The Insider

Spending Marked
By John Liang
June 6, 2013 at 5:06 PM

The House Appropriations defense subcommittee yesterday in closed session marked up its version of the fiscal year 2014 military spending bill.

Here's the draft the appropriators worked on:

House Appropriations Defense Subcommittee's Draft FY-14 Defense Bill

In its fiscal year 2014 draft defense spending bill, released on June 4, 2013, the House Appropriations defense subcommittee wants to rescind $3 billion in funding previously allocated to Pentagon weapons-modernization accounts, cuts that would be imposed as part of a bill that would also trim the Pentagon's request for new weapons spending by $1.8 billion.

Hagel Praises Rice
By Christopher J. Castelli
June 5, 2013 at 8:39 PM

Defense Secretary Chuck Hagel issued a statement today strongly endorsing President Obama's selection of Susan Rice to be the new White House national security adviser. Hagel said he looks forward to working closely with Rice in her new role. "Susan Rice has been a very important leader on President Obama's national security team who has helped galvanize the international community to act on some of the toughest security challenges facing the United States," Hagel said. The defense secretary also praised Samantha Power, Obama's nominee to succeed Rice as United Nations ambassador. "She brings years of experience at the White House, in academia, and as a journalist to this critical position," he said.

Tom Donilon, who is resigning as national security adviser, deserves praise "for his strong leadership and tireless efforts," Hagel said. "For the past four and half years, both in my capacity as co-chairman of the President's Intelligence Advisory Board and now as secretary of defense, I have greatly valued Tom's intellect, skill, and dedication to an honest and open process that provides the president with the best advice on the toughest issues. I wish Tom and his family the very best for the future."

Late Report
By Jen Judson
June 3, 2013 at 8:25 PM

Back in January 2012, Inside the Army reported the Defense Department inspector general had concluded the Army should become the executive agent for non-standard rotary-wing aircraft for DOD -- this after finding that the military did not adequately manage the acquisition and support of these aircraft, according to a Jan. 5 summary of a report then marked "for official use only." As ITA reported at the time:

In reviewing the management of acquisition and support of NSRWA, the inspector general's office found improvements need to be made. According to the summary report, management of these rotary wing aircraft suffered because the NSRWA project management office, formed by the under secretary of defense for acquisition, technology and logistics, was set up as a temporary solution "without fully authorizing the project manager and his staff to make DOD-wide decisions." In addition, officials did not follow the formal acquisition process "even though [the NSRWA program] met the requirements of a major defense acquisition program," the report states.

Specifically, the report notes, the DOD officials could not produce a "comprehensive list" of all DOD-owned Russian Mi-17 helicopters. The officials could not identify total ownership costs and all planned requirements in support of these helicopters, the report stated.

The result of the inadequate management of these aircraft "may not have achieved the best value for the more than $1.6 billion NSRWA effort," according to the report, "and is at risk for inadequate management of the more than $1 billion in estimated future costs."

The inspector general's office recommends in the report that the NSRWA program be designated as a major defense acquisition program, acknowledging the program as a long-term effort. The report asks that acquisition documents be identified and developed and that all DOD procurement and support of these efforts be sent to one contracting command.

Almost 17 months after the release of the summary, the inspector general's office has released the full 56-page report.

EMARSS Flies
By Jen Judson
June 3, 2013 at 3:35 PM

The Army and Boeing flew the first of four Enhanced Medium Altitude Reconnaissance and Surveillance system aircraft on May 22 at a Beechcraft facility in Wichita, KS, according to a Boeing statement released today.

The aircraft flew for more than four hours “and completed all first-flight test objectives, including evaluation of aerodynamic handling qualities, aircraft systems performance, and autopilot functions,” the statement reads. It also touts related ground testing and a high-speed taxi.

The system is housed on a Beechcraft King Air 350ER.

Boeing's schedule for the delivery of the first four engineering and manufacturing development EMARSS aircraft has slipped by nearly a year. The last of the spy planes was to be delivered to the Army by Nov. 30, 2012. But by late last year, the program had fallen behind its 18-month schedule and experienced cost overruns, Lt. Col. Dean Hoffman, the service's EMARSS program manager, told Inside the Army last December.

The new schedule holds that the four spy planes should be delivered to the Army by September. The planes could be flying in Afghanistan in fiscal year 2014, before the planned drawdown of U.S. troops, according to Hoffman.

