The Insider

Air Force running pilot program to expand AI mission control capabilities
By Shelley K. Mesch
August 20, 2024 at 9:40 AM

The Air Force awarded Palantir an $8 million, one-year contract to see if current commercial artificial intelligence mission control software and services can be used to support the 7th Air Force in South Korea, according to a Defense Department announcement earlier this month.

The contract is a pilot project using existing software capabilities “to accelerate combined dynamic targeting missions and processes by providing software tools that introduce automation into existing workflows,” the announcement states.

“The objective of this pilot is to evaluate the feasibility of extending Palantir software capabilities, currently leveraged by U.S. Indo-Pacific Command, for reuse in Seventh Air Force’s combined U.S. and Republic of Korea Air Force operational environment,” service spokeswoman Ann Stefanek said.

The 607th Air and Space Operations Center -- which runs command and control for the INDOPACOM and U.S. Forces Korea -- will run the pilot through Aug. 4, 2025.

State approves possible $3.5B Apache helo FMS to South Korea
By Tony Bertuca
August 19, 2024 at 4:45 PM

The State Department has approved a possible $3.5 billion foreign military sale of AH-64E Apache helicopters to South Korea, according to a Defense Security Cooperation Agency notice.

The deal, which DSCA says may require economic offsets, would include up to 36 helicopters and a variety of other related equipment and logistics support.

The primary contractors would be Boeing in Mesa, AZ, and Lockheed Martin in Orlando, FL.

“This proposed sale will support the foreign policy goals and national security objectives of the United States by improving the security of a major ally that is a force for political stability and economic progress in the Indo-Pacific region,” DSCA said.

The agency also announced several other potential FMS contracts, including a possible $305 million deal with the Netherlands for CH-47 and AH-64 helicopter training, a possible $100 million deal with Australia for Javelin missiles, and a possible $70 million deal with Finland for M1156A1 precision guidance kits.

Today’s announcements follow large potential FMS deals that DSCA notified Congress about last week, including a potential $19 billion sale to Israel.

DOD investing $20M to bolster large capacity battery supply chain
By Theresa Maher
August 19, 2024 at 4:16 PM

The Defense Department awarded $20 million to Electra Battery Materials Corp. to help expand domestic production of cobalt sulfate, a key material for large capacity batteries, according to an announcement today.

The award, made via the Defense Production Act Investments (DPAI) office, will allow the company to complete an industrial scale hydrometallurgical plant and establish cobalt sulfate production at its Ontario, Canada facility.

“This award will develop North American production of a key precursor material for large capacity batteries, helping to create a more robust industrial base capable of meeting growing demand across both the defense and commercial sectors,” Laura Taylor-Kale, assistant secretary of defense for industrial base policy, said in a DOD press release today.

By establishing the mineral’s production at the Canada facility, the award also supports the 2024 National Defense Industrial Strategy’s goal to expand domestic production of critical minerals, according to the press release.

With the investment, using funds from the 2022 Ukraine Supplemental Appropriations Act, Electra’s facility will be the first North American refinery aimed at producing cobalt sulfate, according to DOD.

“This will lead to a sustainable domestic processing facility capable of producing commercial-scale levels of a critical precursor material for large capacity batteries, which are used in many DOD systems,” DOD said.

It’s the most recent of 35 awards the DPAI program has made since the beginning of fiscal year 2024, totaling $445 million, and the third such award using DPA funds granted to a Canadian company, according to DOD.

The INSIDER daily digest -- Aug. 19, 2024
By John Liang
August 19, 2024 at 1:46 PM

This Monday INSIDER Daily Digest has news on an upcoming multicombatant command exercise in the Indo-Pacific, prototype satellites, uncrewed underwater vehicles and more.

The Air Force is taking an idea used during the Cold War and repurposing it for a future conflict in the Indo-Pacific:

Air Force unveils REFORPAC exercise for summer 2025

The Air Force's plan to test its new organizational structure in a large-scale, multicombatant command exercise in the Indo-Pacific next summer now has a name: REFORPAC.

