The Insider

By John Liang
January 23, 2024 at 1:55 PM

This Tuesday INSIDER Daily Digest has news on Lockheed Martin's deliveries of F-35 Joint Strike Fighters, the Missile Defense Agency's Next Generation Interceptor program and more.

Lockheed Martin's chief executive discussed his company's quarterly earnings this morning:

F-35s with TR-3 may be delivered even later, Lockheed CEO says

Lockheed Martin may not deliver F-35 Joint Strike Fighters enabled with Technology Refresh 3 until the third quarter of this calendar year, CEO Jim Taiclet said today.

Some missile defense news:

New law extends mandated oversight reporting of NGI program through production phase

The Missile Defense Agency must extend a statutory accountability checklist for the Next Generation Interceptor program that was originally designed to end with the technology development phase after Congress lengthened the mandated reporting regime through production.

Initial reports on new integrated air and missile defense for INDOPACOM due soon

The Pentagon has a new missile defense assignment: craft a comprehensive strategy for developing, acquiring and operationally establishing an integrated air and missile defense architecture for select locations across U.S. Indo-Pacific Command, a 100-million-square-mile region that constitutes more than 50% of the earth's surface.

In case you missed it, here's our deep dive into shipbuilders awaiting news on how much money Congress is going to appropriate for amphibious vessels:

Amphibious warship industrial base is 'underutilized' as LPD procurement pause drags on

With little certainty in the Pentagon's amphibious warship procurement plans, the builders and suppliers that produce these ships are holding their breath as they wait for Congress to complete fiscal year 2024 spending legislation and the Navy to provide a clear shipbuilding forecast.

The Air Force could be on track to finalize the KC-26A full critical design review by the end of the first quarter of this calendar year, or March:

Boeing sends KC-46A's RVS 2.0 critical design review to FAA for airworthiness approval

Boeing has completed the final step for the KC-46A's Remote Vision System 2.0 critical design review, sending the application over to the Federal Aviation Administration, a Boeing spokesperson told Inside Defense.

By Shelley K. Mesch
January 23, 2024 at 9:47 AM

RTX Chief Operating Officer Christopher Calio will step up as the company's CEO in May.

Calio will succeed current CEO Gregory Hayes, who will maintain his role as executive chairman, at RTX’s annual shareholder meeting on May 2, RTX announced last month and reiterated today during its year-end earnings call.

“I’ve worked with Chris for many years, and I can’t think of a better person to take on this role,” Hayes said during the call. “Chris has a deep understanding of our industry, our customers’ needs and our operation, and most importantly, he’s an outstanding leader.”

RTX also announced in the call that it expects this quarter to close the $1.3 billion sale of the Raytheon Cybersecurity, Intelligence and Services business. RTX announced the sale -- without naming the buyer -- in its third quarter results last year.

RTX also plans to sell its Collins Aerospace actuation and flight control business to France-based Safran Group for $1.8 billion. Safran has said it expects to close the sale by the end of June.

By Abby Shepherd
January 22, 2024 at 3:32 PM

Both the Navy and Marine Corps are seeking industry support to tackle a problem that is plaguing both services: countering unmanned aerial systems.

The Navy is seeking industry input on countering UAS -- specifically systems ranging from below 1,320 pounds to above 1,320 pounds -- according to a request for information posted Thursday.

The Program Executive Office for Integrated Warfare Systems 11.0 -- under Naval Sea Systems Command -- is looking for details such as key system performance parameters, operator and training requirements, current production rates and unit cost projections.

Specific requirements include, “mature systems that are in production and can be deployed in 1-6 months (preferred), or 6-12 months at the latest,” demonstrated performance against Group 3-5 UASs, and “minimal integration requirements with Naval combat systems; with independent, self-contained capability highly desirable,” according to the notice.

NAVSEA is asking interested parties to submit responses by Feb. 2.

In another posting, the Marine Corps plans to develop a modernized installation counter small unmanned aerial system (I-CsUAS) capability and is currently in the pre-solicitation phase for this technology.