Going Global
By John Liang
May 31, 2013 at 4:06 PM

Former Pentagon acquisition chief Jacques Gansler and the University of Maryland's William Lucyshyn recently presented a paper at the Naval Postgraduate School's annual symposium on acquisition research.

In their paper, the two look at the impact of globalization on the U.S. defense industry:

Current U.S defense trade and industrial policy does not clearly address globalization or its implications. Instead, the current U.S. policy is the consolidation of numerous incremental changes, often contradictory in their aims. For example, the National Security Strategy seeks to open markets and increase military cooperation, while export controls and "buy American" laws inhibit the international trade in defense products (McLean, 2005). Furthermore, other factors such as International Traffic in Arms Regulations (ITAR) and export control laws disincentivize commercial firms from entering the defense market. When commercial technology has military applications, the State Department requires compliance with export control laws prior to exportation. These restrictions often make commercial firms think twice before entering the defense market, because their goods may be restricted in the commercial market. For example, in the construction of Boeing's new 787 Dreamliner, significant concern was raised over similar components that were also used in the Air Force’s B-2 Bomber (Gates, 2006). Finally, restrictions are not made for goods alone but can have an impact on the availability of labor as well. For example, restrictions on security clearances or visas for foreign nationals often make it difficult for U.S. firms to gain access to the best and brightest minds from around the world to work on highly technical fundamental research programs.

View the full paper here.

Paneling
By Christopher J. Castelli
May 30, 2013 at 8:47 PM

Former Rep. Jim Marshall (D-GA) has replaced former Rep. Norm Dicks (D-WA), a newly minted lobbyist, on the independent National Defense Panel that will oversee the Quadrennial Defense Review. Rep. Adam Smith (D-WA) initially tapped Dicks as one of his two nominees for the panel, but Dicks later recused himself due to his new role as a lobbyist at Van Ness Feldman, said Smith's spokesman, Michael Amato.

The United States Institute of Peace, where Marshall serves as president, issued a statement on the appointment earlier this month, but did not mention Dicks. The appointment also made headlines in Georgia.

New JIEDDO Chief?
By John Liang
May 30, 2013 at 8:29 PM

The Pentagon today announced the president's nominee to become the next prospective head of the Joint Improvised Explosive Device Defeat Organization: Army Lt. Gen. John Johnson, the commanding general of the Army component of U.S. forces in Korea.

If his nomination is approved by Congress, Johnson will face some existential issues, as Inside the Army reports this week:

Lawmakers want the defense secretary to provide a report to Congress on whether the Defense Department plans to kill or keep the Joint Improvised Explosive Device Defeat Organization.

The House Armed Services tactical air and land forces subcommittee, in its mark of the fiscal year 2014 authorization bill, included a provision requiring a report that includes an analysis of alternatives in determining JIEDDO's future plans.

If the defense secretary plans to discontinue JIEDDO, the report should describe how the Pentagon will integrate JIEDDO's major programs and capabilities "into other components with the Department of Defense" or discontinue them, the mark states. It was released last week. The report should also include "estimated costs to other components of the Department for any JIEDDO programs and capabilities that are reassigned to such components," it adds.

If the Pentagon decides to keep JIEDDO, the report should include a statement on the organization's mission and a description of its organizational structure, as well as the "lines of authority within the Department," the mark states. Information on JIEDDO's costs and "budgetary impacts related to implementing any changes to the mission of JIEDDO and its organizational structure" and personnel strength -- to include contractors -- should also be included, the proposed legislation says.

View the full story.

Lakota Lobbying
By John Liang
May 30, 2013 at 8:14 PM

Mississippi Gov. Phil Bryant (R), Sen. Roger Wicker (R) and Reps. Gregg Harper (R) and Alan Nunnelee (R) attended a rally today organized by EADS North America and American Eurocopter to call on Congress to restore funding for the Army's UH-72A Lakota helicopter in the fiscal year 2014 budget.

According to an EADS statement:

The rally took place at EADS North America's American Eurocopter facility in Columbus, Miss., where the Lakota is produced for use in a wide range of roles by the Army, Army National Guard and Navy. With a unit cost of just $5.5M, the Lakota has been cited by the U.S. Department of Defense as a model defense acquisition program and is one of the most successful, cost-effective rotary wing aircraft procurement programs in history.