York Space Systems and Terran Orbital subsidiary Tyvak Nano-Satellite Systems will each build and operate 10 prototype Tranche 2 Transport Layer-Gamma variant satellites, which are expected to launch by the fourth quarter of fiscal year 2027:

SDA awards $424 million to two companies for Tranche 2 Gamma satellites

The Space Development Agency today awarded a total of $424 million to two non-traditional defense contractors for the Tranche 2 Transport Layer-Gamma variant satellites for the Proliferated Warfighter Space Architecture.

Defense Advanced Research Projects Agency officials spoke last week about Navy uncrewed underwater vehicles:

Unmanned systems and AI large part of Navy's current focus, officials say

The Navy is aiming its focus on successfully fielding unmanned systems -- particularly unmanned underwater vehicles -- officials said Thursday, with another demonstration of the Manta Ray program potentially planned soon.

A new report to Congress "provides a summary of congressional additions to the Fiscal Year (FY) 2024 President's Budget Request of the Department of Defense":

Congress added $22.7B in unrequested funds to boost DOD's budget in FY-24

Congress provided $22.7 billion in unrequested funding to the Defense Department in fiscal year 2024, with most of the additional cash going toward weapons procurement and development, according to a new report from the Pentagon comptroller.

Document: DOD report on congressional increases to FY-24 budget

The latest industry responses to the Pentagon's Cybersecurity Maturity Model Certification program are out:

PSC calls for Pentagon to focus on making CMMC program 'executable' as rulemaking process continues

The Professional Services Council wants the Defense Department to focus on making its upcoming Cybersecurity Maturity Model Certification program "executable" for government contractors and the Pentagon, according to PSC president and CEO David Berteau, as the major initiative reaches a new milestone with the publication of a second rulemaking focused on acquisition.

In case you missed it, Inside Defense visited Austal USA's shipyard in Mobile, AL earlier this month. Here's our story, now available to all:

Austal poised to expand submarine module work as legacy programs sunset

MOBILE, AL -- As production of the Navy's Littoral Combat Ships and Expeditionary Fast Transports nears completion, Austal USA is entering a transition period that sees the historically aluminum-focused shipbuilder beginning production of multiple steel vessels and positioning itself to become an essential piece of the submarine industrial base.

FREE TO READ: Austal poised to expand submarine module work as legacy programs sunset
By Nick Wilson
August 19, 2024 at 1:26 PM

MOBILE, AL -- As production of the Navy's Littoral Combat Ships and Expeditionary Fast Transports nears completion, Austal USA is entering a transition period that sees the historically aluminum-focused shipbuilder beginning production of multiple steel vessels and positioning itself to become an essential piece of the submarine industrial base.

Read the full story.

The INSIDER daily digest -- Aug. 16, 2024
By John Liang
August 16, 2024 at 2:17 PM

This Friday INSIDER Daily Digest has news on a just-released Pentagon report to Congress on how much unrequested money lawmakers added to the defense budget, plus the latest on the Cybersecurity Maturity Model Certification program and more.

A just-released report to Congress "provides a summary of congressional additions to the Fiscal Year (FY) 2024 President's Budget Request of the Department of Defense":

Congress added $22.7B in unrequested funds to boost DOD's budget in FY-24

Congress provided $22.7 billion in unrequested funding to the Defense Department in fiscal year 2024, with most of the additional cash going toward weapons procurement and development, according to a new report from the Pentagon comptroller.

Document: DOD report on congressional increases to FY-24 budget

The latest industry responses to the Pentagon's Cybersecurity Maturity Model Certification program are out:

PSC calls for Pentagon to focus on making CMMC program 'executable' as rulemaking process continues

The Professional Services Council wants the Defense Department to focus on making its upcoming Cybersecurity Maturity Model Certification program "executable" for government contractors and the Pentagon, according to PSC president and CEO David Berteau, as the major initiative reaches a new milestone with the publication of a second rulemaking focused on acquisition.