“To address this capability gap, the Marine Corps intends to use advanced technologies incorporated throughout the full ‘kill chain’ to successfully detect, track, identify and defeat sUAS,” according to the posting. “This ‘kill chain’ will encompass integrated and networked sensor nodes along with the ability to protect the defended asset both non-kinetically and kinetically as laws and policy allow.”

A request for proposals will be released before the end of March, according to the posting.

“It is the intent of the government to process this procurement under [federal acquisition regulation 15], Contracting by Negotiation, and to ultimately award a single, hybrid, Firm Fixed Price/Cost Plus Fixed Fee, Indefinite Delivery/Indefinite Quantity (IDIQ) contract as a result of the forthcoming RFP,” the announcement continued. “This procurement will be conducted as a full and open competition.”

The upcoming RFP follows the issuance of an RFI, and an industry day held in July 2023. In August, Barbara Hamby -- spokesperson at the program executive office for land systems -- told Inside Defense that five I-CsUAS systems are currently deployed in the continental United States.

“The Marine Corps is undergoing the process of upgrading and replacing these systems, in addition to supporting other sites requiring CsUAS capabilities,” Hamby said.

By John Liang
January 22, 2024 at 1:44 PM

This Monday INSIDER Daily Digest has news on Navy amphibious ship funding, the Air Force's KC-46 airborne refueling tanker program, integrated air and missile defense in Europe and more.

We start off with a deep dive into shipbuilders awaiting news on how much money Congress is going to appropriate for amphibious vessels:

Amphibious warship industrial base is 'underutilized' as LPD procurement pause drags on

With little certainty in the Pentagon's amphibious warship procurement plans, the builders and suppliers that produce these ships are holding their breath as they wait for Congress to complete fiscal year 2024 spending legislation and the Navy to provide a clear shipbuilding forecast.

The Air Force could be on track to finalize the KC-26A full critical design review by the end of the first quarter of this calendar year, or March:

Boeing sends KC-46A's RVS 2.0 critical design review to FAA for airworthiness approval

Boeing has completed the final step for the KC-46A's Remote Vision System 2.0 critical design review, sending the application over to the Federal Aviation Administration, a Boeing spokesperson told Inside Defense.

The Fiscal Year 2024 National Defense Authorization Act includes a provision requiring the defense secretary in consultation with the commander of U.S. European Command as well as the Missile Defense Agency director to prepare a report that could lay the groundwork for potential enhancements to European integrated air and missile defense capabilities:

DOD to draw up options for 360-degree integrated air and missile defense of European sites

The Pentagon must think anew about missile defense in Europe, including how to defend against air and missile strikes from not only the east -- but also north, south and west -- and provide Congress a report this summer on options for adopting a 360-degree approach to address Russian threats emerging from all strategic directions.

The Sentinel ICBM program acquisition unit cost has climbed from $118 million in 2020 dollars to about $162 million:

Sentinel ICBMs to cost $162M each, more than 35% above baseline

Costs for the Sentinel intercontinental ballistic missile program grew at least 37% above the 2020 baseline, triggering a critical Nunn-McCurdy law breach, according to the Air Force.

The Microelectronics Commons was created to advance microelectronics production through regional innovation hubs, announcing their hubs in September 2023 and tasking them with conducting all related projects and proposals to bind industry, commercial and government technologies together:

Microelectronics Commons representatives to conduct Hub site visits

Representatives from the Defense Department, the Naval Surface Warfare Center and the National Security Technology Accelerator will conduct site visits from Jan. 22 to Feb. 9 to the various Microelectronics Commons Hubs located across the nation.

By Vanessa Montalbano
January 22, 2024 at 8:00 AM

The Air Force on Thursday awarded Lockheed Martin a roughly $65 million contract to produce three more of its Three-Dimensional Expeditionary Long-Range Radar units, according to the Defense Department.

This move is part of a series of modifications to the original contract, which was awarded in March 2022 and included options for 35 total radars. It brings the cumulative value of the contract to $260.6 million.

Work under the new contract is expected to be completed by the end of 2026 and will be performed in Liverpool, New York. The Air Force previously said initial operational capability, for 6 radars, would be achieved in fiscal year 2024.