Inside the Army reports this week that the service is circulating an information paper on Capitol Hill defending its decision to cut 31 Lakotas from its spending plans, asserting that its current helicopter fleet can meet all requirements and arguing that modifying the Lakota for combat missions would be risky and potentially costly:

The service had planned to buy 31 aircraft in fiscal year 2014 and 10 in FY-15. Budget justification documents issued on April 10, however, showed the service had decided to budget for just 10 more EADS-built Lakotas, all intended for the National Guard. The helicopters cut from the budget were intended for the active-duty force (Inside the Army, April 15).

"The Army determined that existing aircraft can meet all requirements. The documentation validating this reduced [aircraft] requirement is expected to be approved in FY-13," states the May 22 information paper.

Speaking at a Senate Armed Services airland subcommittee hearing earlier this month, Lt. Gen. James Barclay, the Army G-8, said the Lakotas were not needed for the active force because Black Hawks returning from theater can replace the Lakotas the active force was using within the continental United States.

An Army official familiar with the issue told ITA the impact of the cut will "not be that significant." The Lakotas cut from the future inventory were largely intended to support the Army at training centers, the official noted, and enough Army helicopters are already in the fleet to fulfill training missions.

Read the full story.

Defense Down Under
By John Liang
May 30, 2013 at 2:34 PM

The State Department issued a notice in today's Federal Register announcing the "effective date for previously published regulations implementing" the Defense Trade Cooperation Treaty between the United States and Australia.

That final rule, published on April 11, has been effective as of May 16, according to this morning's notice:

The rule (Public Notice 8270, 78 FR 21523), published on April 11, 2013, amends the International Traffic in Arms Regulations to implement the Treaty, and identifies via a supplement the defense articles and defense services that may not be exported pursuant to the Treaty. The Department of State indicated in the rule that it would become effective upon the entry into force of the Treaty, and that the Department of State would publish another rule announcing its effective date. The Treaty entered into force on May 16, 2013. Therefore, the rule is in effect as of that date. The Department's regulatory analyses with respect to this Rule were published at 78 FR 21523, and are hereby incorporated by reference.

On May 14, InsideDefense.com reported that the Pentagon had asked Congress for a five-year extension of a pilot program that allows the government to match defense industry investments in the tamper-proof features of critical weapon system components, and aims to facilitate foreign sales and additional revenue for U.S. companies:

On May 7, the Defense Department forwarded to Congress a second package of legislative proposals to be considered along with the Pentagon's fiscal year 2014 spending request. The package includes a request to extend the Defense Exportability Features (DEF) pilot program -- which began in FY-12 and is set to terminate at the end of FY-14 -- from FY-15 to FY-20.

The goal behind the pilot program is to identify major weapon programs with foreign military sales potential, and then take steps to develop and incorporate technology-protection devices, dial back select capabilities, and factor in system and software assurance during research and development to prepare variants of the system for use by non-U.S. forces.

"Given the complex nature of the technology and programs selected to be part of the Defense Exportability Features (DEF) Pilot Program, more time will be required to prove the benefit of the DEF pilot program," the legislative proposal states. "Time is required to allow selected DEF pilot programs to complete the development and production process with the features incorporated."

Australia is one of the countries interested in buying General Atomics' MQ-9 Reaper unmanned aircraft system, according to the story:

The armed version of the Predator system has played a high-profile role in the wars in Iraq and Afghanistan. The Defense Department sold a dozen MQ-9s -- built by General Atomics -- to the United Kingdom and Italy in 2007 and 2008; last year the Air Force responded to requests for MQ-9 pricing information from Australia, Germany and Turkey, according to a March 2012 Pentagon report on the program.

NGEN Delayed, Again
By Lee Hudson
May 29, 2013 at 5:41 PM

The Navy announced today it is delaying the contract award for the multibillion dollar Next-Generation Enterprise Network transport and enterprise services because the service has re-entered into discussions with bidders.

Rather than award the contract on May 31, as previously expected, the Navy will likely make the award on June 30, according to the service's statement.

In January, the Navy extended the award deadline from Feb. 12 to May 31, Inside the Navy reported.

“The Government has re-entered into discussions with those offerors determined to be within the competitive range,” today's statement reads. “In support of this re-entry into discussions, the Government is modifying its estimated contract award date . . . . Again, this update in no way implies that new offers/offerors are being solicited.”

Until the NGEN contract is signed and the land-based network comes online, the Navy has had to extend the life of the legacy Navy-Marine Corps Intranet via a continuity of services contract with Hewlett-Packard -- raising the cost of that contract by about $1.5 billion, ITN reported in September 2012.

