The INSIDER daily digest – March 28, 2017

In today's digest: the Obama administration gave the Air Force the green light to proceed with a sixth-generation fighter aircraft program, a project that does not include considering re-starting the F-22A production line; the Trump administration outlines how it would pay for some of the proposed FY-17 military spending increases; and more.

First: Frank Kendall's parting directive to the Air Force.

Pentagon directs start of potential new major weapon system program to replace F-22A

The Obama administration's Pentagon -- in one of its last official acts -- directed the Air Force in January to begin work on a new Penetrating Counterair capability, kicking off an analysis of alternatives for its Next-Generation Air Dominance program that aims to develop a follow-on to the F-22A Raptor, the U.S. military's marquee twin-engine, stealth fighter.

Next, budget news. The new president's plan to boost spending is predicated on federal spending cuts that will likely be a hard sell on the Hill.

Trump administration reveals $18B in non-defense cuts for FY-17

The Trump administration has sent Congress details on the $18 billion in non-defense cuts it has included in its fiscal year 2017 budgetary amendment, reductions the administration intends to help offset a proposed $30 billion increase in Defense Department spending, according to documents obtained by Inside Defense.

Other news from inside the building:

Pentagon falls short of competition goal in first quarter

The Pentagon competed 47 percent of the dollars it spent in the first quarter of fiscal year 2017, below its 53 percent goal, according to new data released by the defense procurement and acquisition policy office.

Navy awards Northrop follow-on contract for LCS mission equipment

Northrop Grumman will remain the prime contractor for Littoral Combat Ship mission modules, as the Navy last week awarded the company a deal potentially worth more than $800 million to continue the work.

And: the latest on the Joint Strike Fighter program.

Focusing on lower-tier suppliers, Bogdan pushes for F-35 cost-cutting

Seeking lower prices, the official in charge of the government's Joint Strike Fighter program is calling on prime contractor Lockheed Martin to take a hard look at lower-tier suppliers.

Marines highlight Lightning Carrier concept in aviation plan update

By 2025, the Marine Corps could equip all seven amphibious assault ships with Joint Strike Fighters as another option for combatant commanders, according to the latest iteration of the service's aviation plan.

Lastly, updates on key Army programs:

Army leaders to reach 'decision point' on humvees

The Army may have to decide on the future of the humvee in 2018, according to Lt. Gen. Mike Murray, the service's deputy chief of staff (G-8).

Army to save 'over $330 million' on Apache multiyear

The Army is touting the cost savings generated by its first multiyear procurement contract for the latest model of its Apache attack helicopter.