The Insider

By Christopher J. Castelli
June 26, 2013 at 7:26 PM

Defense Secretary Chuck Hagel today threw cold water on the idea that the Pentagon might publicly detail the findings of its Strategic Choices and Management Review.

“There will be no roll-out of any grand plan on this,” Hagel told reporters.

He said he is still assessing the work of the review, which was set up to inform DOD’s fiscal guidance for fiscal years 2015 to 2019. The aim was to determine how to live with further sequestration in the event there is no alternative, Hagel said.

“So that's what it was about. This is not a plan. It was exactly what the title implies -- Strategic Choices and Management Review," he said.

The review involved DOD’s uniformed and civilian leaders and was managed by Deputy Defense Secretary Ashton Carter, working with Chairman of the Joint Chiefs of Staff Gen. Martin Dempsey. “They were right on time . . . with their numbers when they came in,” Hagel said.

“All of our uniformed and civilian leadership was involved, top to bottom, which I wanted,” he added. “We looked at everything. And based on those numbers, based on those assessments, based on those possibilities and different scenarios, then that will inform our leadership as to how we prepare for next year's budget as we present it in early 2014 for 2015.”

“But also, in the event that we're going to be living with sequestration, then . . . I can't do anything else, nor can the leadership, but try to get ahead of this and prepare,” Hagel added.

By Christopher J. Castelli
June 26, 2013 at 7:01 PM

President Obama will renominate Chairman of the Joint Chiefs of Staff Gen. Martin Dempsey and Vice Chairman of the Joint Chiefs of Staff Adm. James Winnefeld to continue serving in their positions for second two-year terms, Defense Secretary Chuck Hagel told reporters today.

"They're the right two leaders," Hagel said. "And the four months I've been here, they have been immensely helpful to me in every way. So I'm very proud of the president's announcement, and I'm very pleased that, with concurrence through the United States Senate, I will have the opportunity to work with these two distinguished leaders of our country for another two years, and I think America's very fortunate to have Gen. Dempsey and Adm. Winnefeld."

In a separate statement, Obama said he was proud to renominate the two "superb" senior officers. "These two distinguished military leaders have earned my trust and that of the American people," Obama said. "I am inspired by their dedicated service to our great nation and the example they set for our women and men in uniform. I urge the Senate to re-confirm these outstanding officers as swiftly as possible."

By John Liang
June 26, 2013 at 12:00 PM

Defense Procurement and Acquisition Policy Director Richard Ginman is looking for volunteers to round out the teams that will review the procurement functions of certain defense agencies.

Program Management Reviews "assess the effectiveness of the contracting function, analyse and assist in any problem areas, and identify noteworthy practices that may be beneficial to all organizations," Ginman writes in a June 21 memo. "The ultimate objective of these reviews is to enhance the performance of contracting personnel in contributing to the success of the agency."

Consequently, during fiscal year 2014, the Defense Information Systems Agency will be reviewed between Oct. 21 and Nov. 8, followed by the Defense Contract Management Agency from Jan. 27-Feb. 14, 2014; the Department of Defense Education Activity the following March 10-24; the Missile Defense Agency from April 28-May 16; the Defense Advanced Research Projects Agency from June 9-27; and the Defense Threat Reduction Agency from July 14-31, according to Ginman's memo.

Ginman wants agencies with contracting offices of 40 or more employees to identify at least two people and the smaller agencies one person to participate in the reviews:

There is much to be gained from participating in a review, both by the individuals who perform the review and your own organizations. Volunteers gain valuable insight into how other agencies deal with contracting issues. They exchange ideas with the agency being reviewed and the members of their team, and bring back new perspectives that may improve your operation or are beneficial as you prepare for a PMR.

By Jen Judson
June 25, 2013 at 8:03 PM

Senate authorizers want the Army secretary to provide them with a report on the service's Installation Command's long-term management plan for the Kwajalein Atoll in the South Pacific, according to the Senate Armed Services Committee's report accompanying its mark of the fiscal year 2014 defense authorization bill released June 24.

