The Insider

SDA posts draft of Tranche 3 Tracking Layer solicitation
By Shelley K. Mesch
January 31, 2025 at 4:19 PM

The Space Development agency is seeking feedback on a draft solicitation for the next set of missile tracking satellites for the Proliferated Warfighter Space Architecture.

The Tranche 3 Tracking Layer constellation will include a minimum of 54 satellites in low-Earth orbit with missile warning/missile tracking and missile warning, tracking and defense infrared mission payloads, according to the draft posted today.

Vendors will be selected to build sets of 18 satellites in two orbital planes with ground support and operations and sustainment capabilities.

SDA’s goal with the constellation is to provide “near-continuous global stereoscopic coverage” for missile warning/missile tracking and for missile defense. The satellites will include on-orbit calibration capability, onboard processing of tracking data and minimization of solar outages.

Launches for the first set of satellites is planned for no later than March 31, 2029.

Tranche 1 Tracking Layer satellites are awaiting launch while Tranche 2 satellites are in development.

The INSIDER daily digest -- Jan. 31, 2025
By John Liang
January 31, 2025 at 3:00 PM

This Friday INSIDER Daily Digest has news on the Navy's Indo-Pacific infrastructure needs, Oshkosh's latest earnings and more.

We start off with more coverage from this week's West 2025 conference in San Diego:

Navy looks to industry for manning support in multibillion-dollar effort to upgrade Pacific infrastructure

SAN DIEGO -- The Navy needs industry's help to bridge manning and capability gaps as it embarks on a multibillion-dollar effort to restore critical Indo-Pacific infrastructure that will enable operational readiness and, if needed, support U.S. forces in a war with China.

Navy needs industry to innovate faster to respond to threats like those in Red Sea, official says

SAN DIEGO -- The Navy needs industry to innovate faster, in ways that will allow the service to respond to rapidly evolving threats like those demonstrated in the Red Sea over the past year, according to the deputy commander of U.S. Central Command.

(Read our full coverage.)

Senior Oshkosh executives discussed the company's latest earnings this week:

'Relatively flat' fourth quarter in defense sales for Oshkosh, but execs see growth down the line

Although defense sales for Oshkosh's fourth quarter of 2024 were "relatively flat" compared to the year before, officials touted strong growth ahead for its defense segment in an earnings call this morning, citing contract extensions, foreign demand and its new postal service vehicle.

The Senate Armed Services Committee held a hearing this week on defense innovation and acquisition reform:

Wicker seeks 'game changer' in latest round of DOD acquisition reform

Pentagon acquisition reform is a near-annual legislative priority that continues to enjoy bipartisan support in Congress, with the Senate Armed Services Committee holding a hearing on defense innovation this week that highlighted the broad agreement between Republicans, Democrats and defense company executives that the current system of development and procurement takes too long to compete with China.

Document: Senate hearing on defense innovation and acquisition reform

In a letter to the Pentagon, a group of industrial base organizations "question whether the decision to apply [certain] disclosure requirements to commercial products is truly in the [Defense] Department's best interest":

Contracting coalition urges Pentagon to drop commercial products from proposed foreign obligations disclosure rule

A coalition of industry groups who are part of the defense industrial base are pushing back against a proposed rule establishing requirements to disclose foreign obligations for commercial products under the Defense Department’s acquisition regulations.

Document: Contracting coalition's letter to DOD on COTS obligation rule

Navy seeks information from potential sources for remote minehunting module
By Abby Shepherd
January 31, 2025 at 1:43 PM

The Navy is seeking information from contractors interested in contributing to the service's remote minehunting module program, following an industry day last summer.

The notice requests the contractors explain how they will be able to provide hardware and support for RMH production, provide contract numbers and descriptions for similar work and contracts as well as describe how the company will be able to meet the required manufacturing capacity.

The sources-sought notice posted yesterday is not a request for proposals, the Navy clarifies, and a formal solicitation is not yet available. Answers to the notice are due 14 days after its posting.