The Army will now send a delegation to the facilities of interested howitzer manufacturers to observe the capabilities of existing cannon systems:

Army changes approach to howitzer capability demonstrations, will travel to vendor facilities

Interested howitzer manufacturers will now host Army representatives to demonstrate the capability of their existing systems, a change from previously scheduled consolidated demonstrations hosted by the service in an effort to acquire a new self-propelled cannon.

Some F-35 Joint Strike Fighter news:

Pentagon may consider a performance-based contract for some aspects of F-35 sustainment but not all

The F-35 Joint Program Office will not pursue a performance-based logistics contract with Lockheed Martin next year, but "the [Defense] Department will continue to assess and seek to award the best contracting strategy for F-35 sustainment, to include PBL type arrangements where advantageous," according to a defense official.

The F-35 won't be the only fighter to pair with the next-generation Collaborative Combat Aircraft:

Air Force official: CCAs to team with 'all fighters,' 'joint assets' and 'international partners'

The Air Force's Collaborative Combat Aircraft will not only pair with the F-35 Joint Strike Fighter and the Next Generation Air Dominance platform, but also the F-15EX Eagle II, F-22 Raptor and platforms from other services or allies, according to a top Air Force official.

The State Department is scheduled to issue an "interim final rule" this week amending International Traffic and Arms Regulations (ITAR) to allow export licensing exemptions for defense trade between and among the United States, Australia and the U.K.:

U.S. announces new defense trade exemptions for Australia and U.K.

The United States has announced new export licensing exemptions for Australia and the U.K. meant to allow the AUKUS partners to substantially increase their flow of weapons sales and transfer some classified military technologies.

U.S. announces proposed $5B Patriot FMS to Germany, $738M in MQ-9s for Italy
By Tony Bertuca
August 16, 2024 at 10:54 AM

The State Department has approved a potential $5 billion foreign military sale of Patriot Advanced Capability-3 Missile Segment Enhancement interceptors to Germany, according to a Defense Security Cooperation Agency announcement.

Germany seeks to buy up to 600 of the Lockheed Martin-made missiles, according to a notice DSCA sent to Congress.

The proposed FMS would help restock the German military, which has been supplying Ukraine with Patriot systems and interceptors.

“The proposed sale will improve Germany’s capability to meet current and future threats and increase the defensive capabilities of its military,” DSCA said. “It will support Germany’s goal of improving national and territorial defense as well as interoperability with U.S. and NATO forces.”

Lockheed’s unit located in Dallas, TX, will be the prime contractor on the deal, with DSCA noting that Germany typically requests economic “offsets” to balance FMS deals.

“There will be no adverse impact on U.S. defense readiness as a result of this proposed sale,” DSCA said.

DSCA also announced a proposed $738 million FMS of MQ-9 block 5 aircraft to Italy.

The prime contractor will be General Atomics in San Diego, CA.

DSCA also announced a potential $85 million FMS to Denmark for up to 5,832 M1156 Precision Guidance Kits.

Archer delivers first Midnight aircraft to AFWERX for test eVTOL mobility operations
By Vanessa Montalbano
August 15, 2024 at 5:09 PM

Archer Aviation has delivered its first Midnight mobility platform to the Air Force for evaluation as part of the company's up to $142 million contract with AFWERX agility prime, according to a notice issued today.

"Archer's Midnight aircraft has the potential to significantly enhance our operational capabilities," Col. Elliott Leigh, AFWERX director and the Air Force’s chief commercialization officer, said in a statement. "We look forward to continuing our work with our industry partners as we explore the ways that this advanced aircraft can contribute to the mission."

The aircraft displays a mix of capabilities the service has deemed critical for success in a potential fight in the Indo-Pacific, including electric vertical takeoff and landing, large payload, low noise output and an electrically powered engine.

The delivery of the zero-emission aircraft comes after the Defense Department last month granted Archer military airworthiness to begin flight testing on the Midnight to eventually validate the platform for specific mission concepts.

Air Force pilots and the Archer team have so far collaborated on various simulated operations out of Archer’s flight test facility in Salinas, CA, including medical evacuation, cargo and intelligence, surveillance and reconnaissance, according to the company.