"Given the unique and important nature of test facilities at the Atoll and its remoteness," the committee wants a report no later than April 30, 2014 if the provision becomes law.

The committee acknowledged that the Army's Space and Missile Defense Command had signed a Memorandum of Understanding to have the service's Installation Command maintain infrastructure at the Kwajalein Atoll, noting, "the committee is pleased with bringing the expertise of the Installation Command to help manage certain aspects of the Atoll's infrastructure."

By John Liang
June 25, 2013 at 6:40 PM

Last week, InsideDefense.com reported that Beechcraft Corp. was calling on Congress to intervene in an Air Force acquisition decision that allows a foreign contractor to build a fleet of light-attack aircraft for the Afghan military, and to formally deny that company the right to produce more than the first batch of planes:

Following a failed bid protest that Beechcraft filed with the Government Accountability Office earlier this year, the company released a statement on June 13 that accused the service of investing its time and money in a "flawed acquisition process" and asked Congress to step in before its competitor could produce more planes.

The Air Force announced in February that it planned to award a $427.5 million Light Air Support (LAS) contract to Beechcraft's competition, Sierra Nevada Corp. and Embraer. Sierra Nevada is a United States company based in Nevada and Embraer is a Brazilian company.

"It is now time for Congress to step in and put an end to this flawed acquisition process and limit the purchase of the Brazilian aircraft to only that of the Afghanistan requirement covered by the first delivery order of the LAS contract," according to the company statement. The first delivery under the contract is due to take place in mid-2014.

Earlier today, GAO released a redacted version of its decision. Here's an excerpt:

Regarding the service life requirement, as discussed above, we disagree that the Air Force refused to accept Beechcraft's inspection and analysis of T-6 test data to meet the requirement. Rather the Air Force found that limits on extrapolation of the T-6 data were likely to delay achievement of MTC beyond 14 months, and result in flight limitations inconsistent with the [System Requirements Document].

We also have no basis to conclude that the agency engaged in unequal treatment or erred in its evaluation of the service life approach presented by Sierra Nevada. While Sierra Nevada -- like Beechcraft -- presented inspection of existing test data, Sierra Nevada's test data -- unlike Beechcraft's -- was "previously validated through full scale fatigue structural testing" at "the same weight." AR, Tab 3.36 at 45. Where the offerors' existing test data differed in material aspects one would expect the evaluation finding to be different.

By John Liang
June 25, 2013 at 6:04 PM

The program manager for the Naval Enterprise Networks office has been "relieved of his duties" due to an "improper relationship and unprofessional behavior," according to a Navy statement.

Enterprise Information Systems Program Executive Officer Victor Gavin relieved NEN program manager Navy Capt. Shawn Hendricks yesterday "due to a loss of confidence in his ability to lead," the statement reads.

Deputy Program Manager Philip Anderson will temporarily take over until Hendricks' replacement is identified, according to the service. Hendricks has been reassigned to Space and Naval Warfare Systems Command's Washington, DC, office while his case is processed.

The Naval Enterprise Networks Program Office manages the acquisition life cycle of the Navy's enterprise-wide information technology networks. "NEN's portfolio includes the legacy Navy Marine Corps Intranet (NMCI), the OCONUS Navy Enterprise Network (ONE-Net) and the Next Generation Enterprise Network (NGEN) contracting vehicle," the statement reads.

The Pentagon announced this week that the Navy had once again raised the NMCI program's contract ceiling by about $680 million, from $4.9 billion to $5.6 billion. As InsideDefense.com reported yesterday:

The modification adds an option to the Navy's contract with Hewlett-Packard Enterprise Services, extending the period of performance by two months, from April 2014 to June 2014, according to the contract announcement.

"The [continuity of services contract] ensures that the scope of NMCI IT services and performance levels delivered are sustained until the Next-Generation Enterprise Network is satisfactorily providing the replacement services," the statement reads.

This option would only be exercised if the government has not transitioned to the Next-Generation Enterprise Network. The estimated award date of the NGEN contracts for transport and enterprise services is this summer, and the NMCI contract ends on April 30, 2014.

