating a single export licensing agency, a single list of controlled items, a single information technology system, and a single export enforcement coordination agency. The goal of the reform effort is to better tailor U.S. export controls to our national security interests, while helping industry compete in a global military marketplace.

Witnesses scheduled include:

Thomas Kelly
Acting Assistant Secretary
Bureau of Political-Military Affairs
U.S. Department of State

Kevin Wolf
Assistant Secretary of Commerce for Export Administration
Bureau of Industry and Security
U.S. Department of Commerce

James Hursch
Director
Defense Technology Security Administration
U.S. Department of Defense

Inside the Pentagon reported last week that the Defense Department wants to more than double the funding for a pilot program designed to better harmonize the need for protecting critical technologies in American weapons while enabling their export to foreign governments, according to a DOD budget document.

The fiscal year 2014 budget request, submitted to Congress earlier this month, requests $3.8 million for the program that helps prepare warfighting systems for non-U.S. use, with nearly $19 million requested over the future years defense plan. ITP further reported:

More money is needed in FY-14 to expand the number of systems to be included in the Defense Exportability Features (DEF) pilot program, according to DOD. Defense officials will use the systems to "define and implement DEF 'best practice' program management, system engineering and program protection measures in the DOD acquisition process," according to the budget document.

The Pentagon is slated to determine later this fiscal year what programs to add to the pilot, DOD spokeswoman Maureen Schumann said.

The Pentagon had designated seven major defense acquisition programs in FY-12 and another eight programs in FY-13 to participate in the pilot, according to the budget documents.

"Early results of the DEF studies indicate there could be a significant return on [research, development, test and evaluation] investment from DEF through the economies of scale in production and sustainment from foreign sales," the Pentagon's budget overview states. "Increasing the sample size of MDAPs in the pilot program will provide us greater confidence in DEF prior to implementing DEF into acquisition policy."

Funds will be "replenished" through non-recurring cost recoupment in future foreign military sales cases, as well as cooperative programs memorandums of understanding or direct commercial sales contracts, the budget justification materials state.

Read the full story.