The Insider

By John Liang
August 1, 2011 at 6:20 PM

The Senate Intelligence Committee has approved its version of the fiscal year 2012 intelligence authorization bill by a 14-1 vote, the panel announced today.

The bill "provides new authorities to improve the operations and oversight of the intelligence community," according to a committee statement. "It also recommends substantial funding and personnel cuts to the [Obama] administration's request, while ensuring that the intelligence community has the necessary resources to conduct operations that are vital to our nation's security."

Panel Chairwoman Dianne Feinstein (D-CA) said in the statement that "as we approach the 10th anniversary of the attacks on 9/11, the intelligence community is stronger, more agile, and better prepared to identify and analyze the threats that confront our nation," adding: "This legislation provides the resources to maintain those capabilities and guidance on how the intelligence community must adjust to leaner budgets in the years ahead."

Vice Chairman Saxby Chambliss (R-GA) said the legislation "strikes the right balance: ensuring that our intelligence community has the resources to protect the country from persistent and varied threats while making targeted cuts that are necessary in this tight budgetary environment." Additionally, Chambliss said he is "also pleased that a number of provisions I offered to improve oversight of Guantanamo detainee transfers were included in the bill."

The unclassified part of the legislation includes the following provisions, according to the statement:

Provide new authorities allowing intelligence agencies to better protect against supply chain risk when procuring information technologies;

Allow defense intelligence agencies to become financially auditable by authorizing new accounts at the Department of Treasury;

Provide for equitable treatment for CIA officers killed or injured in the line of duty to that given to members of the U.S. military;

Strengthen congressional oversight over transfers of detainees from Guantanamo Bay;

Require the DNI to issue an unclassified report semiannually on the recidivism of detainees formerly held at Guantanamo Bay;

Require the Senate confirmation of the Director of the National Security Agency;

Synchronize the various sunset dates included in the Foreign Intelligence Surveillance Act of 1978 to June 1, 2015;

Make independent cost estimates for future intelligence community programs more accurate by including all associated program costs rather than just direct acquisition costs; and

Provide flexible personnel management authorities to the Director of National Intelligence to enhance his management of the intelligence community.

Last month, Inside the Pentagon reported that Defense Department officials are expected to meet with the director of national intelligence by early fall to recommend the best way to bolster management of intelligence, surveillance and reconnaissance for counterinsurgency operations. Further:

A Defense Science Board task force recently recommended that DNI create a "national intelligence manager" for counterinsurgency (COIN) intelligence surveillance and reconnaissance operations (ISR).

The DSB's report, dated February but released in May, focused on how DOD intelligence could best support counterinsurgency operations. The panel urged DNI to assume responsibility for COIN ISR (ITP, May 26, p1).

"It is the view of the task force that irregular warfare and insurgencies will continue to be an enduring challenge to regional stability and U.S. national security issues," the report states. "Emerging and enduring COIN issues need attention now."

The DSB report's authors are in the process of briefing DOD principles on the national intelligence manager (NIM) recommendation.

The source said those briefings were slated to wrap up in early August, ITP reported. After that, the DNI will make a final decision on how to handle the recommendation.

By John Liang
August 1, 2011 at 3:41 PM

The White House is finalizing draft legislation that will detail how the administration plans to create a single export licensing agency and a single export control list, Inside U.S. Trade reported on Friday. The effort is the third and final phase of the export-control reform process.

Michael Froman, deputy national security adviser for international economic affairs, said draft legislation that would spell out how to implement these changes is "nearly ready to go."

"We envision a single licensing agency, a merger of the two control lists and the consolidation of two of our export enforcement units, all of which has to be done through legislation," he said at a July 25 event on export control reform at the Hudson Institute. Further:

Brian Nilsson, the National Security Council's point person on export control reform, said the administration has been working on the legislation for the past year in consultation with Congress. However, he admitted there is still a lot of work to do in the current phase two of the reform initiative before the final phase would move forward.

"By looking at what we envision for phase three, it helps us make sure we didn't miss anything in phase one and two," he told reporters after the event.

Phase two of the reform initiative will involve the implementation of a process that will move thousands of items from the strict control of the U.S. Munitions List (USML) to comparatively less stringent Commerce Control List (CCL), where they will be eligible for more license exceptions and export to additional countries.