"This delivery represents a pivotal moment not only for Archer but for the future of military aviation," Adam Goldstein, Archer’s CEO, said in a statement. "Together, our goal is to prove Midnight’s potential and ensure the United States continues to lead the way with the world’s most advanced technology.”

The company may deliver as many as six Midnights to the Air Force, per the contract approved last August. The platforms can also be leveraged by other services if their interest is piqued, but the Air Force has said Midnight is “expected to provide a much safer and quieter alternative to helicopters while being more cost-effective for the U.S. military to transport, operate and maintain in the field.”

Air Force looking to SATCOM C2 for expanding live-fire test and evaluation
By Shelley K. Mesch
August 15, 2024 at 2:51 PM

The Air Force is looking to modernize its live-fire test and evaluation systems by incorporating satellite communications, command and control, according to a request for information posted today.

The service’s Aerial Targets Branch wants to expand its Targets Control System -- which runs C2 for aerial targets that hold electronic attack payloads that enable realistic air-to-air and surface-to-air tests for advanced weapon system development -- by integrating a proliferated low-Earth orbit SATCOM.

“The targets C2 system must support future [fifth- and sixth-generation live-fire test and evaluation] requirements and be range agnostic to control and track targets in multiple locations without large amounts of physical infrastructure to be built and maintained,” the request states. “There is a need to modernize the TCS and reduce the reliance on range infrastructure to support the rapidly advancing [Defense Department] weapon systems requirements.”

The TCS can currently track and control up to six unmanned aerial targets as well as track four shooters, four missiles and, when applicable, four airborne platforms and two support aircraft, according to the request.

The Air Force is specifically requesting “current or planned service offerings, not hypothetical possibilities nor services that require substantial investment on the part of the government,” the request states.

Considerations for such a service would include:

  • When and where a business will begin offering services.
  • Whether the service supports user terminal mobility, both “at the halt” and “on the move.”
  • Whether the system can automatically adjust power, modulation and coding to achieve the best data rates.
  • The types of terminals would be compatible.
  • The target data rate per user terminal.
  • The maximum number of users in a given area that the system can support.
  • The types and costs of service packages.
The INSIDER daily digest -- Aug. 15, 2024
By John Liang
August 15, 2024 at 2:28 PM

This Thursday INSIDER Daily Digest has news on the Defense Department's Cybersecurity Maturity Model Certification program plus Navy shipyards and unmanned underwater systems.

We start off with the latest on the Pentagon's Cybersecurity Maturity Model Certification program:

DOD provides definition for CUI, addresses flow-down in CMMC proposed rule

Stakeholders in the defense industrial base are gaining more clarity into the Defense Department's upcoming acquisition requirements for the Cybersecurity Maturity Model Certification program in a proposed rule published today in the Federal Register.

Pentagon issues proposed rule to put in place CMMC requirements for acquisition purposes

The Defense Department has issued a long-awaited proposed rule to establish acquisition requirements for version 2.0 of the Pentagon's Cybersecurity Maturity Model Certification program, with details on the implementation timeline and supply chain flow-down to subcontractors.

Document: DOD's proposed rule on CMMC requirements for acquisition purposes

Inside Defense recently got a chance to visit Austal USA's shipyard in Mobile, AL:

Austal poised to expand submarine module work as legacy programs sunset

MOBILE, AL -- As production of the Navy's Littoral Combat Ships and Expeditionary Fast Transports nears completion, Austal USA is entering a transition period that sees the historically aluminum-focused shipbuilder beginning production of multiple steel vessels and positioning itself to become an essential piece of the submarine industrial base.

The autonomy baseline manager's primary responsibility is developing and managing the autonomy baseline -- an archive of software and hardware satisfying requirements like UMAA, which sets an interface standard for vendors to ensure different autonomy software packages are interoperable:

Navy advances industry-led effort to establish an autonomy baseline

Earlier this year, the Navy officially selected its autonomy baseline manager, launching a new industry role tasked with creating a "baseline" of the commercially available and technically viable software and hardware for autonomous surface and undersea systems to help the Navy select and pair the best capabilities for its varying needs.