The RMH system will be deployed from a mine countermeasure unmanned surface vehicle, and includes a towed body, minehunting payload delivery system, software and support and handling equipment, according to the notice.

Bottom, shallow water, close-tethered and volume mines should all be able to be detected, localized, classified and identified by the minehunting system, the notice adds.

Army solicits proposal from BAE for more AMPVs in three add-on production years
By Dominic Minadeo
January 31, 2025 at 12:30 PM

The Army wants BAE Systems to add 43 more Armored Multi-Purpose Vehicles per option year to its existing contract with the vendor, according to a Jan. 30 amendment to a previous request for proposals.

The RFP, published a year and a day before the amendment, Jan. 29, 2024, modified its full-rate production contract with BAE by adding “three additional option ordering years.” It originally asked for a maximum number of 197 vehicles per option year for a total of 591 AMPVs, which are designed to replace the M113. 

The service laid out its amendment in a letter published yesterday asking “for up to 240 vehicles per option year for a total of 720 AMPVs and associated kits and support” in those three additional option ordering years.

That would make for a potential total increase of 129 AMPVs for all three years. The minimum order per year remains unchanged, at 60 vehicles.

This comes as the Army has begun to chip away at the overall rise in AMPV costs caused by labor and material cost spikes from COVID-19 pandemic shutdowns and a decline in assumed production rates of the vehicle.

As those production rates have risen during full-rate production, in part because of the Ukraine supplemental, costs have started to go down, Ashley John, Army spokesperson for Ground Combat Systems, told Inside Defense earlier this month.

The Army asks that BAE submit a proposal and a pricing matrix based on the new request. It asks for the submission “as soon as possible,” but not later than April 30.

From there, the service will review the cost proposal and negotiate with the vendor, the letter says.

The INSIDER daily digest -- Jan. 30, 2025
By John Liang
January 30, 2025 at 2:35 PM

This Thursday INSIDER Daily Digest has news from the congressional hearing on the nomination of Dan Driscoll to be Army secretary, plus coverage from the West 2025 Conference and more.

We start off with coverage of the Senate Armed Services Committee's hearing on the nomination of Dan Driscoll to be Army secretary:

Army secretary nominee says service must look at directed energy for cUAS

Dan Driscoll, President Trump's nominee to be the next Army secretary, said during his confirmation hearing today that the service must look at directed energy as a potential cost-effective solution for countering drones.

Army sec nominee pledges to boost stockpiling and industrial base at confirmation hearing

One of the main challenges facing the Army is stockpiling, Dan Driscoll, the nominee to be the next service secretary, told senators today at his confirmation hearing before the Senate Armed Services Committee. Fixing it will be at the top of his list if confirmed.

What will it take to be the next Army secretary? Three former officeholders weigh in

Three former Army secretaries who spoke with Inside Defense this week say Dan Driscoll, President Trump's nominee to be Army secretary, could face a host of questions from senators as he goes through the confirmation process.

Document: Driscoll's nomination hearing APQs

News from Northrop Grumman's and General Dynamics' earnings calls this week:

Northrop Grumman sees opportunity in Trump's missile defense order

Northrop Grumman could put its hat in the ring for parts of President Trump's "Iron Dome for America" effort for domestic air defense, according to CEO Kathy Warden.

General Dynamics sees growth in combat systems, CEO calls for 'rational' Stryker funding

The growth in General Dynamics' combat systems profile in the last quarter of 2024 was driven by climbing demand for munitions and combat vehicles, a company official said during an earnings call this morning. But the company still needs more funding for Stryker combat vehicles.

The latest on the Pentagon's Cybersecurity Maturity Model Certification program from our colleagues at Inside Cybersecurity:

CMMC accreditation body outlines plan to address DOD IG report on authorizing C3PAOs

The accreditation body behind the Pentagon’s Cybersecurity Maturity Model Certification program is in the process of responding to findings from a Defense Department inspector general report on efforts to authorize certified third-party assessment organizations, according to Cyber AB CEO Matthew Travis.