The administration is currently in the process of consulting with Congress on this issue because the transfer of items from one list to the other requires congressional notification under Section 38(f) of the Arms Export Control Act (AECA).

A July 15 proposed Commerce Department rule would create a framework for this to occur by describing where the former USML items would be located on the control list. This would mean the creation of a special "600 series" of Export Control Classifications Numbers (ECCNs) where these former USML products will be placed.

Some 600 series items will be restricted from using certain license exceptions (Inside U.S. Trade, July 22).

Nilsson explained that the administration has previewed to Congress the method through which it plans to start the transfer of USML items to the CCL, and said there was "some comfort level" from Congress in the "two rule" approach.

This two-rule approach involves using two simultaneous rules to describe what would be coming off the USML and how it would be placed on the CCL. The "first rule" would describe the revised USML category, showing a positive list of items that were found to still require control under the USML. Any items not listed in that positive list would be either decontrolled or transferred to the CCL.

The "second rule" would apply the July 15 Commerce proposal to provide a clear picture of how transferred items will be controlled by the CCL. This would consist of a "positive list . . . describing what will go under the Commerce Control List," Nilsson said.

By John Liang
July 29, 2011 at 6:30 PM

The Defense Department "does not yet have an overarching budget estimate for full-spectrum cyberspace operations including computer network attack, computer network exploitation, and classified funding," according to the Government Accountability Office.

In a just-released letter to House Armed Services emerging threats and capabilities subcommmittee Chairman Mac Thornberry (R-TX) and Ranking Member Jim Langevin (D-RI), GAO provides a "final briefing" on the Pentagon's cyber and information assurance budget for fiscal year 2012 and the future years defense program. Specifically:

During February and March 2011, DOD provided Congress with three different views of its cybersecurity budget estimates for fiscal year 2012 ($2.3 billion, $2.8 billion, and $3.2 billion, respectively) that included different elements of DOD's cybersecurity efforts. The three budget views are largely related to the Defense-wide Information Assurance Program and do not include all full-spectrum cyber operation costs, such as computer network exploitation and computer network attack, which are funded through classified programs from the national intelligence and military intelligence program budgets.

DOD's ability to develop an overarching budget estimate for full-spectrum cyberspace operations has been challenged by the absence of clear, agreed-upon departmentwide budget definitions and program elements for full-spectrum cyberspace operations and the absence of a central organization or a methodology for collecting and compiling budget information on cyberspace operations.

With regard to the first issue, DOD has defined some key cyber-related terms but it has not yet fully identified the specific types of operations and program elements that are associated with full-spectrum cyberspace operations for budgeting purposes. In the absence of such definitions, there are differing perspectives on the elements that constitute cyberspace operations in DOD. DOD's "Financial Management Regulation" established steps for budget submission requirements and for reporting information technology and information assurance programs to Congress, including identifying the activities that constitute information assurance. Although computer network defense is included in the list of information assurance activities, computer network attack and computer network exploitation, which are part of full-spectrum cyberspace operations, are not accounted for in this regulation. Concerning the second issue, DOD has operationally merged defensive and offensive cyberspace operations with the creation of U.S. Cyber Command in October 2010, but the department still does not have a designated focal point or methodology for collecting and compiling budget information on full-spectrum cyberspace operations across the department. U.S. Cyber Command has recognized that the department must incorporate integrated defensive and offensive cyberspace operations into all planning efforts.

Consequently, GAO recommends the defense secretary take the following actions to improve its "ability to develop and provide consistent and complete budget estimates for cyberspace operations across the department":

(1) Direct the Under Secretary of Defense for Policy, in coordination with the Chairman of the Joint Chiefs of Staff, U.S. Cyber Command, and other organizations as appropriate, to develop and document cyberspace-related definitions, including identifying specific activities and program elements, for purposes of budgeting for full-spectrum cyberspace operations, that will be used and accepted department-wide. They should also establish a time frame for completing these actions.

(2) Designate a single focal point to develop a methodology and provide a single, department-wide budget estimate and detailed spending data for full-spectrum cyberspace operations (to include computer network defense, attack, and exploitation), including unclassified funding as well as classified data from the military intelligence and national intelligence programs and any other programs, as appropriate.

