The INSIDER daily digest -- Dec. 9, 2016

Defense business news, the Littoral Combat Ship program and more highlight this Friday INSIDER Daily Digest:

Defense Business Editor Marjorie Censer sat down with a couple of senior defense industry executives this past week:

Caret: New services unit will put 'more scale' behind Boeing defense-commercial partnership

SIMI VALLEY, CA -- The head of Boeing's defense business says the newly formed Boeing Global Services group, which spans the defense and commercial businesses, will help grow the company's services work.

Bruno plots transformation of United Launch Alliance

The chief executive of United Launch Alliance is planning another round of job cuts as well as launch pad closures, among other changes, as he revamps the company for more competitive times.

House lawmakers held a hearing this week on the Navy's LCS program:

Navy defends contracting approach for Littoral Combat Ship

A top Navy official defended the service's contracting approach on the Littoral Combat Ship this week, after the Government Accountability Office and a lawmaker criticized the share of costs the Pentagon pays for defects and overruns.

Document: House hearing on the LCS program

Middle Eastern countries could soon be getting billions of dollars' worth of U.S. defense equipment:

State Department approves $8.6B in foreign military sales to Middle East

The State Department has approved $8.6 billion worth of potential foreign military sales packages to countries in the Middle East, the bulk of which would come from a pair of helicopter deals with Saudi Arabia and the United Arab Emirates, according to a series of Thursday notices from the Defense Security Cooperation Agency.

News from this morning's issue of Inside the Air Force:

Extended CR will put hold on air superiority, light-attack experimentation

The extended continuing resolution slated for passage by Congress this week will further delay funding for three key Air Force experimentation campaigns exploring future air superiority concepts and light-attack capabilities to supplement legacy close-air support platforms.

Document: Rep. Rogers' continuing resolution

Air Force to explore operational feasibility of directed-energy weapons

Air Force leadership recently signed off on a plan to explore the operational and policy implications of integrating directed-energy weapons into its fleet.

Congress strikes open competition language for new Compass Call platform

Congress is allowing the Air Force to move the EC-130H Compass Call's equipment onto a "more operationally effective and survivable airborne platform" using fiscal year 2017 funds, but will let the service buy only two new Compass Call aircraft at first to ensure the platform meets combatant command needs. If so, the Air Force can proceed to buy the other eight of the 10-aircraft fleet.

Document: FY-17 defense authorization conference report

Lawmakers rethink U-2 retirement funding ban in FY-17 defense policy bill

Congressional authorizers are letting the U-2 Dragon Lady retire as planned, rather than keep a provision in the fiscal year 2017 defense policy bill that would block funding for the retirement.

Air Force evaluating gaps in 50 legacy systems as part of cyber campaign plan

As part of a larger effort to improve cybersecurity across its entire portfolio of weapon systems, the Air Force is in the process of evaluating 50 of its legacy platforms to identify cyber vulnerabilities and develop plans to mitigate those gaps.

USAF plans contract extension amid ICBM network upgrade delay

The Air Force on Nov. 17 announced its plan to extend Raytheon's contract to upgrade the network connecting the White House to Minuteman III forces by two years because the program has been delayed by about a year-and-a-half, though the additional cost is still under negotiation. A contract award is expected Nov. 16, 2018.

Document: Air Force notice on Raytheon contract extension for ICBM network upgrade