Continuing coverage of the West 2025 conference in San Diego:

Marine Corps to deploy dismounted counter-UAS capabilities this year

SAN DIEGO -- The Marine Corps is working to rapidly develop new counter-drone capabilities to protect dismounted Marines from unmanned aerial threats, with plans to field a capability this calendar year, according to the commanding general of Marine Corps Combat Development Command.

Trump administration will 'put its stamp on' FY-26 budget, Navy and Congress expect

SAN DIEGO -- The Trump administration is expected to amend the Pentagon's fiscal year 2026 budget request before it is submitted to Congress, likely increasing both topline spending levels and funding for shipbuilding programs, according to a House member and Navy official.

Carrier strike group leaders push claims of capability for future fight amid doubts of viability for modern warfare

SAN DIEGO -- Following an eventful year for carrier aviation -- particularly in the Red Sea -- top Navy officials today pushed back against recent criticism that carriers may not be prepared for the future fight, or survivable against modern warfare.

(Read our full coverage.)

In a letter to Elon Musk, the billionaire entrepreneur heading the Department of Government Efficiency project, Sen. Elizabeth Warren (D-MA) proffers a list of Defense Department practices that could potentially save billions of dollars if done away with:

Warren points DOGE to Pentagon 'wasteful' practices that could harvest hundreds of billions

The long-standing Pentagon practice of generating massive spending wish lists that target projects for funding above and beyond the formal Defense Department budget proposal proffered by the president should be targeted for elimination by the Trump administration's Department of Government Efficiency -- to harvest about $30 billion annually, according to a senator.

Document: Warren letter to DOGE on DOD budget savings

Updated Navy instruction for Operations in the Information Environment expected this spring
By Abby Shepherd
January 29, 2025 at 7:13 PM

SAN DIEGO -- A new Navy instruction for Operations in the Information Environment (OIE) is expected to be released this spring, a Navy official said today.

This follows the debut of OIE’s formal definition in December, a method which uses public messaging and military operations to shape adversary attitudes, beliefs and behaviors. These methods are meant to deter the threat and achieve a warfighting advantage, according to the Navy.

“I expect we will be releasing a new Navy instruction for OIE this spring to replace the 2013 Information Operations instruction and to drive Navy doctrine and Navy tactics, techniques and procedures in this space,” Rear Adm. Charles M. Brown said today at the West 2025 conference.

Brown is the director of Operations in the Information Environment, which falls under the Office of the Deputy Chief of Naval Operations for Information Warfare (OPNAV N2N6). The new Navy instruction will “lead doctrine and tactics, techniques and procedures for operational commanders,” he said.

OIE and public messaging will also be integrated into this year’s Large Scale Exercise, along with other regional and global exercises, Brown added.

Regarding real-world displays of OIE successes, Brown said the run-up to Russia’s invasion of Ukraine is a prime example.

“In my 30-year career, I've never observed the United States pursue such a brilliant and effective information operation or information influence campaign, as we did in the run-up to Russia's invasion in February 2022,” Brown said.

The U.S. predicted the impending invasion, he said, and the “smart” declassification of sensitive information and informing allies built the credibility of the U.S. once the invasion took place. This was a “macro lesson” of how information warfare and public messaging can be used to expose the bad behavior of countries like Russia and the People's Republic of China, Brown added.

AFSAB studying technology transition to prepare for 'great power competition'
By Shelley K. Mesch
January 29, 2025 at 3:51 PM

The Air Force Scientific Advisory Board this fiscal year will study how to transition technology development to operational systems as part of the service’s "Re-optimization for Great Power Competition" plan among other science and technology topics.