Today's letter comes on the heels of a related GAO assessment released earlier this week, which stated that the Pentagon is in a global cyberspace crisis as foreign nations and hackers continue to exploit department networks to further their personal objectives, Inside the Air Force reported this morning. Further:

The auditors recommend that DOD more fully assess cyber-specific capability gaps and develop a plan for addressing them, according to the report released July 25. The GAO also recommends that DOD establish a time frame on whether to complete a separate joint cyberspace publication and one for updating the existing body of at least 16 joint publications.

U.S. Strategic Command (STRATCOM) has stated that DOD's cyber workforce is undersized and unprepared to meet the current threat, according to the GAO report.

"The Department of Defense (DOD) alone depends on 7 million computer devices, linked on over 10,000 networks with satellite gateways and commercial circuits that are composed of innumerable devices and components," the GAO report states. "The threat to DOD computer networks is thus substantial, and the potential for sabotage and destructing is present."

By John Liang
July 29, 2011 at 2:53 PM

A horse-bound cavalry charge combined with laser-guided bombs dominated the battle of Mazar-e Sharif, in northern Afghanistan, which pitted U.S. Special Forces and Afghan Northern Alliance guerrillas against the ruling Taliban in the months after the Sept. 11, 2001, terrorist attacks.

The Pentagon's Joint Electronic Library has released an unclassified DVD, produced by an Institute for Defense Analyses and Defense Advanced Research Project Agency team, that purports to outline the lessons learned from the battle. According to a page on the JEL website:

The victory at Mazar-e Sharif is legendary. In October 2001, Special Operations Forces (SOF) linked with the Northern Alliance, a 19th Century indigenous force on horseback, and directed precision weapons from the air to defeat the Taliban -- a seemingly undefeatable foe. The battle, hailed as "transformational" by Secretary of Defense Rumsfeld, was key to the coalition force victory in the north and ultimately Afghanistan. While many recall the image of American SOF fighting from the backs of Afghan horses, the project enhances our understanding of the various aspects of this novel campaign and provides important lessons as we transform to a future force. Two examples include: the interdependencies among the indigenous forces, SOF, air operations and other government agencies; and the power of small, adaptable units integrating joint/coalition capabilities. "Learning from the First Victory of the 21st Century: Mazar-e Sharif" provides those insights.

At the request of the General Franks, Combatant Commander, U.S. Central Command (USCENTCOM) an Institute for Defense Analyses (IDA)/Defense Advanced Research Project Agency (DARPA) team reconstructed selected events from the Campaign for Mazar-e Sharif to support historical analysis, leadership development and research and development. The result of that work provided a comparison of simulation technologies from ’73 Easting to those available for Mazar, an overview of the campaign and a methodology for experimentation.

General Schoomaker, Chief of Staff of the Army, asked that the material be consolidated into a DVD set to be used as an educational resource for leadership development. He felt that the lessons from Mazar were applicable to the NCO as well as the four star level.

The unclassified DVD was approved by the Army and includes multi-perspective reconstruction of the campaign and an archive of the reference materials. Its purpose: To serve as an educational resource for leader development as well as to support historical analysis and further research and development.

By John Liang
July 28, 2011 at 7:59 PM

Navy Adm. Jonathan Greenert appeared earlier today before the Senate Armed Services Committee to discuss his nomination to become the next chief of naval operations. In written responses to questions asked by the committee before the hearing, Greenert had this to say about what the "major challenges" confronting the next CNO would be:

The major focus of the next CNO must be to maintain current readiness and provide ready, capable forces; to define and deliver a relevant naval force for the future; and to ensure we continue to attract a motivated, high-quality and diverse force of Sailors and civilians. The CNO’s enduring leadership covenant is to take care of those who serve today, including our wounded, ill and injured, and their families. The overarching challenge remains balancing priorities in a fiscally-constrained environment.