By Gabe Starosta
June 24, 2013 at 7:14 PM

The Defense Department announced this afternoon that a Navy admiral will be nominated to succeed Air Force Gen. Robert Kehler as the head of U.S. Strategic Command. The nominee, Adm. Cecil Haney, is the commander of the U.S. Pacific Fleet based out of Pearl Harbor, HI, according to a DOD announcement.

Neither the Air Force nor STRATCOM, headquartered at Offutt Air Force Base,NE, have formally announced Kehler's retirement. Kehler has held the top job at STRATCOM since January 2011.

His replacement by a naval officer would leave just two combatant commands, U.S. Transportation Command and U.S. European Command, led by Air Force generals.

By John Liang
June 24, 2013 at 3:46 PM

The Pentagon recently released an updated doctrine document on the Defense Transportation System.

The June 6 document "provides joint doctrine for the planning, command and control, and employment of resources within the Defense Transportation System."

Changes to the document since it was last published in March 2003 include the following:

* Adds language on United States Transportation Command's (USTRANSCOM's) role as the Department of Defense (DOD) Distribution Process Owner.

* Introduces the Integrated Data Environment/Global Transportation Network Convergence as the designated DOD system for in-transit visibility.

* Reflects the correct name of USTRANSCOM's Army Service Component Command, the Military Surface Deployment and Distribution Command, and its new status as a major subordinate command of the US Army Materiel Command.

* Refines USTRANSCOM's roles and responsibilities for DOD Military Customs and Border Clearance Program (CBCP).

* Adds language on the Department of Homeland Security and its relationship to DOD.

* Expands descriptions of sealift transportation resource.

* Adds a section under land resources on continental US commercial resources.

* Adds a section under land resources on Defense Transportation Coordination Initiative.

* Expands a section under land resources on outside the continental US common-user land transportation.

* Expands the geographic combatant commander’s responsibilities in the theater resources section.

* Expands the description of each of the Service’s assets in the pre-positioning and forward stocking section.

* Adds a section addressing automated identification technology.

* Defines USTRANSCOM's responsibilities for DOD Military CBCP.

By Christopher J. Castelli
June 21, 2013 at 8:10 PM

The White House today announced that Jon Rymer, the inspector general of the Federal Deposit Insurance Corporation and a 33-year veteran of the active and Reserve components of the Army, would be nominated to become DOD's IG, filling a vacant position.

Rymer, a command sergeant major in the Army Reserve, has been the FDIC's IG since 2006. From May 2012 to January 2013, he was also the interim IG of the Securities and Exchange Commission. From 1997 to 2004, he was a director at the accounting firm KPMG LLP. He was executive vice president at Boatman's Bank of Arkansas from 1992 to 1997, and executive vice president at First American National Bank of Tennessee from 1981 to 1992.

Rymer serves on the Council of Inspectors General for Integrity and Efficiency as a member of the Executive Council and as audit committee chairman. He received a B.A. from the University of Tennessee and an M.B.A. from the University of Arkansas at Little Rock.

By Sebastian Sprenger
June 21, 2013 at 5:24 PM

Cooperation with Russia on missile defense remains a “priority” for the Obama administration, according to Frank Rose, the deputy assistant secretary of state for space and defense policy. During a remarks at the Capitol Hill Club this morning, Rose said the U.S. government hopes to convince Russia through said cooperation that American plans for interceptor sites in Eastern Europe pose no threat to Moscow's nuclear deterrent.

Rose's speech offered few clues about what exactly cooperation would entail. In fact, in addressing U.S. opposition to previous Russian proposals that would effectively erode Washington's decision-making authority, Rose spent more time discussing roadblocks than common ground.

Russian officials have proposed dividing up the defense of NATO countries between the two former Cold War enemies, a prospect that Rose said is incompatible with NATO's bedrock policy of a common defense. Rose also rejected what he said are "legal guarantees" demanded by Russia about some of America's missile defense capabilities and how they would be used.