In the study, titled “Implementing Re-optimization for GPC; S&T and Capability Development,” the board will assess the parts of the plan that relate to developing capabilities. It will consider the organizational and policy hurdles to developing technologies, challenges with personnel recruitment and retention, relationships with the defense industrial base and other organizations as well as ways to support “national-level military capability competition with foreign air and space forces,” according to the draft terms of reference.

“Critical to the success of GPC is strong collaboration (extreme teaming) across all the stakeholder communities, specifically including operators, technologists and acquisition experts, informed by threat assessments and multi-attribute modeling,” the draft states. “This, in turn, requires bridging organizational seams that inhibit teaming while recruiting, training, and promoting a technically sophisticated workforce appropriate for this environment.”

The board expects to brief the Air Force secretary in April and publish the report in September.

The board will also conduct studies on space-based battle management, command, control and communications; autonomy for military systems; and quantum systems.

For BMC3, the board will survey current sensors, effectors and operational nodes; determine how to prioritize actions; identify technical needs and approaches to providing automation support; and assess needs and approaches for survivability and resilience of space-based BMC3 systems, according to the draft terms of reference.

The study on autonomy for military systems will include assessments on which Air Force applications could benefit from AI and autonomy capabilities, potential applications by near-peer nations and a survey of relevant and emerging technologies.

For quantum systems, the board will look into the promise and maturity of Air Force applications, existing military and commercial research into quantum technologies, opportunities for the service to close development gaps and how technologies can be transitioned into operational applications.

The board also expects to brief the secretary on these reports in April as well. The reports will be published in September.

Army Launched Effects solicitation includes counter unmanned ground vehicles
By Dan Schere
January 29, 2025 at 2:31 PM

The Army wants to incorporate counter unmanned ground vehicles (C-UGV) into its plans for developing Launched Effects capabilities, according to a request for information released today.

The RFI asks industry for information on capabilities associated with Launched Effects payloads, which include both the air and “surface” Launched Effects, both of which consist of an air vehicle, payload, mission system applications and support equipment.

Air Launched Effects are launched from high-, medium- and low-altitude platforms, while Surface Launched Effects include both ground and maritime vessel Launched Effects, according to the Army.

With Launched Effects, the Army aims to “detect, identify, locate and report, deliver lethal and non-lethal effects, extend communications, conduct battle damage assessment and provide protection of friendly formations,” the RFI states.

Launched Effects will be able to “collaborate with other manned, unmanned or mixed groups and controlled by different formations throughout the battlespace,” according to the RFI.

The notice asks vendors if they have multiple types of capabilities, which include:

  • Electro-Optic/Infrared, passive radio frequency and synthetic aperture radar for surveillance.
  • Aircraft, command posts and electronic attack disruption for non-lethal effects.
  • Counter swarm electronic attack and C-UGV for protection capabilities.
  • Decoy, small unmanned systems and “unattended ground sensors” for payloads.

The RFI asks vendors for solutions that are at least a technology readiness level of 3, with the ability to be upgraded to a TRL level of at least 7 by fiscal year 2030.

Army officials said last year that a requirement update to the Launched Effects program would be coming toward the end of fiscal year 2025.

The INSIDER daily digest -- Jan. 29, 2025
By John Liang
January 29, 2025 at 2:21 PM

This Wednesday INSIDER Daily Digest has news on the Army facing "tough choices about the budget" in the coming years, plus coverage of the West 2025 conference in San Diego and more.

Army Chief of Staff Gen. Randy George says the service is "looking at everything that we do" when it comes to "return on investment in terms of lethality and readiness inside of our formation and then taking care of our soldiers":

'Hard choices' ahead for Army when it comes to budget, service chief says

The Army will need to make "tough choices about the budget" in the next year, the service's top uniformed officer emphasized today at an event hosted by the Association of the United States Army.