When asked what plans he had for addressing those challenges, Greenert responded:

If confirmed, I will remain committed to war fighting readiness to ensure we remain agile, capable, and ready forward. I will continue to employ our Fleet Response Plan while seeking to re-establish a sustainable level of operations consistent with our force structure. We must adapt our deployment models to ensure the viability of both current and future readiness, which involves reaching the expected service lives of our ships and aircraft at reasonable cost.

In light of budget realities, our acquisition programs will face increasing pressure; therefore, it is more important than ever to meticulously review requirements throughout the acquisition process. We will stay in lockstep with the acquisition community and Joint partners and be willing to change, adapt, and re-scope to meet evolving threats. I intend to partner with the Commandant of the Marine Corps in establishing the finest naval force attainable within fiscal limits; a Naval Force ready to respond today to today's crises -- anytime, anywhere. I also plan to remain open, transparent and collaborative with our fellow Services and OSD in efforts to seek cost savings while ensuring our Navy remains strong, effective and relevant. Internal to Navy, we will continue ongoing efforts to eliminate redundant processes, overhead, and costly infrastructures, as well as identify and adopt business best practices as standards for all.

I intend to be unwavering in our obligation to take care of Sailors and their Families through sustained program oversight and support. They are the Navy’s foundation. Attracting and retaining a diverse, high-quality Total Force will require innovative ways to communicate with the youth of our nation. Once aboard, we will provide opportunities for individuals to rise as far as their talents and ambitions allow.

By Dan Dupont
July 28, 2011 at 1:49 PM

The National Guard Association of the United States, which believes it is closer than ever to its long-sought goal of a Guard seat on the Joint Chiefs of Staff, is not happy about the Pentagon's recent decision to choose an active-duty general, and not a Guard officer, to head a key command. According to NGAUS, it's one more piece of evidence backing its claim that the Guard Bureau needs more clout:

This week's nomination of an active-component Army general to lead U.S. Northern Command over two qualified National Guard officers underscores the need for National Guard empowerment at the Pentagon.

Lt. Gen. Charles H. Jacoby Jr., the nominee to head NORTHCOM, is obviously a talented officer deserving of a four-star command, and the Guard community looks forward to meeting him and working with him.

But he was selected over two senior Guard officers who are far more experienced with the NORTHCOM mission of coordinating the defense of the U.S. homeland.

Gen. Craig R. McKinley, the chief of the National Guard Bureau, is a former commander of the Continental U.S. North American Aerospace Defense Command. Lt. Gen. Frank J. Grass is currently the deputy commander at NORTHCOM. Obviously, both are thoroughly familiar with the Guard, which supplies the bulk of forces available to NORTHCOM. And both know first-hand the complexity of interagency collaboration, which is so vital to operations here at home.

For the last three years, Defense Department officials have spoken publicly of putting a National Guard officer at the helm of NORTHCOM. The reasons are obvious: Domestic operations are a uniquely Guard mission. But twice now, uniquely qualified Guard candidates have been passed over.

Much has changed in the U.S. military over the last few years. Unfortunately, much remains the same. The Guard may have more of a voice at the Pentagon, but a voice without a vote in final decisions is far too often a voice in the wilderness.

This is another Pentagon decision that shows why the National Guard needs both a seat and a vote at the table. The U.S. House of Representatives and 43 U.S. senators and counting all support legislation that would provide the NGB chief with both a seat and a vote.

By Thomas Duffy
July 27, 2011 at 8:22 PM

The Navy announced today that its next-generation shipboard network program completed critical design reviews for two competing systems being developed by Lockheed Martin and Northrop Grumman.

The service said completing the two reviews for the Consolidated Afloat Networks and Enterprise Services (CANES) program represents a "significant engineering milestone."

The Navy's statement continues:

The next step in the Engineering and Manufacturing Development (EMD) phase of the program is completion of a Test Readiness Review. This review will ensure that the CANES design is ready to proceed into formal Contractor System Integration Test prior to down-select to a single CANES design. The review will also assess test objectives, test methods and procedures, and scope of testing while verifying the traceability of testing to program requirements.

The CANES program has recently re-phased its programmatic schedule as a result of the fiscal year 2011 continuing resolution and Congressional marks. The continuing resolution resulted in an approximate five month schedule delay in the completion of the EMD phase of the contract. All major acquisition milestones are still achievable within the approved parameters established by the milestone decision authority in January 2011 and the first CANES installation on a fleet destroyer is planned for late in fiscal year 2012.