The first two 3DELRR initial production units were procured through the original contract in 2022, and another four in January 2023.

Last August, the DOD inspector general found the Air Force did not properly use the rapid middle tier of acquisition (MTA) pathway for the program and that it moved on from prototyping to fielding too quickly. The report recommended that the Air Force request a waiver to extend the five-year timeline for rapid fielding to “return the time lost by transitioning to the rapid fielding path early.”

By Tony Bertuca
January 22, 2024 at 5:00 AM

Senior defense officials are scheduled to speak at several events this week.

Tuesday

The Senate Armed Services Committee will meet to consider several senior Pentagon nominations.

The Center for Strategic and International Studies hosts a U.S.-Vietnam conference to discuss "strategic security and cooperation" in Asia.

The National Defense Industrial Association hosts a discussion on directed-energy supply chains.

Wednesday

CSIS hosts a discussion on Air Force budget priorities.

The Heritage Foundation hosts a discussion on U.S. military readiness.

The Hudson Institute hosts a discussion on defense technology.

Thursday

The Hudson Institute hosts a discussion with Assistant Marine Corps Commandant Gen. Christopher Mahoney.

DefenseScoop hosts the Google Defense Forum.

The U.S. Space Force Association hosts a discussion with the chief of U.S. Space Operations Command.

By John Liang
January 19, 2024 at 2:16 PM

This Friday INSIDER Daily Digest has news on the Sentinel ICBM program suffering a cost breach, defense officials visiting the Microelectronics Commons Hubs across the country and more.

The Sentinel ICBM program acquisition unit cost has climbed from $118 million in 2020 dollars to about $162 million:

Sentinel ICBMs to cost $162M each, more than 35% above baseline

Costs for the Sentinel intercontinental ballistic missile program grew at least 37% above the 2020 baseline, triggering a critical Nunn-McCurdy law breach, according to the Air Force.

The Microelectronics Commons was created to advance microelectronics production through regional innovation hubs, announcing their hubs in September 2023 and tasking them with conducting all related projects and proposals to bind industry, commercial and government technologies together:

Microelectronics Commons representatives to conduct Hub site visits

Representatives from the Defense Department, the Naval Surface Warfare Center and the National Security Technology Accelerator will conduct site visits from Jan. 22 to Feb. 9 to the various Microelectronics Commons Hubs located across the nation.

House Select Committee on the Chinese Communist Party Chairman Mike Gallagher (R-WI) wrote to Navy Secretary Carlos Del Toro this week, expressing concern about the lack of a clear plan for storing and distributing fuel for U.S. forces operating across the Indo-Pacific:

Fuel storage solution in Indo-Pacific imperative, Gallagher says

A “viable, long-term” solution to fuel bases, ships and aircraft across the Western Pacific is imperative, Rep. Mike Gallagher (R-WI) said in a letter to Navy Secretary Carlos Del Toro Wednesday.

Document: Gallagher letter to Navy on Indo-Pacific fuel storage

Navy Comptroller Russell Rumbaugh spoke about the effects of the current continuing resolution during a virtual industry event this week:

Navy will be forced to make costly adjustments if spending legislation isn't passed soon, comptroller warns

If Congress doesn't pass fiscal year 2024 spending legislation soon, the Navy will have to "start taking actions" to adjust for funding misalignments that could amount to almost $30 billion if the current continuing resolution stretches to a full year, the service's comptroller warned this week.

The Pentagon's No. 2 civilian signed a classified memo last month that overwrites decades-old policy on classification for space-related efforts:

Hicks addresses space 'overclassification' problem in memo

Deputy Defense Secretary Kathleen Hicks recently signed a memo removing some classification barriers, which one top official said could help address classification roadblocks that are hindering collaboration on space throughout the department.

By Dan Schere
January 19, 2024 at 1:09 PM

Gen. James Rainey, the commanding general of Army Futures Command, this week urged the service to take a more agile approach to developing capabilities and decrease the amount of time it takes to test some systems.

Rainey, speaking at an event hosted by data firm Govini in Washington on Jan. 18, said defense contractors are capable of accelerating production when needed, as evidenced by the amount of weapons the United States has been sending to Ukraine since its war with Russia started nearly two years ago.