Prior to its recission today, the Pentagon had been reviewing an OMB directive that called for a temporary halt on certain spending:

DOD reviewing new spending pause ordered by Trump administration

The Defense Department, amid broad confusion across the federal government, is reviewing a White House Office of Management and Budget directive that calls on all federal agencies to temporarily halt and review any "grants, loans or other financial assistance" that don't align with new executive orders from President Trump targeting "Marxist equity, transgenderism and green new deal social engineering policies."

Coverage of this year's AFCEA/USNI West conference in San Diego:

Implications of 2027 deadline 'crystal clear' to the force, Navy official says

SAN DIEGO -- The expansion of manned-unmanned teaming, investment in the submarine industrial base and completion of on-time maintenance availabilities are all actions needed to meet the Chief of Naval Operations' goal of an 80% combat surge-ready force, according to naval officials.

Replicator could be key to bolstering surface firepower, Pacific Fleet commander says

SAN DIEGO -- The Pentagon's Replicator initiative could provide a boost to Pacific Fleet's firepower, according to commander Adm. Stephen Koehler, who today said the rapid fielding effort could fill gaps that will appear as manned vessels equipped with vertical launch cells are retired in the coming years.

President Trump has issued an executive order titled "The Iron Dome for America" that orders the Pentagon to draft a blueprint for a domestic air- and missile-defense architecture by the end of March with options to shape the administration’s fiscal year 2026 budget request:

Trump directs next-gen domestic air defense; Pentagon to re-imagine drone, air, missile shield

President Trump has declared the need for a new national defense system to control domestic airspace and defend the U.S. against missile and drone attack -- a move that carries seismic budget, policy and organizational implications to say nothing of technical feasibility questions and the politically fraught matter of exactly what to protect and leave undefended.

Document: Trump's Iron Dome executive order

The first Collaborative Combat Aircraft increment is being envisioned as missile trucks that would accompany exquisite aircraft like the F-35 Joint Strike Fighter, B-21 Raider and Next Generation Air Dominance platform into battle in sizable groups, officials have said:

Kunkel: Wargaming proves CCAs will bring 'unstoppable capability' to air fight

Exercises intended to simulate teaming among fighter drones and manned jets are already confirming the pairing to be a "completely natural" solution to bring "unstoppable capability" to an air-to-air fight, according to Maj. Gen. Joseph Kunkel, Air Force director of force design, integration and wargaming.

Lockheed Martin executives discussed the company's latest earnings this week:

Financial effects of F-35 TR-3 delays may bleed into 2026, Lockheed exec says

Lockheed Martin may be feeling the financial hit of continued delays to Technology Refresh 3 for the F-35 Joint Strike Fighter into 2026, executives said during the company's year-end earnings call.

White House rescinds controversial spending pause memo
By Tony Bertuca
January 29, 2025 at 1:46 PM

The White House Office of Management and Budget has rescinded a controversial memo that ordered all federal agencies to halt and review spending on grants, loans or other forms of financial assistance following a swirl of confusion about which programs were included or exempt.

The rescinded memo, “Temporary Pause of Agency Grant, Loan, and Other Financial Assistance,” directed federal agencies to comb their budgets to root out "Marxist equity, transgenderism and green new deal social engineering policies."

The Pentagon, meanwhile, released a statement from an unnamed senior defense official last night saying the department was reviewing the OMB memo, noting that some contracts or activities “may be paused” if they were misaligned with the White House’s guidance.

It is unclear how DOD will proceed now that the memo has been rescinded and the Pentagon did not immediately respond to a request for comment.

Senate Appropriations Committee Chairwoman Susan Collins (R-ME) released a statement criticizing the White House.

“I am pleased that OMB is rescinding the memo imposing sweeping pauses in federal programs,” she said. “While it is not unusual for incoming administrations to review federal programs and policies, this memo was overreaching and created unnecessary confusion and consternation.”

The original memo has been challenged in court, with a federal judge issuing a stay on the guidance.

However, White House Press Secretary Karoline Leavitt said on X that the federal funding freeze would continue as directed, though the memo directing it was being rescinded.