CANES is one of several Acquisition Category I programs in the Program Executive Office, Command, Control, Communications and Intelligence (PEO C4I) portfolio. CANES represents the consolidation and enhancement of five shipboard legacy network programs to provide the common computing environment infrastructure for command, control, intelligence and logistics applications.

By Tony Bertuca
July 26, 2011 at 2:42 PM

Army Chief of Staff Gen. Martin Dempsey, appearing before the Senate Armed Services Committee this morning for his confirmation hearing as the next chairman of the Joint Chiefs of Staff, says he would be open to having a larger role for the service chiefs in acquisition matters.

“It would be impossible for me to justify the current process,” Dempsey told Sen. John McCain (R-AZ). “We absolutely have to seek acquisition reform.”

Dempsey said it would be “reasonable to consider a different role for the four service chiefs in acquisition.”

He noted that service chiefs now mostly concern themselves with the requirements process whereas service secretaries are more responsible for acquisition.

Dempsey's statement came after McCain once again cited the Decker-Wagner Army acquisition study, which states that the service has spent approximately $3.8 billion a year in canceled programs since 2004. McCain has cited the shocking statistic numerous times in Senate hearings. Inside the Army first broke the Decker-Wagner story in February.

Just last week, McCain suggested that service chiefs should have a larger role in acquisition. In the July 21 confirmation hearing of Gen. Raymond Odierno, who is slated to replace Dempsey as Army chief, McCain asked, “Doesn't it have to be one of your highest priorities of trying to get this procurement situation under control, and wouldn't it be helpful if we gave legislative authority to the service chiefs to be more involved in the whole acquisition process?”

Odierno requested more time to answer the question and said he would get back to McCain, but promised -- if confirmed -- to work closely with Army Secretary John McHugh.

By Amanda Palleschi
July 25, 2011 at 6:28 PM

The Pentagon today launched a website highlighting the department's first official cybersecurity strategy.

The website seeks to explain the department's first official strategy for operating in cyberspace outlined by Deputy Secretary of Defense William Lynn and Vice Chairman of the Joint Chiefs of Staff at National Defense University on July 14.

The site includes news in cyber policy across several federal agencies and links to the individual services' cyber commands: the Navy's 10th Fleet, Air Force's 24th Cyber, Army Cyber, as well as U.S. Strategic Command.

"The new website is a tool to help explain and consolidate DOD's cybersecurity accomplishments and new way forward for military, intelligence and business operations in cyberspace," DOD spokeswoman Lt. Col. April Cunningham said in an email.

Additionally, the website is "designed to help users explore the five pillars of DOD's cyber strategy: treating cyberspace as an operational domain; employing new defense operating concepts; partnering with the public and private sector; building international partnerships; and leveraging talent and innovation," Cunningham added.

By John Liang
July 25, 2011 at 3:11 PM

A story published in Friday's New York Times highlights a "blast chimney" technology designed to vent an underbody explosive through a channel in the middle of a humvee and out the roof:

The Humvee fell out of favor in Iraq and Afghanistan as homemade bombs, the biggest killer of American troops, ripped through its light armor and turned it into a death trap.

But recent blast tests show that Humvees built with the new chimney could provide as much protection as some of the heavier, and more costly, mine-resistant vehicles that have replaced them in many uses.

And if the final tests go well, the invention could save billions in new vehicle costs and restore much of the maneuverability that the Army and the Marines have lacked in the rugged terrain in Afghanistan, military officials say. Engineers say the chimney, which rises through the passenger cabin, releases some of the explosive gases — traveling at twice the speed of a fighter jet — that have mangled and flipped many of the vehicles.

Inside the Army had the story on this earlier this month, however:

The Pentagon's chief weapons tester said earlier this year that he wanted to put the brakes on an effort to rush so-called "blast chimney" vehicle technology to the field in U.S. humvees this summer, stating in his initial assessment that the design failed to provide a significant boost in protection against improvised explosive devices and could expose a vehicle gunner to blast damage, according to an internal memo obtained by Inside the Army.