The NGEN program, worth $5.4 billion, will securely connect 800,000 Marines, sailors and civilians. The contract is divided into two parts: enterprise services and transport services. The enterprise services portion makes up two-thirds of the contract with the transport services accounting for the other third. The program office could award two separate contracts or award one contract.

Reprogramming Denied
By John Liang
May 29, 2013 at 4:04 PM

Lawmakers have rejected a Feb. 1 Pentagon request to reprogram fiscal year 2012 funds to finance a new high-tech mechanical arm mounted on armored trucks, which is designed to rapidly clear airfields of unexploded ordnance. It's called "Recovery of Airbase Denied by Ordnance."

InsideDefense.com reported on the reprogramming request in March:

The document states that $5 million is needed to "support an urgent operational need for Air Force Central Command," validated in August by Air Combat Command, for "a vehicle that will rapidly provide Recovery of Airbase Denied by Ordnance (RADBO) with a stand-off laser, clearance blade, and extension arm."

The RADBO vehicle, according to the request, "will enhance the capabilities of teams called to mitigate unexploded ordnance and improvised explosive devices in support of overseas contingency operations." The Air Force would use the $5 million to complete the development of the vehicle's laser and integrate the RADBO capability on a Mine Resistant Ambush Protected vehicle, as well as to test the system during an operational utility evaluation, according to the budget document.

If approved, the reprogramming would boost FY-12 funding for the Air Force's Agile Combat Support program by more than 60 percent, to a total of $12.7 million. The goal behind the program is the development of helpful technologies to deploy to locations that may feature little more than a runway and water source. Such technologies could include systems to repair and stabilize runways, explosive ordnance disposal approaches and rescue and recovery aids.

View the final reprogramming request and read the rest of the story.

Boost-Phase Boosters
By John Liang
May 28, 2013 at 6:35 PM

While the Pentagon eliminated the Kinetic Energy Interceptor and Airborne Laser programs in fiscal year 2009, some House lawmakers don't want to let the notion of boost-phase missile defense go.

According to language included in the House Armed Services strategic forces subcommittee's portion of the fiscal year 2014 defense authorization bill, which was approved last week, the panel "notes that such an absence means the United States is currently not pursuing one of the three central layers of missile defense architecture."

The authorizers cite the National Academy of Sciences' findings in a 2012 report comparing boost-phase missile defense with other alternatives, "which concludes, by relying on its own 'notional data,' that boost-phase defense 'could be technically possible in some instances but operationally and economically impractical for almost all missions.'"

The thing is, that National Academies report recommended the Pentagon should halt investments in boost-phase missile defense systems and implement a new "evolutionary approach" to the Ground-Based Midcourse Defense system. As InsideDefense.com reported at the time:

The report, called for by Congress in 2008, states that boost-phase missile defense "is not practical or cost effective under real-world conditions for the foreseeable future" because intercept must take place before a threat booster reaches a threatening velocity. The authors stress that their study is focused solely on technical issues, not policy.

"Because of the short burn times of even long-range ballistic missile boosters, the interceptor launch platform cannot for its own survivability be so close to the territory of an adversary as to be vulnerable to the adversary's perimeter defense, but it must be close enough to the boost trajectory so that the interceptor can reach the threat missile before it reaches its desired velocity," the report states.

But that hasn't deterred lawmakers who still believe in the technology, despite the challenges.

"The committee is aware of the significant advantages, and the difficulties of intercepting a threat ballistic missile in the boost phase, including those articulated by the National Academy of Sciences report," the subcommittee legislative language approved last week states. The panel is calling on the head of the Missile Defense Agency "to provide a report to the the congressional defense committees by October 15, 2013, that assess the findings of the National Academy of Sciences study and the options that the director believes the Missile Defense Agency should consider in an analysis of alternatives or other study that could inform a boost phase missile defense program as part of the budget request for fiscal year 2015."

Launch Success
By Courtney Albon
May 25, 2013 at 2:59 PM

The Air Force last night successfully sent its fifth Wideband Global Satellite Communications spacecraft into orbit from Cape Canaveral Air Force Station, FL.

The Boeing-built satellite was launched on a United Launch Alliance (ULA) Delta IV rocket booster and was the first to fly since last October when the booster's upper stage RL10B engine, made by Pratt &Whitney Rocketdyne, malfunctioned during an Air Force mission. The satellite lifted off at 8:27 p.m., the first minute of its launch window.

In a statement released May 24, ULA’s vice president of mission operations, Jim Sponnick, praised the launch team for its work leading up to the launch, which was delayed twice in the past week.

