The INSIDER daily digest

Defense policy bills, a billion-dollar reprogramming, unmanned systems and more highlight this Thursday INSIDER Daily Digest.

The House and Senate versions of the FY-17 defense policy bill will have lots of issues to iron out in the conference process:

House and Senate defense policy bills head to conference with major differences

House and Senate lawmakers are in the early stages of considering how to best reconcile dueling defense policy bills with significant differences, including an $18 billion delta in how much the Pentagon would be authorized to spend in fiscal year 2017, and a host of acquisition reform measures that could significantly impact the defense industry.

The low price of fuel has enabled DOD to shift money to pay for operations in Afghanistan and against ISIL:

Pentagon reprograms $1.5B in fuel savings to fund Afghanistan and counter-ISIL fights

The Pentagon plans to transfer $1.5 billion in savings it achieved from lower-than-budgeted fuel costs in fiscal year 2016 to fund ongoing military activities in Afghanistan and the operation to counter the Islamic State of Iraq and the Levant.

Document: DOD reprogramming request for Afghanistan, counter-ISIL fight

The Navy's LDUUV acquisition strategy is being altered:

Navy leadership alters LDUUV acquisition strategy with hands-on approach

Navy leadership has decided to alter the acquisition strategy for the Large Displacement Unmanned Undersea Vehicle by shifting from a traditional, competitive phase between industry prime contractors to one that uses a government system integrator.

More unmanned systems news:

Initial UAS flights using GBSAA system at Ft. Hood have been delayed

A major milestone in the Army's quest to fly unmanned aircraft without the use of a visual observer or chase plane to avoid other aircraft has been delayed because the Gray Eagle units meant to conduct these flights have been deployed elsewhere, according to an Army official.

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Keep an eye out for an LRSO milestone A decision in the next couple weeks:

Long-Range Standoff Weapon milestone A decision expected this month

A milestone A decision on the Air Force's Long-Range Standoff Weapon is expected this month, service officials told Inside the Air Force this week.

The next administration will likely have the same audit-readiness effort:

DOD working to preserve audit-readiness progress as administration transitions

The Pentagon is working to ensure its audit-readiness progress will be preserved to help a new presidential administration meet the September 30, 2017, deadline, though a favorable audit opinion remains "many years" off, Defense Department Comptroller Mike McCord told the House Armed Services Committee on June 15.

Document: House hearing on DOD's FIAR plan