The chimney technology -- designed to vent an underbody explosive through a channel in the middle of the vehicle and out the roof -- is still in testing and is being offered as a potential solution to a planned humvee recapitalization program by AM General, the Defense Advanced Research Projects Agency and Hardwire LLC.

The Pentagon's director of operational test and evaluation, Michael Gilmore, questioned the push to field the technology in a February memo. At the time, the chimney had undergone three tests.

George Tunis, the chairman of Hardwire, said in a July 8 interview that content of the memo does not accurately reflect where the program is today. Tunis said he was unaware of the memo before being questioned about it by ITA, but was aware of the criticisms raised in it. "It is inaccurate and not current," he said.

But a Defense Department spokeswoman said July 8 that Gilmore has not updated his assessment of the chimney since February and is following test results as they become available.

"To date, DARPA has conducted three test events with the [blast mitigation system] installed on a High Mobility Multipurpose Wheeled Vehicle," Gilmore wrote in his Feb. 14 memo to acquisition executive Ashton Carter. "The data from these tests do not demonstrate Hardwire provides Mine Resistant Ambush Protected (MRAP) levels of protection. . . . Unresolved issues remain regarding the protection to crew provided by Hardwire against underbody attacks, as well as other ballistic threats, and the effects on operational effectiveness and suitability of Hardwire's increased weight and reduced space for mission equipment and passengers."

Gilmore also noted that it could not be determined if the humvee gunner would be protected by such a design. "The protection (if any) provided to the gunner is unknown because of a lack of instrumentation (the gunner stands in a position subject to the blast energy transmitted up the chimney)," he wrote.

Tunis, however, said Hardwire had since found a way to instrument the gunner area and asserted that the gunner was protected from the blast. He declined to lay out specific steps to that effect, citing sensitivities surrounding the issue.

"The gunner is not subjected to blast energy transmitted up the chimney," he said. "We use the standard instrumentation setup. The first three [did] not. It would be kind of silly to subject the gunner to blast energy."

In addition, Gilmore's memo noted that "these tests demonstrated the potential for a Hardwire-equipped HMMWV to meet the MRAP threshold for under wheel mine blasts, but did not provide sufficient data for conclusions to be reached regarding Hardwire's performance against the MRAP threshold for underbody blast."

Gilmore also noted that the design of the chimney-equipped vehicle was modified as the first three tests proceeded. "Data were insufficient to identify the particular aspect's of Hardwire's design that contribute most to blast mitigation (i.e. the chimney itself, the structural beam connecting floor and roof, or the underbody shovel plates)," he wrote.

In the memo, Gilmore warned Carter that he might be asked to authorize the purchases of long-lead items so the chimney could fielded this summer. Gilmore recommended that the chimney undergo at least nine more live-fire tests.

By Gabe Starosta
July 22, 2011 at 2:08 PM

The first production Joint Strike Fighters delivered by Lockheed Martin are flying Block 1 of the aircraft's software, and Block 2 lab testing began in June as anticipated, a Lockheed spokeswoman tells InsideDefense.com. Block 2 is set to begin flight testing near the end of 2011, according to Lockheed spokeswoman Laurie Quincy.

Inside the Air Force reported today that some of the F-35's internal sensors -- the radar and distributed aperture system built by Northrop Grumman -- are already conducting tests using Blocks 2, 3, and 4 of the aircraft's software in an effort to “reduce risk” going forward. Senior Defense Department officials, including the department's top weapons tester and program cost evaluator, have expressed concern with the JSF's software development in congressional testimony.

The following is the full statement provided to InsideDefense.com by Quincy:

Production aircraft are currently flying with Block 1 software. This software includes more than 6 million lines of code. Additionally, Mission Systems Block 2 software lab testing began in June. This block, which provides the Initial War fighting capabilities, incorporates datalinks, additional electronic warfare (EW) and radar sensor functions, and additional weapons. This software will enter flight testing in the fourth quarter of 2011 and will be delivered with LRIP 4 aircraft in the fourth quarter of 2012.