“The team has worked tremendously hard and exceptionally well to complete a robust investigation and get us to a successful launch today,” Sponnick said. “We sincerely thank the [Pratt &Whitney Rocketdyne] team and our customer community for working with us throughout the investigation and flight clearance process, as well as the involvement from senior industry technical advisors.”

The WGS communications satellite constellation is operated by the Air Force and predominantly used by the Army. Over the next few months, WGS-5 will move through on-orbit testing to prepare it for operational use, which will ultimately be directed by the Air Force’s 3rd Space Operations Squadron at Schriever Air Force Base, CO. The satellite is expected to be operational by the end of this year.

Luke Scab, chief of the service’s wideband satellite communications division, said in a May 24 statement that the constellation is an important piece of the services military communications capabilities.

"WGS continues to meet user requirements and provides the highest capacity of any DoD communications satellite. . . ." Scab said in the statement. "This continued success is due to the hard work and dedication from the combined government and industry team."

Equipment Modernization
By John Liang
May 24, 2013 at 12:00 PM

The Army recently released its "Equipment Modernization Plan 2014," which "describes the Army Research, Development, and Acquisition (RDA) for ten capability portfolio areas and the Science and Technology portion of Fiscal Year 2014 (FY 14) President's Budget Request." Further:

The plan breaks down the RDA investments into ten capability portfolio areas, highlights the portfolio accomplishments over the last two years and provides intent for FY 14 investments as well as the way ahead. Dollars and quantities in this document do not reflect sequestration impacts.

In addition to capability portfolio investment strategies, the plan links RDA investments to Army Strategy and discusses specific modernization priorities and objectives, priority materiel programs, the Army's Science and Technology program, equipment fielding and distribution.

The Soldier and Squad are the foundation of our Army. Army equipment modernization builds from the Soldier out, equipping our Squads for tactical overmatch in all situations, connected to an integrated network, and operating in vehicles that improve mobility and lethality while preserving survivability.

The objective of Army equipment modernization is to develop and field versatile and tailorable equipment that is affordable, sustainable, cost-effective, enables our Soldiers to fight and win across the entire range of conflict. To achieve this objective the Army uses portfolio management to help ensure efficiencies and eliminate redundancies, evolutionary acquisition to ensure program risk is reduced by emphasizing mature technologies, and the Army readiness model to ensure the timely fielding of equipment.

View the plan here.

Inside the Army reported in March that the service had drafted a related equipment modernization strategy focused on developing "versatile, tailorable, yet affordable and cost-effective" capabilities for a time of fiscal austerity:

The document, first reported last week by InsideDefense.com, broadly outlines the service's goals for each of its equipment modernization portfolios for the next 35 years and is frank in its assessment of the current fiscal environment.

"We realize that the optimal strategy for developing capabilities includes steady funding and stable requirements, but the next decade does not provide us this opportunity," the strategy states. "Therefore, knowing that funding will be anything but stable and requirements will rapidly evolve based upon the threat and pace of innovation, we will seek to leverage existing government and commercial 'off the shelf' improvements, minimize development costs, invest in defense related disruptive technologies, make smaller but more frequent incremental procurements and always be prepared to 'scale-up' to meet the requirements to defeat an adversary when large scale mobilization is required."

The document was previewed last month when Lt. Gen. James Barclay, the Army's top budget programmer, said the service had crafted a new modernization strategy to account for billions of dollars in budget cuts over the next decade.

The main concepts in the strategy will be used in concert with the Army's 30-year plan being drafted by Heidi Shyu, the service's acquisition executive, to "provide the specifics of what will be modernized and when," the document states.

View the rest of that story here.

JSF's Price Tag
By Gabe Starosta
May 23, 2013 at 7:58 PM

The Defense Department's latest Selected Acquisition Report for the Joint Strike Fighter shows a $4.5 billion drop in the program's total price, to $391 billion, as of the end of 2012, according to press reports.

Those reports prompted prime contractor Lockheed Martin to release a statement touting the F-35 program's progress as reflected in the SAR:

Lockheed Martin is pleased with the $4.5 billion reduction in acquisition, operating and support costs reflected in the 2012 Selected Acquisition Report (SAR 12). This is the first year a cost reduction was noted. We will work with the F-35 Joint Program Office to implement further cost saving measures, which will result in additional significant decreases to the total program cost. The top priority of the government/contractor team is to continue to cost-effectively deliver the F-35's unprecedented 5th generation capabilities to the warfighter.