“If the president wants something to happen, contracting works really fast,” he said.

Rainey suggested there needs to be a better strategy for coordinating the development of unmanned systems across multiple portfolios, as opposed to having 10 different programs with UAVs, for example.

“Our commanders need a 24-hour [intelligence, surveillance and reconnaissance] capability that is attritable, that comes with a configurable payload,” he said.

Rainey added that the Army’s “testing enterprise needs to be reinvented,” meaning UAVs could be tested in a shorter period of time than manned helicopters, for example.

In areas such as UAS, artificial intelligence and human-machine integration, Rainey said “our quest for the aspirational is blinding us to the doable.” AI won’t do everything but could close significant gaps when it comes to “knowable information that we don’t know,” he said.

“We have got to dramatically increase the pace by which we’re adapting,” he said.

By Georgina DiNardo
January 19, 2024 at 12:28 PM

The Defense Business Board will hold open and closed meetings on Feb. 6 and Feb. 7 to receive briefings from senior Pentagon officials on a variety of topics.

The DBB, which aims to supply advice to DOD on reaching National Defense goals from an independent perspective, had the meeting notice published in the Federal Register.

The board will kick off its meetings with a closed session on Feb. 6 starting at 9:15 a.m. in which Deputy Defense Secretary Kathleen Hicks will lead a classified discussion about DOD’s budget.

“The discussion will cover the DOD priorities and considerations that helped to shape its request as part of the President's budget request for fiscal year 2025,” the notice said.

During this closed meeting, the board will also receive a classified discussion from Michael McCord, Pentagon comptroller, about DOD’s audit and incremental progress.

After a lunch break, the board will meet for its only open session from 12:30 p.m. to 1:15 p.m. where Stan Soloway, chair of the business transformation subcommittee, will present the board’s study about creating a digital ecosystem, according to the notice. Then, the subcommittee will brief the board on its findings, observations and suggestions obtained from the study, focusing on harnessing data to help with simulation and advanced computing decision-making and risk analysis to leverage digital ecosystems.

A closed session will happen afterwards where Sgt. Maj. Troy E. Black, senior enlisted adviser to the chairman of the Joint Chiefs of Staff, will lead a classified discussion about the state of the workforce, focusing on recruiting, training and retention issues and solutions.

“Discussion will focus on identifying obstacles such as changing workforce expectations, skill gaps to address future needs per the National Security Strategy and exploring innovative solutions to foster a resilient and high-performing workforce,” the notice said.

After, the board will have a classified discussion with Defense Secretary Lloyd Austin on DOD current affairs, which is expected to center on today’s global security environment and the how its implications affect business operations now and in the future.

Then Lt. Gen. Douglass Sims II, Army operations director, will provide a classified discussion on current operations relating to crisis action planning and adaptive decision making in dynamic environments.

The final closed session on Feb. 6 will kick off with remarks from Board Chair Deborah James and Hicks. Stefanie Tompkins, director for the Defense Advanced Research Projects Agency, will follow with a classified update on major DARPA updates that support the National Security Strategy.

The board will meet again the next day on Feb. 7 for another closed session, which will include a classified briefing from Richard Verma, deputy secretary of state for management and resources, on State Department business operations and management in support of current efforts.

“This discussion will focus on differences between DOD, DOS and business operations management, and DOD and DOS unity of effort to achieve combined effects both militarily and diplomatically,” the notice said.

Written comments from the public or interested organizations are allowed regarding the agenda or the Board’s mission. Comments must be received by Feb. 2 for Board consideration.

By Tony Bertuca
January 18, 2024 at 5:02 PM

The House, following the Senate’s lead, has voted 314-108 to pass a temporary spending measure that averts a partial government shutdown and extends federal funding to March 1 and March 8.

The measure, which funds the Defense Department through March 8, now heads to President Biden’s desk for his signature.

By Abby Shepherd
January 18, 2024 at 4:29 PM

Leading members of the House Armed Services Committee are calling for the continued procurement of two Virginia-class submarines per year in a letter to President Biden Wednesday.