By John Liang
July 21, 2011 at 7:25 PM

Army Gen. Raymond Odierno, President Obama's choice to become the service's next chief of staff, appeared before the Senate Armed Services Committee this morning and answered questions from panel members about his plans for the Army. In his answers to "advance policy questions" submitted prior to the hearing, Odierno was asked what he thought would be the major challenges the next Army chief of staff would confront. His response:

In a potentially resource constrained environment, we must:

1) Continue to provide trained and ready forces to meet current wartime requirements and other world-wide contingencies;

2) Continue to reset the Army to meet future challenges;

3) Continue to adapt and develop a more effective and efficient force to meet our nation's future challenges;

4) Right-size the Army and sustain the All Volunteer Army by ensuring programs are in place to care for and develop our Soldiers and their families.

When asked what he would do to address those challenges, Odierno writes:

If confirmed, I will continue to work closely with Congress to address these challenges. We will continue to refine and update our training programs to ensure all our Soldiers are fully prepared to deploy to combat. We will continue to review our reset, force modernization and acquisition programs in order to more efficiently meet the needs and requirements of today and the future. I will work closely with the Secretary of Defense, the Secretary of the Army, and Combatant Commanders to identify the capabilities needed to provide depth and versatility to the Joint Force in order to provide more effective and flexible forces for employment. I will continue to adjust our leader development programs in order to develop thinking, adaptable decision makers necessary to operate in an increasingly complex and unpredictable environment. I will review our Soldier and family programs to ensure we are meeting their needs.

By John Liang
July 21, 2011 at 7:11 PM

A Government Accountability Office report released this afternoon has found quality problems across a host of Defense Department and NASA space and missile defense programs:

Quality is key to success in U.S. space and missile defense programs, but quality problems exist that have endangered entire missions along with less-visible problems leading to unnecessary repair, scrap, rework, and stoppage; long delays; and millions in cost growth. For space and missile defense acquisitions, GAO was asked to examine quality problems related to parts and manufacturing processes and materials across DOD and NASA. GAO assessed (1) the extent to which parts quality problems affect those agencies' space and missile defense programs; (2) causes of any problems; and (3) initiatives to prevent, detect, and mitigate parts quality problems. To accomplish this, GAO reviewed all 21 systems with mature designs and projected high costs: 5 DOD satellite systems, 4 DOD missile defense systems, and 12 NASA systems. GAO reviewed existing and planned efforts for preventing, detecting, and mitigating parts quality problems. Further, GAO reviewed regulations, directives, instructions, policies, and several studies, and interviewed senior headquarters and contractor officials.

Parts quality problems affected all 21 programs GAO reviewed at the Department of Defense (DOD) and National Aeronautics and Space Administration (NASA). In some cases they contributed to significant cost overruns and schedule delays. In most cases, problems were associated with electronic versus mechanical parts or materials. In several cases, parts problems discovered late in the development cycle had more significant cost and schedule consequences. For example, one problem cost a program at least $250 million and about a 2-year launch delay. The causes of parts quality problems GAO identified were poor workmanship, undocumented and untested manufacturing processes, poor control of those processes and materials and failure to prevent contamination, poor part design, design complexity, and an inattention to manufacturing risks. Ineffective supplier management also resulted in concerns about whether subcontractors and contractors met program requirements. Most programs GAO reviewed began before the agencies adopted new policies related to parts quality problems, and newer post-policy programs were not mature enough for parts problems to be apparent. Agencies and industry are now collecting and sharing information about potential problems, and developing guidance and criteria for testing parts, managing subcontractors, and mitigating problems, but it is too early to determine how much such collaborations have reduced parts quality problems since such data have not been historically collected. New efforts are collecting data on anomalies, but no mechanism exists to use those data to assess improvements. Significant barriers hinder efforts to address parts quality problems, such as broader acquisition management problems, workforce gaps, diffuse leadership in the national security space community, the government's decreasing influence on the electronic parts market, and an increase in counterfeiting of electronic parts. Given this, success will likely be limited without continued assessments of what works well and must be done. DOD and NASA should implement a mechanism for periodic assessment of the condition of parts quality problems in major space and missile defense programs with periodic reporting to Congress. DOD partially agreed with the recommendation and NASA agreed. DOD agreed to annually address all quality issues, to include parts quality.