The emerging Senate Armed Services Committee's fiscal year 2014 defense authorization bill seems to dovetail nicely with the Obama administration's decision-making calculus on the issue. One the one hand, a committee statement on the bill said it would be "in the national security interest to pursue efforts at missile defense cooperation with Russia that would enhance our security, particularly against missile threats from Iran." On the other hand, the same section reads that the bill would “prohibit” the transfer of  "sensitive missile defense information" that could compromise U.S. national security to the Russians.

By John Liang
June 21, 2013 at 4:55 PM

A new Government Accountability Office report finds that the Defense Department's "methods for estimating excess capacity outside of a congressionally authorized Base Realignment and Closure (BRAC) process have limitations."

According to the June 20 report:

Due in part to challenges DOD faces in reducing excess infrastructure, DOD's Support Infrastructure Management is on GAO's High Risk List of program areas vulnerable to fraud, waste, abuse, and mismanagement, or are most in need of transformation. Since 1988, DOD has relied on the BRAC process as a primary means of reducing excess infrastructure or capacity and realigning bases to meet changes in the size and structure of its forces. In 1998 and 2004, Congress required DOD to submit reports that, among other things, estimated the amount of DOD's excess capacity at that time. Also, in March 2012, DOD testified that it had about 20 percent excess capacity. The methods used to develop such preliminary excess capacity estimates differ from the data-intensive process -- supplemented by military judgment -- that DOD has used to formulate specific base closure and realignment recommendations. . . .

In commenting on a draft of this report, DOD stated that GAO had properly highlighted the limitations of its approach to estimating excess capacity and contrasted it with the method used to develop BRAC recommendations.

Additional military base closures are most likely not on the table in the near future.

Inside the Pentagon reported yesterday that Senate authorizers are resisting calls by the Obama administration and a group of bipartisan defense analysts to approve a round of military base closures, pitching instead a handful of program cuts -- many already decided by the Defense Department -- intended to chip away at the nation's "budget deficit problems," according to the panel. ITP further reports:

The Senate Armed Services Committee's stance is similar to that of its House counterpart, which earlier this month voted against the Pentagon's request for base realignment and closure proceedings to begin. That vote drew strong criticism from the White House, although it is unclear whether the Obama administration would follow through with a threat to veto the fiscal year 2014 defense authorization bill over congressional opposition to BRAC.

Administration officials have made the case that closing and realigning installations in the United States is one key prerequisite to weathering a budget crunch that threatens modernization and readiness. Fewer bases are needed because military end strength is slated to decline, their argument goes.

A statement on the Senate committee's FY-14 defense authorization bill, released late last week, says BRAC proceedings are "prohibited" until DOD submits a "formal review" of its military bases overseas. A popular argument in Congress against closing domestic bases is that installations abroad should be shuttered first to cut costs.

By Sebastian Sprenger
June 20, 2013 at 7:44 PM

A bilateral protocol for the new U.S.-Russian follow-on agreement to the cooperative threat reduction program, announced by President Obama earlier this week, reveals the kind of compromise Moscow and Washington leaders have struck on the previously thorny issue of liabilities.

According to the document, released by the State Department today, American personnel engaged in nonproliferation work under the new agreement are immune from prosecution by Russian authorities unless the Russians believe that those individuals willingly caused an accident "with intent to cause personal injury, loss of life, or damage."

In such a case, officials from both countries will hold "prompt consultations and attempt to achieve a mutual understanding" within 90 days of Russian notification. If a mutual understanding cannot be reached, immunity clauses covering the accused individuals would no longer apply, according to the protocol.

The protocol is applied "provisionally" beginning on June 17, 2013 and will enter into force once both countries have completed the necessary “internal procedures,” the document reads.

By Jen Judson
June 20, 2013 at 7:20 PM

Inside the Army reported on Monday that the Royal Thai Army planned to buy six LUH-72A Lakota helicopters that would be built on the same production line as the Army's Lakotas in Columbus, MS, marking the first foreign military sale of the aircraft.

The contract for the helicopters will cost Thailand an estimated $77 million, according to a Defense Security Cooperation Agency statement released today.

Official notification of the possible sale to Congress happened June 12, according to EADS North America spokesman Jamie Darcy.