"This is NOT a rescission of the federal funding freeze,” she wrote. “It is simply a rescission of the OMB memo. Why? To end any confusion created by the court's injunction. The President's EO's on federal funding remain in full force and effect, and will be rigorously implemented.”

DIU evaluating industry bids to deliver nuclear power source for military installations
By Nick Wilson
January 28, 2025 at 7:21 PM

SAN DIEGO -- The Defense Innovation Unit is in the process of evaluating vendor proposals to deliver a nuclear power source for military installations, according to DIU energy portfolio Director Andrew Higier.

The “nuclear power for installation project” is an ongoing effort enabled by a recently heightened focus on nuclear technology by industry, Higier said today at the West 2025 conference.

“It's a project that, if you would have asked me just a few years ago, ‘Is DIU going to do a nuclear project?’ I would have said, ‘No,’ because the private sector is not doing that,” he said. “But here we are a few years later, and there's dozens of companies and even more [venture capitalists] investing in that technology, and because of that we were able to quickly start a nuclear project.”

DIU posted two solicitations in June 2024 seeking commercial solutions to address Navy and Army energy resiliency needs.

The Army sought to “to prototype on-site micro-reactor nuclear power plant(s) to address its energy resilience needs through the Advanced Nuclear Power for Installations (ANPI) program to provide electricity generation and distribution,” according to its notice.

Such technology “didn’t exist" at the time, Higier added. "Thanks to the private sector, it does exist now, or it will soon. And so we put out a solicitation, and that's undergoing selection right now.”

The INSIDER daily digest -- Jan. 28, 2025
By John Liang
January 28, 2025 at 1:42 PM

This Tuesday INSIDER Daily Digest has news on Boeing's latest quarterly earnings, plus Air Force readiness and modernization challenges and more.

We start off with coverage of Boeing's latest quarterly earnings call:

Boeing, USAF in talks to accelerate new Air Force One deliveries

The Air Force and aerospace prime Boeing are in "active discussions" to make needed changes to the VC-25B program, the eventual replacement for presidential aircraft Air Force One, company CEO Kelly Ortberg told investors Tuesday.

Air Force officials warned last year the fiscal year 2026 request would be more repressed than prior budgets, foreshadowing tough choices ahead regarding the future force structure, sustainment and operations:

Budget-driven 'conundrum' causing both readiness and modernization to fall flat, former USAF official says

The Air Force can't afford to go big on either modernization or readiness at current funding levels, creating a stalemate in which both are already being suboptimized, said Ravi Chaudhary, the now former Air Force assistant secretary for energy, installations and environment.

Coverage of President Trump's firing of the Defense Department inspector general over the past weekend:

New acting DOD inspector general named after Trump firings

A new acting Defense Department inspector general has been named to temporarily fill the place of Robert Storch, who was among more than a dozen IGs fired over the weekend by President Trump.

Last but by no means least, the latest CMMC news from our colleagues at Inside Cybersecurity:

CMMC assessment provider finds significant gap in contractor preparation for Pentagon cyber certification program

Fifty-eight percent of defense contractors are unprepared to meet the requirements for the Pentagon's Cybersecurity Maturity Model Certification program, according to a survey conducted by the Defense Department initiative's first authorized third-party assessment organization.

AIA seeks clarification on segmentation in NIST advanced persistent threats publication used by CMMC program

The Aerospace Industries Association is encouraging the National Institute of Standards and Technology to provide clarity on segmenting different components of an IT system, in a draft publication on advanced persistent threats used to establish requirements for the Pentagon's Cybersecurity Maturity Model Certification program.

Army halts contracts and solicitations for review
By Dan Schere
January 28, 2025 at 1:19 PM

The Army is "conducting a review of existing solicitations and awards of contracts," a service spokesperson confirmed today to Inside Defense.