A new Defense Science Board report recommends "a strategy for anticipating the global stresses and possible conflict due to climate change and provide investment priorities for new systems and technology":

Defense Science Board urges Pentagon to create 'climate planning cell'

The Pentagon’s best chance at guaranteeing properly informed decision-making in the face of climate threats would come from creating a “climate planning cell” to provide “situational awareness, modeling and decision-support,” according to a new Defense Science Board report.

Document: DSB report on climate change and global security

Lockheed expanding space business with Terran Orbital acquisition
By Shelley K. Mesch
August 15, 2024 at 10:35 AM

Lockheed Martin will buy satellite manufacturer Terran Orbital for $450 million as a way to expand its space business, the company announced today.

Lockheed has worked with Terran Orbital on several programs, including the Transport and Tracking Layers for the Space Development Agency, and it is also Terran’s largest customer to date.

"We've worked with Terran Orbital for more than seven years on a variety of successful missions," said Robert Lightfoot, president of Lockheed Martin Space. "Their capabilities, talent and business momentum align with Lockheed Martin Space's strategic plans -- and we're looking forward to welcoming them to our team. Our customers require advanced technology and even faster product development, and that's what we can achieve together."

Terran Orbital has been struggling with dwindling cash reserves and mounting debt, despite the company debuting on the public market with a $1.8 billion valuation just two years ago.

Now, pending regulatory and Terran stockholder approvals, Lockheed will buy the company for 25 cents in cash for each outstanding common stock share and retire its existing debt.

Terran will remain a commercial merchant supplier upon closing, which Lockheed stated it expects in the fourth quarter this year.

"This transaction combines our strengths and expertise," said Marc Bell, chairman, CEO and co-founder of Terran Orbital. "This move will open new opportunities for growth and innovation, and we couldn't be more excited about the future. Access to Lockheed Martin's incredible engineers and world class facilities will only accelerate our business plan to provide low-cost, high-value solutions to our ever-growing customer base."

The deal comes just months after Lockheed previously bid $600 million to buy Terran in April, according to CNBC.

Former CNO Richardson joins ThayerMahan advisory board
By John Liang
August 14, 2024 at 4:02 PM

Former Chief of Naval Operations Adm. John Richardson has joined ThayerMahan's advisory board, the company announced today.

Richardson, who retired from the Navy in 2019, also served as director of the Naval Nuclear Propulsion Program as well as deputy administrator of the National Nuclear Security Administration.

Since leaving the Navy, Richardson joined the board of directors for Boeing, Constellation Energy and BWX Technologies. He also serves on the boards of the Center for New American Security, the Scripps Institution of Oceanography and the Navy League of the United States.

Army hosting industry week on contested logistics next month
By Dan Schere
August 14, 2024 at 3:17 PM

The Army will host an industry week on contested logistics next month at Ft. Gregg-Adams, VA, which will be followed by an announcement for a follow-on solicitation, according to a government notice posted this week.

The industry week will feature five panel sessions between industry and government subject matter experts. It will focus on five subject areas, which are:

  • Renewable & distributed energy generation and storage
  • Advanced manufacturing
  • Demand reduction -- water at the point of need
  • Autonomous distribution -- human machine integration
  • Enhanced explosive ordnance disposal training capability

The meeting, which will take place Sept. 19-20, will be unclassified with the goal of having “fair, even and transparent communications with industry, academia and other non-governmental organizations to inform industry on Army sustainment and logistics-related needs and to determine industry capabilities to meet said needs.”

Last year, the Army stood up a Contested Logistics Cross-Functional Team based out of Redstone Arsenal in Huntsville, AL. The CFT was created to fill gaps in areas such as sustainment, autonomy, data-based logistics and fuel efficiency.

At the end of the industry event next month, Combined Arms Support Command intends to “set conditions” when it comes to delivering logistics and sustainment capabilities for the Army of 2030 and 2040, according to the notice.

The notice states that following the industry week, there will be a “follow-on announcement for solicitation” that centers around the five discussion topics of the event.