"This proposed sale will contribute to Thailand's goal to upgrade and modernize its military forces with a new light utility helicopter capable of meeting requirements for rotary-wing transportation, while further enhancing greater interoperability between Thailand, the U.S., among other allies," the statement notes.

By John Liang
June 19, 2013 at 2:46 PM

The National Commission on the Structure of the Air Force plans to hold a meeting next week, according to a notice published in this morning's Federal Register:

Purpose of Meeting: The members of the Commission will hear testimony from individual witnesses and then will discuss the information presented at the hearings.

Agenda: Consultants, representatives from defense think tanks, and leadership from the National Governors Association are invited to speak at the public hearing and are asked to address matters pertaining to the U.S. Air Force, the Air National Guard, and the U.S. Air Force Reserve such as their study results and recommendations. These witnesses are also asked to address the evaluation factors under consideration by the Commission for a U.S. Air Force structure that -- (a) Meets current and anticipated requirements of the combatant commands; (b) achieves an appropriate balance between the regular and reserve components of the Air Force, taking advantage of the unique strengths and capabilities of each; (c) ensures that the regular and reserve components of the Air Force have the capacity needed to support current and anticipated homeland defense and disaster assistance missions in the United States; (d) provides for sufficient numbers of regular members of the Air Force to provide a base of trained personnel from which the personnel of the reserve components of the Air Force could be recruited; (e) maintains a peacetime rotation force to support operational tempo goals of 1:2 for regular members of the Air Forces and 1:5 for members of the reserve components of the Air Force; and (f) maximizes and appropriately balances affordability, efficiency, effectiveness, capability, and readiness. Individual Commissioners will also report their activities, information collection, and analyses to the full Commission.

The meeting will take place on June 26 from 8:00 a.m. to 5:00 p.m., according to the notice.

The expected changes to the service's force structure has lawmakers understandably worried. Inside the Air Force reported last week that a member of the Senate Armed Services Committee had drawn up an amendment to the panel's fiscal year 2014 defense authorization bill that would freeze some force structure changes proposed by the Air Force and already approved by Congress until next summer:

Sen. Roger Wicker (R-MS), the ranking member of the Senate Armed Services airland subcommittee, described the amendment during the subcommittee's brief mark-up session this morning. The amendment would prevent the "transfer, conveyance or divestment" of any Air Force intra-theater airlift assets until 120 days after the National Commission on the Structure of the Air Force submits its report to Congress.

That report is due next February, meaning that Wicker's proposal would stop the transfer or other adjustment of the service's C-130 and C-27 aircraft fleets until around June 2014.

Wicker voiced his displeasure with the way Congress approved the Air Force's total force plan (TFP), a revision to the service's original FY-13 budget request that recommended retiring hundreds of aircraft, during a House-Senate conference last year over the FY-13 Defense Authorization Act. The TFP reduced the number of aircraft recommended for retirement and attempted to bring new missions to units losing aircraft but still centered on doing away with or re-basing many legacy intra-theater aircraft.

"I remain deeply concerned about the fiscal year 2013 defense authorization conference decision made behind closed doors and without consultation of all conferees that enabled the Air Force to begin implementation of its total force plan," he said. "I'm convinced that some elements of the TFP were shortsighted and may adversely impact our intra-theater airlift capability."

By John Liang
June 18, 2013 at 4:07 PM

Just as the Obama administration is moving to ramp up military aid to Syrian rebels fighting the Assad regime, the Congressional Research Service has issued a pair of reports on the country:

CRS Report On Syria's Chemical Weapons

The June 14, 2013, Congressional Research Service report states that "U.S. policymakers and Congress may wish to review and discuss authorities, funding, forces, and scenarios in advance" regarding the neutralization of Syria's chemical weapons stockpile.

CRS Report On The Syrian Civil War

The June 14, 2013, Congressional Research Service report states that "the central question for policy makers remains how best to bring the conflict in Syria to a close before the crisis consigns the region to one of several destructive and destabilizing scenarios."

As always, thanks and kudos to Secrecy News for ferreting these reports out.