The letter -- signed by House Armed Services Committee Chair Mike Rogers (R-AL), Ranking Member Adam Smith (D-WA), seapower and projection forces subcommittee Chair Trent Kelly (R-MS) and Ranking Member Joe Courtney (D-CT) -- referenced AUKUS and the Navy’s fiscal year 2024 30-Year Shipbuilding Plan, that outlined the Virginia-class goal.

“The AUKUS partnership relies on our nation to sustain a consistent build rate for attack submarines required to fulfill our obligation to successfully transfer, via sale, Virginia-class submarines to Australia while meeting our own force structure requirements,” the letter states. “It is imperative to maintain a steady two-per-year procurement rate to assure our partners in our ability to meet commitments and address concerns about our nation’s undersea capabilities.”

Increased submarine production in the U.S. in 2023 is “promising,” the letter adds, and notes Navy and congressional investments in the supply chain and workforce.

“That commitment has driven suppliers to make critical capital investments and expand capacity based on a predictable forecast in expected work,” the letter said. “It has also driven metal trades workers, designers, and engineers to choose shipbuilding as promising careers in record numbers.”

The FY-25 budget, expected in the coming months, will outline future steps regarding Virginia-class production.

“Any deviation from the planned cadence of the construction and procurement of two submarines per year will reverberate both at home and abroad, with allies and competitors alike,” the letter adds.

By Tony Bertuca
January 18, 2024 at 2:43 PM

The Senate has voted 77-18 to pass a stopgap continuing resolution that will temporarily extend funding for the federal government past tomorrow's midnight deadline through March 1 and March 8.

The two-tiered CR, which extends funding for the Defense Department through March 8, now advances to the House where Speaker Mike Johnson (R-LA) faces opposition from GOP hardliners, necessitating the support of congressional Democrats to pass the bill.

By John Liang
January 18, 2024 at 2:07 PM

This Thursday INSIDER Daily Digest has news on the effect of the continuing resolution on the Navy's budget, the classification of space-related efforts, the Air Force's top research areas and more.

Navy Comptroller Russell Rumbaugh spoke about the effects of the current continuing resolution during a virtual industry event this week:

Navy will be forced to make costly adjustments if spending legislation isn't passed soon, comptroller warns

If Congress doesn't pass fiscal year 2024 spending legislation soon, the Navy will have to "start taking actions" to adjust for funding misalignments that could amount to almost $30 billion if the current continuing resolution stretches to a full year, the service's comptroller warned Wednesday.

The Pentagon's No. 2 civilian signed a classified memo at the end of last year that overwrites decades-old policy on classification for space-related efforts:

Hicks addresses space 'overclassification' problem in memo

Deputy Defense Secretary Kathleen Hicks recently signed a memo removing some classification barriers, which one top official said could help address classification roadblocks that are hindering collaboration on space throughout the department.

In its 2024 Air Dominance broad agency announcement released this month, the Air Force Research Laboratory is asking for input into whether any companies are qualified to engineer or design several breakthrough technologies, from artificial intelligence to advanced missile propulsion devices:

Air Force reveals top research areas for this year

The Air Force is looking for industry partners to conduct research on 13 priority areas, mainly within the scope of munitions, according to a recently published market survey.

Document: AFRL's 2024 air dominance BAA

Northrop Grumman announced this week it would team up with Mitsubishi Electric Corp. for a joint missile defense effort, led by Masahiko Arai, group senior vice president of defense & space systems at Mitsubishi Electric Corp., and Northrop Grumman's Ian Reynolds, vice president of the C4 missile defense business unit in Huntsville, AL:

Northrop teams with Mitsubishi Electric in what appears to be first move toward IBCS Japan

A pair of U.S. and Japanese defense contractors announced a new teaming agreement to "collaborate" on integrated and missile defense capabilities for Japan's ground-based systems, in a move that could be a first step toward exporting to a Pacific ally the U.S. Army's new "game changing" Integrated Battle Command System.