Bloomberg first reported Monday that newly-confirmed Defense Secretary Pete Hegseth halted all new Army contracts and solicitations for new programs. Additionally, Breaking Defense reported today that according to multiple industry and military sources, an email provided “direction from the secretary of the Army’s office” to pause all contracting or other transaction awards, along with other types of solicitations.

In response to questions from Inside Defense about the existence of such a directive, service spokeswoman Ellen Lovett wrote that “Army contracting activities continue to move forward.”

“As is customary, the Army is currently conducting a review of existing solicitations and awards of contracts to ensure that our programs are aligned with the incoming leadership’s policies and directives. We remain committed to transparency and being responsible stewards of taxpayer dollars,” she wrote.

Watch Inside Defense for more reporting on this developing story.

HII closes on acquisition of South Carolina-based manufacturing facility assets
By Abby Shepherd
January 28, 2025 at 5:00 AM

Shipbuilder HII's acquisition of the metal fabrication facilities and equipment of a South Carolina-based company has now closed, HII announced yesterday.

Now known as Newport News Shipbuilding-Charleston Operations, the acquisition of assets will allow HII to expand operations while maintaining more than 99% of the previous workforce -- approximately 500 employees. Newport News Shipbuilding Vice President Matt Needy will manage the site.

“HII is committed to going where the labor is to increase shipbuilding capacity and increase throughput for our national security customers,” HII President and CEO Chris Kastner said in a statement. “This lets us efficiently add trained talent and state-of-the-art manufacturing capabilities to the urgent job of building ships, making it a unique opportunity to immediately accelerate throughput at Newport News Shipbuilding in support of the Navy and AUKUS.”

The acquisition was announced last month and will prioritize the construction of submarine modules first, followed by aircraft carrier modules, Newport News Shipbuilding President Jennifer Boykin said at the time.

The South Carolina-based facility includes 480,000 square feet of additional manufacturing space, Boykin added.

“The expansion of our nation’s largest military shipbuilder in South Carolina underscores the pivotal role our state plays in strengthening America’s national security,” Sen. Tim Scott (R-SC) said in a statement yesterday. “The dedicated shipbuilders in the Charleston area are part of a highly skilled workforce that will propel our nation forward. This innovation and modernization in our defense industrial base will create jobs and draw resources to our state’s already robust Navy presence.”

General Electric, Pratt & Whitney awarded up to $3.5 billion each for NGAP prototyping
By Vanessa Montalbano
January 27, 2025 at 6:18 PM

The Air Force's Next Generation Adaptive Propulsion program is advancing into the prototyping phase, with General Electric and Pratt & Whitney both receiving awards of up to $3.5 billion to carry-out existing contracts, the Pentagon announced Monday evening.

The indefinite-delivery, indefinite-quantity modification contract reduces the total number of vendors proceeding with NGAP to two, cutting Boeing, Lockheed Martin and Northrop Grumman from the competition.

“The work includes design, analysis, rig testing, prototype engine build and testing and weapon system integration,” according to the announcement. “The contract modification is for the execution of the prototype phase of the NGAP program and is focused on delivering a state-of-the-art propulsion system with a flexible architecture that can be tailored for future combat aircraft operating across various mission threads; and digitally transforming the propulsion industrial base.”

No funds are being released to either company at the time of the award, the Pentagon stated.

In August of 2022, GE Aerospace, Pratt & Whitney, Boeing, Lockheed Martin and Northrop Grumman were each awarded $975 million to begin NGAP technology-maturation and risk-reduction services. Today’s announcement brings the cumulative contract value for each up to $3.5 billion and dwindles the vendor options down to just GE and Pratt.

The defense primes will have until July 2032 to execute their platform-agnostic designs, with the Air Force Lifecycle Management Center as the contracting authority.

The NGAP program was in part born out of the now-obsolete Adaptive Engine Transition Program, which was intended to find a design to re-engine the F-35 Joint Strike Fighter with an alternative that required less energy, had greater thrust and could fly for longer periods.

Pratt & Whitney and General Electric were the two top contenders for the AETP competition as well.