The INSIDER daily digest -- Aug. 14, 2024
By John Liang
August 14, 2024 at 2:49 PM

This Wednesday INSIDER Daily Digest has news on Defense Department legislative liaisons, the Maritime Administration's National Marketing Campaign, solid-rocket motors and more.

Senate appropriators, in a report accompanying their version of the fiscal year 2025 defense spending bill, are retaining a provision from previous years prohibiting the use of funds to "plan or implement the consolidation of a budget or appropriations liaison office" anywhere within DOD:

Senate appropriators nix DOD moves to consolidate congressional liaisons

The Senate Appropriations Committee says it is concerned the Defense Department might move to consolidate or "supplant" the budgetary liaisons who traditionally assist lawmakers in crafting annual spending legislation.

The Maritime Administration's National Marketing Campaign is meant to inform the public about the urgent need for skilled workers in the maritime industry:

MARAD seeks PR help to boost National Marketing Campaign

The Maritime Administration is seeking public relations help to boost its National Marketing Campaign -- an initiative meant to bring more workers into the merchant marine and shipbuilding industries.

Some solid-rocket motor news:

Lockheed, GD to join forces to build solid-rocket motors, boost output

Lockheed Martin and General Dynamics will come together to develop and produce solid-rocket motors in a bid to improve the nation's crippling domestic supply chain for the energetics systems that power most of the Pentagon's munitions, according to an announcement issued this week.

News on the Air Force's T-7 trainer aircraft:

Air Force taking 'incremental' approach to T-7 milestone C decision

The Air Force is planning to approve low-rate initial production for its T-7 Red Hawk trainers on an incremental basis as it deals with long-term developmental delays, according to Kevin Stamey, the Air Force's program executive officer for mobility and training aircraft.

We also have the latest on the Defense Department's Replicator drone effort:

DIU, Navy award contracts for small sea drones for Replicator

The Pentagon's innovation hub and the Navy have awarded contracts to prototype small sea drones, in line with the department's Replicator program timeline to field thousands of attritable, unmanned systems by August 2025 to counter China's military mass, the Defense Innovation Unit announced Monday.

Oshkosh gets $46M contract for medium tactical trucks
By Nickolai Sukharev
August 14, 2024 at 1:24 PM

Oshkosh will continue to build medium tactical trucks for the Army after receiving a $46 million contract, the Defense Department announced Tuesday.

Issued as a modification to an earlier contract, the Wisconsin-based company will build the Family of Medium Tactical Vehicles by an estimated completion date of Nov. 30, 2026, with funding and work locations being determined with each order, the Aug. 13 announcement reads.

Performing 55% of the Army’s haul and resupply missions, the FMTV includes cargo, recovery and tractor variants on a six-wheel-drive or four-wheel-drive chassis, according to Army budget documents.

The Defense Department announced a $108.9 million contract to the company in May with a Sept. 30, 2026 completion date.

In January, the Army announced an order of 1,343 FMTV A2s, an upgraded variant with a more powerful engine, and increased armor that can carry heavier payloads when compared to the earlier A1 variant.

Earlier variants of the FMTV can carry the High Mobility Artillery Rocket System, which the Army is also testing on the A2 variant, according to service research and development documents.

In its 2023 report, the Director for Operational Test and Evaluation concluded the FMTV is effective and survivable but recommended the Army eliminate secondary hazards after finding that crew members experienced strain, discomfort and blunt-force injuries.

The Army intends to procure 208 trucks in fiscal year 2025 for $134 million and 695 trucks by FY-29 for an approximate $446 million, the budget documents add.

In July, the Senate Armed Services Committee included $134 million for the FMTV program in the FY-25 defense authorization bill.

Oshkosh also produces the Army’s Family of Heavy Tactical Vehicles, which includes the Heavy Expanded Mobility Tactical Truck and Palletized Load System as well as the M1070 tank transporter.

The company expects contract extensions for the vehicles following the loss of the Joint Light Tactical Vehicle production contract, company executives said during a quarterly earnings call late last month.