By John Liang
July 20, 2011 at 7:26 PM

It may be a coincidence, or maybe not, but just days after Inside the Army spoke to a former service acquisition executive who called for making an internal study of the Army's buying process public, the service is hosting a roundtable session with reporters tomorrow to discuss its acquisition-reform efforts.

The meetup, featuring acting Army acquisition chief Heidi Shyu, is expected to cover the Army's response to that internal study. As Inside the Army reports this week:

Gil Decker, a former Army acquisition chief and the co-author of an internal study criticizing the Army's acquisition process, said last week that the service should make the review public, and he questioned whether recent high-level leadership turnover had caused a "hiccup" in implementing the study's recommendations.

"I feel, we all feel, they should publicize it," Decker said in a July 14 interview with Inside the Army, referring to a report he and former Army Materiel Command chief Gen. Lou Wagner were chartered to craft by Army Secretary John McHugh. "I mean, if they think it's a pile of crap, they should say so. They won't hurt our feelings. But if they say, 'No, this has got value; we've got to do some of these things,' we felt they should publicize it," Decker said.

"Because the Army needs some rational, honest, good publicity," he added.

The results of the Decker-Wagner report, first reported by ITA in February, caused a stir on Capitol Hill early this year, and Army officials have been asked about it at nearly every hearing before lawmakers since then. According to Decker, the study delivered 56 recommendations to improve the way service officials spend funds on anything from pistols to tanks. (The study also acknowledged being one of 80-some such efforts.)

The Decker-Wagner study stood out for the shock value of its arithmetic, delivering the news that the Army spends between $3.3 billion and $3.8 billion annually on programs that ultimately get canceled. "We tried to call a spade a spade, with the data to back it up," said Decker.

The service has never disputed the numbers.

After the story broke, service officials vowed to embrace the study and make the recommended changes. In a May hearing, McHugh called it "long overdue," singling out former Army Chief of Staff Gen. George Casey as the driving force behind its inception. The study's authors "came back with 76 recommendations, some of which were revelatory," McHugh told members of the Senate Appropriations defense subcommittee. Out of those, the Army had singled out 63 for implementation, he added.

But the service has remained silent over specifics, not even communicating its leanings to the study's authors, according to Decker. Service leaders also did not take up team members on their offer to assist in seeing the proposals through, Decker added, noting carefully that the Army is under no obligation to do so.

"So far we haven't been called on -- and that's not a criticism. It's their study. We're available . . . if they want us to come in and look at what they're doing," he said.

By Maggie Ybarra
July 20, 2011 at 3:42 PM

The Euro Hawk is en route to Manching, Germany, following a weather-related delay to its ferry flight plan.

Northrop Grumman officials said they were forced to move the Euro Hawk flight from its original departure date of July 18 to July 20. The aircraft, a Northrop-built variant of the RQ-4B Global Hawk that carries a European Aeronautic Defence and Space Co.-made signals intelligence (SIGINT) sensor package, departed from Edwards Air Force Base, CA, today at about 2 a.m. Pacific Standard Time, according to a Northrop spokeswoman. It is expected to touch down at Manching Air Base on Thursday, July 21 at approximately 10 a.m. Central European Summer Time.

The flight is part of the demonstrator aircraft's trial run while it undergoes an evaluation by the German government. Following the successful completion of that evaluation, the German government intends to procure a separate contract for the four Euro Hawk SIGNIT systems, which will cover four air vehicles and one complete set of ground stations, the Northrop spokeswoman said. The contract for those four Euro Hawks will be awarded following a system demonstration in Germany, she added.

German acquisition policy requires the purchase of the full-scale Euro Hawk demonstrator system before contracting for production systems, according to a Northrop spokeswoman who provided information on the acquisition in a July 13 email. German military officials spent last week hammering out the details of a Euro Hawk purchase that would net them the four additional aircraft over the next five or six years years, according to an industry source familiar with the program.

In 2007, the German defense ministry signed a contract for the development of the aircraft. That contract, valued at close to $550 million, was for the development, test and support of one Euro Hawk SIGINT mission system. The contract covers aircraft modifications, mission control and launch and recovery ground segments and the development and integration of a national SIGINT sensor suite, as well as flight test and logistics support, according to the spokeswoman.