The INSIDER daily digest -- Dec. 3, 2024

By John Liang / December 3, 2024 at 2:37 PM

This Tuesday INSIDER Daily Digest has news on the Navy's amphibious ship fleet, Rheinmetall acquiring Loc Performance Products and more.

A new Government Accountability Office report issued today "examines the extent to which (1) the Navy and Marine Corps are addressing challenges with fleet availability; (2) the Navy is addressing maintenance challenges; and (3) the Navy is positioned to meet its fleet size requirements into the future":

GAO: 'Poor condition' and reduced availability of amphibious ships poses risk for Navy, Marine Corps

With half of the Navy's amphibious fleet in "poor condition," the ships are not on track to meet their expected service lives, according to the government's top watchdog.

Document: GAO report on the Navy's amphibious ship fleet

American Rheinmetall Vehicles, a subsidiary of Rheinmetall based in the United States, will manage the recently acquired Loc Performance Products:

Rheinmetall acquires Loc Performance Products, moves further into U.S. ground vehicles market

Rheinmetall AG officially closed on its $950 billion purchase of Loc Performance Products, LLC on Nov. 29, a move aimed at strengthening the Düsseldorf-based vendor's hand in the United States' ground vehicles market, according to a Monday announcement.

Another recent GAO report finds "the Air Force plans to eventually deploy an entire wing from an airbase rather than individuals from multiple wings and airbases. But it hasn't assessed whether bases will have enough staff to operate when units deploy -- to fill jobs like guarding entrances or providing security. Also, it hasn't set timeframes for its efforts":

GAO: Air Force AFFORGEN process still a work in progress

The Air Force has not wrung out all the wrinkles in its new force generation model which seeks to change the way the service deploys to be better prepared to deter China in a potential conflict, according to the government's top watchdog.

Document: GAO report on Air Force unit deployment readiness

The White House Office of Management and Budget has submitted "anomalies" lists that includes spending exemptions related to Ukrainian military aid and the U.S. submarine industrial base:

Ukraine and submarines headline Pentagon's CR 'anomalies' request

The White House is seeking tens of billions of dollars in spending exemptions related to Ukrainian military aid and the U.S. submarine industrial base when Congress returns from its break to begin debating passage of a stopgap continuing resolution to avert a partial government shutdown slated for next month, according to a document obtained by Inside Defense.

Document: OMB's CR anomalies lists

There is a palpable discomfort in the contracting community driven by the uncertainty of guessing what could happen to specific weapons programs targeted by Donald Trump, soon to again be the world's most powerful man, and Elon Musk, the world's richest man:

Defense contractors warned against 'headline risk' and 'sacrificial lambs' amid Musk tweets

Defense contractors, especially those with highly visible Pentagon programs that are behind schedule and over budget, are being advised to lay low and prepare to make offerings at the altar of President-elect Trump's new Department of Government Efficiency advisory commission led by tech billionaires Elon Musk and Vivek Ramaswamy.

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