Last but by no means least, here's the latest Cybersecurity Maturity Model Certification program news from our colleagues at Inside Cybersecurity:

Tech group looks to upcoming defense acquisition rulemaking for details on incorporating CMMC requirements into contracts

The Information Technology Industry Council anticipates details on incorporating acquisition requirements for contractors under the Pentagon's Cybersecurity Maturity Model Certification program will come in the next rulemaking for the initiative, which will focus on making changes to the Defense Department's acquisition regulations.

By John Liang
January 18, 2024 at 10:43 AM

Leidos this week announced it has hired Dan Antal to be the company's general counsel, effective April 1.

Antal, who currently serves as general counsel for Rolls-Royce Defense and North America, will succeed Jerry Howe, who announced his planned retirement from Leidos, according to a company statement.

Howe will continue as general counsel until March 31 and remain in an advisory capacity to ensure a smooth transition through March 15, 2025, Leidos said.

Before joining Rolls-Royce in 2021, Antal had a long career at Leidos in a variety of legal positions. His last position at Leidos was senior vice president, general counsel-Civil Group.

By John Liang
January 17, 2024 at 5:03 PM

This Wednesday INSIDER Daily Digest has news on a joint U.S.-Japanese missile defense project, the Pentagon's Cybersecurity Maturity Model Certification program, unmanned surface vessels participating in a number of exercises and more.

Northrop Grumman announced this week it would team up with Mitsubishi Electric Corp. for a joint missile defense effort, led by Masahiko Arai, group senior vice president of defense & space systems at Mitsubishi Electric Corp., and Northrop Grumman's Ian Reynolds, vice president of the C4 missile defense business unit in Huntsville, AL:

Northrop teams with Mitsubishi Electric in what appears to be first move toward IBCS Japan

A pair of U.S. and Japanese defense contractors announced a new teaming agreement to "collaborate" on integrated and missile defense capabilities for Japan's ground-based systems, in a move that could be a first step toward exporting to a Pacific ally the U.S. Army's new "game changing" Integrated Battle Command System.

The latest Cybersecurity Maturity Model Certification program news from our colleagues at Inside Cybersecurity:

Tech group looks to upcoming defense acquisition rulemaking for details on incorporating CMMC requirements into contracts

The Information Technology Industry Council anticipates details on incorporating acquisition requirements for contractors under the Pentagon's Cybersecurity Maturity Model Certification program will come in the next rulemaking for the initiative, which will focus on making changes to the Defense Department's acquisition regulations.

Unmanned surface vessels participated in the Navy Large Scale Exercise in August, as well as a Royal Australian Navy autonomous exercise in November:

Navy completes medium/large unmanned vessel exercise

After traveling nearly 50,000 nautical miles, four unmanned surface vessels returned to Naval Base Ventura County on Monday, marking the end to another Navy unmanned capabilities exercise.

A recent test of the Marine Air Defense Integrated System "subjected MADIS to actual battlefield scenarios, where it detected, tracked, identified and defeated unmanned aerial threats" using Stinger missiles and a 30mm cannon:

MADIS air defense system intercepts drone targets in live-fire test of LRIP unit

The Marine Corps has successfully test-fired a low-rate initial production model of the Marine Air Defense Integrated System, using MADIS to shoot down multiple drone targets during a December live-fire test held at the Army's Yuma Proving Ground in Arizona.

A new report issued this week by the Atlantic Council states the United States must face Russia's acute threat and the longer-term threat posed by China as this is the first time in history the U.S. is facing "two revisionist powers armed with nuclear capabilities and detrimental territorial ambitions":

Report urges DOD to adopt emerging technologies more quickly to counter Russia and China

A report released today from the Atlantic Council's Commission on Defense Innovation Adoption contends that the Defense Department needs to efficiently adopt emerging technology to deter China and Russia, citing steps the department should take to face challenges abroad.

The Tranche 2 Tracking Layer of the Proliferated Warfighter Space Architecture will be getting more satellites:

L3Harris, Lockheed and Sierra win $2.6 billion to make SDA Tranche 2 Tracking Layer satellites

The Space Development Agency announced today it awarded up to $2.6 billion to three vendors to produce 54 total satellites for the Tranche 2 Tracking Layer of the Proliferated Warfighter Space Architecture.